H. Rept. 112-72 - 112th Congress (2011-2012)
May 03, 2011, As Reported by the Intelligence (Permanent) Committee

Report text available as:

Formatting necessary for an accurate reading of this legislative text may be shown by tags (e.g., <DELETED> or <BOLD>) or may be missing from this TXT display. For complete and accurate display of this text, see the PDF.




House Report 112-72 - INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2011




[House Report 112-72]
[From the U.S. Government Printing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     112-72

======================================================================



 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2011

                                _______
                                

  May 3, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Rogers of Michigan, from the Select Committee on Intelligence 
              (Permanent Select), submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 754]

      [Including cost estimate of the Congressional Budget Office]

    The Select Committee on Intelligence (Permanent Select), to 
whom was referred the bill (H.R. 754) to authorize 
appropriations for fiscal year 2011 for intelligence and 
intelligence-related activities of the United States 
Government, the Community Management Account, and the Central 
Intelligence Agency Retirement and Disability System, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Intelligence 
Authorization Act for Fiscal Year 2011''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

Sec. 101. Authorization of appropriations.
Sec. 102. Classified Schedule of Authorizations.
Sec. 103. Intelligence Community Management Account.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

Sec. 301. Restriction on conduct of intelligence activities.
Sec. 302. Increase in employee compensation and benefits authorized by 
law.
Sec. 303. Non-reimbursable detail of other personnel.

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

      Subtitle A--Office of the Director of National Intelligence

Sec. 401. Schedule and requirements for the National 
Counterintelligence Strategy.
Sec. 402. Insider threat detection program.

                       Subtitle B--Other Elements

Sec. 411. Defense Intelligence Agency counterintelligence and 
expenditures.
Sec. 412. Accounts and transfer authority for appropriations and other 
amounts for the intelligence elements of the Department of Defense.

SEC. 2. DEFINITIONS.

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

              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

  Funds are hereby authorized to be appropriated for fiscal year 2011 
for the conduct of the intelligence and intelligence-related activities 
of the following elements of the United States Government:
          (1) The Office of the Director of National Intelligence.
          (2) The Central Intelligence Agency.
          (3) The Department of Defense.
          (4) The Defense Intelligence Agency.
          (5) The National Security Agency.
          (6) The Department of the Army, the Department of the Navy, 
        and the Department of the Air Force.
          (7) The Coast Guard.
          (8) The Department of State.
          (9) The Department of the Treasury.
          (10) The Department of Energy.
          (11) The Department of Justice.
          (12) The Federal Bureau of Investigation.
          (13) The Drug Enforcement Administration.
          (14) The National Reconnaissance Office.
          (15) The National Geospatial-Intelligence Agency.
          (16) The Department of Homeland Security.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

  (a) Specifications of Amounts and Personnel Levels.--The amounts 
authorized to be appropriated under section 101 and the authorized 
personnel levels (expressed as full-time equivalent positions) as of 
September 30, 2011, for the conduct of the intelligence activities of 
the elements listed in paragraphs (1) through (16) of section 101, are 
those specified in the classified Schedule of Authorizations prepared 
to accompany the bill H.R. 754 of the One Hundred Twelfth Congress.
  (b) Availability of Classified Schedule of Authorizations.--The 
classified Schedule of Authorizations referred to in subsection (a) 
shall be made available to the Committee on Appropriations of the 
Senate, the Committee on Appropriations of the House of 
Representatives, and to the President. The President shall provide for 
suitable distribution of the Schedule, or of appropriate portions of 
the Schedule, within the executive branch.

SEC. 103. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

  (a) Authorization of Appropriations.--There is authorized to be 
appropriated for the Intelligence Community Management Account of the 
Director of National Intelligence for fiscal year 2011 the sum of 
$660,732,000. Within such amount, funds identified in the classified 
Schedule of Authorizations referred to in section 102(a) for advanced 
research and development shall remain available until September 30, 
2012.
  (b) Authorized Personnel Levels.--The elements within the 
Intelligence Community Management Account of the Director of National 
Intelligence are authorized 787 full-time equivalent personnel as of 
September 30, 2011. Personnel serving in such elements may be permanent 
employees of the Office of the Director of National Intelligence or 
personnel detailed from other elements of the United States Government.
  (c) Classified Authorizations.--
          (1) Authorization of appropriations.--In addition to amounts 
        authorized to be appropriated for the Intelligence Community 
        Management Account by subsection (a), there are authorized to 
        be appropriated for the Community Management Account for fiscal 
        year 2011 such additional amounts as are specified in the 
        classified Schedule of Authorizations referred to in section 
        102(a). Such additional amounts made available for advanced 
        research and development shall remain available until September 
        30, 2012.
          (2) Authorization of personnel.--In addition to the personnel 
        authorized by subsection (b) for elements of the Intelligence 
        Community Management Account as of September 30, 2011, there 
        are authorized such full-time equivalent personnel for the 
        Community Management Account as of that date as are specified 
        in the classified Schedule of Authorizations referred to in 
        section 102(a).

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated for the Central Intelligence 
Agency Retirement and Disability Fund for fiscal year 2011 the sum of 
$292,000,000.

           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS

SEC. 301. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

  The authorization of appropriations by this Act shall not be deemed 
to constitute authority for the conduct of any intelligence activity 
which is not otherwise authorized by the Constitution or the laws of 
the United States.

SEC. 302. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY 
                    LAW.

  Appropriations authorized by this Act for salary, pay, retirement, 
and other benefits for Federal employees may be increased by such 
additional or supplemental amounts as may be necessary for increases in 
such compensation or benefits authorized by law.

SEC. 303. NON-REIMBURSABLE DETAIL OF OTHER PERSONNEL.

  (a) In General.--Section 113A of the National Security Act of 1947 
(50 U.S.C. 404h-1) is amended to read as follows:
              ``non-reimbursable detail of other personnel
  ``Sec. 113A. An officer or employee of the United States or member of 
the Armed Forces may be detailed to the staff of an element of the 
intelligence community funded through the National Intelligence Program 
from another element of the intelligence community or from another 
element of the United States Government on a non-reimbursable basis, as 
jointly agreed to by the heads of the receiving and detailing elements, 
for a period not to exceed two years. This section does not limit any 
other source of authority for reimbursable or non-reimbursable 
details.''.
  (b) Table of Contents Amendment.--The table of contents in the first 
section of such Act is amended by striking the item relating to section 
113A and inserting the following:

``Sec. 113A. Non-reimbursable detail of other personnel.''.

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

      Subtitle A--Office of the Director of National Intelligence

SEC. 401. SCHEDULE AND REQUIREMENTS FOR THE NATIONAL 
                    COUNTERINTELLIGENCE STRATEGY.

  Section 904(d)(2) of the Counterintelligence Enhancement Act of 2002 
(50 U.S.C. 402c(d)(2)) is amended--
          (1) by striking ``Subject'' and inserting the following:
                  ``(A) Requirement to produce.--Subject'';
          (2) by striking ``on an annual basis''; and
          (3) by adding at the end the following:
                  ``(B) Revision and requirement.--The National 
                Counterintelligence Strategy shall be revised or 
                updated at least once every three years and shall be 
                aligned with the strategy and policies of the Director 
                of National Intelligence.''.

SEC. 402. INSIDER THREAT DETECTION PROGRAM.

  (a) Initial Operating Capability.--Not later than October 1, 2012, 
the Director of National Intelligence shall establish an initial 
operating capability for an effective automated insider threat 
detection program for the information resources in each element of the 
intelligence community in order to detect unauthorized access to, or 
use or transmission of, classified intelligence.
  (b) Full Operating Capability.--Not later than October 1, 2013, the 
Director of National Intelligence shall ensure the program described in 
subsection (a) has reached full operating capability.
  (c) Report.--Not later than December 1, 2011, the Director of 
National Intelligence shall submit to the congressional intelligence 
committees a report on the resources required to implement the insider 
threat detection program referred to in subsection (a) and any other 
issues related to such implementation the Director considers 
appropriate to include in the report.
  (d) Information Resources Defined.--In this section, the term 
``information resources'' means networks, systems, workstations, 
servers, routers, applications, databases, websites, online 
collaboration environments, and any other information resources in an 
element of the intelligence community designated by the Director of 
National Intelligence.

                       Subtitle B--Other Elements

SEC. 411. DEFENSE INTELLIGENCE AGENCY COUNTERINTELLIGENCE AND 
                    EXPENDITURES.

  Section 105 of the National Security Act of 1947 (50 U.S.C. 403-5) is 
amended--
          (1) in subsection (b)(5), by inserting ``and 
        counterintelligence'' after ``human intelligence'';
          (2) by redesignating subsection (c) as subsection (d); and
          (3) by inserting after subsection (b) the following:
  ``(c) Expenditure of Funds by the Defense Intelligence Agency.--(1) 
Subject to paragraphs (2) and (3), the Director of the Defense 
Intelligence Agency may expend amounts made available to the Director 
for human intelligence and counterintelligence activities for objects 
of a confidential, extraordinary, or emergency nature, without regard 
to the provisions of law or regulation relating to the expenditure of 
Government funds.
  ``(2) The Director of the Defense Intelligence Agency may not expend 
more than five percent of the amounts made available to the Director 
for human intelligence and counterintelligence activities for a fiscal 
year for objects of a confidential, extraordinary, or emergency nature 
in accordance with paragraph (1) during such fiscal year unless--
          ``(A) the Director notifies the congressional intelligence 
        committees of the intent to expend the amounts; and
          ``(B) 30 days have elapsed from the date on which the 
        Director notifies the congressional intelligence committees in 
        accordance with subparagraph (A).
  ``(3) For each expenditure referred to in paragraph (1), the Director 
shall certify that such expenditure was made for an object of a 
confidential, extraordinary, or emergency nature.
  ``(4) Not later than December 31 of each year, the Director of the 
Defense Intelligence Agency shall submit to the congressional 
intelligence committees a report on any expenditures made during the 
preceding fiscal year in accordance with paragraph (1).''.

SEC. 412. ACCOUNTS AND TRANSFER AUTHORITY FOR APPROPRIATIONS AND OTHER 
                    AMOUNTS FOR THE INTELLIGENCE ELEMENTS OF THE 
                    DEPARTMENT OF DEFENSE.

  (a) In General.--Chapter 21 of title 10, United States Code, is 
amended by inserting after section 428 the following new section:

``Sec. 429. Appropriations for defense intelligence elements: accounts 
                    for transfer; transfer

  ``(a) Accounts for Appropriations for Defense Intelligence 
Elements.--The Secretary of the Treasury shall establish one or more 
accounts for the receipt of appropriations and other amounts 
transferred pursuant to subsection (b).
  ``(b) Transfers Authorized.--(1) There may be transferred to an 
account established pursuant to subsection (a) the following:
          ``(A) Appropriations transferred by the Secretary of Defense 
        from appropriations of the Department of Defense available for 
        intelligence, intelligence-related activities, and 
        intelligence-related communications.
          ``(B) Appropriations and other amounts transferred by the 
        Director of National Intelligence from appropriations and other 
        amounts available for the defense intelligence elements.
          ``(C) Amounts and reimbursements in connection with 
        transactions authorized by law between the defense intelligence 
        elements and other entities.
  ``(2) The transfer authority of the Secretary of Defense under 
paragraph (1)(A) is in addition to any other transfer authority 
available to the Secretary by law.
  ``(c) Availability of Appropriations and Amounts Transferred.--(1) 
Appropriations transferred pursuant to subsection (b) shall remain 
available for the same time period, and shall be available for the same 
purposes, as the appropriations from which transferred.
  ``(2) Appropriation balances in an account established pursuant to 
subsection (a) may be transferred back to the account or accounts from 
which such balances originated as an appropriation refund.
  ``(d) Defense Intelligence Elements Defined.--In this section, the 
term `defense intelligence elements' means the agencies, offices, and 
elements of the Department of Defense that are included within the 
elements of the intelligence community specified in or designated under 
section 3(4) of the National Security Act of 1947 (50 U.S.C. 
401a(4)).''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter I of chapter 21 of such title is amended by inserting after 
the item relating to section 428 the following new item:

``429. Appropriations for defense intelligence elements: accounts for 
transfer; transfer.''.

                                Purpose

    The purpose of H.R. 754 is to authorize the intelligence 
and intelligence-related activities of the United States 
Government for Fiscal Year 2011 in order to enhance the 
national security of the United States, to support and assist 
the armed forces of the United States, and to support the 
President in the execution of the foreign policy of the United 
States. The bill also clarifies certain Intelligence Community 
authorities.

                 Classified Annex and Committee Intent

    The classified annex to this report includes the classified 
Schedule of Authorizations and its associated explanatory 
language. The Committee views the classified annex as an 
integral part of this legislation. The classified annex 
contains a thorough discussion of the issues considered by the 
Committee underlying the funding authorizations found in the 
classified Schedule of Authorizations. The Committee intends 
that all intelligence programs discussed in the classified 
annex to this report be conducted in accordance with the 
guidance and limitations set forth as associated language 
therein. The classified Schedule of Authorizations is 
incorporated directly into this legislation by virtue of 
section 102 of the bill. The classified annex is available for 
review by all Members of the House of Representatives, subject 
to the requirements of clause 13 of rule XXIII of the Rules of 
the House of Representatives, and rule 14 of the Rules of 
Procedure for the House Permanent Select Committee on 
Intelligence.

                       Scope of Committee Review

    The bill authorizes U.S. intelligence and intelligence-
related activities within the jurisdiction of the Committee, 
including the National Intelligence Program (NIP), and the 
Military Intelligence Program (MIP). The NIP consists of all 
activities of the Office of the Director of National 
Intelligence, as well as those national foreign intelligence, 
intelligence-related, and/or counterintelligence activities 
conducted by: (1) the Central Intelligence Agency; (2) the 
Department of Defense; (3) the Defense Intelligence Agency; (4) 
the National Security Agency; (5) the National Reconnaissance 
Office; (6) the National Geospatial-Intelligence Agency; (7) 
the Departments of the Army, Navy, and Air Force; (8) the 
Department of State; (9) the Department of the Treasury; (10) 
the Department of Energy; (11) the Department of Justice; (12) 
the Federal Bureau of Investigation; (13) the U.S. Coast Guard; 
(14) the Department of Homeland Security; and (15) the Drug 
Enforcement Administration. The Committee has exclusive 
legislative, authorizing and oversight jurisdiction of these 
programs.

                     Committee Statement and Views

    The U.S. Intelligence Community plays a vital role in the 
war on terrorism and securing the country from the many threats 
we face. Later this year, we will mark the 10th anniversary of 
the attacks of September 11, 2001, and the hard work of our 
intelligence professionals is one of the primary reasons there 
has not been a successful major attack on the homeland since 9/
11 despite numerous failed and disrupted plots and al Qaeda's 
unrelenting efforts to attack us. Ten years later, America has 
made tremendous progress against certain threats and yet we 
have become increasingly aware of newly evolving threats. While 
we have made significant progress against al-Qaeda, the threat 
remains and continues to evolve. Today we also face an 
increasing threat of smaller scale attacks from self-
radicalized jihadists such as Khalid Aldawsari, Farouk 
Abdulmutallab and Maj. Nidal Hassan. We also are faced with 
even heavier demands on national security resources heightened 
by instability in the Middle East.
    As the role of technology continues to grow, the cyber 
threat from state and non-state actors grows at an even faster 
rate. This threat is complex and real and growing by the day. 
Incidents like the unauthorized disclosure of classified 
information by Wikileaks also show us that despite the 
tremendous progress made since 9/11 in information sharing, we 
still need to have systems in place that can detect 
unauthorized activities by those who would do our country harm 
from the inside.
    The foregoing are just a few examples of the increasing and 
evolving threats we face as a nation and the importance of an 
effective, efficient Intelligence Community. It is this 
Committee's primary function to conduct oversight of and 
provide the tools needed to the Intelligence Community so that 
they may do their job in rooting out these threats and 
providing real time information to decisionmakers. The 
challenges for the Committee are particularly heightened at a 
time when careful scrutiny must be given to every element of 
federal spending.
    The Committee's work is given its greatest force in each 
year's annual Intelligence Authorization bill. However, 
Congress and the President have not enacted a complete bill--
including detailed spending guidance for our intelligence 
programs in a classified annex--in six years. The Intelligence 
Authorization Act for Fiscal Year 2010 was not enacted until 
after that Fiscal Year was over and did not contain a 
classified annex. Instead, for the past several years language 
in appropriations bills has ``deemed'' intelligence funding to 
be authorized despite several express requirements that 
intelligence funding be explicitly authorized by legislation. 
This band-aid language was not the careful oversight that was 
intended and bypasses the authorization committees.
    The intelligence authorization bill authorizes and sets 
specific funding levels for all U.S. intelligence and 
intelligence-related activities, spanning 16 separate agencies. 
It provides authorization for critical national security 
functions, including clandestine operatives and their 
activities worldwide, tactical intelligence support to combat 
units in Afghanistan and Iraq, electronic surveillance and 
cyber defense activities, global monitoring of foreign 
militaries, weapons tests, and arms control treaties, real-time 
analysis and reporting on political and economic events, such 
as the tsunami in Japan and events in Egypt, and research and 
technology to maintain the country's technological edge.
    It is critically important that the Fiscal Year 2011 bill 
moves forward, and does so quickly. For too many years we have 
simply postponed the intelligence authorization bill to the 
next fiscal year only to have it bogged down in political 
infighting and turf battles. While passing an FY 2011 bill is 
critical to restoring this Committee's relevance in the 
community, it is more critical that the bill is passed to make 
sure our intelligence agencies have the resources and the 
capabilities they need for their important mission.
    The comprehensive, classified annex to this bill provides 
detailed guidance on intelligence spending and will provide 
greater accountability for the increased intelligence spending 
that has gone on since 9/11. In addition, the bill takes 
important steps to help the Intelligence Community face the 
same financial standards as the rest of the government for 
accounting, as well as to analyze whether responsible savings 
can be accomplished in some areas without endangering national 
security.
    The expertise of the intelligence authorization committees 
will be vital to ensuring that we carefully choose the budget 
efficiencies required to maintain a relatively flat budget 
profile in the coming years without endangering our key 
intelligence capabilities. Returning to the regular order of 
passing an annual intelligence authorization bill is vital to 
achieving this.
    It has been and remains a priority of the Committee to 
rebuild a strong bipartisan consensus around intelligence 
matters. In January, the Chairman asked for the help of every 
member of the Committee to get this job done. With this 
cooperative premise, the Committee began a process intended to 
complete an FY 2011 bill as quickly as possible in a bipartisan 
manner.
    In light of this commitment and the numerous bipartisan 
sessions held to review and consider this bill, it is 
particularly disappointing that the Minority Members now claim 
that the bill was sprung upon them the morning of the markup 
without a chance to read it. In addition to the countless staff 
hours logged in budget briefings with the Administration during 
the 111th Congress, the Committee under the leadership of 
Chairman Reyes already had held more than ten full committee 
events on the FY 2011 budget request, organized and conducted 
by the current minority when they were in the majority.
    Recognizing that there are Members who are new to the 
Committee in the 112th Congress, the Chairman scheduled at 
least five opportunities for Committee Members to be briefed by 
staff in detail on the proposed FY 2011 bill and to answer 
questions about the Administration's request for FY 2011. 
Minority members participated in these sessions and were fully 
engaged on the issues, as were minority Committee staff. The 
process has been open, forthright, and included input from 
members on both sides of the aisle.
    The current minority failed to draft or even consider an 
intelligence authorization bill for FY 2011 prior to the start 
of FY 2011, presumably because it could not enact its FY 2010 
bill (but not the classified schedule of budget authorizations) 
until after the end of FY 2010. The minority thus complains 
about a situation that is the result of their own inaction. The 
minority also asserts that passing a bill six months into the 
fiscal year ``will have little impact,'' when they committed 
countless hours of the Committee's time and resources to the FY 
2010 bill up to and after the end of the previous fiscal year. 
The minority's criticisms thus smack of political gamesmanship 
and mere rhetoric, especially since their complaints are most 
appropriately directed at themselves.
    Nonetheless, we remain hopeful that the bill can proceed in 
a bipartisan manner and look forward to immediately forging 
ahead on the FY 2012 intelligence authorization bill in the 
same manner.

               Committee Consideration and Rollcall Votes

    On March 10, 2011, the Committee met in open and closed 
session and ordered the bill H.R. 754 favorably reported, as 
amended.

                              OPEN SESSION

    In open session, the Committee considered the text of the 
bill H.R. 754.
    Chairman Rogers offered an amendment in the nature of a 
substitute to H.R. 754. The contents of the amendment in the 
nature of a substitute are described in the Section-by-Section 
analysis and the Explanation of Amendment. No amendments were 
offered to the amendment in the nature of a substitute, and the 
amendment in the nature of a substitute was agreed to by voice 
vote.

                             CLOSED SESSION

    Mr. Ruppersberger then moved to close the meeting because 
national security would be endangered if the matters to be 
considered were disclosed. The motion was agreed to by a record 
vote of 13 ayes to 0 noes:
          Voting aye: Mr. Rogers (Chairman), Mr. Thornberry, 
        Mrs. Myrick, Mr. Miller, Mr. Conaway, Mr. LoBiondo, Mr. 
        Nunes, Mr. Ruppersberger, Mr. Thompson, Ms. Schakowsky, 
        Mr. Langevin, Mr. Gutierrez, Mr. Chandler.
          Voting no: none.
    After debate, no amendments were offered to the classified 
Schedule of Authorizations. The Committee then adopted the 
classified Schedule of Authorizations by voice vote.

                              OPEN SESSION

    By unanimous consent, the Committee returned to open 
session.
    The Committee then adopted a motion by the Chairman to 
favorably report the bill H.R. 754 to the House, as amended. 
The motion was agreed to by a record vote of 7 ayes to 6 noes, 
with 1 member voting present:
          Voting aye: Mr. Rogers (Chairman), Mr. Thornberry, 
        Mr. Conaway, Mr. LoBiondo, Mr. Nunes, Mr. Westmoreland, 
        Mrs. Bachmann.
          Voting no: Mr. Ruppersberger, Ms. Schakowsky, Mr. 
        Langevin, Mr. Schiff, Mr. Boren, Mr. Chandler.
          Voting present: Mr. Thompson.

      Section-by-Section Analysis and Explanation of the Amendment


Section 1--Short title and table of contents

    Section 1 contains the short title for the bill and the 
Table of Contents.

              TITLE I--BUDGET AND PERSONNEL AUTHORIZATIONS


Section 101--Authorization of appropriations

    Section 101 of the bill authorizes appropriations for the 
intelligence and intelligence-related activities of these 
elements of the United States Government: The Office of the 
Director of National Intelligence (including the National 
Counterterrorism Center), the Central Intelligence Agency, the 
Department of Defense, the Defense Intelligence Agency, the 
National Security Agency, the Departments of the Army, Navy and 
Air Force, the Coast Guard, the Department of State, the 
Department of the Treasury, the Department of Energy, the 
Department of Justice, the Federal Bureau of Investigation, the 
Drug Enforcement Administration, the National Reconnaissance 
Office, the National Geospatial Intelligence Agency, and the 
Department of Homeland Security.

Section 102--Classified Schedule of Authorizations

    Section 102 provides that the amounts and personnel 
ceilings authorized under Section 101 shall be specified in the 
accompanying classified Schedule of Authorizations, which shall 
be made available to the Committee on Appropriations and to the 
President.

Section 103--Intelligence Community Management Account

    Section 103 authorizes appropriations for the Intelligence 
Community Management Account (ICMA) of the DNI and sets the 
authorized full-time equivalent personnel levels for the 
elements within the ICMA for Fiscal Year 2011.
    Section 103 also authorizes additional classified 
appropriations and personnel levels for the Community 
Management Account as specified in the classified Schedule of 
Authorizations and permits the funding for advanced research 
and development to remain available through September 30, 2012.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM


Section 201--Authorization of appropriations

    Section 201 authorizes $292,000,000 for the Central 
Intelligence Agency Retirement and Disability System (CIARDS).

           TITLE III--GENERAL INTELLIGENCE COMMUNITY MATTERS


Section 301--Restriction on conduct of intelligence activities

    Section 301 provides that the authorization of funds in 
this act does not constitute authority for the conduct of any 
intelligence activity not otherwise authorized by the 
Constitution or laws of the United States.

Section 302--Increase in employee compensation and benefits authorized 
        by law

    Section 302 provides that the authorized amounts may be 
increased by such additional or supplemental amounts as may be 
necessary for increases in compensation or benefits authorized 
by law.

Section 303--Non-reimbursable detail of other personnel

    Section 303 revises Section 113A of the National Security 
Act of 1947 (which was amended by Section 302 of the 
Intelligence Authorization Act of Fiscal Year 2010, Pub. L. No. 
111-259) to clarify that it only applies to non-reimbursable 
details and that it does not limit any other source of 
authority for reimbursable or non-reimbursable details. Section 
113A was intended to extend the period of time an employee 
could be detailed on a non-reimbursable detail from one year to 
two years. This section would clarify the language in 113A, 
which may have been interpreted to constrain other statutory 
provisions that authorize reimbursable or non-reimbursable 
details longer than two years.

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


Section 401--Schedule and requirements for the National 
        Counterintelligence Strategy

    Section 401 amends the Counterintelligence Enhancement Act 
of 2002 to require the National Counterintelligence Strategy be 
aligned with the policies and strategy of the DNI. It also 
requires the Strategy to be revised or updated once every three 
years instead of annually.

Section 402--Insider threat detection program

    Section 402 requires the DNI to establish an initial 
operating capability for an effective automated insider threat 
detection program for the IC in order to detect unauthorized 
access to or use or transmission of classified intelligence by 
October 1, 2012 and a fully operational program by October 1, 
2013. It also requires a report from the DNI by December 1, 
2011 on the resources required to implement the program.

Section 411--Defense Intelligence Agency counterintelligence and 
        expenditures

    Section 411 amends Section 105 of the National Security Act 
of 1947, on the responsibilities of Intelligence Community 
elements in the Department of Defense, to clarify that the 
responsibilities of the DIA include counterintelligence as well 
as human intelligence activities.
    Section 411 also provides the Director of the Defense 
Intelligence Agency (DIA) with the authority to expend funds 
for objects of a confidential, extraordinary, or emergency 
nature. This authority is limited to no more than five percent 
of the amounts available to the Director of DIA for human 
intelligence and counterintelligence activities unless the 
Director notifies the congressional intelligence committees 
thirty days in advance. It also requires an annual report on 
expenditures made under this authority.

Section 412--Accounts and transfer authority for appropriations and 
        other amounts for the intelligence elements of the Department 
        of Defense

    Section 412 authorizes the Secretary of Defense to transfer 
defense appropriations into an account or accounts created for 
receipt of such funds. These accounts may receive transfers and 
reimbursement from transactions between the defense 
intelligence elements and other entities, and the Director of 
National Intelligence may also transfer funds into these 
accounts. Appropriations transferred pursuant to this section 
shall remain available for the same time period, and for the 
same purposes, as the appropriations from which transferred.
    This provision is intended to grant authority to the 
Secretary of Defense to transfer appropriations available for 
intelligence and intelligence-related activities (including 
those related to any communications-related activity conducted 
by an element of the intelligence community) to designated 
accounts to help the Intelligence Community reach and maintain 
an auditable status. This provision would ensure that all funds 
appropriated to agencies funded through the National 
Intelligence Program could be more readily accounted for and 
auditable.

                 Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee held a hearing on 
the classified budgetary issues raised by H.R. 754 on February 
17, 2011, in addition to multiple hearings held on the 
President's budget request in the 111th Congress. The bill, as 
reported by the Committee, reflects conclusions reached by the 
Committee in light of this oversight activity.

                General Performance Goals and Objectives

    In accordance with clause 3(c) of House rule XIII, the 
Committee's performance goals and objectives are reflected in 
the descriptive portions of this report.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. In compliance with this requirement, the Committee 
has received a letter from the Congressional Budget Office 
included herein.

                  Statement on Congressional Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee states that the bill as 
reported contains no congressional earmarks, limited tax 
benefits, or limited tariff benefits.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 754 from the Director of 
the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 1, 2011.
Hon. Mike Rogers,
Chairman, Permanent Select Committee on Intelligence,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 754, the 
Intelligence Authorization Act for Fiscal Year 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jason 
Wheelock.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 754--Intelligence Authorization Act for Fiscal Year 2011

    Summary: H.R. 754 would authorize appropriations for fiscal 
year 2011 for intelligence activities of the U.S. government, 
for the Intelligence Community Management Account (ICMA), and 
for the Central Intelligence Agency Retirement and Disability 
System (CIARDS).
    Since CBO does not provide estimates for classified 
programs, this estimate addresses only the unclassified 
portions of the bill. In addition, CBO cannot provide estimates 
for certain provisions in the unclassified portion of the bill 
because they concern classified intelligence programs. On that 
limited basis, and assuming appropriation of the authorized 
amounts, CBO estimates that spending under H.R. 754 would total 
$654 million from funding authorized for fiscal year 2011. That 
total would be $47 million lower than spending from the 
annualized amounts currently available for 2011.
    Pay-as-you-go procedures do not apply to this legislation 
because it would not affect direct spending or revenues.
    H.R. 754 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 754 is shown in the following table. 
The costs of this legislation fall within budget function 050 
(national defense).

----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year, in millions of dollars--
                                                ----------------------------------------------------------------
                                                   2011     2012     2013     2014     2015     2016   2011-2016
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATIONa

Intelligence Community Management Account
 Spending Under Current Law:
    Estimated Budget Authority.................      708        0        0        0        0        0       708
    Estimated Outlays..........................      460      163       57       14        7        0       701
Proposed Changes:
    Authorization Level........................      -47        0        0        0        0        0       -47
    Estimated Outlays..........................      -31      -11       -4       -1        0        0       -47
Spending Under H.R. 754:
    Authorization Level........................      661        0        0        0        0        0       661
    Estimated Outlays..........................      429      152       53       13        7        0       654
----------------------------------------------------------------------------------------------------------------
aUnder Public Law 112-6, Additional Continuing Appropriations Amendments, 2011, funding is provided through
  April 8, 2011, for the Intelligence Community Management Account. On an annualized basis, funding would total
  $708 million.

    Basis of estimate:

Spending subject to appropriation

    For this estimate CBO assumes that the legislation will be 
enacted in the next few months and the authorized amount will 
be appropriated shortly thereafter.
    Section 103 would authorize the appropriation of $661 
million for the ICMA, which provides the principal source of 
funding for the Office of the Director of National Intelligence 
and resources for coordinating programs, overseeing budgets, 
and managing the intelligence agencies. Under Public Law 112-6, 
Additional Continuing Appropriations Amendments, 2011, funding 
is provided for the ICMA through April 8, 2011. At the rate 
provided under that law, funding for the ICMA, on an annualized 
basis, would total $708 million in 2011. Since the amount that 
would be authorized by H.R. 754 is $47 million lower than that 
amount, CBO estimates that, assuming appropriation of the 
authorized amount, implementing this provision would result in 
spending over the 2011-2016 period totaling $654 million ($47 
million less than the annualized amounts currently available).
    Section 402 would require that not later than October 1, 
2012, the Director of National Intelligence establish in each 
element of the intelligence community an initial operating 
capability for an automated program that would detect the 
unauthorized access, use, or transmission of classified 
intelligence by members of the intelligence community. The 
provision would further require that the system be fully 
operable by October 1, 2013. CBO notes that the costs to 
achieve those goals in the time allotted by the bill might be 
significant; however, because of the classified nature of this 
program, CBO cannot provide an estimate of those costs.

Direct spending

    Section 201 would authorize the appropriation of $292 
million to the Central Intelligence Agency Retirement and 
Disability System. CIARDS is a retirement and disability system 
for certain employees of the Central Intelligence Agency, and 
the appropriation covers various unfunded liabilities of the 
system. The appropriation to CIARDS is considered mandatory and 
the authorization under this bill would be the same as the 
amount under the CBO baseline. Thus, this estimate does not 
ascribe any additional cost to that provision.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: H.R. 754 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimate: On March 31, 2011, CBO transmitted a 
cost estimate for the Intelligence Authorization Act for 2011, 
as ordered reported by the Senate Select Committee on 
Intelligence on March 15, 2011. The difference in the cost 
estimates reflect the difference in the amount authorized for 
2011 funding of the ICMA by the two bills. The Senate version 
would authorize $650 million, while H.R. 754 would authorize 
$661 million.
    Estimate prepared by: Federal Costs: Jason Wheelock; Impact 
on State, Local, and Tribal Governments: J'nell Blanco; Impact 
on the Private Sector: Elizabeth Bass.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                     NATIONAL SECURITY ACT OF 1947


                              short title

  That this Act may be cited as the ``National Security Act of 
1947''.

                            TABLE OF CONTENTS

Sec. 2. Declaration of policy.
     * * * * * * *
[Sec. 113A. Detail of other personnel.]
Sec. 113A. Non-reimbursable detail of other personnel.

           *       *       *       *       *       *       *


TITLE I--COORDINATION FOR NATIONAL SECURITY

           *       *       *       *       *       *       *


RESPONSIBILITIES OF THE SECRETARY OF DEFENSE PERTAINING TO THE NATIONAL 
                          INTELLIGENCE PROGRAM

  Sec. 105. (a) * * *
  (b) Responsibility for the Performance of Specific 
Functions.--Consistent with sections 102 and 102A of this Act, 
the Secretary of Defense shall ensure--
          (1) * * *

           *       *       *       *       *       *       *

          (5) through the Defense Intelligence Agency (except 
        as otherwise directed by the President or the National 
        Security Council), effective management of Department 
        of Defense human intelligence and counterintelligence 
        activities, including defense attaches; and

           *       *       *       *       *       *       *

  (c) Expenditure of Funds by the Defense Intelligence 
Agency.--(1) Subject to paragraphs (2) and (3), the Director of 
the Defense Intelligence Agency may expend amounts made 
available to the Director for human intelligence and 
counterintelligence activities for objects of a confidential, 
extraordinary, or emergency nature, without regard to the 
provisions of law or regulation relating to the expenditure of 
Government funds.
  (2) The Director of the Defense Intelligence Agency may not 
expend more than five percent of the amounts made available to 
the Director for human intelligence and counterintelligence 
activities for a fiscal year for objects of a confidential, 
extraordinary, or emergency nature in accordance with paragraph 
(1) during such fiscal year unless--
          (A) the Director notifies the congressional 
        intelligence committees of the intent to expend the 
        amounts; and
          (B) 30 days have elapsed from the date on which the 
        Director notifies the congressional intelligence 
        committees in accordance with subparagraph (A).
  (3) For each expenditure referred to in paragraph (1), the 
Director shall certify that such expenditure was made for an 
object of a confidential, extraordinary, or emergency nature.
  (4) Not later than December 31 of each year, the Director of 
the Defense Intelligence Agency shall submit to the 
congressional intelligence committees a report on any 
expenditures made during the preceding fiscal year in 
accordance with paragraph (1).
  [(c)] (d) Use of Elements of Department of Defense.--The 
Secretary of Defense, in carrying out the functions described 
in this section, may use such elements of the Department of 
Defense as may be appropriate for the execution of those 
functions, in addition to, or in lieu of, the elements 
identified in this section.

           *       *       *       *       *       *       *


                       [DETAIL OF OTHER PERSONNEL

  [Sec. 113A. Except as provided in section 904(g)(2) of the 
Counterintelligence Enhancement Act of 2002 (50 U.S.C. 
402c(g)(2)) and section 113 of this Act, and notwithstanding 
any other provision of law, an officer or employee of the 
United States or member of the Armed Forces may be detailed to 
the staff of an element of the intelligence community funded 
through the National Intelligence Program from another element 
of the intelligence community or from another element of the 
United States Government on a reimbursable or nonreimbursable 
basis, as jointly agreed to by the head of the receiving 
element and the head of the detailing element, for a period not 
to exceed 2 years.]

               NON-REIMBURSABLE DETAIL OF OTHER PERSONNEL

  Sec. 113A. An officer or employee of the United States or 
member of the Armed Forces may be detailed to the staff of an 
element of the intelligence community funded through the 
National Intelligence Program from another element of the 
intelligence community or from another element of the United 
States Government on a non-reimbursable basis, as jointly 
agreed to by the heads of the receiving and detailing elements, 
for a period not to exceed two years. This section does not 
limit any other source of authority for reimbursable or non-
reimbursable details.

           *       *       *       *       *       *       *

                              ----------                              


              COUNTERINTELLIGENCE ENHANCEMENT ACT OF 2002



           *       *       *       *       *       *       *
TITLE IX--COUNTERINTELLIGENCE ACTIVITIES

           *       *       *       *       *       *       *


SEC. 904. OFFICE OF THE NATIONAL COUNTERINTELLIGENCE EXECUTIVE.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Functions.--Subject to the direction and control of the 
National Counterintelligence Executive, the functions of the 
Office of the National Counterintelligence Executive shall be 
as follows:
          (1) * * *
          (2) National counterintelligence strategy.--[Subject]
                  (A) Requirement to produce.--Subject to 
                subsection (e), in consultation with 
                appropriate department and agencies of the 
                United States Government, and private sector 
                entities, and based on the most current 
                National Threat Identification and 
                Prioritization Assessment under paragraph (1), 
                to produce [on an annual basis] a strategy for 
                the counterintelligence programs and activities 
                of the United States Government to be known as 
                the National Counterintelligence Strategy.
                  (B) Revision and requirement.--The National 
                Counterintelligence Strategy shall be revised 
                or updated at least once every three years and 
                shall be aligned with the strategy and policies 
                of the Director of National Intelligence.

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 10, UNITED STATES CODE

SUBTITLE A--GENERAL MILITARY LAW

           *       *       *       *       *       *       *


PART I--ORGANIZATION AND GENERAL MILITARY POWERS

           *       *       *       *       *       *       *


         CHAPTER 21--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

     * * * * * * *

                      SUBCHAPTER I--GENERAL MATTERS

Sec.
421.  Funds for foreign cryptologic support.
     * * * * * * *
429.  Appropriations for defense intelligence elements: accounts for 
          transfer; transfer.

           *       *       *       *       *       *       *


Sec. 429. Appropriations for defense intelligence elements: accounts 
                    for transfer; transfer

  (a) Accounts for Appropriations for Defense Intelligence 
Elements.--The Secretary of the Treasury shall establish one or 
more accounts for the receipt of appropriations and other 
amounts transferred pursuant to subsection (b).
  (b) Transfers Authorized.--(1) There may be transferred to an 
account established pursuant to subsection (a) the following:
          (A) Appropriations transferred by the Secretary of 
        Defense from appropriations of the Department of 
        Defense available for intelligence, intelligence-
        related activities, and intelligence-related 
        communications.
          (B) Appropriations and other amounts transferred by 
        the Director of National Intelligence from 
        appropriations and other amounts available for the 
        defense intelligence elements.
          (C) Amounts and reimbursements in connection with 
        transactions authorized by law between the defense 
        intelligence elements and other entities.
  (2) The transfer authority of the Secretary of Defense under 
paragraph (1)(A) is in addition to any other transfer authority 
available to the Secretary by law.
  (c) Availability of Appropriations and Amounts Transferred.--
(1) Appropriations transferred pursuant to subsection (b) shall 
remain available for the same time period, and shall be 
available for the same purposes, as the appropriations from 
which transferred.
  (2) Appropriation balances in an account established pursuant 
to subsection (a) may be transferred back to the account or 
accounts from which such balances originated as an 
appropriation refund.
  (d) Defense Intelligence Elements Defined.--In this section, 
the term ``defense intelligence elements'' means the agencies, 
offices, and elements of the Department of Defense that are 
included within the elements of the intelligence community 
specified in or designated under section 3(4) of the National 
Security Act of 1947 (50 U.S.C. 401a(4)).

           *       *       *       *       *       *       *


                             MINORITY VIEWS

     H.R. 754--Intelligence Authorization Act for Fiscal Year 2011

    The way the House Permanent Select Committee on 
Intelligence conducts effective oversight of the Intelligence 
Community (IC) is by passing an intelligence budget. We believe 
it is vitally important that Congress pass an Intelligence 
Authorization Act before the appropriators put together their 
spending bill to provide meaningful oversight and budgetary 
direction for the IC.
    Despite this shared bipartisan goal of passing an 
intelligence budget, the majority embarked on a whirlwind 
process to get the Intelligence Authorization Act for Fiscal 
Year 2011 passed. The bill will have little impact so late in 
the year. The fiscal year is half over. Instead, we wish the 
majority had accepted the minority's invitation to begin this 
Congress on a clean slate by immediately turning to the 
President's Fiscal Year 2012 budget request and embarking on a 
full process.
    For FY 2011, the Committee did not follow ``regular order'' 
and did not conduct proper oversight to ensure our intelligence 
professionals have the resources, tools and capabilities they 
need to keep our country safe. In the 112th Congress, the 
Committee did not hold a single hearing. It held one briefing 
where staff were ``witnesses'' and testified about the elements 
of the bill. This denied Members of the Committee an 
opportunity to speak directly with representatives from the IC 
for which this bill authorizes funding.
    Eight of the twenty Members on the Intelligence Committee 
are new to the Committee this year. They were asked to vote on 
something they had barely seen. In fact, the final classified 
annex which contains the figures for the budget was only 
provided to Members the morning of the markup proceeding. 
Members were asked to vote on a bill that authorizes tens of 
billions of dollars without having a chance to even read it.
    We believe the Committee needs to reestablish its 
authorizing authority and have a meaningful impact on the 
direction of the intelligence budget. We must pass a budget 
that will provide a detailed blue print for the spending bill 
before it is created, rather than the other way around. This 
will ensure proper oversight. FY 2011 follows the spending bill 
in almost every way.
    FY 2012 provides us a fresh start. Committee work is 
already underway. Eight full committee hearings have been 
scheduled. Professionals from the IC have been invited to 
testify so Members can make the necessary and important 
decisions on programs and policy to produce well thought out, 
meaningful legislation. We look forward to this more rigorous 
process that will strengthen our national security.
    We know the threats from Al-Qaeda and its affiliates around 
the world are real. We know we must continue to push America 
ahead in the space race and make sure we have the best and most 
cost effective satellites available. We also know we must make 
cybersecurity a priority. We can make a real difference and 
give our intelligence professionals risking their lives around 
the world what they need to get the job done. We look forward 
to doing that for FY 2012.
                                   C.A. Dutch Ruppersberger.
                                   Mike Thompson.
                                   Jan Schakowsky.
                                   Jim Langevin.
                                   Adam Schiff.
                                   Dan Boren.
                                   Luis Gutierrez.
                                   Ben Chandler.