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[House Report 110-478]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-478

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

 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2008

                                _______
                                

                December 6, 2007.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 2082]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the Senate to the bill (H.R. 
2082), to authorize appropriations for fiscal year 2008 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 Act may be cited as the 
``Intelligence Authorization Act for Fiscal Year 2008''.
    (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--BUDGET AND PERSONNEL AUTHORIZATIONS

Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Specific authorization of funds within the National 
          Intelligence Program for which fiscal year 2008 appropriations 
          exceed amounts authorized.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.
Sec. 202. Technical modification to mandatory retirement provision of 
          the Central Intelligence Agency Retirement Act.

            TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

                      Subtitle A--Personnel Matters

Sec. 301. Increase in employee compensation and benefits authorized by 
          law.
Sec. 302. Enhanced flexibility in nonreimbursable details to elements of 
          the intelligence community.
Sec. 303. Multi-level security clearances.
Sec. 304. Pay authority for critical positions.
Sec. 305. Delegation of authority for travel on common carriers for 
          intelligence collection personnel.
Sec. 306. Annual personnel level assessments for the intelligence 
          community.
Sec. 307. Comprehensive report on intelligence community contractors.
Sec. 308. Report on proposed pay for performance intelligence community 
          personnel management system.
Sec. 309. Report on plans to increase diversity within the intelligence 
          community.

                     Subtitle B--Acquisition Matters

Sec. 311. Vulnerability assessments of major systems.
Sec. 312. Business enterprise architecture and business system 
          modernization for the intelligence community.
Sec. 313. Reports on the acquisition of major systems.
Sec. 314. Excessive cost growth of major systems.

                        Subtitle C--Other Matters

Sec. 321. Restriction on conduct of intelligence activities.
Sec. 322. Clarification of definition of intelligence community under 
          the National Security Act of 1947.
Sec. 323. Modification of availability of funds for different 
          intelligence activities.
Sec. 324. Protection of certain national security information.
Sec. 325. Extension of authority to delete information about receipt and 
          disposition of foreign gifts and decorations.
Sec. 326. Report on compliance with the Detainee Treatment Act of 2005 
          and related provisions of the Military Commissions Act of 
          2006.
Sec. 327. Limitation on interrogation techniques.
Sec. 328. Limitation on use of funds.
Sec. 329. Incorporation of reporting requirements.
Sec. 330. Repeal of certain reporting requirements.

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

       Subtitle A--Office of the Director of National Intelligence

Sec. 401. Clarification of limitation on colocation of the Office of the 
          Director of National Intelligence.
Sec. 402. Membership of the Director of National Intelligence on the 
          Transportation Security Oversight Board.
Sec. 403. Additional duties of the Director of Science and Technology.
Sec. 404. Leadership and location of certain offices and officials.
Sec. 405. Plan to implement recommendations of the data center energy 
          efficiency reports.
Sec. 406. Comprehensive listing of special access programs.
Sec. 407. Reports on the nuclear programs of Iran and North Korea.
Sec. 408. Requirements for accountability reviews by the Director of 
          National Intelligence.
Sec. 409. Modification of limitation on delegation by the Director of 
          National Intelligence of the protection of intelligence 
          sources and methods.
Sec. 410. Authorities for intelligence information sharing.
Sec. 411. Authorities of the Director of National Intelligence for 
          interagency funding.
Sec. 412. Title of Chief Information Officer of the Intelligence 
          Community.
Sec. 413. Inspector General of the Intelligence Community.
Sec. 414. Annual report on foreign language proficiency in the 
          intelligence community.
Sec. 415. Director of National Intelligence report on retirement 
          benefits for former employees of Air America.
Sec. 416. Space intelligence.
Sec. 417. Operational files in the Office of the Director of National 
          Intelligence.
Sec. 418. Inapplicability of Federal Advisory Committee Act to advisory 
          committees of the Office of the Director of National 
          Intelligence.
Sec. 419. Applicability of the Privacy Act to the Director of National 
          Intelligence and the Office of the Director of National 
          Intelligence.
Sec. 420. Repeal of certain authorities relating to the Office of the 
          National Counterintelligence Executive.

                 Subtitle B--Central Intelligence Agency

Sec. 431. Review of covert action programs by Inspector General of the 
          Central Intelligence Agency.
Sec. 432. Inapplicability to Director of the Central Intelligence Agency 
          of requirement for annual report on progress in auditable 
          financial statements.
Sec. 433. Additional functions and authorities for protective personnel 
          of the Central Intelligence Agency.
Sec. 434. Technical amendments relating to titles of certain Central 
          Intelligence Agency positions.
Sec. 435. Clarifying amendments relating to section 105 of the 
          Intelligence Authorization Act for Fiscal Year 2004.

               Subtitle C--Defense Intelligence Components

Sec. 441. Enhancement of National Security Agency training program.
Sec. 442. Codification of authorities of National Security Agency 
          protective personnel.
Sec. 443. Inspector general matters.
Sec. 444. Confirmation of appointment of heads of certain components of 
          the intelligence community.
Sec. 445. Clarification of national security missions of National 
          Geospatial-Intelligence Agency for analysis and dissemination 
          of certain intelligence information.
Sec. 446. Security clearances in the National Geospatial-Intelligence 
          Agency.

                       Subtitle D--Other Elements

Sec. 451. Clarification of inclusion of Coast Guard and Drug Enforcement 
          Administration as elements of the intelligence community.

                         TITLE V--OTHER MATTERS

                Subtitle A--General Intelligence Matters

Sec. 501. Extension of National Commission for the Review of the 
          Research and Development Programs of the United States 
          Intelligence Community.
Sec. 502. Report on intelligence activities.
Sec. 503. Aerial reconnaissance platforms.

                    Subtitle B--Technical Amendments

Sec. 511. Technical amendments to title 10, United States Code, arising 
          from enactment of the Intelligence Reform and Terrorism 
          Prevention Act of 2004.
Sec. 512. Technical amendment to the Central Intelligence Agency Act of 
          1949.
Sec. 513. Technical amendments relating to the multiyear National 
          Intelligence Program.
Sec. 514. Technical clarification of certain references to Joint 
          Military Intelligence Program and Tactical Intelligence and 
          Related Activities.
Sec. 515. Technical amendments to the National Security Act of 1947.
Sec. 516. Technical amendments to the Intelligence Reform and Terrorism 
          Prevention Act of 2004.
Sec. 517. Technical amendments to the Executive Schedule.

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) Element of the intelligence community.--The 
        term ``element of the intelligence community'' means an 
        element of the intelligence community listed in or 
        designated under section 3(4) of the National Security 
        Act of 1947 (50 U.S.C. 401a(4)).
            (3) 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--BUDGET AND PERSONNEL AUTHORIZATIONS

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2008 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, 2008, 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 conference 
report on the bill H.R. 2082 of the One Hundred Tenth Congress.
    (b) Availability of Classified Schedule of 
Authorizations.--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. 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 Increases.--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 
2008 by the classified Schedule of Authorizations referred to 
in section 102(a) if 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 3 percent of the number of civilian personnel 
authorized under such Schedule for such element.
    (b) Transition to Full-Time Equivalency.--
            (1) Treatment for fiscal year 2008.--For fiscal 
        year 2008, the Director of National Intelligence, in 
        consultation with the head of each element of the 
        intelligence community, may treat the personnel 
        ceilings authorized under the classified Schedule of 
        Authorizations referred to in section 102(a) as full-
        time equivalents.
            (2) Consideration.--In exercising the authority 
        described in paragraph (1), the Director of National 
        Intelligence may consider the circumstances under which 
        civilian employees are employed and accounted for at 
        each element of the intelligence community in--
                    (A) a student program, trainee program, or 
                similar program;
                    (B) reserve corps or equivalent status as a 
                reemployed annuitant or other employee;
                    (C) a joint duty rotational assignment; or
                    (D) other full-time or part-time status.
            (3) Notification to congress.--Not later than 90 
        days after the date of the enactment of this Act, the 
        Director of National Intelligence shall notify the 
        congressional intelligence committees in writing of--
                    (A) the policies for implementing the 
                authorities described in paragraphs (1) and 
                (2); and
                    (B) the number of all civilian personnel 
                employed by, or anticipated to be employed by, 
                each element of the intelligence community 
                during fiscal year 2008 accounted for--
                            (i) by position;
                            (ii) by full-time equivalency; or
                            (iii) by any other method.
            (4) Treatment for fiscal year 2009.--The Director 
        of National Intelligence shall express the personnel 
        levels for all civilian employees for each element of 
        the intelligence community in the congressional budget 
        justifications submitted for fiscal year 2009 as full-
        time equivalent positions.
    (c) Authority for Conversion of Activities Performed by 
Contractors.--In addition to the authority in subsection (a), 
upon a determination by the head of an element of the 
intelligence community that activities currently being 
performed by contractor employees should be performed by 
government employees, the concurrence of the Director of 
National Intelligence in such determination, and the approval 
of the Director of the Office of Management and Budget, the 
Director of National Intelligence may authorize for that 
purpose employment of additional full-time equivalent personnel 
in such element of the intelligence community equal to the 
number that is--
            (1) in the case of personnel of Office of the 
        Director of National Intelligence, not more than 5 
        percent of the number of such personnel authorized for 
        fiscal year 2008 by the classified Schedule of 
        Authorizations referred to in section 102(a); or
            (2) except as provided in paragraph (1), not more 
        than 10 percent of the number authorized for fiscal 
        year 2008 by the classified Schedule of Authorizations 
        referred to in section 102(a).
    (d) Notice to Congressional Intelligence Committees.--The 
Director of National Intelligence shall notify the 
congressional intelligence committees in writing at least 15 
days prior to each exercise of an authority described in 
subsection (a) or (c).

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 2008 the sum of $734,126,000. 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, 2009.
    (b) Authorized Personnel Levels.--The elements within the 
Intelligence Community Management Account of the Director of 
National Intelligence are authorized 952 full-time or full-time 
equivalent personnel as of September 30, 2008. 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) Construction of Authorities.--The authorities available 
to the Director of National Intelligence under section 103 are 
also available to the Director for the adjustment of personnel 
levels within the Intelligence Community Management Account.
    (d) 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 2008 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, 2009.
            (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, 2008, 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).
    (e) National Drug Intelligence Center.--
            (1) In general.--Of the amount authorized to be 
        appropriated in subsection (a), $39,000,000 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, 2009, and funds 
        provided for procurement purposes shall remain 
        available until September 30, 2010.
            (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 for purposes 
        of exercising police, subpoena, or law enforcement 
        powers or internal security functions.
            (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. SPECIFIC AUTHORIZATION OF FUNDS WITHIN THE NATIONAL 
                    INTELLIGENCE PROGRAM FOR WHICH FISCAL YEAR 2008 
                    APPROPRIATIONS EXCEED AMOUNTS AUTHORIZED.

    Funds appropriated for an intelligence or intelligence-
related activity within the National Intelligence Program for 
fiscal year 2008 in excess of the amount specified for such 
activity in the classified Schedule of Authorizations referred 
to in section 102(a) 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)).

 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 2008 the sum of $262,500,000.

SEC. 202. TECHNICAL MODIFICATION TO MANDATORY RETIREMENT PROVISION OF 
                    THE CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT.

    Subparagraph (A) of section 235(b)(1) of the Central 
Intelligence Agency Retirement Act (50 U.S.C. 2055(b)(1)) is 
amended by striking ``receiving compensation under the Senior 
Intelligence Service pay schedule at the rate'' and inserting 
``who is at the Senior Intelligence Service rank''.

           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

                     Subtitle A--Personnel Matters

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. ENHANCED FLEXIBILITY IN NONREIMBURSABLE DETAILS TO ELEMENTS 
                    OF THE INTELLIGENCE COMMUNITY.

    Except as provided in section 113 of the National Security 
Act of 1947 (50 U.S.C. 404h) and section 904(g)(2) of the 
Counterintelligence Enhancement Act of 2002 (title IX of Public 
Law 107-306; 50 U.S.C. 402c(g)(2)) and notwithstanding any 
other provision of law, in any fiscal year after fiscal year 
2007 an officer or employee of the United States or member of 
the Armed Forces may be detailed to the staff of an element of 
the intelligence community funded through the Community 
Management Account from another element of the United States 
Government on a reimbursable or nonreimbursable basis, as 
jointly agreed to by the Director of National Intelligence and 
the head of the detailing element (or the designees of such 
officials), for a period not to exceed 2 years.

SEC. 303. MULTI-LEVEL SECURITY CLEARANCES.

    (a) In General.--Section 102A of the National Security Act 
of 1947 (50 U.S.C. 403-1) is amended by adding at the end the 
following new subsection:
    ``(s) Multi-Level Security Clearances.--The Director of 
National Intelligence shall be responsible for ensuring that 
the elements of the intelligence community adopt a multi-level 
security clearance approach in order to enable the intelligence 
community to make more effective and efficient use of persons 
proficient in foreign languages or with cultural, linguistic, 
or other subject matter expertise that is critical to national 
security.''.
    (b) Implementation.--The Director of National Intelligence 
shall issue guidelines to the intelligence community on the 
implementation of subsection (s) of section 102A of the 
National Security Act of 1947, as added by subsection (a), not 
later than 180 days after the date of the enactment of this 
Act.

SEC. 304. PAY AUTHORITY FOR CRITICAL POSITIONS.

    Section 102A of the National Security Act of 1947 (50 
U.S.C. 403-1), as amended by section 303 of this Act, is 
further amended by adding at the end the following new 
subsection:
    ``(t) Pay Authority for Critical Positions.--(1) 
Notwithstanding any pay limitation established under any other 
provision of law applicable to employees in elements of the 
intelligence community, the Director of National Intelligence 
may, in consultation with the Director of the Office of 
Personnel Management and the Director of the Office of 
Management and Budget, grant authority to fix the rate of basic 
pay for 1 or more positions within the intelligence community 
at a rate in excess of any applicable limitation, subject to 
the provisions of this subsection. The exercise of authority so 
granted is at the discretion of the head of the department or 
agency employing the individual in a position covered by such 
authority, subject to the provisions of this subsection and any 
conditions established by the Director of National Intelligence 
when granting such authority.
    ``(2) Authority under this subsection may be granted or 
exercised--
            ``(A) only with respect to a position which 
        requires an extremely high level of expertise and is 
        critical to successful accomplishment of an important 
        mission; and
            ``(B) only to the extent necessary to recruit or 
        retain an individual exceptionally well qualified for 
        the position.
    ``(3) A rate of basic pay may not be fixed under this 
subsection at a rate greater than the rate payable for level II 
of the Executive Schedule under section 5312 of title 5, United 
States Code, except upon written approval of the Director of 
National Intelligence or as otherwise authorized by law.
    ``(4) A rate of basic pay may not be fixed under this 
subsection at a rate greater than the rate payable for level I 
of the Executive Schedule under section 5311 of title 5, United 
States Code, except upon written approval of the President in 
response to a request by the Director of National Intelligence 
or as otherwise authorized by law.
    ``(5) Any grant of authority under this subsection for a 
position shall terminate at the discretion of the Director of 
National Intelligence.''.

SEC. 305. DELEGATION OF AUTHORITY FOR TRAVEL ON COMMON CARRIERS FOR 
                    INTELLIGENCE COLLECTION PERSONNEL.

    (a) Delegation of Authority.--Section 116(b) of the 
National Security Act of 1947 (50 U.S.C. 404k(b)) is amended--
            (1) by inserting ``(1)'' before ``The Director'';
            (2) in paragraph (1), as designated by paragraph 
        (1) of this subsection, by striking ``may only 
        delegate'' and all that follows and inserting ``may 
        delegate the authority in subsection (a) to the head of 
        any other element of the intelligence community.''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) The head of an element of the intelligence community 
to whom the authority in subsection (a) is delegated pursuant 
to paragraph (1) may further delegate such authority to such 
senior officials of such element as are specified in guidelines 
prescribed by the Director of National Intelligence for 
purposes of this paragraph.''.
    (b) Submission of Guidelines to Congress.--Not later than 6 
months after the date of the enactment of this Act, the 
Director of National Intelligence shall prescribe and submit to 
the congressional intelligence committees the guidelines 
referred to in paragraph (2) of section 116(b) of the National 
Security Act of 1947, as added by subsection (a).

SEC. 306. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE INTELLIGENCE 
                    COMMUNITY.

    (a) In General.--Title V of the National Security Act of 
1947 (50 U.S.C. 413 et seq.) is amended by inserting after 
section 506A the following new section:

``SEC. 506B. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE INTELLIGENCE 
                    COMMUNITY.

    ``(a) Requirement To Provide.--The Director of National 
Intelligence shall, in consultation with the head of the 
element of the intelligence community concerned, prepare an 
annual personnel level assessment for such element of the 
intelligence community that assesses the personnel levels for 
each such element for the fiscal year following the fiscal year 
in which the assessment is submitted.
    ``(b) Schedule.--Each assessment required by subsection (a) 
shall be submitted to the congressional intelligence committees 
each year along with the budget submitted by the President 
under section 1105 of title 31, United States Code.
    ``(c) Contents.--Each assessment required by subsection (a) 
submitted during a fiscal year shall contain, at a minimum, the 
following information for the element of the intelligence 
community concerned:
            ``(1) The budget submission for personnel costs for 
        the upcoming fiscal year.
            ``(2) The dollar and percentage increase or 
        decrease of such costs as compared to the personnel 
        costs of the current fiscal year.
            ``(3) The dollar and percentage increase or 
        decrease of such costs as compared to the personnel 
        costs during the prior 5 fiscal years.
            ``(4) The number of personnel positions requested 
        for the upcoming fiscal year.
            ``(5) The numerical and percentage increase or 
        decrease of such number as compared to the number of 
        personnel positions of the current fiscal year.
            ``(6) The numerical and percentage increase or 
        decrease of such number as compared to the number of 
        personnel positions during the prior 5 fiscal years.
            ``(7) The best estimate of the number and costs of 
        contractors to be funded by the element for the 
        upcoming fiscal year.
            ``(8) The numerical and percentage increase or 
        decrease of such costs of contractors as compared to 
        the best estimate of the costs of contractors of the 
        current fiscal year.
            ``(9) The numerical and percentage increase or 
        decrease of such costs of contractors as compared to 
        the cost of contractors, and the number of contractors, 
        during the prior 5 fiscal years.
            ``(10) A written justification for the requested 
        personnel and contractor levels.
            ``(11) The number of intelligence collectors and 
        analysts employed or contracted by each element of the 
        intelligence community.
            ``(12) A list of all contractors that have been the 
        subject of an investigation completed by the Inspector 
        General of any element of the intelligence community 
        during the preceding fiscal year, or are or have been 
        the subject of an investigation by such an Inspector 
        General during the current fiscal year.
            ``(13) A statement by the Director of National 
        Intelligence that, based on current and projected 
        funding, the element concerned will have sufficient--
                    ``(A) internal infrastructure to support 
                the requested personnel and contractor levels;
                    ``(B) training resources to support the 
                requested personnel levels; and
                    ``(C) funding to support the administrative 
                and operational activities of the requested 
                personnel levels.''.
    (b) Clerical Amendment.--The table of contents in the first 
section of that Act is amended by inserting after the item 
relating to section 506A the following new item:

``Sec. 506B. Annual personnel levels assessment for the intelligence 
          community.''.

SEC. 307. COMPREHENSIVE REPORT ON INTELLIGENCE COMMUNITY CONTRACTORS.

    (a) Requirement for Report.--Not later than March 31, 2008, 
the Director of National Intelligence shall submit to the 
congressional intelligence committees a report describing the 
personal services activities performed by contractors across 
the intelligence community, the impact of such contractors on 
the intelligence community workforce, plans for conversion of 
contractor employment into government employment, and the 
accountability mechanisms that govern the performance of such 
contractors.
    (b) Content.--
            (1) In general.--The report submitted under 
        subsection (a) shall include--
                    (A) a description of any relevant 
                regulations or guidance issued by the Director 
                of National Intelligence or the head of an 
                element of the intelligence community relating 
                to minimum standards required regarding the 
                hiring, training, security clearance, and 
                assignment of contract personnel and how those 
                standards may differ from those for government 
                employees performing substantially similar 
                functions;
                    (B) an identification of contracts where 
                the contractor is providing a substantially 
                similar functions to a government employee;
                    (C) an assessment of costs incurred or 
                savings achieved by awarding contracts for the 
                performance of such functions referred to in 
                subparagraph (B) instead of using full-time 
                employees of the elements of the intelligence 
                community to perform such functions;
                    (D) an assessment of the appropriateness of 
                using contractors to perform the activities 
                described in paragraph (2);
                    (E) an estimate of the number of contracts, 
                and the number of personnel working under such 
                contracts, related to the performance of 
                activities described in paragraph (2);
                    (F) a comparison of the compensation of 
                contract employees and government employees 
                performing substantially similar functions;
                    (G) an analysis of the attrition of 
                government personnel for contractor positions 
                that provide substantially similar functions;
                    (H) a description of positions that will be 
                converted from contractor employment to 
                government employment under the authority 
                described in section 103(c) of this Act and the 
                justification for such conversion;
                    (I) an analysis of accountability 
                mechanisms within services contracts awarded 
                for intelligence activities by each element of 
                the intelligence community during fiscal years 
                2006 and 2007;
                    (J) an analysis of procedures in use in the 
                intelligence community for conducting oversight 
                of contractors to ensure identification and 
                prosecution of criminal violations, financial 
                waste, fraud, or other abuses committed by 
                contractors or contract personnel; and
                    (K) an identification of best practices of 
                accountability mechanisms within services 
                contracts.
            (2) Activities.--Activities described in this 
        paragraph are the following:
                    (A) Intelligence collection.
                    (B) Intelligence analysis.
                    (C) Covert actions, including rendition, 
                detention, and interrogation activities.

SEC. 308. REPORT ON PROPOSED PAY FOR PERFORMANCE INTELLIGENCE COMMUNITY 
                    PERSONNEL MANAGEMENT SYSTEM.

    (a) Prohibition on Pay for Performance Until Report.--The 
Director of National Intelligence and the head of an element of 
the intelligence community may not implement a plan that 
provides compensation to personnel of that element of the 
intelligence community based on performance until the date that 
is 45 days after the date on which the Director of National 
Intelligence submits a report for that element under subsection 
(b).
    (b) Report.--The Director of National Intelligence shall 
submit to Congress a report on performance-based compensation 
for each element of the intelligence community, including, with 
respect to each such element--
            (1) an implementation time line which includes 
        target dates for completion of--
                    (A) the development of performance 
                appraisal plans;
                    (B) establishment of oversight and appeal 
                mechanisms;
                    (C) deployment of information technology 
                systems;
                    (D) management training;
                    (E) employee training;
                    (F) compensation transition; and
                    (G) full operational capacity;
            (2) an estimated budget for the implementation of 
        the performance-based compensation system;
            (3) an evaluation plan to monitor the 
        implementation of the performance-based compensation 
        system and to improve and modify such system;
            (4) written standards for measuring the performance 
        of employees;
            (5) a description of the performance-based 
        compensation system, including budget oversight 
        mechanisms to ensure sufficient funds to pay employees 
        for bonuses;
            (6) a description of internal and external 
        accountability mechanisms to ensure the fair treatment 
        of employees;
            (7) a plan for initial and ongoing training for 
        senior executives, managers, and employees;
            (8) a description of the role of any advisory 
        committee or other mechanism designed to gather the 
        input of employees relating to the creation and 
        implementation of the system;
            (9) an assessment of the impact of the performance-
        based compensation system on women, minorities, persons 
        with disabilities, and veterans; and
            (10) an assessment of the consistency of the plan 
        described in subsection (a) for such element with the 
        plans of the Director of National Intelligence for a 
        performance-based compensation system for the 
        intelligence community.

SEC. 309. REPORT ON PLANS TO INCREASE DIVERSITY WITHIN THE INTELLIGENCE 
                    COMMUNITY.

    (a) Requirement for Report.--Not later than March 31, 2008, 
the Director of National Intelligence, in coordination with the 
heads of the elements of the intelligence community, shall 
submit to the congressional intelligence committees a report on 
the plans of each element to increase diversity within the 
intelligence community.
    (b) Content.--The report required by subsection (a) shall 
include specific implementation plans to increase diversity 
within each element of the intelligence community, including--
            (1) specific implementation plans for each such 
        element designed to achieve the goals articulated in 
        the strategic plan of the Director of National 
        Intelligence on equal employment opportunity and 
        diversity;
            (2) specific plans and initiatives for each such 
        element to increase recruiting and hiring of diverse 
        candidates;
            (3) specific plans and initiatives for each such 
        element to improve retention of diverse Federal 
        employees at the junior, midgrade, senior, and 
        management levels;
            (4) a description of specific diversity awareness 
        training and education programs for senior officials 
        and managers of each such element; and
            (5) a description of performance metrics to measure 
        the success of carrying out the plans, initiatives, and 
        programs described in paragraphs (1) through (4).

                    Subtitle B--Acquisition Matters

SEC. 311. VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS.

    (a) In General.--Title V of the National Security Act of 
1947 (50 U.S.C. 413 et seq.), as amended by section 306 of this 
Act, is further amended by inserting after section 506B, as 
added by section 306(a), the following new section:

              ``VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS

    ``Sec. 506C. (a) Initial Vulnerability Assessments.--The 
Director of National Intelligence shall conduct an initial 
vulnerability assessment for any major system and its 
significant items of supply that is proposed for inclusion in 
the National Intelligence Program prior to completion of 
Milestone B or an equivalent acquisition decision. The initial 
vulnerability assessment of a major system and its significant 
items of supply shall, at a minimum, use an analysis-based 
approach to--
            ``(1) identify vulnerabilities;
            ``(2) define exploitation potential;
            ``(3) examine the system's potential effectiveness;
            ``(4) determine overall vulnerability; and
            ``(5) make recommendations for risk reduction.
    ``(b) Subsequent Vulnerability Assessments.--(1) The 
Director of National Intelligence shall conduct subsequent 
vulnerability assessments of each major system and its 
significant items of supply within the National Intelligence 
Program--
            ``(A) periodically throughout the life span of the 
        major system;
            ``(B) whenever the Director determines that a 
        change in circumstances warrants the issuance of a 
        subsequent vulnerability assessment; or
            ``(C) upon the request of a congressional 
        intelligence committee.
    ``(2) Any subsequent vulnerability assessment of a major 
system and its significant items of supply shall, at a minimum, 
use an analysis-based approach and, if applicable, a testing-
based approach, to monitor the exploitation potential of such 
system and reexamine the factors described in paragraphs (1) 
through (5) of subsection (a).
    ``(c) Major System Management.--The Director of National 
Intelligence shall give due consideration to the vulnerability 
assessments prepared for a given major system when developing 
and determining the annual consolidated National Intelligence 
Program budget.
    ``(d) Congressional Oversight.--(1) The Director of 
National Intelligence shall provide to the congressional 
intelligence committees a copy of each vulnerability assessment 
conducted under subsection (a) or (b) not later than 10 days 
after the date of the completion of such assessment.
    ``(2) The Director of National Intelligence shall provide 
the congressional intelligence committees with a proposed 
schedule for subsequent vulnerability assessments of a major 
system under subsection (b) when providing such committees with 
the initial vulnerability assessment under subsection (a) of 
such system as required by subsection (d).
    ``(e) Definitions.--In this section:
            ``(1) The term `items of supply'--
                    ``(A) means any individual part, component, 
                subassembly, assembly, or subsystem integral to 
                a major system, and other property which may be 
                replaced during the service life of the major 
                system, including spare parts and replenishment 
                parts; and
                    ``(B) does not include packaging or 
                labeling associated with shipment or 
                identification of items.
            ``(2) The term `major system' has the meaning given 
        that term in section 506A(e).
            ``(3) The term `Milestone B' means a decision to 
        enter into system development and demonstration 
        pursuant to guidance prescribed by the Director of 
        National Intelligence.
            ``(4) The term `vulnerability assessment' means the 
        process of identifying and quantifying vulnerabilities 
        in a major system and its significant items of 
        supply.''.
    (b) Clerical Amendment.--The table of contents in the first 
section of the National Security Act of 1947, as amended by 
section 306 of this Act, is further amended by inserting after 
the item relating to section 506B, as added by section 306(b), 
the following:

``Sec. 506C. Vulnerability assessments of major systems.''.

SEC. 312. BUSINESS ENTERPRISE ARCHITECTURE AND BUSINESS SYSTEM 
                    MODERNIZATION FOR THE INTELLIGENCE COMMUNITY.

    (a) Business Enterprise Architecture and Business System 
Modernization.--
            (1) In general.--Title V of the National Security 
        Act of 1947 (50 U.S.C. 413 et seq.), as amended by 
        sections 306 and 311 of this Act, is further amended by 
        inserting after section 506C, as added by section 
        311(a), the following new section:

       ``INTELLIGENCE COMMUNITY BUSINESS SYSTEMS, ARCHITECTURE, 
                   ACCOUNTABILITY, AND MODERNIZATION

    ``Sec. 506D. (a) Limitation on Obligation of Funds for 
Intelligence Community Business System Modernization.--(1) 
After April 1, 2008, no funds appropriated to any element of 
the intelligence community may be obligated for an intelligence 
community business system modernization described in paragraph 
(2) unless--
            ``(A) the approval authority designated by the 
        Director of National Intelligence under subsection 
        (c)(2) makes the certification described in paragraph 
        (3) with respect to the intelligence community business 
        system modernization; and
            ``(B) the certification is approved by the 
        Intelligence Community Business Systems Management 
        Committee established under subsection (f).
    ``(2) An intelligence community business system 
modernization described in this paragraph is an intelligence 
community business system modernization that--
            ``(A) will have a total cost in excess of 
        $1,000,000; and
            ``(B) will receive more than 50 percent of the 
        funds for such cost from amounts appropriated for the 
        National Intelligence Program.
    ``(3) The certification described in this paragraph for an 
intelligence community business system modernization is a 
certification, made by the approval authority designated by the 
Director under subsection (c)(2) to the Intelligence Community 
Business Systems Management Committee, that the intelligence 
community business system modernization--
            ``(A) complies with the enterprise architecture 
        under subsection (b); or
            ``(B) is necessary--
                    ``(i) to achieve a critical national 
                security capability or address a critical 
                requirement in an area such as safety or 
                security; or
                    ``(ii) to prevent a significant adverse 
                effect on a project that is needed to achieve 
                an essential capability, taking into 
                consideration the alternative solutions for 
                preventing such adverse effect.
    ``(4) The obligation of funds for an intelligence community 
business system modernization that does not comply with the 
requirements of this subsection shall be treated as a violation 
of section 1341(a)(1)(A) of title 31, United States Code.
    ``(b) Enterprise Architecture for Intelligence Community 
Business Systems.--(1) The Director of National Intelligence 
shall, acting through the Intelligence Community Business 
Systems Management Committee established under subsection (f), 
develop and implement an enterprise architecture to cover all 
intelligence community business systems, and the functions and 
activities supported by such business systems. The enterprise 
architecture shall be sufficiently defined to effectively 
guide, constrain, and permit implementation of interoperable 
intelligence community business system solutions, consistent 
with applicable policies and procedures established by the 
Director of the Office of Management and Budget.
    ``(2) The enterprise architecture under paragraph (1) shall 
include the following:
            ``(A) An information infrastructure that, at a 
        minimum, will enable the intelligence community to--
                    ``(i) comply with all Federal accounting, 
                financial management, and reporting 
                requirements;
                    ``(ii) routinely produce timely, accurate, 
                and reliable financial information for 
                management purposes;
                    ``(iii) integrate budget, accounting, and 
                program information and systems; and
                    ``(iv) provide for the systematic 
                measurement of performance, including the 
                ability to produce timely, relevant, and 
                reliable cost information.
            ``(B) Policies, procedures, data standards, and 
        system interface requirements that apply uniformly 
        throughout the intelligence community.
    ``(c) Responsibilities for Intelligence Community Business 
System Modernization.--(1) The Director of National 
Intelligence shall be responsible for review, approval, and 
oversight of the planning, design, acquisition, deployment, 
operation, and maintenance of an intelligence community 
business system modernization if more than 50 percent of the 
cost of the intelligence community business system 
modernization is funded by amounts appropriated for the 
National Intelligence Program.
    ``(2) The Director shall designate 1 or more appropriate 
officials of the intelligence community to be responsible for 
making certifications with respect to intelligence community 
business system modernizations under subsection (a)(3).
    ``(d) Intelligence Community Business System Investment 
Review.--(1) The approval authority designated under subsection 
(c)(2) shall establish and implement, not later than March 31, 
2008, an investment review process for the review of the 
planning, design, acquisition, development, deployment, 
operation, maintenance, modernization, project cost, benefits, 
and risks of the intelligence community business systems for 
which the approval authority is responsible.
    ``(2) The investment review process under paragraph (1) 
shall--
            ``(A) meet the requirements of section 11312 of 
        title 40, United States Code; and
            ``(B) specifically set forth the responsibilities 
        of the approval authority under such review process.
    ``(3) The investment review process under paragraph (1) 
shall include the following elements:
            ``(A) Review and approval by an investment review 
        board (consisting of appropriate representatives of the 
        intelligence community) of each intelligence community 
        business system as an investment before the obligation 
        of funds for such system.
            ``(B) Periodic review, but not less often than 
        annually, of every intelligence community business 
        system investment.
            ``(C) Thresholds for levels of review to ensure 
        appropriate review of intelligence community business 
        system investments depending on the scope, complexity, 
        and cost of the system involved.
            ``(D) Procedures for making certifications in 
        accordance with the requirements of subsection (a)(3).
            ``(E) Mechanisms to ensure the consistency of the 
        investment review process with applicable guidance 
        issued by the Director of National Intelligence and the 
        Intelligence Community Business Systems Management 
        Committee established under subsection (f).
            ``(F) Common decision criteria, including 
        standards, requirements, and priorities, for purposes 
        of ensuring the integration of intelligence community 
        business systems.
    ``(e) Budget Information.--For each fiscal year after 
fiscal year 2009, the Director of National Intelligence shall 
include in the materials the Director submits to Congress in 
support of the budget for such fiscal year that is submitted to 
Congress under section 1105 of title 31, United States Code, 
the following information:
            ``(1) An identification of each intelligence 
        community business system for which funding is proposed 
        in such budget.
            ``(2) An identification of all funds, by 
        appropriation, proposed in such budget for each such 
        system, including--
                    ``(A) funds for current services to operate 
                and maintain such system; and
                    ``(B) funds for business systems 
                modernization identified for each specific 
                appropriation.
            ``(3) For each such system, identification of 
        approval authority designated for such system under 
        subsection (c)(2).
            ``(4) The certification, if any, made under 
        subsection (a)(3) with respect to each such system.
    ``(f) Intelligence Community Business Systems Management 
Committee.--(1) The Director of National Intelligence shall 
establish an Intelligence Community Business Systems Management 
Committee (in this subsection referred to as the `Committee').
    ``(2) The Committee shall--
            ``(A) recommend to the Director policies and 
        procedures necessary to effectively integrate all 
        business activities and any transformation, reform, 
        reorganization, or process improvement initiatives 
        undertaken within the intelligence community;
            ``(B) review and approve any major update of--
                    ``(i) the enterprise architecture developed 
                under subsection (b); and
                    ``(ii) any plans for an intelligence 
                community business systems modernization;
            ``(C) manage cross-domain integration consistent 
        with such enterprise architecture;
            ``(D) be responsible for coordinating initiatives 
        for intelligence community business system 
        modernization to maximize benefits and minimize costs 
        for the intelligence community, and periodically report 
        to the Director on the status of efforts to carry out 
        an intelligence community business system 
        modernization;
            ``(E) ensure that funds are obligated for 
        intelligence community business system modernization in 
        a manner consistent with subsection (a); and
            ``(F) carry out such other duties as the Director 
        shall specify.
    ``(g) Relation to Annual Registration Requirements.--
Nothing in this section shall be construed to alter the 
requirements of section 8083 of the Department of Defense 
Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 989), 
with regard to information technology systems (as defined in 
subsection (d) of such section).
    ``(h) Relation to Defense Business Systems Architecture, 
Accountability, and Modernization Requirements.--An 
intelligence community business system that receives more than 
50 percent of its funds from amounts available for the National 
Intelligence Program shall be exempt from the requirements of 
section 2222 of title 10, United States Code.
    ``(i) Relation to Clinger-Cohen Act.--(1) The Director of 
National Intelligence and the Chief Information Officer of the 
Intelligence Community shall fulfill the executive agency 
responsibilities in chapter 113 of title 40, United States 
Code, for any intelligence community business system that 
receives more than 50 percent of its funding from amounts 
appropriated for the National Intelligence Program.
    ``(2) Any intelligence community business system covered by 
paragraph (1) shall be exempt from the requirements of such 
chapter 113 that would otherwise apply to the executive agency 
that contains the element of the intelligence community 
involved.
    ``(j) Reports.--Not later than March 15 of each of the 
years 2009 through 2014, the Director of National Intelligence 
shall submit to the congressional intelligence committees a 
report on the compliance of the intelligence community with the 
requirements of this section. Each such report shall--
            ``(1) describe actions taken and proposed for 
        meeting the requirements of subsection (a), including--
                    ``(A) specific milestones and actual 
                performance against specified performance 
                measures, and any revision of such milestones 
                and performance measures; and
                    ``(B) specific actions on the intelligence 
                community business system modernizations 
                submitted for certification under such 
                subsection;
            ``(2) identify the number of intelligence community 
        business system modernizations that received a 
        certification described in subsection (a)(3)(B); and
            ``(3) describe specific improvements in business 
        operations and cost savings resulting from successful 
        intelligence community business systems modernization 
        efforts.
    ``(k) Definitions.--In this section:
            ``(1) The term `enterprise architecture' has the 
        meaning given that term in section 3601(4) of title 44, 
        United States Code.
            ``(2) The terms `information system' and 
        `information technology' have the meanings given those 
        terms in section 11101 of title 40, United States Code.
            ``(3) The term `intelligence community business 
        system' means an information system, other than a 
        national security system, that is operated by, for, or 
        on behalf of the intelligence community, including 
        financial systems, mixed systems, financial data feeder 
        systems, and the business infrastructure capabilities 
        shared by the systems of the business enterprise 
        architecture that build upon the core infrastructure 
        used to support business activities, such as 
        acquisition, financial management, logistics, strategic 
        planning and budgeting, installations and environment, 
        and human resource management.
            ``(4) The term `intelligence community business 
        system modernization' means--
                    ``(A) the acquisition or development of a 
                new intelligence community business system; or
                    ``(B) any significant modification or 
                enhancement of an existing intelligence 
                community business system (other than necessary 
                to maintain current services).
            ``(5) The term `national security system' has the 
        meaning given that term in section 3542 of title 44, 
        United States Code.''.
            (2) Clerical amendment.--The table of contents in 
        the first section of that Act, as amended by sections 
        306 and 311 of this Act, is further amended by 
        inserting after the item relating to section 506C, as 
        added by section 311(b), the following new item:

``Sec. 506D. Intelligence community business systems, architecture, 
          accountability, and modernization.''.

    (b) Implementation.--
            (1) Certain duties.--Not later than 60 days after 
        the date of the enactment of this Act, the Director of 
        National Intelligence shall--
                    (A) complete the delegation of 
                responsibility for the review, approval, and 
                oversight of the planning, design, acquisition, 
                deployment, operation, maintenance, and 
                modernization of intelligence community 
                business systems required by subsection (c) of 
                section 506D of the National Security Act of 
                1947 (as added by subsection (a)); and
                    (B) designate a vice chairman and personnel 
                to serve on the Intelligence Community Business 
                System Management Committee established under 
                subsection (f) of such section 506D (as so 
                added).
            (2) Enterprise architecture.--
                    (A) Schedule for development.--The Director 
                shall develop the enterprise architecture 
                required by subsection (b) of such section 506D 
                (as so added) by not later than September 1, 
                2008.
                    (B) Requirement for implementation plan.--
                In developing such enterprise architecture, the 
                Director shall develop an implementation plan 
                for such enterprise architecture that includes 
                the following:
                            (i) An acquisition strategy for new 
                        systems that are expected to be needed 
                        to complete such enterprise 
                        architecture, including specific time-
                        phased milestones, performance metrics, 
                        and a statement of the financial and 
                        nonfinancial resource needs.
                            (ii) An identification of the 
                        intelligence community business systems 
                        in operation or planned as of December 
                        31, 2006, that will not be a part of 
                        such enterprise architecture, together 
                        with the schedule for the phased 
                        termination of the utilization of any 
                        such systems.
                            (iii) An identification of the 
                        intelligence community business systems 
                        in operation or planned as of December 
                        31, 2006, that will be a part of such 
                        enterprise architecture, together with 
                        a strategy for modifying such systems 
                        to ensure that such systems comply with 
                        such enterprise architecture.
                    (C) Submission of acquisition strategy.--
                The Director shall submit the acquisition 
                strategy described in subparagraph (B)(i) to 
                the congressional intelligence committees not 
                later than March 1, 2008.

SEC. 313. REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS.

    (a) In General.--Title V of the National Security Act of 
1947 (50 U.S.C. 413 et seq.), as amended by sections 306, 311, 
and 312 of this Act, is further amended by inserting after 
section 506D, as added by section 312(a)(1), the following new 
section:

             ``REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS

    ``Sec. 506E. (a) Annual Reports Required.--(1) The Director 
of National Intelligence shall submit to the congressional 
intelligence committees each year, at the same time the budget 
of the President for the fiscal year beginning in such year is 
submitted to Congress pursuant to section 1105 of title 31, 
United States Code, a separate report on each acquisition of a 
major system by an element of the intelligence community.
    ``(2) Each report under this section shall be known as a 
`Report on the Acquisition of Major Systems'.
    ``(b) Elements.--Each report under this section shall 
include, for the acquisition of a major system, information on 
the following:
            ``(1) The current total acquisition cost for such 
        system, and the history of such cost from the date the 
        system was first included in a report under this 
        section to the end of the calendar quarter immediately 
        proceeding the submittal of the report under this 
        section.
            ``(2) The current development schedule for the 
        system, including an estimate of annual development 
        costs until development is completed.
            ``(3) The planned procurement schedule for the 
        system, including the best estimate of the Director of 
        National Intelligence of the annual costs and units to 
        be procured until procurement is completed.
            ``(4) A full life-cycle cost analysis for such 
        system.
            ``(5) The result of any significant test and 
        evaluation of such major system as of the date of the 
        submittal of such report, or, if a significant test and 
        evaluation has not been conducted, a statement of the 
        reasons therefor and the results of any other test and 
        evaluation that has been conducted of such system.
            ``(6) The reasons for any change in acquisition 
        cost, or schedule, for such system from the previous 
        report under this section, if applicable.
            ``(7) The major contracts or subcontracts related 
        to the major system.
            ``(8) If there is any cost or schedule variance 
        under a contract referred to in paragraph (7) since the 
        previous report under this section, the reasons for 
        such cost or schedule variance.
    ``(c) Determination of Increase in Costs.--Any 
determination of a percentage increase in the acquisition costs 
of a major system for which a report is filed under this 
section shall be stated in terms of constant dollars from the 
first fiscal year in which funds are appropriated for such 
contract.
    ``(d) Definitions.--In this section:
            ``(1) The term `acquisition cost', with respect to 
        a major system, means the amount equal to the total 
        cost for development and procurement of, and system-
        specific construction for, such system.
            ``(2) The term `full life-cycle cost', with respect 
        to the acquisition of a major system, means all costs 
        of development, procurement, construction, deployment, 
        and operation and support for such program, without 
        regard to funding source or management control, 
        including costs of development and procurement required 
        to support or utilize such system.
            ``(3) The term `major contract,' with respect to a 
        major system acquisition, means each of the 6 largest 
        prime, associate, or government-furnished equipment 
        contracts under the program that is in excess of 
        $40,000,000 and that is not a firm, fixed price 
        contract.
            ``(4) The term `major system' has the meaning given 
        that term in section 506A(e).
            ``(5) The term `significant test and evaluation' 
        means the functional or environmental testing of a 
        major system or of the subsystems that combine to 
        create a major system.''.
    (b) Clerical Amendment.--The table of contents in the first 
section of that Act, as amended by sections 306, 311, and 312 
of this Act, is further amended by inserting after the item 
relating to section 506D, as added by section 312(a)(2), the 
following new item:

``Sec. 506E. Reports on the acquisition of major systems.''.

SEC. 314. EXCESSIVE COST GROWTH OF MAJOR SYSTEMS.

    (a) Notification.--Title V of the National Security Act of 
1947, as amended by sections 306, 311, 312, and 313 of this 
Act, is further amended by inserting after section 506E, as 
added by section 313(a), the following new section:

                ``EXCESSIVE COST GROWTH OF MAJOR SYSTEMS

    ``Sec. 506F. (a) Cost Increases of at Least 25 Percent.--
(1)(A) On a continuing basis, and separate from the submission 
of any report on a major system required by section 506E of 
this Act, the program manager shall determine if the 
acquisition cost of such major system has increased by at least 
25 percent as compared to the baseline cost of such major 
system.
    ``(B) Not later than 10 days after the date that a program 
manager determines that an increase described in subparagraph 
(A) has occurred, the program manager shall submit to the 
Director of National Intelligence notification of such 
increase.
    ``(2)(A) If, after receiving a notification described in 
paragraph (1)(B), the Director of National Intelligence 
determines that the acquisition cost of a major system has 
increased by at least 25 percent, the Director shall submit to 
the congressional intelligence committees a written 
notification of such determination as described in subparagraph 
(B), a description of the amount of the increase in the 
acquisition cost of such major system, and a certification as 
described in subparagraph (C).
    ``(B) The notification required by subparagraph (A) shall 
include--
            ``(i) an updated cost estimate;
            ``(ii) the date on which the determination covered 
        by such notification was made;
            ``(iii) contract performance assessment information 
        with respect to each significant contract or sub-
        contract related to such major system, including the 
        name of the contractor, the phase of the contract at 
        the time of the report, the percentage of work under 
        the contract that has been completed, any change in 
        contract cost, the percentage by which the contract is 
        currently ahead or behind schedule, and a summary 
        explanation of significant occurrences, such as cost 
        and schedule variances, and the effect of such 
        occurrences on future costs and schedules;
            ``(iv) the prior estimate of the full life-cycle 
        cost for such major system, expressed in constant 
        dollars and in current year dollars;
            ``(v) the current estimated full life-cycle cost of 
        such major system, expressed in constant dollars and 
        current year dollars;
            ``(vi) a statement of the reasons for any increases 
        in the full life-cycle cost of such major system;
            ``(vii) the current change and the total change, in 
        dollars and expressed as a percentage, in the full 
        life-cycle cost applicable to such major system, stated 
        both in constant dollars and current year dollars;
            ``(viii) the completion status of such major system 
        expressed as the percentage--
                    ``(I) of the total number of years for 
                which funds have been appropriated for such 
                major system compared to the number of years 
                for which it is planned that such funds will be 
                appropriated; and
                    ``(II) of the amount of funds that have 
                been appropriated for such major system 
                compared to the total amount of such funds 
                which it is planned will be appropriated;
            ``(ix) the action taken and proposed to be taken to 
        control future cost growth of such major system; and
            ``(x) any changes made in the performance or 
        schedule of such major system and the extent to which 
        such changes have contributed to the increase in full 
        life-cycle costs of such major system.
    ``(C) The certification described in this subparagraph is a 
written certification made by the Director and submitted to the 
congressional intelligence committees that--
            ``(i) the acquisition of such major system is 
        essential to the national security;
            ``(ii) there are no alternatives to such major 
        system that will provide equal or greater intelligence 
        capability at equal or lesser cost to completion;
            ``(iii) the new estimates of the full life-cycle 
        cost for such major system are reasonable; and
            ``(iv) the management structure for the acquisition 
        of such major system is adequate to manage and control 
        full life-cycle cost of such major system.
    ``(b) Cost Increases of at Least 50 Percent.--(1)(A) On a 
continuing basis, and separate from the submission of any 
report on a major system required by section 506E of this Act, 
the program manager shall determine if the acquisition cost of 
such major system has increased by at least 50 percent as 
compared to the baseline cost of such major system.
    ``(B) Not later than 10 days after the date that a program 
manager determines that an increase described in subparagraph 
(A) has occurred, the program manager shall submit to the 
Director of National Intelligence notification of such 
increase.
    ``(2) If, after receiving a notification described in 
paragraph (1)(B), the Director of National Intelligence 
determines that the acquisition cost of a major system has 
increased by at least 50 percent as compared to the baseline 
cost of such major system, the Director shall submit to the 
congressional intelligence committees a written certification 
stating that--
            ``(A) the acquisition of such major system is 
        essential to the national security;
            ``(B) there are no alternatives to such major 
        system that will provide equal or greater intelligence 
        capability at equal or lesser cost to completion;
            ``(C) the new estimates of the full life-cycle cost 
        for such major system are reasonable; and
            ``(D) the management structure for the acquisition 
        of such major system is adequate to manage and control 
        the full life-cycle cost of such major system.
    ``(3) In addition to the certification required by 
paragraph (2), the Director of National Intelligence shall 
submit to the congressional intelligence committees an updated 
notification, with current accompanying information, as 
required by subsection (a)(2).
    ``(c) Prohibition on Obligation of Funds.--(1) If a written 
certification required under subsection (a)(2)(A) is not 
submitted to the congressional intelligence committees within 
60 days of the determination made under subsection (a)(1), 
funds appropriated for the acquisition of a major system may 
not be obligated for a major contract under the program. Such 
prohibition on the obligation of funds shall cease to apply at 
the end of the 30-day period of a continuous session of 
Congress that begins on the date on which Congress receives the 
notification required under subsection (a)(2)(A).
    ``(2) If a written certification required under subsection 
(b)(2) is not submitted to the congressional intelligence 
committees within 60 days of the determination made under 
subsection (b)(2), funds appropriated for the acquisition of a 
major system may not be obligated for a major contract under 
the program. Such prohibition on the obligation of funds for 
the acquisition of a major system shall cease to apply at the 
end of the 30-day period of a continuous session of Congress 
that begins on the date on which Congress receives the 
notification required under subsection (b)(3).
    ``(d) Definitions.--In this section:
            ``(1) The term `acquisition cost' has the meaning 
        given that term in section 506E(d).
            ``(2) The term `baseline cost', with respect to a 
        major system, means the projected acquisition cost of 
        such system that is approved by the Director of 
        National Intelligence at Milestone B or an equivalent 
        acquisition decision for the development, procurement, 
        and construction of such system. The baseline cost may 
        be in the form of an independent cost estimate.
            ``(3) The term `full life-cycle cost' has the 
        meaning given that term in section 506E(d).
            ``(4) The term `independent cost estimate' has the 
        meaning given that term in section 506A(e).
            ``(5) The term `major system' has the meaning given 
        that term in section 506A(e).
            ``(6) The term `Milestone B' means a decision to 
        enter into system development and demonstration 
        pursuant to guidance prescribed by the Director of 
        National Intelligence.
            ``(7) The term `program manager', with respect to a 
        major system, means--
                    ``(A) the head of the element of the 
                intelligence community which is responsible for 
                the budget, cost, schedule, and performance of 
                the major system; or
                    ``(B) in the case of a major system within 
                the Office of the Director of National 
                Intelligence, the deputy who is responsible for 
                the budget, cost, schedule, and performance of 
                the major system.''.
    (b) Clerical Amendment.--The table of contents in the first 
section of that Act, as amended by sections 304, 311, 312, and 
313 of this Act, is further amended by inserting after the 
items relating to section 506E, as added by section 313(b), the 
following new item:

``Sec. 506F. Excessive cost growth of major systems.''.

                       Subtitle C--Other Matters

SEC. 321. 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. 322. CLARIFICATION OF DEFINITION OF INTELLIGENCE COMMUNITY UNDER 
                    THE NATIONAL SECURITY ACT OF 1947.

    Subparagraph (L) of section 3(4) of the National Security 
Act of 1947 (50 U.S.C. 401a(4)) is amended by striking 
``other'' the second place it appears.

SEC. 323. MODIFICATION OF AVAILABILITY OF FUNDS FOR DIFFERENT 
                    INTELLIGENCE ACTIVITIES.

    Subparagraph (B) of section 504(a)(3) of the National 
Security Act of 1947 (50 U.S.C. 414(a)(3)) is amended to read 
as follows:
            ``(B) the use of such funds for such activity 
        supports an emergent need, improves program 
        effectiveness, or increases efficiency; and''.

SEC. 324. PROTECTION OF CERTAIN NATIONAL SECURITY INFORMATION.

    (a) Increase in Penalties for Disclosure of Undercover 
Intelligence Officers and Agents.--
            (1) Disclosure of agent after access to information 
        identifying agent.--Subsection (a) of section 601 of 
        the National Security Act of 1947 (50 U.S.C. 421) is 
        amended by striking ``ten years'' and inserting ``15 
        years''.
            (2) Disclosure of agent after access to classified 
        information.--Subsection (b) of such section is amended 
        by striking ``five years'' and inserting ``10 years''.
    (b) Modifications to Annual Report on Protection of 
Intelligence Identities.--The first sentence of section 603(a) 
of the National Security Act of 1947 (50 U.S.C. 423(a)) is 
amended by inserting ``including an assessment of the need for 
any modification of this title for the purpose of improving 
legal protections for covert agents,'' after ``measures to 
protect the identities of covert agents,''.

SEC. 325. EXTENSION OF AUTHORITY TO DELETE INFORMATION ABOUT RECEIPT 
                    AND DISPOSITION OF FOREIGN GIFTS AND DECORATIONS.

    Paragraph (4) of section 7342(f) of title 5, United States 
Code, is amended to read as follows:
    ``(4)(A) In transmitting such listings for an element of 
the intelligence community, the head of such element may delete 
the information described in subparagraph (A) or (C) of 
paragraph (2) or in subparagraph (A) or (C) of paragraph (3) if 
the head of such element certifies in writing to the Secretary 
of State that the publication of such information could 
adversely affect United States intelligence sources or methods.
    ``(B) Any information not provided to the Secretary of 
State pursuant to the authority in subparagraph (A) shall be 
transmitted to the Director of National Intelligence who shall 
keep a record of such information.
    ``(C) In this paragraph, the term `element of the 
intelligence community' means an element of the intelligence 
community listed in or designated under section 3(4) of the 
National Security Act of 1947 (50 U.S.C. 401a(4)).''.

SEC. 326. REPORT ON COMPLIANCE WITH THE DETAINEE TREATMENT ACT OF 2005 
                    AND RELATED PROVISIONS OF THE MILITARY COMMISSIONS 
                    ACT OF 2006.

    (a) Report Required.--Not later than 45 days after the date 
of the enactment of this Act, the Director of National 
Intelligence shall submit to the congressional intelligence 
committees a comprehensive report on all measures taken by the 
Office of the Director of National Intelligence and by each 
element, if any, of the intelligence community with relevant 
responsibilities to comply with the provisions of the Detainee 
Treatment Act of 2005 (title X of division A of Public Law 109-
148; 119 Stat. 2739) and related provisions of the Military 
Commissions Act of 2006 (Public Law 109-366; 120 Stat. 2600).
    (b) Elements.--The report required by subsection (a) shall 
include the following:
            (1) A description of the detention or interrogation 
        methods, if any, that have been determined to comply 
        with section 1003 of the Detainee Treatment Act of 2005 
        (119 Stat. 2739; 42 U.S.C. 2000dd) and section 6 of the 
        Military Commissions Act of 2006 (120 Stat. 2632; 18 
        U.S.C. 2441 note) (including the amendments made by 
        such section 6), and, with respect to each such 
        method--
                    (A) an identification of the official 
                making such determination; and
                    (B) a statement of the basis for such 
                determination.
            (2) A description of the detention or interrogation 
        methods, if any, whose use has been discontinued 
        pursuant to the Detainee Treatment Act of 2005 or the 
        Military Commission Act of 2006, and, with respect to 
        each such method--
                    (A) an identification of the official 
                making the determination to discontinue such 
                method; and
                    (B) a statement of the basis for such 
                determination.
            (3) A description of any actions that have been 
        taken to implement section 1004 of the Detainee 
        Treatment Act of 2005 (119 Stat. 2740; 42 U.S.C. 
        2000dd-1), and, with respect to each such action--
                    (A) an identification of the official 
                taking such action; and
                    (B) a statement of the basis for such 
                action.
            (4) Any other matters that the Director considers 
        necessary to fully and currently inform the 
        congressional intelligence committees about the 
        implementation of the Detainee Treatment Act of 2005 
        and related provisions of the Military Commissions Act 
        of 2006.
            (5) An appendix containing--
                    (A) all guidelines for the application of 
                the Detainee Treatment Act of 2005 and related 
                provisions of the Military Commissions Act of 
                2006 to the detention or interrogation 
                activities, if any, of any element of the 
                intelligence community; and
                    (B) the legal justifications of any office 
                of the Department of Justice about the meaning 
                or application of the Detainee Treatment Act of 
                2005 or related provisions of the Military 
                Commissions Act of 2006 with respect to the 
                detention or interrogation activities, if any, 
                of any element of the intelligence community.
    (c) Form.--The report required by subsection (a) shall be 
submitted in classified form.
    (d) Submission to the Congressional Armed Services 
Committees.--To the extent that the report required by 
subsection (a) addresses an element of the intelligence 
community within the Department of Defense, that portion of the 
report, and any associated material that is necessary to make 
that portion understandable, shall also be submitted by the 
Director of National Intelligence to the congressional armed 
services committees.
    (e) Congressional Armed Services Committee Defined.--In 
this section, the term ``congressional armed services 
committees'' means--
            (1) the Committee on Armed Services of the Senate; 
        and
            (2) the Committee on Armed Services of the House of 
        Representatives.

SEC. 327. LIMITATION ON INTERROGATION TECHNIQUES.

    (a) Limitation.--No individual in the custody or under the 
effective control of an element of the intelligence community 
or instrumentality thereof, regardless of nationality or 
physical location, shall be subject to any treatment or 
technique of interrogation not authorized by the United States 
Army Field Manual on Human Intelligence Collector Operations.
    (b) Instrumentality Defined.--In this section, the term 
``instrumentality'', with respect to an element of the 
intelligence community, means a contractor or subcontractor at 
any tier of the element of the intelligence community.

SEC. 328. LIMITATION ON USE OF FUNDS.

    Not more than 30 percent of the funds authorized to be 
appropriated for the Expenditure Center referred to on page 157 
of Volume VI, Book 1 of the Fiscal Year 2008-Fiscal Year 2009 
Congressional Budget Justification, National Intelligence 
Program, may be obligated or expended until each member of the 
congressional intelligence committees has been fully and 
currently informed with respect to intelligence regarding a 
facility in Syria subject to reported military action by the 
State of Israel on September 6, 2007, including intelligence 
relating to any agent or citizen of North Korea, Iran, or any 
other foreign country present at the facility, and any 
intelligence provided to the Federal Government by a foreign 
country regarding the facility (as available).

SEC. 329. INCORPORATION OF REPORTING REQUIREMENTS.

    Each requirement to submit a report to the congressional 
intelligence committees that is included in the classified 
annex to this Act is hereby incorporated into this Act and is 
hereby made a requirement in law.

SEC. 330. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

    (a) Annual Report on Intelligence.--
            (1) Repeal.--Section 109 of the National Security 
        Act of 1947 (50 U.S.C. 404d) is repealed.
            (2) Clerical amendment.--The table of contents in 
        the first section of the National Security Act of 1947 
        is amended by striking the item relating to section 
        109.
    (b) Annual and Special Reports on Intelligence Sharing With 
the United Nations.--Section 112 of the National Security Act 
of 1947 (50 U.S.C. 404g) is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsections (c), (d), and (e) 
        as subsections (b), (c), and (d), respectively.
    (c) Annual Certification on Counterintelligence 
Initiatives.--Section 1102(b) of the National Security Act of 
1947 (50 U.S.C. 442a(b)) is amended--
            (1) by striking ``(1)''; and
            (2) by striking paragraph (2).
    (d) Report and Certification Under Terrorist Identification 
Classification System.--Section 343 of the Intelligence 
Authorization Act for Fiscal Year 2003 (50 U.S.C. 404n-2) is 
amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e), (f), (g), and 
        (h) as subsections (d), (e), (f), and (g), 
        respectively.
    (e) Annual Report on Counterdrug Intelligence Matters.--
Section 826 of the Intelligence Authorization Act for Fiscal 
Year 2003 (Public Law 107-306; 116 Stat. 2429; 21 U.S.C. 873 
note) is repealed.
    (f) Conforming Amendments.--Section 507(a) of the National 
Security Act of 1947 (50 U.S.C. 415b(a)) is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraphs (A) and (B); 
                and
                    (B) by redesignating subparagraphs (C) 
                through (N) as subparagraphs (A) through (L), 
                respectively; and
            (2) in paragraph (2), by striking subparagraph (D).

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

      Subtitle A--Office of the Director of National Intelligence

SEC. 401. CLARIFICATION OF LIMITATION ON COLOCATION OF THE OFFICE OF 
                    THE DIRECTOR OF NATIONAL INTELLIGENCE.

    Section 103(e) of the National Security Act of 1947 (50 
U.S.C. 403-3(e)) is amended--
            (1) by striking ``With'' and inserting ``of 
        Headquarters With Headquarters of'';
            (2) by inserting ``the headquarters of'' before 
        ``the Office''; and
            (3) by striking ``any other element'' and inserting 
        ``the headquarters of any other element''.

SEC. 402. MEMBERSHIP OF THE DIRECTOR OF NATIONAL INTELLIGENCE ON THE 
                    TRANSPORTATION SECURITY OVERSIGHT BOARD.

    Subparagraph (F) of section 115(b)(1) of title 49, United 
States Code, is amended to read as follows:
                    ``(F) The Director of National 
                Intelligence, or the Director's designee.''.

SEC. 403. ADDITIONAL DUTIES OF THE DIRECTOR OF SCIENCE AND TECHNOLOGY.

    Section 103E of the National Security Act of 1947 (50 
U.S.C. 403-3e) is amended--
            (1) in subsection (c)--
                    (A) by redesignating paragraph (5) as 
                paragraph (7);
                    (B) in paragraph (4), by striking ``and'' 
                at the end; and
                    (C) by inserting after paragraph (4) the 
                following:
            ``(5) assist the Director in establishing goals for 
        basic, applied, and advanced research to meet the 
        technology needs of the intelligence community and to 
        be executed by elements of the intelligence community 
        by--
                    ``(A) systematically identifying, 
                assessing, and prioritizing the most 
                significant intelligence challenges that 
                require technical solutions; and
                    ``(B) examining options to enhance the 
                responsiveness of research programs;
            ``(6) submit to Congress an annual report on the 
        science and technology strategy of the Director; and''; 
        and
            (2) in paragraph (3) of subsection (d)--
                    (A) by redesignating subparagraphs (A) and 
                (B) as subparagraphs (B) and (C), respectively;
                    (B) in subparagraph (B), as so 
                redesignated, by inserting ``and prioritize'' 
                after ``coordinate''; and
                    (C) by inserting before subparagraph (B), 
                as so redesignated, the following new 
                subparagraph:
                    ``(A) identify basic, advanced, and applied 
                research programs to be executed by elements of 
                the intelligence community;''.

SEC. 404. LEADERSHIP AND LOCATION OF CERTAIN OFFICES AND OFFICIALS.

    (a) National Counter Proliferation Center.--Section 119A(a) 
of the National Security Act of 1947 (50 U.S.C. 404o-1(a)) is 
amended--
            (1) by striking ``(a) Establishment.--Not later 
        than 18 months after the date of the enactment of the 
        National Security Intelligence Reform Act of 2004, 
        the'' and inserting the following:
    ``(a) In General.--
            ``(1) Establishment.--The''; and
            (2) by adding at the end the following new 
        paragraphs:
            ``(2) Director.--The head of the National Counter 
        Proliferation Center shall be the Director of the 
        National Counter Proliferation Center, who shall be 
        appointed by the Director of National Intelligence.
            ``(3) Location.--The National Counter Proliferation 
        Center shall be located within the Office of the 
        Director of National Intelligence.''.
    (b) Officers.--Section 103(c) of that Act (50 U.S.C. 403-
3(c)) is amended--
            (1) by redesignating paragraph (9) as paragraph 
        (13); and
            (2) by inserting after paragraph (8) the following 
        new paragraphs:
            ``(9) The Chief Information Officer of the 
        Intelligence Community.
            ``(10) The Inspector General of the Intelligence 
        Community.
            ``(11) The Director of the National 
        Counterterrorism Center.
            ``(12) The Director of the National Counter 
        Proliferation Center.''.

SEC. 405. PLAN TO IMPLEMENT RECOMMENDATIONS OF THE DATA CENTER ENERGY 
                    EFFICIENCY REPORTS.

    (a) Plan.--The Director of National Intelligence shall 
develop a plan to implement the recommendations of the report 
submitted to Congress under section 1 of the Act entitled ``An 
Act to study and promote the use of energy efficient computer 
servers in the United States'' (Public Law 109-431; 120 Stat. 
2920) across the intelligence community.
    (b) Report.--
            (1) In general.--Not later then February 1, 2008, 
        the Director of National Intelligence shall submit to 
        the congressional intelligence committees a report 
        containing the plan developed under subsection (a).
            (2) Form.--The report under paragraph (1) shall be 
        submitted in unclassified form, but may contain a 
        classified annex.

SEC. 406. COMPREHENSIVE LISTING OF SPECIAL ACCESS PROGRAMS.

    Not later than February 1, 2008, the Director of National 
Intelligence shall submit to the congressional intelligence 
committees a classified comprehensive listing of all special 
access programs under the National Intelligence Program (as 
defined in section 3(6) of the National Security Act of 1947 
(50 U.S.C. 401a(6))). Such listing may be submitted in a form 
or forms consistent with the protection of national security.

SEC. 407. REPORTS ON THE NUCLEAR PROGRAMS OF IRAN AND NORTH KOREA.

    (a) Requirement for Reports.--Not less frequently than once 
during fiscal year 2008 and twice during fiscal year 2009, the 
Director of National Intelligence shall submit to the 
congressional intelligence committees a report on the 
intentions and capabilities of the Islamic Republic of Iran and 
the Democratic People's Republic of Korea, with regard to the 
nuclear programs of each such country.
    (b) Content.--Each report submitted by subsection (a) shall 
include, with respect of the Islamic Republic of Iran and the 
Democratic People's Republic of Korea--
            (1) an assessment of nuclear weapons programs of 
        each such country;
            (2) an evaluation, consistent with existing 
        reporting standards and practices, of the sources upon 
        which the intelligence used to prepare the assessment 
        described in paragraph (1) is based, including the 
        number of such sources and an assessment of the 
        reliability of each such source;
            (3) a summary of any intelligence related to any 
        such program gathered or developed since the previous 
        report was submitted under subsection (a), including 
        intelligence collected from both open and clandestine 
        sources for each such country; and
            (4) a discussion of any dissents, caveats, gaps in 
        knowledge, or other information that would reduce 
        confidence in the assessment described in paragraph 
        (1).
    (c) National Intelligence Estimate.--The Director of 
National Intelligence may submit a National Intelligence 
Estimate on the intentions and capabilities of the Islamic 
Republic of Iran and the Democratic People's Republic of Korea 
in lieu of a report required by subsection (a).
    (d) Form.--Each report submitted under subsection (a) may 
be submitted in classified form.

SEC. 408. REQUIREMENTS FOR ACCOUNTABILITY REVIEWS BY THE DIRECTOR OF 
                    NATIONAL INTELLIGENCE.

    (a) Responsibility of the Director of National 
Intelligence.--Subsection (b) of section 102 of the National 
Security Act of 1947 (50 U.S.C. 403) is amended--
            (1) in paragraph (2), by striking ``and'' at the 
        end;
            (2) in paragraph (3)--
                    (A) by striking ``2004,'' and inserting 
                ``2004 (50 U.S.C. 403 note),''; and
                    (B) by striking the period at the end and 
                inserting a semicolon and ``and''; and
            (3) by inserting after paragraph (3), the following 
        new paragraph:
            ``(4) conduct accountability reviews of elements of 
        the intelligence community and the personnel of such 
        elements, if appropriate.''.
    (b) Tasking and Other Authorities.--Subsection (f) of 
section 102A of such Act (50 U.S.C. 403-1) is amended--
            (1) by redesignating paragraphs (7) and (8), as 
        paragraphs (8) and (9), respectively; and
            (2) by inserting after paragraph (6), the following 
        new paragraph:
    ``(7)(A) The Director of National Intelligence shall, if 
the Director determines it is necessary, or may, if requested 
by a congressional intelligence committee, conduct 
accountability reviews of elements of the intelligence 
community or the personnel of such elements in relation to 
significant failures or deficiencies within the intelligence 
community.
    ``(B) The Director of National Intelligence, in 
consultation with the Attorney General, shall establish 
guidelines and procedures for conducting accountability reviews 
under subparagraph (A).
    ``(C) The requirements of this paragraph shall not limit 
any authority of the Director of National Intelligence under 
subsection (m) or with respect to supervision of the Central 
Intelligence Agency.''.

SEC. 409. MODIFICATION OF LIMITATION ON DELEGATION BY THE DIRECTOR OF 
                    NATIONAL INTELLIGENCE OF THE PROTECTION OF 
                    INTELLIGENCE SOURCES AND METHODS.

    Section 102A(i)(3) of the National Security Act of 1947 (50 
U.S.C. 403-1(i)(3)) is amended by inserting before the period 
the following: ``or the Chief Information Officer of the 
Intelligence Community''.

SEC. 410. AUTHORITIES FOR INTELLIGENCE INFORMATION SHARING.

    (a) Authorities for Interagency Funding.--Section 
102A(g)(1) of the National Security Act of 1947 (50 U.S.C. 403-
1(g)(1)) is amended--
            (1) in subparagraph (E), by striking ``and'' at the 
        end;
            (2) in subparagraph (F), by striking the period and 
        inserting a semicolon; and
            (3) by adding at the end the following new 
        subparagraphs:
            ``(G) in carrying out this subsection, without 
        regard to any other provision of law (other than this 
        Act and the National Security Intelligence Reform Act 
        of 2004 (title I of Public Law 108-458; 118 Stat. 
        3643)), expend funds and make funds available to other 
        departments or agencies of the United States for, and 
        direct the development and fielding of, systems of 
        common concern related to the collection, processing, 
        analysis, exploitation, and dissemination of 
        intelligence information; and
            ``(H) for purposes of addressing critical gaps in 
        intelligence information sharing or access 
        capabilities, have the authority to transfer funds 
        appropriated for a program within the National 
        Intelligence Program to a program funded by 
        appropriations not within the National Intelligence 
        Program, consistent with paragraphs (3) through (7) of 
        subsection (d).''.
    (b) Authorities of Heads of Other Departments and 
Agencies.--Notwithstanding any other provision of law, the head 
of any department or agency of the United States is authorized 
to receive and utilize funds made available to the department 
or agency by the Director of National Intelligence pursuant to 
section 102A(g)(1) of the National Security Act of 1947 (50 
U.S.C. 403-1(g)(1)), as amended by subsection (a), and receive 
and utilize any system referred to in such section that is made 
available to the department or agency.
    (c) Reports.--
            (1) Requirement for reports.--Not later than 
        February 1 of each of the fiscal years 2009 through 
        2012, the Director of National Intelligence shall 
        submit to the congressional intelligence committees a 
        report detailing the distribution of funds and systems 
        during the preceding fiscal year pursuant to 
        subparagraph (G) or (H) of section 102A(g)(1) of the 
        National Security Act of 1947 (50 U.S.C. 403-1(g)(1)), 
        as added by subsection (a).
            (2) Content.--Each such report shall include--
                    (A) a listing of the agencies or 
                departments to which such funds or systems were 
                distributed;
                    (B) a description of the purpose for which 
                such funds or systems were distributed; and
                    (C) a description of the expenditure of 
                such funds, and the development, fielding, and 
                use of such systems by the receiving agency or 
                department.

SEC. 411. AUTHORITIES OF THE DIRECTOR OF NATIONAL INTELLIGENCE FOR 
                    INTERAGENCY FUNDING.

    (a) In General.--Section 102A of the National Security Act 
of 1947 (50 U.S.C. 403-1), as amended by sections 303 and 304 
of this Act, is further amended by adding at the end the 
following new subsection:
    ``(u) Authorities for Interagency Funding.--(1) 
Notwithstanding section 1346 of title 31, United States Code, 
or any other provision of law prohibiting the interagency 
financing of activities described in subparagraph (A) or (B), 
upon the request of the Director of National Intelligence, any 
element of the intelligence community may use appropriated 
funds to support or participate in the interagency activities 
of the following:
            ``(A) National intelligence centers established by 
        the Director under section 119B.
            ``(B) Boards, commissions, councils, committees, 
        and similar groups that are established--
                    ``(i) for a term of not more than 2 years; 
                and
                    ``(ii) by the Director.
    ``(2) No provision of law enacted after the date of the 
enactment of the Intelligence Authorization Act for Fiscal Year 
2008 shall be construed to limit or supersede the authority in 
paragraph (1) unless such provision makes specific reference to 
the authority in that paragraph.''.
    (b) Reports.--Not later than February 1 of each of the 
fiscal years 2009 through 2012, the Director of National 
Intelligence shall submit to the congressional intelligence 
committees a report detailing the exercise of any authority 
pursuant to subsection (u) of section 102A of the National 
Security Act of 1947 (50 U.S.C. 403-1), as amended by 
subsection (a), during the preceding fiscal year.

SEC. 412. TITLE OF CHIEF INFORMATION OFFICER OF THE INTELLIGENCE 
                    COMMUNITY.

    Section 103G of the National Security Act of 1947 (50 
U.S.C. 403-3g) is amended--
            (1) in subsection (a), by inserting ``of the 
        Intelligence Community'' after ``Chief Information 
        Officer'';
            (2) in subsection (b), by inserting ``of the 
        Intelligence Community'' after ``Chief Information 
        Officer'';
            (3) in subsection (c), by inserting ``of the 
        Intelligence Community'' after ``Chief Information 
        Officer''; and
            (4) in subsection (d), by inserting ``of the 
        Intelligence Community'' after ``Chief Information 
        Officer'' the first place it appears.

SEC. 413. INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY.

    (a) Establishment.--
            (1) In general.--Title I of the National Security 
        Act of 1947 (50 U.S.C. 402 et seq.) is amended by 
        inserting after section 103G the following new section:

           ``INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY

    ``Sec. 103H. (a) Office of Inspector General of 
Intelligence Community.--There is within the Office of the 
Director of National Intelligence an Office of the Inspector 
General of the Intelligence Community.
    ``(b) Purpose.--The purpose of the Office of the Inspector 
General of the Intelligence Community is to--
            ``(1) create an objective and effective office, 
        appropriately accountable to Congress, to initiate and 
        conduct independently investigations, inspections, and 
        audits on matters within the responsibility and 
        authority of the Director of National Intelligence;
            ``(2) recommend policies designed--
                    ``(A) to promote economy, efficiency, and 
                effectiveness in the administration and 
                implementation of matters within the 
                responsibility and authority of the Director of 
                National Intelligence; and
                    ``(B) to prevent and detect fraud and abuse 
                in such matters;
            ``(3) provide a means for keeping the Director of 
        National Intelligence fully and currently informed 
        about--
                    ``(A) problems and deficiencies relating to 
                matters within the responsibility and authority 
                of the Director of National Intelligence; and
                    ``(B) the necessity for, and the progress 
                of, corrective actions; and
            ``(4) in the manner prescribed by this section, 
        ensure that the congressional intelligence committees 
        are kept similarly informed of--
                    ``(A) significant problems and deficiencies 
                relating to matters within the responsibility 
                and authority of the Director of National 
                Intelligence; and
                    ``(B) the necessity for, and the progress 
                of, corrective actions.
    ``(c) Inspector General of Intelligence Community.--(1) 
There is an Inspector General of the Intelligence Community, 
who shall be the head of the Office of the Inspector General of 
the Intelligence Community, who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    ``(2) The nomination of an individual for appointment as 
Inspector General shall be made--
            ``(A) without regard to political affiliation;
            ``(B) solely on the basis of integrity, compliance 
        with the security standards of the intelligence 
        community, and prior experience in the field of 
        intelligence or national security; and
            ``(C) on the basis of demonstrated ability in 
        accounting, financial analysis, law, management 
        analysis, public administration, or auditing.
    ``(3) The Inspector General shall report directly to and be 
under the general supervision of the Director of National 
Intelligence.
    ``(4) The Inspector General may be removed from office only 
by the President. The President shall immediately communicate 
in writing to the congressional intelligence committees the 
reasons for the removal of any individual from the position of 
Inspector General.
    ``(d) Duties and Responsibilities.--Subject to subsections 
(g) and (h), it shall be the duty and responsibility of the 
Inspector General of the Intelligence Community--
            ``(1) to provide policy direction for, and to plan, 
        conduct, supervise, and coordinate independently, the 
        investigations, inspections, and audits relating to 
        matters within the responsibility and authority of the 
        Director of National Intelligence to ensure they are 
        conducted efficiently and in accordance with applicable 
        law and regulations;
            ``(2) to keep the Director of National Intelligence 
        fully and currently informed concerning violations of 
        law and regulations, violations of civil liberties and 
        privacy, fraud and other serious problems, abuses, and 
        deficiencies that may occur in matters within the 
        responsibility and authority of the Director, and to 
        report the progress made in implementing corrective 
        action;
            ``(3) to take due regard for the protection of 
        intelligence sources and methods in the preparation of 
        all reports issued by the Inspector General, and, to 
        the extent consistent with the purpose and objective of 
        such reports, take such measures as may be appropriate 
        to minimize the disclosure of intelligence sources and 
        methods described in such reports; and
            ``(4) in the execution of the duties and 
        responsibilities under this section, to comply with 
        generally accepted government auditing standards.
    ``(e) Limitations on Activities.--(1) The Director of 
National Intelligence may prohibit the Inspector General of the 
Intelligence Community from initiating, carrying out, or 
completing any investigation, inspection, or audit if the 
Director determines that such prohibition is necessary to 
protect vital national security interests of the United States.
    ``(2) If the Director exercises the authority under 
paragraph (1), the Director shall submit an appropriately 
classified statement of the reasons for the exercise of such 
authority within 7 days to the congressional intelligence 
committees.
    ``(3) The Director shall advise the Inspector General at 
the time a report under paragraph (2) is submitted, and, to the 
extent consistent with the protection of intelligence sources 
and methods, provide the Inspector General with a copy of such 
report.
    ``(4) The Inspector General may submit to the congressional 
intelligence committees any comments on a report of which the 
Inspector General has notice under paragraph (3) that the 
Inspector General considers appropriate.
    ``(f) Authorities.--(1) The Inspector General of the 
Intelligence Community shall have direct and prompt access to 
the Director of National Intelligence when necessary for any 
purpose pertaining to the performance of the duties of the 
Inspector General.
    ``(2)(A) The Inspector General shall have access to any 
employee, or any employee of a contractor, of any element of 
the intelligence community whose testimony is needed for the 
performance of the duties of the Inspector General.
    ``(B) The Inspector General shall have direct access to all 
records, reports, audits, reviews, documents, papers, 
recommendations, or other material which relate to the programs 
and operations with respect to which the Inspector General has 
responsibilities under this section.
    ``(C) The level of classification or compartmentation of 
information shall not, in and of itself, provide a sufficient 
rationale for denying the Inspector General access to any 
materials under subparagraph (B).
    ``(D) Failure on the part of any employee, or any employee 
of a contractor, of any element of the intelligence community 
to cooperate with the Inspector General shall be grounds for 
appropriate administrative actions by the Director or, on the 
recommendation of the Director, other appropriate officials of 
the intelligence community, including loss of employment or the 
termination of an existing contractual relationship.
    ``(3) The Inspector General is authorized to receive and 
investigate complaints or information from any person 
concerning the existence of an activity constituting a 
violation of laws, rules, or regulations, or mismanagement, 
gross waste of funds, abuse of authority, or a substantial and 
specific danger to the public health and safety. Once such 
complaint or information has been received from an employee of 
the Federal Government--
            ``(A) the Inspector General shall not disclose the 
        identity of the employee without the consent of the 
        employee, unless the Inspector General determines that 
        such disclosure is unavoidable during the course of the 
        investigation or the disclosure is made to an official 
        of the Department of Justice responsible for 
        determining whether a prosecution should be undertaken; 
        and
            ``(B) no action constituting a reprisal, or threat 
        of reprisal, for making such complaint may be taken by 
        any employee in a position to take such actions, unless 
        the complaint was made or the information was disclosed 
        with the knowledge that it was false or with willful 
        disregard for its truth or falsity.
    ``(4) The Inspector General shall have authority to 
administer to or take from any person an oath, affirmation, or 
affidavit, whenever necessary in the performance of the duties 
of the Inspector General, which oath, affirmation, or affidavit 
when administered or taken by or before an employee of the 
Office of the Inspector General of the Intelligence Community 
designated by the Inspector General shall have the same force 
and effect as if administered or taken by, or before, an 
officer having a seal.
    ``(5)(A) Except as provided in subparagraph (B), the 
Inspector General is authorized to require by subpoena the 
production of all information, documents, reports, answers, 
records, accounts, papers, and other data and documentary 
evidence necessary in the performance of the duties and 
responsibilities of the Inspector General.
    ``(B) In the case of departments, agencies, and other 
elements of the United States Government, the Inspector General 
shall obtain information, documents, reports, answers, records, 
accounts, papers, and other data and evidence for the purpose 
specified in subparagraph (A) using procedures other than by 
subpoenas.
    ``(C) The Inspector General may not issue a subpoena for, 
or on behalf of, any other element of the intelligence 
community, including the Office of the Director of National 
Intelligence.
    ``(D) In the case of contumacy or refusal to obey a 
subpoena issued under this paragraph, the subpoena shall be 
enforceable by order of any appropriate district court of the 
United States.
    ``(g) Coordination Among Inspectors General of Intelligence 
Community.--(1)(A) In the event of a matter within the 
jurisdiction of the Inspector General of the Intelligence 
Community that may be subject to an investigation, inspection, 
or audit by both the Inspector General of the Intelligence 
Community and an Inspector General, whether statutory or 
administrative, with oversight responsibility for an element or 
elements of the intelligence community, the Inspector General 
of the Intelligence Community and such other Inspector or 
Inspectors General shall expeditiously resolve the question of 
which Inspector General shall conduct such investigation, 
inspection, or audit.
    ``(B) In attempting to resolve a question under 
subparagraph (A), the Inspectors General concerned may request 
the assistance of the Intelligence Community Inspectors General 
Forum established under subparagraph (C). In the event of a 
dispute between an Inspector General within an agency or 
department of the United States Government and the Inspector 
General of the Intelligence Community that has not been 
resolved with the assistance of the Forum, the Inspectors 
General shall submit the question to the Director of National 
Intelligence and the head of the agency or department for 
resolution.
    ``(C) There is established the Intelligence Community 
Inspectors General Forum which shall consist of all statutory 
or administrative Inspectors General with oversight 
responsibility for an element or elements of the intelligence 
community. The Inspector General of the Intelligence Community 
shall serve as the chair of the Forum. The Forum shall have no 
administrative authority over any Inspector General, but shall 
serve as a mechanism for informing its members of the work of 
individual members of the Forum that may be of common interest 
and discussing questions about jurisdiction or access to 
employees, employees of a contractor, records, audits, reviews, 
documents, recommendations, or other materials that may involve 
or be of assistance to more than 1 of its members.
    ``(2) The Inspector General conducting an investigation, 
inspection, or audit covered by paragraph (1) shall submit the 
results of such investigation, inspection, or audit to any 
other Inspector General, including the Inspector General of the 
Intelligence Community, with jurisdiction to conduct such 
investigation, inspection, or audit who did not conduct such 
investigation, inspection, or audit.
    ``(h) Staff and Other Support.--(1) The Inspector General 
of the Intelligence Community shall be provided with 
appropriate and adequate office space at central and field 
office locations, together with such equipment, office 
supplies, maintenance services, and communications facilities 
and services as may be necessary for the operation of such 
offices.
    ``(2)(A) Subject to applicable law and the policies of the 
Director of National Intelligence, the Inspector General shall 
select, appoint, and employ such officers and employees as may 
be necessary to carry out the functions of the Inspector 
General. The Inspector General shall ensure that any officer or 
employee so selected, appointed, or employed has security 
clearances appropriate for the assigned duties of such officer 
or employee.
    ``(B) In making selections under subparagraph (A), the 
Inspector General shall ensure that such officers and employees 
have the requisite training and experience to enable the 
Inspector General to carry out the duties of the Inspector 
General effectively.
    ``(C) In meeting the requirements of this paragraph, the 
Inspector General shall create within the Office of the 
Inspector General of the Intelligence Community a career cadre 
of sufficient size to provide appropriate continuity and 
objectivity needed for the effective performance of the duties 
of the Inspector General.
    ``(3)(A) Subject to the concurrence of the Director, the 
Inspector General may request such information or assistance as 
may be necessary for carrying out the duties and 
responsibilities of the Inspector General from any department, 
agency, or other element of the United States Government.
    ``(B) Upon request of the Inspector General for information 
or assistance under subparagraph (A), the head of the 
department, agency, or element concerned shall, insofar as is 
practicable and not in contravention of any existing statutory 
restriction or regulation of the department, agency, or 
element, furnish to the Inspector General, or to an authorized 
designee, such information or assistance.
    ``(C) The Inspector General of the Intelligence Community 
may, upon reasonable notice to the head of any element of the 
intelligence community, conduct, as authorized by this section, 
an investigation, inspection, or audit of such element and may 
enter into any place occupied by such element for purposes of 
the performance of the duties of the Inspector General.
    ``(i) Reports.--(1)(A) The Inspector General of the 
Intelligence Community shall, not later than January 31 and 
July 31 of each year, prepare and submit to the Director of 
National Intelligence a classified, and, as appropriate, 
unclassified semiannual report summarizing the activities of 
the Office of the Inspector General of the Intelligence 
Community during the immediately preceding 6-month period 
ending December 31 (of the preceding year) and June 30, 
respectively. The Inspector General of the Intelligence 
Community shall provide any portion of the report involving a 
component of a department of the United States Government to 
the head of that department simultaneously with submission of 
the report to the Director of National Intelligence.
    ``(B) Each report under this paragraph shall include, at a 
minimum, the following:
            ``(i) A list of the title or subject of each 
        investigation, inspection, or audit conducted during 
        the period covered by such report, including a summary 
        of the progress of each particular investigation, 
        inspection, or audit since the preceding report of the 
        Inspector General under this paragraph.
            ``(ii) A description of significant problems, 
        abuses, and deficiencies relating to the administration 
        and implementation of programs and operations of the 
        intelligence community, and in the relationships 
        between elements of the intelligence community, 
        identified by the Inspector General during the period 
        covered by such report.
            ``(iii) A description of the recommendations for 
        corrective or disciplinary action made by the Inspector 
        General during the period covered by such report with 
        respect to significant problems, abuses, or 
        deficiencies identified in clause (ii).
            ``(iv) A statement whether or not corrective or 
        disciplinary action has been completed on each 
        significant recommendation described in previous 
        semiannual reports, and, in a case where corrective 
        action has been completed, a description of such 
        corrective action.
            ``(v) A certification whether or not the Inspector 
        General has had full and direct access to all 
        information relevant to the performance of the 
        functions of the Inspector General.
            ``(vi) A description of the exercise of the 
        subpoena authority under subsection (f)(5) by the 
        Inspector General during the period covered by such 
        report.
            ``(vii) Such recommendations as the Inspector 
        General considers appropriate for legislation to 
        promote economy, efficiency, and effectiveness in the 
        administration and implementation of matters within the 
        responsibility and authority of the Director of 
        National Intelligence, and to detect and eliminate 
        fraud and abuse in such matters.
    ``(C) Not later than the 30 days after the date of receipt 
of a report under subparagraph (A), the Director shall transmit 
the report to the congressional intelligence committees 
together with any comments the Director considers appropriate. 
The Director shall transmit to the committees of the Senate and 
of the House of Representatives with jurisdiction over a 
department of the United States Government any portion of the 
report involving a component of such department simultaneously 
with submission of the report to the congressional intelligence 
committees.
    ``(2)(A) The Inspector General shall report immediately to 
the Director whenever the Inspector General becomes aware of 
particularly serious or flagrant problems, abuses, or 
deficiencies relating to matters within the responsibility and 
authority of the Director of National Intelligence.
    ``(B) The Director shall transmit to the congressional 
intelligence committees each report under subparagraph (A) 
within 7 calendar days of receipt of such report, together with 
such comments as the Director considers appropriate. The 
Director shall transmit to the committees of the Senate and of 
the House of Representatives with jurisdiction over a 
department of the United States Government any portion of each 
report under subparagraph (A) that involves a problem, abuse, 
or deficiency related to a component of such department 
simultaneously with transmission of the report to the 
congressional intelligence committees.
    ``(3) In the event that--
            ``(A) the Inspector General is unable to resolve 
        any differences with the Director affecting the 
        execution of the duties or responsibilities of the 
        Inspector General;
            ``(B) an investigation, inspection, or audit 
        carried out by the Inspector General focuses on any 
        current or former intelligence community official who--
                    ``(i) holds or held a position in an 
                element of the intelligence community that is 
                subject to appointment by the President, 
                whether or not by and with the advice and 
                consent of the Senate, including such a 
                position held on an acting basis;
                    ``(ii) holds or held a position in an 
                element of the intelligence community, 
                including a position held on an acting basis, 
                that is appointed by the Director of National 
                Intelligence; or
                    ``(iii) holds or held a position as head of 
                an element of the intelligence community or a 
                position covered by subsection (b) or (c) of 
                section 106;
            ``(C) a matter requires a report by the Inspector 
        General to the Department of Justice on possible 
        criminal conduct by a current or former official 
        described in subparagraph (B);
            ``(D) the Inspector General receives notice from 
        the Department of Justice declining or approving 
        prosecution of possible criminal conduct of any current 
        or former official described in subparagraph (B); or
            ``(E) the Inspector General, after exhausting all 
        possible alternatives, is unable to obtain significant 
        documentary information in the course of an 
        investigation, inspection, or audit,
the Inspector General shall immediately notify and submit a 
report on such matter to the congressional intelligence 
committees.
    ``(4) Pursuant to title V, the Director shall submit to the 
congressional intelligence committees any report or findings 
and recommendations of an investigation, inspection, or audit 
conducted by the office which has been requested by the 
Chairman or Vice Chairman or Ranking Minority Member of either 
committee.
    ``(5)(A) An employee of an element of the intelligence 
community, an employee assigned or detailed to an element of 
the intelligence community, or an employee of a contractor to 
the intelligence community who intends to report to Congress a 
complaint or information with respect to an urgent concern may 
report such complaint or information to the Inspector General.
    ``(B) Not later than the end of the 14-calendar day period 
beginning on the date of receipt from an employee of a 
complaint or information under subparagraph (A), the Inspector 
General shall determine whether the complaint or information 
appears credible. Upon making such a determination, the 
Inspector General shall transmit to the Director a notice of 
that determination, together with the complaint or information.
    ``(C) Upon receipt of a transmittal from the Inspector 
General under subparagraph (B), the Director shall, within 7 
calendar days of such receipt, forward such transmittal to the 
congressional intelligence committees, together with any 
comments the Director considers appropriate.
    ``(D)(i) If the Inspector General does not find credible 
under subparagraph (B) a complaint or information submitted 
under subparagraph (A), or does not transmit the complaint or 
information to the Director in accurate form under subparagraph 
(B), the employee (subject to clause (ii)) may submit the 
complaint or information to Congress by contacting either or 
both of the congressional intelligence committees directly.
    ``(ii) An employee may contact the intelligence committees 
directly as described in clause (i) only if the employee--
            ``(I) before making such a contact, furnishes to 
        the Director, through the Inspector General, a 
        statement of the employee's complaint or information 
        and notice of the employee's intent to contact the 
        congressional intelligence committees directly; and
            ``(II) obtains and follows from the Director, 
        through the Inspector General, direction on how to 
        contact the intelligence committees in accordance with 
        appropriate security practices.
    ``(iii) A member or employee of 1 of the congressional 
intelligence committees who receives a complaint or information 
under clause (i) does so in that member or employee's official 
capacity as a member or employee of such committee.
    ``(E) The Inspector General shall notify an employee who 
reports a complaint or information to the Inspector General 
under this paragraph of each action taken under this paragraph 
with respect to the complaint or information. Such notice shall 
be provided not later than 3 days after any such action is 
taken.
    ``(F) An action taken by the Director or the Inspector 
General under this paragraph shall not be subject to judicial 
review.
    ``(G) In this paragraph, the term `urgent concern' means 
any of the following:
            ``(i) A serious or flagrant problem, abuse, 
        violation of law or Executive order, or deficiency 
        relating to the funding, administration, or operation 
        of an intelligence activity involving classified 
        information, but does not include differences of 
        opinions concerning public policy matters.
            ``(ii) A false statement to Congress, or a willful 
        withholding from Congress, on an issue of material fact 
        relating to the funding, administration, or operation 
        of an intelligence activity.
            ``(iii) An action, including a personnel action 
        described in section 2302(a)(2)(A) of title 5, United 
        States Code, constituting reprisal or threat of 
        reprisal prohibited under subsection (f)(3)(B) of this 
        section in response to an employee's reporting an 
        urgent concern in accordance with this paragraph.
    ``(H) In support of this paragraph, Congress makes the 
findings set forth in paragraphs (1) through (6) of section 
701(b) of the Intelligence Community Whistleblower Protection 
Act of 1998 (title VII of Public Law 105-272; 5 U.S.C. App. 8H 
note).
    ``(6) In accordance with section 535 of title 28, United 
States Code, the Inspector General shall report to the Attorney 
General any information, allegation, or complaint received by 
the Inspector General relating to violations of Federal 
criminal law that involves a program or operation of an element 
of the intelligence community, or in the relationships between 
the elements of the intelligence community, consistent with 
such guidelines as may be issued by the Attorney General 
pursuant to subsection (b)(2) of such section. A copy of each 
such report shall be furnished to the Director.
    ``(j) Separate Budget Account.--The Director of National 
Intelligence shall, in accordance with procedures to be issued 
by the Director in consultation with the congressional 
intelligence committees, include in the National Intelligence 
Program budget a separate account for the Office of Inspector 
General of the Intelligence Community.
    ``(k) Construction of Duties Regarding Elements of 
Intelligence Community.--Except as resolved pursuant to 
subsection (g), the performance by the Inspector General of the 
Intelligence Community of any duty, responsibility, or function 
regarding an element of the intelligence community shall not be 
construed to modify or effect the duties and responsibilities 
of any other Inspector General, whether statutory or 
administrative, having duties and responsibilities relating to 
such element.''.
            (2) Clerical amendment.--The table of contents in 
        the first section of the National Security Act of 1947 
        is amended by inserting after the item relating to 
        section 103G the following new item:

``Sec. 103H. Inspector General of the Intelligence Community.''.

    (b) Repeal of Superseded Authority To Establish Position.--
Section 8K of the Inspector General Act of 1978 (5 U.S.C. App.) 
is repealed.
    (c) Executive Schedule Level IV.--Section 5315 of title 5, 
United States Code, is amended by adding at the end the 
following new item:
            ``Inspector General of the Intelligence 
        Community.''.

SEC. 414. ANNUAL REPORT ON FOREIGN LANGUAGE PROFICIENCY IN THE 
                    INTELLIGENCE COMMUNITY.

    (a) Report.--
            (1) In general.--Title V of the National Security 
        Act of 1947 (50 U.S.C. 413 et seq.), as amended by 
        title III of this Act, is further amended by adding at 
        the end the following new section:

 ``REPORT ON FOREIGN LANGUAGE PROFICIENCY IN THE INTELLIGENCE COMMUNITY

    ``Sec. 508. Not later than February 1 of each year, the 
Director of National Intelligence shall submit to the 
congressional intelligence committees a report on the 
proficiency in foreign languages and, if appropriate, in 
foreign dialects of each element of the intelligence community, 
including--
            ``(1) the number of positions authorized for such 
        element that require foreign language proficiency and 
        the level of proficiency required;
            ``(2) an estimate of the number of such positions 
        that each element will require during the 5-year period 
        beginning on the date of the submission of the report;
            ``(3) the number of positions authorized for such 
        element that require foreign language proficiency that 
        are filled by--
                    ``(A) military personnel; and
                    ``(B) civilian personnel;
            ``(4) the number of applicants for positions in 
        such element in the previous fiscal year that indicated 
        foreign language proficiency, including the foreign 
        language indicated and the proficiency level;
            ``(5) the number of persons hired by such element 
        with foreign language proficiency, including the 
        foreign language and proficiency level;
            ``(6) the number of personnel of such element 
        currently attending foreign language training, 
        including the provider of such training;
            ``(7) a description of such element's efforts to 
        recruit, hire, train, and retain personnel that are 
        proficient in a foreign language;
            ``(8) an assessment of methods and models for 
        basic, advanced, and intensive foreign language 
        training;
            ``(9) for each foreign language and, where 
        appropriate, dialect of a foreign language--
                    ``(A) the number of positions of such 
                element that require proficiency in the foreign 
                language or dialect;
                    ``(B) the number of personnel of such 
                element that are serving in a position that--
                            ``(i) requires proficiency in the 
                        foreign language or dialect to perform 
                        the primary duty of the position; and
                            ``(ii) does not require proficiency 
                        in the foreign language or dialect to 
                        perform the primary duty of the 
                        position;
                    ``(C) the number of personnel of such 
                element rated at each level of proficiency of 
                the Interagency Language Roundtable;
                    ``(D) whether the number of personnel at 
                each level of proficiency of the Interagency 
                Language Roundtable meets the requirements of 
                such element;
                    ``(E) the number of personnel serving or 
                hired to serve as linguists for such element 
                that are not qualified as linguists under the 
                standards of the Interagency Language 
                Roundtable;
                    ``(F) the number of personnel hired to 
                serve as linguists for such element during the 
                preceding calendar year;
                    ``(G) the number of personnel serving as 
                linguists that discontinued serving such 
                element during the preceding calendar year;
                    ``(H) the percentage of work requiring 
                linguistic skills that is fulfilled by an ally 
                of the United States; and
                    ``(I) the percentage of work requiring 
                linguistic skills that is fulfilled by 
                contractors;
            ``(10) an assessment of the foreign language 
        capacity and capabilities of the intelligence community 
        as a whole; and
            ``(11) recommendations for eliminating required 
        reports relating to foreign-language proficiency that 
        the Director of National Intelligence considers 
        outdated or no longer relevant.''.
            (2) Report date.--Section 507(a)(1) of such Act (50 
        U.S.C. 415b(a)(1)), as amended by section 328(f) of 
        this Act, is further amended by adding at the end the 
        following new subparagraph:
            ``(M) The annual report on foreign language 
        proficiency in the intelligence community required by 
        section 508.''.
    (b) Conforming Amendment.--The table of contents in the 
first section of such Act is further amended by inserting after 
the item relating to section 507 the following new item:

``Sec. 508. Report on foreign language proficiency in the intelligence 
          community.''.

SEC. 415. DIRECTOR OF NATIONAL INTELLIGENCE REPORT ON RETIREMENT 
                    BENEFITS FOR FORMER EMPLOYEES OF AIR AMERICA.

    (a) In General.--Not later than 120 days after the date of 
the enactment of this Act, the Director of National 
Intelligence shall submit to Congress a report on the 
advisability of providing Federal retirement benefits to United 
States citizens for the service of such individuals before 1977 
as employees of Air America or an associated company while such 
company was owned or controlled by the United States Government 
and operated or managed by the Central Intelligence Agency.
    (b) Report Elements.--
            (1) In general.--The report required by subsection 
        (a) shall include the following:
            (A) The history of Air America and associated 
        companies before 1977, including a description of--
                    (i) the relationship between such companies 
                and the Central Intelligence Agency and other 
                elements of the United States Government;
                    (ii) the workforce of such companies;
                    (iii) the missions performed by such 
                companies and their employees for the United 
                States; and
                    (iv) the casualties suffered by employees 
                of such companies in the course of their 
                employment with such companies.
            (B) A description of the retirement benefits 
        contracted for or promised to the employees of such 
        companies before 1977, the contributions made by such 
        employees for such benefits, the retirement benefits 
        actually paid such employees, the entitlement of such 
        employees to the payment of future retirement benefits, 
        and the likelihood that former employees of such 
        companies will receive any future retirement benefits.
            (C) An assessment of the difference between--
                    (i) the retirement benefits that former 
                employees of such companies have received or 
                will receive by virtue of their employment with 
                such companies; and
                    (ii) the retirement benefits that such 
                employees would have received and in the future 
                receive if such employees had been, or would 
                now be, treated as employees of the United 
                States whose services while in the employ of 
                such companies had been or would now be 
                credited as Federal service for the purpose of 
                Federal retirement benefits.
            (D) Any recommendations regarding the advisability 
        of legislative action to treat employment at such 
        companies as Federal service for the purpose of Federal 
        retirement benefits in light of the relationship 
        between such companies and the United States Government 
        and the services and sacrifices of such employees to 
        and for the United States, and if legislative action is 
        considered advisable, a proposal for such action and an 
        assessment of its costs.
    (2) Other Content.--The Director of National Intelligence 
shall include in the report any views of the Director of the 
Central Intelligence Agency on the matters covered by the 
report that the Director of the Central Intelligence Agency 
considers appropriate.
    (c) Assistance of Comptroller General.--The Comptroller 
General of the United States shall, upon the request of the 
Director of National Intelligence and in a manner consistent 
with the protection of classified information, assist the 
Director in the preparation of the report required by 
subsection (a).
    (d) Form.--The report required by subsection (a) shall be 
submitted in unclassified form, but may include a classified 
annex.
    (e) Definitions.--In this section:
            (1) Air america.--The term ``Air America'' means 
        Air America, Incorporated.
            (2) Associated company.--The term ``associated 
        company'' means any company associated with or 
        subsidiary to Air America, including Air Asia Company 
        Limited and the Pacific Division of Southern Air 
        Transport, Incorporated.

SEC. 416. SPACE INTELLIGENCE.

    Section 102A of the National Security Act of 1947 (50 
U.S.C. 403-1) as amended by sections 303, 304, and 411 of this 
Act, is further amended by adding at the end the following new 
subsection:
    ``(v) Consideration of Space Intelligence.--
            ``(1) In general.--The Director of National 
        Intelligence shall require that space-intelligence 
        related issues and concerns are fully considered in 
        carrying out the authorities of the intelligence 
        community under this Act and under other provisions of 
        law, including in carrying out--
                    ``(A) the responsibilities and authorities 
                described under subsections (f), (h), and (q); 
                and
                    ``(B) the creation of policy, and in the 
                recruitment, hiring, training, and retention of 
                personnel.
            ``(2) Additional considerations.--The Director of 
        National Intelligence shall ensure that agencies give 
        due consideration to the vulnerability assessment 
        prepared for a given major system, as required in 
        section 506C of this Act, at all stages of architecture 
        and system planning, development, acquisition, 
        operation, and support of a space-intelligence 
        system.''.

SEC. 417. OPERATIONAL FILES IN THE OFFICE OF THE DIRECTOR OF NATIONAL 
                    INTELLIGENCE.

    (a) In General.--Title VII of the National Security Act of 
1947 (50 U.S.C. 431 et seq.) is amended by adding at the end 
the following new section:

     ``OPERATIONAL FILES IN THE OFFICE OF THE DIRECTOR OF NATIONAL 
                              INTELLIGENCE

    ``Sec. 706. (a) Records From Exempted Operational Files.--
(1) Any record disseminated or otherwise provided to an element 
of the Office of the Director of National Intelligence from the 
exempted operational files of elements of the intelligence 
community designated in accordance with this title, and any 
operational files created by the Office of the Director of 
National Intelligence that incorporate such record in 
accordance with subparagraph (A)(ii), shall be exempted from 
the provisions of section 552 of title 5, United States Code 
that require search, review, publication, or disclosure in 
connection therewith, in any instance in which--
            ``(A)(i) such record is shared within the Office of 
        the Director of National Intelligence and not 
        disseminated by that Office beyond that Office; or
            ``(ii) such record is incorporated into new records 
        created by personnel of the Office of the Director of 
        National Intelligence and maintained in operational 
        files of the Office of the Director of National 
        Intelligence and such record is not disseminated by 
        that Office beyond that Office; and
            ``(B) the operational files from which such record 
        has been obtained continue to remain designated as 
        operational files exempted from section 552 of title 5, 
        United States Code.
    ``(2) The operational files of the Office of the Director 
of National Intelligence referred to in paragraph (1)(A)(ii) 
shall be substantially similar in nature to the originating 
operational files from which the record was disseminated or 
provided, as such files are defined in this title.
    ``(3) Records disseminated or otherwise provided to the 
Office of the Director of National Intelligence from other 
elements of the intelligence community that are not protected 
by paragraph (1), and that are authorized to be disseminated 
beyond the Office of the Director of National Intelligence, 
shall remain subject to search and review under section 552 of 
title 5, United States Code, but may continue to be exempted 
from the publication and disclosure provisions of that section 
by the originating agency to the extent that such section 
permits.
    ``(4) Notwithstanding any other provision of this title, 
records in the exempted operational files of the Central 
Intelligence Agency, the National Geospatial-Intelligence 
Agency, the National Reconnaissance Office, the National 
Security Agency, or the Defense Intelligence Agency shall not 
be subject to the search and review provisions of section 552 
of title 5, United States Code, solely because they have been 
disseminated to an element or elements of the Office of the 
Director of National Intelligence, or referenced in operational 
files of the Office of the Director of National Intelligence 
and that are not disseminated beyond the Office of the Director 
of National Intelligence.
    ``(5) Notwithstanding any other provision of this title, 
the incorporation of records from the operational files of the 
Central Intelligence Agency, the National Geospatial-
Intelligence Agency, the National Reconnaissance Office, the 
National Security Agency, or the Defense Intelligence Agency, 
into operational files of the Office of the Director of 
National Intelligence shall not subject that record or the 
operational files of the Central Intelligence Agency, the 
National Geospatial-Intelligence Agency, the National 
Reconnaissance Office, the National Security Agency or the 
Defense Intelligence Agency to the search and review provisions 
of section 552 of title 5, United States Code.
    ``(b) Other Records.--(1) Files in the Office of the 
Director of National Intelligence that are not exempted under 
subsection (a) of this section which contain information 
derived or disseminated from exempted operational files shall 
be subject to search and review under section 552 of title 5, 
United States Code.
    ``(2) The inclusion of information from exempted 
operational files in files of the Office of the Director of 
National Intelligence that are not exempted under subsection 
(a) shall not affect the exemption of the originating 
operational files from search, review, publication, or 
disclosure.
    ``(3) Records from exempted operational files of the Office 
of the Director of National Intelligence which have been 
disseminated to and referenced in files that are not exempted 
under subsection (a), and which have been returned to exempted 
operational files of the Office of the Director of National 
Intelligence for sole retention, shall be subject to search and 
review.
    ``(c) Search and Review for Certain Purposes.--
Notwithstanding subsection (a), exempted operational files 
shall continue to be subject to search and review for 
information concerning any of the following:
            ``(1) United States citizens or aliens lawfully 
        admitted for permanent residence who have requested 
        information on themselves pursuant to the provisions of 
        section 552 or 552a of title 5, United States Code.
            ``(2) Any special activity the existence of which 
        is not exempt from disclosure under the provisions of 
        section 552 of title 5, United States Code.
            ``(3) The specific subject matter of an 
        investigation by any of the following for any 
        impropriety, or violation of law, Executive order, or 
        Presidential directive, in the conduct of an 
        intelligence activity:
                    ``(A) The Select Committee on Intelligence 
                of the Senate.
                    ``(B) The Permanent Select Committee on 
                Intelligence of the House of Representatives.
                    ``(C) The Intelligence Oversight Board.
                    ``(D) The Department of Justice.
                    ``(E) The Office of the Director of 
                National Intelligence.
                    ``(F) The Office of the Inspector General 
                of the Intelligence Community.
    ``(d) Decennial Review of Exempted Operational Files.--(1) 
Not less than once every 10 years, the Director of National 
Intelligence shall review the operational files exempted under 
subsection (a) to determine whether such files, or any portion 
of such files, may be removed from the category of exempted 
files.
    ``(2) The review required by paragraph (1) shall include 
consideration of the historical value or other public interest 
in the subject matter of the particular category of files or 
portions thereof and the potential for declassifying a 
significant part of the information contained therein.
    ``(3) A complainant that alleges that the Director of 
National Intelligence has improperly withheld records because 
of failure to comply with this subsection may seek judicial 
review in the district court of the United States of the 
district in which any of the parties reside, or in the District 
of Columbia. In such a proceeding, the court's review shall be 
limited to determining the following:
            ``(A) Whether the Director has conducted the review 
        required by paragraph (1) before the expiration of the 
        10-year period beginning on the date of the enactment 
        of the Intelligence Authorization Act for Fiscal Year 
        2008 or before the expiration of the 10-year period 
        beginning on the date of the most recent review.
            ``(B) Whether the Director of National 
        Intelligence, in fact, considered the criteria set 
        forth in paragraph (2) in conducting the required 
        review.
    ``(e) Supersedure of Other Laws.--The provisions of this 
section may not be superseded except by a provision of law that 
is enacted after the date of the enactment of this section and 
that specifically cites and repeals or modifies such 
provisions.
    ``(f) Applicability.--The Director of National Intelligence 
will publish a regulation listing the specific elements within 
the Office of the Director of National Intelligence whose 
records can be exempted from search and review under this 
section.
    ``(g) Allegation; Improper Withholding of Records; Judicial 
Review.--(1) Except as provided in paragraph (2), whenever any 
person who has requested agency records under section 552 of 
title 5, United States Code, alleges that the Office of the 
Director of National Intelligence has withheld records 
improperly because of failure to comply with any provision of 
this section, judicial review shall be available under the 
terms set forth in section 552(a)(4)(B) of title 5, United 
States Code.
    ``(2) Judicial review shall not be available in the manner 
provided for under paragraph (1) as follows:
            ``(A) In any case in which information specifically 
        authorized under criteria established by an Executive 
        order to be kept secret in the interests of national 
        defense or foreign relations is filed with, or produced 
        for, the court by the Office of the Director of 
        National Intelligence, such information shall be 
        examined ex parte, in camera by the court.
            ``(B) The court shall determine, to the fullest 
        extent practicable, the issues of fact based on sworn 
        written submissions of the parties.
            ``(C) When a complainant alleges that requested 
        records are improperly withheld because of improper 
        placement solely in exempted operational files, the 
        complainant shall support such allegation with a sworn 
        written submission based upon personal knowledge or 
        otherwise admissible evidence.
            ``(D)(i) When a complainant alleges that requested 
        records were improperly withheld because of improper 
        exemption of operational files, the Office of the 
        Director of National Intelligence shall meet its burden 
        under section 552(a)(4)(B) of title 5, United States 
        Code, by demonstrating to the court by sworn written 
        submission that exempted operational files likely to 
        contain responsive records currently meet the criteria 
        set forth in subsection (a).
            ``(ii) The court may not order the Office of the 
        Director of National Intelligence to review the content 
        of any exempted operational file or files in order to 
        make the demonstration required under clause (i), 
        unless the complainant disputes the Office's showing 
        with a sworn written submission based on personal 
        knowledge or otherwise admissible evidence.
            ``(E) In proceedings under subparagraph (C) or (D), 
        a party may not obtain discovery pursuant to rules 26 
        through 36 of the Federal Rules of Civil Procedure, 
        except that requests for admissions may be made 
        pursuant to rules 26 and 36.
            ``(F) If the court finds under this subsection that 
        the Office of the Director of National Intelligence has 
        improperly withheld requested records because of 
        failure to comply with any provision of this section, 
        the court shall order the Office to search and review 
        the appropriate exempted operational file or files for 
        the requested records and make such records, or 
        portions thereof, available in accordance with the 
        provisions of section 552 of title 5, United States 
        Code, and such order shall be the exclusive remedy for 
        failure to comply with this section.
            ``(G) If at any time following the filing of a 
        complaint pursuant to this paragraph the Office of the 
        Director of National Intelligence agrees to search the 
        appropriate exempted operational file or files for the 
        requested records, the court shall dismiss the claim 
        based upon such complaint.''.

    (b) Clerical Amendment.--The table of contents in the first 
section of the National Security Act of 1947 is amended by 
inserting after the item relating to section 705 the following 
new item:

``Sec. 706. Operational files in the Office of the Director of National 
          Intelligence.''.

SEC. 418. INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT TO ADVISORY 
                    COMMITTEES OF THE OFFICE OF THE DIRECTOR OF 
                    NATIONAL INTELLIGENCE.

    Section 4(b) of the Federal Advisory Committee Act (5 
U.S.C. App.) is amended--
            (1) in paragraph (1), by striking ``or'';
            (2) in paragraph (2), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(3) the Office of the Director of National 
        Intelligence.''.

SEC. 419. APPLICABILITY OF THE PRIVACY ACT TO THE DIRECTOR OF NATIONAL 
                    INTELLIGENCE AND THE OFFICE OF THE DIRECTOR OF 
                    NATIONAL INTELLIGENCE.

    Subsection (j) of section 552a of title 5, United States 
Code, is amended--
            (1) in paragraph (1), by striking ``or'';
            (2) by redesignating paragraph (2) as paragraph 
        (3); and
            (3) by inserting after paragraph (1) the following 
        new paragraph:
            ``(2) maintained by the Office of the Director of 
        National Intelligence; or''.

SEC. 420. REPEAL OF CERTAIN AUTHORITIES RELATING TO THE OFFICE OF THE 
                    NATIONAL COUNTERINTELLIGENCE EXECUTIVE.

    (a) Repeal of Certain Authorities.--Section 904 of the 
Counterintelligence Enhancement Act of 2002 (title IX of Public 
Law 107-306; 50 U.S.C. 402c) is amended--
            (1) by striking subsections (d), (h), (i), and (j); 
        and
            (2) by redesignating subsections (e), (f), (g), 
        (k), (l), and (m) as subsections (d), (e), (f), (g), 
        (h), and (i), respectively; and
            (3) in subsection (f), as redesignated by paragraph 
        (2), by striking paragraphs (3) and (4).
    (b) Conforming Amendments.--Such section 904 is further 
amended--
            (1) in subsection (d), as redesignated by 
        subsection (a)(2) of this section, by striking 
        ``subsection (f)'' each place it appears in paragraphs 
        (1) and (2) and inserting ``subsection (e)''; and
            (2) in subsection (e), as so redesignated--
                    (A) in paragraph (1), by striking 
                ``subsection (e)(1)'' and inserting 
                ``subsection (d)(1)''; and
                    (B) in paragraph (2), by striking 
                ``subsection (e)(2)'' and inserting 
                ``subsection (d)(2)''.

                Subtitle B--Central Intelligence Agency

SEC. 431. REVIEW OF COVERT ACTION PROGRAMS BY INSPECTOR GENERAL OF THE 
                    CENTRAL INTELLIGENCE AGENCY.

    (a) In General.--Section 503 of the National Security Act 
of 1947 (50 U.S.C. 413b) is amended by--
            (1) redesignating subsection (e) as subsection (g) 
        and transferring such subsection to the end; and
            (2) by inserting after subsection (d) the following 
        new subsection:
    ``(e) Inspector General Audits of Covert Actions.--
            ``(1) In general.--Subject to paragraph (2), the 
        Inspector General of the Central Intelligence Agency 
        shall conduct an audit of each covert action at least 
        every 3 years. Such audits shall be conducted subject 
        to the provisions of paragraphs (3) and (4) of 
        subsection (b) of section 17 of the Central 
        Intelligence Agency Act of 1949 (50 U.S.C. 403q).
            ``(2) Terminated, suspended programs.--The 
        Inspector General of the Central Intelligence Agency is 
        not required to conduct an audit under paragraph (1) of 
        a covert action that has been terminated or suspended 
        if such covert action was terminated or suspended prior 
        to the last audit of such covert action conducted by 
        the Inspector General and has not been restarted after 
        the date on which such audit was completed.
            ``(3) Report.--Not later than 60 days after the 
        completion of an audit conducted pursuant to paragraph 
        (1), the Inspector General of the Central Intelligence 
        Agency shall submit to the congressional intelligence 
        committees a report containing the results of such 
        audit.''.
    (b) Conforming Amendments.--Title V of the National 
Security Act of 1947 (50 U.S.C. 413 et seq.) is amended--
            (1) in section 501(f) (50 U.S.C. 413(f)), by 
        striking ``503(e)'' and inserting ``503(g)'';
            (2) in section 502(a)(1) (50 U.S.C. 413b(a)(1)), by 
        striking ``503(e)'' and inserting ``503(g)''; and
            (3) in section 504(c) (50 U.S.C. 414(c)), by 
        striking ``503(e)'' and inserting ``503(g)''.

SEC. 432. INAPPLICABILITY TO DIRECTOR OF THE CENTRAL INTELLIGENCE 
                    AGENCY OF REQUIREMENT FOR ANNUAL REPORT ON PROGRESS 
                    IN AUDITABLE FINANCIAL STATEMENTS.

    Section 114A of the National Security Act of 1947 (50 
U.S.C. 404i-1) is amended by striking ``the Director of the 
Central Intelligence Agency,''.

SEC. 433. ADDITIONAL FUNCTIONS AND AUTHORITIES FOR PROTECTIVE PERSONNEL 
                    OF THE CENTRAL INTELLIGENCE AGENCY.

    (a) In General.--Section 5(a)(4) of the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403f(a)(4)) is 
amended--
            (1) by inserting ``(A)'' after ``(4)'';
            (2) in subparagraph (A), as so designated--
                    (A) by striking ``and the protection'' and 
                inserting ``the protection''; and
                    (B) by striking the semicolon and inserting 
                ``, and the protection of the Director of 
                National Intelligence and such personnel of the 
                Office of the Director of National Intelligence 
                as the Director of National Intelligence may 
                designate; and''; and
            (3) by adding at the end the following new 
        subparagraph:
            ``(B) Authorize personnel engaged in the 
        performance of protective functions authorized pursuant 
        to subparagraph (A), when engaged in, and in 
        furtherance of, the performance of such functions, to 
        make arrests without warrant for any offense against 
        the United States committed in the presence of such 
        personnel, or for any felony cognizable under the laws 
        of the United States, if such personnel have reasonable 
        grounds to believe that the person to be arrested has 
        committed or is committing such felony, except that any 
        authority pursuant to this subparagraph may be 
        exercised only in accordance with guidelines approved 
        by the Director and the Attorney General and such 
        personnel may not exercise any authority for the 
        service of civil process or for the investigation of 
        criminal offenses;''.
    (b) Requirement To Report.--As soon as possible after the 
date of an exercise of authority under subparagraph (B) of 
section 5(a)(4) of the Central Intelligence Agency Act of 1949 
(50 U.S.C. 403f(a)(4)), as added by subsection (a)(3), and not 
later than 10 days after such date, the Director of the Central 
Intelligence Agency shall submit to the congressional 
intelligence committees a report describing such exercise of 
authority.

SEC. 434. TECHNICAL AMENDMENTS RELATING TO TITLES OF CERTAIN CENTRAL 
                    INTELLIGENCE AGENCY POSITIONS.

    Section 17(d)(3)(B)(ii) of the Central Intelligence Agency 
Act of 1949 (50 U.S.C. 403q(d)(3)(B)(ii)) is amended--
            (1) in subclause (I), by striking ``Executive 
        Director'' and inserting ``Associate Deputy Director'';
            (2) in subclause (II), by striking ``Deputy 
        Director for Operations'' and inserting ``Director of 
        the National Clandestine Service'';
            (3) in subclause (III), by striking ``Deputy 
        Director for Intelligence'' and inserting ``Director of 
        Intelligence'';
            (4) in subclause (IV), by striking ``Deputy 
        Director for Administration'' and inserting ``Director 
        of Support''; and
            (5) in subclause (V), by striking ``Deputy Director 
        for Science and Technology'' and inserting ``Director 
        of Science and Technology''.

SEC. 435. CLARIFYING AMENDMENTS RELATING TO SECTION 105 OF THE 
                    INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 
                    2004.

    Section 105(b) of the Intelligence Authorization Act for 
Fiscal Year 2004 (Public Law 108-177; 117 Stat. 2603; 31 U.S.C. 
311 note) is amended--
            (1) by striking ``Director of Central 
        Intelligence'' and inserting ``Director of National 
        Intelligence''; and
            (2) by inserting ``or in section 313 of such 
        title,'' after ``subsection (a)),''.

              Subtitle C--Defense Intelligence Components

SEC. 441. ENHANCEMENT OF NATIONAL SECURITY AGENCY TRAINING PROGRAM.

    Subsection (e) of section 16 of the National Security 
Agency Act of 1959 (50 U.S.C. 402 note) is amended by striking 
``(1) When an employee'' and all that follows through ``(2) 
Agency efforts'' and inserting ``Agency efforts''.

SEC. 442. CODIFICATION OF AUTHORITIES OF NATIONAL SECURITY AGENCY 
                    PROTECTIVE PERSONNEL.

    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. 21. (a) The Director of the National Security Agency 
is authorized to designate personnel of the National Security 
Agency to perform protective functions for the Director and for 
any personnel of the Agency designated by the Director.
    ``(b)(1) In the performance of protective functions under 
this section, personnel of the Agency designated to perform 
protective functions pursuant to subsection (a) are authorized, 
when engaged in, and in furtherance of, the performance of such 
functions, to make arrests without a warrant for--
            ``(A) any offense against the United States 
        committed in the presence of such personnel; or
            ``(B) any felony cognizable under the laws of the 
        United States if such personnel have reasonable grounds 
        to believe that the person to be arrested has committed 
        or is committing such felony.
    ``(2) The authority in paragraph (1) may be exercised only 
in accordance with guidelines approved by the Director and the 
Attorney General.
    ``(3) Personnel of the Agency designated to perform 
protective functions pursuant to subsection (a) shall not 
exercise any authority for the service of civil process or the 
investigation of criminal offenses.
    ``(c) Nothing in this section shall be construed to impair 
or otherwise affect any authority under any other provision of 
law relating to the performance of protective functions.
    ``(d) As soon as possible after the date of an exercise of 
authority under this section and not later than 10 days after 
such date, the Director shall submit to the congressional 
intelligence committees a report describing such exercise of 
authority.
    ``(e) 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. 443. INSPECTOR GENERAL MATTERS.

    (a) Coverage Under Inspector General Act of 1978.--
Subsection (a)(2) of section 8G of the Inspector General Act of 
1978 (5 U.S.C. App. 8G) is amended--
            (1) by inserting ``the Defense Intelligence 
        Agency,'' after ``the Corporation for Public 
        Broadcasting,'';
            (2) by inserting ``the National Geospatial-
        Intelligence Agency,'' after ``the National Endowment 
        for the Humanities,''; and
            (3) by inserting ``the National Reconnaissance 
        Office, the National Security Agency,'' after ``the 
        National Labor Relations Board,''.
    (b) Certain Designations Under Inspector General Act of 
1978.--Subsection (a) of section 8H of the Inspector General 
Act of 1978 (5 U.S.C. App. 8H) is amended by adding at the end 
the following new paragraph:
    ``(3) The Inspectors General of the Defense Intelligence 
Agency, the National Geospatial-Intelligence Agency, the 
National Reconnaissance Office, and the National Security 
Agency shall be designees of the Inspector General of the 
Department of Defense for purposes of this section.''.
    (c) Power of Heads of Elements Over Investigations.--
Subsection (d) of section 8G of that Act--
            (1) by inserting ``(1)'' after ``(d)'';
            (2) in the second sentence of paragraph (1), as 
        designated by paragraph (1) of this subsection, by 
        striking ``The head'' and inserting ``Except as 
        provided in paragraph (2), the head''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(2)(A) The Secretary of Defense, in consultation with the 
Director of National Intelligence, may prohibit the Inspector 
General of an element of the intelligence community specified 
in subparagraph (D) from initiating, carrying out, or 
completing any audit or investigation if the Secretary 
determines that the prohibition is necessary to protect vital 
national security interests of the United States.
    ``(B) If the Secretary exercises the authority under 
subparagraph (A), the Secretary shall submit to the committees 
of Congress specified in subparagraph (E) an appropriately 
classified statement of the reasons for the exercise of the 
authority not later than 7 days after the exercise of the 
authority.
    ``(C) At the same time the Secretary submits under 
subparagraph (B) a statement on the exercise of the authority 
in subparagraph (A) to the committees of Congress specified in 
subparagraph (E), the Secretary shall notify the Inspector 
General of such element of the submittal of such statement and, 
to the extent consistent with the protection of intelligence 
sources and methods, provide the Inspector General with a copy 
of such statement. The Inspector General may submit to such 
committees of Congress any comments on a notice or statement 
received by the Inspector General under this subparagraph that 
the Inspector General considers appropriate.
    ``(D) The elements of the intelligence community specified 
in this subparagraph are as follows:
            ``(i) The Defense Intelligence Agency.
            ``(ii) The National Geospatial-Intelligence Agency.
            ``(iii) The National Reconnaissance Office.
            ``(iv) The National Security Agency.
    ``(E) The committees of Congress specified in this 
subparagraph are--
            ``(i) the Committee on Armed Services and the 
        Select Committee on Intelligence of the Senate; and
            ``(ii) the Committee on Armed Services and the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives.''.

SEC. 444. CONFIRMATION OF APPOINTMENT OF HEADS OF CERTAIN COMPONENTS OF 
                    THE INTELLIGENCE COMMUNITY.

    (a) Director of National Security Agency.--The National 
Security Agency Act of 1959 (50 U.S.C. 402 note) is amended by 
inserting after the first section the following new section:
    ``Sec. 2. (a) There is a Director of the National Security 
Agency.
    ``(b) The Director of the National Security Agency shall be 
appointed by the President, by and with the advice and consent 
of the Senate.
    ``(c) The Director of the National Security Agency shall be 
the head of the National Security Agency and shall discharge 
such functions and duties as are provided by this Act or 
otherwise by law.''.
    (b) Director of National Reconnaissance Office.--The 
Director of the National Reconnaissance Office shall be 
appointed by the President, by and with the advice and consent 
of the Senate.
    (c) Positions of Importance and Responsibility.--
            (1) Designation of positions.--The President may 
        designate any of the positions referred to in paragraph 
        (2) as positions of importance and responsibility under 
        section 601 of title 10, United States Code.
            (2) Covered positions.--The positions referred to 
        in this paragraph are as follows:
                    (A) The Director of the National Security 
                Agency.
                    (B) The Director of the National 
                Reconnaissance Office.
    (d) Effective Date and Applicability.--The amendments made 
by subsections (a) and (b) shall take effect on the date of the 
enactment of this Act and shall apply upon the earlier of--
            (1) the date of the nomination by the President of 
        an individual to serve in the position concerned, 
        except that the individual serving in such position as 
        of the date of the enactment of this Act may continue 
        to perform such duties after such date of nomination 
        and until the individual appointed to such position, by 
        and with the advice and consent of the Senate, assumes 
        the duties of such position; or
            (2) the date of the cessation of the performance of 
        the duties of such position by the individual 
        performing such duties as of the date of the enactment 
        of this Act.

SEC. 445. CLARIFICATION OF NATIONAL SECURITY MISSIONS OF NATIONAL 
                    GEOSPATIAL-INTELLIGENCE AGENCY FOR ANALYSIS AND 
                    DISSEMINATION OF CERTAIN INTELLIGENCE INFORMATION.

    Section 442(a) of title 10, United States Code, is 
amended--
            (1) by redesignating paragraph (2) as paragraph 
        (3);
            (2) by inserting after paragraph (1) the following 
        new paragraph (2):
    ``(2)(A) As directed by the Director of National 
Intelligence, the National Geospatial-Intelligence Agency shall 
also develop a system to facilitate the analysis, 
dissemination, and incorporation of likenesses, videos, and 
presentations produced by ground-based platforms, including 
handheld or clandestine photography taken by or on behalf of 
human intelligence collection organizations or available as 
open-source information, into the National System for 
Geospatial Intelligence.
    ``(B) The authority provided by this paragraph does not 
include authority for the National Geospatial-Intelligence 
Agency to manage tasking of handheld or clandestine photography 
taken by or on behalf of human intelligence collection 
organizations.''; and
            (3) in paragraph (3), as so redesignated, by 
        striking ``paragraph (1)'' and inserting ``paragraphs 
        (1) and (2)''.

SEC. 446. SECURITY CLEARANCES IN THE NATIONAL GEOSPATIAL-INTELLIGENCE 
                    AGENCY.

    The Secretary of Defense shall, during the period beginning 
on the date of the enactment of this Act and ending on December 
31, 2008, delegate to the Director of the National Geospatial-
Intelligence Agency personnel security authority with respect 
to the National Geospatial-Intelligence Agency (including 
authority relating to the use of contractor personnel in 
investigations and adjudications for security clearances) that 
is identical to the personnel security authority of the 
Director of the National Security Agency with respect to the 
National Security Agency.

                       Subtitle D--Other Elements

SEC. 451. CLARIFICATION OF INCLUSION OF COAST GUARD AND DRUG 
                    ENFORCEMENT ADMINISTRATION AS ELEMENTS OF THE 
                    INTELLIGENCE COMMUNITY.

    Section 3(4) of the National Security Act of 1947 (50 
U.S.C. 401a(4)) is amended--
            (1) in subparagraph (H)--
                    (A) by inserting ``the Coast Guard,'' after 
                ``the Marine Corps,''; and
                    (B) by inserting ``the Drug Enforcement 
                Administration,'' after ``the Federal Bureau of 
                Investigation,''; and
            (2) in subparagraph (K), by striking ``, including 
        the Office of Intelligence of the Coast Guard''.

                         TITLE V--OTHER MATTERS

                Subtitle A--General Intelligence Matters

SEC. 501. EXTENSION OF NATIONAL COMMISSION FOR THE REVIEW OF THE 
                    RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED 
                    STATES INTELLIGENCE COMMUNITY.

    (a) Extension.--
            (1) In general.--Subsection (a) of section 1007 of 
        the Intelligence Authorization Act for Fiscal Year 2003 
        (Public Law 107-306; 116 Stat. 2442) is amended by 
        striking ``September 1, 2004'' and inserting ``December 
        31, 2008''.
            (2) Effective date.--Subject to paragraph (3), the 
        amendment made by paragraph (1) shall take effect as if 
        included in the enactment of such section 1007.
            (3) Commission membership.--
                    (A) In general.--The membership of the 
                National Commission for the Review of the 
                Research and Development Programs of the United 
                States Intelligence Community established under 
                subsection (a) of section 1002 of such Act 
                (Public Law 107-306; 116 Stat. 2438) (referred 
                to in this section as the ``Commission'') shall 
                be considered vacant and new members shall be 
                appointed in accordance with such section 1002, 
                as amended by subparagraph (B).
                    (B) Technical amendment.--Paragraph (1) of 
                subsection (b) of such section 1002 is amended 
                by striking ``The Deputy Director of Central 
                Intelligence for Community Management.'' and 
                inserting ``The Principal Deputy Director of 
                National Intelligence.''.
    (b) Funding.--
            (1) In general.--Of the amounts authorized to be 
        appropriated by this Act for the Intelligence Community 
        Management Account, the Director of National 
        Intelligence shall make $2,000,000 available to the 
        Commission to carry out title X of the Intelligence 
        Authorization Act for Fiscal Year 2003 (Public Law 107-
        306; 116 Stat. 2437).
            (2) Availability.--Amounts made available to the 
        Commission pursuant to paragraph (1) shall remain 
        available until expended.

SEC. 502. REPORT ON INTELLIGENCE ACTIVITIES.

    Not later than 120 days after the date of the enactment of 
this Act, the Director of National Intelligence shall submit to 
the congressional intelligence committees a report describing 
authorizations, if any, granted during the 10-year period 
ending on the date of the enactment of this Act to engage in 
intelligence activities related to the overthrow of a 
democratically elected government.

SEC. 503. AERIAL RECONNAISSANCE PLATFORMS.

    Section 133(b) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
Stat. 2112) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``After fiscal year 2007'' 
                and inserting ``For each fiscal year after 
                fiscal year 2007''; and
                    (B) by inserting ``, in that fiscal year,'' 
                after ``Secretary of Defense''; and
            (2) in paragraph (2)--
                    (A) by inserting ``in a fiscal year'' after 
                ``Department of Defense''; and
                    (B) by inserting ``in that fiscal year'' 
                after ``Congress''.

                    Subtitle B--Technical Amendments

SEC. 511. TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES CODE, ARISING 
                    FROM ENACTMENT OF THE INTELLIGENCE REFORM AND 
                    TERRORISM PREVENTION ACT OF 2004.

    (a) References to Head of Intelligence Community.--Title 
10, United States Code, is amended by striking ``Director of 
Central Intelligence'' each place it appears and inserting 
``Director of National Intelligence'' in the following:
            (1) Section 193(d)(2).
            (2) Section 193(e).
            (3) Section 201(a).
            (4) Section 201(b)(1).
            (5) Section 201(c)(1).
            (6) Section 425(a).
            (7) Section 431(b)(1).
            (8) Section 441(c).
            (9) Section 441(d).
            (10) Section 443(d).
            (11) Section 2273(b)(1).
            (12) Section 2723(a).
    (b) Clerical Amendments.--Such title is further amended by 
striking ``Director of Central Intelligence'' each place it 
appears and inserting ``Director of National Intelligence'' in 
the following:
            (1) Section 441(c).
            (2) Section 443(d).
    (c) Reference to Head of Central Intelligence Agency.--
Section 444 of such title is amended by striking ``Director of 
Central Intelligence'' each place it appears and inserting 
``Director of the Central Intelligence Agency''.

SEC. 512. TECHNICAL AMENDMENT TO THE CENTRAL INTELLIGENCE AGENCY ACT OF 
                    1949.

    Section 5(a)(1) of the Central Intelligence Agency Act of 
1949 (50 U.S.C. 403f(a)(1)) is amended by striking ``authorized 
under paragraphs (2) and (3) of section 102(a), subsections 
(c)(7) and (d) of section 103, subsections (a) and (g) of 
section 104, and section 303 of the National Security Act of 
1947 (50 U.S.C. 403(a)(2), (3), 403-3(c)(7), (d), 403-4(a), 
(g), and 405)'' and inserting ``authorized under section 104A 
of the National Security Act of 1947 (50 U.S.C. 403-4a).''.

SEC. 513. TECHNICAL AMENDMENTS RELATING TO THE MULTIYEAR NATIONAL 
                    INTELLIGENCE PROGRAM.

    (a) In General.--Subsection (a) of section 1403 of the 
National Defense Authorization Act for Fiscal Year 1991 (50 
U.S.C. 404b) is amended--
            (1) in the heading, by striking ``Foreign''; and
            (2) by striking ``foreign'' each place it appears.
    (b) Responsibility of Director of National Intelligence.--
That section is further amended--
            (1) in subsections (a) and (c), by striking 
        ``Director of Central Intelligence'' and inserting 
        ``Director of National Intelligence''; and
            (2) in subsection (b), by inserting ``of National 
        Intelligence'' after ``Director''.
    (c) Conforming Amendment.--The heading of that section is 
amended to read as follows:

``SEC. 1403. MULTIYEAR NATIONAL INTELLIGENCE PROGRAM.''.

SEC. 514. TECHNICAL CLARIFICATION OF CERTAIN REFERENCES TO JOINT 
                    MILITARY INTELLIGENCE PROGRAM AND TACTICAL 
                    INTELLIGENCE AND RELATED ACTIVITIES.

    Section 102A of the National Security Act of 1947 (50 
U.S.C. 403-1) is amended--
            (1) in subsection (c)(3)(A), by striking ``annual 
        budgets for the Joint Military Intelligence Program and 
        for Tactical Intelligence and Related Activities'' and 
        inserting ``annual budget for the Military Intelligence 
        Program or any successor program or programs''; and
            (2) in subsection (d)(1)(B), by striking ``Joint 
        Military Intelligence Program'' and inserting 
        ``Military Intelligence Program or any successor 
        program or programs''.

SEC. 515. TECHNICAL AMENDMENTS TO THE NATIONAL SECURITY ACT OF 1947.

    The National Security Act of 1947 (50 U.S.C. 401 et seq.) 
is amended as follows:
            (1) In section 102A (50 U.S.C. 403-1)--
                    (A) in subsection (d)--
                            (i) in paragraph (3), by striking 
                        ``subparagraph (A)'' in the matter 
                        preceding subparagraph (A) and 
                        inserting ``paragraph (1)(A)'';
                            (ii) in paragraph (5)(A), by 
                        striking ``or personnel'' in the matter 
                        preceding clause (i); and
                            (iii) in paragraph (5)(B), by 
                        striking ``or agency involved'' in the 
                        second sentence and inserting 
                        ``involved or the Director of the 
                        Central Intelligence Agency (in the 
                        case of the Central Intelligence 
                        Agency)'';
                    (B) in subsection (l)(2)(B), by striking 
                ``section'' and inserting ``paragraph''; and
                    (C) in subsection (n), by inserting ``and 
                Other'' after ``Acquisition''.
            (2) In section 119(c)(2)(B) (50 U.S.C. 
        404o(c)(2)(B)), by striking ``subsection (h)'' and 
        inserting ``subsection (i)''.
            (3) In section 705(e)(2)(D)(i) (50 U.S.C. 
        432c(e)(2)(D)(i)), by striking ``responsible'' and 
        inserting ``responsive''.

SEC. 516. TECHNICAL AMENDMENTS TO THE INTELLIGENCE REFORM AND TERRORISM 
                    PREVENTION ACT OF 2004.

    (a) Amendments to National Security Intelligence Reform Act 
of 2004.--The National Security Intelligence Reform Act of 2004 
(title I of Public Law 108-458; 118 Stat. 3643) is amended as 
follows:
            (1) In section 1016(e)(10)(B) (6 U.S.C. 
        485(e)(10)(B)), by striking ``Attorney General'' the 
        second place it appears and inserting ``Department of 
        Justice''.
            (2) In section 1071(e), by striking ``(1)''.
            (3) In section 1072(b), in the subsection heading 
        by inserting ``Agency'' after ``Intelligence''.
    (b) Other Amendments to Intelligence Reform and Terrorism 
Prevention Act of 2004.--The Intelligence Reform and Terrorism 
Prevention Act of 2004 (Public Law 108-458; 118 Stat. 3638) is 
amended as follows:
            (1) In section 2001 (28 U.S.C. 532 note)--
                    (A) in subsection (c)(1), by inserting 
                ``of'' before ``an institutional culture'';
                    (B) in subsection (e)(2), by striking ``the 
                National Intelligence Director in a manner 
                consistent with section 112(e)'' and inserting 
                ``the Director of National Intelligence in a 
                manner consistent with applicable law''; and
                    (C) in subsection (f), by striking 
                ``shall,'' in the matter preceding paragraph 
                (1) and inserting ``shall''.
            (2) In section 2006 (28 U.S.C. 509 note)--
                    (A) in paragraph (2), by striking ``the 
                Federal'' and inserting ``Federal''; and
                    (B) in paragraph (3), by striking ``the 
                specific'' and inserting ``specific''.

SEC. 517. TECHNICAL AMENDMENTS TO THE EXECUTIVE SCHEDULE.

    (a) Executive Schedule Level II.--Section 5313 of title 5, 
United States Code, is amended by striking the item relating to 
the Director of Central Intelligence and inserting the 
following new item:
        ``Director of the Central Intelligence Agency.''.
    (b) Executive Schedule Level III.--Section 5314 of title 5, 
United States Code, is amended by striking the item relating to 
the Deputy Directors of Central Intelligence and inserting the 
following new item:
        ``Deputy Director of the Central Intelligence 
        Agency.''.
    (c) Executive Schedule Level IV.--Section 5315 of title 5, 
United States Code, is amended by striking the item relating to 
the General Counsel of the Office of the National Intelligence 
Director and inserting the following new item:
        ``General Counsel of the Office of the Director of 
        National Intelligence.''.
    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:
                                   Silvestre Reyes,
                                   Alcee L. Hastings,
                                   Leonard L. Boswell,
                                   Bud Cramer,
                                   Anna G. Eshoo,
                                   Rush Holt,
                                   C.A. Ruppersberger,
                                   Mike Thompson,
                                   Janice Schakowsky,
                                   James R. Langevin,
                                   Patrick J. Murphy.
                From the Committee on Armed Services, for 
                consideration of defense tactical intelligence 
                and related activities:
                                   Ike Skelton,
                                   John M. Spratt, Jr.,
                                 Managers on the Part of the House.

                                   John Rockefeller,
                                   Dianne Feinstein,
                                   Ron Wyden,
                                   Evan Bayh,
                                   Barbara A. Mikulski,
                                   Russell D. Feingold,
                                   Bill Nelson,
                                   Sheldon Whitehouse,
                                   Chuck Hagel,
                                   Olympia J. Snowe,
                As additional conferee:
                                   Carl Levin,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the Senate and the House at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 2082), to 
authorize appropriations for fiscal year 2008 for 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, 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 classified nature of United States intelligence 
activities precludes disclosure of details of budgetary 
recommendations in this conference report. The managers have 
therefore prepared a classified supplement to this conference 
report that contains the classified annex to this conference 
report and the classified Schedule of Authorizations.
      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. 2082 and S. 1538, should 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. 
2082.
      The Senate amendment struck all of the House bill 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--BUDGET AND PERSONNEL AUTHORIZATIONS

Section 101. Authorization of appropriations
      Section 101 of the conference report authorizes 
appropriations for fiscal year 2008 for the intelligence and 
intelligence-related activities of a list of United States 
Government departments, agencies, and other elements. Section 
101 is identical to Section 101 of the House bill, and similar 
to Section 101 of the Senate amendment.
Section 102. Classified schedule of authorizations
      Section 102 provides that the details of the amounts 
authorized to be appropriated under Section 101 for 
intelligence and intelligence-related activities for fiscal 
year 2008, and (subject to Section 103) the personnel ceilings 
authorized for fiscal year 2008, are contained in the 
classified Schedule of Authorizations. The Schedule of 
Authorizations will be made available to the Committees on 
Appropriations of the Senate and House of Representatives and 
to the President.
      Section 102 is similar to Section 102 of the House bill. 
Section 102 of the Senate amendment had provided that personnel 
authorizations for the Intelligence Community would be in terms 
of personnel levels, expressed as full-time equivalent 
positions, rather than personnel ceilings, as in the House bill 
and prior intelligence authorizations. The conferees followed 
the House in this regard, but established in Section 103 an 
authority during fiscal year 2008 for the management of the 
personnel authorized under Section 102 as full-time 
equivalents.
Section 103. Personnel ceiling adjustments
      Section 103 provides procedures to enhance the 
flexibility of the Director of National Intelligence (``DNI'') 
to manage the personnel levels of the Intelligence Community.
      Section 103(a) allows the DNI, with the approval of the 
Director of the Office of Management and Budget (``OMB''), to 
authorize employment of civilian personnel in excess of the 
number authorized under Section 102 by an amount not to exceed 
three percent of the total limit applicable to each 
Intelligence Community element. Before the DNI may authorize 
this increase, the DNI must determine that the action is 
necessary to the performance of important intelligence 
functions and notify the congressional intelligence committees. 
Section 103 of the Senate amendment had provided that this 
authority could extend to five percent. Section 103 of the 
House bill had set the additional amount at two percent. The 
conference agreement of three percent is part of a package of 
personnel flexibility mechanisms in Section 103.
      Section 103(b) provides for a one-year transition in the 
description of the personnel authorization in the annual 
intelligence authorization, and the subsequent implementation 
of that authorization by the DNI, from ``personnel ceilings'' 
to ``personnel levels expressed as full-time equivalent 
positions.'' Although the DNI has not previously managed 
Intelligence Community personnel limits in terms of full-time 
equivalent positions, the conferees have determined that the 
DNI should use this practice in the future to plan and manage 
personnel levels within the Intelligence Community. The use of 
full-time equivalent positions will allow Intelligence 
Community elements to plan for and manage its workforce based 
on overall hours of work, rather than number of employees, as a 
truer measure of personnel levels. This approach is consistent 
with general governmental practice and will provide the DNI and 
Congress with a more accurate measurement of personnel levels. 
For example, it will enable Intelligence Community elements to 
count two half-time employees as holding the equivalent of one 
full-time position, rather than counting them as two employees 
against a ceiling.
      To provide the DNI with time to address any difficulties 
arising from counting by full-time equivalent positions rather 
than personnel levels, the conferees agreed that Sections 102 
and 103 would allow, but do not require, the DNI to manage 
personnel levels by full-time equivalent positions in fiscal 
year 2008. One aspect of this transition will be the 
consideration of the manner in which elements of the 
Intelligence Community account for (or presently fail to 
account for) a variety of part-time arrangements. These 
include, but are not limited to, the circumstances set forth in 
paragraph (2) of subsection 103(b): student or trainee 
programs; reemployment of annuitants in the National 
Intelligence Reserve Corps; joint duty rotational assignments; 
and other full-time or part-time positions.
      During their consideration of the DNI's request for 
authority to manage personnel as full-time equivalents, the 
congressional intelligence committees have learned that 
practices within the Intelligence Community on the counting of 
personnel are inconsistent, and include not counting certain 
personnel at all against personnel ceilings. The discretionary 
authority that is granted to the DNI during fiscal year 2008 
will permit the DNI to authorize Intelligence Community 
elements to continue (but not expand) for this one additional 
fiscal year their existing methods of counting, or not 
counting, part-time employees against personnel ceilings, while 
ensuring that by the beginning of fiscal year 2009 there is a 
uniform and accurate method of counting all Intelligence 
Community employees under a system of personnel levels 
expressed as full-time equivalents. To ensure that the 
transition is complete by the beginning of fiscal year 2009, 
paragraph (4) of Section 103(b) provides that the DNI shall 
express the personnel level for all civilian employees of the 
Intelligence Community as full-time equivalent positions in the 
congressional budget justifications for that fiscal year.
      Section 103(c) establishes authority that will enable the 
DNI to reduce the number of Intelligence Community contractors 
by providing the flexibility to add a comparable number of 
government personnel to replace those contractor employees. 
Section 103(c) accomplishes this by permitting the DNI to 
authorize employment of additional personnel if the head of an 
element in the Intelligence Community determines that 
activities currently being performed by contractor employees 
should be performed by government employees, the DNI agrees 
with the determination, and the Director of OMB approves. The 
DNI may not authorize this for more than ten percent of the 
total number of personnel authorized for each element of the 
Intelligence Community under Section 102, except that within 
the Office of the DNI that limit shall be five percent. Section 
103(c) is similar to Section 103(b) of the Senate amendment. 
The House bill did not have a similar provision. The percentage 
limits on the authority are part of the conferees' agreement.
      Section 103(d) provides for notifications to the 
congressional intelligence committees of the exercise of 
authority under Sections 103(a) and 103(d).
Section 104. Intelligence Community Management Account
      Section 104 authorizes the sum of $734,126,000 in fiscal 
year 2008 for the Intelligence Community Management Account of 
the Director of National Intelligence. The Intelligence 
Community Management Account is part of the Community 
Management Account. The section authorizes 952 full-time or 
full-time equivalent personnel for the Intelligence Community 
Management Account, who may be either permanent employees or 
individuals detailed from other elements of the United States 
Government. Section 104 also authorizes additional funds and 
personnel in the classified Schedule of Authorizations for the 
Community Management Account. Section 104 is similar to Section 
104 of the Senate amendment and Section 104 of the House bill.
      As in Section 104 of the Senate amendment, the DNI may 
use the authorities in Section 103 to adjust personnel levels 
in elements within the Intelligence Community Management 
Account, subject to the limitations in that section.
      Section 104 also authorizes funds from the Intelligence 
Community Management Account for the National Drug Intelligence 
Center (``NDIC''). These funds may not be used for purposes of 
exercising police, subpoena, or law enforcement powers or 
internal security functions. This provision authorizing funds 
for NDIC was included in Section 104 of the House bill, but was 
not included in Section 104 of the Senate amendment.
Section 105. Specific authorization of funds within the National 
        Intelligence Program for which fiscal year 2008 appropriations 
        exceed amounts authorized
      Section 105 authorizes, solely for the purposes of 
reprogramming under Section 504(a)(3) of the National Security 
Act of 1947 (50 U.S.C. 414(a)(3)), those funds appropriated 
within the National Intelligence Program in fiscal year 2008 in 
excess of the amount specified for such activity in the 
classified Schedule of Authorizations (as described in greater 
detail in the Classified Annex) to accompany this conference 
report. Under this authority, funds appropriated for a specific 
purpose but not authorized for that purpose will still be 
available for use by the Intelligence Community but can be 
applied only to other intelligence activities within the 
National Intelligence Program under established reprogramming 
procedures.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Section 201. Authorization of appropriations
      Section 201 authorizes appropriations of $262,500,000 for 
the Central Intelligence Agency Retirement and Disability Fund. 
Section 201 of the House bill and Section 201 of the Senate 
amendment are identical.
Section 202. Technical modification to mandatory retirement provision 
        of Central Intelligence Agency Retirement Act
      Section 202 updates the Central Intelligence Agency 
Retirement Act to reflect the use of pay levels within the 
Senior Intelligence Service program, rather than pay grades, by 
the Central Intelligence Agency (``CIA''). Section 202 is 
identical to Section 202 of the Senate amendment, and 
substantially similar to Section 202 of the House bill.

           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

                     Subtitle A--Personnel Matters

Section 301. Increase in employee compensation and benefits authorized 
        by law
      Section 301 provides that funds authorized to be 
appropriated by this Act for salary, pay, retirement, and other 
benefits for federal employees may be increased by such 
additional or supplemental amounts as may be necessary for 
increases in compensation or benefits authorized by law. 
Section 301 is identical to Section 301 of the Senate amendment 
and the House bill.
Section 302. Enhanced flexibility in non-reimbursable details to 
        elements of the Intelligence Community
      Section 302 expands from one year to up to two years the 
length of time that United States Government personnel may be 
detailed to the Office of the Director of National Intelligence 
(``ODNI'') on a reimbursable or non-reimbursable basis under 
which the employee continues to be paid by the home agency. To 
utilize this authority, the joint agreement of the DNI and head 
of the detailing element is required. As explained by the DNI, 
this authority will provide flexibility for the ODNI to receive 
support from other elements of the Intelligence Community for 
community-wide activities where both the home agency and the 
ODNI would benefit from the detail.
      Section 308 of the Senate amendment would have expanded 
the time available for reimbursable or non-reimbursable details 
to three years. Section 104 of the House bill allowed non-
reimbursable details of less than one year. The conferees 
agreed to a two-year maximum for reimbursable or non-
reimbursable details.
Section 303. Multi-level security clearances
      Section 303 adds a provision to section 102A of the 
National Security Act of 1947 (50 U.S.C. 403-1), which 
generally sets forth the responsibilities and authorities of 
the Director of National Intelligence. The new provision states 
that the DNI shall be responsible for ensuring that the 
elements of the Intelligence Community adopt a multi-level 
clearance approach that allows for clearances consistent with 
the protection of national security that can be tailored to 
particular circumstances in order to enable the more effective 
and efficient use of persons proficient in foreign languages or 
with cultural, linguistic, or other subject matter expertise 
that is critical to national security.
      Section 303 is based on Section 406 of the House bill. 
The Senate amendment did not have a comparable provision. Under 
the House provision, the DNI would have been required to 
establish a multi-level clearance system throughout the 
Intelligence Community. Pursuant to the conference amendment, 
the DNI shall, within six months of enactment, issue guidelines 
to the Intelligence Community to support and facilitate the 
implementation of a multi-level approach across the 
Intelligence Community.
Section 304. Pay authority for critical positions
      Section 304 adds a new subsection to section 102A of the 
National Security Act of 1947 (50 U.S.C. 403-1) to provide 
enhanced pay authority for critical positions in portions of 
the Intelligence Community where that authority does not now 
exist. It allows the DNI to authorize the head of a department 
or agency with an Intelligence Community element to fix a rate 
of compensation in excess of applicable limits with respect to 
a position that requires an extremely high level of expertise 
and is critical to accomplishing an important mission. A rate 
of pay higher than Executive Level II would require written 
approval of the DNI. A rate higher than Executive Level I would 
require written approval of the President in response to a DNI 
request. Section 304 is identical to the corresponding portion 
of Section 405 of the Senate amendment. The House bill did not 
have a comparable provision.
      The section of the Senate bill that contained this pay 
authority also would have provided additional authority to 
enable the DNI to harmonize personnel rules in the Intelligence 
Community. It would have enabled the DNI, with the concurrence 
of a department or agency head, to convert competitive service 
positions and incumbents within an Intelligence Community 
element to excepted positions. It also would have granted 
authority to the DNI to authorize Intelligence Community 
elements--with concurrence of the concerned department or 
agency heads and in coordination with the Director of the 
Office of Personnel Management--to adopt compensation, 
performance, management, and scholarship authority that have 
been authorized for any other Intelligence Community element. 
The conferees recommend that these proposals be studied further 
during consideration of the fiscal year 2009 authorization.
Section 305. Delegation of authority for travel on common carriers for 
        intelligence collection personnel
      Section 116 of the National Security Act of 1947 (50 
U.S.C. 404k) allows the DNI to authorize travel on any common 
carrier when it is consistent with Intelligence Community 
mission requirements or, more specifically, is required for 
cover purposes, operational needs, or other exceptional 
circumstances. As presently written, the DNI may only delegate 
this authority to the Principal Deputy DNI (``PDDNI'') or, with 
respect to CIA employees, to the Director of the CIA.
      Section 305 provides that the DNI may delegate the 
authority in section 116 of the National Security Act of 1947 
to the head of any element. This expansion is consistent with 
the view of the conferees that the DNI should be able to 
delegate authority throughout the Intelligence Community when 
such delegation serves the overall interests of the 
Intelligence Community.
      Section 305 also provides that the head of an 
Intelligence Community element to which travel authority has 
been delegated is empowered to delegate it to senior officials 
of the element as specified in guidelines issued by the DNI. 
This allows for administrative flexibility consistent with the 
guidance of the DNI for the entire Intelligence Community. To 
facilitate oversight, the DNI shall submit the guidelines to 
the congressional intelligence committees. Section 305 is 
identical to Section 304 of the Senate amendment and 
substantially the same as Section 306 of the House bill.
Section 306. Annual personnel level assessments for the Intelligence 
        Community
      Section 306 requires the Director of National 
Intelligence, in consultation with the head of the element of 
the Intelligence Community concerned, to prepare an annual 
assessment of the personnel and contractor levels for each 
element of the Intelligence Community for the following fiscal 
year. Section 306 is a new mechanism to allow both the 
Executive branch and Congress to better oversee personnel 
growth in the Intelligence Community. Section 306 combines 
elements from Section 315 of the Senate amendment, and Sections 
411 and 414 of the House bill.
      The assessment required by Section 306 seeks information 
about budgeted personnel and contractor costs and levels, a 
comparison of this information to current fiscal year and 
historical five year data, and a written justification for the 
requested personnel and contractor levels. The assessment also 
requires the DNI to state that, based on current and projected 
funding, the element will have sufficient internal 
infrastructure and training resources to support the requested 
personnel and contractor levels, and sufficient funding to 
support the administrative and operational activities of the 
requested personnel levels. All of this information was 
required in Section 315 of the Senate amendment. Section 306 
also requires that the assessment contain information about 
intelligence collectors and analysts employed or contracted by 
each element of the Intelligence Community, and contractors who 
are the subjects of an Inspector General investigation, 
information that was requested in Sections 414 and 411, 
respectively, of the House bill. The assessment must be 
submitted to congressional intelligence committees with the 
submission of the President's budget request.
      The conferees believe that the personnel level assessment 
required by Section 306 will provide information necessary for 
the Executive branch and Congress to understand the 
consequences of modifying the Intelligence Community's 
personnel levels. Section 306 therefore recognizes that, 
although the conferees supported personnel growth in the post-
September 11, 2001 period, personnel growth must be better 
planned in the future to accomplish the goals of strengthening 
intelligence collection, analysis, and dissemination. In 
addition, the Administration must adequately fund its personnel 
growth plan, and structure its resources, to ensure that 
personnel growth is not done at the expense of other programs.
      With regard to historical contractor levels to be 
included in the annual assessments, the DNI has expressed 
concern that there was no completed effort, prior to the ODNI's 
contractor inventory initiated in June 2006, to comprehensively 
capture information on the number and costs of contractors 
throughout the Intelligence Community. Although the 
Intelligence Community has not adequately focused on this issue 
in past years, the conferees believe it is important to require 
the DNI to attempt to assess historical contractor levels. 
Because of the concerns outlined by the DNI, however, conferees 
understand that information about contractor levels prior to 
June 2006 may need to be reported as a best estimate.
      The conferees are also concerned about the Intelligence 
Community's increasing reliance on contractors to meet mission 
requirements. The Intelligence Community employs a significant 
number of ``core'' contractors who provide direct support to 
Intelligence Community mission areas and are generally 
indistinguishable from the United States Government personnel 
whose mission they support. Because of the cost disparity 
between employing a United States civilian employee, estimated 
to cost an average of $126,500 annually, and a core contractor, 
estimated to cost an average of $250,000 annually, the 
conferees believe that the Intelligence Community should strive 
to reduce its dependence on contractors. The personnel 
assessment required in Section 306 should assist the DNI and 
the congressional intelligence committees in determining the 
appropriate balance of contractors and permanent government 
employees.
Section 307. Comprehensive report on Intelligence Community contractors
      Section 307 requires the DNI to provide a one-time report 
by March 31, 2008, describing the personal services activities 
performed by contractors across the Intelligence Community, the 
impact of contractors on the Intelligence Community, and the 
accountability mechanisms that govern contractors.
      Intelligence Community leaders continue to lack an 
adequate factual and policy basis for controlling the size and 
use of its large contractor workforce. Among other things, the 
Intelligence Community lacks a clear definition of the 
functions that may be appropriately performed by contractors 
and, as a result, whether contractors are performing functions 
that should be performed by government employees. Generally, 
the conferees are concerned that the Intelligence Community 
does not have procedures for overseeing contractors and 
ensuring the identification of criminal violations or the 
prevention and redress of financial waste, fraud, or other 
abuses by contractors. The report is intended to help both the 
Intelligence Community and the congressional intelligence 
committees identify the facts and chart solutions. The report 
should also address the DNI's plans for conversion of 
contractors into employees under the authority provided in 
Section 103 of this Act.
      Section 307 is based on Section 411 of the House bill. 
Section 411 would have required an annual report on the 
oversight of Intelligence Community contractors, and three 
separate one-time reports on accountability mechanisms 
governing Intelligence Community contractors, the impact of 
contractors on the Intelligence Community workforce, and the 
use of contractors for intelligence activities. The Senate 
amendment had addressed reporting on contractors in Section 315 
of the Senate amendment. The conferees consolidated these 
reporting requirements into the single report required by 
Section 307 and the annual assessment on consideration of the 
levels of the contractor workforce in Section 306.
Section 308. Report on proposed pay-for-performance Intelligence 
        Community personnel management system
      Section 308 prohibits the implementation of pay-for-
performance compensation reform within an element of the 
Intelligence Community until 45 days after the DNI submits to 
the Congress a detailed plan for the implementation of the 
compensation plan at the particular element of the Intelligence 
Community in question. The DNI voiced concern that Section 307 
of the House bill would have prohibited the heads of the 
elements of the Intelligence Community from implementing 
tailored pay plans under other existing statutory authorities 
and would have hindered DNI efforts to establish a program 
within the Intelligence Community ``to provide common pay, 
performance evaluation and benefits throughout the Community.'' 
By agreeing that the requirements of Section 308 would be 
applicable on an element-by-element basis, the conferees sought 
to ensure that plans for elements that are ready to proceed are 
not delayed by the planning requirements for elements that are 
not ready to proceed. With regard to the objective of providing 
for common pay, performance evaluation, and benefits throughout 
the Intelligence Community, the conferees added as an item of 
each report how the implementation of pay-for-performance in 
the element is consistent with the DNI's overall plans for a 
performance-based compensation system.
      The Senate amendment had no comparable provision.
Section 309. Report on plan to increase diversity within the 
        Intelligence Community
      Section 309 requires the DNI, in coordination with the 
heads of the elements of the Intelligence Community, to submit 
to the congressional intelligence committees a report on the 
plans of each element of the Intelligence Community, including 
the Office of the DNI (``ODNI''), to increase diversity within 
that element. The report shall include the specific 
implementation plans to increase diversity.
      Section 308 of the House bill had required the DNI to 
submit a strategic plan to increase diversity within the 
Intelligence Community and had prohibited the expenditure of 
more than 80 percent of the amount appropriated to the 
Intelligence Community Management Fund until the report was 
delivered to Congress. The conferees altered the requirements 
of Section 308 of the House bill to recognize the information 
submitted to the congressional intelligence committees by the 
DNI following passage of the House bill, and to tailor the 
provision to obtain other information sought by the 
congressional intelligence committees. To ensure that the 
report is submitted in a timely fashion, Section 309 now 
requires the DNI to submit the report by no later than March 
31, 2008.
      The Senate amendment had no comparable provision.

                    Subtitle B--Acquisition Matters

Section 311. Vulnerability assessments of major systems
      Section 311 adds a new oversight mechanism to the 
National Security Act of 1947 (50 U.S.C. 442 et seq.) that 
requires the DNI to conduct an initial vulnerability assessment 
and subsequent assessments of every major system and its 
significant items of supply in the National Intelligence 
Program (``NIP''). The intent of the provision is to provide 
Congress and the DNI with an accurate assessment of the unique 
vulnerabilities and risks associated with each National 
Intelligence Program major system to allow a determination of 
whether funding for a particular major system should be 
modified or discontinued. The vulnerability assessment process 
will also require the various elements of the Intelligence 
Community responsible for implementing major systems to give 
due consideration to the risks and vulnerabilities associated 
with such implementation.
      Section 311 requires the DNI to conduct an initial 
vulnerability assessment on every major system proposed for the 
NIP prior to completion of Milestone B or an equivalent 
acquisition decision. The minimum requirements of the initial 
vulnerability assessment are fairly broad and intended to 
provide the DNI with significant flexibility in crafting an 
assessment tailored to the proposed major system. Thus, the DNI 
is required to use at a minimum, an analysis-based approach to 
identify vulnerabilities, define exploitation potential, 
examine the system's potential effectiveness, determine overall 
vulnerability, and make recommendations for risk reduction. The 
DNI is obviously free to adopt a more rigorous methodology for 
the conduct of initial vulnerability assessments.
      Vulnerability assessment should continue through the life 
of a major system. Numerous factors and considerations can 
affect the viability of a given major system. For that reason, 
Section 311 provides the DNI with the flexibility to set a 
schedule of subsequent vulnerability assessments for each major 
system when the DNI submits the initial vulnerability 
assessment to the congressional intelligence committees. The 
time period between assessments should depend upon the unique 
circumstances of a particular major system. For example, a new 
major system that is implementing some experimental technology 
might require annual assessments while a more mature major 
system might not need such frequent reassessment. The DNI is 
also permitted to adjust a major system's assessment schedule 
when the DNI determines that a change in circumstances warrants 
the issuance of a subsequent vulnerability assessment. Section 
311 also provides that a congressional intelligence committee 
may request the DNI to conduct a subsequent vulnerability 
assessment of a major system.
      The minimum requirements for a subsequent vulnerability 
assessment are almost identical to those of an initial 
vulnerability assessment. There are only two additional 
requirements. First, if applicable to the given major system 
during its particular phase of development or production, the 
DNI must also use a testing-based approach to assess the 
system's vulnerabilities. Obviously, common sense needs to 
prevail here. For example, the testing approach is not intended 
to require the ``crash testing'' of a satellite system. Nor is 
it intended to require the DNI to test system hardware. 
However, the vulnerabilities of a satellite's significant items 
of supply might be exposed by a rigorous testing regime. 
Second, the subsequent vulnerability assessment is required to 
monitor the exploitation potential of the major system. Thus, a 
subsequent vulnerability assessment should monitor ongoing 
changes to vulnerabilities and understand the potential for 
exploitation. Since new vulnerabilities can become relevant and 
the characteristics of existing vulnerabilities can change, it 
is necessary to monitor both existing vulnerabilities and their 
characteristics, and to check for new vulnerabilities on a 
regular basis.
      Section 311 requires the DNI to give due consideration to 
the vulnerability assessments prepared for the major systems 
within the NIP. It also requires that the vulnerability 
assessments be provided to the congressional intelligence 
committees within ten days of their completion. The conferees 
encourage the DNI to also share the results of these 
vulnerabilities assessments, as appropriate, with other 
congressional committees of jurisdiction.
      Finally, the section contains definitions for the terms 
``items of supply,'' ``major system,'' ``Milestone B,'' and 
``vulnerability assessment.''
      Section 311 is similar to Section 310 of the Senate 
amendment. The House bill had no similar provision.
Section 312. Business enterprise architecture and business system 
        modernization for the Intelligence Community
      Section 312 requires the DNI to create a business 
enterprise architecture that defines all Intelligence Community 
business systems, as well as the functions and activities 
supported by those business systems, in order to guide with 
sufficient detail the implementation of interoperable 
Intelligence Community business system solutions. The conferees 
expect the DNI will include Department of Defense 
representatives in the established forum as appropriate. The 
conferees agreed that the business enterprise architecture and 
transition plan are to be submitted to the congressional 
intelligence committees by September 1, 2008. The acquisition 
strategy, however, is to be submitted by March 1, 2008.
      Section 312 will provide the congressional oversight 
committees the assurance that business systems that cost more 
than a million dollars and that receive more than 50 percent of 
their funding from the National Intelligence Program will be 
efficiently and effectively coordinated. It will also provide a 
list of all ``legacy systems'' that will be either terminated 
or transitioned into the new architecture. Further, this 
section will require the DNI to report to the Committee no less 
often than annually, for five years, on the progress being made 
in successfully implementing the new architecture.
      Section 312 is similar to Section 312 of the Senate 
amendment. The House bill had no similar provision.
Section 313. Reports on acquisition of major systems
      Section 313 amends Title V of the National Security Act 
of 1947 (50 U.S.C. 413 et seq.) to require annual reports from 
the DNI for each major system acquisition by an element of the 
Intelligence Community.
      These reports must include, among other items, 
information about the current total acquisition cost for such 
system, the development schedule for the system including an 
estimate of annual development costs until development is 
completed, the planned procurement schedule for the system, 
including the best estimate of the DNI of the annual costs and 
units to be procured until procurement is completed, a full 
life-cycle cost analysis for such system, and the result of any 
significant test and evaluation of such major system as of the 
date of the submittal of such report.
      Section 313 includes definitions for ``acquisition 
cost,'' ``full life-cycle cost,'' ``major contract,'' ``major 
system,'' and ``significant test and evaluation.''
      Section 313 is similar to Section 313 of the Senate 
amendment. The House bill had no similar provision.
Section 314. Excessive cost growth of major systems
      Section 314 amends Title V of the National Security Act 
of 1947 (50 U.S.C. 413 et seq.) to require that, in addition to 
the report required under Section 313, the program manager of a 
major system acquisition project shall determine on a 
continuing basis if the acquisition cost of such major system 
has increased by at least 25 percent as compared to the 
baseline of such major system. The program manager must inform 
the DNI of any such determination and the DNI must submit a 
written notification to the congressional intelligence 
committees if the DNI makes the same such determination.
      Section 314 is intended to mirror the Nunn-McCurdy 
provision in Title 10 of the United States Code that applies to 
major defense acquisition programs. The conferees envision that 
the determination will be done as needed by the program manager 
of the major system acquisition and should not wait until the 
time that the DNI's annual report is filed. In other words, the 
conferees expect the congressional intelligence committees to 
be advised on a regular basis by the DNI about the progress and 
associated costs of major system acquisitions within the 
Intelligence Community.
      If the cost growth is 25 percent or more, the DNI must 
prepare a notification and submit, among other items, an 
updated cost estimate to the congressional intelligence 
committees, and a certification that the acquisition is 
essential to national security, there are no other alternatives 
that will provide equal or greater intelligence capability at 
equal or lesser cost to completion, the new estimates of the 
full life-cycle cost for such major system are reasonable, and 
the structure for the acquisition of such major system is 
adequate to manage and control full life-cycle cost of such 
major system.
      If the program manager makes a determination that the 
acquisition cost has increased by 50 percent or more as 
compared to the baseline, and the DNI makes the same such 
determination, then the DNI must submit a written certification 
to certify the same four items as described above, as well as 
an updated notification and accompanying information. If the 
required certification, at either the 25 percent or 50 percent 
level, is not submitted to the congressional intelligence 
committees within 60 days of the DNI's determination of cost 
growth, Section 318 creates a mechanism in which funds cannot 
be obligated for a period of time. If Congress does not act 
during that period, then the acquisition may continue.
      Section 314 is similar to Section 314 of the Senate 
amendment. The House bill had no similar provision.

                       Subtitle C--Other Matters

Section 321. Restriction on conduct of intelligence activities
      Section 321 provides that the authorization of 
appropriations by the Act shall not be deemed to constitute 
authority for the conduct of any intelligence activity that is 
not otherwise authorized by the Constitution and the laws of 
the United States. Section 321 is identical to Sections 302 of 
the Senate amendment and the House bill.
Section 322. Clarification of definition of Intelligence Community 
        under the National Security Act of 1947
      Section 322 amends Section 3(4)(L) of the National 
Security Act of 1947 (50 U.S.C. 401a(4)(L)) to permit the 
designation as ``element of the intelligence community'' of 
elements of departments and agencies of the United States 
Government whether or not those departments and agencies are 
listed in Section 3(4). Section 322 is identical to Section 303 
of the Senate amendment and the House bill.
Section 323. Modification of availability of funds for different 
        intelligence activities
      Section 323 conforms the text of Section 504(a)(3)(B) of 
the National Security Act of 1947 (50 U.S.C. 414(a)(3)(B) 
(governing the funding of intelligence activities)) with the 
text of Section 102A(d)(5)(A)(ii) of that Act (50 U.S.C. 403-
1(d)(5)(A)(ii)), as amended by Section 1011(a) of the 
Intelligence Reform and Terrorism Prevention Act of 2004, Pub. 
L. No. 108-458 (Dec. 17, 2004) (``Intelligence Reform Act'') 
(governing the transfer and reprogramming by the DNI of certain 
intelligence funding).
      This amendment to the National Security Act replaces the 
``unforeseen requirements'' standard in Section 504(a)(3)(B) 
with a more flexible standard to govern reprogrammings and 
transfers of funds authorized for a different intelligence or 
intelligence-related activity. Under the new standard, a 
reprogramming or transfer is authorized if, in addition to the 
other requirements of Section 504(a)(3), the new use of funds 
``supports an emergent need, improves program effectiveness, or 
increases efficiency.'' This modification brings the standard 
for reprogrammings and transfers of intelligence funding into 
conformity with the standards applicable to reprogrammings and 
transfers under Section 102A of the National Security Act of 
1947. The modification preserves congressional oversight of 
proposed reprogrammings and transfers while enhancing the 
Intelligence Community's ability to carry out missions and 
functions vital to national security. Section 323 is identical 
to Sections 305 of the Senate amendment and the House bill.
Section 324. Protection of certain national security information
      Section 324 amends the National Security Act of 1947 in 
two respects. Section 324(a) amends Section 601 of the National 
Security Act of 1947 (50 U.S.C. 421) to increase the criminal 
penalties for individuals with authorized access to classified 
information who intentionally disclose any information 
identifying a covert agent, if those individuals know that the 
United States is taking affirmative measures to conceal the 
covert agent's intelligence relationship to the United States. 
Currently, the maximum sentence for disclosure by someone who 
has had ``authorized access to classified information that 
identifies a covert agent'' is ten years. Subsection (a)(1) 
increases that maximum sentence to 15 years. Currently, the 
maximum sentence for disclosure by someone who ``as a result of 
having authorized access to classified information, learns the 
identity of a covert agent and intentionally discloses any 
information identifying such covert agent'' is five years. 
Subsection (a)(2) increases that maximum sentence to ten years. 
Section 324(a) is identical to Section 306 of the Senate 
amendment. The House bill had no comparable provision.
      Section 324(b) amends Section 603(a) of the National 
Security Act of 1947 (50 U.S.C. 423(a)) to provide that the 
annual report from the President on the protection of 
identities of certain United States undercover intelligence 
officers, agents, informants, and sources, also include an 
assessment of the need for any modification for the purpose of 
improving legal protections for covert agents. Section 324(b) 
is identical to Section 309 of the House bill. The Senate 
amendment had no similar provision.
Section 325. Extension of authority to delete information about receipt 
        and disposition of foreign gifts and decorations
      Current law (5 U.S.C. 7342) requires that certain federal 
``employees''--a term that generally applies to all 
Intelligence Community officials and personnel and certain 
contractors, spouses, dependents, and others--file reports with 
their employing agency regarding receipt of gifts or 
decorations from foreign governments. Following compilation of 
these reports, the employing agency is required to file 
annually with the Secretary of State detailed information about 
the receipt of foreign gifts and decorations by its employees, 
including the source of the gift. The Secretary of State is 
required to publish a comprehensive list of the agency reports 
in the Federal Register.
      With respect to Intelligence Community activities, public 
disclosure of gifts or decorations in the Federal Register has 
the potential to compromise intelligence sources (e.g., 
confirmation of an intelligence relationship with a foreign 
government) and could undermine national security. Recognizing 
this concern, the Director of Central Intelligence (``DCI'') 
was granted a limited exemption from reporting certain 
information about such foreign gifts or decorations where the 
publication of the information could adversely affect United 
States intelligence sources. Section 1079 of the Intelligence 
Reform Act extended a similar exemption to the DNI in addition 
to applying the existing exemption to the CIA Director.
      Section 325 provides to the heads of each Intelligence 
Community element the same limited exemption from specified 
public reporting requirements that is currently authorized for 
the DNI and CIA Director. The national security concerns that 
prompt those exemptions apply equally to other Intelligence 
Community elements. Section 325 mandates that the information 
not provided to the Secretary of State be provided to the DNI 
to ensure continued independent oversight of the receipt by 
Intelligence Community personnel of foreign gifts or 
decorations. The conferees agreed to require the DNI to keep a 
record of such information. Section 325 is otherwise similar to 
Section 307 of the Senate amendment and Section 304 of the 
House bill.
      Gifts received in the course of ordinary contact between 
senior officials of elements of the Intelligence Community and 
their foreign counterparts should not be excluded under the 
provisions of Section 325 unless there is a serious concern 
that such contacts and gifts would adversely affect United 
States intelligence sources or methods.
Section 326. Report on compliance with the Detainee Treatment Act of 
        2005 and the Military Commissions Act of 2006
      Section 326 requires the DNI to submit a classified 
comprehensive report to the congressional intelligence 
committees on all measures taken by the ODNI and by any 
Intelligence Community element with relevant responsibilities 
on compliance with detention and interrogation provisions of 
the Detainee Treatment Act of 2005 and the Military Commissions 
Act of 2006. The report is to be submitted no later than 45 
days after enactment of this Act.
      The Detainee Treatment Act provides that no individual in 
the custody or under the physical control of the United States, 
regardless of nationality or physical location, shall be 
subject to cruel, inhuman, or degrading treatment. Congress 
reaffirmed this mandate in Section 6 of the Military 
Commissions Act, adding an implementation mechanism that 
requires the President to take action to ensure compliance 
including through administrative rules and procedures. Section 
6 provides not only that grave breaches of Common Article 3 of 
the Geneva Conventions are war crimes under Title 18 of the 
United States Code, but also that the President has authority 
for the United States to promulgate higher standards and 
administrative regulations for violations of U.S. treaty 
obligations. It requires the President to issue those 
interpretations by Executive Order published in the Federal 
Register.
      The report required by Section 326 is to include a 
description of the detention or interrogation methods that have 
been determined to comply with the prohibitions of the Detainee 
Treatment Act and the Military Commissions Act or have been 
discontinued pursuant to them.
      The Detainee Treatment Act also provides for the 
protection against civil or criminal liability for United 
States Government personnel who had engaged in officially 
authorized interrogations that were determined to be lawful at 
the time. Section 326 requires the DNI to report on actions 
taken to implement that provision.
      The report shall also include an appendix containing all 
guidelines on the application of the Detainee Treatment Act and 
the Military Commissions Act to the detention or interrogation 
activities, if any, of any Intelligence Community element. The 
appendix shall also include the legal justifications of any 
office of the Department of Justice about the meaning of the 
Acts with respect to detention or interrogation activities, if 
any, of any Intelligence Community element. The conferees 
struck the requirement from Section 309 of the Senate amendment 
that the appendix contain the legal justifications of ``any 
official of the Department of Justice'' to accommodate the 
concern that this provision might compel the production of 
internal deliberative legal materials. This provision therefore 
seeks only the legal justifications of any office of the 
Department of Justice that rendered an opinion on the matter.
      To the extent that the report required by Section 326 
addresses an element of the Intelligence Community within the 
Department of Defense, that portion of the report, and 
associated material that is necessary to make that portion 
understandable, shall also be submitted by the DNI to the 
congressional armed services committees.
      Section 326 is similar to Section 309 of the Senate 
amendment. The House bill had no similar provision.
Section 327. Limitation on interrogation techniques
      Section 327 prohibits the use of any interrogation 
treatment or technique not authorized by the United States Army 
Field Manual on Human Intelligence Collector Operations (``U.S. 
Army Field Manual'') against any individual in the custody or 
effective control of any element of the Intelligence Community. 
This limitation on interrogation conducted by Intelligence 
Community personnel is similar to the limitation on 
interrogation conducted by Department of Defense personnel in 
Section 1002(a) of the Detainee Treatment Act of 2005 (42 
U.S.C. 2000dd-0(a)).
      Section 327 was adopted as an amendment at the conference 
after significant deliberation in the past year by both 
congressional intelligence committees of the legality and 
effectiveness of CIA's detention and interrogation program. The 
congressional intelligence committees have held numerous 
hearings on interrogation-related issues, have had many 
additional member and staff briefings, and have solicited input 
from a variety of outside experts on both interrogation and the 
effects of current U.S. interrogation policy. The inclusion of 
Section 327 reflects the conferees' considered judgment that 
the CIA's program is not the most effective method of obtaining 
the reliable intelligence we need to protect the United States 
from attack. Further, the conferees concluded that damage to 
international perception of the United States caused by the 
existence of classified interrogation procedures that apply 
only to CIA's program and are different from those used by the 
U.S. military outweighs the intelligence benefits that may 
result from the interrogation of individuals using the 
interrogation techniques authorized in the CIA's program.
      Section 327 therefore seeks to create one consistent 
interrogation policy across both the U.S. military and the 
Intelligence Community. Any individual in the custody or under 
the effective control of an element of the Intelligence 
Community may therefore be subject only to those interrogation 
techniques authorized for use by the U.S. military, that is, 
the interrogation techniques authorized by the U.S. Army Field 
Manual.
      As the primary U.S. Government beneficiaries of the 
protections of the Geneva Conventions of 1949, the U.S. 
military should play an important role in ensuring that U.S. 
interrogation policy complies with those international 
protections. Other countries look to U.S. policy as a whole, 
not the policy of particular agencies, in assessing how 
Americans captured on the battlefield should be treated. 
Requiring the Intelligence Community to follow the U.S. Army 
Field Manual ensures that the United States adopts only those 
interrogation techniques that would not be seen as abuse if 
used against an American soldier.
      As updated in September of 2006, the U.S. Army Field 
Manual (FM 2-22.3) provides a detailed and unclassified 
description of the interrogation process, along with a number 
of interrogation approaches that can be used to elicit 
information from detainees. The Army Field Manual leaves 
interrogators with significant flexibility to determine what 
approaches will work in particular situations or with 
particular detainees; it does not mandate that particular 
interrogation approach strategies be used in any given 
situation. The congressional intelligence committees have 
received testimony that the approaches in the U.S. Army Field 
Manual are effective at eliciting information from detainees 
and that they can be appropriately tailored to all detainees, 
including senior terrorist leaders. The procedures in the Army 
Field Manual have also been extensively reviewed to ensure 
compliance with both ``American constitutional standards 
related to concepts of dignity, civilization, humanity, 
decency, and fundamental fairness,'' as well as U.S. 
obligations under international law, including the four Geneva 
Conventions of 1949. See Army Field Manual at 5-21.
      In addition to describing interrogation approaches, the 
U.S. Army Field Manual includes a number of specific 
prohibitions. In particular, it prohibits ``acts of violence or 
intimidation, including physical or mental torture, or exposure 
to inhumane treatment as a means of or aid to interrogation.'' 
It also explicitly prohibits forcing a detainee to be naked, 
perform sexual acts, or pose in a sexual manner; placing hoods 
or sacks over the head of a detainee; using duct tape over the 
eyes of a detainee; applying beatings, electric shock, burns, 
or other forms of physical pain; waterboarding; using military 
working dogs; inducing hypothermia or heat injury; conducting 
mock executions; and depriving the detainee of necessary food, 
water, or medical care. Requiring the Intelligence Community to 
comply with the U.S. Army Field Manual thus prohibits the 
Intelligence Community's use of these actions as interrogation 
techniques.
Section 328. Limitation on use of funds
      Section 328 was added by an amendment at conference. It 
provides that not more than 30 percent of the funds authorized 
to be appropriated in a specific Expenditure Center referred to 
in a classified Executive Branch Congressional Budget 
Justification for fiscal year 2008-fiscal year 2009 may be 
obligated or expended until the full membership of the 
congressional intelligence committees are fully and currently 
informed about an important intelligence matter. The matter is 
a facility in Syria that was the subject of reported Israeli 
military action on September 6, 2007. The information on which 
the full membership of the committees should be briefed 
includes intelligence if any relating to any agent or citizen 
of North Korea, Iran, or any other foreign country present at 
the facility. It should also include any intelligence (as 
available) provided to the United States by a foreign country 
regarding the facility.
      ``To the extent consistent with due regard for the 
protection from unauthorized disclosure of classified 
information relating to sensitive intelligence sources and 
methods or other exceptionally sensitive matters,'' Section 502 
of the National Security Act of 1947 (50 U.S.C. 413a) requires 
that the Director of National Intelligence and the heads of all 
entities of the United States Government involved in 
intelligence activities shall ``keep the congressional 
intelligence committees fully and currently informed of all 
intelligence activities.''
      As explained in a Senate report at the time of the 
original enactment of this requirement in 1980, the limited 
caveat about sensitive sources and methods or matters applies 
to ``extremely rare circumstances'' when there is a decision 
not to communicate to the intelligence committees ``certain 
sensitive aspects of operations or collection programs.'' S. 
Rep. No. 96-730, at 6. The key phrase ``certain sensitive 
aspects'' indicates that the scope of any withholding of 
information should be limited to certain details rather than to 
bar information about entire activities.
      Section 504 of the National Security Act of 1947 (50 
U.S.C. 413(b)) provides for only limited circumstances for not 
providing information to the full membership of the 
intelligence committees but, instead, informing the Chairmen 
and Vice Chairman or Ranking Minority Member of those 
committees as well as the congressional leadership. That 
exception applies only when the President determines that ``it 
is essential to limit access to [a covert action] finding to 
meet extraordinary circumstances affecting vital interests of 
the United States.''
      In agreeing to Section 328, the conferees concluded that 
it is essential that the full membership of the House and 
Senate intelligence committees be fully informed, in a manner 
consistent with the National Security Act, about intelligence 
that would indicate, among other matters, any presence at a 
Syrian facility of agents or citizens of states--particularly, 
North Korea and Iran--which have had nuclear or other weapons 
of mass destruction programs.
Section 329. Incorporation of reporting requirements
      Section 329 incorporates into the Act by reference each 
requirement contained in the classified annex to this Act to 
submit a report to the congressional intelligence committees. 
Sections 105 of the Senate amendment and the House bill both 
also made reference to reporting requirements included in the 
joint explanatory statement to accompany the conference report. 
As no reporting requirements were included in the joint 
explanatory statement, this reference was eliminated.
      Because the classified information in the annex cannot be 
included in the text of the bill, incorporating the reporting 
provisions of the classified annex is the only available 
mechanism to give these reporting requirements the force of 
law. The conferees therefore chose to include Section 329 to 
reflect the importance they ascribe to the reporting 
requirements in the classified annex.
Section 330. Repeal of certain reporting requirements
      Section 330 eliminates five reporting requirements that 
were considered particularly burdensome to the Intelligence 
Community in cases where the usefulness of the report has 
diminished either because of changing events or because the 
information contained in those reports is duplicative of 
information already obtained through other avenues. Section 330 
is similar to Section 316 of the Senate amendment. Section 316 
had proposed eliminating a total of seven reporting 
requirements. The conferees agreed to remove two of these 
reports from the list of reports to be eliminated after certain 
congressional committees expressed an interest in continuing to 
receive these two reports.
      The House bill had no similar provision.

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

      Subtitle A--Office of the Director of National Intelligence

Sec. 401. Clarification of limitation on co-location of the Office of 
        the Director of National Intelligence
      Section 103(e) of the National Security Act of 1947 (50 
U.S.C. 403-3(e)), as added by the Intelligence Reform Act, 
provides that commencing on October 1, 2008, the Office of the 
DNI may not be co-located with any other element of the 
Intelligence Community. Section 401 clarifies that this ban 
applies only to the co-location of the headquarters of the ODNI 
with the headquarters of any other Intelligence Community 
element. Accordingly, the ODNI may be co-located with non-
headquarters units of Intelligence Community elements. Section 
401 is identical to Section 406 of the Senate amendment and 
Section 401 of the House bill.
Section 402. Membership of the Director of National Intelligence on the 
        Transportation Security Oversight Board
      Section 402 substitutes the DNI, or the DNI's designee, 
as a member of the Transportation Security Oversight Board 
established under section 115(b)(1) of Title 49, United States 
Code, in place of the CIA Director or CIA Director's designee. 
The Transportation Security Oversight Board is responsible for, 
among other things, coordinating intelligence, security, and 
law enforcement activities affecting transportation and 
facilitating the sharing of intelligence, security, and law 
enforcement information affecting transportation among Federal 
agencies. Section 402 is identical to Section 416 of the Senate 
amendment and Section 402 of the House bill.
Section 403. Additional duties of the Director of Science and 
        Technology
      Section 403 clarifies the duties of the Director of 
Science and Technology (DST) and the Director of National 
Intelligence Science and Technology Committee (NISTC). The 
conferees expect the DST to systematically identify, assess and 
prioritize the most significant intelligence challenges that 
require technical solutions, set long-term science and 
technology goals, develop a strategy/roadmap to be shared with 
congressional intelligence committees that meets these goals, 
and prioritize and coordinate efforts across the Intelligence 
Community. As chair of the NISTC, the DST should leverage the 
expertise of members of the committee to accomplish these 
duties.
      Research and development efforts, including basic, 
advanced, and applied research and development projects, 
benefit the Intelligence Community most when they are 
consistent with current or future national intelligence 
requirements. Once a project is prototyped and successfully 
demonstrated, the conferees expect the DST to lead the NISTC to 
ensure the successful transition of projects from research and 
development into operational systems.
      To sustain and further Intelligence Community's research 
and development goals, it is imperative that the DNI recruit 
and retain the country's top science and technology leadership 
talent. This is especially important during this period marked 
by the restructuring of Intelligence Community research and 
development management. The conferees also note that science 
and technology are major factors driving change in today's 
world and believe that the Intelligence Community must return 
to preeminence in this area in order to fully protect our 
nation's security.
      The conferees urge the DST to develop multi-year 
projections and assessments of Intelligence Community human 
resource needs to better ensure that appropriate steps are 
taken to recruit and retain a robust scientific and engineering 
workforce. The conferees also urge the Intelligence Community 
to enhance its support to scholarship programs, research 
grants, and cooperative work-study programs to achieve these 
human resources goals.
      Section 403 is similar to Section 407 of the Senate 
amendment and Section 403 of the House bill.
Section 404. Leadership and location of certain offices and officials
      Section 404 confirms in statute that various officers are 
within the ODNI. These are (1) the Chief Information Officer of 
the Intelligence Community (as renamed by Section 412); (2) the 
Inspector General of the Intelligence Community (as named under 
Section 413); (3) the Director of the National Counterterrorism 
Center; and (4) the Director of the National Counter 
Proliferation Center (NCPC). Section 404 also expressly 
provides in statute that the DNI shall appoint the Director of 
the NCPC. Section 119A of the National Security Act of 1947 (50 
U.S.C. 404o-1), as added by the Intelligence Reform Act, had 
provided that the President could establish the NCPC. In doing 
so, the President delegated to the DNI the authority to name 
the Director. Section 404 ratifies that delegation. Section 404 
is identical to Section 411 of the Senate amendment and Section 
404 of the House bill.
Section 405. Plan to implement recommendations of the data center 
        energy efficiency reports
      Section 405 requires the DNI to develop a plan to 
implement across the Intelligence Community the recommendations 
of the Environmental Protection Agency report on improving data 
center energy efficiency. This planning requirement is intended 
to encourage the Intelligence Community to fulfill its 
responsibility to assess the use of environmental resources 
with regard to the power, space, and cooling challenges of 
Intelligence Community data centers. Section 405 is similar to 
Section 408 of the House bill. The Senate amendment did not 
have a comparable provision.
Section 406. Comprehensive listing of special access programs
      Section 406 provides that the DNI shall submit to the 
congressional intelligence committees a classified 
comprehensive listing of special access programs under the 
National Intelligence Program. The listing need not describe 
the programs, but must provide a reference to them to enable 
the congressional intelligence committees to determine whether 
the Intelligence Community has fulfilled its obligation to keep 
the committees informed about intelligence activities. In 
response to a concern of the DNI that a single document would 
create security and counterintelligence concerns, the conferees 
agreed to include a provision that allows the DNI to submit the 
listing in a form or forms consistent with national security.
      Section 406 is based on Section 409 of the House bill. 
The Senate amendment did not have a comparable provision.
Section 407. Reports on the nuclear programs of Iran and North Korea
      Section 407 provides that not less than once during the 
remainder of this fiscal year and twice during fiscal year 
2009, the DNI shall submit to the congressional intelligence 
committees a classified report on the nuclear intentions and 
capabilities of Iran and North Korea. A national intelligence 
estimate may count as one of those reports for each country. 
The conferees encourage the DNI to make these reports available 
to other congressional oversight committees of jurisdiction to 
the extent consistent with the protection of sources and 
methods.
      Section 407 is based on Section 410 of the House bill. 
The Senate amendment did not contain a comparable provision. 
The House provision had required quarterly reports 
indefinitely. In response to concerns of the DNI, the conferees 
reduced the number of reports required, but otherwise concur 
that it is essential that the Intelligence Community place a 
high priority on reporting to Congress on nuclear developments 
in Iran and North Korea.
Section 408. Requirements for accountability reviews by the Director of 
        National Intelligence
      Section 408 provides that the DNI shall have authority to 
conduct accountability reviews of elements of the Intelligence 
Community and the personnel of those elements. The primary 
innovation of this provision is the authority to conduct 
accountability reviews concerning an entire element of the 
Intelligence Community in relation to significant failures or 
deficiencies.
      This accountability process is separate and distinct from 
any accountability reviews conducted internally by elements of 
the Intelligence Community or their Inspectors General. Also, 
as stated explicitly in Section 408, the new authority does not 
limit the existing authority of the DNI with respect to 
supervision of the CIA. The DNI, in consultation with the 
Attorney General, shall establish guidelines and procedures for 
conducting accountability reviews.
      The Senate bill, as reported by the Select Committee on 
Intelligence, arguably would have mandated the DNI to conduct 
an accountability review at the direction of a congressional 
intelligence committee. To avoid a construction that a 
committee of Congress on its own could require such a review 
over the objection of the DNI, a concern raised by the ODNI, a 
managers' amendment prior to Senate passage made clear that the 
DNI shall conduct a review if the DNI determines it is 
necessary, and the DNI may conduct an accountability review 
(but is not statutorily required to do so) if requested by one 
of the congressional intelligence committees.
      Section 408 is identical to Section 401 of the Senate 
amendment. The House bill did not have a comparable provision.
Section 409. Modification of limitation on delegation by the Director 
        of National Intelligence of the protection of intelligence 
        sources and methods
      Section 409 amends section 102A(i)(3) of the National 
Security Act of 1947 to modify the limitation on delegation by 
the DNI (which now extends only to the PDDNI) of the authority 
to protect intelligence sources and methods from unauthorized 
disclosure. It permits the DNI also to delegate the authority 
to the Chief Information Officer of the Intelligence Community.
      Section 409 is based on Section 403 of the Senate 
amendment. The House bill did not have a comparable provision. 
The Senate bill, as originally reported, would have 
additionally permitted the delegation of this authority to any 
Deputy DNI or to the head of any Intelligence Community 
element. In a managers' amendment before passage in the Senate, 
the authority to delegate outside of the Office of the DNI was 
struck in accordance with the sequential report of the 
Committee on the Armed Services, S. Rep. No. 110-92, at 3. The 
conferees further limited the delegation authority to the Chief 
Information Officer, who is a presidentially-appointed, Senate-
confirmed official whose responsibilities expressly involve 
information matters throughout the Intelligence Community.
Section 410. Authorities for intelligence information sharing
      Section 410 amends section 102A(g)(1) of the National 
Security Act of 1947 (50 U.S.C. 403-1(g)(1)) to provide the DNI 
with statutory authority to use NIP funds to quickly address 
deficiencies or needs that arise in intelligence information 
access or sharing capabilities. It authorizes the DNI to 
provide to an agency or component, and for that agency or 
component to accept and use, funds or systems (which could 
include services or equipment) related to the collection, 
processing, analysis, exploitation, and dissemination of 
intelligence information. It also grants the DNI authority to 
provide funds to non-NIP activities for the purpose of 
addressing critical gaps in intelligence information access or 
sharing capabilities. Without the authority, development and 
implementation of necessary capabilities could be delayed by an 
agency's lack of authority to accept or utilize systems funded 
from the NIP, inability to use or identify current-year 
funding, or concerns regarding the augmentation of 
appropriations.
      Section 410 is based on Section 402 of the Senate 
amendment. The House did not have a comparable provision. To 
aid in oversight, the conferees have added a four-year 
reporting requirement from fiscal years 2009 through 2012. No 
later than February 1 of each of those years, the DNI shall 
submit to the congressional intelligence committees a report on 
the distribution of funds under the new section during the 
preceding fiscal year to facilitate implementation of 
information sharing.
Section 411. Authorities of the Director of National Intelligence for 
        interagency funding
      Section 411 provides the DNI with the ability to rapidly 
focus the Intelligence Community on an intelligence issue 
through a coordinated effort that uses all available resources. 
The premise of this authority is that the DNI's ability to 
coordinate the Intelligence Community response to an emerging 
threat should not depend on the budget cycle and should not be 
constrained by general limitations in appropriations law (e.g., 
31 U.S.C. 1346) or other prohibitions on interagency financing 
of boards, commissions, councils, committees, or similar 
groups.
      To provide this flexibility, this section grants the DNI 
the authority to approve interagency financing of national 
intelligence centers established under section 119B of the 
National Security Act of 1947 (50 U.S.C. 404o-2). It also 
authorizes interagency funding for boards, commissions, 
councils, committees, or similar groups established by the DNI 
for a period not to exceed two years. This would include 
funding for Intelligence Community mission managers. Under this 
section, the DNI could authorize the pooling of resources from 
various Intelligence Community agencies to finance national 
intelligence centers or other organizational groupings designed 
to address identified intelligence matters.
      Section 411 is based on Section 404 of the Senate 
amendment. The House bill did not have a comparable provision. 
To aid in oversight of the implementation of the authority 
granted by this section, the conferees have added a four-year 
reporting requirement from fiscal years 2009 through 2012. No 
later than February 1 of each of those years the DNI shall 
submit to the congressional intelligence committees a report on 
the exercise of this authority to support interagency 
activities.
Section 412. Title of Chief Information Officer of the Intelligence 
        Community
      Section 412 expressly designates the position of Chief 
Information Officer as Chief Information Officer of the 
Intelligence Community. The modification to the CIO title is 
consistent with the position's overall responsibilities as 
outlined in section 103G of the National Security Act of 1947 
(50 U.S.C. 403-3g). Section 412 is identical to Section 408 of 
the Senate amendment. The House bill did not have a comparable 
provision.
Section 413. Inspector General of the Intelligence Community
      Section 1078 of the Intelligence Reform Act authorized 
the DNI to establish an Office of Inspector General if the DNI 
determined that an Inspector General would be beneficial to 
improving the operations and effectiveness of the ODNI. It 
further provided that the DNI could grant to the Inspector 
General any of the duties, responsibilities, and authorities 
set forth in the Inspector General Act of 1978. The DNI has 
appointed an Inspector General and has granted certain 
authorities pursuant to DNI Instruction No. 2005-10 (Sept. 7, 
2005).
      A strong Inspector General is vital to achieving the 
goal, set forth in the Intelligence Reform Act, of improving 
the operations and effectiveness of the Intelligence Community. 
It is also vital to achieving the broader goal of identifying 
problems and deficiencies wherever they may be found in the 
Intelligence Community with respect to matters within the 
responsibility and authority of the DNI, especially the manner 
in which elements of the Intelligence Community interact with 
each other in providing access to information and undertaking 
joint or cooperative activities. By way of a new section 103H 
of the National Security Act of 1947, this section establishes 
an Inspector General of the Intelligence Community in order to 
provide to the DNI, and through reports to the Congress, the 
benefits of an Inspector General with full statutory 
authorities and the requisite independence.
      The office is established within the ODNI. The Inspector 
General will keep both the DNI and the congressional 
intelligence committees fully and currently informed about 
problems and deficiencies in Intelligence Community programs 
and operations and the need for corrective actions. The 
Inspector General will be appointed by the President, with the 
advice and consent of the Senate, and will report directly to 
the DNI. To bolster the Inspector General's independence within 
the Intelligence Community, the Inspector General may be 
removed only by the President, who must communicate the reasons 
for the removal to the congressional intelligence committees.
      The DNI may prohibit the Inspector General from 
conducting an investigation, inspection, or audit if the DNI 
determines that is necessary to protect vital national security 
interests. If the DNI exercises the authority to prohibit an 
investigation, the DNI must provide the reasons to the 
congressional intelligence committees within seven days. The 
Inspector General may provide a response to the committees.
      The Inspector General will have direct and prompt access 
to the DNI and any Intelligence Community employee or employee 
of a contractor whose testimony is needed. The Inspector 
General will also have direct access to all records that relate 
to programs and activities for which the Inspector General has 
responsibility. Failure to cooperate will be grounds for 
appropriate administrative action.
      The Inspector General will have subpoena authority. 
However, information within the possession of the United States 
government must be obtained through other procedures. Subject 
to the DNI's concurrence, the Inspector General may request 
information from any U.S. government department, agency, or 
element. They must provide the information to the Inspector 
General insofar as practicable and not in violation of law or 
regulation.
      The Inspector General must submit semiannual reports to 
the DNI that include a description of significant problems 
relating to Intelligence Community programs and operations and 
to the relationships between Intelligence Community elements. 
The reports must include a description of Inspector General 
recommendations and a statement whether corrective action has 
been completed. The Inspector General shall provide any portion 
of the report involving a component of a department of the U.S. 
government simultaneously to the head of that department with 
submission of the report to the DNI. Within 30 days of 
receiving it from the Inspector General, the DNI must submit 
each semiannual report to Congress.
      The Inspector General must immediately report to the DNI 
particularly serious or flagrant violations. Within seven days, 
the DNI must transmit those reports to the congressional 
intelligence committees together with any comments. In the 
event the Inspector General is unable to resolve differences 
with the DNI, the Inspector General is authorized to report a 
serious or flagrant violation directly to the congressional 
intelligence committees. Reports to the congressional 
intelligence committees are also required with respect to 
investigations concerning high-ranking Intelligence Community 
officials.
      Intelligence Community employees or employees of 
contractors who intend to report to Congress an ``urgent 
concern''--such as a violation of law or Executive order, a 
false statement to Congress, or a willful withholding from 
Congress--may report such complaints and supporting information 
to the Inspector General. Following a review by the Inspector 
General to determine the credibility of the complaint or 
information, the Inspector General must transmit such complaint 
and information to the DNI. On receiving the complaints or 
information from the Inspector General (together with the 
Inspector General's credibility determination), the DNI must 
transmit the complaint or information to the congressional 
intelligence committees. If the Inspector General does not find 
a complaint or information to be credible, the reporting 
individual may submit the matter directly to the congressional 
intelligence committees by following appropriate security 
practices outlined by the DNI. Reprisals or threats of reprisal 
against reporting individuals constitute reportable ``urgent 
concerns.''
      In providing this channel for whistleblower 
communications to Congress, Section 413 does not disturb, and 
the conferees intend to retain, the authoritative guidance for 
analogous provisions of the Intelligence Community 
Whistleblower Act of 1998, Pub. L. No. 105-272 (October 20, 
1998) as set forth in the findings in paragraphs (1) through 
(6) of section 701(b) of that Act, the Senate committee report 
for the legislation, S. Rep. No. 105-185, at 25-27, and 
particularly the conference report, H.R. Rep. 105-780, at 33-
34, which emphasized that a disclosure to the Inspector General 
``is not the exclusive process by which an Intelligence 
Community employee may make a report to Congress.''
      For matters within the jurisdiction of both the Inspector 
General of the Intelligence Community and an Inspector General 
for another Intelligence Community element, the Inspectors 
General shall expeditiously resolve who will undertake an 
investigation, inspection, or audit. In resolving that 
question, under an extensive subsection entitled ``Coordination 
Among Inspectors General of Intelligence Community,'' the 
Inspectors General may request the assistance of the 
Intelligence Community Inspectors General Forum (a presently 
existing informal body whose existence is ratified by this 
section). In the event that the Inspectors General are still 
unable to resolve the question, they shall submit it for 
resolution to the DNI and the head of the department (or to the 
Director of the CIA in matters involving the CIA Inspector 
General, in accordance with a clarifying amendment of the 
conferees) in which an Inspector General with jurisdiction 
concurrent to that of the Inspector General of the Intelligence 
Community is located. This basic limitation addresses the 
concern raised by the DNI about the preservation of the 
authority of heads of departments and agencies over their 
respective departments.
      Within Congress, mutuality of oversight is assured by the 
requirement that Inspector General reports concerning 
Intelligence Committee elements within departments are shared 
with committees that have jurisdiction over those departments.
      Except for the provision clarifying that unresolved 
questions involving the CIA Inspector General will also be 
submitted to the Director of the CIA, rather than the head of a 
department, Section 413 is identical to Section 410 of the 
Senate amendment. The House bill did not have a similar 
provision.
Section 414. Annual report on foreign language proficiency in the 
        Intelligence Community
      Section 414 provides for an annual report by the DNI on 
the proficiency of each element of the Intelligence Community 
in foreign languages and, if appropriate, in foreign dialects. 
The section also requires the DNI to report on foreign language 
training. The Intelligence Community has an increasing need for 
fluency in difficult-to-master languages and for expertise in 
foreign cultures. The information required by the report will 
allow the congressional intelligence committees to better 
assess the Intelligence Community's ability to manage language 
resources. Section 414 is based on Sections 412 and 413 of the 
House bill, which have been merged by the conferees. The Senate 
amendment did not have a comparable provision.
Section 415. Director of National Intelligence report on retirement 
        benefits for former employees of Air America
      Section 415 provides for a report by the DNI on the 
advisability of providing federal retirement benefits to United 
States citizens who were employees of Air America or an 
associated company prior to 1977, during the time that the 
company was owned or controlled by the United States and 
operated by the CIA. Section 415 is identical to Section 425 of 
the Senate amendment and Section 415 of the House bill.
      The conferees note that H.R. 1271 was introduced in the 
House in the 110th Congress, and H.R. 1276 and S. 651 were 
introduced in the House and Senate in the 109th Congress, to 
make service performed with Air America and certain other 
entities creditable for federal civil service retirement 
purpose. By including Section 415 in this authorization bill, 
the conferees take no position on the merits of that 
legislation.
      Although the section invites the DNI to submit any 
recommendations on the ultimate question of providing benefits, 
the main purpose of the report is to provide Congress with the 
facts upon which Congress can make that determination. 
Accordingly, Section 415 outlines the factual elements required 
by the report. To aid in the preparation of the report, the 
section authorizes the assistance of the Comptroller General. 
Among the elements of the report should be: the relationship of 
Air America to the CIA, the missions it performed, and the 
casualties its employees suffered, as well as the retirement 
benefits that had been contracted for or promised to Air 
America employees and the retirement benefits Air America 
employees received.
      On September 25, 2007, the CIA provided a three page 
letter to the congressional intelligence and appropriations 
committees in response to the Senate Select Committee on 
Intelligence Report 109-259 to S. 3237, requesting a report on 
``the advisability of providing federal retirement benefits to 
United States citizens who were employees of Air America or an 
associated company prior to 1977, during the time that the 
company was owned or controlled by the United States and 
operated by the CIA.'' Although the letter describes the legal 
basis for denying federal retirement benefits to employees of 
Air America, it does not provide the factual background that 
would allow Congress to make an assessment of whether to 
provide employees of Air America with federal retirement 
benefits. The report requested in Section 415 therefore 
continues to be necessary for a comprehensive exploration of 
the underlying issues.
Section 416. Space intelligence
      Section 416 underscores the importance of the DNI's 
consideration of space intelligence issues by adding this 
responsibility to the DNI's statutory duties in Section 102A of 
the National Security Act of 1947 (50 U.S.C. 403-1). Section 
416 requires the DNI to consider space intelligence issues and 
concerns in setting intelligence priorities, conducting 
analysis, and acquiring major systems. The Section also 
requires the DNI to ensure that agencies give due consideration 
to the vulnerability assessments prepared for a given major 
system at all stages of architecture and system planning, 
development, acquisition, operation, and support of a space 
intelligence system.
      Section 412 of the Senate amendment would have created a 
new National Space Intelligence Office within the ODNI to 
coordinate and provide policy direction for the management of 
space-related intelligence assets and the development of 
personnel in space-related fields. The National Space 
Intelligence Office would also have been responsible for 
prioritizing space-related collection activities and evaluating 
analytic assessments of threats to classified United States 
space intelligence systems. The DNI, however, expressed concern 
about the creation of a dedicated office in the ODNI for space 
intelligence. Section 416 addresses that concern by 
highlighting the importance of space intelligence, while still 
giving the DNI flexibility to organize the Intelligence 
Community to implement responsibilities for that intelligence.
      The House bill had no similar provision.
Section 417. Operational files in the Office of the Director of 
        National Intelligence
      In the CIA Information Act, Pub. L. No. 98-477 (October 
15, 1984) (50 U.S.C. 431), Congress authorized the Director of 
Central Intelligence to exempt operational files of the CIA 
from several requirements of the Freedom of Information Act 
(``FOIA''), particularly those requiring search and review in 
response to FOIA requests. In a series of amendments to Title 
VII of the National Security Act of 1947, Congress has extended 
the exemption to the operational files of the National 
Geospatial-Intelligence Agency (``NGA''), the National Security 
Agency (``NSA''), the National Reconnaissance Office (``NRO''), 
and the Defense Intelligence Agency (``DIA''). It has also 
provided that files of the Office of the National 
Counterintelligence Executive (``NCIX'') should be treated as 
operational files of the CIA (to the extent they meet the 
criteria for CIA operational files).
      Section 417 adds a new section 706 to the National 
Security Act of 1947. Components of the ODNI, including the 
National Counterterrorism Center (``NCTC''), require access to 
information contained in CIA and other operational files. The 
purpose of section 706 is to make clear that operational files 
of any Intelligence Community component, for which an 
operational files exemption is applicable, retain their 
exemption from FOIA search, review, disclosure, or publication 
when they are provided to an element of the ODNI. They also 
retain their exemption when they are incorporated in any 
substantially similar files of the ODNI.
      Section 706 provides several limitations. The exemption 
does not apply to information disseminated beyond the ODNI. 
Also, as Congress has provided in the operational files 
exemptions for the CIA and other Intelligence Community 
elements, section 706 provides that the exemption does not 
apply to requests by United States citizens or permanent 
residents for information about themselves (although other FOIA 
exemptions, such as appropriate classification, may continue to 
protect such files from public disclosure). The exemption would 
not apply to the subject matter of a congressional or Executive 
branch investigation into improprieties or violations of law.
      Finally, Section 706 provides for a decennial review by 
the DNI to determine whether exemptions may be removed from any 
category of exempted files. This review shall include 
consideration of the historical value or other public interest 
in the subject matter of those categories and the potential for 
declassifying a significant part of the information contained 
in them. The conferees underscore the importance of this 
requirement, which applies to the other operational exemptions 
in Title VII. The conferees also expect the DNI to submit the 
results of such review to the congressional intelligence 
committees in a timely manner.
      Section 417 is based on Section 412 of the Senate 
amendment. The House bill did not contain a comparable 
provision. The conferees added the requirement of 
substantiality in the similarity between ODNI files and those 
of the originating element in order to tighten the connection 
between the files that are exempt in the originating element 
and the files in the ODNI that would also be exempt.
Section 418. Inapplicability of Federal Advisory Committee Act to 
        advisory committees of the Office of the Director of National 
        Intelligence
      Congress enacted the Federal Advisory Committee Act 
(FACA) (5 U.S.C. App.) to regulate the use of advisory 
committees throughout the Federal Government. FACA sets forth 
the responsibilities of the Executive branch with regard to 
such committees and outlines procedures and requirements for 
them. As originally enacted in 1972, FACA expressly exempted 
advisory committees utilized by the CIA and the Federal Reserve 
System. Section 418 amends FACA to extend this exemption to 
advisory committees established or used by the ODNI. Section 
418 is identical to Section 415 of the Senate amendment. The 
House bill did not contain a comparable provision.
Section 419. Applicability of the Privacy Act to the Director of 
        National Intelligence and Office of the Director of National 
        Intelligence
      The Privacy Act (5 U.S.C. 552a) has long contained a 
provision under which the Director of Central Intelligence and 
then (after enactment of the Intelligence Reform Act) the CIA 
Director could promulgate rules to exempt any system of records 
within the CIA from certain disclosure requirements under the 
Act. The exemption authority was designed to ensure that the 
CIA could provide safeguards for certain sensitive information 
in its records systems. In assuming the leadership of the 
Intelligence Community, the DNI similarly requires the ability 
to safeguard sensitive information in records systems within 
the ODNI. Accordingly, Section 419 extends to the DNI the 
authority to promulgate rules under which records systems of 
the ODNI may be exempted from certain Privacy Act disclosure 
requirements. It is identical to Section 417 of the Senate 
amendment. The House bill did not contain a comparable 
provision.
Section 420. Repeal of certain authorities relating to the Office of 
        the National Counterintelligence Executive
      Section 420 amends the authorities and structure of the 
NCIX to eliminate certain independent administrative 
authorities that had been vested in the NCIX when that official 
was appointed by and reported to the President. Those 
authorities are unnecessary now that the NCIX is to be 
appointed by and is under the authority of the DNI. Section 420 
is identical to Section 414 of the Senate amendment and Section 
432 of the House bill.

                Subtitle B--Central Intelligence Agency

Section 431. Review of covert action programs by Inspector General of 
        the Central Intelligence Agency
      Title V of the National Security Act of 1947, entitled 
``Accountability for Intelligence Activities,'' sets forth the 
Act's basic requirements on Executive branch obligations to 
keep the congressional intelligence committees fully informed 
about intelligence activities. Section 503 of the National 
Security Act of 1947 (50 U.S.C. 413b) is specifically devoted 
to presidential findings and congressional notification of 
covert actions. Section 431 augments the oversight of covert 
actions by adding a new subsection to Section 503 that requires 
that the CIA Inspector General conduct an audit of each covert 
action at least every three years and submit to the 
congressional intelligence committees a report containing the 
audit results within 60 days of completing the audit. To a 
considerable extent, this requirement confirms in statute 
existing practice and assures its regularity.
      The Director of National Intelligence has expressed 
concern that this audit requirement, and several other 
provisions on Intelligence Community reports, raise concerns 
with respect to the President's authority to control access to 
national security information. To allay any such concern 
regarding the covert action audit requirement, the conferees 
have amended Section 431 to state that the requirement is 
subject to the longstanding provisions of section 17(b)(3) and 
(4) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
403q(b)(3) and (4)) that empower the CIA Director to prohibit 
the CIA Inspector General from initiating, carrying out, or 
completing an audit if the Director determines that the 
prohibition is necessary to protect vital national security 
interests of the United States, provided that the Director 
report the reasons to the congressional intelligence 
committees.
      Section 431 is based on Section 423 of the House bill. 
The Senate amendment did not contain a comparable provision.
Section 432. Inapplicability to the Director of the Central 
        Intelligence Agency of requirement for annual report on 
        progress in auditable financial statements
      Section 432 is identical to Section 422 of the Senate 
amendment and Section 424 of the House bill. Section 432 
relieves the CIA Director from the requirement in section 114A 
of the National Security Act of 1947 (50 U.S.C. 404i-1) to 
submit to the congressional intelligence committees an annual 
report describing the activities being taken to ensure that 
financial statements of the CIA can be audited in accordance 
with applicable law and the requirements of OMB. Although 
concern remains that the CIA has had minimal success in 
achieving unqualified opinions on its financial statements, the 
report required by Section 114A is unnecessary as CIA is now 
submitting audited financial statements. The requirements of 
Section 114A continue to apply to the Directors of NSA, DIA, 
and NGA.
Section 433. Additional functions and authorities for protective 
        personnel of the Central Intelligence Agency
      Section 433 amends section 5(a)(4) of the Central 
Intelligence Agency Act of 1949 (50 U.S.C. 403f(a)(4)) which 
authorizes protective functions by designated security 
personnel who serve on CIA protective details.
      The section authorizes protective detail personnel, when 
engaged in, and in furtherance of, the performance of 
protective functions, to make arrests in two circumstances. 
Protective detail personnel may make arrests without a warrant 
for any offense against the United States--whether a felony, 
misdemeanor, or infraction--that is committed in their 
presence. They may also make arrests without a warrant if they 
have reasonable grounds to believe that the person to be 
arrested has committed or is committing a felony, but not other 
offenses, under the laws of the United States.
      Guidelines approved by the CIA Director and the Attorney 
General will provide safeguards and procedures to ensure the 
proper exercise of this authority. Section 433 specifically 
does not grant any authority to serve civil process or to 
investigate crimes.
      The authority provided by this section is consistent with 
those of other Federal elements with protective functions, such 
as the Secret Service (18 U.S.C. 3056(c)(1)(C)), the State 
Department Diplomatic Security Service (22 U.S.C. 2709(a)(5)), 
and the Capitol Police (2 U.S.C. 1966(c)). Arrest authority 
will contribute significantly to the ability of CIA protective 
detail personnel to fulfill their responsibility to protect 
officials against serious threats without being dependent on 
the ability of Federal, State, or local law enforcement 
officers to respond immediately. The grant of arrest authority 
is supplemental to all other authority CIA protective detail 
personnel have by virtue of their statutory responsibility to 
perform the protective functions set forth in the CIA Act of 
1949.
      Section 433 also authorizes the CIA Director on the 
request of the DNI to make CIA protective detail personnel 
available to the DNI and to other personnel within the ODNI.
      The CIA Director shall submit to the congressional 
intelligence committees as soon as possible, but not later than 
10 days after an arrest, a report describing each exercise of 
authority under this section.
      Section 433 is based on Section 423 of the Senate 
amendment. The House bill did not include a comparable 
provision. The conferees added the explicit requirement that 
arrests be in furtherance of the performance of protective 
functions and the requirement for a report to the congressional 
intelligence committees about each exercise of arrest 
authority.
Section 434. Technical amendments relating to titles of certain CIA 
        positions
      Section 434 replaces out-of-date titles for CIA positions 
with the current titles of the successors of those positions in 
a provision in section 17 of the Central Intelligence Agency 
Act of 1949 (50 U.S.C. 403q) on the obligation of the CIA 
Inspector General to notify the congressional intelligence 
committees about investigations, inspections, or audits 
concerning high-ranking CIA officials. Section 434 is similar 
to Section 424 of the Senate amendment and Section 516 of the 
House bill, except for a conference agreement to add additional 
titles that needed to be changed.
Section 435. Clarifying amendments relating to section 105 of the 
        Intelligence Authorization Act for Fiscal Year 2004
      Section 435 changes the reference to the Director of 
Central Intelligence to the Director of National Intelligence 
to clarify that the establishment of the Office of Intelligence 
and Analysis within the Department of the Treasury (section 105 
of the Intelligence Authorization Act for Fiscal Year 2004 
(Pub. L. No. 108-177 (Dec. 13, 2003)), and its reorganization 
within the Office of Terrorism and Financial Intelligence 
(section 222 of the Transportation, Treasury, Independent 
Agencies, and General Government Appropriations Act, 2005 
(Division H, Pub. L. No. 108-447 (Dec. 8, 2004)), do not affect 
the authorities and responsibilities of the DNI with respect to 
the Office of Intelligence and Analysis as an element of the 
Intelligence Community. Section 435 is identical to Section 442 
of the Senate amendment and Section 431 of the House bill.

              Subtitle C--Defense Intelligence Components

Section 441. Enhancement of National Security Agency training program
      Section 441 permits the Director of the National Security 
Agency to protect intelligence sources and methods by deleting 
a requirement that NSA publicly identify to educational 
institutions students who are NSA employees or training program 
participants. Deletion of this disclosure requirement will 
enhance the ability of NSA to protect personnel and prospective 
personnel and to preserve the ability of training program 
participants to undertake future clandestine or other sensitive 
assignments for the Intelligence Community.
      The conferees recognize that nondisclosure is appropriate 
when disclosure would threaten intelligence sources or methods, 
would endanger the life or safety of the student, or would 
limit the employee's or prospective employee's ability to 
perform intelligence activities in the future. Notwithstanding 
the deletion of the disclosure requirement, the conferees 
expect NSA to continue to prohibit participants in the training 
program from engaging in any intelligence functions at the 
institutions they attend under the program. See H.R. Rep. No. 
99-690, Part I (July 17, 1986) (``NSA employees attending an 
institution under the program will have no intelligence 
function whatever to perform at the institution.'').
      Section 441 is similar to Section 431(b) of the Senate 
amendment. The conferees did not include subsection (a) of 
Section 431 of the Senate amendment, which was a clarifying 
provision to allow the NSA to recoup the educational costs 
expended for the benefit of a student who fails to maintain 
satisfactory academic performance. The conferees believe that 
this matter and its application to other Intelligence Community 
scholarship programs should be given further study by the 
congressional intelligence committees. The House bill had no 
similar provision.
Section 442. Codification of authorities of National Security Agency 
        protective personnel
      Section 442 amends the National Security Agency Act of 
1959 (50 U.S.C. 402 note) by adding a new Section 21 to clarify 
and enhance the authority of protective details for NSA.
      The new section 21(a) would authorize the Director of NSA 
to designate NSA personnel to perform protective detail 
functions for the Director and other personnel of NSA who are 
designated from time to time by the Director as requiring 
protection. Section 11 of the NSA Act of 1959 presently 
provides that the Director of NSA may authorize agency 
personnel to perform certain security functions at NSA 
headquarters, at certain other facilities, and around the 
perimeter of those facilities. The new authority for protective 
details would enable the Director of the NSA to provide 
security when the Director or other designated personnel 
require security away from those facilities.
      The new section 21(b) would provide that NSA personnel, 
when engaged in performing protective detail functions, and in 
furtherance of the performance of those functions, may exercise 
the same arrest authority that Section 433 of this Act provides 
for CIA protective detail personnel. The arrest authority for 
NSA protective detail personnel would be subject to guidelines 
approved by the Director of NSA and the Attorney General. The 
purpose and extent of that arrest authority, the limitations on 
it, and reporting expectations about it are described in the 
explanation for Section 433. That analysis and explanation 
applies equally to the arrest authority provided to NSA 
protective detail personnel by Section 21(b).
      While this Act provides separately for authority for CIA 
and NSA protective details, the DNI should advise the 
congressional intelligence committees whether overall policies, 
procedures, and authority should be provided for protective 
services, when necessary, for other Intelligence Community 
elements or personnel (or their immediate families).
      Section 442 is similar to Section 432 of the Senate 
amendment. The House bill had no comparable provision.
Section 443. Inspector general matters
      The Inspector General Act of 1978 (Pub. L. No. 95-452 
(Oct. 12, 1978)) established a government-wide system of 
Inspectors General, some appointed by the President with the 
advice and consent of the Senate and others ``administratively 
appointed'' by the heads of their respective Federal entities. 
These Inspector Generals were authorized to ``conduct and 
supervise audits and investigations relating to the programs 
and operations'' of the government and ``to promote economy, 
efficiency, and effectiveness in the administration of, and *  
*  * to prevent and detect fraud and abuse in, such programs 
and operations.'' 5 U.S.C. App. 2. These Inspectors General 
also perform an important reporting function, ``keeping the 
head of the establishment and the Congress fully and currently 
informed about problems and deficiencies relating to the 
administration of *  *  * programs and operations and the 
necessity for and progress of corrective action.'' Id. The 
investigative authorities exercised by Inspectors General, and 
their relative independence from the government operations they 
audit and investigate, provide an important mechanism to ensure 
that the operations of the government are conducted as 
efficiently and effectively as possible.
      The Inspectors General of the CIA and Departments of 
Defense, Energy, Homeland Security, Justice, State, and 
Treasury are appointed by the President with the advice and 
consent of the Senate. These Inspectors General--authorized by 
either the Inspector General Act of 1978 or section 17 of the 
CIA Act of 1949--enjoy a degree of independence from all but 
the head of their respective departments or agencies. They also 
have explicit statutory authority to access information from 
their departments or agencies or other United States Government 
departments and agencies and may use subpoenas to access 
information (e.g., from an agency contractor) necessary to 
carry out their authorized functions.
      The National Reconnaissance Office, the Defense 
Intelligence Agency, the National Security Agency and the 
National Geospatial-Intelligence Agency have established their 
own ``administrative'' Inspectors General. However, because 
they are not identified in section 8G of the Inspector General 
Act of 1978, they lack explicit statutory authorization to 
access information relevant to their audits or investigations, 
or to compel the production of information via subpoena. This 
lack of authority has impeded access to information, in 
particular information from contractors, that is necessary for 
them to perform their important oversight function. These 
Inspectors General also lack the indicia of independence 
necessary for the Government Accountability Office to recognize 
their annual financial statement audits as being in compliance 
with the Chief Financial Officers Act of 1990 (Pub. L. No. 101-
576 (Nov. 15, 1990)). The lack of independence also prevents 
the Department of Defense Inspector General, and would prevent 
the Inspector General of the Intelligence Community, from 
relying on the results of NRO, DIA, NSA, or NGA Inspector 
General audits or investigations that must meet ``generally 
accepted government auditing standards.''
      To provide an additional level of independence and to 
ensure prompt access to the information necessary for these 
Inspectors General to perform their audits and investigations, 
Section 443 amends Section 8G(a)(2) of the Inspector General 
Act of 1978 to include NRO, DIA, NSA, and NGA as ``designated 
federal entities.'' As so designated, the heads of these 
Intelligence Community elements will be required by statute 
administratively to appoint Inspectors General for these 
agencies.
      Also, as designated Inspectors General under the 
Inspector General Act of 1978, these Inspectors General will be 
responsible to the heads of the NRO, DIA, NSA, and NGA. The 
removal or transfer of any of these Inspectors General by the 
head of their office or agency must be promptly reported to the 
congressional intelligence committees. These Inspectors General 
will also be able to exercise other investigative authorities, 
including those governing access to information and the 
issuance of subpoenas, utilized by other Inspectors General 
under the Inspector General Act of 1978.
      To protect vital national security interests, Section 443 
permits the Secretary of Defense, in consultation with the 
Director of National Intelligence, to prohibit the Inspectors 
General of the NRO, DIA, NSA, and NGA from initiating, carrying 
out, or completing any audit or investigation they are 
otherwise authorized to conduct. This authority is similar to 
the authority of the CIA Director under section 17 of the CIA 
Act of 1949 with respect to the Inspector General of the CIA 
and the authority of the Secretary of Defense under section 8 
of the Inspector General Act of 1978 with respect to the 
Department of Defense Inspector General. It will provide the 
President, through the Secretary of Defense, in consultation 
with the DNI, a mechanism to protect extremely sensitive 
intelligence sources and methods or other vital national 
security interests. The Committee expects that this authority 
will be exercised rarely by the Secretary of Defense.
      The Senate amendment had provided the authority to 
prohibit the Inspectors General from initiating, carrying out, 
or completing any audit or investigation to either the DNI or 
the Secretary of Defense. To address Administration concerns 
that authorizing the DNI to cut off an investigation that had 
been ordered by the head of an executive department would be 
inconsistent with the preservation of the authority of the 
heads of departments and agencies over their respective 
departments, the conferees changed this provision to limit the 
authority to the Secretary of Defense, in consultation with the 
DNI.
      Section 443 is similar to Section 433 of the Senate 
amendment. The House bill had no similar provision.
Section 444. Confirmation of appointment of heads of certain components 
        of the Intelligence Community
      Under present law and practice, the directors of the NSA 
and NRO, each with a distinct and significant role in the 
national intelligence mission, are not confirmed by the Senate 
in relation to their leadership of these agencies. Presently, 
the President appoints the Director of NSA and the Secretary of 
Defense appoints the Director of the NRO. Neither of these 
appointments must be confirmed by the Senate, unless a military 
officer is promoted or transferred into the position. Under 
that circumstance, Senate confirmation of the promotion or 
assignment is the responsibility of the Committee on Armed 
Services. That committee's review, however, relates to the 
military promotion or assignment and not specifically to the 
assumption by the individual of the leadership of a critical 
element of the Intelligence Community.
      Section 434 of the Senate amendment provided that the 
heads of NSA, NGA, and NRO would be nominated by the President 
and that the nominations would be confirmed by the Senate. 
Through advice and consent, the Senate can enable the Congress 
to fulfill more completely its responsibility for providing 
oversight to the intelligence activities of the United States 
Government.
      To respond to the concerns of the DNI about the increase 
in the number of Senate-confirmed positions within the 
Intelligence Community, the conferees agreed that only the 
heads of the NSA and NRO, as the larger two of the three 
agencies, should be nominated by the President and confirmed by 
the Senate at this time. While all three agencies play a 
critical role in the national intelligence mission, the 
spending of NSA and NRO comprises a significant portion of the 
entire intelligence budget of the United States, and a 
substantial portion of the National Intelligence Program. The 
activities of NSA and NRO are also of particular concern to the 
congressional intelligence committees, because of the need for 
NSA's authorized collection to be consistent with the 
protection of the civil liberties and privacy interests of U.S. 
persons, and because of concerns about NRO's management of the 
significant budget resources and mission with which it is 
entrusted.
      Section 444(b) provides that the amendments made by 
section 444 apply prospectively. Therefore, the Directors of 
NSA and NRO on the date of the enactment of this Act will not 
be affected by the amendments, which will apply initially to 
the appointment and confirmation of their successors. Section 
444 does not alter the role of the Committee on Armed Services 
in reviewing and approving the promotion or assignment of 
military officers.
      The House bill had no similar provision.
Section 445. Clarification of national security missions of National 
        Geospatial-Intelligence Agency for analysis and dissemination 
        of certain intelligence information
      The National Imagery and Mapping Agency Act of 1996 (Pub. 
L. No. 104-201 (Sept. 23, 1996) (NIMA Act)) formally merged the 
imagery analysis and mapping efforts of the Department of 
Defense and the CIA. In the NIMA Act, Congress cited a need 
``to provide a single agency focus for the growing number and 
diverse types of customers for imagery and geospatial 
information resources within the Government * * * to harness, 
leverage, and focus rapid technological developments to serve 
the imagery, imagery intelligence, and geospatial information 
customers.'' Section 1102(1) of the NIMA Act. Since then, there 
have been rapid developments in airborne and commercial imagery 
platforms, new imagery and geospatial phenomenology, full 
motion video, and geospatial analysis tools.
      Section 921 of the National Defense Authorization Act for 
Fiscal Year 2004 (Pub. L. No. 108-136 (Nov. 24, 2003)) changed 
the name of the National Imagery and Mapping Agency to the 
National Geospatial-Intelligence Agency. The name change was 
intended to introduce the term ``geospatial intelligence'' to 
better describe the unified activities of NGA related to the 
``analysis and visual representation of characteristics of the 
earth and activity on its surface.'' See S. Rep. 108-46 (May 
13, 2003) (accompanying The National Defense Authorization Act 
for Fiscal Year 2004, S. 1050, 108th Cong., 1st Sess.).
      Though the NGA has made significant progress toward 
unifying the traditional imagery analysis and mapping missions 
of the CIA and Department of Defense, it has been slow to 
embrace other facets of ``geospatial intelligence,'' including 
the processing, storage, and dissemination of full motion video 
(``FMV'') and ground-based photography. Rather, the NGA's 
geospatial product repositories--containing predominantly 
overhead imagery and mapping products--continue to reflect its 
heritage. While the NGA is belatedly beginning to incorporate 
more airborne and commercial imagery, its data holdings and 
products are nearly devoid of FMV and ground-based photography.
      The conferees believe that FMV and ground-based 
photography should be included, with available positional data, 
in NGA data repositories for retrieval on Department of Defense 
and Intelligence Community networks. Current mission planners 
and military personnel are well-served with traditional imagery 
products and maps, but FMV of the route to and from a facility 
or photographs of what a facility would look like to a foot 
soldier--rather than from an aircraft--would be of immense 
value to military personnel and intelligence officers. Ground-
based photography is amply available from open sources, as well 
as other government sources such as military units, United 
States embassy personnel, defense attaches, special operations 
forces, foreign allies, and clandestine officers. These 
products should be better incorporated into NGA data holdings.
      To address these concerns, Section 445 adds an additional 
national security mission to the responsibilities of the NGA. 
To fulfill this new mission, NGA would be required, as directed 
by the DNI, to develop a system to facilitate the analysis, 
dissemination, and incorporation of likenesses, videos, or 
presentations produced by ground-based platforms, including 
handheld or clandestine photography taken by or on behalf of 
human intelligence collection organizations or available as 
open-source information, into the national system for 
geospatial intelligence.
      Section 445 also makes clear that this new responsibility 
does not include the authority to manage tasking of handheld or 
clandestine photography taken by or on behalf of human 
intelligence collection organizations. Although Section 445 
does not give the NGA authority to set technical requirements 
for collection of handheld or clandestine photography, the 
conferees encourage the NGA to engage other elements of the 
Intelligence Community on these technical requirements to 
ensure that their output can be incorporated into the national 
system for geospatial-intelligence within the security handling 
guidelines consistent with the photography's classification as 
determined by the appropriate authority.
      Section 445 is similar to Section 435 of the Senate 
amendment. The House bill had no similar provision.
Section 446. Security clearances in the National Geospatial-
        Intelligence Agency
      Section 446 requires the Secretary of Defense to delegate 
to the Director of NGA through December 31, 2008, the personnel 
security authority with respect to NGA personnel that is 
identical to the personnel security authority of the Director 
of NSA with respect to NSA personnel. Section 446 is designed 
as an interim measure to address what has been a large backlog 
in security clearances at NGA. The conferees believe the DNI 
and the Secretary of Defense must continue to seek a permanent 
method of addressing clearance matters such as these. Section 
446 is identical to Section 436 of the Senate amendment. The 
House bill had no similar provision.

                       Subtitle D--Other Elements

Section 451. Clarification of inclusion of Coast Guard and Drug 
        Enforcement Administration as elements of the Intelligence 
        Community
      Section 451 restores, with respect to the United States 
Coast Guard, the prior definition of ``intelligence community'' 
in the National Security Act of 1947 applicable to that 
service. See 50 U.S.C. 401a. Section 1073 of the Intelligence 
Reform Act modified the definition of ``intelligence 
community,'' inadvertently limiting the Coast Guard's inclusion 
in the Intelligence Community to the Office of Intelligence or 
those portions of the Coast Guard concerned with the analysis 
of intelligence. Section 451 clarifies that all of the Coast 
Guard's intelligence elements are included within the 
definition of the ``intelligence community.''
      Section 451 also codifies the joint decision of the DNI 
and Attorney General that the Drug Enforcement Administration 
should be within the Intelligence Community.
      Section 451 is similar to Section 441 of the Senate 
amendment and Section 433 of the House bill.

                         TITLE V--OTHER MATTERS

                Subtitle A--General Intelligence Matters

Section 501. Extension of National Commission for Review of Research 
        and Development Programs of the United States Intelligence 
        Community
      The National Commission for Review of Research and 
Development Programs of the United States Intelligence 
Community was authorized in the Intelligence Authorization Act 
for Fiscal Year 2003, and lapsed on September 1, 2004. Section 
501 renews authority for this Commission by extending the 
reporting deadline to December 31, 2008, and requiring that new 
members be appointed to the Commission. This section also 
authorizes funds for the commission from the Intelligence 
Community Management Account. Section 501 is similar to Section 
502 of the House bill. The Senate amendment had no similar 
provision.
Section 502. Report on intelligence activities
      Section 502 requires the DNI to submit a report to the 
congressional intelligence committees describing any 
authorization, if it exists, to engage in intelligence 
activities related to the overthrow of a democratically elected 
government during the 10-year period prior to enactment of this 
Act. Section 502 is similar to Section 503 of the House bill. 
The Senate had no comparable provision.
Section 503. Aerial Reconnaissance Platforms
      The conferees agreed to include in Section 503 of the 
conference report the same amendment to Section 133(b) of the 
John Warner National Defense Authorization Act for Fiscal Year 
2007 (``NDAA'') that was included in H.R. 1585, the National 
Defense Authorization Act for Fiscal Year 2008 as passed by the 
House on May 17, 2007.
      Section 501 of the House bill reflected the interest of 
the House that the Secretary of Defense not make the 
certification required in Section 133(b) of the NDAA until 
after a study has been completed to determine whether the 
Global Hawk RQ-4 unmanned aerial vehicle has reached mission 
capability and has attained collection capabilities on a par 
with the capabilities of the U-2 aircraft; the Secretary has 
made a determination whether the Global Hawk RQ-4 unmanned 
aerial vehicle has reached mission capability and has attained 
collection capabilities on a par with the collection 
capabilities of the U-2 Block 20 aircraft program as of the 
2006 Quadrennial Defense Review; and the study has been 
submitted to the congressional committees of jurisdiction in 
accordance with the rules of each chamber.
      The Senate had no comparable provision.

                    Subtitle B--Technical Amendments

Section 511. Technical amendments to Title 10, United States Code, 
        arising from enactment of the Intelligence Reform and Terrorism 
        Protection Act of 2004
      Section 511 corrects a number of technical errors in the 
United States Code arising from the enactment of the 
Intelligence Reform Act in 2004. Section 511 is identical to 
Section 504 of the Senate amendment. The House bill has no 
similar provision.
Section 512. Technical amendments to the Central Intelligence Agency 
        Act of 1949
      Section 512 amends the Central Intelligence Agency Act of 
1949 by updating references to the National Security Act of 
1947 to reflect amendments made by the Intelligence Reform Act. 
Section 512 is identical to Section 505 of the Senate bill and 
similar to Section 422 of the House bill.
Section 513. Technical amendments to the multiyear National 
        Intelligence Program
      Section 513 updates the ``multiyear national intelligence 
program'' to incorporate organizational and nomenclature 
changes made by the Intelligence Reform Act. Section 506 is 
identical to Section 513 of the Senate amendment and Section 
511 of the House bill.
Section 514. Technical clarifications of certain references to Joint 
        Military Intelligence Program and Tactical Intelligence and 
        Related Activities
      Section 514 makes technical clarifications to the 
National Security Act of 1947 to reflect the consolidation of 
the Joint Military Intelligence Program and the Tactical 
Intelligence and Related Activities program into the Military 
Intelligence Program. This section preserves the requirement 
that the DNI participate in the development of the annual 
budget and be consulted prior to the transfer or reprogramming 
of funds for the Military Intelligence Program. Section 514 is 
identical to Section 502 of the Senate amendment and Section 
512 of the House bill.
Section 515. Technical amendments to the National Security Act of 1947
      Section 515 makes a number of technical corrections to 
the National Security Act of 1947 arising from enactment of the 
Intelligence Reform Act. Conferees removed one technical 
correction because it was unnecessary to clarify the scope of a 
completed reporting requirement. Section 515 is otherwise 
identical to Section 501 of the Senate bill and Section 513 of 
the House bill.
Section 516. Technical amendments to the Intelligence Reform and 
        Terrorism Prevention Act of 2004
      Section 516 makes a number of technical and conforming 
amendments to the Intelligence Reform Act. Section 516 is 
identical to Section 503 of the Senate amendment and Section 
514 of the House bill.
Section 517. Technical amendments to the Executive Schedule
      Section 517 makes technical amendments to the Executive 
Schedule to correct outdated and incorrect references to 
``Director of Central Intelligence,'' ``Deputy Directors of 
Central Intelligence,'' and ``General Counsel to the National 
Intelligence Director.'' Section 517 is substantially similar 
to Section 507 of the Senate amendment and Section 515 of the 
House bill.

                            General Matters

Items not included
      The managers agreed not to include in the conference 
report certain sections from the House bill and the Senate 
amendment because these sections were unnecessary; the 
requirements in the section had been or would be otherwise 
fulfilled; the sections related to activities for which funds 
would not be available; or for other reasons.
      Because the DNI expressed concerns over the increase in 
the number of Senate-confirmed positions within the 
Intelligence Community, the conferees reviewed the total number 
of Senate-confirmed positions in the Senate amendment and the 
House bill. On that review, the conferees determined to limit 
the additional confirmed positions in this conference report to 
the three positions they identified to be the highest current 
priority. In doing so, the conferees eliminated a provision 
that would have required the head of NGA to be confirmed by the 
Senate, as discussed in Section 444 of this joint explanatory 
statement, and removed Section 421 of the Senate amendment and 
Section 421 of the House bill. Section 421 of the Senate 
amendment and House bill would have made the position of Deputy 
Director of the Central Intelligence Agency a statutory 
position that required appointment by the President, with the 
advice and consent of the Senate. The conferees expect that the 
congressional intelligence committees will continue to consider 
the appropriate method of appointment of the Deputy Director of 
the Central Intelligence Agency.
      The conference report also eliminates Section 407 of the 
House bill, which would have required the DNI to submit a 
National Intelligence Estimate on the anticipated geopolitical 
effects of global climate change on the national security of 
the United States. The conferees remain fully committed to this 
assessment. The conferees note the DNI has stated that work on 
such a national intelligence assessment has already begun. The 
conferees expect that the national intelligence assessment will 
be transmitted to Congress in a timely manner.
      The House receded on the following sections: Section 405, 
eligibility for incentive awards of personnel assigned to the 
Office of the Director of National Intelligence; Section 504, 
reiteration of the Foreign Intelligence Surveillance Act of 
1978 (``FISA'') as the exclusive means for electronic 
surveillance; Section 517, technical amendments relating to 
redesignation of the National Imagery and Mapping Agency as the 
National Geospatial-Intelligence Agency; Section 601, 
identification of best practices for the communication of 
information concerning a terrorist threat; and Section 602, 
centers of best practices.
      The Senate receded on the following sections: Section 
106, development and acquisition program; Section 315, 
submittal to Congress of certain FISA court orders; Section 
409, reserve for contingencies of the Office of the Director of 
National Intelligence; Section 508, technical amendments 
relating to redesignation of the National Imagery and Mapping 
Agency as the National Geospatial-Intelligence Agency; and 
Section 509, technical amendments relating to the 
responsibility of the Director of National Intelligence. The 
elimination of Section 106 of the Senate amendment is discussed 
in more detail in the classified annex.
      With respect to the two provisions in the House bill and 
Senate amendment dealing with FISA, it was the judgment of the 
conferees that they would best be addressed in pending 
legislation to amend FISA.
Compliance with rule XXI, CL. 9 (House) and with rule XLIV (Senate)
      The following list is submitted in compliance with clause 
9 of rule XXI of the Rules of the House of Representatives and 
rule XLIV of the Standing Rules of the Senate, which require 
publication of a list of congressionally directed spending 
items (Senate), congressional earmarks (House), limited tax 
benefits, and limited tariff benefits included in the 
conference report, the joint explanatory statement, or the 
classified schedule of authorizations accompanying the 
conference report, including the name of each Senator, House 
Member, Delegate, or Resident Commissioner who submitted a 
request to the Committee of jurisdiction for each item so 
identified. Congressionally directed spending items (as defined 
in the Senate rule) and congressional earmarks (as defined in 
the House rule) in this division of the conference report, the 
joint explanatory statement, or the classified schedule of 
authorizations are listed below. The conference report, the 
joint explanatory statement, and the classified schedule of 
authorizations contain no limited tax benefits or limited 
tariff benefits as defined in the applicable House and Senate 
rules.
      The following items are included in the NIP 
authorization:
      (1) A provision directing the expenditure of $3,000,000 
for research into advanced mirror development in the National 
Reconnaissance Program. The provision was requested by 
Congressman Tierney.
      (2) A provision adding $3,200,000 to the National 
Security Agency for the RC-135 sensor upgrade. The provision 
was added at the request of Congressman Hall of Texas.
      (3) A provision adding $2,750,000 to the National 
Security Agency for geo-location software development. The 
provision was added at the request of Congresswoman Eshoo.
      (4) A provision adding $3,000,000 to the National 
Security Agency for a Counterproliferation system prototype. 
The provision was requested by Congressman Ruppersberger.
      (5) A provision adding $23,000,000 to fund the operations 
of the NDIC. The provision was added at the request of 
Congressman Murtha.
      (6) A provision adding $1,600,000 to the Community 
Management Account for the Centers of Academic Excellence. The 
provision was requested by Congressman Hastings of Florida.
      (7) A provision adding $1,500,000 for the Laboratory for 
High-Performance Computational Systems at the Missile and Space 
Intelligence Center. The provision was requested by Congressman 
Cramer.
      (8) A provision adding $1,000,000 to improve rapid 
missile all-source analysis at the Missile and Space 
Intelligence Center. The provision was requested by Congressmen 
Cramer and Everett.
      (9) A provision adding $4,000,000 for a Missile and Space 
Intelligence Center simulation project. The provision was 
requested by Congressman Cramer and Everett.
      (10) A provision adding $1,000,000 for seismic research 
to the General Defense Intelligence Program. The provision was 
requested by Congressman Tierney.
      (11) A provision adding $2,000,000 to the National 
Geospatial Intelligence Program for a global geospatial data 
project. The provision was requested by Congressman Everett.
      (12) A provision adding $1,000,000 for joint intelligence 
training and education to the Joint Counterintelligence 
Training Activity. The provision was requested by Congressman 
Murtha.
      (13) A provision adding $1,000,000 for mobile missile 
analysis and detection to the General Defense Intelligence 
Program. The provision was requested by Congressman Murtha.
      (14) A provision adding $200,000 to the Office of the 
Director of National Intelligence for an Intelligence Training 
Program run by the Kennedy School of Government. This program 
was started in fiscal year 2007, but the President did not 
request funding for it for fiscal year 2008. The provision was 
added at the request of Senator Rockefeller.
      (15) A provision adding $3,000,000 to the Naval 
Oceanographic Command. This provision was added at the request 
of Senator Lott.
      (16) A provision directing the expenditure of $3,000,000 
for a classified effort with the National Reconnaissance 
Office's GEOINT/SIGINT Integrated Ground Development 
Engineering and Management Expenditure Center. This provision 
was added at the request of Senator Rockefeller.
      In addition, the following earmarks (as defined in the 
House rule) are included in the Military Intelligence Program 
and the Information Systems Security Program. The House 
Permanent Select Committee on Intelligence shares jurisdiction 
of these programs with the House Armed Services Committee.
      (1) A provision adding $2,000,000 to the National 
Security Agency for a radio frequency signal collection 
program. The provision was requested by Congressman 
Ruppersberger.
      (2) A provision adding $1,000,000 to the National 
Security Agency for a next-generation signal intelligence 
sensor. The provision was requested by Congressman McCaul.
      (3) A provision adding $1,000,000 to Special Operations 
Command for tactical signals intelligence and geo-location 
cognitive analysis. The provision was requested by Congressman 
Cramer.
      (4) A provision adding $1,000,000 to the United States 
Army for Battle Lab collection management tool synchronization. 
The provision was requested by Congressman Cramer.
      (5) A provision adding $1,500,000 to the United States 
Army for sensor visualization and data fusion. The provision 
was requested by Congressman Tierney.
      (6) A provision adding $3,000,000 to the United States 
Air Force for the RC-135 modernization. The provision was 
requested by Congressman Hall of Texas.
      (7) A provision adding $2,000,000 to the Office of the 
Secretary of Defense for the Western Hemisphere Security 
Analysis Center. The provision was requested by Congressman 
Hastings of Florida.
      (8) A provision adding $10,000,000 to the National 
Security Agency for the national/tactical gateway. The 
provision was requested by Congressman Ruppersberger.
      (9) A provision adding $2,500,000 for computer chip 
hardening to the National Security Agency. The provision was 
requested by Congressman Ruppersberger.
      (10) A provision adding $2,500,000 for the cryptographic 
modernization program to the National Security Agency. The 
provision was requested by Congressman Honda.
                From the Permanent Select Committee on 
                Intelligence, for consideration of the House 
                bill and the Senate amendment, and 
                modifications committed to conference:
                                   Silvestre Reyes,
                                   Alcee L. Hastings,
                                   Leonard L. Boswell,
                                   Bud Cramer,
                                   Anna G. Eshoo,
                                   Rush Holt,
                                   C.A. Ruppersberger,
                                   Mike Thompson,
                                   Janice Schakowsky,
                                   James R. Langevin,
                                   Patrick J. Murphy.
                From the Committee on Armed Services, for 
                consideration of defense tactical intelligence 
                and related activities:
                                   Ike Skelton,
                                   John M. Spratt, Jr.,
                                 Managers on the Part of the House.

                                   John Rockefeller,
                                   Dianne Feinstein,
                                   Ron Wyden,
                                   Evan Bayh,
                                   Barbara A. Mikulski,
                                   Russell D. Feingold,
                                   Bill Nelson,
                                   Sheldon Whitehouse,
                                   Chuck Hagel,
                                   Olympia J. Snowe,
        As additional conferee:
                                   Carl Levin.
                                Managers on the Part of the Senate.

                                  
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