NSA Internal Watchdog Act - Amends the Inspector General Act of 1978 to require the President to appoint, with advice and consent of the Senate, the Inspector General of the National Security Agency (NSA). (Currently, the NSA Inspector General is appointed by the NSA Director.)
Directs the Inspector General to include in an annual report to Congress a review of the mechanisms for NSA employees or contractors to submit complaints.
Establishes a General Counsel to the NSA Inspector General, to be appointed by the Inspector General.
Authorizes the Inspector General, after providing the Attorney General (DOJ) with seven days' advance notice, to subpoena the attendance and testimony of former NSA employees or NSA contractors, former contractors, or former detailees.
Requires the Inspector General to provide Congress with an evaluation of any notice or statement of reasons the Inspector General receives from the Secretary of Defense (DOD) regarding the Secretary's exercise of authority in the interest of national security to prohibit the Inspector General from initiating, carrying out, or completing any audit or investigation.
Directs the Inspector General, in carrying out any audit or investigation of a surveillance or data collection program, to assess the impact of such program on civil rights and liberties.
Requires the Inspector General's reports to Congress to be made available to all Members of Congress.
Directs the Inspector General to audit and report to Congress regarding the effectiveness and use (including improper or illegal use) of NSA surveillance and data collection programs, including programs under the Foreign Intelligence Surveillance Act of 1978 (FISA) that authorize: (1) the Federal Bureau of Investigation (FBI) to submit applications to the FISA court for an order requiring the production of tangible things (commonly referred to as business records, including books, records, papers, documents, and other items); and (2) the Attorney General and the Director of National Intelligence (DNI), with the approval of the FISA court or under exigent circumstances, to authorize the targeting of persons located outside the United States.
Requires such audit to address: (1) the interactions between the NSA and the FISA court, and (2) the process for conducting background investigations of persons for NSA employment or for receiving access to classified information.