Index

Congressional Record: December 7, 2004 (House)
Page H11030-H11039



  CONFERENCE REPORT ON H.R. 4548, INTELLIGENCE AUTHORIZATION ACT FOR
                            FISCAL YEAR 2005

  Mr. HOEKSTRA submitted the following conference report and statement
on the bill (H.R. 4548) to authorize appropriations for fiscal year
2005 for intelligence and intelligence-related activities of the United
States Government, the Community Management Account, and the Central
Intelligence Agency Retirement and Disability System, and for other
purposes:

                  Conference Report (H. Rept. 108-798)

       The committee of conference on the disagreeing votes of the
     two Houses on the amendment of the Senate to the bill (H.R.
     4548), to authorize appropriations for fiscal year 2005 for
     intelligence and intelligence-related activities of the
     United States Government, the Community Management Account,
     and the Central Intelligence Agency Retirement and Disability
     System, and for other purposes, having met, after full and
     free conference, have agreed to recommend and do recommend to
     their respective Houses as follows:
       That the House recede from its disagreement to the
     amendment of the Senate and agree to the same with an
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This title may be cited as the
     ``Intelligence Authorization Act for Fiscal Year 2005''.
       (b) Table of Contents.--The table of contents for this Act
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Incorporation of reporting requirements.
Sec. 106. Specific authorization of funds for intelligence or
              intelligence-related activities for which fiscal year
              2004 appropriations exceed amounts authorized.
Sec. 107. Preparation and submittal of reports, reviews, studies, and
              plans relating to intelligence activities of Department
              of Defense and Department of Energy.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                     TITLE III--GENERAL PROVISIONS

Sec. 301. Increase in employee compensation and benefits authorized by
              law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Chief Information Officer.
Sec. 304. Improvement of authorities relating to National Virtual
              Translation Center.
Sec. 305. Intelligence assessment on sanctuaries for terrorists.
Sec. 306. Sense of Congress on availability to Congress of information
              on Iraq Oil-For-Food Program of the United Nations.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Permanent extension of Central Intelligence Agency voluntary
              separation incentive program.
Sec. 402. Intelligence operations and cover enhancement authority.

          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

Sec. 501. National Security Agency Emerging Technologies Panel.
Sec. 502. Use of funds for counterdrug and counterterrorism activities
              for Colombia.

                          TITLE VI--EDUCATION

            Subtitle A--National Security Education Program

Sec. 601. Annual funding.
Sec. 602. Improvements to National Flagship Language Initiative.
Sec. 603. Scholarship program for English language studies for heritage
              community citizens of the United States within National
              Security Education Program.

  Subtitle B--Improvement in Intelligence Community Foreign Language
                                 Skills

Sec. 611. Foreign language proficiency for certain senior level
              positions in the Central Intelligence Agency.
Sec. 612. Advancement of foreign languages critical to the intelligence
              community.
Sec. 613. Pilot project on Civilian Linguist Reserve Corps.
Sec. 614. Report on status, consolidation, and improvement of
              intelligence education programs.
Sec. 615. Report on recruitment and retention of qualified instructors
              of the Defense Language Institute.

                      TITLE VII--TERRORISM MATTERS

Sec. 701. Information on terrorist groups that seek weapons of mass
              destruction and groups that have been designated as
              foreign terrorist organizations.

                       TITLE VIII--OTHER MATTERS

Sec. 801. Effective date.
Sec. 802. Construction of references to Director of Central
              Intelligence.
Sec. 803. Savings provisions relating to discharge of certain functions
              and authorities.
                    TITLE I--INTELLIGENCE ACTIVITIES

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal
     year 2005 for the conduct of the intelligence and
     intelligence-related activities of the following elements of
     the United States Government:
       (1) The Central Intelligence Agency.
       (2) The Department of Defense.
       (3) The Defense Intelligence Agency.
       (4) The National Security Agency.
       (5) The Department of the Army, the Department of the Navy,
     and the Department of the Air Force.
       (6) The Department of State.
       (7) The Department of the Treasury.
       (8) The Department of Energy.
       (9) The Department of Justice.
       (10) The Federal Bureau of Investigation.
       (11) The National Reconnaissance Office.
       (12) The National Geospatial-Intelligence Agency.
       (13) The Coast Guard.
       (14) The Department of Homeland Security.

     SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

       (a) Specifications of Amounts and Personnel Ceilings.--The
     amounts authorized to be appropriated under section 101, and
     the authorized personnel ceilings as of September 30, 2005,
     for the conduct of the intelligence and intelligence-related
     activities of the elements listed in such section, are those
     specified in the classified Schedule of Authorizations
     prepared to accompany the conference report on the bill H.R.
     4548 of the One Hundred Eighth Congress.
       (b) Availability of Classified Schedule of
     Authorizations.--The Schedule of Authorizations shall be made
     available to the Committees on Appropriations of the Senate
     and House of Representatives and to the President. The
     President shall provide for suitable distribution of the
     Schedule, or of appropriate portions of the Schedule, within
     the executive branch.

     SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

       (a) Authority for Adjustments.--With the approval of the
     Director of the Office of Management and Budget, the Director
     of National Intelligence may authorize employment of civilian
     personnel in excess of the number authorized for fiscal year
     2005 under section 102 when the Director of National
     Intelligence determines that such action is necessary to the
     performance of important intelligence functions, except that
     the number of personnel employed in excess of the number
     authorized under such section may not, for any element of the
     intelligence community, exceed 2 percent of the number of
     civilian personnel authorized under such section for such
     element.
       (b) Notice to Intelligence Committees.--The Director of
     National Intelligence shall promptly notify the Select
     Committee on Intelligence of the Senate and the Permanent
     Select Committee on Intelligence of the House of
     Representatives whenever the Director exercises the authority
     granted by this section.

     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 2005 the sum of $310,466,000. 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, 2006.
       (b) Authorized Personnel Levels.--The elements within the
     Intelligence Community Management Account of the Director of
     National Intelligence are authorized 310 full-time personnel

[[Page H11031]]

     as of September 30, 2005. Personnel serving in such elements
     may be permanent employees of the Intelligence Community
     Management Account or personnel detailed from other elements
     of the United States Government.
       (c) Classified Authorizations.--
       (1) Authorization of appropriations.--In addition to
     amounts authorized to be appropriated for the Intelligence
     Community Management Account by subsection (a), there are
     also authorized to be appropriated for the Intelligence
     Community Management Account for fiscal year 2005 such
     additional amounts as are specified in the classified
     Schedule of Authorizations referred to in section 102(a).
     Such additional amounts for research and development shall
     remain available until September 30, 2006.
       (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,
     2005, there are also authorized such additional personnel for
     such elements as of that date as are specified in the
     classified Schedule of Authorizations.
       (d) Reimbursement.--Except as provided in section 113 of
     the National Security Act of 1947 (50 U.S.C. 404h), during
     fiscal year 2005 any officer or employee of the United States
     or a member of the Armed Forces who is detailed to the staff
     of the Intelligence Community Management Account from another
     element of the United States Government shall be detailed on
     a reimbursable basis, except that any such officer, employee,
     or member may be detailed on a nonreimbursable basis for a
     period of less than one year for the performance of temporary
     functions as required by the Director of National
     Intelligence.
       (e) National Drug Intelligence Center.--
       (1) In general.--Of the amount authorized to be
     appropriated in subsection (a), $42,322,000 shall be
     available for the National Drug Intelligence Center. Within
     such amount, funds provided for research, development,
     testing, and evaluation purposes shall remain available until
     September 30, 2006, and funds provided for procurement
     purposes shall remain available until September 30, 2007.
       (2) Transfer of funds.--The Director of National
     Intelligence shall transfer to the Attorney General funds
     available for the National Drug Intelligence Center under
     paragraph (1). The Attorney General shall utilize funds so
     transferred for the activities of the National Drug
     Intelligence Center.
       (3) Limitation.--Amounts available for the National Drug
     Intelligence Center may not be used in contravention of the
     provisions of section 103(d)(1) of the National Security Act
     of 1947 (50 U.S.C. 403-3(d)(1)).
       (4) Authority.--Notwithstanding any other provision of law,
     the Attorney General shall retain full authority over the
     operations of the National Drug Intelligence Center.

     SEC. 105. INCORPORATION OF REPORTING REQUIREMENTS.

       (a) In General.--Each requirement to submit a report to the
     congressional intelligence committees that is included in the
     joint explanatory statement to accompany the conference
     report on the bill H.R. 4548 of the One Hundred Eighth
     Congress, or in the classified annex to this Act, is hereby
     incorporated into this Act, and is hereby made a requirement
     in law.
       (b) Congressional Intelligence Committees Defined.--In this
     section, the term ``congressional intelligence committees''
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the
     House of Representatives.

     SEC. 106. SPECIFIC AUTHORIZATION OF FUNDS FOR INTELLIGENCE OR
                   INTELLIGENCE-RELATED ACTIVITIES FOR WHICH
                   FISCAL YEAR 2004 APPROPRIATIONS EXCEED AMOUNTS
                   AUTHORIZED.

       Funds appropriated for an intelligence or intelligence-
     related activity of the United States Government for fiscal
     year 2004 in excess of the amount specified for such activity
     in the classified Schedule of Authorizations prepared to
     accompany the Intelligence Authorization Act for Fiscal Year
     2004 (Public Law 108-177; 117 Stat. 2599) shall be deemed to
     be specifically authorized by Congress for purposes of
     section 504(a)(3) of the National Security Act of 1947 (50
     U.S.C. 414(a)(3)). Such funds shall remain available until
     September 30, 2005.

     SEC. 107. PREPARATION AND SUBMITTAL OF REPORTS, REVIEWS,
                   STUDIES, AND PLANS RELATING TO INTELLIGENCE
                   ACTIVITIES OF DEPARTMENT OF DEFENSE AND
                   DEPARTMENT OF ENERGY.

       (a) Consultation in Preparation.--(1) The Director of
     National Intelligence shall ensure that any report, review,
     study, or plan required to be prepared or conducted by a
     provision of this Act, including a provision of the
     classified Schedule of Authorizations referred to in section
     102(a) or the classified annex to this Act, that involves the
     intelligence or intelligence-related activities of the
     Department of Defense or the Department of Energy is prepared
     or conducted in consultation with the Secretary of Defense or
     the Secretary of Energy, as appropriate.
       (2) The Secretary of Defense or the Secretary of Energy may
     carry out any consultation required by this subsection
     through an official of the Department of Defense or the
     Department of Energy, as the case may be, designated by such
     Secretary for that purpose.
       (b) Submittal.--Any report, review, study, or plan referred
     to in subsection (a) shall be submitted, in addition to any
     other committee of Congress specified for submittal in the
     provision concerned, to the following committees or
     subcommittees of Congress, as appropriate:
       (1) The Committee on Armed Services, the Subcommittee on
     Defense of the Committee on Appropriations, and the Select
     Committee on Intelligence of the Senate.
       (2) The Committee on Armed Services, the Subcommittee on
     Defense of the Committee on Appropriations, and the Permanent
     Select Committee on Intelligence of the House of
     Representatives.
 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 2005 the sum of $239,400,000.
                     TITLE III--GENERAL PROVISIONS

     SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS
                   AUTHORIZED BY LAW.

       Appropriations authorized by this Act for salary, pay,
     retirement, and other benefits for Federal employees may be
     increased by such additional or supplemental amounts as may
     be necessary for increases in such compensation or benefits
     authorized by law.

     SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

     SEC. 303. CHIEF INFORMATION OFFICER.

       (a) Establishment.--(1) Title I of the National Security
     Act of 1947, as amended by section 1011(a) of the National
     Security Intelligence Reform Act of 2004, is further amended
     by inserting after section 103F the following new section:


                      ``chief information officer

       ``Sec. 103G. (a) Chief Information Officer.--To assist the
     Director of National Intelligence in carrying out the
     responsibilities of the Director under this Act and other
     applicable provisions of law, there shall be within the
     Office of the Director of National Intelligence a Chief
     Information Officer who shall be appointed by the President,
     by and with the advice and consent of the Senate.
       ``(b) Chief Information Officer of Intelligence
     Community.--The Chief Information Officer shall serve as the
     chief information officer of the intelligence community.
       ``(c) Duties and Responsibilities.--Subject to the
     direction of the Director of National Intelligence, the Chief
     Information Officer shall--
       ``(1) manage activities relating to the information
     technology infrastructure and enterprise architecture
     requirements of the intelligence community;
       ``(2) have procurement approval authority over all
     information technology items related to the enterprise
     architectures of all intelligence community components;
       ``(3) direct and manage all information technology-related
     procurement for the intelligence community; and
       ``(4) ensure that all expenditures for information
     technology and research and development activities are
     consistent with the intelligence community enterprise
     architecture and the strategy of the Director for such
     architecture.
       ``(d) Prohibition on Simultaneous Service as Other Chief
     Information Officer.--An individual serving in the position
     of Chief Information Officer may not, while so serving, serve
     as the chief information officer of any other department or
     agency, or component thereof, of the United States
     Government.''.
       (2) The table of contents in the first section of the
     National Security Act of 1947, as amended by the National
     Security Intelligence Reform Act of 2004, is further amended
     by inserting after the item relating to section 103F the
     following new item:

``Sec. 103G. Chief Information Officer.''.

       (b) Effective Date.--The amendments made by this section
     shall take effect on the effective date of the National
     Security Intelligence Reform Act of 2004, as provided in
     section 801 of this Act.

     SEC. 304. IMPROVEMENT OF AUTHORITIES RELATING TO NATIONAL
                   VIRTUAL TRANSLATION CENTER.

       (a) Function of Center.--Section 313 of the Intelligence
     Authorization Act for Fiscal Year 2003 (Public Law 107-306;
     116 Stat. 2391; 50 U.S.C. 404n) is amended--
       (1) by redesignating subsections (c) and (d) as subsections
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following new
     subsection (c):
       ``(c) Function.--The element established under subsection
     (a) shall provide for timely and accurate translations of
     foreign intelligence for all elements of the intelligence
     community through--
       ``(1) the integration of the translation capabilities of
     the intelligence community;
       ``(2) the use of remote-connection capabilities; and
       ``(3) the use of such other capabilities as the Director
     considers appropriate.''.
       (b) Location of Discharge of Function.--Subsection (d) of
     such section, as so redesignated, is amended by adding at the
     end the following new paragraph:
       ``(3) Personnel of the element established under subsection
     (a) may carry out the duties and functions of the element at
     any location that--
       ``(A) has been certified as a secure facility by a
     department or agency of the United States Government; or
       ``(B) the Director has otherwise determined to be
     appropriate for such duties and functions''.

     SEC. 305. INTELLIGENCE ASSESSMENT ON SANCTUARIES FOR
                   TERRORISTS.

       (a) Assessment Required.--Not later than the date specified
     in subsection (b), the Director of National Intelligence
     shall submit to Congress

[[Page H11032]]

     an intelligence assessment that identifies and describes each
     country or region that is a sanctuary for terrorists or
     terrorist organizations. The assessment shall be based on
     current all-source intelligence.
       (b) Submittal Date.--The date of the submittal of the
     intelligence assessment required by subsection (a) shall be
     the earlier of--
       (1) the date that is six months after the date of the
     enactment of this Act; or
       (2) June 1, 2005.

     SEC. 306. SENSE OF CONGRESS ON AVAILABILITY TO CONGRESS OF
                   INFORMATION ON IRAQ OIL-FOR-FOOD PROGRAM OF THE
                   UNITED NATIONS.

       It is the sense of Congress that the head of each element
     of the intelligence community, including the Central
     Intelligence Agency, the Federal Bureau of Investigation, and
     the intelligence elements of the Department of Defense, the
     Department of State, and the Department of the Treasury
     should make available to any committee of Congress with
     jurisdiction over matters relating to the Office of the Iraq
     Oil-for-Food Program of the United Nations, upon the request
     of such committee, any information and documents in the
     possession or control of such element in connection with any
     investigation of that Office by such committee.
                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     SEC. 401. PERMANENT EXTENSION OF CENTRAL INTELLIGENCE AGENCY
                   VOLUNTARY SEPARATION INCENTIVE PROGRAM.

       (a) In General.--Section 2 of the Central Intelligence
     Agency Voluntary Separation Pay Act (50 U.S.C. 403-4 note) is
     amended--
       (1) by striking subsection (f); and
       (2) by redesignating subsections (g) and (h) as subsections
     (f) and (g), respectively.
       (b) Termination of Funds Remittance Requirement.--(1)
     Section 2 of such Act is further amended by striking
     subsection (i).
       (2) Section 4(a)(2)(B)(ii) of the Federal Workforce
     Restructuring Act of 1994 (5 U.S.C. 8331 note) is amended by
     striking ``, or section 2 of the Central Intelligence Agency
     Voluntary Separation Pay Act (Public Law 103-36; 107 Stat.
     104)''.

     SEC. 402. INTELLIGENCE OPERATIONS AND COVER ENHANCEMENT
                   AUTHORITY.

       The Central Intelligence Agency Act of 1949 (50 U.S.C. 403a
     et seq.) is amended by adding at the end the following:


       ``intelligence operations and cover enhancement authority

       ``Sec. 23. (a) Definitions.--In this section--
       ``(1) the term `designated employee' means an employee
     designated by the Director of the Central Intelligence Agency
     under subsection (b); and
       ``(2) the term `Federal retirement system' includes the
     Central Intelligence Agency Retirement and Disability System,
     and the Federal Employees' Retirement System (including the
     Thrift Savings Plan).
       ``(b) In General.--
       ``(1) Authority.--Notwithstanding any other provision of
     law, the Director of the Central Intelligence Agency may
     exercise the authorities under this section in order to--
       ``(A) protect from unauthorized disclosure--
       ``(i) intelligence operations;
       ``(ii) the identities of undercover intelligence officers;
       ``(iii) intelligence sources and methods; or
       ``(iv) intelligence cover mechanisms; or
       ``(B) meet the special requirements of work related to
     collection of foreign intelligence or other authorized
     activities of the Agency.
       ``(2) Designation of employees.--The Director of the
     Central Intelligence Agency may designate any employee of the
     Agency who is under nonofficial cover to be an employee to
     whom this section applies. Such designation may be made with
     respect to any or all authorities exercised under this
     section.
       ``(c) Compensation.--The Director of the Central
     Intelligence Agency may pay a designated employee salary,
     allowances, and other benefits in an amount and in a manner
     consistent with the nonofficial cover of that employee,
     without regard to any limitation that is otherwise applicable
     to a Federal employee. A designated employee may accept,
     utilize, and, to the extent authorized by regulations
     prescribed under subsection (i), retain any salary,
     allowances, and other benefits provided under this section.
       ``(d) Retirement Benefits.--
       ``(1) In general.--The Director of the Central Intelligence
     Agency may establish and administer a nonofficial cover
     employee retirement system for designated employees (and the
     spouse, former spouses, and survivors of such designated
     employees). A designated employee may not participate in the
     retirement system established under this paragraph and
     another Federal retirement system at the same time.
       ``(2) Conversion to other federal retirement system.--
       ``(A) In general.--A designated employee participating in
     the retirement system established under paragraph (1) may
     convert to coverage under the Federal retirement system which
     would otherwise apply to that employee at any appropriate
     time determined by the Director of the Central Intelligence
     Agency (including at the time of separation of service by
     reason of retirement), if the Director of the Central
     Intelligence Agency determines that the employee's
     participation in the retirement system established under this
     subsection is no longer necessary to protect from
     unauthorized disclosure--
       ``(i) intelligence operations;
       ``(ii) the identities of undercover intelligence officers;
       ``(iii) intelligence sources and methods; or
       ``(iv) intelligence cover mechanisms.
       ``(B) Conversion treatment.--Upon a conversion under this
     paragraph--
       ``(i) all periods of service under the retirement system
     established under this subsection shall be deemed periods of
     creditable service under the applicable Federal retirement
     system;
       ``(ii) the Director of the Central Intelligence Agency
     shall transmit an amount for deposit in any applicable fund
     of that Federal retirement system that--

       ``(I) is necessary to cover all employee and agency
     contributions including--

       ``(aa) interest as determined by the head of the agency
     administering the Federal retirement system into which the
     employee is converting; or
       ``(bb) in the case of an employee converting into the
     Federal Employees' Retirement System, interest as determined
     under section 8334(e) of title 5, United States Code; and

       ``(II) ensures that such conversion does not result in any
     unfunded liability to that fund; and

       ``(iii) in the case of a designated employee who
     participated in an employee investment retirement system
     established under paragraph (1) and is converted to coverage
     under subchapter III of chapter 84 of title 5, United States
     Code, the Director of the Central Intelligence Agency may
     transmit any or all amounts of that designated employee in
     that employee investment retirement system (or similar part
     of that retirement system) to the Thrift Savings Fund.
       ``(C) Transmitted amounts.--
       ``(i) In general.--Amounts described under subparagraph
     (B)(ii) shall be paid from the fund or appropriation used to
     pay the designated employee.
       ``(ii) Offset.--The Director of the Central Intelligence
     Agency may use amounts contributed by the designated employee
     to a retirement system established under paragraph (1) to
     offset amounts paid under clause (i).
       ``(D) Records.--The Director of the Central Intelligence
     Agency shall transmit all necessary records relating to a
     designated employee who converts to a Federal retirement
     system under this paragraph (including records relating to
     periods of service which are deemed to be periods of
     creditable service under subparagraph (B)) to the head of the
     agency administering that Federal retirement system.
       ``(e) Health Insurance Benefits.--
       ``(1) In general.--The Director of the Central Intelligence
     Agency may establish and administer a nonofficial cover
     employee health insurance program for designated employees
     (and the family of such designated employees). A designated
     employee may not participate in the health insurance program
     established under this paragraph and the program under
     chapter 89 of title 5, United States Code, at the same time.
       ``(2) Conversion to federal employees health benefits
     program.--
       ``(A) In general.--A designated employee participating in
     the health insurance program established under paragraph (1)
     may convert to coverage under the program under chapter 89 of
     title 5, United States Code, at any appropriate time
     determined by the Director of the Central Intelligence Agency
     (including at the time of separation of service by reason of
     retirement), if the Director of the Central Intelligence
     Agency determines that the employee's participation in the
     health insurance program established under this subsection is
     no longer necessary to protect from unauthorized disclosure--
       ``(i) intelligence operations;
       ``(ii) the identities of undercover intelligence officers;
       ``(iii) intelligence sources and methods; or
       ``(iv) intelligence cover mechanisms.
       ``(B) Conversion treatment.--Upon a conversion under this
     paragraph--
       ``(i) the employee (and family, if applicable) shall be
     entitled to immediate enrollment and coverage under chapter
     89 of title 5, United States Code;
       ``(ii) any requirement of prior enrollment in a health
     benefits plan under chapter 89 of that title for continuation
     of coverage purposes shall not apply;
       ``(iii) the employee shall be deemed to have had coverage
     under chapter 89 of that title from the first opportunity to
     enroll for purposes of continuing coverage as an annuitant;
     and
       ``(iv) the Director of the Central Intelligence Agency
     shall transmit an amount for deposit in the Employees' Health
     Benefits Fund that is necessary to cover any costs of such
     conversion.
       ``(C) Transmitted amounts.--Any amount described under
     subparagraph (B)(iv) shall be paid from the fund or
     appropriation used to pay the designated employee.
       ``(f) Life Insurance Benefits.--
       ``(1) In general.--The Director of the Central Intelligence
     Agency may establish and administer a nonofficial cover
     employee life insurance program for designated employees (and
     the family of such designated employees). A designated
     employee may not participate in the life insurance program
     established under this paragraph and the program under
     chapter 87 of title 5, United States Code, at the same time.
       ``(2) Conversion to federal employees group life insurance
     program.--
       ``(A) In general.--A designated employee participating in
     the life insurance program established under paragraph (1)
     may convert to coverage under the program under chapter 87 of
     title 5, United States Code, at any appropriate time
     determined by the Director of the Central Intelligence Agency
     (including at the time of separation of service by reason of
     retirement), if the Director of the Central Intelligence
     Agency determines that the employee's participation in the
     life insurance program established under this subsection is
     no longer necessary to protect from unauthorized disclosure--
       ``(i) intelligence operations;
       ``(ii) the identities of undercover intelligence officers;
       ``(iii) intelligence sources and methods; or
       ``(iv) intelligence cover mechanisms.
       ``(B) Conversion treatment.--Upon a conversion under this
     paragraph--

[[Page H11033]]

       ``(i) the employee (and family, if applicable) shall be
     entitled to immediate coverage under chapter 87 of title 5,
     United States Code;
       ``(ii) any requirement of prior enrollment in a life
     insurance program under chapter 87 of that title for
     continuation of coverage purposes shall not apply;
       ``(iii) the employee shall be deemed to have had coverage
     under chapter 87 of that title for the full period of service
     during which the employee would have been entitled to be
     insured for purposes of continuing coverage as an annuitant;
     and
       ``(iv) the Director of the Central Intelligence Agency
     shall transmit an amount for deposit in the Employees' Life
     Insurance Fund that is necessary to cover any costs of such
     conversion.
       ``(C) Transmitted amounts.--Any amount described under
     subparagraph (B)(iv) shall be paid from the fund or
     appropriation used to pay the designated employee.
       ``(g) Exemption From Certain Requirements.--The Director of
     the Central Intelligence Agency may exempt a designated
     employee from mandatory compliance with any Federal
     regulation, rule, standardized administrative policy,
     process, or procedure that the Director of the Central
     Intelligence Agency determines--
       ``(1) would be inconsistent with the nonofficial cover of
     that employee; and
       ``(2) could expose that employee to detection as a Federal
     employee.
       ``(h) Taxation and Social Security.--
       ``(1) In general.--Notwithstanding any other provision of
     law, a designated employee--
       ``(A) shall file a Federal or State tax return as if that
     employee is not a Federal employee and may claim and receive
     the benefit of any exclusion, deduction, tax credit, or other
     tax treatment that would otherwise apply if that employee was
     not a Federal employee, if the Director of the Central
     Intelligence Agency determines that taking any action under
     this paragraph is necessary to--
       ``(i) protect from unauthorized disclosure--

       ``(I) intelligence operations;
       ``(II) the identities of undercover intelligence officers;
       ``(III) intelligence sources and methods; or
       ``(IV) intelligence cover mechanisms; and

       ``(ii) meet the special requirements of work related to
     collection of foreign intelligence or other authorized
     activities of the Agency; and
       ``(B) shall receive social security benefits based on the
     social security contributions made.
       ``(2) Internal revenue service review.--The Director of the
     Central Intelligence Agency shall establish procedures to
     carry out this subsection. The procedures shall be subject to
     periodic review by the Internal Revenue Service.
       ``(i) Regulations.--The Director of the Central
     Intelligence Agency shall prescribe regulations to carry out
     this section. The regulations shall ensure that the
     combination of salary, allowances, and benefits that an
     employee designated under this section may retain does not
     significantly exceed, except to the extent determined by the
     Director of the Central Intelligence Agency to be necessary
     to exercise the authority in subsection (b), the combination
     of salary, allowances, and benefits otherwise received by
     Federal employees not designated under this section.
       ``(j) Finality of Decisions.--Any determinations authorized
     by this section to be made by the Director of the Central
     Intelligence Agency or the Director's designee shall be final
     and conclusive and shall not be subject to review by any
     court.
       ``(k) Subsequently Enacted Laws.--No law enacted after the
     effective date of this section shall affect the authorities
     and provisions of this section unless such law specifically
     refers to this section.''.
          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

     SEC. 501. NATIONAL SECURITY AGENCY EMERGING TECHNOLOGIES
                   PANEL.

       The National Security Agency Act of 1959 (50 U.S.C. 402
     note) is amended by adding at the end the following new
     section:
       ``Sec. 19. (a) There is established the National Security
     Agency Emerging Technologies Panel. The Panel is a standing
     panel of the National Security Agency. The Panel shall be
     appointed by, and shall report directly to, the Director of
     the National Security Agency.
       ``(b) The Panel shall study and assess, and periodically
     advise the Director on, the research, development, and
     application of existing and emerging science and technology
     advances, advances in encryption, and other topics.
       ``(c) The Federal Advisory Committee Act (5 U.S.C. App.)
     shall not apply with respect to the Panel.''.

     SEC. 502. USE OF FUNDS FOR COUNTERDRUG AND COUNTERTERRORISM
                   ACTIVITIES FOR COLOMBIA.

       (a) Authority.--Funds designated for intelligence or
     intelligence-related purposes for assistance to the
     Government of Colombia for counterdrug activities for fiscal
     year 2005 or 2006, and any unobligated funds available to any
     element of the intelligence community for such activities for
     a prior fiscal year, shall be available--
       (1) to support a unified campaign by the Government of
     Colombia against narcotics trafficking and against activities
     by organizations designated as terrorist organizations (such
     as the Revolutionary Armed Forces of Colombia (FARC), the
     National Liberation Army (ELN), and the United Self-Defense
     Forces of Colombia (AUC)); and
       (2) to take actions to protect human health and welfare in
     emergency circumstances, including the undertaking of rescue
     operations.
       (b) Applicability of Certain Laws and Limitations.--The use
     of funds pursuant to the authority in subsection (a) shall be
     subject to the following:
       (1) Section 556, 567, and 568 of the Foreign Operations,
     Export Financing, and Related Programs Appropriations Act,
     2002 (Public Law 107-115; 115 Stat. 2160, 2165, and 2166).
       (2) Section 8076 of the Department of Defense
     Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 988).
       (3) The numerical limitations on the number of United
     States military personnel and United States individual
     civilian contractors contained in section 1021(c) of the
     Ronald W. Reagan National Defense Authorization Act for
     Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2042).
       (c) Limitation on Participation of United States
     Personnel.--No United States Armed Forces personnel or United
     States civilian contractor employed by the United States
     Armed Forces may participate in any combat operation in
     connection with assistance made available under this section,
     except for the purpose of acting in self defense or during
     the course of search and rescue operations for United States
     citizens.
                          TITLE VI--EDUCATION
            Subtitle A--National Security Education Program

     SEC. 601. ANNUAL FUNDING.

       (a) In General.--Section 810 of the David L. Boren National
     Security Education Act of 1991 (50 U.S.C. 1910) is amended by
     adding at the end the following new subsection:
       ``(c) Funding From Intelligence Community Management
     Account for Fiscal Years Beginning With Fiscal Year 2005.--In
     addition to amounts that may be made available to the
     Secretary under the Fund for a fiscal year, the Director of
     National Intelligence shall transfer to the Secretary from
     amounts appropriated for the Intelligence Community
     Management Account for each fiscal year, beginning with
     fiscal year 2005, $8,000,000 to carry out the scholarship,
     fellowship, and grant programs under subparagraphs (A), (B),
     and (C), respectively, of section 802(a)(1).''.
       (b) Conforming Amendment.--Section 802(a)(2) of that Act
     (50 U.S.C. 1902(a)(2)) is amended in the matter preceding
     subparagraph (A) by inserting ``or from a transfer under
     section 810(c)'' after ``National Security Education Trust
     Fund''.

     SEC. 602. IMPROVEMENTS TO NATIONAL FLAGSHIP LANGUAGE
                   INITIATIVE.

       (a) Requirement for Employment Agreements.--(1) Section
     802(i) of the David L. Boren National Security Education Act
     of 1991 (50 U.S.C. 1902(i)) is amended by adding at the end
     the following new paragraphs:
       ``(5) An undergraduate or graduate student who participates
     in training in a program under paragraph (1) and has not
     already entered into a service agreement under subsection (b)
     shall enter into a service agreement under subsection (b)
     applicable to an undergraduate or graduate student, as the
     case may be, with respect to participation in such training
     in a program under paragraph (1).
       ``(6)(A) An employee of a department or agency of the
     Federal Government who participates in training in a program
     under paragraph (1) shall agree in writing--
       ``(i) to continue in the service of the department or
     agency of the Federal Government employing the employee for
     the period of such training;
       ``(ii) to continue in the service of such department or
     agency, following completion by the employee of such
     training, for a period of two years for each year, or part of
     the year, of such training;
       ``(iii) if, before the completion by the employee of such
     training, the employment of the employee is terminated by
     such department or agency due to misconduct by the employee,
     or by the employee voluntarily, to reimburse the United
     States for the total cost of such training (excluding the
     employee's pay and allowances) provided to the employee; and
       ``(iv) if, after the completion by the employee of such
     training but before the completion by the employee of the
     period of service required by clause (ii), the employment of
     the employee by such department or agency is terminated
     either by such department or agency due to misconduct by the
     employee, or by the employee voluntarily, to reimburse the
     United States in an amount that bears the same ratio to the
     total cost of such training (excluding the employee's pay and
     allowances) provided to the employee as the unserved portion
     of such period of service bears to the total period of
     service required by clause (ii).
       ``(C) Subject to subparagraph (D), the obligation to
     reimburse the United States under an agreement under
     subparagraph (A) is for all purposes a debt owing the United
     States.
       ``(D) The head of the element of the intelligence community
     concerned may release an employee, in whole or in part, from
     the obligation to reimburse the United States under an
     agreement under subparagraph (A) when, in the discretion of
     the head of the element, the head of the element determines
     that equity or the interests of the United States so
     require.''.
       (2) The amendment made by paragraph (1) shall apply to
     training under section 802(i) of the David L. Boren National
     Security Act of 1991 that begins on or after the date that is
     90 days after the date of the enactment of this Act.
       (b) Increase in Annual Funding.--Section 811 of that Act
     (50 U.S.C. 1911) is amended by striking subsection (b) and
     inserting the following new subsections:
       ``(b) Funding From Intelligence Community Management
     Account for Fiscal Years Beginning With Fiscal Year 2005.--In
     addition to amounts that may be made available to the
     Secretary under the Fund for a fiscal year, the Director of
     National Intelligence shall transfer to the Secretary from
     amounts appropriated

[[Page H11034]]

     for the Intelligence Community Management Account for each
     fiscal year, beginning with fiscal year 2005, $6,000,000 to
     carry out the grant program for the National Flagship
     Language Initiative under section 802(a)(1)(D).
       ``(c) Availability of Appropriated Funds.--Amounts made
     available under this section shall remain available until
     expended.''.
       (c) Increase in Number of Participating Educational
     Institutions.--The Secretary of Defense shall take such
     actions as the Secretary considers appropriate to increase
     the number of qualified educational institutions that receive
     grants under the National Flagship Language Initiative under
     section 802(i) of the David L. Boren National Security
     Education Act of 1991 to establish, operate, or improve
     activities designed to train students in programs in a range
     of disciplines to achieve advanced levels of proficiency in
     those foreign languages that the Secretary identifies as
     being the most critical to the national security of the
     United States.
       (d) Clarification of Authority to Support Studies Abroad.--
     Educational institutions that receive grants under the
     National Flagship Language Initiative may support students
     who pursue total immersion foreign language studies overseas
     of foreign languages that are critical to the national
     security of the United States.

     SEC. 603. SCHOLARSHIP PROGRAM FOR ENGLISH LANGUAGE STUDIES
                   FOR HERITAGE COMMUNITY CITIZENS OF THE UNITED
                   STATES WITHIN NATIONAL SECURITY EDUCATION
                   PROGRAM.

       (a) Scholarship Program.--(1) Subsection (a)(1) of section
     802 of the David L. Boren National Security Education Act of
     1991 (50 U.S.C. 1902) is amended--
       (A) by striking ``and'' at the end of subparagraph (C);
       (B) by striking the period at the end of subparagraph (D)
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(E) awarding scholarships to students who--
       ``(i) are United States citizens who--

       ``(I) are native speakers (referred to as `heritage
     community citizens') of a foreign language that is identified
     as critical to the national security interests of the United
     States who should be actively recruited for employment by
     Federal security agencies with a need for linguists; and
       ``(II) are not proficient at a professional level in the
     English language with respect to reading, writing, and other
     skills required to carry out the national security interests
     of the United States, as determined by the Secretary,

     to enable such students to pursue English language studies at
     an institution of higher education of the United States to
     attain proficiency in those skills; and
       ``(ii) enter into an agreement to work in a position in a
     similar manner (as determined by the Secretary) as agreements
     entered into pursuant to subsection (b)(2)(A).''.
       (2) The matter following subsection (a)(2) of such section
     is amended--
       (A) in the first sentence, by inserting ``or for the
     scholarship program under paragraph (1)(E)'' after ``under
     paragraph (1)(D) for the National Flagship Language
     Initiative described in subsection (i)''; and
       (B) by adding at the end the following: ``For the
     authorization of appropriations for the scholarship program
     under paragraph (1)(E), see section 812.''.
       (3) Section 803(d)(4)(E) of such Act (50 U.S.C.
     1903(d)(4)(E)) is amended by inserting before the period the
     following: ``and section 802(a)(1)(E) (relating to the
     scholarship program for advanced English language studies by
     heritage community citizens)''.
       (b) Funding.--The David L. Boren National Security
     Education Act of 1991 (50 U.S.C. 1901 et seq.) is amended by
     adding at the end the following new section:

     ``SEC. 812. FUNDING FOR SCHOLARSHIP PROGRAM FOR ADVANCED
                   ENGLISH LANGUAGE STUDIES BY HERITAGE COMMUNITY
                   CITIZENS.

       ``(a) Funding From Intelligence Community Management
     Account.--In addition to amounts that may be made available
     to the Secretary under the Fund for a fiscal year, the
     Director of National Intelligence shall transfer to the
     Secretary from amounts appropriated for the Intelligence
     Community Management Account for each fiscal year, beginning
     with fiscal year 2005, $2,000,000 to carry out the
     scholarship programs for English language studies by certain
     heritage community citizens under section 802(a)(1)(E).
       ``(b) Availability of Funds.--Amounts made available under
     subsection (a) shall remain available until expended.''.
  Subtitle B--Improvement in Intelligence Community Foreign Language
                                 Skills

     SEC. 611. FOREIGN LANGUAGE PROFICIENCY FOR CERTAIN SENIOR
                   LEVEL POSITIONS IN THE CENTRAL INTELLIGENCE
                   AGENCY.

       (a) In General.--Section 104A of the National Security Act
     of 1947, amended by section 1011(a) of the National Security
     Intelligence Reform Act of 2004, is further amended by adding
     at the end the following new subsection:
       ``(g) Foreign Language Proficiency for Certain Senior Level
     Positions in Central Intelligence Agency.--(1) Except as
     provided pursuant to paragraph (2), an individual may not be
     appointed to a position in the Senior Intelligence Service in
     the Directorate of Intelligence or the Directorate of
     Operations of the Central Intelligence Agency unless the
     Director of the Central Intelligence Agency determines that
     the individual--
       ``(A) has been certified as having a professional speaking
     and reading proficiency in a foreign language, such
     proficiency being at least level 3 on the Interagency
     Language Roundtable Language Skills Level or commensurate
     proficiency level using such other indicator of proficiency
     as the Director of the Central Intelligence Agency considers
     appropriate; and
       ``(B) is able to effectively communicate the priorities of
     the United States and exercise influence in that foreign
     language.
       ``(2) The Director of the Central Intelligence Agency may,
     in the discretion of the Director, waive the application of
     paragraph (1) to any position or category of positions
     otherwise covered by that paragraph if the Director
     determines that foreign language proficiency is not necessary
     for the successful performance of the duties and
     responsibilities of such position or category of
     positions.''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply with respect to appointments made on or after the
     date that is one year after the date of the enactment of this
     Act.
       (c) Report on Waivers.--The Director of the Central
     Intelligence Agency shall submit to Congress a report that
     identifies positions within the Senior Intelligence Service
     in the Directorate of Intelligence or the Directorate of
     Operations of the Central Intelligence Agency that are
     determined by the Director to require waiver from the
     requirements of section 104A(g) of the National Security Act
     of 1947, as added by subsection (a). The report shall include
     a rationale for any waiver granted under section 104A(g)(2),
     as so added, for each position or category of positions so
     identified.

     SEC. 612. ADVANCEMENT OF FOREIGN LANGUAGES CRITICAL TO THE
                   INTELLIGENCE COMMUNITY.

       (a) In General.--Title X of the National Security Act of
     1947 (50 U.S.C. 441g) is amended--
       (1) by inserting before section 1001 (50 U.S.C. 441g) the
     following:

                ``Subtitle A--Science and Technology'';

     and
       (2) by adding at the end the following new subtitles:

                ``Subtitle B--Foreign Languages Program


     ``program on advancement of foreign languages critical to the
                         intelligence community

       ``Sec. 1011. (a) In General.--The Secretary of Defense and
     the Director of National Intelligence may jointly carry out a
     program to advance skills in foreign languages that are
     critical to the capability of the intelligence community to
     carry out the national security activities of the United
     States (hereinafter in this subtitle referred to as the
     `Foreign Languages Program').
       ``(b) Identification of Requisite Actions.--In order to
     carry out the Foreign Languages Program, the Secretary of
     Defense and the Director of National Intelligence shall
     jointly identify actions required to improve the education of
     personnel in the intelligence community in foreign languages
     that are critical to the capability of the intelligence
     community to carry out the national security activities of
     the United States and to meet the long-term intelligence
     needs of the United States.


                        ``education partnerships

       ``Sec. 1012. (a) In General.--In carrying out the Foreign
     Languages Program, the head of a covered element of the
     intelligence community may enter into one or more education
     partnership agreements with educational institutions in the
     United States in order to encourage and enhance the study in
     such educational institutions of foreign languages that are
     critical to the capability of the intelligence community to
     carry out the national security activities of the United
     States.
       ``(b) Assistance Provided Under Educational Partnership
     Agreements.--Under an educational partnership agreement
     entered into with an educational institution pursuant to this
     section, the head of a covered element of the intelligence
     community may provide the following assistance to the
     educational institution:
       ``(1) The loan of equipment and instructional materials of
     the element of the intelligence community to the educational
     institution for any purpose and duration that the head of the
     element considers appropriate.
       ``(2) Notwithstanding any other provision of law relating
     to the transfer of surplus property, the transfer to the
     educational institution of any computer equipment, or other
     equipment, that is--
       ``(A) commonly used by educational institutions;
       ``(B) surplus to the needs of the element of the
     intelligence community; and
       ``(C) determined by the head of the element to be
     appropriate for support of such agreement.
       ``(3) The provision of dedicated personnel to the
     educational institution--
       ``(A) to teach courses in foreign languages that are
     critical to the capability of the intelligence community to
     carry out the national security activities of the United
     States; or
       ``(B) to assist in the development for the educational
     institution of courses and materials on such languages.
       ``(4) The involvement of faculty and students of the
     educational institution in research projects of the element
     of the intelligence community.
       ``(5) Cooperation with the educational institution in
     developing a program under which students receive academic
     credit at the educational institution for work on research
     projects of the element of the intelligence community.
       ``(6) The provision of academic and career advice and
     assistance to students of the educational institution.
       ``(7) The provision of cash awards and other items that the
     head of the element of the intelligence community considers
     appropriate.


                          ``voluntary services

       ``Sec. 1013. (a) Authority To Accept Services.--
     Notwithstanding section 1342 of title 31, United States Code,
     and subject to subsection

[[Page H11035]]

     (b), the Foreign Languages Program under section 1011 shall
     include authority for the head of a covered element of the
     intelligence community to accept from any dedicated personnel
     voluntary services in support of the activities authorized by
     this subtitle.
       ``(b) Requirements and Limitations.--(1) In accepting
     voluntary services from an individual under subsection (a),
     the head of a covered element of the intelligence community
     shall--
       ``(A) supervise the individual to the same extent as the
     head of the element would supervise a compensated employee of
     that element providing similar services; and
       ``(B) ensure that the individual is licensed, privileged,
     has appropriate educational or experiential credentials, or
     is otherwise qualified under applicable law or regulations to
     provide such services.
       ``(2) In accepting voluntary services from an individual
     under subsection (a), the head of a covered element of the
     intelligence community may not--
       ``(A) place the individual in a policymaking position, or
     other position performing inherently governmental functions;
     or
       ``(B) compensate the individual for the provision of such
     services.
       ``(c) Authority To Recruit and Train Individuals Providing
     Services.--The head of a covered element of the intelligence
     community may recruit and train individuals to provide
     voluntary services under subsection (a).
       ``(d) Status of Individuals Providing Services.--(1)
     Subject to paragraph (2), while providing voluntary services
     under subsection (a) or receiving training under subsection
     (c), an individual shall be considered to be an employee of
     the Federal Government only for purposes of the following
     provisions of law:
       ``(A) Section 552a of title 5, United States Code (relating
     to maintenance of records on individuals).
       ``(B) Chapter 11 of title 18, United States Code (relating
     to conflicts of interest).
       ``(2)(A) With respect to voluntary services under paragraph
     (1) provided by an individual that are within the scope of
     the services accepted under that paragraph, the individual
     shall be deemed to be a volunteer of a governmental entity or
     nonprofit institution for purposes of the Volunteer
     Protection Act of 1997 (42 U.S.C. 14501 et seq.).
       ``(B) In the case of any claim against such an individual
     with respect to the provision of such services, section 4(d)
     of such Act (42 U.S.C. 14503(d)) shall not apply.
       ``(3) Acceptance of voluntary services under this section
     shall have no bearing on the issuance or renewal of a
     security clearance.
       ``(e) Reimbursement of Incidental Expenses.--(1) The head
     of a covered element of the intelligence community may
     reimburse an individual for incidental expenses incurred by
     the individual in providing voluntary services under
     subsection (a). The head of a covered element of the
     intelligence community shall determine which expenses are
     eligible for reimbursement under this subsection.
       ``(2) Reimbursement under paragraph (1) may be made from
     appropriated or nonappropriated funds.
       ``(f) Authority To Install Equipment.--(1) The head of a
     covered element of the intelligence community may install
     telephone lines and any necessary telecommunication equipment
     in the private residences of individuals who provide
     voluntary services under subsection (a).
       ``(2) The head of a covered element of the intelligence
     community may pay the charges incurred for the use of
     equipment installed under paragraph (1) for authorized
     purposes.
       ``(3) Notwithstanding section 1348 of title 31, United
     States Code, the head of a covered element of the
     intelligence community may use appropriated funds or
     nonappropriated funds of the element in carrying out this
     subsection.


                             ``regulations

       ``Sec. 1014. (a) In General.--The Secretary of Defense and
     the Director of National Intelligence shall jointly prescribe
     regulations to carry out the Foreign Languages Program.
       ``(b) Elements of the Intelligence Community.--The head of
     each covered element of the intelligence community shall
     prescribe regulations to carry out sections 1012 and 1013
     with respect to that element including the following:
       ``(1) Procedures to be utilized for the acceptance of
     voluntary services under section 1013.
       ``(2) Procedures and requirements relating to the
     installation of equipment under section 1013(f).


                             ``Definitions

       ``Sec. 1015. In this subtitle:
       ``(1) The term `covered element of the intelligence
     community' means an agency, office, bureau, or element
     referred to in subparagraphs (B) through (L) of section 3(4).
       ``(2) The term `educational institution' means--
       ``(A) a local educational agency (as that term is defined
     in section 9101(26) of the Elementary and Secondary Education
     Act of 1965 (20 U.S.C. 7801(26)));
       ``(B) an institution of higher education (as defined in
     section 102 of the Higher Education Act of 1965 (20 U.S.C.
     1002) other than institutions referred to in subsection
     (a)(1)(C) of such section); or
       ``(C) any other nonprofit institution that provides
     instruction of foreign languages in languages that are
     critical to the capability of the intelligence community to
     carry out national security activities of the United States.
       ``(3) The term `dedicated personnel' means employees of the
     intelligence community and private citizens (including former
     civilian employees of the Federal Government who have been
     voluntarily separated, and members of the United States Armed
     Forces who have been honorably discharged, honorably
     separated, or generally discharged under honorable
     circumstances and rehired on a voluntary basis specifically
     to perform the activities authorized under this subtitle).

             ``Subtitle C--Additional Education Provisions


 ``assignment of intelligence community personnel as language students

       ``Sec. 1021. (a) In General.--The Director of National
     Intelligence, acting through the heads of the elements of the
     intelligence community, may assign employees of such elements
     in analyst positions requiring foreign language expertise as
     students at accredited professional, technical, or other
     institutions of higher education for training at the graduate
     or undergraduate level in foreign languages required for the
     conduct of duties and responsibilities of such positions.
       ``(b) Authority for Reimbursement of Costs of Tuition and
     Training.--(1) The Director of National Intelligence may
     reimburse an employee assigned under subsection (a) for the
     total cost of the training described in that subsection,
     including costs of educational and supplementary reading
     materials.
       ``(2) The authority under paragraph (1) shall apply to
     employees who are assigned on a full-time or part-time basis.
       ``(3) Reimbursement under paragraph (1) may be made from
     appropriated or nonappropriated funds.
       ``(c) Relationship to Compensation as an Analyst.--
     Reimbursement under this section to an employee who is an
     analyst is in addition to any benefits, allowances, travel
     expenses, or other compensation the employee is entitled to
     by reason of serving in such an analyst position.''.
       (b) Clerical Amendment.--The table of contents for the
     National Security Act of 1947 is amended by striking the item
     relating to section 1001 and inserting the following new
     items:

                  ``Subtitle A--Science and Technology

``Sec. 1001. Scholarships and work-study for pursuit of graduate
              degrees in science and technology.

                ``Subtitle B--Foreign Languages Program

``Sec. 1011. Program on advancement of foreign languages critical to
              the intelligence community.
``Sec. 1012. Education partnerships.
``Sec. 1013. Voluntary services.
``Sec. 1014. Regulations.
``Sec. 1015. Definitions.

             ``Subtitle C--Additional Education Provisions

``Sec. 1021. Assignment of intelligence community personnel as language
              students.''.

     SEC. 613. PILOT PROJECT ON CIVILIAN LINGUIST RESERVE CORPS.

       (a) Pilot Project.--The Director of National Intelligence
     shall conduct a pilot project to assess the feasibility and
     advisability of establishing a Civilian Linguist Reserve
     Corps comprised of United States citizens with advanced
     levels of proficiency in foreign languages who would be
     available upon the call of the Director to perform such
     service or duties with respect to such foreign languages in
     the intelligence community as the Director may specify.
       (b) Conduct of Project.--Taking into account the findings
     and recommendations contained in the report required under
     section 325 of the Intelligence Authorization Act for Fiscal
     Year 2003 (Public Law 107-306; 116 Stat. 2393), in conducting
     the pilot project under subsection (a) the Director of
     National Intelligence shall--
       (1) identify several foreign languages that are critical
     for the national security of the United States;
       (2) identify United States citizens with advanced levels of
     proficiency in the foreign languages identified under
     paragraph (1) who would be available to perform the services
     and duties referred to in subsection (a); and
       (3) when considered necessary by the Director, implement a
     call for the performance of such services and duties.
       (c) Duration of Project.--The pilot project under
     subsection (a) shall be conducted for a three-year period.
       (d) Authority To Enter Into Contracts.--The Director of
     National Intelligence may enter into contracts with
     appropriate agencies or entities to carry out the pilot
     project under subsection (a).
       (e) Reports.--(1) The Director of National Intelligence
     shall submit to Congress an initial and a final report on the
     pilot project conducted under subsection (a).
       (2) Each report required under paragraph (1) shall contain
     information on the operation of the pilot project, the
     success of the pilot project in carrying out the objectives
     of the establishment of a Civilian Linguist Reserve Corps,
     and recommendations for the continuation or expansion of the
     pilot project.
       (3) The final report shall be submitted not later than six
     months after the completion of the pilot project.
       (f) Authorization of Appropriations.--There is authorized
     to be appropriated to the Director of National Intelligence
     for each of fiscal years 2005, 2006, and 2007 in order to
     carry out the pilot project under subsection (a) such sums as
     are specified in the classified Schedule of Authorizations
     referred to in section 102.

     SEC. 614. REPORT ON STATUS, CONSOLIDATION, AND IMPROVEMENT OF
                   INTELLIGENCE EDUCATION PROGRAMS.

       (a) Report.--Not later than June 1, 2005, the Director of
     National Intelligence shall submit to Congress a report
     setting forth--
       (1) the status of each intelligence education program,
     including the statutory, regulatory, or administrative
     authority under which such program is carried out; and

[[Page H11036]]

       (2) such recommendations as the Director considers
     appropriate for legislative or administrative action to
     consolidate, enhance the coordination of, or otherwise
     improve such intelligence education programs.
       (b) Intelligence Education Program Defined.--In this
     section, the term ``intelligence education program'' means
     any grant, scholarship, education, or similar program
     (whether authorized by statute, regulation, or administrative
     order) that--
       (1) is supported, funded, or carried out by a department,
     agency, or element of the intelligence community; or
       (2) is otherwise intended to aid in the recruitment,
     retention, or training of intelligence community personnel.

     SEC. 615. REPORT ON RECRUITMENT AND RETENTION OF QUALIFIED
                   INSTRUCTORS OF THE DEFENSE LANGUAGE INSTITUTE.

       (a) Study.--The Secretary of Defense shall conduct a study
     on mechanisms to improve the recruitment and retention of
     qualified foreign language instructors at the Foreign
     Language Center of the Defense Language Institute. In
     conducting the study, the Secretary shall consider, in the
     case of a foreign language instructor who is an alien, the
     appropriateness of expeditious adjustment of the status of
     the alien under applicable immigration law from a temporary
     status to that of an alien lawfully admitted for permanent
     residence.
       (b) Report.--Not later than one year after the date of the
     enactment of this Act, the Secretary of Defense shall submit
     to the appropriate congressional committees a report on the
     study conducted under subsection (a). The report shall
     include such recommendations for such legislative or
     administrative action as the Secretary considers appropriate.
       (c) Appropriate Congressional Committees Defined.--In this
     section, the term ``appropriate congressional committees''
     means--
       (1) the Select Committee on Intelligence and the Committee
     on Armed Services of the Senate; and
       (2) the Permanent Select Committee on Intelligence and the
     Committee on Armed Services of the House of Representatives.
                      TITLE VII--TERRORISM MATTERS

     SEC. 701. INFORMATION ON TERRORIST GROUPS THAT SEEK WEAPONS
                   OF MASS DESTRUCTION AND GROUPS THAT HAVE BEEN
                   DESIGNATED AS FOREIGN TERRORIST ORGANIZATIONS.

       (a) Inclusion in Reports.--Section 140 of the Foreign
     Relations Authorization Act, Fiscal Years 1988 and 1989 (22
     U.S.C. 2656f) is amended--
       (1) in subsection (a)(2)--
       (A) by inserting ``any terrorist group known to have
     obtained or developed, or to have attempted to obtain or
     develop, weapons of mass destruction,'' after ``during the
     preceding five years,''; and
       (B) by inserting ``any group designated by the Secretary as
     a foreign terrorist organization under section 219 of the
     Immigration and Nationality Act (8 U.S.C. 1189),'' after
     ``Export Administration Act of 1979,'';
       (2) in subsection (b)--
       (A) in paragraph (1)(C)--
       (i) in clause (iii), by striking ``and'' at the end;
       (ii) by redesignating clause (iv) as clause (v); and
       (iii) by inserting after clause (iii) the following new
     clause (iv):
       ``(iv) providing weapons of mass destruction, or assistance
     in obtaining or developing such weapons, to terrorists or
     terrorist groups;'';
       (B) in paragraph (2)--
       (i) by redesignating subparagraphs (C), (D), and (E) as
     subparagraphs (D), (E), and (F), respectively;
       (ii) by inserting after subparagraph (B) the following new
     subparagraph (C):
       ``(C) efforts by those groups to obtain or develop weapons
     of mass destruction;''; and
       (iii) in subparagraph (F), as so redesignated, by striking
     the period and inserting a semicolon; and
       (C) by adding at the end the following new paragraphs:
       ``(3) to the extent practicable, complete statistical
     information on the number of individuals, including United
     States citizens and dual nationals, killed, injured, or
     kidnapped by each terrorist group during the preceding
     calendar year; and
       ``(4) an analysis, as appropriate, of trends in
     international terrorism, including changes in technology
     used, methods and targets of attack, demographic information
     on terrorists, and other appropriate information.''.
       (b) Effective Date.--The amendments made by subsection (a)
     shall apply beginning with the first report under section 140
     of the Foreign Relations Authorization Act, Fiscal Years 1988
     and 1989 that is submitted more than one year after the date
     of the enactment of this Act.
                       TITLE VIII--OTHER MATTERS

     SEC. 801. EFFECTIVE DATE.

       Except as otherwise expressly provided in this Act, this
     Act (and the amendments made by this Act) shall take effect
     on the date of the enactment of this Act.

     SEC. 802. CONSTRUCTION OF REFERENCES TO DIRECTOR OF CENTRAL
                   INTELLIGENCE.

       Except as otherwise specifically provided or otherwise
     provided by context, any reference in this Act, or in the
     classified annex to accompany this Act, to the Director of
     Central Intelligence shall be deemed to be a reference to the
     Director of Central Intelligence as head of the intelligence
     community.

     SEC. 803. SAVINGS PROVISIONS RELATING TO DISCHARGE OF CERTAIN
                   FUNCTIONS AND AUTHORITIES.

       (a) Head of Intelligence Community.--(1) During the period
     beginning on the date of the enactment of this Act and ending
     on the date of the appointment of the Director of National
     Intelligence under section 102 of the National Security Act
     of 1947, as amended by section 1011(a) of the National
     Security Intelligence Reform Act of 2004, the Director of
     Central Intelligence may, acting as the head of the
     intelligence community, discharge the functions and
     authorities provided in this Act, and the amendments made by
     this Act, to the Director of National Intelligence.
       (2) During the period referred to in paragraph (1) any
     reference in this Act or the amendments made by this Act to
     the Director of National Intelligence shall be considered to
     be a reference to the Director of Central Intelligence, as
     the head of the intelligence community.
       (3) Upon the appointment of an individual as Director of
     National Intelligence under section 102 of the National
     Security Act of 1947, as so amended, any reference in this
     Act, or in the classified annex to accompany this Act, to the
     Director of Central Intelligence as head of the intelligence
     community shall be deemed to be a reference to the Director
     of National Intelligence.
       (b) Head of Central Intelligence Agency.--(1) During the
     period beginning on the date of the enactment of this Act and
     ending on the date of the appointment of the Director of the
     Central Intelligence Agency under section 104A of the
     National Security Act of 1947, as amended by section 1011(a)
     of the National Security Intelligence Reform Act of 2004, the
     Director of Central Intelligence may, acting as the head of
     the Central Intelligence Agency, discharge the functions and
     authorities provided in this Act, and the amendments made by
     this Act, to the Director of the Central Intelligence Agency.
       (2) Upon the appointment of an individual as Director of
     the Central Intelligence Agency under section 104A of the
     National Security Act of 1947, as so amended, any reference
     in this Act, or in the classified annex to accompany this
     Act, to the Director of Central Intelligence as head of the
     Central Intelligence Agency shall be deemed to be a reference
     to the Director of the Central Intelligence Agency.
       And the Senate agree to the same.

     From the Permanent Select Committee on Intelligence, for
     consideration of the House bill and the Senate amendment, and
     modifications committed to conference:
     Pete Hoekstra,
     Sherwood Boehlert,
     Jim Gibbons,
     Ray LaHood,
     Randy ``Duke'' Cunningham,
     Richard Burr,
     Terry Everett,
     Elton Gallegly,
     Mac Collins,
     Jo Ann Davis,
     Mac Thornberry,
     Jane Harman,
     Alcee L. Hastings,
     Silvestre Reyes,
     Leonard L. Boswell,
     Collin C. Peterson,
     Bud Cramer,
     Anna Eshoo,
     Rush Holt,
     C.A. Dutch Ruppersberger,
     From the Committee on Armed Services, for consideration of
     defense tactical intelligence and related activities:
     Duncan Hunter,
     Curt Weldon,
     Ike Skelton,
                                Managers on the Part of the House.

     Pat Roberts,
     Orrin Hatch,
     Mike DeWine,
     Christopher Bond,
     Trent Lott,
     Olympia Snowe,
     Chuck Hagel,
     Saxby Chambliss,
     John Warner,
     Dianne Feinstein,
     Evan Bayh,
     Barbara Mikulski,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the Senate and House at the
     conference on the disagreeing votes of the two Houses on the
     amendment of the Senate to the bill (H.R. 4548), to authorize
     appropriations for fiscal year 2005 for intelligence and
     intelligence-related activities of the United States
     Government, the Community Management Account, and the Central
     Intelligence Agency Retirement and Disability System, and for
     other purposes, submit the following joint statement to the
     Senate and House in explanation of the effect of the action
     agreed upon by the managers and recommended in the
     accompanying conference report.
       The managers agree that the congressionally directed
     actions described in the House bill, the Senate amendment,
     the respective committee reports, and classified annexes
     accompanying H.R. 4548 and S. 2386, shall be undertaken to
     the extent that such congressionally directed actions are not
     amended, altered, substituted, or otherwise specifically
     addressed in either this Joint Explanatory Statement or in
     the classified annex to the conference report on the bill
     H.R. 4548.
       The Senate amendment struck all of the House bill's text
     after the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of
     the Senate with an

[[Page H11037]]

     amendment that is a substitute for the House bill and the
     Senate amendment. The differences between the House bill, the
     Senate amendment, and the substitute agreed to in conference
     are noted below, except for clerical corrections, conforming
     changes made necessary by agreements reached by the
     Conferees, and minor drafting and clarifying changes.

                    TITLE I--INTELLIGENCE ACTIVITIES

     Sec. 101. Authorization of appropriations
       Section 101 is identical to Section 101 of the Senate
     amendment and House bill.
     Sec. 102. Classified schedule of authorizations
       Section 102 is identical to Section 102 of the Senate
     amendment and House bill.
     Sec. 103. Personnel ceiling adjustments
       Section 103 is identical to Section 103 of the Senate
     amendment and House bill.
     Sec. 104. Intelligence Community Management Account
       Section 104 of the conference report authorizes
     appropriations for the Intelligence Community Management
     Account (CMA) of the Director of National Intelligence (DNI)
     and sets the personnel end-strength for the Intelligence
     Community Management Staff for fiscal year 2005.
       Subsection (a) authorizes appropriations of $310,466,000
     for fiscal year 2005 for the activities of the CMA of the
     DNI. The House recedes in part and the Senate recedes in
     part.
       Subsection (b) authorizes 310 full-time personnel for the
     Intelligence Community Management Staff for fiscal year 2005
     and provides that such personnel may be permanent employees
     of the Staff or detailed from various elements of the United
     States Government. The House bill and Senate amendment were
     identical.
       Subsection (c) authorizes additional appropriations and
     personnel for the CMA as specified in the classified Schedule
     of Authorizations and authorizes additional amounts to remain
     available for research and development through September 30,
     2006.
       Subsection (d) requires that, except as provided in Section
     113 of the National Security Act of 1947, during fiscal year
     2005, personnel from another element of the United States
     Government may be detailed to an element of the CMA on a
     reimbursable basis, or for temporary situations of less than
     one year on a non-reimbursable basis.
       Subsection (e) authorizes $42,322,000 of the amount
     authorized in subsection (a) to be made available for the
     National Drug Intelligence Center (NDIC). Subsection (e)
     requires the DNI to transfer these funds to the Attorney
     General to be used for NDIC activities under the authority of
     the Attorney General and subject to Section 103(d)(1) of the
     National Security Act. The House recedes in part and the
     Senate recedes in part.
     Sec. 105. Incorporation of reporting requirements
       Section 105 is similar to Section 105 of the Senate
     amendment. The House bill had no similar provision. The House
     recedes to the Senate.
     Sec. 106. Specific authorization of funds for intelligence or
         intelligence-related activities for which fiscal year
         2004 appropriations exceed amounts authorized
       Section 106 is similar to Section 106 of the Senate
     amendment. The House bill had no similar provision. The House
     recedes to the Senate.
     Sec. 107. Preparation and submittal of reports, reviews,
         studies, and plans relating to intelligence activities of
         Department of Defense or Department of Energy
       Section 107 is a slightly modified version of Section 107
     of the Senate amendment. The House bill had no similar
     provision. The House recedes with an amendment.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     Sec. 201. Authorization of appropriations
       Section 201 authorizes appropriations of $239,400,000 for
     the Central Intelligence Agency Retirement and Disability
     Fund. Section 201 of the House bill and Section 201 of the
     Senate amendment were identical.

                     TITLE III--GENERAL PROVISIONS

     Sec. 301. Increase in employee compensation and benefits
         authorized by law
       Section 301 is identical to Section 301 of the Senate
     amendment and the House bill.
     Sec. 302. Restriction on conduct of intelligence activities
       Section 302 is identical to Section 302 of the Senate
     amendment and the House bill.
     Sec. 303. Chief Information Officer
       Section 303 establishes a Chief Information Officer (CIO)
     to assist the DNI in carrying out the DNI's responsibilities.
     The CIO is established within the Office of the DNI. The CIO
     will serve as the CIO of the Intelligence Community, subject
     to the DNI's direction. The CIO shall manage activities
     relating to the information technology infrastructure and
     enterprise architecture requirements of the Intelligence
     Community and have procurement approval authority over all
     information technology items related to the enterprise
     architectures of all Intelligence Community components. The
     CIO will also direct and manage all information technology-
     related procurement for the Intelligence Community and ensure
     that all expenditures for information technology and research
     and development activities are consistent with the
     Intelligence Community enterprise architecture and the
     strategy of the DNI for such architecture. The section also
     provides that the CIO may not serve as the chief information
     officer of any other department or agency, or component
     thereof, of the United States.
       Enterprise architecture is the foundation upon which
     information technology investment and strategy should be
     based. Therefore, the managers expect the CIO to move
     expeditiously to undertake a formal Intelligence Community-
     wide enterprise architecture effort. The managers also
     strongly support the House report language detailing the
     ramifications of failing to link Intelligence Community-wide
     information technology investments to a true community-wide
     enterprise architecture (H. Rep. 108-558, June 21, 2004).
     Sec. 304. Improvement of authorities relating to National
         Virtual Translation Center
       Section 304 amends Section 313 of the Intelligence
     Authorization Act for Fiscal Year 2003 (Pub. L. 107-306; 116
     Stat. 2391; 50 U.S.C. 404n) to clarify the functions of the
     National Virtual Translation Center (NVTC). The provision
     also specifies that the NVTC may perform its duties in a
     certified secure facility or in any other facility determined
     appropriate by the DNI. This section was passed in the House
     bill as Section 615. The Senate recedes with amendments.
       Section 313 of the Intelligence Authorization Act for
     Fiscal Year 2003 mandated that the Director of Central
     Intelligence (DCI) retain ``direct supervision and control''
     over the NVTC. The Conferees note with concern that despite
     this mandate the DCI has failed to fully integrate the NVTC
     into the Intelligence Community and play a meaningful role in
     its management. Instead, the activities of the NVTC are
     supervised by the Director of the Federal Bureau of
     Investigation (FBI), with little or no input by the DCI.
     While participation of the FBI Director is imperative,
     Congress stresses again the importance of the direct
     ``supervision and control'' by the head of the Intelligence
     Community, now the DNI, of NVTC activities.
       The Conferees are also concerned that non-FBI Intelligence
     Community elements have not fully leveraged NVTC resources.
     The Conferees continue to believe that a fully employed NVTC
     will perform an important function for the Intelligence
     Community. The use of advanced information technology will
     expand the ability of translators located in disparate
     locations to apply their skills to the backlog of collected
     intelligence information stored in voice or data form
     throughout the Intelligence Community. Intelligence
     information that is not translated and not analyzed
     constitutes a gross waste of our limited collection
     resources. The Conferees expect the DNI to commit the
     necessary attention, staffing, and resources to ensure that
     the NVTC can effectively perform its necessary function.
     Sec. 305. Intelligence assessment on sanctuaries for
         terrorists
       Section 305 requires the DNI to submit a report to Congress
     on terrorist sanctuaries. The House bill had no such
     provision. The House recedes to the Senate.
     Sec. 306. Sense of Congress on the availability to Congress
         of information on Iraq Oil-for-Food Program of the United
         Nations
       Section 306 calls on heads of Intelligence Community
     elements to share with Congress information they have about
     the United Nations Oil-for-Food Program. The Senate recedes.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     Sec. 401. Permanent Extension of Central Intelligence Agency
         Voluntary Separation Incentive Program
       The House bill and Senate amendment versions of this
     provision were similar.
     Sec. 402. Intelligence operations and cover enhancement
         authority
       Section 402 amends the Central Intelligence Agency Act of
     1949 by adding a new section that enhances the cover of
     certain Central Intelligence Agency (CIA) employees. This new
     section provides that, notwithstanding any other provision of
     law, the Director of the CIA (DCIA), in order to protect
     intelligence operations and sources and methods, may: pay
     salaries, allowances, retirement, insurance, and other
     benefits to CIA employees under non-official cover in a
     manner consistent with their cover; exempt a category of CIA
     employees from certain U.S. Government rules and regulations;
     allow certain CIA employees to claim and receive the same
     Federal and state tax treatment available to individuals in
     the private sector; and allow certain CIA employees to
     receive Social Security benefits based on the Social Security
     contributions made by such employees. The DCIA, in
     formulating regulations under this section, should ensure
     that such regulations adequately recognize the interests of
     CIA employee family members, including spouses and children,
     and former spouses. The House bill had no similar provision.
     The House recedes.

          TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

     Sec. 501. National Security Agency emerging technologies
         panel
       Section 501 amends the National Security Agency Act of 1959
     to establish the National Security Agency Emerging
     Technologies Panel and exempts it from the Federal Advisory
     Committee Act. The Senate bill had no similar provision. The
     Senate recedes.

[[Page H11038]]

     Sec. 502. Use of funds for counterdrug and counterterrorism
         activities for Colombia
       Section 502 allows funds available for intelligence and
     intelligence-related activities to be used to support a
     unified campaign against drug traffickers and terrorist
     organizations in Colombia. The House bill had no similar
     provision. The House recedes with amendments.

                          TITLE VI--EDUCATION

            Subtitle A--National Security Education Program

     Sec. 601. Annual funding
       Section 601 amends the David L. Boren National Security
     Education Act of 1991 (Title VIII of the Intelligence
     Authorization Act of 1992 (P.L. 102-183; 105 Stat. 1271)) to
     authorize an appropriation to the CMA to support the
     scholarship, fellowship and grant programs under the National
     Security Education Program (NSEP). The Intelligence
     Authorization Act of 1992 created the NSEP, along with the
     National Security Education Trust Fund as a means of funding
     the NSEP. That trust fund has been nearly depleted, and an
     appropriation of $8,000,000 is authorized for fiscal year
     2005 to maintain the NSEP.
     Sec. 602. Improvements to the National Flagship Language
         Initiative
       Section 602 amends the David L. Boren National Security
     Education Act of 1991 to authorize an appropriation of
     $6,000,000 for fiscal year 2005 to the CMA for the expansion
     of the grant program for institutions of higher education
     under the National Flagship Language Initiative (NFLI). The
     section details certain service obligations required for
     undergraduate and graduate students and federal employees who
     receive training in programs under the NFLI. The provision
     also seeks to increase the number of qualified institutions
     that receive grants under the NFLI.
     Sec. 603. Scholarship program for English language studies
         for heritage community citizens of the United States
         within the National Security Education Program
       Section 603 amends the David L. Boren National Security
     Education Act of 1991 to establish a scholarship program
     within NSEP for English language studies for heritage
     community citizens of the United States. The scholarship
     program is designed to enable native speakers of languages
     that are considered critical to the national security
     interests of the United States to attain English language
     proficiency. The ultimate goal is to increase the scholarship
     recipient's English language proficiency to the level where a
     valuable contribution can be made by the recipients to the
     Intelligence Community. The section establishes certain
     service obligations for work in a position within the
     Department of Defense or the Intelligence Community. The
     section authorizes an appropriation of $2,000,000 for fiscal
     year 2005 to the CMA to establish the scholarship program.

  Subtitle B--Improvement in Intelligence Community Foreign Language
                                 Skills

     Sec. 611. Foreign language proficiency for advancement to
         certain senior level positions in the Central
         Intelligence Agency
       Section 611 amends the National Security Act of 1947 to
     establish a language proficiency requirement for those
     individuals appointed to Senior Intelligence Service (SIS)
     positions within the CIA's Directorate of Operations (DO) and
     Directorate of Intelligence (DI). In order to be eligible for
     promotion to SIS positions within the DO or DI, individuals
     must be certified as having professional speaking and reading
     proficiency of at least level 3 on the Interagency Language
     Roundtable Language Skills Level or commensurate proficiency
     indicator. The DCIA is tasked with providing to Congress a
     report explaining any waivers of this requirement for any
     position or category of positions.
     Sec. 612. Advancement of foreign languages critical to the
         intelligence community
       Section 612 amends the National Security Act of 1947 to
     authorize the DNI and the Secretary of Defense to establish a
     program to advance foreign language skills in languages that
     are critical to the national security interests of the United
     States. The program may include funding, in the form of
     grants, contracts, cooperative agreements, or other
     appropriate mechanisms, by the Intelligence Community of
     educational institutions and instructors for the purchase of
     materials, supplies, and other resources, as well as the
     generation of instructional materials needed to advance
     foreign language skills.
       The section allows the Intelligence Community to enter into
     educational partnership agreements with educational
     institutions to encourage and enhance the study of foreign
     languages. These partnership agreements would allow the
     Intelligence Community to lend surplus equipment, provide
     personnel to teach courses and develop curriculum, offer
     academic and career advice, and provide cash awards. The
     section authorizes the Intelligence Community to accept
     voluntary services in support of partnership activities. The
     section also authorizes the Intelligence Community to assign
     employees in analytical positions requiring foreign language
     expertise to accredited institutions of higher education for
     training in foreign languages.
     Sec. 613. Pilot project on Civilian Linguist Reserve Corps
       Section 613 requires the DNI to conduct a pilot project to
     establish a Civilian Linguist Reserve Corps comprised of
     United States citizens with advanced proficiency in foreign
     languages. These individuals could be called up by the DNI to
     perform federal service in areas relating to their language
     expertise. The section authorizes an appropriation for a
     three-year pilot project. In conducting the pilot project,
     the DNI should take into account findings and recommendations
     in the CLRC feasibility report required by the Intelligence
     Authorization Act for Fiscal Year 2003 (P.L. 107-306).
     Sec. 614. Report on status, consolidation, and improvement of
         intelligence education programs
       Section 614 requires the DNI to submit to Congress no later
     than June 1, 2005, a report on the status of intelligence
     education programs. The report is to include recommendations
     about legislative or administrative action that would be
     appropriate to consolidate, enhance the coordination of, or
     otherwise improve intelligence education programs. This
     provision was added in lieu of creating the Assistant
     Director of Central Intelligence for Language and Education
     provided for in the House bill.
     Sec. 615. Report on recruitment and retention of qualified
         instructors of the Defense Language Institute
       Section 615 requires the Secretary of Defense to conduct a
     study on methods to improve the recruitment and retention of
     qualified language instructors at the Foreign Language Center
     at the Defense Language Institute. In preparing this report,
     the Secretary is to consider, as a means of recruitment and
     retention, providing permanent resident alien status to those
     qualified language instructors who are in the United States
     in temporary status.

                      TITLE VII--TERRORISM MATTERS

     Sec. 701. Information on terrorist groups that seek weapons
         of mass destruction and groups that have been designated
         as foreign terrorist organizations
       Section 701 would require the inclusion, in the State
     Department's annual country reports on terrorism, of
     information on terrorist groups that seek weapons of mass
     destruction, and groups that have been designated as FTOs
     under Section 219 of the Immigration and Nationality Act, as
     amended.

                       TITLE VIII--OTHER MATTERS

     Sec. 801. Effective date
       Except as otherwise indicated in a particular section
     within this Act, this section provides that this Act shall
     take effect immediately upon enactment because many of its
     provisions are of immediate operational and practical concern
     for the Intelligence Community.
     Sec. 802. Construction of references to the Director of
         Central Intelligence
     Sec. 803. Savings provisions relating to discharge of certain
         functions and authorities
       Sections 802 and 803 clarifies how certain authorities
     shall be exercised, and who shall exercise them, during the
     transitional period between enactment of this Act, its
     effective date, the appointment of certain officers, and the
     enactment and effective date of the Intelligence Reform and
     Terrorism Prevention Act of 2004.

                            General Matters

       The Conferees are concerned about the Intelligence
     Community's ability to efficiently and effectively manage the
     security clearance process for companies that comprise its
     industrial base.
       The Conferees direct the head of the Intelligence Community
     to undertake a study of all dimensions of this problem. In
     accomplishing this effort, the study should take into account
     the excellent work already done by industry groups in
     studying this problem and also seek additional information
     and views from industry. The head of the Intelligence
     Community should consult with the House and Senate
     Intelligence Committees on the structure, objectives and form
     of the final report, which should be delivered to the
     Intelligence Committees in unclassified form (with a
     classified annex, if necessary) no later than June 1, 2005.
       Senators Rockefeller, Levin, Wyden and Durbin object to an
     item in the classified schedule of authorizations that
     provides for continued funding of a major acquisition program
     that they believe is unnecessary and the cost of which they
     believe is unjustified. They believe that the funds for this
     item should be expended on other intelligence programs that
     will make a surer and greater contribution to national
     security. For this reason, which is more fully explained in
     the classified record of the conference, they have not signed
     the conference report.

     From the Permanent Select Commission on Intelligence, for
     consideration of the House bill and the Senate amendment, and
     modifications committed to conference.
     Pete Hoekstra,
     Sherwood Boehlert,
     Jim Gibbons,
     Ray LaHood,
     Randy ``Duke'' Cunningham,
     Richard Burr,
     Terry Everett,
     Elton Gallegly,
     Mac Collins,
     JoAnn Davis,
     Mac Thornberry,
     Jane Harman,

[[Page H11039]]

     Alcee L. Hastings,
     Silvestre Reyes,
     Leonard L. Boswell,
     Collin C. Peterson,
     Bud Cramer,
     Anna Eshoo,
     Rush Holt,
     C.A. Dutch Ruppersberger,
     From the Committee on Armed Services, for consideration of
     defense tactical intelligence and related activities:
     Duncan Hunter,
     Curt Weldon,
     Ike Skelton,
                                Managers on the Part of the House.

     Pat Roberts,
     Orrin Hatch,
     Mike DeWine,
     Christopher Bond,
     Trent Lott,
     Olympia Snowe,
     Chuck Hagel,
     Saxby Chambliss,
     John Warner,
     Dianne Feinstein,
     Evan Bayh,
     Barbara Mikulski,
     Managers on the Part of the Senate.

                          ____________________