[Congressional Record (Bound Edition), Volume 158 (2012), Part 13]
[Senate]
[Pages 18336-18338]
[From the U.S. Government Publishing Office, www.gpo.gov]




          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2013

  Mr. REID. Mr. President, I ask unanimous consent that the Senate 
proceed to the consideration of Calendar No. 475, S. 3454.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  A bill (S. 3454) to authorize appropriations for fiscal year 2013 for 
intelligence and intelligence-related activities of the United States 
Government and the Office of the Director of National Intelligence, the 
Central Intelligence Agency Retirement and Disability System, and for 
other purposes.
  There being no objection, the Senate proceeded to consider the bill.
  Mrs. FEINSTEIN. Mr. President, among the unfinished business before 
the Senate is the consideration of the Intelligence Authorization Act 
for Fiscal Year 2013. I am asking today for unanimous consent to 
approve this legislation with a managers' amendment worked out both 
with vice chairman Chambliss and the chairman and ranking member of the 
House Permanent Select Committee on Intelligence, in consultation with 
the Armed Services and Appropriations Committees.
  The Senate Select Committee on Intelligence reported its Fiscal Year 
2013 bill, S. 3454, with its accompanying report, S. Rpt. 112-192, on 
July 30, 2012 by a vote of 14-1. The bill and report have been publicly 
available since it was reported. The classified annex reported from the 
Committee was also available for all Senators to review in the 
Committee's office.
  S. 3454 as reported from our Committee was not without controversy, 
especially with regard to provisions in the bill that were meant to 
address the wholly unacceptable and large-scale disclosures of 
classified information to the media.
  Since the bill was reported out, the Committee has received 
thoughtful comments from our colleagues, media organizations, and from 
organizations that advocate for greater governmental transparency. As a 
result of these comments, and technical suggestions received from the 
Executive Branch, we have decided to remove ten of the twelve sections 
in the title of the original bill that addressed unauthorized 
disclosures of classified information so that we might ensure enactment 
this year of the important other provisions of the bill.
  Unfortunately, I am certain that damaging leaks of classified 
information will continue, and so the Committee will need to continue 
to look for acceptable ways to address this problem.
  Let me briefly describe the managers' amendment and where we have 
made modifications in what was reported from the Committee.
  As always, the intelligence authorization bill has two pieces: the 
legislative text, which is unclassified, and a classified annex that 
contains the Committee's authorization of intelligence spending.
  The bill contains a number of legislative provisions requested by the 
Administration to give the intelligence community the authorities and 
flexibilities it needs to continue protecting the American people and 
providing policymakers information for foreign policy and security 
decisions, as well as for the effective and appropriate functioning of 
our intelligence apparatus.
  Among other things, this bill includes:
  Repeal of four recurring reporting requirements burdensome to 
Intelligence Community agencies when the information in such reports is 
duplicative, or is provided to the Congress through other means. We 
regularly hear from intelligence officials that they spend so much time 
writing reports that it interferes with collection, analysis, and 
management of intelligence activities.
  Modification of personnel authorities to facilitate more ``joint 
duty'' assignments within the Intelligence Community that will create 
shared knowledge across different elements of the IC.
  These provisions, and several others that are mainly technical in 
nature, were requested by the director of National Intelligence and 
incorporated into the bill.
  Other sections were initiated by the Committee to assist 
Congressional oversight efforts. These include, for example, a 
requirement for corrective action plans to be developed to address the 
issue of improper payments made by intelligence agencies. We also 
require notification to the congressional intelligence committees under 
certain circumstances with respect to certain disclosures of national 
intelligence information.
  As this managers' amendment represents the combined efforts of the 
Senate and House, we have also included three provisions from the 
House-passed bill which were not in the Committee's original bill. 
These address security clearance reciprocity, subcontractor business 
opportunities in the Intelligence Community, and a report on supply 
chain vulnerabilities.
  I am attaching at the end of this statement a section-by-section 
analysis that describes each of the sections of this managers' 
amendment.
  It is my hope that the provisions in this bill will continue to aid 
the Intelligence Community as it conducts its missions, ensure better 
stewardship of taxpayer dollars, and support the thousands of civilians 
and military employees who work throughout the Intelligence Community.

[[Page 18337]]

  As I mentioned, this managers' amendment also includes modifications 
to the classified annex and the Schedule of Authorizations, modified to 
represent the consensus of both congressional intelligence committees. 
I am unable to describe in detail the Committee's classified schedule 
and annex, but it is available to all Senators for their review in the 
Committee's spaces. The Committee has sought to ensure that funding is 
authorized to continue and enhance important intelligence collection 
and analysis programs, covert actions, and counterintelligence. At the 
same time, we have cut funding for programs that were functioning 
poorly or at expenditure rates below expectations, and to shift funding 
from lower priorities to higher ones.
  As always, the Committee has held numerous hearings and briefings on 
the President's spending request. As was announced in late October, 
intelligence spending decreased slightly in Fiscal Year 2012, and that 
trend will continue in Fiscal Year 2013. Our annex contains an overall 
funding level that is very close to the President's request, and we 
have attempted to find places to reduce spending that will not 
sacrifice any important work of the intelligence agencies.
  I believe we have addressed all of the concerns that have been 
brought to our attention by our colleagues and the public. I thus urge 
passage of this managers' amendment and enactment of this important 
legislation before the end of the session.
  I ask unanimous consent that the section by section analysis be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

              Section-by-Section Analysis and Explanation

       The following is a section-by-section analysis and 
     explanation of the Intelligence Authorization Act for Fiscal 
     Year 2013.


              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

     Section 101. Authorization of appropriations
       Section 101 lists the United States Government departments, 
     agencies, and other elements for which the Act authorizes 
     appropriations for intelligence and intelligence-related 
     activities for Fiscal Year 2013.
     Section 102. Classified Schedule of Authorizations
       Section 102 provides that the details of the amounts 
     authorized to be appropriated for intelligence and 
     intelligence-related activities and the applicable personnel 
     levels by program for Fiscal Year 2013 are contained in the 
     classified Schedule of Authorizations and that the classified 
     Schedule of Authorizations shall be made available to the 
     Committees on Appropriations of the Senate and House of 
     Representatives and to the President.
     Section 103. Personnel ceiling adjustments
       Section 103 is intended to provide additional flexibility 
     to the Director of National Intelligence (DNI) in managing 
     the civilian personnel of the Intelligence Community. Section 
     103(a) provides that the DNI may authorize employment of 
     civilian personnel in Fiscal Year 2013 in excess of the 
     number of authorized positions by an amount not exceeding 3 
     percent of the total limit applicable to each Intelligence 
     Community element under Section 102. The DNI may do so only 
     if necessary to the performance of important intelligence 
     functions.
       Section 103(b) requires the DNI to establish guidelines 
     that would ensure a uniform and accurate method of counting 
     certain personnel. The DNI has issued such a policy. 
     Subsection (b) confirms in statute the obligation of the DNI 
     to establish these guidelines.
       The DNI must report the decision to allow an Intelligence 
     Community element to exceed the personnel ceiling in advance 
     to the congressional intelligence committees.
     Section 104. Intelligence Community Management Account
       Section 104 authorizes appropriations for the Intelligence 
     Community Management Account (ICMA) of the DNI and sets the 
     authorized personnel levels for the elements within the ICMA 
     for Fiscal Year 2013.
       Subsection (a) authorizes appropriations of $540,721,000 
     for Fiscal Year 2013 for the activities of the ICMA. 
     Subsection (b) authorizes 835 positions for elements within 
     the ICMA for Fiscal Year 2013 and provides that personnel 
     serving in such elements may be permanent employees of the 
     Office of the Director of National Intelligence (ODNI) or 
     detailed from other elements of the United States Government.
       Subsection (c) authorizes additional appropriations and 
     personnel for the classified Community Management Account as 
     specified in the classified Schedule of Authorizations and 
     permits the funding for advanced research and development to 
     remain available through September 30, 2014.


 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     Section 201. Authorization of appropriations
       Section 201 authorizes appropriations in the amount of 
     $514,000,000 for Fiscal Year 2013 for the Central 
     Intelligence Agency (CIA) Retirement and Disability Fund.


           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

     Section 301. Restriction on conduct of intelligence 
         activities
       Section 301 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 or laws of 
     the United States.
     Section 302. Increase in employee compensation and benefits 
         authorized by law
       Section 302 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 303. Non-reimbursable details
       Section 303 amends Section 113A of the National Security 
     Act of 1947 (50 U.S.C. 404h-1) to increase the length of time 
     an officer or employee of the federal government can be 
     detailed to the staff of an element of the Intelligence 
     Community funded through the National Intelligence Program 
     (NIP) from two years to three. In addition, Section 303 
     clarifies that a non-reimbursable detail made under Section 
     113A shall not be considered an augmentation of the 
     appropriations of the receiving element of the Intelligence 
     Community.
       The DNI requested that an extension of the length of 
     service from two years to three years be made for members of 
     the Armed Forces detailed to an element of Intelligence 
     Community. This request was intended to align Section 113A 
     with requirements for joint duty assignments among the 
     military. Section 664(a) of Title 10 provides that joint duty 
     assignments for military officers, other than general and 
     flag officers, shall be no less than three years. Section 303 
     provides the flexibility of a three-year length of service to 
     civilian employees as well as military officers.
     Section 304. Automated insider threat detection program
       Section 304 extends by one year the milestones for 
     establishment of an automated insider threat detection 
     program under Section 402 of the Intelligence Authorization 
     Act for Fiscal Year 2011 (Public Law 112-18). The 
     administration had requested a two-year extension of the 
     milestone for ``initial operating capability'' and a three-
     year extension of the milestone for ``full operating 
     capability.'' The one-year extensions are intended to ensure 
     that the Intelligence Community moves more rapidly toward 
     establishment of this program.
     Section 305. Software licensing
       Section 305 requires the chief information officer for an 
     element of the Intelligence Community to conduct an inventory 
     of software licenses held by such element, including those 
     utilized and unutilized, by the element. This inventory is to 
     be conducted in consultation with the Chief Information 
     Officer of the Intelligence Community (CIO) and completed 
     within 120 days of enactment. Not later than 180 days after 
     enactment, the CIO shall provide the congressional 
     intelligence committees with a copy of the reports along with 
     any comments the CIO wishes to provide. The CIO shall 
     transmit any portion of a report involving a component of a 
     department of the U.S. government to the congressional 
     committees with jurisdiction over such department 
     simultaneously with submission of such report to the 
     congressional intelligence committees.
     Section 306. Strategy for security clearance reciprocity
       Section 306 requires the President to develop a strategy 
     and process for carrying out the requirements of section 
     3001(d) of the Intelligence Reform and Terrorism Prevention 
     Act of 2004, which concerns reciprocity of security clearance 
     access determinations across agencies.
     Section 307. Improper Payments Elimination and Recovery Act 
         of 2010 compliance
       Section 307 requires the DNI and the directors of the CIA, 
     the Defense Intelligence Agency (DIA), the National 
     Geospatial-Intelligence Agency (NGA), and the National 
     Security Agency (NSA) each to develop a corrective action 
     plan, with major milestones, that delineates how such 
     agencies will achieve compliance with the Improper Payments 
     Elimination and Recovery Act of 2010, not later than 
     September 30, 2013. Section 307(b) requires the relevant 
     inspectors general to review the corrective action plan and 
     assess whether it is likely to lead to compliance. Each 
     assessment is to be provided to the congressional 
     intelligence committees. The corrective action plans and 
     inspector general assessments involving the DIA, NGA,

[[Page 18338]]

     and NSA shall also be submitted to the armed services 
     committees of the Senate and House of Representatives.
     Section 308. Subcontractor notification process
       Section 308 requires the DNI to submit a report to the 
     congressional intelligence committees assessing the method by 
     which contractors at any tier under a contract entered into 
     with an element of the Intelligence Community are granted 
     security clearances and notified of classified contracting 
     opportunities within the Federal Government and 
     recommendations for the improvement of such method.
     Section 309. Modification of reporting schedule
       Section 309 changes the dates by which the inspectors 
     general of the Intelligence Community and the CIA are 
     required to prepare and submit semiannual reports on the 
     activities of their offices from a calendar year basis to a 
     fiscal year basis. This change will align these reporting 
     requirements with the reporting requirements of other 
     inspectors general in the Intelligence Community and 
     facilitate joint audits, inspections and investigations.
     Section 310. Repeal of certain reporting requirements
       Congress frequently requests information from the 
     Intelligence Community in the form of reports, the contents 
     of which are specifically defined by statute. The reports 
     prepared pursuant to these statutory requirements provide 
     Congress with an invaluable source of information about 
     specific matters of concern.
       Congressional reporting requirements, and particularly 
     recurring reporting requirements, can place a significant 
     burden on the resources of the Intelligence Community. In 
     some cases, annual reports can be replaced with briefings or 
     notifications that provide the Congress with more timely 
     information and offer the Intelligence Community a direct 
     line of communication to respond to congressional concerns.
       In response to a request from the DNI, Section 310 
     eliminates four reports that were burdensome to the 
     Intelligence Community when the information in the reports 
     could be obtained through other means or was no longer 
     considered relevant to current concerns.


     TITLE IV--MATTERS RELATING TO THE CENTRAL INTELLIGENCE AGENCY

     Section 401. Working capital fund amendments
       Section 401 amends Section 21 of the Central Intelligence 
     Agency Act of 1949 (50 U.S.C. 403u) to provide authority for 
     the service providers under the CIA Central Services Program 
     to use resources to make their services known to their 
     authorized customer base through government communication 
     channels, but clarifies this authority shall not be used to 
     distribute gifts or promotional items. In addition, Section 
     401 authorizes service providers to deposit receipts from the 
     sale of their recyclable materials into the CIA working 
     capital fund.


                         TITLE V--OTHER MATTERS

     Section 501. Homeland Security Intelligence Program
       Section 501 establishes the Homeland Security Intelligence 
     Program (HSIP) within the Department of Homeland Security for 
     activities of the Office of Intelligence and Analysis (OIA) 
     that serve predominantly a departmental mission. The OIA is 
     currently funded through the NIP.
     Section 502. Extension of National Commission for the Review 
         of the Research and Development Programs of the United 
         States Intelligence Community
       Section 502 extends the date by which the National 
     Commission for the Review of the Research and Development 
     Programs of the United States Intelligence Community is 
     required to submit a report on its findings from ``not later 
     than one year after the date on which all members of the 
     Commission are appointed pursuant to Section 701(a)(3) of the 
     Intelligence Authorization Act for Fiscal Year 2010'' to not 
     later than March 31, 2013, which is effectively one year 
     after the Commission was able to begin its review. The 
     extension was requested by the co-chairs of the Commission.
     Section 503. Protecting the information technology supply 
         chain of the United States
       Section 503 requires the DNI to submit to the congressional 
     intelligence committees a report that identifies foreign 
     suppliers of information technology that are linked directly 
     or indirectly to a foreign government and assesses the 
     vulnerability to malicious activity of the telecommunications 
     networks of the United States due to the presence of 
     technology produced by such foreign suppliers.
     Section 504. Notification regarding the authorized public 
         disclosure of national intelligence
       Section 504 requires government officials responsible for 
     making certain authorized disclosures of national 
     intelligence or intelligence related to national security to 
     notify the congressional intelligence committees on a timely 
     basis with respect to such disclosures. On a timely basis in 
     this instance does not mean at the exact same time but should 
     be sufficiently timely to keep the committees fully and 
     currently informed.
       This provision is intended to ensure that the intelligence 
     committees are made aware of authorized disclosures of 
     national intelligence or intelligence related to national 
     security that are made to media personnel or likely to appear 
     in the press, so that, among other things, these authorized 
     disclosures may be distinguished from unauthorized ``leaks.''
       Section 504(c) provides that the notification requirement 
     does not apply to a disclosure made pursuant to statutory 
     requirements, in connection with civil, criminal or 
     administrative proceedings, as a result of a declassification 
     review process under Executive Order 13526, or to cleared 
     government representatives with a need to know.
       Section 504(e) provides a one-year sunset for the 
     notification requirement in this section.
     Section 505. Technical amendments related to the Office of 
         the Director of National Intelligence
       Sections 2302 and 3132 of Title 5 of the United States Code 
     exclude from the definition of ``agency'' under those 
     chapters certain specifically listed agencies such as the 
     CIA. In addition, Sections 2302 and 3132 exclude from the 
     definition of ``agency'' those executive agencies that the 
     President determines have as their principal function ``the 
     conduct of foreign intelligence or counterintelligence 
     activities.'' Section 505 amends the definition of agency in 
     Sections 2302 and 3132 to expressly identify the ODNI as an 
     agency excluded from the definition of ``agency'' under those 
     chapters.
     Section 506. Technical amendment for definition of 
         intelligence agency
       Title VI of the National Security Act of 1947 imposes 
     criminal penalties for the disclosure of the identity of 
     covert agents of an intelligence agency. The current 
     definition of an ``intelligence agency'' does not include the 
     counterintelligence elements of the Department of Defense or 
     the intelligence and counterintelligence components of other 
     elements of the Intelligence Community despite the fact that 
     these components may be conducting counterintelligence 
     operations jointly with the Federal Bureau of Investigation 
     or under their own independent authority. Section 506 thus 
     amends Section 606(5) of the National Security Act of 1947 
     (50 U.S.C. 426) to revise the definition of ``intelligence 
     agency'' to include all elements of the Intelligence 
     Community, as found in Section 3(4) of the National Security 
     Act.
     Section 507. Budgetary effects
       Section 507 provides that the budgetary effects of this 
     Act, for the purpose of complying with the Statutory Pay-As-
     You-Go-Act of 2010, shall be determined by reference to the 
     latest statement titled ``Budgetary Effects of PAYGO 
     Legislation'' for this Act, submitted for printing in the 
     Congressional Record by the Chairman of the Senate Budget 
     Committee, provided that such statement has been submitted 
     prior to the vote on passage.

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