[House Report 112-197]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-197

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



 
                  INTELLIGENCE AUTHORIZATION ACT FOR 
                            FISCAL YEAR 2012

                                _______
                                

 September 2, 2011.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Rogers of Michigan, from the Permanent Select Committee on 
                 Intelligence, submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1892]

      [Including cost estimate of the Congressional Budget Office]

    The Permanent Select Committee on Intelligence, to whom was 
referred the bill (H.R. 1892) to authorize appropriations for 
fiscal year 2012 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 considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Intelligence 
Authorization Act for Fiscal Year 2012''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Intelligence Community Management Account.

 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. Annual report on hiring of National Security Education 
Program participants.

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

                Subtitle A--Central Intelligence Agency

Sec. 401. Burial allowance.
Sec. 402. Solicitation of gifts.
Sec. 403. Acceptance of gifts, devises, and bequests.
Sec. 404. Creating an official record of the Osama bin Laden operation.

                       Subtitle B--Other Elements

Sec. 411. Codification of Office of Intelligence and Analysis of the 
Department of Homeland Security as element of the intelligence 
community.
Sec. 412. Report and strategic plan on drug trafficking organizations 
and impact on public lands.
Sec. 413. Report on training standards of defense intelligence 
workforce.

                         TITLE V--OTHER MATTERS

Sec. 501. Report on airspace restrictions for use of unmanned aerial 
vehicles along the border of the United States and Mexico.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Congressional intelligence committees.--The term 
        ``congressional intelligence committees'' means--
                  (A) the Select Committee on Intelligence of the 
                Senate; and
                  (B) the Permanent Select Committee on Intelligence of 
                the House of Representatives.
          (2) Intelligence community.--The term ``intelligence 
        community'' has the meaning given that term in section 3(4) of 
        the National Security Act of 1947 (50 U.S.C. 401a(4)).

                    TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

  Funds are hereby authorized to be appropriated for fiscal year 2012 
for the conduct of the intelligence and intelligence-related activities 
of the following elements of the United States Government:
          (1) The Office of the Director of National Intelligence.
          (2) The Central Intelligence Agency.
          (3) The Department of Defense.
          (4) The Defense Intelligence Agency.
          (5) The National Security Agency.
          (6) The Department of the Army, the Department of the Navy, 
        and the Department of the Air Force.
          (7) The Coast Guard.
          (8) The Department of State.
          (9) The Department of the Treasury.
          (10) The Department of Energy.
          (11) The Department of Justice.
          (12) The Federal Bureau of Investigation.
          (13) The Drug Enforcement Administration.
          (14) The National Reconnaissance Office.
          (15) The National Geospatial-Intelligence Agency.
          (16) The Department of Homeland Security.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

  (a) Specifications of Amounts and Personnel Levels.--The amounts 
authorized to be appropriated under section 101 and, subject to section 
103, the authorized personnel ceilings as of September 30, 2012, for 
the conduct of the intelligence activities of the elements listed in 
paragraphs (1) through (16) of section 101, are those specified in the 
classified Schedule of Authorizations prepared to accompany the bill 
H.R. 1892 of the One Hundred Twelfth Congress.
  (b) Availability of Classified Schedule of Authorizations.--
          (1) Availability to committees of congress.--The classified 
        Schedule of Authorizations referred to in subsection (a) shall 
        be made available to the Committee on Appropriations of the 
        Senate, the Committee on Appropriations of the House of 
        Representatives, and to the President.
          (2) Distribution by the president.--Subject to paragraph (3), 
        the President shall provide for suitable distribution of the 
        classified Schedule of Authorizations, or of appropriate 
        portions of the Schedule, within the executive branch.
          (3) Limits on disclosure.--In carrying out paragraph (2), the 
        President may disclose only that budget-related information 
        necessary to execute the classified Schedule of Authorizations 
        and shall not disclose the Schedule or any portion of the 
        Schedule publicly.

SEC. 103. 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 2012 the sum of 
$590,339,000. 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, 
2013.
  (b) Authorized Personnel Levels.--The elements within the 
Intelligence Community Management Account of the Director of National 
Intelligence are authorized 794 full-time or full-time equivalent 
personnel as of September 30, 2012. Personnel serving in such elements 
may be permanent employees of the Office of the Director of National 
Intelligence or personnel detailed from other elements of the United 
States Government.
  (c) Classified Authorizations.--
          (1) Authorization of appropriations.--In addition to amounts 
        authorized to be appropriated for the Intelligence Community 
        Management Account by subsection (a), there are authorized to 
        be appropriated for the Community Management Account for fiscal 
        year 2012 such additional amounts as are specified in the 
        classified Schedule of Authorizations referred to in section 
        102(a). Such additional amounts for advanced research and 
        development shall remain available until September 30, 2013.
          (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, 2012, there 
        are authorized such additional personnel for the Community 
        Management Account as of that date as are specified in the 
        classified Schedule of Authorizations referred to in section 
        102(a).

 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 2012 the sum of 
$514,000,000.

                     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. ANNUAL REPORT ON HIRING OF NATIONAL SECURITY EDUCATION 
                    PROGRAM PARTICIPANTS.

  (a) Report.--Subtitle C of title X of the National Security Act of 
1947 (50 U.S.C. 401 et seq.) is amended by adding at the end the 
following new section:
   ``annual report on hiring of national security education program 
                              participants
  ``Sec. 1025. Not later than 90 days after the end of each fiscal 
year, the head of each element of the intelligence community shall 
submit to the congressional intelligence committees a report, which may 
be in classified form, containing the number of personnel hired by such 
element during such fiscal year that were at any time a recipient of a 
grant or scholarship under the David L. Boren National Security 
Education Act of 1991 (50 U.S.C. 1901 et seq.).''.
  (b) Table of Contents Amendment.--The table of contents in the first 
section of such Act is amended by inserting after the item relating to 
section 1024 the following new item:

``Sec. 1025. Annual report on hiring of National Security Education 
Program participants.''.

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

                Subtitle A--Central Intelligence Agency

SEC. 401. BURIAL ALLOWANCE.

  (a) In General.--Section 11 of the Central Intelligence Agency Act of 
1949 (50 U.S.C. 403k) is amended--
          (1) in the heading, by inserting ``and burial allowance'' 
        after ``gratuities''; and
          (2) by adding at the end the following new subsection:
  ``(c)(1) At the request of a representative of the estate of any 
officer or employee of the Agency (as determined in accordance with the 
laws of a State) who dies in a manner described in subsection (a)(1), 
the Director may pay to such estate a burial allowance.
  ``(2) A burial allowance paid under paragraph (1) may be used to 
cover burial expenses, including recovery, mortuary, funeral or 
memorial service, cremation, burial costs, and costs of transportation 
by common carrier to the place selected for final disposition of the 
deceased.
  ``(3) Each payment made under this subsection shall be--
          ``(A) in an amount not greater than $15,000 plus the actual 
        costs of transportation referred to in paragraph (2); and
          ``(B) in addition to any other benefit that may be due under 
        any other provision of law.
  ``(4) The Director may annually increase the amount in paragraph 
(3)(A) to reflect any increase in the Consumer Price Index occurring 
during the preceding year.
  ``(5) The Director may pay the burial benefit authorized under this 
subsection more than once for funeral, memorial, or burial expenses 
stemming from a single death of an officer or employee of the Agency if 
the remains of such officer or employee were not recovered, were 
recovered after considerable delay, or were not recovered intact.''.
  (b) Effective Date of Authority to Increase Allowance.--Section 
11(c)(4) of the Central Intelligence Agency Act of 1949, as added by 
subsection (a), shall take effect on the date that is one year after 
the date of the enactment of this Act.

SEC. 402. SOLICITATION OF GIFTS.

  Section 12(a) of the Central Intelligence Agency Act of 1949 (50 
U.S.C. 403l(a)) is amended--
          (1) in the first sentence--
                  (A) by striking ``Subject'' and inserting ``(1) 
                Subject''; and
                  (B) by striking ``may accept'' and inserting ``may 
                solicit, accept'';
          (2) in the second sentence--
                  (A) by striking ``general''; and
                  (B) by striking ``employees or dependents of 
                employees of the Agency'' and inserting ``employees of 
                the Agency, dependents of employees of the Agency, or 
                survivors of deceased employees of the Agency who died 
                in a manner described in section 11(a)(1)''; and
          (3) by adding at the end the following new paragraph:
  ``(2) The Director shall issue regulations to carry out the authority 
to solicit gifts under paragraph (1). Such regulations shall ensure 
that any solicitation is consistent with all relevant ethical 
constraints and principles, including the avoidance of any prohibited 
conflict of interest or appearance of impropriety.''.

SEC. 403. ACCEPTANCE OF GIFTS, DEVISES, AND BEQUESTS.

  Section 12 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
403l) is amended by adding at the end the following new subsection:
  ``(f)(1) Subject to limitations established by the Director, a 
covered employee may accept a gift from a source other than a foreign 
government or an agent of a foreign government.
  ``(2) The Director shall issue regulations to carry out this 
subsection. Such regulations shall address any potential 
counterintelligence concerns with generally accepting gifts under this 
subsection and prior to the acceptance of any individual gift.
  ``(3) In this subsection, the term `covered employee' means an 
employee of the Agency who suffered an injury or illness that--
          ``(A) resulted from hostile or terrorist activities; or
          ``(B) occurred under other circumstances determined by the 
        Director to be analogous to subparagraph (A).''.

SEC. 404. CREATING AN OFFICIAL RECORD OF THE OSAMA BIN LADEN OPERATION.

  (a) Findings.--The Congress finds the following:
          (1) On May 1, 2011, United States personnel killed terrorist 
        leader Osama bin Laden during the course of a targeted strike 
        against his secret compound in Abbottabad, Pakistan.
          (2) Osama bin Laden was the leader of the al Qaeda terrorist 
        organization, the most significant terrorism threat to the 
        United States and the international community.
          (3) Osama bin Laden was the architect of terrorist attacks 
        which killed nearly 3,000 civilians on September 11, 2001, the 
        most deadly terrorist attack against our Nation, in which al 
        Qaeda terrorists hijacked four airplanes and crashed them into 
        the World Trade Center in New York City, the Pentagon in 
        Washington, D.C., and, due to heroic efforts by civilian 
        passengers to disrupt the terrorists, near Shanksville, 
        Pennsylvania.
          (4) Osama bin Laden planned or supported numerous other 
        deadly terrorist attacks against the United States and its 
        allies, including the 1998 bombings of United States embassies 
        in Kenya and Tanzania and the 2000 attack on the U.S.S. Cole in 
        Yemen, and against innocent civilians in countries around the 
        world, including the 2004 attack on commuter trains in Madrid, 
        Spain and the 2005 bombings of the mass transit system in 
        London, England.
          (5) Following the September 11, 2001, terrorist attacks, the 
        United States, under President George W. Bush, led an 
        international coalition into Afghanistan to dismantle al Qaeda, 
        deny them a safe haven in Afghanistan and ungoverned areas 
        along the Pakistani border, and bring Osama bin Laden to 
        justice.
          (6) President Barack Obama in 2009 committed additional 
        forces and resources to efforts in Afghanistan and Pakistan as 
        ``the central front in our enduring struggle against terrorism 
        and extremism''.
          (7) The valiant members of the United States Armed Forces 
        have courageously and vigorously pursued al Qaeda and its 
        affiliates in Afghanistan and around the world.
          (8) The anonymous, unsung heroes of the intelligence 
        community have pursued al Qaeda and affiliates in Afghanistan, 
        Pakistan, and around the world with tremendous dedication, 
        sacrifice, and professionalism.
          (9) The close collaboration between the Armed Forces and the 
        intelligence community prompted the Director of National 
        Intelligence, General James Clapper, to state, ``Never have I 
        seen a more remarkable example of focused integration, seamless 
        collaboration, and sheer professional magnificence as was 
        demonstrated by the Intelligence Community in the ultimate 
        demise of Osama bin Laden.''.
          (10) While the death of Osama bin Laden represents a 
        significant blow to the al Qaeda organization and its 
        affiliates and to terrorist organizations around the world, 
        terrorism remains a critical threat to United States national 
        security.
          (11) President Obama said, ``For over two decades, bin Laden 
        has been al Qaeda's leader and symbol, and has continued to 
        plot attacks against our country and our friends and allies. 
        The death of bin Laden marks the most significant achievement 
        to date in our Nation's effort to defeat al Qaeda.''.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) the raid that killed Osama bin Laden demonstrated the 
        best of the intelligence communities capabilities and teamwork;
          (2) for years to come, Americans will look back at this event 
        as a defining point in the history of the United States;
          (3) it is vitally important that the United States 
        memorialize all the events that led to the raid so that future 
        generations will have an official record of the events that 
        transpired before, during, and as a result of the operation; 
        and
          (4) preserving this history now will allow the United States 
        to have an accurate account of the events while those that 
        participated in the events are still serving in the Government.
  (c) Report on the Operation That Killed Osama Bin Laden.--Not later 
than one year after the date of the enactment of this Act, the Director 
of the Central Intelligence Agency, in consultation with other agencies 
and entities involved in the operation that killed Osama bin Laden, 
shall submit to the congressional intelligence committees a classified 
report that memorializes such operation including a description of the 
events leading up to the discovery of the location of Osama bin Laden, 
the planning and execution of the raid, and the results of the 
intelligence gained from the raid.
  (d) Preservation of Records.--The Director of the Central 
Intelligence Agency shall preserve any records, including intelligence 
information and assessments, used to generate the report described in 
subsection (c).

                       Subtitle B--Other Elements

SEC. 411. CODIFICATION OF OFFICE OF INTELLIGENCE AND ANALYSIS OF THE 
                    DEPARTMENT OF HOMELAND SECURITY AS ELEMENT OF THE 
                    INTELLIGENCE COMMUNITY.

  Section 3(4)(K) of the National Security Act of 1947 (50 U.S.C. 
401a(4)(K)) is amended to read as follows:
                  ``(K) The Office of Intelligence and Analysis of the 
                Department of Homeland Security.''.

SEC. 412. REPORT AND STRATEGIC PLAN ON DRUG TRAFFICKING ORGANIZATIONS 
                    AND IMPACT ON PUBLIC LANDS.

  (a) Requirement for Report.--Not later than one year after the date 
of the enactment of this Act, the Director of National Intelligence 
shall submit to the congressional intelligence committees a report on--
          (1) the intelligence collection efforts of the United States 
        that assess the threat from covered entities that are currently 
        or have previously used public lands in the United States to 
        further their operations; and
          (2) efforts to protect public lands of the United States from 
        illegal drug grows.
  (b) Contents.--The report required by subsection (a) shall include 
the following:
          (1) An assessment of the intelligence collection efforts of 
        the United States dedicated to covered entities.
          (2) An assessment of any problems that may reduce the overall 
        effectiveness of United States intelligence collection and 
        analysis to identify and protect public lands from illegal drug 
        grows and other activities and threats of covered entities, 
        including--
                  (A) intelligence collection gaps or inefficiencies;
                  (B) information sharing practices in the intelligence 
                community and other agencies, including Federal land 
                management agencies; and
                  (C) cooperation among Federal departments or 
                agencies.
          (3) A strategic plan prepared by the Director of National 
        Intelligence that describes actions the appropriate elements of 
        the intelligence community can take to close intelligence gaps 
        related to covered entities, and the use by such entities of 
        public lands for illegal purposes, including threat assessments 
        from all Federal land management agencies.
          (4) A description of appropriate goals, schedules, 
        milestones, or metrics to measure the long-term effectiveness 
        of actions implemented to carry out the plan described in 
        paragraph (4).
  (c) Implementation of Strategic Plan.--Not later than 30 days after 
the date on which the Director of National Intelligence submits the 
report required by subsection (a), the Director shall begin 
implementation of the strategic plan described in subsection (b)(4).
  (d) Definitions.--In this section:
          (1) Covered entity.--The term ``covered entity'' means a drug 
        trafficking organization or other actor involved in drug 
        trafficking generally.
          (2) Federal land management agency.--The term ``Federal land 
        management agency'' includes--
                  (A) the Forest Service of the Department of 
                Agriculture;
                  (B) the Bureau of Land Management of the Department 
                of the Interior;
                  (C) the National Park Service of the Department of 
                the Interior;
                  (D) the Fish and Wildlife Service of the Department 
                of the Interior; and
                  (E) the Bureau of Reclamation of the Department of 
                the Interior.
          (3) Public lands.--The term ``public lands'' has the meaning 
        given that term in section 103 of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1702).

SEC. 413. REPORT ON TRAINING STANDARDS OF DEFENSE INTELLIGENCE 
                    WORKFORCE.

  (a) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Director of National Intelligence and the Under 
Secretary of Defense for Intelligence shall submit to the Permanent 
Select Committee on Intelligence and the Committee on Armed Services of 
the House of Representatives and the Select Committee on Intelligence 
and the Committee on Armed Services of the Senate a report on the 
training standards of the defense intelligence workforce. Such report 
shall include--
          (1) a description of existing training, education, and 
        professional development standards applied to personnel of 
        defense intelligence components; and
          (2) an assessment of the ability to implement a certification 
        program for personnel of the defense intelligence components 
        based on achievement of required training, education, and 
        professional development standards.
  (b) Definitions.--In this section:
          (1) Defense intelligence components.--The term ``defense 
        intelligence components'' means--
                  (A) the National Security Agency;
                  (B) the Defense Intelligence Agency;
                  (C) the National Geospatial-Intelligence Agency;
                  (D) the National Reconnaissance Office;
                  (E) the intelligence elements of the Army, the Navy, 
                the Air Force, and the Marine Corps; and
                  (F) other offices within the Department of Defense 
                for the collection of specialized national intelligence 
                through reconnaissance programs.
          (2) Defense intelligence workforce.--The term ``defense 
        intelligence workforce'' means the personnel of the defense 
        intelligence components.

                         TITLE V--OTHER MATTERS

SEC. 501. REPORT ON AIRSPACE RESTRICTIONS FOR USE OF UNMANNED AERIAL 
                    VEHICLES ALONG THE BORDER OF THE UNITED STATES AND 
                    MEXICO.

  Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Homeland Security shall submit to the congressional 
intelligence committees, the Committee on Homeland Security of the 
House of Representatives, and the Committee on Homeland Security and 
Governmental Affairs of the Senate a report on whether restrictions on 
the use of airspace are hampering the use of unmanned aerial vehicles 
by the Department of Homeland Security along the international border 
between the United States and Mexico.

                                Purpose

    The purpose of H.R. 1892 is to authorize the intelligence 
and intelligence-related activities of the United States 
Government for Fiscal Year 2012 in order to enhance the 
national security of the United States, to support and assist 
the armed forces of the United States, and to support the 
President in the execution of the foreign policy of the United 
States. The bill also clarifies certain Intelligence Community 
authorities.

                 Classified Annex and Committee Intent

    The classified annex to this report includes the classified 
Schedule of Authorizations and its associated explanatory 
language. The Committee views the classified annex as an 
integral part of this legislation. The classified annex 
contains a thorough discussion of the issues considered by the 
Committee underlying the funding authorizations found in the 
classified Schedule of Authorizations. The Committee intends 
that all intelligence programs discussed in the classified 
annex to this report be conducted in accordance with the 
guidance and limitations set forth as associated language 
therein.
    The classified Schedule of Authorizations is incorporated 
directly into this legislation by virtue of section 102 of the 
bill. The classified annex is available for review by all 
Members of the House of Representatives, subject to the 
requirements of clause 13 of rule XXIII of the Rules of the 
House of Representatives, and rule 14 of the Rules of Procedure 
for the House Permanent Select Committee on Intelligence.

                       Scope of Committee Review

    The bill authorizes U.S. intelligence and intelligence-
related activities within the jurisdiction of the Committee, 
including the National Intelligence Program (NIP), and the 
Military Intelligence Program (MIP). The NIP consists of all 
activities of the Office of the Director of National 
Intelligence, as well as those national foreign intelligence, 
intelligence-related, and/or counterintelligence activities 
conducted by: (1) the Central Intelligence Agency; (2) the 
Department of Defense; (3) the Defense Intelligence Agency; (4) 
the National Security Agency; (5) the National Reconnaissance 
Office; (6) the National Geospatial-Intelligence Agency; (7) 
the Departments of the Army, Navy, and Air Force; (8) the 
Department of State; (9) the Department of the Treasury; (10) 
the Department of Energy; (11) the Department of Justice; (12) 
the Federal Bureau of Investigation; (13) the U.S. Coast Guard; 
(14) the Department of Homeland Security; and (15) the Drug 
Enforcement Administration. The Committee has exclusive 
legislative, authorizing and oversight jurisdiction of these 
programs.

                     Committee Statement and Views

    Earlier this year, Congress passed and the President signed 
into law the Fiscal Year 2011 intelligence authorization bill--
the first intelligence authorization bill with specific funding 
authorities for our intelligence programs in six years. The 
bipartisan effort by the Majority and Minority in passing that 
bill is representative of a new era of oversight by the House 
Permanent Select Committee on Intelligence. The Fiscal Year 
2011 bill was a critical first step towards reasserting the 
Committee as a force for oversight over the Intelligence 
Community (IC) and providing the Community with consistent 
guidance and authorities. The Fiscal Year 2012 bill is a 
continuation of the Committee's effort to provide consistent 
oversight and necessary funding to the Intelligence Community 
in a time of greater financial restraint.
    The annual intelligence authorization bill funds all U.S. 
intelligence activities, spanning 16 separate agencies. It 
provides authorization for critical national security 
functions, including: CIA personnel and their activities 
worldwide; tactical intelligence support to combat units in 
Afghanistan and Iraq; NSA's electronic surveillance and cyber 
defense; global monitoring of foreign militaries, weapons 
tests, and arms control treaties, including use of satellites 
and radars; real-time analysis and reporting on political and 
economic events, such as current events in the Middle East and 
in the financial markets; and research and technology to 
maintain the country's technological edge, including work on 
code breaking, listening devices, and spy satellites.
    It is critically important that the FY 2012 bill moves 
forward to completion. For too many years the intelligence 
authorization bill negotiations became bogged down in the 
political infighting and turf battles and were pushed into the 
next fiscal year. The House succeeded in breaking the log-jam 
with the passage of the FY 2011 bill by working together in a 
bipartisan fashion, and the Committee continues to work 
together on the FY 2012 bill. Passing an FY 2012 bill is 
critical to our ongoing efforts to restore this Committee's 
relevance in the community, and even more critical to ensuring 
our intelligence agencies have the resources and the 
capabilities they need to keep us safe. Moreover, in today's 
challenging economic environment, it is even more important 
that the Committee conducts close oversight and scrutinizes 
whether every dollar authorized is necessary and is being used 
as intended by the Congress. This bill is the product of that 
close oversight and greater accountability for intelligence 
budgets in the classified annex.

Benefits for fallen or injured CIA employees

    This bill contains important legislative provisions to 
support CIA employees who may be killed or injured in the line 
of duty. The necessity of such provisions arose following the 
horrific bombing attack in Khowst, Afghanistan in December 
2009. After that incident, the Agency conducted a review of 
benefits available to the families of CIA personnel who were 
killed in the line of duty, as well as benefits available to 
those who were wounded in the attack.
    First, the review determined that the Agency was not 
allowed to grant more than $1,000 to the families of those who 
were lost, while funeral costs today run well in excess of this 
amount. The review also uncovered potential legal problems when 
several private entities offered assistance or gifts for 
wounded survivors during their recovery. While the Director may 
accept gifts for the general welfare of employees, current law 
does not permit individual employees, their dependents or the 
survivors of those killed to accept such gifts either directly 
or indirectly via the Director. Additionally, the review found 
that some activities conducted to benefit the families may be 
considered ``solicitation'' of a gift and the law was unclear 
on the issue of solicitation.
    The Agency pointed out to the Committee that chiefs of the 
military departments annually solicit service members to 
benefit the service relief societies. A 2001 Office of Legal 
Counsel Memorandum further noted that the Departments of State, 
Treasury, and Commerce regularly solicit gifts from outside 
entities. The same OLC opinion concluded that many other 
agencies that have legal authority to accept gifts, like the 
CIA has, can also solicit gifts under the same authority. OLC's 
interpretation was based on common practice that evolved well 
after the CIA provision was enacted and the notion that 
Congress reenacted a statute without change even in light of 
longstanding current practice and interpretation. Since the 
CIA's authority to accept gifts was passed in 1949, the CIA 
expressed concern that this was well before the practice and 
interpretation and the corresponding informed actions by 
Congress, necessitating a clarification in the law.
    Sections 401, 402 and 403 are intended to address these 
issues. Section 401 would provide an enhanced burial allowance 
of up to $15,000 for the families of those killed by hostile or 
terrorist activities or ``in connection with an intelligence 
activity having significant risk.'' The upper limit amount of 
$15,000 is intended to reflect actual costs of conducting a 
funeral and burial expenses, which CIA has estimated at between 
$12,000 and $15,000.
    Section 402 amends existing law giving the Director the 
authority to accept gifts for the general welfare of employees 
so that the Director may solicit gifts for the welfare of 
employees and dependents and also makes survivors of those 
killed in action part of the group eligible to benefit. This 
section also amends the Director's authority to accept gifts 
for the ``general welfare'' of employees to permit the Director 
to accept gifts for specific employees, dependents of employees 
and survivors of an employee who was killed by hostile or 
terrorist activities or ``in connection with an intelligence 
activity having significant risk.'' Section 403 amends current 
law to permit individual employees injured in hostile or 
terrorist activities to accept gifts subject to 
counterintelligence considerations.

Other Provisions

    This bill requires the Secretary of Homeland Security to 
report on whether restrictions on the use of airspace are 
hampering the use of unmanned aerial vehicles by the Department 
of Homeland Security along the U.S.-Mexico border. This 
provision arises from Committee oversight in Mexico and the 
Committee's intent is to have clarification about intelligence 
community equities concerning a larger issue with respect to 
the use of controls on air space that has caused concerns for 
several agencies.
    The bill also requires the Director of National 
Intelligence to conduct an assessment of intelligence 
collection efforts and prepare a strategic plan to address 
collection gaps and provide support to Federal land management 
agencies. The Committee is concerned that our Nation's public 
lands are under attack from sophisticated foreign Drug 
Trafficking Organizations (DTOs) that are using public 
resources to produce and then distribute large quantities of 
marijuana and other illegal narcotics domestically and abroad. 
The Committee is also concerned that the collection and 
dissemination of intelligence information pertaining to foreign 
DTOs who may be exploiting our public lands for illegal drug 
activity has been insufficient. Our goal is that this 
intelligence collection assessment and strategic plan will 
assist federal land management agencies in developing 
strategies to disrupt and dismantle DTOs, and in turn, 
strengthen our national security.
    We are about to mark the tenth anniversary of September 
11th. It is in large part due to the commitment and diligent 
efforts of the Intelligence Community that there has not been a 
successful large-scale attack on the homeland in the past ten 
years. Now more than ever the congressional intelligence 
committees need to exercise diligent oversight and consistently 
pass funding authorities for the Community.

               Committee Consideration and Rollcall Votes

    On May 26, 2011, the Committee met in open and closed 
session and ordered the bill H.R. 1892 favorably reported, as 
amended.

                              Open Session

    In open session, the Committee considered the text of the 
bill H.R. 1892. Chairman Rogers offered an amendment in the 
nature of a substitute to H.R. 1892. The contents of the 
amendment in the nature of a substitute are described in the 
Section-by-Section analysis and the Explanation of Amendment.
    Chairman Rogers offered an amendment to the amendment in 
the nature of a substitute that would amend section 402 to 
require the Director of the CIA to issue regulations to carry 
out the authority to solicit gifts under this provision. The 
regulations would ensure that any solicitation is consistent 
with all relevant ethical constraints and principles, including 
the avoidance of any prohibited conflict of interest of 
appearance of impropriety. The amendment was agreed to by voice 
vote.
    Mr. Thompson offered an amendment to the amendment in the 
nature of a substitute to require the CIA Director in 
consultation with other agencies to create and submit to the 
intelligence committees a report that includes a description of 
the events concerning the Osama bin Laden operation. The 
amendment was agreed to by voice vote.
    Mr. Schiff offered an amendment to the amendment in the 
nature of a substitute that requires a report from the Director 
of National Intelligence and the Under Secretary of Defense on 
training standards of the defense intelligence workforce. The 
amendment was agreed to by voice vote.
    Mr. Ruppersberger offered an amendment to the amendment in 
the nature of a substitute that would provide the Secretary of 
Defense with the authority to transfer appropriations of the 
Department of Defense for intelligence and intelligence-related 
activities and communications into an account. The amendment 
was withdrawn.
    The amendment in the nature of a substitute as amended was 
agreed to by voice vote.

                             Closed Session

    Mr. Ruppersberger then moved to close the meeting because 
national security would be endangered if the matters to be 
considered were disclosed. The motion was agreed to by a record 
vote of 16 ayes to 0 noes:
    Voting aye: Mr. Rogers (Chairman), Mrs. Myrick, Mr. Miller, 
Mr. Conaway, Mr. King, Mr. LoBiondo, Mr. Nunes, Mr. Rooney, Mr. 
Heck, Mr. Ruppersberger, Mr. Thompson, Ms. Schakowsky, Mr. 
Langevin, Mr. Schiff, Mr. Boren, Mr. Chandler.
    Voting no: none.
    After debate, no amendments were offered to the classified 
Schedule of Authorizations. The Committee then adopted the 
classified Schedule of Authorizations by voice vote.

                              Open Session

    By unanimous consent, the Committee returned to open 
session. The Committee then adopted a motion by the Chairman to 
favorably report the bill H.R. 1892 to the House, as amended, 
including by reference the classified schedule of 
authorizations. The motion was agreed to by voice vote.

      Section-by-Section Analysis and Explanation of the Amendment


Section 1--Short title and table of contents

    Section 1 contains the short title for the bill and the 
Table of Contents.

Section 2--Definitions

    Section 2 contains definitions of the terms ``congressional 
intelligence committees'' and ``intelligence community.''

              Title I--Budget and Personnel Authorizations


Section 101--Authorization of appropriations

    Section 101 of the bill authorizes appropriations for the 
intelligence and intelligence-related activities of these 
elements of the United States Government: The Office of the 
Director of National Intelligence (including the National 
Counterterrorism Center), the Central Intelligence Agency, the 
Department of Defense, the Defense Intelligence Agency, the 
National Security Agency, the Departments of the Army, Navy and 
Air Force, the Coast Guard, the Department of State, the 
Department of the Treasury, the Department of Energy, the 
Department of Justice, the Federal Bureau of Investigation, the 
Drug Enforcement Administration, the National Reconnaissance 
Office, the National Geospatial Intelligence Agency, and the 
Department of Homeland Security.

Section 102--Classified Schedule of Authorizations

    Section 102 provides that the amounts and personnel 
ceilings authorized under Section 101 shall be specified in the 
accompanying classified Schedule of Authorizations, which shall 
be made available to the Committee on Appropriations and to the 
President.

Section 103--Intelligence Community Management Account

    Section 103 authorizes appropriations for the Intelligence 
Community Management Account (ICMA) of the DNI and sets the 
authorized full-time equivalent personnel levels for the 
elements within the ICMA for Fiscal Year 2011. Section 103 also 
authorizes additional classified appropriations and personnel 
levels for the Community Management Account as specified in the 
classified Schedule of Authorizations and permits funding for 
advanced research and development to remain available through 
September 30, 2012.

 Title II--Central Intelligence Agency Retirement and Disability System


Section 201--Authorization of appropriations

    Section 201 authorizes $514,000,000 for the Central 
Intelligence Agency Retirement and Disability System (CIARDS).

           Title III--General Intelligence Community Matters


Section 301--Increase in employee compensation and benefits authorized 
        by law

    Section 301 provides that the authorized amounts may be 
increased by such additional or supplemental amounts as may be 
necessary for increases in compensation or benefits authorized 
by law.

Section 302--Restriction on conduct of intelligence activities

    Section 302 provides that the authorization of 
appropriations by this Act does not constitute authority for 
the conduct of any intelligence activity not otherwise 
authorized by the Constitution or laws of the United States.

Section 303--Annual report on hiring of ``National Security Education 
        Program'' participants

    Section 303 requires the heads of each element of the 
Intelligence Community to submit a report to the congressional 
intelligence committees within 90 days of enactment containing 
the number of personnel hired during that year that were at any 
time a recipient of a grant or scholarship under the David L. 
Boren National Security Education Act of 1991.

             Title IV--Matters Relating to Elements of the 
                         Intelligence Community


                Subtitle A--Central Intelligence Agency


Section 401--Burial allowance

    Section 401 amends the Central Intelligence Agency Act of 
1949 to permit the Agency to pay burial allowances to the 
estate of an officer or employee who dies as a result of 
hostile or terrorist activities or in connection with an 
intelligence activity having a substantial element of risk. The 
amount paid under this section may be up to $15,000 plus the 
actual costs of transportation by common carrier to the place 
selected for final disposition of the deceased. Section 401 
provides that this amount would be in addition to any other 
benefit that may be due under any other provision of law.
    Section 401 also allows the Director to annually increase 
the $15,000 maximum amount to reflect any increase in the 
consumer price index occurring in the preceding year. This 
section would also allow the Director to pay the burial benefit 
more than once for funeral, memorial or burial expenses 
stemming from a single death where the remains of such officer 
were not recovered, were recovered after considerable delay or 
were not recovered intact.

Section 402--Solicitation of gifts

    Section 402 amends the Central Intelligence Agency Act of 
1949 to permit the Director to solicit (in addition to accept) 
certain gifts after determining such acceptance or solicitation 
would be in the best interests of the United States. Section 
402 would also modify the section to clarify that the Director 
could solicit and accept gifts for the welfare of individual 
employees or survivors of deceased employees of the Agency 
whose death resulted from hostile or terrorist activities or 
incurred in connection with an intelligence activity having a 
substantial element of risk. Section 402 also requires 
regulations that would ensure that any solicitation is 
consistent with all relevant ethical constraints and 
principles, including the avoidance of any prohibited conflict 
of interest or appearance of impropriety.

Section 403--Acceptance of gifts, devises, and bequests

    Section 403 amends the Central Intelligence Agency Act of 
1949 to permit a covered employee to accept gifts individually 
from a source other than a foreign government or agent of a 
foreign government. A covered employee is one who has been 
injured or suffers illness resulting from hostile or terrorist 
activities or in connection with an intelligence activity 
having a substantial element of risk. Section 403 also requires 
the Director to issue controlling regulations that address 
potential counterintelligence concerns.

Section 404--Creating an official record of the Osama bin Laden 
        operation

    Section 404 requires the Director of the Central 
Intelligence Agency, in consultation with other agencies and 
entities involved in the operation that killed Osama bin Laden, 
shall submit to the congressional intelligence committees a 
classified report that memorializes such operation including a 
description of the events leading up to the discovery of the 
location of Osama bin Laden, the planning and execution of the 
raid, and the results of the intelligence gained from the raid. 
This section also requires the Director of the CIA to preserve 
any records used to generate such report.

                       Subtitle B--Other Elements


Section 411--Codification of Office of Intelligence and Analysis of the 
        Department of Homeland Security as element of the Intelligence 
        Community

    Section 411 amends the National Security Act of 1947 to 
clarify that the Office of Intelligence and Analysis of the 
Department of Homeland Security is part of the Intelligence 
Community, rather than the Department as a whole.

Section 412--Report and strategic plan on drug trafficking 
        organizations and impact on public lands

    Section 412 requires the Director of National Intelligence 
to submit to the congressional intelligence committees a report 
on intelligence collection efforts to assess the threat that 
drug trafficking organizations or actors that are using or have 
used public lands in the U.S. to further their operations, and 
detailing efforts to protect public lands in the U.S. from 
illegal grows.

Section 413--Report on training standards of defense intelligence 
        workforce

    Section 413 requires the Director of National Intelligence 
and the Under Secretary of Defense for Intelligence to submit 
to the intelligence and armed services committees a report on 
the training standards of the defense intelligence workforce. 
The report would include a description of existing standards, 
an assessment of the ability to implement a certification 
program based on achievement of required training by personnel.

                         Title V--Other Matters


Section 501--Report on airspace restrictions for use of unmanned aerial 
        vehicles along the border of the United States and Mexico

    Section 501 requires the Secretary of Homeland Security to 
report on whether restrictions on the use of airspace are 
hampering the use of unmanned aerial vehicles by the Department 
of Homeland Security along the international border between the 
United States and Mexico.

                 Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee held multiple 
hearings on the classified budgetary issues raised by H.R. 
1892. The bill, as reported by the Committee, reflects 
conclusions reached by the Committee in light of this oversight 
activity.

                General Performance Goals and Objectives

    In accordance with clause 3(c) of House rule XIII, the 
Committee's performance goals and objectives are reflected in 
the descriptive portions of this report.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. In compliance with this requirement, the Committee 
has received a letter from the Congressional Budget Office 
included herein.

                  Statement on Congressional Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee states that the bill as 
reported contains no congressional earmarks, limited tax 
benefits, or limited tariff benefits.

           Budget Authority and Congressional Budget Office 
                             Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 1892 from the Director of 
the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 22, 2011.
Hon. Mike Rogers,
Chairman, Permanent Select Committee on Intelligence,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1892, the 
Intelligence Authorization Act for Fiscal Year 2012.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jason 
Wheelock.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 1892--Intelligence Authorization Act for Fiscal Year 2012

    Summary: H.R. 1892 would authorize appropriations for 
fiscal year 2012 for intelligence activities of the U.S. 
government, for the Intelligence Community Management Account 
(ICMA), and for the Central Intelligence Agency Retirement and 
Disability System (CIARDS).
    Since CBO does not provide estimates for classified 
programs, this estimate addresses only the unclassified 
portions of the bill. In addition, CBO cannot provide estimates 
for certain provisions in the unclassified portion of the bill 
because they concern classified intelligence programs. On that 
limited basis, and assuming appropriation of the authorized 
amounts, CBO estimates that implementing H.R. 1892 would cost 
$585 million over the 2012-2016 period.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending; however, CBO 
estimates that those effects would be insignificant. Enacting 
H.R. 1892 would not affect revenues.
    H.R. 1892 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1892 is shown in the following table. 
The costs of this legislation fall within budget function 050 
(national defense).


----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars--
                                                                   ---------------------------------------------
                                                                     2012   2013   2014   2015   2016  2012-2016
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level...............................................    590      *      *      *      *        590
Estimated Outlays.................................................    384    136     47     12      6       585
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.

Basis of Estimate

    Spending subject to appropriation: For this estimate, CBO 
assumes that the legislation will be enacted near the end of 
fiscal year 2011.
    Section 103 would authorize the appropriation of $590 
million for the ICMA, which provides the principal source of 
funding for the Office of the Director of National Intelligence 
and resources for coordinating programs, overseeing budgets, 
and managing the intelligence agencies. CBO estimates that 
implementing this provision would cost $585 million over the 
2012-2016 period, assuming appropriation of specified amounts.
    Section 401 would authorize the Director of the Central 
Intelligence Agency (CIA) to pay burial allowances to the 
estates of employees who are killed in the line of duty. The 
allowance would cover burial expenses along with the costs of 
transporting deceased employees to their burial sites. The bill 
would permit payments up to $15,000 for such purposes, but 
would allow for multiple payments to be made in certain 
instances. Based on press releases by the CIA on the number of 
personnel killed in the line of duty, CBO estimates that 
implementing this provision would cost less than $500,000 over 
the 2012-2016 period, assuming availability of the necessary 
amounts.
    Direct spending: Section 201 would authorize the 
appropriation of $514 million to the Central Intelligence 
Agency Retirement and Disability System. CIARDS is a retirement 
and disability system for certain employees of the CIA, and the 
appropriation covers various unfunded liabilities of the 
system. The appropriation to CIARDS is considered mandatory, 
and the authorization under this bill would be the same as the 
amount assumed in the CBO baseline. Thus, this estimate does 
not ascribe any additional cost to that provision.
    Section 402 would amend the CIA's authority to accept gifts 
on behalf of its employees. The bill would amend that authority 
to permit the Director of the CIA to solicit such gifts, and to 
accept gifts on behalf of survivors of deceased members of the 
CIA who are killed in the line of duty. This provision could 
increase receipts to the government; however, the Director has 
the authority to spend such receipts.
    Because the Director also has the authority to invest gifts 
of cash or the proceeds from gifts of securities or property in 
U.S. government securities, this provision would result in 
additional interest being available for spending. Although the 
payment of interest from the U.S. Treasury to the CIA's gift 
fund would be an intergovernmental transfer, the outlays that 
would result from that transfer would constitute direct 
spending. However, CBO anticipates that the additional amounts 
invested by the CIA, and thus any additional interest, would be 
minimal.
    Pay-as-you-go considerations: Enacting the bill would have 
an insignificant effect on direct spending. The bill would not 
affect revenues.
    Intergovernmental and private-sector impact: H.R. 1892 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Jason Wheelock; Impact 
on State, Local, and Tribal Governments: J'nell Blanco; Impact 
on the Private Sector: Elizabeth Bass.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                     NATIONAL SECURITY ACT OF 1947

                              SHORT TITLE

That this Act may be cited as the ``National Security Act of 
1947''.
     * * * * * * *

         TITLE X--EDUCATION IN SUPPORT OF NATIONAL INTELLIGENCE

     * * * * * * *

               Subtitle C--Additional Education Provisions

     * * * * * * *
Sec. 1025. Annual report on hiring of National Security Education 
          Program participants.

           *       *       *       *       *       *       *


                              DEFINITIONS

  Sec. 3. As used in this Act:
          (1) * * *

           *       *       *       *       *       *       *

          (4) The term ``intelligence community'' includes the 
        following:
                  (A) * * *

           *       *       *       *       *       *       *

                  [(K) The elements of the Department of 
                Homeland Security concerned with the analysis 
                of intelligence information.]
                  (K) The Office of Intelligence and Analysis 
                of the Department of Homeland Security.

           *       *       *       *       *       *       *


TITLE X--EDUCATION IN SUPPORT OF NATIONAL INTELLIGENCE

           *       *       *       *       *       *       *


Subtitle C--Additional Education Provisions

           *       *       *       *       *       *       *


    ANNUAL REPORT ON HIRING OF NATIONAL SECURITY EDUCATION PROGRAM 
                              PARTICIPANTS

  Sec. 1025. Not later than 90 days after the end of each 
fiscal year, the head of each element of the intelligence 
community shall submit to the congressional intelligence 
committees a report, which may be in classified form, 
containing the number of personnel hired by such element during 
such fiscal year that were at any time a recipient of a grant 
or scholarship under the David L. Boren National Security 
Education Act of 1991 (50 U.S.C. 1901 et seq.).

           *       *       *       *       *       *       *

                              ----------                              


CENTRAL INTELLIGENCE AGENCY ACT OF 1949

           *       *       *       *       *       *       *


       AUTHORITY TO PAY DEATH GRATUITIES   AND BURIAL ALLOWANCE 

  Sec. 11. (a) * * *

           *       *       *       *       *       *       *

  (c)(1) At the request of a representative of the estate of 
any officer or employee of the Agency (as determined in 
accordance with the laws of a State) who dies in a manner 
described in subsection (a)(1), the Director may pay to such 
estate a burial allowance.
  (2) A burial allowance paid under paragraph (1) may be used 
to cover burial expenses, including recovery, mortuary, funeral 
or memorial service, cremation, burial costs, and costs of 
transportation by common carrier to the place selected for 
final disposition of the deceased.
  (3) Each payment made under this subsection shall be--
          (A) in an amount not greater than $15,000 plus the 
        actual costs of transportation referred to in paragraph 
        (2); and
          (B) in addition to any other benefit that may be due 
        under any other provision of law.
  (4) The Director may annually increase the amount in 
paragraph (3)(A) to reflect any increase in the Consumer Price 
Index occurring during the preceding year.
  (5) The Director may pay the burial benefit authorized under 
this subsection more than once for funeral, memorial, or burial 
expenses stemming from a single death of an officer or employee 
of the Agency if the remains of such officer or employee were 
not recovered, were recovered after considerable delay, or were 
not recovered intact.

            AUTHORITY TO ACCEPT GIFTS, DEVISES, AND BEQUESTS

  Sec. 12. (a)[ Subject](1) Subject to the provisions of this 
section, the Director [may accept] may solicit, accept, hold, 
administer, and use gifts of money, securities, or other 
property whenever the Director determines it would be in the 
interest of the United States to do so. Any gift accepted under 
this section (and any income produced by any such gift) may be 
used only for artistic display or for purposes relating to the 
[general]   welfare, education, or recreation of [employees or 
dependents of employees of the Agency] employees of the Agency, 
dependents of employees of the Agency, or survivors of deceased 
employees of the Agency who died in a manner described in 
section 11(a)(1) or for similar purposes, and under no 
circumstances may such a gift (or any income produced by any 
such gift) be used for operational purposes. The Director may 
not accept any gift under this section which is expressly 
conditioned upon any expenditure not to be met from the gift 
itself or from income produced by the gift unless such 
expenditure has been authorized by law.
  (2) The Director shall issue regulations to carry out the 
authority to solicit gifts under paragraph (1). Such 
regulations shall ensure that any solicitation is consistent 
with all relevant ethical constraints and principles, including 
the avoidance of any prohibited conflict of interest or 
appearance of impropriety.

           *       *       *       *       *       *       *

  (f)(1) Subject to limitations established by the Director, a 
covered employee may accept a gift from a source other than a 
foreign government or an agent of a foreign government.
  (2) The Director shall issue regulations to carry out this 
subsection. Such regulations shall address any potential 
counterintelligence concerns with generally accepting gifts 
under this subsection and prior to the acceptance of any 
individual gift.
  (3) In this subsection, the term ``covered employee'' means 
an employee of the Agency who suffered an injury or illness 
that--
          (A) resulted from hostile or terrorist activities; or
          (B) occurred under other circumstances determined by 
        the Director to be analogous to subparagraph (A).

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    As members of the Intelligence Committee, it is our 
responsibility to ensure that the men and women serving in the 
Intelligence Community (IC) have the resources, tools, and 
authorities they need to protect America. The operation that 
killed Osama bin Laden demonstrated the best of what the 
Intelligence Community can provide our nation. Even with this 
major blow against Al Qaeda, America still faces a determined 
enemy. We must remain vigilant and continue the pressure 
against Al Qaeda and its affiliates.
    One of the ways this Committee supports the IC in its 
counterterrorism efforts is by passing a budget that provides a 
blueprint for intelligence funding. If this bill is enacted 
into law, this will mark the third straight year that an 
Intelligence Authorization Act has been signed by the 
President.
    This bill represents a bipartisan effort to remove politics 
out of oversight of intelligence. Provisions offered by 
minority members were accepted as part of the Chairman's mark 
and other amendments were adopted unanimously by the Committee. 
Included among these:
           A provision that would require creating an 
        official record of the bin Laden operation;
           A report on training standards for the 
        defense intelligence workforce;
           A report on intelligence collection gaps on 
        drug trafficking organizations use of U.S. public 
        lands; and
           A report on the number of David L. Boren 
        scholarship winners hired by the Intelligence 
        Community.
    These bipartisan efforts led to a bill that all members of 
the Committee supported. We believe we must be fiscally 
responsible and make reductions in programs that are redundant 
or don't fulfill the mission of the organization while building 
up programs and personnel that are working. However, there are 
cuts within the classified annex to critical national security 
programs that the Minority wishes would be removed in order to 
authorize all the funding the President requested in those 
areas. In fact, the Minority was able to convince the Majority 
to restore half of the funding to two programs where funding 
had been targeted to be cut completely. Our hope is we can work 
out these differences during Conference with the Senate.
    Despite these concerns about specific programs, we believe 
this bill is an important product that enhances the oversight 
of intelligence.
                                   C.A. Dutch Ruppersberger.
                                   Mike Thompson.
                                   Jan Schakowsky.
                                   Jim Langevin.
                                   Adam Schiff.
                                   Dan Boren.
                                   Luis Gutierrez.
                                   Ben Chandler.

                                  
