H.R. 8367 — what changed

added “(8) The Director of the Central Intelligence Agency.”

added “(3) ensuring that the intelligence community has efficient and effective mechanisms to receive and prioritize the intelligence needs of the departments and agencies of the United States Government that are not part of the intelligence community or the Department of Defense.”

added “(8)

added “(A) The Director of National Intelligence shall ensure there is established a policy for minimum insider threat standards that is consistent with the Presidential memorandum of November 21, 2012, titled “National Insider Threat Policy and Minimum Standards for Executive Branch Insider Threat Programs”, or any successor thereto.

added “(B) The head of each element of the intelligence community shall implement the policy under subparagraph (A) within that element, and, concurrent with the submission to Congress of budget justification materials in support of the budget of the President for a fiscal year that is submitted to Congress under section 1105(a) of title 31, United States Code, shall submit to Congress a certification as to whether the element is in compliance with such policy.

added “(C) The Director shall conduct periodic audits to determine whether each element of the intelligence community is in compliance with the policy under subparagraph (A). The Director may refer any audit under this subparagraph to the Inspector General of the Intelligence Community, who shall conduct such audit on behalf of the Director.”

added Title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.) is amended by inserting after section 506I the following new section (and conforming the table of contents at the beginning of such Act accordingly):

added “506J. Classified intelligence budget justification materials

added “(a) Timely submission—At the same time as the President submits to Congress the budget for each fiscal year, the Director of National Intelligence shall submit to the congressional intelligence committees the classified intelligence budget justification materials for the element for that budget.

added “(b) Definitions—In this section:

added “(1) The term “budget” has the meaning given the term “budget of the President” in section 506A.

added “(2) The term “classified intelligence budget justification materials” means, with respect to a fiscal year, the materials submitted to Congress by the Director of National Intelligence in support of the budget for that fiscal year that are classified or otherwise protected from public disclosure.”

added Title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.), as amended by section 305, is further amended by adding at the end the following new section (and conforming the table of contents at the beginning of such Act accordingly):

added “514. Unfunded priorities of the intelligence community: annual report

added “(a) Annual report—Not later than 10 days after the date on which the budget of the President for a fiscal year is submitted to Congress pursuant to section 1105 of title 31, United States Code, the head of each element of the intelligence community shall submit to the Director of National Intelligence and to the congressional intelligence committees a report on the unfunded priorities of the programs under the jurisdiction of such head.

added “(b) Elements

added “(1) In general—Each report under subsection (a) shall specify, for each unfunded priority covered by such report, the following:

added “(A) A summary description of such priority, including the objectives to be achieved if such priority is funded (whether in whole or in part).

added “(B) Whether such priority will satisfy a covert action or support collection against requirements identified in the National Intelligence Priorities Framework of the Office of the Director of National Intelligence (or any successor mechanism established for the prioritization of programs and activities), including a description of such requirements and the related prioritization level.

added “(C) The additional amount of funds recommended in connection with the objectives under subparagraph (A).

added “(D) Budget information with respect to the unfunded priority, including—

added “(i) the appropriation account;

added “(ii) the expenditure center; and

added “(iii) the project and, if applicable, subproject.

added “(2) Prioritization of priorities—Each report shall present the unfunded priorities covered by such report in overall order of urgency of priority among unfunded priorities.

added “(c) Unfunded priority defined—In this section, the term unfunded priority, in the case of a fiscal year, means a program, activity, or mission requirement of an element of the intelligence community that—

added “(1) is not funded in the budget of the President for the fiscal year as submitted to Congress pursuant to section 1105 of title 31, United States Code;

added “(2) is necessary to fulfill a covert action or to satisfy an information requirement associated with the collection, analysis, or dissemination of intelligence that has been documented within the National Intelligence Priorities Framework; and

added “(3) would have been recommended for funding by the head of the element of the intelligence community if—

added “(A) additional resources had been available for the budget to fund the program, activity, or mission requirement; or

added “(B) the program, activity, or mission requirement has emerged since the budget was formulated.”

added “515. Submission of classified annexes to executive orders and other documents

added “(a) Requirement—Not later than 7 days after the date on which the President issues or amends a covered document, the Director of National Intelligence shall submit to the congressional intelligence committees any classified annex accompanying that document if such annex contains a reference to any element of the intelligence community.

added “(b) Covered document defined—In this section, the term “covered document” means any executive order, memorandum, or policy directive issued by the President, including national security Presidential memoranda and Presidential policy directives, or such successor memoranda and directives.”

added Section 1022 of the National Security Act of 1947 (50 U.S.C. 3222) is amended to read as follows:

added “1022. Program on recruitment and training

added “(a) Program

added “(1) Requirement—The Director of National Intelligence, in consultation with the heads of the elements of the intelligence community, shall carry out a program to ensure that selected individuals are provided funds for academic training (including with respect to both undergraduate and postgraduate education), or to reimburse for academic training previously obtained—

added “(A) in capabilities, missions, or skillsets, especially in the fields of science, technology, mathematics, and engineering, to address workforce requirements in which the intelligence community is deficient or likely to be deficient in the future; or

added “(B) for such individuals who have backgrounds or experiences that the Director has identified as being underrepresented in the intelligence community or likely to be underrepresented in the future.

added “(2) Commitment—An individual selected for participation in the program shall commit to employment with an element of the intelligence community for a period that the Director determines is commensurate with the amount of funding provided to the individual under the program and under such terms and conditions as the Director considers appropriate.

added “(3) Designation—The program shall be known as the Pat Roberts Intelligence Scholars Program.

added “(4) Outreach—The Director, in consultation with the heads of the elements of the intelligence community, shall maintain a publicly available internet website on the program that describes—

added “(A) the intent of the program;

added “(B) the conditions and requirements for selection and participation;

added “(C) application instructions;

added “(D) the areas covered by the program pursuant to the review conducted under subsection (b)(2); and

added “(E) any other details the Director determines appropriate.

added “(b) Elements—In carrying out the program under subsection (a), the Director shall—

added “(1) establish such requirements relating to the academic training of participants as the Director considers appropriate to ensure that participants are prepared for employment as intelligence professionals; and

added “(2) on an annual basis, review the areas that will contribute to the capabilities, missions, and skillsets in which the intelligence community is deficient or is likely to be deficient in the future.

added “(c) Use of funds—Funds made available for the program under subsection (a) shall be used—

added “(1) to provide a monthly stipend for each month that a participant is pursuing a course of study;

added “(2) to pay the partial or full tuition or other appropriate education expenses of a participant for the completion of such course of study;

added “(3) to reimburse a participant for tuition or other appropriate education expenses paid by the participant before becoming an employee of an element of the intelligence community, including with respect to providing payments for student loans used for such tuition and expenses;

added “(4) to pay for books and materials that the participant requires or required to complete such course of study;

added “(5) to pay the expenses of the participant for travel requested by an element of the intelligence community in relation to such program; or

added “(6) for such other purposes the Director considers reasonably appropriate to carry out such program.”

added “1102A. Measures to mitigate counterintelligence threats from proliferation and use of foreign commercial spyware

added “(a) Annual assessments of counterintelligence threats

added “(1) Requirement—Not later than March 1, 2023, and annually thereafter, the Director of National Intelligence, in coordination with the Director of the Central Intelligence Agency, the Director of the National Security Agency, and the Director of the Federal Bureau of Investigation, shall submit to the congressional intelligence committees a report containing an assessment of the counterintelligence threats and other risks to the national security of the United States posed by the proliferation of foreign commercial spyware. The assessment shall incorporate all credible data, including open-source information.

added “(2) Elements—Each report under paragraph (1) shall include the following, if known:

added “(A) A list of the most significant foreign companies, as determined by the Director of National Intelligence, selling, leasing, or otherwise providing foreign commercial spyware, and associated foreign commercial entities, assessed by the intelligence community to be the most significant foreign actors in the global proliferation of foreign commercial spyware.

added “(B) A description of the foreign commercial spyware marketed by the foreign companies identified under subparagraph (A) and an assessment by the intelligence community of the foreign commercial spyware.

added “(C) An assessment of the counterintelligence risk to personnel of the intelligence community posed by such spyware.

added “(D) Details of where each foreign company identified under subparagraph (A) is domiciled, as well as any foreign country in which the company has subsidiaries or resellers acting as the local agent on behalf of the foreign parent company.

added “(E) A description of how each such foreign company is financed, where the foreign company acquired its capital, and the major investors in the foreign company.

added “(F) An assessment by the intelligence community of any relationship between each such foreign company and a foreign government, including any export controls and processes to which the foreign company is subject.

added “(G) To the extent such information is obtainable through clandestine collection or open source intelligence, a list of the foreign customers of each such foreign company, including the understanding by the intelligence community of the organizations and end-users within any foreign government that procured the spyware of that foreign company.

added “(H) With respect to each foreign customer identified under subparagraph (G), an assessment by the intelligence community regarding how the foreign customer is using the spyware, including whether the spyware has been used to target personnel of the intelligence community.

added “(I) With respect to the first report, a mitigation plan to reduce the exposure of personnel of the intelligence community to foreign commercial spyware.

added “(J) With respect to each report following the first report, details of steps taken by the intelligence community since the previous report to implement measures to reduce the exposure of personnel of the intelligence community to foreign commercial spyware.

added “(3) Form—Each report under paragraph (1) shall be submitted in classified form.

added “(4) Dissemination—The Director of National Intelligence shall share each report under paragraph (1) with the heads of other appropriate Federal departments and agencies, including the President, the heads of all elements of the intelligence community, the Secretary of State, the Attorney General, the Director of the Federal Bureau of Investigation, the Secretary of Commerce, and the heads of any other agencies the Director determines appropriate.

added “(b) Classified watchlist

added “(1) Submittal to Congress—The Director of National Intelligence shall submit to the appropriate congressional committees a list of companies selling, leasing, or otherwise providing foreign commercial spyware that the Director determines are engaged in activities that pose a counterintelligence risk to personnel of the intelligence community.

added “(2) Updates—The Director shall update the list under paragraph (1) not less frequently than annually.

added “(3) Form—Each list under paragraph (1) shall be submitted in classified form.

added “(4) Dissemination—The Director of National Intelligence shall share each list under paragraph (1) with the heads of other appropriate Federal departments and agencies, including the President, the heads of all elements of the intelligence community, the Secretary of State, the Attorney General, the Director of the Federal Bureau of Investigation, the Secretary of Commerce, and the heads of any other agencies the Director determines appropriate.

added “(c) Authority to prohibit purchase or use by intelligence community

added “(1) Foreign commercial spyware from foreign spyware company

added “(A) In general—The Director of National Intelligence may prohibit any element of the intelligence community from procuring, leasing, or otherwise acquiring on the commercial market, or extending or renewing a contract to procure, lease, or otherwise acquire, foreign commercial spyware from a foreign spyware company.

added “(B) Considerations—In determining whether and how to exercise the authority under subparagraph (A), the Director of National Intelligence shall consider—

added “(i) the assessment of the intelligence community of the counterintelligence threats or other risks to the United States posed by the foreign commercial spyware; and

added “(ii) the assessment of the intelligence community of whether the foreign commercial spyware has been used to target United States Government personnel.

added “(2) Domestic company providing foreign commercial spyware

added “(A) Authority to prohibit purchase—The Director of National Intelligence may prohibit the purchase or use by the intelligence community of spyware from a domestic company if the Director determines that the spyware was originally sourced, in whole or in part, from a foreign company.

added “(B) Considerations—In considering whether and how to exercise the authority under subparagraph (A) with respect to spyware, the Director of National Intelligence shall consider—

added “(i) whether the original owner or developer retains any of the physical property or intellectual property associated with the spyware;

added “(ii) whether the original owner or developer has verifiably destroyed all copies of the data collected by or associated with the spyware;

added “(iii) whether the personnel of the original owner or developer retain any access to data collected by or associated with the spyware;

added “(iv) whether the use of the spyware requires the user to connect to an information system of the original owner or developer or of a foreign government; and

added “(v) whether the spyware poses a counterintelligence risk to the United States or any other threat to the national security of the United States.

added “(3) Domestic company that has acquired foreign commercial spyware

added “(A) Authority—The Director of National Intelligence may prohibit any element of the intelligence community from entering into any contract or other agreement for any purpose with a domestic company that has acquired, in whole or in part, any foreign commercial spyware.

added “(B) Considerations—In considering whether and how to exercise the authority under subparagraph (A) with respect to a domestic company that has acquired foreign commercial spyware, the Director of National Intelligence shall consider—

added “(i) whether the original owner or developer of the spyware retains any of the physical property or intellectual property associated with the spyware;

added “(ii) whether the original owner or developer of the spyware has verifiably destroyed all copies of the data collected by or associated with the spyware;

added “(iii) whether the personnel of the original owner or developer of the spyware retain any access to data collected by or associated with the spyware;

added “(iv) whether the use of the spyware requires the user to connect to an information system of the original owner or developer or of a foreign government; and

added “(v) whether the spyware poses a counterintelligence risk to the United States or any other threat to the national security of the United States.

added “(4) Waiver authority

added “(A) In general—The head of an element of the intelligence community may request from the Director of National Intelligence the waiver of a prohibition made under paragraph (1), (2), or (3). The Director may issue such a waiver in response to such a request if—

added “(i) such waiver is in the national security interest of the United States; and

added “(ii) the Director submits to the congressional intelligence committees the notice described in subparagraph (B).

added “(B) Notice—Not later than 30 days after issuing a waiver under subparagraph (A), the Director of National Intelligence shall submit to the congressional intelligence committees notice of the waiver. Such notice shall include—

added “(i) an identification of the head of the element of the intelligence community that requested the waiver;

added “(ii) the rationale for issuing the waiver; and

added “(iii) the considerations that informed the ultimate determination of the Director to issue the wavier.

added “(5) Termination of prohibition—The Director of National Intelligence may terminate a prohibition made under paragraph (1), (2), or (3) at any time.

added “(d) Notifications

added “(1) In general—Not later than 30 days after the date on which the Director of National Intelligence exercises the authority to issue a prohibition under subsection (c), the Director of National Intelligence shall notify the congressional intelligence committees of such exercise of authority. Such notice shall include—

added “(A) a description of the circumstances under which the prohibition was issued;

added “(B) an identification of the company or product covered by the prohibition;

added “(C) any information that contributed to the decision of the Director to exercise the authority, including any information relating to counterintelligence or other risks to the national security of the United States posed by the company or product, as assessed by the intelligence community; and

added “(D) an identification of each element of the intelligence community to which the prohibition has been applied.

added “(2) Counterintelligence notifications—Not later than 30 days after the date on which an element of the intelligence community becomes aware that a Government-issued mobile device was targeted or compromised by foreign commercial spyware, the Director of National Intelligence, in coordination with the Director of the Federal Bureau of Investigation, shall notify the congressional intelligence committees of such determination, including—

added “(A) the component of the element and the location of the personnel whose device was targeted or compromised;

added “(B) the number of devices compromised or targeted;

added “(C) an assessment by the intelligence community of the damage to national security of the United States resulting from any loss of data or sensitive information;

added “(D) an assessment by the intelligence community of any foreign government, or foreign organization or entity, and, to the extent possible, the foreign individuals, who directed and benefitted from any information acquired from the targeting or compromise; and

added “(E) as appropriate, an assessment by the intelligence community of the capacity and will of such governments or individuals to continue targeting personnel of the United States Government.

added “(e) Definitions—In this section:

added “(1) Appropriate congressional committees—The term “appropriate congressional committees” means—

added “(A) the Committee on Foreign Affairs, the Committee on Armed Services, and the Permanent Select Committee on Intelligence of the House of Representatives; and

added “(B) the Committee on Foreign Relations, the Committee on Armed Services, and the Select Committee on Intelligence of the Senate.

added “(2) Domestic company—The term “domestic company” means a commercial entity, or any subsidiary or affiliate of the entity, incorporated or domiciled in the United States that—

added “(A) sells, leases, or otherwise provides foreign commercial spyware, including by reason of—

added “(i) taking ownership, in whole or in part, of a foreign spyware company; or

added “(ii) entering into a partnership with a foreign spyware company; or

added “(B) otherwise owns, leases, or has access to foreign commercial spyware.

added “(3) Foreign commercial spyware—The term “foreign commercial spyware” means a tool (or set of tools) sold, leased, marketed, or otherwise provided as an end-to-end system originally developed or owned by a foreign spyware company that provides a purchaser remote access to information stored on or transiting through an electronic device connected to the internet, including end-to-end systems that—

added “(A) allow malign actors to infect mobile and internet-connected devices with malware over both wireless internet and cellular data connections, including without any action required by the user of the device;

added “(B) can record telephone calls and other audio;

added “(C) track the location of the device; or

added “(D) access and retrieve information on the device, including text messages, files, e-mails, transcripts of chats, contacts, photos, and browsing history.

added “(4) Foreign spyware company—The term “foreign spyware company” means an entity that is—

added “(A) incorporated or domiciled outside the United States; and

added “(B) not subject to the laws and regulations of the United States regulating the surveillance of citizens of the United States and foreign citizens.

added “(5) Government-issued mobile device—The term “Government-issued mobile device” means a smartphone, tablet, or laptop, or similar portable computing device, that is issued to personnel of the intelligence community by a department or agency of the United States Government for official use by the personnel.

added “(6) United States person—The term “United States person” has the meaning given that term in Executive Order 12333 (50 U.S.C. 3001 note), or any successor order.”

added “(E) Vulnerabilities from foreign commercial spyware

added “(i) Consultation—In carrying out efforts to secure Government-issued mobile devices, to consult with the private sector of the United States and reputable third-party researchers to identify vulnerabilities from foreign commercial spyware and maintain effective security measures for such devices.

added “(ii) Definitions—In this subparagraph, the terms “Government-issued mobile devices” and “foreign commercial spyware” have the meaning given those terms in section 1102A of the National Security Act of 1947.”

added Of the funds authorized to be appropriated by this Act or otherwise made available for fiscal year 2023 for the Intelligence Community Management Account, 5 percent may not be obligated or expended until the date on which the Director of National Intelligence submits the report required by section 505(c) of the Intelligence Authorization Act for Fiscal Year 2022 (division X of Public Law 117–103; 50 U.S.C. 3112 note).

added Section 102A of the National Security Act of 1947 (50 U.S.C. 3024), as amended by section 304, is further amended—

added “(3) ensure that substantial differences in analytic judgment are fully considered, brought to the attention of policymakers, and documented in analytic products; and”

added “(4) Each head of an element of the intelligence community shall ensure that any congressionally mandated report submitted to Congress by the head, other than such a report submitted solely to the congressional intelligence committees, shall be consistent with the protection of intelligence sources and methods in accordance with the policies established by the Director under paragraph (1), regardless of whether the provision of law mandating the report explicitly requires such protection.”

added “(C) each contract awarded by an element of the intelligence community includes provisions granting consent for the network monitoring by the element of any information technology network used to perform work under such contract, regardless of the classification level of such network.”

added “(3) Not later than October 1 of each year, the Director of National Intelligence shall submit to the congressional intelligence committees a copy of the most recently updated National Intelligence Priorities Framework of the Office of the Director of National Intelligence (or any such successor mechanism).”

added Section 1096(a) of the Intelligence Reform and Terrorism Prevention Act of 2004 (Public Law 108–458; 50 U.S.C. 3001 note) is amended—

added “(2) The records of the Office of the Director of National Intelligence may not be dispositioned pursuant to paragraph (1) without the authorization of the Director of National Intelligence.”

added “(4) Authorize personnel designated by the Director to carry firearms to the extent necessary for the performance of the Agency’s authorized functions, except that, within the United States, such authority shall be limited to the purposes of—

added “(A) the training of Agency personnel and other authorized persons in the use of firearms;

added “(B) the protection of classified materials and information;

added “(C) the protection of installations and property of the Agency;

added “(D) the protection of—

added “(i) current and former Agency personnel and their immediate families;

added “(ii) individuals nominated by the President to the position of Director (including with respect to an individual whom a President-elect (as defined in section 3(c) of the Presidential Transition Act of 1963 (3 U.S.C. 102 note) has declared an intent to nominate) and their immediate families; and

added “(iii) defectors and their immediate families, and other persons in the United States under Agency auspices; and

added “(E) with respect to the Office of the Director of National Intelligence, the protection of—

added “(i) installations and property of the Office of the Director of National Intelligence pursuant to section 15(a)(1);

added “(ii) the Director of National Intelligence;

added “(iii) current and former personnel of the Office of the Director of National Intelligence and their immediate families as the Director of National Intelligence may designate; and

added “(iv) individuals nominated by the President to the position of Director of National Intelligence (including with respect to an individual whom a President-elect has declared an intent to nominate) and their immediate families;”

added “(c) Notification—Not later than 30 days after the date on which the Director makes a novel or significant expenditure pursuant to subsection (a), the Director shall notify the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate of such expenditure.”

added “(5) Any authority provided to the Director of National Intelligence or the head of an element of the intelligence community pursuant to this subsection to make an expenditure referred to in subsection (a) of section 8 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 3510) is subject to the notification requirement under subsection (c) of such section. If the Director of National Intelligence is required to make a notification for a specific expenditure pursuant to both this paragraph and paragraph (4)(G), the Director may make a single notification.”

added “(D) within any facility or installation operated by the Director of National Intelligence; and”

added “(B) With respect to the areas referred to in subparagraph (D) of paragraph (1), the rules and regulations enforced by such personnel and applicable to such areas shall be the rules and regulations prescribed by the Director, in coordination with the Director of National Intelligence.”

added “(3) In addition to the authority provided to the Director of the Central Intelligence Agency to authorize security personnel of the Central Intelligence Agency within, and in certain streets, sidewalks, and open areas with respect to, a facility or installation operated by the Director of National Intelligence under section 15(a) of the Central Intelligence Agency Act of 1949 (50 U.S.C. 3515(a)), the Director of National Intelligence may exercise with respect to the security personnel of the Office of the Director of National Intelligence such authority 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 security personnel of the Central Intelligence Agency.”

added Section 137 of title 10, United States Code, is amended by adding at the end the following new subsection:

added “(e) The Secretary of Defense shall ensure that not fewer than one of the Deputy Directors for Defense Intelligence (or such successor positions) is responsible for warfighter support. An individual appointed to that position shall be a general or flag officer serving in a joint duty assignment.”

added Part II of subtitle A of title 10, United States Code, is amended by inserting after chapter 88 the following new chapter (and conforming the table of chapters at the beginning of such part accordingly):

added “89 Cover Enhancement Authorities

added “1801. Definitions

added “In this chapter:

added “(1) The term “designated employee” means an employee of the Department of Defense designated by the Secretary of Defense under section 1802(b).

added “(2) The term “designated member” means a member of the armed forces designated by the Secretary of Defense under section 1802(b).

added “(3) The term “Federal retirement system” includes the Federal Employees’ Retirement System (including the Thrift Savings Plan).

added “(4) The term “military retirement system” includes military retired pay programs under chapters 61, 63, 65, and 67 of this title and the Survivor Benefit Plan established by chapter 73 of this title.

added “1802. Cover enhancement authority

added “(a) Authority—Notwithstanding any other provision of law, the Secretary of Defense may exercise the authorities under this chapter to protect from unauthorized disclosure—

added “(1) intelligence operations of the Department of Defense;

added “(2) the identities of undercover officers;

added “(3) intelligence sources and methods; or

added “(4) cover mechanisms.

added “(b) Designation of employees and members

added “(1) Subject to paragraph (2), the Secretary of Defense may designate any employee of the Department of Defense or member of the armed forces who is under cover to be an employee or a member to whom this chapter applies.

added “(2) The Secretary of Defense may not designate more than 15 persons under paragraph (1) in a fiscal year unless the Secretary provides notice of the intent to designate more than 15 persons in such fiscal year to the congressional defense committees and the congressional intelligence committees (as such term is defined in section 3 of the National Security Act of 1957 (50 U.S.C. 3003)).

added “(3) A designation may be made under this subsection with respect to any or all authorities exercised under this chapter.

added “(c) Interagency coordination and support—Establishment of any such cover enhancement authority for intelligence operations of the Department of Defense shall be pre-coordinated using processes and procedures for intelligence community deconfliction mutually agreed upon by the Secretary of Defense and the Director of the Central Intelligence Agency.

added “1803. Compensation

added “The Secretary of Defense may pay a designated employee or designated member salary, allowances, and other benefits in an amount and in a manner consistent with the cover of that employee or member, without regard to any limitation that is otherwise applicable to a Federal employee or member of the armed forces. A designated employee or designated member may accept, use, and, to the extent authorized by regulations prescribed under this chapter, retain any salary, allowances, and other benefits provided under this chapter.

added “1804. Retirement benefits

added “(a) Establishment of retirement system—The Secretary of Defense may establish, administer, contract for, or implement through another Federal department or agency, a cover retirement system for designated employees and designated members (and the spouse, former spouses, and survivors of such designated employees and designated members). A designated employee or designated member may not receive credit for service under the retirement system established under this paragraph and another Federal retirement system for the same time period.

added “(b) Conversion to other Federal retirement system—A designated employee or designated member participating in the retirement system established under subsection (a) may convert to coverage under the Federal retirement system or military retirement system that would otherwise apply to such employee or member at any appropriate time determined by the Secretary of Defense (including at the time of separation of service by reason of retirement), if the Secretary of Defense determines that the participation of the employee or member in the retirement system established under this subsection is no longer necessary to protect from unauthorized disclosure—

added “(1) intelligence operations;

added “(2) the identities of undercover officers;

added “(3) intelligence sources and methods; or

added “(4) cover mechanisms.

added “(c) Conversion treatment—Upon a conversion under subsection (b)—

added “(1) all periods of service under the retirement system established under this section shall be deemed periods of creditable service under the applicable Federal retirement system or military retirement system;

added “(2) the Secretary of Defense shall transmit an amount for deposit in any applicable fund of that Federal retirement system or military retirement system that—

added “(A) is necessary to cover all employee or member and agency contributions including—

added “(i) interest as determined by the head of the agency administering the Federal retirement system or military retirement system into which the employee or member is converting; or

added “(ii) in the case of an employee or member converting into the Federal Employee’s Retirement System or military retirement system, interest as determined under chapter 84 of title 5 or chapter 74 of this title, as the case may be; and

added “(B) ensures that such conversion does not result in any unfunded liability to that fund; and

added “(3) in the case of a designated employee or designated member who participated in an employee or member investment retirement system established under subsection (a) and is converted to coverage under the Federal retirement system or military retirement system, the Secretary of Defense may transmit any or all amounts of that designated employee or designated member in that employee or military investment retirement system (or similar part of that retirement system) to the Thrift Savings Fund.

added “(d) Transmitted amounts

added “(1) Amounts described under subsection (c)(2) shall be paid from any fund the Secretary of Defense deems appropriate.

added “(2) The Secretary of Defense may use amounts contributed by the designated employee or designated member to a retirement system established under subsection (a) to offset amounts paid under paragraph (1).

added “(e) Records—The Secretary of Defense shall transmit all necessary records relating to a designated employee or designated member who converts to a Federal retirement system or military retirement system under subsection (b) (including records relating to periods of service which are deemed to be periods of creditable service under subsection (c)(1)) to the head of the agency administering that Federal retirement system or military retirement system.

added “1805. Health insurance benefits

added “(a) In general—The Secretary of Defense may establish, administer, contract for, or implement through another Federal agency, a cover health insurance program for designated employees and designated members and eligible family members. A designated employee or designated member may not participate in the health insurance program established under this section and the program under chapter 89 of title 5 or chapter 55 of this title at the same time.

added “(b) Conversion to Federal employees health benefits program—A designated employee participating in the health insurance program established under subsection (a) may convert to coverage under the program under chapter 89 of title 5, and a designated member participating in the program established under subsection (a) may convert to coverage under the program under chapter 55 of this title or chapter 17 of title 38, at any appropriate time determined by the Secretary of Defense (including at the time of separation of service by reason of retirement), if the Secretary of Defense determines that the participation of the employee or member in the health insurance program established under this subsection is no longer necessary to protect from unauthorized disclosure—

added “(1) intelligence operations;

added “(2) the identities of undercover officers;

added “(3) intelligence sources and methods; or

added “(4) cover mechanisms.

added “(c) Conversion treatment—Upon a conversion of a designated employee under subsection (b)—

added “(1) the employee (and family, if applicable) shall be entitled to immediate enrollment and coverage under chapter 89 of title 5;

added “(2) any requirement of prior enrollment in a health benefits plan under chapter 89 of title 5 for continuation of coverage purposes shall not apply;

added “(3) the employee shall be deemed to have had coverage under chapter 89 of title 5 from the first opportunity to enroll for purposes of continuing coverage; and

added “(4) the Secretary of Defense shall transmit an amount for deposit in the Employees’ Health Benefits Fund that is necessary to cover any costs of such conversion.

added “(d) Transmitted amounts—Any amount described under subsection (c)(4) shall be paid from any fund the Secretary of Defense deems appropriate.

added “(e) Eligible family member defined—In this section, the term “eligible family member” means—

added “(1) with respect to an employee, a member of a family as defined in section 8901 of title 5; and

added “(2) with respect to a member of the armed forces, a dependent as defined in section 1072 of this title.

added “1806. Life insurance benefits

added “(a) In general—The Secretary of Defense may establish, administer, contract for, or implement through another Federal agency, a cover life insurance program for designated employees and designated members (and the family of such designated employees or designated members). A designated employee or designated member may not participate in the life insurance program established under this section and the program under chapter 87 of title 5 for the same time period.

added “(b) Conversion to Federal employees group life insurance program—A designated employee participating in the life insurance program established under subsection (a) may convert to coverage under the program under chapter 87 of title 5, and a designated member participating in the life insurance program established under subsection (a) may convert to coverage under the program under chapter 19 of title 38, at any appropriate time determined by the Secretary of Defense (including at the time of separation of service by reason of retirement), if the Secretary of Defense determines that the participation of the employee or member in the life insurance program established under this section is no longer necessary to protect from unauthorized disclosure—

added “(1) intelligence operations;

added “(2) the identities of undercover officers;

added “(3) intelligence sources and methods; or

added “(4) cover mechanisms.

added “(c) Conversion treatment—Upon a conversion of a designated employee under subsection (b)—

added “(1) the employee (and family, if applicable) shall be entitled to immediate coverage under chapter 87 of title 5;

added “(2) any requirement of prior enrollment in a life insurance program under chapter 87 of title 5 for continuation of coverage purposes shall not apply;

added “(3) the employee shall be deemed to have had coverage under chapter 87 of title 5 for the full period of service during which the employee would have been entitled to be insured for purposes of continuing coverage; and

added “(4) the Secretary of Defense shall transmit an amount for deposit in the Employees’ Life Insurance Fund that is necessary to cover any costs of such conversion.

added “(d) Transmitted amounts—Any amount described under subsection (c)(4) shall be paid from any fund the Secretary of Defense deems appropriate.

added “1807. Exemption from certain requirements

added “The Secretary of Defense may exempt a designated employee or designated member from mandatory compliance with any Federal regulation, rule, standardized administrative policy, process, or procedure that the Secretary of Defense determines—

added “(1) would be inconsistent with the cover of that employee or member; and

added “(2) could expose that employee to detection as a Federal employee or that member as a member of the armed forces.

added “1808. Taxation and social security

added “(a) In general—Notwithstanding any other provision of law, a designated employee or designated member—

added “(1) shall file a Federal or State tax return as if that employee or member is not a Federal employee or member of the armed forces and may claim and receive the benefit of any exclusion, deduction, tax credit, or other tax treatment that would otherwise apply if that designated employee was not a Federal employee or that designated member was not a member of the armed forces, if the Secretary of Defense determines that taking any action under this subsection is necessary to protect from unauthorized disclosure—

added “(A) intelligence operations;

added “(B) the identities of undercover officers;

added “(C) intelligence sources and methods; or

added “(D) cover mechanisms; and

added “(2) shall receive social security benefits based on the social security contributions made.

added “(b) Compensation for certain increased tax liability—In the case of a designated employee or designated member who files a tax return as provided in subsection (a)(1), the Secretary may increase (on a grossed-up basis) the compensation of such employee or member under section 1803 to account for any increased income tax liability attributable to having so filed.

added “(c) Internal revenue service review—The Secretary of Defense shall establish procedures to carry out this section. The procedures shall be subject to periodic review by the Internal Revenue Service.

added “1809. Regulations

added “The Secretary of Defense shall prescribe regulations to carry out this chapter. The regulations shall ensure that the combination of salary, allowances, and benefits that an employee or member designated under this chapter may retain does not significantly exceed, except to the extent determined by the Secretary of Defense to be necessary to exercise the authority in this chapter, the combination of salary, allowances, and benefits otherwise received by employees or members not designated under this chapter.

added “1810. Finality of decisions

added “Any determinations authorized by this chapter to be made by the Secretary of Defense or a designee of the Secretary shall be final and conclusive and may not be subject to review by any court.

added “1811. Subsequently enacted laws

added “No law enacted after the effective date of this chapter shall affect the authorities and provisions of this chapter unless such law specifically refers to this chapter.”

added “(1) a special agent”

added “(2) a special agent of the Army Counterintelligence Command (or a successor to that command) whose duties include conducting, supervising, or coordinating counterintelligence investigations involving potential or alleged violations punishable under chapter 37, 113B, or 115 of title 18, and similar offenses punishable under this title.”

added Section 3(4)(H) of the National Security Act of 1947 (50 U.S.C. 3003(4)(H)) is amended by inserting “the Space Force,” after “the Marine Corps,”.

added In this title:

added “(3) Artificial intelligence.”

added “(6) The Director of National Intelligence, in consultation with the heads of the elements of the intelligence community and the Director of Science and Technology, shall establish policies and procedures relating to the acquisition and use of artificial intelligence by the intelligence community, including with respect to data, computing, storage, and models necessary for the intelligence community to leverage, incorporate, adopt, and maintain artificial intelligence applications.”

added “(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. In making such appointment, the Director of National Intelligence shall give preference to an individual with varied professional experiences, including experience outside of the United States Government.”

added “(d) Policies—The Director of Science and Technology shall—

added “(1) recommend to the Director of National Intelligence policies and procedures for the intelligence community relating to incorporating artificial intelligence in accordance with section 102A(n);

added “(2) conduct reviews of the policies and procedures of the intelligence community relating to the adoption and integration of technology into the intelligence community, including with respect to, as appropriate—

added “(A) incentives and policies relating to human resources;

added “(B) incentives and policies relating to acquisition and contracting;

added “(C) incentives and policies relating to financial management and budgeting; and

added “(D) technology standards and policies;

added “(3) make recommendations to the Director of National Intelligence with respect to the budgets of the elements of the intelligence community regarding the matters covered by this section, including with respect to reprogramming funds to carry out the intelligence community-wide artificial intelligence mission of the Director of National Intelligence;

added “(4) coordinate with the Under Secretary of Defense for Research and Engineering on initiatives, policies, and programs carried out jointly between the intelligence community and the Department of Defense;

added “(5) coordinate with the Director of the Office of Science and Technology Policy to promote intelligence community-specific requirements and perspectives within the initiatives of the Office of Science and Technology Policy; and

added “(6) for purposes of integrating the priorities and requirements of the intelligence community into a broader national strategy on technology, coordinate with the heads of—

added “(A) the National Institute for Standards and Technology;

added “(B) the National Science Foundation; and

added “(C) any other department or agency of the United States Government, federally funded research and development center, or other entity that the Director of Science and Technology determines appropriate.”

added “(e) Clarification of role—The Director of Science and Technology may not have operational control over any program directly managed by an element of the intelligence community other than the Office of the Director of National Intelligence.”

added “103K. Chief Data Officer

added “(a) Director of Science and Technology—There is a Chief Data Officer within the Office of the Director of National Intelligence who shall be appointed by the Director of National Intelligence. The Chief Data Officer is the Chief Data Officer of the Office of the Director of National Intelligence for purposes of section 3520 of title 44, United States Code.

added “(b) Requirement relating to appointment—An individual appointed as the Chief Data Officer shall have a professional background and experience appropriate for the duties of the Chief Data Officer. In making such appointment, the Director of National Intelligence shall give preference to an individual with varied professional experiences, including experience outside of the United States Government.

added “(c) Duties—In addition to any other functions and responsibilities specified in section 3520 of title 44, United States Code, the Chief Data Officer—

added “(1) shall recommend to the Director of National Intelligence policies and procedures for the intelligence community regarding the acquisition and use of artificial intelligence with respect to the data needs of the intelligence community in support of adopting emerging technologies, in accordance with section 102A(n) and subject to the approval by the Director of National Intelligence, the Director of Science and Technology, and the Chief Information Officer;

added “(2) shall conduct reviews of the policies and procedures of the intelligence community relating to data, including with respect to data curation, data labeling, data acquisition, data security, data interoperability, and data accessibility, except with respect to such policies and procedures established pursuant to a provision of law or executive order relating to the control, use, retention, collection, or dissemination of data;

added “(3) shall conduct ongoing reviews of the data policies of the intelligence community, including to ensure that such policies promote interoperability and accessibility with commercial software providers, including by the promotion of open application programming interfaces;

added “(4) shall coordinate with the Chief Data Officer of the Department of Defense and other relevant officials of the Department to ensure consistent data policies and, to the extent practicable and advisable, consistent standards and policies that ensure data is accessible between relevant elements of the intelligence community and the Department;

added “(5) may make recommendations to the Director of National Intelligence, acting through the Chief Technology Officer, with respect to the budgets of the elements of the intelligence community regarding data, if such recommendations are—

added “(A) consistent with the policies established by the Director; and

added “(B) made in furtherance of accelerating the transition to digital business practices across the intelligence community, including with respect to the acquisition, curation, dissemination, and other data practices necessary to adopt artificial intelligence capabilities and other emerging technologies within the intelligence community; and

added “(6) shall perform other such duties as may be prescribed by the Director of National Intelligence, the Director of Science and Technology, or specified by law.

added “(d) Identification of conflicts—Not later than 60 days after the date on which the Chief Data Officer identifies a policy of the intelligence community, including with respect to policies governing the access to data, that restricts the Chief Data Officer from carrying out subsection (c), the Chief Data Officer shall notify the Director of National Intelligence and the congressional intelligence committees of such policy and restriction.”

added “102B. Additional transaction authority

added “(a) In General—In addition to other acquisition authorities, the head of an element of the intelligence community may exercise the authorities under subsections (b), (c), and (d).

added “(b) Cooperative Agreements and Grants—The head of an element of the intelligence community may use cooperative agreements and grants, in accordance with chapter 63 of title 31, United States Code, to carry out basic, applied, and advanced research and development, and prototype projects in support of intelligence activities.

added “(c) Other transaction authority—The head of an element of the intelligence community may enter into transactions (other than contracts, cooperative agreements, and grants) under the authority of this subsection to carry out basic, applied, and advanced research projects in support of intelligence activities.

added “(d) Authority of elements of the intelligence community to carry out certain prototype projects

added “(1) Authority—The head of an element of the intelligence community may, under the authority of subsection (c), enter into a transaction to carry out a prototype project in support of intelligence activities only if each party to the transaction, other than the Federal Government, is a covered contractor.

added “(2) Follow-on production contracts or transactions

added “(A) In general—A transaction entered into under this subsection for a prototype project may provide for the award of a follow-on production contract or a follow-on production transaction to the participants in the transaction. A transaction includes all individual prototype subprojects awarded under the transaction to a consortium of United States industry and academic institutions.

added “(B) Follow-on production contracts—A follow-on production contract provided for in a transaction under subparagraph (A) may be awarded to the participants in the transaction without the use of any competitive procedure that would otherwise apply if the following criteria are satisfied:

added “(i) The authorizing official of the relevant element of the intelligence community determines that Government users of the proposed production product or production service have been consulted.

added “(ii) In the case of a proposed production product that is software, there are mechanisms in place for Government users to provide feedback to participants to the follow-on production contract.

added “(iii) In the case of a proposed production product that is software, the follow-on production contract includes a requirement that, for the duration of such contract (or such other period of time as may be agreed to as a term of such contract)—

added “(I) the participants provide to the head of the relevant element of the intelligence community the most up-to-date version of the production product that is available in the commercial marketplace; and

added “(II) there are mechanisms in place for the participants to provide real-time updates to the production product.

added “(C) Follow-on production transactions—A follow-on production transaction provided for in a transaction under subparagraph (A) may be awarded to the participants in the transaction without the use of any competitive procedure that would otherwise apply.

added “(e) Recovery of funds

added “(1) In general—A cooperative agreement authorized by subsection (a) and a transaction authorized by subsection (c) or (d) may include a clause that requires a person to make payments to the Office of the Director of National Intelligence or any other element of the intelligence community as a condition for receiving support under the agreement or other transaction.

added “(2) Accounting for recovered funds—The amount of any payment received by the Federal Government pursuant to a requirement imposed under paragraph (1) may be credited to the appropriate account for research and development or procurement. Amounts so credited shall be merged with other funds in the account and shall be available for the same purposes and the same period for which other funds in such account are available.

added “(f) Education—The Director of National Intelligence and the heads of the elements of the intelligence community shall ensure that management, technical, and contracting personnel of the elements of the intelligence community who are involved in the award or administration of transactions under subsection (c) or (d), or alternative acquisition pathways, are afforded opportunities for adequate education and training relating to such award or administration.

added “(g) Agreements Officers—To ensure adequate availability of staff warranted as Agreements Officers, by not later than October 1, 2024, at least 50 percent of the contracting staff within the intelligence community that hold at least some responsibility for buying technology shall have received the appropriate training to become warranted as Agreements Officers, who are given authority to execute and administer the agreements, grants, and transactions authorized by this section.

added “(h) Delegation required—The Director of National Intelligence and the heads of the elements of the intelligence community shall, to the maximum extent practicable, delegate the authority to make a determination or decision referred to in this section to the official responsible for technology adoption in the relevant element of the intelligence community, regardless of whether such official serves in an acquisition position.

added “(i) Definitions—In this section:

added “(1) Commercial product—The term commercial product has the meaning given that term in section 103 of title 41, United States Code.

added “(2) Commercial service—The term commercial service has the meaning given that term in section 103a of title 41, United States Code.

added “(3) Covered contractor—The term covered contractor means a contractor of an element of the intelligence community that is a small- or medium-sized emerging technology company.

added “(4) Emerging technology company—The term “emerging technology company” means a company that is in the business of maturing and selling technology that is in a developmental stage, or that may be developed during the 10-year period beginning on January 1, 2022, including with respect to biotechnology, quantum information science, future generation wireless technology, advanced materials, artificial intelligence, nanotechnology, microelectronics, space technology, renewable energy generation and storage, advanced computing, and human-machine interfaces.

added “(5) Production product—The term production product means any commercial product that is not a prototype or development product and is intended to provide capability to the United States Government at scale as determined by the authorizing official of the relevant element of the intelligence community.

added “(6) Production service—The term production service means any commercial service that is not a prototype or development service and is intended to provide capability to the United States Government at scale as determined by the authorizing official of the relevant element of the intelligence community.

added “(7) Small- or medium-sized emerging technology company—The term “small- or medium-sized emerging technology company” means an emerging technology company with fewer than 1,000 employees.”

added Section 501 of the Intelligence Authorization Act for Fiscal Year 2016 (division M of Public Law 114–113; 129 Stat. 2923) is amended—

added “(c) Definitions—In this section:

added “(1) Appropriate congressional committees—The term appropriate congressional committees means the following:

added “(A) The congressional intelligence committees.

added “(B) The Committees on Armed Services of the House of Representatives and the Senate.

added “(C) The Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate.

added “(2) Covered country—The term covered country means the following:

added “(A) Russia.

added “(B) China.

added “(C) Iran.

added “(D) North Korea.”