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20 June 2008


[110th CONGRESS Senate Bills]
[From the U.S. Government Printing Office via GPO Access]
[DOCID: s2996pcs.txt]
[Placed on Calendar Senate]





                                                       Calendar No. 730
110th CONGRESS
  2d Session
                                S. 2996

                          [Report No. 110-333]

 To authorize appropriations for fiscal year 2009 for intelligence and 
 intelligence-related activities of the United States Government, the 
   Community Management Account, and the Central Intelligence Agency 
       Retirement and Disability System, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 8, 2008

Mr. Rockefeller from the Select Committee on Intelligence, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
 To authorize appropriations for fiscal year 2009 for intelligence and 
 intelligence-related activities of the United States Government, the 
   Community Management Account, and the Central Intelligence Agency 
       Retirement and Disability System, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Intelligence 
Authorization Act for Fiscal Year 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Personnel level adjustments.
Sec. 104. Intelligence Community Management Account.
 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.
Sec. 202. Technical modification to mandatory retirement provision of 
                            the Central Intelligence Agency Retirement 
                            Act.
           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

                     Subtitle A--Personnel Matters

Sec. 301. Increase in employee compensation and benefits authorized by 
                            law.
Sec. 302. Enhanced flexibility in nonreimbursable details to elements 
                            of the intelligence community.
Sec. 303. Enhancement of authority of the Director of National 
                            Intelligence for flexible personnel 
                            management among the elements of the 
                            intelligence community.
Sec. 304. Delegation of authority for travel on common carriers for 
                            intelligence collection personnel.
Sec. 305. Annual personnel level assessments for the intelligence 
                            community.
                    Subtitle B--Acquisition Matters

Sec. 311. Reports on the acquisition of major systems.
Sec. 312. Vulnerability assessments of major systems.
Sec. 313. Intelligence community business system modernization.
Sec. 314. Excessive cost growth of major systems.
Sec. 315. Prohibition on conflicts of interest in intelligence 
                            community contracting.
Sec. 316. Future budget projections.
        Subtitle C--Interrogation and Detention Related Matters

Sec. 321. Limitation on interrogation techniques.
Sec. 322. Prohibition on interrogations by contractors.
Sec. 323. Notification of the International Committee of the Red Cross.
Sec. 324. Report on compliance with the Detainee Treatment Act of 2005 
                            and related provisions of the Military 
                            Commissions Act of 2006.
                   Subtitle D--Reporting Requirements

Sec. 331. Report on use of contractors by elements of the intelligence 
                            community.
Sec. 332. Improvement of notification of Congress regarding 
                            intelligence activities of the United 
                            States.
Sec. 333. Federal Bureau of Investigation intelligence transformation.
Sec. 334. Incorporation of reporting requirements.
Sec. 335. Repeal of certain reporting requirements.
                       Subtitle E--Other Matters

Sec. 341. Restriction on conduct of intelligence activities.
Sec. 342. Clarification of definition of intelligence community under 
                            the National Security Act of 1947.
Sec. 343. Modification of availability of funds for different 
                            intelligence activities.
Sec. 344. Additional limitation on availability of funds for 
                            intelligence and intelligence-related 
                            activities.
Sec. 345. Limitation on reprogrammings and transfers of funds.
Sec. 346. Availability to public of certain intelligence funding 
                            information.
Sec. 347. Increase in penalties for disclosure of undercover 
                            intelligence officers and agents.
Sec. 348. Authority to designate undercover operations to collect 
                            foreign intelligence or 
                            counterintelligence.
Sec. 349. Language and intelligence analyst training program.
Sec. 350. Extension of authority to delete information about receipt 
                            and disposition of foreign gifts and 
                            decorations.
Sec. 351. Extension of National Commission for the Review of the 
                            Research and Development Programs of the 
                            United States Intelligence Community.
Sec. 352. Clarifying amendments relating to section 105 of the 
                            Intelligence Authorization Act for Fiscal 
                            Year 2004.
  TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY

      Subtitle A--Office of the Director of National Intelligence

Sec. 401. Accountability reviews by the Director of National 
                            Intelligence.
Sec. 402. Authorities for intelligence information sharing.
Sec. 403. Modification of limitation on delegation by the Director of 
                            National Intelligence of the protection of 
                            intelligence sources and methods.
Sec. 404. Authorities of the Director of National Intelligence for 
                            interagency funding.
Sec. 405. Clarification of limitation on colocation of the Office of 
                            the Director of National Intelligence.
Sec. 406. Title of Chief Information Officer of the Intelligence 
                            Community.
Sec. 407. Inspector General of the Intelligence Community.
Sec. 408. Chief Financial Officer of the Intelligence Community.
Sec. 409. Leadership and location of certain offices and officials.
Sec. 410. National Space Intelligence Office.
Sec. 411. Operational files in the Office of the Director of National 
                            Intelligence.
Sec. 412. Membership of the Director of National Intelligence on the 
                            Transportation Security Oversight Board.
Sec. 413. Director of National Intelligence report on retirement 
                            benefits for former employees of Air 
                            America.
Sec. 414. Repeal of certain authorities relating to the Office of the 
                            National Counterintelligence Executive.
Sec. 415. Applicability of the Privacy Act to the Director of National 
                            Intelligence and the Office of the Director 
                            of National Intelligence.
Sec. 416. Inapplicability of Federal Advisory Committee Act to advisory 
                            committees of the Office of the Director of 
                            National Intelligence.
                Subtitle B--Central Intelligence Agency

Sec. 421. Inapplicability to Director of the Central Intelligence 
                            Agency of requirement for annual report on 
                            progress in auditable financial statements.
Sec. 422. Additional functions and authorities for protective personnel 
                            of the Central Intelligence Agency.
Sec. 423. Technical amendments relating to titles of certain Central 
                            Intelligence Agency positions.
              Subtitle C--Defense Intelligence Components

Sec. 431. Enhancement of National Security Agency training program.
Sec. 432. Codification of authorities of National Security Agency 
                            protective personnel.
Sec. 433. Inspector general matters.
Sec. 434. Confirmation of appointment of heads of certain components of 
                            the intelligence community.
Sec. 435. Clarification of national security missions of National 
                            Geospatial-Intelligence Agency for analysis 
                            and dissemination of certain intelligence 
                            information.
                       Subtitle D--Other Elements

Sec. 441. Clarification of inclusion of Coast Guard and Drug 
                            Enforcement Administration as elements of 
                            the intelligence community.
        TITLE V--FOREIGN INTELLIGENCE AND INFORMATION COMMISSION

Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Findings.
Sec. 504. Establishment and functions of the Commission.
Sec. 505. Members and staff of the Commission.
Sec. 506. Powers and duties of the Commission.
Sec. 507. Report of the Commission.
Sec. 508. Termination.
Sec. 509. Nonapplicability of Federal Advisory Committee Act.
Sec. 510. Funding.
                     TITLE VI--TECHNICAL AMENDMENTS

Sec. 601. Technical amendment to the Central Intelligence Agency Act of 
                            1949.
Sec. 602. Technical amendments relating to the multiyear National 
                            Intelligence Program.
Sec. 603. Technical clarification of certain references to Joint 
                            Military Intelligence Program and Tactical 
                            Intelligence and Related Activities.
Sec. 604. Technical amendments to the National Security Act of 1947.
Sec. 605. Technical amendments to the Intelligence Reform and Terrorism 
                            Prevention Act of 2004.
Sec. 606. Technical amendments to the Executive Schedule.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Congressional intelligence committees.--The term 
        ``congressional intelligence committees'' means--
                    (A) the Select Committee on Intelligence of the 
                Senate; and
                    (B) the Permanent Select Committee on Intelligence 
                of the House of Representatives.
            (2) Intelligence community.--The term ``intelligence 
        community'' has the meaning given that term in section 3(4) of 
        the National Security Act of 1947 (50 U.S.C. 401a(4)).

              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2009 
for the conduct of the intelligence and intelligence-related activities 
of the following elements of the United States Government:
            (1) The Office of the Director of National Intelligence.
            (2) The Central Intelligence Agency.
            (3) The Department of Defense.
            (4) The Defense Intelligence Agency.
            (5) The National Security Agency.
            (6) The Department of the Army, the Department of the Navy, 
        and the Department of the Air Force.
            (7) The Coast Guard.
            (8) The Department of State.
            (9) The Department of the Treasury.
            (10) The Department of Energy.
            (11) The Department of Justice.
            (12) The Federal Bureau of Investigation.
            (13) The Drug Enforcement Administration.
            (14) The National Reconnaissance Office.
            (15) The National Geospatial-Intelligence Agency.
            (16) The Department of Homeland Security.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

    (a) Specifications of Amounts and Personnel Levels.--The amounts 
authorized to be appropriated under section 101 and, subject to section 
103, the authorized personnel levels as of September 30, 2009, for the 
conduct of the intelligence activities of the elements listed in 
paragraphs (1) through (16) of section 101, are those specified in the 
classified Schedule of Authorizations prepared to accompany the 
conference report on the bill ________ of the One Hundred Tenth 
Congress.
    (b) Availability of Classified Schedule of Authorizations.--The 
classified Schedule of Authorizations referred to in subsection (a) 
shall be made available to the Committee on Appropriations of the 
Senate, the Committee on Appropriations of the House of 
Representatives, and to the President. The President shall provide for 
suitable distribution of the Schedule, or of appropriate portions of 
the Schedule, within the executive branch.

SEC. 103. PERSONNEL LEVEL ADJUSTMENTS.

    (a) Authority for Increases.--With the approval of the Director of 
the Office of Management and Budget, the Director of National 
Intelligence may authorize employment of civilian personnel in excess 
of the number authorized for fiscal year 2009 by the classified 
Schedule of Authorizations referred to in section 102(a) if the 
Director of National Intelligence determines that such action is 
necessary to the performance of important intelligence functions, 
except that the number of personnel employed in excess of the number 
authorized under such section may not, for any element of the 
intelligence community, exceed 5 percent of the number of civilian 
personnel authorized under such section for such element.
    (b) Transition to Full-Time Equivalency.--
            (1) Treatment for fiscal year 2009.--For fiscal year 2009, 
        the Director of National Intelligence, in consultation with the 
        head of each element of the intelligence community, may treat 
        the personnel ceilings authorized under the classified Schedule 
        of Authorizations referred to in section 102(a) as full-time 
        equivalents.
            (2) Consideration.--In exercising the authority described 
        in paragraph (1), the Director of National Intelligence may 
        consider the circumstances under which civilian employees are 
        employed and accounted for at each element of the intelligence 
        community in--
                    (A) a student program, trainee program, or similar 
                program;
                    (B) reserve corps or equivalent status as a 
                reemployed annuitant or other employee;
                    (C) a joint duty rotational assignment; or
                    (D) other full-time or part-time status.
            (3) Notification to congress.--Not later than 90 days after 
        the date of the enactment of this Act, the Director of National 
        Intelligence shall notify the congressional intelligence 
        committees in writing of--
                    (A) the policies for implementing the authorities 
                described in paragraphs (1) and (2); and
                    (B) the number of all civilian personnel employed 
                by, or anticipated to be employed by, each element of 
                the intelligence community during fiscal year 2009 
                accounted for--
                            (i) by position;
                            (ii) by full-time equivalency; or
                            (iii) by any other method.
            (4) Treatment for fiscal year 2010.--The Director of 
        National Intelligence shall express the personnel levels for 
        all civilian employees for each element of the intelligence 
        community in the congressional budget justifications submitted 
        for fiscal year 2010 as full-time equivalent positions.
    (c) Authority for Conversion of Activities Performed by 
Contractors.--
            (1) In general.--In addition to the authority in subsection 
        (a) and subject to paragraph (2), if the head of an element of 
        the intelligence community makes a determination that 
        activities currently being performed by contractor employees 
        should be performed by employees of such element, the Director 
        of National Intelligence may authorize for that purpose 
        employment of additional full-time equivalent personnel in such 
        element equal to the number of full-time equivalent contractor 
        employees performing such activities.
            (2) Concurrence and approval.--The authority described in 
        paragraph (1) may not be exercised unless the Director of 
        National Intelligence concurs with the determination described 
        in such paragraph and the Director of the Office of Management 
        and Budget approves such determination.
    (d) Notice to Congressional Intelligence Committees.--The Director 
of National Intelligence shall notify the congressional intelligence 
committees in writing at least 15 days prior to each exercise of an 
authority described in subsection (a) or (b).

SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated for the Intelligence Community Management Account of the 
Director of National Intelligence for fiscal year 2009 the sum of 
$696,742,000.
    (b) Authorized Personnel Levels.--The elements within the 
Intelligence Community Management Account of the Director of National 
Intelligence are authorized 944 full-time or full-time equivalent 
personnel as of September 30, 2009. Personnel serving in such elements 
may be permanent employees of the Office of the Director of National 
Intelligence or personnel detailed from other elements of the United 
States Government.
    (c) Construction of Authorities.--The Director of National 
Intelligence may use the authorities described in subsections (a) and 
(c) of section 103 for the adjustment of personnel levels within the 
Intelligence Community Management Account.
    (d) Classified Authorizations.--
            (1) Authorization of appropriations.--In addition to 
        amounts authorized to be appropriated for the Intelligence 
        Community Management Account by subsection (a), there are 
        authorized to be appropriated for the Community Management 
        Account for fiscal year 2009 such additional amounts as are 
        specified in the classified Schedule of Authorizations referred 
        to in section 102(a). Such additional amounts for advanced 
        research and development shall remain available until September 
        30, 2010.
            (2) Authorization of personnel.--In addition to the 
        personnel authorized by subsection (b) for elements of the 
        Intelligence Community Management Account as of September 30, 
        2009, there are authorized such additional personnel for the 
        Community Management Account as of that date as are specified 
        in the classified Schedule of Authorizations referred to in 
        section 102(a).

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for the Central Intelligence 
Agency Retirement and Disability Fund for fiscal year 2009 the sum of 
$279,200,000.

SEC. 202. TECHNICAL MODIFICATION TO MANDATORY RETIREMENT PROVISION OF 
              THE CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT.

    Subparagraph (A) of section 235(b)(1) of the Central Intelligence 
Agency Retirement Act (50 U.S.C. 2055(b)(1)) is amended by striking 
``receiving compensation under the Senior Intelligence Service pay 
schedule at the rate'' and inserting ``who is at the Senior 
Intelligence Service rank''.

           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

                     Subtitle A--Personnel Matters

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

    Appropriations authorized by this Act for salary, pay, retirement, 
and other benefits for employees of an agency or department of the 
United States may be increased by such additional or supplemental 
amounts as may be necessary for increases in such compensation or 
benefits authorized by law.

SEC. 302. ENHANCED FLEXIBILITY IN NONREIMBURSABLE DETAILS TO ELEMENTS 
              OF THE INTELLIGENCE COMMUNITY.

    Except as provided in section 113 of the National Security Act of 
1947 (50 U.S.C. 404h) and section 904(g)(2) of the Counterintelligence 
Enhancement Act of 2002 (title IX of Public Law 107-306; 50 U.S.C. 
402c(g)(2)) and notwithstanding any other provision of law, in any 
fiscal year after fiscal year 2008 an officer or employee of the United 
States or member of the Armed Forces may be detailed to the staff of an 
element of the intelligence community funded through the Community 
Management Account from another element of the United States Government 
on a reimbursable or nonreimbursable basis, as jointly agreed to by the 
Director of National Intelligence and the head of the detailing element 
for a period not to exceed 3 years.

SEC. 303. ENHANCEMENT OF AUTHORITY OF THE DIRECTOR OF NATIONAL 
              INTELLIGENCE FOR FLEXIBLE PERSONNEL MANAGEMENT AMONG THE 
              ELEMENTS OF THE INTELLIGENCE COMMUNITY.

    Section 102A of the National Security Act of 1947 (50 U.S.C. 403-1) 
is amended by adding at the end the following new subsections:
    ``(s) Authority To Establish Positions in Excepted Service.--(1) 
The Director of National Intelligence may, with the concurrence of the 
head of the department or agency concerned and in coordination with the 
Director of the Office of Personnel Management--
            ``(A) convert competitive service positions, and the 
        incumbents of such positions, within an element of the 
        intelligence community to excepted service positions as the 
        Director of National Intelligence determines necessary to carry 
        out the intelligence functions of such element; and
            ``(B) establish the classification and ranges of rates of 
        basic pay for positions so converted, notwithstanding otherwise 
        applicable laws governing the classification and rates of basic 
        pay for such positions.
    ``(2)(A) At the request of the Director of National Intelligence, 
the head of a department or agency may establish new positions in the 
excepted service within an element of such department or agency that is 
part of the intelligence community if the Director determines that such 
positions are necessary to carry out the intelligence functions of such 
element.
    ``(B) The Director of National Intelligence may establish the 
classification and ranges of rates of basic pay for any position 
established under subparagraph (A), notwithstanding otherwise 
applicable laws governing the classification and rates of basic pay for 
such positions.
    ``(3) The head of the department or agency concerned is authorized 
to appoint individuals for service in positions converted under 
paragraph (1) or established under paragraph (2) without regard to the 
provisions of chapter 33 of title 5, United States Code, governing 
appointments in the competitive service, and to fix the compensation of 
such individuals within the applicable ranges of rates of basic pay 
established by the Director of National Intelligence.
    ``(4) The maximum rate of basic pay established under this 
subsection is the rate for level III of the Executive Schedule under 
section 5314 of title 5, United States Code.
    ``(t) Pay Authority for Critical Positions.--(1) Notwithstanding 
any pay limitation established under any other provision of law 
applicable to employees in elements of the intelligence community, the 
Director of National Intelligence may, in consultation with the 
Director of the Office of Personnel Management and the Director of the 
Office of Management and Budget, grant authority to fix the rate of 
basic pay for 1 or more positions within the intelligence community at 
a rate in excess of any applicable limitation, subject to the 
provisions of this subsection. The exercise of authority so granted is 
at the discretion of the head of the department or agency employing the 
individual in a position covered by such authority, subject to the 
provisions of this subsection and any conditions established by the 
Director of National Intelligence when granting such authority.
    ``(2) Authority under this subsection may be granted or exercised 
only--
            ``(A) with respect to a position which requires an 
        extremely high level of expertise and is critical to successful 
        accomplishment of an important mission; and
            ``(B) to the extent necessary to recruit or retain an 
        individual exceptionally well qualified for the position.
    ``(3) A rate of basic pay may not be fixed under this subsection at 
a rate greater than the rate payable for level II of the Executive 
Schedule under section 5313 of title 5, United States Code, except upon 
written approval of the Director of National Intelligence or as 
otherwise authorized by law.
    ``(4) A rate of basic pay may not be fixed under this subsection at 
a rate greater than the rate payable for level I of the Executive 
Schedule under section 5312 of title 5, United States Code, except upon 
written approval of the President in response to a request by the 
Director of National Intelligence or as otherwise authorized by law.
    ``(5) Any grant of authority under this subsection for a position 
shall terminate at the discretion of the Director of National 
Intelligence.
    ``(u) Extension of Flexible Personnel Management Authorities.--(1) 
Notwithstanding any other provision of law, in order to ensure the 
equitable treatment of employees across the intelligence community, the 
Director of National Intelligence may, with the concurrence of the head 
of the department or agency concerned, or for those matters that fall 
under the responsibilities of the Office of Personnel Management under 
statute or executive order, in coordination with the Director of the 
Office of Personnel Management, authorize 1 or more elements of the 
intelligence community to adopt compensation authority, performance 
management authority, and scholarship authority that have been 
authorized for another element of the intelligence community if the 
Director of National Intelligence--
            ``(A) determines that the adoption of such authority would 
        improve the management and performance of the intelligence 
        community; and
            ``(B) submits to the congressional intelligence committees, 
        not later than 60 days before such authority is to take effect, 
        notice of the adoption of such authority by such element or 
        elements, including the authority to be so adopted, and an 
        estimate of the costs associated with the adoption of such 
        authority.
    ``(2) To the extent that an existing compensation authority within 
the intelligence community is limited to a particular category of 
employees or a particular situation, the authority may be adopted in 
another element of the intelligence community under this subsection 
only for employees in an equivalent category or in an equivalent 
situation.
    ``(3) In this subsection, the term `compensation authority' means 
authority involving basic pay (including position classification), 
premium pay, awards, bonuses, incentives, allowances, differentials, 
student loan repayments, and special payments, but does not include 
authorities as follows:
            ``(A) Authorities related to benefits such as leave, 
        severance pay, retirement, and insurance.
            ``(B) Authority to grant a rank award by the President 
        under section 4507, 4507a, or 3151(c) of title 5, United States 
        Code, or any other provision of law.
            ``(C) Compensation authorities and performance management 
        authorities provided under provisions of law relating to the 
        Senior Executive Service.''.

SEC. 304. DELEGATION OF AUTHORITY FOR TRAVEL ON COMMON CARRIERS FOR 
              INTELLIGENCE COLLECTION PERSONNEL.

    (a) Delegation of Authority.--Section 116(b) of the National 
Security Act of 1947 (50 U.S.C. 404k(b)) is amended--
            (1) by inserting ``(1)'' before ``The Director'';
            (2) in paragraph (1), as designated by paragraph (1) of 
        this subsection, by striking ``may only delegate'' and all that 
        follows and inserting ``may delegate the authority in 
        subsection (a) to the head of any other element of the 
        intelligence community''; and
            (3) by adding at the end the following new paragraph:
    ``(2) The head of an element of the intelligence community to whom 
the authority in subsection (a) is delegated pursuant to paragraph (1) 
may further delegate such authority to senior officials of such element 
as are specified in guidelines prescribed by the Director of National 
Intelligence for purposes of this paragraph.''.
    (b) Submission of Guidelines to Congress.--Not later than 6 months 
after the date of the enactment of this Act, the Director of National 
Intelligence shall prescribe and submit to the congressional 
intelligence committees the guidelines referred to in paragraph (2) of 
section 116(b) of the National Security Act of 1947, as added by 
subsection (a).

SEC. 305. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE INTELLIGENCE 
              COMMUNITY.

    (a) In General.--Title V of the National Security Act of 1947 (50 
U.S.C. 413 et seq.) is amended by inserting after section 506A the 
following new section:

``SEC. 506B. ANNUAL PERSONNEL LEVEL ASSESSMENTS FOR THE INTELLIGENCE 
              COMMUNITY.

    ``(a) Requirement To Provide.--The Director of National 
Intelligence shall, in consultation with the head of the element of the 
intelligence community concerned, prepare an annual personnel level 
assessment for such element of the intelligence community that assesses 
the personnel levels for each such element for the fiscal year 
following the fiscal year in which the assessment is submitted.
    ``(b) Schedule.--Each assessment required by subsection (a) shall 
be submitted to the congressional intelligence committees each year 
along with the budget submitted by the President under section 1105 of 
title 31, United States Code.
    ``(c) Contents.--Each assessment required by subsection (a) 
submitted during a fiscal year shall contain, at a minimum, the 
following information for the element of the intelligence community 
concerned:
            ``(1) The budget submission for personnel costs for the 
        upcoming fiscal year.
            ``(2) The dollar and percentage increase or decrease of 
        such costs as compared to the personnel costs of the current 
        fiscal year.
            ``(3) The dollar and percentage increase or decrease of 
        such costs as compared to the personnel costs during the prior 
        5 fiscal years.
            ``(4) The number of personnel positions requested for the 
        upcoming fiscal year.
            ``(5) The numerical and percentage increase or decrease of 
        such number as compared to the number of personnel positions of 
        the current fiscal year.
            ``(6) The numerical and percentage increase or decrease of 
        such number as compared to the number of personnel positions 
        during the prior 5 fiscal years.
            ``(7) The best estimate of the number and costs of 
        contractors to be funded by the element for the upcoming fiscal 
        year.
            ``(8) The numerical and percentage increase or decrease of 
        such costs of contractors as compared to the best estimate of 
        the costs of contractors of the current fiscal year.
            ``(9) A written justification for the requested personnel 
        and contractor levels.
            ``(10) The number of intelligence collectors and analysts 
        employed or contracted by each element of the intelligence 
        community.
            ``(11) A list of all contractors that have been the subject 
        of an investigation completed by the Inspector General of any 
        element of the intelligence community during the preceding 
        fiscal year, or are or have been the subject of an 
        investigation by such an Inspector General during the current 
        fiscal year.
            ``(12) A statement by the Director of National Intelligence 
        that, based on current and projected funding, the element 
        concerned will have sufficient--
                    ``(A) internal infrastructure to support the 
                requested personnel and contractor levels;
                    ``(B) training resources to support the requested 
                personnel levels; and
                    ``(C) funding to support the administrative and 
                operational activities of the requested personnel 
                levels.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of that Act is amended by inserting after the item relating to section 
506A the following new item:

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

                    Subtitle B--Acquisition Matters

SEC. 311. REPORTS ON THE ACQUISITION OF MAJOR SYSTEMS.

    (a) Content of Reports.--Clause (ii) of section 102A(q)(C) (50 
U.S.C. 403-1(q)(C)) of the National Security Act of 1947 is amended by 
striking the period at the end and inserting ``that includes--''
                            ``(I) the current total acquisition cost 
                        for such system, and the history of such cost 
                        from the date the system was first included in 
                        a report under this clause to the end of the 
                        calendar quarter immediately proceeding the 
                        submittal of the report;
                            ``(II) the current development schedule for 
                        such system, including an estimate of annual 
                        development costs until development is 
                        completed;
                            ``(III) the planned procurement schedule 
                        for such system, including the best estimate of 
                        the Director of National Intelligence of the 
                        annual costs and units to be procured until 
                        procurement is completed;
                            ``(IV) a full life-cycle cost analysis for 
                        such system;
                            ``(V) the result of any significant test 
                        and evaluation of such system as of the date of 
                        the submittal of the report, or, if a 
                        significant test and evaluation has not been 
                        conducted, a statement of the reasons therefor 
                        and the results of any other test and 
                        evaluation that has been conducted of such 
                        system;
                            ``(VI) the reasons for any change in 
                        acquisition cost, or schedule, for such system 
                        from the previous report under this clause, if 
                        applicable;
                            ``(VII) each major contract related to such 
                        system; and
                            ``(VIII) if there is any cost or schedule 
                        variance under a contract referred to in 
                        subclause (VII) since the previous report under 
                        this clause, the reasons for such cost or 
                        schedule variance.''.
    (b) Determination of Increase in Costs.--Subsection (q) of section 
102A of the National Security Act of 1947 (50 U.S.C. 403-1) is 
amended--
            (1) by redesignating paragraphs (3) and (4) as paragraph 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following:
    ``(3) Any determination of a percentage increase in the acquisition 
costs of a major system for which a report is filed under paragraph 
(1)(C)(ii) shall be stated in terms of constant dollars from the first 
fiscal year in which funds are appropriated for such system.''.
    (c) Definitions.--Paragraph (5) of such subsection (q), as 
redesignated by subsection (b)(1) of this section, is amended to read 
as follows:
    ``(5) In this subsection:
            ``(A) The term `acquisition cost', with respect to a major 
        system, means the amount equal to the total cost for 
        development and procurement of, and system-specific 
        construction for, such system.
            ``(B) The term `full life-cycle cost', with respect to the 
        acquisition of a major system, means all costs of development, 
        procurement, construction, deployment, and operation and 
        support for such program, without regard to funding source or 
        management control, including costs of development and 
        procurement required to support or utilize such system.
            ``(C) The term `intelligence program', with respect to the 
        acquisition of a major system, means a program that--
                    ``(i) is carried out to acquire such major system 
                for an element of the intelligence community; and
                    ``(ii) is funded in whole out of amounts available 
                for the National Intelligence Program.
            ``(D) The term `major contract,' with respect to a major 
        system acquisition, means each of the 6 largest prime, 
        subordinate, or government-furnished equipment contracts under 
        the program that is in excess of $40,000,000 and that is not a 
        firm, fixed price contract.
            ``(E) The term `major system' has the meaning given that 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).
            ``(F) The term `significant test and evaluation' means the 
        functional or environmental testing of a major system or of the 
        subsystems that combine to create a major system.''.

SEC. 312. VULNERABILITY ASSESSMENTS OF MAJOR SYSTEMS.

    (a) In General.--Title V of the National Security Act of 1947 (50 
U.S.C. 413 et seq.), as amended by section 305 of this Act, is further 
amended by inserting after section 506B, as added by section 305(a), 
the following new section:

              ``vulnerability assessments of major systems

    ``Sec. 506C.  (a) Initial Vulnerability Assessments.--The Director 
of National Intelligence shall conduct an initial vulnerability 
assessment for any major system and its significant items of supply 
that is proposed for inclusion in the National Intelligence Program 
prior to completion of Milestone B or an equivalent acquisition 
decision. The initial vulnerability assessment of a major system and 
its significant items of supply shall, at a minimum, use an analysis-
based approach to--
            ``(1) identify vulnerabilities;
            ``(2) define exploitation potential;
            ``(3) examine the system's potential effectiveness;
            ``(4) determine overall vulnerability; and
            ``(5) make recommendations for risk reduction.
    ``(b) Subsequent Vulnerability Assessments.--(1) The Director of 
National Intelligence shall conduct subsequent vulnerability 
assessments of each major system and its significant items of supply 
within the National Intelligence Program--
            ``(A) periodically throughout the life span of the major 
        system;
            ``(B) whenever the Director determines that a change in 
        circumstances warrants the issuance of a subsequent 
        vulnerability assessment; or
            ``(C) upon the request of a congressional intelligence 
        committee.
    ``(2) Any subsequent vulnerability assessment of a major system and 
its significant items of supply shall, at a minimum, use an analysis-
based approach and, if applicable, a testing-based approach, to monitor 
the exploitation potential of such system and reexamine the factors 
described in paragraphs (1) through (5) of subsection (a).
    ``(c) Major System Management.--The Director of National 
Intelligence shall give due consideration to the vulnerability 
assessments prepared for a given major system when developing and 
determining the annual consolidated National Intelligence Program 
budget.
    ``(d) Congressional Oversight.--(1) The Director of National 
Intelligence shall provide to the congressional intelligence committees 
a copy of each vulnerability assessment conducted under subsection (a) 
not later than 10 days after the date of the completion of such 
assessment.
    ``(2) The Director of National Intelligence shall provide the 
congressional intelligence committees with a proposed schedule for 
subsequent vulnerability assessments of a major system under subsection 
(b) when providing such committees with the initial vulnerability 
assessment under subsection (a) of such system as required by 
subsection (d).
    ``(3) The results of vulnerability assessments conducted under 
subsection (b) shall be included in the report to Congress required by 
section 102A(q).
    ``(e) Definitions.--In this section:
            ``(1) The term `items of supply'--
                    ``(A) means any individual part, component, 
                subassembly, assembly, or subsystem integral to a major 
                system, and other property which may be replaced during 
                the service life of the major system, including spare 
                parts and replenishment parts; and
                    ``(B) does not include packaging or labeling 
                associated with shipment or identification of items.
            ``(2) The term `major system' has the meaning given that 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).
            ``(3) The term `Milestone B' means a decision to enter into 
        system development, integration, and demonstration pursuant to 
        guidance prescribed by the Director of National Intelligence.
            ``(4) The term `vulnerability assessment' means the process 
        of identifying and quantifying vulnerabilities in a major 
        system and its significant items of supply.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of the National Security Act of 1947, as amended by section 305 of this 
Act, is further amended by inserting after the item relating to section 
506B, as added by section 305(b), the following:

``Sec. 506C. Vulnerability assessments of major systems.''.

SEC. 313. INTELLIGENCE COMMUNITY BUSINESS SYSTEM MODERNIZATION.

    (a) Intelligence Community Business System Modernization.--
            (1) In general.--Title V of the National Security Act of 
        1947 (50 U.S.C. 413 et seq.), as amended by sections 305 and 
        312 of this Act, is further amended by inserting after section 
        506C, as added by section 312(a), the following new section:

        ``intelligence community business systems modernization

    ``Sec. 506D.  (a) Limitation on Obligation of Funds.--(1) After 
April 1, 2009, no funds appropriated to any element of the intelligence 
community may be obligated for an intelligence community financial 
management or human resources business system modernization described 
in paragraph (2), and after April 1, 2010, no funds appropriated to any 
element of the intelligence community may be obligated for any business 
system modernization described in paragraph (2) unless--
            ``(A) the approval authority designated by the Director of 
        National Intelligence under subsection (c)(2) makes the 
        certification described in paragraph (3) with respect to the 
        intelligence community business system modernization; and
            ``(B) the certification is approved by the appropriate 
        authorities within the intelligence community Strategic 
        Enterprise Management governance structure identified in 
        subsection (f).
    ``(2) An intelligence community business system modernization 
described in this paragraph is an intelligence community business 
system modernization that--
            ``(A) will have a total cost in excess of $1,000,000; and
            ``(B) will receive more than 50 percent of the funds for 
        such cost from amounts appropriated for the National 
        Intelligence Program.
    ``(3) The certification described in this paragraph for an 
intelligence community business system modernization is a 
certification, made by the approval authority designated by the 
Director under subsection (c)(2) that the intelligence community 
business system modernization--
            ``(A) complies with the enterprise architecture under 
        subsection (b); or
            ``(B) is necessary--
                    ``(i) to achieve a critical national security 
                capability or address a critical requirement in an area 
                such as safety or security; or
                    ``(ii) to prevent a significant adverse effect on a 
                project that is needed to achieve an essential 
                capability, taking into consideration the alternative 
                solutions for preventing such adverse effect.
    ``(4) The obligation of funds for an intelligence community 
business system modernization that does not comply with the 
requirements of this subsection shall be treated as a violation of 
section 1341(a)(1)(A) of title 31, United States Code.
    ``(b) Enterprise Architecture for Intelligence Community Business 
Systems.--(1) The Director of National Intelligence shall, acting 
through the appropriate authorities within the intelligence community 
Strategic Enterprise Management governance structure identified in 
subsection (f), develop and implement an enterprise architecture to 
cover all intelligence community business systems, and the functions 
and activities supported by such business systems. The enterprise 
architecture shall be sufficiently defined to effectively guide, 
constrain, and permit implementation of interoperable intelligence 
community business system solutions, consistent with applicable 
policies and procedures established by the Director of the Office of 
Management and Budget.
    ``(2) The enterprise architecture under paragraph (1) shall include 
the following:
            ``(A) An information infrastructure that, at a minimum, 
        will enable the intelligence community to--
                    ``(i) comply with all Federal accounting, financial 
                management, and reporting requirements;
                    ``(ii) routinely produce timely, accurate, and 
                reliable financial information for management purposes;
                    ``(iii) integrate budget, accounting, and program 
                information and systems; and
                    ``(iv) provide for the systematic measurement of 
                performance, including the ability to produce timely, 
                relevant, and reliable cost information.
            ``(B) Policies, procedures, data standards, and system 
        interface requirements that apply uniformly throughout the 
        intelligence community.
    ``(c) Responsibilities for Intelligence Community Business System 
Modernization.--(1) The Director of National Intelligence shall be 
responsible for review, approval, and oversight of the planning, 
design, acquisition, deployment, operation, and maintenance of an 
intelligence community business system modernization if more than 50 
percent of the cost of the intelligence community business system 
modernization is funded by amounts appropriated for the National 
Intelligence Program.
    ``(2) The Director shall designate 1 or more appropriate officials 
of the intelligence community to be responsible for making 
certifications with respect to intelligence community business system 
modernizations under subsection (a)(3).
    ``(d) Intelligence Community Business System Investment Review.--
(1) The approval authority designated under subsection (c)(2) shall 
establish and implement, not later than March 31, 2009, an investment 
review process for the review of the planning, design, acquisition, 
development, deployment, operation, maintenance, modernization, project 
cost, benefits, and risks of the intelligence community business 
systems for which the approval authority is responsible.
    ``(2) The investment review process under paragraph (1) shall--
            ``(A) meet the requirements of section 11312 of title 40, 
        United States Code; and
            ``(B) specifically set forth the responsibilities of the 
        approval authority under such review process.
    ``(3) The investment review process under paragraph (1) shall 
include the following elements:
            ``(A) Review and approval by an investment review board 
        (consisting of appropriate representatives of the intelligence 
        community) of each intelligence community business system as an 
        investment before the obligation of funds for such system.
            ``(B) Periodic review, but not less often than annually, of 
        every intelligence community business system investment.
            ``(C) Thresholds for levels of review to ensure appropriate 
        review of intelligence community business system investments 
        depending on the scope, complexity, and cost of the system 
        involved.
            ``(D) Procedures for making certifications in accordance 
        with the requirements of subsection (a)(3).
            ``(E) Mechanisms to ensure the consistency of the 
        investment review process with applicable guidance issued by 
        the Director of National Intelligence and the appropriate 
        authorities within the intelligence community Strategic 
        Enterprise Management governance structure identified in 
        subsection (f).
            ``(F) Common decision criteria, including standards, 
        requirements, and priorities, for purposes of ensuring the 
        integration of intelligence community business systems.
    ``(e) Budget Information.--For each fiscal year after fiscal year 
2009, the Director of National Intelligence shall include in the 
materials the Director submits to Congress in support of the budget for 
such fiscal year that is submitted to Congress under section 1105 of 
title 31, United States Code, the following information:
            ``(1) An identification of each intelligence community 
        business system for which funding is proposed in such budget.
            ``(2) An identification of all funds, by appropriation, 
        proposed in such budget for each such system, including--
                    ``(A) funds for current services to operate and 
                maintain such system; and
                    ``(B) funds for business systems modernization 
                identified for each specific appropriation.
            ``(3) For each such system, identification of approval 
        authority designated for such system under subsection (c)(2).
            ``(4) The certification, if any, made under subsection 
        (a)(3) with respect to each such system.
    ``(f) Intelligence Community Strategic Enterprise Management 
Governance Board.--
            ``(1) The Director of National Intelligence shall establish 
        a board within the intelligence community Strategic Enterprise 
        Management governance structure (in this subsection referred to 
        as the `Board').
    ``(2) The Board shall--
            ``(A) recommend to the Director policies and procedures 
        necessary to effectively integrate all business activities and 
        any transformation, reform, reorganization, or process 
        improvement initiatives undertaken within the intelligence 
        community;
            ``(B) review and approve any major update of--
                    ``(i) the enterprise architecture developed under 
                subsection (b); and
                    ``(ii) any plans for an intelligence community 
                business systems modernization;
            ``(C) manage cross-domain integration consistent with such 
        enterprise architecture;
            ``(D) be responsible for coordinating initiatives for 
        intelligence community business system modernization to 
        maximize benefits and minimize costs for the intelligence 
        community, and periodically report to the Director on the 
        status of efforts to carry out an intelligence community 
        business system modernization;
            ``(E) ensure that funds are obligated for intelligence 
        community business system modernization in a manner consistent 
        with subsection (a); and
            ``(F) carry out such other duties as the Director shall 
        specify.
    ``(g) Relation to Annual Registration Requirements.--Nothing in 
this section shall be construed to alter the requirements of section 
8083 of the Department of Defense Appropriations Act, 2005 (Public Law 
108-287; 118 Stat. 989), with regard to information technology systems 
(as defined in subsection (d) of such section).
    ``(h) Relation to Defense Business Systems Architecture, 
Accountability, and Modernization Requirements.--An intelligence 
community business system that receives more than 50 percent of its 
funds from amounts available for the National Intelligence Program 
shall be exempt from the requirements of section 2222 of title 10, 
United States Code.
    ``(i) Relation to Clinger-Cohen Act.--(1) The Director of National 
Intelligence and the Chief Information Officer of the Intelligence 
Community shall fulfill the executive agency responsibilities in 
chapter 113 of title 40, United States Code, for any intelligence 
community business system that receives more than 50 percent of its 
funding from amounts appropriated for the National Intelligence 
Program.
    ``(2) Any intelligence community business system covered by 
paragraph (1) shall be exempt from the requirements of such chapter 113 
that would otherwise apply to the executive agency that contains the 
element of the intelligence community involved.
    ``(j) Reports.--Not later than March 15 of each of the years 2010 
through 2014, the Director of National Intelligence shall submit to the 
congressional intelligence committees a report on the compliance of the 
intelligence community with the requirements of this section. Each such 
report shall--
            ``(1) describe actions taken and proposed for meeting the 
        requirements of subsection (a), including--
                    ``(A) specific milestones and actual performance 
                against specified performance measures, and any 
                revision of such milestones and performance measures; 
                and
                    ``(B) specific actions on the intelligence 
                community business system modernizations submitted for 
                certification under such subsection;
            ``(2) identify the number of intelligence community 
        business system modernizations that received a certification 
        described in subsection (a)(3)(B); and
            ``(3) describe specific improvements in business operations 
        and cost savings resulting from successful intelligence 
        community business systems modernization efforts.
    ``(k) Definitions.--In this section:
            ``(1) The term `enterprise architecture' has the meaning 
        given that term in section 3601(4) of title 44, United States 
        Code.
            ``(2) The terms `information system' and `information 
        technology' have the meanings given those terms in section 
        11101 of title 40, United States Code.
            ``(3) The term `intelligence community business system' 
        means an information system, other than a national security 
        system, that is operated by, for, or on behalf of the 
        intelligence community, including financial systems, mixed 
        systems, financial data feeder systems, and the business 
        infrastructure capabilities shared by the systems of the 
        business enterprise architecture that build upon the core 
        infrastructure used to support business activities, such as 
        acquisition, financial management, logistics, strategic 
        planning and budgeting, installations and environment, and 
        human resource management.
            ``(4) The term `intelligence community business system 
        modernization' means--
                    ``(A) the acquisition or development of a new 
                intelligence community business system; or
                    ``(B) any significant modification or enhancement 
                of an existing intelligence community business system 
                (other than necessary to maintain current services).
            ``(5) The term `national security system' has the meaning 
        given that term in section 3542 of title 44, United States 
        Code.''.
            (2) Clerical amendment.--The table of contents in the first 
        section of that Act, as amended by sections 305 and 312 of this 
        Act, is further amended by inserting after the item relating to 
        section 506C, as added by section 312(b), the following new 
        item:

``Sec. 506D. Intelligence community business systems modernization.''.
    (b) Implementation.--
            (1) Certain duties.--Not later than 60 days after the date 
        of the enactment of this Act, the Director of National 
        Intelligence shall--
                    (A) complete the delegation of responsibility for 
                the review, approval, and oversight of the planning, 
                design, acquisition, deployment, operation, 
                maintenance, and modernization of intelligence 
                community business systems required by subsection (c) 
                of section 506D of the National Security Act of 1947 
                (as added by subsection (a)); and
                    (B) designate a vice chairman and personnel to 
                serve on the appropriate Intelligence Community 
                Strategic Enterprise Management Governance Board 
                established under subsection (f) of such section 506D 
                (as so added).
            (2) Enterprise architecture.--
                    (A) Schedule for development.--The Director shall 
                develop the enterprise architecture required by 
                subsection (b) of such section 506D (as so added) by 
                not later than--
                            (i) March 1, 2009 for all intelligence 
                        community financial management and human 
                        resource systems; and
                            (ii) March 1, 2010 for all remaining 
                        intelligence community business systems.
                    (B) Requirement for implementation plan.--In 
                developing such enterprise architecture, the Director 
                shall develop an implementation plan for such 
                enterprise architecture that includes the following:
                            (i) An acquisition strategy for new systems 
                        that are expected to be needed to complete such 
                        enterprise architecture, including specific 
                        time-phased milestones, performance metrics, 
                        and a statement of the financial and 
                        nonfinancial resource needs.
                            (ii) An identification of the intelligence 
                        community business systems in operation or 
                        planned as of December 31, 2007, that will not 
                        be a part of such enterprise architecture, 
                        together with the schedule for the phased 
                        termination of the utilization of any such 
                        systems.
                            (iii) An identification of the intelligence 
                        community business systems in operation or 
                        planned as of December 31, 2007, that will be a 
                        part of such enterprise architecture, together 
                        with a strategy for modifying such systems to 
                        ensure that such systems comply with such 
                        enterprise architecture.
                    (C) Submission of acquisition strategy.--The 
                Director shall submit the acquisition strategy 
                described in subparagraph (B)(i) to the congressional 
                intelligence committees not later than--
                            (i) March 1, 2009 for all intelligence 
                        community financial management and human 
                        resource systems; and
                            (ii) March 1, 2010 for all remaining 
                        intelligence community business systems.

SEC. 314. EXCESSIVE COST GROWTH OF MAJOR SYSTEMS.

    (a) Notification.--Title V of the National Security Act of 1947, as 
amended by sections 305, 312, and 313 of this Act, is further amended 
by inserting after section 506D, as added by section 313(a), the 
following new section:

                ``excessive cost growth of major systems

    ``Sec. 506E.  (a) Cost Increases of at Least 25 Percent.--(1)(A) On 
a continuing basis, and separate from the submission of any report on a 
major system required by section 506E of this Act, the program manager 
shall determine if the acquisition cost of such major system has 
increased by at least 25 percent as compared to the baseline cost of 
such major system.
    ``(B) Not later than 10 days after the date that a program manager 
determines that an increase described in subparagraph (A) has occurred, 
the program manager shall submit to the Director of National 
Intelligence notification of such increase.
    ``(2)(A) If, after receiving a notification described in paragraph 
(1)(B), the Director of National Intelligence determines that the 
acquisition cost of a major system has increased by at least 25 
percent, the Director shall submit to the congressional intelligence 
committees a written notification of such determination as described in 
subparagraph (B), a description of the amount of the increase in the 
acquisition cost of such major system, and a certification as described 
in subparagraph (C).
    ``(B) The notification required by subparagraph (A) shall include--
            ``(i) an updated cost estimate;
            ``(ii) the date on which the determination covered by such 
        notification was made;
            ``(iii) contract performance assessment information with 
        respect to each significant contract or sub-contract related to 
        such major system, including the name of the contractor, the 
        phase of the contract at the time of the report, the percentage 
        of work under the contract that has been completed, any change 
        in contract cost, the percentage by which the contract is 
        currently ahead or behind schedule, and a summary explanation 
        of significant occurrences, such as cost and schedule 
        variances, and the effect of such occurrences on future costs 
        and schedules;
            ``(iv) the prior estimate of the full life-cycle cost for 
        such major system, expressed in constant dollars and in current 
        year dollars;
            ``(v) the current estimated full life-cycle cost of such 
        major system, expressed in constant dollars and current year 
        dollars;
            ``(vi) a statement of the reasons for any increases in the 
        full life-cycle cost of such major system;
            ``(vii) the current change and the total change, in dollars 
        and expressed as a percentage, in the full life-cycle cost 
        applicable to such major system, stated both in constant 
        dollars and current year dollars;
            ``(viii) the completion status of such major system 
        expressed as the percentage--
                    ``(I) of the total number of years for which funds 
                have been appropriated for such major system compared 
                to the number of years for which it is planned that 
                such funds will be appropriated; and
                    ``(II) of the amount of funds that have been 
                appropriated for such major system compared to the 
                total amount of such funds which it is planned will be 
                appropriated;
            ``(ix) the action taken and proposed to be taken to control 
        future cost growth of such major system; and
            ``(x) any changes made in the performance or schedule of 
        such major system and the extent to which such changes have 
        contributed to the increase in full life-cycle costs of such 
        major system.
    ``(C) The certification described in this subparagraph is a written 
certification made by the Director and submitted to the congressional 
intelligence committees that--
            ``(i) the acquisition of such major system is essential to 
        the national security;
            ``(ii) there are no alternatives to such major system that 
        will provide equal or greater intelligence capability at equal 
        or lesser cost to completion;
            ``(iii) the new estimates of the full life-cycle cost for 
        such major system are reasonable; and
            ``(iv) the management structure for the acquisition of such 
        major system is adequate to manage and control full life-cycle 
        cost of such major system.
    ``(b) Cost Increases of at Least 50 Percent.--(1)(A) On a 
continuing basis, and separate from the submission of any report on a 
major system required by section 506E of this Act, the program manager 
shall determine if the acquisition cost of such major system has 
increased by at least 50 percent as compared to the baseline cost of 
such major system.
    ``(B) Not later than 10 days after the date that a program manager 
determines that an increase described in subparagraph (A) has occurred, 
the program manager shall submit to the Director of National 
Intelligence notification of such increase.
    ``(2) If, after receiving a notification described in paragraph 
(1)(B), the Director of National Intelligence determines that the 
acquisition cost of a major system has increased by at least 50 percent 
as compared to the baseline cost of such major system, the Director 
shall submit to the congressional intelligence committees a written 
certification stating that--
            ``(A) the acquisition of such major system is essential to 
        the national security;
            ``(B) there are no alternatives to such major system that 
        will provide equal or greater intelligence capability at equal 
        or lesser cost to completion;
            ``(C) the new estimates of the full life-cycle cost for 
        such major system are reasonable;
            ``(D) the management structure for the acquisition of such 
        major system is adequate to manage and control the full life-
        cycle cost of such major system; and
            ``(E) if milestone decision authority had been delegated to 
        the program manager, such authority is revoked and returned to 
        the Director, except with respect to Department of Defense 
        programs, such authority is revoked and returned to the 
        Director and the Secretary of Defense, jointly.
    ``(3) In addition to the certification required by paragraph (2), 
the Director of National Intelligence shall submit to the congressional 
intelligence committees an updated notification, with current 
accompanying information, as required by subsection (a)(2).
    ``(c) Prohibition on Obligation of Funds.--(1) If a written 
certification required under subsection (a)(2)(A) is not submitted to 
the congressional intelligence committees within 60 days of the 
determination made under subsection (a)(1), funds appropriated for the 
acquisition of a major system may not be obligated for a major contract 
under the program. Such prohibition on the obligation of funds shall 
cease to apply at the end of the 30-day period of a continuous session 
of Congress that begins on the date on which Congress receives the 
notification required under subsection (a)(2)(A).
    ``(2) If a written certification required under subsection (b)(2) 
is not submitted to the congressional intelligence committees within 60 
days of the determination made under subsection (b)(2), funds 
appropriated for the acquisition of a major system may not be obligated 
for a major contract under the program. Such prohibition on the 
obligation of funds for the acquisition of a major system shall cease 
to apply at the end of the 30-day period of a continuous session of 
Congress that begins on the date on which Congress receives the 
notification required under subsection (b)(3).
    ``(d) Definitions.--In this section:
            ``(1) The term `acquisition cost', with respect to a major 
        system, means the amount equal to the total cost for 
        development and procurement of, and system-specific 
        construction for, such system.
            ``(2) The term `baseline cost', with respect to a major 
        system, means the projected acquisition cost of such system 
        that is approved by the Director of National Intelligence at 
        Milestone B or an equivalent acquisition decision for the 
        development, procurement, and construction of such system. The 
        baseline cost may be in the form of an independent cost 
        estimate.
            ``(3) The term `full life-cycle cost', with respect to the 
        acquisition of a major system, means all costs of development, 
        procurement, construction, deployment, and operation and 
        support for such program, without regard to funding source or 
        management control, including costs of development and 
        procurement required to support or utilize such system.
            ``(4) The term `independent cost estimate' has the meaning 
        given that term in section 506A(e).
            ``(5) The term `major system' has the meaning given that in 
        section 4 of the Office of Federal Procurement Policy Act (41 
        U.S.C. 403).
            ``(6) The term `Milestone B' means a decision to enter into 
        system development, integration, and demonstration pursuant to 
        guidance prescribed by the Director of National Intelligence.
            ``(7) The term `program manager', with respect to a major 
        system, means--
                    ``(A) the head of the element of the intelligence 
                community which is responsible for the budget, cost, 
                schedule, and performance of the major system; or
                    ``(B) in the case of a major system within the 
                Office of the Director of National Intelligence, the 
                deputy who is responsible for the budget, cost, 
                schedule, and performance of the major system.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of that Act, as amended by sections 305, 312, and 313 of this Act, is 
further amended by inserting after the items relating to section 506D, 
as added by section 313(b), the following new item:

``Sec. 506E. Excessive cost growth of major systems.''.

SEC. 315. PROHIBITION ON CONFLICTS OF INTEREST IN INTELLIGENCE 
              COMMUNITY CONTRACTING.

    (a) In General.--Title V of the National Security Act of 1947, as 
amended by sections 305, 312, 313, and 314 of this Act, is further 
amended by inserting after section 506E, as added by section 314(a), 
the following new section:

   ``prohibition on conflicts of interest in intelligence community 
                              contracting

    ``Sec. 506F.  (a) Prohibition on Conflicts of Interest.--Beginning 
in fiscal year 2010, a contract for the provision of advisory and 
assistance services related to any major system acquisition with an 
element of the intelligence community shall not be awarded to an entity 
whose business activities include the provision of products or services 
related to the same major system acquisition to any element of the 
intelligence community.
    ``(b) Definitions.--In this section:
            ``(1) The term `contract for the provision of advisory and 
        assistance services' means a contract for activities that could 
        otherwise be considered inherently governmental but are 
        provided by nongovernmental sources to support or improve 
        organizational policy development, decisionmaking, management 
        and administration, and program or project management and 
        administration.
            ``(2) The term `entity' includes any company, corporation, 
        sole proprietorship, person, or any other business arrangement, 
        including a parent, affiliate, or subsidiary thereto.
            ``(3) The term `major system' has the meaning given that 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).''.
    (b) Clerical Amendment.--The table of contents in the first section 
of that Act, as amended by sections 305, 312, 313, and 314 of this Act, 
is further amended by inserting after the items relating to section 
506E, as added by section 314(b), the following new item:

``Sec. 506F. Prohibition on conflicts of interest in intelligence 
                            community contracting.''.

SEC. 316. FUTURE BUDGET PROJECTIONS.

    (a) In General.--Title V of the National Security Act of 1947, as 
amended by sections 305, 312, 313, 314, and 315 of this Act, is further 
amended by inserting after section 506F, as added by section 315(a), 
the following new section:

                      ``future budget projections

    ``Sec. 506G.  (a) Future Year Intelligence Plans.--(1) The Director 
of National Intelligence, with the concurrence of the Office of 
Management and Budget, shall provide to the congressional intelligence 
committees a Future Year Intelligence Plan, as described in paragraph 
(2), for--
            ``(A) each expenditure center in the National Intelligence 
        Program; and
            ``(B) each major system in the National Intelligence 
        Program.
    ``(2)(A) A Future Year Intelligence Plan submitted under this 
subsection shall include the year-by-year proposed funding for each 
center or system referred to in subparagraph (A) or (B) of paragraph 
(1), for the budget year in which the Plan is submitted and not less 
than the 4 subsequent budget years.
    ``(B) A Future Year Intelligence Plan submitted under subparagraph 
(B) of paragraph (1) for a major system shall include--
            ``(i) the estimated total life-cycle cost of such major 
        system; and
            ``(ii) any major acquisition or programmatic milestones for 
        such major system.
    ``(b) Long-Term Budget Projections.--(1) The Director of National 
Intelligence, with the concurrence of the Director of the Office of 
Management and Budget, shall provide to the congressional intelligence 
committees a Long-term Budget Projection for each element of the 
National Intelligence Program acquiring a major system that includes 
the budget for such element for the 10-year period following the last 
budget year for which proposed funding was submitted under subsection 
(a)(2)(A).
    ``(2) A Long-term Budget Projection submitted under paragraph (1) 
shall include, at a minimum, projections for the appropriate element of 
the intelligence community for--
            ``(A) pay and benefits of officers and employees of such 
        element;
            ``(B) other operating and support costs and minor 
        acquisitions of such element;
            ``(C) research and technology required by such element;
            ``(D) current and planned major system acquisitions for 
        such element; and
            ``(E) any unplanned but necessary next-generation major 
        system acquisitions for such element.
    ``(c) Submission to Congress.--Each Future Year Intelligence Plan 
or Long-term Budget Projection required under subsection (a) or (b) 
shall be submitted to Congress along with the budget for a fiscal year 
submitted to Congress by the President pursuant to section 1105(a) of 
title 31, United States Code.
    ``(d) Content of Long-Term Budget Projections.--(1) Each Long-term 
Budget Projection submitted under subsection (b) shall include--
            ``(A) a budget projection based on constrained budgets, 
        effective cost and schedule execution of current or planned 
        major system acquisitions, and modest or no cost-growth for 
        undefined, next-generation systems; and
            ``(B) a budget projection based on constrained budgets, 
        modest cost increases in executing current and planned 
        programs, and more costly next-generation systems.
    ``(2) Each budget projection required by paragraph (1) shall 
include a description of whether, and to what extent, the total 
projection for each year exceeds the level that would result from 
applying the most recent Office of Management and Budget inflation 
estimate to the budget of that element of the intelligence community.
    ``(e) Increase in Future Budget Projections.--(1) Not later than 30 
days prior to the date that an element of the intelligence community 
may proceed to Milestone A, Milestone B, or an analogous stage of 
system development, in the acquisition of a major system in the 
National Intelligence Program, the Director of National Intelligence, 
with the concurrence of the Director of the Office of Management and 
Budget, shall provide a report on such major system to the 
congressional intelligence committees.
    ``(2)(A) A report submitted under paragraph (1) shall include an 
assessment of whether, and to what extent, such acquisition, if 
developed, procured, and operated, is projected to cause an increase in 
the most recent Future Year Intelligence Plan and Long-term Budget 
Projection for that element of the intelligence community.
    ``(B) If an increase is projected under subparagraph (A), the 
report required by this subsection shall include a specific finding, 
and the reasons therefor, by the Director of National Intelligence and 
the Director of the Office of Management and Budget that such increase 
is necessary for national security.
    ``(f) Definitions.--In this section:
            ``(1) The term `major system' has the meaning given that 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).
            ``(2) The term `Milestone A' means a decision to enter into 
        concept refinement and technology maturity demonstration 
        pursuant to guidance issued by the Director of National 
        Intelligence.
            ``(3) The term `Milestone B' means a decision to enter into 
        system development, integration, and demonstration pursuant to 
        guidance prescribed by the Director of National 
        Intelligence.''.
    (b) Clerical Amendment.--The table of contents in the first section 
of that Act, as amended by sections 305, 312, 313, 314, and 315 of this 
Act, is further amended by inserting after the items relating to 
section 506F, as added by section 315(b), the following new item:

``Sec. 506G. Future budget projections.''.
    (c) Definition of Major System.--Paragraph (3) of section 506A(e) 
of the National Security Act of 1947 (50 U.S.C. 415a-1(e)) is amended 
to read as follows:
            ``(3) The term `major system' has the meaning given that 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).''.

        Subtitle C--Interrogation and Detention Related Matters

SEC. 321. LIMITATION ON INTERROGATION TECHNIQUES.

    (a) Limitation.--No individual in the custody or under the 
effective control of personnel of an element of the intelligence 
community or instrumentality of an element of the intelligence 
community, regardless of nationality or physical location of such 
individual or personnel, shall be subject to any treatment or technique 
of interrogation not authorized by the United States Army Field Manual 
on Human Intelligence Collector Operations.
    (b) Instrumentality Defined.--In this section, the term 
``instrumentality'', with respect to an element of the intelligence 
community, means a contractor or subcontractor at any tier of the 
element of the intelligence community.

SEC. 322. PROHIBITION ON INTERROGATIONS BY CONTRACTORS.

    The Director of the Central Intelligence Agency may not permit a 
contractor or subcontractor to the Central Intelligence Agency to carry 
out an interrogation of an individual. Any interrogation carried out on 
behalf of the Central Intelligence Agency shall be conducted by an 
employee of such Agency.

SEC. 323. NOTIFICATION OF THE INTERNATIONAL COMMITTEE OF THE RED CROSS.

    (a) Requirement.--No funds authorized to be appropriated by this 
Act may be used to detain any individual who is in the custody or under 
the effective control of an element of the intelligence community (as 
that term is defined in section 3 of the National Security Act of 1947 
(50 U.S.C. 401a)) or an instrumentality of such element if the 
International Committee of the Red Cross is not provided notification 
of the detention of such individual and access to such individual in a 
manner consistent with the practices of the Armed Forces.
    (b) Construction.--Nothing in this section shall be construed--
            (1) to create or otherwise imply the authority to detain; 
        or
            (2) to limit or otherwise affect any other rights or 
        obligations which may arise under the Geneva Conventions or 
        other laws, or to state all of the situations under which 
        notification to and access for the International Committee of 
        the Red Cross is required or allowed.
    (c) Instrumentality Defined.--In this section, the term 
``instrumentality'', with respect to an element of the intelligence 
community, means a contractor or subcontractor at any tier of the 
element of the intelligence community.

SEC. 324. REPORT ON COMPLIANCE WITH THE DETAINEE TREATMENT ACT OF 2005 
              AND RELATED PROVISIONS OF THE MILITARY COMMISSIONS ACT OF 
              2006.

    (a) Report Required.--Not later than 45 days after the date of the 
enactment of this Act, the Director of National Intelligence shall 
submit to the congressional intelligence committees a comprehensive 
report on all measures taken by the Office of the Director of National 
Intelligence and by each element, if any, of the intelligence community 
with relevant responsibilities to comply with the provisions of the 
Detainee Treatment Act of 2005 (title X of division A of Public Law 
109-148; 119 Stat. 2739) and related provisions of the Military 
Commissions Act of 2006 (Public Law 109-366; 120 Stat. 2600).
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) A description of the detention or interrogation 
        methods, if any, that have been determined to comply with 
        section 1003 of the Detainee Treatment Act of 2005 (42 U.S.C. 
        2000dd) and section 6 of the Military Commissions Act of 2006 
        (120 Stat. 2632) (including the amendments made by such 
        section) and, with respect to each such method--
                    (A) an identification of the official making such 
                determination; and
                    (B) a statement of the basis for such 
                determination.
            (2) A description of the detention or interrogation 
        methods, if any, whose use has been discontinued pursuant to 
        the Detainee Treatment Act of 2005 or the Military Commission 
        Act of 2006, and, with respect to each such method--
                    (A) an identification of the official making the 
                determination to discontinue such method; and
                    (B) a statement of the basis for such 
                determination.
            (3) A description of any actions that have been taken to 
        implement section 1004 of the Detainee Treatment Act of 2005 
        (42 U.S.C. 2000dd-1), and, with respect to each such action--
                    (A) an identification of the official taking such 
                action; and
                    (B) a statement of the basis for such action.
            (4) Any other matters that the Director of National 
        Intelligence considers necessary to fully and currently inform 
        the congressional intelligence committees about the 
        implementation of the Detainee Treatment Act of 2005 and 
        related provisions of the Military Commissions Act of 2006.
            (5) An appendix containing--
                    (A) all guidelines for the application of the 
                Detainee Treatment Act of 2005 and related provisions 
                of the Military Commissions Act of 2006 to the 
                detention or interrogation activities, if any, of any 
                element of the intelligence community; and
                    (B) any legal justifications of any office of the 
                Department of Justice related to the interpretation or 
                application of the Detainee Treatment Act of 2005 or 
                related provisions of the Military Commissions Act of 
                2006, with respect to the detention or interrogation 
                activities, of any element of the intelligence 
                community.
    (c) Form.--The report required by subsection (a) shall be submitted 
in classified form.
    (d) Submission to the Congressional Armed Services Committees.--To 
the extent that the report required by subsection (a) addresses an 
element of the intelligence community within the Department of Defense, 
that portion of the report, and any associated material that is 
necessary to make that portion understandable, shall also be submitted 
by the Director of National Intelligence to the congressional armed 
services committees.
    (e) Congressional Armed Services Committee Defined.--In this 
section, the term ``congressional armed services committees'' means--
            (1) the Committee on Armed Services of the Senate; and
            (2) the Committee on Armed Services of the House of 
        Representatives.

                   Subtitle D--Reporting Requirements

SEC. 331. REPORT ON USE OF CONTRACTORS BY ELEMENTS OF THE INTELLIGENCE 
              COMMUNITY.

    Not later than 180 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 describes--
            (1) any activity that is being conducted by 1 or more 
        contractors on behalf of an element of the intelligence 
        community that the Director believes should only be conducted 
        by employees of an agency or department of the United States;
            (2) an estimate of the number of contractors conducting 
        each such activity; and
            (3) the plan of the Director, if any, to have each such 
        activity be conducted by employees of an agency or department 
        of the United States.

SEC. 332. IMPROVEMENT OF NOTIFICATION OF CONGRESS REGARDING 
              INTELLIGENCE ACTIVITIES OF THE UNITED STATES.

    (a) Notice on Information Not Disclosed.--
            (1) In general.--Section 502 of the National Security Act 
        of 1947 (50 U.S.C. 413a) is amended--
                    (A) by redesignating subsections (b) and (c) as 
                subsections (c) and (d), respectively;
                    (B) by inserting after subsection (a) the 
                following:
    ``(b) Notice on Information Not Disclosed.--(1) If the Director of 
National Intelligence or the head of a department, agency, or other 
entity of the United States Government does not provide information 
required by subsection (a) in full or to all the members of the 
congressional intelligence committees and requests that such 
information not be so provided, the Director shall, in a timely 
fashion, provide written notification to all the members of such 
committees of the determination not to provide such information in full 
or to all members of such committees. Such notice shall include a 
statement of the reasons for such determination and description that 
provides the main features of the intelligence activities covered by 
such determination.
    ``(2) Nothing in this subsection shall be construed as authorizing 
less than full and current disclosure to all the members of the 
congressional intelligence committees of any information necessary to 
keep all such members fully and currently informed on all intelligence 
activities described in subsection (a).''; and
                    (C) by inserting after subsection (d), as 
                redesignated by subparagraph (A) of this section, the 
                following:
    ``(e) Congressional Intelligence Committees Defined.--In this 
section the term `congressional intelligence committees' means the 
Select Committee on Intelligence of the Senate and the Permanent Select 
Committee on Intelligence of the House of Representatives.''.
            (2) Conforming amendment.--Subsection (d) of such section, 
        as redesignated by paragraph (1)(A) of this subsection, is 
        amended by striking ``subsection (b)'' and inserting 
        ``subsections (b) and (c)''.
    (b) Reports and Notice on Covert Actions.--
            (1) Form and content of certain reports.--Subsection (b) of 
        section 503 of such Act (50 U.S.C. 413b) is amended--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively;
                    (B) by inserting ``(1)'' after ``(b)''; and
                    (C) by adding at the end the following:
            ``(2) Any information relating to a covert action that is 
        submitted to the congressional intelligence committees for the 
        purposes of paragraph (1) shall be in writing and shall contain 
        the following:
                    ``(A) A concise statement of any facts pertinent to 
                such covert action.
                    ``(B) An explanation of the significance of such 
                covert action.''.
            (2) Notice on information not disclosed.--Subsection (c) of 
        such section is amended by adding at the end the following:
    ``(5)(A) If the Director of National Intelligence or the head of a 
department, agency, or other entity of the United States Government 
does not provide information required by subsection (b) in full or to 
all the members of the congressional intelligence committees, and 
requests that such information not be so provided, the Director shall, 
in a timely fashion, notify such committees of the determination not to 
provide such information in full or to all members of such committees.
    ``(B) A notice required by subparagraph (A) shall be submitted in 
writing in a classified form and include--
            ``(i) a statement of the reasons that such information will 
        not be provided in full or to all the members of the 
        congressional intelligence committees; and
            ``(ii) a description of the main features of the covert 
        action described in subsection (b) for which such information 
        will not be provided.
    ``(C) Each member of the congressional intelligence committees 
shall have unrestricted access to each notice required by subparagraph 
(A).''.
            (3) Modification of nature of change of covert action 
        triggering notice requirements.--Subsection (d) of such section 
        is amended by striking ``significant'' the first place that 
        term appears.
            (4) Congressional intelligence committees defined.--Such 
        section is further amended by adding at the end the following:
    ``(g) In this section, the term `congressional intelligence 
committees' means the Select Committee on Intelligence of the Senate 
and the Permanent Select Committee on Intelligence of the House of 
Representatives.''.

SEC. 333. FEDERAL BUREAU OF INVESTIGATION INTELLIGENCE TRANSFORMATION.

    (a) Finding.--Congress finds that the members of the National 
Commission on Terrorist Attacks Upon the United States gave the Federal 
Bureau of Investigation a ``C'' in their final report on intelligence 
reform. Specifically, the members stated that ``progress is being made-
but it is too slow. The FBI's shift to a counterterrorism posture is 
far from institutionalized, and significant deficiencies remain. 
Reforms are at risk from inertia and complacency; they must be 
accelerated, or they will fail. Unless there is improvement in a 
reasonable period of time, Congress will have to look at 
alternatives.''.
    (b) Federal Bureau of Investigation Intelligence Transformation.--
The Director of National Intelligence, in coordination with the 
Director of the Federal Bureau of Investigation, shall establish 
performance metrics and specific timetables related to the progress of 
the Federal Bureau of Investigation in carrying out the following:
            (1) Improving cooperation between the Federal Bureau of 
        Intelligence and the Office of the Director of National 
        Intelligence.
            (2) Improving the Federal Bureau of Investigation National 
        Intelligence Program budget structure.
            (3) Improving intelligence enabling information technology.
            (4) Advancing the analytic culture of the Federal Bureau of 
        Investigation.
            (5) Improving the intelligence training curriculum.
            (6) Regionalization of the Federal Bureau of Investigation 
        intelligence program.
            (7) Improving the Federal Bureau of Investigation's Weapons 
        of Mass Destruction Directorate.
            (8) Improving the national security workforce management at 
        the Federal Bureau of Investigation.
            (9) Improving the headquarters staffing of National 
        Security Programs of the Federal Bureau of Investigation.
    (c) Report.--On a semiannual basis during the 5-year period 
beginning on the date of the enactment of this Act, the Director of 
National Intelligence shall submit to the congressional intelligence 
committees a consolidated report on the progress of the Federal Bureau 
of Investigation in carrying out items in paragraphs (1) through (9) of 
subsection (b), including an assessment of the metrics, timetables, and 
corrective actions referred to in such subsection and a description of 
the activities being carried out to ensure the Federal Bureau of 
Investigation is improving its performance.

SEC. 334. INCORPORATION OF REPORTING REQUIREMENTS.

    Each requirement to submit a report to the congressional 
intelligence committees that is included in the classified annex to 
this Act is hereby incorporated into this Act and is hereby made a 
requirement in law.

SEC. 335. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

    (a) Annual Report on Intelligence.--
            (1) Repeal.--Section 109 of the National Security Act of 
        1947 (50 U.S.C. 404d) is repealed.
            (2) Clerical amendment.--The table of contents in the first 
        section of the National Security Act of 1947 is amended by 
        striking the item relating to section 109.
    (b) Annual and Special Reports on Intelligence Sharing With the 
United Nations.--Section 112 of the National Security Act of 1947 (50 
U.S.C. 404g) is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsections (c), (d), and (e) as 
        subsections (b), (c), and (d), respectively.
    (c) Annual Certification on Counterintelligence Initiatives.--
Section 1102(b) of the National Security Act of 1947 (50 U.S.C. 
442a(b)) is amended--
            (1) by striking ``(1)''; and
            (2) by striking paragraph (2).
    (d) Report and Certification Under Terrorist Identification 
Classification System.--Section 343 of the Intelligence Authorization 
Act for Fiscal Year 2003 (50 U.S.C. 404n-2) is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e), (f), (g), and (h) as 
        subsections (d), (e), (f), and (g), respectively.
    (e) Annual Report on Counterdrug Intelligence Matters.--Section 826 
of the Intelligence Authorization Act for Fiscal Year 2003 (Public Law 
107-306; 116 Stat. 2429; 21 U.S.C. 873 note) is repealed.
    (f) Biennial Report on the Safety and Security of Russian Nuclear 
Facilities and Nuclear Military Forces.--
            (1) In general.--Section 114 of the National Security Act 
        of 1947 (40 U.S.C. 404i) is amended--
                    (A) in the heading, by striking ``annual''; and
                    (B) in subsection (a)--
                            (i) in the heading, by striking ``Annual'' 
                        and inserting ``Biennial'';
                            (ii) by striking ``an annual'' and 
                        inserting ``a biennial''; and
                            (iii) by striking ``each'' and inserting 
                        ``every other''.
            (2) Clerical amendment.--The table of contents in the first 
        section of that Act is amended by striking the item relating to 
        section 114 and inserting the following:

``Sec. 114. Additional reports for the Director of National 
                            Intelligence.''.
    (g) Annual Review of Dissemination Lists.--Section 1102 of the 
National Security Act of 1947 (50 U.S.C. 442a) is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.
    (h) Biennial Report on Espionage by the People's Republic of 
China.--
            (1) In general.--Section 3151 of the National Defense 
        Authorization Act for Fiscal Year 2000 (42 U.S.C. 7383e) is 
        amended--
                    (A) in the heading, by striking ``annual'' and 
                inserting ``biennial''; and
                    (B) in subsection (a)--
                            (i) in the heading, by striking ``Annual'' 
                        and inserting ``Biennial''; and
                            (ii) by striking ``an annual'' and 
                        inserting ``a biennial''
            (2) Clerical amendment.--The table of contents in 
        subsection (b) of section 2 of that Act (Public Law 106-65; 113 
        Stat. 512) is amended by striking the item relating to section 
        3151 and inserting the following:

``Sec. 3151. Report by the President on espionage by the People's 
                            Republic of China.''.
    (i) Biennial Report on Dismantling of Strategic Nuclear Warheads.--
            (1) In general.--Section 1033 of the National Defense 
        Authorization Act for Fiscal Year 2004 (Public Law 108-136; 22 
        U.S.C. 5959 note) is amended--
                    (A) in the heading by striking ``annual'' and 
                inserting ``biennial'';
                    (B) in subsection (a)--
                            (i) in the heading, by striking ``annual'' 
                        and inserting ``biennial'';
                            (ii) by striking ``each'' and inserting 
                        ``every other'';
                            (iii) by striking ``prior fiscal year'' and 
                        inserting ``prior 2 fiscal years''; and
                            (iv) by striking ``the fiscal year covered 
                        by the budget'' and inserting ``the following 2 
                        fiscal years'';
                    (C) in subsection (b), by striking ``The annual 
                report'' and inserting ``Each report submitted'';
                    (D) in subsection (c), by striking ``an annual'' 
                and inserting ``a''; and
                    (E) in subsection (e), by striking ``annual''.
            (2) Clerical amendment.--The table of contents in 
        subsection (b) of section 2 of that Act (Public Law 108-136; 
        117 Stat. 1392) is amended by striking the item relating to 
        section 1033 and inserting the following:

``Sec. 1033. Biennial report concerning dismantling of strategic 
                            nuclear warheads.''.
    (j) Conforming Amendments.--Section 507(a) of the National Security 
Act of 1947 (50 U.S.C. 415b(a)) is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraphs (A) and (B); and
                    (B) by redesignating subparagraphs (C) through (N) 
                as subparagraphs (A) through (L), respectively; and
            (2) in paragraph (2), by striking subparagraph (D).

                       Subtitle E--Other Matters

SEC. 341. 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. 342. CLARIFICATION OF DEFINITION OF INTELLIGENCE COMMUNITY UNDER 
              THE NATIONAL SECURITY ACT OF 1947.

    Subparagraph (L) of section 3(4) of the National Security Act of 
1947 (50 U.S.C. 401a(4)) is amended by striking ``other'' the second 
place it appears.

SEC. 343. MODIFICATION OF AVAILABILITY OF FUNDS FOR DIFFERENT 
              INTELLIGENCE ACTIVITIES.

    Subparagraph (B) of section 504(a)(3) of the National Security Act 
of 1947 (50 U.S.C. 414(a)(3)) is amended to read as follows:
            ``(B) the use of such funds for such activity supports an 
        emergent need, improves program effectiveness, or increases 
        efficiency; and''.

SEC. 344. ADDITIONAL LIMITATION ON AVAILABILITY OF FUNDS FOR 
              INTELLIGENCE AND INTELLIGENCE-RELATED ACTIVITIES.

    Section 504 of the National Security Act of 1947 (50 U.S.C. 414) is 
amended--
            (1) in subsection (a), by inserting ``the congressional 
        intelligence committees have been fully and currently informed 
        of such activity and if'' after ``only if'';
            (2) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (c), (d), (e), and (f), respectively; and
            (3) by inserting after subsection (a) the following:
    ``(b) In any case in which notice to the congressional intelligence 
committees of an intelligence or intelligence-related activity is 
covered by section 502(b), or in which notice to the congressional 
intelligence committees on a covert action is covered by section 
503(c)(5), the congressional intelligence committees shall be treated 
as being fully and currently informed on such activity or covert 
action, as the case may be, for purposes of subsection (a) if the 
requirements of such section 502(b) or 503(c)(5), as applicable, have 
been met.''.

SEC. 345. LIMITATION ON REPROGRAMMINGS AND TRANSFERS OF FUNDS.

    (a) In General.--Subsection (a)(3) of section 504 of the National 
Security Act of 1947 (50 U.S.C. 414) is amended--
            (1) in subparagraph (B), as amended by section 343 by 
        striking ``and'' at the end;
            (2) in subparagraph (C), by adding ``and'' at the end; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) the making available of such funds for such 
                activity complies with the requirements in subsection 
                (d);''.
    (b) Procedures.--Such section is further amended--
            (1) by redesignating subsections (e) and (f), as 
        redesignated by section 344(2) as subsections (f) and (g), 
        respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d)(1) Except as provided in paragraph (2), if following a notice 
of intent to make funds available for a different activity under 
subsection (a)(3)(C) one of the congressional intelligence committees 
submits to the element of the intelligence community that will carry 
out such activity a request for additional information on such 
activity, such funds may not be made available for such activity under 
subsection (a)(3) until such date, up to 90 days after the date of such 
request, as specified by such congressional intelligence committee.
    ``(2) The President may waive the requirements of paragraph (1) and 
make funds available for an element of the intelligence community to 
carry out a different activity under subsection (a)(3) if the President 
submits to the congressional intelligence committees a certification 
providing that--
            ``(A) the use of such funds for such activity is necessary 
        to fulfill an urgent operational requirement, excluding a cost 
        overrun on the acquisition of a major system, of an element of 
        the intelligence community; and
            ``(B) such waiver is necessary so that an element of the 
        intelligence community may carry out such activity prior to the 
        date that funds would be made available under paragraph (1).''.
    (c) Definitions.--Subsection (g) of such section, as redesignated 
by subsection (b)(1) of this section, is amended--
            (1) by redesignating paragraph (3) as paragraph (5);
            (2) by redesignating paragraphs (1) and (2) as paragraphs 
        (3) and (1), respectively;
            (3) by striking ``and'' at the end of paragraph (1), as 
        redesignated by paragraph (2) of this subsection;
            (4) by inserting after paragraph (1), as so redesignated, 
        the following:
            ``(2) the term `congressional intelligence committees' 
        means the Select Committee on Intelligence of the Senate and 
        the Permanent Select Committee on Intelligence of the House of 
        Representatives;''; and
            (5) by inserting after paragraph (3), as redesignated by 
        paragraph (2) of this subsection, the following:
            ``(4) the term `major system' has the meaning given that 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403); and''.

SEC. 346. AVAILABILITY TO PUBLIC OF CERTAIN INTELLIGENCE FUNDING 
              INFORMATION.

    Subsection (b) of section 601 of the Implementing Recommendations 
of the 9/11 Commission Act of 2007 (50 U.S.C. 415c) is amended by 
striking ``2009'' and inserting ``2010''.

SEC. 347. INCREASE IN PENALTIES FOR DISCLOSURE OF UNDERCOVER 
              INTELLIGENCE OFFICERS AND AGENTS.

    (a) Disclosure of Agent After Access to Information Identifying 
Agent.--Subsection (a) of section 601 of the National Security Act of 
1947 (50 U.S.C. 421) is amended by striking ``ten years'' and inserting 
``15 years''.
    (b) Disclosure of Agent After Access to Classified Information.--
Subsection (b) of such section is amended by striking ``five years'' 
and inserting ``10 years''.

SEC. 348. AUTHORITY TO DESIGNATE UNDERCOVER OPERATIONS TO COLLECT 
              FOREIGN INTELLIGENCE OR COUNTERINTELLIGENCE.

    Paragraph (1) of section 102(b) of the Department of Justice and 
Related Agencies Appropriations Act, 1993 (Public Law 102-395; 28 
U.S.C. 533 note) is amended in the flush text following subparagraph 
(D) by striking ``(or, if designated by the Director, the Assistant 
Director, Intelligence Division) and the Attorney General (or, if 
designated by the Attorney General, the Assistant Attorney General for 
National Security)'' and inserting ``(or a designee of the Director who 
is in a position not lower than Deputy Assistant Director in the 
National Security Branch or a similar successor position) and the 
Attorney General (or a designee of the Attorney General who is in the 
National Security Division in a position not lower than Deputy 
Assistant Attorney General or a similar successor position)''.

SEC. 349. LANGUAGE AND INTELLIGENCE ANALYST TRAINING PROGRAM.

    (a) In General.--Section 922 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 50 
U.S.C. 402 note) is amended to read as follows:

``SEC. 922. LANGUAGE AND INTELLIGENCE ANALYST TRAINING PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Director.--The term `Director' means the Director of 
        National Intelligence.
            ``(2) Institution of higher education.--The term 
        `institution of higher education' has the meaning given that 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            ``(3) Program.--The term `program' means the grant program 
        to promote language and intelligence analysis training 
        authorized by subsection (b).
    ``(b) Authority.--The Director is authorized to carry out a grant 
program to promote language and intelligence analysis, as described in 
this section.
    ``(c) Purpose.--The purpose of the program shall be to increase the 
number of individuals qualified for an entry-level language analyst or 
intelligence analyst position within an element of the intelligence 
community by providing--
            ``(1) grants to qualified institutions of higher education, 
        as described in subsection (d); and
            ``(2) grants to qualified individuals, as described in 
        subsection (e).
    ``(d) Grants to Institutions of Higher Education.--(1) The Director 
is authorized to provide a grant through the program to an institution 
of higher education to develop a course of study to prepare students of 
such institution for an entry-level language analyst or intelligence 
analyst position within an element of the intelligence community.
    ``(2) An institution of higher education seeking a grant under this 
subsection shall submit an application describing the proposed use of 
the grant at such time and in such manner as the Director may require.
    ``(3) The Director shall award a grant to an institution of higher 
education under this subsection--
            ``(A) on the basis of the ability of such institution to 
        use the grant to prepare students for an entry-level language 
        analyst or intelligence analyst position within an element of 
        the intelligence community upon completion of study at such 
        institution; and
            ``(B) in a manner that provides for geographical diversity 
        among the institutions of higher education that receive such 
        grants.
    ``(4) An institution of higher education that receives a grant 
under this subsection shall submit to the Director regular reports 
regarding the use of such grant, including--
            ``(A) a description of the benefits to students who 
        participate in the course of study funded by such grant;
            ``(B) a description of the results and accomplishments 
        related to such course of study; and
            ``(C) any other information that the Director may require.
    ``(5) The Director is authorized to provide an institution of 
higher education that receives a grant under this section with advice 
and counsel related to the use of such grant.
    ``(e) Grants to Individuals.--(1) The Director is authorized to 
provide a grant through the program to an individual to assist such 
individual in pursuing a course of study--
            ``(A) identified by the Director as meeting a current or 
        emerging mission requirement of an element of the intelligence 
        community; and
            ``(B) that will prepare such individual for an entry-level 
        language analyst or intelligence analyst position within an 
        element of the intelligence community.
            ``(2) The Director is authorized to provide a grant 
        described in paragraph (1) to an individual for the following 
        purposes:
                    ``(A) To provide a monthly stipend for each month 
                that the individual is pursuing a course of study 
                described in paragraph (1).
                    ``(B) To pay the individual's full tuition to 
                permit the individual to complete such a course of 
                study.
                    ``(C) To provide an allowance for books and 
                materials that the individual requires to complete such 
                course of study.
                    ``(D) To pay the individual's expenses for travel 
                that is requested by an element of the intelligence 
                community related to the program.
    ``(3)(A) The Director shall select individuals to receive grants 
under this subsection using such procedures as the Director determines 
are appropriate.
    ``(B) An individual seeking a grant under this subsection shall 
submit an application describing the proposed use of the grant at such 
time and in such manner as the Director may require.
    ``(C) The total number of individuals receiving grants under this 
subsection at any 1 time may not exceed 400.
    ``(D) The Director is authorized to screen and qualify each 
individual selected to receive a grant under this subsection for the 
appropriate security clearance without regard to the date that the 
employment relationship between the individual and the element of the 
intelligence community is formed.
    ``(4) An individual who receives a grant under this subsection 
shall enter into an agreement to perform, upon such individual's 
completion of a course of study described in paragraph (1), 1 year of 
service within an element of the intelligence community, as approved by 
the Director, for each academic year for which such individual received 
grant funds under this subsection.
    ``(5) If an individual who receives a grant under this subsection--
            ``(A) fails to complete a course of study described in 
        paragraph (1) or the individual's participation in the program 
        is terminated prior to the completion of such course of study, 
        either by the Director for misconduct or voluntarily by the 
        individual, the individual shall reimburse the United States 
        for the amount of such grant (excluding the individual's 
        stipend, pay, and allowances); or
            ``(B) fails to complete the service requirement with an 
        element of the intelligence community described in paragraph 
        (4) after completion of such course of study or if the 
        individual's employment with such element of the intelligence 
        community is terminated either by the head of such element for 
        misconduct or voluntarily by the individual prior to the 
        individual's completion of such service requirement, the 
        individual shall--
                    ``(i) reimburse the United States for full amount 
                of such grant (excluding the individual's stipend, pay, 
                and allowances) if the individual did not complete any 
                portion of such service requirement; or
                    ``(ii) reimburse the United States for the 
                percentage of the total amount of such grant (excluding 
                the individual's stipend, pay, and allowances) that is 
                equal to the percentage of the period of such service 
                requirement that the individual did not serve.
    ``(6)(A) If an individual incurs an obligation to reimburse the 
United States under subparagraph (A) or (B) of paragraph (5), the head 
of the element of the intelligence community that employed or intended 
to employ such individual shall notify the Director of such obligation.
    ``(B) Except as provided in subparagraph (D), an obligation to 
reimburse the United States incurred under such subparagraph (A) or 
(B), including interest due on such obligation, is for all purposes a 
debt owing the United States.
    ``(C) A discharge in bankruptcy under title 11, United States Code, 
shall not release an individual from an obligation to reimburse the 
United States incurred under such subparagraph (A) or (B) if the final 
decree of the discharge in bankruptcy is issued within 5 years after 
the last day of the period of the service requirement described in 
subparagraph (4).
    ``(D) The Director may release an individual from part or all of 
the individual's obligation to reimburse the United States incurred 
under such subparagraph (A) or (B) if the Director determines that 
equity or the interests of the United States require such a release.
    ``(f) Management.--In carrying out the program, the Director 
shall--
            ``(1) be responsible for the oversight of the program and 
        the development of policy guidance and implementing procedures 
        for the program;
            ``(2) solicit participation of institutions of higher 
        education in the program through appropriate means; and
            ``(3) provide each individual who participates in the 
        program under subsection (e) information on opportunities 
        available for employment within an element of the intelligence 
        community.
    ``(g) Penalties for Fraud.--An institution of higher education or 
the officers of such institution or an individual who receives a grant 
under the program as a result of fraud in any aspect of the grant 
process may be subject to criminal or civil penalties in accordance 
with applicable Federal law.
    ``(h) Construction.--Unless mutually agreed to by all parties, 
nothing in this section may be construed to amend, modify, or abrogate 
any agreement, contract, or employment relationship that was in effect 
on the day prior to the date of enactment of the Intelligence 
Authorization Act for Fiscal Year 2009.
    ``(i) Effect of Other Law.--The Director shall administer the 
program pursuant to the provisions of chapter 63 of title 31, United 
States Code and chapter 75 of such title, except that the Comptroller 
General of the United States shall have no authority, duty, or 
responsibility in matters related to this program.''.
    (b) Clerical Amendment.--The table of contents in section 2(b) of 
the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 is amended by striking the item relating to section 922 and 
inserting the following:

``Sec. 922. Language and intelligence analyst training program.''.

SEC. 350. EXTENSION OF AUTHORITY TO DELETE INFORMATION ABOUT RECEIPT 
              AND DISPOSITION OF FOREIGN GIFTS AND DECORATIONS.

    Paragraph (4) of section 7342(f) of title 5, United States Code, is 
amended to read as follows:
    ``(4)(A) In transmitting such listings for an element of the 
intelligence community, the head of such element may delete the 
information described in subparagraph (A) or (C) of paragraph (2) or in 
subparagraph (A) or (C) of paragraph (3) if the head of such element 
certifies in writing to the Secretary of State that the publication of 
such information could adversely affect United States intelligence 
sources or methods.
    ``(B) Any information not provided to the Secretary of State 
pursuant to the authority in subparagraph (A) shall be transmitted to 
the Director of National Intelligence who shall keep a record of such 
information.
    ``(C) In this paragraph, the term `intelligence community' has the 
meaning given that term in section 3(4) of the National Security Act of 
1947 (50 U.S.C. 401a(4)).''.

SEC. 351. EXTENSION OF NATIONAL COMMISSION FOR THE REVIEW OF THE 
              RESEARCH AND DEVELOPMENT PROGRAMS OF THE UNITED STATES 
              INTELLIGENCE COMMUNITY.

    (a) Extension.--
            (1) In general.--Subsection (a) of section 1007 of the 
        Intelligence Authorization Act for Fiscal Year 2003 (Public Law 
        107-306; 116 Stat. 2442) is amended by striking ``September 1, 
        2004'' and inserting ``December 31, 2009''.
            (2) Effective date.--Subject to paragraph (3), the 
        amendment made by paragraph (1) shall take effect as if 
        included in the enactment of such section 1007.
            (3) Commission membership.--
                    (A) In general.--The membership of the National 
                Commission for the Review of the Research and 
                Development Programs of the United States Intelligence 
                Community established under subsection (a) of section 
                1002 of such Act (Public Law 107-306; 116 Stat. 2438) 
                (referred to in this section as the ``Commission'') 
                shall be considered vacant and new members shall be 
                appointed in accordance with such section 1002, as 
                amended by subparagraph (B).
                    (B) Technical amendment.--Paragraph (1) of 
                subsection (b) of such section 1002 is amended by 
                striking ``The Deputy Director of Central Intelligence 
                for Community Management.'' and inserting ``The 
                Principal Deputy Director of National Intelligence.''.
    (b) Funding.--
            (1) In general.--Of the amounts authorized to be 
        appropriated by this Act for the Intelligence Community 
        Management Account, the Director of National Intelligence shall 
        make $2,000,000 available to the Commission to carry out title 
        X of the Intelligence Authorization Act for Fiscal Year 2003 
        (Public Law 107-306; 116 Stat. 2437).
            (2) Availability.--Amounts made available to the Commission 
        pursuant to paragraph (1) shall remain available until 
        expended.

SEC. 352. CLARIFYING AMENDMENTS RELATING TO SECTION 105 OF THE 
              INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2004.

    Section 105(b) of the Intelligence Authorization Act for Fiscal 
Year 2004 (Public Law 108-177; 117 Stat. 2603; 31 U.S.C. 311 note) is 
amended--
            (1) by striking ``Director of Central Intelligence'' and 
        inserting ``Director of National Intelligence''; and
            (2) by inserting ``or in section 313 of such title,'' after 
        ``subsection (a)),''.

  TITLE IV--MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY

      Subtitle A--Office of the Director of National Intelligence

SEC. 401. ACCOUNTABILITY REVIEWS BY THE DIRECTOR OF NATIONAL 
              INTELLIGENCE.

    (a) Responsibility of the Director of National Intelligence.--
Subsection (b) of section 102 of the National Security Act of 1947 (50 
U.S.C. 403) is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3)--
                    (A) by striking ``2004,'' and inserting ``2004 
                (Public Law 108-458; 50 U.S.C. 403 note),''; and
                    (B) by striking the period at the end and inserting 
                a semicolon and ``and''; and
            (3) by adding after paragraph (3), the following new 
        paragraph:
            ``(4) conduct accountability reviews of elements of the 
        intelligence community and the personnel of such elements, if 
        appropriate.''.
    (b) Tasking and Other Authorities.--Subsection (f) of section 102A 
of such Act (50 U.S.C. 403-1) is amended--
            (1) by redesignating paragraphs (7) and (8), as paragraphs 
        (8) and (9), respectively; and
            (2) by inserting after paragraph (6), the following new 
        paragraph:
    ``(7)(A) The Director of National Intelligence shall, if the 
Director determines it is necessary, or may, if requested by a 
congressional intelligence committee, conduct an accountability review 
of an element of the intelligence community or the personnel of such 
element in relation to a failure or deficiency within the intelligence 
community.
    ``(B) The Director of National Intelligence, in consultation with 
the Attorney General, shall establish guidelines and procedures for 
conducting an accountability review under subparagraph (A).
    ``(C)(i) The Director of National Intelligence shall provide the 
findings of an accountability review conducted under subparagraph (A) 
and the Director's recommendations for corrective or punitive action, 
if any, to the head of the applicable element of the intelligence 
community. Such recommendations may include a recommendation for 
dismissal of personnel.
    ``(ii) If the head of such element does not implement a 
recommendation made by the Director under clause (i), the head of such 
element shall submit to the congressional intelligence committees a 
notice of the dete