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SEC. 1011. REORGANIZATION AND IMPROVEMENT OF MANAGEMENT OF INTELLIGENCE COMMUNITY.


                                                                                                                                                                                                

 Contents  

 

    Subtitle A--Establishment of Director of National Intelligence


SEC. 1011. REORGANIZATION AND IMPROVEMENT OF MANAGEMENT OF INTELLIGENCE COMMUNITY.


    (a) In General.--Title I of the National Security Act of

1947 (50 U.S.C. 402 et seq.) is amended by striking sections

102 through 104 and inserting the following new sections:


                  ``DIRECTOR OF NATIONAL INTELLIGENCE


    ``Sec. 102. (a) Director of National Intelligence.--(1)

There is a Director of National Intelligence who shall be

appointed by the President, by and with the advice and consent

of the Senate. Any individual nominated for appointment as

Director of National Intelligence shall have extensive national

security expertise.

    ``(2) The Director of National Intelligence shall not be

located within the Executive Office of the President.

    ``(b) Principal Responsibility.--Subject to the authority,

direction, and control of the President, the Director of

National Intelligence shall--

            ``(1) serve as head of the intelligence community;

            ``(2) act as the principal adviser to the

        President, to the National Security Council, and the

        Homeland Security Council for intelligence matters

        related to the national security; and

            ``(3) consistent with section 1018 of the National

        Security Intelligence Reform Act of 2004, oversee and

        direct the implementation of the National Intelligence

        Program.

    ``(c) Prohibition on Dual Service.--The individual serving

in the position of Director of National Intelligence shall not,

while so serving, also serve as the Director of the Central

Intelligence Agency or as the head of any other element of the

intelligence community.


    ``RESPONSIBILITIES AND AUTHORITIES OF THE DIRECTOR OF NATIONAL

                              INTELLIGENCE


    ``Sec. 102A. (a) Provision of Intelligence.--(1) The

Director of National Intelligence shall be responsible for

ensuring that national intelligence is provided--

            ``(A) to the President;

            ``(B) to the heads of departments and agencies of

        the executive branch;

            ``(C) to the Chairman of the Joint Chiefs of Staff

        and senior military commanders;

            ``(D) to the Senate and House of Representatives

        and the committees thereof; and

            ``(E) to such other persons as the Director of

        National Intelligence determines to be appropriate.

    ``(2) Such national intelligence should be timely,

objective, independent of political considerations, and based

upon all sources available to the intelligence community and

other appropriate entities.

    ``(b) Access to Intelligence.--Unless otherwise directed by

the President, the Director of National Intelligence shall have

access to all national intelligence and intelligence related to

the national security which is collected by any Federal

department, agency, or other entity, except as otherwise

provided by law or, as appropriate, under guidelines agreed

upon by the Attorney General and the Director of National

Intelligence.

    ``(c) Budget Authorities.--(1) With respect to budget

requests and appropriations for the National Intelligence

Program, the Director of National Intelligence shall--

            ``(A) based on intelligence priorities set by the

        President, provide to the heads of departments

        containing agencies or organizations within the

        intelligence community, and to the heads of such

        agencies and organizations, guidance for developing the

        National Intelligence Program budget pertaining to such

        agencies and organizations;

            ``(B) based on budget proposals provided to the

        Director of National Intelligence by the heads of

        agencies and organizations within the intelligence

        community and the heads of their respective departments

        and, as appropriate, after obtaining the advice of the

        Joint Intelligence Community Council, develop and

        determine an annual consolidated National Intelligence

        Program budget; and

            ``(C) present such consolidated National

        Intelligence Program budget, together with any comments

        from the heads of departments containing agencies or

        organizations within the intelligence community, to the

        President for approval.

    ``(2) In addition to the information provided under

paragraph (1)(B), the heads of agencies and organizations

within the intelligence community shall provide the Director of

National Intelligence such other information as the Director

shall request for the purpose of determining the annual

consolidated National Intelligence Program budget under that

paragraph.

    ``(3)(A) The Director of National Intelligence shall

participate in the development by the Secretary of Defense of

the annual budgets for the Joint Military Intelligence Program

and for Tactical Intelligence and Related Activities.

    ``(B) The Director of National Intelligence shall provide

guidance for the development of the annual budget for each

element of the intelligence community that is not within the

National Intelligence Program.

    ``(4) The Director of National Intelligence shall ensure

the effective execution of the annual budget for intelligence

and intelligence-related activities.

    ``(5)(A) The Director of National Intelligence shall be

responsible for managing appropriations for the National

Intelligence Program by directing the allotment or allocation

of such appropriations through the heads of the departments

containing agencies or organizations within the intelligence

community and the Director of the Central Intelligence Agency,

with prior notice (including the provision of appropriate

supporting information) to the head of the department

containing an agency or organization receiving any such

allocation or allotment or the Director of the Central

Intelligence Agency.

    ``(B) Notwithstanding any other provision of law, pursuant

to relevant appropriations Acts for the National Intelligence

Program, the Director of the Office of Management and Budget

shall exercise the authority of the Director of the Office of

Management and Budget to apportion funds, at the exclusive

direction of the Director of National Intelligence, for

allocation to the elements of the intelligence community

through the relevant host executive departments and the Central

Intelligence Agency. Department comptrollers or appropriate

budget execution officers shall allot, allocate, reprogram, or

transfer funds appropriated for the National Intelligence

Program in an expeditious manner.

    ``(C) The Director of National Intelligence shall monitor

the implementation and execution of the National Intelligence

Program by the heads of the elements of the intelligence

community that manage programs and activities that are part of

the National Intelligence Program, which may include audits and

evaluations.

    ``(6) Apportionment and allotment of funds under this

subsection shall be subject to chapter 13 and section 1517 of

title 31, United States Code, and the Congressional Budget and

Impoundment Control Act of 1974 (2 U.S.C. 621 et seq.).

    ``(7)(A) The Director of National Intelligence shall

provide a semi-annual report, beginning April 1, 2005, and

ending April 1, 2007, to the President and the Congress

regarding implementation of this section.

    ``(B) The Director of National Intelligence shall report to

the President and the Congress not later than 15 days after

learning of any instance in which a departmental comptroller

acts in a manner inconsistent with the law (including permanent

statutes, authorization Acts, and appropriations Acts), or the

direction of the Director of National Intelligence, in carrying

out the National Intelligence Program.

    ``(d) Role of Director of National Intelligence in Transfer

and Reprogramming of Funds.--(1)(A) No funds made available

under the National Intelligence Program may be transferred or

reprogrammed without the prior approval of the Director of

National Intelligence, except in accordance with procedures

prescribed by the Director of National Intelligence.

    ``(B) The Secretary of Defense shall consult with the

Director of National Intelligence before transferring or

reprogramming funds made available under the Joint Military

Intelligence Program.

    ``(2) Subject to the succeeding provisions of this

subsection, the Director of National Intelligence may transfer

or reprogram funds appropriated for a program within the

National Intelligence Program to another such program.

    ``(3) The Director of National Intelligence may only

transfer or reprogram funds referred to in subparagraph (A)--

            ``(A) with the approval of the Director of the

        Office of Management and Budget; and

            ``(B) after consultation with the heads of

        departments containing agencies or organizations within

        the intelligence community to the extent such agencies

        or organizations are affected, and, in the case of the

        Central Intelligence Agency, after consultation with

        the Director of the Central Intelligence Agency.

    ``(4) The amounts available for transfer or reprogramming

in the National Intelligence Program in any given fiscal year,

and the terms and conditions governing such transfers and

reprogrammings, are subject to the provisions of annual

appropriations Acts and this subsection.

    ``(5)(A) A transfer or reprogramming of funds or personnel

may be made under this subsection only if--

            ``(i) the funds are being transferred to an

        activity that is a higher priority intelligence

        activity;

            ``(ii) the transfer or reprogramming supports an

        emergent need, improves program effectiveness, or

        increases efficiency;

            ``(iii) the transfer or reprogramming does not

        involve a transfer or reprogramming of funds to a

        Reserve for Contingencies of the Director of National

        Intelligence or the Reserve for Contingencies of the

        Central Intelligence Agency;

            ``(iv) the transfer or reprogramming results in a

        cumulative transfer or reprogramming of funds out of

        any department or agency, as appropriate, funded in the

        National Intelligence Program in a single fiscal year--

                    ``(I) that is less than $150,000,000, and

                    ``(II) that is less than 5 percent of

                amounts available to a department or agency

                under the National Intelligence Program; and

            ``(v) the transfer or reprogramming does not

        terminate an acquisition program.

    ``(B) A transfer or reprogramming may be made without

regard to a limitation set forth in clause (iv) or (v) of

subparagraph (A) if the transfer has the concurrence of the

head of the department involved or the Director of the Central

Intelligence Agency (in the case of the Central Intelligence

Agency). The authority to provide such concurrence may only be

delegated by the head of the department or agency involved to

the deputy of such officer.

    ``(6) Funds transferred or reprogrammed under this

subsection shall remain available for the same period as the

appropriations account to which transferred or reprogrammed.

    ``(7) Any transfer or reprogramming of funds under this

subsection shall be carried out in accordance with existing

procedures applicable to reprogramming notifications for the

appropriate congressional committees. Any proposed transfer or

reprogramming for which notice is given to the appropriate

congressional committees shall be accompanied by a report

explaining the nature of the proposed transfer or reprogramming

and how it satisfies the requirements of this subsection. In

addition, the congressional intelligence committees shall be

promptly notified of any transfer or reprogramming of funds

made pursuant to this subsection in any case in which the

transfer or reprogramming would not have otherwise required

reprogramming notification under procedures in effect as of the

date of the enactment of this subsection.

    ``(e) Transfer of Personnel.--(1)(A) In addition to any

other authorities available under law for such purposes, in the

first twelve months after establishment of a new national

intelligence center, the Director of National Intelligence,

with the approval of the Director of the Office of Management

and Budget and in consultation with the congressional

committees of jurisdiction referred to in subparagraph (B), may

transfer not more than 100 personnel authorized for elements of

the intelligence community to such center.

    ``(B) The Director of National Intelligence shall promptly

provide notice of any transfer of personnel made pursuant to

this paragraph to--

            ``(i) the congressional intelligence committees;

            ``(ii) the Committees on Appropriations of the

        Senate and the House of Representatives;

            ``(iii) in the case of the transfer of personnel to

        or from the Department of Defense, the Committees on

        Armed Services of the Senate and the House of

        Representatives; and

            ``(iv) in the case of the transfer of personnel to

        or from the Department of Justice, to the Committees on

        the Judiciary of the Senate and the House of

        Representatives.

    ``(C) The Director shall include in any notice under

subparagraph (B) an explanation of the nature of the transfer

and how it satisfies the requirements of this subsection.

    ``(2)(A) The Director of National Intelligence, with the

approval of the Director of the Office of Management and Budget

and in accordance with procedures to be developed by the

Director of National Intelligence and the heads of the

departments and agencies concerned, may transfer personnel

authorized for an element of the intelligence community to

another such element for a period of not more than 2 years.

    ``(B) A transfer of personnel may be made under this

paragraph only if--

            ``(i) the personnel are being transferred to an

        activity that is a higher priority intelligence

        activity; and

            ``(ii) the transfer supports an emergent need,

        improves program effectiveness, or increases

        efficiency.

    ``(C) The Director of National Intelligence shall promptly

provide notice of any transfer of personnel made pursuant to

this paragraph to--

            ``(i) the congressional intelligence committees;

            ``(ii) in the case of the transfer of personnel to

        or from the Department of Defense, the Committees on

        Armed Services of the Senate and the House of

        Representatives; and

            ``(iii) in the case of the transfer of personnel to

        or from the Department of Justice, to the Committees on

        the Judiciary of the Senate and the House of

        Representatives.

    ``(D) The Director shall include in any notice under

subparagraph (C) an explanation of the nature of the transfer

and how it satisfies the requirements of this paragraph.

    ``(3) It is the sense of Congress that--

            ``(A) the nature of the national security threats

        facing the United States will continue to challenge the

        intelligence community to respond rapidly and flexibly

        to bring analytic resources to bear against emerging

        and unforeseen requirements;

            ``(B) both the Office of the Director of National

        Intelligence and any analytic centers determined to be

        necessary should be fully and properly supported with

        appropriate levels of personnel resources and that the

        President's yearly budget requests adequately support

        those needs; and

            ``(C) the President should utilize all legal and

        administrative discretion to ensure that the Director

        of National Intelligence and all other elements of the

        intelligence community have the necessary resources and

        procedures to respond promptly and effectively to

        emerging and unforeseen national security challenges.

    ``(f) Tasking and Other Authorities.--(1)(A) The Director

of National Intelligence shall--

            ``(i) establish objectives, priorities, and

        guidance for the intelligence community to ensure

        timely and effective collection, processing, analysis,

        and dissemination (including access by users to

        collected data consistent with applicable law and, as

        appropriate, the guidelines referred to in subsection

        (b) and analytic products generated by or within the

        intelligence community) of national intelligence;

            ``(ii) determine requirements and priorities for,

        and manage and direct the tasking of, collection,

        analysis, production, and dissemination of national

        intelligence by elements of the intelligence community,

        including--

                    ``(I) approving requirements (including

                those requirements responding to needs provided

                by consumers) for collection and analysis; and

                    ``(II) resolving conflicts in collection

                requirements and in the tasking of national

                collection assets of the elements of the

                intelligence community; and

            ``(iii) provide advisory tasking to intelligence

        elements of those agencies and departments not within

        the National Intelligence Program.

    ``(B) The authority of the Director of National

Intelligence under subparagraph (A) shall not apply--

            ``(i) insofar as the President so directs;

            ``(ii) with respect to clause (ii) of subparagraph

        (A), insofar as the Secretary of Defense exercises

        tasking authority under plans or arrangements agreed

        upon by the Secretary of Defense and the Director of

        National Intelligence; or

            ``(iii) to the direct dissemination of information

        to State government and local government officials and

        private sector entities pursuant to sections 201 and

        892 of the Homeland Security Act of 2002 (6 U.S.C. 121,

        482).

    ``(2) The Director of National Intelligence shall oversee

the National Counterterrorism Center and may establish such

other national intelligence centers as the Director determines

necessary.

    ``(3)(A) The Director of National Intelligence shall

prescribe, in consultation with the heads of other agencies or

elements of the intelligence community, and the heads of their

respective departments, personnel policies and programs

applicable to the intelligence community that--

            ``(i) encourage and facilitate assignments and

        details of personnel to national intelligence centers,

        and between elements of the intelligence community;

            ``(ii) set standards for education, training, and

        career development of personnel of the intelligence

        community;

            ``(iii) encourage and facilitate the recruitment

        and retention by the intelligence community of highly

        qualified individuals for the effective conduct of

        intelligence activities;

            ``(iv) ensure that the personnel of the

        intelligence community are sufficiently diverse for

        purposes of the collection and analysis of intelligence

        through the recruitment and training of women,

        minorities, and individuals with diverse ethnic,

        cultural, and linguistic backgrounds;

            ``(v) make service in more than one element of the

        intelligence community a condition of promotion to such

        positions within the intelligence community as the

        Director shall specify; and

            ``(vi) ensure the effective management of

        intelligence community personnel who are responsible

        for intelligence community-wide matters.

    ``(B) Policies prescribed under subparagraph (A) shall not

be inconsistent with the personnel policies otherwise

applicable to members of the uniformed services.

    ``(4) The Director of National Intelligence shall ensure

compliance with the Constitution and laws of the United States

by the Central Intelligence Agency and shall ensure such

compliance by other elements of the intelligence community

through the host executive departments that manage the programs

and activities that are part of the National Intelligence

Program.

    ``(5) The Director of National Intelligence shall ensure

the elimination of waste and unnecessary duplication within the

intelligence community.

    ``(6) The Director of National Intelligence shall establish

requirements and priorities for foreign intelligence

information to be collected under the Foreign Intelligence

Surveillance Act of 1978 (50 U.S.C. 1801 et seq.), and provide

assistance to the Attorney General to ensure that information

derived from electronic surveillance or physical searches under

that Act is disseminated so it may be used efficiently and

effectively for national intelligence purposes, except that the

Director shall have no authority to direct or undertake

electronic surveillance or physical search operations pursuant

to that Act unless authorized by statute or Executive order.

    ``(7) The Director of National Intelligence shall perform

such other functions as the President may direct.

    ``(8) Nothing in this title shall be construed as affecting

the role of the Department of Justice or the Attorney General

under the Foreign Intelligence Surveillance Act of 1978.

    ``(g) Intelligence Information Sharing.--(1) The Director

of National Intelligence shall have principal authority to

ensure maximum availability of and access to intelligence

information within the intelligence community consistent with

national security requirements. The Director of National

Intelligence shall--

            ``(A) establish uniform security standards and

        procedures;

            ``(B) establish common information technology

        standards, protocols, and interfaces;

            ``(C) ensure development of information technology

        systems that include multi-level security and

        intelligence integration capabilities;

            ``(D) establish policies and procedures to resolve

        conflicts between the need to share intelligence

        information and the need to protect intelligence

        sources and methods;

            ``(E) develop an enterprise architecture for the

        intelligence community and ensure that elements of the

        intelligence community comply with such architecture;

        and

            ``(F) have procurement approval authority over all

        enterprise architecture-related information technology

        items funded in the National Intelligence Program.

    ``(2) The President shall ensure that the Director of

National Intelligence has all necessary support and authorities

to fully and effectively implement paragraph (1).

    ``(3) Except as otherwise directed by the President or with

the specific written agreement of the head of the department or

agency in question, a Federal agency or official shall not be

considered to have met any obligation to provide any

information, report, assessment, or other material (including

unevaluated intelligence information) to that department or

agency solely by virtue of having provided that information,

report, assessment, or other material to the Director of

National Intelligence or the National Counterterrorism Center.

    ``(4) Not later than February 1 of each year, the Director

of National Intelligence shall submit to the President and to

the Congress an annual report that identifies any statute,

regulation, policy, or practice that the Director believes

impedes the ability of the Director to fully and effectively

implement paragraph (1).

    ``(h) Analysis.--To ensure the most accurate analysis of

intelligence is derived from all sources to support national

security needs, the Director of National Intelligence shall--

            ``(1) implement policies and procedures--

                    ``(A) to encourage sound analytic methods

                and tradecraft throughout the elements of the

                intelligence community;

                    ``(B) to ensure that analysis is based upon

                all sources available; and

                    ``(C) to ensure that the elements of the

                intelligence community regularly conduct

                competitive analysis of analytic products,

                whether such products are produced by or

                disseminated to such elements;

            ``(2) ensure that resource allocation for

        intelligence analysis is appropriately proportional to

        resource allocation for intelligence collection systems

        and operations in order to maximize analysis of all

        collected data;

            ``(3) ensure that differences in analytic judgment

        are fully considered and brought to the attention of

        policymakers; and

            ``(4) ensure that sufficient relationships are

        established between intelligence collectors and

        analysts to facilitate greater understanding of the

        needs of analysts.

    ``(i) Protection of Intelligence Sources and Methods.--(1)

The Director of National Intelligence shall protect

intelligence sources and methods from unauthorized disclosure.

    ``(2) Consistent with paragraph (1), in order to maximize

the dissemination of intelligence, the Director of National

Intelligence shall establish and implement guidelines for the

intelligence community for the following purposes:

            ``(A) Classification of information under

        applicable law, Executive orders, or other Presidential

        directives.

            ``(B) Access to and dissemination of intelligence,

        both in final form and in the form when initially

        gathered.

            ``(C) Preparation of intelligence products in such

        a way that source information is removed to allow for

        dissemination at the lowest level of classification

        possible or in unclassified form to the extent

        practicable.

    ``(3) The Director may only delegate a duty or authority

given the Director under this subsection to the Principal

Deputy Director of National Intelligence.

    ``(j) Uniform Procedures for Sensitive Compartmented

Information.--The Director of National Intelligence, subject to

the direction of the President, shall--

            ``(1) establish uniform standards and procedures

        for the grant of access to sensitive compartmented

        information to any officer or employee of any agency or

        department of the United States and to employees of

        contractors of those agencies or departments;

            ``(2) ensure the consistent implementation of those

        standards and procedures throughout such agencies and

        departments;

            ``(3) ensure that security clearances granted by

        individual elements of the intelligence community are

        recognized by all elements of the intelligence

        community, and under contracts entered into by those

        agencies; and

            ``(4) ensure that the process for investigation and

        adjudication of an application for access to sensitive

        compartmented information is performed in the most

        expeditious manner possible consistent with applicable

        standards for national security.

    ``(k) Coordination With Foreign Governments.--Under the

direction of the President and in a manner consistent with

section 207 of the Foreign Service Act of 1980 (22 U.S.C.

3927), the Director of National Intelligence shall oversee the

coordination of the relationships between elements of the

intelligence community and the intelligence or security

services of foreign governments or international organizations

on all matters involving intelligence related to the national

security or involving intelligence acquired through clandestine

means.

    ``(l) Enhanced Personnel Management.--(1)(A) The Director

of National Intelligence shall, under regulations prescribed by

the Director, provide incentives for personnel of elements of

the intelligence community to serve--

            ``(i) on the staff of the Director of National

        Intelligence;

            ``(ii) on the staff of the national intelligence

        centers;

            ``(iii) on the staff of the National

        Counterterrorism Center; and

            ``(iv) in other positions in support of the

        intelligence community management functions of the

        Director.

    ``(B) Incentives under subparagraph (A) may include

financial incentives, bonuses, and such other awards and

incentives as the Director considers appropriate.

    ``(2)(A) Notwithstanding any other provision of law, the

personnel of an element of the intelligence community who are

assigned or detailed under paragraph (1)(A) to service under

the Director of National Intelligence shall be promoted at

rates equivalent to or better than personnel of such element

who are not so assigned or detailed.

    ``(B) The Director may prescribe regulations to carry out

this section.

    ``(3)(A) The Director of National Intelligence shall

prescribe mechanisms to facilitate the rotation of personnel of

the intelligence community through various elements of the

intelligence community in the course of their careers in order

to facilitate the widest possible understanding by such

personnel of the variety of intelligence requirements, methods,

users, and capabilities.

    ``(B) The mechanisms prescribed under subparagraph (A) may

include the following:

            ``(i) The establishment of special occupational

        categories involving service, over the course of a

        career, in more than one element of the intelligence

        community.

            ``(ii) The provision of rewards for service in

        positions undertaking analysis and planning of

        operations involving two or more elements of the

        intelligence community.

            ``(iii) The establishment of requirements for

        education, training, service, and evaluation for

        service involving more than one element of the

        intelligence community.

    ``(C) It is the sense of Congress that the mechanisms

prescribed under this subsection should, to the extent

practical, seek to duplicate for civilian personnel within the

intelligence community the joint officer management policies

established by chapter 38 of title 10, United States Code, and

the other amendments made by title IV of the Goldwater-Nichols

Department of Defense Reorganization Act of 1986 (Public Law

99-433).

    ``(4)(A) Except as provided in subparagraph (B) and

subparagraph (D), this subsection shall not apply with respect

to personnel of the elements of the intelligence community who

are members of the uniformed services.

    ``(B) Mechanisms that establish requirements for education

and training pursuant to paragraph (3)(B)(iii) may apply with

respect to members of the uniformed services who are assigned

to an element of the intelligence community funded through the

National Intelligence Program, but such mechanisms shall not be

inconsistent with personnel policies and education and training

requirements otherwise applicable to members of the uniformed

services.

    ``(C) The personnel policies and programs developed and

implemented under this subsection with respect to law

enforcement officers (as that term is defined in section

5541(3) of title 5, United States Code) shall not affect the

ability of law enforcement entities to conduct operations or,

through the applicable chain of command, to control the

activities of such law enforcement officers.

    ``(D) Assignment to the Office of the Director of National

Intelligence of commissioned officers of the Armed Forces shall

be considered a joint-duty assignment for purposes of the joint

officer management policies prescribed by chapter 38 of title

10, United States Code, and other provisions of that title.

    ``(m) Additional Authority With Respect to Personnel.--(1)

In addition to the authorities under subsection (f)(3), the

Director of National Intelligence may exercise with respect to

the personnel of the Office of the Director of National

Intelligence any authority of the Director of the Central

Intelligence Agency with respect to the personnel of the

Central Intelligence Agency under the Central Intelligence

Agency Act of 1949 (50 U.S.C. 403a et seq.), and other

applicable provisions of law, as of the date of the enactment

of this subsection to the same extent, and subject to the same

conditions and limitations, that the Director of the Central

Intelligence Agency may exercise such authority with respect to

personnel of the Central Intelligence Agency.

    ``(2) Employees and applicants for employment of the Office

of the Director of National Intelligence shall have the same

rights and protections under the Office of the Director of

National Intelligence as employees of the Central Intelligence

Agency have under the Central Intelligence Agency Act of 1949,

and other applicable provisions of law, as of the date of the

enactment of this subsection.

    ``(n) Acquisition Authorities.--(1) In carrying out the

responsibilities and authorities under this section, the

Director of National Intelligence may exercise the acquisition

and appropriations authorities referred to in the Central

Intelligence Agency Act of 1949 (50 U.S.C. 403a et seq.) other

than the authorities referred to in section 8(b) of that Act

(50 U.S.C. 403j(b)).

    ``(2) For the purpose of the exercise of any authority

referred to in paragraph (1), a reference to the head of an

agency shall be deemed to be a reference to the Director of

National Intelligence or the Principal Deputy Director of

National Intelligence.

    ``(3)(A) Any determination or decision to be made under an

authority referred to in paragraph (1) by the head of an agency

may be made with respect to individual purchases and contracts

or with respect to classes of purchases or contracts, and shall

be final.

    ``(B) Except as provided in subparagraph (C), the Director

of National Intelligence or the Principal Deputy Director of

National Intelligence may, in such official's discretion,

delegate to any officer or other official of the Office of the

Director of National Intelligence any authority to make a

determination or decision as the head of the agency under an

authority referred to in paragraph (1).

    ``(C) The limitations and conditions set forth in section

3(d) of the Central Intelligence Agency Act of 1949 (50 U.S.C.

403c(d)) shall apply to the exercise by the Director of

National Intelligence of an authority referred to in paragraph

(1).

    ``(D) Each determination or decision required by an

authority referred to in the second sentence of section 3(d) of

the Central Intelligence Agency Act of 1949 shall be based upon

written findings made by the official making such determination

or decision, which findings shall be final and shall be

available within the Office of the Director of National

Intelligence for a period of at least six years following the

date of such determination or decision.

    ``(o) Consideration of Views of Elements of Intelligence

Community.--In carrying out the duties and responsibilities

under this section, the Director of National Intelligence shall

take into account the views of a head of a department

containing an element of the intelligence community and of the

Director of the Central Intelligence Agency.

    ``(p) Responsibility of Director of National Intelligence

Regarding National Intelligence Program Budget Concerning the

Department of Defense.--Subject to the direction of the

President, the Director of National Intelligence shall, after

consultation with the Secretary of Defense, ensure that the

National Intelligence Program budgets for the elements of the

intelligence community that are within the Department of

Defense are adequate to satisfy the national intelligence needs

of the Department of Defense, including the needs of the

Chairman of the Joint Chiefs of Staff and the commanders of the

unified and specified commands, and wherever such elements are

performing Government-wide functions, the needs of other

Federal departments and agencies.

    ``(q) Acquisitions of Major Systems.--(1) For each

intelligence program within the National Intelligence Program

for the acquisition of a major system, the Director of National

Intelligence shall--

            ``(A) require the development and implementation of

        a program management plan that includes cost, schedule,

        and performance goals and program milestone criteria,

        except that with respect to Department of Defense

        programs the Director shall consult with the Secretary

        of Defense;

            ``(B) serve as exclusive milestone decision

        authority, except that with respect to Department of

        Defense programs the Director shall serve as milestone

        decision authority jointly with the Secretary of

        Defense or the designee of the Secretary; and

            ``(C) periodically--

                    ``(i) review and assess the progress made

                toward the achievement of the goals and

                milestones established in such plan; and

                    ``(ii) submit to Congress a report on the

                results of such review and assessment.

    ``(2) If the Director of National Intelligence and the

Secretary of Defense are unable to reach an agreement on a

milestone decision under paragraph (1)(B), the President shall

resolve the conflict.

    ``(3) Nothing in this subsection may be construed to limit

the authority of the Director of National Intelligence to

delegate to any other official any authority to perform the

responsibilities of the Director under this subsection.

    ``(4) In this subsection:

            ``(A) 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.

            ``(B) The term `major system' has the meaning given

        such term in section 4(9) of the Federal Property and

        Administrative Services Act of 1949 (41 U.S.C. 403(9)).

    ``(r) Performance of Common Services.--The Director of

National Intelligence shall, in consultation with the heads of

departments and agencies of the United States Government

containing elements within the intelligence community and with

the Director of the Central Intelligence Agency, coordinate the

performance by the elements of the intelligence community

within the National Intelligence Program of such services as

are of common concern to the intelligence community, which

services the Director of National Intelligence determines can

be more efficiently accomplished in a consolidated manner.


           ``OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE


    ``Sec. 103. (a) Office of Director of National

Intelligence.--There is an Office of the Director of National

Intelligence.

    ``(b) Function.--The function of the Office of the Director

of National Intelligence is to assist the Director of National

Intelligence in carrying out the duties and responsibilities of

the Director under this Act, the National Security Act of 1947

(50 U.S.C. 401 et seq.), and other applicable provisions of

law, and to carry out such other duties as may be prescribed by

the President or by law.

    ``(c) Composition.--The Office of the Director of National

Intelligence is composed of the following:

            ``(1) The Director of National Intelligence.

            ``(2) The Principal Deputy Director of National

        Intelligence.

            ``(3) Any Deputy Director of National Intelligence

        appointed under section 103A.

            ``(4) The National Intelligence Council.

            ``(5) The General Counsel.

            ``(6) The Civil Liberties Protection Officer.

            ``(7) The Director of Science and Technology.

            ``(8) The National Counterintelligence Executive

        (including the Office of the National

        Counterintelligence Executive).

            ``(9) Such other offices and officials as may be

        established by law or the Director may establish or

        designate in the Office, including national

        intelligence centers.

    ``(d) Staff.--(1) To assist the Director of National

Intelligence in fulfilling the duties and responsibilities of

the Director, the Director shall employ and utilize in the

Office of the Director of National Intelligence a professional

staff having an expertise in matters relating to such duties

and responsibilities, and may establish permanent positions and

appropriate rates of pay with respect to that staff.

    ``(2) The staff of the Office of the Director of National

Intelligence under paragraph (1) shall include the staff of the

Office of the Deputy Director of Central Intelligence for

Community Management that is transferred to the Office of the

Director of National Intelligence under section 1091 of the

National Security Intelligence Reform Act of 2004.

    ``(e) Limitation on Co-Location With Other Elements of

Intelligence Community.--Commencing as of October 1, 2008, the

Office of the Director of National Intelligence may not be co-

located with any other element of the intelligence community.


              ``DEPUTY DIRECTORS OF NATIONAL INTELLIGENCE


    ``Sec. 103A. (a) Principal Deputy Director of National

Intelligence.--(1) There is a Principal Deputy Director of

National Intelligence who shall be appointed by the President,

by and with the advice and consent of the Senate.

    ``(2) In the event of a vacancy in the position of

Principal Deputy Director of National Intelligence, the

Director of National Intelligence shall recommend to the

President an individual for appointment as Principal Deputy

Director of National Intelligence.

    ``(3) Any individual nominated for appointment as Principal

Deputy Director of National Intelligence shall have extensive

national security experience and management expertise.

    ``(4) The individual serving as Principal Deputy Director

of National Intelligence shall not, while so serving, serve in

any capacity in any other element of the intelligence

community.

    ``(5) The Principal Deputy Director of National

Intelligence shall assist the Director of National Intelligence

in carrying out the duties and responsibilities of the

Director.

    ``(6) The Principal Deputy Director of National

Intelligence shall act for, and exercise the powers of, the

Director of National Intelligence during the absence or

disability of the Director of National Intelligence or during a

vacancy in the position of Director of National Intelligence.

    ``(b) Deputy Directors of National Intelligence.--(1) There

may be not more than four Deputy Directors of National

Intelligence who shall be appointed by the Director of National

Intelligence.

    ``(2) Each Deputy Director of National Intelligence

appointed under this subsection shall have such duties,

responsibilities, and authorities as the Director of National

Intelligence may assign or are specified by law.

    ``(c) Military Status of Director of National Intelligence

and Principal Deputy Director of National Intelligence.--(1)

Not more than one of the individuals serving in the positions

specified in paragraph (2) may be a commissioned officer of the

Armed Forces in active status.

    ``(2) The positions referred to in this paragraph are the

following:

            ``(A) The Director of National Intelligence.

            ``(B) The Principal Deputy Director of National

        Intelligence.

    ``(3) It is the sense of Congress that, under ordinary

circumstances, it is desirable that one of the individuals

serving in the positions specified in paragraph (2)--

            ``(A) be a commissioned officer of the Armed

        Forces, in active status; or

            ``(B) have, by training or experience, an

        appreciation of military intelligence activities and

        requirements.

    ``(4) A commissioned officer of the Armed Forces, while

serving in a position specified in paragraph (2)--

            ``(A) shall not be subject to supervision or

        control by the Secretary of Defense or by any officer

        or employee of the Department of Defense;

            ``(B) shall not exercise, by reason of the

        officer's status as a commissioned officer, any

        supervision or control with respect to any of the

        military or civilian personnel of the Department of

        Defense except as otherwise authorized by law; and

            ``(C) shall not be counted against the numbers and

        percentages of commissioned officers of the rank and

        grade of such officer authorized for the military

        department of that officer.

    ``(5) Except as provided in subparagraph (A) or (B) of

paragraph (4), the appointment of an officer of the Armed

Forces to a position specified in paragraph (2) shall not

affect the status, position, rank, or grade of such officer in

the Armed Forces, or any emolument, perquisite, right,

privilege, or benefit incident to or arising out of such

status, position, rank, or grade.

    ``(6) A commissioned officer of the Armed Forces on active

duty who is appointed to a position specified in paragraph (2),

while serving in such position and while remaining on active

duty, shall continue to receive military pay and allowances and

shall not receive the pay prescribed for such position. Funds

from which such pay and allowances are paid shall be reimbursed

from funds available to the Director of National Intelligence.


                    ``NATIONAL INTELLIGENCE COUNCIL


    ``Sec. 103B. (a) National Intelligence Council.--There is a

National Intelligence Council.

    ``(b) Composition.--(1) The National Intelligence Council

shall be composed of senior analysts within the intelligence

community and substantive experts from the public and private

sector, who shall be appointed by, report to, and serve at the

pleasure of, the Director of National Intelligence.

    ``(2) The Director shall prescribe appropriate security

requirements for personnel appointed from the private sector as

a condition of service on the Council, or as contractors of the

Council or employees of such contractors, to ensure the

protection of intelligence sources and methods while avoiding,

wherever possible, unduly intrusive requirements which the

Director considers to be unnecessary for this purpose.

    ``(c) Duties and Responsibilities.--(1) The National

Intelligence Council shall--

            ``(A) produce national intelligence estimates for

        the United States Government, including alternative

        views held by elements of the intelligence community

        and other information as specified in paragraph (2);

            ``(B) evaluate community-wide collection and

        production of intelligence by the intelligence

        community and the requirements and resources of such

        collection and production; and

            ``(C) otherwise assist the Director of National

        Intelligence in carrying out the responsibilities of

        the Director under section 102A.

    ``(2) The Director of National Intelligence shall ensure

that the Council satisfies the needs of policymakers and other

consumers of intelligence.

    ``(d) Service as Senior Intelligence Advisers.--Within

their respective areas of expertise and under the direction of

the Director of National Intelligence, the members of the

National Intelligence Council shall constitute the senior

intelligence advisers of the intelligence community for

purposes of representing the views of the intelligence

community within the United States Government.

    ``(e) Authority To Contract.--Subject to the direction and

control of the Director of National Intelligence, the National

Intelligence Council may carry out its responsibilities under

this section by contract, including contracts for substantive

experts necessary to assist the Council with particular

assessments under this section.

    ``(f) Staff.--The Director of National Intelligence shall

make available to the National Intelligence Council such staff

as may be necessary to permit the Council to carry out its

responsibilities under this section.

    ``(g) Availability of Council and Staff.--(1) The Director

of National Intelligence shall take appropriate measures to

ensure that the National Intelligence Council and its staff

satisfy the needs of policymaking officials and other consumers

of intelligence.

    ``(2) The Council shall be readily accessible to

policymaking officials and other appropriate individuals not

otherwise associated with the intelligence community.

    ``(h) Support.--The heads of the elements of the

intelligence community shall, as appropriate, furnish such

support to the National Intelligence Council, including the

preparation of intelligence analyses, as may be required by the

Director of National Intelligence.

    ``(i) National Intelligence Council Product.--For purposes

of this section, the term `National Intelligence Council

product' includes a National Intelligence Estimate and any

other intelligence community assessment that sets forth the

judgment of the intelligence community as a whole on a matter

covered by such product.


                           ``GENERAL COUNSEL


    ``Sec. 103C. (a) General Counsel.--There is a General

Counsel of the Office of the Director of National Intelligence

who shall be appointed by the President, by and with the advice

and consent of the Senate.

    ``(b) Prohibition on Dual Service as General Counsel of

Another Agency.--The individual serving in the position of

General Counsel may not, while so serving, also serve as the

General Counsel of any other department, agency, or element of

the United States Government.

    ``(c) Scope of Position.--The General Counsel is the chief

legal officer of the Office of the Director of National

Intelligence.

    ``(d) Functions.--The General Counsel shall perform such

functions as the Director of National Intelligence may

prescribe.


                  ``CIVIL LIBERTIES PROTECTION OFFICER


    ``Sec. 103D. (a) Civil Liberties Protection Officer.--(1)

Within the Office of the Director of National Intelligence,

there is a Civil Liberties Protection Officer who shall be

appointed by the Director of National Intelligence.

    ``(2) The Civil Liberties Protection Officer shall report

directly to the Director of National Intelligence.

    ``(b) Duties.--The Civil Liberties Protection Officer

shall--

            ``(1) ensure that the protection of civil liberties

        and privacy is appropriately incorporated in the

        policies and procedures developed for and implemented

        by the Office of the Director of National Intelligence

        and the elements of the intelligence community within

        the National Intelligence Program;

            ``(2) oversee compliance by the Office and the

        Director of National Intelligence with requirements

        under the Constitution and all laws, regulations,

        Executive orders, and implementing guidelines relating

        to civil liberties and privacy;

            ``(3) review and assess complaints and other

        information indicating possible abuses of civil

        liberties and privacy in the administration of the

        programs and operations of the Office and the Director

        of National Intelligence and, as appropriate,

        investigate any such complaint or information;

            ``(4) ensure that the use of technologies sustain,

        and do not erode, privacy protections relating to the

        use, collection, and disclosure of personal

        information;

            ``(5) ensure that personal information contained in

        a system of records subject to section 552a of title 5,

        United States Code (popularly referred to as the

        `Privacy Act'), is handled in full compliance with fair

        information practices as set out in that section;

            ``(6) conduct privacy impact assessments when

        appropriate or as required by law; and

            ``(7) perform such other duties as may be

        prescribed by the Director of National Intelligence or

        specified by law.

    ``(c) Use of Agency Inspectors General.--When appropriate,

the Civil Liberties Protection Officer may refer complaints to

the Office of Inspector General having responsibility for the

affected element of the department or agency of the

intelligence community to conduct an investigation under

paragraph (3) of subsection (b).


                  ``DIRECTOR OF SCIENCE AND TECHNOLOGY


    ``Sec. 103E. (a) Director of Science and Technology.--There

is a Director of Science and Technology within the Office of

the Director of National Intelligence who shall be appointed by

the Director of National Intelligence.

    ``(b) Requirement Relating to Appointment.--An individual

appointed as Director of Science and Technology shall have a

professional background and experience appropriate for the

duties of the Director of Science and Technology.

    ``(c) Duties.--The Director of Science and Technology

shall--

            ``(1) act as the chief representative of the

        Director of National Intelligence for science and

        technology;

            ``(2) chair the Director of National Intelligence

        Science and Technology Committee under subsection (d);

            ``(3) assist the Director in formulating a long-

        term strategy for scientific advances in the field of

        intelligence;

            ``(4) assist the Director on the science and

        technology elements of the budget of the Office of the

        Director of National Intelligence; and

            ``(5) perform other such duties as may be

        prescribed by the Director of National Intelligence or

        specified by law.

    ``(d) Director of National Intelligence Science and

Technology Committee.--(1) There is within the Office of the

Director of Science and Technology a Director of National

Intelligence Science and Technology Committee.

    ``(2) The Committee shall be composed of the principal

science officers of the National Intelligence Program.

    ``(3) The Committee shall--

            ``(A) coordinate advances in research and

        development related to intelligence; and

            ``(B) perform such other functions as the Director

        of Science and Technology shall prescribe.


                ``NATIONAL COUNTERINTELLIGENCE EXECUTIVE


    ``Sec. 103F. (a) National Counterintelligence Executive.--

The National Counterintelligence Executive under section 902 of

the Counterintelligence Enhancement Act of 2002 (title IX of

Public Law 107-306; 50 U.S.C. 402b et seq.) is a component of

the Office of the Director of National Intelligence.

    ``(b) Duties.--The National Counterintelligence Executive

shall perform the duties provided in the Counterintelligence

Enhancement Act of 2002 and such other duties as may be

prescribed by the Director of National Intelligence or

specified by law.


                     ``CENTRAL INTELLIGENCE AGENCY


    ``Sec. 104. (a) Central Intelligence Agency.--There is a

Central Intelligence Agency.

    ``(b) Function.--The function of the Central Intelligence

Agency is to assist the Director of the Central Intelligence

Agency in carrying out the responsibilities specified in

section 104A(c).


             ``DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY


    ``Sec. 104A. (a) Director of Central Intelligence Agency.--

There is a Director of the Central Intelligence Agency who

shall be appointed by the President, by and with the advice and

consent of the Senate.

    ``(b) Supervision.--The Director of the Central

Intelligence Agency shall report to the Director of National

Intelligence regarding the activities of the Central

Intelligence Agency.

    ``(c) Duties.--The Director of the Central Intelligence

Agency shall--

            ``(1) serve as the head of the Central Intelligence

        Agency; and

            ``(2) carry out the responsibilities specified in

        subsection (d).

    ``(d) Responsibilities.--The Director of the Central

Intelligence Agency shall--

            ``(1) collect intelligence through human sources

        and by other appropriate means, except that the

        Director of the Central Intelligence Agency shall have

        no police, subpoena, or law enforcement powers or

        internal security functions;

            ``(2) correlate and evaluate intelligence related

        to the national security and provide appropriate

        dissemination of such intelligence;

            ``(3) provide overall direction for and

        coordination of the collection of national intelligence

        outside the United States through human sources by

        elements of the intelligence community authorized to

        undertake such collection and, in coordination with

        other departments, agencies, or elements of the United

        States Government which are authorized to undertake

        such collection, ensure that the most effective use is

        made of resources and that appropriate account is taken

        of the risks to the United States and those involved in

        such collection; and

            ``(4) perform such other functions and duties

        related to intelligence affecting the national security

        as the President or the Director of National

        Intelligence may direct.

    ``(e) Termination of Employment of CIA Employees.--(1)

Notwithstanding the provisions of any other law, the Director

of the Central Intelligence Agency may, in the discretion of

the Director, terminate the employment of any officer or

employee of the Central Intelligence Agency whenever the

Director deems the termination of employment of such officer or

employee necessary or advisable in the interests of the United

States.

    ``(2) Any termination of employment of an officer or

employee under paragraph (1) shall not affect the right of the

officer or employee to seek or accept employment in any other

department, agency, or element of the United States Government

if declared eligible for such employment by the Office of

Personnel Management.

    ``(f) Coordination With Foreign Governments.--Under the

direction of the Director of National Intelligence and in a

manner consistent with section 207 of the Foreign Service Act

of 1980 (22 U.S.C. 3927), the Director of the Central

Intelligence Agency shall coordinate the relationships between

elements of the intelligence community and the intelligence or

security services of foreign governments or international

organizations on all matters involving intelligence related to

the national security or involving intelligence acquired

through clandestine means.''.

    (b) Sense of Congress.--It is the sense of Congress that--

            (1) the human intelligence officers of the

        intelligence community have performed admirably and

        honorably in the face of great personal dangers;

            (2) during an extended period of unprecedented

        investment and improvements in technical collection

        means, the human intelligence capabilities of the

        United States have not received the necessary and

        commensurate priorities;

            (3) human intelligence is becoming an increasingly

        important capability to provide information on the

        asymmetric threats to the national security of the

        United States;

            (4) the continued development and improvement of a

        robust and empowered and flexible human intelligence

        work force is critical to identifying, understanding,

        and countering the plans and intentions of the

        adversaries of the United States; and

            (5) an increased emphasis on, and resources applied

        to, enhancing the depth and breadth of human

        intelligence capabilities of the United States

        intelligence community must be among the top priorities

        of the Director of National Intelligence.

    (c) Transformation of Central Intelligence Agency.--The

Director of the Central Intelligence Agency shall, in

accordance with standards developed by the Director in

consultation with the Director of National Intelligence--

            (1) enhance the analytic, human intelligence, and

        other capabilities of the Central Intelligence Agency;

            (2) develop and maintain an effective language

        program within the Agency;

            (3) emphasize the hiring of personnel of diverse

        backgrounds for purposes of improving the capabilities

        of the Agency;

            (4) establish and maintain effective relationships

        between human intelligence and signals intelligence

        within the Agency at the operational level; and

            (5) achieve a more effective balance within the

        Agency with respect to unilateral operations and

        liaison operations.

    (d) Report.--(1) Not later than 180 days after the date of

the enactment of this Act, the Director of the Central

Intelligence Agency shall submit to the Director of National

Intelligence and the congressional intelligence committees a

report setting forth the following:

            (A) A strategy for improving the conduct of

        analysis (including strategic analysis) by the Central

        Intelligence Agency, and the progress of the Agency in

        implementing that strategy.

            (B) A strategy for improving the human intelligence

        and other capabilities of the Agency, and the progress

        of the Agency in implementing that strategy.

    (2)(A) The information in the report under paragraph (1) on

the strategy referred to in paragraph (1)(B) shall--

            (i) identify the number and types of personnel

        required to implement that strategy;

            (ii) include a plan for the recruitment, training,

        equipping, and deployment of such personnel; and

            (iii) set forth an estimate of the costs of such

        activities.

    (B) If as of the date of the report under paragraph (1), a

proper balance does not exist between unilateral operations and

liaison operations, such report shall set forth the steps to be

taken to achieve such balance.


                                                                                                                                                                                                

 Contents  





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