112th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 112-72
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INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2011
_______
May 3, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Rogers of Michigan, from the Select Committee on Intelligence
(Permanent Select), submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 754]
[Including cost estimate of the Congressional Budget Office]
The Select Committee on Intelligence (Permanent Select), to
whom was referred the bill (H.R. 754) to authorize
appropriations for fiscal year 2011 for intelligence and
intelligence-related activities of the United States
Government, the Community Management Account, and the Central
Intelligence Agency Retirement and Disability System, and for
other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Intelligence
Authorization Act for Fiscal Year 2011''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS
Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Intelligence Community Management Account.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
Sec. 201. Authorization of appropriations.
TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS
Sec. 301. Restriction on conduct of intelligence activities.
Sec. 302. Increase in employee compensation and benefits authorized by
law.
Sec. 303. Non-reimbursable detail of other personnel.
TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY
Subtitle A--Office of the Director of National Intelligence
Sec. 401. Schedule and requirements for the National
Counterintelligence Strategy.
Sec. 402. Insider threat detection program.
Subtitle B--Other Elements
Sec. 411. Defense Intelligence Agency counterintelligence and
expenditures.
Sec. 412. Accounts and transfer authority for appropriations and other
amounts for the intelligence elements of the Department of Defense.
SEC. 2. DEFINITIONS.
In this Act:
(1) Congressional intelligence committees.--The term
``congressional intelligence committees'' means--
(A) the Select Committee on Intelligence of the
Senate; and
(B) the Permanent Select Committee on Intelligence of
the House of Representatives.
(2) Intelligence community.--The term ``intelligence
community'' has the meaning given that term in section 3(4) of
the National Security Act of 1947 (50 U.S.C. 401a(4)).
TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fiscal year 2011
for the conduct of the intelligence and intelligence-related activities
of the following elements of the United States Government:
(1) The Office of the Director of National Intelligence.
(2) The Central Intelligence Agency.
(3) The Department of Defense.
(4) The Defense Intelligence Agency.
(5) The National Security Agency.
(6) The Department of the Army, the Department of the Navy,
and the Department of the Air Force.
(7) The Coast Guard.
(8) The Department of State.
(9) The Department of the Treasury.
(10) The Department of Energy.
(11) The Department of Justice.
(12) The Federal Bureau of Investigation.
(13) The Drug Enforcement Administration.
(14) The National Reconnaissance Office.
(15) The National Geospatial-Intelligence Agency.
(16) The Department of Homeland Security.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
(a) Specifications of Amounts and Personnel Levels.--The amounts
authorized to be appropriated under section 101 and the authorized
personnel levels (expressed as full-time equivalent positions) as of
September 30, 2011, for the conduct of the intelligence activities of
the elements listed in paragraphs (1) through (16) of section 101, are
those specified in the classified Schedule of Authorizations prepared
to accompany the bill H.R. 754 of the One Hundred Twelfth Congress.
(b) Availability of Classified Schedule of Authorizations.--The
classified Schedule of Authorizations referred to in subsection (a)
shall be made available to the Committee on Appropriations of the
Senate, the Committee on Appropriations of the House of
Representatives, and to the President. The President shall provide for
suitable distribution of the Schedule, or of appropriate portions of
the Schedule, within the executive branch.
SEC. 103. 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 2011 the sum of
$660,732,000. 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,
2012.
(b) Authorized Personnel Levels.--The elements within the
Intelligence Community Management Account of the Director of National
Intelligence are authorized 787 full-time equivalent personnel as of
September 30, 2011. Personnel serving in such elements may be permanent
employees of the Office of the Director of National Intelligence or
personnel detailed from other elements of the United States Government.
(c) Classified Authorizations.--
(1) Authorization of appropriations.--In addition to amounts
authorized to be appropriated for the Intelligence Community
Management Account by subsection (a), there are authorized to
be appropriated for the Community Management Account for fiscal
year 2011 such additional amounts as are specified in the
classified Schedule of Authorizations referred to in section
102(a). Such additional amounts made available for advanced
research and development shall remain available until September
30, 2012.
(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, 2011, there
are authorized such full-time equivalent personnel for the
Community Management Account as of that date as are specified
in the classified Schedule of Authorizations referred to in
section 102(a).
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 2011 the sum of
$292,000,000.
TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS
SEC. 301. 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. 302. 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. 303. NON-REIMBURSABLE DETAIL OF OTHER PERSONNEL.
(a) In General.--Section 113A of the National Security Act of 1947
(50 U.S.C. 404h-1) is amended to read as follows:
``non-reimbursable detail of other personnel
``Sec. 113A. An officer or employee of the United States or member of
the Armed Forces may be detailed to the staff of an element of the
intelligence community funded through the National Intelligence Program
from another element of the intelligence community or from another
element of the United States Government on a non-reimbursable basis, as
jointly agreed to by the heads of the receiving and detailing elements,
for a period not to exceed two years. This section does not limit any
other source of authority for reimbursable or non-reimbursable
details.''.
(b) Table of Contents Amendment.--The table of contents in the first
section of such Act is amended by striking the item relating to section
113A and inserting the following:
``Sec. 113A. Non-reimbursable detail of other personnel.''.
TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY
Subtitle A--Office of the Director of National Intelligence
SEC. 401. SCHEDULE AND REQUIREMENTS FOR THE NATIONAL
COUNTERINTELLIGENCE STRATEGY.
Section 904(d)(2) of the Counterintelligence Enhancement Act of 2002
(50 U.S.C. 402c(d)(2)) is amended--
(1) by striking ``Subject'' and inserting the following:
``(A) Requirement to produce.--Subject'';
(2) by striking ``on an annual basis''; and
(3) by adding at the end the following:
``(B) Revision and requirement.--The National
Counterintelligence Strategy shall be revised or
updated at least once every three years and shall be
aligned with the strategy and policies of the Director
of National Intelligence.''.
SEC. 402. INSIDER THREAT DETECTION PROGRAM.
(a) Initial Operating Capability.--Not later than October 1, 2012,
the Director of National Intelligence shall establish an initial
operating capability for an effective automated insider threat
detection program for the information resources in each element of the
intelligence community in order to detect unauthorized access to, or
use or transmission of, classified intelligence.
(b) Full Operating Capability.--Not later than October 1, 2013, the
Director of National Intelligence shall ensure the program described in
subsection (a) has reached full operating capability.
(c) Report.--Not later than December 1, 2011, the Director of
National Intelligence shall submit to the congressional intelligence
committees a report on the resources required to implement the insider
threat detection program referred to in subsection (a) and any other
issues related to such implementation the Director considers
appropriate to include in the report.
(d) Information Resources Defined.--In this section, the term
``information resources'' means networks, systems, workstations,
servers, routers, applications, databases, websites, online
collaboration environments, and any other information resources in an
element of the intelligence community designated by the Director of
National Intelligence.
Subtitle B--Other Elements
SEC. 411. DEFENSE INTELLIGENCE AGENCY COUNTERINTELLIGENCE AND
EXPENDITURES.
Section 105 of the National Security Act of 1947 (50 U.S.C. 403-5) is
amended--
(1) in subsection (b)(5), by inserting ``and
counterintelligence'' after ``human intelligence'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following:
``(c) Expenditure of Funds by the Defense Intelligence Agency.--(1)
Subject to paragraphs (2) and (3), the Director of the Defense
Intelligence Agency may expend amounts made available to the Director
for human intelligence and counterintelligence activities for objects
of a confidential, extraordinary, or emergency nature, without regard
to the provisions of law or regulation relating to the expenditure of
Government funds.
``(2) The Director of the Defense Intelligence Agency may not expend
more than five percent of the amounts made available to the Director
for human intelligence and counterintelligence activities for a fiscal
year for objects of a confidential, extraordinary, or emergency nature
in accordance with paragraph (1) during such fiscal year unless--
``(A) the Director notifies the congressional intelligence
committees of the intent to expend the amounts; and
``(B) 30 days have elapsed from the date on which the
Director notifies the congressional intelligence committees in
accordance with subparagraph (A).
``(3) For each expenditure referred to in paragraph (1), the Director
shall certify that such expenditure was made for an object of a
confidential, extraordinary, or emergency nature.
``(4) Not later than December 31 of each year, the Director of the
Defense Intelligence Agency shall submit to the congressional
intelligence committees a report on any expenditures made during the
preceding fiscal year in accordance with paragraph (1).''.
SEC. 412. ACCOUNTS AND TRANSFER AUTHORITY FOR APPROPRIATIONS AND OTHER
AMOUNTS FOR THE INTELLIGENCE ELEMENTS OF THE
DEPARTMENT OF DEFENSE.
(a) In General.--Chapter 21 of title 10, United States Code, is
amended by inserting after section 428 the following new section:
``Sec. 429. Appropriations for defense intelligence elements: accounts
for transfer; transfer
``(a) Accounts for Appropriations for Defense Intelligence
Elements.--The Secretary of the Treasury shall establish one or more
accounts for the receipt of appropriations and other amounts
transferred pursuant to subsection (b).
``(b) Transfers Authorized.--(1) There may be transferred to an
account established pursuant to subsection (a) the following:
``(A) Appropriations transferred by the Secretary of Defense
from appropriations of the Department of Defense available for
intelligence, intelligence-related activities, and
intelligence-related communications.
``(B) Appropriations and other amounts transferred by the
Director of National Intelligence from appropriations and other
amounts available for the defense intelligence elements.
``(C) Amounts and reimbursements in connection with
transactions authorized by law between the defense intelligence
elements and other entities.
``(2) The transfer authority of the Secretary of Defense under
paragraph (1)(A) is in addition to any other transfer authority
available to the Secretary by law.
``(c) Availability of Appropriations and Amounts Transferred.--(1)
Appropriations transferred pursuant to subsection (b) shall remain
available for the same time period, and shall be available for the same
purposes, as the appropriations from which transferred.
``(2) Appropriation balances in an account established pursuant to
subsection (a) may be transferred back to the account or accounts from
which such balances originated as an appropriation refund.
``(d) Defense Intelligence Elements Defined.--In this section, the
term `defense intelligence elements' means the agencies, offices, and
elements of the Department of Defense that are included within the
elements of the intelligence community specified in or designated under
section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)).''.
(b) Clerical Amendment.--The table of sections at the beginning of
subchapter I of chapter 21 of such title is amended by inserting after
the item relating to section 428 the following new item:
``429. Appropriations for defense intelligence elements: accounts for
transfer; transfer.''.
Purpose
The purpose of H.R. 754 is to authorize the intelligence
and intelligence-related activities of the United States
Government for Fiscal Year 2011 in order to enhance the
national security of the United States, to support and assist
the armed forces of the United States, and to support the
President in the execution of the foreign policy of the United
States. The bill also clarifies certain Intelligence Community
authorities.
Classified Annex and Committee Intent
The classified annex to this report includes the classified
Schedule of Authorizations and its associated explanatory
language. The Committee views the classified annex as an
integral part of this legislation. The classified annex
contains a thorough discussion of the issues considered by the
Committee underlying the funding authorizations found in the
classified Schedule of Authorizations. The Committee intends
that all intelligence programs discussed in the classified
annex to this report be conducted in accordance with the
guidance and limitations set forth as associated language
therein. The classified Schedule of Authorizations is
incorporated directly into this legislation by virtue of
section 102 of the bill. The classified annex is available for
review by all Members of the House of Representatives, subject
to the requirements of clause 13 of rule XXIII of the Rules of
the House of Representatives, and rule 14 of the Rules of
Procedure for the House Permanent Select Committee on
Intelligence.
Scope of Committee Review
The bill authorizes U.S. intelligence and intelligence-
related activities within the jurisdiction of the Committee,
including the National Intelligence Program (NIP), and the
Military Intelligence Program (MIP). The NIP consists of all
activities of the Office of the Director of National
Intelligence, as well as those national foreign intelligence,
intelligence-related, and/or counterintelligence activities
conducted by: (1) the Central Intelligence Agency; (2) the
Department of Defense; (3) the Defense Intelligence Agency; (4)
the National Security Agency; (5) the National Reconnaissance
Office; (6) the National Geospatial-Intelligence Agency; (7)
the Departments of the Army, Navy, and Air Force; (8) the
Department of State; (9) the Department of the Treasury; (10)
the Department of Energy; (11) the Department of Justice; (12)
the Federal Bureau of Investigation; (13) the U.S. Coast Guard;
(14) the Department of Homeland Security; and (15) the Drug
Enforcement Administration. The Committee has exclusive
legislative, authorizing and oversight jurisdiction of these
programs.
Committee Statement and Views
The U.S. Intelligence Community plays a vital role in the
war on terrorism and securing the country from the many threats
we face. Later this year, we will mark the 10th anniversary of
the attacks of September 11, 2001, and the hard work of our
intelligence professionals is one of the primary reasons there
has not been a successful major attack on the homeland since 9/
11 despite numerous failed and disrupted plots and al Qaeda's
unrelenting efforts to attack us. Ten years later, America has
made tremendous progress against certain threats and yet we
have become increasingly aware of newly evolving threats. While
we have made significant progress against al-Qaeda, the threat
remains and continues to evolve. Today we also face an
increasing threat of smaller scale attacks from self-
radicalized jihadists such as Khalid Aldawsari, Farouk
Abdulmutallab and Maj. Nidal Hassan. We also are faced with
even heavier demands on national security resources heightened
by instability in the Middle East.
As the role of technology continues to grow, the cyber
threat from state and non-state actors grows at an even faster
rate. This threat is complex and real and growing by the day.
Incidents like the unauthorized disclosure of classified
information by Wikileaks also show us that despite the
tremendous progress made since 9/11 in information sharing, we
still need to have systems in place that can detect
unauthorized activities by those who would do our country harm
from the inside.
The foregoing are just a few examples of the increasing and
evolving threats we face as a nation and the importance of an
effective, efficient Intelligence Community. It is this
Committee's primary function to conduct oversight of and
provide the tools needed to the Intelligence Community so that
they may do their job in rooting out these threats and
providing real time information to decisionmakers. The
challenges for the Committee are particularly heightened at a
time when careful scrutiny must be given to every element of
federal spending.
The Committee's work is given its greatest force in each
year's annual Intelligence Authorization bill. However,
Congress and the President have not enacted a complete bill--
including detailed spending guidance for our intelligence
programs in a classified annex--in six years. The Intelligence
Authorization Act for Fiscal Year 2010 was not enacted until
after that Fiscal Year was over and did not contain a
classified annex. Instead, for the past several years language
in appropriations bills has ``deemed'' intelligence funding to
be authorized despite several express requirements that
intelligence funding be explicitly authorized by legislation.
This band-aid language was not the careful oversight that was
intended and bypasses the authorization committees.
The intelligence authorization bill authorizes and sets
specific funding levels for all U.S. intelligence and
intelligence-related activities, spanning 16 separate agencies.
It provides authorization for critical national security
functions, including clandestine operatives and their
activities worldwide, tactical intelligence support to combat
units in Afghanistan and Iraq, electronic surveillance and
cyber defense activities, global monitoring of foreign
militaries, weapons tests, and arms control treaties, real-time
analysis and reporting on political and economic events, such
as the tsunami in Japan and events in Egypt, and research and
technology to maintain the country's technological edge.
It is critically important that the Fiscal Year 2011 bill
moves forward, and does so quickly. For too many years we have
simply postponed the intelligence authorization bill to the
next fiscal year only to have it bogged down in political
infighting and turf battles. While passing an FY 2011 bill is
critical to restoring this Committee's relevance in the
community, it is more critical that the bill is passed to make
sure our intelligence agencies have the resources and the
capabilities they need for their important mission.
The comprehensive, classified annex to this bill provides
detailed guidance on intelligence spending and will provide
greater accountability for the increased intelligence spending
that has gone on since 9/11. In addition, the bill takes
important steps to help the Intelligence Community face the
same financial standards as the rest of the government for
accounting, as well as to analyze whether responsible savings
can be accomplished in some areas without endangering national
security.
The expertise of the intelligence authorization committees
will be vital to ensuring that we carefully choose the budget
efficiencies required to maintain a relatively flat budget
profile in the coming years without endangering our key
intelligence capabilities. Returning to the regular order of
passing an annual intelligence authorization bill is vital to
achieving this.
It has been and remains a priority of the Committee to
rebuild a strong bipartisan consensus around intelligence
matters. In January, the Chairman asked for the help of every
member of the Committee to get this job done. With this
cooperative premise, the Committee began a process intended to
complete an FY 2011 bill as quickly as possible in a bipartisan
manner.
In light of this commitment and the numerous bipartisan
sessions held to review and consider this bill, it is
particularly disappointing that the Minority Members now claim
that the bill was sprung upon them the morning of the markup
without a chance to read it. In addition to the countless staff
hours logged in budget briefings with the Administration during
the 111th Congress, the Committee under the leadership of
Chairman Reyes already had held more than ten full committee
events on the FY 2011 budget request, organized and conducted
by the current minority when they were in the majority.
Recognizing that there are Members who are new to the
Committee in the 112th Congress, the Chairman scheduled at
least five opportunities for Committee Members to be briefed by
staff in detail on the proposed FY 2011 bill and to answer
questions about the Administration's request for FY 2011.
Minority members participated in these sessions and were fully
engaged on the issues, as were minority Committee staff. The
process has been open, forthright, and included input from
members on both sides of the aisle.
The current minority failed to draft or even consider an
intelligence authorization bill for FY 2011 prior to the start
of FY 2011, presumably because it could not enact its FY 2010
bill (but not the classified schedule of budget authorizations)
until after the end of FY 2010. The minority thus complains
about a situation that is the result of their own inaction. The
minority also asserts that passing a bill six months into the
fiscal year ``will have little impact,'' when they committed
countless hours of the Committee's time and resources to the FY
2010 bill up to and after the end of the previous fiscal year.
The minority's criticisms thus smack of political gamesmanship
and mere rhetoric, especially since their complaints are most
appropriately directed at themselves.
Nonetheless, we remain hopeful that the bill can proceed in
a bipartisan manner and look forward to immediately forging
ahead on the FY 2012 intelligence authorization bill in the
same manner.
Committee Consideration and Rollcall Votes
On March 10, 2011, the Committee met in open and closed
session and ordered the bill H.R. 754 favorably reported, as
amended.
OPEN SESSION
In open session, the Committee considered the text of the
bill H.R. 754.
Chairman Rogers offered an amendment in the nature of a
substitute to H.R. 754. The contents of the amendment in the
nature of a substitute are described in the Section-by-Section
analysis and the Explanation of Amendment. No amendments were
offered to the amendment in the nature of a substitute, and the
amendment in the nature of a substitute was agreed to by voice
vote.
CLOSED SESSION
Mr. Ruppersberger then moved to close the meeting because
national security would be endangered if the matters to be
considered were disclosed. The motion was agreed to by a record
vote of 13 ayes to 0 noes:
Voting aye: Mr. Rogers (Chairman), Mr. Thornberry,
Mrs. Myrick, Mr. Miller, Mr. Conaway, Mr. LoBiondo, Mr.
Nunes, Mr. Ruppersberger, Mr. Thompson, Ms. Schakowsky,
Mr. Langevin, Mr. Gutierrez, Mr. Chandler.
Voting no: none.
After debate, no amendments were offered to the classified
Schedule of Authorizations. The Committee then adopted the
classified Schedule of Authorizations by voice vote.
OPEN SESSION
By unanimous consent, the Committee returned to open
session.
The Committee then adopted a motion by the Chairman to
favorably report the bill H.R. 754 to the House, as amended.
The motion was agreed to by a record vote of 7 ayes to 6 noes,
with 1 member voting present:
Voting aye: Mr. Rogers (Chairman), Mr. Thornberry,
Mr. Conaway, Mr. LoBiondo, Mr. Nunes, Mr. Westmoreland,
Mrs. Bachmann.
Voting no: Mr. Ruppersberger, Ms. Schakowsky, Mr.
Langevin, Mr. Schiff, Mr. Boren, Mr. Chandler.
Voting present: Mr. Thompson.
Section-by-Section Analysis and Explanation of the Amendment
Section 1--Short title and table of contents
Section 1 contains the short title for the bill and the
Table of Contents.
TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS
Section 101--Authorization of appropriations
Section 101 of the bill authorizes appropriations for the
intelligence and intelligence-related activities of these
elements of the United States Government: The Office of the
Director of National Intelligence (including the National
Counterterrorism Center), the Central Intelligence Agency, the
Department of Defense, the Defense Intelligence Agency, the
National Security Agency, the Departments of the Army, Navy and
Air Force, the Coast Guard, the Department of State, the
Department of the Treasury, the Department of Energy, the
Department of Justice, the Federal Bureau of Investigation, the
Drug Enforcement Administration, the National Reconnaissance
Office, the National Geospatial Intelligence Agency, and the
Department of Homeland Security.
Section 102--Classified Schedule of Authorizations
Section 102 provides that the amounts and personnel
ceilings authorized under Section 101 shall be specified in the
accompanying classified Schedule of Authorizations, which shall
be made available to the Committee on Appropriations and to the
President.
Section 103--Intelligence Community Management Account
Section 103 authorizes appropriations for the Intelligence
Community Management Account (ICMA) of the DNI and sets the
authorized full-time equivalent personnel levels for the
elements within the ICMA for Fiscal Year 2011.
Section 103 also authorizes additional classified
appropriations and personnel levels for the Community
Management Account as specified in the classified Schedule of
Authorizations and permits the funding for advanced research
and development to remain available through September 30, 2012.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
Section 201--Authorization of appropriations
Section 201 authorizes $292,000,000 for the Central
Intelligence Agency Retirement and Disability System (CIARDS).
TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS
Section 301--Restriction on conduct of intelligence activities
Section 301 provides that the authorization of funds in
this act does not constitute authority for the conduct of any
intelligence activity not otherwise authorized by the
Constitution or laws of the United States.
Section 302--Increase in employee compensation and benefits authorized
by law
Section 302 provides that the authorized amounts may be
increased by such additional or supplemental amounts as may be
necessary for increases in compensation or benefits authorized
by law.
Section 303--Non-reimbursable detail of other personnel
Section 303 revises Section 113A of the National Security
Act of 1947 (which was amended by Section 302 of the
Intelligence Authorization Act of Fiscal Year 2010, Pub. L. No.
111-259) to clarify that it only applies to non-reimbursable
details and that it does not limit any other source of
authority for reimbursable or non-reimbursable details. Section
113A was intended to extend the period of time an employee
could be detailed on a non-reimbursable detail from one year to
two years. This section would clarify the language in 113A,
which may have been interpreted to constrain other statutory
provisions that authorize reimbursable or non-reimbursable
details longer than two years.
TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY
Section 401--Schedule and requirements for the National
Counterintelligence Strategy
Section 401 amends the Counterintelligence Enhancement Act
of 2002 to require the National Counterintelligence Strategy be
aligned with the policies and strategy of the DNI. It also
requires the Strategy to be revised or updated once every three
years instead of annually.
Section 402--Insider threat detection program
Section 402 requires the DNI to establish an initial
operating capability for an effective automated insider threat
detection program for the IC in order to detect unauthorized
access to or use or transmission of classified intelligence by
October 1, 2012 and a fully operational program by October 1,
2013. It also requires a report from the DNI by December 1,
2011 on the resources required to implement the program.
Section 411--Defense Intelligence Agency counterintelligence and
expenditures
Section 411 amends Section 105 of the National Security Act
of 1947, on the responsibilities of Intelligence Community
elements in the Department of Defense, to clarify that the
responsibilities of the DIA include counterintelligence as well
as human intelligence activities.
Section 411 also provides the Director of the Defense
Intelligence Agency (DIA) with the authority to expend funds
for objects of a confidential, extraordinary, or emergency
nature. This authority is limited to no more than five percent
of the amounts available to the Director of DIA for human
intelligence and counterintelligence activities unless the
Director notifies the congressional intelligence committees
thirty days in advance. It also requires an annual report on
expenditures made under this authority.
Section 412--Accounts and transfer authority for appropriations and
other amounts for the intelligence elements of the Department
of Defense
Section 412 authorizes the Secretary of Defense to transfer
defense appropriations into an account or accounts created for
receipt of such funds. These accounts may receive transfers and
reimbursement from transactions between the defense
intelligence elements and other entities, and the Director of
National Intelligence may also transfer funds into these
accounts. Appropriations transferred pursuant to this section
shall remain available for the same time period, and for the
same purposes, as the appropriations from which transferred.
This provision is intended to grant authority to the
Secretary of Defense to transfer appropriations available for
intelligence and intelligence-related activities (including
those related to any communications-related activity conducted
by an element of the intelligence community) to designated
accounts to help the Intelligence Community reach and maintain
an auditable status. This provision would ensure that all funds
appropriated to agencies funded through the National
Intelligence Program could be more readily accounted for and
auditable.
Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee held a hearing on
the classified budgetary issues raised by H.R. 754 on February
17, 2011, in addition to multiple hearings held on the
President's budget request in the 111th Congress. The bill, as
reported by the Committee, reflects conclusions reached by the
Committee in light of this oversight activity.
General Performance Goals and Objectives
In accordance with clause 3(c) of House rule XIII, the
Committee's performance goals and objectives are reflected in
the descriptive portions of this report.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. In compliance with this requirement, the Committee
has received a letter from the Congressional Budget Office
included herein.
Statement on Congressional Earmarks
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee states that the bill as
reported contains no congressional earmarks, limited tax
benefits, or limited tariff benefits.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 754 from the Director of
the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 1, 2011.
Hon. Mike Rogers,
Chairman, Permanent Select Committee on Intelligence,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 754, the
Intelligence Authorization Act for Fiscal Year 2011.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jason
Wheelock.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 754--Intelligence Authorization Act for Fiscal Year 2011
Summary: H.R. 754 would authorize appropriations for fiscal
year 2011 for intelligence activities of the U.S. government,
for the Intelligence Community Management Account (ICMA), and
for the Central Intelligence Agency Retirement and Disability
System (CIARDS).
Since CBO does not provide estimates for classified
programs, this estimate addresses only the unclassified
portions of the bill. In addition, CBO cannot provide estimates
for certain provisions in the unclassified portion of the bill
because they concern classified intelligence programs. On that
limited basis, and assuming appropriation of the authorized
amounts, CBO estimates that spending under H.R. 754 would total
$654 million from funding authorized for fiscal year 2011. That
total would be $47 million lower than spending from the
annualized amounts currently available for 2011.
Pay-as-you-go procedures do not apply to this legislation
because it would not affect direct spending or revenues.
H.R. 754 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 754 is shown in the following table.
The costs of this legislation fall within budget function 050
(national defense).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2011-2016
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATIONa
Intelligence Community Management Account
Spending Under Current Law:
Estimated Budget Authority................. 708 0 0 0 0 0 708
Estimated Outlays.......................... 460 163 57 14 7 0 701
Proposed Changes:
Authorization Level........................ -47 0 0 0 0 0 -47
Estimated Outlays.......................... -31 -11 -4 -1 0 0 -47
Spending Under H.R. 754:
Authorization Level........................ 661 0 0 0 0 0 661
Estimated Outlays.......................... 429 152 53 13 7 0 654
----------------------------------------------------------------------------------------------------------------
aUnder Public Law 112-6, Additional Continuing Appropriations Amendments, 2011, funding is provided through
April 8, 2011, for the Intelligence Community Management Account. On an annualized basis, funding would total
$708 million.
Basis of estimate:
Spending subject to appropriation
For this estimate CBO assumes that the legislation will be
enacted in the next few months and the authorized amount will
be appropriated shortly thereafter.
Section 103 would authorize the appropriation of $661
million for the ICMA, which provides the principal source of
funding for the Office of the Director of National Intelligence
and resources for coordinating programs, overseeing budgets,
and managing the intelligence agencies. Under Public Law 112-6,
Additional Continuing Appropriations Amendments, 2011, funding
is provided for the ICMA through April 8, 2011. At the rate
provided under that law, funding for the ICMA, on an annualized
basis, would total $708 million in 2011. Since the amount that
would be authorized by H.R. 754 is $47 million lower than that
amount, CBO estimates that, assuming appropriation of the
authorized amount, implementing this provision would result in
spending over the 2011-2016 period totaling $654 million ($47
million less than the annualized amounts currently available).
Section 402 would require that not later than October 1,
2012, the Director of National Intelligence establish in each
element of the intelligence community an initial operating
capability for an automated program that would detect the
unauthorized access, use, or transmission of classified
intelligence by members of the intelligence community. The
provision would further require that the system be fully
operable by October 1, 2013. CBO notes that the costs to
achieve those goals in the time allotted by the bill might be
significant; however, because of the classified nature of this
program, CBO cannot provide an estimate of those costs.
Direct spending
Section 201 would authorize the appropriation of $292
million to the Central Intelligence Agency Retirement and
Disability System. CIARDS is a retirement and disability system
for certain employees of the Central Intelligence Agency, and
the appropriation covers various unfunded liabilities of the
system. The appropriation to CIARDS is considered mandatory and
the authorization under this bill would be the same as the
amount under the CBO baseline. Thus, this estimate does not
ascribe any additional cost to that provision.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: H.R. 754
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Previous CBO estimate: On March 31, 2011, CBO transmitted a
cost estimate for the Intelligence Authorization Act for 2011,
as ordered reported by the Senate Select Committee on
Intelligence on March 15, 2011. The difference in the cost
estimates reflect the difference in the amount authorized for
2011 funding of the ICMA by the two bills. The Senate version
would authorize $650 million, while H.R. 754 would authorize
$661 million.
Estimate prepared by: Federal Costs: Jason Wheelock; Impact
on State, Local, and Tribal Governments: J'nell Blanco; Impact
on the Private Sector: Elizabeth Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
NATIONAL SECURITY ACT OF 1947
short title
That this Act may be cited as the ``National Security Act of
1947''.
TABLE OF CONTENTS
Sec. 2. Declaration of policy.
* * * * * * *
[Sec. 113A. Detail of other personnel.]
Sec. 113A. Non-reimbursable detail of other personnel.
* * * * * * *
TITLE I--COORDINATION FOR NATIONAL SECURITY
* * * * * * *
RESPONSIBILITIES OF THE SECRETARY OF DEFENSE PERTAINING TO THE NATIONAL
INTELLIGENCE PROGRAM
Sec. 105. (a) * * *
(b) Responsibility for the Performance of Specific
Functions.--Consistent with sections 102 and 102A of this Act,
the Secretary of Defense shall ensure--
(1) * * *
* * * * * * *
(5) through the Defense Intelligence Agency (except
as otherwise directed by the President or the National
Security Council), effective management of Department
of Defense human intelligence and counterintelligence
activities, including defense attaches; and
* * * * * * *
(c) Expenditure of Funds by the Defense Intelligence
Agency.--(1) Subject to paragraphs (2) and (3), the Director of
the Defense Intelligence Agency may expend amounts made
available to the Director for human intelligence and
counterintelligence activities for objects of a confidential,
extraordinary, or emergency nature, without regard to the
provisions of law or regulation relating to the expenditure of
Government funds.
(2) The Director of the Defense Intelligence Agency may not
expend more than five percent of the amounts made available to
the Director for human intelligence and counterintelligence
activities for a fiscal year for objects of a confidential,
extraordinary, or emergency nature in accordance with paragraph
(1) during such fiscal year unless--
(A) the Director notifies the congressional
intelligence committees of the intent to expend the
amounts; and
(B) 30 days have elapsed from the date on which the
Director notifies the congressional intelligence
committees in accordance with subparagraph (A).
(3) For each expenditure referred to in paragraph (1), the
Director shall certify that such expenditure was made for an
object of a confidential, extraordinary, or emergency nature.
(4) Not later than December 31 of each year, the Director of
the Defense Intelligence Agency shall submit to the
congressional intelligence committees a report on any
expenditures made during the preceding fiscal year in
accordance with paragraph (1).
[(c)] (d) Use of Elements of Department of Defense.--The
Secretary of Defense, in carrying out the functions described
in this section, may use such elements of the Department of
Defense as may be appropriate for the execution of those
functions, in addition to, or in lieu of, the elements
identified in this section.
* * * * * * *
[DETAIL OF OTHER PERSONNEL
[Sec. 113A. Except as provided in section 904(g)(2) of the
Counterintelligence Enhancement Act of 2002 (50 U.S.C.
402c(g)(2)) and section 113 of this Act, and notwithstanding
any other provision of law, an officer or employee of the
United States or member of the Armed Forces may be detailed to
the staff of an element of the intelligence community funded
through the National Intelligence Program from another element
of the intelligence community or from another element of the
United States Government on a reimbursable or nonreimbursable
basis, as jointly agreed to by the head of the receiving
element and the head of the detailing element, for a period not
to exceed 2 years.]
NON-REIMBURSABLE DETAIL OF OTHER PERSONNEL
Sec. 113A. An officer or employee of the United States or
member of the Armed Forces may be detailed to the staff of an
element of the intelligence community funded through the
National Intelligence Program from another element of the
intelligence community or from another element of the United
States Government on a non-reimbursable basis, as jointly
agreed to by the heads of the receiving and detailing elements,
for a period not to exceed two years. This section does not
limit any other source of authority for reimbursable or non-
reimbursable details.
* * * * * * *
----------
COUNTERINTELLIGENCE ENHANCEMENT ACT OF 2002
* * * * * * *
TITLE IX--COUNTERINTELLIGENCE ACTIVITIES
* * * * * * *
SEC. 904. OFFICE OF THE NATIONAL COUNTERINTELLIGENCE EXECUTIVE.
(a) * * *
* * * * * * *
(d) Functions.--Subject to the direction and control of the
National Counterintelligence Executive, the functions of the
Office of the National Counterintelligence Executive shall be
as follows:
(1) * * *
(2) National counterintelligence strategy.--[Subject]
(A) Requirement to produce.--Subject to
subsection (e), in consultation with
appropriate department and agencies of the
United States Government, and private sector
entities, and based on the most current
National Threat Identification and
Prioritization Assessment under paragraph (1),
to produce [on an annual basis] a strategy for
the counterintelligence programs and activities
of the United States Government to be known as
the National Counterintelligence Strategy.
(B) Revision and requirement.--The National
Counterintelligence Strategy shall be revised
or updated at least once every three years and
shall be aligned with the strategy and policies
of the Director of National Intelligence.
* * * * * * *
----------
TITLE 10, UNITED STATES CODE
SUBTITLE A--GENERAL MILITARY LAW
* * * * * * *
PART I--ORGANIZATION AND GENERAL MILITARY POWERS
* * * * * * *
CHAPTER 21--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS
* * * * * * *
SUBCHAPTER I--GENERAL MATTERS
Sec.
421. Funds for foreign cryptologic support.
* * * * * * *
429. Appropriations for defense intelligence elements: accounts for
transfer; transfer.
* * * * * * *
Sec. 429. Appropriations for defense intelligence elements: accounts
for transfer; transfer
(a) Accounts for Appropriations for Defense Intelligence
Elements.--The Secretary of the Treasury shall establish one or
more accounts for the receipt of appropriations and other
amounts transferred pursuant to subsection (b).
(b) Transfers Authorized.--(1) There may be transferred to an
account established pursuant to subsection (a) the following:
(A) Appropriations transferred by the Secretary of
Defense from appropriations of the Department of
Defense available for intelligence, intelligence-
related activities, and intelligence-related
communications.
(B) Appropriations and other amounts transferred by
the Director of National Intelligence from
appropriations and other amounts available for the
defense intelligence elements.
(C) Amounts and reimbursements in connection with
transactions authorized by law between the defense
intelligence elements and other entities.
(2) The transfer authority of the Secretary of Defense under
paragraph (1)(A) is in addition to any other transfer authority
available to the Secretary by law.
(c) Availability of Appropriations and Amounts Transferred.--
(1) Appropriations transferred pursuant to subsection (b) shall
remain available for the same time period, and shall be
available for the same purposes, as the appropriations from
which transferred.
(2) Appropriation balances in an account established pursuant
to subsection (a) may be transferred back to the account or
accounts from which such balances originated as an
appropriation refund.
(d) Defense Intelligence Elements Defined.--In this section,
the term ``defense intelligence elements'' means the agencies,
offices, and elements of the Department of Defense that are
included within the elements of the intelligence community
specified in or designated under section 3(4) of the National
Security Act of 1947 (50 U.S.C. 401a(4)).
* * * * * * *
MINORITY VIEWS
H.R. 754--Intelligence Authorization Act for Fiscal Year 2011
The way the House Permanent Select Committee on
Intelligence conducts effective oversight of the Intelligence
Community (IC) is by passing an intelligence budget. We believe
it is vitally important that Congress pass an Intelligence
Authorization Act before the appropriators put together their
spending bill to provide meaningful oversight and budgetary
direction for the IC.
Despite this shared bipartisan goal of passing an
intelligence budget, the majority embarked on a whirlwind
process to get the Intelligence Authorization Act for Fiscal
Year 2011 passed. The bill will have little impact so late in
the year. The fiscal year is half over. Instead, we wish the
majority had accepted the minority's invitation to begin this
Congress on a clean slate by immediately turning to the
President's Fiscal Year 2012 budget request and embarking on a
full process.
For FY 2011, the Committee did not follow ``regular order''
and did not conduct proper oversight to ensure our intelligence
professionals have the resources, tools and capabilities they
need to keep our country safe. In the 112th Congress, the
Committee did not hold a single hearing. It held one briefing
where staff were ``witnesses'' and testified about the elements
of the bill. This denied Members of the Committee an
opportunity to speak directly with representatives from the IC
for which this bill authorizes funding.
Eight of the twenty Members on the Intelligence Committee
are new to the Committee this year. They were asked to vote on
something they had barely seen. In fact, the final classified
annex which contains the figures for the budget was only
provided to Members the morning of the markup proceeding.
Members were asked to vote on a bill that authorizes tens of
billions of dollars without having a chance to even read it.
We believe the Committee needs to reestablish its
authorizing authority and have a meaningful impact on the
direction of the intelligence budget. We must pass a budget
that will provide a detailed blue print for the spending bill
before it is created, rather than the other way around. This
will ensure proper oversight. FY 2011 follows the spending bill
in almost every way.
FY 2012 provides us a fresh start. Committee work is
already underway. Eight full committee hearings have been
scheduled. Professionals from the IC have been invited to
testify so Members can make the necessary and important
decisions on programs and policy to produce well thought out,
meaningful legislation. We look forward to this more rigorous
process that will strengthen our national security.
We know the threats from Al-Qaeda and its affiliates around
the world are real. We know we must continue to push America
ahead in the space race and make sure we have the best and most
cost effective satellites available. We also know we must make
cybersecurity a priority. We can make a real difference and
give our intelligence professionals risking their lives around
the world what they need to get the job done. We look forward
to doing that for FY 2012.
C.A. Dutch Ruppersberger.
Mike Thompson.
Jan Schakowsky.
Jim Langevin.
Adam Schiff.
Dan Boren.
Luis Gutierrez.
Ben Chandler.
