[Congressional Record (Bound Edition), Volume 153 (2007), Part 24]
[House]
[Pages 33232-33261]
[From the U.S. Government Publishing Office, www.gpo.gov]




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

  Mr. SKELTON submitted the following conference report and statement 
on the bill (H.R. 2082) to authorize appropriations for fiscal year 
2008 for intelligence and intelligence-related activities of the United 
States Government, the Community Management Account, and the Central 
Intelligence Agency Retirement and Disability System, and for other 
purposes:

                  Conference Report (H. Rept. 110-478)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2082), to authorize appropriations for fiscal year 2008 for 
     intelligence and intelligence-related activities of the 
     United States Government, the Community Management Account, 
     and the Central Intelligence Agency Retirement and Disability 
     System, and for other purposes, having met, after full and 
     free conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Intelligence Authorization Act for Fiscal Year 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

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

              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

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

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

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

           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

                     Subtitle A--Personnel Matters

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

                    Subtitle B--Acquisition Matters

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

                       Subtitle C--Other Matters

Sec. 321. Restriction on conduct of intelligence activities.
Sec. 322. Clarification of definition of intelligence community under 
              the National Security Act of 1947.
Sec. 323. Modification of availability of funds for different 
              intelligence activities.

[[Page 33233]]

Sec. 324. Protection of certain national security information.
Sec. 325. Extension of authority to delete information about receipt 
              and disposition of foreign gifts and decorations.
Sec. 326. Report on compliance with the Detainee Treatment Act of 2005 
              and related provisions of the Military Commissions Act of 
              2006.
Sec. 327. Limitation on interrogation techniques.
Sec. 328. Limitation on use of funds.
Sec. 329. Incorporation of reporting requirements.
Sec. 330. Repeal of certain reporting requirements.

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

      Subtitle A--Office of the Director of National Intelligence

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

                Subtitle B--Central Intelligence Agency

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

              Subtitle C--Defense Intelligence Components

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

                       Subtitle D--Other Elements

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

                         TITLE V--OTHER MATTERS

                Subtitle A--General Intelligence Matters

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

                    Subtitle B--Technical Amendments

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

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Congressional intelligence committees.--The term 
     ``congressional intelligence committees'' means--
       (A) the Select Committee on Intelligence of the Senate; and
       (B) the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       (2) Element of the intelligence community.--The term 
     ``element of the intelligence community'' means an element of 
     the intelligence community listed in or designated under 
     section 3(4) of the National Security Act of 1947 (50 U.S.C. 
     401a(4)).
       (3) Intelligence community.--The term ``intelligence 
     community'' has the meaning given that term in section 3(4) 
     of the National Security Act of 1947 (50 U.S.C. 401a(4)).
              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

       (a) Specifications of Amounts and Personnel Levels.--The 
     amounts authorized to be appropriated under section 101 and, 
     subject to section 103, the authorized personnel ceilings as 
     of September 30, 2008, for the conduct of the intelligence 
     activities of the elements listed in paragraphs (1) through 
     (16) of section 101, are those specified in the classified 
     Schedule of Authorizations prepared to accompany the 
     conference report on the bill H.R. 2082 of the One Hundred 
     Tenth Congress.
       (b) Availability of Classified Schedule of 
     Authorizations.--The classified Schedule of Authorizations 
     referred to in subsection (a) shall be made available to the 
     Committee on Appropriations of the Senate, the Committee on 
     Appropriations of the House of Representatives, and to the 
     President. The President shall provide for suitable 
     distribution of the Schedule, or of appropriate portions of 
     the Schedule, within the executive branch.

     SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

       (a) Authority for Increases.--With the approval of the 
     Director of the Office of Management and Budget, the Director 
     of National Intelligence may authorize employment of civilian 
     personnel in excess of the number authorized for fiscal year 
     2008 by the classified Schedule of Authorizations referred to 
     in section 102(a) if the Director of National Intelligence 
     determines that such action is necessary to the performance 
     of important intelligence functions, except that the number 
     of personnel employed in excess of the number authorized 
     under such section may not, for any element of the 
     intelligence community, exceed 3 percent of the number of 
     civilian personnel authorized under such Schedule for such 
     element.
       (b) Transition to Full-Time Equivalency.--
       (1) Treatment for fiscal year 2008.--For fiscal year 2008, 
     the Director of National Intelligence, in consultation with 
     the head of each element of the intelligence community, may 
     treat the personnel ceilings authorized under the classified 
     Schedule of Authorizations referred to in section 102(a) as 
     full-time equivalents.
       (2) Consideration.--In exercising the authority described 
     in paragraph (1), the Director of National Intelligence may 
     consider the circumstances under which civilian employees are 
     employed and accounted for at each element of the 
     intelligence community in--
       (A) a student program, trainee program, or similar program;

[[Page 33234]]

       (B) reserve corps or equivalent status as a reemployed 
     annuitant or other employee;
       (C) a joint duty rotational assignment; or
       (D) other full-time or part-time status.
       (3) Notification to congress.--Not later than 90 days after 
     the date of the enactment of this Act, the Director of 
     National Intelligence shall notify the congressional 
     intelligence committees in writing of--
       (A) the policies for implementing the authorities described 
     in paragraphs (1) and (2); and
       (B) the number of all civilian personnel employed by, or 
     anticipated to be employed by, each element of the 
     intelligence community during fiscal year 2008 accounted 
     for--
       (i) by position;
       (ii) by full-time equivalency; or
       (iii) by any other method.
       (4) Treatment for fiscal year 2009.--The Director of 
     National Intelligence shall express the personnel levels for 
     all civilian employees for each element of the intelligence 
     community in the congressional budget justifications 
     submitted for fiscal year 2009 as full-time equivalent 
     positions.
       (c) Authority for Conversion of Activities Performed by 
     Contractors.--In addition to the authority in subsection (a), 
     upon a determination by the head of an element of the 
     intelligence community that activities currently being 
     performed by contractor employees should be performed by 
     government employees, the concurrence of the Director of 
     National Intelligence in such determination, and the approval 
     of the Director of the Office of Management and Budget, the 
     Director of National Intelligence may authorize for that 
     purpose employment of additional full-time equivalent 
     personnel in such element of the intelligence community equal 
     to the number that is--
       (1) in the case of personnel of Office of the Director of 
     National Intelligence, not more than 5 percent of the number 
     of such personnel authorized for fiscal year 2008 by the 
     classified Schedule of Authorizations referred to in section 
     102(a); or
       (2) except as provided in paragraph (1), not more than 10 
     percent of the number authorized for fiscal year 2008 by the 
     classified Schedule of Authorizations referred to in section 
     102(a).
       (d) Notice to Congressional Intelligence Committees.--The 
     Director of National Intelligence shall notify the 
     congressional intelligence committees in writing at least 15 
     days prior to each exercise of an authority described in 
     subsection (a) or (c).

     SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Intelligence Community Management 
     Account of the Director of National Intelligence for fiscal 
     year 2008 the sum of $734,126,000. Within such amount, funds 
     identified in the classified Schedule of Authorizations 
     referred to in section 102(a) for advanced research and 
     development shall remain available until September 30, 2009.
       (b) Authorized Personnel Levels.--The elements within the 
     Intelligence Community Management Account of the Director of 
     National Intelligence are authorized 952 full-time or full-
     time equivalent personnel as of September 30, 2008. Personnel 
     serving in such elements may be permanent employees of the 
     Office of the Director of National Intelligence or personnel 
     detailed from other elements of the United States Government.
       (c) Construction of Authorities.--The authorities available 
     to the Director of National Intelligence under section 103 
     are also available to the Director for the adjustment of 
     personnel levels within the Intelligence Community Management 
     Account.
       (d) Classified Authorizations.--
       (1) Authorization of appropriations.--In addition to 
     amounts authorized to be appropriated for the Intelligence 
     Community Management Account by subsection (a), there are 
     authorized to be appropriated for the Community Management 
     Account for fiscal year 2008 such additional amounts as are 
     specified in the classified Schedule of Authorizations 
     referred to in section 102(a). Such additional amounts for 
     advanced research and development shall remain available 
     until September 30, 2009.
       (2) Authorization of personnel.--In addition to the 
     personnel authorized by subsection (b) for elements of the 
     Intelligence Community Management Account as of September 30, 
     2008, there are authorized such additional personnel for the 
     Community Management Account as of that date as are specified 
     in the classified Schedule of Authorizations referred to in 
     section 102(a).
       (e) National Drug Intelligence Center.--
       (1) In general.--Of the amount authorized to be 
     appropriated in subsection (a), $39,000,000 shall be 
     available for the National Drug Intelligence Center. Within 
     such amount, funds provided for research, development, 
     testing, and evaluation purposes shall remain available until 
     September 30, 2009, and funds provided for procurement 
     purposes shall remain available until September 30, 2010.
       (2) Transfer of funds.--The Director of National 
     Intelligence shall transfer to the Attorney General funds 
     available for the National Drug Intelligence Center under 
     paragraph (1). The Attorney General shall utilize funds so 
     transferred for the activities of the National Drug 
     Intelligence Center.
       (3) Limitation.--Amounts available for the National Drug 
     Intelligence Center may not be used for purposes of 
     exercising police, subpoena, or law enforcement powers or 
     internal security functions.
       (4) Authority.--Notwithstanding any other provision of law, 
     the Attorney General shall retain full authority over the 
     operations of the National Drug Intelligence Center.

     SEC. 105. SPECIFIC AUTHORIZATION OF FUNDS WITHIN THE NATIONAL 
                   INTELLIGENCE PROGRAM FOR WHICH FISCAL YEAR 2008 
                   APPROPRIATIONS EXCEED AMOUNTS AUTHORIZED.

       Funds appropriated for an intelligence or intelligence-
     related activity within the National Intelligence Program for 
     fiscal year 2008 in excess of the amount specified for such 
     activity in the classified Schedule of Authorizations 
     referred to in section 102(a) shall be deemed to be 
     specifically authorized by Congress for purposes of section 
     504(a)(3) of the National Security Act of 1947 (50 U.S.C. 
     414(a)(3)).
 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated for the Central 
     Intelligence Agency Retirement and Disability Fund for fiscal 
     year 2008 the sum of $262,500,000.

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

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

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

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

     SEC. 302. ENHANCED FLEXIBILITY IN NONREIMBURSABLE DETAILS TO 
                   ELEMENTS OF THE INTELLIGENCE COMMUNITY.

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

     SEC. 303. MULTI-LEVEL SECURITY CLEARANCES.

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

     SEC. 304. PAY AUTHORITY FOR CRITICAL POSITIONS.

       Section 102A of the National Security Act of 1947 (50 
     U.S.C. 403-1), as amended by section 303 of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(t) Pay Authority for Critical Positions.--(1) 
     Notwithstanding any pay limitation established under any 
     other provision of law applicable to employees in elements of 
     the intelligence community, the Director of National 
     Intelligence may, in consultation with the Director of the 
     Office of Personnel Management and the Director of the Office 
     of Management and Budget, grant authority to fix the rate of 
     basic pay for 1 or more positions within the intelligence 
     community at a rate in excess of any applicable limitation, 
     subject to the provisions of this subsection. The exercise of 
     authority so granted is at the discretion of the head of the 
     department or agency employing the individual in a position 
     covered by such authority, subject to the provisions of this 
     subsection and any conditions established by the Director of 
     National Intelligence when granting such authority.
       ``(2) Authority under this subsection may be granted or 
     exercised--
       ``(A) only with respect to a position which requires an 
     extremely high level of expertise and is critical to 
     successful accomplishment of an important mission; and

[[Page 33235]]

       ``(B) only to the extent necessary to recruit or retain an 
     individual exceptionally well qualified for the position.
       ``(3) A rate of basic pay may not be fixed under this 
     subsection at a rate greater than the rate payable for level 
     II of the Executive Schedule under section 5312 of title 5, 
     United States Code, except upon written approval of the 
     Director of National Intelligence or as otherwise authorized 
     by law.
       ``(4) A rate of basic pay may not be fixed under this 
     subsection at a rate greater than the rate payable for level 
     I of the Executive Schedule under section 5311 of title 5, 
     United States Code, except upon written approval of the 
     President in response to a request by the Director of 
     National Intelligence or as otherwise authorized by law.
       ``(5) Any grant of authority under this subsection for a 
     position shall terminate at the discretion of the Director of 
     National Intelligence.''.

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

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

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

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

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

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

     SEC. 307. COMPREHENSIVE REPORT ON INTELLIGENCE COMMUNITY 
                   CONTRACTORS.

       (a) Requirement for Report.--Not later than March 31, 2008, 
     the Director of National Intelligence shall submit to the 
     congressional intelligence committees a report describing the 
     personal services activities performed by contractors across 
     the intelligence community, the impact of such contractors on 
     the intelligence community workforce, plans for conversion of 
     contractor employment into government employment, and the 
     accountability mechanisms that govern the performance of such 
     contractors.
       (b) Content.--
       (1) In general.--The report submitted under subsection (a) 
     shall include--
       (A) a description of any relevant regulations or guidance 
     issued by the Director of National Intelligence or the head 
     of an element of the intelligence community relating to 
     minimum standards required regarding the hiring, training, 
     security clearance, and assignment of contract personnel and 
     how those standards may differ from those for government 
     employees performing substantially similar functions;
       (B) an identification of contracts where the contractor is 
     providing a substantially similar functions to a government 
     employee;
       (C) an assessment of costs incurred or savings achieved by 
     awarding contracts for the performance of such functions 
     referred to in subparagraph (B) instead of using full-time 
     employees of the elements of the intelligence community to 
     perform such functions;
       (D) an assessment of the appropriateness of using 
     contractors to perform the activities described in paragraph 
     (2);
       (E) an estimate of the number of contracts, and the number 
     of personnel working under such contracts, related to the 
     performance of activities described in paragraph (2);
       (F) a comparison of the compensation of contract employees 
     and government employees performing substantially similar 
     functions;
       (G) an analysis of the attrition of government personnel 
     for contractor positions that provide substantially similar 
     functions;
       (H) a description of positions that will be converted from 
     contractor employment to government employment under the 
     authority described in section 103(c) of this Act and the 
     justification for such conversion;
       (I) an analysis of accountability mechanisms within 
     services contracts awarded for intelligence activities by 
     each element of the intelligence community during fiscal 
     years 2006 and 2007;
       (J) an analysis of procedures in use in the intelligence 
     community for conducting oversight of contractors to ensure 
     identification and prosecution of criminal violations, 
     financial waste, fraud, or other abuses committed by 
     contractors or contract personnel; and
       (K) an identification of best practices of accountability 
     mechanisms within services contracts.
       (2) Activities.--Activities described in this paragraph are 
     the following:
       (A) Intelligence collection.
       (B) Intelligence analysis.
       (C) Covert actions, including rendition, detention, and 
     interrogation activities.

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

       (a) Prohibition on Pay for Performance Until Report.--The 
     Director of National Intelligence and the head of an element 
     of the intelligence community may not implement a plan that 
     provides compensation to personnel of that element of the 
     intelligence community based on performance until the date 
     that is 45 days after the date on which the Director of 
     National Intelligence submits a report for that element under 
     subsection (b).
       (b) Report.--The Director of National Intelligence shall 
     submit to Congress a report on performance-based compensation 
     for each element of the intelligence community, including, 
     with respect to each such element--
       (1) an implementation time line which includes target dates 
     for completion of--
       (A) the development of performance appraisal plans;
       (B) establishment of oversight and appeal mechanisms;
       (C) deployment of information technology systems;
       (D) management training;
       (E) employee training;
       (F) compensation transition; and
       (G) full operational capacity;
       (2) an estimated budget for the implementation of the 
     performance-based compensation system;
       (3) an evaluation plan to monitor the implementation of the 
     performance-based compensation system and to improve and 
     modify such system;
       (4) written standards for measuring the performance of 
     employees;

[[Page 33236]]

       (5) a description of the performance-based compensation 
     system, including budget oversight mechanisms to ensure 
     sufficient funds to pay employees for bonuses;
       (6) a description of internal and external accountability 
     mechanisms to ensure the fair treatment of employees;
       (7) a plan for initial and ongoing training for senior 
     executives, managers, and employees;
       (8) a description of the role of any advisory committee or 
     other mechanism designed to gather the input of employees 
     relating to the creation and implementation of the system;
       (9) an assessment of the impact of the performance-based 
     compensation system on women, minorities, persons with 
     disabilities, and veterans; and
       (10) an assessment of the consistency of the plan described 
     in subsection (a) for such element with the plans of the 
     Director of National Intelligence for a performance-based 
     compensation system for the intelligence community.

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

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

     SEC. 311. VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS.

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


              ``VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS

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

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

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

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


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

       ``Sec. 506D. (a) Limitation on Obligation of Funds for 
     Intelligence Community Business System Modernization.--(1) 
     After April 1, 2008, no funds appropriated to any element of 
     the intelligence community may be obligated for an 
     intelligence community business system modernization 
     described in paragraph (2) unless--
       ``(A) the approval authority designated by the Director of 
     National Intelligence under subsection (c)(2) makes the 
     certification described in paragraph (3) with respect to the 
     intelligence community business system modernization; and
       ``(B) the certification is approved by the Intelligence 
     Community Business Systems Management Committee established 
     under subsection (f).
       ``(2) An intelligence community business system 
     modernization described in this paragraph is an intelligence 
     community business system modernization that--
       ``(A) will have a total cost in excess of $1,000,000; and
       ``(B) will receive more than 50 percent of the funds for 
     such cost from amounts appropriated for the National 
     Intelligence Program.
       ``(3) The certification described in this paragraph for an 
     intelligence community business system modernization is a 
     certification, made by the approval authority designated by 
     the Director under subsection (c)(2) to the Intelligence 
     Community Business Systems Management Committee, that the 
     intelligence community business system modernization--
       ``(A) complies with the enterprise architecture under 
     subsection (b); or
       ``(B) is necessary--
       ``(i) to achieve a critical national security capability or 
     address a critical requirement in an area such as safety or 
     security; or
       ``(ii) to prevent a significant adverse effect on a project 
     that is needed to achieve an essential capability, taking 
     into consideration the alternative solutions for preventing 
     such adverse effect.
       ``(4) The obligation of funds for an intelligence community 
     business system modernization that does not comply with the 
     requirements of this subsection shall be treated as a 
     violation of section 1341(a)(1)(A) of title 31, United States 
     Code.
       ``(b) Enterprise Architecture for Intelligence Community 
     Business Systems.--(1) The Director of National Intelligence 
     shall, acting through the Intelligence Community Business 
     Systems Management Committee established under subsection 
     (f), develop and implement an enterprise architecture to 
     cover all intelligence community business systems, and the 
     functions and activities supported by such business systems. 
     The enterprise architecture shall be sufficiently defined to 
     effectively guide, constrain, and permit implementation of 
     interoperable intelligence community business system 
     solutions, consistent with applicable policies and procedures 
     established by the Director of the Office of Management and 
     Budget.
       ``(2) The enterprise architecture under paragraph (1) shall 
     include the following:
       ``(A) An information infrastructure that, at a minimum, 
     will enable the intelligence community to--
       ``(i) comply with all Federal accounting, financial 
     management, and reporting requirements;
       ``(ii) routinely produce timely, accurate, and reliable 
     financial information for management purposes;
       ``(iii) integrate budget, accounting, and program 
     information and systems; and
       ``(iv) provide for the systematic measurement of 
     performance, including the ability to produce timely, 
     relevant, and reliable cost information.

[[Page 33237]]

       ``(B) Policies, procedures, data standards, and system 
     interface requirements that apply uniformly throughout the 
     intelligence community.
       ``(c) Responsibilities for Intelligence Community Business 
     System Modernization.--(1) The Director of National 
     Intelligence shall be responsible for review, approval, and 
     oversight of the planning, design, acquisition, deployment, 
     operation, and maintenance of an intelligence community 
     business system modernization if more than 50 percent of the 
     cost of the intelligence community business system 
     modernization is funded by amounts appropriated for the 
     National Intelligence Program.
       ``(2) The Director shall designate 1 or more appropriate 
     officials of the intelligence community to be responsible for 
     making certifications with respect to intelligence community 
     business system modernizations under subsection (a)(3).
       ``(d) Intelligence Community Business System Investment 
     Review.--(1) The approval authority designated under 
     subsection (c)(2) shall establish and implement, not later 
     than March 31, 2008, an investment review process for the 
     review of the planning, design, acquisition, development, 
     deployment, operation, maintenance, modernization, project 
     cost, benefits, and risks of the intelligence community 
     business systems for which the approval authority is 
     responsible.
       ``(2) The investment review process under paragraph (1) 
     shall--
       ``(A) meet the requirements of section 11312 of title 40, 
     United States Code; and
       ``(B) specifically set forth the responsibilities of the 
     approval authority under such review process.
       ``(3) The investment review process under paragraph (1) 
     shall include the following elements:
       ``(A) Review and approval by an investment review board 
     (consisting of appropriate representatives of the 
     intelligence community) of each intelligence community 
     business system as an investment before the obligation of 
     funds for such system.
       ``(B) Periodic review, but not less often than annually, of 
     every intelligence community business system investment.
       ``(C) Thresholds for levels of review to ensure appropriate 
     review of intelligence community business system investments 
     depending on the scope, complexity, and cost of the system 
     involved.
       ``(D) Procedures for making certifications in accordance 
     with the requirements of subsection (a)(3).
       ``(E) Mechanisms to ensure the consistency of the 
     investment review process with applicable guidance issued by 
     the Director of National Intelligence and the Intelligence 
     Community Business Systems Management Committee established 
     under subsection (f).
       ``(F) Common decision criteria, including standards, 
     requirements, and priorities, for purposes of ensuring the 
     integration of intelligence community business systems.
       ``(e) Budget Information.--For each fiscal year after 
     fiscal year 2009, the Director of National Intelligence shall 
     include in the materials the Director submits to Congress in 
     support of the budget for such fiscal year that is submitted 
     to Congress under section 1105 of title 31, United States 
     Code, the following information:
       ``(1) An identification of each intelligence community 
     business system for which funding is proposed in such budget.
       ``(2) An identification of all funds, by appropriation, 
     proposed in such budget for each such system, including--
       ``(A) funds for current services to operate and maintain 
     such system; and
       ``(B) funds for business systems modernization identified 
     for each specific appropriation.
       ``(3) For each such system, identification of approval 
     authority designated for such system under subsection (c)(2).
       ``(4) The certification, if any, made under subsection 
     (a)(3) with respect to each such system.
       ``(f) Intelligence Community Business Systems Management 
     Committee.--(1) The Director of National Intelligence shall 
     establish an Intelligence Community Business Systems 
     Management Committee (in this subsection referred to as the 
     `Committee').
       ``(2) The Committee shall--
       ``(A) recommend to the Director policies and procedures 
     necessary to effectively integrate all business activities 
     and any transformation, reform, reorganization, or process 
     improvement initiatives undertaken within the intelligence 
     community;
       ``(B) review and approve any major update of--
       ``(i) the enterprise architecture developed under 
     subsection (b); and
       ``(ii) any plans for an intelligence community business 
     systems modernization;
       ``(C) manage cross-domain integration consistent with such 
     enterprise architecture;
       ``(D) be responsible for coordinating initiatives for 
     intelligence community business system modernization to 
     maximize benefits and minimize costs for the intelligence 
     community, and periodically report to the Director on the 
     status of efforts to carry out an intelligence community 
     business system modernization;
       ``(E) ensure that funds are obligated for intelligence 
     community business system modernization in a manner 
     consistent with subsection (a); and
       ``(F) carry out such other duties as the Director shall 
     specify.
       ``(g) Relation to Annual Registration Requirements.--
     Nothing in this section shall be construed to alter the 
     requirements of section 8083 of the Department of Defense 
     Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 989), 
     with regard to information technology systems (as defined in 
     subsection (d) of such section).
       ``(h) Relation to Defense Business Systems Architecture, 
     Accountability, and Modernization Requirements.--An 
     intelligence community business system that receives more 
     than 50 percent of its funds from amounts available for the 
     National Intelligence Program shall be exempt from the 
     requirements of section 2222 of title 10, United States Code.
       ``(i) Relation to Clinger-Cohen Act.--(1) The Director of 
     National Intelligence and the Chief Information Officer of 
     the Intelligence Community shall fulfill the executive agency 
     responsibilities in chapter 113 of title 40, United States 
     Code, for any intelligence community business system that 
     receives more than 50 percent of its funding from amounts 
     appropriated for the National Intelligence Program.
       ``(2) Any intelligence community business system covered by 
     paragraph (1) shall be exempt from the requirements of such 
     chapter 113 that would otherwise apply to the executive 
     agency that contains the element of the intelligence 
     community involved.
       ``(j) Reports.--Not later than March 15 of each of the 
     years 2009 through 2014, the Director of National 
     Intelligence shall submit to the congressional intelligence 
     committees a report on the compliance of the intelligence 
     community with the requirements of this section. Each such 
     report shall--
       ``(1) describe actions taken and proposed for meeting the 
     requirements of subsection (a), including--
       ``(A) specific milestones and actual performance against 
     specified performance measures, and any revision of such 
     milestones and performance measures; and
       ``(B) specific actions on the intelligence community 
     business system modernizations submitted for certification 
     under such subsection;
       ``(2) identify the number of intelligence community 
     business system modernizations that received a certification 
     described in subsection (a)(3)(B); and
       ``(3) describe specific improvements in business operations 
     and cost savings resulting from successful intelligence 
     community business systems modernization efforts.
       ``(k) Definitions.--In this section:
       ``(1) The term `enterprise architecture' has the meaning 
     given that term in section 3601(4) of title 44, United States 
     Code.
       ``(2) The terms `information system' and `information 
     technology' have the meanings given those terms in section 
     11101 of title 40, United States Code.
       ``(3) The term `intelligence community business system' 
     means an information system, other than a national security 
     system, that is operated by, for, or on behalf of the 
     intelligence community, including financial systems, mixed 
     systems, financial data feeder systems, and the business 
     infrastructure capabilities shared by the systems of the 
     business enterprise architecture that build upon the core 
     infrastructure used to support business activities, such as 
     acquisition, financial management, logistics, strategic 
     planning and budgeting, installations and environment, and 
     human resource management.
       ``(4) The term `intelligence community business system 
     modernization' means--
       ``(A) the acquisition or development of a new intelligence 
     community business system; or
       ``(B) any significant modification or enhancement of an 
     existing intelligence community business system (other than 
     necessary to maintain current services).
       ``(5) The term `national security system' has the meaning 
     given that term in section 3542 of title 44, United States 
     Code.''.
       (2) Clerical amendment.--The table of contents in the first 
     section of that Act, as amended by sections 306 and 311 of 
     this Act, is further amended by inserting after the item 
     relating to section 506C, as added by section 311(b), the 
     following new item:

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

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

[[Page 33238]]

     as of December 31, 2006, that will not be a part of such 
     enterprise architecture, together with the schedule for the 
     phased termination of the utilization of any such systems.
       (iii) An identification of the intelligence community 
     business systems in operation or planned as of December 31, 
     2006, that will be a part of such enterprise architecture, 
     together with a strategy for modifying such systems to ensure 
     that such systems comply with such enterprise architecture.
       (C) Submission of acquisition strategy.--The Director shall 
     submit the acquisition strategy described in subparagraph 
     (B)(i) to the congressional intelligence committees not later 
     than March 1, 2008.

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

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


             ``REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS

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

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

     SEC. 314. EXCESSIVE COST GROWTH OF MAJOR SYSTEMS.

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


                ``EXCESSIVE COST GROWTH OF MAJOR SYSTEMS

       ``Sec. 506F. (a) Cost Increases of at Least 25 Percent.--
     (1)(A) On a continuing basis, and separate from the 
     submission of any report on a major system required by 
     section 506E of this Act, the program manager shall determine 
     if the acquisition cost of such major system has increased by 
     at least 25 percent as compared to the baseline cost of such 
     major system.
       ``(B) Not later than 10 days after the date that a program 
     manager determines that an increase described in subparagraph 
     (A) has occurred, the program manager shall submit to the 
     Director of National Intelligence notification of such 
     increase.
       ``(2)(A) If, after receiving a notification described in 
     paragraph (1)(B), the Director of National Intelligence 
     determines that the acquisition cost of a major system has 
     increased by at least 25 percent, the Director shall submit 
     to the congressional intelligence committees a written 
     notification of such determination as described in 
     subparagraph (B), a description of the amount of the increase 
     in the acquisition cost of such major system, and a 
     certification as described in subparagraph (C).
       ``(B) The notification required by subparagraph (A) shall 
     include--
       ``(i) an updated cost estimate;
       ``(ii) the date on which the determination covered by such 
     notification was made;
       ``(iii) contract performance assessment information with 
     respect to each significant contract or sub-contract related 
     to such major system, including the name of the contractor, 
     the phase of the contract at the time of the report, the 
     percentage of work under the contract that has been 
     completed, any change in contract cost, the percentage by 
     which the contract is currently ahead or behind schedule, and 
     a summary explanation of significant occurrences, such as 
     cost and schedule variances, and the effect of such 
     occurrences on future costs and schedules;
       ``(iv) the prior estimate of the full life-cycle cost for 
     such major system, expressed in constant dollars and in 
     current year dollars;
       ``(v) the current estimated full life-cycle cost of such 
     major system, expressed in constant dollars and current year 
     dollars;
       ``(vi) a statement of the reasons for any increases in the 
     full life-cycle cost of such major system;
       ``(vii) the current change and the total change, in dollars 
     and expressed as a percentage, in the full life-cycle cost 
     applicable to such major system, stated both in constant 
     dollars and current year dollars;
       ``(viii) the completion status of such major system 
     expressed as the percentage--
       ``(I) of the total number of years for which funds have 
     been appropriated for such major system compared to the 
     number of years for which it is planned that such funds will 
     be appropriated; and
       ``(II) of the amount of funds that have been appropriated 
     for such major system compared to the total amount of such 
     funds which it is planned will be appropriated;
       ``(ix) the action taken and proposed to be taken to control 
     future cost growth of such major system; and
       ``(x) any changes made in the performance or schedule of 
     such major system and the extent to which such changes have 
     contributed to the increase in full life-cycle costs of such 
     major system.
       ``(C) The certification described in this subparagraph is a 
     written certification made by the Director and submitted to 
     the congressional intelligence committees that--
       ``(i) the acquisition of such major system is essential to 
     the national security;
       ``(ii) there are no alternatives to such major system that 
     will provide equal or greater intelligence capability at 
     equal or lesser cost to completion;
       ``(iii) the new estimates of the full life-cycle cost for 
     such major system are reasonable; and
       ``(iv) the management structure for the acquisition of such 
     major system is adequate to manage and control full life-
     cycle cost of such major system.
       ``(b) Cost Increases of at Least 50 Percent.--(1)(A) On a 
     continuing basis, and separate from the submission of any 
     report on a major system required by section 506E of this 
     Act, the program manager shall determine if the acquisition 
     cost of such major system has increased by at least 50 
     percent as compared to the baseline cost of such major 
     system.
       ``(B) Not later than 10 days after the date that a program 
     manager determines that an increase described in subparagraph 
     (A) has occurred, the program manager shall submit to the 
     Director of National Intelligence notification of such 
     increase.
       ``(2) If, after receiving a notification described in 
     paragraph (1)(B), the Director of National Intelligence 
     determines that the acquisition cost of a major system has 
     increased by at least 50 percent as compared to the baseline 
     cost of such major system, the Director shall submit to the 
     congressional intelligence committees a written certification 
     stating that--
       ``(A) the acquisition of such major system is essential to 
     the national security;
       ``(B) there are no alternatives to such major system that 
     will provide equal or greater intelligence capability at 
     equal or lesser cost to completion;
       ``(C) the new estimates of the full life-cycle cost for 
     such major system are reasonable; and
       ``(D) the management structure for the acquisition of such 
     major system is adequate to manage and control the full life-
     cycle cost of such major system.
       ``(3) In addition to the certification required by 
     paragraph (2), the Director of National Intelligence shall 
     submit to the congressional intelligence committees an 
     updated notification, with

[[Page 33239]]

     current accompanying information, as required by subsection 
     (a)(2).
       ``(c) Prohibition on Obligation of Funds.--(1) If a written 
     certification required under subsection (a)(2)(A) is not 
     submitted to the congressional intelligence committees within 
     60 days of the determination made under subsection (a)(1), 
     funds appropriated for the acquisition of a major system may 
     not be obligated for a major contract under the program. Such 
     prohibition on the obligation of funds shall cease to apply 
     at the end of the 30-day period of a continuous session of 
     Congress that begins on the date on which Congress receives 
     the notification required under subsection (a)(2)(A).
       ``(2) If a written certification required under subsection 
     (b)(2) is not submitted to the congressional intelligence 
     committees within 60 days of the determination made under 
     subsection (b)(2), funds appropriated for the acquisition of 
     a major system may not be obligated for a major contract 
     under the program. Such prohibition on the obligation of 
     funds for the acquisition of a major system shall cease to 
     apply at the end of the 30-day period of a continuous session 
     of Congress that begins on the date on which Congress 
     receives the notification required under subsection (b)(3).
       ``(d) Definitions.--In this section:
       ``(1) The term `acquisition cost' has the meaning given 
     that term in section 506E(d).
       ``(2) The term `baseline cost', with respect to a major 
     system, means the projected acquisition cost of such system 
     that is approved by the Director of National Intelligence at 
     Milestone B or an equivalent acquisition decision for the 
     development, procurement, and construction of such system. 
     The baseline cost may be in the form of an independent cost 
     estimate.
       ``(3) The term `full life-cycle cost' has the meaning given 
     that term in section 506E(d).
       ``(4) The term `independent cost estimate' has the meaning 
     given that term in section 506A(e).
       ``(5) The term `major system' has the meaning given that 
     term in section 506A(e).
       ``(6) The term `Milestone B' means a decision to enter into 
     system development and demonstration pursuant to guidance 
     prescribed by the Director of National Intelligence.
       ``(7) The term `program manager', with respect to a major 
     system, means--
       ``(A) the head of the element of the intelligence community 
     which is responsible for the budget, cost, schedule, and 
     performance of the major system; or
       ``(B) in the case of a major system within the Office of 
     the Director of National Intelligence, the deputy who is 
     responsible for the budget, cost, schedule, and performance 
     of the major system.''.
       (b) Clerical Amendment.--The table of contents in the first 
     section of that Act, as amended by sections 304, 311, 312, 
     and 313 of this Act, is further amended by inserting after 
     the items relating to section 506E, as added by section 
     313(b), the following new item:

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

     SEC. 321. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

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

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

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

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

     SEC. 324. PROTECTION OF CERTAIN NATIONAL SECURITY 
                   INFORMATION.

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

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

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

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

       (a) Report Required.--Not later than 45 days after the date 
     of the enactment of this Act, the Director of National 
     Intelligence shall submit to the congressional intelligence 
     committees a comprehensive report on all measures taken by 
     the Office of the Director of National Intelligence and by 
     each element, if any, of the intelligence community with 
     relevant responsibilities to comply with the provisions of 
     the Detainee Treatment Act of 2005 (title X of division A of 
     Public Law 109-148; 119 Stat. 2739) and related provisions of 
     the Military Commissions Act of 2006 (Public Law 109-366; 120 
     Stat. 2600).
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) A description of the detention or interrogation 
     methods, if any, that have been determined to comply with 
     section 1003 of the Detainee Treatment Act of 2005 (119 Stat. 
     2739; 42 U.S.C. 2000dd) and section 6 of the Military 
     Commissions Act of 2006 (120 Stat. 2632; 18 U.S.C. 2441 note) 
     (including the amendments made by such section 6), and, with 
     respect to each such method--
       (A) an identification of the official making such 
     determination; and
       (B) a statement of the basis for such determination.
       (2) A description of the detention or interrogation 
     methods, if any, whose use has been discontinued pursuant to 
     the Detainee Treatment Act of 2005 or the Military Commission 
     Act of 2006, and, with respect to each such method--
       (A) an identification of the official making the 
     determination to discontinue such method; and
       (B) a statement of the basis for such determination.
       (3) A description of any actions that have been taken to 
     implement section 1004 of the Detainee Treatment Act of 2005 
     (119 Stat. 2740; 42 U.S.C. 2000dd-1), and, with respect to 
     each such action--
       (A) an identification of the official taking such action; 
     and
       (B) a statement of the basis for such action.
       (4) Any other matters that the Director considers necessary 
     to fully and currently inform the congressional intelligence 
     committees about the implementation of the Detainee Treatment 
     Act of 2005 and related provisions of the Military 
     Commissions Act of 2006.
       (5) An appendix containing--
       (A) all guidelines for the application of the Detainee 
     Treatment Act of 2005 and related provisions of the Military 
     Commissions Act of 2006 to the detention or interrogation 
     activities, if any, of any element of the intelligence 
     community; and
       (B) the legal justifications of any office of the 
     Department of Justice about the meaning or application of the 
     Detainee Treatment Act of 2005 or related provisions of the 
     Military Commissions Act of 2006 with respect to the 
     detention or interrogation activities, if any, of any element 
     of the intelligence community.
       (c) Form.--The report required by subsection (a) shall be 
     submitted in classified form.
       (d) Submission to the Congressional Armed Services 
     Committees.--To the extent that the report required by 
     subsection (a) addresses an element of the intelligence 
     community within the Department of Defense, that portion of 
     the report, and any associated material that is necessary to 
     make that portion understandable, shall also be submitted by 
     the Director of National Intelligence to the congressional 
     armed services committees.
       (e) Congressional Armed Services Committee Defined.--In 
     this section, the term ``congressional armed services 
     committees'' means--
       (1) the Committee on Armed Services of the Senate; and
       (2) the Committee on Armed Services of the House of 
     Representatives.

     SEC. 327. LIMITATION ON INTERROGATION TECHNIQUES.

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

     SEC. 328. LIMITATION ON USE OF FUNDS.

       Not more than 30 percent of the funds authorized to be 
     appropriated for the Expenditure Center referred to on page 
     157 of Volume VI, Book 1 of the Fiscal Year 2008 - Fiscal 
     Year 2009 Congressional Budget Justification, National 
     Intelligence Program, may be obligated or expended

[[Page 33240]]

     until each member of the congressional intelligence 
     committees has been fully and currently informed with respect 
     to intelligence regarding a facility in Syria subject to 
     reported military action by the State of Israel on September 
     6, 2007, including intelligence relating to any agent or 
     citizen of North Korea, Iran, or any other foreign country 
     present at the facility, and any intelligence provided to the 
     Federal Government by a foreign country regarding the 
     facility (as available).

     SEC. 329. INCORPORATION OF REPORTING REQUIREMENTS.

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

     SEC. 330. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

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

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

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

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

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

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

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

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

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

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

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

     SEC. 406. COMPREHENSIVE LISTING OF SPECIAL ACCESS PROGRAMS.

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

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

       (a) Requirement for Reports.--Not less frequently than once 
     during fiscal year 2008 and twice during fiscal year 2009, 
     the Director of National Intelligence shall submit to the 
     congressional intelligence committees a report on the 
     intentions and capabilities of the Islamic Republic of Iran 
     and the Democratic People's Republic of Korea, with regard to 
     the nuclear programs of each such country.
       (b) Content.--Each report submitted by subsection (a) shall 
     include, with respect of the Islamic Republic of Iran and the 
     Democratic People's Republic of Korea--
       (1) an assessment of nuclear weapons programs of each such 
     country;
       (2) an evaluation, consistent with existing reporting 
     standards and practices, of the sources upon which the 
     intelligence used to prepare the assessment described in 
     paragraph (1) is based, including the number of such sources 
     and an assessment of the reliability of each such source;
       (3) a summary of any intelligence related to any such 
     program gathered or developed since the previous report was 
     submitted under subsection (a), including intelligence 
     collected from both open and clandestine sources for each 
     such country; and
       (4) a discussion of any dissents, caveats, gaps in 
     knowledge, or other information that would reduce confidence 
     in the assessment described in paragraph (1).
       (c) National Intelligence Estimate.--The Director of 
     National Intelligence may submit a National Intelligence 
     Estimate on the intentions and capabilities of the Islamic 
     Republic of Iran and the Democratic People's Republic of 
     Korea in lieu of a report required by subsection (a).
       (d) Form.--Each report submitted under subsection (a) may 
     be submitted in classified form.

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

       (a) Responsibility of the Director of National 
     Intelligence.--Subsection (b) of section 102 of the National 
     Security Act of 1947 (50 U.S.C. 403) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3)--
       (A) by striking ``2004,'' and inserting ``2004 (50 U.S.C. 
     403 note),''; and
       (B) by striking the period at the end and inserting a 
     semicolon and ``and''; and
       (3) by inserting after paragraph (3), the following new 
     paragraph:
       ``(4) conduct accountability reviews of elements of the 
     intelligence community and the personnel of such elements, if 
     appropriate.''.

[[Page 33241]]

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

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

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

     SEC. 410. AUTHORITIES FOR INTELLIGENCE INFORMATION SHARING.

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

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

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

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

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

     SEC. 413. INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY.

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


           ``INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY

       ``Sec. 103H. (a) Office of Inspector General of 
     Intelligence Community.--There is within the Office of the 
     Director of National Intelligence an Office of the Inspector 
     General of the Intelligence Community.
       ``(b) Purpose.--The purpose of the Office of the Inspector 
     General of the Intelligence Community is to--
       ``(1) create an objective and effective office, 
     appropriately accountable to Congress, to initiate and 
     conduct independently investigations, inspections, and audits 
     on matters within the responsibility and authority of the 
     Director of National Intelligence;
       ``(2) recommend policies designed--
       ``(A) to promote economy, efficiency, and effectiveness in 
     the administration and implementation of matters within the 
     responsibility and authority of the Director of National 
     Intelligence; and
       ``(B) to prevent and detect fraud and abuse in such 
     matters;
       ``(3) provide a means for keeping the Director of National 
     Intelligence fully and currently informed about--
       ``(A) problems and deficiencies relating to matters within 
     the responsibility and authority of the Director of National 
     Intelligence; and
       ``(B) the necessity for, and the progress of, corrective 
     actions; and
       ``(4) in the manner prescribed by this section, ensure that 
     the congressional intelligence committees are kept similarly 
     informed of--
       ``(A) significant problems and deficiencies relating to 
     matters within the responsibility and authority of the 
     Director of National Intelligence; and
       ``(B) the necessity for, and the progress of, corrective 
     actions.
       ``(c) Inspector General of Intelligence Community.--(1) 
     There is an Inspector General of the Intelligence Community, 
     who shall be the head of the Office of the Inspector General 
     of the Intelligence Community, who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       ``(2) The nomination of an individual for appointment as 
     Inspector General shall be made--
       ``(A) without regard to political affiliation;
       ``(B) solely on the basis of integrity, compliance with the 
     security standards of the intelligence community, and prior 
     experience in the field of intelligence or national security; 
     and
       ``(C) on the basis of demonstrated ability in accounting, 
     financial analysis, law, management analysis, public 
     administration, or auditing.
       ``(3) The Inspector General shall report directly to and be 
     under the general supervision of the Director of National 
     Intelligence.
       ``(4) The Inspector General may be removed from office only 
     by the President. The President shall immediately communicate 
     in writing to the congressional intelligence committees the 
     reasons for the removal of any individual from the position 
     of Inspector General.
       ``(d) Duties and Responsibilities.--Subject to subsections 
     (g) and (h), it shall be the duty and responsibility of the 
     Inspector General of the Intelligence Community--
       ``(1) to provide policy direction for, and to plan, 
     conduct, supervise, and coordinate independently, the 
     investigations, inspections, and audits relating to matters 
     within the responsibility and authority of the Director of 
     National Intelligence to ensure they are conducted 
     efficiently and in accordance with applicable law and 
     regulations;
       ``(2) to keep the Director of National Intelligence fully 
     and currently informed concerning violations of law and 
     regulations, violations of civil liberties and privacy, fraud 
     and other serious problems, abuses, and deficiencies that may 
     occur in matters within the responsibility and authority of 
     the Director, and to report the progress made in implementing 
     corrective action;
       ``(3) to take due regard for the protection of intelligence 
     sources and methods in the preparation of all reports issued 
     by the Inspector General, and, to the extent consistent with 
     the purpose and objective of such reports, take such measures 
     as may be appropriate to minimize the

[[Page 33242]]

     disclosure of intelligence sources and methods described in 
     such reports; and
       ``(4) in the execution of the duties and responsibilities 
     under this section, to comply with generally accepted 
     government auditing standards.
       ``(e) Limitations on Activities.--(1) The Director of 
     National Intelligence may prohibit the Inspector General of 
     the Intelligence Community from initiating, carrying out, or 
     completing any investigation, inspection, or audit if the 
     Director determines that such prohibition is necessary to 
     protect vital national security interests of the United 
     States.
       ``(2) If the Director exercises the authority under 
     paragraph (1), the Director shall submit an appropriately 
     classified statement of the reasons for the exercise of such 
     authority within 7 days to the congressional intelligence 
     committees.
       ``(3) The Director shall advise the Inspector General at 
     the time a report under paragraph (2) is submitted, and, to 
     the extent consistent with the protection of intelligence 
     sources and methods, provide the Inspector General with a 
     copy of such report.
       ``(4) The Inspector General may submit to the congressional 
     intelligence committees any comments on a report of which the 
     Inspector General has notice under paragraph (3) that the 
     Inspector General considers appropriate.
       ``(f) Authorities.--(1) The Inspector General of the 
     Intelligence Community shall have direct and prompt access to 
     the Director of National Intelligence when necessary for any 
     purpose pertaining to the performance of the duties of the 
     Inspector General.
       ``(2)(A) The Inspector General shall have access to any 
     employee, or any employee of a contractor, of any element of 
     the intelligence community whose testimony is needed for the 
     performance of the duties of the Inspector General.
       ``(B) The Inspector General shall have direct access to all 
     records, reports, audits, reviews, documents, papers, 
     recommendations, or other material which relate to the 
     programs and operations with respect to which the Inspector 
     General has responsibilities under this section.
       ``(C) The level of classification or compartmentation of 
     information shall not, in and of itself, provide a sufficient 
     rationale for denying the Inspector General access to any 
     materials under subparagraph (B).
       ``(D) Failure on the part of any employee, or any employee 
     of a contractor, of any element of the intelligence community 
     to cooperate with the Inspector General shall be grounds for 
     appropriate administrative actions by the Director or, on the 
     recommendation of the Director, other appropriate officials 
     of the intelligence community, including loss of employment 
     or the termination of an existing contractual relationship.
       ``(3) The Inspector General is authorized to receive and 
     investigate complaints or information from any person 
     concerning the existence of an activity constituting a 
     violation of laws, rules, or regulations, or mismanagement, 
     gross waste of funds, abuse of authority, or a substantial 
     and specific danger to the public health and safety. Once 
     such complaint or information has been received from an 
     employee of the Federal Government--
       ``(A) the Inspector General shall not disclose the identity 
     of the employee without the consent of the employee, unless 
     the Inspector General determines that such disclosure is 
     unavoidable during the course of the investigation or the 
     disclosure is made to an official of the Department of 
     Justice responsible for determining whether a prosecution 
     should be undertaken; and
       ``(B) no action constituting a reprisal, or threat of 
     reprisal, for making such complaint may be taken by any 
     employee in a position to take such actions, unless the 
     complaint was made or the information was disclosed with the 
     knowledge that it was false or with willful disregard for its 
     truth or falsity.
       ``(4) The Inspector General shall have authority to 
     administer to or take from any person an oath, affirmation, 
     or affidavit, whenever necessary in the performance of the 
     duties of the Inspector General, which oath, affirmation, or 
     affidavit when administered or taken by or before an employee 
     of the Office of the Inspector General of the Intelligence 
     Community designated by the Inspector General shall have the 
     same force and effect as if administered or taken by, or 
     before, an officer having a seal.
       ``(5)(A) Except as provided in subparagraph (B), the 
     Inspector General is authorized to require by subpoena the 
     production of all information, documents, reports, answers, 
     records, accounts, papers, and other data and documentary 
     evidence necessary in the performance of the duties and 
     responsibilities of the Inspector General.
       ``(B) In the case of departments, agencies, and other 
     elements of the United States Government, the Inspector 
     General shall obtain information, documents, reports, 
     answers, records, accounts, papers, and other data and 
     evidence for the purpose specified in subparagraph (A) using 
     procedures other than by subpoenas.
       ``(C) The Inspector General may not issue a subpoena for, 
     or on behalf of, any other element of the intelligence 
     community, including the Office of the Director of National 
     Intelligence.
       ``(D) In the case of contumacy or refusal to obey a 
     subpoena issued under this paragraph, the subpoena shall be 
     enforceable by order of any appropriate district court of the 
     United States.
       ``(g) Coordination Among Inspectors General of Intelligence 
     Community.--(1)(A) In the event of a matter within the 
     jurisdiction of the Inspector General of the Intelligence 
     Community that may be subject to an investigation, 
     inspection, or audit by both the Inspector General of the 
     Intelligence Community and an Inspector General, whether 
     statutory or administrative, with oversight responsibility 
     for an element or elements of the intelligence community, the 
     Inspector General of the Intelligence Community and such 
     other Inspector or Inspectors General shall expeditiously 
     resolve the question of which Inspector General shall conduct 
     such investigation, inspection, or audit.
       ``(B) In attempting to resolve a question under 
     subparagraph (A), the Inspectors General concerned may 
     request the assistance of the Intelligence Community 
     Inspectors General Forum established under subparagraph (C). 
     In the event of a dispute between an Inspector General within 
     an agency or department of the United States Government and 
     the Inspector General of the Intelligence Community that has 
     not been resolved with the assistance of the Forum, the 
     Inspectors General shall submit the question to the Director 
     of National Intelligence and the head of the agency or 
     department for resolution.
       ``(C) There is established the Intelligence Community 
     Inspectors General Forum which shall consist of all statutory 
     or administrative Inspectors General with oversight 
     responsibility for an element or elements of the intelligence 
     community. The Inspector General of the Intelligence 
     Community shall serve as the chair of the Forum. The Forum 
     shall have no administrative authority over any Inspector 
     General, but shall serve as a mechanism for informing its 
     members of the work of individual members of the Forum that 
     may be of common interest and discussing questions about 
     jurisdiction or access to employees, employees of a 
     contractor, records, audits, reviews, documents, 
     recommendations, or other materials that may involve or be of 
     assistance to more than 1 of its members.
       ``(2) The Inspector General conducting an investigation, 
     inspection, or audit covered by paragraph (1) shall submit 
     the results of such investigation, inspection, or audit to 
     any other Inspector General, including the Inspector General 
     of the Intelligence Community, with jurisdiction to conduct 
     such investigation, inspection, or audit who did not conduct 
     such investigation, inspection, or audit.
       ``(h) Staff and Other Support.--(1) The Inspector General 
     of the Intelligence Community shall be provided with 
     appropriate and adequate office space at central and field 
     office locations, together with such equipment, office 
     supplies, maintenance services, and communications facilities 
     and services as may be necessary for the operation of such 
     offices.
       ``(2)(A) Subject to applicable law and the policies of the 
     Director of National Intelligence, the Inspector General 
     shall select, appoint, and employ such officers and employees 
     as may be necessary to carry out the functions of the 
     Inspector General. The Inspector General shall ensure that 
     any officer or employee so selected, appointed, or employed 
     has security clearances appropriate for the assigned duties 
     of such officer or employee.
       ``(B) In making selections under subparagraph (A), the 
     Inspector General shall ensure that such officers and 
     employees have the requisite training and experience to 
     enable the Inspector General to carry out the duties of the 
     Inspector General effectively.
       ``(C) In meeting the requirements of this paragraph, the 
     Inspector General shall create within the Office of the 
     Inspector General of the Intelligence Community a career 
     cadre of sufficient size to provide appropriate continuity 
     and objectivity needed for the effective performance of the 
     duties of the Inspector General.
       ``(3)(A) Subject to the concurrence of the Director, the 
     Inspector General may request such information or assistance 
     as may be necessary for carrying out the duties and 
     responsibilities of the Inspector General from any 
     department, agency, or other element of the United States 
     Government.
       ``(B) Upon request of the Inspector General for information 
     or assistance under subparagraph (A), the head of the 
     department, agency, or element concerned shall, insofar as is 
     practicable and not in contravention of any existing 
     statutory restriction or regulation of the department, 
     agency, or element, furnish to the Inspector General, or to 
     an authorized designee, such information or assistance.
       ``(C) The Inspector General of the Intelligence Community 
     may, upon reasonable notice to the head of any element of the 
     intelligence community, conduct, as authorized by this 
     section, an investigation, inspection, or audit of such 
     element and may enter into any place occupied by such element 
     for purposes of the performance of the duties of the 
     Inspector General.
       ``(i) Reports.--(1)(A) The Inspector General of the 
     Intelligence Community shall, not later than January 31 and 
     July 31 of each year, prepare and submit to the Director of 
     National Intelligence a classified, and, as appropriate, 
     unclassified semiannual report summarizing the activities of 
     the Office of the Inspector General of the Intelligence 
     Community during the immediately preceding 6-month period 
     ending December 31 (of the preceding year) and June 30, 
     respectively. The Inspector General of the Intelligence 
     Community shall provide any portion of the report involving a 
     component of a department of the United States Government to 
     the head of that department simultaneously with submission of 
     the report to the Director of National Intelligence.
       ``(B) Each report under this paragraph shall include, at a 
     minimum, the following:
       ``(i) A list of the title or subject of each investigation, 
     inspection, or audit conducted during the period covered by 
     such report, including a

[[Page 33243]]

     summary of the progress of each particular investigation, 
     inspection, or audit since the preceding report of the 
     Inspector General under this paragraph.
       ``(ii) A description of significant problems, abuses, and 
     deficiencies relating to the administration and 
     implementation of programs and operations of the intelligence 
     community, and in the relationships between elements of the 
     intelligence community, identified by the Inspector General 
     during the period covered by such report.
       ``(iii) A description of the recommendations for corrective 
     or disciplinary action made by the Inspector General during 
     the period covered by such report with respect to significant 
     problems, abuses, or deficiencies identified in clause (ii).
       ``(iv) A statement whether or not corrective or 
     disciplinary action has been completed on each significant 
     recommendation described in previous semiannual reports, and, 
     in a case where corrective action has been completed, a 
     description of such corrective action.
       ``(v) A certification whether or not the Inspector General 
     has had full and direct access to all information relevant to 
     the performance of the functions of the Inspector General.
       ``(vi) A description of the exercise of the subpoena 
     authority under subsection (f)(5) by the Inspector General 
     during the period covered by such report.
       ``(vii) Such recommendations as the Inspector General 
     considers appropriate for legislation to promote economy, 
     efficiency, and effectiveness in the administration and 
     implementation of matters within the responsibility and 
     authority of the Director of National Intelligence, and to 
     detect and eliminate fraud and abuse in such matters.
       ``(C) Not later than the 30 days after the date of receipt 
     of a report under subparagraph (A), the Director shall 
     transmit the report to the congressional intelligence 
     committees together with any comments the Director considers 
     appropriate. The Director shall transmit to the committees of 
     the Senate and of the House of Representatives with 
     jurisdiction over a department of the United States 
     Government any portion of the report involving a component of 
     such department simultaneously with submission of the report 
     to the congressional intelligence committees.
       ``(2)(A) The Inspector General shall report immediately to 
     the Director whenever the Inspector General becomes aware of 
     particularly serious or flagrant problems, abuses, or 
     deficiencies relating to matters within the responsibility 
     and authority of the Director of National Intelligence.
       ``(B) The Director shall transmit to the congressional 
     intelligence committees each report under subparagraph (A) 
     within 7 calendar days of receipt of such report, together 
     with such comments as the Director considers appropriate. The 
     Director shall transmit to the committees of the Senate and 
     of the House of Representatives with jurisdiction over a 
     department of the United States Government any portion of 
     each report under subparagraph (A) that involves a problem, 
     abuse, or deficiency related to a component of such 
     department simultaneously with transmission of the report to 
     the congressional intelligence committees.
       ``(3) In the event that--
       ``(A) the Inspector General is unable to resolve any 
     differences with the Director affecting the execution of the 
     duties or responsibilities of the Inspector General;
       ``(B) an investigation, inspection, or audit carried out by 
     the Inspector General focuses on any current or former 
     intelligence community official who--
       ``(i) holds or held a position in an element of the 
     intelligence community that is subject to appointment by the 
     President, whether or not by and with the advice and consent 
     of the Senate, including such a position held on an acting 
     basis;
       ``(ii) holds or held a position in an element of the 
     intelligence community, including a position held on an 
     acting basis, that is appointed by the Director of National 
     Intelligence; or
       ``(iii) holds or held a position as head of an element of 
     the intelligence community or a position covered by 
     subsection (b) or (c) of section 106;
       ``(C) a matter requires a report by the Inspector General 
     to the Department of Justice on possible criminal conduct by 
     a current or former official described in subparagraph (B);
       ``(D) the Inspector General receives notice from the 
     Department of Justice declining or approving prosecution of 
     possible criminal conduct of any current or former official 
     described in subparagraph (B); or
       ``(E) the Inspector General, after exhausting all possible 
     alternatives, is unable to obtain significant documentary 
     information in the course of an investigation, inspection, or 
     audit,
     the Inspector General shall immediately notify and submit a 
     report on such matter to the congressional intelligence 
     committees.
       ``(4) Pursuant to title V, the Director shall submit to the 
     congressional intelligence committees any report or findings 
     and recommendations of an investigation, inspection, or audit 
     conducted by the office which has been requested by the 
     Chairman or Vice Chairman or Ranking Minority Member of 
     either committee.
       ``(5)(A) An employee of an element of the intelligence 
     community, an employee assigned or detailed to an element of 
     the intelligence community, or an employee of a contractor to 
     the intelligence community who intends to report to Congress 
     a complaint or information with respect to an urgent concern 
     may report such complaint or information to the Inspector 
     General.
       ``(B) Not later than the end of the 14-calendar day period 
     beginning on the date of receipt from an employee of a 
     complaint or information under subparagraph (A), the 
     Inspector General shall determine whether the complaint or 
     information appears credible. Upon making such a 
     determination, the Inspector General shall transmit to the 
     Director a notice of that determination, together with the 
     complaint or information.
       ``(C) Upon receipt of a transmittal from the Inspector 
     General under subparagraph (B), the Director shall, within 7 
     calendar days of such receipt, forward such transmittal to 
     the congressional intelligence committees, together with any 
     comments the Director considers appropriate.
       ``(D)(i) If the Inspector General does not find credible 
     under subparagraph (B) a complaint or information submitted 
     under subparagraph (A), or does not transmit the complaint or 
     information to the Director in accurate form under 
     subparagraph (B), the employee (subject to clause (ii)) may 
     submit the complaint or information to Congress by contacting 
     either or both of the congressional intelligence committees 
     directly.
       ``(ii) An employee may contact the intelligence committees 
     directly as described in clause (i) only if the employee--
       ``(I) before making such a contact, furnishes to the 
     Director, through the Inspector General, a statement of the 
     employee's complaint or information and notice of the 
     employee's intent to contact the congressional intelligence 
     committees directly; and
       ``(II) obtains and follows from the Director, through the 
     Inspector General, direction on how to contact the 
     intelligence committees in accordance with appropriate 
     security practices.
       ``(iii) A member or employee of 1 of the congressional 
     intelligence committees who receives a complaint or 
     information under clause (i) does so in that member or 
     employee's official capacity as a member or employee of such 
     committee.
       ``(E) The Inspector General shall notify an employee who 
     reports a complaint or information to the Inspector General 
     under this paragraph of each action taken under this 
     paragraph with respect to the complaint or information. Such 
     notice shall be provided not later than 3 days after any such 
     action is taken.
       ``(F) An action taken by the Director or the Inspector 
     General under this paragraph shall not be subject to judicial 
     review.
       ``(G) In this paragraph, the term `urgent concern' means 
     any of the following:
       ``(i) A serious or flagrant problem, abuse, violation of 
     law or Executive order, or deficiency relating to the 
     funding, administration, or operation of an intelligence 
     activity involving classified information, but does not 
     include differences of opinions concerning public policy 
     matters.
       ``(ii) A false statement to Congress, or a willful 
     withholding from Congress, on an issue of material fact 
     relating to the funding, administration, or operation of an 
     intelligence activity.
       ``(iii) An action, including a personnel action described 
     in section 2302(a)(2)(A) of title 5, United States Code, 
     constituting reprisal or threat of reprisal prohibited under 
     subsection (f)(3)(B) of this section in response to an 
     employee's reporting an urgent concern in accordance with 
     this paragraph.
       ``(H) In support of this paragraph, Congress makes the 
     findings set forth in paragraphs (1) through (6) of section 
     701(b) of the Intelligence Community Whistleblower Protection 
     Act of 1998 (title VII of Public Law 105-272; 5 U.S.C. App. 
     8H note).
       ``(6) In accordance with section 535 of title 28, United 
     States Code, the Inspector General shall report to the 
     Attorney General any information, allegation, or complaint 
     received by the Inspector General relating to violations of 
     Federal criminal law that involves a program or operation of 
     an element of the intelligence community, or in the 
     relationships between the elements of the intelligence 
     community, consistent with such guidelines as may be issued 
     by the Attorney General pursuant to subsection (b)(2) of such 
     section. A copy of each such report shall be furnished to the 
     Director.
       ``(j) Separate Budget Account.--The Director of National 
     Intelligence shall, in accordance with procedures to be 
     issued by the Director in consultation with the congressional 
     intelligence committees, include in the National Intelligence 
     Program budget a separate account for the Office of Inspector 
     General of the Intelligence Community.
       ``(k) Construction of Duties Regarding Elements of 
     Intelligence Community.--Except as resolved pursuant to 
     subsection (g), the performance by the Inspector General of 
     the Intelligence Community of any duty, responsibility, or 
     function regarding an element of the intelligence community 
     shall not be construed to modify or effect the duties and 
     responsibilities of any other Inspector General, whether 
     statutory or administrative, having duties and 
     responsibilities relating to such element.''.
       (2) Clerical amendment.--The table of contents in the first 
     section of the National Security Act of 1947 is amended by 
     inserting after the item relating to section 103G the 
     following new item:

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

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

[[Page 33244]]

       ``Inspector General of the Intelligence Community.''.

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

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


 ``REPORT ON FOREIGN LANGUAGE PROFICIENCY IN THE INTELLIGENCE COMMUNITY

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

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

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

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

     SEC. 416. SPACE INTELLIGENCE.

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

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

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


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

       ``Sec. 706. (a) Records From Exempted Operational Files.--
     (1) Any record disseminated or otherwise provided to an 
     element of the Office of the Director of National 
     Intelligence from the exempted operational files of elements 
     of the intelligence community designated in accordance with 
     this title, and any operational files created by the Office 
     of the Director of National Intelligence that incorporate 
     such record in accordance with subparagraph (A)(ii), shall be 
     exempted from the provisions of section 552 of title 5, 
     United States Code that require search, review, publication, 
     or disclosure in connection therewith, in any instance in 
     which--
       ``(A)(i) such record is shared within the Office of the 
     Director of National Intelligence and not disseminated by 
     that Office beyond that Office; or
       ``(ii) such record is incorporated into new records created 
     by personnel of the Office of the Director of National 
     Intelligence and maintained in operational files of the 
     Office of the Director of National Intelligence and such 
     record is not disseminated by that Office beyond that Office; 
     and

[[Page 33245]]

       ``(B) the operational files from which such record has been 
     obtained continue to remain designated as operational files 
     exempted from section 552 of title 5, United States Code.
       ``(2) The operational files of the Office of the Director 
     of National Intelligence referred to in paragraph (1)(A)(ii) 
     shall be substantially similar in nature to the originating 
     operational files from which the record was disseminated or 
     provided, as such files are defined in this title.
       ``(3) Records disseminated or otherwise provided to the 
     Office of the Director of National Intelligence from other 
     elements of the intelligence community that are not protected 
     by paragraph (1), and that are authorized to be disseminated 
     beyond the Office of the Director of National Intelligence, 
     shall remain subject to search and review under section 552 
     of title 5, United States Code, but may continue to be 
     exempted from the publication and disclosure provisions of 
     that section by the originating agency to the extent that 
     such section permits.
       ``(4) Notwithstanding any other provision of this title, 
     records in the exempted operational files of the Central 
     Intelligence Agency, the National Geospatial-Intelligence 
     Agency, the National Reconnaissance Office, the National 
     Security Agency, or the Defense Intelligence Agency shall not 
     be subject to the search and review provisions of section 552 
     of title 5, United States Code, solely because they have been 
     disseminated to an element or elements of the Office of the 
     Director of National Intelligence, or referenced in 
     operational files of the Office of the Director of National 
     Intelligence and that are not disseminated beyond the Office 
     of the Director of National Intelligence.
       ``(5) Notwithstanding any other provision of this title, 
     the incorporation of records from the operational files of 
     the Central Intelligence Agency, the National Geospatial-
     Intelligence Agency, the National Reconnaissance Office, the 
     National Security Agency, or the Defense Intelligence Agency, 
     into operational files of the Office of the Director of 
     National Intelligence shall not subject that record or the 
     operational files of the Central Intelligence Agency, the 
     National Geospatial-Intelligence Agency, the National 
     Reconnaissance Office, the National Security Agency or the 
     Defense Intelligence Agency to the search and review 
     provisions of section 552 of title 5, United States Code.
       ``(b) Other Records.--(1) Files in the Office of the 
     Director of National Intelligence that are not exempted under 
     subsection (a) of this section which contain information 
     derived or disseminated from exempted operational files shall 
     be subject to search and review under section 552 of title 5, 
     United States Code.
       ``(2) The inclusion of information from exempted 
     operational files in files of the Office of the Director of 
     National Intelligence that are not exempted under subsection 
     (a) shall not affect the exemption of the originating 
     operational files from search, review, publication, or 
     disclosure.
       ``(3) Records from exempted operational files of the Office 
     of the Director of National Intelligence which have been 
     disseminated to and referenced in files that are not exempted 
     under subsection (a), and which have been returned to 
     exempted operational files of the Office of the Director of 
     National Intelligence for sole retention, shall be subject to 
     search and review.
       ``(c) Search and Review for Certain Purposes.--
     Notwithstanding subsection (a), exempted operational files 
     shall continue to be subject to search and review for 
     information concerning any of the following:
       ``(1) United States citizens or aliens lawfully admitted 
     for permanent residence who have requested information on 
     themselves pursuant to the provisions of section 552 or 552a 
     of title 5, United States Code.
       ``(2) Any special activity the existence of which is not 
     exempt from disclosure under the provisions of section 552 of 
     title 5, United States Code.
       ``(3) The specific subject matter of an investigation by 
     any of the following for any impropriety, or violation of 
     law, Executive order, or Presidential directive, in the 
     conduct of an intelligence activity:
       ``(A) The Select Committee on Intelligence of the Senate.
       ``(B) The Permanent Select Committee on Intelligence of the 
     House of Representatives.
       ``(C) The Intelligence Oversight Board.
       ``(D) The Department of Justice.
       ``(E) The Office of the Director of National Intelligence.
       ``(F) The Office of the Inspector General of the 
     Intelligence Community.
       ``(d) Decennial Review of Exempted Operational Files.--(1) 
     Not less than once every 10 years, the Director of National 
     Intelligence shall review the operational files exempted 
     under subsection (a) to determine whether such files, or any 
     portion of such files, may be removed from the category of 
     exempted files.
       ``(2) The review required by paragraph (1) shall include 
     consideration of the historical value or other public 
     interest in the subject matter of the particular category of 
     files or portions thereof and the potential for declassifying 
     a significant part of the information contained therein.
       ``(3) A complainant that alleges that the Director of 
     National Intelligence has improperly withheld records because 
     of failure to comply with this subsection may seek judicial 
     review in the district court of the United States of the 
     district in which any of the parties reside, or in the 
     District of Columbia. In such a proceeding, the court's 
     review shall be limited to determining the following:
       ``(A) Whether the Director has conducted the review 
     required by paragraph (1) before the expiration of the 10-
     year period beginning on the date of the enactment of the 
     Intelligence Authorization Act for Fiscal Year 2008 or before 
     the expiration of the 10-year period beginning on the date of 
     the most recent review.
       ``(B) Whether the Director of National Intelligence, in 
     fact, considered the criteria set forth in paragraph (2) in 
     conducting the required review.
       ``(e) Supersedure of Other Laws.--The provisions of this 
     section may not be superseded except by a provision of law 
     that is enacted after the date of the enactment of this 
     section and that specifically cites and repeals or modifies 
     such provisions.
       ``(f) Applicability.--The Director of National Intelligence 
     will publish a regulation listing the specific elements 
     within the Office of the Director of National Intelligence 
     whose records can be exempted from search and review under 
     this section.
       ``(g) Allegation; Improper Withholding of Records; Judicial 
     Review.--(1) Except as provided in paragraph (2), whenever 
     any person who has requested agency records under section 552 
     of title 5, United States Code, alleges that the Office of 
     the Director of National Intelligence has withheld records 
     improperly because of failure to comply with any provision of 
     this section, judicial review shall be available under the 
     terms set forth in section 552(a)(4)(B) of title 5, United 
     States Code.
       ``(2) Judicial review shall not be available in the manner 
     provided for under paragraph (1) as follows:
       ``(A) In any case in which information specifically 
     authorized under criteria established by an Executive order 
     to be kept secret in the interests of national defense or 
     foreign relations is filed with, or produced for, the court 
     by the Office of the Director of National Intelligence, such 
     information shall be examined ex parte, in camera by the 
     court.
       ``(B) The court shall determine, to the fullest extent 
     practicable, the issues of fact based on sworn written 
     submissions of the parties.
       ``(C) When a complainant alleges that requested records are 
     improperly withheld because of improper placement solely in 
     exempted operational files, the complainant shall support 
     such allegation with a sworn written submission based upon 
     personal knowledge or otherwise admissible evidence.
       ``(D)(i) When a complainant alleges that requested records 
     were improperly withheld because of improper exemption of 
     operational files, the Office of the Director of National 
     Intelligence shall meet its burden under section 552(a)(4)(B) 
     of title 5, United States Code, by demonstrating to the court 
     by sworn written submission that exempted operational files 
     likely to contain responsive records currently meet the 
     criteria set forth in subsection (a).
       ``(ii) The court may not order the Office of the Director 
     of National Intelligence to review the content of any 
     exempted operational file or files in order to make the 
     demonstration required under clause (i), unless the 
     complainant disputes the Office's showing with a sworn 
     written submission based on personal knowledge or otherwise 
     admissible evidence.
       ``(E) In proceedings under subparagraph (C) or (D), a party 
     may not obtain discovery pursuant to rules 26 through 36 of 
     the Federal Rules of Civil Procedure, except that requests 
     for admissions may be made pursuant to rules 26 and 36.
       ``(F) If the court finds under this subsection that the 
     Office of the Director of National Intelligence has 
     improperly withheld requested records because of failure to 
     comply with any provision of this section, the court shall 
     order the Office to search and review the appropriate 
     exempted operational file or files for the requested records 
     and make such records, or portions thereof, available in 
     accordance with the provisions of section 552 of title 5, 
     United States Code, and such order shall be the exclusive 
     remedy for failure to comply with this section.
       ``(G) If at any time following the filing of a complaint 
     pursuant to this paragraph the Office of the Director of 
     National Intelligence agrees to search the appropriate 
     exempted operational file or files for the requested records, 
     the court shall dismiss the claim based upon such 
     complaint.''.
       (b) Clerical Amendment.--The table of contents in the first 
     section of the National Security Act of 1947 is amended by 
     inserting after the item relating to section 705 the 
     following new item:

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

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

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

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

       Subsection (j) of section 552a of title 5, United States 
     Code, is amended--
       (1) in paragraph (1), by striking ``or'';

[[Page 33246]]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     SEC. 443. INSPECTOR GENERAL MATTERS.

       (a) Coverage Under Inspector General Act of 1978.--
     Subsection (a)(2) of section 8G of the Inspector General Act 
     of 1978 (5 U.S.C. App. 8G) is amended--
       (1) by inserting ``the Defense Intelligence Agency,'' after 
     ``the Corporation for Public Broadcasting,'';
       (2) by inserting ``the National Geospatial-Intelligence 
     Agency,'' after ``the National Endowment for the 
     Humanities,''; and
       (3) by inserting ``the National Reconnaissance Office, the 
     National Security Agency,'' after ``the National Labor 
     Relations Board,''.
       (b) Certain Designations Under Inspector General Act of 
     1978.--Subsection (a) of section 8H of the Inspector General 
     Act of 1978 (5 U.S.C. App. 8H) is amended by adding at the 
     end the following new paragraph:
       ``(3) The Inspectors General of the Defense Intelligence 
     Agency, the National Geospatial-Intelligence Agency, the 
     National Reconnaissance Office, and the National Security 
     Agency shall be designees of the Inspector General of the 
     Department of Defense for purposes of this section.''.

[[Page 33247]]

       (c) Power of Heads of Elements Over Investigations.--
     Subsection (d) of section 8G of that Act--
       (1) by inserting ``(1)'' after ``(d)'';
       (2) in the second sentence of paragraph (1), as designated 
     by paragraph (1) of this subsection, by striking ``The head'' 
     and inserting ``Except as provided in paragraph (2), the 
     head''; and
       (3) by adding at the end the following new paragraph:
       ``(2)(A) The Secretary of Defense, in consultation with the 
     Director of National Intelligence, may prohibit the Inspector 
     General of an element of the intelligence community specified 
     in subparagraph (D) from initiating, carrying out, or 
     completing any audit or investigation if the Secretary 
     determines that the prohibition is necessary to protect vital 
     national security interests of the United States.
       ``(B) If the Secretary exercises the authority under 
     subparagraph (A), the Secretary shall submit to the 
     committees of Congress specified in subparagraph (E) an 
     appropriately classified statement of the reasons for the 
     exercise of the authority not later than 7 days after the 
     exercise of the authority.
       ``(C) At the same time the Secretary submits under 
     subparagraph (B) a statement on the exercise of the authority 
     in subparagraph (A) to the committees of Congress specified 
     in subparagraph (E), the Secretary shall notify the Inspector 
     General of such element of the submittal of such statement 
     and, to the extent consistent with the protection of 
     intelligence sources and methods, provide the Inspector 
     General with a copy of such statement. The Inspector General 
     may submit to such committees of Congress any comments on a 
     notice or statement received by the Inspector General under 
     this subparagraph that the Inspector General considers 
     appropriate.
       ``(D) The elements of the intelligence community specified 
     in this subparagraph are as follows:
       ``(i) The Defense Intelligence Agency.
       ``(ii) The National Geospatial-Intelligence Agency.
       ``(iii) The National Reconnaissance Office.
       ``(iv) The National Security Agency.
       ``(E) The committees of Congress specified in this 
     subparagraph are--
       ``(i) the Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate; and
       ``(ii) the Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.''.

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

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

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

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

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

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

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

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

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

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

     SEC. 502. REPORT ON INTELLIGENCE ACTIVITIES.

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

     SEC. 503. AERIAL RECONNAISSANCE PLATFORMS.

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

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

       (a) References to Head of Intelligence Community.--Title 
     10, United States Code, is

[[Page 33248]]

     amended by striking ``Director of Central Intelligence'' each 
     place it appears and inserting ``Director of National 
     Intelligence'' in the following:
       (1) Section 193(d)(2).
       (2) Section 193(e).
       (3) Section 201(a).
       (4) Section 201(b)(1).
       (5) Section 201(c)(1).
       (6) Section 425(a).
       (7) Section 431(b)(1).
       (8) Section 441(c).
       (9) Section 441(d).
       (10) Section 443(d).
       (11) Section 2273(b)(1).
       (12) Section 2723(a).
       (b) Clerical Amendments.--Such title is further amended by 
     striking ``Director of Central Intelligence'' each place it 
     appears and inserting ``Director of National Intelligence'' 
     in the following:
       (1) Section 441(c).
       (2) Section 443(d).
       (c) Reference to Head of Central Intelligence Agency.--
     Section 444 of such title is amended by striking ``Director 
     of Central Intelligence'' each place it appears and inserting 
     ``Director of the Central Intelligence Agency''.

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

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

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

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

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

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

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

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

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

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

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

     SEC. 517. TECHNICAL AMENDMENTS TO THE EXECUTIVE SCHEDULE.

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

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

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

     ``General Counsel of the Office of the Director of National 
     Intelligence.''.
       And the Senate agree to the same.

     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Silvestre Reyes,
     Alcee L. Hastings,
     Leonard L. Boswell,
     Bud Cramer,
     Anna G. Eshoo,
     Rush Holt,
     C.A. Ruppersberger,
     Mike Thompson,
     Janice Schakowsky,
     James R. Langevin,
     Patrick J. Murphy.
     From the Committee on Armed Services, for consideration of 
     defense tactical intelligence and related activities:
     Ike Skelton,
     John M. Spratt, Jr.,
                                Managers on the Part of the House.

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

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the Senate and the House at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2082), to authorize 
     appropriations for fiscal year 2008 for intelligence and 
     intelligence-related activities of the United States 
     Government, the Intelligence Community Management Account, 
     and the Central Intelligence Agency Retirement and Disability 
     System, and for other purposes, submit the following joint 
     statement to the Senate and House in explanation of the 
     effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report.
       The classified nature of United States intelligence 
     activities precludes disclosure of details of budgetary 
     recommendations in this conference report. The managers have 
     therefore prepared a classified supplement to this conference 
     report that contains the classified annex to this conference 
     report and the classified Schedule of Authorizations.
       The managers agree that the congressionally directed 
     actions described in the House bill, the Senate amendment, 
     the respective committee reports, and classified annexes 
     accompanying H.R. 2082 and S. 1538, should be undertaken to 
     the extent that such congressionally directed actions are not 
     amended, altered, substituted, or otherwise specifically 
     addressed in either this Joint Explanatory Statement or in 
     the classified annex to the conference report on the bill 
     H.R. 2082.
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

[[Page 33249]]



              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

     Section 101. Authorization of appropriations
       Section 101 of the conference report authorizes 
     appropriations for fiscal year 2008 for the intelligence and 
     intelligence-related activities of a list of United States 
     Government departments, agencies, and other elements. Section 
     101 is identical to Section 101 of the House bill, and 
     similar to Section 101 of the Senate amendment.
     Section 102. Classified schedule of authorizations
       Section 102 provides that the details of the amounts 
     authorized to be Section 101 for intelligence and 
     intelligence-related activities for fiscal year 2008, and 
     (subject to Section 103) the personnel ceilings authorized 
     for fiscal year 2008, are contained in the classified 
     Schedule of Authorizations. The Schedule of Authorizations 
     will be made available to the Committees on Appropriations of 
     the Senate and House of Representatives and to the President.
       Section 102 is similar to Section 102 of the House bill. 
     Section 102 of the Senate amendment had provided that 
     personnel authorizations for the Intelligence Community would 
     be in terms of personnel levels, expressed as full-time 
     equivalent positions, rather than personnel ceilings, as in 
     the House bill and prior intelligence authorizations. The 
     conferees followed the House in this regard, but established 
     in Section 103 an authority during fiscal year 2008 for the 
     management of the personnel authorized under Section 102 as 
     full-time equivalents.
     Section 103. Personnel ceiling adjustments
       Section 103 provides procedures to enhance the flexibility 
     of the Director of National Intelligence (``DNI'') to manage 
     the personnel levels of the Intelligence Community.
       Section 103(a) allows the DNI, with the approval of the 
     Director of the Office of Management and Budget (``OMB''), to 
     authorize employment of civilian personnel in excess of the 
     number authorized under Section 102 by an amount not to 
     exceed three percent of the total limit applicable to each 
     Intelligence Community element. Before the DNI may authorize 
     this increase, the DNI must determine that the action is 
     necessary to the performance of important intelligence 
     functions and notify the congressional intelligence 
     committees. Section 103 of the Senate amendment had provided 
     that this authority could extend to five percent. Section 103 
     of the House bill had set the additional amount at two 
     percent. The conference agreement of three percent is part of 
     a package of personnel flexibility mechanisms in Section 103.
       Section 103(b) provides for a one-year transition in the 
     description of the personnel authorization in the annual 
     intelligence authorization, and the subsequent implementation 
     of that authorization by the DNI, from ``personnel ceilings'' 
     to ``personnel levels expressed as full-time equivalent 
     positions.'' Although the DNI has not previously managed 
     Intelligence Community personnel limits in terms of full-time 
     equivalent positions, the conferees have determined that the 
     DNI should use this practice in the future to plan and manage 
     personnel levels within the Intelligence Community. The use 
     of full-time equivalent positions will allow Intelligence 
     Community elements to plan for and manage its workforce based 
     on overall hours of work, rather than number of employees, as 
     a truer measure of personnel levels. This approach is 
     consistent with general governmental practice and will 
     provide the DNI and Congress with a more accurate measurement 
     of personnel levels. For example, it will enable Intelligence 
     Community elements to count two half-time employees as 
     holding the equivalent of one full-time position, rather than 
     counting them as two employees against a ceiling.
       To provide the DNI with time to address any difficulties 
     arising from counting by full-time equivalent positions 
     rather than personnel levels, the conferees agreed that 
     Sections 102 and 103 would allow, but do not require, the DNI 
     to manage personnel levels by full-time equivalent positions 
     in fiscal year 2008. One aspect of this transition will be 
     the consideration of the manner in which elements of the 
     Intelligence Community account for (or presently fail to 
     account for) a variety of part-time arrangements. These 
     include, but are not limited to, the circumstances set forth 
     in paragraph (2) of subsection 103(b): student or trainee 
     programs; reemployment of annuitants in the National 
     Intelligence Reserve Corps; joint duty rotational 
     assignments; and other full-time or part-time positions.
       During their consideration of the DNI's request for 
     authority to manage personnel as full-time equivalents, the 
     congressional intelligence committees have learned that 
     practices within the Intelligence Community on the counting 
     of personnel are inconsistent, and include not counting 
     certain personnel at all against personnel ceilings. The 
     discretionary authority that is granted to the DNI during 
     fiscal year 2008 will permit the DNI to authorize 
     Intelligence Community elements to continue (but not expand) 
     for this one additional fiscal year their existing methods of 
     counting, or not counting, part-time employees against 
     personnel ceilings, while ensuring that by the beginning of 
     fiscal year 2009 there is a uniform and accurate method of 
     counting all Intelligence Community employees under a system 
     of personnel levels expressed as full-time equivalents. To 
     ensure that the transition is complete by the beginning of 
     fiscal year 2009, paragraph (4) of Section 103(b) provides 
     that the DNI shall express the personnel level for all 
     civilian employees of the Intelligence Community as full-time 
     equivalent positions in the congressional budget 
     justifications for that fiscal year.
       Section 103(c) establishes authority that will enable the 
     DNI to reduce the number of Intelligence Community 
     contractors by providing the flexibility to add a comparable 
     number of government personnel to replace those contractor 
     employees. Section 103(c) accomplishes this by permitting the 
     DNI to authorize employment of additional personnel if the 
     head of an element in the Intelligence Community determines 
     that activities currently being performed by contractor 
     employees should be performed by government employees, the 
     DNI agrees with the determination, and the Director of OMB 
     approves. The DNI may not authorize this for more than ten 
     percent of the total number of personnel authorized for each 
     element of the Intelligence Community under Section 102, 
     except that within the Office of the DNI that limit shall be 
     five percent. Section 103(c) is similar to Section 103(b) of 
     the Senate amendment. The House bill did not have a similar 
     provision. The percentage limits on the authority are part of 
     the conferees' agreement.
       Section 103(d) provides for notifications to the 
     congressional intelligence committees of the exercise of 
     authority under Sections 103(a) and 103(d).
     Section 104. Intelligence Community Management Account
       Section 104 authorizes the sum of $734,126,000 in fiscal 
     year 2008 for the Intelligence Community Management Account 
     of the Director of National Intelligence. The Intelligence 
     Community Management Account is part of the Community 
     Management Account. The section authorizes 952 full-time or 
     full-time equivalent personnel for the Intelligence Community 
     Management Account, who may be either permanent employees or 
     individuals detailed from other elements of the United States 
     Government. Section 104 also authorizes additional funds and 
     personnel in the classified Schedule of Authorizations for 
     the Community Management Account. Section 104 is similar to 
     Section 104 of the Senate amendment and Section 104 of the 
     House bill.
       As in Section 104 of the Senate amendment, the DNI may use 
     the authorities in Section 103 to adjust personnel levels in 
     elements within the Intelligence Community Management 
     Account, subject to the limitations in that section.
       Section 104 also authorizes funds from the Intelligence 
     Community Management Account for the National Drug 
     Intelligence Center (``NDIC''). These funds may not be used 
     for purposes of exercising police, subpoena, or law 
     enforcement powers or internal security functions. This 
     provision authorizing funds for NDIC was included in Section 
     104 of the House bill, but was not included in Section 104 of 
     the Senate amendment.
     Section 105. Specific authorization of funds within the 
         National Intelligence Program for which fiscal year 2008 
         appropriations exceed amounts authorized
       Section 105 authorizes, solely for the purposes of 
     reprogramming under Section 504(a)(3) of the National 
     Security Act of 1947 (50 U.S.C. 414(a)(3)), those funds 
     appropriated within the National Intelligence Program in 
     fiscal year 2008 in excess of the amount specified for such 
     activity in the classified Schedule of Authorizations (as 
     described in greater detail in the Classified Annex) to 
     accompany this conference report. Under this authority, funds 
     appropriated for a specific purpose but not authorized for 
     that purpose will still be available for use by the 
     Intelligence Community but can be applied only to other 
     intelligence activities within the National Intelligence 
     Program under established reprogramming procedures.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

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

[[Page 33250]]



           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

                     Subtitle A--Personnel Matters

     Section 301. Increase in employee compensation and benefits 
         authorized by law
       Section 301 provides that funds authorized to be 
     appropriated by this Act for salary, pay, retirement, and 
     other benefits for federal employees may be increased by such 
     additional or supplemental amounts as may be necessary for 
     increases in compensation or benefits authorized by law. 
     Section 301 is identical to Section 301 of the Senate 
     amendment and the House bill.
     Section 302. Enhanced flexibility in non-reimbursable details 
         to elements of the Intelligence Community
       Section 302 expands from one year to up to two years the 
     length of time that United States Government personnel may be 
     detailed to the Office of the Director of National 
     Intelligence (``ODNI'') on a reimbursable or non-reimbursable 
     basis under which the employee continues to be paid by the 
     home agency. To utilize this authority, the joint agreement 
     of the DNI and head of the detailing element is required. As 
     explained by the DNI, this authority will provide flexibility 
     for the ODNI to receive support from other elements of the 
     Intelligence Community for community-wide activities where 
     both the home agency and the ODNI would benefit from the 
     detail.
       Section 308 of the Senate amendment would have expanded the 
     time available for reimbursable or non-reimbursable details 
     to three years. Section 104 of the House bill allowed non-
     reimbursable details of less than one year. The conferees 
     agreed to a two-year maximum for reimbursable or non-
     reimbursable details.
     Section 303. Multi-level security clearances
       Section 303 adds a provision to section 102A of the 
     National Security Act of 1947 (50 U.S.C. 403-1), which 
     generally sets forth the responsibilities and authorities of 
     the Director of National Intelligence. The new provision 
     states that the DNI shall be responsible for ensuring that 
     the elements of the Intelligence Community adopt a multi-
     level clearance approach that allows for clearances 
     consistent with the protection of national security that can 
     be tailored to particular circumstances in order to enable 
     the more effective and efficient use of persons proficient in 
     foreign languages or with cultural, linguistic, or other 
     subject matter expertise that is critical to national 
     security.
       Section 303 is based on Section 406 of the House bill. The 
     Senate amendment did not have a comparable provision. Under 
     the House provision, the DNI would have been required to 
     establish a multi-level clearance system throughout the 
     Intelligence Community. Pursuant to the conference amendment, 
     the DNI shall, within six months of enactment, issue 
     guidelines to the Intelligence Community to support and 
     facilitate the implementation of a multi-level approach 
     across the Intelligence Community.
     Section 304. Pay authority for critical positions
       Section 304 adds a new subsection to section 102A of the 
     National Security Act of 1947 (50 U.S.C. 403-1) to provide 
     enhanced pay authority for critical positions in portions of 
     the Intelligence Community where that authority does not now 
     exist. It allows the DNI to authorize the head of a 
     department or agency with an Intelligence Community element 
     to fix a rate of compensation in excess of applicable limits 
     with respect to a position that requires an extremely high 
     level of expertise and is critical to accomplishing an 
     important mission. A rate of pay higher than Executive Level 
     II would require written approval of the DNI. A rate higher 
     than Executive Level I would require written approval of the 
     President in response to a DNI request. Section 304 is 
     identical to the corresponding portion of Section 405 of the 
     Senate amendment. The House bill did not have a comparable 
     provision.
       The section of the Senate bill that contained this pay 
     authority also would have provided additional authority to 
     enable the DNI to harmonize personnel rules in the 
     Intelligence Community. It would have enabled the DNI, with 
     the concurrence of a department or agency head, to convert 
     competitive service positions and incumbents within an 
     Intelligence Community element to excepted positions. It also 
     would have granted authority to the DNI to authorize 
     Intelligence Community elements--with concurrence of the 
     concerned department or agency heads and in coordination with 
     the Director of the Office of Personnel Management--to adopt 
     compensation, performance, management, and scholarship 
     authority that have been authorized for any other 
     Intelligence Community element. The conferees recommend that 
     these proposals be studied further during consideration of 
     the fiscal year 2009 authorization.
     Section 305. Delegation of authority for travel on common 
         carriers for intelligence collection personnel
       Section 116 of the National Security Act of 1947 (50 U.S.C. 
     404k) allows the DNI to authorize travel on any common 
     carrier when it is consistent with Intelligence Community 
     mission requirements or, more specifically, is required for 
     cover purposes, operational needs, or other exceptional 
     circumstances. As presently written, the DNI may only 
     delegate this authority to the Principal Deputy DNI 
     (``PDDNI'') or, with respect to CIA employees, to the 
     Director of the CIA.
       Section 305 provides that the DNI may delegate the 
     authority in section 116 of the National Security Act of 1947 
     to the head of any element. This expansion is consistent with 
     the view of the conferees that the DNI should be able to 
     delegate authority throughout the Intelligence Community when 
     such delegation serves the overall interests of the 
     Intelligence Community.
       Section 305 also provides that the head of an Intelligence 
     Community element to which travel authority has been 
     delegated is empowered to delegate it to senior officials of 
     the element as specified in guidelines issued by the DNI. 
     This allows for administrative flexibility consistent with 
     the guidance of the DNI for the entire Intelligence 
     Community. To facilitate oversight, the DNI shall submit the 
     guidelines to the congressional intelligence committees. 
     Section 305 is identical to Section 304 of the Senate 
     amendment and substantially the same as Section 306 of the 
     House bill.
     Section 306. Annual personnel level assessments for the 
         Intelligence Community
       Section 306 requires the Director of National Intelligence, 
     in consultation with the head of the element of the 
     Intelligence Community concerned, to prepare an annual 
     assessment of the personnel and contractor levels for each 
     element of the Intelligence Community for the following 
     fiscal year. Section 306 is a new mechanism to allow both the 
     Executive branch and Congress to better oversee personnel 
     growth in the Intelligence Community. Section 306 combines 
     elements from Section 315 of the Senate amendment, and 
     Sections 411 and 414 of the House bill.
       The assessment required by Section 306 seeks information 
     about budgeted personnel and contractor costs and levels, a 
     comparison of this information to current fiscal year and 
     historical five year data, and a written justification for 
     the requested personnel and contractor levels. The assessment 
     also requires the DNI to state that, based on current and 
     projected funding, the element will have sufficient internal 
     infrastructure and training resources to support the 
     requested personnel and contractor levels, and sufficient 
     funding to support the administrative and operational 
     activities of the requested personnel levels. All of this 
     information was required in Section 315 of the Senate 
     amendment. Section 306 also requires that the assessment 
     contain information about intelligence collectors and 
     analysts employed or contracted by each element of the 
     Intelligence Community, and contractors who are the subjects 
     of an Inspector General investigation, information that was 
     requested in Sections 414 and 411, respectively, of the House 
     bill. The assessment must be submitted to congressional 
     intelligence committees with the submission of the 
     President's budget request.
       The conferees believe that the personnel level assessment 
     required by Section 306 will provide information necessary 
     for the Executive branch and Congress to understand the 
     consequences of modifying the Intelligence Community's 
     personnel levels. Section 306 therefore recognizes that, 
     although the conferees supported personnel growth in the 
     post-September 11, 2001 period, personnel growth must be 
     better planned in the future to accomplish the goals of 
     strengthening intelligence collection, analysis, and 
     dissemination. In addition, the Administration must 
     adequately fund its personnel growth plan, and structure its 
     resources, to ensure that personnel growth is not done at the 
     expense of other programs.
       With regard to historical contractor levels to be included 
     in the annual assessments, the DNI has expressed concern that 
     there was no completed effort, prior to the ODNI's contractor 
     inventory initiated in June 2006, to comprehensively capture 
     information on the number and costs of contractors throughout 
     the Intelligence Community. Although the Intelligence 
     Community has not adequately focused on this issue in past 
     years, the conferees believe it is important to require the 
     DNI to attempt to assess historical contractor levels. 
     Because of the concerns outlined by the DNI, however, 
     conferees understand that information about contractor levels 
     prior to June 2006 may need to be reported as a best 
     estimate.
       The conferees are also concerned about the Intelligence 
     Community's increasing reliance on contractors to meet 
     mission requirements. The Intelligence Community employs a 
     significant number of ``core'' contractors who provide direct 
     support to Intelligence Community mission areas and are 
     generally indistinguishable from the United States Government 
     personnel whose mission they support. Because of the cost 
     disparity between employing a United States civilian 
     employee, estimated to cost an average of $126,500 annually, 
     and a core contractor, estimated to cost an average of 
     $250,000 annually, the conferees believe that the 
     Intelligence Community should strive to reduce its dependence 
     on contractors. The personnel assessment required in Section 
     306 should assist the DNI and the congressional intelligence 
     committees in determining the appropriate balance of 
     contractors and permanent government employees.

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     Section 307. Comprehensive report on Intelligence Community 
         contractors
       Section 307 requires the DNI to provide a one-time report 
     by March 31, 2008, describing the personal services 
     activities performed by contractors across the Intelligence 
     Community, the impact of contractors on the Intelligence 
     Community, and the accountability mechanisms that govern 
     contractors.
       Intelligence Community leaders continue to lack an adequate 
     factual and policy basis for controlling the size and use of 
     its large contractor workforce. Among other things, the 
     Intelligence Community lacks a clear definition of the 
     functions that may be appropriately performed by contractors 
     and, as a result, whether contractors are performing 
     functions that should be performed by government employees. 
     Generally, the conferees are concerned that the Intelligence 
     Community does not have procedures for overseeing contractors 
     and ensuring the identification of criminal violations or the 
     prevention and redress of financial waste, fraud, or other 
     abuses by contractors. The report is intended to help both 
     the Intelligence Community and the congressional intelligence 
     committees identify the facts and chart solutions. The report 
     should also address the DNI's plans for conversion of 
     contractors into employees under the authority provided in 
     Section 103 of this Act.
       Section 307 is based on Section 411 of the House bill. 
     Section 411 would have required an annual report on the 
     oversight of Intelligence Community contractors, and three 
     separate one-time reports on accountability mechanisms 
     governing Intelligence Community contractors, the impact of 
     contractors on the Intelligence Community workforce, and the 
     use of contractors for intelligence activities. The Senate 
     amendment had addressed reporting on contractors in Section 
     315 of the Senate amendment. The conferees consolidated these 
     reporting requirements into the single report required by 
     Section 307 and the annual assessment on consideration of the 
     levels of the contractor workforce in Section 306.
     Section 308. Report on proposed pay-for-performance 
         Intelligence Community personnel management system
       Section 308 prohibits the implementation of pay-for-
     performance compensation reform within an element of the 
     Intelligence Community until 45 days after the DNI submits to 
     the Congress a detailed plan for the implementation of the 
     compensation plan at the particular element of the 
     Intelligence Community in question. The DNI voiced concern 
     that Section 307 of the House bill would have prohibited the 
     heads of the elements of the Intelligence Community from 
     implementing tailored pay plans under other existing 
     statutory authorities and would have hindered DNI efforts to 
     establish a program within the Intelligence Community ``to 
     provide common pay, performance evaluation and benefits 
     throughout the Community.'' By agreeing that the requirements 
     of Section 308 would be applicable on an element-by-element 
     basis, the conferees sought to ensure that plans for elements 
     that are ready to proceed are not delayed by the planning 
     requirements for elements that are not ready to proceed. With 
     regard to the objective of providing for common pay, 
     performance evaluation, and benefits throughout the 
     Intelligence Community, the conferees added as an item of 
     each report how the implementation of pay-for-performance in 
     the element is consistent with the DNI's overall plans for a 
     performance-based compensation system.
       The Senate amendment had no comparable provision.
     Section 309. Report on plan to increase diversity within the 
         Intelligence Community
       Section 309 requires the DNI, in coordination with the 
     heads of the elements of the Intelligence Community, to 
     submit to the congressional intelligence committees a report 
     on the plans of each element of the Intelligence Community, 
     including the Office of the DNI (``ODNI''), to increase 
     diversity within that element. The report shall include the 
     specific implementation plans to increase diversity.
       Section 308 of the House bill had required the DNI to 
     submit a strategic plan to increase diversity within the 
     Intelligence Community and had prohibited the expenditure of 
     more than 80 percent of the amount appropriated to the 
     Intelligence Community Management Fund until the report was 
     delivered to Congress. The conferees altered the requirements 
     of Section 308 of the House bill to recognize the information 
     submitted to the congressional intelligence committees by the 
     DNI following passage of the House bill, and to tailor the 
     provision to obtain other information sought by the 
     congressional intelligence committees. To ensure that the 
     report is submitted in a timely fashion, Section 309 now 
     requires the DNI to submit the report by no later than March 
     31, 2008.
       The Senate amendment had no comparable provision.

                    Subtitle B--Acquisition Matters

     Section 311. Vulnerability assessments of major systems
       Section 311 adds a new oversight mechanism to the National 
     Security Act of 1947 (50 U.S.C. 442 et seq.) that requires 
     the DNI to conduct an initial vulnerability assessment and 
     subsequent assessments of every major system and its 
     significant items of supply in the National Intelligence 
     Program (``NIP''). The intent of the provision is to provide 
     Congress and the DNI with an accurate assessment of the 
     unique vulnerabilities and risks associated with each 
     National Intelligence Program major system to allow a 
     determination of whether funding for a particular major 
     system should be modified or discontinued. The vulnerability 
     assessment process will also require the various elements of 
     the Intelligence Community responsible for implementing major 
     systems to give due consideration to the risks and 
     vulnerabilities associated with such implementation.
       Section 311 requires the DNI to conduct an initial 
     vulnerability assessment on every major system proposed for 
     the NIP prior to completion of Milestone B or an equivalent 
     acquisition decision. The minimum requirements of the initial 
     vulnerability assessment are fairly broad and intended to 
     provide the DNI with significant flexibility in crafting an 
     assessment tailored to the proposed major system. Thus, the 
     DNI is required to use at a minimum, an analysis-based 
     approach to identify vulnerabilities, define exploitation 
     potential, examine the system's potential effectiveness, 
     determine overall vulnerability, and make recommendations for 
     risk reduction. The DNI is obviously free to adopt a more 
     rigorous methodology for the conduct of initial vulnerability 
     assessments.
       Vulnerability assessment should continue through the life 
     of a major system. Numerous factors and considerations can 
     affect the viability of a given major system. For that 
     reason, Section 311 provides the DNI with the flexibility to 
     set a schedule of subsequent vulnerability assessments for 
     each major system when the DNI submits the initial 
     vulnerability assessment to the congressional intelligence 
     committees. The time period between assessments should depend 
     upon the unique circumstances of a particular major system. 
     For example, a new major system that is implementing some 
     experimental technology might require annual assessments 
     while a more mature major system might not need such frequent 
     reassessment. The DNI is also permitted to adjust a major 
     system's assessment schedule when the DNI determines that a 
     change in circumstances warrants the issuance of a subsequent 
     vulnerability assessment. Section 311 also provides that a 
     congressional intelligence committee may request the DNI to 
     conduct a subsequent vulnerability assessment of a major 
     system.
       The minimum requirements for a subsequent vulnerability 
     assessment are almost identical to those of an initial 
     vulnerability assessment. There are only two additional 
     requirements. First, if applicable to the given major system 
     during its particular phase of development or production, the 
     DNI must also use a testing-based approach to assess the 
     system's vulnerabilities. Obviously, common sense needs to 
     prevail here. For example, the testing approach is not 
     intended to require the ``crash testing'' of a satellite 
     system. Nor is it intended to require the DNI to test system 
     hardware. However, the vulnerabilities of a satellite's 
     significant items of supply might be exposed by a rigorous 
     testing regime. Second, the subsequent vulnerability 
     assessment is required to monitor the exploitation potential 
     of the major system. Thus, a subsequent vulnerability 
     assessment should monitor ongoing changes to vulnerabilities 
     and understand the potential for exploitation. Since new 
     vulnerabilities can become relevant and the characteristics 
     of existing vulnerabilities can change, it is necessary to 
     monitor both existing vulnerabilities and their 
     characteristics, and to check for new vulnerabilities on a 
     regular basis.
       Section 311 requires the DNI to give due consideration to 
     the vulnerability assessments prepared for the major systems 
     within the NIP. It also requires that the vulnerability 
     assessments be provided to the congressional intelligence 
     committees within ten days of their completion. The conferees 
     encourage the DNI to also share the results of these 
     vulnerabilities assessments, as appropriate, with other 
     congressional committees of jurisdiction.
       Finally, the section contains definitions for the terms 
     ``items of supply,'' ``major system,'' ``Milestone B,'' and 
     ``vulnerability assessment.''
       Section 311 is similar to Section 310 of the Senate 
     amendment. The House bill had no similar provision.
     Section 312. Business enterprise architecture and business 
         system modernization for the Intelligence Community
       Section 312 requires the DNI to create a business 
     enterprise architecture that defines all Intelligence 
     Community business systems, as well as the functions and 
     activities supported by those business systems, in order to 
     guide with sufficient detail the implementation of 
     interoperable Intelligence Community business system 
     solutions. The conferees expect the DNI will include 
     Department of Defense representatives in the established 
     forum as appropriate. The conferees agreed that the business 
     enterprise architecture and transition plan are to be 
     submitted to the congressional intelligence committees by 
     September 1, 2008. The acquisition strategy, however, is to 
     be submitted by March 1, 2008.
       Section 312 will provide the congressional oversight 
     committees the assurance that

[[Page 33252]]

     business systems that cost more than a million dollars and 
     that receive more than 50 percent of their funding from the 
     National Intelligence Program will be efficiently and 
     effectively coordinated. It will also provide a list of all 
     ``legacy systems'' that will be either terminated or 
     transitioned into the new architecture. Further, this section 
     will require the DNI to report to the Committee no less often 
     than annually, for five years, on the progress being made in 
     successfully implementing the new architecture.
       Section 312 is similar to Section 312 of the Senate 
     amendment. The House bill had no similar provision.
     Section 313. Reports on acquisition of major systems
       Section 313 amends Title V of the National Security Act of 
     1947 (50 U.S.C. 413 et seq.) to require annual reports from 
     the DNI for each major system acquisition by an element of 
     the Intelligence Community.
       These reports must include, among other items, information 
     about the current total acquisition cost for such system, the 
     development schedule for the system including an estimate of 
     annual development costs until development is completed, the 
     planned procurement schedule for the system, including the 
     best estimate of the DNI of the annual costs and units to be 
     procured until procurement is completed, a full life-cycle 
     cost analysis for such system, and the result of any 
     significant test and evaluation of such major system as of 
     the date of the submittal of such report.
       Section 313 includes definitions for ``acquisition cost,'' 
     ``full life-cycle cost,'' ``major contract,'' ``major 
     system,'' and ``significant test and evaluation.''
       Section 313 is similar to Section 313 of the Senate 
     amendment. The House bill had no similar provision.
     Section 314. Excessive cost growth of major systems
       Section 314 amends Title V of the National Security Act of 
     1947 (50 U.S.C. 413 et seq.) to require that, in addition to 
     the report required under Section 313, the program manager of 
     a major system acquisition project shall determine on a 
     continuing basis if the acquisition cost of such major system 
     has increased by at least 25 percent as compared to the 
     baseline of such major system. The program manager must 
     inform the DNI of any such determination and the DNI must 
     submit a written notification to the congressional 
     intelligence committees if the DNI makes the same such 
     determination.
       Section 314 is intended to mirror the Nunn-McCurdy 
     provision in Title 10 of the United States Code that applies 
     to major defense acquisition programs. The conferees envision 
     that the determination will be done as needed by the program 
     manager of the major system acquisition and should not wait 
     until the time that the DNI's annual report is filed. In 
     other words, the conferees expect the congressional 
     intelligence committees to be advised on a regular basis by 
     the DNI about the progress and associated costs of major 
     system acquisitions within the Intelligence Community.
       If the cost growth is 25 percent or more, the DNI must 
     prepare a notification and submit, among other items, an 
     updated cost estimate to the congressional intelligence 
     committees, and a certification that the acquisition is 
     essential to national security, there are no other 
     alternatives that will provide equal or greater intelligence 
     capability at equal or lesser cost to completion, the new 
     estimates of the full life-cycle cost for such major system 
     are reasonable, and the structure for the acquisition of such 
     major system is adequate to manage and control full life-
     cycle cost of such major system.
       If the program manager makes a determination that the 
     acquisition cost has increased by 50 percent or more as 
     compared to the baseline, and the DNI makes the same such 
     determination, then the DNI must submit a written 
     certification to certify the same four items as described 
     above, as well as an updated notification and accompanying 
     information. If the required certification, at either the 25 
     percent or 50 percent level, is not submitted to the 
     congressional intelligence committees within 60 days of the 
     DNI's determination of cost growth, Section 318 creates a 
     mechanism in which funds cannot be obligated for a period of 
     time. If Congress does not act during that period, then the 
     acquisition may continue.
       Section 314 is similar to Section 314 of the Senate 
     amendment. The House bill had no similar provision.

                       Subtitle C--Other Matters

     Section 321. Restriction on conduct of intelligence 
         activities
       Section 321 provides that the authorization of 
     appropriations by the Act shall not be deemed to constitute 
     authority for the conduct of any intelligence activity that 
     is not otherwise authorized by the Constitution and the laws 
     of the United States. Section 321 is identical to Sections 
     302 of the Senate amendment and the House bill.
     Section 322. Clarification of definition of Intelligence 
         Community under the National Security Act of 1947
       Section 322 amends Section 3(4)(L) of the National Security 
     Act of 1947 (50 U.S.C. 401a(4)(L)) to permit the designation 
     as ``element of the intelligence community'' of elements of 
     departments and agencies of the United States Government 
     whether or not those departments and agencies are listed in 
     Section 3(4). Section 322 is identical to Section 303 of the 
     Senate amendment and the House bill.
     Section 323. Modification of availability of funds for 
         different intelligence activities
       Section 323 conforms the text of Section 504(a)(3)(B) of 
     the National Security Act of 1947 (50 U.S.C. 414(a)(3)(B) 
     (governing the funding of intelligence activities)) with the 
     text of Section 102A(d)(5)(A)(ii) of that Act (50 U.S.C. 403-
     1(d)(5)(A)(ii)), as amended by Section 1011(a) of the 
     Intelligence Reform and Terrorism Prevention Act of 2004, 
     Pub. L. No. 108-458 (Dec. 17, 2004) (``Intelligence Reform 
     Act'') (governing the transfer and reprogramming by the DNI 
     of certain intelligence funding).
       This amendment to the National Security Act replaces the 
     ``unforeseen requirements'' standard in Section 504(a)(3)(B) 
     with a more flexible standard to govern reprogrammings and 
     transfers of funds authorized for a different intelligence or 
     intelligence-related activity. Under the new standard, a 
     reprogramming or transfer is authorized if, in addition to 
     the other requirements of Section 504(a)(3), the new use of 
     funds ``supports an emergent need, improves program 
     effectiveness, or increases efficiency.'' This modification 
     brings the standard for reprogrammings and transfers of 
     intelligence funding into conformity with the standards 
     applicable to reprogrammings and transfers under Section 102A 
     of the National Security Act of 1947. The modification 
     preserves congressional oversight of proposed reprogrammings 
     and transfers while enhancing the Intelligence Community's 
     ability to carry out missions and functions vital to national 
     security. Section 323 is identical to Sections 305 of the 
     Senate amendment and the House bill.
     Section 324. Protection of certain national security 
         information
       Section 324 amends the National Security Act of 1947 in two 
     respects. Section 324(a) amends Section 601 of the National 
     Security Act of 1947 (50 U.S.C. 421) to increase the criminal 
     penalties for individuals with authorized access to 
     classified information who intentionally disclose any 
     information identifying a covert agent, if those individuals 
     know that the United States is taking affirmative measures to 
     conceal the covert agent's intelligence relationship to the 
     United States. Currently, the maximum sentence for disclosure 
     by someone who has had ``authorized access to classified 
     information that identifies a covert agent'' is ten years. 
     Subsection (a)(1) increases that maximum sentence to 15 
     years. Currently, the maximum sentence for disclosure by 
     someone who ``as a result of having authorized access to 
     classified information, learns the identity of a covert agent 
     and intentionally discloses any information identifying such 
     covert agent'' is five years. Subsection (a)(2) increases 
     that maximum sentence to ten years. Section 324(a) is 
     identical to Section 306 of the Senate amendment. The House 
     bill had no comparable provision.
       Section 324(b) amends Section 603(a) of the National 
     Security Act of 1947 (50 U.S.C. 423(a)) to provide that the 
     annual report from the President on the protection of 
     identities of certain United States undercover intelligence 
     officers, agents, informants, and sources, also include an 
     assessment of the need for any modification for the purpose 
     of improving legal protections for covert agents. Section 
     324(b) is identical to Section 309 of the House bill. The 
     Senate amendment had no similar provision.
     Section 325. Extension of authority to delete information 
         about receipt and disposition of foreign gifts and 
         decorations
       Current law (5 U.S.C. 7342) requires that certain federal 
     ``employees''--a term that generally applies to all 
     Intelligence Community officials and personnel and certain 
     contractors, spouses, dependents, and others--file reports 
     with their employing agency regarding receipt of gifts or 
     decorations from foreign governments. Following compilation 
     of these reports, the employing agency is required to file 
     annually with the Secretary of State detailed information 
     about the receipt of foreign gifts and decorations by its 
     employees, including the source of the gift. The Secretary of 
     State is required to publish a comprehensive list of the 
     agency reports in the Federal Register.
       With respect to Intelligence Community activities, public 
     disclosure of gifts or decorations in the Federal Register 
     has the potential to compromise intelligence sources (e.g., 
     confirmation of an intelligence relationship with a foreign 
     government) and could undermine national security. 
     Recognizing this concern, the Director of Central 
     Intelligence (``DCI'') was granted a limited exemption from 
     reporting certain information about such foreign gifts or 
     decorations where the publication of the information could 
     adversely affect United States intelligence sources. Section 
     1079 of the Intelligence Reform Act extended a similar 
     exemption to the DNI in addition to applying the existing 
     exemption to the CIA Director.
       Section 325 provides to the heads of each Intelligence 
     Community element the same limited exemption from specified 
     public reporting requirements that is currently authorized 
     for the DNI and CIA Director. The

[[Page 33253]]

     national security concerns that prompt those exemptions apply 
     equally to other Intelligence Community elements. Section 325 
     mandates that the information not provided to the Secretary 
     of State be provided to the DNI to ensure continued 
     independent oversight of the receipt by Intelligence 
     Community personnel of foreign gifts or decorations. The 
     conferees agreed to require the DNI to keep a record of such 
     information. Section 325 is otherwise similar to Section 307 
     of the Senate amendment and Section 304 of the House bill.
       Gifts received in the course of ordinary contact between 
     senior officials of elements of the Intelligence Community 
     and their foreign counterparts should not be excluded under 
     the provisions of Section 325 unless there is a serious 
     concern that such contacts and gifts would adversely affect 
     United States intelligence sources or methods.
     Section 326. Report on compliance with the Detainee Treatment 
         Act of 2005 and the Military Commissions Act of 2006
       Section 326 requires the DNI to submit a classified 
     comprehensive report to the congressional intelligence 
     committees on all measures taken by the ODNI and by any 
     Intelligence Community element with relevant responsibilities 
     on compliance with detention and interrogation provisions of 
     the Detainee Treatment Act of 2005 and the Military 
     Commissions Act of 2006. The report is to be submitted no 
     later than 45 days after enactment of this Act.
       The Detainee Treatment Act provides that no individual in 
     the custody or under the physical control of the United 
     States, regardless of nationality or physical location, shall 
     be subject to cruel, inhuman, or degrading treatment. 
     Congress reaffirmed this mandate in Section 6 of the Military 
     Commissions Act, adding an implementation mechanism that 
     requires the President to take action to ensure compliance 
     including through administrative rules and procedures. 
     Section 6 provides not only that grave breaches of Common 
     Article 3 of the Geneva Conventions are war crimes under 
     Title 18 of the United States Code, but also that the 
     President has authority for the United States to promulgate 
     higher standards and administrative regulations for 
     violations of U.S. treaty obligations. It requires the 
     President to issue those interpretations by Executive Order 
     published in the Federal Register.
       The report required by Section 326 is to include a 
     description of the detention or interrogation methods that 
     have been determined to comply with the prohibitions of the 
     Detainee Treatment Act and the Military Commissions Act or 
     have been discontinued pursuant to them.
       The Detainee Treatment Act also provides for the protection 
     against civil or criminal liability for United States 
     Government personnel who had engaged in officially authorized 
     interrogations that were determined to be lawful at the time. 
     Section 326 requires the DNI to report on actions taken to 
     implement that provision.
       The report shall also include an appendix containing all 
     guidelines on the application of the Detainee Treatment Act 
     and the Military Commissions Act to the detention or 
     interrogation activities, if any, of any Intelligence 
     Community element. The appendix shall also include the legal 
     justifications of any office of the Department of Justice 
     about the meaning of the Acts with respect to detention or 
     interrogation activities, if any, of any Intelligence 
     Community element. The conferees struck the requirement from 
     Section 309 of the Senate amendment that the appendix contain 
     the legal justifications of ``any official of the Department 
     of Justice'' to accommodate the concern that this provision 
     might compel the production of internal deliberative legal 
     materials. This provision therefore seeks only the legal 
     justifications of any office of the Department of Justice 
     that rendered an opinion on the matter.
       To the extent that the report required by Section 326 
     addresses an element of the Intelligence Community within the 
     Department of Defense, that portion of the report, and 
     associated material that is necessary to make that portion 
     understandable, shall also be submitted by the DNI to the 
     congressional armed services committees.
       Section 326 is similar to Section 309 of the Senate 
     amendment. The House bill had no similar provision.
     Section 327. Limitation on interrogation techniques
       Section 327 prohibits the use of any interrogation 
     treatment or technique not authorized by the United States 
     Army Field Manual on Human Intelligence Collector Operations 
     (``U.S. Army Field Manual'') against any individual in the 
     custody or effective control of any element of the 
     Intelligence Community. This limitation on interrogation 
     conducted by Intelligence Community personnel is similar to 
     the limitation on interrogation conducted by Department of 
     Defense personnel in Section 1002(a) of the Detainee 
     Treatment Act of 2005 (42 U.S.C. 2000dd-0(a)).
       Section 327 was adopted as an amendment at the conference 
     after significant deliberation in the past year by both 
     congressional intelligence committees of the legality and 
     effectiveness of CIA's detention and interrogation program. 
     The congressional intelligence committees have held numerous 
     hearings on interrogation-related issues, have had many 
     additional member and staff briefings, and have solicited 
     input from a variety of outside experts on both interrogation 
     and the effects of current U.S. interrogation policy. The 
     inclusion of Section 327 reflects the conferees' considered 
     judgment that the CIA's program is not the most effective 
     method of obtaining the reliable intelligence we need to 
     protect the United States from attack. Further, the conferees 
     concluded that damage to international perception of the 
     United States caused by the existence of classified 
     interrogation procedures that apply only to CIA's program and 
     are different from those used by the U.S. military outweighs 
     the intelligence benefits that may result from the 
     interrogation of individuals using the interrogation 
     techniques authorized in the CIA's program.
       Section 327 therefore seeks to create one consistent 
     interrogation policy across both the U.S. military and the 
     Intelligence Community. Any individual in the custody or 
     under the effective control of an element of the Intelligence 
     Community may therefore be subject only to those 
     interrogation techniques authorized for use by the U.S. 
     military, that is, the interrogation techniques authorized by 
     the U.S. Army Field Manual.
       As the primary U.S. Government beneficiaries of the 
     protections of the Geneva Conventions of 1949, the U.S. 
     military should play an important role in ensuring that U.S. 
     interrogation policy complies with those international 
     protections. Other countries look to U.S. policy as a whole, 
     not the policy of particular agencies, in assessing how 
     Americans captured on the battlefield should be treated. 
     Requiring the Intelligence Community to follow the U.S. Army 
     Field Manual ensures that the United States adopts only those 
     interrogation techniques that would not be seen as abuse if 
     used against an American soldier.
       As updated in September of 2006, the U.S. Army Field Manual 
     (FM 2-22.3) provides a detailed and unclassified description 
     of the interrogation process, along with a number of 
     interrogation approaches that can be used to elicit 
     information from detainees. The Army Field Manual leaves 
     interrogators with significant flexibility to determine what 
     approaches will work in particular situations or with 
     particular detainees; it does not mandate that particular 
     interrogation approach strategies be used in any given 
     situation. The congressional intelligence committees have 
     received testimony that the approaches in the U.S. Army Field 
     Manual are effective at eliciting information from detainees 
     and that they can be appropriately tailored to all detainees, 
     including senior terrorist leaders. The procedures in the 
     Army Field Manual have also been extensively reviewed to 
     ensure compliance with both ``American constitutional 
     standards related to concepts of dignity, civilization, 
     humanity, decency, and fundamental fairness,'' as well as 
     U.S. obligations under international law, including the four 
     Geneva Conventions of 1949. See Army Field Manual at 5-21.
       In addition to describing interrogation approaches, the 
     U.S. Army Field Manual includes a number of specific 
     prohibitions. In particular, it prohibits ``acts of violence 
     or intimidation, including physical or mental torture, or 
     exposure to inhumane treatment as a means of or aid to 
     interrogation.'' It also explicitly prohibits forcing a 
     detainee to be naked, perform sexual acts, or pose in a 
     sexual manner; placing hoods or sacks over the head of a 
     detainee; using duct tape over the eyes of a detainee; 
     applying beatings, electric shock, burns, or other forms of 
     physical pain; waterboarding; using military working dogs; 
     inducing hypothermia or heat injury; conducting mock 
     executions; and depriving the detainee of necessary food, 
     water, or medical care. Requiring the Intelligence Community 
     to comply with the U.S. Army Field Manual thus prohibits the 
     Intelligence Community's use of these actions as 
     interrogation techniques.
     Section 328. Limitation on use of funds
       Section 328 was added by an amendment at conference. It 
     provides that not more than 30 percent of the funds 
     authorized to be appropriated in a specific Expenditure 
     Center referred to in a classified Executive Branch 
     Congressional Budget Justification for fiscal year 2008--
     fiscal year 2009 may be obligated or expended until the full 
     membership of the congressional intelligence committees are 
     fully and currently informed about an important intelligence 
     matter. The matter is a facility in Syria that was the 
     subject of reported Israeli military action on September 6, 
     2007. The information on which the full membership of the 
     committees should be briefed includes intelligence if any 
     relating to any agent or citizen of North Korea, Iran, or any 
     other foreign country present at the facility. It should also 
     include any intelligence (as available) provided to the 
     United States by a foreign country regarding the facility.
       ``To the extent consistent with due regard for the 
     protection from unauthorized disclosure of classified 
     information relating to sensitive intelligence sources and 
     methods or other exceptionally sensitive matters,'' Section 
     502 of the National Security Act of 1947 (50 U.S.C. 413a) 
     requires that the Director of National Intelligence and the 
     heads of

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     all entities of the United States Government involved in 
     intelligence activities shall ``keep the congressional 
     intelligence committees fully and currently informed of all 
     intelligence activities.''
       As explained in a Senate report at the time of the original 
     enactment of this requirement in 1980, the limited caveat 
     about sensitive sources and methods or matters applies to 
     ``extremely rare circumstances'' when there is a decision not 
     to communicate to the intelligence committees ``certain 
     sensitive aspects of operations or collection programs.'' S. 
     Rep. No. 96-730, at 6. The key phrase ``certain sensitive 
     aspects'' indicates that the scope of any withholding of 
     information should be limited to certain details rather than 
     to bar information about entire activities.
       Section 504 of the National Security Act of 1947 (50 U.S.C. 
     413(b)) provides for only limited circumstances for not 
     providing information to the full membership of the 
     intelligence committees but, instead, informing the Chairmen 
     and Vice Chairman or Ranking Minority Member of those 
     committees as well as the congressional leadership. That 
     exception applies only when the President determines that 
     ``it is essential to limit access to [a covert action] 
     finding to meet extraordinary circumstances affecting vital 
     interests of the United States.''
       In agreeing to Section 328, the conferees concluded that it 
     is essential that the full membership of the House and Senate 
     intelligence committees be fully informed, in a manner 
     consistent with the National Security Act, about intelligence 
     that would indicate, among other matters, any presence at a 
     Syrian facility of agents or citizens of states--
     particularly, North Korea and Iran--which have had nuclear or 
     other weapons of mass destruction programs.
     Section 329. Incorporation of reporting requirements
       Section 329 incorporates into the Act by reference each 
     requirement contained in the classified annex to this Act to 
     submit a report to the congressional intelligence committees. 
     Sections 105 of the Senate amendment and the House bill both 
     also made reference to reporting requirements included in the 
     joint explanatory statement to accompany the conference 
     report. As no reporting requirements were included in the 
     joint explanatory statement, this reference was eliminated.
       Because the classified information in the annex cannot be 
     included in the text of the bill, incorporating the reporting 
     provisions of the classified annex is the only available 
     mechanism to give these reporting requirements the force of 
     law. The conferees therefore chose to include Section 329 to 
     reflect the importance they ascribe to the reporting 
     requirements in the classified annex.
     Section 330. Repeal of certain reporting requirements
       Section 330 eliminates five reporting requirements that 
     were considered particularly burdensome to the Intelligence 
     Community in cases where the usefulness of the report has 
     diminished either because of changing events or because the 
     information contained in those reports is duplicative of 
     information already obtained through other avenues. Section 
     330 is similar to Section 316 of the Senate amendment. 
     Section 316 had proposed eliminating a total of seven 
     reporting requirements. The conferees agreed to remove two of 
     these reports from the list of reports to be eliminated after 
     certain congressional committees expressed an interest in 
     continuing to receive these two reports.
       The House bill had no similar provision.

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

      Subtitle A--Office of the Director of National Intelligence

     Sec. 401. Clarification of limitation on co-location of the 
         Office of the Director of National Intelligence
       Section 103(e) of the National Security Act of 1947 (50 
     U.S.C. 403-3(e)), as added by the Intelligence Reform Act, 
     provides that commencing on October 1, 2008, the Office of 
     the DNI may not be co-located with any other element of the 
     Intelligence Community. Section 401 clarifies that this ban 
     applies only to the co-location of the headquarters of the 
     ODNI with the headquarters of any other Intelligence 
     Community element. Accordingly, the ODNI may be colocated 
     with non-headquarters units of Intelligence Community 
     elements. Section 401 is identical to Section 406 of the 
     Senate amendment and Section 401 of the House bill.
     Section 402. Membership of the Director of National 
         Intelligence on the Transportation Security Oversight 
         Board
       Section 402 substitutes the DNI, or the DNI's designee, as 
     a member of the Transportation Security Oversight Board 
     established under section 115(b)(1) of Title 49, United 
     States Code, in place of the CIA Director or CIA Director's 
     designee. The Transportation Security Oversight Board is 
     responsible for, among other things, coordinating 
     intelligence, security, and law enforcement activities 
     affecting transportation and facilitating the sharing of 
     intelligence, security, and law enforcement information 
     affecting transportation among Federal agencies. Section 402 
     is identical to Section 416 of the Senate amendment and 
     Section 402 of the House bill.
     Section 403. Additional duties of the Director of Science and 
         Technology
       Section 403 clarifies the duties of the Director of Science 
     and Technology (DST) and the Director of National 
     Intelligence Science and Technology Committee (NISTC). The 
     conferees expect the DST to systematically identify, assess 
     and prioritize the most significant intelligence challenges 
     that require technical solutions, set long-term science and 
     technology goals, develop a strategy/roadmap to be shared 
     with congressional intelligence committees that meets these 
     goals, and prioritize and coordinate efforts across the 
     Intelligence Community. As chair of the NISTC, the DST should 
     leverage the expertise of members of the committee to 
     accomplish these duties.
       Research and development efforts, including basic, 
     advanced, and applied research and development projects, 
     benefit the Intelligence Community most when they are 
     consistent with current or future national intelligence 
     requirements. Once a project is prototyped and successfully 
     demonstrated, the conferees expect the DST to lead the NISTC 
     to ensure the successful transition of projects from research 
     and development into operational systems.
       To sustain and further Intelligence Community's research 
     and development goals, it is imperative that the DNI recruit 
     and retain the country's top science and technology 
     leadership talent. This is especially important during this 
     period marked by the restructuring of Intelligence Community 
     research and development management. The conferees also note 
     that science and technology are major factors driving change 
     in today's world and believe that the Intelligence Community 
     must return to preeminence in this area in order to fully 
     protect our nation's security.
       The conferees urge the DST to develop multi-year 
     projections and assessments of Intelligence Community human 
     resource needs to better ensure that appropriate steps are 
     taken to recruit and retain a robust scientific and 
     engineering workforce. The conferees also urge the 
     Intelligence Community to enhance its support to scholarship 
     programs, research grants, and cooperative work-study 
     programs to achieve these human resources goals.
       Section 403 is similar to Section 407 of the Senate 
     amendment and Section 403 of the House bill.
     Section 404. Leadership and location of certain offices and 
         officials
       Section 404 confirms in statute that various officers are 
     within the ODNI. These are (1) the Chief Information Officer 
     of the Intelligence Community (as renamed by Section 412); 
     (2) the Inspector General of the Intelligence Community (as 
     named under Section 413); (3) the Director of the National 
     Counterterrorism Center; and (4) the Director of the National 
     Counter Proliferation Center (NCPC). Section 404 also 
     expressly provides in statute that the DNI shall appoint the 
     Director of the NCPC. Section 119A of the National Security 
     Act of 1947 (50 U.S.C. 404o-1), as added by the Intelligence 
     Reform Act, had provided that the President could establish 
     the NCPC. In doing so, the President delegated to the DNI the 
     authority to name the Director. Section 404 ratifies that 
     delegation. Section 404 is identical to Section 411 of the 
     Senate amendment and Section 404 of the House bill.
     Section 405. Plan to implement recommendations of the data 
         center energy efficiency reports
       Section 405 requires the DNI to develop a plan to implement 
     across the Intelligence Community the recommendations of the 
     Environmental Protection Agency report on improving data 
     center energy efficiency. This planning requirement is 
     intended to encourage the Intelligence Community to fulfill 
     its responsibility to assess the use of environmental 
     resources with regard to the power, space, and cooling 
     challenges of Intelligence Community data centers. Section 
     405 is similar to Section 408 of the House bill. The Senate 
     amendment did not have a comparable provision.
     Section 406. Comprehensive listing of special access programs
       Section 406 provides that the DNI shall submit to the 
     congressional intelligence committees a classified 
     comprehensive listing of special access programs under the 
     National Intelligence Program. The listing need not describe 
     the programs, but must provide a reference to them to enable 
     the congressional intelligence committees to determine 
     whether the Intelligence Community has fulfilled its 
     obligation to keep the committees informed about intelligence 
     activities. In response to a concern of the DNI that a single 
     document would create security and counterintelligence 
     concerns, the conferees agreed to include a provision that 
     allows the DNI to submit the listing in a form or forms 
     consistent with national security.
       Section 406 is based on Section 409 of the House bill. The 
     Senate amendment did not have a comparable provision.
     Section 407. Reports on the nuclear programs of Iran and 
         North Korea
       Section 407 provides that not less than once during the 
     remainder of this fiscal year

[[Page 33255]]

     and twice during fiscal year 2009, the DNI shall submit to 
     the congressional intelligence committees a classified report 
     on the nuclear intentions and capabilities of Iran and North 
     Korea. A national intelligence estimate may count as one of 
     those reports for each country. The conferees encourage the 
     DNI to make these reports available to other congressional 
     oversight committees of jurisdiction to the extent consistent 
     with the protection of sources and methods.
       Section 407 is based on Section 410 of the House bill. The 
     Senate amendment did not contain a comparable provision. The 
     House provision had required quarterly reports indefinitely. 
     In response to concerns of the DNI, the conferees reduced the 
     number of reports required, but otherwise concur that it is 
     essential that the Intelligence Community place a high 
     priority on reporting to Congress on nuclear developments in 
     Iran and North Korea.
     Section 408. Requirements for accountability reviews by the 
         Director of National Intelligence
       Section 408 provides that the DNI shall have authority to 
     conduct accountability reviews of elements of the 
     Intelligence Community and the personnel of those elements. 
     The primary innovation of this provision is the authority to 
     conduct accountability reviews concerning an entire element 
     of the Intelligence Community in relation to significant 
     failures or deficiencies.
       This accountability process is separate and distinct from 
     any accountability reviews conducted internally by elements 
     of the Intelligence Community or their Inspectors General. 
     Also, as stated explicitly in Section 408, the new authority 
     does not limit the existing authority of the DNI with respect 
     to supervision of the CIA. The DNI, in consultation with the 
     Attorney General, shall establish guidelines and procedures 
     for conducting accountability reviews.
       The Senate bill, as reported by the Select Committee on 
     Intelligence, arguably would have mandated the DNI to conduct 
     an accountability review at the direction of a congressional 
     intelligence committee. To avoid a construction that a 
     committee of Congress on its own could require such a review 
     over the objection of the DNI, a concern raised by the ODNI, 
     a managers' amendment prior to Senate passage made clear that 
     the DNI shall conduct a review if the DNI determines it is 
     necessary, and the DNI may conduct an accountability review 
     (but is not statutorily required to do so) if requested by 
     one of the congressional intelligence committees.
       Section 408 is identical to Section 401 of the Senate 
     amendment. The House bill did not have a comparable 
     provision.
     Section 409. Modification of limitation on delegation by the 
         Director of National Intelligence of the protection of 
         intelligence sources and methods
       Section 409 amends section 102A(i)(3) of the National 
     Security Act of 1947 to modify the limitation on delegation 
     by the DNI (which now extends only to the PDDNI) of the 
     authority to protect intelligence sources and methods from 
     unauthorized disclosure. It permits the DNI also to delegate 
     the authority to the Chief Information Officer of the 
     Intelligence Community.
       Section 409 is based on Section 403 of the Senate 
     amendment. The House bill did not have a comparable 
     provision. The Senate bill, as originally reported, would 
     have additionally permitted the delegation of this authority 
     to any Deputy DNI or to the head of any Intelligence 
     Community element. In a managers' amendment before passage in 
     the Senate, the authority to delegate outside of the Office 
     of the DNI was struck in accordance with the sequential 
     report of the Committee on the Armed Services, S. Rep. No. 
     110-92, at 3. The conferees further limited the delegation 
     authority to the Chief Information Officer, who is a 
     presidentially-appointed, Senate-confirmed official whose 
     responsibilities expressly involve information matters 
     throughout the Intelligence Community.
     Section 410. Authorities for intelligence information sharing
       Section 410 amends section 102A(g)(1) of the National 
     Security Act of 1947 (50 U.S.C. 403-1(g)(1)) to provide the 
     DNI with statutory authority to use NIP funds to quickly 
     address deficiencies or needs that arise in intelligence 
     information access or sharing capabilities. It authorizes the 
     DNI to provide to an agency or component, and for that agency 
     or component to accept and use, funds or systems (which could 
     include services or equipment) related to the collection, 
     processing, analysis, exploitation, and dissemination of 
     intelligence information. It also grants the DNI authority to 
     provide funds to non-NIP activities for the purpose of 
     addressing critical gaps in intelligence information access 
     or sharing capabilities. Without the authority, development 
     and implementation of necessary capabilities could be delayed 
     by an agency's lack of authority to accept or utilize systems 
     funded from the NIP, inability to use or identify current-
     year funding, or concerns regarding the augmentation of 
     appropriations.
       Section 410 is based on Section 402 of the Senate 
     amendment. The House did not have a comparable provision. To 
     aid in oversight, the conferees have added a four-year 
     reporting requirement from fiscal years 2009 through 2012. No 
     later than February 1 of each of those years, the DNI shall 
     submit to the congressional intelligence committees a report 
     on the distribution of funds under the new section during the 
     preceding fiscal year to facilitate implementation of 
     information sharing.
     Section 411. Authorities of the Director of National 
         Intelligence for interagency funding
       Section 411 provides the DNI with the ability to rapidly 
     focus the Intelligence Community on an intelligence issue 
     through a coordinated effort that uses all available 
     resources. The premise of this authority is that the DNI's 
     ability to coordinate the Intelligence Community response to 
     an emerging threat should not depend on the budget cycle and 
     should not be constrained by general limitations in 
     appropriations law (e.g., 31 U.S.C. 1346) or other 
     prohibitions on interagency financing of boards, commissions, 
     councils, committees, or similar groups.
       To provide this flexibility, this section grants the DNI 
     the authority to approve interagency financing of national 
     intelligence centers established under section 119B of the 
     National Security Act of 1947 (50 U.S.C. 404o-2). It also 
     authorizes interagency funding for boards, commissions, 
     councils, committees, or similar groups established by the 
     DNI for a period not to exceed two years. This would include 
     funding for Intelligence Community mission managers. Under 
     this section, the DNI could authorize the pooling of 
     resources from various Intelligence Community agencies to 
     finance national intelligence centers or other organizational 
     groupings designed to address identified intelligence 
     matters.
       Section 411 is based on Section 404 of the Senate 
     amendment. The House bill did not have a comparable 
     provision. To aid in oversight of the implementation of the 
     authority granted by this section, the conferees have added a 
     four-year reporting requirement from fiscal years 2009 
     through 2012. No later than February 1 of each of those years 
     the DNI shall submit to the congressional intelligence 
     committees a report on the exercise of this authority to 
     support interagency activities.
     Section 412. Title of Chief Information Officer of the 
         Intelligence Community
       Section 412 expressly designates the position of Chief 
     Information Officer as Chief Information Officer of the 
     Intelligence Community. The modification to the CIO title is 
     consistent with the position's overall responsibilities as 
     outlined in section 103G of the National Security Act of 1947 
     (50 U.S.C. 403-3g). Section 412 is identical to Section 408 
     of the Senate amendment. The House bill did not have a 
     comparable provision.
     Section 413. Inspector General of the Intelligence Community
       Section 1078 of the Intelligence Reform Act authorized the 
     DNI to establish an Office of Inspector General if the DNI 
     determined that an Inspector General would be beneficial to 
     improving the operations and effectiveness of the ODNI. It 
     further provided that the DNI could grant to the Inspector 
     General any of the duties, responsibilities, and authorities 
     set forth in the Inspector General Act of 1978. The DNI has 
     appointed an Inspector General and has granted certain 
     authorities pursuant to DNI Instruction No. 2005-10 (Sept. 7, 
     2005).
       A strong Inspector General is vital to achieving the goal, 
     set forth in the Intelligence Reform Act, of improving the 
     operations and effectiveness of the Intelligence Community. 
     It is also vital to achieving the broader goal of identifying 
     problems and deficiencies wherever they may be found in the 
     Intelligence Community with respect to matters within the 
     responsibility and authority of the DNI, especially the 
     manner in which elements of the Intelligence Community 
     interact with each other in providing access to information 
     and undertaking joint or cooperative activities. By way of a 
     new section 103H of the National Security Act of 1947, this 
     section establishes an Inspector General of the Intelligence 
     Community in order to provide to the DNI, and through reports 
     to the Congress, the benefits of an Inspector General with 
     full statutory authorities and the requisite independence.
       The office is established within the ODNI. The Inspector 
     General will keep both the DNI and the congressional 
     intelligence committees fully and currently informed about 
     problems and deficiencies in Intelligence Community programs 
     and operations and the need for corrective actions. The 
     Inspector General will be appointed by the President, with 
     the advice and consent of the Senate, and will report 
     directly to the DNI. To bolster the Inspector General's 
     independence within the Intelligence Community, the Inspector 
     General may be removed only by the President, who must 
     communicate the reasons for the removal to the congressional 
     intelligence committees.
       The DNI may prohibit the Inspector General from conducting 
     an investigation, inspection, or audit if the DNI determines 
     that is necessary to protect vital national security 
     interests. If the DNI exercises the authority to prohibit an 
     investigation, the DNI must provide the reasons to the 
     congressional intelligence committees within seven days. The 
     Inspector General may provide a response to the committees.

[[Page 33256]]

       The Inspector General will have direct and prompt access to 
     the DNI and any Intelligence Community employee or employee 
     of a contractor whose testimony is needed. The Inspector 
     General will also have direct access to all records that 
     relate to programs and activities for which the Inspector 
     General has responsibility. Failure to cooperate will be 
     grounds for appropriate administrative action.
       The Inspector General will have subpoena authority. 
     However, information within the possession of the United 
     States government must be obtained through other procedures. 
     Subject to the DNI's concurrence, the Inspector General may 
     request information from any U.S. government department, 
     agency, or element. They must provide the information to the 
     Inspector General insofar as practicable and not in violation 
     of law or regulation.
       The Inspector General must submit semiannual reports to the 
     DNI that include a description of significant problems 
     relating to Intelligence Community programs and operations 
     and to the relationships between Intelligence Community 
     elements. The reports must include a description of Inspector 
     General recommendations and a statement whether corrective 
     action has been completed. The Inspector General shall 
     provide any portion of the report involving a component of a 
     department of the U.S. government simultaneously to the head 
     of that department with submission of the report to the DNI. 
     Within 30 days of receiving it from the Inspector General, 
     the DNI must submit each semiannual report to Congress.
       The Inspector General must immediately report to the DNI 
     particularly serious or flagrant violations. Within seven 
     days, the DNI must transmit those reports to the 
     congressional intelligence committees together with any 
     comments. In the event the Inspector General is unable to 
     resolve differences with the DNI, the Inspector General is 
     authorized to report a serious or flagrant violation directly 
     to the congressional intelligence committees. Reports to the 
     congressional intelligence committees are also required with 
     respect to investigations concerning high-ranking 
     Intelligence Community officials.
       Intelligence Community employees or employees of 
     contractors who intend to report to Congress an ``urgent 
     concern''--such as a violation of law or Executive order, a 
     false statement to Congress, or a willful withholding from 
     Congress--may report such complaints and supporting 
     information to the Inspector General. Following a review by 
     the Inspector General to determine the credibility of the 
     complaint or information, the Inspector General must transmit 
     such complaint and information to the DNI. On receiving the 
     complaints or information from the Inspector General 
     (together with the Inspector General's credibility 
     determination), the DNI must transmit the complaint or 
     information to the congressional intelligence committees. If 
     the Inspector General does not find a complaint or 
     information to be credible, the reporting individual may 
     submit the matter directly to the congressional intelligence 
     committees by following appropriate security practices 
     outlined by the DNI. Reprisals or threats of reprisal against 
     reporting individuals constitute reportable ``urgent 
     concerns.''
       In providing this channel for whistleblower communications 
     to Congress, Section 413 does not disturb, and the conferees 
     intend to retain, the authoritative guidance for analogous 
     provisions of the Intelligence Community Whistleblower Act of 
     1998, Pub. L. No. 105-272 (October 20, 1998) as set forth in 
     the findings in paragraphs (1) through (6) of section 701(b) 
     of that Act, the Senate committee report for the legislation, 
     S. Rep. No. 105-185, at 25-27, and particularly the 
     conference report, H.R. Rep. 105-780, at 33-34, which 
     emphasized that a disclosure to the Inspector General ``is 
     not the exclusive process by which an Intelligence Community 
     employee may make a report to Congress.''
       For matters within the jurisdiction of both the Inspector 
     General of the Intelligence Community and an Inspector 
     General for another Intelligence Community element, the 
     Inspectors General shall expeditiously resolve who will 
     undertake an investigation, inspection, or audit. In 
     resolving that question, under an extensive subsection 
     entitled ``Coordination Among Inspectors General of 
     Intelligence Community,'' the Inspectors General may request 
     the assistance of the Intelligence Community Inspectors 
     General Forum (a presently existing informal body whose 
     existence is ratified by this section). In the event that the 
     Inspectors General are still unable to resolve the question, 
     they shall submit it for resolution to the DNI and the head 
     of the department (or to the Director of the CIA in matters 
     involving the CIA Inspector General, in accordance with a 
     clarifying amendment of the conferees) in which an Inspector 
     General with jurisdiction concurrent to that of the Inspector 
     General of the Intelligence Community is located. This basic 
     limitation addresses the concern raised by the DNI about the 
     preservation of the authority of heads of departments and 
     agencies over their respective departments.
       Within Congress, mutuality of oversight is assured by the 
     requirement that Inspector General reports concerning 
     Intelligence Committee elements within departments are shared 
     with committees that have jurisdiction over those 
     departments.
       Except for the provision clarifying that unresolved 
     questions involving the CIA Inspector General will also be 
     submitted to the Director of the CIA, rather than the head of 
     a department, Section 413 is identical to Section 410 of the 
     Senate amendment. The House bill did not have a similar 
     provision.
     Section 414. Annual report on foreign language proficiency in 
         the Intelligence Community
       Section 414 provides for an annual report by the DNI on the 
     proficiency of each element of the Intelligence Community in 
     foreign languages and, if appropriate, in foreign dialects. 
     The section also requires the DNI to report on foreign 
     language training. The Intelligence Community has an 
     increasing need for fluency in difficult-to-master languages 
     and for expertise in foreign cultures. The information 
     required by the report will allow the congressional 
     intelligence committees to better assess the Intelligence 
     Community's ability to manage language resources. Section 414 
     is based on Sections 412 and 413 of the House bill, which 
     have been merged by the conferees. The Senate amendment did 
     not have a comparable provision.
     Section 415. Director of National Intelligence report on 
         retirement benefits for former employees of Air America
       Section 415 provides for a report by the DNI on the 
     advisability of providing federal retirement benefits to 
     United States citizens who were employees of Air America or 
     an associated company prior to 1977, during the time that the 
     company was owned or controlled by the United States and 
     operated by the CIA. Section 415 is identical to Section 425 
     of the Senate amendment and Section 415 of the House bill.
       The conferees note that H.R. 1271 was introduced in the 
     House in the 110th Congress, and H.R. 1276 and S. 651 were 
     introduced in the House and Senate in the 109th Congress, to 
     make service performed with Air America and certain other 
     entities creditable for federal civil service retirement 
     purpose. By including Section 415 in this authorization bill, 
     the conferees take no position on the merits of that 
     legislation.
       Although the section invites the DNI to submit any 
     recommendations on the ultimate question of providing 
     benefits, the main purpose of the report is to provide 
     Congress with the facts upon which Congress can make that 
     determination. Accordingly, Section 415 outlines the factual 
     elements required by the report. To aid in the preparation of 
     the report, the section authorizes the assistance of the 
     Comptroller General. Among the elements of the report should 
     be: the relationship of Air America to the CIA, the missions 
     it performed, and the casualties its employees suffered, as 
     well as the retirement benefits that had been contracted for 
     or promised to Air America employees and the retirement 
     benefits Air America employees received.
       On September 25, 2007, the CIA provided a three page letter 
     to the congressional intelligence and appropriations 
     committees in response to the Senate Select Committee on 
     Intelligence Report 109-259 to S. 3237, requesting a report 
     on ``the advisability of providing federal retirement 
     benefits to United States citizens who were employees of Air 
     America or an associated company prior to 1977, during the 
     time that the company was owned or controlled by the United 
     States and operated by the CIA.'' Although the letter 
     describes the legal basis for denying federal retirement 
     benefits to employees of Air America, it does not provide the 
     factual background that would allow Congress to make an 
     assessment of whether to provide employees of Air America 
     with federal retirement benefits. The report requested in 
     Section 415 therefore continues to be necessary for a 
     comprehensive exploration of the underlying issues.
     Section 416. Space Intelligence
       Section 416 underscores the importance of the DNI's 
     consideration of space intelligence issues by adding this 
     responsibility to the DNI's statutory duties in Section 102A 
     of the National Security Act of 1947 (50 U.S.C. 403-1). 
     Section 416 requires the DNI to consider space intelligence 
     issues and concerns in setting intelligence priorities, 
     conducting analysis, and acquiring major systems. The Section 
     also requires the DNI to ensure that agencies give due 
     consideration to the vulnerability assessments prepared for a 
     given major system at all stages of architecture and system 
     planning, development, acquisition, operation, and support of 
     a space intelligence system.
       Section 412 of the Senate amendment would have created a 
     new National Space Intelligence Office within the ODNI to 
     coordinate and provide policy direction for the management of 
     space-related intelligence assets and the development of 
     personnel in space-related fields. The National Space 
     Intelligence Office would also have been responsible for 
     prioritizing space-related collection activities and 
     evaluating analytic assessments of threats to classified 
     United States space intelligence systems. The DNI, however, 
     expressed concern about the creation of a dedicated office in 
     the ODNI for space intelligence. Section 416 addresses that 
     concern by highlighting the importance of space intelligence, 
     while still giving the DNI

[[Page 33257]]

     flexibility to organize the Intelligence Community to 
     implement responsibilities for that intelligence.
       The House bill had no similar provision.
     Section 417. Operational files in the Office of the Director 
         of National Intelligence
       In the CIA Information Act, Pub. L. No. 98-477 (October 15, 
     1984) (50 U.S.C. 431), Congress authorized the Director of 
     Central Intelligence to exempt operational files of the CIA 
     from several requirements of the Freedom of Information Act 
     (``FOIA''), particularly those requiring search and review in 
     response to FOIA requests. In a series of amendments to Title 
     VII of the National Security Act of 1947, Congress has 
     extended the exemption to the operational files of the 
     National Geospatial-Intelligence Agency (``NGA''), the 
     National Security Agency (``NSA''), the National 
     Reconnaissance Office (``NRO''), and the Defense Intelligence 
     Agency (``DIA''). It has also provided that files of the 
     Office of the National Counterintelligence Executive 
     (``NCIX'') should be treated as operational files of the CIA 
     (to the extent they meet the criteria for CIA operational 
     files).
       Section 417 adds a new section 706 to the National Security 
     Act of 1947. Components of the ODNI, including the National 
     Counterterrorism Center (``NCTC''), require access to 
     information contained in CIA and other operational files. The 
     purpose of section 706 is to make clear that operational 
     files of any Intelligence Community component, for which an 
     operational files exemption is applicable, retain their 
     exemption from FOIA search, review, disclosure, or 
     publication when they are provided to an element of the ODNI. 
     They also retain their exemption when they are incorporated 
     in any substantially similar files of the ODNI.
       Section 706 provides several limitations. The exemption 
     does not apply to information disseminated beyond the ODNI. 
     Also, as Congress has provided in the operational files 
     exemptions for the CIA and other Intelligence Community 
     elements, section 706 provides that the exemption does not 
     apply to requests by United States citizens or permanent 
     residents for information about themselves (although other 
     FOIA exemptions, such as appropriate classification, may 
     continue to protect such files from public disclosure). The 
     exemption would not apply to the subject matter of a 
     congressional or Executive branch investigation into 
     improprieties or violations of law.
       Finally, Section 706 provides for a decennial review by the 
     DNI to determine whether exemptions may be removed from any 
     category of exempted files. This review shall include 
     consideration of the historical value or other public 
     interest in the subject matter of those categories and the 
     potential for declassifying a significant part of the 
     information contained in them. The conferees underscore the 
     importance of this requirement, which applies to the other 
     operational exemptions in Title VII. The conferees also 
     expect the DNI to submit the results of such review to the 
     congressional intelligence committees in a timely manner.
       Section 417 is based on Section 412 of the Senate 
     amendment. The House bill did not contain a comparable 
     provision. The conferees added the requirement of 
     substantiality in the similarity between ODNI files and those 
     of the originating element in order to tighten the connection 
     between the files that are exempt in the originating element 
     and the files in the ODNI that would also be exempt.
     Section 418. Inapplicability of Federal Advisory Committee 
         Act to advisory committees of the Office of the Director 
         of National Intelligence
       Congress enacted the Federal Advisory Committee Act (FACA) 
     (5 U.S.C. App.) to regulate the use of advisory committees 
     throughout the Federal Government. FACA sets forth the 
     responsibilities of the Executive branch with regard to such 
     committees and outlines procedures and requirements for them. 
     As originally enacted in 1972, FACA expressly exempted 
     advisory committees utilized by the CIA and the Federal 
     Reserve System. Section 418 amends FACA to extend this 
     exemption to advisory committees established or used by the 
     ODNI. Section 418 is identical to Section 415 of the Senate 
     amendment. The House bill did not contain a comparable 
     provision.
     Section 419. Applicability of the Privacy Act to the Director 
         of National Intelligence and Office of the Director of 
         National Intelligence
       The Privacy Act (5 U.S.C. 552a) has long contained a 
     provision under which the Director of Central Intelligence 
     and then (after enactment of the Intelligence Reform Act) the 
     CIA Director could promulgate rules to exempt any system of 
     records within the CIA from certain disclosure requirements 
     under the Act. The exemption authority was designed to ensure 
     that the CIA could provide safeguards for certain sensitive 
     information in its records systems. In assuming the 
     leadership of the Intelligence Community, the DNI similarly 
     requires the ability to safeguard sensitive information in 
     records systems within the ODNI. Accordingly, Section 419 
     extends to the DNI the authority to promulgate rules under 
     which records systems of the ODNI may be exempted from 
     certain Privacy Act disclosure requirements. It is identical 
     to Section 417 of the Senate amendment. The House bill did 
     not contain a comparable provision.
     Section 420. Repeal of certain authorities relating to the 
         Office of the National Counterintelligence Executive
       Section 420 amends the authorities and structure of the 
     NCIX to eliminate certain independent administrative 
     authorities that had been vested in the NCIX when that 
     official was appointed by and reported to the President. 
     Those authorities are unnecessary now that the NCIX is to be 
     appointed by and is under the authority of the DNI. Section 
     420 is identical to Section 414 of the Senate amendment and 
     Section 432 of the House bill.

                Subtitle B--Central Intelligence Agency

     Section 431. Review of covert action programs by Inspector 
         General of the Central Intelligence Agency
       Title V of the National Security Act of 1947, entitled 
     ``Accountability for Intelligence Activities,'' sets forth 
     the Act's basic requirements on Executive branch obligations 
     to keep the congressional intelligence committees fully 
     informed about intelligence activities. Section 503 of the 
     National Security Act of 1947 (50 U.S.C. 413b) is 
     specifically devoted to presidential findings and 
     congressional notification of covert actions. Section 431 
     augments the oversight of covert actions by adding a new 
     subsection to Section 503 that requires that the CIA 
     Inspector General conduct an audit of each covert action at 
     least every three years and submit to the congressional 
     intelligence committees a report containing the audit results 
     within 60 days of completing the audit. To a considerable 
     extent, this requirement confirms in statute existing 
     practice and assures its regularity.
       The Director of National Intelligence has expressed concern 
     that this audit requirement, and several other provisions on 
     Intelligence Community reports, raise concerns with respect 
     to the President's authority to control access to national 
     security information. To allay any such concern regarding the 
     covert action audit requirement, the conferees have amended 
     Section 431 to state that the requirement is subject to the 
     longstanding provisions of section 17(b)(3) and (4) of the 
     Central Intelligence Agency Act of 1949 (50 U.S.C. 403q(b)(3) 
     and (4)) that empower the CIA Director to prohibit the CIA 
     Inspector General from initiating, carrying out, or 
     completing an audit if the Director determines that the 
     prohibition is necessary to protect vital national security 
     interests of the United States, provided that the Director 
     report the reasons to the congressional intelligence 
     committees.
       Section 431 is based on Section 423 of the House bill. The 
     Senate amendment did not contain a comparable provision.
     Section 432. Inapplicability to the Director of the Central 
         Intelligence Agency of requirement for annual report on 
         progress in auditable financial statements
       Section 432 is identical to Section 422 of the Senate 
     amendment and Section 424 of the House bill. Section 432 
     relieves the CIA Director from the requirement in section 
     114A of the National Security Act of 1947 (50 U.S.C. 404i-1) 
     to submit to the congressional intelligence committees an 
     annual report describing the activities being taken to ensure 
     that financial statements of the CIA can be audited in 
     accordance with applicable law and the requirements of OMB. 
     Although concern remains that the CIA has had minimal success 
     in achieving unqualified opinions on its financial 
     statements, the report required by Section 114A is 
     unnecessary as CIA is now submitting audited financial 
     statements. The requirements of Section 114A continue to 
     apply to the Directors of NSA, DIA, and NGA.
     Section 433. Additional functions and authorities for 
         protective personnel of the Central Intelligence Agency
       Section 433 amends section 5(a)(4) of the Central 
     Intelligence Agency Act of 1949 (50 U.S.C. 403f(a)(4)) which 
     authorizes protective functions by designated security 
     personnel who serve on CIA protective details.
       The section authorizes protective detail personnel, when 
     engaged in, and in furtherance of, the performance of 
     protective functions, to make arrests in two circumstances. 
     Protective detail personnel may make arrests without a 
     warrant for any offense against the United States--whether a 
     felony, misdemeanor, or infraction--that is committed in 
     their presence. They may also make arrests without a warrant 
     if they have reasonable grounds to believe that the person to 
     be arrested has committed or is committing a felony, but not 
     other offenses, under the laws of the United States.
       Guidelines approved by the CIA Director and the Attorney 
     General will provide safeguards and procedures to ensure the 
     proper exercise of this authority. Section 433 specifically 
     does not grant any authority to serve civil process or to 
     investigate crimes.
       The authority provided by this section is consistent with 
     those of other Federal elements with protective functions, 
     such as the Secret Service (18 U.S.C. 3056(c)(1)(C)), the 
     State Department Diplomatic Security Service (22 U.S.C. 
     2709(a)(5)), and the Capitol Police (2 U.S.C. 1966(c)). 
     Arrest authority will

[[Page 33258]]

     contribute significantly to the ability of CIA protective 
     detail personnel to fulfill their responsibility to protect 
     officials against serious threats without being dependent on 
     the ability of Federal, State, or local law enforcement 
     officers to respond immediately. The grant of arrest 
     authority is supplemental to all other authority CIA 
     protective detail personnel have by virtue of their statutory 
     responsibility to perform the protective functions set forth 
     in the CIA Act of 1949.
       Section 433 also authorizes the CIA Director on the request 
     of the DNI to make CIA protective detail personnel available 
     to the DNI and to other personnel within the ODNI.
       The CIA Director shall submit to the congressional 
     intelligence committees as soon as possible, but not later 
     than 10 days after an arrest, a report describing each 
     exercise of authority under this section.
       Section 433 is based on Section 423 of the Senate 
     amendment. The House bill did not include a comparable 
     provision. The conferees added the explicit requirement that 
     arrests be in furtherance of the performance of protective 
     functions and the requirement for a report to the 
     congressional intelligence committees about each exercise of 
     arrest authority.
     Section 434. Technical amendments relating to titles of 
         certain CIA positions
       Section 434 replaces out-of-date titles for CIA positions 
     with the current titles of the successors of those positions 
     in a provision in section 17 of the Central Intelligence 
     Agency Act of 1949 (50 U.S.C. 403q) on the obligation of the 
     CIA Inspector General to notify the congressional 
     intelligence committees about investigations, inspections, or 
     audits concerning high-ranking CIA officials. Section 434 is 
     similar to Section 424 of the Senate amendment and Section 
     516 of the House bill, except for a conference agreement to 
     add additional titles that needed to be changed.
     Section 435. Clarifying amendments relating to section 105 of 
         the Intelligence Authorization Act for Fiscal Year 2004
       Section 435 changes the reference to the Director of 
     Central Intelligence to the Director of National Intelligence 
     to clarify that the establishment of the Office of 
     Intelligence and Analysis within the Department of the 
     Treasury (section 105 of the Intelligence Authorization Act 
     for Fiscal Year 2004 (Pub. L. No. 108-177 (Dec. 13, 2003)), 
     and its reorganization within the Office of Terrorism and 
     Financial Intelligence (section 222 of the Transportation, 
     Treasury, Independent Agencies, and General Government 
     Appropriations Act, 2005 (Division H, Pub. L. No. 108-447 
     (Dec. 8, 2004)), do not affect the authorities and 
     responsibilities of the DNI with respect to the Office of 
     Intelligence and Analysis as an element of the Intelligence 
     Community. Section 435 is identical to Section 442 of the 
     Senate amendment and Section 431 of the House bill.

              Subtitle C--Defense Intelligence Components

     Section 441. Enhancement of National Security Agency training 
         program
       Section 441 permits the Director of the National Security 
     Agency to protect intelligence sources and methods by 
     deleting a requirement that NSA publicly identify to 
     educational institutions students who are NSA employees or 
     training program participants. Deletion of this disclosure 
     requirement will enhance the ability of NSA to protect 
     personnel and prospective personnel and to preserve the 
     ability of training program participants to undertake future 
     clandestine or other sensitive assignments for the 
     Intelligence Community.
       The conferees recognize that nondisclosure is appropriate 
     when disclosure would threaten intelligence sources or 
     methods, would endanger the life or safety of the student, or 
     would limit the employee's or prospective employee's ability 
     to perform intelligence activities in the future. 
     Notwithstanding the deletion of the disclosure requirement, 
     the conferees expect NSA to continue to prohibit participants 
     in the training program from engaging in any intelligence 
     functions at the institutions they attend under the program. 
     See H.R. Rep. No. 99-690, Part I (July 17, 1986) (``NSA 
     employees attending an institution under the program will 
     have no intelligence function whatever to perform at the 
     institution.'').
       Section 441 is similar to Section 431(b) of the Senate 
     amendment. The conferees did not include subsection (a) of 
     Section 431 of the Senate amendment, which was a clarifying 
     provision to allow the NSA to recoup the educational costs 
     expended for the benefit of a student who fails to maintain 
     satisfactory academic performance. The conferees believe that 
     this matter and its application to other Intelligence 
     Community scholarship programs should be given further study 
     by the congressional intelligence committees. The House bill 
     had no similar provision.
     Section 442. Codification of authorities of National Security 
         Agency protective personnel
       Section 442 amends the National Security Agency Act of 1959 
     (50 U.S.C. 402 note) by adding a new Section 21 to clarify 
     and enhance the authority of protective details for NSA.
       The new section 21(a) would authorize the Director of NSA 
     to designate NSA personnel to perform protective detail 
     functions for the Director and other personnel of NSA who are 
     designated from time to time by the Director as requiring 
     protection. Section 11 of the NSA Act of 1959 presently 
     provides that the Director of NSA may authorize agency 
     personnel to perform certain security functions at NSA 
     headquarters, at certain other facilities, and around the 
     perimeter of those facilities. The new authority for 
     protective details would enable the Director of the NSA to 
     provide security when the Director or other designated 
     personnel require security away from those facilities.
       The new section 21(b) would provide that NSA personnel, 
     when engaged in performing protective detail functions, and 
     in furtherance of the performance of those functions, may 
     exercise the same arrest authority that Section 433 of this 
     Act provides for CIA protective detail personnel. The arrest 
     authority for NSA protective detail personnel would be 
     subject to guidelines approved by the Director of NSA and the 
     Attorney General. The purpose and extent of that arrest 
     authority, the limitations on it, and reporting expectations 
     about it are described in the explanation for Section 433. 
     That analysis and explanation applies equally to the arrest 
     authority provided to NSA protective detail personnel by 
     Section 21(b).
       While this Act provides separately for authority for CIA 
     and NSA protective details, the DNI should advise the 
     congressional intelligence committees whether overall 
     policies, procedures, and authority should be provided for 
     protective services, when necessary, for other Intelligence 
     Community elements or personnel (or their immediate 
     families).
       Section 442 is similar to Section 432 of the Senate 
     amendment. The House bill had no comparable provision.
     Section 443. Inspector general matters
       The Inspector General Act of 1978 (Pub. L. No. 95-452 (Oct. 
     12, 1978)) established a government-wide system of Inspectors 
     General, some appointed by the President with the advice and 
     consent of the Senate and others ``administratively 
     appointed'' by the heads of their respective Federal 
     entities. These Inspector Generals were authorized to 
     ``conduct and supervise audits and investigations relating to 
     the programs and operations'' of the government and ``to 
     promote economy, efficiency, and effectiveness in the 
     administration of, and *  *  * to prevent and detect fraud 
     and abuse in, such programs and operations.'' 5 U.S.C. App. 
     2. These Inspectors General also perform an important 
     reporting function, ``keeping the head of the establishment 
     and the Congress fully and currently informed about problems 
     and deficiencies relating to the administration of *  *  * 
     programs and operations and the necessity for and progress of 
     corrective action.'' Id. The investigative authorities 
     exercised by Inspectors General, and their relative 
     independence from the government operations they audit and 
     investigate, provide an important mechanism to ensure that 
     the operations of the government are conducted as efficiently 
     and effectively as possible.
       The Inspectors General of the CIA and Departments of 
     Defense, Energy, Homeland Security, Justice, State, and 
     Treasury are appointed by the President with the advice and 
     consent of the Senate. These Inspectors General--authorized 
     by either the Inspector General Act of 1978 or section 17 of 
     the CIA Act of 1949--enjoy a degree of independence from all 
     but the head of their respective departments or agencies. 
     They also have explicit statutory authority to access 
     information from their departments or agencies or other 
     United States Government departments and agencies and may use 
     subpoenas to access information (e.g., from an agency 
     contractor) necessary to carry out their authorized 
     functions.
       The National Reconnaissance Office, the Defense 
     Intelligence Agency, the National Security Agency and the 
     National Geospatial-Intelligence Agency have established 
     their own ``administrative'' Inspectors General. However, 
     because they are not identified in section 8G of the 
     Inspector General Act of 1978, they lack explicit statutory 
     authorization to access information relevant to their audits 
     or investigations, or to compel the production of information 
     via subpoena. This lack of authority has impeded access to 
     information, in particular information from contractors, that 
     is necessary for them to perform their important oversight 
     function. These Inspectors General also lack the indicia of 
     independence necessary for the Government Accountability 
     Office to recognize their annual financial statement audits 
     as being in compliance with the Chief Financial Officers Act 
     of 1990 (Pub. L. No. 101-576 (Nov. 15, 1990)). The lack of 
     independence also prevents the Department of Defense 
     Inspector General, and would prevent the Inspector General of 
     the Intelligence Community, from relying on the results of 
     NRO, DIA, NSA, or NGA Inspector General audits or 
     investigations that must meet ``generally accepted government 
     auditing standards.''
       To provide an additional level of independence and to 
     ensure prompt access to the information necessary for these 
     Inspectors General to perform their audits and 
     investigations, Section 443 amends Section 8G(a)(2) of the 
     Inspector General Act of 1978 to include NRO, DIA, NSA, and 
     NGA as ``designated federal entities.'' As so designated,

[[Page 33259]]

     the heads of these Intelligence Community elements will be 
     required by statute administratively to appoint Inspectors 
     General for these agencies.
       Also, as designated Inspectors General under the Inspector 
     General Act of 1978, these Inspectors General will be 
     responsible to the heads of the NRO, DIA, NSA, and NGA. The 
     removal or transfer of any of these Inspectors General by the 
     head of their office or agency must be promptly reported to 
     the congressional intelligence committees. These Inspectors 
     General will also be able to exercise other investigative 
     authorities, including those governing access to information 
     and the issuance of subpoenas, utilized by other Inspectors 
     General under the Inspector General Act of 1978.
       To protect vital national security interests, Section 443 
     permits the Secretary of Defense, in consultation with the 
     Director of National Intelligence, to prohibit the Inspectors 
     General of the NRO, DIA, NSA, and NGA from initiating, 
     carrying out, or completing any audit or investigation they 
     are otherwise authorized to conduct. This authority is 
     similar to the authority of the CIA Director under section 17 
     of the CIA Act of 1949 with respect to the Inspector General 
     of the CIA and the authority of the Secretary of Defense 
     under section 8 of the Inspector General Act of 1978 with 
     respect to the Department of Defense Inspector General. It 
     will provide the President, through the Secretary of Defense, 
     in consultation with the DNI, a mechanism to protect 
     extremely sensitive intelligence sources and methods or other 
     vital national security interests. The Committee expects that 
     this authority will be exercised rarely by the Secretary of 
     Defense.
       The Senate amendment had provided the authority to prohibit 
     the Inspectors General from initiating, carrying out, or 
     completing any audit or investigation to either the DNI or 
     the Secretary of Defense. To address Administration concerns 
     that authorizing the DNI to cut off an investigation that had 
     been ordered by the head of an executive department would be 
     inconsistent with the preservation of the authority of the 
     heads of departments and agencies over their respective 
     departments, the conferees changed this provision to limit 
     the authority to the Secretary of Defense, in consultation 
     with the DNI.
       Section 443 is similar to Section 433 of the Senate 
     amendment. The House bill had no similar provision.
     Section 444. Confirmation of appointment of heads of certain 
         components of the Intelligence Community
       Under present law and practice, the directors of the NSA 
     and NRO, each with a distinct and significant role in the 
     national intelligence mission, are not confirmed by the 
     Senate in relation to their leadership of these agencies. 
     Presently, the President appoints the Director of NSA and the 
     Secretary of Defense appoints the Director of the NRO. 
     Neither of these appointments must be confirmed by the 
     Senate, unless a military officer is promoted or transferred 
     into the position. Under that circumstance, Senate 
     confirmation of the promotion or assignment is the 
     responsibility of the Committee on Armed Services. That 
     committee's review, however, relates to the military 
     promotion or assignment and not specifically to the 
     assumption by the individual of the leadership of a critical 
     element of the Intelligence Community.
       Section 434 of the Senate amendment provided that the heads 
     of NSA, NGA, and NRO would be nominated by the President and 
     that the nominations would be confirmed by the Senate. 
     Through advice and consent, the Senate can enable the 
     Congress to fulfill more completely its responsibility for 
     providing oversight to the intelligence activities of the 
     United States Government.
       To respond to the concerns of the DNI about the increase in 
     the number of Senate- confirmed positions within the 
     Intelligence Community, the conferees agreed that only the 
     heads of the NSA and NRO, as the larger two of the three 
     agencies, should be nominated by the President and confirmed 
     by the Senate at this time. While all three agencies play a 
     critical role in the national intelligence mission, the 
     spending of NSA and NRO comprises a significant portion of 
     the entire intelligence budget of the United States, and a 
     substantial portion of the National Intelligence Program. The 
     activities of NSA and NRO are also of particular concern to 
     the congressional intelligence committees, because of the 
     need for NSA's authorized collection to be consistent with 
     the protection of the civil liberties and privacy interests 
     of U.S. persons, and because of concerns about NRO's 
     management of the significant budget resources and mission 
     with which it is entrusted.
       Section 444(b) provides that the amendments made by section 
     444 apply prospectively. Therefore, the Directors of NSA and 
     NRO on the date of the enactment of this Act will not be 
     affected by the amendments, which will apply initially to the 
     appointment and confirmation of their successors. Section 444 
     does not alter the role of the Committee on Armed Services in 
     reviewing and approving the promotion or assignment of 
     military officers.
       The House bill had no similar provision.
     Section 445. Clarification of national security missions of 
         National Geospatial-Intelligence Agency for analysis and 
         dissemination of certain intelligence information
       The National Imagery and Mapping Agency Act of 1996 (Pub. 
     L. No. 104-201 (Sept. 23, 1996) (NIMA Act)) formally merged 
     the imagery analysis and mapping efforts of the Department of 
     Defense and the CIA. In the NIMA Act, Congress cited a need 
     ``to provide a single agency focus for the growing number and 
     diverse types of customers for imagery and geospatial 
     information resources within the Government *  *  * to 
     harness, leverage, and focus rapid technological developments 
     to serve the imagery, imagery intelligence, and geospatial 
     information customers.'' Section 1102(1) of the NIMA Act. 
     Since then, there have been rapid developments in airborne 
     and commercial imagery platforms, new imagery and geospatial 
     phenomenology, full motion video, and geospatial analysis 
     tools.
       Section 921 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Pub. L. No. 108-136 (Nov. 24, 2003)) 
     changed the name of the National Imagery and Mapping Agency 
     to the National Geospatial-Intelligence Agency. The name 
     change was intended to introduce the term ``geospatial 
     intelligence'' to better describe the unified activities of 
     NGA related to the ``analysis and visual representation of 
     characteristics of the earth and activity on its surface.'' 
     See S. Rep. 108-46 (May 13, 2003) (accompanying The National 
     Defense Authorization Act for Fiscal Year 2004, S. 1050, 
     108th Cong., 1st Sess.).
       Though the NGA has made significant progress toward 
     unifying the traditional imagery analysis and mapping 
     missions of the CIA and Department of Defense, it has been 
     slow to embrace other facets of ``geospatial intelligence,'' 
     including the processing, storage, and dissemination of full 
     motion video (``FMV'') and ground-based photography. Rather, 
     the NGA's geospatial product repositories--containing 
     predominantly overhead imagery and mapping products--continue 
     to reflect its heritage. While the NGA is belatedly beginning 
     to incorporate more airborne and commercial imagery, its data 
     holdings and products are nearly devoid of FMV and ground-
     based photography.
       The conferees believe that FMV and ground-based photography 
     should be included, with available positional data, in NGA 
     data repositories for retrieval on Department of Defense and 
     Intelligence Community networks. Current mission planners and 
     military personnel are well-served with traditional imagery 
     products and maps, but FMV of the route to and from a 
     facility or photographs of what a facility would look like to 
     a foot soldier--rather than from an aircraft--would be of 
     immense value to military personnel and intelligence 
     officers. Ground-based photography is amply available from 
     open sources, as well as other government sources such as 
     military units, United States embassy personnel, defense 
     attaches, special operations forces, foreign allies, and 
     clandestine officers. These products should be better 
     incorporated into NGA data holdings.
       To address these concerns, Section 445 adds an additional 
     national security mission to the responsibilities of the NGA. 
     To fulfill this new mission, NGA would be required, as 
     directed by the DNI, to develop a system to facilitate the 
     analysis, dissemination, and incorporation of likenesses, 
     videos, or presentations produced by ground-based platforms, 
     including handheld or clandestine photography taken by or on 
     behalf of human intelligence collection organizations or 
     available as open-source information, into the national 
     system for geospatial intelligence.
       Section 445 also makes clear that this new responsibility 
     does not include the authority to manage tasking of handheld 
     or clandestine photography taken by or on behalf of human 
     intelligence collection organizations. Although Section 445 
     does not give the NGA authority to set technical requirements 
     for collection of handheld or clandestine photography, the 
     conferees encourage the NGA to engage other elements of the 
     Intelligence Community on these technical requirements to 
     ensure that their output can be incorporated into the 
     national system for geospatial-intelligence within the 
     security handling guidelines consistent with the 
     photography's classification as determined by the appropriate 
     authority.
       Section 445 is similar to Section 435 of the Senate 
     amendment. The House bill had no similar provision.
     Section 446. Security clearances in the National Geospatial-
         Intelligence Agency
       Section 446 requires the Secretary of Defense to delegate 
     to the Director of NGA through December 31, 2008, the 
     personnel security authority with respect to NGA personnel 
     that is identical to the personnel security authority of the 
     Director of NSA with respect to NSA personnel. Section 446 is 
     designed as an interim measure to address what has been a 
     large backlog in security clearances at NGA. The conferees 
     believe the DNI and the Secretary of Defense must continue to 
     seek a permanent method of addressing clearance matters such 
     as these. Section 446 is identical to Section 436 of the 
     Senate amendment. The House bill had no similar provision.

[[Page 33260]]



                       subtitle D--other elements

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

                         TITLE V--OTHER MATTERS

                subtitle A--general intelligence matters

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

                    Subtitle B--Technical Amendments

     Section 511. Technical amendments to Title 10, United States 
         Code, arising from enactment of the Intelligence Reform 
         and Terrorism Protection Act of 2004
       Section 511 corrects a number of technical errors in the 
     United States Code arising from the enactment of the 
     Intelligence Reform Act in 2004. Section 511 is identical to 
     Section 504 of the Senate amendment. The House bill has no 
     similar provision.
     Section 512. Technical amendments to the Central Intelligence 
         Agency Act of 1949
       Section 512 amends the Central Intelligence Agency Act of 
     1949 by updating references to the National Security Act of 
     1947 to reflect amendments made by the Intelligence Reform 
     Act. Section 512 is identical to Section 505 of the Senate 
     bill and similar to Section 422 of the House bill.
     Section 513. Technical amendments to the multiyear National 
         Intelligence Program
       Section 513 updates the ``multiyear national intelligence 
     program'' to incorporate organizational and nomenclature 
     changes made by the Intelligence Reform Act. Section 506 is 
     identical to Section 513 of the Senate amendment and Section 
     511 of the House bill.
     Section 514. Technical clarifications of certain references 
         to Joint Military Intelligence Program and Tactical 
         Intelligence and Related Activities
       Section 514 makes technical clarifications to the National 
     Security Act of 1947 to reflect the consolidation of the 
     Joint Military Intelligence Program and the Tactical 
     Intelligence and Related Activities program into the Military 
     Intelligence Program. This section preserves the requirement 
     that the DNI participate in the development of the annual 
     budget and be consulted prior to the transfer or 
     reprogramming of funds for the Military Intelligence Program. 
     Section 514 is identical to Section 502 of the Senate 
     amendment and Section 512 of the House bill.
     Section 515. Technical amendments to the National Security 
         Act of 1947
       Section 515 makes a number of technical corrections to the 
     National Security Act of 1947 arising from enactment of the 
     Intelligence Reform Act. Conferees removed one technical 
     correction because it was unnecessary to clarify the scope of 
     a completed reporting requirement. Section 515 is otherwise 
     identical to Section 501 of the Senate bill and Section 513 
     of the House bill.
     Section 516. Technical amendments to the Intelligence Reform 
         and Terrorism Prevention Act of 2004
       Section 516 makes a number of technical and conforming 
     amendments to the Intelligence Reform Act. Section 516 is 
     identical to Section 503 of the Senate amendment and Section 
     514 of the House bill.
     Section 517. Technical amendments to the Executive Schedule
       Section 517 makes technical amendments to the Executive 
     Schedule to correct outdated and incorrect references to 
     ``Director of Central Intelligence,'' ``Deputy Directors of 
     Central Intelligence,'' and ``General Counsel to the National 
     Intelligence Director.'' Section 517 is substantially similar 
     to Section 507 of the Senate amendment and Section 515 of the 
     House bill.

                            General Matters

     Items not included
       The managers agreed not to include in the conference report 
     certain sections from the House bill and the Senate amendment 
     because these sections were unnecessary; the requirements in 
     the section had been or would be otherwise fulfilled; the 
     sections related to activities for which funds would not be 
     available; or for other reasons.
       Because the DNI expressed concerns over the increase in the 
     number of Senate-confirmed positions within the Intelligence 
     Community, the conferees reviewed the total number of Senate-
     confirmed positions in the Senate amendment and the House 
     bill. On that review, the conferees determined to limit the 
     additional confirmed positions in this conference report to 
     the three positions they identified to be the highest current 
     priority. In doing so, the conferees eliminated a provision 
     that would have required the head of NGA to be confirmed by 
     the Senate, as discussed in Section 444 of this joint 
     explanatory statement, and removed Section 421 of the Senate 
     amendment and Section 421 of the House bill. Section 421 of 
     the Senate amendment and House bill would have made the 
     position of Deputy Director of the Central Intelligence 
     Agency a statutory position that required appointment by the 
     President, with the advice and consent of the Senate. The 
     conferees expect that the congressional intelligence 
     committees will continue to consider the appropriate method 
     of appointment of the Deputy Director of the Central 
     Intelligence Agency.
       The conference report also eliminates Section 407 of the 
     House bill, which would have required the DNI to submit a 
     National Intelligence Estimate on the anticipated 
     geopolitical effects of global climate change on the national 
     security of the United States. The conferees remain fully 
     committed to this assessment. The conferees note the DNI has 
     stated that work on such a national intelligence assessment 
     has already begun. The conferees expect that the national 
     intelligence assessment will be transmitted to Congress in a 
     timely manner.
       The House receded on the following sections: Section 405, 
     eligibility for incentive awards of personnel assigned to the 
     Office of the Director of National Intelligence; Section 504, 
     reiteration of the Foreign Intelligence Surveillance Act of 
     1978 (``FISA'') as the exclusive means for electronic 
     surveillance; Section 517, technical amendments relating to 
     redesignation of the National Imagery and Mapping Agency as 
     the National Geospatial-Intelligence Agency; Section 601, 
     identification of best practices for the communication of 
     information concerning a terrorist threat; and Section 602, 
     centers of best practices.
       The Senate receded on the following sections: Section 106, 
     development and acquisition program; Section 315, submittal 
     to Congress of certain FISA court orders; Section 409, 
     reserve for contingencies of the Office of the Director of 
     National Intelligence; Section 508, technical amendments 
     relating to redesignation of the National Imagery and Mapping 
     Agency as the National Geospatial-Intelligence Agency; and 
     Section 509, technical amendments relating to the 
     responsibility of the Director of National Intelligence. The 
     elimination of Section 106 of the Senate amendment is 
     discussed in more detail in the classified annex.
       With respect to the two provisions in the House bill and 
     Senate amendment dealing with FISA, it was the judgment of 
     the conferees that they would best be addressed in pending 
     legislation to amend FISA.

[[Page 33261]]


     Compliance with rule XXI, CL. 9 (House) and with rule XLIV 
         (Senate)
       The following list is submitted in compliance with clause 9 
     of rule XXI of the Rules of the House of Representatives and 
     rule XLIV of the Standing Rules of the Senate, which require 
     publication of a list of congressionally directed spending 
     items (Senate), congressional earmarks (House), limited tax 
     benefits, and limited tariff benefits included in the 
     conference report, the joint explanatory statement, or the 
     classified schedule of authorizations accompanying the 
     conference report, including the name of each Senator, House 
     Member, Delegate, or Resident Commissioner who submitted a 
     request to the Committee of jurisdiction for each item so 
     identified. Congressionally directed spending items (as 
     defined in the Senate rule) and congressional earmarks (as 
     defined in the House rule) in this division of the conference 
     report, the joint explanatory statement, or the classified 
     schedule of authorizations are listed below. The conference 
     report, the joint explanatory statement, and the classified 
     schedule of authorizations contain no limited tax benefits or 
     limited tariff benefits as defined in the applicable House 
     and Senate rules.
       The following items are included in the NIP authorization:
       (1) A provision directing the expenditure of $3,000,000 for 
     research into advanced mirror development in the National 
     Reconnaissance Program. The provision was requested by 
     Congressman Tierney.
       (2) A provision adding $3,200,000 to the National Security 
     Agency for the RC-135 sensor upgrade. The provision was added 
     at the request of Congressman Hall of Texas.
       (3) A provision adding $2,750,000 to the National Security 
     Agency for geo-location software development. The provision 
     was added at the request of Congresswoman Eshoo.
       (4) A provision adding $3,000,000 to the National Security 
     Agency for a Counterproliferation system prototype. The 
     provision was requested by Congressman Ruppersberger.
       (5) A provision adding $23,000,000 to fund the operations 
     of the NDIC. The provision was added at the request of 
     Congressman Murtha.
       (6) A provision adding $1,600,000 to the Community 
     Management Account for the Centers of Academic Excellence. 
     The provision was requested by Congressman Hastings of 
     Florida.
       (7) A provision adding $1,500,000 for the Laboratory for 
     High-Performance Computational Systems at the Missile and 
     Space Intelligence Center. The provision was requested by 
     Congressman Cramer.
       (8) A provision adding $1,000,000 to improve rapid missile 
     all-source analysis at the Missile and Space Intelligence 
     Center. The provision was requested by Congressmen Cramer and 
     Everett.
       (9) A provision adding $4,000,000 for a Missile and Space 
     Intelligence Center simulation project. The provision was 
     requested by Congressman Cramer and Everett.
       (10) A provision adding $1,000,000 for seismic research to 
     the General Defense Intelligence Program. The provision was 
     requested by Congressman Tierney.
       (11) A provision adding $2,000,000 to the National 
     Geospatial Intelligence Program for a global geospatial data 
     project. The provision was requested by Congressman Everett.
       (12) A provision adding $1,000,000 for joint intelligence 
     training and education to the Joint Counterintelligence 
     Training Activity. The provision was requested by Congressman 
     Murtha.
       (13) A provision adding $1,000,000 for mobile missile 
     analysis and detection to the General Defense Intelligence 
     Program. The provision was requested by Congressman Murtha.
       (14) A provision adding $200,000 to the Office of the 
     Director of National Intelligence for an Intelligence 
     Training Program run by the Kennedy School of Government. 
     This program was started in fiscal year 2007, but the 
     President did not request funding for it for fiscal year 
     2008. The provision was added at the request of Senator 
     Rockefeller.
       (15) A provision adding $3,000,000 to the Naval 
     Oceanographic Command. This provision was added at the 
     request of Senator Lott.
       (16) A provision directing the expenditure of $3,000,000 
     for a classified effort with the National Reconnaissance 
     Office's GEOINT/SIGINT Integrated Ground Development 
     Engineering and Management Expenditure Center. This provision 
     was added at the request of Senator Rockefeller.
       In addition, the following earmarks (as defined in the 
     House rule) are included in the Military Intelligence Program 
     and the Information Systems Security Program. The House 
     Permanent Select Committee on Intelligence shares 
     jurisdiction of these programs with the House Armed Services 
     Committee.
       (1) A provision adding $2,000,000 to the National Security 
     Agency for a radio frequency signal collection program. The 
     provision was requested by Congressman Ruppersberger.
       (2) A provision adding $1,000,000 to the National Security 
     Agency for a next-generation signal intelligence sensor. The 
     provision was requested by Congressman McCaul.
       (3) A provision adding $1,000,000 to Special Operations 
     Command for tactical signals intelligence and geo-location 
     cognitive analysis. The provision was requested by 
     Congressman Cramer.
       (4) A provision adding $1,000,000 to the United States Army 
     for Battle Lab collection management tool synchronization. 
     The provision was requested by Congressman Cramer.
       (5) A provision adding $1,500,000 to the United States Army 
     for sensor visualization and data fusion. The provision was 
     requested by Congressman Tierney.
       (6) A provision adding $3,000,000 to the United States Air 
     Force for the RC-135 modernization. The provision was 
     requested by Congressman Hall of Texas.
       (7) A provision adding $2,000,000 to the Office of the 
     Secretary of Defense for the Western Hemisphere Security 
     Analysis Center. The provision was requested by Congressman 
     Hastings of Florida.
       (8) A provision adding $10,000,000 to the National Security 
     Agency for the national/tactical gateway. The provision was 
     requested by Congressman Ruppersberger.
       (9) A provision adding $2,500,000 for computer chip 
     hardening to the National Security Agency. The provision was 
     requested by Congressman Ruppersberger.
       (10) A provision adding $2,500,000 for the cryptographic 
     modernization program to the National Security Agency. The 
     provision was requested by Congressman Honda.

     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Silvestre Reyes,
     Alcee L. Hastings,
     Leonard L. Boswell,
     Bud Cramer,
     Anna G. Eshoo,
     Rush Holt,
     C. A. Ruppersberger,
     Mike Thompson,
     Janice Schakowsky,
     James R. Langevin,
     Patrick J. Murphy.
     From the Committee on Armed Services, for consideration of 
     defense tactical intelligence and related activities:
     Ike Skelton,
     John M. Spratt, Jr.,
                                Managers on the Part of the House.

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

                          ____________________