By Mr. CONYERS:
--In section 601, amend subsections (a) and (b) to read as follows:
(a) DIA:
(1) Purposes: The purposes of this subsection are to--
(A) create an objective and effective office, appropriately accountable to the Congress, to initiate and conduct independently inspections, investigations, and audits relating to programs and operations of the Defense Intelligence Agency;
(B) provide leadership and recommend policies designed to promote economy, efficiency, and effectiveness in the administration of such programs and operations, and detect fraud and abuse in such programs and operations;
(C) provide a means for keeping the Director of the Defense Intelligence Agency fully and currently informed about problems and deficiencies relating to the administration of such programs and operations, and the necessity for and the progress of corrective actions; and
(D) in the manner prescribed by the amendments made by this subsection, ensure that the Senate Select Committee on Intelligence and the House Permanent Select Committee on Intelligence are kept similarly informed of significant problems and deficiencies as well as the necessity for and the progress of corrective actions.
(2) Establishment of office of inspector general: The first section 8G of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--
(A) in subsection (a)(2) by inserting after `the United States International Trade Commission,' the following: `the Defense Intelligence Agency,'; and
(B) by adding at the end the following:
`(i)(1) The Inspector General of the Defense Intelligence Agency shall be
appointed by the Director of the Defense Intelligence Agency (in this
subsection referred to as the `Director') without regard to political
affiliation and on the basis of integrity, compliance with the security
standards of the Defense Intelligence Agency, and prior experience in the
field of foreign intelligence and in a Federal office of Inspector
General.
`(2)(A) Notwithstanding the second sentence of section 8G(d), the Director
may prohibit the Inspector General of the Defense Intelligence Agency from
initiating, carrying out, or completing any audit, inspection, or
investigation if the Director determines that such prohibition is necessary
to protect vital national security interests of the United States.
`(B) If the Director exercises any power under subparagraph (A), the
Director shall submit an appropriately classified statement of the reasons
for the exercise of such power within 7 days to the intelligence committees.
The Director shall advise the Inspector General at the time such report is
submitted, and, to the extent consistent with the protection of intelligence
sources and methods, provide the Inspector General with a copy of any such
report. In such cases, the Inspector General may submit such comments to the
intelligence committees that the Director considers appropriate.
`(3) The Inspector General of the Defense Intelligence Agency shall take due
regard for the protection of intelligence sources and methods in the
preparation of all reports issued by the Office of Inspector General of the
Defense Intelligence Agency, and, to the extent consistent
with the purpose and objective of such reports, take such measures as may be
appropriate to minimize the disclosure of intelligence sources and methods
described in such reports.
`(4)(A) The Inspector General of the Defense Intelligence Agency shall, not
later than January 31 and July 31 of each year, prepare and submit to the
Director a classified semiannual report summarizing the activities of the
Office of Inspector General of the Defense Intelligence Agency during the
immediately preceding 6-month period ending December 31 (of the preceding
year) and June 30, respectively. Within 30 days after receipt of such
reports, the Director shall transmit such reports to the intelligence
committees with any comments the Director may deem appropriate. Such reports
shall, at a minimum, include a list of the title or subject of each
inspection, investigation, or audit conducted during the reporting period
and--
`(i) a description of significant problems, abuses, and deficiencies relating to the administration of programs and operations of the Defense Intelligence Agency identified by the Office during the reporting period;
`(ii) a description of the recommendations for corrective action made by the Office during the reporting period with respect to significant problems, abuses, or deficiencies identified in clause (i);
`(iii) a statement of whether corrective action has been completed on each significant recommendation described in previous semiannual reports, and, in a case where corrective action has been completed, a description of such corrective action;
`(iv) a certification that the Inspector General has had full and direct access to all information relevant to the performance of the functions of the Inspector General;
`(v) a description of all cases occurring during the reporting period where the Inspector General could not obtain documentary evidence relevant to any inspection, audit, or investigation due to the lack of authority to subpoena such information; and
`(vi) such recommendations as the Inspector General may wish to make
concerning legislation to promote economy and efficiency in the
administration of programs and operations undertaken by the Defense
Intelligence Agency, and to detect and eliminate fraud and abuse in such
programs and operations.
`(B) The Inspector General of the Defense Intelligence Agency shall report
immediately to the Director whenever the Inspector General becomes aware of
particularly serious or flagrant problems, abuses, or deficiencies relating
to the administration of programs or operations. The Director shall transmit
such report to the intelligence committees within 7 calendar days, together
with any comments the Director considers appropriate.
`(C) In the event that--
`(i) the Inspector General of the Defense Intelligence Agency is unable to resolve any differences with the Director affecting the execution of the Inspector General's duties or responsibilities; or
`(ii) the Inspector General, after exhausting all possible alternatives,
is unable to obtain significant documentary information in the course of an
investigation, inspection, or audit,
the Inspector General shall immediately report such matter to the
intelligence committees.
`(D) Section 5 shall not apply to the Inspector General and the Office of
Inspector General of the Defense Intelligence Agency.
`(5) Subject to applicable law and the policies of the Director, the
Inspector General of the Defense Intelligence Agency shall select, appoint,
and employ such officers and employees as may be necessary to carry out the
functions of the Inspector General. In making such selections, the Inspector
General shall ensure that such officers and employees have the requisite
training and experience to enable the Inspector General to carry out the
duties of the Inspector General effectively. In this regard, the Inspector
General shall create within the organization of the Inspector General a
career cadre of sufficient size to provide appropriate continuity and
objectivity needed for the effective performance of the duties of the
Inspector General.
`(6) Beginning with fiscal year 1996, there shall be included in the
National Foreign Intelligence Program budget a separate account for the
Office of Inspector General of the Defense Intelligence Agency.
`(7) In this subsection, the term `intelligence committees' means the
Permanent Select Committee on Intelligence of the House of Representatives
and the Select Committee on Intelligence of the Senate.'.
(3) Implementation: The Director of the Defense Intelligence Agency shall, by not later than 60 days after the date of the enactment of this Act and in accordance with the amendments made by this subsection--
(A) establish the Office of Inspector General of the Defense Intelligence Agency;
(B) appoint the Inspector General of the Defense Intelligence Agency; and
(C) transfer to that Office the office of the Defense Intelligence Agency on the day before the date of the enactment of this Act known as the `Office of Inspector General'.
(4) Transfer of resources of existing office: The personnel, assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, or available to the office in the Defense Intelligence Agency on the day before the date of the enactment of this Act known as `Office of Inspector General' are hereby transferred to the Office of Inspector General of the Defense Intelligence Agency established under the amendments made by this subsection.
(5) Termination of existing office: The office in the Defense Intelligence Agency on the day before the date of the enactment of this Act known as `Office of Inspector General' is terminated effective on the date of the establishment of the Office of Inspector General of the Defense Intelligence Agency pursuant to the amendments made by this subsection.
(6) Conforming amendment: The first section 8G of the Inspector General Act of 1978 (5 U.S.C. App.) is amended in subsection (c) by striking `subsection (f)' and inserting `subsections (f) and (i)'.
(7) Reports to intelligence committees:
(A) Reporting requirement: Subchapter I of chapter 21 of title 10, United States Code, is amended by adding at the end the following:
[Page: H5551]
`427. Reports on activities of the Office of Inspector General of the Defense Intelligence Agency
`(a) Reporting Requirement: The Director of the Defense Intelligence Agency shall submit to the intelligence committees any report or findings and recommendations of an inspection, investigation, or audit conducted by the Office of Inspector General of the Defense Intelligence Agency which has been requested by the Chairman or Ranking Minority Member of either of the intelligence committees.
`(b) Intelligence Committees Defined: In this section, the term `intelligence committees' means the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate.'.
(B) Clerical amendment: The analysis at the beginning of subchapter I of chapter 23 of title 10, United States Code, is amended by adding at the end the following:
`427. Reports on activities of the Office of Inspector General of the Defense Intelligence Agency.'.
(b) NSA:
(1) Purposes: The purposes of this subsection are to--
(A) create an objective and effective office, appropriately accountable to Congress, to initiate and conduct independently inspections, investigations, and audits relating to programs and operations of the National Security Agency;
(B) provide leadership and recommend policies designed to promote economy, efficiency, and effectiveness in the administration of such programs and operations, and detect fraud and abuse in such programs and operations;
(C) provide a means for keeping the Director of the National Security Agency fully and currently informed about problems and deficiencies relating to the administration of such programs and operations, and the necessity for and the progress of corrective actions; and
(D) in the manner prescribed by the amendments made by this subsection, ensure that the Senate Select Committee on Intelligence and the House Permanent Select Committee on Intelligence are kept similarly informed of significant problems and deficiencies as well as the necessity for and the progress of corrective actions.
(2) Establishment of office of inspector general: The first section 8G of that Act is amended--
(A) in subsection (a)(2), as amended by subsection (a)(2) of this section, by inserting after `the Defense Intelligence Agency,' the following: `the National Security Agency,'; and
(B) by adding after subsection (i), as added by subsection (a)(2) of this
section, the following:
`(j)(1) The Inspector General of the National Security Agency shall be
appointed by the Director of the National Security Agency (in this subsection
referred to as the `Director') without regard to political affiliation and on
the basis of integrity, compliance with the security standards of the
National Security Agency, and prior experience in the field of foreign
intelligence and in a Federal office of Inspector General.
`(2)(A) Notwithstanding the second sentence of section 8G(d), the Director
may prohibit the Inspector General of the National Security Agency from
initiating, carrying out, or completing any audit, inspection, or
investigation if the Director determines that such prohibition is necessary
to protect vital national security interests of the United States.
`(B) If the Director exercises any power under subparagraph (A), the
Director shall submit an appropriately classified statement of the reasons
for the exercise of such power within 7 days to the intelligence committees.
The Director shall advise the Inspector General at the time such report is
submitted, and, to the extent consistent with the protection of intelligence
sources and methods, provide the Inspector General with a copy of any such
report. In such cases, the Inspector General may submit such comments to the
intelligence committees that the Director considers appropriate.
`(3) The Inspector General of the National Security Agency shall take due
regard for the protection of intelligence sources and methods in the
preparation of all reports issued by the Office of Inspector General of the
National Security Agency, and, to the extent consistent with the purpose and
objective of such reports, take such measures as may be appropriate to
minimize the disclosure of intelligence sources and methods described in such
reports.
`(4)(A) The Inspector General of the National Security Agency shall, not
later than January 31 and July 31 of each year, prepare and submit to the
Director a classified semiannual report summarizing the activities of the
Office of Inspector General of the National Security Agency during the
immediately preceding 6-month period ending December 31 (of the preceding
year) and June 30, respectively. Within 30 days after receipt of such
reports, the Director shall transmit such reports to the intelligence
committees with any comments the Director may deem appropriate. Such reports
shall, at a minimum, include a list of the title or subject of each
inspection, investigation, or audit conducted during the reporting period
and--
`(i) a description of significant problems, abuses, and deficiencies relating to the administration of programs and operations of the National Security Agency identified by the Office during the reporting period;
`(ii) a description of the recommendations for corrective action made by the Office during the reporting period with respect to significant problems, abuses, or deficiencies identified in clause (i);
`(iii) a statement of whether corrective action has been completed on each significant recommendation described in previous semiannual reports, and, in a case where corrective action has been completed, a description of such corrective action;
`(iv) a certification that the Inspector General has had full and direct access to all information relevant to the performance of the functions of the Inspector General;
`(v) a description of all cases occurring during the reporting period where the Inspector General could not obtain documentary evidence relevant to any inspection, audit, or investigation due to the lack of authority to subpoena such information; and
`(vi) such recommendations as the Inspector General may wish to make
concerning legislation to promote economy and efficiency in the
administration of programs and operations undertaken by the National Security
Agency, and to detect and eliminate fraud and abuse in such programs and
operations.
`(B) The Inspector General of the National Security Agency shall report
immediately to the Director whenever
the Inspector General becomes aware of particularly serious or flagrant
problems, abuses, or deficiencies relating to the administration of programs
or operations. The Director shall transmit such report to the intelligence
committees within 7 calendar days, together with any comments the Director
considers appropriate.
`(C) In the event that--
`(i) the Inspector General of the National Security Agency is unable to resolve any differences with the Director affecting the execution of the Inspector General's duties or responsibilities; or
`(ii) the Inspector General, after exhausting all possible alternatives,
is unable to obtain significant documentary information in the course of an
investigation, inspection, or audit,
the Inspector General shall immediately report such matter to the
intelligence committees.
`(D) Section 5 shall not apply to the Inspector General and the Office of
Inspector General of the National Security Agency.
`(5) Subject to applicable law and the policies of the Director, the
Inspector General of the National Security Agency shall select, appoint, and
employ such officers and employees as may be necessary to carry out the
functions of the Inspector General. In making such selections, the Inspector
General shall ensure that such officers and employees have the requisite
training and experience to enable the Inspector General to carry out the
duties of the Inspector General effectively. In this regard, the Inspector
General shall create within the organization of the Inspector General a
career cadre of sufficient size to provide appropriate continuity and
objectivity needed for the effective performance of the duties of the
Inspector General.
`(6) Beginning with fiscal year 1996, there shall be included in the
National Foreign Intelligence Program budget a separate account for the
Office of Inspector General of the National Security Agency.
`(7) In this subsection, the term `intelligence committees' means the
Permanent Select Committee on Intelligence of the House of Representatives
and the Select Committee on Intelligence of the Senate.'.
(3) Implementation: The Director of the National Security Agency shall, by not later than 60 days after the date of the enactment of this Act and in accordance with the amendments made by this subsection--
(A) establish the Office of Inspector General of the National Security Agency;
(B) appoint the Inspector General of the National Security Agency; and
(C) transfer to that Office the office of the National Security Agency on the day before the date of the enactment of this Act known as the `Office of Inspector General'.
(4) Transfer of resources of existing office: The personnel, assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, or available to the office in the National Security Agency on the day before the date of the enactment of this Act known as `Office of Inspector General' are hereby transferred to the Office of Inspector General of the National Security Agency established under the amendments made by this subsection.
(5) Termination of existing office: The office in the National Security Agency on the day before the date of the enactment of this Act known as `Office of Inspector General' is terminated effective on the date of the establishment of the Office of Inspector General of the National Security Agency pursuant to the amendments made by this subsection.
(6) Conforming amendments: The first section 8G of the Inspector General Act of 1978 (5 U.S.C. App.) is amended in subsection (c), as amended by subsection (a)(6) of this section, by striking `subsections (f) and (i)' and inserting `subsections (f), (i), and (j)'.
(7) Reports to intelligence committees: The National
Security Agency Act of 1959 (50 U.S.C. 402 note) is amended by adding at the
end the following:
`Sec. 19. (a) The Director of the National Security Agency
shall submit to the intelligence committees any report or findings and
recommendations of an inspection, investigation, or audit conducted by the
Office of Inspector General of the National Security Agency which has been
requested by the Chairman or Ranking Minority Member of either of the
intelligence committees.
`(b) In this section, the term `intelligence committees' means the Permanent
Select Committee on Intelligence of the House of Representatives and the
Select Committee on Intelligence of the Senate.'.
(8) Relationship of inspector general of department to those of dia and nsa: Section 8 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following:
`(h)(1) The Inspector General of the Department of Defense shall not have any authority to conduct any activity with respect to any matter that the Secretary of Defense determines relates solely to the Defense Intelligence Agency or the National Security Agency.
`(2) Upon request of the Inspector General of the Defense Intelligence Agency or the National Security Agency, the Inspector General of the Department of Defense may provide to the Inspector General making the request such resources (including personnel) as are appropriate to enable that Inspector General to carry out activities authorized by this Act.'.
