On Friday, May 30, 2014, the House will consider H.R. 4681, the Intelligence Authorization Act for Fiscal Years 2014 and 2015, under a rule. H.R. 4681 was introduced on May 20, 2014 by Rep. Mike Rogers (R-MI) and was referred to the House Permanent Select Committee on Intelligence. The bill was marked up on May 22, 2014 and was ordered reported, as amended, by a voice vote.
 Committee Report 113-463.
*Note: The classified annexes associated with H.R. 4681 “include the classified schedules of authorizations and their associated explanatory language.” They are available for Member review in HVC 304. To ensure appropriate space and staffing, Members should call the Intelligence Committee to schedule a time: #54121.
H.R. 4681 authorizes appropriations for all U.S. intelligence activities. Funding levels authorized for FY2014 are slightly below those requested by the President. Levels authorized for FY2015 increase the President’s request by less than one percent, while complying with the funding caps established in the Bipartisan Budget Act. Select provisions of the unclassified portion of H.R. 4681 are highlighted below and a section-by-section analysis of the bill is available here (pp. 21-27).
Funds authorized for the Intelligence Community Management Account (ICMA): Authorizes appropriations of $528 million and $505 million for FY 2014 and 2015, respectively, for the ICMA. “The ICMA provides the principal source of funding for the Office of the Director of National Intelligence and resources for managing the intelligence agencies.”
Funds authorized for the CIA Retirement and Disability System: Authorizes appropriations of $514 million for the CIA Retirement and Disability System for each of FY2014 and 2015.
Exemption from FOIA of employees submitting claims to Inspector General: Clarifies that the identities of employees who submit complaints to the Inspector General of the Intelligence Community (IC) are exempted from the Freedom of Information Act (FOIA).
Plan to respond to unauthorized disclosures of covert actions: Requires the President to establish a written plan for responding to unauthorized disclosures of each type of activity within a covert action program.
Financial audits of certain elements of the IC: Requires a full financial audit of the following elements of the IC: the Office of the Director of National Intelligence, the Central Intelligence Agency, the Defense Intelligence Agency, the National Security Agency, the National Reconnaissance Office, and the National Geospatial-Intelligence Agency. Audits may be conducted by an internal or external independent accounting or auditing organization and must begin with FY 2014. Results must be reported to congressional intelligence committees.
Extension of Public Interest Declassification Board: Extends authorization for the Public Interest Declassification Board through December 31, 2018. “The board advises the President on the government’s standards and procedures for releasing and declassifying information.” Current authority is set to expire on December 31, 2014.
Declassification review of bin Laden documents: Requires DNI to complete a declassification review of documents collected in Abbottabad, Pakistan, during the mission that killed Osama bin Laden on May 1, 2011, and make publicly available any information declassified as a result of the review. The DNI must report the results to Congress and provide justification for any information not declassified.
Annual report on violations of law or executive order: Requires the DNI to submit an annual report to congressional intelligence committees on violations of law or executive order by IC personnel identified during the previous year.
Reports on Syria’s chemical weapons program: Directs the DNI to submit to Congress within 30 days a report on the Syrian chemical weapons program. For 18 months following the bill’s enactment, the DNI must provide progress reports every 90 days on any material updates.
Reporting on penetrations of contractors’ networks and information systems: Directs the DNI to establish procedures that require cleared IC contractors to report unauthorized penetrations of certain networks or information systems. The procedures must also allow the government to access such systems to perform forensic analysis.
Promotion of STEM education to meet future workforce needs of the IC: Requires the DNI to report on anticipated hiring needs of the IC in the fields of science, technology, engineering, and mathematics (STEM), including cybersecurity and computer literacy. The report must discuss ways to promote STEM education at high schools and institutions of higher education.
Assessment of the security of domestic oil refineries and related rail transportation infrastructure: Requires the Under Secretary of Homeland Security for Intelligence and Analysis to conduct an assessment of the security of domestic oil refineries and related rail transportation and infrastructure.
Inspector General of the National Security Agency (NSA): Makes the position of Inspector General of the NSA a presidentially-appointed, Senate-confirmed, position. The President is directed to nominate a candidate within 90 days of the bills enactment. The bill gives the IG subpoena authority, establishes in law the position of General Counsel to the IG, and requires notification to certain congressional committees if the Secretary of Defense prohibits an IG audit or investigation.
Continuous evaluation and sharing of derogatory information on personnel with access to classified information: Requires the DNI to ensure that IC elements continuously evaluate employees and contractors to ensure their continued eligibility for access to classified information. The DNI must also develop procedures for IC elements to share potentially derogatory security information about employees that could impact their eligibility for a security clearance.
Requirements for IC contractors: Requires the DNI to ensure that IC contractors have security plans consistent with standards established for the IC network. The DNI must also ensure that the insider threat detection capabilities and insider threat policies of the IC are applied to IC contractors.
Technology improvements for security clearance process: Directs the DNI to analyze the costs and benefits of potential improvements to investigating individuals being considered for access to classified information and adjudicating whether they satisfy the criteria for obtaining and retaining such access.
Report on reciprocity of security clearances: Requires an annual report to Congress on how frequently agencies accept and reject background investigations or security clearance determinations made by other authorized agencies, and the period of time generally required by agencies for accepting such investigations or determinations from other agencies.
Improving the periodic reinvestigation process: Directs the DNI to provide a strategic plan for updating the current security clearance process of “periodic reinvestigation” to transition to a continuous evaluation plan. “By adopting continuous evaluation, a smaller number of cause-based and random reinvestigations can supplement and, over the long-term, replace, arbitrary periodic reinvestigations in the IC.”
 Id. at 17.
 The bill “authorizes appropriations for . . . the intelligence and intelligence-related activities of these elements of the [U.S.] Government: The Office of the Director of National Intelligence (including the National Counterterrorism Center), the Central Intelligence Agency, the Department of Defense, the Defense Intelligence Agency, the National Security Agency, the Departments of the Army, Navy, and Air Force, the Coast Guard, the Department of State, the Department of the Treasury, the Department of Energy, the Department of Justice, the Federal Bureau of Investigation, the Drug Enforcement Administration, the National Reconnaissance Office, the National Geospatial Intelligence Agency, and the Department of Homeland Security.” Id. at 21.
 Congressional Budget Office Cost Estimate: H.R. 4681, Intelligence Authorization Act for Fiscal Years 2014 and 2015.
 CBO Cost Estimate: H.R. 4681.
 Committee Report 113-463 at 18.
According to the CBO estimates, implementing the unclassified portions of H.R. 4681 would cost approximately $500 million over the 2015-2019 period. The bill would not affect direct spending or revenues.
(Please Note that the Rule Provides for En Bloc Authority)
1) Rep. Rogers (R-MI) Manager’s Amendment #28 – Amendment makes technical and clarifying changes to Sections 104 and 402 of the reported bill and modifies Section 321 to ensure that the report on violations of law and executive order does not impact ongoing criminal investigations and to require the Director of National Intelligence to issue guidance to Intelligence Community elements on how to carry out the report.
2) Rep. Connolly (D-VA) Amendment #12 – Amendment ensures the inclusion of leading software license management practices in the assessments conducted by the Chief Information Officers of each element of the Intelligence Community and the Chief Information Officer of the Intelligence Community, to assess actions that could be carried out to achieve the greatest possible economies of scale and associated cost savings in software procurement and usage, as required under Section 307.
3) Rep. Kilmer (D-WA) Amendment #3 – Amendment requires the Chief Information Officer (CIO) of the Office of the Director of National Intelligence to make recommendations to the Director of National Intelligence (DNI) on software procurement and usage, requires the DNI to issue guidelines to the intelligence community within 180 days of receiving the CIO’s recommendations.
4) Rep. Rogers (R-MI) Amendment #29 – Amendment prohibits senior Intelligence Community civilian employees and senior legislative staff with access to sensitive compartmented information from immediately working for a company owned or controlled by a foreign government that poses a significant counterintelligence threat to the United States after they leave federal employment. Amendment also establishes notification and reporting requirements for such employees.
5) Rep. Kelly (D-IL) Amendment #23 – Amendment allows the Director of National Intelligence to provide grants to historically black colleges and universities and Predominantly Black Institutions for the purpose of offering advanced foreign language programs deemed in the immediate interest of the intelligence community (including Farsi, Pashto, Middle Eastern, African, and South Asian dialects) and for study abroad and cultural immersion programs.
6) Rep. Franks (R-AZ) Amendment #8 – Amendment requires a report from DNI on the threat posed by man-made electromagnetic pulse weapons to United States interests through 2025, including threats from foreign countries and foreign non-State actors.
7) Rep. Poe (R-TX) Amendment #1 – Amendment requires the DNI to submit to the appropriate committees of Congress a comprehensive strategy to disrupt, dismantle, and defeat al-Qaeda, its affiliated groups, associated groups, and adherents. The amendment also requests that the report include the Administration’s definitions of al-Qaeda core, affiliated groups, associated groups, and adherents.
8) Rep. Carney (D-DE) Amendment #9 – Amendment requires the Director of National Intelligence to issue a report to Congress on how to improve the declassification process across the intelligence community and what steps the intelligence community can take, or what legislation may be necessary, to enable the National Declassification Center to better accomplish the missions assigned to it by Executive Order 13526.
9) Rep. Gallego (D-TX) Amendment #16 – Amendment requires the Director of National Intelligence – in consultation with the Secretary of Defense, Secretary of Veterans Affairs, and Secretary of Homeland Security – to submit recommendations to Congress for retraining (a) veterans and (b) retired members of the intelligence community in cybersecurity.
10) Rep. Jackson Lee (D-TX) #15 – Amendment requires the Director of National Intelligence to conduct an assessment and report to Congress on the reliance of intelligence activities on civilian contractors to support Government activities, including intelligence analysis.
11) Reps. Keating (D-MA), Rooney (R-FL), and Hanna (R-NY) Amendment #30 – Amendment requires the Under Secretary of Homeland Security for Intelligence and Analysis, in consultation with the Federal Bureau of Investigation and Project Manager of Information Sharing Environment, to submit an intelligence assessment of the efficacy of the MOUs signed between Federal, State, local, tribal, and territorial agencies to facilitate intelligence sharing.
For questions or further information contact the GOP Conference at 5-5107.