[Congressional Record Volume 158, Number 169 (Friday, December 28, 2012)] [Senate] [Pages S8513-S8515] INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2013 Mr. REID. Mr. President, I ask unanimous consent that the Senate proceed to the consideration of Calendar No. 475, S. 3454. The PRESIDING OFFICER. The clerk will report the bill by title. A bill (S. 3454) to authorize appropriations for fiscal year 2013 for intelligence and intelligence-related activities of the United States Government and the Office of the Director of National Intelligence, the Central Intelligence Agency Retirement and Disability System, and for other purposes. There being no objection, the Senate proceeded to consider the bill. Mrs. FEINSTEIN. Mr. President, among the unfinished business before the Senate is the consideration of the Intelligence Authorization Act for Fiscal Year 2013. I am asking today for unanimous consent to approve this legislation with a managers' amendment worked out both with vice chairman Chambliss and the chairman and ranking member of the House Permanent Select Committee on Intelligence, in consultation with the Armed Services and Appropriations Committees. The Senate Select Committee on Intelligence reported its Fiscal Year 2013 bill, S. 3454, with its accompanying report, S. Rpt. 112-192, on July 30, 2012 by a vote of 14-1. The bill and report have been publicly available since it was reported. The classified annex reported from the Committee was also available for all Senators to review in the Committee's office. S. 3454 as reported from our Committee was not without controversy, especially with regard to provisions in the bill that were meant to address the wholly unacceptable and large-scale disclosures of classified information to the media. Since the bill was reported out, the Committee has received thoughtful comments from our colleagues, media organizations, and from organizations that advocate for greater governmental transparency. As a result of these comments, and technical suggestions received from the Executive Branch, we have decided to remove ten of the twelve sections in the title of the original bill that addressed unauthorized disclosures of classified information so that we might ensure enactment this year of the important other provisions of the bill. Unfortunately, I am certain that damaging leaks of classified information will continue, and so the Committee will need to continue to look for acceptable ways to address this problem. Let me briefly describe the managers' amendment and where we have made modifications in what was reported from the Committee. As always, the intelligence authorization bill has two pieces: the legislative text, which is unclassified, and a classified annex that contains the Committee's authorization of intelligence spending. The bill contains a number of legislative provisions requested by the Administration to give the intelligence community the authorities and flexibilities it needs to continue protecting the American people and providing policymakers information for foreign policy and security decisions, as well as for the effective and appropriate functioning of our intelligence apparatus. Among other things, this bill includes: Repeal of four recurring reporting requirements burdensome to Intelligence Community agencies when the information in such reports is duplicative, or is provided to the Congress through other means. We regularly hear from intelligence officials that they spend so much time writing reports that it interferes with collection, analysis, and management of intelligence activities. Modification of personnel authorities to facilitate more ``joint duty'' assignments within the Intelligence Community that will create shared knowledge across different elements of the IC. These provisions, and several others that are mainly technical in nature, were requested by the director of National Intelligence and incorporated into the bill. Other sections were initiated by the Committee to assist Congressional oversight efforts. These include, for example, a requirement for corrective action plans to be developed to address [[Page S8514]] the issue of improper payments made by intelligence agencies. We also require notification to the congressional intelligence committees under certain circumstances with respect to certain disclosures of national intelligence information. As this managers' amendment represents the combined efforts of the Senate and House, we have also included three provisions from the House-passed bill which were not in the Committee's original bill. These address security clearance reciprocity, subcontractor business opportunities in the Intelligence Community, and a report on supply chain vulnerabilities. I am attaching at the end of this statement a section-by-section analysis that describes each of the sections of this managers' amendment. It is my hope that the provisions in this bill will continue to aid the Intelligence Community as it conducts its missions, ensure better stewardship of taxpayer dollars, and support the thousands of civilians and military employees who work throughout the Intelligence Community. As I mentioned, this managers' amendment also includes modifications to the classified annex and the Schedule of Authorizations, modified to represent the consensus of both congressional intelligence committees. I am unable to describe in detail the Committee's classified schedule and annex, but it is available to all Senators for their review in the Committee's spaces. The Committee has sought to ensure that funding is authorized to continue and enhance important intelligence collection and analysis programs, covert actions, and counterintelligence. At the same time, we have cut funding for programs that were functioning poorly or at expenditure rates below expectations, and to shift funding from lower priorities to higher ones. As always, the Committee has held numerous hearings and briefings on the President's spending request. As was announced in late October, intelligence spending decreased slightly in Fiscal Year 2012, and that trend will continue in Fiscal Year 2013. Our annex contains an overall funding level that is very close to the President's request, and we have attempted to find places to reduce spending that will not sacrifice any important work of the intelligence agencies. I believe we have addressed all of the concerns that have been brought to our attention by our colleagues and the public. I thus urge passage of this managers' amendment and enactment of this important legislation before the end of the session. I ask unanimous consent that the section by section analysis be printed in the Record. There being no objection, the material was ordered to be printed in the Record, as follows: Section-by-Section Analysis and Explanation The following is a section-by-section analysis and explanation of the Intelligence Authorization Act for Fiscal Year 2013. TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS Section 101. Authorization of appropriations Section 101 lists the United States Government departments, agencies, and other elements for which the Act authorizes appropriations for intelligence and intelligence-related activities for Fiscal Year 2013. Section 102. Classified Schedule of Authorizations Section 102 provides that the details of the amounts authorized to be appropriated for intelligence and intelligence-related activities and the applicable personnel levels by program for Fiscal Year 2013 are contained in the classified Schedule of Authorizations and that the classified Schedule of Authorizations shall be made available to the Committees on Appropriations of the Senate and House of Representatives and to the President. Section 103. Personnel ceiling adjustments Section 103 is intended to provide additional flexibility to the Director of National Intelligence (DNI) in managing the civilian personnel of the Intelligence Community. Section 103(a) provides that the DNI may authorize employment of civilian personnel in Fiscal Year 2013 in excess of the number of authorized positions by an amount not exceeding 3 percent of the total limit applicable to each Intelligence Community element under Section 102. The DNI may do so only if necessary to the performance of important intelligence functions. Section 103(b) requires the DNI to establish guidelines that would ensure a uniform and accurate method of counting certain personnel. The DNI has issued such a policy. Subsection (b) confirms in statute the obligation of the DNI to establish these guidelines. The DNI must report the decision to allow an Intelligence Community element to exceed the personnel ceiling in advance to the congressional intelligence committees. Section 104. Intelligence Community Management Account Section 104 authorizes appropriations for the Intelligence Community Management Account (ICMA) of the DNI and sets the authorized personnel levels for the elements within the ICMA for Fiscal Year 2013. Subsection (a) authorizes appropriations of $540,721,000 for Fiscal Year 2013 for the activities of the ICMA. Subsection (b) authorizes 835 positions for elements within the ICMA for Fiscal Year 2013 and provides that personnel serving in such elements may be permanent employees of the Office of the Director of National Intelligence (ODNI) or detailed from other elements of the United States Government. Subsection (c) authorizes additional appropriations and personnel for the classified 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, 2014. TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM Section 201. Authorization of appropriations Section 201 authorizes appropriations in the amount of $514,000,000 for Fiscal Year 2013 for the Central Intelligence Agency (CIA) Retirement and Disability Fund. TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS Section 301. Restriction on conduct of intelligence activities Section 301 provides that the authorization of appropriations by the Act shall not be deemed to constitute authority for the conduct of any intelligence activity that is 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 funds authorized to be appropriated 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 compensation or benefits authorized by law. Section 303. Non-reimbursable details Section 303 amends Section 113A of the National Security Act of 1947 (50 U.S.C. 404h-1) to increase the length of time an officer or employee of the federal government can be detailed to the staff of an element of the Intelligence Community funded through the National Intelligence Program (NIP) from two years to three. In addition, Section 303 clarifies that a non-reimbursable detail made under Section 113A shall not be considered an augmentation of the appropriations of the receiving element of the Intelligence Community. The DNI requested that an extension of the length of service from two years to three years be made for members of the Armed Forces detailed to an element of Intelligence Community. This request was intended to align Section 113A with requirements for joint duty assignments among the military. Section 664(a) of Title 10 provides that joint duty assignments for military officers, other than general and flag officers, shall be no less than three years. Section 303 provides the flexibility of a three-year length of service to civilian employees as well as military officers. Section 304. Automated insider threat detection program Section 304 extends by one year the milestones for establishment of an automated insider threat detection program under Section 402 of the Intelligence Authorization Act for Fiscal Year 2011 (Public Law 112-18). The administration had requested a two-year extension of the milestone for ``initial operating capability'' and a three- year extension of the milestone for ``full operating capability.'' The one-year extensions are intended to ensure that the Intelligence Community moves more rapidly toward establishment of this program. Section 305. Software licensing Section 305 requires the chief information officer for an element of the Intelligence Community to conduct an inventory of software licenses held by such element, including those utilized and unutilized, by the element. This inventory is to be conducted in consultation with the Chief Information Officer of the Intelligence Community (CIO) and completed within 120 days of enactment. Not later than 180 days after enactment, the CIO shall provide the congressional intelligence committees with a copy of the reports along with any comments the CIO wishes to provide. The CIO shall transmit any portion of a report involving a component of a department of the U.S. government to the congressional committees with jurisdiction over such department simultaneously with submission of such report to the congressional intelligence committees. Section 306. Strategy for security clearance reciprocity Section 306 requires the President to develop a strategy and process for carrying out the requirements of section 3001(d) of the Intelligence Reform and Terrorism Prevention Act of 2004, which concerns reciprocity of security clearance access determinations across agencies. [[Page S8515]] Section 307. Improper Payments Elimination and Recovery Act of 2010 compliance Section 307 requires the DNI and the directors of the CIA, the Defense Intelligence Agency (DIA), the National Geospatial-Intelligence Agency (NGA), and the National Security Agency (NSA) each to develop a corrective action plan, with major milestones, that delineates how such agencies will achieve compliance with the Improper Payments Elimination and Recovery Act of 2010, not later than September 30, 2013. Section 307(b) requires the relevant inspectors general to review the corrective action plan and assess whether it is likely to lead to compliance. Each assessment is to be provided to the congressional intelligence committees. The corrective action plans and inspector general assessments involving the DIA, NGA, and NSA shall also be submitted to the armed services committees of the Senate and House of Representatives. Section 308. Subcontractor notification process Section 308 requires the DNI to submit a report to the congressional intelligence committees assessing the method by which contractors at any tier under a contract entered into with an element of the Intelligence Community are granted security clearances and notified of classified contracting opportunities within the Federal Government and recommendations for the improvement of such method. Section 309. Modification of reporting schedule Section 309 changes the dates by which the inspectors general of the Intelligence Community and the CIA are required to prepare and submit semiannual reports on the activities of their offices from a calendar year basis to a fiscal year basis. This change will align these reporting requirements with the reporting requirements of other inspectors general in the Intelligence Community and facilitate joint audits, inspections and investigations. Section 310. Repeal of certain reporting requirements Congress frequently requests information from the Intelligence Community in the form of reports, the contents of which are specifically defined by statute. The reports prepared pursuant to these statutory requirements provide Congress with an invaluable source of information about specific matters of concern. Congressional reporting requirements, and particularly recurring reporting requirements, can place a significant burden on the resources of the Intelligence Community. In some cases, annual reports can be replaced with briefings or notifications that provide the Congress with more timely information and offer the Intelligence Community a direct line of communication to respond to congressional concerns. In response to a request from the DNI, Section 310 eliminates four reports that were burdensome to the Intelligence Community when the information in the reports could be obtained through other means or was no longer considered relevant to current concerns. TITLE IV--MATTERS RELATING TO THE CENTRAL INTELLIGENCE AGENCY Section 401. Working capital fund amendments Section 401 amends Section 21 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403u) to provide authority for the service providers under the CIA Central Services Program to use resources to make their services known to their authorized customer base through government communication channels, but clarifies this authority shall not be used to distribute gifts or promotional items. In addition, Section 401 authorizes service providers to deposit receipts from the sale of their recyclable materials into the CIA working capital fund. TITLE V--OTHER MATTERS Section 501. Homeland Security Intelligence Program Section 501 establishes the Homeland Security Intelligence Program (HSIP) within the Department of Homeland Security for activities of the Office of Intelligence and Analysis (OIA) that serve predominantly a departmental mission. The OIA is currently funded through the NIP. Section 502. Extension of National Commission for the Review of the Research and Development Programs of the United States Intelligence Community Section 502 extends the date by which the National Commission for the Review of the Research and Development Programs of the United States Intelligence Community is required to submit a report on its findings from ``not later than one year after the date on which all members of the Commission are appointed pursuant to Section 701(a)(3) of the Intelligence Authorization Act for Fiscal Year 2010'' to not later than March 31, 2013, which is effectively one year after the Commission was able to begin its review. The extension was requested by the co-chairs of the Commission. Section 503. Protecting the information technology supply chain of the United States Section 503 requires the DNI to submit to the congressional intelligence committees a report that identifies foreign suppliers of information technology that are linked directly or indirectly to a foreign government and assesses the vulnerability to malicious activity of the telecommunications networks of the United States due to the presence of technology produced by such foreign suppliers. Section 504. Notification regarding the authorized public disclosure of national intelligence Section 504 requires government officials responsible for making certain authorized disclosures of national intelligence or intelligence related to national security to notify the congressional intelligence committees on a timely basis with respect to such disclosures. On a timely basis in this instance does not mean at the exact same time but should be sufficiently timely to keep the committees fully and currently informed. This provision is intended to ensure that the intelligence committees are made aware of authorized disclosures of national intelligence or intelligence related to national security that are made to media personnel or likely to appear in the press, so that, among other things, these authorized disclosures may be distinguished from unauthorized ``leaks.'' Section 504(c) provides that the notification requirement does not apply to a disclosure made pursuant to statutory requirements, in connection with civil, criminal or administrative proceedings, as a result of a declassification review process under Executive Order 13526, or to cleared government representatives with a need to know. Section 504(e) provides a one-year sunset for the notification requirement in this section. Section 505. Technical amendments related to the Office of the Director of National Intelligence Sections 2302 and 3132 of Title 5 of the United States Code exclude from the definition of ``agency'' under those chapters certain specifically listed agencies such as the CIA. In addition, Sections 2302 and 3132 exclude from the definition of ``agency'' those executive agencies that the President determines have as their principal function ``the conduct of foreign intelligence or counterintelligence activities.'' Section 505 amends the definition of agency in Sections 2302 and 3132 to expressly identify the ODNI as an agency excluded from the definition of ``agency'' under those chapters. Section 506. Technical amendment for definition of intelligence agency Title VI of the National Security Act of 1947 imposes criminal penalties for the disclosure of the identity of covert agents of an intelligence agency. The current definition of an ``intelligence agency'' does not include the counterintelligence elements of the Department of Defense or the intelligence and counterintelligence components of other elements of the Intelligence Community despite the fact that these components may be conducting counterintelligence operations jointly with the Federal Bureau of Investigation or under their own independent authority. Section 506 thus amends Section 606(5) of the National Security Act of 1947 (50 U.S.C. 426) to revise the definition of ``intelligence agency'' to include all elements of the Intelligence Community, as found in Section 3(4) of the National Security Act. Section 507. Budgetary effects Section 507 provides that the budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As- You-Go-Act of 2010, shall be determined by reference to the latest statement titled ``Budgetary Effects of PAYGO Legislation'' for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage. ____________________ [Congressional Record Volume 158, Number 169 (Friday, December 28, 2012)] [Senate] [Pages S8515-S8516] From the Congressional Record Online through the Government Printing Office [www.gpo.gov] FISA Mr. CHAMBLISS. Mr. President, earlier today, we were successful in passing H.R. 5949, the FISA Amendments Act Reauthorization Act of 2012, with strong bipartisan support. I am pleased that we are now in a position to pass the Intelligence Authorization Act for Fiscal Year 2013, again with strong bipartisan support. These two bills are the result of Chairman Feinstein's exceptional bipartisan leadership of the Select Committee on Intelligence. It has been my privilege and honor to work with her these past two years during my tenure as Vice Chairman of the Committee. This bill looks a little different than the version we passed out of Committee back in July, by a vote of 14-1. The final product is the result of our extensive efforts to successfully address the concerns raised by the Executive branch, the House of Representatives, and, of course, our own membership. It is a good bill. It contains a number of provisions requested by the administration that will provide the intelligence community with certain authorities necessary to perform its vital mission for our country. Most important, it authorizes the funds appropriated for the intelligence and intelligence-related activities of our government. This congressional budgetary oversight is crucial to our national security. I am also pleased that the bill [[Page S8516]] contains a provision which will require government officials, who are responsible for authorizing the disclosure of national intelligence or intelligence related to national security to the media or the general public, to notify the congressional intelligence committees on a timely basis with respect to such disclosures. It is my hope that the House of Representatives will take this bill up quickly, pass it, and then send it on to the President for signature. Mr. REID. Mr. President, I ask unanimous consent that a Feinstein- Chambliss substitute amendment, which is at the desk, be agreed to; the bill, as amended, be read a third time and the Senate proceed to vote on passage. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment (No. 3441) in the nature of a substitute was agreed to. (The text of the amendment is printed in today's Record under ``Text of Amendments.'') The bill was ordered to be engrossed for a third reading and was read the third time. The PRESIDING OFFICER. Is there any further debate? If not, the bill having been read the third time, the question is, Shall it pass? The bill, (S. 3454), as amended, was passed. Mr. REID. Mr. President, I ask unanimous consent that the motion to reconsider be laid upon the table, with no intervening action or debate, and that any statements related to this matter be printed in the Record. The PRESIDING OFFICER. Without objection, it is so ordered. ____________________ ______ SA 3441. Mr. REID (for Mrs. Feinstein (for herself and Mr. Chambliss)) proposed an amendment to the bill S. 3454, to authorize appropriations for fiscal year 2013 for intelligence and intelligence- related activities of the United States Government and the Office of the Director of National Intelligence, the Central Intelligence Agency Retirement and Disability System, and for other purposes; as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Intelligence Authorization Act for Fiscal Year 2013''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Definitions. TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS Sec. 101. Authorization of appropriations. Sec. 102. Classified Schedule of Authorizations. Sec. 103. Personnel ceiling adjustments. Sec. 104. Intelligence Community Management Account. TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM Sec. 201. Authorization of appropriations. [[Page S8509]] 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 details. Sec. 304. Automated insider threat detection program. Sec. 305. Software licensing. Sec. 306. Strategy for security clearance reciprocity. Sec. 307. Improper Payments Elimination and Recovery Act of 2010 compliance. Sec. 308. Subcontractor notification process. Sec. 309. Modification of reporting schedule. Sec. 310. Repeal of certain reporting requirements. TITLE IV--MATTERS RELATING TO THE CENTRAL INTELLIGENCE AGENCY Sec. 401. Working capital fund amendments. TITLE V--OTHER MATTERS Sec. 501. Homeland Security Intelligence Program. Sec. 502. Extension of National Commission for the Review of the Research and Development Programs of the United States Intelligence Community. Sec. 503. Protecting the information technology supply chain of the United States. Sec. 504. Notification regarding the authorized public disclosure of national intelligence. Sec. 505. Technical amendments related to the Office of the Director of National Intelligence. Sec. 506. Technical amendment for definition of intelligence agency. Sec. 507. Budgetary effects. 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 2013 for the conduct of the intelligence and intelligence-related activities of the following elements of the United States Government: (1) The Office of the Director of National Intelligence. (2) The Central Intelligence Agency. (3) The Department of Defense. (4) The Defense Intelligence Agency. (5) The National Security Agency. (6) The Department of the Army, the Department of the Navy, and the Department of the Air Force. (7) The Coast Guard. (8) The Department of State. (9) The Department of the Treasury. (10) The Department of Energy. (11) The Department of Justice. (12) The Federal Bureau of Investigation. (13) The Drug Enforcement Administration. (14) The National Reconnaissance Office. (15) The National Geospatial-Intelligence Agency. (16) The Department of Homeland Security. SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS. (a) Specifications of Amounts and Personnel Levels.--The amounts authorized to be appropriated under section 101 and, subject to section 103, the authorized personnel ceilings as of September 30, 2013, 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 S. 3454 of the One Hundred Twelfth Congress. (b) Availability of Classified Schedule of Authorizations.-- (1) Availability to committees of congress.--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. (2) Distribution by the president.--Subject to paragraph (3), the President shall provide for suitable distribution of the classified Schedule of Authorizations, or of appropriate portions of the Schedule, within the executive branch. (3) Limits on disclosure.--The President shall not publicly disclose the classified Schedule of Authorizations or any portion of such Schedule except-- (A) as provided in section 601(a) of the Implementing Recommendations of the 9/11 Commission Act of 2007 (50 U.S.C. 415c); (B) to the extent necessary to implement the budget; or (C) as otherwise required by law. SEC. 103. PERSONNEL CEILING ADJUSTMENTS. (a) Authority for Increases.--The Director of National Intelligence may authorize the employment of civilian personnel in excess of the number of positions for fiscal year 2013 authorized by the classified Schedule of Authorizations referred to in section 102(a) if the Director of National Intelligence determines that such action is necessary to the performance of important intelligence functions, except that the number of personnel employed in excess of the number authorized under such section may not, for any element of the intelligence community, exceed 3 percent of the number of civilian personnel authorized under such section for such element. (b) Treatment of Certain Personnel.--The Director of National Intelligence shall establish guidelines that govern, for each element of the intelligence community, the treatment under the personnel levels authorized under section 102(a), including any exemption from such personnel levels, of employment or assignment in-- (1) a student program, trainee program, or similar program; (2) a reserve corps or as a reemployed annuitant; or (3) details, joint duty, or long term, full-time training. (c) Notice to Congressional Intelligence Committees.--The Director of National Intelligence shall notify the congressional intelligence committees in writing at least 15 days prior to the initial exercise of an authority described in subsection (a). SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT. (a) Authorization of Appropriations.--There is authorized to be appropriated for the Intelligence Community Management Account of the Director of National Intelligence for fiscal year 2013 the sum of $540,721,000. 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, 2014. (b) Authorized Personnel Levels.--The elements within the Intelligence Community Management Account of the Director of National Intelligence are authorized 835 positions as of September 30, 2013. 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 2013 such additional amounts as are specified in the classified Schedule of Authorizations referred to in section 102(a). Such additional amounts for advanced research and development shall remain available until September 30, 2014. (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, 2013, there are authorized such additional personnel for the Community Management Account as of that date as are specified in the classified Schedule of Authorizations referred to in section 102(a). 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 2013 the sum of $514,000,000. 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 DETAILS. Section 113A of the National Security Act of 1947 (50 U.S.C. 404h-1) is amended-- (1) by striking ``two years.'' and inserting ``three years.''; and (2) by adding at the end ``A non-reimbursable detail made under this section shall not be considered an augmentation of the appropriations of the receiving element of the intelligence community.''. SEC. 304. AUTOMATED INSIDER THREAT DETECTION PROGRAM. Section 402 of the Intelligence Authorization Act for Fiscal Year 2011 (Public Law 112-18; 50 U.S.C. 403-1 note) is amended-- (1) in subsection (a), by striking ``October 1, 2012,'' and inserting ``October 1, 2013,''; and (2) in subsection (b), by striking ``October 1, 2013,'' and inserting ``October 1, 2014,''. SEC. 305. SOFTWARE LICENSING. (a) In General.--Not later than 120 days after the date of the enactment of this Act, each chief information officer for an element of the intelligence community, in consultation with the Chief Information Officer of the Intelligence Community, shall-- (1) conduct an inventory of software licenses held by such element, including utilized and unutilized licenses; and [[Page S8510]] (2) report the results of such inventory to the Chief Information Officer of the Intelligence Community. (b) Reporting to Congress.--The Chief Information Officer of the Intelligence Community shall-- (1) not later than 180 days after the date of the enactment of this Act, provide to the congressional intelligence committees a copy of each report received by the Chief Information Officer under subsection (a)(2), along with any comments the Chief Information Officer wishes to provide; and (2) transmit any portion of a report submitted under paragraph (1) involving a component of a department of the United States Government to the committees of the Senate and of the House of Representatives with jurisdiction over such department simultaneously with submission of such report to the congressional intelligence committees. SEC. 306. STRATEGY FOR SECURITY CLEARANCE RECIPROCITY. (a) Strategy.--The President shall develop a strategy and a schedule for carrying out the requirements of section 3001(d) of the Intelligence Reform and Terrorism Prevention Act of 2004 (50 U.S.C. 435b(d)). Such strategy and schedule shall include-- (1) a process for accomplishing the reciprocity required under such section for a security clearance issued by a department or agency of the Federal Government, including reciprocity for security clearances that are issued to both persons who are and who are not employees of the Federal Government; and (2) a description of the specific circumstances under which a department or agency of the Federal Government may not recognize a security clearance issued by another department or agency of the Federal Government. (b) Congressional Notification.--Not later than 180 days after the date of the enactment of this Act, the President shall inform Congress of the strategy and schedule developed under subsection (a). SEC. 307. IMPROPER PAYMENTS ELIMINATION AND RECOVERY ACT OF 2010 COMPLIANCE. (a) Plan for Compliance.-- (1) In general.--The Director of National Intelligence, the Director of the Central Intelligence Agency, the Director of the Defense Intelligence Agency, the Director of the National Geospatial-Intelligence Agency, and the Director of the National Security Agency shall each develop a corrective action plan, with major milestones, that delineates how the Office of the Director of National Intelligence and each such Agency will achieve compliance, not later than September 30, 2013, with the Improper Payments Elimination and Recovery Act of 2010 (Public Law 111-204; 124 Stat. 2224), and the amendments made by that Act. (2) Submission to congress.--Not later than 45 days after the date of the enactment of this Act-- (A) each Director referred to in paragraph (1) shall submit to the congressional intelligence committees the corrective action plan required by such paragraph; and (B) the Director of the Defense Intelligence Agency, the Director of the National Geospatial-Intelligence Agency, and the Director of the National Security Agency shall each submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives the corrective action plan required by paragraph (1) with respect to the applicable Agency. (b) Review by Inspectors General.-- (1) In general.--Not later than 45 days after the completion of a corrective action plan required by subsection (a)(1), the Inspector General of each Agency required to develop such a plan, and in the case of the Director of National Intelligence, the Inspector General of the Intelligence Community, shall provide to the congressional intelligence committees an assessment of such plan that includes-- (A) the assessment of the Inspector General of whether such Agency or Office is or is not likely to reach compliance with the requirements of the Improper Payments Elimination and Recovery Act of 2010 (Public Law 111-204; 124 Stat. 2224), and the amendments made by that Act, by September 30, 2013; and (B) the basis of the Inspector General for such assessment. (2) Additional submission of reviews of certain inspectors general.--Not later than 45 days after the completion of a corrective action plan required by subsection (a)(1), the Inspector General of the Defense Intelligence Agency, the Inspector General of the National Geospatial-Intelligence Agency, and the Inspector General of the National Security Agency shall each submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives the assessment of the applicable plan provided to the congressional intelligence committees under paragraph (1). SEC. 308. SUBCONTRACTOR NOTIFICATION PROCESS. Not later than October 1, 2013, the Director of National Intelligence shall submit to the congressional intelligence committees a report assessing the method by which contractors at any tier under a contract entered into with an element of the intelligence community are granted security clearances and notified of classified contracting opportunities within the Federal Government and recommendations for the improvement of such method. Such report shall include-- (1) an assessment of the current method by which contractors at any tier under a contract entered into with an element of the intelligence community are notified of classified contracting opportunities; (2) an assessment of any problems that may reduce the overall effectiveness of the ability of the intelligence community to identify appropriate contractors at any tier under such a contract; (3) an assessment of the role the existing security clearance process has in enhancing or hindering the ability of the intelligence community to notify such contractors of contracting opportunities; (4) an assessment of the role the current security clearance process has in enhancing or hindering the ability of contractors at any tier under a contract entered into with an element of the intelligence community to execute classified contracts; (5) a description of the method used by the Director of National Intelligence for assessing the effectiveness of the notification process of the intelligence community to produce a talented pool of subcontractors; (6) a description of appropriate goals, schedules, milestones, or metrics used to measure the effectiveness of such notification process; and (7) recommendations for improving such notification process. SEC. 309. MODIFICATION OF REPORTING SCHEDULE. (a) Inspector General of the Intelligence Community.-- Section 103H(k)(1)(A) of the National Security Act of 1947 (50 U.S.C. 403-3h(k)(1)(A)) is amended-- (1) by striking ``January 31 and July 31'' and inserting ``October 31 and April 30''; and (2) by striking ``December 31 (of the preceding year) and June 30,'' and inserting ``September 30 and March 31,''. (b) Inspector General for the Central Intelligence Agency.-- (1) In general.--Section 17(d)(1) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403q(d)(1)) is amended-- (A) by striking ``January 31 and July 31'' and inserting ``October 31 and April 30''; (B) by striking ``December 31 (of the preceding year) and June 30,'' and inserting ``September 30 and March 31,''; and (C) by striking ``Not later than the dates each year provided for the transmittal of such reports in section 507 of the National Security Act of 1947,'' and inserting ``Not later than 30 days after the date of the receipt of such reports,''. (2) Conforming amendments.--Section 507(b) of the National Security Act of 1947 (50 U.S.C. 415b(b)) is amended-- (A) by striking paragraph (1); and (B) by redesignating paragraphs (2), (3), and (4), as paragraphs (1), (2), and (3), respectively. SEC. 310. REPEAL OF CERTAIN REPORTING REQUIREMENTS. (a) Repeal of Reporting Requirements.-- (1) Acquisition of technology relating to weapons of mass destruction and advanced conventional munitions.--Section 721 of the Intelligence Authorization Act for Fiscal Year 1997 (50 U.S.C. 2366) is repealed. (2) Safety and security of russian nuclear facilities and nuclear military forces.--Section 114 of the National Security Act of 1947 (50 U.S.C. 404i) is amended-- (A) by striking subsections (a) and (d); and (B) by redesignating subsections (b) and (c) as subsections (a) and (b), respectively. (3) Intelligence community business systems budget information.--Section 506D of the National Security Act of 1947 (50 U.S.C. 415a-6) is amended by striking subsection (e). (4) Measures to protect the identities of covert agents.-- Title VI of the National Security Act of 1947 (50 U.S.C. 421 et seq.) is amended-- (A) by striking section 603; and (B) by redesignating sections 604, 605, and 606 as sections 603, 604, and 605, respectively. (b) Technical and Conforming Amendments.-- (1) Report submission dates.--Section 507 of the National Security Act of 1947 (50 U.S.C. 415b) is amended-- (A) in subsection (a)-- (i) in paragraph (1)-- (I) by striking subparagraphs (A), (C), and (D); (II) by redesignating subparagraphs (B), (E), (F), (G), (H), and (I) as subparagraphs (A), (B), (C), (D), (E), and (F), respectively; and (III) in subparagraph (D), as so redesignated, by striking ``section 114(c).'' and inserting ``section 114(a).''; and (ii) by amending paragraph (2) to read as follows: ``(2) The date for the submittal to the congressional intelligence committees of the annual report on the threat of attack on the United States from weapons of mass destruction required by section 114(b) shall be the date each year provided in subsection (c)(1)(B).''; (B) in subsection (c)(1)(B), by striking ``each'' and inserting ``the''; and (C) in subsection (d)(1)(B), by striking ``an'' and inserting ``the''. (2) Table of contents of the national security act of 1947.--The table of contents in the first section of the National Security Act of 1947 is amended by striking the items relating to sections 603, 604, 605, and 606 and inserting the following new items: ``Sec. 603. Extraterritorial jurisdiction. ``Sec. 604. Providing information to Congress. ``Sec. 605. Definitions.''. [[Page S8511]] TITLE IV--MATTERS RELATING TO THE CENTRAL INTELLIGENCE AGENCY SEC. 401. WORKING CAPITAL FUND AMENDMENTS. Section 21 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403u) is amended as follows: (1) In subsection (b)-- (A) in paragraph (1)-- (i) in subparagraph (B), by striking ``and'' at the end; (ii) in subparagraph (C), by striking ``program.'' and inserting ``program; and''; and (iii) by adding at the end the following: ``(D) authorize such providers to make known their services to the entities specified in section (a) through Government communication channels.''; and (B) by adding at the end the following: ``(3) The authority in paragraph (1)(D) does not include the authority to distribute gifts or promotional items.''; and (2) in subsection (c)-- (A) in paragraph (2)(E), by striking ``from the sale or exchange of equipment or property of a central service provider'' and inserting ``from the sale or exchange of equipment, recyclable materials, or property of a central service provider.''; and (B) in paragraph (3)(B), by striking ``subsection (f)(2)'' and inserting ``subsections (b)(1)(D) and (f)(2)''. TITLE V--OTHER MATTERS SEC. 501. HOMELAND SECURITY INTELLIGENCE PROGRAM. There is established within the Department of Homeland Security a Homeland Security Intelligence Program. The Homeland Security Intelligence Program constitutes the intelligence activities of the Office of Intelligence and Analysis of the Department that serve predominantly departmental missions. SEC. 502. EXTENSION OF NATIONAL COMMISSION FOR THE REVIEW OF THE RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED STATES INTELLIGENCE COMMUNITY. Section 1007(a) of the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-306; 50 U.S.C. 401 note) is amended by striking ``Not later than one year after the date on which all members of the Commission are appointed pursuant to section 701(a)(3) of the Intelligence Authorization Act for Fiscal Year 2010,'' and inserting ``Not later than March 31, 2013,''. SEC. 503. PROTECTING THE INFORMATION TECHNOLOGY SUPPLY CHAIN OF THE UNITED STATES. (a) Report.--Not later than 90 days after the date of the enactment of this Act, the Director of National Intelligence shall submit to the congressional intelligence committees a report that-- (1) identifies foreign suppliers of information technology (including equipment, software, and services) that are linked directly or indirectly to a foreign government, including-- (A) by ties to the military forces of a foreign government; (B) by ties to the intelligence services of a foreign government; or (C) by being the beneficiaries of significant low interest or no interest loans, loan forgiveness, or other support by a foreign government; and (2) assesses the vulnerability to malicious activity, including cyber crime or espionage, of the telecommunications networks of the United States due to the presence of technology produced by suppliers identified under paragraph (1). (b) Form.--The report required under subsection (a) shall be submitted in unclassified form, but may include a classified annex. (c) Telecommunications Networks of the United States Defined.--In this section, the term ``telecommunications networks of the United States'' includes-- (1) telephone systems; (2) Internet systems; (3) fiber optic lines, including cable landings; (4) computer networks; and (5) smart grid technology under development by the Department of Energy. SEC. 504. NOTIFICATION REGARDING THE AUTHORIZED PUBLIC DISCLOSURE OF NATIONAL INTELLIGENCE. (a) Notification.--In the event of an authorized disclosure of national intelligence or intelligence related to national security to the persons or entities described in subsection (b), the government official responsible for authorizing the disclosure shall submit to the congressional intelligence committees on a timely basis a notification of the disclosure if-- (1) at the time of the disclosure-- (A) such intelligence is classified; or (B) is declassified for the purpose of the disclosure; and (2) the disclosure will be made by an officer, employee, or contractor of the Executive branch. (b) Persons or Entities Described.--The persons or entities described in this subsection are as follows: (1) Media personnel. (2) Any person or entity, if the disclosure described in subsection (a) is made with the intent or knowledge that such information will be made publicly available. (c) Content.--Each notification required under subsection (a) shall-- (1) provide the specific title and authority of the individual authorizing the disclosure; (2) if applicable, provide the specific title and authority of the individual who authorized the declassification of the intelligence disclosed; and (3) describe the intelligence disclosed, including the classification of the intelligence prior to its disclosure or declassification and the rationale for making the disclosure. (d) Exception.--The notification requirement in this section does not apply to a disclosure made-- (1) pursuant to any statutory requirement, including to section 552 of title 5, United States Code (commonly referred to as the ``Freedom of Information Act''); (2) in connection with a civil, criminal, or administrative proceeding; (3) as a result of a declassification review process under Executive Order 13526 (50 U.S.C. 435 note) or any successor order; or (4) to any officer, employee, or contractor of the Federal government or member of an advisory committee to an element of the intelligence community who possesses an active security clearance and a need to know the specific national intelligence or intelligence related to national security, as defined in section 3(5) of the National Security Act of 1947 (50 U.S.C. 401a(5)). (e) Sunset.--The notification requirement of this section shall cease to be effective for any disclosure described in subsection (a) that occurs on or after the date that is one year after the date of the enactment of this Act. SEC. 505. TECHNICAL AMENDMENTS RELATED TO THE OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE. (a) Personnel Practices.--Section 2302(a)(2)(C) of title 5, United States Code, is amended by striking clause (ii) and inserting the following: ``(ii)(I) the Federal Bureau of Investigation, the Central Intelligence Agency, the Defense Intelligence Agency, the National Geospatial-Intelligence Agency, the National Security Agency, the Office of the Director of National Intelligence, and the National Reconnaissance Office; and ``(II) as determined by the President, any executive agency or unit thereof the principal function of which is the conduct of foreign intelligence or counterintelligence activities, provided that the determination be made prior to a personnel action; or''. (b) Senior Executive Service.--Section 3132(a)(1)(B) of title 5, United States Code, is amended by inserting ``the Office of the Director of National Intelligence,'' after ``the Central Intelligence Agency,''. SEC. 506. TECHNICAL AMENDMENT FOR DEFINITION OF INTELLIGENCE AGENCY. Section 606(5) of the National Security Act of 1947 (50 U.S.C. 426) is amended to read as follows: ``(5) The term `intelligence agency' means the elements of the intelligence community, as that term is defined in section 3(4).''. SEC. 507. BUDGETARY EFFECTS. The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest statement titled ``Budgetary Effects of PAYGO Legislation'' for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage. ______