H. R. 4548—8
(1) by striking subsection (f); and
(2) by redesignating subsections (g) and (h) as subsections
(f) and (g), respectively.
(b) TERMINATION
OF FUNDS REMITTANCE REQUIREMENT.—(1)
Section 2 of such Act is further amended by striking subsection
(i).
(2) Section 4(a)(2)(B)(ii) of the Federal Workforce Restructuring
Act of 1994 (5 U.S.C. 8331 note) is amended by striking ‘‘, or
section 2 of the Central Intelligence Agency Voluntary Separation
Pay Act (Public Law 103–36; 107 Stat. 104)’’.
SEC. 402. INTELLIGENCE OPERATIONS AND COVER ENHANCEMENT
AUTHORITY.
The Central Intelligence Agency Act of 1949 (50 U.S.C. 403a
et seq.) is amended by adding at the end the following:
‘‘INTELLIGENCE OPERATIONS AND COVER ENHANCEMENT AUTHORITY
‘‘SEC. 23. (a) DEFINITIONS.—In this section—
‘‘(1) the term ‘designated employee’ means an employee
designated by the Director of the Central Intelligence Agency
under subsection (b); and
‘‘(2) the term ‘Federal retirement system’ includes the Cen-
tral Intelligence Agency Retirement and Disability System, and
the Federal Employees’ Retirement System (including the Thrift
Savings Plan).
‘‘(b) IN GENERAL.—
‘‘(1) AUTHORITY.—Notwithstanding any other provision of
law, the Director of the Central Intelligence Agency may exer-
cise the authorities under this section in order to—
‘‘(A) protect from unauthorized disclosure—
‘‘(i) intelligence operations;
‘‘(ii) the identities of undercover intelligence offi-
cers;
‘‘(iii) intelligence sources and methods; or
‘‘(iv) intelligence cover mechanisms; or
‘‘(B) meet the special requirements of work related
to collection of foreign intelligence or other authorized
activities of the Agency.
‘‘(2) DESIGNATION OF EMPLOYEES.—The Director of the Cen-
tral Intelligence Agency may designate any employee of the
Agency who is under nonofficial cover to be an employee to
whom this section applies. Such designation may be made
with respect to any or all authorities exercised under this
section.
‘‘(c) COMPENSATION.—The Director of the Central Intelligence
Agency may pay a designated employee salary, allowances, and
other benefits in an amount and in a manner consistent with
the nonofficial cover of that employee, without regard to any limita-
tion that is otherwise applicable to a Federal employee. A des-
ignated employee may accept, utilize, and, to the extent authorized
by regulations prescribed under subsection (i), retain any salary,
allowances, and other benefits provided under this section.
‘‘(d) RETIREMENT BENEFITS.—
‘‘(1) IN GENERAL.—The Director of the Central Intelligence
Agency may establish and administer a nonofficial cover
employee retirement system for designated employees (and the
spouse, former spouses, and survivors of such designated
H. R. 4548—9
employees). A designated employee may not participate in the
retirement system established under this paragraph and
another Federal retirement system at the same time.
‘‘(2) CONVERSION TO OTHER FEDERAL RETIREMENT SYSTEM.—
‘‘(A) IN GENERAL.—A designated employee participating
in the retirement system established under paragraph (1)
may convert to coverage under the Federal retirement
system which would otherwise apply to that employee at
any appropriate time determined by the Director of the
Central Intelligence Agency (including at the time of sepa-
ration of service by reason of retirement), if the Director
of the Central Intelligence Agency determines that the
employee’s participation in the retirement system estab-
lished under this subsection is no longer necessary to pro-
tect from unauthorized disclosure—
‘‘(i) intelligence operations;
‘‘(ii) the identities of undercover intelligence offi-
cers;
‘‘(iii) intelligence sources and methods; or
‘‘(iv) intelligence cover mechanisms.
‘‘(B) CONVERSION
TREATMENT.—Upon a conversion
under this paragraph—
‘‘(i) all periods of service under the retirement
system established under this subsection shall be
deemed periods of creditable service under the
applicable Federal retirement system;
‘‘(ii) the Director of the Central Intelligence Agency
shall transmit an amount for deposit in any applicable
fund of that Federal retirement system that—
‘‘(I) is necessary to cover all employee and
agency contributions including—
‘‘(aa) interest as determined by the head
of the agency administering the Federal retire-
ment system into which the employee is con-
verting; or
‘‘(bb) in the case of an employee converting
into 
the 
Federal 
Employees’ 
Retirement
System, interest as determined under section
8334(e) of title 5, United States Code; and
‘‘(II) ensures that such conversion does not
result in any unfunded liability to that fund; and
‘‘(iii) in the case of a designated employee who
participated in an employee investment retirement
system established under paragraph (1) and is con-
verted to coverage under subchapter III of chapter
84 of title 5, United States Code, the Director of the
Central Intelligence Agency may transmit any or all
amounts of that designated employee in that employee
investment retirement system (or similar part of that
retirement system) to the Thrift Savings Fund.
‘‘(C) TRANSMITTED AMOUNTS.—
‘‘(i) 
IN
GENERAL.—Amounts 
described 
under
subparagraph (B)(ii) shall be paid from the fund or
appropriation used to pay the designated employee.
‘‘(ii) OFFSET.—The Director of the Central Intel-
ligence Agency may use amounts contributed by the
H. R. 4548—10
designated employee to a retirement system estab-
lished under paragraph (1) to offset amounts paid
under clause (i).
‘‘(D) RECORDS.—The Director of the Central Intel-
ligence Agency shall transmit all necessary records relating
to a designated employee who converts to a Federal retire-
ment system under this paragraph (including records
relating to periods of service which are deemed to be
periods of creditable service under subparagraph (B)) to
the head of the agency administering that Federal retire-
ment system.
‘‘(e) HEALTH INSURANCE BENEFITS.—
‘‘(1) IN GENERAL.—The Director of the Central Intelligence
Agency may establish and administer a nonofficial cover
employee health insurance program for designated employees
(and the family of such designated employees). A designated
employee may not participate in the health insurance program
established under this paragraph and the program under
chapter 89 of title 5, United States Code, at the same time.
‘‘(2) CONVERSION TO FEDERAL EMPLOYEES HEALTH BENEFITS
PROGRAM.—
‘‘(A) IN GENERAL.—A designated employee participating
in the health insurance program established under para-
graph (1) may convert to coverage under the program under
chapter 89 of title 5, United States Code, at any appropriate
time determined by the Director of the Central Intelligence
Agency (including at the time of separation of service by
reason of retirement), if the Director of the Central Intel-
ligence Agency determines that the employee’s participa-
tion in the health insurance program established under
this subsection is no longer necessary to protect from
unauthorized disclosure—
‘‘(i) intelligence operations;
‘‘(ii) the identities of undercover intelligence offi-
cers;
‘‘(iii) intelligence sources and methods; or
‘‘(iv) intelligence cover mechanisms.
‘‘(B) CONVERSION
TREATMENT.—Upon a conversion
under this paragraph—
‘‘(i) the employee (and family, if applicable) shall
be entitled to immediate enrollment and coverage
under chapter 89 of title 5, United States Code;
‘‘(ii) any requirement of prior enrollment in a
health benefits plan under chapter 89 of that title
for continuation of coverage purposes shall not apply;
‘‘(iii) the employee shall be deemed to have had
coverage under chapter 89 of that title from the first
opportunity to enroll for purposes of continuing cov-
erage as an annuitant; and
‘‘(iv) the Director of the Central Intelligence
Agency shall transmit an amount for deposit in the
Employees’ Health Benefits Fund that is necessary
to cover any costs of such conversion.
‘‘(C) TRANSMITTED AMOUNTS.—Any amount described
under subparagraph (B)(iv) shall be paid from the fund
or appropriation used to pay the designated employee.
‘‘(f) LIFE INSURANCE BENEFITS.—
H. R. 4548—11
‘‘(1) IN GENERAL.—The Director of the Central Intelligence
Agency may establish and administer a nonofficial cover
employee life insurance program for designated employees (and
the family of such designated employees). A designated
employee may not participate in the life insurance program
established under this paragraph and the program under
chapter 87 of title 5, United States Code, at the same time.
‘‘(2) CONVERSION
TO
FEDERAL
EMPLOYEES
GROUP
LIFE
INSURANCE PROGRAM.—
‘‘(A) IN GENERAL.—A designated employee participating
in the life insurance program established under paragraph
(1) may convert to coverage under the program under
chapter 87 of title 5, United States Code, at any appropriate
time determined by the Director of the Central Intelligence
Agency (including at the time of separation of service by
reason of retirement), if the Director of the Central Intel-
ligence Agency determines that the employee’s participa-
tion in the life insurance program established under this
subsection is no longer necessary to protect from unauthor-
ized disclosure—
‘‘(i) intelligence operations;
‘‘(ii) the identities of undercover intelligence offi-
cers;
‘‘(iii) intelligence sources and methods; or
‘‘(iv) intelligence cover mechanisms.
‘‘(B) CONVERSION
TREATMENT.—Upon a conversion
under this paragraph—
‘‘(i) the employee (and family, if applicable) shall
be entitled to immediate coverage under chapter 87
of title 5, United States Code;
‘‘(ii) any requirement of prior enrollment in a life
insurance program under chapter 87 of that title for
continuation of coverage purposes shall not apply;
‘‘(iii) the employee shall be deemed to have had
coverage under chapter 87 of that title for the full
period of service during which the employee would
have been entitled to be insured for purposes of con-
tinuing coverage as an annuitant; and
‘‘(iv) the Director of the Central Intelligence
Agency shall transmit an amount for deposit in the
Employees’ Life Insurance Fund that is necessary to
cover any costs of such conversion.
‘‘(C) TRANSMITTED AMOUNTS.—Any amount described
under subparagraph (B)(iv) shall be paid from the fund
or appropriation used to pay the designated employee.
‘‘(g) EXEMPTION FROM CERTAIN REQUIREMENTS.—The Director
of the Central Intelligence Agency may exempt a designated
employee from mandatory compliance with any Federal regulation,
rule, standardized administrative policy, process, or procedure that
the Director of the Central Intelligence Agency determines—
‘‘(1) would be inconsistent with the nonofficial cover of
that employee; and
‘‘(2) could expose that employee to detection as a Federal
employee.
‘‘(h) TAXATION AND SOCIAL SECURITY.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law, a designated employee—
H. R. 4548—12
‘‘(A) shall file a Federal or State tax return as if that
employee is not a Federal employee and may claim and
receive the benefit of any exclusion, deduction, tax credit,
or other tax treatment that would otherwise apply if that
employee was not a Federal employee, if the Director of
the Central Intelligence Agency determines that taking
any action under this paragraph is necessary to—
‘‘(i) protect from unauthorized disclosure—
‘‘(I) intelligence operations;
‘‘(II) the identities of undercover intelligence
officers;
‘‘(III) intelligence sources and methods; or
‘‘(IV) intelligence cover mechanisms; and
‘‘(ii) meet the special requirements of work related
to collection of foreign intelligence or other authorized
activities of the Agency; and
‘‘(B) shall receive social security benefits based on the
social security contributions made.
‘‘(2) INTERNAL REVENUE SERVICE REVIEW.—The Director of
the Central Intelligence Agency shall establish procedures to
carry out this subsection. The procedures shall be subject to
periodic review by the Internal Revenue Service.
‘‘(i) REGULATIONS.—The Director of the Central Intelligence
Agency shall prescribe regulations to carry out this section. The
regulations shall ensure that the combination of salary, allowances,
and benefits that an employee designated under this section may
retain does not significantly exceed, except to the extent determined
by the Director of the Central Intelligence Agency to be necessary
to exercise the authority in subsection (b), the combination of salary,
allowances, and benefits otherwise received by Federal employees
not designated under this section.
‘‘(j) FINALITY OF DECISIONS.—Any determinations authorized
by this section to be made by the Director of the Central Intelligence
Agency or the Director’s designee shall be final and conclusive
and shall not be subject to review by any court.
‘‘(k) SUBSEQUENTLY ENACTED LAWS.—No law enacted after the
effective date of this section shall affect the authorities and provi-
sions of this section unless such law specifically refers to this
section.’’.
TITLE V—DEPARTMENT OF DEFENSE
INTELLIGENCE MATTERS
SEC. 501. NATIONAL SECURITY AGENCY EMERGING TECHNOLOGIES
PANEL.
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. 19. (a) There is established the National Security Agency
Emerging Technologies Panel. The Panel is a standing panel of
the National Security Agency. The Panel shall be appointed by,
and shall report directly to, the Director of the National Security
Agency.
‘‘(b) The Panel shall study and assess, and periodically advise
the Director on, the research, development, and application of
existing and emerging science and technology advances, advances
in encryption, and other topics.
H. R. 4548—13
‘‘(c) The Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply with respect to the Panel.’’.
SEC. 
502. 
USE 
OF 
FUNDS 
FOR 
COUNTERDRUG 
AND
COUNTERTERRORISM ACTIVITIES FOR COLOMBIA.
(a) AUTHORITY.—Funds designated for intelligence or intel-
ligence-related purposes for assistance to the Government of
Colombia for counterdrug activities for fiscal year 2005 or 2006,
and any unobligated funds available to any element of the intel-
ligence community for such activities for a prior fiscal year, shall
be available—
(1) to support a unified campaign by the Government of
Colombia against narcotics trafficking and against activities
by organizations designated as terrorist organizations (such
as the Revolutionary Armed Forces of Colombia (FARC), the
National Liberation Army (ELN), and the United Self-Defense
Forces of Colombia (AUC)); and
(2) to take actions to protect human health and welfare
in emergency circumstances, including the undertaking of
rescue operations.
(b) APPLICABILITY OF CERTAIN LAWS AND LIMITATIONS.—The
use of funds pursuant to the authority in subsection (a) shall
be subject to the following:
(1) Section 556, 567, and 568 of the Foreign Operations,
Export Financing, and Related Programs Appropriations Act,
2002 (Public Law 107–115; 115 Stat. 2160, 2165, and 2166).
(2) Section 8076 of the Department of Defense Appropria-
tions Act, 2005 (Public Law 108–287; 118 Stat. 988).
(3) The numerical limitations on the number of United
States military personnel and United States individual civilian
contractors contained in section 1021(c) of the Ronald W.
Reagan National Defense Authorization Act for Fiscal Year
2005 (Public Law 108–375; 118 Stat. 2042).
(c) LIMITATION
ON PARTICIPATION
OF UNITED STATES PER-
SONNEL.—No United States Armed Forces personnel or United
States civilian contractor employed by the United States Armed
Forces may participate in any combat operation in connection with
assistance made available under this section, except for the purpose
of acting in self defense or during the course of search and rescue
operations for United States citizens.
TITLE VI—EDUCATION
Subtitle A—National Security Education
Program
SEC. 601. ANNUAL FUNDING.
(a) IN GENERAL.—Section 810 of the David L. Boren National
Security Education Act of 1991 (50 U.S.C. 1910) is amended by
adding at the end the following new subsection:
‘‘(c) FUNDING FROM INTELLIGENCE COMMUNITY MANAGEMENT
ACCOUNT FOR FISCAL YEARS BEGINNING WITH FISCAL YEAR 2005.—
In addition to amounts that may be made available to the Secretary
under the Fund for a fiscal year, the Director of National Intel-
ligence shall transfer to the Secretary from amounts appropriated
H. R. 4548—14
for the Intelligence Community Management Account for each fiscal
year, beginning with fiscal year 2005, $8,000,000 to carry out the
scholarship, fellowship, and grant programs under subparagraphs
(A), (B), and (C), respectively, of section 802(a)(1).’’.
(b) CONFORMING AMENDMENT.—Section 802(a)(2) of that Act
(50 U.S.C. 1902(a)(2)) is amended in the matter preceding subpara-
graph (A) by inserting ‘‘or from a transfer under section 810(c)’’
after ‘‘National Security Education Trust Fund’’.
SEC. 602. IMPROVEMENTS TO NATIONAL FLAGSHIP LANGUAGE INITIA-
TIVE.
(a) REQUIREMENT FOR EMPLOYMENT AGREEMENTS.—(1) Section
802(i) of the David L. Boren National Security Education Act of
1991 (50 U.S.C. 1902(i)) is amended by adding at the end the
following new paragraphs:
‘‘(5) An undergraduate or graduate student who participates
in training in a program under paragraph (1) and has not already
entered into a service agreement under subsection (b) shall enter
into a service agreement under subsection (b) applicable to an
undergraduate or graduate student, as the case may be, with respect
to participation in such training in a program under paragraph
(1).
‘‘(6)(A) An employee of a department or agency of the Federal
Government who participates in training in a program under para-
graph (1) shall agree in writing—
‘‘(i) to continue in the service of the department or agency
of the Federal Government employing the employee for the
period of such training;
‘‘(ii) to continue in the service of such department or agency,
following completion by the employee of such training, for a
period of two years for each year, or part of the year, of
such training;
‘‘(iii) if, before the completion by the employee of such
training, the employment of the employee is terminated by
such department or agency due to misconduct by the employee,
or by the employee voluntarily, to reimburse the United States
for the total cost of such training (excluding the employee’s
pay and allowances) provided to the employee; and
‘‘(iv) if, after the completion by the employee of such
training but before the completion by the employee of the
period of service required by clause (ii), the employment of
the employee by such department or agency is terminated
either by such department or agency due to misconduct by
the employee, or by the employee voluntarily, to reimburse
the United States in an amount that bears the same ratio
to the total cost of such training (excluding the employee’s
pay and allowances) provided to the employee as the unserved
portion of such period of service bears to the total period of
service required by clause (ii).
‘‘(C) Subject to subparagraph (D), the obligation to reimburse
the United States under an agreement under subparagraph (A)
is for all purposes a debt owing the United States.
‘‘(D) The head of the element of the intelligence community
concerned may release an employee, in whole or in part, from
the obligation to reimburse the United States under an agreement
under subparagraph (A) when, in the discretion of the head of
H. R. 4548—15
the element, the head of the element determines that equity or
the interests of the United States so require.’’.
(2) The amendment made by paragraph (1) shall apply to
training under section 802(i) of the David L. Boren National Secu-
rity Act of 1991 that begins on or after the date that is 90 days
after the date of the enactment of this Act.
(b) INCREASE IN ANNUAL FUNDING.—Section 811 of that Act
(50 U.S.C. 1911) is amended by striking subsection (b) and inserting
the following new subsections:
‘‘(b) FUNDING FROM INTELLIGENCE COMMUNITY MANAGEMENT
ACCOUNT FOR FISCAL YEARS BEGINNING WITH FISCAL YEAR 2005.—
In addition to amounts that may be made available to the Secretary
under the Fund for a fiscal year, the Director of National Intel-
ligence shall transfer to the Secretary from amounts appropriated
for the Intelligence Community Management Account for each fiscal
year, beginning with fiscal year 2005, $6,000,000 to carry out the
grant program for the National Flagship Language Initiative under
section 802(a)(1)(D).
‘‘(c) AVAILABILITY
OF APPROPRIATED FUNDS.—Amounts made
available under this section shall remain available until expended.’’.
(c) INCREASE
IN
NUMBER
OF
PARTICIPATING
EDUCATIONAL
INSTITUTIONS.—The Secretary of Defense shall take such actions
as the Secretary considers appropriate to increase the number
of qualified educational institutions that receive grants under the
National Flagship Language Initiative under section 802(i) of the
David L. Boren National Security Education Act of 1991 to estab-
lish, operate, or improve activities designed to train students in
programs in a range of disciplines to achieve advanced levels of
proficiency in those foreign languages that the Secretary identifies
as being the most critical to the national security of the United
States.
(d) CLARIFICATION
OF
AUTHORITY
TO
SUPPORT
STUDIES
ABROAD.—Educational institutions that receive grants under the
National Flagship Language Initiative may support students who
pursue total immersion foreign language studies overseas of foreign
languages that are critical to the national security of the United
States.
SEC. 603. SCHOLARSHIP PROGRAM FOR ENGLISH LANGUAGE STUDIES
FOR HERITAGE COMMUNITY CITIZENS OF THE UNITED
STATES WITHIN NATIONAL SECURITY EDUCATION PRO-
GRAM.
(a) SCHOLARSHIP PROGRAM.—(1) Subsection (a)(1) of section
802 of the David L. Boren National Security Education Act of
1991 (50 U.S.C. 1902) is amended—
(A) by striking ‘‘and’’ at the end of subparagraph (C);
(B) by striking the period at the end of subparagraph
(D) and inserting ‘‘; and’’; and
(C) by adding at the end the following new subparagraph:
‘‘(E) awarding scholarships to students who—
‘‘(i) are United States citizens who—
‘‘(I) are native speakers (referred to as ‘herit-
age community citizens’) of a foreign language that
is identified as critical to the national security
interests of the United States who should be
actively recruited for employment by Federal secu-
rity agencies with a need for linguists; and
H. R. 4548—16
‘‘(II) are not proficient at a professional level
in the English language with respect to reading,
writing, and other skills required to carry out the
national security interests of the United States,
as determined by the Secretary,
to enable such students to pursue English language
studies at an institution of higher education of the
United States to attain proficiency in those skills; and
‘‘(ii) enter into an agreement to work in a position
in a similar manner (as determined by the Secretary)
as agreements entered into pursuant to subsection
(b)(2)(A).’’.
(2) The matter following subsection (a)(2) of such section is
amended—
(A) in the first sentence, by inserting ‘‘or for the scholarship
program under paragraph (1)(E)’’ after ‘‘under paragraph (1)(D)
for the National Flagship Language Initiative described in sub-
section (i)’’; and
(B) by adding at the end the following: ‘‘For the authoriza-
tion of appropriations for the scholarship program under para-
graph (1)(E), see section 812.’’.
(3) Section 803(d)(4)(E) of such Act (50 U.S.C. 1903(d)(4)(E))
is amended by inserting before the period the following: ‘‘and section
802(a)(1)(E) (relating to the scholarship program for advanced
English language studies by heritage community citizens)’’.
(b) FUNDING.—The David L. Boren National Security Education
Act of 1991 (50 U.S.C. 1901 et seq.) is amended by adding at
the end the following new section:
‘‘SEC. 812. FUNDING FOR SCHOLARSHIP PROGRAM FOR ADVANCED
ENGLISH LANGUAGE STUDIES BY HERITAGE COMMUNITY
CITIZENS.
‘‘(a) FUNDING FROM INTELLIGENCE COMMUNITY MANAGEMENT
ACCOUNT.—In addition to amounts that may be made available
to the Secretary under the Fund for a fiscal year, the Director
of National Intelligence shall transfer to the Secretary from
amounts appropriated for the Intelligence Community Management
Account for each fiscal year, beginning with fiscal year 2005,
$2,000,000 to carry out the scholarship programs for English lan-
guage studies by certain heritage community citizens under section
802(a)(1)(E).
‘‘(b) AVAILABILITY OF FUNDS.—Amounts made available under
subsection (a) shall remain available until expended.’’.
Subtitle B—Improvement in Intelligence
Community Foreign Language Skills
SEC. 611. FOREIGN LANGUAGE PROFICIENCY FOR CERTAIN SENIOR
LEVEL POSITIONS IN THE CENTRAL INTELLIGENCE
AGENCY.
(a) IN GENERAL.—Section 104A of the National Security Act
of 1947, amended by section 1011(a) of the National Security Intel-
ligence Reform Act of 2004, is further amended by adding at the
end the following new subsection:
‘‘(g) FOREIGN LANGUAGE PROFICIENCY
FOR CERTAIN SENIOR
LEVEL POSITIONS IN CENTRAL INTELLIGENCE AGENCY.—(1) Except