[House Report 108-798]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-798

======================================================================



 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2005

                                _______
                                

                December 7, 2004.--Ordered to be printed

                                _______
                                

Mr. Hoekstra, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 4548]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the Senate to the bill (H.R. 
4548), to authorize appropriations for fiscal year 2005 for 
intelligence and intelligence-related activities of the United 
States Government, the Community Management Account, and the 
Central Intelligence Agency Retirement and Disability System, 
and for other purposes, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
    That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
    In lieu of the matter proposed to be inserted by the Senate 
amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This title may be cited as the 
``Intelligence Authorization Act for Fiscal Year 2005''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

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

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                      TITLE III--GENERAL PROVISIONS

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

                  TITLE IV--CENTRAL INTELLIGENCE AGENCY

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

           TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

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

                           TITLE VI--EDUCATION

             Subtitle A--National Security Education Program

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

   Subtitle B--Improvement in Intelligence Community Foreign Language 
                                 Skills

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

                      TITLE VII--TERRORISM MATTERS

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

                        TITLE VIII--OTHER MATTERS

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

                    TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

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

SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

    (a) Authority for Adjustments.--With the approval of the 
Director of the Office of Management and Budget, the Director 
of National Intelligence may authorize employment of civilian 
personnel in excess of the number authorized for fiscal year 
2005 under section 102 when the Director of National 
Intelligence determines that such action is necessary to the 
performance of important intelligence functions, except that 
the number of personnel employed in excess of the number 
authorized under such section may not, for any element of the 
intelligence community, exceed 2 percent of the number of 
civilian personnel authorized under such section for such 
element.
    (b) Notice to Intelligence Committees.--The Director of 
National Intelligence shall promptly notify the Select 
Committee on Intelligence of the Senate and the Permanent 
Select Committee on Intelligence of the House of 
Representatives whenever the Director exercises the authority 
granted by this section.

SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

    (a) Authorization of Appropriations.--There is authorized 
to be appropriated for the Intelligence Community Management 
Account of the Director of National Intelligence for fiscal 
year 2005 the sum of $310,466,000. Within such amount, funds 
identified in the classified Schedule of Authorizations 
referred to in section 102(a) for advanced research and 
development shall remain available until September 30, 2006.
    (b) Authorized Personnel Levels.--The elements within the 
Intelligence Community Management Account of the Director of 
National Intelligence are authorized 310 full-time personnel as 
of September 30, 2005. Personnel serving in such elements may 
be permanent employees of the Intelligence Community Management 
Account or personnel detailed from other elements of the United 
States Government.
    (c) Classified Authorizations.--
            (1) Authorization of appropriations.--In addition 
        to amounts authorized to be appropriated for the 
        Intelligence Community Management Account by subsection 
        (a), there are also authorized to be appropriated for 
        the Intelligence Community Management Account for 
        fiscal year 2005 such additional amounts as are 
        specified in the classified Schedule of Authorizations 
        referred to in section 102(a). Such additional amounts 
        for research and development shall remain available 
        until September 30, 2006.
            (2) Authorization of personnel.--In addition to the 
        personnel authorized by subsection (b) for elements of 
        the Intelligence Community Management Account as of 
        September 30, 2005, there are also authorized such 
        additional personnel for such elements as of that date 
        as are specified in the classified Schedule of 
        Authorizations.
    (d) Reimbursement.--Except as provided in section 113 of 
the National Security Act of 1947 (50 U.S.C. 404h), during 
fiscal year 2005 any officer or employee of the United States 
or a member of the Armed Forces who is detailed to the staff of 
the Intelligence Community Management Account from another 
element of the United States Government shall be detailed on a 
reimbursable basis, except that any such officer, employee, or 
member may be detailed on a nonreimbursable basis for a period 
of less than one year for the performance of temporary 
functions as required by the Director of National Intelligence.
    (e) National Drug Intelligence Center.--
            (1) In general.--Of the amount authorized to be 
        appropriated in subsection (a), $42,322,000 shall be 
        available for the National Drug Intelligence Center. 
        Within such amount, funds provided for research, 
        development, testing, and evaluation purposes shall 
        remain available until September 30, 2006, and funds 
        provided for procurement purposes shall remain 
        available until September 30, 2007.
            (2) Transfer of funds.--The Director of National 
        Intelligence shall transfer to the Attorney General 
        funds available for the National Drug Intelligence 
        Center under paragraph (1). The Attorney General shall 
        utilize funds so transferred for the activities of the 
        National Drug Intelligence Center.
            (3) Limitation.--Amounts available for the National 
        Drug Intelligence Center may not be used in 
        contravention of the provisions of section 103(d)(1) of 
        the National Security Act of 1947 (50 U.S.C. 403-
        3(d)(1)).
            (4) Authority.--Notwithstanding any other provision 
        of law, the Attorney General shall retain full 
        authority over the operations of the National Drug 
        Intelligence Center.

SEC. 105. INCORPORATION OF REPORTING REQUIREMENTS.

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

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

    Funds appropriated for an intelligence or intelligence-
related activity of the United States Government for fiscal 
year 2004 in excess of the amount specified for such activity 
in the classified Schedule of Authorizations prepared to 
accompany the Intelligence Authorization Act for Fiscal Year 
2004 (Public Law 108-177; 117 Stat. 2599) shall be deemed to be 
specifically authorized by Congress for purposes of section 
504(a)(3) of the National Security Act of 1947 (50 U.S.C. 
414(a)(3)). Such funds shall remain available until September 
30, 2005.

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

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

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

                     TITLE III--GENERAL PROVISIONS

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

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

SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

SEC. 303. CHIEF INFORMATION OFFICER.

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

                      ``CHIEF INFORMATION OFFICER

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

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

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

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

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

SEC. 305. INTELLIGENCE ASSESSMENT ON SANCTUARIES FOR TERRORISTS.

    (a) Assessment Required.--Not later than the date specified 
in subsection (b), the Director of National Intelligence shall 
submit to Congress an intelligence assessment that identifies 
and describes each country or region that is a sanctuary for 
terrorists or terrorist organizations. The assessment shall be 
based on current all-source intelligence.
    (b) Submittal Date.--The date of the submittal of the 
intelligence assessment required by subsection (a) shall be the 
earlier of--
            (1) the date that is six months after the date of 
        the enactment of this Act; or
            (2) June 1, 2005.

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

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

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

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

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

SEC. 402. INTELLIGENCE OPERATIONS AND COVER ENHANCEMENT AUTHORITY.

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

       ``INTELLIGENCE OPERATIONS AND COVER ENHANCEMENT AUTHORITY

    ``Sec. 23. (a) Definitions.--In this section--
            ``(1) the term `designated employee' means an 
        employee designated by the Director of the Central 
        Intelligence Agency under subsection (b); and
            ``(2) the term `Federal retirement system' includes 
        the Central Intelligence Agency Retirement and 
        Disability System, and the Federal Employees' 
        Retirement System (including the Thrift Savings Plan).
    ``(b) In General.--
            ``(1) Authority.--Notwithstanding any other 
        provision of law, the Director of the Central 
        Intelligence Agency may exercise the authorities under 
        this section in order to--
                    ``(A) protect from unauthorized 
                disclosure--
                            ``(i) intelligence operations;
                            ``(ii) the identities of undercover 
                        intelligence officers;
                            ``(iii) intelligence sources and 
                        methods; or
                            ``(iv) intelligence cover 
                        mechanisms; or
                    ``(B) meet the special requirements of work 
                related to collection of foreign intelligence 
                or other authorized activities of the Agency.
            ``(2) Designation of employees.--The Director of 
        the Central Intelligence Agency may designate any 
        employee of the Agency who is under nonofficial cover 
        to be an employee to whom this section applies. Such 
        designation may be made with respect to any or all 
        authorities exercised under this section.
    ``(c) Compensation.--The Director of the Central 
Intelligence Agency may pay a designated employee salary, 
allowances, and other benefits in an amount and in a manner 
consistent with the nonofficial cover of that employee, without 
regard to any limitation that is otherwise applicable to a 
Federal employee. A designated employee may accept, utilize, 
and, to the extent authorized by regulations prescribed under 
subsection (i), retain any salary, allowances, and other 
benefits provided under this section.
    ``(d) Retirement Benefits.--
            ``(1) In general.--The Director of the Central 
        Intelligence Agency may establish and administer a 
        nonofficial cover employee retirement system for 
        designated employees (and the spouse, former spouses, 
        and survivors of such designated employees). A 
        designated employee may not participate in the 
        retirement system established under this paragraph and 
        another Federal retirement system at the same time.
            ``(2) Conversion to other federal retirement 
        system.--
                    ``(A) In general.--A designated employee 
                participating in the retirement system 
                established under paragraph (1) may convert to 
                coverage under the Federal retirement system 
                which would otherwise apply to that employee at 
                any appropriate time determined by the Director 
                of the Central Intelligence Agency (including 
                at the time of separation of service by reason 
                of retirement), if the Director of the Central 
                Intelligence Agency determines that the 
                employee's participation in the retirement 
                system established under this subsection is no 
                longer necessary to protect from unauthorized 
                disclosure--
                            ``(i) intelligence operations;
                            ``(ii) the identities of undercover 
                        intelligence officers;
                            ``(iii) intelligence sources and 
                        methods; or
                            ``(iv) intelligence cover 
                        mechanisms.
                    ``(B) Conversion treatment.--Upon a 
                conversion under this paragraph--
                            ``(i) all periods of service under 
                        the retirement system established under 
                        this subsection shall be deemed periods 
                        of creditable service under the 
                        applicable Federal retirement system;
                            ``(ii) the Director of the Central 
                        Intelligence Agency shall transmit an 
                        amount for deposit in any applicable 
                        fund of that Federal retirement system 
                        that--
                                    ``(I) is necessary to cover 
                                all employee and agency 
                                contributions including--
                                            ``(aa) interest as 
                                        determined by the head 
                                        of the agency 
                                        administering the 
                                        Federal retirement 
                                        system into which the 
                                        employee is converting; 
                                        or
                                            ``(bb) in the case 
                                        of an employee 
                                        converting into the 
                                        Federal Employees' 
                                        Retirement System, 
                                        interest as determined 
                                        under section 8334(e) 
                                        of title 5, United 
                                        States Code; and
                                    ``(II) ensures that such 
                                conversion does not result in 
                                any unfunded liability to that 
                                fund; and
                            ``(iii) in the case of a designated 
                        employee who participated in an 
                        employee investment retirement system 
                        established under paragraph (1) and is 
                        converted to coverage under subchapter 
                        III of chapter 84 of title 5, United 
                        States Code, the Director of the 
                        Central Intelligence Agency may 
                        transmit any or all amounts of that 
                        designated employee in that employee 
                        investment retirement system (or 
                        similar part of that retirement system) 
                        to the Thrift Savings Fund.
                    ``(C) Transmitted amounts.--
                            ``(i) In general.--Amounts 
                        described under subparagraph (B)(ii) 
                        shall be paid from the fund or 
                        appropriation used to pay the 
                        designated employee.
                            ``(ii) Offset.--The Director of the 
                        Central Intelligence Agency may use 
                        amounts contributed by the designated 
                        employee to a retirement system 
                        established under paragraph (1) to 
                        offset amounts paid under clause (i).
                    ``(D) Records.--The Director of the Central 
                Intelligence Agency shall transmit all 
                necessary records relating to a designated 
                employee who converts to a Federal retirement 
                system under this paragraph (including records 
                relating to periods of service which are deemed 
                to be periods of creditable service under 
                subparagraph (B)) to the head of the agency 
                administering that Federal retirement system.
    ``(e) Health Insurance Benefits.--
            ``(1) In general.--The Director of the Central 
        Intelligence Agency may establish and administer a 
        nonofficial cover employee health insurance program for 
        designated employees (and the family of such designated 
        employees). A designated employee may not participate 
        in the health insurance program established under this 
        paragraph and the program under chapter 89 of title 5, 
        United States Code, at the same time.
            ``(2) Conversion to federal employees health 
        benefits program.--
                    ``(A) In general.--A designated employee 
                participating in the health insurance program 
                established under paragraph (1) may convert to 
                coverage under the program under chapter 89 of 
                title 5, United States Code, at any appropriate 
                time determined by the Director of the Central 
                Intelligence Agency (including at the time of 
                separation of service by reason of retirement), 
                if the Director of the Central Intelligence 
                Agency determines that the employee's 
                participation in the health insurance program 
                established under this subsection is no longer 
                necessary to protect from unauthorized 
                disclosure--
                            ``(i) intelligence operations;
                            ``(ii) the identities of undercover 
                        intelligence officers;
                            ``(iii) intelligence sources and 
                        methods; or
                            ``(iv) intelligence cover 
                        mechanisms.
                    ``(B) Conversion treatment.--Upon a 
                conversion under this paragraph--
                            ``(i) the employee (and family, if 
                        applicable) shall be entitled to 
                        immediate enrollment and coverage under 
                        chapter 89 of title 5, United States 
                        Code;
                            ``(ii) any requirement of prior 
                        enrollment in a health benefits plan 
                        under chapter 89 of that title for 
                        continuation of coverage purposes shall 
                        not apply;
                            ``(iii) the employee shall be 
                        deemed to have had coverage under 
                        chapter 89 of that title from the first 
                        opportunity to enroll for purposes of 
                        continuing coverage as an annuitant; 
                        and
                            ``(iv) the Director of the Central 
                        Intelligence Agency shall transmit an 
                        amount for deposit in the Employees' 
                        Health Benefits Fund that is necessary 
                        to cover any costs of such conversion.
                    ``(C) Transmitted amounts.--Any amount 
                described under subparagraph (B)(iv) shall be 
                paid from the fund or appropriation used to pay 
                the designated employee.
    ``(f) Life Insurance Benefits.--
            ``(1) In general.--The Director of the Central 
        Intelligence Agency may establish and administer a 
        nonofficial cover employee life insurance program for 
        designated employees (and the family of such designated 
        employees). A designated employee may not participate 
        in the life insurance program established under this 
        paragraph and the program under chapter 87 of title 5, 
        United States Code, at the same time.
            ``(2) Conversion to federal employees group life 
        insurance program.--
                    ``(A) In general.--A designated employee 
                participating in the life insurance program 
                established under paragraph (1) may convert to 
                coverage under the program under chapter 87 of 
                title 5, United States Code, at any appropriate 
                time determined by the Director of the Central 
                Intelligence Agency (including at the time of 
                separation of service by reason of retirement), 
                if the Director of the Central Intelligence 
                Agency determines that the employee's 
                participation in the life insurance program 
                established under this subsection is no longer 
                necessary to protect from unauthorized 
                disclosure--
                            ``(i) intelligence operations;
                            ``(ii) the identities of undercover 
                        intelligence officers;
                            ``(iii) intelligence sources and 
                        methods; or
                            ``(iv) intelligence cover 
                        mechanisms.
                    ``(B) Conversion treatment.--Upon a 
                conversion under this paragraph--
                            ``(i) the employee (and family, if 
                        applicable) shall be entitled to 
                        immediate coverage under chapter 87 of 
                        title 5, United States Code;
                            ``(ii) any requirement of prior 
                        enrollment in a life insurance program 
                        under chapter 87 of that title for 
                        continuation of coverage purposes shall 
                        not apply;
                            ``(iii) the employee shall be 
                        deemed to have had coverage under 
                        chapter 87 of that title for the full 
                        period of service during which the 
                        employee would have been entitled to be 
                        insured for purposes of continuing 
                        coverage as an annuitant; and
                            ``(iv) the Director of the Central 
                        Intelligence Agency shall transmit an 
                        amount for deposit in the Employees' 
                        Life Insurance Fund that is necessary 
                        to cover any costs of such conversion.
                    ``(C) Transmitted amounts.--Any amount 
                described under subparagraph (B)(iv) shall be 
                paid from the fund or appropriation used to pay 
                the designated employee.
    ``(g) Exemption From Certain Requirements.--The Director of 
the Central Intelligence Agency may exempt a designated 
employee from mandatory compliance with any Federal regulation, 
rule, standardized administrative policy, process, or procedure 
that the Director of the Central Intelligence Agency 
determines--
            ``(1) would be inconsistent with the nonofficial 
        cover of that employee; and
            ``(2) could expose that employee to detection as a 
        Federal employee.
    ``(h) Taxation and Social Security.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, a designated employee--
                    ``(A) shall file a Federal or State tax 
                return as if that employee is not a Federal 
                employee and may claim and receive the benefit 
                of any exclusion, deduction, tax credit, or 
                other tax treatment that would otherwise apply 
                if that employee was not a Federal employee, if 
                the Director of the Central Intelligence Agency 
                determines that taking any action under this 
                paragraph is necessary to--
                            ``(i) protect from unauthorized 
                        disclosure--
                                    ``(I) intelligence 
                                operations;
                                    ``(II) the identities of 
                                undercover intelligence 
                                officers;
                                    ``(III) intelligence 
                                sources and methods; or
                                    ``(IV) intelligence cover 
                                mechanisms; and
                            ``(ii) meet the special 
                        requirements of work related to 
                        collection of foreign intelligence or 
                        other authorized activities of the 
                        Agency; and
                    ``(B) shall receive social security 
                benefits based on the social security 
                contributions made.
            ``(2) Internal revenue service review.--The 
        Director of the Central Intelligence Agency shall 
        establish procedures to carry out this subsection. The 
        procedures shall be subject to periodic review by the 
        Internal Revenue Service.
    ``(i) Regulations.--The Director of the Central 
Intelligence Agency shall prescribe regulations to carry out 
this section. The regulations shall ensure that the combination 
of salary, allowances, and benefits that an employee designated 
under this section may retain does not significantly exceed, 
except to the extent determined by the Director of the Central 
Intelligence Agency to be necessary to exercise the authority 
in subsection (b), the combination of salary, allowances, and 
benefits otherwise received by Federal employees not designated 
under this section.
    ``(j) Finality of Decisions.--Any determinations authorized 
by this section to be made by the Director of the Central 
Intelligence Agency or the Director's designee shall be final 
and conclusive and shall not be subject to review by any court.
    ``(k) Subsequently Enacted Laws.--No law enacted after the 
effective date of this section shall affect the authorities and 
provisions of this section unless such law specifically refers 
to this section.''.

          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

SEC. 501. NATIONAL SECURITY AGENCY EMERGING TECHNOLOGIES PANEL.

    The National Security Agency Act of 1959 (50 U.S.C. 402 
note) is amended by adding at the end the following new 
section:
    ``Sec. 19. (a) There is established the National Security 
Agency Emerging Technologies Panel. The Panel is a standing 
panel of the National Security Agency. The Panel shall be 
appointed by, and shall report directly to, the Director of the 
National Security Agency.
    ``(b) The Panel shall study and assess, and periodically 
advise the Director on, the research, development, and 
application of existing and emerging science and technology 
advances, advances in encryption, and other topics.
    ``(c) The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply with respect to the Panel.''.

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

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

                          TITLE VI--EDUCATION

            Subtitle A--National Security Education Program

SEC. 601. ANNUAL FUNDING.

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

SEC. 602. IMPROVEMENTS TO NATIONAL FLAGSHIP LANGUAGE INITIATIVE.

    (a) Requirement for Employment Agreements.--(1) Section 
802(i) of the David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1902(i)) is amended by adding at the end the 
following new paragraphs:
    ``(5) An undergraduate or graduate student who participates 
in training in a program under paragraph (1) and has not 
already entered into a service agreement under subsection (b) 
shall enter into a service agreement under subsection (b) 
applicable to an undergraduate or graduate student, as the case 
may be, with respect to participation in such training in a 
program under paragraph (1).
    ``(6)(A) An employee of a department or agency of the 
Federal Government who participates in training in a program 
under paragraph (1) shall agree in writing--
            ``(i) to continue in the service of the department 
        or agency of the Federal Government employing the 
        employee for the period of such training;
            ``(ii) to continue in the service of such 
        department or agency, following completion by the 
        employee of such training, for a period of two years 
        for each year, or part of the year, of such training;
            ``(iii) if, before the completion by the employee 
        of such training, the employment of the employee is 
        terminated by such department or agency due to 
        misconduct by the employee, or by the employee 
        voluntarily, to reimburse the United States for the 
        total cost of such training (excluding the employee's 
        pay and allowances) provided to the employee; and
            ``(iv) if, after the completion by the employee of 
        such training but before the completion by the employee 
        of the period of service required by clause (ii), the 
        employment of the employee by such department or agency 
        is terminated either by such department or agency due 
        to misconduct by the employee, or by the employee 
        voluntarily, to reimburse the United States in an 
        amount that bears the same ratio to the total cost of 
        such training (excluding the employee's pay and 
        allowances) provided to the employee as the unserved 
        portion of such period of service bears to the total 
        period of service required by clause (ii).
    ``(C) Subject to subparagraph (D), the obligation to 
reimburse the United States under an agreement under 
subparagraph (A) is for all purposes a debt owing the United 
States.
    ``(D) The head of the element of the intelligence community 
concerned may release an employee, in whole or in part, from 
the obligation to reimburse the United States under an 
agreement under subparagraph (A) when, in the discretion of the 
head of the element, the head of the element determines that 
equity or the interests of the United States so require.''.
    (2) The amendment made by paragraph (1) shall apply to 
training under section 802(i) of the David L. Boren National 
Security Actof 1991 that begins on or after the date that is 90 
days after the date of the enactment of this Act.
    (b) Increase in Annual Funding.--Section 811 of that Act 
(50 U.S.C. 1911) is amended by striking subsection (b) and 
inserting the following new subsections:
    ``(b) Funding From Intelligence Community Management 
Account for Fiscal Years Beginning With Fiscal Year 2005.--In 
addition to amounts that may be made available to the Secretary 
under the Fund for a fiscal year, the Director of National 
Intelligence shall transfer to the Secretary from amounts 
appropriated for the Intelligence Community Management Account 
for each fiscal year, beginning with fiscal year 2005, 
$6,000,000 to carry out the grant program for the National 
Flagship Language Initiative under section 802(a)(1)(D).
    ``(c) Availability of Appropriated Funds.--Amounts made 
available under this section shall remain available until 
expended.''.
    (c) Increase in Number of Participating Educational 
Institutions.--The Secretary of Defense shall take such actions 
as the Secretary considers appropriate to increase the number 
of qualified educational institutions that receive grants under 
the National Flagship Language Initiative under section 802(i) 
of the David L. Boren National Security Education Act of 1991 
to establish, operate, or improve activities designed to train 
students in programs in a range of disciplines to achieve 
advanced levels of proficiency in those foreign languages that 
the Secretary identifies as being the most critical to the 
national security of the United States.
    (d) Clarification of Authority to Support Studies Abroad.--
Educational institutions that receive grants under the National 
Flagship Language Initiative may support students who pursue 
total immersion foreign language studies overseas of foreign 
languages that are critical to the national security of the 
United States.

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

    (a) Scholarship Program.--(1) Subsection (a)(1) of section 
802 of the David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1902) is amended--
            (A) by striking ``and'' at the end of subparagraph 
        (C);
            (B) by striking the period at the end of 
        subparagraph (D) and inserting ``; and''; and
            (C) by adding at the end the following new 
        subparagraph:
                    ``(E) awarding scholarships to students 
                who--
                            ``(i) are United States citizens 
                        who--
                                    ``(I) are native speakers 
                                (referred to as `heritage 
                                community citizens') of a 
                                foreign language that is 
                                identified as critical to the 
                                national security interests of 
                                the United States who should be 
                                actively recruited for 
                                employment by Federal security 
                                agencies with a need for 
                                linguists; and
                                    ``(II) are not proficient 
                                at a professional level in the 
                                English language with respect 
                                to reading, writing, and other 
                                skills required to carry out 
                                the national security interests 
                                of the United States, as 
                                determined by the Secretary,
                        to enable such students to pursue 
                        English language studies at an 
                        institution of higher education of the 
                        United States to attain proficiency in 
                        those skills; and
                            ``(ii) enter into an agreement to 
                        work in a position in a similar manner 
                        (as determined by the Secretary) as 
                        agreements entered into pursuant to 
                        subsection (b)(2)(A).''.
    (2) The matter following subsection (a)(2) of such section 
is amended--
            (A) in the first sentence, by inserting ``or for 
        the scholarship program under paragraph (1)(E)'' after 
        ``under paragraph (1)(D) for the National Flagship 
        Language Initiative described in subsection (i)''; and
            (B) by adding at the end the following: ``For the 
        authorization of appropriations for the scholarship 
        program under paragraph (1)(E), see section 812.''.
    (3) Section 803(d)(4)(E) of such Act (50 U.S.C. 
1903(d)(4)(E)) is amended by inserting before the period the 
following: ``and section 802(a)(1)(E) (relating to the 
scholarship program for advanced English language studies by 
heritage community citizens)''.
    (b) Funding.--The David L. Boren National Security 
Education Act of 1991 (50 U.S.C. 1901 et seq.) is amended by 
adding at the end the following new section:

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

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

  Subtitle B--Improvement in Intelligence Community Foreign Language 
                                 Skills

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

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

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

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

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

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

                ``Subtitle B--Foreign Languages Program

     ``PROGRAM ON ADVANCEMENT OF FOREIGN LANGUAGES CRITICAL TO THE 
                         INTELLIGENCE COMMUNITY

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

                        ``EDUCATION PARTNERSHIPS

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

                          ``VOLUNTARY SERVICES

    ``Sec. 1013. (a) Authority To Accept Services.--
Notwithstanding section 1342 of title 31, United States Code, 
and subject to subsection (b), the Foreign Languages Program 
under section 1011 shall include authority for the head of a 
covered element of the intelligence community to accept from 
any dedicated personnel voluntary services in support of the 
activities authorized by this subtitle.
    ``(b) Requirements and Limitations.--(1) In accepting 
voluntary services from an individual under subsection (a), the 
head of a covered element of the intelligence community shall--
            ``(A) supervise the individual to the same extent 
        as the head of the element would supervise a 
        compensated employee of that element providing similar 
        services; and
            ``(B) ensure that the individual is licensed, 
        privileged, has appropriate educational or experiential 
        credentials, or is otherwise qualified under applicable 
        law or regulations to provide such services.
    ``(2) In accepting voluntary services from an individual 
under subsection (a), the head of a covered element of the 
intelligence community may not--
            ``(A) place the individual in a policymaking 
        position, or other position performing inherently 
        governmental functions; or
            ``(B) compensate the individual for the provision 
        of such services.
    ``(c) Authority To Recruit and Train Individuals Providing 
Services.--The head of a covered element of the intelligence 
community may recruit and train individuals to provide 
voluntary services under subsection (a).
    ``(d) Status of Individuals Providing Services.--(1) 
Subject to paragraph (2), while providing voluntary services 
under subsection (a) or receiving training under subsection 
(c), an individual shall be considered to be an employee of the 
Federal Government only for purposes of the following 
provisions of law:
            ``(A) Section 552a of title 5, United States Code 
        (relating to maintenance of records on individuals).
            ``(B) Chapter 11 of title 18, United States Code 
        (relating to conflicts of interest).
    ``(2)(A) With respect to voluntary services under paragraph 
(1) provided by an individual that are within the scope of the 
services accepted under that paragraph, the individual shall be 
deemed to be a volunteer of a governmental entity or nonprofit 
institution for purposes of the Volunteer Protection Act of 
1997 (42 U.S.C. 14501 et seq.).
    ``(B) In the case of any claim against such an individual 
with respect to the provision of such services, section 4(d) of 
such Act (42 U.S.C. 14503(d)) shall not apply.
    ``(3) Acceptance of voluntary services under this section 
shall have no bearing on the issuance or renewal of a security 
clearance.
    ``(e) Reimbursement of Incidental Expenses.--(1) The head 
of a covered element of the intelligence community may 
reimburse an individual for incidental expenses incurred by the 
individual in providing voluntary services under subsection 
(a). The head of a covered element of the intelligence 
community shall determine which expenses are eligible for 
reimbursement under this subsection.
    ``(2) Reimbursement under paragraph (1) may be made from 
appropriated or nonappropriated funds.
    ``(f) Authority To Install Equipment.--(1) The head of a 
covered element of the intelligence community may install 
telephone lines and any necessary telecommunication equipment 
in the private residences of individuals who provide voluntary 
services under subsection (a).
    ``(2) The head of a covered element of the intelligence 
community may pay the charges incurred for the use of equipment 
installed under paragraph (1) for authorized purposes.
    ``(3) Notwithstanding section 1348 of title 31, United 
States Code, the head of a covered element of the intelligence 
community may use appropriated funds or nonappropriated funds 
of the element in carrying out this subsection.

                             ``REGULATIONS

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

                             ``DEFINITIONS

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

             ``Subtitle C--Additional Education Provisions

 ``ASSIGNMENT OF INTELLIGENCE COMMUNITY PERSONNEL AS LANGUAGE STUDENTS

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

                  ``Subtitle A--Science and Technology

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

                 ``Subtitle B--Foreign Languages Program

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

              ``Subtitle C--Additional Education Provisions

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

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

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

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

    (a) Report.--Not later than June 1, 2005, the Director of 
National Intelligence shall submit to Congress a report setting 
forth--
            (1) the status of each intelligence education 
        program, including the statutory, regulatory, or 
        administrative authority under which such program is 
        carried out; and
            (2) such recommendations as the Director considers 
        appropriate for legislative or administrative action to 
        consolidate, enhance the coordination of, or otherwise 
        improve such intelligence education programs.
    (b) Intelligence Education Program Defined.--In this 
section, the term ``intelligence education program'' means any 
grant, scholarship, education, or similar program (whether 
authorized by statute, regulation, or administrative order) 
that--
            (1) is supported, funded, or carried out by a 
        department, agency, or element of the intelligence 
        community; or
            (2) is otherwise intended to aid in the 
        recruitment, retention, or training of intelligence 
        community personnel.

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

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

                      TITLE VII--TERRORISM MATTERS

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

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

                       TITLE VIII--OTHER MATTERS

SEC. 801. EFFECTIVE DATE.

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

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

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

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

    (a) Head of Intelligence Community.--(1) During the period 
beginning on the date of the enactment of this Act and ending 
on the date of the appointment of the Director of National 
Intelligence under section 102 of the National Security Act of 
1947, as amended by section 1011(a) of the National Security 
Intelligence Reform Act of 2004, the Director of Central 
Intelligence may, acting as the head of the intelligence 
community, discharge the functions and authorities provided in 
this Act, and the amendments made by this Act, to the Director 
of National Intelligence.
    (2) During the period referred to in paragraph (1) any 
reference in this Act or the amendments made by this Act to the 
Director of National Intelligence shall be considered to be a 
reference to the Director of Central Intelligence, as the head 
of the intelligence community.
    (3) Upon the appointment of an individual as Director of 
National Intelligence under section 102 of the National 
Security Act of 1947, as so amended, any reference in this Act, 
or in the classified annex to accompany this Act, to the 
Director of Central Intelligence as head of the intelligence 
community shall be deemed to be a reference to the Director of 
National Intelligence.
    (b) Head of Central Intelligence Agency.--(1) During the 
period beginning on the date of the enactment of this Act and 
ending on the date of the appointment of the Director of the 
Central Intelligence Agency under section 104A of the National 
Security Act of 1947, as amended by section 1011(a) of the 
National Security Intelligence Reform Act of 2004, the Director 
of Central Intelligence may, acting as the head of the Central 
Intelligence Agency, discharge the functions and authorities 
provided in this Act, and the amendments made by this Act, to 
the Director of the Central Intelligence Agency.
    (2) Upon the appointment of an individual as Director of 
the Central Intelligence Agency under section 104A of the 
National Security Act of 1947, as so amended, any reference in 
this Act, or in the classified annex to accompany this Act, to 
the Director of Central Intelligence as head of the Central 
Intelligence Agency shall be deemed to be a reference to the 
Director of the Central Intelligence Agency.
    And the Senate agree to the same.

                From the Permanent Select Committee on 
                Intelligence, for consideration of the House 
                bill and the Senate amendment, and 
                modifications committed to conference:
                                   Pete Hoekstra,
                                   Sherwood Boehlert,
                                   Jim Gibbons,
                                   Ray LaHood,
                                   Randy ``Duke'' Cunningham,
                                   Richard Burr,
                                   Terry Everett,
                                   Elton Gallegly,
                                   Mac Collins,
                                   Jo Ann Davis,
                                   Mac Thornberry,
                                   Jane Harman,
                                   Alcee L. Hastings,
                                   Silvestre Reyes,
                                   Leonard L. Boswell,
                                   Collin C. Peterson,
                                   Bud Cramer,
                                   Anna Eshoo,
                                   Rush Holt,
                                   C.A. Dutch Ruppersberger,
                From the Committee on Armed Services, for 
                consideration of defense tactical intelligence 
                and related activities:
                                   Duncan Hunter,
                                   Curt Weldon,
                                   Ike Skelton,
                                 Managers on the Part of the House.

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

      The managers on the part of the Senate and House at the 
conference on the disagreeing votes of the two Houses on the 
amendment of the Senate to the bill (H.R. 4548), to authorize 
appropriations for fiscal year 2005 for intelligence and 
intelligence-related activities of the United States 
Government, the Community Management Account, and the Central 
Intelligence Agency Retirement and Disability System, and for 
other purposes, submit the following joint statement to the 
Senate and House in explanation of the effect of the action 
agreed upon by the managers and recommended in the accompanying 
conference report.
      The managers agree that the congressionally directed 
actions described in the House bill, the Senate amendment, the 
respective committee reports, and classified annexes 
accompanying H.R. 4548 and S. 2386, shall be undertaken to the 
extent that such congressionally directed actions are not 
amended, altered, substituted, or otherwise specifically 
addressed in either this Joint Explanatory Statement or in the 
classified annex to the conference report on the bill H.R. 
4548.
      The Senate amendment struck all of the House bill's text 
after the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the Conferees, and minor drafting and clarifying 
changes.

                    TITLE I--INTELLIGENCE ACTIVITIES

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

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

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

                     TITLE III--GENERAL PROVISIONS

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

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

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

          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

Sec. 501. National Security Agency emerging technologies panel
      Section 501 amends the National Security Agency Act of 
1959 to establish the National Security Agency Emerging 
Technologies Panel and exempts it from the Federal Advisory 
Committee Act. The Senate bill had no similar provision. The 
Senate recedes.
Sec. 502. Use of funds for counterdrug and counterterrorism activities 
        for Colombia
      Section 502 allows funds available for intelligence and 
intelligence-related activities to be used to support a unified 
campaign against drug traffickers and terrorist organizations 
in Colombia. The House bill had no similar provision. The House 
recedes with amendments.

                          TITLE VI--EDUCATION

            Subtitle A--National Security Education Program

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

  Subtitle B--Improvement in Intelligence Community Foreign Language 
                                 Skills

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

                      TITLE VII--TERRORISM MATTERS

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

                       TITLE VIII--OTHER MATTERS

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

                            General Matters

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

                From the Permanent Select Commission on 
                Intelligence, for consideration of the House 
                bill and the Senate amendment, and 
                modifications committed to conference.
                                   Pete Hoekstra,
                                   Sherwood Boehlert,
                                   Jim Gibbons,
                                   Ray LaHood,
                                   Randy ``Duke'' Cunningham,
                                   Richard Burr,
                                   Terry Everett,
                                   Elton Gallegly,
                                   Mac Collins,
                                   JoAnn Davis,
                                   Mac Thornberry,
                                   Jane Harman,
                                   Alcee L. Hastings,
                                   Silvestre Reyes,
                                   Leonard L. Boswell,
                                   Collin C. Peterson,
                                   Bud Cramer,
                                   Anna Eshoo,
                                   Rush Holt,
                                   C.A. Dutch Ruppersberger,
                From the Committee on Armed Services, for 
                consideration of defense tactical intelligence 
                and related activities:
                                   Duncan Hunter,
                                   Curt Weldon,
                                   Ike Skelton,
                                 Managers on the Part of the House.

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

                                  
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