[Senate Report 108-80]
[From the U.S. Government Publishing Office]
Calendar No. 172
108th Congress Report
SENATE
1st Session 108-80
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INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2004
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June 26, 2003.--Ordered to be printed
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Mr. Warner, from the Committee on Armed Services, submitted the
following
R E P O R T
[To accompany S. 1025]
The Committee on Armed Services, to which was referred the
bill (S. 1025) to authorize appropriations for fiscal year 2004
for intelligence and intelligence-related activities of the
United States Government, the Community Management Account, and
the Central Intelligence Agency Retirement and Disability
System, and for other purposes, having considered the same,
reports favorably thereon with amendments and recommends that
the bill, as amended, do pass.
PURPOSE OF THE BILL
S. 1025 would authorize appropriations and other matters
for Fiscal Year 2004 for intelligence activities of the United
States, including certain Department of Defense intelligence-
related activities within the jurisdiction of the Senate Armed
Services Committee.
The Senate Select Committee on Intelligence reported the
bill on May 8, 2003, and it was referred to the Committee on
Armed Services in accordance with section 3(b) of Senate
Resolution 400, 94th Congress.
SCOPE OF THE COMMITTEE REVIEW
The committee has carefully reviewed the Intelligence
Authorization Act for Fiscal Year 2004 and the Senate report to
accompany S. 1025 (S. Rept. 108-44). The total amount within
the jurisdiction of the Committee on Armed Services recommended
for the National Foreign Intelligence Program has been
incorporated into the budget tables in the Senate Amendment to
H.R. 1588, the National Defense Authorization Act for Fiscal
Year 2004, which the Senate passed on June 4, 2003.
The following explains the committee's proposed amendments
to the bill, as reported by the Senate Select Committee on
Intelligence, as well as the committee's clarification to the
report issued by the Senate Select Committee on Intelligence.
Classified annex to the committee report
The committee has prepared a classified annex to this
report that describes other recommendations and concerns that
are classified in nature.
Operational files of the National Security Agency
Section 501 of S. 1025 would exempt certain files of the
National Security Agency from review and disclosure under
current Freedom of Information Act (FOIA) procedures. The
National Defense Authorization Act for Fiscal Year 2004 (S.
1050) contains a similar provision, Section 1035 of S. 1050.
Based on discussions with the National Security Agency (NSA)
and private citizens concerned about rightful access to
unclassified and declassified holdings, the Senate Armed
Services Committee amended its original provision to
specifically define which files within the National Security
Agency would be exempted, ensuring that highly sensitive files
within two directorates at NSA that contain technical
information about U.S. intelligence collection capabilities are
exempt until declassified, but that all other files at NSA
remain subject to normal FOIA procedures. The committee's
proposed amendment to S. 1025 would substitute the language
contained in Section 1035 of S. 1050 for the language contained
in the Intelligence Authorization Act for Fiscal Year 2004 (S.
1025), as reported by the Senate Select Committee on
Intelligence.
Provision of living quarters for certain students working at National
Security Agency laboratory
Section 502 of S. 1025 would authorize the National
Security Agency (NSA) to provide, and if necessary subsidize,
living quarters for certain students working in NSA
laboratories. The National Defense Authorization Act for Fiscal
Year 2004 (S. 1050) contains a similar provision, Section 1034.
The provision would amend Section 2195 of title 10, United
States Code, which is the responsibility of the Committee on
Armed Services of the Senate. The committee's proposed
amendment to S. 1025 would strike thelanguage contained in
Section 502. This provision will be addressed by the committee of
conference on the National Defense Authorization Act for Fiscal Year
2004.
Authority to enter into personal services contracts
Section 504 of S. 1025 would authorize Intelligence
Community elements of the Department of Defense to enter into
personal services contracts in order to address temporary needs
for additional personnel with specific expertise to meet
unanticipated, operational requirements. The National Defense
Authorization Act for Fiscal Year 2004 (S. 1050) contains a
similar provision, Section 813. The committee's proposed
amendment to S. 1025 would strike the language contained in
Section 504. The committee believes that the language contained
in Section 813 of S. 1050 is a more comprehensive provision
that would amend title 10, United States Code, and would apply
not only to intelligence elements of the Department of Defense,
but also to certain activities of U.S. Special Operations
Command. This provision will be addressed by the committee of
conference on the National Defense Authorization Act for Fiscal
Year 2004.
Defense Finance and Accounting Service and the National Security Agency
The committee takes note of the concerns about financial
and accounting practices at the National Security Agency (NSA)
expressed by the Senate Select Committee on Intelligence in
their report (S. Rept. 108-44). As as matter of more efficient
and uniform financial and accounting practices within the
Department of Defense (DOD), the Defense Finance and Accounting
Service (DFAS) is considering moving certain aspects of NSA
finance and accounting support centers under the more
centralized control of DFAS. Jurisdiction over DFAS and
accounting practices of the Department of Defense lies within
the exclusive practices of the Department of Defense lies
within the exclusion jurisdiction of the Committee on Armed
Services of the Senate. The committee does not agree with the
need for the Department of Defense to seek approval of the
Senate Select Committee on Intelligence to improve, streamline
and standardize financial and accounting practices across the
Department. The Department should look to the Committee on
Armed Services of the Senate for oversight and any required
approval of plans to alter current finance and accounting
procedures. The committee will consult with the Senate Select
Committee on Intelligence regarding significant changes. The
committee fully supports the Department of Defense's efforts to
improve department-wide financial management and
accountability. As DOD implements its financial management
modernization effort, the Committee expects the Department to
ensure that classified financial information at NSA is
adequately protected, and all NSA financial information, as
well as that of all Defense Agencies, is reviewed and processed
in a manner that provides for greater accountability,
efficiency, and oversight by DOD.
COMMITTEE ACTION
In accordance with the Legislative Reorganization Act of
1946, as amended by the Legislative Reorganization Act of 1970,
the committee approved a motion to report favorably to the
Senate S. 1025, with an amendment.
FISCAL DATA
The committee will publish in the Congressional Record
information on five-year cost projections when such information
is received from the Congressional Budget Office.
REGULATORY IMPACT
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires that a report on the regulatory impact of a
bill be included in the report on the bill. The committee finds
that there is no regulatory impact in the cost of S. 1025, the
Intelligence Authorization Act for Fiscal Year 2004.
CHANGES IN EXISTING LAW
Pursuant to the provisions of paragraph 12 of rule XXVI of
the Standing Rules of the Senate, the changes in existing law
made by certain portions of the bill have not been shown in
this section of the report because, in the opinion of the
committee, it is necessary to dispense with showing such
changes in order to expedite the business of the Senate and
reduce the expenditure of funds.