On Thursday, May 31, 2012, the House is scheduled to consider H.R. 5743 under a rule.  The rule is expected to outline terms for general debate and to make in order a number of amendments submitted to the Rules Committee for consideration.  Summaries of the amendments made in order will be distributed at a later time.  The bill was introduced by Rep. Mike Rogers (R-MI) on May 15, 2012, and referred to the Permanent Select Committee on Intelligence.  The committee held a mark-up session on May 17, 2012, and ordered the bill to be reported by a vote of 19-0.

H.R. 5743 would authorize the intelligence activities of the United States government for Fiscal Year 2013.  This bill would fund the requirements of the men and women of the Intelligence Community (military and civilian), many of whom directly support the war zones or are engaged in other dangerous operations to keep Americans safe.  These activities are intended to enhance national security, support and assist the Armed Forces, and facilitate U.S. foreign policy. 

The bill would provide budget authority and personnel manning levels for the conduct of intelligence activities in the amounts specified in the Classified Schedule of Authorizations, as incorporated by reference in section 102. 

The bill would authorize $530.6 million in FY2012 for the Director of National Intelligence’s (DNI) Intelligence Community Management Account, as well as 831 full-time personnel for this account.  This is the principal source of funding for the Office of the Director of National Intelligence and provides resources for the coordination of programs, budget oversight, and management of the intelligence agencies.  Additionally, the bill would provide additional flexibility for the DNI in managing the civilian personnel of the Intelligence Community. 

The bill would also authorize appropriation of $514 million for the Central Intelligence Agency Retirements and Disability System for FY2013.

GENERAL PROVISIONS

Increase in employee benefits: The bill would provide that appropriations authorized for pay and benefits for Federal employees may be increased as necessary for increases in such compensation as authorized by law.

Restriction on conduct of intelligence activities: The bill would prohibit authorization of appropriations by the Act from constituting authority to conduct any activities not otherwise authorized by the Constitution or laws of the United States.

Repeal or modification of certain reporting requirements: The bill would make a number of changes to reporting requirements of various statutes applicable to the intelligence community.

MATTERS RELATING TO ELEMENTS OF THE INTELLIGENCE COMMUNITY

Central Intelligence Agency: The bill would authorize the CIA to transfer funds appropriated to the Agency for the purpose of Agency activities authorized by law. 

The bill would also expand the authority of the CIA’s Inspector General to designate an officer or employee as a law enforcement officer solely for the purposes certain retirement provisions of the U.S. Code.  The committee report (H. Rept. 112-290) noted: “The CIA IG has identified a need for experienced criminal investigators to fulfill its mission, which includes a variety of criminal, civil and regulatory investigations similar to other inspectors general offices in the Executive Branch. The IG indicated that his office was at a distinct disadvantage in particular when trying to hire experienced investigators from other law enforcement agencies because most are not willing to give up their law enforcement benefits to do so.”

Intelligence community assistance to counter drug trafficking organizations: The bill would modify a requirement of the Intelligence Authorization for Fiscal Year 2012 (P.L. 112-87) requiring a report on the intelligence community’s support for combating drug trafficking organizations using public lands.  That provision required the DNI to consult with the heads of the Federal land management agencies on the appropriate actions the intelligence community can take to assist such agencies in responding to the threat from covered entities that are currently or have previously used public lands in the United States to further the operations of such entities. This year's provision would extend the one-time reporting requirement to an annual one, but would change the form to allow for briefings or another informational mechanism to alleviate the burden of an additional formal reporting requirement.

OTHER MATTERS

The bill would extend the National Commission for the Review of Research and Development Programs of the U.S. Intelligence Community, and would make a number of technical amendments to the National Security Act of 1947.

The primary vehicle for exercising credible congressional oversight over the intelligence agencies is the intelligence authorization bill.  The Fiscal Year 2013 Intelligence Authorization bill represents a return to regular order for the Committee. After nearly six years without a full bill and classified annex authorizing the Intelligence Community's (IC's) classified programs, the Committee worked together on a bipartisan basis to pass the Fiscal Year 2011 and Fiscal Year 2012 intelligence authorization bills on a compressed timeframe. This year, however, the Committee returned to regular order.  The current challenging fiscal environment demands the accountability and financial oversight of our classified intelligence programs that can only come with an intelligence authorization bill.

The bill authorizes Fiscal Year 2013 programs and funding levels for the Intelligence Community, as well as foreign intelligence activities of the Department of Defense, Federal Bureau of Investigation, State Department, and Department of Homeland Security.  The United States Intelligence Community consists of 16 agencies including the Central Intelligence Agency (CIA), the Defense Intelligence Agency (DIA), the National Security Agency (NSA), and the National Reconnaissance Office (NRO).

The bill provides authorization for critical national security functions, including: CIA personnel and their activities worldwide; tactical intelligence support to combat units in Afghanistan and Iraq; NSA's signals intelligence and network defense missions; global monitoring of foreign militaries, weapons tests, and arms control treaties, including use of satellites and radars; real-time analysis and reporting on political and economic events; and research and technology to maintain the country's technological edge, including work on code breaking, listening devices, and satellites.

As most of that budget involves highly classified programs, the bulk of this Committee's recommendations each year are found in the classified annex to the bill. This year's annex includes increased funding for counterintelligence against spies; authorizes the new Defense Clandestine Service; enhances counterterrorism efforts to continue the fight against al Qaeda and its affiliates around the world; increases oversight on the spending of domestic intelligence agencies; and supports global coverage initiatives of the IC to ensure the U.S. is postured to address emerging issues and threats around the world.  Several portions of this bill are classified—the classified annex to the legislation contains specific funding and personnel levels for intelligence programs.  The annex is available to members in HVC-304.

The legislative provisions that the Committee and Congress consider each year are comprised of changes to statute that serve two primary goals: (1) To better enable the Community to conduct its important mission and (2) To strengthen oversight mechanisms where needed as a result of the Committee's oversight throughout the year.   

The following was provided courtesy of the House Permanent Select Committee on Intelligence:

Extensive bipartisan cooperation and support has produced a bill that is significantly below last year’s enacted budget, but up modestly from the President’s budget request, and is completely in line with the House Budget Resolution.  It holds personnel at last year’s levels and authorizes an initiative to achieve major efficiencies and improved performance in Information Technology. 

The bill also:

• Increases funding for counterintelligence against foreign spies
• Authorizes the new Defense Clandestine Service
• Enhances counter terrorism efforts to continue the fight against al Qaeda and its affiliates around the world
• Increases oversight on the spending of domestic intelligence agencies
• Supports global coverage initiatives of the Intelligence Community to ensure the US is postured to address emerging issues and threats around the world

“The strong bipartisan vote in committee today as we marked up the FY13 authorization bill, reaffirms to our men and women in the field that the committee is united in ensuring that our Intelligence Community has the tools it needs to keep America safe,” said Chairman Rogers.

Because the Congressional Budget Office (CBO) does not provide estimates for classified programs, their cost estimate for H.R. 5743 addresses only the unclassified portions of the bill.  On that limited basis, CBO estimates that spending subject to appropriations under section 103 of the bill, providing funding for the Intelligence Community Management Account (ICMA), would total $531 million.  CBO estimates that implementing this provision would cost $525 million over the 2013-2017 period, assuming appropriation of specified amounts.    

Additionally, CBO estimates that the bill would authorize the appropriation of $514 million in direct spending to the Central Intelligence Agency Retirement and Disability System (CIARDS).  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, the CBO estimate states that the bill would have an insignificant effect on direct spending and the bill would not affect revenues.

Lastly, CBO states that enacting H.R. 5743 would affect direct spending; therefore, pay-as-you-go procedures apply. Section 403 of the bill would permit the Central Intelligence Agency to retain and spend receipts from the sale of recyclable materials through the agency’s working capital fund.  CBO estimates that the net effect of this provision would be insignificant for each year and in total over the 2013-2022 period. Enacting the bill would not affect revenues.

Amendment No. 1—Rep. Rogers (R-MI): This amendment would strike sections 401 and 403 to ensure the bill complies with House rules relating to provisions regarding appropriated funds.

Amendment No. 2—Rep. Thompson (D-CA): This amendment would require the Director of National Intelligence to report to Congress how the Intelligence Community can improve the methods by which subcontractors are granted security clearances and notified of classified contracting opportunities within the federal government.

Amendment No. 3— Reps. Conyers (D-MI), Ellison (D-MN), and Lee (D-CA): This amendment would require the Director of National Intelligence to submit to the congressional intelligence committees within 60 days a report assessing the consequences of a military strike against Iran.

Amendment No. 4—Rep. Farr (D-CA): This amendment would state that those assigned to lead the development of training, tools, and methodologies in support of cybersecurity, should be reminded to include foreign language and culture in the development process.

Amendment No. 5—Rep. Cuellar (D-TX): This amendment would authorize the Director of National Intelligence to participate in information sharing with Mexico and Canada for purposes of border security and combating drug trafficking.

Amendment No. 6—Rep. Hahn (D-CA): The amendment would require the Civil Liberties Protection Officer to ensure that the coordination and training between the intelligence community and local law enforcement agencies does not violate the constitutional rights of racial and ethnic minorities.

Amendment No. 7— Rep. Jackson-Lee (D-TX): This amendment would state that the Director of the Central Intelligence Agency (CIA) should take actions the Director considers necessary to increase the recruitment and training of ethnic minorities as officers and employees of the CIA.

Amendment No. 8—Rep. Jackson-Lee (D-TX): This amendment would state that the intelligence community should take all appropriate actions necessary to protect the civil liberties of religious and ethnic minorities.

Amendment No. 9—Reps. Myrick (R-NC) and Wolf (R-VA): This amendment would require a report from the Director of National Intelligence identifying and assessing various risks in information technology supply chains.