[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.
                                 ______