In the Senate of the United States,

October 11, 2004.

Resolved, That the bill from the House of Representatives (H.R. 4548) entitled ‘‘An Act to authorize appropriations for fiscal year 2005 for intelligence and intelligence-related activities of the United States Government, the Community Management Account, and the Central Intelligence

Agency Retirement and Disability System, and for other purposes.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘In3 telligence Authorization Act for Fiscal Year 2005’’.

4 (b) TABLE OF CONTENTS.—The table of contents for

5 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.

Sec. 102. Classified schedule of authorizations.

Sec. 103. Personnel ceiling adjustments.

Sec. 104. Intelligence Community Management Account.

Sec. 105. Incorporation of reporting requirements.

Sec. 106. Specific authorization of funds for intelligence or intelligence-related activities for which fiscal year 2004 appropriations exceed

amounts authorized.

Sec. 107. Preparation and submittal of reports, reviews, studies, and plans relating to intelligence activities of Department of Defense and Department of Energy.

TITLE II—CENTRAL INTELLIGENCE AGENCY RETIREMENT AND

DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

TITLE III—GENERAL PROVISIONS

Sec. 301. Increase in employee compensation and benefits authorized by law.

Sec. 302. Restriction on conduct of intelligence activities.

Sec. 303. Modification of authority to obligate and expend certain funds for intelligence activities.

Sec. 304. Treatment as agent of a foreign power under the Foreign Intelligence

Surveillance Act of 1978 of non-United States persons who engage in international terrorism without affiliation with international terrorist groups.

Sec. 305. Additional annual reporting requirements under the Foreign Intelligence Surveillance Act of 1978.

Sec. 306. Intelligence assessment on sanctuaries for terrorists.

Sec. 307. Additional extension of deadline for final report of the national commission for the review of the research and development programs of

the United States intelligence community.

Sec. 308. Four-year extension of public interest declassification board.

TITLE IV—CENTRAL INTELLIGENCE AGENCY

Sec. 401. Permanent extension of Central Intelligence Agency voluntary separation incentive program.

Sec. 402. Intelligence operations and cover enhancement authority.
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TITLE V—DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

Sec. 501. Use of funds for counterdrug and counterterrorism activities for Colombia.

1 TITLE I—INTELLIGENCE

2 ACTIVITIES

3 SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

4 Funds are hereby authorized to be appropriated for fis5 cal year 2005 for the conduct of the intelligence and intel6 ligence-related activities of the following elements of the

7 United States Government:

8 (1) The Central Intelligence Agency.

9 (2) The Department of Defense.

10 (3) The Defense Intelligence Agency.

11 (4) The National Security Agency.

12 (5) The Department of the Army, the Depart13 ment of the Navy, and the Department of the Air

14 Force.

15 (6) The Department of State.

16 (7) The Department of the Treasury.

17 (8) The Department of Energy.

18 (9) The Department of Justice.

19 (10) The Federal Bureau of Investigation.

20 (11) The National Reconnaissance Office.

21 (12) The National Geospatial-Intelligence Agen22 cy.

23 (13) The Coast Guard.
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1 (14) The Department of Homeland Security.

2 SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

3 (a) SPECIFICATIONS OF AMOUNTS AND PERSONNEL

4 CEILINGS.—The amounts authorized to be appropriated

5 under section 101, and the authorized personnel ceilings as

6 of September 30, 2005, for the conduct of the intelligence

7 and intelligence-related activities of the elements listed in

8 such section, are those specified in the classified Schedule

9 of Authorizations prepared to accompany the conference re10 port on the bill ll of the One Hundred Eighth Congress.

11 (b) AVAILABILITY OF CLASSIFIED SCHEDULE OF AU12 THORIZATIONS.—The Schedule of Authorizations shall be

13 made available to the Committees on Appropriations of the

14 Senate and House of Representatives and to the President.

15 The President shall provide for suitable distribution of the

16 Schedule, or of appropriate portions of the Schedule, within

17 the executive branch.

18 SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

19 (a) AUTHORITY FOR ADJUSTMENTS.—With the ap20 proval of the Director of the Office of Management and

21 Budget, the Director of Central Intelligence may authorize

22 employment of civilian personnel in excess of the number

23 authorized for fiscal year 2005 under section 102 when the

24 Director of Central Intelligence determines that such action

25 is necessary to the performance of important intelligence
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1 functions, except that the number of personnel employed in

2 excess of the number authorized under such section may not,

3 for any element of the intelligence community, exceed 2 per4 cent of the number of civilian personnel authorized under

5 such section for such element.

6 (b) NOTICE TO INTELLIGENCE COMMITTEES.—The Di7 rector of Central Intelligence shall promptly notify the Se8 lect Committee on Intelligence of the Senate and the Perma9 nent Select Committee on Intelligence of the House of Rep10 resentatives whenever the Director exercises the authority

11 granted by this section.

12 SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT AC13 COUNT.

14 (a) AUTHORIZATION OF APPROPRIATIONS.—There is

15 authorized to be appropriated for the Intelligence Commu16 nity Management Account of the Director of Central Intel17 ligence for fiscal year 2005 the sum of $342,995,000. Within

18 such amount, funds identified in the classified Schedule of

19 Authorizations referred to in section 102(a) for advanced

20 research and development shall remain available until Sep21 tember 30, 2006.

22 (b) AUTHORIZED PERSONNEL LEVELS.—The elements

23 within the Intelligence Community Management Account of

24 the Director of Central Intelligence are authorized 310 full25 time personnel as of September 30, 2005. Personnel serving
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1 in such elements may be permanent employees of the Intel2 ligence Community Management Account or personnel de3 tailed from other elements of the United States Government.

4 (c) CLASSIFIED AUTHORIZATIONS.—

5 (1) AUTHORIZATION OF APPROPRIATIONS.—In

6 addition to amounts authorized to be appropriated

7 for the Intelligence Community Management Account

8 by subsection (a), there are also authorized to be ap9 propriated for the Intelligence Community Manage10 ment Account for fiscal year 2005 such additional

11 amounts as are specified in the classified Schedule of

12 Authorizations referred to in section 102(a). Such ad13 ditional amounts for research and development shall

14 remain available until September 30, 2006.

15 (2) AUTHORIZATION OF PERSONNEL.—In addi16 tion to the personnel authorized by subsection (b) for

17 elements of the Intelligence Community Management

18 Account as of September 30, 2005, there are also au19 thorized such additional personnel for such elements

20 as of that date as are specified in the classified Sched21 ule of Authorizations.

22 (d) REIMBURSEMENT.—Except as provided in section

23 113 of the National Security Act of 1947 (50 U.S.C. 404h),

24 during fiscal year 2005 any officer or employee of the

25 United States or a member of the Armed Forces who is de-
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1 tailed to the staff of the Intelligence Community Manage2 ment Account from another element of the United States

3 Government shall be detailed on a reimbursable basis, ex4 cept that any such officer, employee, or member may be de5 tailed on a nonreimbursable basis for a period of less than

6 one year for the performance of temporary functions as re7 quired by the Director of Central Intelligence.

8 (e) NATIONAL DRUG INTELLIGENCE CENTER.—

9 (1) IN GENERAL.—Of the amount authorized to

10 be appropriated in subsection (a), $34,911,000 shall

11 be available for the National Drug Intelligence Cen12 ter. Within such amount, funds provided for research,

13 development, testing, and evaluation purposes shall

14 remain available until September 30, 2006, and funds

15 provided for procurement purposes shall remain

16 available until September 30, 2007.

17 (2) TRANSFER OF FUNDS.—The Director of Cen18 tral Intelligence shall transfer to the Attorney General

19 funds available for the National Drug Intelligence

20 Center under paragraph (1). The Attorney General

21 shall utilize funds so transferred for the activities of

22 the National Drug Intelligence Center.

23 (3) LIMITATION.—Amounts available for the Na24 tional Drug Intelligence Center may not be used in

25 contravention of the provisions of section 103(d)(1) of
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1 the National Security Act of 1947 (50 U.S.C. 403–

2 3(d)(1)).

3 (4) AUTHORITY.—Notwithstanding any other

4 provision of law, the Attorney General shall retain

5 full authority over the operations of the National

6 Drug Intelligence Center.

7 SEC. 105. INCORPORATION OF REPORTING REQUIREMENTS.

8 (a) IN GENERAL.—Each requirement to submit a re9 port to the congressional intelligence committees that is in10 cluded in the joint explanatory statement to accompany the

11 conference report on the bill ll of the One Hundred

12 Eighth Congress, or in the classified annex to this Act, is

13 hereby incorporated into this Act, and is hereby made a

14 requirement in law.

15 (b) CONGRESSIONAL INTELLIGENCE COMMITTEES DE16 FINED.—In this section, the term ‘‘congressional intelligence

17 committees’’ means—

18 (1) the Select Committee on Intelligence of the

19 Senate; and

20 (2) the Permanent Select Committee on Intel21 ligence of the House of Representatives.
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1 SEC. 106. SPECIFIC AUTHORIZATION OF FUNDS FOR INTEL2 LIGENCE OR INTELLIGENCE-RELATED ACTIVI3 TIES FOR WHICH FISCAL YEAR 2004 APPRO4 PRIATIONS EXCEED AMOUNTS AUTHORIZED.

5 Funds appropriated for an intelligence or intelligence6 related activity of the United States Government for fiscal

7 year 2004 in excess of the amount specified for such activity

8 in the classified Schedule of Authorizations prepared to ac9 company the Intelligence Authorization Act for Fiscal Year

10 2004 (Public Law 108–177; 117 Stat. 2599) shall be deemed

11 to be specifically authorized by Congress for purposes of sec12 tion 504(a)(3) of the National Security Act of 1947 (50

13 U.S.C. 414(a)(3)). Such funds shall remain available until

14 September 30, 2005.

15 SEC. 107. PREPARATION AND SUBMITTAL OF REPORTS, RE16 VIEWS, STUDIES, AND PLANS RELATING TO

17 INTELLIGENCE ACTIVITIES OF DEPARTMENT

18 OF DEFENSE AND DEPARTMENT OF ENERGY.

19 (a) CONSULTATION IN PREPARATION.—(1) The Direc20 tor of Central Intelligence shall ensure that any report, re21 view, study, or plan required to be prepared or conducted

22 by a provision of this Act, including a provision of the clas23 sified Schedule of Authorizations referred to in section

24 102(a) or the classified annex to this Act, that involves the

25 intelligence or intelligence-related activities of the Depart26 ment of Defense or the Department of Energy is prepared
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1 or conducted in consultation with the Secretary of Defense

2 or the Secretary of Energy, as appropriate.

3 (2) The Secretary of Defense or the Secretary of En4 ergy may carry out any consultation required by this sub5 section through an official of the Department of Defense or

6 the Department of Energy, as the case may be, designated

7 by such Secretary for that purpose.

8 (b) SUBMITTAL.—Any report, review, study, or plan

9 referred to in subsection (a) shall be submitted, in addition

10 to any other committee of Congress specified for submittal

11 in the provision concerned, to the following committees of

12 Congress:

13 (1) The Committee on Armed Services, the Sub14 committee on Defense of the Committee on Appropria15 tions, and the Select Committee on Intelligence of the

16 Senate.

17 (2) The Committee on Armed Services, and the

18 Subcommittee on Defense of the Committee on Appro19 priations, and the Permanent Select Committee on

20 Intelligence of the House of Representatives.
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1 TITLE II—CENTRAL INTEL2 LIGENCE AGENCY RETIRE3 MENT AND DISABILITY SYS4 TEM

5 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

6 There is authorized to be appropriated for the Central

7 Intelligence Agency Retirement and Disability Fund for fis8 cal year 2005 the sum of $239,400,000.

9 TITLE III—GENERAL

10 PROVISIONS

11 SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND

12 BENEFITS AUTHORIZED BY LAW.

13 Appropriations authorized by this Act for salary, pay,

14 retirement, and other benefits for Federal employees may

15 be increased by such additional or supplemental amounts

16 as may be necessary for increases in such compensation or

17 benefits authorized by law.

18 SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE

19 ACTIVITIES.

20 The authorization of appropriations by this Act shall

21 not be deemed to constitute authority for the conduct of any

22 intelligence activity which is not otherwise authorized by

23 the Constitution or the laws of the United States.
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1 SEC. 303. MODIFICATION OF AUTHORITY TO OBLIGATE AND

2 EXPEND CERTAIN FUNDS FOR INTELLIGENCE

3 ACTIVITIES.

4 Section 504(a)(3) of the National Security Act of 1947

5 (50 U.S.C. 414(a)(3)) is amended—

6 (1) in subparagraph (A), by inserting ‘‘and’’ at

7 the end;

8 (2) by striking subparagraph (B); and

9 (3) by redesignating subparagraph (C) as sub10 paragraph (B).

11 SEC. 304. TREATMENT AS AGENT OF A FOREIGN POWER

12 UNDER THE FOREIGN INTELLIGENCE SUR13 VEILLANCE ACT OF 1978 OF NON-UNITED

14 STATES PERSONS WHO ENGAGE IN INTER15 NATIONAL TERRORISM WITHOUT AFFILI16 ATION WITH INTERNATIONAL TERRORIST

17 GROUPS.

18 (a) IN GENERAL.—Section 101(b)(1) of the Foreign

19 Intelligence Surveillance Act of 1978 (50 U.S.C. 1801(b)(1))

20 is amended by adding at the end the following new subpara21 graph:

22 ‘‘(C) engages in international terrorism or

23 activities in preparation therefor; or’’.

24 (b) SUNSET.—The amendment made by subsection (a)

25 shall be subject to the sunset provision in section 224 of

26 the USA PATRIOT Act of 2001 (Public Law 107–56; 115
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1 Stat. 295), including the exception provided in subsection

2 (b) of such section 224.

3 SEC. 305. ADDITIONAL ANNUAL REPORTING REQUIRE4 MENTS UNDER THE FOREIGN INTELLIGENCE

5 SURVEILLANCE ACT OF 1978.

6 (a) ADDITIONAL REPORTING REQUIREMENTS.—The

7 Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.

8 1801 et seq.) is amended—

9 (1) by redesignating title VI as title VII;

10 (2) by redesignating section 601 as section 701;

11 and

12 (3) by inserting after title V the following new

13 title VI:

14 ‘‘TITLE VI—REPORTING REQUIREMENT

15 ‘‘ANNUAL REPORT OF THE ATTORNEY GENERAL

16 ‘‘SEC. 601. (a) In addition to the reports required by

17 sections 107, 108, 306, 406, and 502 in April each year,

18 the Attorney General shall submit to the appropriate com19 mittees of Congress each year a report setting forth with

20 respect to the one-year period ending on the date of such

21 report—

22 ‘‘(1) the aggregate number of non-United States

23 persons targeted for orders issued under this Act, in24 cluding a break-down of those targeted for—
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1 ‘‘(A) electronic surveillance under section

2 105;

3 ‘‘(B) physical searches under section 304;

4 ‘‘(C) pen registers under section 402; and

5 ‘‘(D) access to records under section 501;

6 ‘‘(2) the number of individuals covered by an

7 order issued under this Act who were determined pur8 suant to activities authorized by this Act to have

9 acted wholly alone in the activities covered by such

10 order;

11 ‘‘(3) the number of times that the Attorney Gen12 eral has authorized that information obtained under

13 this Act may be used in a criminal proceeding or any

14 information derived therefrom may be used in a

15 criminal proceeding; and

16 ‘‘(4) in a manner consistent with the protection

17 of the national security of the United States—

18 ‘‘(A) the portions of the documents and ap19 plications filed with the courts established under

20 section 103 that include significant construction

21 or interpretation of the provisions of this Act,

22 not including the facts of any particular matter,

23 which may be redacted; and

24 ‘‘(B) the portions of the opinions and orders

25 of the courts established under section 103 that
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1 include significant construction or interpretation

2 of the provisions of this Act, not including the

3 facts of any particular matter, which may be re4 dacted.

5 ‘‘(b) The first report under this section shall be sub6 mitted not later than six months after the date of the enact7 ment of this Intelligence Authorization Act for Fiscal Year

8 2005. Subsequent reports under this section shall be sub9 mitted annually thereafter.

10 ‘‘(c) In this section, the term ‘appropriate committees

11 of Congress’ means—

12 ‘‘(1) the Select Committee on Intelligence and the

13 Committee on the Judiciary of the Senate; and

14 ‘‘(2) the Permanent Select Committee on Intel15 ligence and the Committee on the Judiciary of the

16 House of Representatives.’’.

17 (b) CLERICAL AMENDMENT.—The table of contents for

18 that Act is amended by striking the items relating to title

19 VI and inserting the following new items:

‘‘TITLE VI—REPORTING REQUIREMENT

‘‘Sec. 601. Annual report of the Attorney General.

‘‘TITLE VII—EFFECTIVE DATE

‘‘Sec. 701. Effective date.’’.
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1 SEC. 306. INTELLIGENCE ASSESSMENT ON SANCTUARIES

2 FOR TERRORISTS.

3 (a) ASSESSMENT REQUIRED.—Not later than the date

4 specified in subsection (b), the Director of Central Intel5 ligence shall submit to Congress an intelligence assessment

6 that identifies and describes each country or region that is

7 a sanctuary for terrorists or terrorist organizations. The as8 sessment shall be based on current all-source intelligence.

9 (b) SUBMITTAL DATE.—The date of the submittal of

10 the intelligence assessment required by subsection (a) shall

11 be the earlier of—

12 (1) the date that is six months after the date of

13 the enactment of this Act; or

14 (2) June 1, 2005.

15 SEC. 307. ADDITIONAL EXTENSION OF DEADLINE FOR

16 FINAL REPORT OF THE NATIONAL COMMIS17 SION FOR THE REVIEW OF THE RESEARCH

18 AND DEVELOPMENT PROGRAMS OF THE

19 UNITED STATES INTELLIGENCE COMMUNITY.

20 Section 1007(a) of the Intelligence Authorization Act

21 for Fiscal Year 2003 (Public Law 107–306; 50 U.S.C. 401

22 note) is amended by striking ‘‘September 1, 2004’’ and in23 serting ‘‘September 1, 2005’’.
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1 SEC. 308. FOUR-YEAR EXTENSION OF PUBLIC INTEREST DE2 CLASSIFICATION BOARD.

3 Section 710(b) of the Public Interest Declassification

4 Act of 2000 (title VII of Public Law 106–567; 114 Stat.

5 2856; 50 U.S.C. 435 note) is amended by striking ‘‘4 years’’

6 and inserting ‘‘8 years’’.

7 TITLE IV—CENTRAL

8 INTELLIGENCE AGENCY

9 SEC. 401. PERMANENT EXTENSION OF CENTRAL INTEL10 LIGENCE AGENCY VOLUNTARY SEPARATION

11 INCENTIVE PROGRAM.

12 (a) IN GENERAL.—Section 2 of the Central Intelligence

13 Agency Voluntary Separation Pay Act (50 U.S.C. 403–4

14 note) is amended—

15 (1) by striking subsection (f); and

16 (2) by redesignating subsections (g) and (h) as

17 subsections (f) and (g), respectively.

18 (b) TERMINATION OF FUNDS REMITTANCE REQUIRE19 MENT.—(1) Section 2 of such Act is further amended by

20 striking subsection (i).

21 (2) Section 4(a)(2)(B)(ii) of the Federal Workforce Re22 structuring Act of 1994 (5 U.S.C. 8331 note) is amended

23 by striking ‘‘, or section 2 of the Central Intelligence Agency

24 Voluntary Separation Pay Act (Public Law 103–36; 107

25 Stat. 104)’’.
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1 SEC. 402. INTELLIGENCE OPERATIONS AND COVER EN2 HANCEMENT AUTHORITY.

3 The Central Intelligence Agency Act of 1949 (50 U.S.C.

4 403a et seq.) is amended by adding at the end the following:

5 ‘‘INTELLIGENCE OPERATIONS AND COVER ENHANCEMENT

6 AUTHORITY

7 ‘‘SEC. 23. (a) DEFINITIONS.—In this section—

8 ‘‘(1) the term ‘designated employee’ means an

9 employee designated by the Director under subsection

10 (b); and

11 ‘‘(2) the term ‘Federal retirement system’ in12 cludes the Central Intelligence Agency Retirement and

13 Disability System, and the Federal Employees Retire14 ment System (including the Thrift Savings Plan).

15 ‘‘(b) IN GENERAL.—

16 ‘‘(1) AUTHORITY.—Notwithstanding any other

17 provision of law, the Director may exercise the au18 thorities under this section in order to—

19 ‘‘(A) protect from unauthorized disclosure—

20 ‘‘(i) intelligence operations;

21 ‘‘(ii) the identities of undercover intel22 ligence officers;

23 ‘‘(iii) intelligence source and methods;

24 or

25 ‘‘(iv) intelligence cover mechanisms; or
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1 ‘‘(B) meet the special requirements of work

2 related to collection of foreign intelligence or

3 other authorized activities of the Agency.

4 ‘‘(2) DESIGNATION OF EMPLOYEES.—The Direc5 tor may designate any employee of the Agency who is

6 under nonofficial cover to be an employee to whom

7 this section applies. Such designation may be made

8 with respect to any or all authorities exercised under

9 this section.

10 ‘‘(c) COMPENSATION.—The Director may pay a des11 ignated employee salary, allowances, and other benefits in

12 an amount and in a manner consistent with the nonofficial

13 cover of that employee, without regard to any limitation

14 that is otherwise applicable to a Federal employee. A des15 ignated employee may accept, utilize, and, to the extent au16 thorized by regulations prescribed under subsection (i), re17 tain any salary, allowances, and other benefits provided

18 under this section.

19 ‘‘(d) RETIREMENT BENEFITS.—

20 ‘‘(1) IN GENERAL.—The Director may establish

21 and administer a nonofficial cover employee retire22 ment system for designated employees (and the

23 spouse, former spouses, and survivors of such des24 ignated employees). A designated employee may not

25 participate in the retirement system established under
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1 this paragraph and another Federal retirement sys2 tem at the same time.

3 ‘‘(2) CONVERSION TO OTHER FEDERAL RETIRE4 MENT SYSTEM.—

5 ‘‘(A) IN GENERAL.—A designated employee

6 participating in the retirement system estab7 lished under paragraph (1) may convert to cov8 erage under the Federal retirement system which

9 would otherwise apply to that employee at any

10 appropriate time determined by the Director (in11 cluding at the time of separation of service by

12 reason of retirement), if the Director determines

13 that the employee’s participation in the retire14 ment system established under this subsection is

15 no longer necessary to protect from unauthorized

16 disclosure—

17 ‘‘(i) intelligence operations;

18 ‘‘(ii) the identities of undercover intel19 ligence officers;

20 ‘‘(iii) intelligence sources and methods;

21 or

22 ‘‘(iv) intelligence cover mechanisms.

23 ‘‘(B) CONVERSION TREATMENT.—Upon a

24 conversion under this paragraph—
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1 ‘‘(i) all periods of service under the re2 tirement system established under this sub3 section shall be deemed periods of creditable

4 service under the applicable Federal retire5 ment system;

6 ‘‘(ii) the Director shall transmit an

7 amount for deposit in any applicable fund

8 of that Federal retirement system that—

9 ‘‘(I) is necessary to cover all em10 ployee and agency contributions

11 including—

12 ‘‘(aa) interest as determined

13 by the head of the agency admin14 istering the Federal retirement

15 system into which the employee is

16 converting; or

17 ‘‘(bb) in the case of an em18 ployee converting into the Federal

19 Employee’s Retirement System,

20 interest as determined under sec21 tion 8334(e) of title 5, United

22 States Code; and

23 ‘‘(II) ensures that such conversion

24 does not result in any unfunded liabil25 ity to that fund; and
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1 ‘‘(iii) in the case of a designated em2 ployee who participated in an employee in3 vestment retirement system established

4 under paragraph (1) and is converted to

5 coverage under subchapter III of chapter 84

6 of title 5, United States Code, the Director

7 may transmit any or all amounts of that

8 designated employee in that employee in9 vestment retirement system (or similar part

10 of that retirement system) to the Thrift Sav11 ings Fund.

12 ‘‘(C) TRANSMITTED AMOUNTS.—

13 ‘‘(i) IN GENERAL.—Amounts described

14 under subparagraph (B)(ii) shall be paid

15 from the fund or appropriation used to pay

16 the designated employee.

17 ‘‘(ii) OFFSET.—The Director may use

18 amounts contributed by the designated em19 ployee to a retirement system established

20 under paragraph (1) to offset amounts paid

21 under clause (i).

22 ‘‘(D) RECORDS.—The Director shall trans23 mit all necessary records relating to a designated

24 employee who converts to a Federal retirement

25 system under this paragraph (including records
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1 relating to periods of service which are deemed

2 to be periods of creditable service under subpara3 graph (B)) to the head of the agency admin4 istering that Federal retirement system.

5 ‘‘(e) HEALTH INSURANCE BENEFITS.—

6 ‘‘(1) IN GENERAL.—The Director may establish

7 and administer a nonofficial cover employee health

8 insurance program for designated employees (and the

9 family of such designated employees). A designated

10 employee may not participate in the health insurance

11 program established under this paragraph and the

12 program under chapter 89 of title 5, United States

13 Code, at the same time.

14 ‘‘(2) CONVERSION TO FEDERAL EMPLOYEES

15 HEALTH BENEFITS PROGRAM.—

16 ‘‘(A) IN GENERAL.—A designated employee

17 participating in the health insurance program

18 established under paragraph (1) may convert to

19 coverage under the program under chapter 89 of

20 title 5, United States Code, at any appropriate

21 time determined by the Director (including at

22 the time of separation of service by reason of re23 tirement), if the Director determines that the em24 ployee’s participation in the health insurance

25 program established under this subsection is no
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1 longer necessary to protect from unauthorized

2 disclosure—

3 ‘‘(i) intelligence operations;

4 ‘‘(ii) the identities of undercover intel5 ligence officers;

6 ‘‘(iii) intelligence sources and methods;

7 or

8 ‘‘(iv) intelligence cover mechanisms.

9 ‘‘(B) CONVERSION TREATMENT.—Upon a

10 conversion under this paragraph—

11 ‘‘(i) the employee (and family, if ap12 plicable) shall be entitled to immediate en13 rollment and coverage under chapter 89 of

14 title 5, United States Code;

15 ‘‘(ii) any requirement of prior enroll16 ment in a health benefits plan under chap17 ter 89 of that title for continuation of cov18 erage purposes shall not apply;

19 ‘‘(iii) the employee shall be deemed to

20 have had coverage under chapter 89 of that

21 title from the first opportunity to enroll for

22 purposes of continuing coverage as an an23 nuitant; and

24 ‘‘(iv) the Director shall transmit an

25 amount for deposit in the Employees Health
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1 Benefits Fund that is necessary to cover

2 any costs of such conversion.

3 ‘‘(C) TRANSMITTED AMOUNTS.—Any

4 amount described under subparagraph (B)(iv)

5 shall be paid from the fund or appropriation

6 used to pay the designated employee.

7 ‘‘(f) LIFE INSURANCE BENEFITS.—

8 ‘‘(1) IN GENERAL.—The Director may establish

9 and administer a nonofficial cover employee life in10 surance program for designated employees (and the

11 family of such designated employees). A designated

12 employee may not participate in the life insurance

13 program established under this paragraph and the

14 program under chapter 87 of title 5, United States

15 Code, at the same time.

16 ‘‘(2) CONVERSION TO FEDERAL EMPLOYEES

17 GROUP LIFE INSURANCE PROGRAM.—

18 ‘‘(A) IN GENERAL.—A designated employee

19 participating in the life insurance program es20 tablished under paragraph (1) may convert to

21 coverage under the program under chapter 87 of

22 title 5, United States Code, at any appropriate

23 time determined by the Director (including at

24 the time of separation of service by reason of re25 tirement), if the Director determines that the em-
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1 ployee’s participation in the life insurance pro2 gram established under this subsection is no

3 longer necessary to protect from unauthorized

4 disclosure—

5 ‘‘(i) intelligence operations;

6 ‘‘(ii) the identities of undercover intel7 ligence officers;

8 ‘‘(iii) intelligence sources and methods;

9 or

10 ‘‘(iv) intelligence cover mechanisms.

11 ‘‘(B) CONVERSION TREATMENT.—Upon a

12 conversion under this paragraph—

13 ‘‘(i) the employee (and family, if ap14 plicable) shall be entitled to immediate cov15 erage under chapter 87 of title 5, United

16 States Code;

17 ‘‘(ii) any requirement of prior enroll18 ment in a life insurance program under

19 chapter 87 of that title for continuation of

20 coverage purposes shall not apply;

21 ‘‘(iii) the employee shall be deemed to

22 have had coverage under chapter 87 of that

23 title for the full period of service during

24 which the employee would have been entitled
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1 to be insured for purposes of continuing

2 coverage as an annuitant; and

3 ‘‘(iv) the Director shall transmit an

4 amount for deposit in the Employees Life

5 Insurance Fund that is necessary to cover

6 any costs of such conversion.

7 ‘‘(C) TRANSMITTED AMOUNTS.—Any

8 amount described under subparagraph (B)(iv)

9 shall be paid from the fund or appropriation

10 used to pay the designated employee.

11 ‘‘(g) EXEMPTION FROM CERTAIN REQUIREMENTS.—

12 The Director may exempt a designated employee from man13 datory compliance with any Federal regulation, rule,

14 standardized administrative policy, process, or procedure

15 that the Director determines—

16 ‘‘(1) would be inconsistent with the nonofficial

17 cover of that employee; and

18 ‘‘(2) could expose that employee to detection as

19 a Federal employee.

20 ‘‘(h) TAXATION AND SOCIAL SECURITY.—

21 ‘‘(1) IN GENERAL.—Notwithstanding any other

22 provision of law, a designated employee—

23 ‘‘(A) shall file a Federal or State tax return

24 as if that employee is not a Federal employee

25 and may claim and receive the benefit of any ex-
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1 clusion, deduction, tax credit, or other tax treat2 ment that would otherwise apply if that em3 ployee was not a Federal employee, if the Direc4 tor determines that taking any action under this

5 paragraph is necessary to—

6 ‘‘(i) protect from unauthorized

7 disclosure—

8 ‘‘(I) intelligence operations;

9 ‘‘(II) the identities of undercover

10 intelligence officers;

11 ‘‘(III) intelligence source and

12 methods; or

13 ‘‘(IV) intelligence cover mecha14 nisms; and

15 ‘‘(ii) meet the special requirements of

16 work related to collection of foreign intel17 ligence or other authorized activities of the

18 Agency; and

19 ‘‘(B) shall receive social security benefits

20 based on the social security contributions made.

21 ‘‘(2) IRS REVIEW.—The Director shall establish

22 procedures to carry out this subsection. The proce23 dures shall be subject to periodic review by the Inter24 nal Revenue Service.
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1 ‘‘(i) REGULATIONS.—The Director shall prescribe reg2 ulations to carry out this section. The regulations shall en3 sure that the combination of salary, allowances, and bene4 fits that an employee designated under this section may re5 tain does not significantly exceed, except to the extent deter6 mined by the Director to be necessary to exercise the author7 ity in subsection (b), the combination of salary, allowances,

8 and benefits otherwise received by Federal employees not

9 designated under this section.

10 ‘‘(j) FINALITY OF DECISIONS.—Any determinations

11 authorized by this section made by the Director or the Di12 rector’s designee shall be final and conclusive and shall not

13 be subject to review by any court.

14 ‘‘(k) SUBSEQUENTLY ENACTED LAWS.—No law en15 acted after the effective date of this section shall affect the

16 authorities and provisions of this section unless such law

17 specifically refers to this section.’’.

18 TITLE V—DEPARTMENT OF DE19 FENSE INTELLIGENCE MAT20 TERS

21 SEC. 501. USE OF FUNDS FOR COUNTERDRUG AND

22 COUNTERTERRORISM ACTIVITIES FOR CO23 LOMBIA.

24 (a) AUTHORITY.—Funds designated for intelligence or

25 intelligence-related purposes for assistance to the Govern-
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1 ment of Colombia for counterdrug activities for fiscal year

2 2005, and any unobligated funds available to any element

3 of the intelligence community for such activities for a prior

4 fiscal year, shall be available—

5 (1) to support a unified campaign by the Gov6 ernment of Colombia against narcotics trafficking

7 and against activities by organizations designated as

8 terrorist organizations (such as the Revolutionary

9 Armed Forces of Colombia (FARC), the National Lib10 eration Army (ELN), and the United Self-Defense

11 Forces of Colombia (AUC)); and

12 (2) to take actions to protect human health and

13 welfare in emergency circumstances, including under14 taking rescue operations.

15 (b) APPLICABILITY OF CERTAIN LAWS AND LIMITA16 TIONS.—The use of funds pursuant to the authority in sub17 section (a) shall be subject to the following:

18 (1) Sections 556, 567, and 568 of the Foreign

19 Operations, Export Financing, and Related Programs

20 Appropriations Act, 2002 (Public Law 107–115; 115

21 Stat. 2160, 2165, and 2166).

22 (2) Section 8077 of the Department of Defense

23 Appropriations Act, 2004 (Public Law 108–87; 117

24 Stat. 1090).
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1 (3) The numerical limitations on the number of

2 United States military personnel and United States

3 individual civilian contractors in section 3204(b)(1)

4 of the Emergency Supplemental Act, 2000 (division B

5 of Public Law 106–246; 114 Stat. 575), as amended

6 by the Foreign Operations, Export Financing, and

7 Related Programs Appropriations Act, 2002 (115

8 Stat. 2131).

9 (c) LIMITATION ON PARTICIPATION OF UNITED

10 STATES PERSONNEL.—No United States Armed Forces per11 sonnel or United States civilian contractor employed by the

12 United States Armed Forces will participate in any combat

13 operation in connection with assistance made available

14 under this section, except for the purpose of acting in self

15 defense or during the course of search and rescue operations

16 for United States citizens.

Attest:

Secretary.
108TH CONGRESS

2D SESSION H. R. 4548

AMENDMENT