[Senate Report 110-92]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 222
110th Congress                                                   Report
                                 SENATE
 1st Session                                                     110-92
======================================================================
 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2008

                                _______
                                

                 June 26, 2007.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1538]

    The Committee on Armed Services, to which was referred the 
bill (S. 1538) to authorize appropriations for fiscal year 2008 
for the intelligence and intelligence-related activities of the 
United States Government, the Intelligence Community Management 
Account, and the Central Intelligence Agency Retirement and 
Disability System, and for other purposes, having considered 
the same, reports favorably thereon with amendments and 
recommends that the bill, as amended, do pass.

                          Purpose of the Bill

    S. 1538 would authorize appropriations and other matters 
for fiscal year 2008 for intelligence activities of the United 
States, including certain Department of Defense intelligence-
related activities within the jurisdiction of the Committee on 
Armed Services.
    The Senate Select Committee on Intelligence reported the 
bill on May 31, 2007, and it was referred to the Committee on 
Armed Services on June 4, 2007, in accordance with section 3(b) 
of Senate Resolution 400, 94th Congress, as amended by S. Res. 
445, 108th Congress, for a period not to exceed 10 days of 
session. On June 15, 2007, the referral was extended for an 
additional five days of session in accordance with S. Res. 400, 
as amended.

                     Scope of the Committee Review

    The committee has carefully reviewed the Intelligence 
Authorization Act for Fiscal Year 2008 and the Senate report 
accompanying S. 1538 (S. Rept. 110-75). The total amount within 
the jurisdiction of the Committee on Armed Services recommended 
for the National Intelligence Program by the Senate Select 
Committee on Intelligence in S. 1538, as referred to the 
Committee on Armed Services, has been incorporated into the 
budget tables of the National Defense Authorization Act for 
Fiscal Year 2008, as reported by the Committee on Armed 
Services (S. 1547). Amendments to the funding levels for 
programs and activities within the National Intelligence 
Program recommended by the Committee on Armed Services, if 
approved by the Senate, will be reflected in the tables pending 
conference on the National Defense Authorization Act for Fiscal 
Year 2008.
    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 AND SENSITIVE ANNEX TO THE COMMITTEE REPORT

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

Section 102. Classified schedule of authorizations

    Section 102 of S. 1538 would incorporate by reference the 
classified schedule of authorizations in the classified annex 
to the Intelligence Committee report (S. Rept. 110-75) for 
funding of national intelligence programs and activities. The 
Committee on Armed Services recommends minor funding 
adjustments to the classified annex to the Intelligence 
Committee report. Explanations of the committee's recommended 
changes are contained in the classified annex accompanying this 
report.

Section 310. Director of National Intelligence report on compliance 
        with the Detainee Treatment Act of 2005 and related provisions 
        of the Military Commissions Act of 2006

    Section 310 of S. 1538 would require the Director of 
National Intelligence (DNI) to submit a comprehensive report on 
all measures taken by the Office of the DNI, and by all 
components of the intelligence community, to comply with the 
provisions of the Detainee Treatment Act of 2005 and related 
provisions of the Military Commissions Act of 2006.
    Section 310 would direct that this report be submitted only 
to the congressional intelligence committees. The Committee on 
Armed Services believes that this report should be submitted to 
all appropriate committees of the Congress, and recommends an 
amendment to effect this change.

Section 403. Modification of limitation on delegation by the Director 
        of National Intelligence of the protection of intelligence 
        sources and methods

    Section 403 of S. 1538 would undo a significant limitation 
imposed by the Intelligence Reform and Terrorist Prevention Act 
(IRTPA) of 2004. Congress, in IRTPA, intended to force the DNI 
to control the classification of information and to prevent the 
delegation of that control back to the heads of the 
intelligence agencies and components. Congress was intent on 
this reform to eliminate a major impediment to information 
sharing. All of the components of the intelligence community, 
but especially the collection agencies, tend to hoard the 
information in their possession, and have used the authority to 
protect ``sources and methods'' as a primary means to control 
the distribution of, and access to, intelligence information. 
IRTPA recognized this, and so limited the DNI's ability to 
delegate the authority to protect sources and methods and to 
classify information to the Principal Deputy DNI.
    The DNI's office for some time apparently has sought a 
relaxation of this limitation. Just a year ago, however, the 
Senate Select Committee on Intelligence, in the Intelligence 
Authorization Act for Fiscal Year 2007, S. 372, proposed only 
to allow delegation to the Deputy Directors of National 
Intelligence and the Chief Information Officer. This proposed 
delegation at least remained consistent with the concept of 
keeping the protection of sources and methods out of the hands 
of the operating components of the community and within the 
Office of the DNI.
    The Committee on Armed Services fears that section 403 of 
S. 1538, as reported, would be a step backward, and could cause 
substantial harm to the DNI's efforts to improve information 
sharing and access. The committee recommends an amendment to 
section 403 that would limit delegation to the Deputy Directors 
of National Intelligence and the Chief Information Officer.

Section 410. Inspector General of the Intelligence Community

    Section 410 of S. 1803 would authorize an Inspector General 
of the Intelligence Community. This provision would replace the 
Inspector General of the Office of the Director of National 
Intelligence as authorized by section 1078 of the Intelligence 
Reform and Terrorism Prevention Act of 2004 (Public Law 108-
458) with an Inspector General of the Intelligence Community.
    The committee recommends several amendments that would: (1) 
ensure that the Secretary of Defense and the Director of 
National Intelligence stand on equal footing in resolving any 
disputes between the new Inspector General of the Intelligence 
Community and a DOD Inspector General; and (2) ensure that 
reports of the Inspector General of the Intelligence Community 
regarding elements of the intelligence community within the 
Department of Defense are provided both to the Director of 
National Intelligence and the Secretary of Defense, and that 
portions of reports involving components of the Department of 
Defense are reported to both the congressional intelligence 
committees and Armed Services Committees.
    The committee amendment would establish an appropriate 
balance between the Department of Defense Inspector General and 
the Inspector General of the Intelligence Community and ensure 
compliance with the statutory requirement that the Secretary of 
Defense has authority, direction, and control over all 
activities of the Department of Defense as required by section 
113 of title 10, United States Code.

   ASSIGNMENT OF SENIOR EXECUTIVE SERVICE OFFICER OR GENERAL OR FLAG 
        OFFICER TO THE ARMED FORCES MEDICAL INTELLIGENCE CENTER

    The Committee notes that S. Rept. 110-75 accompanying S. 
1538 requests that the Under Secretary of Defense for 
Intelligence, the Director of the Defense Intelligence Agency, 
and the Director of National Intelligence develop a plan for 
installing a senior executive service officer or a military 
officer of flag rank to lead the Armed Forces Medical 
Intelligence Center and report to the congressional oversight 
committees by September 1, 2007.
    However, before such a plan is developed, the Committee on 
Armed Services directs the Secretary of Defense to conduct an 
analysis to determine whether the scope of responsibilities and 
functions of this position support assignment of a senior 
executive or general or flag officer and to submit a report on 
this analysis to the congressional oversight committees no 
later than August 15, 2007.

                            Committee Action

    In accordance with the Legislative Reorganization Act of 
1946, as amended by the Legislative Reorganization Act of 1970, 
there is set forth below the committee vote to report the 
Intelligence Authorization Act for Fiscal Year 2008.
    Vote: Adopted by a voice vote.

                           Estimate of Costs

    Pursuant to paragraph 11(a)(3) of rule XXVI of the Standing 
Rules of the Senate, the committee deems it impractical to 
include an estimate of the costs incurred in carrying out the 
provisions of this report due to the classified nature of the 
operations conducted pursuant to this legislation. The 
committee will publish in the Congressional Record information 
on 5-year cost projections when such information is received 
from the Congressional Budget Office.

                    Evaluation of 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. 1538, the 
Intelligence Authorization Act for Fiscal Year 2008.

                        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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