[Senate Report 108-300]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 619
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-300

======================================================================
 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2005

                                _______
                                

                  July 8, 2004.--Ordered to be printed

                                _______
                                

    Mr. Warner, from the Committee on Armed Services, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 2386]

    The Committee on Armed Services, to which was referred the 
bill (S. 2386) to authorize appropriations for fiscal year 2005 
for intelligence and intelligence-related activities of the 
United States Government, the Community Management Account of 
the Director of Central Intelligence, and the Central 
Intelligence Agency Retirement and Disability System, and for 
other purposes, having considered the same, reports favorably 
thereon with amendments and recommends that the bill as amended 
do pass.

                          PURPOSE OF THE BILL

    S. 2386 would authorize appropriations and other matters 
for fiscal year 2005 for intelligence activities of the Unites 
States, including certain Department of Defense intelligence-
related activities within the jurisdiction of the Senate Armed 
Services Committee.
    The Senate Select Committee on Intelligence reported the 
bill on May 5, 2004, and it was referred to the Committee on 
Armed Services on May 7, 2004, in accordance with section 3(b) 
of Senate Resolution 400, 94th Congress.

                     SCOPE OF THE COMMITTEE REVIEW

    The committee has carefully reviewed the Intelligence 
Authorization Act for Fiscal Year 2005 and the Senate report to 
accompany S. 2386 (S. Rept. 108-258). The total amount within 
the jurisdiction of the Committee on Armed Services recommended 
for the National Foreign Intelligence Program has been 
incorporated into the budget tables in the Senate Amendment to 
H.R. 4200, the National Defense Authorization Act for Fiscal 
Year 2005, which the Senate passed on June 23, 2004.
    The following explains the committee's proposed amendments 
to the bill, as reported by the Senate Select Committee on 
Intelligence, as well as the committee's clarification to the 
report issued by the Senate Select Committee on Intelligence.

Classified annex to the committee report

    The committee has prepared a classified annex to this 
report that describes other recommendations and concerns that 
are classified in nature.

Preparation and submission of reports, reviews, studies, and plans 
        relating to intelligence activities of Department of Defense 
        and Department of Energy

    S. 2386, the accompanying report (S. Rept. 108-258), and 
the classified annex thereto, include many requirements for 
reports, reviews, studies, and plans requiring the sole or 
joint participation of defense intelligence activities. The 
committee believes that any such requirements levied on the 
Director of Central Intelligence or other elements of the 
Intelligence Community that involve intelligence or 
intelligence-related activities of the Department of Defense 
and Department of Energy must be conducted in consultation with 
the Secretary of Defense and the Secretary of Energy. Any 
reports, reviews, studies, or plans that concern intelligence 
activities of these Departments should be submitted to the 
Committees on Armed Services and Defense Subcommittees on 
Appropriations of the Senate and the House of Representatives, 
in addition to the respective intelligence committees. The 
committee's proposed amendment would add a section to title I, 
S. 2386, to require appropriate consultation with the 
Departments of Defense and Energy, and direct distribution of 
related reports, reviews, studies, and plans to the appropriate 
committees of jurisdiction.

Repeal of limitation on length of service as member of the Select 
        Committee on Intelligence of the Senate

    Section 306 of S. 2386 would repeal the eight-year limit on 
continuous service on the Select Committee on Intelligence. The 
term limit was included in Senate Resolution 400, dated May 19, 
1976, which established the Select Committee on Intelligence 
(SSCI). The committee concurs in the need to periodically 
review Senate rules in the light of evolving oversight 
requirements.However, the committee believes any changes to the 
legislation governing the rules and procedures of the SSCI should more 
appropriately be made, after careful consideration by all relevant 
committees and the full Senate, by amending the original Senate 
Resolution 400. Such an important change to the traditional practices 
of the Senate should not be made as a provision of a larger 
authorization bill that is subject to review by a committee of 
conference of the Senate and House of Representatives. The Members of 
the Committee on Armed Services, separately and collectively, reserve 
the right to submit an amendment related to this provision during 
consideration of S. 2386 on the Senate floor.

Repeal of sunset on authority to engage in commercial activities as 
        security for intelligence collection activities

    Section 501 of S. 2386 would amend section 231(a) of title 
10, United States Code, to make permanent the authority of the 
Secretary of Defense to engage in commercial activities as 
security for authorized intelligence collection activities 
abroad. Section 1062 of the Senate amendment to H.R. 4200 
contains a similar provision that would extend this authority 
for two years. Current authority expires on December 31, 2004 
and should be continued, especially in light of current 
military requirements around the world. The Department of 
Defense did not include a request for extension of this 
authority in their legislative recommendations for fiscal year 
2005. The committee believes that additional consultation with 
the Department is necessary before permanent authority should 
be granted. The committee's proposed amendment would strike 
Section 501, S. 2386. This provision will be addressed by the 
committee of conference on the National Defense Authorization 
Act for Fiscal Year 2005.

                            COMMITTEE ACTION

    In accordance with the Legislative Reorganization Act of 
1946, as amended by the Legislative Reorganization Act of 1970, 
the committee approved a motion to report favorably to the 
Senate S. 2386, with an amendment.

                              FISCAL DATA

    The committee will publish in the Congressional Record 
information on five-year cost projections when such information 
is received from the Congressional Budget Office.

                           REGULATORY IMPACT

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires that a report on the regulatory impact of a 
bill be included in the report on the bill. The committee finds 
that there is no regulatory impact in the cost of S. 2386, the 
Intelligence Authorization Act for Fiscal Year 2005.

                        CHANGES IN EXISTING LAW

    Pursuant to the provisions of paragraph 12 of rule XXVI of 
the Standing Rules of the Senate, the changes in existing law 
made by certain portions of the bill have not been shown in 
this section of the report because, in the opinion of the 
committee, it is necessary to dispense with showing such 
changes in order to expedite the business of the Senate and 
reduce the expenditure of funds.

                                  
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