[Congressional Record: October 3, 2007 (Senate)]
[Page S12539-S12561]
                      
 
                           TEXT OF AMENDMENTS

                      
 
  SA 3160. Mr. ROCKEFELLER (for himself and Mr. Bond) proposed an 
amendment to the 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; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Intelligence Authorization Act for Fiscal Year 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.

 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. Enhanced flexibility in non-reimbursable details to elements 
              of the intelligence community.
Sec. 309. 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. 310. Vulnerability assessments of major systems.
Sec. 311. Annual personnel level assessments for the intelligence 
              community.
Sec. 312. Business enterprise architecture and business system 
              modernization for the intelligence community.
Sec. 313. Reports on the acquisition of major systems.
Sec. 314. Excessive cost growth of major systems.
Sec. 315. Submittal to Congress of certain court orders under the 
              Foreign Intelligence Surveillance Act of 1978.
Sec. 316. 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. 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.
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

[[Page S12541]]

     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.

       (a) Transfer of Funds.--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.
       (b) Availability of Funds.--The funds transferred under 
     subsection (a) shall be available as follows:
       (1) In the case of funds appropriated prior to the date of 
     the enactment of this section, for the time of availability 
     as originally appropriated.
       (2) In the case of funds appropriated on or after the date 
     of the enactment of this section, without fiscal year 
     limitation.

 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--
       (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

[[Page S12542]]

     ``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. 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. 309. 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 December 1, 2007, the 
     Director of National Intelligence shall submit to the 
     congressional intelligence committees a comprehensive report 
     on all measures taken by the Office of the Director of 
     National Intelligence and by each element, if any, of the 
     intelligence community with relevant responsibilities to 
     comply with the provisions of the Detainee Treatment Act of 
     2005 (title X of division A of Public Law 109-148) 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 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) Submission to the Congressional Armed Services 
     Committees.--To the extent that the report required by 
     subsection (a) addresses an element of the intelligence 
     community within the Department of Defense, that portion of 
     the report, and any associated material that is necessary to 
     make that portion understandable, shall also be submitted by 
     the Director of National Intelligence to the congressional 
     armed services committees.
       (e) Definitions.--In this section:
       (1) The term ``congressional armed services committees'' 
     means--
       (A) the Committee on Armed Services of the Senate; and
       (B) the Committee on Armed Services of the House of 
     Representatives.
       (2) The term ``congressional intelligence committees'' 
     means--
       (A) the Select Committee on Intelligence of the Senate; and
       (B) the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       (3) 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. 310. 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).

[[Page S12543]]

       ``(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. 311. 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 310, is 
     further amended by inserting after section 506B, as added by 
     section 310(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 budget submission for personnel costs for the 
     upcoming fiscal year.
       ``(2) The dollar and percentage increase or decrease of 
     such costs as compared to the personnel costs of the current 
     fiscal year.
       ``(3) The dollar and percentage increase or decrease of 
     such costs as compared to the personnel costs during the 
     prior 5 fiscal years.
       ``(4) The number of personnel positions requested for the 
     upcoming fiscal year.
       ``(5) The numerical and percentage increase or decrease of 
     such number as compared to the number of personnel positions 
     of the current fiscal year.
       ``(6) The numerical and percentage increase or decrease of 
     such number as compared to the number of personnel positions 
     during the prior 5 fiscal years.
       ``(7) The best estimate of the number and costs of 
     contractors to be funded by the element for the upcoming 
     fiscal year.
       ``(8) The numerical and percentage increase or decrease of 
     such costs of contractors as compared to the best estimate of 
     the costs of contractors of the current fiscal year.
       ``(9) The numerical and percentage increase or decrease of 
     such costs of contractors as compared to the cost of 
     contractors, and the number of contractors, during the prior 
     5 fiscal years.
       ``(10) A written justification for the requested personnel 
     and contractor levels.
       ``(11) 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 310(b), is further 
     amended by inserting after the item relating to section 506B, 
     as added by section 310(b), the following new item:

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

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

       (a) Business Enterprise Architecture and Business System 
     Modernization.--
       (1) In general.--Title V of the National Security Act of 
     1947 (50 U.S.C. 413 et seq.), as amended by sections 310 and 
     311, is further amended by inserting after section 506C, as 
     added by section 311(a), the following new section:


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

       ``Sec. 506D.  (a) Limitation on Obligation of Funds for 
     Intelligence Community Business System Modernization.--(1) 
     After April 1, 2008, no funds appropriated to any element of 
     the intelligence community may be obligated for an 
     intelligence community business system modernization 
     described in paragraph (2) unless--
       ``(A) the approval authority designated by the Director of 
     National Intelligence under subsection (c)(2) makes the 
     certification described in paragraph (3) with respect to the 
     intelligence community business system modernization; and
       ``(B) the certification is approved by the Intelligence 
     Community Business Systems Management Committee established 
     under subsection (f).
       ``(2) An intelligence community business system 
     modernization described in this paragraph is an intelligence 
     community business system modernization that--
       ``(A) will have a total cost in excess of $1,000,000; and
       ``(B) will receive more than 50 percent of the funds for 
     such cost from amounts appropriated for the National 
     Intelligence Program.
       ``(3) The certification described in this paragraph for an 
     intelligence community business system modernization is a 
     certification, made by the approval authority designated by 
     the Director under subsection (c)(2) to the Intelligence 
     Community Business Systems Management Committee, that the 
     intelligence community business system modernization--
       ``(A) complies with the enterprise architecture under 
     subsection (b); or
       ``(B) is necessary--
       ``(i) to achieve a critical national security capability or 
     address a critical requirement in an area such as safety or 
     security; or
       ``(ii) to prevent a significant adverse effect on a project 
     that is needed to achieve an essential capability, taking 
     into consideration the alternative solutions for preventing 
     such adverse effect.
       ``(4) The obligation of funds for an intelligence community 
     business system modernization that does not comply with the 
     requirements of this subsection shall be treated as a 
     violation of section 1341(a)(1)(A) of title 31, United States 
     Code.
       ``(b) Enterprise Architecture for Intelligence Community 
     Business Systems.--(1) The Director of National Intelligence 
     shall, acting through the Intelligence Community Business 
     Systems Management Committee established under subsection 
     (f), develop and implement an enterprise architecture to 
     cover all intelligence community business systems, and the 
     functions and activities supported by such business systems. 
     The enterprise architecture shall be sufficiently defined to 
     effectively guide, constrain, and permit implementation of 
     interoperable intelligence community business system 
     solutions, consistent with applicable policies and procedures 
     established by the Director of the Office of Management and 
     Budget.
       ``(2) The enterprise architecture under paragraph (1) shall 
     include the following:
       ``(A) An information infrastructure that, at a minimum, 
     will enable the intelligence community to--
       ``(i) comply with all Federal accounting, financial 
     management, and reporting requirements;
       ``(ii) routinely produce timely, accurate, and reliable 
     financial information for management purposes;
       ``(iii) integrate budget, accounting, and program 
     information and systems; and
       ``(iv) provide for the systematic measurement of 
     performance, including the ability to produce timely, 
     relevant, and reliable cost information.
       ``(B) Policies, procedures, data standards, and system 
     interface requirements that apply uniformly throughout the 
     intelligence community.
       ``(c) Responsibilities for Intelligence Community Business 
     System Modernization.--(1) The Director of National 
     Intelligence shall be responsible for review, approval, and 
     oversight of the planning, design, acquisition, deployment, 
     operation, and maintenance of an intelligence community 
     business system modernization if more than 50 percent of the 
     cost of the intelligence community business system 
     modernization is funded by amounts appropriated for the 
     National Intelligence Program.
       ``(2) The Director shall designate 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.

[[Page S12544]]

       ``(C) Thresholds for levels of review to ensure appropriate 
     review of intelligence community business system investments 
     depending on the scope, complexity, and cost of the system 
     involved.
       ``(D) Procedures for making certifications in accordance 
     with the requirements of subsection (a)(3).
       ``(E) Mechanisms to ensure the consistency of the 
     investment review process with applicable guidance issued by 
     the Director of National Intelligence and the Intelligence 
     Community Business Systems Management Committee established 
     under subsection (f).
       ``(F) Common decision criteria, including standards, 
     requirements, and priorities, for purposes of ensuring the 
     integration of intelligence community business systems.
       ``(e) Budget Information.--For each fiscal year after 
     fiscal year 2009, the Director of National Intelligence shall 
     include in the materials the Director submits to Congress in 
     support of the budget for such fiscal year that is submitted 
     to Congress under section 1105 of title 31, United States 
     Code, the following information:
       ``(1) An identification of each intelligence community 
     business system for which funding is proposed in such budget.
       ``(2) An identification of all funds, by appropriation, 
     proposed in such budget for each such system, including--
       ``(A) funds for current services to operate and maintain 
     such system; and
       ``(B) funds for business systems modernization identified 
     for each specific appropriation.
       ``(3) For each such system, identification of approval 
     authority designated for such system under subsection (c)(2).
       ``(4) The certification, if any, made under subsection 
     (a)(3) with respect to each such system.
       ``(f) Intelligence Community Business Systems Management 
     Committee.--(1) The Director of National Intelligence shall 
     establish an Intelligence Community Business Systems 
     Management Committee (in this subsection referred to as the 
     `Committee').
       ``(2) The Committee shall--
       ``(A) recommend to the Director policies and procedures 
     necessary to effectively integrate all business activities 
     and any transformation, reform, reorganization, or process 
     improvement initiatives undertaken within the intelligence 
     community;
       ``(B) review and approve any major update of--
       ``(i) the enterprise architecture developed under 
     subsection (b); and
       ``(ii) any plans for an intelligence community business 
     systems modernization;
       ``(C) manage cross-domain integration consistent with such 
     enterprise architecture;
       ``(D) be responsible for coordinating initiatives for 
     intelligence community business system modernization to 
     maximize benefits and minimize costs for the intelligence 
     community, and periodically report to the Director on the 
     status of efforts to carry out an intelligence community 
     business system modernization;
       ``(E) ensure that funds are obligated for intelligence 
     community business system modernization in a manner 
     consistent with subsection (a); and
       ``(F) carry out such other duties as the Director shall 
     specify.
       ``(g) Relation to Annual Registration Requirements.--
     Nothing in this section shall be construed to alter the 
     requirements of section 8083 of the Department of Defense 
     Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 989), 
     with regard to information technology systems (as defined in 
     subsection (d) of such section).
       ``(h) Relation to Defense Business Systems Architecture, 
     Accountability, and Modernization Requirements.--An 
     intelligence community business system that receives more 
     than 50 percent of its funds from amounts available for the 
     National Intelligence Program shall be exempt from the 
     requirements of section 2222 of title 10, United States Code.
       ``(i) Relation to Clinger-Cohen Act.--(1) The Director of 
     National Intelligence and the Chief Information Officer of 
     the Intelligence Community shall fulfill the executive agency 
     responsibilities in chapter 113 of title 40, United States 
     Code, for any intelligence community business system that 
     receives more than 50 percent of its funding from amounts 
     appropriated for 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 310 and 311, is 
     further amended by inserting after the item relating to 
     section 506C, as added by section 312(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. 313. REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS.

       (a) In General.--Title V of the National Security Act of 
     1947 (50 U.S.C. 413 et seq.), as amended by sections 310, 
     311, and 312, is further amended by inserting after section 
     506D, as added by section 312(a)(1), the following new 
     section:


             ``REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS

       ``Sec. 506E.  (a) Annual Reports Required.--(1) The 
     Director of National Intelligence shall submit to the 
     congressional intelligence committees each year, at the same 
     time the budget of the President for the fiscal year 
     beginning in such year is submitted to Congress pursuant to 
     section 1105 of title 31, United States Code, a separate 
     report on each acquisition of a major system by an element of 
     the intelligence community.
       ``(2) Each report under this section shall be known as a 
     `Report on the Acquisition of Major Systems'.
       ``(b) Elements.--Each report under this section shall 
     include, for the acquisition of a major system, information 
     on the following:
       ``(1) The current total 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.

[[Page S12545]]

       ``(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 310, 311, and 
     312, is further amended by inserting after the item relating 
     to section 506D, as added by section 312(a)(2), the following 
     new item:

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

     SEC. 314. EXCESSIVE COST GROWTH OF MAJOR SYSTEMS.

       (a) Notification.--Title V of the National Security Act of 
     1947, as amended by sections 310 through 313, is further 
     amended by inserting after section 506E, as added by section 
     313(a), the following new section:


                ``EXCESSIVE COST GROWTH OF MAJOR SYSTEMS

       ``Sec. 506F.  (a) Cost Increases of at Least 20 Percent.--
     (1) On a continuing basis, and separate from the submission 
     of any report on a major system required by 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 310 through 313 
     of this Act, is further amended by inserting after the items 
     relating to section 506E, as added by section 313(b), the 
     following new item:

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

     SEC. 315. 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) a copy of any 
     decision, order, or opinion issued by the court established 
     under section 103(a) or the court of review established under 
     section 103(b) that includes significant construction or 
     interpretation of any provision of this Act not later than 45 
     days after such decision, order, or opinion is issued.''.

[[Page S12546]]

     SEC. 316. 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 may, if requested 
     by a congressional intelligence committee, conduct 
     accountability reviews of elements of the intelligence 
     community or the personnel of such elements in relation to 
     significant failures or deficiencies within the intelligence 
     community.
       ``(B) The Director of National Intelligence, in 
     consultation with the Attorney General, shall establish 
     guidelines and procedures for conducting accountability 
     reviews under subparagraph (A).
       ``(C) The requirements of this paragraph shall not limit 
     any authority of the Director of National Intelligence under 
     subsection (m) or with respect to supervision of the Central 
     Intelligence Agency.''.

     SEC. 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''.

     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.

[[Page S12547]]

       ``(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:
       ``(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').

[[Page S12548]]

       ``(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 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

[[Page S12549]]

     official of the Department of Justice responsible for 
     determining whether a prosecution should be undertaken; and
       ``(B) no action constituting a reprisal, or threat of 
     reprisal, for making such complaint may be taken by any 
     employee in a position to take such actions, unless the 
     complaint was made or the information was disclosed with the 
     knowledge that it was false or with willful disregard for its 
     truth or falsity.
       ``(4) The Inspector General shall have authority to 
     administer to or take from any person an oath, affirmation, 
     or affidavit, whenever necessary in the performance of the 
     duties of the Inspector General, which oath, affirmation, or 
     affidavit when administered or taken by or before an employee 
     of the Office of the Inspector General of the Intelligence 
     Community designated by the Inspector General shall have the 
     same force and effect as if administered or taken by or 
     before an officer having a seal.
       ``(5)(A) Except as provided in subparagraph (B), the 
     Inspector General is authorized to require by subpoena the 
     production of all information, documents, reports, answers, 
     records, accounts, papers, and other data and documentary 
     evidence necessary in the performance of the duties and 
     responsibilities of the Inspector General.
       ``(B) In the case of departments, agencies, and other 
     elements of the United States Government, the Inspector 
     General shall obtain information, documents, reports, 
     answers, records, accounts, papers, and other data and 
     evidence for the purpose specified in subparagraph (A) using 
     procedures other than by subpoenas.
       ``(C) The Inspector General may not issue a subpoena for or 
     on behalf of any other element of the intelligence community, 
     including the Office of the Director of National 
     Intelligence.
       ``(D) In the case of contumacy or refusal to obey a 
     subpoena issued under this paragraph, the subpoena shall be 
     enforceable by order of any appropriate district court of the 
     United States.
       ``(g) Coordination Among Inspectors General of Intelligence 
     Community.--(1)(A) In the event of a matter within the 
     jurisdiction of the Inspector General of the Intelligence 
     Community that may be subject to an investigation, 
     inspection, or audit by both the Inspector General of the 
     Intelligence Community and an Inspector General, whether 
     statutory or administrative, with oversight responsibility 
     for an element or elements of the intelligence community, the 
     Inspector General of the Intelligence Community and such 
     other Inspector or Inspectors General shall expeditiously 
     resolve the question of which Inspector General shall conduct 
     such investigation, inspection, or audit.
       ``(B) In attempting to resolve a question under 
     subparagraph (A), the Inspectors General concerned may 
     request the assistance of the Intelligence Community 
     Inspectors General Forum established under subparagraph (C). 
     In the event of a dispute between an Inspector General within 
     a department of the United States Government and the 
     Inspector General of the Intelligence Community that has not 
     been resolved with the assistance of the Forum, the 
     Inspectors General shall submit the question to the Director 
     of National Intelligence and the head of the department for 
     resolution.
       ``(C) There is established the Intelligence Community 
     Inspectors General Forum which shall consist of all statutory 
     or administrative Inspectors General with oversight 
     responsibility for an element or elements of the intelligence 
     community. The Inspector General of the Intelligence 
     Community shall serve as the chair of the Forum. The Forum 
     shall have no administrative authority over any Inspector 
     General, but shall serve as a mechanism for informing its 
     members of the work of individual members of the Forum that 
     may be of common interest and discussing questions about 
     jurisdiction or access to employees, employees of a 
     contractor, records, audits, reviews, documents, 
     recommendations, or other materials that may involve or be of 
     assistance to more than 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 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 any portion of the report involving a 
     component of a department of the United States Government to 
     the head of that department simultaneously with submission of 
     the report to the Director of National Intelligence.
       ``(B) Each report under this paragraph shall include, at a 
     minimum, the following:
       ``(i) A list of the title or subject of each investigation, 
     inspection, or audit conducted during the period covered by 
     such report, including a summary of the progress of each 
     particular investigation, inspection, or audit since the 
     preceding report of the Inspector General under this 
     paragraph.
       ``(ii) A description of significant problems, abuses, and 
     deficiencies relating to the administration and 
     implementation of programs and operations of the intelligence 
     community, and in the relationships between elements of the 
     intelligence community, identified by the Inspector General 
     during the period covered by such report.
       ``(iii) A description of the recommendations for corrective 
     or disciplinary action made by the Inspector General during 
     the period covered by such report with respect to significant 
     problems, abuses, or deficiencies identified in clause (ii).
       ``(iv) A statement whether or not corrective or 
     disciplinary action has been completed on each significant 
     recommendation described in previous semiannual reports, and, 
     in a case where corrective action has been completed, a 
     description of such corrective action.
       ``(v) A certification whether or not the Inspector General 
     has had full and direct access to all information relevant to 
     the performance of the functions of the Inspector General.
       ``(vi) A description of the exercise of the subpoena 
     authority under subsection (f)(5) by the Inspector General 
     during the period covered by such report.
       ``(vii) Such recommendations as the Inspector General 
     considers appropriate for legislation to promote economy, 
     efficiency, and effectiveness in the administration and 
     implementation of matters within the responsibility and 
     authority of the Director of National Intelligence, and to 
     detect and eliminate fraud and abuse in such matters.
       ``(C) Not later than the 30 days after the date of receipt 
     of a report under subparagraph (A), the Director shall 
     transmit the report to the congressional intelligence 
     committees together with any comments the Director considers 
     appropriate. The Director shall transmit to the committees of 
     the Senate and of the House of Representatives with 
     jurisdiction over a department of the United States 
     Government any portion of the report involving a component of 
     such department simultaneously with submission of the report 
     to the congressional intelligence committees.
       ``(2)(A) The Inspector General shall report immediately to 
     the Director whenever the Inspector General becomes aware of 
     particularly serious or flagrant problems, abuses, or 
     deficiencies relating to matters within the responsibility 
     and authority of the Director of National Intelligence.
       ``(B) The Director shall transmit to the congressional 
     intelligence committees each report under subparagraph (A) 
     within seven calendar days of receipt of such report, 
     together with such comments as the Director considers 
     appropriate. The Director shall transmit to the committees of 
     the Senate and of the House of Representatives with 
     jurisdiction over a department of the United States 
     Government any portion of each report under subparagraph (A) 
     that involves a

[[Page S12550]]

     problem, abuse, or deficiency related to a component of such 
     department simultaneously with transmission of the report to 
     the congressional intelligence committees.
       ``(3) In the event that--
       ``(A) the Inspector General is unable to resolve any 
     differences with the Director affecting the execution of the 
     duties or responsibilities of the Inspector General;
       ``(B) an investigation, inspection, or audit carried out by 
     the Inspector General focuses on any current or former 
     intelligence community official who--
       ``(i) holds or held a position in an element of the 
     intelligence community that is subject to appointment by the 
     President, whether or not by and with the advice and consent 
     of the Senate, including such a position held on an acting 
     basis;
       ``(ii) holds or held a position in an element of the 
     intelligence community, including a position held on an 
     acting basis, that is appointed by the Director of National 
     Intelligence; or
       ``(iii) holds or held a position as head of an element of 
     the intelligence community or a position covered by 
     subsection (b) or (c) of section 106;
       ``(C) a matter requires a report by the Inspector General 
     to the Department of Justice on possible criminal conduct by 
     a current or former official described in subparagraph (B);
       ``(D) the Inspector General receives notice from the 
     Department of Justice declining or approving prosecution of 
     possible criminal conduct of any current or former official 
     described in subparagraph (B); or
       ``(E) the Inspector General, after exhausting all possible 
     alternatives, is unable to obtain significant documentary 
     information in the course of an investigation, inspection, or 
     audit,

     the Inspector General shall immediately notify and submit a 
     report on such matter to the congressional intelligence 
     committees.
       ``(4) Pursuant to title V, the Director shall submit to the 
     congressional intelligence committees any report or findings 
     and recommendations of an investigation, inspection, or audit 
     conducted by the office which has been requested by the 
     Chairman or Vice Chairman or Ranking Minority Member of 
     either committee.
       ``(5)(A) An employee of an element of the intelligence 
     community, an employee assigned or detailed to an element of 
     the intelligence community, or an employee of a contractor to 
     the intelligence community who intends to report to Congress 
     a complaint or information with respect to an urgent concern 
     may report such complaint or information to the Inspector 
     General.
       ``(B) Not later than the end of the 14-calendar day period 
     beginning on the date of receipt from an employee of a 
     complaint or information under subparagraph (A), the 
     Inspector General shall determine whether the complaint or 
     information appears credible. Upon making such a 
     determination, the Inspector General shall transmit to the 
     Director a notice of that determination, together with the 
     complaint or information.
       ``(C) Upon receipt of a transmittal from the Inspector 
     General under subparagraph (B), the Director shall, within 
     seven calendar days of such receipt, forward such transmittal 
     to the congressional intelligence committees, together with 
     any comments the Director considers appropriate.
       ``(D)(i) If the Inspector General does not find credible 
     under subparagraph (B) a complaint or information submitted 
     under subparagraph (A), or does not transmit the complaint or 
     information to the Director in accurate form under 
     subparagraph (B), the employee (subject to clause (ii)) may 
     submit the complaint or information to Congress by contacting 
     either or both of the congressional intelligence committees 
     directly.
       ``(ii) An employee may contact the intelligence committees 
     directly as described in clause (i) only if the employee--
       ``(I) before making such a contact, furnishes to the 
     Director, through the Inspector General, a statement of the 
     employee's complaint or information and notice of the 
     employee's intent to contact the congressional intelligence 
     committees directly; and
       ``(II) obtains and follows from the Director, through the 
     Inspector General, direction on how to contact the 
     intelligence committees in accordance with appropriate 
     security practices.
       ``(iii) A member or employee of one of the congressional 
     intelligence committees who receives a complaint or 
     information under clause (i) does so in that member or 
     employee's official capacity as a member or employee of such 
     committee.
       ``(E) The Inspector General shall notify an employee who 
     reports a complaint or information to the Inspector General 
     under this paragraph of each action taken under this 
     paragraph with respect to the complaint or information. Such 
     notice shall be provided not later than 3 days after any such 
     action is taken.
       ``(F) An action taken by the Director or the Inspector 
     General under this paragraph shall not be subject to judicial 
     review.
       ``(G) In this paragraph, the term `urgent concern' means 
     any of the following:
       ``(i) A serious or flagrant problem, abuse, violation of 
     law or Executive order, or deficiency relating to the 
     funding, administration, or operation of an intelligence 
     activity involving classified information, but does not 
     include differences of opinions concerning public policy 
     matters.
       ``(ii) A false statement to Congress, or a willful 
     withholding from Congress, on an issue of material fact 
     relating to the funding, administration, or operation of an 
     intelligence activity.
       ``(iii) An action, including a personnel action described 
     in section 2302(a)(2)(A) of title 5, United States Code, 
     constituting reprisal or threat of reprisal prohibited under 
     subsection (f)(3)(B) of this section in response to an 
     employee's reporting an urgent concern in accordance with 
     this paragraph.
       ``(H) In support of this paragraph, Congress makes the 
     findings set forth in paragraphs (1) through (6) of section 
     701(b) of the Intelligence Community Whistleblower Protection 
     Act of 1998 (title VII of Public Law 105-272; 5 U.S.C. App. 
     8H note).
       ``(6) In accordance with section 535 of title 28, United 
     States Code, the Inspector General shall report to the 
     Attorney General any information, allegation, or complaint 
     received by the Inspector General relating to violations of 
     Federal criminal law that involves a program or operation of 
     an element of the intelligence community, or in the 
     relationships between the elements of the intelligence 
     community, consistent with such guidelines as may be issued 
     by the Attorney General pursuant to subsection (b)(2) of such 
     section. A copy of each such report shall be furnished to the 
     Director.
       ``(j) Separate Budget Account.--The Director of National 
     Intelligence shall, in accordance with procedures to be 
     issued by the Director in consultation with the congressional 
     intelligence committees, include in the National Intelligence 
     Program budget a separate account for the Office of Inspector 
     General of the Intelligence Community.
       ``(k) Construction of Duties Regarding Elements of 
     Intelligence Community.--Except as resolved pursuant to 
     subsection (g), the performance by the Inspector General of 
     the Intelligence Community of any duty, responsibility, or 
     function regarding an element of the intelligence community 
     shall not be construed to modify or effect the duties and 
     responsibilities of any other Inspector General, whether 
     statutory or administrative, having duties and 
     responsibilities relating to such element.''.
       (2) Clerical amendment.--The table of contents in the first 
     section of the National Security Act of 1947, as amended by 
     section 409 of this Act, is further amended by inserting 
     after the item relating to section 103H the following new 
     item:

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

       (b) Repeal of Superseded Authority To Establish Position.--
     Section 8K of the Inspector General Act of 1978 (5 U.S.C. 
     App.) is repealed.
       (c) Executive Schedule Level IV.--Section 5314 of title 5, 
     United States Code, is amended by adding at the end the 
     following new item:
       ``Inspector General of the Intelligence Community.''.

     SEC. 411. LEADERSHIP AND LOCATION OF CERTAIN OFFICES AND 
                   OFFICIALS.

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

     SEC. 412. NATIONAL SPACE INTELLIGENCE OFFICE.

       (a) Establishment.--
       (1) In general.--Title I of the National Security Act of 
     1947 (50 U.S.C. 401 et seq.) is amended by adding at the end 
     the following new section:


                  ``NATIONAL SPACE INTELLIGENCE OFFICE

       ``Sec. 119C.  (a) Establishment.--There is established 
     within the Office of the Director of National Intelligence a 
     National Space Intelligence Office.
       ``(b) Director of National Space Intelligence Office.--The 
     National Intelligence Officer for Science and Technology, or 
     a successor position designated by the Director of National 
     Intelligence, shall act as the Director of the National Space 
     Intelligence Office.
       ``(c) Missions.--The National Space Intelligence Office 
     shall have the following missions:
       ``(1) To coordinate and provide policy direction for the 
     management of space-related intelligence assets.

[[Page S12551]]

       ``(2) To prioritize collection activities consistent with 
     the National Intelligence Collection Priorities framework, or 
     a successor framework or other document designated by the 
     Director of National Intelligence.
       ``(3) To provide policy direction for programs designed to 
     ensure a sufficient cadre of government and nongovernment 
     personnel in fields relating to space intelligence, including 
     programs to support education, recruitment, hiring, training, 
     and retention of qualified personnel.
       ``(4) To evaluate independent analytic assessments of 
     threats to classified United States space intelligence 
     systems throughout all phases of the development, 
     acquisition, and operation of such systems.
       ``(d) Access to Information.--The Director of National 
     Intelligence shall ensure that the National Space 
     Intelligence Office has access to all national intelligence 
     information (as appropriate), and such other information (as 
     appropriate and practical), necessary for the Office to carry 
     out the missions of the Office under subsection (c).
       ``(e) Separate Budget Account.--The Director of National 
     Intelligence shall include in the National Intelligence 
     Program budget a separate line item for the National Space 
     Intelligence Office.''.
       (2) Clerical amendment.--The table of contents in the first 
     section of the National Security Act of 1947 is amended by 
     inserting after the item relating to section 119B the 
     following new item:

``Sec. 119C. National Space Intelligence Office.''.

       (b) Report on Organization of Office.--
       (1) Report required.--Not later than 180 days after the 
     date of the enactment of this Act, the Director of the 
     National Space Intelligence Office shall submit to the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives a report on the organizational structure of 
     the National Space Intelligence Office established by section 
     119C of the National Security Act of 1947 (as added by 
     subsection (a)).
       (2) Elements.--The report required by paragraph (1) shall 
     include the following:
       (A) The proposed organizational structure of the National 
     Space Intelligence Office.
       (B) An identification of key participants in the Office.
       (C) A strategic plan for the Office during the five-year 
     period beginning on the date of the report.

     SEC. 413. OPERATIONAL FILES IN THE OFFICE OF THE DIRECTOR OF 
                   NATIONAL INTELLIGENCE.

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


``PROTECTION OF CERTAIN FILES OF THE OFFICE OF THE DIRECTOR OF NATIONAL 
                              INTELLIGENCE

       ``Sec. 706.  (a) Records From Exempted Operational Files.--
     (1) Any record disseminated or otherwise provided to an 
     element of the Office of the Director of National 
     Intelligence from the exempted operational files of elements 
     of the intelligence community designated in accordance with 
     this title, and any operational files created by the Office 
     of the Director of National Intelligence that incorporate 
     such record in accordance with subparagraph (A)(ii), shall be 
     exempted from the provisions of section 552 of title 5, 
     United States Code that require search, review, publication 
     or disclosure in connection therewith, in any instance in 
     which--
       ``(A)(i) such record is shared within the Office of the 
     Director of National Intelligence and not disseminated by 
     that Office beyond that Office; or
       ``(ii) such record is incorporated into new records created 
     by personnel of the Office of the Director of National 
     Intelligence and maintained in operational files of the 
     Office of the Director of National Intelligence and such 
     record is not disseminated by that Office beyond that Office; 
     and
       ``(B) the operational files from which such record has been 
     obtained continue to remain designated as operational files 
     exempted from section 552 of title 5, United States Code.
       ``(2) The operational files of the Office of the Director 
     of National Intelligence referred to in paragraph (1)(A)(ii) 
     shall be similar in nature to the originating operational 
     files from which the record was disseminated or provided, as 
     such files are defined in this title.
       ``(3) Records disseminated or otherwise provided to the 
     Office of the Director of National Intelligence from other 
     elements of the intelligence community that are not protected 
     by paragraph (1), and that are authorized to be disseminated 
     beyond the Office of the Director of National Intelligence, 
     shall remain subject to search and review under section 552 
     of title 5, United States Code, but may continue to be 
     exempted from the publication and disclosure provisions of 
     that section by the originating agency to the extent that 
     such section permits.
       ``(4) Notwithstanding any other provision of this title, 
     records in the exempted operational files of the Central 
     Intelligence Agency, the National Geospatial-Intelligence 
     Agency, the National Reconnaissance Office, the National 
     Security Agency, or the Defense Intelligence Agency shall not 
     be subject to the search and review provisions of section 552 
     of title 5, United States Code, solely because they have been 
     disseminated to an element or elements of the Office of the 
     Director of National Intelligence, or referenced in 
     operational files of the Office of the Director of National 
     Intelligence and that are not disseminated beyond the Office 
     of the Director of National Intelligence.
       ``(5) Notwithstanding any other provision of this title, 
     the incorporation of records from the operational files of 
     the Central Intelligence Agency, the National Geospatial-
     Intelligence Agency, the National Reconnaissance Office, the 
     National Security Agency, or the Defense Intelligence Agency, 
     into operational files of the Office of the Director of 
     National Intelligence shall not subject that record or the 
     operational files of the Central Intelligence Agency, the 
     National Geospatial-Intelligence Agency, the National 
     Reconnaissance Office, the National Security Agency or the 
     Defense Intelligence Agency to the search and review 
     provisions of section 552 of title 5, United States Code.
       ``(b) Other Records.--(1) Files in the Office of the 
     Director of National Intelligence that are not exempted under 
     subsection (a) of this section which contain information 
     derived or disseminated from exempted operational files shall 
     be subject to search and review under section 552 of title 5, 
     United States Code.
       ``(2) The inclusion of information from exempted 
     operational files in files of the Office of the Director of 
     National Intelligence that are not exempted under subsection 
     (a) shall not affect the exemption of the originating 
     operational files from search, review, publication, or 
     disclosure.
       ``(3) Records from exempted operational files of the Office 
     of the Director of National Intelligence which have been 
     disseminated to and referenced in files that are not exempted 
     under subsection (a), and which have been returned to 
     exempted operational files of the Office of the Director of 
     National Intelligence for sole retention, shall be subject to 
     search and review.
       ``(c) Search and Review for Certain Purposes.--
     Notwithstanding subsection (a), exempted operational files 
     shall continue to be subject to search and review for 
     information concerning any of the following:
       ``(1) United States citizens or aliens lawfully admitted 
     for permanent residence who have requested information on 
     themselves pursuant to the provisions of section 552 or 552a 
     of title 5, United States Code.
       ``(2) Any special activity the existence of which is not 
     exempt from disclosure under the provisions of section 552 of 
     title 5, United States Code.
       ``(3) The specific subject matter of an investigation by 
     any of the following for any impropriety, or violation of 
     law, Executive order, or Presidential directive, in the 
     conduct of an intelligence activity:
       ``(A) The Select Committee on Intelligence of the Senate.
       ``(B) The Permanent Select Committee on Intelligence of the 
     House of Representatives.
       ``(C) The Intelligence Oversight Board.
       ``(D) The Department of Justice.
       ``(E) The Office of the Director of National Intelligence.
       ``(F) The Office of the Inspector General of the 
     Intelligence Community.
       ``(d) Decennial Review of Exempted Operational Files.--(1) 
     Not less than once every 10 years, the Director of National 
     Intelligence shall review the operational files exempted 
     under subsection (a) to determine whether such files, or any 
     portion of such files, may be removed from the category of 
     exempted files.
       ``(2) The review required by paragraph (1) shall include 
     consideration of the historical value or other public 
     interest in the subject matter of the particular category of 
     files or portions thereof and the potential for declassifying 
     a significant part of the information contained therein.
       ``(3) A complainant that alleges that Director of National 
     Intelligence has improperly withheld records because of 
     failure to comply with this subsection may seek judicial 
     review in the district court of the United States of the 
     district in which any of the parties reside, or in the 
     District of Columbia. In such a proceeding, the court's 
     review shall be limited to determining the following:
       ``(A) Whether the Director has conducted the review 
     required by paragraph (1) before the expiration of the 10-
     year period beginning on the date of the enactment of the 
     Intelligence Authorization Act for Fiscal Year 2008 or before 
     the expiration of the 10-year period beginning on the date of 
     the most recent review.
       ``(B) Whether the Director of National Intelligence, in 
     fact, considered the criteria set forth in paragraph (2) in 
     conducting the required review.
       ``(e) Supersedure of Other Laws.--The provisions of this 
     section may not be superseded except by a provision of law 
     that is enacted after the date of the enactment of this 
     section and that specifically cites and repeals or modifies 
     such provisions.
       ``(f) Applicability.--The Director of National Intelligence 
     will publish a regulation listing the specific elements 
     within the Office of the Director of National Intelligence 
     whose records can be exempted from search and review under 
     this section.
       ``(g) Allegation; Improper Withholding of Records; Judicial 
     Review.--(1) Except as provided in paragraph (2), whenever 
     any person who has requested agency records under section 552 
     of title 5, United States Code, alleges that the Office of 
     the Director of National Intelligence has withheld records 
     improperly because of failure to comply with any provision of 
     this section, judicial review shall be available under the 
     terms set forth in section 552(a)(4)(B) of title 5, United 
     States Code.

[[Page S12552]]

       ``(2) Judicial review shall not be available in the manner 
     provided for under paragraph (1) as follows:
       ``(A) In any case in which information specifically 
     authorized under criteria established by an Executive order 
     to be kept secret in the interests of national defense or 
     foreign relations is filed with, or produced for, the court 
     by the Office of the Director of National Intelligence, such 
     information shall be examined ex parte, in camera by the 
     court.
       ``(B) The court shall determine, to the fullest extent 
     practicable, the issues of fact based on sworn written 
     submissions of the parties.
       ``(C) When a complainant alleges that requested records are 
     improperly withheld because of improper placement solely in 
     exempted operational files, the complainant shall support 
     such allegation with a sworn written submission based upon 
     personal knowledge or otherwise admissible evidence.
       ``(D)(i) When a complainant alleges that requested records 
     were improperly withheld because of improper exemption of 
     operational files, the Office of the Director of National 
     Intelligence shall meet its burden under section 552(a)(4)(B) 
     of title 5, United States Code, by demonstrating to the court 
     by sworn written submission that exempted operational files 
     likely to contain responsive records currently meet the 
     criteria set forth in subsection.
       ``(ii) The court may not order the Office of the Director 
     of National Intelligence to review the content of any 
     exempted operational file or files in order to make the 
     demonstration required under clause (i), unless the 
     complainant disputes the Office's showing with a sworn 
     written submission based on personal knowledge or otherwise 
     admissible evidence.
       ``(E) In proceedings under subparagraphs (C) and (D), the 
     parties may not obtain discovery pursuant to rules 26 through 
     36 of the Federal Rules of Civil Procedure, except that 
     requests for admissions may be made pursuant to rules 26 and 
     36.
       ``(F) If the court finds under this subsection that the 
     Office of the Director of National Intelligence has 
     improperly withheld requested records because of failure to 
     comply with any provision of this section, the court shall 
     order the Office to search and review the appropriate 
     exempted operational file or files for the requested records 
     and make such records, or portions thereof, available in 
     accordance with the provisions of section 552 of title 5, 
     United States Code, and such order shall be the exclusive 
     remedy for failure to comply with this section.
       ``(G) If at any time following the filing of a complaint 
     pursuant to this paragraph the Office of the Director of 
     National Intelligence agrees to search the appropriate 
     exempted operational file or files for the requested records, 
     the court shall dismiss the claim based upon such 
     complaint.''.
       (b) Clerical Amendment.--The table of contents in the first 
     section of the National Security Act of 1947 is amended by 
     inserting after the item relating to section 705 the 
     following new item:

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

     SEC. 414. REPEAL OF CERTAIN AUTHORITIES RELATING TO THE 
                   OFFICE OF THE NATIONAL COUNTER-INTELLIGENCE 
                   EXECUTIVE.

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

     SEC. 415. INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT 
                   TO ADVISORY COMMITTEES OF THE OFFICE OF THE 
                   DIRECTOR OF NATIONAL INTELLIGENCE.

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

     SEC. 416. MEMBERSHIP OF THE DIRECTOR OF NATIONAL INTELLIGENCE 
                   ON THE TRANSPORTATION SECURITY OVERSIGHT BOARD.

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

     SEC. 417. APPLICABILITY OF THE PRIVACY ACT TO THE DIRECTOR OF 
                   NATIONAL INTELLIGENCE AND THE OFFICE OF THE 
                   DIRECTOR OF NATIONAL INTELLIGENCE.

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

                Subtitle B--Central Intelligence Agency

     SEC. 421. DIRECTOR AND DEPUTY DIRECTOR OF THE CENTRAL 
                   INTELLIGENCE AGENCY.

       (a) Establishment of Position of Deputy Director of Central 
     Intelligence Agency.--Subsection (a) of section 104A of the 
     National Security Act of 1947 (50 U.S.C. 403-4a) is amended--
       (1) by redesignating subsections (b), (c), (d), (e), (f), 
     and (g) as subsections (d), (e), (f), (g), (h), and (i) 
     respectively; and
       (2) by inserting after subsection (a) the following new 
     subsections (b) and (c):
       ``(b) Deputy Director of Central Intelligence Agency.--(1) 
     There is a Deputy Director of the Central Intelligence Agency 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate.
       ``(2) The Deputy Director of the Central Intelligence 
     Agency shall assist the Director of the Central Intelligence 
     Agency in carrying out the duties and responsibilities of the 
     Director.
       ``(3) The Deputy Director of the Central Intelligence 
     Agency shall act for, and exercise the powers of, the 
     Director of the Central Intelligence Agency during the 
     absence or disability of the Director of the Central 
     Intelligence Agency or during a vacancy in the position of 
     Director of the Central Intelligence Agency.
       ``(c) Military Status of Director of the Central 
     Intelligence Agency and Deputy Director of Central 
     Intelligence Agency.--(1) Not more than one of the 
     individuals serving in the positions specified in subsection 
     (a) and (b) may be a commissioned officer of the Armed Forces 
     in active status.
       ``(2) A commissioned officer of the Armed Forces who is 
     serving as the Director or Deputy Director of the Central 
     Intelligence Agency or is engaged in administrative 
     performance of the duties of Director or Deputy Director of 
     the Central Intelligence Agency shall not, while continuing 
     in such service, or in the administrative performance of such 
     duties--
       ``(A) be subject to supervision or control by the Secretary 
     of Defense or by any officer or employee of the Department of 
     Defense; or
       ``(B) exercise, by reason of the officer's status as a 
     commissioned officer, any supervision or control with respect 
     to any of the military or civilian personnel of the 
     Department of Defense except as otherwise authorized by law.
       ``(3) Except as provided in subparagraph (A) or (B) of 
     paragraph (2), the service, or the administrative performance 
     of duties, described in that paragraph by an officer 
     described in that paragraph shall not affect the status, 
     position, rank, or grade of such officer in the Armed Forces, 
     or any emolument, perquisite, right, privilege, or benefit 
     incident to or arising out of such status, position, rank, or 
     grade.
       ``(4) A commissioned officer described in paragraph (2), 
     while serving, or continuing in the administrative 
     performance of duties, as described in that paragraph and 
     while remaining on active duty, shall continue to receive 
     military pay and allowances. Funds from which such pay and 
     allowances are paid shall be reimbursed from funds available 
     to the Director of the Central Intelligence Agency.''.
       (b) Conforming Amendment.--Paragraph (2) of subsection (e) 
     of such section, as redesignated by subsection (a)(1) of this 
     section, is further amended by striking ``subsection (d)'' 
     and inserting ``subsection (f)''.
       (c) Executive Schedule Level III.--Section 5314 of title 5, 
     United States Code, is amended by adding at the end the 
     following new item:
       ``Deputy Director of the Central Intelligence Agency.''.
       (d) Role of DNI in Appointment.--Section 106(b)(2) of the 
     National Security Act of 1947 (50 U.S.C. 403-6(b)(2)) is 
     amended by adding at the end the following new subparagraph:
       ``(J) The Deputy Director of the Central Intelligence 
     Agency.''.
       (e) Effective Date and Applicability.--The amendments made 
     by this section shall take effect on the date of the 
     enactment of this Act and shall apply upon the earlier of--
       (1) the date of the nomination by the President of an 
     individual to serve as Deputy Director of the Central 
     Intelligence Agency, except that the individual 
     administratively performing the duties of the Deputy Director 
     of the Central Intelligence Agency as of the date of the 
     enactment of this Act may continue to perform such duties 
     after such date of nomination and until the individual 
     appointed to the position of Deputy Director of the Central 
     Intelligence Agency, by and with the advice and consent of 
     the Senate, assumes the duties of such position; or
       (2) the date of the cessation of the performance of the 
     duties of Deputy Director of the Central Intelligence Agency 
     by the individual administratively performing such duties as 
     of the date of the enactment of this Act.

[[Page S12553]]

     SEC. 422. INAPPLICABILITY TO DIRECTOR OF THE CENTRAL 
                   INTELLIGENCE AGENCY OF REQUIREMENT FOR ANNUAL 
                   REPORT ON PROGRESS IN AUDITABLE FINANCIAL 
                   STATEMENTS.

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

     SEC. 423. ADDITIONAL FUNCTIONS AND AUTHORITIES FOR PROTECTIVE 
                   PERSONNEL OF THE CENTRAL INTELLIGENCE AGENCY.

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

     SEC. 424. TECHNICAL AMENDMENTS RELATING TO TITLES OF CERTAIN 
                   CENTRAL INTELLIGENCE AGENCY POSITIONS.

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

     SEC. 425. DIRECTOR OF NATIONAL INTELLIGENCE REPORT ON 
                   RETIREMENT BENEFITS FOR FORMER EMPLOYEES OF AIR 
                   AMERICA.

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

              Subtitle C--Defense Intelligence Components

     SEC. 431. ENHANCEMENTS OF NATIONAL SECURITY AGENCY TRAINING 
                   PROGRAM.

       (a) Termination of Employees.--Subsection (d)(1)(C) of 
     section 16 of the National Security Agency Act of 1959 (50 
     U.S.C. 402 note) is amended by striking ``terminated either 
     by'' and all that follows and inserting ``terminated--
       ``(i) by the Agency due to misconduct by the employee;
       ``(ii) by the employee voluntarily; or
       ``(iii) by the Agency for the failure of the employee to 
     maintain such level of academic standing in the educational 
     course of training as the Director of the National Security 
     Agency shall have specified in the agreement of the employee 
     under this subsection; and''.
       (b) Authority To Withhold Disclosure of Affiliation With 
     NSA.--Subsection (e) of such section is amended by striking 
     ``(1) When an employee'' and all that follows through ``(2) 
     Agency efforts'' and inserting ``Agency efforts''.

     SEC. 432. CODIFICATION OF AUTHORITIES OF NATIONAL SECURITY 
                   AGENCY PROTECTIVE PERSONNEL.

       The National Security Agency Act of 1959 (50 U.S.C. 402 
     note) is amended by adding at the end the following new 
     section:
       ``Sec. 21. (a) The Director is authorized to designate 
     personnel of the Agency to perform protective functions for 
     the Director and for any personnel of the Agency designated 
     by the Director.
       ``(b)(1) In the performance of protective functions under 
     this section, personnel of the Agency designated to perform 
     protective functions pursuant to subsection (a) are 
     authorized, when engaged in the performance of such 
     functions, to make arrests without a warrant for--
       ``(A) any offense against the United States committed in 
     the presence of such personnel; or
       ``(B) any felony cognizable under the laws of the United 
     States if such personnel have reasonable grounds to believe 
     that the person to be arrested has committed or is committing 
     such felony.
       ``(2) The authority in paragraph (1) may be exercised only 
     in accordance with guidelines approved by the Director and 
     the Attorney General.
       ``(3) Personnel of the Agency designated to perform 
     protective functions pursuant to subsection (a) shall not 
     exercise any authority for the service of civil process or 
     the investigation of criminal offenses.
       ``(c) Nothing in this section shall be construed to impair 
     or otherwise affect any authority under any other provision 
     of law relating to the performance of protective 
     functions.''.

     SEC. 433. INSPECTOR GENERAL MATTERS.

       (a) Coverage Under Inspector General Act of 1978.--
     Subsection (a)(2) of section 8G of the Inspector General Act 
     of 1978 (5 U.S.C. App. 8G) is amended--
       (1) by inserting ``the Defense Intelligence Agency,'' after 
     ``the Corporation for Public Broadcasting,'';
       (2) by inserting ``the National Geospatial-Intelligence 
     Agency,'' after ``the National Endowment for the Arts,''; and
       (3) by inserting ``the National Reconnaissance Office, the 
     National Security Agency,'' after ``the National Labor 
     Relations Board,''.
       (b) Certain Designations Under Inspector General Act of 
     1978.--Subsection (a) of section 8H of the Inspector General 
     Act of 1978 (5 U.S.C. App. 8H) is amended by adding at the 
     end the following new paragraph:
       ``(3) The Inspectors General of the Defense Intelligence 
     Agency, the National Geospatial-Intelligence Agency, the 
     National Reconnaissance Office, and the National Security 
     Agency shall be designees of the Inspector General of the 
     Department of Defense for purposes of this section.''.
       (c) Power of Heads of Elements Over Investigations.--
     Subsection (d) of section 8G of that Act--
       (1) by inserting ``(1)'' after ``(d)'';
       (2) in the second sentence of paragraph (1), as designated 
     by paragraph (1) of this subsection, by striking ``The head'' 
     and inserting ``Except as provided in paragraph (2), the 
     head''; and
       (3) by adding at the end the following new paragraph:
       ``(2)(A) The Director of National Intelligence or the 
     Secretary of Defense may prohibit the Inspector General of an 
     element of the intelligence community specified in 
     subparagraph (D) from initiating, carrying out, or completing 
     any audit or investigation if

[[Page S12554]]

     the Director or the Secretary, as the case may be, determines 
     that the prohibition is necessary to protect vital national 
     security interests of the United States.
       ``(B) If the Director or the Secretary exercises the 
     authority under subparagraph (A), the Director or the 
     Secretary, as the case may be, shall submit to the committees 
     of Congress specified in subparagraph (E) an appropriately 
     classified statement of the reasons for the exercise of the 
     authority not later than seven days after the exercise of the 
     authority.
       ``(C) At the same time the Director or the Secretary 
     submits under subparagraph (B) a statement on the exercise of 
     the authority in subparagraph (A) to the committees of 
     Congress specified in subparagraph (E), the Director or the 
     Secretary, as the case may be, shall notify the Inspector 
     General of such element of the submittal of such statement 
     and, to the extent consistent with the protection of 
     intelligence sources and methods, provide the Inspector 
     General with a copy of such statement. The Inspector General 
     may submit to such committees of Congress any comments on a 
     notice or statement received by the Inspector General under 
     this subparagraph that the Inspector General considers 
     appropriate.
       ``(D) The elements of the intelligence community specified 
     in this subparagraph are as follows:
       ``(i) The Defense Intelligence Agency.
       ``(ii) The National Geospatial-Intelligence Agency.
       ``(iii) The National Reconnaissance Office.
       ``(iv) The National Security Agency.
       ``(E) The committees of Congress specified in this 
     subparagraph are--
       ``(i) the Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate; and
       ``(ii) the Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.''.

     SEC. 434. CONFIRMATION OF APPOINTMENT OF HEADS OF CERTAIN 
                   COMPONENTS OF THE INTELLIGENCE COMMUNITY.

       (a) Director of National Security Agency.--The National 
     Security Agency Act of 1959 (50 U.S.C. 402 note) is amended 
     by inserting after the first section the following new 
     section:
       ``Sec. 2. (a) There is a Director of the National Security 
     Agency.
       ``(b) The Director of the National Security Agency shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       ``(c) The Director of the National Security Agency shall be 
     the head of the National Security Agency and shall discharge 
     such functions and duties as are provided by this Act or 
     otherwise by law.''.
       (b) Director of National Geospatial-Intelligence Agency.--
     Section 441(b) of title 10, United States Code, is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The Director of the National Geospatial Intelligence 
     Agency shall be appointed by the President, by and with the 
     advice and consent of the Senate.''.
       (c) Director of National Reconnaissance Office.--The 
     Director of the National Reconnaissance Office shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       (d) Positions of Importance and Responsibility.--
       (1) Designation of positions.--The President may designate 
     any of the positions referred to in paragraph (2) as 
     positions of importance and responsibility under section 601 
     of title 10, United States Code.
       (2) Covered positions.--The positions referred to in this 
     paragraph are as follows:
       (A) The Director of the National Security Agency.
       (B) The Director of the National Geospatial-Intelligence 
     Agency.
       (C) The Director of the National Reconnaissance Office.
       (e) Effective Date and Applicability.--
       (1) In general.--The amendments made by subsections (a) and 
     (b), and subsection (c), shall take effect on the date of the 
     enactment of this Act and shall apply upon the earlier of--
       (A) the date of the nomination by the President of an 
     individual to serve in the position concerned, except that 
     the individual serving in such position as of the date of the 
     enactment of this Act may continue to perform such duties 
     after such date of nomination and until the individual 
     appointed to such position, by and with the advice and 
     consent of the Senate, assumes the duties of such position; 
     or
       (B) the date of the cessation of the performance of the 
     duties of such position by the individual performing such 
     duties as of the date of the enactment of this Act.
       (2) Positions of importance and responsibility.--Subsection 
     (d) shall take effect on the date of the enactment of this 
     Act.

     SEC. 435. CLARIFICATION OF NATIONAL SECURITY MISSIONS OF 
                   NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY FOR 
                   ANALYSIS AND DISSEMINATION OF CERTAIN 
                   INTELLIGENCE INFORMATION.

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

     SEC. 436. SECURITY CLEARANCES IN THE NATIONAL GEOSPATIAL-
                   INTELLIGENCE AGENCY.

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

                       Subtitle D--Other Elements

     SEC. 441. CLARIFICATION OF INCLUSION OF COAST GUARD AND DRUG 
                   ENFORCEMENT ADMINISTRATION AS ELEMENTS OF THE 
                   INTELLIGENCE COMMUNITY.

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

     SEC. 442. CLARIFYING AMENDMENTS RELATING TO SECTION 105 OF 
                   THE INTELLIGENCE AUTHORIZATION ACT FOR FISCAL 
                   YEAR 2004.

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

                         TITLE V--OTHER MATTERS

     SEC. 501. TECHNICAL AMENDMENTS TO THE NATIONAL SECURITY ACT 
                   OF 1947.

       The National Security Act of 1947 (50 U.S.C. 401 et seq.) 
     is amended as follows:
       (1) In section 102A (50 U.S.C. 403-1)--
       (A) in subsection (c)(7)(A), by striking ``section'' and 
     inserting ``subsection'';
       (B) in subsection (d)--
       (i) in paragraph (3), by striking ``subparagraph (A)'' in 
     the matter preceding subparagraph (A) and inserting 
     ``paragraph (1)(A)'';
       (ii) in paragraph (5)(A), by striking ``or personnel'' in 
     the matter preceding clause (i); and
       (iii) in paragraph (5)(B), by striking ``or agency 
     involved'' in the second sentence and inserting ``involved or 
     the Director of the Central Intelligence Agency (in the case 
     of the Central Intelligence Agency)'';
       (C) in subsection (l)(2)(B), by striking ``section'' and 
     inserting ``paragraph''; and
       (D) in subsection (n), by inserting ``and Other'' after 
     ``Acquisition''.
       (2) In section 119(c)(2)(B) (50 U.S.C. 404o(c)(2)(B)), by 
     striking ``subsection (h)'' and inserting ``subsection (i)''.
       (3) In section 705(e)(2)(D)(i) (50 U.S.C. 
     432c(e)(2)(D)(i)), by striking ``responsible'' and inserting 
     ``responsive''.

     SEC. 502. TECHNICAL CLARIFICATION OF CERTAIN REFERENCES TO 
                   JOINT MILITARY INTELLIGENCE PROGRAM AND 
                   TACTICAL INTELLIGENCE AND RELATED ACTIVITIES.

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

     SEC. 503. TECHNICAL AMENDMENTS TO THE INTELLIGENCE REFORM AND 
                   TERRORISM PREVENTION ACT OF 2004.

       (a) Amendments to National Security Intelligence Reform Act 
     of 2004.--The National Security Intelligence Reform Act of 
     2004 (title I of Public Law 108-458) is further amended as 
     follows:

[[Page S12555]]

       (1) In section 1016(e)(10)(B) (6 U.S.C. 458(e)(10)(B)), by 
     striking ``Attorney General'' the second place it appears and 
     inserting ``Department of Justice''.
       (2) In section 1061 (5 U.S.C. 601 note)--
       (A) in subsection (d)(4)(A), by striking ``National 
     Intelligence Director'' and inserting ``Director of National 
     Intelligence''; and
       (B) in subsection (h), by striking ``National Intelligence 
     Director'' and inserting ``Director of National 
     Intelligence''.
       (3) In section 1071(e), by striking ``(1)''.
       (4) In section 1072(b), by inserting ``Agency'' after 
     ``Intelligence''.
       (b) Other Amendments to Intelligence Reform and Terrorism 
     Prevention Act of 2004.--The Intelligence Reform and 
     Terrorism Prevention Act of 2004 (Public Law 108-458) is 
     amended as follows:
       (1) In section 2001 (28 U.S.C. 532 note)--
       (A) in subsection (c)(1), by inserting ``of'' before ``an 
     institutional culture'';
       (B) in subsection (e)(2), by striking ``the National 
     Intelligence Director in a manner consistent with section 
     112(e)'' and inserting ``the Director of National 
     Intelligence in a manner consistent with applicable law''; 
     and
       (C) in subsection (f), by striking ``shall,'' in the matter 
     preceding paragraph (1) and inserting ``shall''.
       (2) In section 2006 (28 U.S.C. 509 note)--
       (A) in paragraph (2), by striking ``the Federal'' and 
     inserting ``Federal''; and
       (B) in paragraph (3), by striking ``the specific'' and 
     inserting ``specific''.

     SEC. 504. TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES 
                   CODE, ARISING FROM ENACTMENT OF THE 
                   INTELLIGENCE REFORM AND TERRORISM PREVENTION 
                   ACT OF 2004.

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

     SEC. 505. TECHNICAL AMENDMENT TO THE CENTRAL INTELLIGENCE 
                   AGENCY ACT OF 1949.

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

     SEC. 506. TECHNICAL AMENDMENTS RELATING TO THE MULTIYEAR 
                   NATIONAL INTELLIGENCE PROGRAM.

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

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

     SEC. 507. TECHNICAL AMENDMENTS TO THE EXECUTIVE SCHEDULE.

       (a) Executive Schedule Level II.--Section 5313 of title 5, 
     United States Code, is amended by striking the item relating 
     to the Director of Central Intelligence and inserting the 
     following new item:
       ``Director of the Central Intelligence Agency.''.
       (b) Executive Schedule Level III.--Section 5314 of title 5, 
     United States Code, is amended by striking the item relating 
     to the Deputy Directors of Central Intelligence.
       (c) Executive Schedule Level IV.--Section 5315 of title 5, 
     United States Code, is amended by striking the item relating 
     to the General Counsel of the Office of the National 
     Intelligence Director and inserting the following new item:
       ``General Counsel of the Office of the Director of National 
     Intelligence.''.

     SEC. 508. TECHNICAL AMENDMENTS RELATING TO REDESIGNATION OF 
                   THE NATIONAL IMAGERY AND MAPPING AGENCY AS THE 
                   NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY.

       (a) Title 5, United States Code.--(1) Title 5, United 
     States Code, is amended by striking ``National Imagery and 
     Mapping Agency'' each place it appears in a provision as 
     follows and inserting ``National Geospatial-Intelligence 
     Agency'':
       (A) Section 2302(a)(2)(C)(ii).
       (B) Section 3132(a)(1)(B).
       (C) Section 4301(1) (in clause (ii)).
       (D) Section 4701(a)(1)(B).
       (E) Section 5102(a)(1) (in clause (x)).
       (F) Section 5342(a)(1) (in clause (K)).
       (G) Section 6339(a)(1)(E).
       (H) Section 7323(b)(2)(B)(i)((XIII).
       (2) Section 6339(a)(2)(E) of such title is amended by 
     striking ``National Imagery and Mapping Agency, the Director 
     of the National Imagery and Mapping Agency'' and inserting 
     ``National Geospatial-Intelligence Agency, the Director of 
     the National Geospatial-Intelligence Agency''.
       (b) Title 44, United States Code.--(1)(A) Section 1336 of 
     title 44, United States Code, is amended by striking 
     ``National Imagery and Mapping Agency'' both places it 
     appears and inserting ``National Geospatial-Intelligence 
     Agency''.
       (B) The heading of such section is amended to read as 
     follows:

     ``Sec. 1336. National Geospatial-Intelligence Agency: special 
       publications''.

       (2) The table of sections at the beginning of chapter 13 of 
     such title is amended by striking the item relating to 
     section 1336 and inserting the following new item:

``1336. National Geospatial-Intelligence Agency: special 
              publications.''.

       (c) Homeland Security Act of 2002.--Section 201(f)(2)(E) of 
     the Homeland Security Act of 2002 (6 U.S.C. 121(f)(2)(E)) is 
     amended by striking ``National Imagery and Mapping Agency'' 
     and inserting ``National Geospatial-Intelligence Agency''.
       (d) Inspector General Act of 1978.--Section 8H of the 
     Inspector General Act of 1978 (5 U.S.C. App.) is amended by 
     striking ``National Imagery and Mapping Agency'' each place 
     it appears and inserting ``National Geospatial-Intelligence 
     Agency''.
       (e) Ethics in Government Act of 1978.--Section 105(a)(1) of 
     the Ethics in Government Act of 1978 (5 U.S.C. App.) is 
     amended by striking ``National Imagery and Mapping Agency'' 
     and inserting ``National Geospatial-Intelligence Agency''.
       (f) Other Acts.--
       (1) Section 7(b)(2)(A)(i) of the Employee Polygraph 
     Protection Act of 1988 (29 U.S.C. 2006(b)(2)(A)(i)) is 
     amended by striking ``National Imagery and Mapping Agency'' 
     and inserting ``National Geospatial-Intelligence Agency''.
       (2) Section 207(a)(2)(B) of the Legislative Branch 
     Appropriations Act, 1993 (44 U.S.C. 501 note) is amended by 
     striking ``National Imagery and Mapping Agency'' and 
     inserting ``National Geospatial-Intelligence Agency''.

     SEC. 509. OTHER TECHNICAL AMENDMENTS RELATING TO 
                   RESPONSIBILITY OF THE DIRECTOR OF NATIONAL 
                   INTELLIGENCE AS HEAD OF THE INTELLIGENCE 
                   COMMUNITY.

       (a) In General.--
       (1) The Public Interest Declassification Act of 2000 (50 
     U.S.C. 435 note) is amended by striking ``Director of Central 
     Intelligence'' each place it appears in a provision as 
     follows and inserting ``Director of National Intelligence'':
       (A) Section 704(c)(2)(B).
       (B) Section 706(b)(2).
       (C) Section 706(e)(2)(B).
       (2) Section 705(c) of such Act is amended by striking ``the 
     Director of Central Intelligence, as head of the intelligence 
     community,'' and inserting ``the Director of National 
     Intelligence''.
       (b) Conforming Amendment.--The heading of section 705(c) of 
     such Act is amended by striking ``Director of Central 
     Intelligence'' and inserting ``Director of National 
     Intelligence''.
                                 ______