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                                                       Calendar No. 275
109th Congress                                                   Report
                                 SENATE
 1st Session                                                    109-173

======================================================================
 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2006

                                _______
                                

                October 27, 2005.--Ordered to be printed

                                _______
                                

    Mr. Warner, from the Committee on Armed Services, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1803]

    The Committee on Armed Services, to which was referred the 
bill (S. 1803) to authorize appropriations for fiscal year 2006 
for intelligence and intelligence-related activities of the 
United States Government, the Community Management Account of 
the Director of Central Intelligence, and the Central 
Intelligence Agency Retirement and Disability System, and for 
other purposes, having considered the same, reports favorably 
thereon with amendments and recommends that the bill, as 
amended, do pass.

                          PURPOSE OF THE BILL

    S. 1803 would authorize appropriations and other matters 
for fiscal year 2006 for intelligence activities of the United 
States, including certain Department of Defense intelligence-
related activities within the jurisdiction of the Committee on 
Armed Services.
    The Senate Select Committee on Intelligence reported the 
bill on September 29, 2005, and it was referred to the 
Committee on Armed Services on September 30, 2005, in 
accordance with section 3(b) of Senate Resolution 400, 94th 
Congress, as amended by S. Res. 445, 108th Congress, for a 
period not to exceed 10 days of session. The referral was later 
extended for an additional five days of session in accordance 
with S. Res. 400, as amended.

                     SCOPE OF THE COMMITTEE REVIEW

    The committee has carefully reviewed the Intelligence 
Authorization Act for Fiscal Year 2006 and the Senate report 
accompanying S. 1803 (S. Rept. 109-142). The total amount 
within the jurisdiction of the Committee on Armed Services 
recommended for the National Intelligence Program will be 
incorporated into the budget tables pending the passage of the 
National Defense Authorization Act for Fiscal Year 2006.
    The following explains the committee's proposed amendments 
to the bill, as reported by the Senate Select Committee on 
Intelligence, as well as the committee's clarification to the 
report issued by the Senate Select Committee on Intelligence.

Classified and sensitive annex to the committee report

    The committee has prepared a classified annex to this 
report that describes other recommendations and concerns that 
are classified and sensitive in nature.

Pilot program on disclosure of records under the Privacy Act relating 
        to certain intelligence activities

    Section 307 of S. 1803 would establish a four-year pilot 
program to provide all elements of the intelligence community 
with access to certain Privacy Act records maintained by the 
Department of Defense or other elements of the intelligence 
community, or departments or agencies of the Federal Government 
containing elements of the Intelligence Community. The 
committee recommends an amendment that would cut the length of 
the pilot program to two years.

Authority of the Director of National Intelligence to manage access to 
        human intelligence information

    Section 403 of S. 1803 would authorize the Director of 
National Intelligence to have access to all information 
concerning the human intelligence operations of any element of 
the Intelligence Community. It would further authorize the 
Director to ensure maximum access to such information, and to 
set up a mechanism for appropriate Intelligence Community 
personnel to gain access. The committee understands that this 
provision is intended to cover the national intelligence as 
opposed to tactical battlefield intelligence, and is not 
intended to authorize the Director to task commanders in the 
field or to avoid the military chain of command in seeking 
access to human intelligence at the tactical level.
    The committee agrees with the need for the Director to 
manage such access, but urges the conferees to make it clear 
that the intent of the provision is for the Director to manage 
access to human intelligence that contributes to national 
intelligence products, not for managing access to human 
intelligence information supporting tactical military 
operations.

Inspector General of the Intelligence Community

    Section 408 of S. 1803 would authorize an Inspector General 
of the Intelligence Community. This provision would replace the 
Inspector General of the Office of the Director of National 
Intelligence as authorized by section 1078 of the Intelligence 
Reform and Terrorism Prevention Act of 2004 (Public Law 108-
458)with an Inspector General of the Intelligence Community. 
Enactment of section 408 would insert the Director of National 
Intelligence and the proposed Inspector General of the 
Intelligence Community into the management of all elements of 
the Intelligence Community, and the departments and agencies of 
which they are a part, in a way that would be contrary to the 
careful balance struck by Congress in enacting the Intelligence 
Reform and Terrorism Prevention Act of 2004. Section 1078 
states that the Act is to be implemented in a manner that 
respects and does not abrogate the statutory responsibilities 
of the heads of the departments of the United States 
Government. In particular, the Act left undisturbed the 
functions and responsibilities of the Inspector General of the 
Department of Defense and those of the military departments.
    The committee recommends several amendments that would: (1) 
strike language giving the proposed Inspector General the final 
decision in any situation in which that official and another 
Inspector General may have jurisdiction over a particular 
matter; (2) insert language exempting Inspectors General within 
the Department of Defense from the proposed Inspector General's 
authority to conduct a separate investigation if that official 
deems one done by another Inspector General to be deficient; 
and (3) strike language requiring all other Intelligence 
Community Inspectors General to comply fully with any request 
from the proposed Inspector General.
    The committee amendment would establish an appropriate 
balance between the Department of Defense Inspector General and 
the Inspector General of the Intelligence Community by deleting 
provisions that would allow the proposed Inspector General to 
intrude in the management of the Department.
    This amendment would ensure compliance with the statutory 
requirement that the Secretary of Defense has authority, 
direction, and control over all activities of the Department of 
Defense as required by section 113 of title 10, United States 
Code.

Modification of exclusion of military officer serving as Associate 
        Director of the Central Intelligence Agency for Military 
        Support from officer strength and distribution-in-grade 
        limitations

    Section 426 of S. 1803 would authorize the exclusion of the 
military officer serving as Associate Director of the Central 
Intelligence Agency for Military Support from officer strength 
and distribution-in-grade limitations. The committee recommends 
an amendment striking this provision. This issue, which is 
within the jurisdiction of the committee, will be addressed in 
S. 1042, the National Defense Authorization Act for Fiscal Year 
2006.

Protection of operational files of the Defense Intelligence Agency

    Section 434 of S. 1803 would authorize the protection of 
certain operational files of the Defense Intelligence Agency 
from disclosure under the Freedom of Information Act (5 U.S.C. 
552). This issue is also addressed in S. 1042, the National 
Defense Authorization Act for Fiscal Year 2006. The committee 
recommends a provision that would strike the existing language 
and insert the text of section 922 of S. 1042.

Confirmation of appointment of heads of certain components of the 
        intelligence community

    Section 436 of S. 1803 would require that the Directors of 
the National Security Agency (NSA), the National Geospatial-
Intelligence Agency (NGA), and the National Reconnaissance 
Office (NRO) be appointed by the President with the advice and 
consent of the Senate. Currently, the Secretary designates the 
NSA Director, subject to the approval of the President; the 
President appoints the NGA Director; and the Secretary appoints 
the NRO Director. Pursuant to section 1014(b) of the 
Intelligence Reform and Terrorism Prevention Act of 2004, the 
Secretary must obtain the concurrence of the Director of 
National Intelligence before appointing an NRO Director or 
recommending that the President approve the designation of an 
NSA Director or appoint an NGA Director. None of these 
appointments currently requires confirmation by the Senate 
unless a military officer is promoted or transferred into a 
three-star position.
    The committee recommends an amendment to section 436 
thatwould clarify that the three positions in question could be filled 
by serving military officers.

Sense of Congress on funding of the COBRA JUDY Replacement Program

    S. 1803 is silent on the subject of the COBRA JUDY 
Replacement Program.
    The committee believes that the COBRA JUDY Replacement 
Program is important for ensuring our nation's ability to 
acquire necessary intelligence on foreign ballistic missile 
programs and their capabilities. Therefore, the committee 
recommends a new provision (section 437) that would express the 
sense of the Senate that it strongly supports development and 
integration of this sophisticated solid-state phased array 
radar technology and ship as a prudent investment in 
intelligence collection that monitors foreign threats and 
supports the acquisition of our ballistic missile defensive 
systems. The COBRA JUDY Replacement Program will replace the 
USNS Observation Island, which is due to leave service in 2012, 
and will satisfy vital intelligence requirements necessary for 
the acquisition of defensive systems designed to defend the 
nation from ballistic missile attack. The committee further 
urges the continued funding in the future-years defense program 
of the COBRA JUDY Replacement Program by the Secretary and the 
Director of National Intelligence in order to support national 
defense requirements.

                            COMMITTEE ACTION

    In accordance with the Legislative Reorganization Act of 
1946, as amended by the Legislative Reorganization Act of 1970, 
there is set forth below the committee vote to report the 
Intelligence Authorization Act for Fiscal Year 2006.
    Vote: Adopted by a rollcall vote of 16-0.

                              FISCAL DATA

    The committee will publish in the Congressional Record 
information on 5-year cost projections when such information is 
received from the Congressional Budget Office.

                           REGULATORY IMPACT

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires that a report on the regulatory impact of a 
bill be included in the report on the bill. The committee finds 
that there is no regulatory impact in the cost of S. 1803, the 
Intelligence Authorization Act for Fiscal Year 2006.

                        CHANGES IN EXISTING LAW

    Pursuant to the provisions of paragraph 12 of rule XXVI of 
the Standing Rules of the Senate, the changes in existing law 
made by certain portions of the bill have not been shown in 
this section of the report because, in the opinion of the 
committee, it is necessary to dispense with showing such 
changes in order to expedite the business of the Senate and 
reduce the expenditure of funds.