FAS Note: The text of the amended bill adopted by the Senate is here.
[Congressional Record: October 3, 2007 (Senate)]
[Page S12456-S12476]
                       


 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2008

  Mr. ROCKEFELLER. Mr. President, I ask unanimous consent that the 
Senate proceed to the immediate consideration of Calendar No. 222, S. 
1538.

[[Page S12457]]

  The ACTING PRESIDENT pro tempore.
  The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 1538) to authorize appropriations for fiscal 
     year 2008 for the intelligence and intelligence-related 
     activities of the United States Government, the Intelligence 
     Community Management Account, and the Central Intelligence 
     Agency Retirement and Disability System, and for other 
     purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Armed Services, with 
amendments, as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italics.)

                                S. 1538

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     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.

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel level adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Incorporation of reporting requirements.
Sec. 106. Development and acquisition program.
Sec. 107. Availability to public of certain intelligence funding 
              information.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

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

   TITLE III--INTELLIGENCE AND GENERAL INTELLIGENCE COMMUNITY MATTERS

Sec. 301. Increase in employee compensation and benefits authorized by 
              law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Clarification of definition of intelligence community under 
              the National Security Act of 1947.
Sec. 304. Delegation of authority for travel on common carriers for 
              intelligence collection personnel.
Sec. 305. Modification of availability of funds for different 
              intelligence activities.
Sec. 306. Increase in penalties for disclosure of undercover 
              intelligence officers and agents.
Sec. 307. Extension to intelligence community of authority to delete 
              information about receipt and disposition of foreign 
              gifts and decorations.
Sec. 308. Public Interest Declassification Board.
Sec. 309. Enhanced flexibility in non-reimbursable details to elements 
              of the intelligence community.
Sec. 310. Director of National Intelligence report on compliance with 
              the Detainee Treatment Act of 2005 and related provisions 
              of the Military Commissions Act of 2006.
Sec. 311. Terms of service of Program Manager for the Information 
              Sharing Environment and the Information Sharing Council.
Sec. 312. Improvement of notification of Congress regarding 
              intelligence activities of the United States Government.
Sec. 313. Additional limitation on availability of funds for 
              intelligence and intelligence-related activities.
Sec. 314. Vulnerability assessments of major systems.
Sec. 315. Annual personnel level assessments for the intelligence 
              community.
Sec. 316. Business enterprise architecture and business system 
              modernization for the intelligence community.
Sec. 317. Reports on the acquisition of major systems.
Sec. 318. Excessive cost growth of major systems.
Sec. 319. Submittal to Congress of certain court orders under the 
              Foreign Intelligence Surveillance Act of 1978.
Sec. 320. Submittal to Congress of certain President's Daily Briefs on 
              Iraq.
Sec. 321. National intelligence estimate on global climate change.
Sec. 322. 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. Requirements for accountability reviews by the Director of 
              National Intelligence.
Sec. 402. Additional authorities of the Director of National 
              Intelligence on intelligence information sharing.
Sec. 403. Modification of limitation on delegation by the Director of 
              National Intelligence of the protection of intelligence 
              sources and methods.
Sec. 404. Additional administrative authority of the Director of 
              National Intelligence.
Sec. 405. Enhancement of authority of the Director of National 
              Intelligence for flexible personnel management among the 
              elements of the intelligence community.
Sec. 406. Clarification of limitation on co-location of the Office of 
              the Director of National Intelligence.
Sec. 407. Additional duties of the Director of Science and Technology 
              of the Office of the Director of National Intelligence.
Sec. 408. Title of Chief Information Officer of the Intelligence 
              Community.
Sec. 409. Reserve for Contingencies of the Office of the Director of 
              National Intelligence.
Sec. 410. Inspector General of the Intelligence Community.
Sec. 411. Leadership and location of certain offices and officials.
Sec. 412. National Space Intelligence Office.
Sec. 413. Operational files in the Office of the Director of National 
              Intelligence.
Sec. 414. Repeal of certain authorities relating to the Office of the 
              National Counter-intelligence Executive.
Sec. 415. Inapplicability of Federal Advisory Committee Act to advisory 
              committees of the Office of the Director of National 
              Intelligence.
Sec. 416. Membership of the Director of National Intelligence on the 
              Transportation Security Oversight Board.
Sec. 417. Applicability of the Privacy Act to the Director of National 
              Intelligence and the Office of the Director of National 
              Intelligence.

                Subtitle B--Central Intelligence Agency

Sec. 421. Director and Deputy Director of the Central Intelligence 
              Agency.
Sec. 422. Inapplicability to Director of the Central Intelligence 
              Agency of requirement for annual report on progress in 
              auditable financial statements.
Sec. 423. Additional functions and authorities for protective personnel 
              of the Central Intelligence Agency.
Sec. 424. Technical amendments relating to titles of certain Central 
              Intelligence Agency positions.
Sec. 425. Availability of the Executive Summary of the report on 
              Central Intelligence Agency accountability regarding the 
              terrorist attacks of September 11, 2001.
Sec. 426. Director of National Intelligence report on retirement 
              benefits for former employees of Air America.

              Subtitle C--Defense Intelligence Components

Sec. 431. Enhancements of National Security Agency training program.
Sec. 432. Codification of authorities of National Security Agency 
              protective personnel.
Sec. 433. Inspector general matters.
Sec. 434. Confirmation of appointment of heads of certain components of 
              the intelligence community.
Sec. 435. Clarification of national security missions of National 
              Geospatial-Intelligence Agency for analysis and 
              dissemination of certain intelligence information.
Sec. 436. Security clearances in the National Geospatial-Intelligence 
              Agency.

                       Subtitle D--Other Elements

Sec. 441. Clarification of inclusion of Coast Guard and Drug 
              Enforcement Administration as elements of the 
              intelligence community.
Sec. 442. Clarifying amendments relating to Section 105 of the 
              Intelligence Authorization Act for Fiscal Year 2004.

                         TITLE V--OTHER MATTERS

Sec. 501. Technical amendments to the National Security Act of 1947.
Sec. 502. Technical clarification of certain references to Joint 
              Military Intelligence Program and Tactical Intelligence 
              and Related Activities.
Sec. 503. Technical amendments to the Intelligence Reform and Terrorism 
              Prevention Act of 2004.
Sec. 504. Technical amendments to title 10, United States Code, arising 
              from enactment of the Intelligence Reform and Terrorism 
              Prevention Act of 2004.
Sec. 505. Technical amendment to the Central Intelligence Agency Act of 
              1949.

[[Page S12458]]

Sec. 506. Technical amendments relating to the multiyear National 
              Intelligence Program.
Sec. 507. Technical amendments to the Executive Schedule.
Sec. 508. Technical amendments relating to redesignation of the 
              National Imagery and Mapping Agency as the National 
              Geospatial-Intelligence Agency.
Sec. 509. Other technical amendments relating to responsibility of the 
              Director of National Intelligence as head of the 
              intelligence community.

                    TITLE I--INTELLIGENCE ACTIVITIES

     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 Department of State.
       (8) The Department of the Treasury.
       (9) The Department of Energy.
       (10) The Department of Justice.
       (11) The Federal Bureau of Investigation.
       (12) The National Reconnaissance Office.
       (13) The National Geospatial-Intelligence Agency.
       (14) The Coast Guard.
       (15) The Department of Homeland Security.
       (16) The Drug Enforcement Administration.

     SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

       (a) Specifications of Amounts and Personnel Levels.--The 
     amounts authorized to be appropriated under section 101, and 
     the authorized personnel levels (expressed as full-time 
     equivalent positions) as of September 30, 2008, for the 
     conduct of the intelligence and intelligence-related 
     activities of the elements listed in such section, are those 
     specified in the classified Schedule of Authorizations 
     prepared to accompany the conference report on the bill ___ 
     of the One Hundred Tenth Congress.
       (b) Availability of Classified Schedule of 
     Authorizations.--The Schedule of Authorizations shall be made 
     available to the Committees on Appropriations of the Senate 
     and 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 LEVEL ADJUSTMENTS.

       (a) Authority for Adjustments.--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 of authorized full-time 
     equivalent positions for fiscal year 2008 under section 102 
     when 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 5 percent of the number of civilian 
     personnel authorized under such section for such element.
       (b) 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 in 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 employment of 
     additional full-time equivalent personnel in such element of 
     the intelligence community equal to the number of full-time 
     equivalent contractor employees performing such activities.
       (c) Notice to Intelligence Committees.--The Director of 
     National Intelligence shall notify the Select Committee on 
     Intelligence of the Senate and the Permanent Select Committee 
     on Intelligence of the House of Representatives in writing at 
     least 15 days before each exercise of the authority in 
     subsection (a) or (b).

     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 $715,076,000. 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 1768 full-time 
     equivalent personnel as of September 30, 2008. Personnel 
     serving in such elements may be permanent employees of the 
     Intelligence Community Management Account 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 in elements 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 
     also authorized to be appropriated for the Intelligence 
     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 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 also authorized such additional personnel for 
     such elements as of that date as are specified in the 
     classified Schedule of Authorizations.

     SEC. 105. INCORPORATION OF REPORTING REQUIREMENTS.

       (a) In General.--Each requirement to submit a report to the 
     congressional intelligence committees that is included in the 
     joint explanatory statement to accompany the conference 
     report on the bill ___ of the One Hundred Tenth Congress, or 
     in the classified annex to this Act, is hereby incorporated 
     into this Act, and is hereby made a requirement in law.
       (b) Congressional Intelligence Committees Defined.--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. 106. DEVELOPMENT AND ACQUISITION PROGRAM.

       Of the funds appropriated for the National Intelligence 
     Program for fiscal year 2008, and of funds currently 
     available for obligation for any prior fiscal year, the 
     Director of National Intelligence shall transfer not less 
     than the amount specified in the classified annex to the 
     Office of the Director of National Intelligence to fund the 
     development and acquisition of the program specified in the 
     classified annex. The funds as so transferred shall be 
     available without fiscal year limitation.

     SEC. 107. AVAILABILITY TO PUBLIC OF CERTAIN INTELLIGENCE 
                   FUNDING INFORMATION.

       (a) Amounts Requested Each Fiscal Year.--The President 
     shall disclose to the public for each fiscal year after 
     fiscal year 2008 the aggregate amount of appropriations 
     requested by the President for such fiscal year for the 
     National Intelligence Program.
       (b) Amounts Authorized and Appropriated Each Fiscal Year.--
     Congress shall disclose to the public for each fiscal year 
     after fiscal year 2007 the aggregate amount of funds 
     authorized to be appropriated, and the aggregate amount of 
     funds appropriated, by Congress for such fiscal year for the 
     National Intelligence Program.

 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 CENTRAL INTELLIGENCE AGENCY 
                   RETIREMENT ACT.

       Section 235(b)(1)(A) of the Central Intelligence Agency 
     Retirement Act (50 U.S.C. 2055(b)(1)(A)) 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--INTELLIGENCE AND GENERAL INTELLIGENCE COMMUNITY 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. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

       The authorization of appropriations by this Act shall not 
     be deemed to constitute authority for the conduct of any 
     intelligence activity which is not otherwise authorized by 
     the Constitution or the laws of the United States.

     SEC. 303. 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. 304. 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--

[[Page S12459]]

       (1) by inserting ``(1)'' before ``The Director'';
       (2) in paragraph (1), 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) Submittal of Guidelines to Congress.--Not later than 
     six 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).
       (c) Congressional Intelligence Committees Defined.--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. 305. 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. 306. INCREASE IN PENALTIES FOR DISCLOSURE OF UNDERCOVER 
                   INTELLIGENCE OFFICERS AND AGENTS.

       (a) 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''.
       (b) Disclosure of Agent After Access to Classified 
     Information.--Subsection (b) of such section is amended by 
     striking ``five years'' and inserting ``ten years''.

     SEC. 307. EXTENSION TO INTELLIGENCE COMMUNITY 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 subparagraphs (A) and (C) 
     of paragraphs (2) and (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.
       ``(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. 308. PUBLIC INTEREST DECLASSIFICATION BOARD.

       The Public Interest Declassification Act of 2000 (50 U.S.C. 
     435 note) is amended--
       (1) in section 704(e)--
       (A) by striking ``If requested'' and inserting the 
     following:
       ``(1) In general.--If requested''; and
       (B) by adding at the end the following:
       ``(2) Authority of board.--Upon receiving a congressional 
     request described in section 703(b)(5), the Board may conduct 
     the review and make the recommendations described in that 
     section, regardless of whether such a review is requested by 
     the President.
       ``(3) Reporting.--Any recommendations submitted to the 
     President by the Board under section 703(b)(5), shall be 
     submitted to the chairman and ranking member of the committee 
     of Congress that made the request relating to such 
     recommendations.''; and
       (2) in section 710(b), by striking ``8 years after the date 
     of the enactment of this Act'' and inserting ``on December 
     31, 2012''.

     SEC. 309. ENHANCED FLEXIBILITY IN NON-REIMBURSABLE DETAILS TO 
                   ELEMENTS OF THE INTELLIGENCE COMMUNITY.

       (a) In General.--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 
     non-reimbursable 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 three years.
       (b) Element of the Intelligence Community Defined.--In this 
     section, 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. 310. DIRECTOR OF NATIONAL INTELLIGENCE REPORT ON 
                   COMPLIANCE WITH THE DETAINEE TREATMENT ACT OF 
                   2005 AND RELATED PROVISIONS OF THE MILITARY 
                   COMMISSIONS ACT OF 2006.

       (a) Report Required.--Not later than September 1, 2007, the 
     Director of National Intelligence shall submit to the 
     [congressional intelligence committees] appropriate 
     committees of Congress 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) and related provisions of the Military 
     Commissions Act of 2006 (Public Law 109-366).
       (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] appropriate committees of Congress 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) all legal justifications of any office or official of 
     the Department of Justice about the meaning or application of 
     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) Definitions.--In this section:
       [(1) The term ``congressional intelligence committees'' 
     means--
       (A) the Select Committee on Intelligence of the Senate; and
       (B) the Permanent Select Committee of the House of 
     Representatives.]
       (1) The term ``appropriate committees of Congress'' means--
       (A) the Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate; and
       (B) the Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.
       (2) The term ``element of the intelligence community'' 
     means the elements of the intelligence community specified in 
     or designated under section 3(4) of the National Security Act 
     of 1947 (50 U.S.C. 401a(4)).

     SEC. 311. TERMS OF SERVICE OF PROGRAM MANAGER FOR THE 
                   INFORMATION SHARING ENVIRONMENT AND THE 
                   INFORMATION SHARING COUNCIL.

       Section 1016 of the National Security Intelligence Reform 
     Act of 2004 (title I of Public Law 108-458; 6 U.S.C. 485) is 
     amended--
       (1) in subsection (f)(1), by striking ``during the two-year 
     period beginning on the date of designation under this 
     paragraph unless sooner'' and inserting ``until''; and
       (2) in subsection (g)(1), by striking ``during the two-year 
     period beginning on the date of the initial designation of 
     the program manager by the President under subsection (f)(1), 
     unless sooner'' and inserting ``until''.

     SEC. 312. IMPROVEMENT OF NOTIFICATION OF CONGRESS REGARDING 
                   INTELLIGENCE ACTIVITIES OF THE UNITED STATES 
                   GOVERNMENT.

       (a) Notice on Information Not Disclosed.--
       (1) In general.--Section 502 of the National Security Act 
     of 1947 (50 U.S.C. 413a) is amended--
       (A) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and

[[Page S12460]]

       (B) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Notice on Information Not Disclosed.--
       ``(1) If the Director of National Intelligence or the head 
     of a department, agency, or other entity of the United States 
     Government does not provide information required by 
     subsection (a) in full or to all the members of the 
     congressional intelligence committees, and requests that such 
     information not be provided, the Director shall, in a timely 
     fashion, notify such committees of the determination not to 
     provide such information in full or to all members of such 
     committees. Such notice shall be submitted in writing in a 
     classified form, include a statement of the reasons for such 
     determination and description that provides the main features 
     of the intelligence activities covered by such determination, 
     and contain no restriction on access to this notice by all 
     members of the committee.
       ``(2) Nothing in this subsection shall be construed as 
     authorizing less than full and current disclosure to all the 
     members of the Select Committee on Intelligence of the Senate 
     and the Permanent Select Committee on Intelligence of the 
     House of Representatives of any information necessary to keep 
     all the members of such committees fully and currently 
     informed on all intelligence activities covered by this 
     section.''.
       (2) Conforming amendment.--Subsection (d) of such section, 
     as redesignated by paragraph (1)(A) of this subsection, is 
     amended by striking ``subsection (b)'' and inserting 
     ``subsections (b) and (c)''.
       (b) Reports and Notice on Covert Actions.--
       (1) Form and content of certain reports.--Subsection (b) of 
     section 503 of such Act (50 U.S.C. 413b) is amended--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (B) by inserting ``(1)'' after ``(b)''; and
       (C) by adding at the end the following new paragraph:
       ``(2) Any report relating to a covert action that is 
     submitted to the congressional intelligence committees for 
     the purposes of paragraph (1) shall be in writing, and shall 
     contain the following:
       ``(A) A concise statement of any facts pertinent to such 
     report.
       ``(B) An explanation of the significance of the covert 
     action covered by such report.''.
       (2) Notice on information not disclosed.--Subsection (c) of 
     such section is amended by adding at the end the following 
     new paragraph:
       ``(5) If the Director of National Intelligence or the head 
     of a department, agency, or other entity of the United States 
     Government does not provide information required by 
     subsection (b) in full or to all the members of the 
     congressional intelligence committees, and requests that such 
     information not be so provided, the Director shall, in a 
     timely fashion, notify such committees of the determination 
     not to provide such information in full or to all members of 
     such committees. Such notice shall be submitted in writing in 
     a classified form, include a statement of the reasons for 
     such determination and a description that provides the main 
     features of the covert action covered by such determination, 
     and contain no restriction on access to this notice by all 
     members of the committee.''.
       (3) Modification of nature of change of covert action 
     triggering notice requirements.--Subsection (d) of such 
     section is amended by striking ``significant'' the first 
     place it appears.

     SEC. 313. ADDITIONAL LIMITATION ON AVAILABILITY OF FUNDS FOR 
                   INTELLIGENCE AND INTELLIGENCE-RELATED 
                   ACTIVITIES.

       Section 504 of the National Security Act of 1947 (50 U.S.C. 
     414) is amended--
       (1) in subsection (a), by inserting ``the congressional 
     intelligence committees have been fully and currently 
     informed of such activity and if'' after ``only if'';
       (2) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively; and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) In any case in which notice to the congressional 
     intelligence committees on an intelligence or intelligence-
     related activity is covered by section 502(b), or in which 
     notice to the congressional intelligence committees on a 
     covert action is covered by section 503(c)(5), the 
     congressional intelligence committees shall be treated as 
     being fully and currently informed on such activity or covert 
     action, as the case may be, for purposes of subsection (a) if 
     the requirements of such section 502(b) or 503(c)(5), as 
     applicable, have been met.''.

     SEC. 314. VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS.

       (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:


              ``VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS

       ``Sec. 506B.  (a) Initial Vulnerability Assessments.--The 
     Director of National Intelligence shall conduct an initial 
     vulnerability assessment for any major system and its items 
     of supply, that is proposed for inclusion in the National 
     Intelligence Program. The initial vulnerability assessment of 
     a major system and its items of supply shall, at a minimum, 
     use an analysis-based approach to--
       ``(1) identify applicable 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 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 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 `vulnerability assessment' means the process 
     of identifying and quantifying vulnerabilities in a major 
     system and its items of supply.''.
       (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 506A the 
     following:

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

     SEC. 315. 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.), as amended by section 314, is 
     further amended by inserting after section 506B, as added by 
     section 314(a), the following new section:


  ``ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE INTELLIGENCE COMMUNITY

       ``Sec. 506C.  (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 not later than January 31, of each year.
       ``(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 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 number and costs of contractors funded by the 
     element for the upcoming fiscal year.

[[Page S12461]]

       ``(8) The numerical and percentage increase or decrease of 
     such costs of contractors as compared to 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) 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, as amended by section 314(b), is further 
     amended by inserting after the item relating to section 506B, 
     as added by section 314(b), the following new item:

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

     SEC. 316. 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 314 and 
     315, is further amended by inserting after section 506C, as 
     added by section 315(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 one 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, and 
     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

[[Page S12462]]

       ``(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 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 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, 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 section 314 and 315, is 
     further amended by inserting after the item relating to 
     section 506C, as added by section 315(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.--The Director shall develop 
     the enterprise architecture required by subsection (b) of 
     such section 506D (as so added) by not later than March 1, 
     2008. In so developing the enterprise architecture, the 
     Director shall develop an implementation plan for the 
     architecture, including the following:
       (A) The acquisition strategy for new systems that are 
     expected to be needed to complete the enterprise 
     architecture, including specific time-phased milestones, 
     performance metrics, and a statement of the financial and 
     nonfinancial resource needs.
       (B) An identification of the intelligence community 
     business systems in operation or planned as of December 31, 
     2006, that will not be a part of the enterprise architecture, 
     together with the schedule for the phased termination of the 
     utilization of any such systems.
       (C) An identification of the intelligence community 
     business systems in operation or planned as of December 31, 
     2006, that will be a part of the enterprise architecture, 
     together with a strategy for modifying such systems to ensure 
     that such systems comply with such enterprise architecture.

     SEC. 317. 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 314 
     through 316, is further amended by inserting after section 
     506D, as added by section 316(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 anticipated 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 anticipated development schedule for the 
     system, including an estimate of annual development costs 
     until development is completed.
       ``(3) The current anticipated 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 significant 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 system', has the meaning given that 
     term in section 506A(e).''.
       (b) Clerical Amendment.--The table of contents in the first 
     section of that Act, as amended by sections 314 through 316, 
     is further amended by inserting after the item relating to 
     section 506D, as added by section 316(a)(2), the following 
     new item:

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

     SEC. 318. EXCESSIVE COST GROWTH OF MAJOR SYSTEMS.

       (a) Notification.--Title V of the National Security Act of 
     1947, as amended by sections 314 through 317, is further 
     amended by inserting after section 506E, as added by section 
     317(a), the following new section:


                ``EXCESSIVE COST GROWTH OF MAJOR SYSTEMS

       ``Sec. 506F.  (a) Cost Increases of at Least 20 Percent.--
     (1) On a continuing basis, and separate from the submission 
     of any report on a major system required by

[[Page S12463]]

     section 506E of this Act, the Director of National 
     Intelligence shall determine if the acquisition cost of such 
     major system has increased by at least 20 percent as compared 
     to the baseline cost of such major system.
       ``(2)(A) If the Director determines under paragraph (1) 
     that the acquisition cost of a major system has increased by 
     at least 20 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 independent 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 40 Percent.--(1) If the 
     Director of National Intelligence determines that the 
     acquisition cost of a major system has increased by at least 
     40 percent as compared to the baseline cost of such major 
     system, the President 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.
       ``(2) In addition to the certification required by 
     paragraph (1), 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 
     30 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)(1) is not submitted to the congressional intelligence 
     committees within 30 days of the determination made under 
     subsection (b)(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 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)(2).
       ``(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 
     on the date the contract for the development, procurement, 
     and construction of the system is awarded.
       ``(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).''.
       (b) Clerical Amendment.--The table of contents in the first 
     section of that Act, as amended by sections 314 through 317 
     of this Act, is further amended by inserting after the items 
     relating to section 506E, as added by section 317(b), the 
     following new item:

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

     SEC. 319. SUBMITTAL TO CONGRESS OF CERTAIN COURT ORDERS UNDER 
                   THE FOREIGN INTELLIGENCE SURVEILLANCE ACT OF 
                   1978.

       (a) Inclusion of Certain Orders in Semi-Annual Reports of 
     Attorney General.--Subsection (a)(5) of section 601 of the 
     Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
     1871) is amended by striking ``(not including orders)'' and 
     inserting ``, orders,''.
       (b) Reports by Attorney General on Certain Other Orders.--
     That section is further amended by adding at the end the 
     following new subsection:
       ``(c) The Attorney General shall submit to the committees 
     of Congress referred to in subsection (a)--
       ``(1) a copy of any decision, order, or opinion issued by 
     the Foreign Intelligence Surveillance Court or the Foreign 
     Intelligence Surveillance Court of Review that includes 
     significant construction or interpretation of any provision 
     of this Act, and any pleadings associated with such decision, 
     order, or opinion, not later than 45 days after such 
     decision, order, or opinion is issued; and
       ``(2) a copy of any such decision, order, or opinion, and 
     the pleadings associated with such decision, order, or 
     opinion, that was issued during the 5-year period ending on 
     the date of the enactment of the Intelligence Authorization 
     Act for Fiscal Year 2008 and not previously submitted in a 
     report under subsection (a).''.

     SEC. 320. SUBMITTAL TO CONGRESS OF CERTAIN PRESIDENT'S DAILY 
                   BRIEFS ON IRAQ.

       (a) In General.--The Director of National Intelligence 
     shall submit to the congressional intelligence committees any 
     President's Daily Brief (PDB), or any portion of a 
     President's Daily Brief, of the Director of Central 
     Intelligence during the period beginning on January 20, 1997, 
     and ending on March 19, 2003, that refers to Iraq or 
     otherwise addresses Iraq in any fashion.
       (b) Congressional Intelligence Committees Defined.--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. 321. NATIONAL INTELLIGENCE ESTIMATE ON GLOBAL CLIMATE 
                   CHANGE.

       (a) Requirement for National Intelligence Estimate.--
       (1) In general.--Except as provided in paragraph (2), not 
     later than 270 days after the date of the enactment of this 
     Act, the Director of National Intelligence shall submit to 
     Congress a National Intelligence Estimate (NIE) on the 
     anticipated geopolitical effects of global climate change and 
     the implications of such effects on the national security of 
     the United States.
       (2) Notice regarding submittal.--If the Director of 
     National Intelligence determines that the National 
     Intelligence Estimate required by paragraph (1) cannot be 
     submitted by the date specified in that paragraph, the 
     Director shall notify Congress and provide--
       (A) the reasons that the National Intelligence Estimate 
     cannot be submitted by such date; and
       (B) an anticipated date for the submittal of the National 
     Intelligence Estimate.
       (b) Content.--The Director of National Intelligence shall 
     prepare the National Intelligence Estimate required by this 
     section using the mid-range projections of the fourth 
     assessment report of the Intergovernmental Panel on Climate 
     Change--
       (1) to assess the political, social, agricultural, and 
     economic risks during the 30-year period beginning on the 
     date of the enactment of this Act posed by global climate 
     change for countries or regions that are--
       (A) of strategic economic or military importance to the 
     United States and at risk of significant impact due to global 
     climate change; or
       (B) at significant risk of large-scale humanitarian 
     suffering with cross-border implications as predicted on the 
     basis of the assessments;
       (2) to assess other risks posed by global climate change, 
     including increased conflict

[[Page S12464]]

     over resources or between ethnic groups, within countries or 
     transnationally, increased displacement or forced migrations 
     of vulnerable populations due to inundation or other causes, 
     increased food insecurity, and increased risks to human 
     health from infectious disease;
       (3) to assess the capabilities of the countries or regions 
     described in subparagraph (A) or (B) of paragraph (1) to 
     respond to adverse impacts caused by global climate change; 
     and
       (4) to make recommendations for further assessments of 
     security consequences of global climate change that would 
     improve national security planning.
       (c) Coordination.--In preparing the National Intelligence 
     Estimate under this section, the Director of National 
     Intelligence shall consult with representatives of the 
     scientific community, including atmospheric and climate 
     studies, security studies, conflict studies, economic 
     assessments, and environmental security studies, the 
     Secretary of Defense, the Secretary of State, the 
     Administrator of the National Oceanographic and Atmospheric 
     Administration, the Administrator of the National Aeronautics 
     and Space Administration, the Administrator of the 
     Environmental Protection Agency, the Secretary of Energy, and 
     the Secretary of Agriculture, and, if appropriate, 
     multilateral institutions and allies of the United States 
     that have conducted significant research on global climate 
     change.
       (d) Assistance.--
       (1) Agencies of the united states.--In order to produce the 
     National Intelligence Estimate required by subsection (a), 
     the Director of National Intelligence may request any 
     appropriate assistance from any agency, department, or other 
     entity of the United State Government and such agency, 
     department, or other entity shall provide the assistance 
     requested.
       (2) Other entities.--In order to produce the National 
     Intelligence Estimate required by subsection (a), the 
     Director of National Intelligence may request any appropriate 
     assistance from any other person or entity.
       (3) Reimbursement.--The Director of National Intelligence 
     is authorized to provide appropriate reimbursement to the 
     head of an agency, department, or entity of the United States 
     Government that provides support requested under paragraph 
     (1) or any other person or entity that provides assistance 
     requested under paragraph (2).
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated to the Director of National Intelligence 
     such sums as may be necessary to carry out this subsection.
       (e) Form.--The National Intelligence Estimate required by 
     this section shall be submitted in unclassified form, to the 
     extent consistent with the protection of intelligence sources 
     and methods, and include unclassified key judgments of the 
     National Intelligence Estimate. The National Intelligence 
     Estimate may include a classified annex.
       (f) Duplication.--If the Director of National Intelligence 
     determines that a National Intelligence Estimate, or other 
     formal, coordinated intelligence product that meets the 
     procedural requirements of a National Intelligence Estimate, 
     has been prepared that includes the content required by 
     subsection (b) prior to the date of the enactment of this 
     Act, the Director of National Intelligence shall not be 
     required to produce the National Intelligence Estimate 
     required by subsection (a).

     SEC. 322. 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 Report on Safety and Security of Russian Nuclear 
     Facilities and Forces.--Section 114 of the National Security 
     Act of 1947 (50 U.S.C. 404i) is amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (a), (b), and (c), respectively.
       (d) 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).
       (e) 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.
       (f) 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.
       (g) Semiannual Report on Contributions to Proliferation 
     Efforts of Countries of Proliferation Concern.--Section 722 
     of the Combatting Proliferation of Weapons of Mass 
     Destruction Act of 1996 (50 U.S.C. 2369) is repealed.
       (h) 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)--
       (A) by striking subparagraphs (A) and (D);
       (B) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively; and
       (C) in subparagraph (A), as redesignated by subparagraph 
     (B) of this paragraph, by striking ``114(c)'' and inserting 
     ``114(b)''.

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

      Subtitle A--Office of the Director of National Intelligence

     SEC. 401. 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 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. 402. ADDITIONAL AUTHORITIES OF THE DIRECTOR OF NATIONAL 
                   INTELLIGENCE ON INTELLIGENCE INFORMATION 
                   SHARING.

       (a) Authorities of the Director of National Intelligence.--
     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)), expend funds and make funds available 
     to other department 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.

     SEC. 403. 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: ``, any Deputy Director of National 
     Intelligence, or the Chief Information Officer of the 
     Intelligence Community[, or the head of any element of the 
     intelligence community]''.

[[Page S12465]]

     SEC. 404. ADDITIONAL ADMINISTRATIVE AUTHORITY OF THE DIRECTOR 
                   OF NATIONAL INTELLIGENCE.

       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) Additional Administrative Authorities.--(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 two 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.''.

     SEC. 405. ENHANCEMENT OF AUTHORITY OF THE DIRECTOR OF 
                   NATIONAL INTELLIGENCE FOR FLEXIBLE PERSONNEL 
                   MANAGEMENT AMONG THE ELEMENTS OF THE 
                   INTELLIGENCE COMMUNITY.

       Section 102A of the National Security Act of 1947 (50 
     U.S.C. 403-1), as amended by section 404 of this Act, is 
     further amended by adding at the end the following new 
     subsections:
       ``(t) Authority To Establish Positions in Excepted 
     Service.--(1) The Director of National Intelligence may, with 
     the concurrence of the head of the department or agency 
     concerned and in coordination with the Director of the Office 
     of Personnel Management--
       ``(A) convert such competitive service positions, and their 
     incumbents, within an element of the intelligence community 
     to excepted service positions as the Director of National 
     Intelligence determines necessary to carry out the 
     intelligence functions of such element; and
       ``(B) establish the classification and ranges of rates of 
     basic pay for positions so converted, notwithstanding 
     otherwise applicable laws governing the classification and 
     rates of basic pay for such positions.
       ``(2)(A) At the request of the Director of National 
     Intelligence, the head of a department or agency may 
     establish new positions in the excepted service within an 
     element of such department or agency that is part of the 
     intelligence community if the Director determines that such 
     positions are necessary to carry out the intelligence 
     functions of such element.
       ``(B) The Director of National Intelligence may establish 
     the classification and ranges of rates of basic pay for any 
     position established under subparagraph (A), notwithstanding 
     otherwise applicable laws governing the classification and 
     rates of basic pay for such positions.
       ``(3) The head of the department or agency concerned is 
     authorized to appoint individuals for service in positions 
     converted under paragraph (1) or established under paragraph 
     (2) without regard to the provisions of chapter 33 of title 
     5, United States Code, governing appointments in the 
     competitive service, and to fix the compensation of such 
     individuals within the applicable ranges of rates of basic 
     pay established by the Director of National Intelligence.
       ``(4) The maximum rate of basic pay established under this 
     subsection is the rate for level III of the Executive 
     Schedule under section 5314 of title 5, United States Code.
       ``(u) 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 one 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.
       ``(v) Extension of Flexible Personnel Management 
     Authorities.--(1) Notwithstanding any other provision of law, 
     in order to ensure the equitable treatment of employees 
     across the intelligence community, the Director of National 
     Intelligence may, with the concurrence of the head of the 
     department or agency concerned, or for those matters that 
     fall under the responsibilities of the Office of Personnel 
     Management under statute or Executive Order, in coordination 
     with the Director of the Office of Personnel Management, 
     authorize one or more elements of the intelligence community 
     to adopt compensation authority, performance management 
     authority, and scholarship authority that have been 
     authorized for another element of the intelligence community 
     if the Director of National Intelligence--
       ``(A) determines that the adoption of such authority would 
     improve the management and performance of the intelligence 
     community, and
       ``(B) submits to the congressional intelligence committees, 
     not later than 60 days before such authority is to take 
     effect, notice of the adoption of such authority by such 
     element or elements, including the authority to be so 
     adopted, and an estimate of the costs associated with the 
     adoption of such authority.
       ``(2) To the extent that an existing compensation authority 
     within the intelligence community is limited to a particular 
     category of employees or a particular situation, the 
     authority may be adopted in another element of the 
     intelligence community under this subsection only for 
     employees in an equivalent category or in an equivalent 
     situation.
       ``(3) In this subsection, the term `compensation authority' 
     means authority involving basic pay (including position 
     classification), premium pay, awards, bonuses, incentives, 
     allowances, differentials, student loan repayments, and 
     special payments, but does not include authorities as 
     follows:
       ``(A) Authorities related to benefits such as leave, 
     severance pay, retirement, and insurance.
       ``(B) Authority to grant Presidential Rank Awards under 
     sections 4507 and 4507a of title 5, United States Code, 
     section 3151(c) of title 31, United States Code, and any 
     other provision of law.
       ``(C) Compensation authorities and performance management 
     authorities provided under provisions of law relating to the 
     Senior Executive Service.''.

     SEC. 406. 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)) 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. 407. ADDITIONAL DUTIES OF THE DIRECTOR OF SCIENCE AND 
                   TECHNOLOGY OF THE OFFICE OF THE DIRECTOR OF 
                   NATIONAL INTELLIGENCE.

       (a) Coordination and Prioritization of Research Conducted 
     by Elements of Intelligence Community.--Subsection (d) of 
     section 103E of the National Security Act of 1947 (50 U.S.C. 
     403-3e) is amended--
       (1) in paragraph (3)(A), by inserting ``and prioritize'' 
     after ``coordinate''; and
       (2) by adding at the end the following new paragraph:
       ``(4) In carrying out paragraph (3)(A), the Committee shall 
     identify basic, advanced, and applied research programs to be 
     carried out by elements of the intelligence community.''.
       (b) Development of Technology Goals.--That section is 
     further amended--
       (1) in subsection (c)--
       (A) in paragraph (4), by striking ``and'' at the end;
       (B) by redesignating paragraph (5) as paragraph (9); and
       (C) by inserting after paragraph (4) the following new 
     paragraphs:
       ``(5) assist the Director in establishing goals for the 
     elements of the intelligence community to meet the technology 
     needs of the intelligence community;
       ``(6) under the direction of the Director, establish 
     engineering standards and specifications applicable to each 
     acquisition of a major system (as that term is defined in 
     section 506A(e)(3)) by the intelligence community;
       ``(7) develop 15-year projections and assessments of the 
     needs of the intelligence community to ensure a robust 
     Federal scientific and engineering workforce and the means to 
     recruit such a workforce through integrated scholarships 
     across the intelligence community, including research grants 
     and cooperative work-study programs;
       ``(8) ensure that each acquisition program of the 
     intelligence community for a major system (as so defined) 
     complies with the standards and specifications established 
     under paragraph (6); and''; and
       (2) by adding at the end the following new subsection:

[[Page S12466]]

       ``(e) Goals for Technology Needs of Intelligence 
     Community.--In carrying out subsection (c)(5), the Director 
     of Science and Technology shall--
       ``(1) systematically identify and assess the most 
     significant intelligence challenges that require technical 
     solutions;
       ``(2) examine options to enhance the responsiveness of 
     research and design programs of the elements of the 
     intelligence community to meet the requirements of the 
     intelligence community for timely support; and
       ``(3) assist the Director of National Intelligence in 
     establishing research and development priorities and projects 
     for the intelligence community that--
       ``(A) are consistent with current or future national 
     intelligence requirements;
       ``(B) address deficiencies or gaps in the collection, 
     processing, analysis, or dissemination of national 
     intelligence;
       ``(C) take into account funding constraints in program 
     development and acquisition; and
       ``(D) address system requirements from collection to final 
     dissemination (also known as `end-to-end architecture').''.
       (c) Report.--
       (1) In general.--Not later than June 30, 2008, the Director 
     of National Intelligence shall submit to Congress a report 
     containing a strategy for the development and use of 
     technology in the intelligence community through 2021.
       (2) Elements.--The report under paragraph (1) shall 
     include--
       (A) an assessment of the highest priority intelligence gaps 
     across the intelligence community that may be resolved by the 
     use of technology;
       (B) goals for advanced research and development and a 
     strategy to achieve such goals;
       (C) an explanation of how each advanced research and 
     development project funded under the National Intelligence 
     Program addresses an identified intelligence gap;
       (D) a list of all current and projected research and 
     development projects by research type (basic, advanced, or 
     applied) with estimated funding levels, estimated initiation 
     dates, and estimated completion dates; and
       (E) a plan to incorporate technology from research and 
     development projects into National Intelligence Program 
     acquisition programs.
       (3) Form.--The report under paragraph (1) may be submitted 
     in classified form.

     SEC. 408. 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. 409. RESERVE FOR CONTINGENCIES OF THE OFFICE OF THE 
                   DIRECTOR OF NATIONAL INTELLIGENCE.

       (a) Establishment.--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:


 ``RESERVE FOR CONTINGENCIES OF THE OFFICE OF THE DIRECTOR OF NATIONAL 
                              INTELLIGENCE

       ``Sec. 103H.  (a) In General.--There is established a fund 
     to be known as the `Reserve for Contingencies of the Office 
     of the Director of National Intelligence' (in this section 
     referred to as the `Reserve').
       ``(b) Elements.--(1) The Reserve shall consist of the 
     following elements:
       ``(A) Amounts authorized to be appropriated to the Reserve.
       ``(B) Amounts authorized to be transferred to or deposited 
     in the Reserve by law.
       ``(2) No amount may be transferred to the Reserve under 
     subparagraph (B) of paragraph (1) during a fiscal year after 
     the date on which a total of $50,000,000 has been transferred 
     to or deposited in the Reserve under subparagraph (A) or (B) 
     of such paragraph.
       ``(c) Amounts Available for Deposit.--Amounts deposited 
     into the Reserve shall be amounts appropriated to the 
     National Intelligence Program.
       ``(d) Availability of Funds.--(1) Amounts in the Reserve 
     shall be available for such purposes as are provided by law 
     for the Office of the Director of National Intelligence or 
     the separate elements of the intelligence community for 
     support of emerging needs, improvements to program 
     effectiveness, or increased efficiency.
       ``(2)(A) Subject to subparagraph (B), amounts in the 
     Reserve may be available for a program or activity if--
       ``(i) the Director of National Intelligence, consistent 
     with the provisions of sections 502 and 503, notifies the 
     congressional intelligence committees of the intention to 
     utilize such amounts for such program or activity; and
       ``(ii) 15 calendar days elapses after the date of such 
     notification.
       ``(B) In addition to the requirements in subparagraph (A), 
     amounts in the Reserve may be available for a program or 
     activity not previously authorized by Congress only with the 
     approval of the Director the Office of Management and Budget.
       ``(3) Use of any amounts in the Reserve shall be subject to 
     the direction and approval of the Director of National 
     Intelligence, or the designee of the Director, and shall be 
     subject to such procedures as the Director may prescribe.
       ``(4) Amounts transferred to or deposited in the Reserve in 
     a fiscal year under subsection (b) shall be available under 
     this subsection in such fiscal year and the fiscal year 
     following such fiscal year.''.
       (b) Applicability.--No funds appropriated prior to the date 
     of the enactment of this Act may be transferred to or 
     deposited in the Reserve for Contingencies of the Office of 
     the Director of National Intelligence established in section 
     103H of the National Security Act of 1947, as added by 
     subsection (a).
       (c) 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. Reserve for Contingencies of the Office of the Director of 
              National Intelligence.''.

     SEC. 410. 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.), as amended by section 409 of 
     this Act, is further amended by inserting after section 103H 
     the following new section:


           ``INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY

       ``Sec. 103I.  (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, and 
     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

[[Page S12467]]

     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 that the Inspectors General are unable to 
     resolve the question with assistance of that Forum, the 
     Inspectors General shall submit the question to the Director 
     of National Intelligence for resolution. In the event of a 
     dispute between an Inspector General within the Department of 
     Defense 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 Secretary of 
     Defense 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 one 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

[[Page S12468]]

     summarizing the activities of the Office of the Inspector 
     General of the Intelligence Community during the immediately 
     preceding 6-month periods ending December 31 (of the 
     preceding year) and June 30, respectively. The Inspector 
     General of the Intelligence Community shall provide that 
     portion of the report involving components of the Department 
     of Defense to the Secretary of Defense 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 Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives that portion of the 
     report involving components of the Department of Defense 
     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] congressional intelligence 
     committees, and as appropriate the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives relating to matters within the 
     Department of Defense, each report under subparagraph (A) 
     within seven calendar days of receipt of such report, 
     together with such comments as the Director considers 
     appropriate.
       ``