69-006
110TH CONGRESS
REPORT
HOUSE OF REPRESENTATIVES
2d Session
110-665
--INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2009
MAY 21, 2008- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed
Mr. REYES, from the Permanent Select Committee on Intelligence, submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5959]
[Including cost estimate of the Congressional Budget Office]
 The Permanent Select Committee on Intelligence, to whom
was referred the bill (H.R. 5959) to authorize appropriations for
fiscal year 2009 for intelligence and intelligence-related activities
of the United States Government, the Community Management Account, and
the Central Intelligence Agency Retirement and Disability System, and
for other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the bill as amended do
pass.

CONTENTS
Page
H.R. 5959, as reported to House
1
Purpose
30
Overall Perspective on the Classified Annex and Committee Intent
31
Scope of Committee Review
31
Committee Statement and Views
31
Overview
31
Committee Review
32
The Legislation
32
Areas of Special Interest
34
Comprehensive National Cybersecurity Initiative
34
Overreliance on Supplemental Funding
35
Human Intelligence Capability Throughout the World
35
Issues Regarding Committee Notification of Syria's Nuclear Program
36
Amendments to the National Security Act of 1947
36
Diversity in the Intelligence Community
37
Committee Investigation into the Destruction of Interrogation Videotapes by the Central Intelligence Agency
37
Creation of a National Applications Office in the Department of Homeland Security
38
Major Systems Acquisitions
38
Acquisition Program Performance Notification
39
Advanced Research and Development
39
Future Course for Overhead Architecture
40
Integration of the Counterintelligence Field Activity into the Defense Intelligence Agency
40
FBI's Use of National Security Letters
41
Global Climate Change
42
Committee Consideration and Roll Call Votes
42
Section-by-Section Analysis and Explanation of the Amendment
46
Title I--Intelligence
46
Section 101--Authorization of appropriations
46
Section 102--Classified Schedule of Authorizations
46
Section 103--Personnel ceiling adjustments
46
Section 104--Intelligence Community Management Account
46
Section 105--Limitation on the use of covert action funds
47
Section 106--Prohibition on use of funds to implement `Five and Out' program of the Federal Bureau of Investigation
47
Title II--Central Intelligence Agency Retirement and Disability System
47
 Section 201--Authorization of appropriations
47
Section 202--Technical modification to mandatory retirement provision of the Central Intelligence Agency Retirement Act
47
Title III--General Provisions
47
Section 301--Increase in employee compensation and benefits authorized by law
47
Section 302--Enhanced flexibility in non-reimbursable details to elements of the Intelligence Community
47
Section 303--Multi-level security clearances
48
Section 304--Delegation of authority for travel on common carriers for intelligence collection personnel
48
Section 305--Annual personnel level assessments for the Intelligence Community
48
Section 306--Comprehensive report on intelligence community contractors
49
Section 307--Report on proposed pay-for-performance intelligence community personnel management system
50
Section 308--Report on plan to increase diversity within the Intelligence Community
50
Section 309--Report on security clearance determinations
51
Section 311--Restriction on conduct of intelligence activities
51
Section 312--Clarification of definition of Intelligence Community under the National Security Act of 1947
51
Section 313--Modification of availability of funds for different intelligence activities
51
Section 314--Protection of certain national security information
52
Section 315--Extension of authority to delete information about receipt and disposition of foreign gifts and decorations
52
Section 316--Report on
compliance with the Detainee Treatment Act of 2005 and related
provisions of the Military Commissions Act of 2006
53
Section 317--Incorporation of reporting requirements
54
Section 318--Repeal of certain reporting requirements
54
Section 319--Enhancement of critical skills training program
54
Section 320--Comprehensive national cybersecurity initiative advisory panel
54
Title IV--Matters Relating To Elements of the Intelligence Community
54
Section 401--Clarification of limitation on co-location of the Office of the Director of National Intelligence
54
Section 402--Membership of the Director of National Intelligence on the Transportation Security Oversight Board
55
Section 403--Additional duties of the Director of Science and Technology
55
Section 404--Leadership and location of certain offices and officials
55
Section 405--Plan to implement recommendations of the data center energy efficiency reports
55
Section 406--Semiannual reports on the nuclear programs of Iran, Syria, and North Korea
56
Section 407--Title of Chief Information Officer of the Intelligence Community
56
Section 408--Inspector General of the Intelligence Community
56
Section 409--Annual report on foreign language proficiency in the Intelligence Community
58
Section 410--Repeal of certain authorities relating to the office of the National Counterintelligence Executive
58
Section 411--National Intelligence Estimate on weapons of mass destruction in Syria
58
Section 412--Annual report on intelligence resources dedicated to Iraq and Afghanistan
59
Section 413--Ombudsman for intelligence community security clearances
59
Section 414--Security clearance reciprocity
59
Section 415--Report on international traffic in arms regulations
59
Section 416--Report on nuclear trafficking
59
Section 417--Study on revoking pensions of persons who commit unauthorized disclosures of classified information
60
Section 421--Review of covert action programs by Inspector General of the Central Intelligence Agency
60
Section 422--Inapplicability to
the Director of the Central Intelligence Agency of requirement for
annual report on progress in auditable financial statements
60
Section 423--Technical amendments relating to titles of certain CIA positions
61
Section 424--Clarifying amendments relating to Section 105 of the Intelligence Authorization Act for Fiscal Year 2004
61
Section 425--Prohibition on the
use of private contractors for interrogations involving person in the
custody or control of the Central Intelligence Agency
61
Section 431--Integration of the Counterintelligence Field Activity into the Defense Intelligence Agency
61
Section 441--Clarification of
inclusion of the Coast Guard and Drug Enforcement Administration as
elements of the Intelligence Community
62
Section 442--Report on transformation of the intelligence capabilities of the Federal Bureau of Investigation
62
Title V--Other Matters
63
Section 501--Extension of
National Commission for Review of Research and Development Programs of
the United States Intelligence Community
63
Section 502--Amendments to the National Security Act of 1947
63
Section 503--Report on financial intelligence on terrorist assets
63
Section 504--Notice of intelligence regarding North Korea and China
63
Section 505--Sense of Congress regarding use of intelligence resources
64
Section 511--Technical amendments to the Central Intelligence Agency Act of 1949
64
Section 512--Technical amendments to the multi-year National Intelligence Program
64
Section 513--Technical
clarifications of certain references to Joint Military Intelligence
Program and Tactical Intelligence and Related Activities
64
Section 514--Technical Amendments to the National Security Act of 1947
64
Section 515--Technical amendments to the Intelligence Reform and Terrorism Prevention Act of 2004
64
Section 516--Technical amendments to the Executive Schedule
64
Section 517--Technical amendments relating to the National Geospatial-Intelligence Agency
65
Correspondence with Other Committees Regarding Particular Provisions
65
 Letter from Chairman Berman to Chairman Reyes
65
 Letter from Chairman Reyes to Chairman Berman
65
 Letter from Chairman Skelton to Chairman Reyes
66
 Letter from Chairman Reyes to Chairman Skelton
67
 Letter from Chairman Thompson to Chairman Reyes
67
 Letter from Chairman Reyes to Chairman Thompson
68
 Letter from Chairman Conyers to Chairman Reyes
68
 Letter from Chairman Reyes to Chairman Conyers
69
 Letter from Chairman Waxman to Chairman Reyes
69
 Letter from Chairman Reyes to Chairman Waxman
70
Correspondence with Congressional Budget Office
71
 Letter from Chairman Reyes to Mr. Peter Orszag, Director
71
 Letter from Mr. Orszag to Chairman Reyes
71
 Congressional Budget Office Estimate
71
Changes to Existing Law
73
Minority Views
114

 The amendment is 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 2009'.
 (b) Table of Contents- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS
Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Limitation on the use of covert action funds.
Sec. 106. Prohibition on use of funds to implement `5 and out' program of the Federal Bureau of Investigation.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
Sec. 201. Authorization of appropriations.
Sec. 202. Technical modification to mandatory retirement provision of the Central Intelligence Agency Retirement Act.
TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS
Subtitle A--Personnel Matters
Sec. 301. Increase in employee compensation and benefits authorized by law.
Sec. 302. Enhanced flexibility in nonreimbursable details to elements of the intelligence community.
Sec. 303. Multi-level security clearances.
Sec. 304. Delegation of authority for travel on common carriers for intelligence collection personnel.
Sec. 305. Annual personnel level assessments for the intelligence community.
Sec. 306. Comprehensive report on intelligence community contractors.
Sec. 307. Report on proposed pay for performance intelligence community personnel management system.
Sec. 308. Report on plans to increase diversity within the intelligence community.
Sec. 309. Report on security clearance determinations.
Subtitle B--Other Matters
Sec. 311. Restriction on conduct of intelligence activities.
Sec. 312. Clarification of definition of intelligence community under the National Security Act of 1947.
Sec. 313. Modification of availability of funds for different intelligence activities.
Sec. 314. Protection of certain national security information.
Sec. 315. Extension of authority to delete information about receipt and disposition of foreign gifts and decorations.
Sec. 316. Report on compliance with the Detainee Treatment
Act of 2005 and related provisions of the Military Commissions Act of
2006.
Sec. 317. Incorporation of reporting requirements.
Sec. 318. Repeal of certain reporting requirements.
Sec. 319. Enhancement of critical skills training program.
Sec. 320. Comprehensive national cybersecurity initiative advisory panel.
TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY
Subtitle A--Office of the Director of National Intelligence
Sec. 401. Clarification of limitation on colocation of the Office of the Director of National Intelligence.
Sec. 402. Membership of the Director of National Intelligence on the Transportation Security Oversight Board.
Sec. 403. Additional duties of the Director of Science and Technology.
Sec. 404. Leadership and location of certain offices and officials.
Sec. 405. Plan to implement recommendations of the data center energy efficiency reports.
Sec. 406. Semiannual reports on nuclear programs of Iran, Syria, and North Korea.
Sec. 407. Title of Chief Information Officer of the Intelligence Community.
Sec. 408. Inspector General of the Intelligence Community.
Sec. 409. Annual report on foreign language proficiency in the intelligence community.
Sec. 410. Repeal of certain authorities relating to the Office of the National Counterintelligence Executive.
Sec. 411. National intelligence estimate on weapons of mass destruction in Syria.
Sec. 412. Report on intelligence resources dedicated to Iraq and Afghanistan.
Sec. 413. Ombudsman for intelligence community security clearances.
Sec. 414. Security clearance reciprocity.
Sec. 415. Report on international traffic in arms regulations.
Sec. 416. Report on nuclear trafficking.
Sec. 417. Study on revoking pensions of persons who commit unauthorized disclosures of classified information.
Subtitle B--Central Intelligence Agency
Sec. 421. Review of covert action programs by Inspector General 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. Technical amendments relating to titles of certain Central Intelligence Agency positions.
Sec. 424. Clarifying amendments relating to section 105 of the Intelligence Authorization Act for Fiscal Year 2004.
Sec. 425. Prohibition on the use of private contractors
for interrogations involving persons in the custody or control of the
Central Intelligence Agency.
Subtitle C--Defense Intelligence Components
Sec. 431. Integration of the Counterintelligence Field Activity into the Defense 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. Report on transformation of the intelligence capabilities of the Federal Bureau of Investigation.
TITLE V--OTHER MATTERS
Subtitle A--General Intelligence Matters
Sec. 501. Extension of National Commission for the Review
of the Research and Development Programs of the United States
Intelligence Community.
Sec. 502. Amendments to the National Security Act of 1947.
Sec. 503. Report on financial intelligence on terrorist assets.
Sec. 504. Notice of intelligence regarding North Korea and China.
Sec. 505. Sense of Congress regarding use of intelligence resources.
Subtitle B--Technical Amendments
Sec. 511. Technical amendment to the Central Intelligence Agency Act of 1949.
Sec. 512. Technical amendments relating to the multiyear National Intelligence Program.
Sec. 513. Technical clarification of certain references to
Joint Military Intelligence Program and Tactical Intelligence and
Related Activities.
Sec. 514. Technical amendments to the National Security Act of 1947.
Sec. 515. Technical amendments to the Intelligence Reform and Terrorism Prevention Act of 2004.
Sec. 516. Technical amendments to the Executive Schedule.
Sec. 517. Technical amendments relating to the National Geospatial-Intelligence Agency.

SEC. 2. DEFINITIONS.
 In this Act:
 (1) CONGRESSIONAL INTELLIGENCE COMMITTEES- The term `congressional intelligence committees' means--
 (A) the Select Committee on Intelligence of the Senate; and
 (B) the Permanent Select Committee on Intelligence of the House of Representatives.
 (2) INTELLIGENCE COMMUNITY- The term `intelligence
community' has the meaning given that term in section 3(4) of the
National Security Act of 1947 (50 U.S.C. 401a(4)).
TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
 Funds are hereby authorized to be appropriated for fiscal
year 2009 for the conduct of the intelligence and intelligence-related
activities of the following elements of the United States Government:
 (1) The Office of the Director of National Intelligence.
 (2) The Central Intelligence Agency.
 (3) The Department of Defense.
 (4) The Defense Intelligence Agency.
 (5) The National Security Agency.
 (6) The Department of the Army, the Department of the Navy, and the Department of the Air Force.
 (7) The Coast Guard.
 (8) The Department of State.
 (9) The Department of the Treasury.
 (10) The Department of Energy.
 (11) The Department of Justice.
 (12) The Federal Bureau of Investigation.
 (13) The Drug Enforcement Administration.
 (14) The National Reconnaissance Office.
 (15) The National Geospatial-Intelligence Agency.
 (16) The Department of Homeland Security.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
 (a) Specifications of Amounts and Personnel Levels- The
amounts authorized to be appropriated under section 101 and, subject to
section 103, the authorized personnel ceilings as of September 30,
2009, for the conduct of the intelligence activities of the elements
listed in paragraphs (1) through (16) of section 101, are those
specified in the classified Schedule of Authorizations prepared to
accompany the conference report on the bill H.R. 5959 of the One
Hundred Tenth Congress.
 (b) Availability of Classified Schedule of Authorizations-
The classified Schedule of Authorizations referred to in subsection (a)
shall be made available to the Committee on Appropriations of the
Senate, the Committee on Appropriations of the House of
Representatives, and to the President. The President shall provide for
suitable distribution of the Schedule, or of appropriate portions of
the Schedule, within the executive branch.
 (c) Earmarks-
 (1) IN GENERAL- Nothing in the classified Schedule of
Authorizations, the joint explanatory statement to accompany the
conference report on the bill H.R. 5959 of the One Hundred Tenth
Congress, or the classified annex to this Act, shall be construed to
authorize or require the expenditure of funds for an earmarked purpose.
 (2) EARMARKED PURPOSE DEFINED- In this subsection, the
term `earmarked purpose' means a provision or report language included
primarily at the request of a Member, Delegate, Resident Commissioner
of the House of Representatives or a Senator providing, authorizing, or
recommending a specific amount of discretionary budget authority,
credit authority, or other spending authority for a contract, loan,
loan guarantee, grant, loan authority, or other expenditure with or to
an entity, or targeted to a specific State, locality, or Congressional
district, other than through a statutory or administrative
formula-driven or competitive award process.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
 (a) Authority for Increases- With the approval of the
Director of the Office of Management and Budget, the Director of
National Intelligence may authorize employment of civilian personnel in
excess of the number authorized for fiscal year 2009 by the classified
Schedule of Authorizations referred to in section 102(a) if the
Director of National Intelligence determines that such action is
necessary to the performance of important intelligence functions,
except that the number of personnel employed in excess of the number
authorized under such section may not, for any element of the
intelligence community, exceed 3 percent of the number of civilian
personnel authorized under such Schedule for such element.
 (b) Notice to Congressional Intelligence Committees- The
Director of National Intelligence shall notify the congressional
intelligence committees in writing at least 15 days prior to each
exercise of an authority described in subsection (a).
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 2009 the sum of
$648,842,000. 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,
2010.
 (b) Authorized Personnel Levels- The elements within the
Intelligence Community Management Account of the Director of National
Intelligence are authorized 772 full-time or full-time equivalent
personnel as of September 30, 2009. Personnel serving in such elements
may be permanent employees of the Office of the Director of National
Intelligence or personnel detailed from other elements of the United
States Government.
 (c) Construction of Authorities- The authorities available
to the Director of National Intelligence under section 103 are also
available to the Director for the adjustment of personnel levels within
the Intelligence Community Management Account.
 (d) Classified Authorizations-
 (1) AUTHORIZATION OF APPROPRIATIONS- In addition to
amounts authorized to be appropriated for the Intelligence Community
Management Account by subsection (a), there are authorized to be
appropriated for the Community Management Account for fiscal year 2009
such additional amounts as are specified in the classified Schedule of
Authorizations referred to in section 102(a). Such additional amounts
for advanced research and development shall remain available until
September 30, 2010.
 (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, 2009, there are
authorized such additional personnel for the Community Management
Account as of that date as are specified in the classified Schedule of
Authorizations referred to in section 102(a).
SEC. 105. LIMITATION ON THE USE OF COVERT ACTION FUNDS.
 (a) In General- Not more than 25 percent of the funds
authorized to be appropriated by this Act for the National Intelligence
Program for covert actions may be obligated or expended until the date
on which each member of the congressional intelligence committees has
been fully and currently briefed on all authorizations for covert
actions in effect on April 24, 2008.
 (b) Covert Action Defined- In this section, the term
`covert action' has the meaning given the term in section 503(g) of the
National Security Act of 1947 (50 U.S.C. 413b(e)).
SEC. 106. PROHIBITION ON USE OF FUNDS TO IMPLEMENT `5 AND OUT' PROGRAM OF THE FEDERAL BUREAU OF INVESTIGATION.
 None of the funds authorized to be appropriated in this Act
may be used to implement the program of the Federal Bureau of
Investigation requiring the mandatory reassignment of a supervisor of
the Bureau after such supervisor serves in a management position for 5
years (commonly known as the `5 and out' program).
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
 There is authorized to be appropriated for the Central
Intelligence Agency Retirement and Disability Fund for fiscal year 2009
the sum of $279,200,000.
SEC. 202. TECHNICAL MODIFICATION TO MANDATORY RETIREMENT PROVISION OF THE CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT.
 Subparagraph (A) of section 235(b)(1) of the Central
Intelligence Agency Retirement Act (50 U.S.C. 2055(b)(1)) is amended by
striking `receiving compensation under the Senior Intelligence Service
pay schedule at the rate' and inserting `who is at the Senior
Intelligence Service rank'.
TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS
Subtitle A--Personnel Matters
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY LAW.
 Appropriations authorized by this Act for salary, pay,
retirement, and other benefits for Federal employees may be increased
by such additional or supplemental amounts as may be necessary for
increases in such compensation or benefits authorized by law.
SEC. 302. ENHANCED FLEXIBILITY IN NONREIMBURSABLE DETAILS TO ELEMENTS OF THE INTELLIGENCE COMMUNITY.
 Except as provided in section 113 of the National Security
Act of 1947 (50 U.S.C. 404h) and section 904(g)(2) of the
Counterintelligence Enhancement Act of 2002 (title IX of Public Law
107-306; 50 U.S.C. 402c(g)(2)) and notwithstanding any other provision
of law, in any fiscal year after fiscal year 2008 an officer or
employee of the United States or member of the Armed Forces may be
detailed to the staff of an element of the intelligence community
funded through the Community Management Account from another element of
the United States Government on a reimbursable or nonreimbursable
basis, as jointly agreed to by the Director of National Intelligence
and the head of the detailing element (or the designees of such
officials), for a period not to exceed 2 years.
SEC. 303. MULTI-LEVEL SECURITY CLEARANCES.
 (a) In General- Section 102A of the National Security Act
of 1947 (50 U.S.C. 403-1) is amended by adding at the end the following
new subsection:
 `(s) Multi-Level Security Clearances- The Director of
National Intelligence shall be responsible for ensuring that the
elements of the intelligence community adopt a multi-level security
clearance approach in order to enable the intelligence community to
make more effective and efficient use of persons proficient in foreign
languages or with cultural, linguistic, or other subject matter
expertise that is critical to national security.'.
 (b) Implementation- The Director of National Intelligence
shall issue guidelines to the intelligence community on the
implementation of subsection (s) of section 102A of the National
Security Act of 1947, as added by subsection (a), not later than 90
days after the date of the enactment of this Act.
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), as designated by paragraph (1) of
this subsection, by striking `may only delegate' and all that follows
and inserting `may delegate the authority in subsection (a) to the head
of any other element of the intelligence community.'; and
 (3) by adding at the end the following new paragraph:
 `(2) The head of an element of the intelligence community
to whom the authority in subsection (a) is delegated pursuant to
paragraph (1) may further delegate such authority to such senior
officials of such element as are specified in guidelines prescribed by
the Director of National Intelligence for purposes of this paragraph.'.
 (b) Submission of Guidelines to Congress- Not later than 6
months after the date of the enactment of this Act, the Director of
National Intelligence shall prescribe and submit to the congressional
intelligence committees the guidelines referred to in paragraph (2) of
section 116(b) of the National Security Act of 1947, as added by
subsection (a).
SEC. 305. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE INTELLIGENCE COMMUNITY.
 (a) In General- Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.) is amended by inserting after section 506A
the following new section:
`ANNUAL PERSONNEL LEVEL ASSESSMENT FOR THE INTELLIGENCE COMMUNITY
 `Sec. 506B. (a) Requirement To Provide- The Director of
National Intelligence shall, in consultation with the head of the
element of the intelligence community concerned, prepare an annual
personnel level assessment for such element of the intelligence
community that assesses the personnel levels for each such element for
the fiscal year following the fiscal year in which the assessment is
submitted.
 `(b) Schedule- Each assessment required by subsection (a)
shall be submitted to the congressional intelligence committees each
year along with the budget submitted by the President under section
1105 of title 31, United States Code.
 `(c) Contents- Each assessment required by subsection (a)
submitted during a fiscal year shall contain, at a minimum, the
following information for the element of the intelligence community
concerned:
 `(1) The budget submission for personnel costs for the upcoming fiscal year.
 `(2) The dollar and percentage increase or decrease of
such costs as compared to the personnel costs of the current fiscal
year.
 `(3) The dollar and percentage increase or decrease of
such costs as compared to the personnel costs during the prior 5 fiscal
years.
 `(4) The number of personnel positions requested for the upcoming fiscal year.
 `(5) The numerical and percentage increase or decrease
of such number as compared to the number of personnel positions of the
current fiscal year.
 `(6) The numerical and percentage increase or decrease
of such number as compared to the number of personnel positions during
the prior 5 fiscal years.
 `(7) The best estimate of the number and costs of contractors to be funded by the element for the upcoming fiscal year.
 `(8) The numerical and percentage increase or decrease
of such costs of contractors as compared to the best estimate of the
costs of contractors of the current fiscal year.
 `(9) The numerical and percentage increase or decrease
of such costs of contractors as compared to the cost of contractors,
and the number of contractors, during the prior 5 fiscal years.
 `(10) A written justification for the requested personnel and contractor levels.
 `(11) The number of intelligence collectors and analysts employed or contracted by each element of the intelligence community.
 `(12) A list of all contractors that have been the
subject of an investigation completed by the Inspector General of any
element of the intelligence community during the preceding fiscal year,
or are or have been the subject of an investigation by such an
Inspector General during the current fiscal year.
 `(13) A statement by the Director of National
Intelligence that, based on current and projected funding, the element
concerned will have sufficient--
 `(A) internal infrastructure to support the requested personnel and contractor levels;
 `(B) training resources to support the requested personnel levels; and
 `(C) funding to support the administrative and operational activities of the requested personnel levels.'.
 (b) Clerical Amendment- The table of contents in the first
section of that Act is amended by inserting after the item relating to
section 506A the following new item:

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

SEC. 306. COMPREHENSIVE REPORT ON INTELLIGENCE COMMUNITY CONTRACTORS.
 (a) Requirement for Report- Not later than November 1,
2008, the Director of National Intelligence shall submit to the
congressional intelligence committees a report describing the use of
personal services contracts across the intelligence community, the
impact of such contractors on the intelligence community workforce,
plans for conversion of contractor employment into government
employment, and the accountability mechanisms that govern the
performance of such contractors.
 (b) Content-
 (1) IN GENERAL- The report submitted under subsection (a) shall include--
 (A) a description of any relevant regulations or
guidance issued by the Director of National Intelligence or the head of
an element of the intelligence community relating to minimum standards
required regarding the hiring, training, security clearance, and
assignment of contract personnel and how those standards may differ
from those for government employees performing substantially similar
functions;
 (B) an identification of contracts where the
contractor is performing a substantially similar functions to a
government employee;
 (C) an assessment of costs incurred or savings
achieved by awarding contracts for the performance of such functions
referred to in subparagraph (B) instead of using full-time employees of
the elements of the intelligence community to perform such functions;
 (D) an assessment of the appropriateness of using contractors to perform the activities described in paragraph (2);
 (E) an estimate of the number of contracts, and the
number of personnel working under such contracts, related to the
performance of activities described in paragraph (2);
 (F) a comparison of the compensation of contract employees and government employees performing substantially similar functions;
 (G) an analysis of the attrition of government personnel for contractor positions that provide substantially similar functions;
 (H) a description of positions that will be converted from contractor employment to government employment;
 (I) an analysis of the oversight and accountability
mechanisms applicable to personal services contracts awarded for
intelligence activities by each element of the intelligence community
during fiscal years 2006 and 2007;
 (J) an analysis of procedures in use in the
intelligence community for conducting oversight of contractors to
ensure identification and prosecution of criminal violations, financial
waste, fraud, or other abuses committed by contractors or contract
personnel; and
 (K) an identification of best practices for oversight and accountability mechanisms applicable to personal services contracts.
 (2) ACTIVITIES- Activities described in this paragraph are the following:
 (A) Intelligence collection.
 (B) Intelligence analysis.
 (C) Covert actions, including rendition, detention, and interrogation activities.
SEC. 307. REPORT ON PROPOSED PAY FOR PERFORMANCE INTELLIGENCE COMMUNITY PERSONNEL MANAGEMENT SYSTEM.
 (a) Prohibition on Pay for Performance Until Report- The
Director of National Intelligence and the head of an element of the
intelligence community may not implement a plan that provides
compensation to personnel of that element of the intelligence community
based on performance until the date that is 45 days after the date on
which the Director of National Intelligence submits a report for that
element under subsection (b).
 (b) Report- The Director of National Intelligence shall
submit to Congress a report on performance-based compensation for each
element of the intelligence community, including, with respect to each
such element--
 (1) a description of a proposed employee advisory group
to advise management on the implementation and management of a pay for
performance system in that element, including the scope of
responsibility of the group and the plan for the element for ensuring
diversity in the selection of members of the advisory group;
 (2) a certification that all managers who will
participate in setting performance standards and pay pool
administration have been trained on the implementing guidance of the
system and the criteria upon which the certification is granted; and
 (3) a description of an external appeals mechanism for
employees who wish to appeal pay decisions to someone outside the
management chain of the element employing such employee.
SEC. 308. REPORT ON PLANS TO INCREASE DIVERSITY WITHIN THE INTELLIGENCE COMMUNITY.
 (a) Requirement for Report- Not later than November 1,
2008, the Director of National Intelligence, in coordination with the
heads of the elements of the intelligence community, shall submit to
the congressional intelligence committees a report on the plans of each
element to increase diversity within the intelligence community.
 (b) Content- The report required by subsection (a) shall
include specific implementation plans to increase diversity within each
element of the intelligence community, including--
 (1) specific implementation plans for each such element
designed to achieve the goals articulated in the strategic plan of the
Director of National Intelligence on equal employment opportunity and
diversity;
 (2) specific plans and initiatives for each such element to increase recruiting and hiring of diverse candidates;
 (3) specific plans and initiatives for each such
element to improve retention of diverse Federal employees at the
junior, midgrade, senior, and management levels;
 (4) a description of specific diversity awareness
training and education programs for senior officials and managers of
each such element; and
 (5) a description of performance metrics to measure the
success of carrying out the plans, initiatives, and programs described
in paragraphs (1) through (4).
SEC. 309. REPORT ON SECURITY CLEARANCE DETERMINATIONS.
 (a) In General- Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.) is amended by adding at the end the
following new section:
`REPORT ON SECURITY CLEARANCE DETERMINATIONS
 `Sec. 508. Not later than February 1 of each year, the
Director of the Office of Management and Budget shall submit to
Congress a report on security clearance determinations completed or
ongoing during the preceding fiscal year that have taken longer than
one year to complete. Such report shall include--
 `(1) the number of security clearance determinations
for positions as employees of the Federal Government that required more
than one year to complete;
 `(2) the number of security clearance determinations for contractors that required more than one year to complete;
 `(3) the agencies that investigated and adjudicated such determinations; and
 `(4) the cause of significant delays in such determinations.'.
 (b) Conforming Amendment- The table of contents in the
first section of the National Security Act of 1947 (50 U.S.C. 401 et
seq.) is further amended by inserting after the item relating to
section 507 the following new item:

`Sec. 508. Report on security clearance determinations.'.

Subtitle B--Other Matters
SEC. 311. 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. 312. 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. 313. 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. 314. PROTECTION OF CERTAIN NATIONAL SECURITY INFORMATION.
 (a) Increase in Penalties for Disclosure of Undercover Intelligence Officers and Agents-
 (1) DISCLOSURE OF AGENT AFTER ACCESS TO INFORMATION
IDENTIFYING AGENT- Subsection (a) of section 601 of the National
Security Act of 1947 (50 U.S.C. 421) is amended by striking `ten years'
and inserting `15 years'.
 (2) DISCLOSURE OF AGENT AFTER ACCESS TO CLASSIFIED
INFORMATION- Subsection (b) of such section is amended by striking
`five years' and inserting `10 years'.
 (b) Modifications to Annual Report on Protection of
Intelligence Identities- The first sentence of section 603(a) of the
National Security Act of 1947 (50 U.S.C. 423(a)) is amended by
inserting `including an assessment of the need for any modification of
this title for the purpose of improving legal protections for covert
agents,' after `measures to protect the identities of covert agents,'.
SEC. 315. EXTENSION OF AUTHORITY TO DELETE INFORMATION ABOUT RECEIPT AND DISPOSITION OF FOREIGN GIFTS AND DECORATIONS.
 Paragraph (4) of section 7342(f) of title 5, United States Code, is amended to read as follows:
 `(4)(A) In transmitting such listings for an element of the
intelligence community, the head of such element may delete the
information described in subparagraph (A) or (C) of paragraph (2) or in
subparagraph (A) or (C) of paragraph (3) if the head of such element
certifies in writing to the Secretary of State that the publication of
such information could adversely affect United States intelligence
sources or methods.
 `(B) Any information not provided to the Secretary of State
pursuant to the authority in subparagraph (A) shall be transmitted to
the Director of National Intelligence who shall keep a record of such
information.
 `(C) In this paragraph, the term `intelligence community'
has the meaning given the term in section 3(4) of the National Security
Act of 1947 (50 U.S.C. 401a(4)).'.
SEC. 316. 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 November 1, 2008, the
Director of National Intelligence shall submit to the congressional
intelligence committees a comprehensive report on all measures taken by
the Office of the Director of National Intelligence and by each
element, if any, of the intelligence community with relevant
responsibilities to comply with the provisions of the Detainee
Treatment Act of 2005 (title X of division A of Public Law 109-148; 119
Stat. 2739) and related provisions of the Military Commissions Act of
2006 (Public Law 109-366; 120 Stat. 2600).
 (b) Elements- The report required by subsection (a) shall include the following:
 (1) A description of the detention or interrogation
methods, if any, that have been determined to comply with section 1003
of the Detainee Treatment Act of 2005 (119 Stat. 2739; 42 U.S.C.
2000dd) and section 6 of the Military Commissions Act of 2006 (120
Stat. 2632; 18 U.S.C. 2441 note) (including the amendments made by such
section 6), and, with respect to each such method--
 (A) an identification of the official making such determination; and
 (B) a statement of the basis for such determination.
 (2) A description of the detention or interrogation
methods, if any, the use of which 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 the Department of
Justice, including any office thereof, about the meaning or application
of the Detainee Treatment Act of 2005 or related provisions of the
Military Commissions Act of 2006 with respect to the detention or
interrogation activities, if any, of any element of the intelligence
community.
 (c) Form- The report required by subsection (a) shall be submitted in classified form.
 (d) Submission to the Congressional Armed Services
Committees- To the extent that the report required by subsection (a)
addresses an element of the intelligence community within the
Department of Defense, that portion of the report, and any associated
material that is necessary to make that portion understandable, shall
also be submitted by the Director of National Intelligence to the
congressional armed services committees.
 (e) Congressional Armed Services Committee Defined- In this section, the term `congressional armed services committees' means--
 (1) the Committee on Armed Services of the Senate; and
 (2) the Committee on Armed Services of the House of Representatives.
SEC. 317. INCORPORATION OF REPORTING REQUIREMENTS.
 Each requirement to submit a report to the congressional
intelligence committees that is included in the classified annex to
this Act is hereby incorporated into this Act and is hereby made a
requirement in law.
SEC. 318. REPEAL OF CERTAIN REPORTING REQUIREMENTS.
 (a) 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).
 (b) 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.
 (c) 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.
 (d) Conforming Amendments- Section 507(a)(2) of the
National Security Act of 1947 (50 U.S.C. 415b(a)(2)) is amended by
striking subparagraph (D).
SEC. 319. ENHANCEMENT OF CRITICAL SKILLS TRAINING PROGRAM.
 (a) National Security Agency- Subsection (e) of section 16
of the National Security Agency Act of 1959 (50 U.S.C. 402 note) is
amended by striking `(1) When an employee' and all that follows through
`(2) Agency efforts' and inserting `Agency efforts'.
 (b) Other Elements of the Intelligence Community-
 (1) IN GENERAL- The National Security Act of 1947 is
amended by inserting after section 1021 (50 U.S.C. 441m) the following
new section:
`INTELLIGENCE COMMUNITY ACQUISITION OF CRITICAL SKILLS
 `Sec. 1022. (a) In General- The head of an appropriate
department may assign civilian employees of an element of the
intelligence community that is a component of such appropriate
department as students at accredited professional, technical, and other
institutions of higher learning for training at the undergraduate level
in skills critical to effective performance of the mission of such
element of the intelligence community.
 `(b) Payment of Expenses- The head of an appropriate
department may pay, directly or by reimbursement to employees, expenses
incident to assignments under subsection (a), in any fiscal year only
to the extent that appropriated funds are available for such purpose.
 `(c) Eligibility-
 `(1) IN GENERAL- To be eligible for assignment under
subsection (a), an employee of an element of the intelligence community
must agree in writing--
 `(A) to continue in the service of such element for
the period of the assignment and to complete the educational course of
training for which the employee is assigned;
 `(B) to continue in the service of such element
following completion of the assignment for a period of one-and-a-half
years for each year of the assignment or part thereof;
 `(C) to reimburse the United States for the total
cost of education (excluding the employee's pay and allowances)
provided under this section to the employee if, prior to the employee's
completing the educational course of training for which the employee is
assigned, the assignment or the employee's employment with such element
is terminated either by such element due to misconduct by the employee
or by the employee voluntarily; and
 `(D) to reimburse the United States if, after
completing the educational course of training for which the employee is
assigned, the employee's employment with such element is terminated
either by such element due to misconduct by the employee or by the
employee voluntarily, prior to the employee's completion of the service
obligation period described in subparagraph (B), in an amount that
bears the same ratio to the total cost of the education (excluding the
employee's pay and allowances) provided to the employee as the unserved
portion of the service obligation period described in subparagraph (B)
bears to the total period of the service obligation described in
subparagraph (B).
 `(2) DEBT OWING THE UNITED STATES- Subject to paragraph
(3), the obligation to reimburse the United States under an agreement
described in paragraph (1), including interest due on such obligation,
is for all purposes a debt owing the United States.
 `(3) REIMBURSEMENT-
 `(A) BANKRUPTCY- A discharge in bankruptcy under
title 11, United States Code, shall not release a person from an
obligation to reimburse the United States required under an agreement
described in paragraph (1) if the final decree of the discharge in
bankruptcy is issued within five years after the last day of the
combined period of service obligation described in subparagraphs (A)
and (B) of paragraph (1).
 `(B) RELEASE- The head of an appropriate department
may release a person, in whole or in part, from the obligation to
reimburse the United States under an agreement described in paragraph
(1) when, in the discretion of such head of an appropriate department,
such head of an appropriate department determines that equity or the
interests of the United States so require.
 `(C) MONTHLY PAYMENTS- The head of an appropriate
department shall permit an employee assigned under this section who,
prior to commencing a second academic year of such assignment,
voluntarily terminates the assignment or the employee's employment with
the element of the intelligence community that is a component of such
appropriate department, to satisfy the employee's obligation under an
agreement described in paragraph (1) to reimburse the United States by
reimbursement according to a schedule of monthly payments which results
in completion of reimbursement by a date five years after the date of
termination of the assignment or employment or earlier at the option of
the employee.
 `(d) Recruitment- Efforts by an element of the intelligence
community to recruit individuals at educational institutions for
participation in the undergraduate training program established by this
section shall be made openly and according to the common practices of
universities and employers recruiting at such institutions.
 `(e) Inapplication of Provisions on Training- Chapter 41 of
title 5 and subsections (a) and (b) of section 3324 of title 31, United
States Code, shall not apply with respect to this section.
 `(f) Regulations- A head of the appropriate department
assigning employees in accordance with this section may issue such
regulations as such head of the appropriate department considers
necessary to carry out this section.
 `(g) Rules of Construction-
 `(1) COMPONENT- For purposes of this section--
 `(A) the Office of the Director of National Intelligence shall be considered a component of such Office; and
 `(B) the Central Intelligence Agency shall be considered a component of such Agency.
 `(2) REQUIRED EDUCATION PROGRAMS- Nothing in this
section shall be construed to modify, affect, or supercede any
provision of law requiring or otherwise authorizing or providing for a
training program described in this section.
 `(h) Appropriate Department Defined- In this section, the term `appropriate department' means--
 `(1) with respect to the Office of the Director of National Intelligence, the Office of the Director of National Intelligence;
 `(2) with respect to the Central Intelligence Agency, Central Intelligence Agency; and
 `(3) with respect to an element of the intelligence
community other than the Office of the Director of National
Intelligence and the Central Intelligence Agency, the department of the
Federal Government of which such element of the intelligence community
is a component.'.
 (2) CONFORMING AMENDMENT- The table of contents in the
first section of the National Security Act of 1947 (50 U.S.C. 401 et
seq.) is amended by inserting after the item relating to section 1021
the following new item:

`Sec. 1022. Intelligence community acquisition of critical skills.'.

SEC. 320. COMPREHENSIVE NATIONAL CYBERSECURITY INITIATIVE ADVISORY PANEL.
 Not later than February 1, 2009, the President shall submit
to Congress a report on options for creating an advisory panel
comprised of representatives of Congress, the Executive Branch, and the
private sector to make policy and procedural recommendations for--
 (1) information security for the Federal Government;
 (2) critical infrastructure;
 (3) the authorities, roles, responsibilities of the
intelligence community, Department of Homeland Security, and Department
of Defense for purposes of supporting the Comprehensive National
Cybersecurity Initiative as described in National Security Policy
Directive 54/Homeland Security Policy Directive 23 entitled
`Cybersecurity Policy' signed by the President on January 8, 2008; and
 (4) other matters related to paragraphs (1) through (3) as the President considers appropriate.
TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY
Subtitle A--Office of the Director of National Intelligence
SEC. 401. CLARIFICATION OF LIMITATION ON COLOCATION OF THE OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE.
 Section 103(e) of the National Security Act of 1947 (50 U.S.C. 403-3(e)) is amended--
 (1) by striking `With' and inserting `of Headquarters With Headquarters of';
 (2) by inserting `the headquarters of' before `the Office'; and
 (3) by striking `any other element' and inserting `the headquarters of any other element'.
SEC. 402. MEMBERSHIP OF THE DIRECTOR OF NATIONAL INTELLIGENCE ON THE TRANSPORTATION SECURITY OVERSIGHT BOARD.
 Subparagraph (F) of section 115(b)(1) of title 49, United States Code, is amended to read as follows:
 `(F) The Director of National Intelligence.'.
SEC. 403. ADDITIONAL DUTIES OF THE DIRECTOR OF SCIENCE AND TECHNOLOGY.
 Section 103E of the National Security Act of 1947 (50 U.S.C. 403-3e) is amended--
 (1) in subsection (c)--
 (A) by redesignating paragraph (5) as paragraph (7);
 (B) in paragraph (4), by striking `and' at the end; and
 (C) by inserting after paragraph (4) the following:
 `(5) assist the Director in establishing goals for
basic, applied, and advanced research to meet the technology needs of
the intelligence community;
 `(6) submit to the congressional intelligence
committees an annual report on the science and technology strategy of
the Director that shows resources mapped to the goals of the
intelligence community; and'; and
 (2) in subsection (d)(3)--
 (A) in subparagraph (A)--
 (i) by inserting `and prioritize' after `coordinate'; and
 (ii) by striking `; and' and inserting `;';
 (B) by redesignating subparagraph (B) as subparagraph (C); and
 (C) by inserting after subparagraph (A) the following new subparagraph:
 `(B) identify basic, advanced, and applied research programs to be executed by elements of the intelligence community; and'.
SEC. 404. LEADERSHIP AND LOCATION OF CERTAIN OFFICES AND OFFICIALS.
 (a) National Counter Proliferation Center- Section 119A(a)
of the National Security Act of 1947 (50 U.S.C. 404o-1(a)) is amended--
 (1) by striking `(a) Establishment- Not later than 18
months after the date of the enactment of the National Security
Intelligence Reform Act of 2004, the' and inserting the following:
 `(a) In General-
 `(1) ESTABLISHMENT- The'; and
 (2) by adding at the end the following new paragraphs:
 `(2) DIRECTOR- The head of the National Counter
Proliferation Center shall be the Director of the National Counter
Proliferation Center, who shall be appointed by the Director of
National Intelligence.
 `(3) LOCATION- The National Counter Proliferation
Center shall be located within the Office of the Director of National
Intelligence.'.
 (b) Officers- Section 103(c) of that Act (50 U.S.C. 403-3(c)) is amended--
 (1) by redesignating paragraph (9) as paragraph (13); and
 (2) by inserting after paragraph (8) the following new paragraphs:
 `(9) The Chief Information Officer of the Intelligence Community.
 `(10) The Inspector General of the Intelligence Community.
 `(11) The Director of the National Counterterrorism Center.
 `(12) The Director of the National Counter Proliferation Center.'.
SEC. 405. PLAN TO IMPLEMENT RECOMMENDATIONS OF THE DATA CENTER ENERGY EFFICIENCY REPORTS.
 (a) Plan- The Director of National Intelligence shall
develop a plan to implement the recommendations of the report submitted
to Congress under section 1 of the Act entitled `An Act to study and
promote the use of energy efficient computer servers in the United
States' (Public Law 109-431; 120 Stat. 2920) across the intelligence
community.
 (b) Report-
 (1) IN GENERAL- Not later then November 1, 2008, the
Director of National Intelligence shall submit to the congressional
intelligence committees a report containing the plan developed under
subsection (a).
 (2) FORM- The report under paragraph (1) shall be submitted in unclassified form, but may contain a classified annex.
SEC. 406. SEMIANNUAL REPORTS ON NUCLEAR PROGRAMS OF IRAN, SYRIA, AND NORTH KOREA.
 (a) Reports-
 (1) IN GENERAL- Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by title III, is further
amended by adding at the end the following new section:
`SEMIANNUAL REPORTS ON THE NUCLEAR PROGRAMS OF IRAN, SYRIA, AND NORTH KOREA
 `Sec. 509. (a) Requirement for Reports- Not less frequently
than every 180 days, the Director of National Intelligence shall submit
to the congressional intelligence committees a report on the intentions
and capabilities of the Islamic Republic of Iran, the Syrian Arab
Republic, and the Democratic People's Republic of Korea, with regard to
the nuclear programs of each such country.
 `(b) Content- Each report submitted under subsection (a)
shall include, with respect to the Islamic Republic of Iran, the Syrian
Arab Republic, and the Democratic People's Republic of Korea--
 `(1) an assessment of nuclear weapons programs of each such country;
 `(2) an evaluation, consistent with existing reporting
standards and practices, of the sources upon which the intelligence
used to prepare the assessment described in paragraph (1) is based,
including the number of such sources and an assessment of the
reliability of each such source;
 `(3) a summary of any intelligence related to any such
program gathered or developed since the previous report was submitted
under subsection (a), including intelligence collected from both open
and clandestine sources for each such country; and
 `(4) a discussion of any dissents, caveats, gaps in
knowledge, or other information that would reduce confidence in the
assessment described in paragraph (1).
 `(c) National Intelligence Estimate- The Director of
National Intelligence may submit a National Intelligence Estimate on
the intentions and capabilities of the Islamic Republic of Iran, the
Syrian Arab Republic, or the Democratic People's Republic of Korea in
lieu of a report required by subsection (a) for that country.
 `(d) Form- Each report submitted under subsection (a) may be submitted in classified form.'.
 (2) APPLICABILITY DATE- The first report required to be
submitted under section 509 of the National Security Act of 1947, as
added by paragraph (1), shall be submitted not later than 30 days after
the date of the enactment of this Act.
 (b) Conforming Amendment- The table of contents in the
first section of the National Security Act of 1947 (50 U.S.C. 401 et
seq.) is amended by inserting after the item relating to section 508
the following new item:

`Sec. 509. Semiannual reports on the nuclear programs of Iran, Syria, and North Korea.'.

SEC. 407. 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'.
SEC. 408. INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY.
 (a) Establishment-
 (1) IN GENERAL- Title I of the National Security Act of
1947 (50 U.S.C. 402 et seq.) is amended by inserting after section 103G
the following new section:
`INSPECTOR GENERAL OF THE INTELLIGENCE COMMUNITY
 `Sec. 103H. (a) Office of Inspector General of Intelligence
Community- There is within the Office of the Director of National
Intelligence an Office of the Inspector General of the Intelligence
Community.
 `(b) Purpose- The purpose of the Office of the Inspector General of the Intelligence Community is to--
 `(1) create an objective and effective office,
appropriately accountable to Congress, to initiate and conduct
independently investigations, inspections, and audits on matters within
the responsibility and authority of the Director of National
Intelligence;
 `(2) recommend policies designed--
 `(A) to promote economy, efficiency, and
effectiveness in the administration and implementation of matters
within the responsibility and authority of the Director of National
Intelligence; and
 `(B) to prevent and detect fraud and abuse in such matters;
 `(3) provide a means for keeping the Director of National Intelligence fully and currently informed about--
 `(A) problems and deficiencies relating to matters
within the responsibility and authority of the Director of National
Intelligence; and
 `(B) the necessity for, and the progress of, corrective actions; and
 `(4) in the manner prescribed by this section, ensure
that the congressional intelligence committees are kept similarly
informed of--
 `(A) significant problems and deficiencies relating
to matters within the responsibility and authority of the Director of
National Intelligence; and
 `(B) the necessity for, and the progress of, corrective actions.
 `(c) Inspector General of Intelligence Community- (1) There
is an Inspector General of the Intelligence Community, who shall be the
head of the Office of the Inspector General of the Intelligence
Community, who shall be appointed by the President, by and with the
advice and consent of the Senate.
 `(2) The nomination of an individual for appointment as Inspector General shall be made--
 `(A) without regard to political affiliation;
 `(B) solely on the basis of integrity, compliance with
the security standards of the intelligence community, and prior
experience in the field of intelligence or national security; and
 `(C) on the basis of demonstrated ability in
accounting, financial analysis, law, management analysis, public
administration, or auditing.
 `(3) The Inspector General shall report directly to and be
under the general supervision of the Director of National Intelligence.
 `(4) The Inspector General may be removed from office only
by the President. The President shall immediately communicate in
writing to the congressional intelligence committees the reasons for
the removal of any individual from the position of Inspector General.
 `(d) Duties and Responsibilities- Subject to subsections
(g) and (h), it shall be the duty and responsibility of the Inspector
General of the Intelligence Community--
 `(1) to provide policy direction for, and to plan,
conduct, supervise, and coordinate independently, the investigations,
inspections, and audits relating to matters within the responsibility
and authority of the Director of National Intelligence to ensure they
are conducted efficiently and in accordance with applicable law and
regulations;
 `(2) to keep the Director of National Intelligence
fully and currently informed concerning violations of law and
regulations, violations of civil liberties and privacy, fraud and other
serious problems, abuses, and deficiencies that may occur in matters
within the responsibility and authority of the Director, and to report
the progress made in implementing corrective action;
 `(3) to take due regard for the protection of
intelligence sources and methods in the preparation of all reports
issued by the Inspector General, and, to the extent consistent with the
purpose and objective of such reports, take such measures as may be
appropriate to minimize the disclosure of intelligence sources and
methods described in such reports; and
 `(4) in the execution of the duties and
responsibilities under this section, to comply with generally accepted
government auditing standards.
 `(e) Limitations on Activities- (1) The Director of
National Intelligence may prohibit the Inspector General of the
Intelligence Community from initiating, carrying out, or completing any
investigation, inspection, or audit if the Director determines that
such prohibition is necessary to protect vital national security
interests of the United States.
 `(2) If the Director exercises the authority under
paragraph (1), the Director shall submit an appropriately classified
statement of the reasons for the exercise of such authority within 7
days to the congressional intelligence committees.
 `(3) The Director shall advise the Inspector General at the
time a report under paragraph (2) is submitted, and, to the extent
consistent with the protection of intelligence sources and methods,
provide the Inspector General with a copy of such report.
 `(4) The Inspector General may submit to the congressional
intelligence committees any comments on a report of which the Inspector
General has notice under paragraph (3) that the Inspector General
considers appropriate.
 `(f) Authorities- (1) The Inspector General of the
Intelligence Community shall have direct and prompt access to the
Director of National Intelligence when necessary for any purpose
pertaining to the performance of the duties of the Inspector General.
 `(2)(A) The Inspector General shall have access to any
employee, or any employee of a contractor, of any element of the
intelligence community whose testimony is needed for the performance of
the duties of the Inspector General.
 `(B) The Inspector General shall have direct access to all
records, reports, audits, reviews, documents, papers, recommendations,
or other material which relate to the programs and operations with
respect to which the Inspector General has responsibilities under this
section.
 `(C) The level of classification or compartmentation of
information shall not, in and of itself, provide a sufficient rationale
for denying the Inspector General access to any materials under
subparagraph (B).
 `(D) Failure on the part of any employee, or any employee
of a contractor, of any element of the intelligence community to
cooperate with the Inspector General shall be grounds for appropriate
administrative actions by the Director or, on the recommendation of the
Director, other appropriate officials of the intelligence community,
including loss of employment or the termination of an existing
contractual relationship.
 `(3) The Inspector General is authorized to receive and
investigate complaints or information from any person concerning the
existence of an activity constituting a violation of laws, rules, or
regulations, or mismanagement, gross waste of funds, abuse of
authority, or a substantial and specific danger to the public health
and safety. Once such complaint or information has been received from
an employee of the Federal Government--
 `(A) the Inspector General shall not disclose the
identity of the employee without the consent of the employee, unless
the Inspector General determines that such disclosure is unavoidable
during the course of the investigation or the disclosure is made to an
official of the Department of Justice responsible for determining
whether a prosecution should be undertaken; and
 `(B) no action constituting a reprisal, or threat of
reprisal, for making such complaint may be taken by any employee in a
position to take such actions, unless the complaint was made or the
information was disclosed with the knowledge that it was false or with
willful disregard for its truth or falsity.
 `(4) The Inspector General shall have authority to
administer to or take from any person an oath, affirmation, or
affidavit, whenever necessary in the performance of the duties of the
Inspector General, which oath, affirmation, or affidavit when
administered or taken by or before an employee of the Office of the
Inspector General of the Intelligence Community designated by the
Inspector General shall have the same force and effect as if
administered or taken by, or before, an officer having a seal.
 `(5)(A) Except as provided in subparagraph (B), the
Inspector General is authorized to require by subpoena the production
of all information, documents, reports, answers, records, accounts,
papers, and other data and documentary evidence necessary in the
performance of the duties and responsibilities of the Inspector General.
 `(B) In the case of departments, agencies, and other
elements of the United States Government, the Inspector General shall
obtain information, documents, reports, answers, records, accounts,
papers, and other data and evidence for the purpose specified in
subparagraph (A) using procedures other than by subpoenas.
 `(C) The Inspector General may not issue a subpoena for, or
on behalf of, any other element of the intelligence community,
including the Office of the Director of National Intelligence.
 `(D) In the case of contumacy or refusal to obey a subpoena
issued under this paragraph, the subpoena shall be enforceable by order
of any appropriate district court of the United States.
 `(g) Coordination Among Inspectors General of Intelligence
Community- (1)(A) In the event of a matter within the jurisdiction of
the Inspector General of the Intelligence Community that may be subject
to an investigation, inspection, or audit by both the Inspector General
of the Intelligence Community and an Inspector General, whether
statutory or administrative, with oversight responsibility for an
element or elements of the intelligence community, the Inspector
General of the Intelligence Community and such other Inspector or
Inspectors General shall expeditiously resolve the question of which
Inspector General shall conduct such investigation, inspection, or
audit.
 `(B) In attempting to resolve a question under subparagraph
(A), the Inspectors General concerned may request the assistance of the
Intelligence Community Inspectors General Forum established under
subparagraph (C). In the event of a dispute between an Inspector
General within an agency or department of the United States Government
and the Inspector General of the Intelligence Community that has not
been resolved with the assistance of the Forum, the Inspectors General
shall submit the question to the Director of National Intelligence and
the head of the agency or department for resolution.
 `(C) There is established the Intelligence Community
Inspectors General Forum which shall consist of all statutory or
administrative Inspectors General with oversight responsibility for an
element or elements of the intelligence community. The Inspector
General of the Intelligence Community shall serve as the chair of the
Forum. The Forum shall have no administrative authority over any
Inspector General, but shall serve as a mechanism for informing its
members of the work of individual members of the Forum that may be of
common interest and discussing questions about jurisdiction or access
to employees, employees of a contractor, records, audits, reviews,
documents, recommendations, or other materials that may involve or be
of assistance to more than 1 of its members.
 `(2) The Inspector General conducting an investigation,
inspection, or audit covered by paragraph (1) shall submit the results
of such investigation, inspection, or audit to any other Inspector
General, including the Inspector General of the Intelligence Community,
with jurisdiction to conduct such investigation, inspection, or audit
who did not conduct such investigation, inspection, or audit.
 `(h) Staff and Other Support- (1) The Inspector General of
the Intelligence Community shall be provided with appropriate and
adequate office space at central and field office locations, together
with such equipment, office supplies, maintenance services, and
communications facilities and services as may be necessary for the
operation of such offices.
 `(2)(A) Subject to applicable law and the policies of the
Director of National Intelligence, the Inspector General shall select,
appoint, and employ such officers and employees as may be necessary to
carry out the functions of the Inspector General. The Inspector General
shall ensure that any officer or employee so selected, appointed, or
employed has security clearances appropriate for the assigned duties of
such officer or employee.
 `(B) In making selections under subparagraph (A), the
Inspector General shall ensure that such officers and employees have
the requisite training and experience to enable the Inspector General
to carry out the duties of the Inspector General effectively.
 `(C) In meeting the requirements of this paragraph, the
Inspector General shall create within the Office of the Inspector
General of the Intelligence Community a career cadre of sufficient size
to provide appropriate continuity and objectivity needed for the
effective performance of the duties of the Inspector General.
 `(3)(A) Subject to the concurrence of the Director, the
Inspector General may request such information or assistance as may be
necessary for carrying out the duties and responsibilities of the
Inspector General from any department, agency, or other element of the
United States Government.
 `(B) Upon request of the Inspector General for information
or assistance under subparagraph (A), the head of the department,
agency, or element concerned shall, insofar as is practicable and not
in contravention of any existing statutory restriction or regulation of
the department, agency, or element, furnish to the Inspector General,
or to an authorized designee, such information or assistance.
 `(C) The Inspector General of the Intelligence Community
may, upon reasonable notice to the head of any element of the
intelligence community, conduct, as authorized by this section, an
investigation, inspection, or audit of such element and may enter into
any place occupied by such element for purposes of the performance of
the duties of the Inspector General.
 `(i) Reports- (1)(A) The Inspector General of the
Intelligence Community shall, not later than January 31 and July 31 of
each year, prepare and submit to the Director of National Intelligence
a classified, and, as appropriate, unclassified semiannual report
summarizing the activities of the Office of the Inspector General of
the Intelligence Community during the immediately preceding 6-month
period ending December 31 (of the preceding year) and June 30,
respectively. The Inspector General of the Intelligence Community shall
provide any portion of the report involving a component of a department
of the United States Government to the head of that department
simultaneously with submission of the report to the Director of
National Intelligence.
 `(B) Each report under this paragraph shall include, at a minimum, the following:
 `(i) A list of the title or subject of each
investigation, inspection, or audit conducted during the period covered
by such report, including a summary of the progress of each particular
investigation, inspection, or audit since the preceding report of the
Inspector General under this paragraph.
 `(ii) A description of significant problems, abuses,
and deficiencies relating to the administration and implementation of
programs and operations of the intelligence community, and in the
relationships between elements of the intelligence community,
identified by the Inspector General during the period covered by such
report.
 `(iii) A description of the recommendations for
corrective or disciplinary action made by the Inspector General during
the period covered by such report with respect to significant problems,
abuses, or deficiencies identified in clause (ii).
 `(iv) A statement whether or not corrective or
disciplinary action has been completed on each significant
recommendation described in previous semiannual reports, and, in a case
where corrective action has been completed, a description of such
corrective action.
 `(v) A certification whether or not the Inspector
General has had full and direct access to all information relevant to
the performance of the functions of the Inspector General.
 `(vi) A description of the exercise of the subpoena
authority under subsection (f)(5) by the Inspector General during the
period covered by such report.
 `(vii) Such recommendations as the Inspector General
considers appropriate for legislation to promote economy, efficiency,
and effectiveness in the administration and implementation of matters
within the responsibility and authority of the Director of National
Intelligence, and to detect and eliminate fraud and abuse in such
matters.
 `(C) Not later than the 30 days after the date of receipt
of a report under subparagraph (A), the Director shall transmit the
report to the congressional intelligence committees together with any
comments the Director considers appropriate. The Director shall
transmit to the committees of the Senate and of the House of
Representatives with jurisdiction over a department of the United
States Government any portion of the report involving a component of
such department simultaneously with submission of the report to the
congressional intelligence committees.
 `(2)(A) The Inspector General shall report immediately to
the Director whenever the Inspector General becomes aware of
particularly serious or flagrant problems, abuses, or deficiencies
relating to matters within the responsibility and authority of the
Director of National Intelligence.
 `(B) The Director shall transmit to the congressional
intelligence committees each report under subparagraph (A) within 7
calendar days of receipt of such report, together with such comments as
the Director considers appropriate. The Director shall transmit to the
committees of the Senate and of the House of Representatives with
jurisdiction over a department of the United States Government any
portion of each report under subparagraph (A) that involves a problem,
abuse, or deficiency related to a component of such department
simultaneously with transmission of the report to the congressional
intelligence committees.
 `(3) In the event that--
 `(A) the Inspector General is unable to resolve any
differences with the Director affecting the execution of the duties or
responsibilities of the Inspector General;
 `(B) an investigation, inspection, or audit carried out
by the Inspector General focuses on any current or former intelligence
community official who--
 `(i) holds or held a position in an element of the
intelligence community that is subject to appointment by the President,
whether or not by and with the advice and consent of the Senate,
including such a position held on an acting basis;
 `(ii) holds or held a position in an element of the
intelligence community, including a position held on an acting basis,
that is appointed by the Director of National Intelligence; or
 `(iii) holds or held a position as head of an
element of the intelligence community or a position covered by
subsection (b) or (c) of section 106;
 `(C) a matter requires a report by the Inspector
General to the Department of Justice on possible criminal conduct by a
current or former official described in subparagraph (B);
 `(D) the Inspector General receives notice from the
Department of Justice declining or approving prosecution of possible
criminal conduct of any current or former official described in
subparagraph (B); or
 `(E) the Inspector General, after exhausting all
possible alternatives, is unable to obtain significant documentary
information in the course of an investigation, inspection, or audit,
the Inspector General shall immediately notify and submit a report on such matter to the congressional intelligence committees.
 `(4) Pursuant to title V, the Director shall submit to the
congressional intelligence committees any report or findings and
recommendations of an investigation, inspection, or audit conducted by
the office which has been requested by the Chairman or Vice Chairman or
Ranking Minority Member of either committee.
 `(5)(A) An employee of an element of the intelligence
community, an employee assigned or detailed to an element of the
intelligence community, or an employee of a contractor to the
intelligence community who intends to report to Congress a complaint or
information with respect to an urgent concern may report such complaint
or information to the Inspector General.
 `(B) Not later than the end of the 14-calendar day period
beginning on the date of receipt from an employee of a complaint or
information under subparagraph (A), the Inspector General shall
determine whether the complaint or information appears credible. Upon
making such a determination, the Inspector General shall transmit to
the Director a notice of that determination, together with the
complaint or information.
 `(C) Upon receipt of a transmittal from the Inspector
General under subparagraph (B), the Director shall, within 7 calendar
days of such receipt, forward such transmittal to the congressional
intelligence committees, together with any comments the Director
considers appropriate.
 `(D)(i) If the Inspector General does not find credible
under subparagraph (B) a complaint or information submitted under
subparagraph (A), or does not transmit the complaint or information to
the Director in accurate form under subparagraph (B), the employee
(subject to clause (ii)) may submit the complaint or information to
Congress by contacting either or both of the congressional intelligence
committees directly.
 `(ii) An employee may contact the intelligence committees directly as described in clause (i) only if the employee--
 `(I) before making such a contact, furnishes to the
Director, through the Inspector General, a statement of the employee's
complaint or information and notice of the employee's intent to contact
the congressional intelligence committees directly; and
 `(II) obtains and follows from the Director, through
the Inspector General, direction on how to contact the intelligence
committees in accordance with appropriate security practices.
 `(iii) A member or employee of 1 of the congressional
intelligence committees who receives a complaint or information under
clause (i) does so in that member or employee's official capacity as a
member or employee of such committee.
 `(E) The Inspector General shall notify an employee who
reports a complaint or information to the Inspector General under this
paragraph of each action taken under this paragraph with respect to the
complaint or information. Such notice shall be provided not later than
3 days after any such action is taken.
 `(F) An action taken by the Director or the Inspector General under this paragraph shall not be subject to judicial review.
 `(G) In this paragraph, the term `urgent concern' means any of the following:
 `(i) A serious or flagrant problem, abuse, violation of
law or Executive order, or deficiency relating to the funding,
administration, or operation of an intelligence activity involving
classified information, but does not include differences of opinions
concerning public policy matters.
 `(ii) A false statement to Congress, or a willful
withholding from Congress, on an issue of material fact relating to the
funding, administration, or operation of an intelligence activity.
 `(iii) An action, including a personnel action
described in section 2302(a)(2)(A) of title 5, United States Code,
constituting reprisal or threat of reprisal prohibited under subsection
(f)(3)(B) of this section in response to an employee's reporting an
urgent concern in accordance with this paragraph.
 `(H) In support of this paragraph, Congress makes the
findings set forth in paragraphs (1) through (6) of section 701(b) of
the Intelligence Community Whistleblower Protection Act of 1998 (title
VII of Public Law 105-272; 5 U.S.C. App. 8H note).
 `(6) In accordance with section 535 of title 28, United
States Code, the Inspector General shall report to the Attorney General
any information, allegation, or complaint received by the Inspector
General relating to violations of Federal criminal law that involves a
program or operation of an element of the intelligence community, or in
the relationships between the elements of the intelligence community,
consistent with such guidelines as may be issued by the Attorney
General pursuant to subsection (b)(2) of such section. A copy of each
such report shall be furnished to the Director.
 `(j) Separate Budget Account- The Director of National
Intelligence shall, in accordance with procedures to be issued by the
Director in consultation with the congressional intelligence
committees, include in the National Intelligence Program budget a
separate account for the Office of Inspector General of the
Intelligence Community.
 `(k) Construction of Duties Regarding Elements of
Intelligence Community- Except as resolved pursuant to subsection (g),
the performance by the Inspector General of the Intelligence Community
of any duty, responsibility, or function regarding an element of the
intelligence community shall not be construed to modify or effect the
duties and responsibilities of any other Inspector General, whether
statutory or administrative, having duties and responsibilities
relating to such element.'.
 (2) CLERICAL AMENDMENT- The table of contents in the
first section of the National Security Act of 1947 is amended by
inserting after the item relating to section 103G the following new
item:

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

 (b) Repeal of Superseded Authority To Establish Position-
Section 8K of the Inspector General Act of 1978 (5 U.S.C. App.) is
repealed.
 (c) Executive Schedule Level IV- Section 5315 of title 5,
United States Code, is amended by adding at the end the following new
item:
 `Inspector General of the Intelligence Community.'.
SEC. 409. ANNUAL REPORT ON FOREIGN LANGUAGE PROFICIENCY IN THE INTELLIGENCE COMMUNITY.
 (a) Report-
 (1) IN GENERAL- Title V of the National Security Act of
1947 (50 U.S.C. 413 et seq.), as amended by section 406 of this Act, is
further amended by adding at the end the following new section:
`REPORT ON FOREIGN LANGUAGE PROFICIENCY IN THE INTELLIGENCE COMMUNITY
 `Sec. 510. Not later than February 1 of each year, the
Director of National Intelligence shall submit to the congressional
intelligence committees a report on the proficiency in foreign
languages and, if appropriate, in foreign dialects of each element of
the intelligence community, including--
 `(1) the number of positions authorized for such
element that require foreign language proficiency and the level of
proficiency required;
 `(2) an estimate of the number of such positions that
each element will require during the 5-year period beginning on the
date of the submission of the report;
 `(3) the number of positions authorized for such element that require foreign language proficiency that are filled by--
 `(A) military personnel; and
 `(B) civilian personnel;
 `(4) the number of applicants for positions in such
element in the previous fiscal year that indicated foreign language
proficiency, including the foreign language indicated and the
proficiency level;
 `(5) the number of persons hired by such element with
foreign language proficiency, including the foreign language and
proficiency level;
 `(6) the number of personnel of such element currently
attending foreign language training, including the provider of such
training;
 `(7) a description of such element's efforts to
recruit, hire, train, and retain personnel that are proficient in a
foreign language;
 `(8) an assessment of methods and models for basic, advanced, and intensive foreign language training;
 `(9) for each foreign language and, where appropriate, dialect of a foreign language--
 `(A) the number of positions of such element that require proficiency in the foreign language or dialect;
 `(B) the number of personnel of such element that
are serving in a position that requires proficiency in the foreign
language or dialect to perform the primary duty of the position;
 `(C) the number of personnel of such element that
are serving in a position that does not require proficiency in the
foreign language or dialect to perform the primary duty of the position;
 `(D) the number of personnel of such element rated at each level of proficiency of the Interagency Language Roundtable;
 `(E) whether the number of personnel at each level
of proficiency of the Interagency Language Roundtable meets the
requirements of such element;
 `(F) the number of personnel serving or hired to
serve as linguists for such element that are not qualified as linguists
under the standards of the Interagency Language Roundtable;
 `(G) the number of personnel hired to serve as linguists for such element during the preceding calendar year;
 `(H) the number of personnel serving as linguists that discontinued serving such element during the preceding calendar year;
 `(I) the percentage of work requiring linguistic skills that is fulfilled by an ally of the United States; and
 `(J) the percentage of work requiring linguistic skills that is fulfilled by contractors;
 `(10) an assessment of the foreign language capacity and capabilities of the intelligence community as a whole; and
 `(11) recommendations for eliminating required reports
relating to foreign-language proficiency that the Director of National
Intelligence considers outdated or no longer relevant.'.
 (2) REPORT DATE- Section 507(a)(1) of such Act (50 U.S.C. 415b(a)(1)) is amended--
 (A) by redesignating subparagraph (N) as subparagraph (J); and
 (B) by adding at the end the following new subparagraph:
 `(K) The annual report on foreign language proficiency in the intelligence community required by section 510.'.
 (b) Conforming Amendment- The table of contents in the
first section of such Act is further amended by inserting after the
item relating to section 509 the following new item:

`Sec. 510. Report on foreign language proficiency in the intelligence community.'.

SEC. 410. REPEAL OF CERTAIN AUTHORITIES RELATING TO THE OFFICE OF THE NATIONAL COUNTERINTELLIGENCE EXECUTIVE.
 (a) Repeal of Certain Authorities- Section 904 of the
Counterintelligence Enhancement Act of 2002 (title IX of Public Law
107-306; 50 U.S.C. 402c) is amended--
 (1) by striking subsections (d), (h), (i), and (j); and
 (2) by redesignating subsections (e), (f), (g), (k),
(l), and (m) as subsections (d), (e), (f), (g), (h), and (i),
respectively; and
 (3) in subsection (f), as redesignated by paragraph (2), by striking paragraphs (3) and (4).
 (b) Conforming Amendments- Such section 904 is further amended--
 (1) in subsection (d), as redesignated by subsection
(a)(2) of this section, by striking `subsection (f)' each place it
appears in paragraphs (1) and (2) and inserting `subsection (e)'; and
 (2) in subsection (e), as so redesignated--
 (A) in paragraph (1), by striking `subsection (e)(1)' and inserting `subsection (d)(1)'; and
 (B) in paragraph (2), by striking `subsection (e)(2)' and inserting `subsection (d)(2)'.
SEC. 411. NATIONAL INTELLIGENCE ESTIMATE ON WEAPONS OF MASS DESTRUCTION IN SYRIA.
 (a) In General- Not later than 180 days after the date of
the enactment of this Act, the Director of National Intelligence shall
submit to Congress a National Intelligence Estimate on the history,
status, and projected development of any weapons of mass destruction
development program undertaken by the Government of Syria, or by any
person on behalf of the Government of Syria.
 (b) Form- The National Intelligence Estimate required under subsection (a) may be submitted in classified form.
SEC. 412. REPORT ON INTELLIGENCE RESOURCES DEDICATED TO IRAQ AND AFGHANISTAN.
 Not later than 120 days after the date of the enactment of
this Act, the Director of National Intelligence shall submit to the
congressional intelligence committees a report on intelligence
collection resources dedicated to Iraq and Afghanistan during fiscal
years 2007 and 2008. Such report shall include detailed information on
fiscal, human, technical, and other intelligence collection resources.
SEC. 413. OMBUDSMAN FOR INTELLIGENCE COMMUNITY SECURITY CLEARANCES.
 (a) In General- Title I of the National Security Act of
1947 (50 U.S.C. 402 et seq.) is amended by inserting after section
103H, as added by section 409 of this Act, the following new section:
`OMBUDSMAN FOR INTELLIGENCE COMMUNITY SECURITY CLEARANCES
 `Sec. 103I. (a) Appointment- The Director of National
Intelligence shall appoint an ombudsman for intelligence community
security clearances.
 `(b) Provision of Information- The head of an element of
the intelligence community shall provide a person applying for a
security clearance through or in coordination with such element with
contact information for the ombudsman appointed under subsection (a).
 `(c) Report- Not later than November 1 of each year, the
ombudsman appointed under subsection (a) shall submit to the
congressional intelligence committees a report containing--
 `(1) the number of persons applying for a security
clearance who have contacted the ombudsman during the preceding 12
months; and
 `(2) a summary of the concerns, complaints, and
questions received by the ombudsman from persons applying for security
clearances.'.
 (b) Appointment Date- The Director of National Intelligence
shall appoint an ombudsman for intelligence community security
clearances under section 103I(a) of the National Security Act of 1947,
as added by subsection (a), not later than 60 days after the date of
the enactment of this Act.
 (c) Conforming Amendment- The table of contents in the
first section of the National Security Act of 1947 is further amended
by inserting after the item relating to section 103H the following new
item:

`Sec. 103I. Ombudsman for intelligence community security clearances.'.

SEC. 414. SECURITY CLEARANCE RECIPROCITY.
 (a) Audit- The Inspector General of the Intelligence
Community shall conduct an audit of the reciprocity of security
clearances in the intelligence community.
 (b) Report- Not later than 60 days after the date of the
enactment of this Act, the Inspector General of the Intelligence
Community shall submit to the congressional intelligence committees a
report containing the results of the audit conducted under subsection
(a). Such report shall include an assessment of the time required to
obtain a reciprocal security clearance for--
 (1) an employee of an element of the intelligence community detailed to another element of the intelligence community;
 (2) an employee of an element of the intelligence
community seeking permanent employment with another element of the
intelligence community and;
 (3) a contractor seeking permanent employment with an element of the intelligence community.
SEC. 415. REPORT ON INTERNATIONAL TRAFFIC IN ARMS REGULATIONS.
 (a) Report- Not later than February 1, 2009, the Director
of National Intelligence shall submit to the congressional intelligence
committees a report assessing--
 (1) the threat to national security presented by the
efforts of foreign countries to acquire, through espionage, diversion,
or other means, sensitive equipment and technology, and the degree to
which United States export controls (including the International
Traffic in Arms Regulations) are adequate to defeat such efforts; and
 (2) the extent to which United States export controls
are well matched to the scope of the foreign threat such controls are
designed to defeat and whether other means could more successfully
defeat such threats.
 (b) Form- The report under subsection (a) shall be submitted in unclassified form, but may include a classified annex.
 (c) International Traffic in Arms Regulations Defined- The
term `International Traffic in Arms Regulations' means those
regulations contained in parts 120 through 130 of title 22, Code of
Federal Regulations (or successor regulations).
SEC. 416. REPORT ON NUCLEAR TRAFFICKING.
 (a) Report- Not later than February 1, 2009, the Director
of National Intelligence shall submit to the congressional intelligence
committees, the Committee on Armed Services and the Committee on
Foreign Affairs of the House of Representatives, and the Committee on
Armed Services and the Committee on Foreign Relations of the Senate a
report on the illicit trade of nuclear and radiological material and
equipment.
 (b) Contents- The report submitted under subsection (a)
shall include, for a period of time including at least the preceding
three years--
 (1) details of all known or suspected cases of the
illicit sale, transfer, brokering, or transport of nuclear or
radiological material or equipment useful for the production of nuclear
or radiological material or nuclear explosive devices;
 (2) an assessment of the countries that represent the greatest risk of nuclear trafficking activities; and
 (3) a discussion of any dissents, caveats, gaps in
knowledge, or other information that would reduce confidence in the
assessment referred to in paragraph (2).
 (c) Form- The report under subsection (a) may be submitted in classified form, but shall include an unclassified summary.
SEC. 417. STUDY ON REVOKING PENSIONS OF PERSONS WHO COMMIT UNAUTHORIZED DISCLOSURES OF CLASSIFIED INFORMATION.
 (a) Study- The Director of National Intelligence shall
conduct a study on the feasibility of revoking the pensions of
personnel in the intelligence community who commit unauthorized
disclosures of classified information, including whether revoking such
pensions is feasible under existing law or under the administrative
authority of the Director of National Intelligence or any other head of
an element of the intelligence community.
 (b) Report- Not later than 90 days after the date of the
enactment of this Act, the Director of National Intelligence shall
submit to the congressional intelligence committees a report containing
the results of the study conducted under subsection (a).
Subtitle B--Central Intelligence Agency
SEC. 421. REVIEW OF COVERT ACTION PROGRAMS BY INSPECTOR GENERAL OF THE CENTRAL INTELLIGENCE AGENCY.
 (a) In General- Section 503 of the National Security Act of 1947 (50 U.S.C. 413b) is amended by--
 (1) redesignating subsection (e) as subsection (g) and transferring such subsection to the end; and
 (2) by inserting after subsection (d) the following new subsection:
 `(e) Inspector General Audits of Covert Actions-
 `(1) IN GENERAL- Subject to paragraph (2), the
Inspector General of the Central Intelligence Agency shall conduct an
audit of each covert action at least every 3 years. Such audits shall
be conducted subject to the provisions of paragraphs (3) and (4) of
subsection (b) of section 17 of the Central Intelligence Agency Act of
1949 (50 U.S.C. 403q).
 `(2) TERMINATED, SUSPENDED PROGRAMS- The Inspector
General of the Central Intelligence Agency is not required to conduct
an audit under paragraph (1) of a covert action that has been
terminated or suspended if such covert action was terminated or
suspended prior to the last audit of such covert action conducted by
the Inspector General and has not been restarted after the date on
which such audit was completed.
 `(3) REPORT- Not later than 60 days after the
completion of an audit conducted pursuant to paragraph (1), the
Inspector General of the Central Intelligence Agency shall submit to
the congressional intelligence committees a report containing the
results of such audit.'.
 (b) Conforming Amendments- Title V of the National Security Act of 1947 (50 U.S.C. 413 et seq.) is amended--
 (1) in section 501(f) (50 U.S.C. 413(f)), by striking `503(e)' and inserting `503(g)';
 (2) in section 502(a)(1) (50 U.S.C. 413b(a)(1)), by striking `503(e)' and inserting `503(g)'; and
 (3) in section 504(c) (50 U.S.C. 414(c)), by striking `503(e)' and inserting `503(g)'.
SEC. 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. TECHNICAL AMENDMENTS RELATING TO TITLES OF CERTAIN CENTRAL INTELLIGENCE AGENCY POSITIONS.
 Section 17(d)(3)(B)(ii) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403q(d)(3)(B)(ii)) is amended--
 (1) in subclause (I), by striking `Executive Director' and inserting `Associate Deputy Director';
 (2) in subclause (II), by striking `Deputy Director for
Operations' and inserting `Director of the National Clandestine
Service';
 (3) in subclause (III), by striking `Deputy Director for Intelligence' and inserting `Director of Intelligence';
 (4) in subclause (IV), by striking `Deputy Director for Administration' and inserting `Director of Support'; and
 (5) in subclause (V), by striking `Deputy Director for
Science and Technology' and inserting `Director of Science and
Technology'.
SEC. 424. 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)),'.
SEC. 425. PROHIBITION ON THE USE OF PRIVATE CONTRACTORS FOR
INTERROGATIONS INVOLVING PERSONS IN THE CUSTODY OR CONTROL OF THE
CENTRAL INTELLIGENCE AGENCY.
 (a) Prohibition- Notwithstanding any other provision of
law, the Director of the Central Intelligence Agency shall not expend
or obligate funds for payment to any contractor to conduct the
interrogation of a detainee or prisoner in custody or under the
effective control of the Central Intelligence Agency.
 (b) Exception-
 (1) IN GENERAL- The Director of the Central
Intelligence Agency may request, and the Director of National
Intelligence may grant, a written waiver of the requirement under
subsection (a) if the Director of the Central Intelligence Agency
determines that--
 (A) no employee of the Federal Government is--
 (i) capable of performing such interrogation; and
 (ii) available to perform such interrogation; and
 (B) such interrogation is in the national interest of the United States and requires the use of a contractor.
 (2) CLARIFICATION OF APPLICABILITY OF CERTAIN LAWS- Any
contractor conducting an interrogation pursuant to a waiver under
paragraph (1) shall be subject to all laws on the conduct of
interrogations that would apply if an employee of the Federal
Government were conducting the interrogation.
Subtitle C--Defense Intelligence Components
SEC. 431. INTEGRATION OF THE COUNTERINTELLIGENCE FIELD ACTIVITY INTO THE DEFENSE INTELLIGENCE AGENCY.
 (a) Report- Not later than November 1, 2008, the Under
Secretary of Defense for Intelligence shall submit to the congressional
intelligence and armed services committees a report outlining the
process by which the Counterintelligence Field Activity is to be
integrated into the Defense Intelligence Agency. Such report shall
include--
 (1) a description of the nature of any law enforcement authorities to be delegated to the Defense Intelligence Agency;
 (2) the authority under which the delegation of authority referred to in paragraph (1) would occur; and
 (3) the guidelines for the implementation of such law enforcement authorities.
 (b) Congressional Intelligence and Armed Services
Committees- In this section, the term `congressional int