Summary
S. 2845, the National Intelligence Reform Act, would initiate reforms of the intelligence
community based upon the recommendations of the National Commission on Terrorist
Attacks Upon the United States (the "9-11 Commission"). The bill would create a
National Intelligence Director (NID) to oversee the activities of the national intelligence
community, and would endow the NID with budgetary and personnel authorities to carry
out his or her responsibilities. The legislation would also create a National
Counterterrorism Center, initiate reforms to the Federal Bureau of Investigation and the
Central Intelligence Agency, create mechanisms designed to facilitate more effective
information sharing, establish mechanisms to protect civil liberties and privacy, and take
other steps to improve the performance of the intelligence community.
Major Provisions
Title I: National Intelligence Authority
National Intelligence Authority. S. 2845 would establish a National Intelligence
Authority (NIA) as an independent entity within the executive branch of government, to
consist of the Office of the National Intelligence Director, the National Counterterrorism
Center, National Intelligence Centers, an ombudsman, and an inspector general. The
primary mission of the NIA would be to unify, coordinate, and organize the intelligence
community, facilitate information sharing among the intelligence agencies, and to
establish responsibility and accountability for counterterrorism and other national
security priorities.
National Intelligence Director. The National Intelligence Director (NID) - who would
be expressly prohibited from being located in the Executive Office of the President -
would be a presidentially appointed, Senate confirmed official separate from the Central
Intelligence Agency Director, and would be charged with managing the National
Intelligence Program (NIP). The NIP would be defined to include all programs, projects,
and activities of the intelligence community concerned with "national" intelligence (that
is, intelligence pertaining to the interests of more than one executive department). The
NIP would also include the entire budgets of national intelligence agencies like the CIA,
NSA, NGA, NRO, FBI Office of Intelligence, and DHS Office of Information Analysis.
The NIP would not include any program, project, or activity of the military departments
used to acquire intelligence principally for joint or tactical military operations. The NID
would head the NIA and act as the principal advisor to the president for intelligence
matters related to national security.
Responsibilities and Authorities of the National Intelligence Director. The NID
would be responsible for the following: 1) providing the President, Congress, and other
officials with national intelligence; 2) determining the annual budget for intelligence and
related activities; 3) managing and overseeing the National Intelligence Program, the
National Counterterrorism Center, and National Intelligence Centers; 4) establishing the
requirements and priorities for national intelligence collection, analysis, and
dissemination; 5) issuing and managing collection and analysis tasking, and resolving
tasking conflicts within the NIP; 6) developing and implementing, in consultation with
department and agency heads, personnel policies applicable across the intelligence
community; and 7) facilitating information sharing, inter-agency coordination, and other
means of ensuring efficient and effective intelligence community functioning.
The NID would be given the following authority to enable him or her to carry out these
responsibilities:
- Access to any intelligence gathered by any agency within the intelligence
community, unless otherwise directed by the President;
- Ability to determine the budgets for intelligence and related activities by
developing and presenting to the President, after consultation with department
heads, an annual budget for the NIP and providing guidance on the development
of annual budgets within the intelligence community outside of the NIP;
- Management and oversight of funds appropriated to the National Intelligence
Program;
- Authority to transfer and reprogram funds within the National Intelligence
Program to items of higher intelligence priority and within applicable ceilings
established in law, after consulting with affected department heads and receiving
approval from the Office of Management and Budget (OMB);
- Authority to transfer personnel to functions of higher intelligence priority, within
the same constraints;
- Ability to provide incentives, rewards, promotions, and other means of
encouraging intelligence personnel to serve in certain capacities as detailed by
the NID;
- Establish and train a National Intelligence Reserve Corps to provide for
voluntary, temporary reemployment of certain former employees during a time of
emergency; and
- Authority to recommend candidates for filling a vacancy for Central Intelligence
Agency Director; authority to recommend, with the concurrence of the Secretary
of Defense, candidates for vacancies for Directors of the National Security
Agency, National Reconnaissance Office, and National Geospatial-Intelligence
Office; and the right to concur in the recommendation or appointment for filling
vacancies for Undersecretary of Defense for Intelligence, Assistant Secretary of
Homeland Security for Information Analysis, Director of the Defense Intelligence
Agency, and Executive Assistant Director for Intelligence of the Federal Bureau
of Investigation.
Office of the National Intelligence Director. The bill would provide for a Principal
Deputy NID, who would be appointed by the President and confirmed by the Senate
and who would exercise the powers of the NID during absence or vacancy. The bill
would also provide for up to four additional Deputy National Intelligence Directors,
appointed by the President, to carry out duties assigned by the NID.
National Intelligence Council. The bill would move the National Intelligence Council
to the Office of the NID. The NID would appoint the National Intelligence Council,
composed of senior intelligence community analysts. The Council would be responsible
for producing national intelligence estimates for the U.S. government and for evaluating
community-wide collection and production of intelligence. The bill includes certain
provisions to protect alternative judgments within national intelligence estimates.
National Counterterrorism Center. The bill would establish a National
Counterterrorism Center (NCTC) designed to develop and unify strategy for military and
civilian government counterterrorism efforts, integrate counterterrorism intelligence
activities, and develop interagency counterterrorism plans. The NCTC would be
managed by a Director who would serve as principal advisor to the President and NID
on matters relating to joint counterterrorism operations. The Director would advise the
President and NID on counterterrorism budget and program decisions, as well as
personnel decisions related to counterterrorism intelligence functions. The Director
would be appointed by the President and confirmed by the Senate, and would serve in
a capacity equivalent to Deputy Secretary.
National Intelligence Centers. The bill would provide the NID authority to create
National Intelligence Centers designed to integrate capabilities from across the
intelligence community in order to accomplish certain intelligence missions. Each
center will have primary responsibility for providing all-source analysis of intelligence
and proposing collection requirements on a particular topic (e.g., weapons of mass
destruction or the Middle East) that reflects the National Security Council priorities for
intelligence collection and analysis. The centers will be staffed by personnel from the
intelligence agencies and by employees hired by the NID, and will be managed by
Directors appointed by the NID.
Other officials to assist the NID. The bill would provide the NID with an office
composed of key officials necessary for managing the National Intelligence Program. In
addition to directors and staff of the National Counterterrorism Center and National
Intelligence Centers, and members of the National Intelligence Council, the bill would
provide for a general counsel, a comptroller, a chief information officer, a civil liberties
officer, and a privacy officer. An Office of Inspector General and an Ombudsman would
be created outside of the Office of the NID to address concerns about politicized
intelligence.
Education and training of intelligence community personnel. The bill would create
an Intelligence Community Scholarship Program designed to attract meritorious
individuals with a demonstrated commitment to related fields of study to institutes of
higher learning with the requirement that such individuals serve for a specified length of
time in the intelligence community following completion of their degrees.
Title II: Other Improvements of Intelligence Activities
Intelligence budget transparency. S. 2845 would require that the National
Intelligence Program's top-line aggregate appropriation figure be declassified in order
to promote public accountability. The NID would be required to submit a report to
Congress on whether declassifying the top-line appropriations figures for each agency
within the intelligence community would harm national security.
Joint Intelligence Community Council. The bill would create a cabinet-level Joint
Intelligence Community Council (JICC). The JICC would be chaired by the NID, and
would include the Secretaries of State, Treasury, Defense, Energy, and Homeland
Security, the Attorney General, and any other officers designated by the President. The
purpose of the Council would be to assist the NID to develop a joint, unified national
intelligence effort by advising the NID on budgets and other issues and ensuring the
timely execution of programs, policies, and directives developed by the NID.
Federal Bureau of Investigation reform. The legislation includes provisions designed
to strengthen the capability of the Federal Bureau of Investigation (FBI) to conduct
intelligence collection and analysis. It would create a national security workforce and
ensure that each FBI field office has a senior official responsible for intelligence
matters. It would also require the FBI to provide basic training to all new agents in both
criminal justice and national security matters, and to establish career positions in
national intelligence matters for agents and analysts. In addition, it would require the
Director of the FBI to report to Congress on progress made in implementing the
provisions of the legislation.
Information sharing. The legislation would require that the President establish an
information network designed to break down existing stovepipes that currently impede
the flow of information within the intelligence community. The network, which is to be
implemented by the Director of the Office of Management and Budget (OMB), is to
consist of policies and information technology designed to facilitate and promote the
sharing of intelligence and homeland security information throughout the federal
government, with state and local agencies, and with the private sector where
appropriate.
The bill would also require the President to issue guidelines governing the collection,
sharing, and use of intelligence and homeland security information, as well as
guidelines to protect privacy and civil liberties. In addition, the bill would establish an
Executive Council on Information Sharing composed of key federal officials, state and
local representatives, and private sector representatives. The Council would work with
the OMB Director to implement the network and coordinate efforts. Finally, the bill
would establish an Advisory Board on Information Sharing, composed of outside
experts, to provide advice and expertise to the President and Executive Council. The
bill would authorize $50 million in appropriations for Fiscal Year 2005 to enable the
OMB Director to carry out these provisions.
Privacy and Civil Liberties Oversight Board. The bill would establish a Privacy and
Civil Liberties Oversight Board entrusted with two functions: 1) advising the President
and other officials as they develop or implement policies related to counterterrorism
efforts to ensure that privacy and civil liberties concerns are appropriately considered;
and 2) investigating and reviewing government actions to determine whether privacy
and civil liberties have been adequately protected.
In conducting investigations, the board would be given the authority to obtain
documents and to access personnel from government agencies, as well as the authority
to subpoena documents and testimony from outside the government. The board would
also review and assess reports of Privacy and Civil Liberties Officers, and coordinate
activities with such officers. Members of the board would be appointed by the President
to six-year terms, with no more than three of the five members appointed from the
same political party.
Privacy and Civil Liberties Officers. The bill would also require that heads of certain
federal agencies involved in counterterrorism activities designate one or more senior
agency officials to serve as privacy and civil liberties officers for the agencies. These
officers are to advise the agencies in appropriately considering privacy and civil liberties
concerns during the development and implementation of counterterrorism policies, to
investigate and review agency actions and policy implementation to determine whether
privacy and civil liberties have been adequately protected, and to ensure that agencies
have adequate mechanisms in place to review and respond to complaints.
Congressional Oversight. The bill would require that the NID provide Congress with
intelligence assessments and other intelligence materials that it needs to perform its
legislative and oversight roles.
Title III: Modifications of Laws Relating to Intelligence Community
Management
Central Intelligence Agency reform. S. 2845 would require the Central Intelligence
Agency (CIA) to enhance its analytic and human intelligence capabilities, develop and
maintain an effective language program, and achieve a more effective balance with
respect to unilateral and liaison operations. The Director of the CIA would be required
to submit reports to Congress about progress in these and other areas. Under the
provisions of this bill, the CIA would continue to coordinate relationships with foreign
intelligence and security services, but would do so with oversight and direction from the
NID. The CIA Director would now report to the NID.
Administrative transfers. The bill would transfer the Office of the Deputy Director of
Central Intelligence for Community Management, the National Counterintelligence
Executive, and the Office of the National Counterintelligence Executive to the Office of
the NID. It would transfer the Terrorist Threat Integration Center (TTIC) to the NCTC.
And it would abolish the positions of Assistant Directors of Central Intelligence for
Collection, for Analysis and Production, and for Administration.
Implementation reports. The bill would require the NID and the comptroller general to
report on progress made in implementing the reforms provided by the legislation.
Authorization of appropriations. The bill would authorize to be appropriated in Fiscal
Year 2005 such sums as are necessary for carrying out the provisions of the bill.
Legislative History
On September 24, 2004, S. 2845 was placed on the calendar under the provisions of
Rule XIV, in order to avoid a sequential referral to the Senate Intelligence Committee of
S. 2840, the bill reported by the Senate Governmental Affairs Committee.
On September 22, 2004, the Senate Governmental Affairs Committee unanimously
voted to favorably report S. 2480, which is identical to S. 2845, to the full Senate for
consideration.
Several intelligence community reform bills, including H.R. 5024, H.R. 5040, and
H.R. 5050, have been introduced in the House of Representatives; however, no
intelligence reform legislation has been reported out of any House committee as of
press time.
Statement of Administration Policy
As of press time, a Statement of Administration Policy has not been released.
Possible Amendments
1. Senators Lieberman and McCain will offer an amendment or series of
amendments designed to implement the recommendations of the 9-11
Commission that are not addressed by S. 2845. The amendment(s) will be
based on the McCain-Lieberman bill S. 2774, the 9/11 Commission Report
Implementation Act.
2. Senator Wyden will introduce an amendment to create a national security
classification review board. The 3-person board would establish new standards
for national security classification government-wide, and serve as an appeals
board to which both the executive and legislative branches could appeal national
security classification decisions. The amendment will be identical to S. 2672, the
Independent National Security Classification Board Act, introduced by Senator
Wyden earlier this year.
3. Senator Grassley will introduce an amendment to expand the scope of the
Racketeer Influenced and Corrupt Organization Act to cover acts or threats
involving burglary, embezzlement, and fraud in the purchase of securities. The
amendment will be identical to S. 1837, the Combating Money Laundering and
Terrorist Financing Act, introduced by Senator Grassley earlier this year.
The DPC will distribute information on other possible amendments as it becomes
available.
