1995 Congressional DocumentsIntelligence and Security
1995 Congressional Documents
104th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 104-427
_______________________________________________________________________
INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1996
_______
December 20, 1995.--Ordered to be printed
_______________________________________________________________________
Mr. Combest, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 1655]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the Senate to the bill (H.R.
1655), to authorize appropriations for fiscal year 1996 for
intelligence and intelligence-related activities of the United
States Government, the Community Management Account, and the
Central Intelligence Agency Retirement and Disability System,
and for other purposes, having met, after full and free
conference, have agreed to recommend and do recommend to their
respective Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the
Senate amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``Intelligence Authorization Act for Fiscal Year 1996''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--INTELLIGENCE ACTIVITIES
Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Community Management Account.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
Sec. 201. Authorization of appropriations.
TITLE III--GENERAL PROVISIONS
Sec. 301. Increase in employee compensation and benefits authorized by
law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Application of sanctions laws to intelligence activities.
Sec. 304. Thrift savings plan forfeiture.
Sec. 305. Authority to restore spousal pension benefits to spouses who
cooperate in criminal investigations and prosecutions for
national security offenses.
Sec. 306. Secrecy agreements used in intelligence activities.
Sec. 307. Limitation on availability of funds for automatic
declassification of records over 25 years old.
Sec. 308. Amendment to the Hatch Act Reform Amendments of 1993.
Sec. 309. Report on personnel policies.
Sec. 310. Assistance to foreign countries.
Sec. 311. Financial management of the National Reconnaissance Office.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
Sec. 401. Extension of the CIA Voluntary Separation Pay Act.
Sec. 402. Volunteer service program.
Sec. 403. Authorities of the Inspector General of the Central
Intelligence Agency.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
Sec. 501. Defense intelligence senior level positions.
Sec. 502. Comparable benefits and allowances for civilian and military
personnel assigned to defense intelligence functions overseas.
Sec. 503. Extension of authority to conduct intelligence commercial
activities.
Sec. 504. Availability of funds for Tier II UAV.
Sec. 505. Military Department Civilian Intelligence Personnel Management
System.
Sec. 506. Enhancement of capabilities of certain army facilities.
TITLE VI--FEDERAL BUREAU OF INVESTIGATION
Sec. 601. Disclosure of information and consumer reports to FBI for
counterintelligence purposes.
TITLE VII--TECHNICAL AMENDMENTS
Sec. 701. Clarification with respect to pay for Director or Deputy
Director of Central Intelligence appointed from commissioned
officers of the Armed Forces.
Sec. 702. Change of designation of CIA Office of Security.
TITLE I--INTELLIGENCE ACTIVITIES
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fiscal
year 1996 for the conduct of the intelligence and intelligence-
related activities of the following elements of the United
States Government:
(1) The Central Intelligence Agency.
(2) The Department of Defense.
(3) The Defense Intelligence Agency.
(4) The National Security Agency.
(5) The Department of the Army, the Department of
the Navy, and the Department of the Air Force.
(6) The Department of State.
(7) The Department of Treasury.
(8) The Department of Energy.
(9) The Federal Bureau of Investigation.
(10) The Drug Enforcement Administration.
(11) The National Reconnaissance Office.
(12) The Central Imagery Office.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
(a) Specifications of Amounts and Personnel Ceilings.--The
amounts authorized to be appropriated under section 101, and
the authorized personnel ceilings as of September 30, 1996, for
the conduct of the intelligence and intelligence-related
activities of the elements listed in such section, are those
specified in the classified Schedule of Authorizations prepared
to accompany the conference report on the bill H.R. 1655 of the
One Hundred Fourth Congress.
(b) Availability of Classified Schedule of
Authorizations.--The Schedule of Authorizations shall be made
available to the Committees on Appropriations of the Senate and
House of Representatives and to the President. The President
shall provide for suitable distribution of the Schedule, or of
appropriate portions of the Schedule, within the executive
branch.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
(a) Authority for Adjustments.--With the approval of the
Director of the Office of Management and Budget, the Director
of Central Intelligence may authorize employment of civilian
personnel in excess of the number authorized for fiscal year
1996 under section 102 when the Director of Central
Intelligence determines that such action is necessary to the
performance of important intelligence functions, except that
the number of personnel employed in excess of the number
authorized under such section may not, for any element of the
intelligence community, exceed two percent of the number of
civilian personnel authorized under such section for such
element.
(b) Notice to Intelligence Committees.--The Director of
Central Intelligence shall promptly notify the Permanent Select
Committee on Intelligence of the House of Representatives and
the Select Committee on Intelligence of the Senate whenever he
exercises the authority granted by this section.
SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.
(a) Authorization of Appropriations.--There is authorized
to be appropriated for the Community Management Account of the
Director of Central Intelligence for fiscal year 1996 the sum
of $90,713,000. Within such amounts authorized, funds
identified in the classified Schedule of Authorizations
referred to in section 102(a) for the Advanced Research and
Development Committee and the Environmental Task Force shall
remain available until September 30, 1997.
(b) Authorized Personnel Levels.--The Community Management
Staff of the Director of Central Intelligence is authorized 247
full-time personnel as of September 30, 1996. Such personnel of
the Community Management Staff may be permanent employees of
the Community Management Staff or personnel detailed from other
elements of the United States Government.
(c) Reimbursement.--During fiscal year 1996, any officer or
employee of the United States or a member of the Armed Forces
who is detailed to the Community Management Staff from another
element of the United States Government shall be detailed on a
reimbursable basis, except that any such officer, employee or
member may be detailed on a nonreimbursable basis for a period
of less than one year for the performance of temporary
functions as required by the Director of Central Intelligence.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated for the Central
Intelligence Agency Retirement and Disability Fund for fiscal
year 1996 the sum of $213,900,000.
TITLE III--GENERAL PROVISIONS
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY
LAW.
Appropriations authorized by this Act for salary, pay,
retirement, and other benefits for Federal employees may be
increased by such additional or supplemental amounts as may be
necessary for increases in such compensation or benefits
authorized by law.
SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.
The authorization of appropriations by this Act shall not
be deemed to constitute authority for the conduct of any
intelligence activity which is not otherwise authorized by the
Constitution or the laws of the United States.
SEC. 303. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.
(a) General Provisions.--The National Security Act of 1947
(50 U.S.C. 401 et seq.), is amended by adding at the end
thereof the following new title:
``TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES
``stay of sanctions
``Sec. 901. Notwithstanding any provision of law identified
in section 904, the President may stay the imposition of an
economic, cultural, diplomatic, or other sanction or related
action by the United States Government concerning a foreign
country, organization, or person when the President determines
and reports to Congress in accordance with section 903 that to
proceed without delay would seriously risk the compromise of an
ongoing criminal investigation directly related to the
activities giving rise to the sanction or an intelligence
source or method directly related to the activities giving rise
to the sanction. Any such stay shall be effective for a period
of time specified by the President, which period may not exceed
120 days, unless such period is extended in accordance with
section 902.
``extension of stay
``Sec. 902. Whenever the President determines and reports
to Congress in accordance with section 903 that a stay of
sanctions or related actions pursuant to section 901 has not
afforded sufficient time to obviate the risk to an ongoing
criminal investigation or to an intelligence source or method
that gave rise to the stay, he may extend such stay for a
period of time specified by the President, which period may not
exceed 120 days. The authority of this section may be used to
extend the period of a stay pursuant to section 901 for
successive periods of not more than 120 days each.
``reports
``Sec. 903. Reports to Congress pursuant to sections 901
and 902 shall be submitted promptly upon determinations under
this title. Such reports shall be submitted to the Committee on
International Relations of the House of Representatives and the
Committee on Foreign Relations of the Senate. With respect to
determinations relating to intelligence sources and methods,
reports shall also be submitted to the Permanent Select
Committee on Intelligence of the House of Representatives and
the Select Committee on Intelligence of the Senate. With
respect to determinations relating to ongoing criminal
investigations, reports shall also be submitted to the
Committees on the Judiciary of the House of Representatives and
the Senate.
``laws subject to stay
``Sec. 904. The President may use the authority of sections
901 and 902 to stay the imposition of an economic, cultural,
diplomatic, or other sanction or related action by the United
States Government related to the proliferation of weapons of
mass destruction, their delivery systems, or advanced
conventional weapons otherwise required to be imposed by the
Chemical and Biological Weapons Control and Warfare Elimination
Act of 1991 (title III of Public Law 102-182); the Nuclear
Proliferation Prevention Act of 1994 (title VIII of Public Law
103-236); title XVII of the National Defense Authorization Act
for Fiscal Year 1991 (Public Law 101-510) (relating to the
nonproliferation of missile technology); the Iran-Iraq Arms
Nonproliferation Act of 1992 (title XVI of Public Law 102-484);
section 573 of the Foreign Operations, Export Financing Related
Programs Appropriations Act, 1994 (Public Law 103-87); section
563 of the Foreign Operations, Export Financing Related
Programs Appropriations Act, 1995 (Public Law 103-306); and
comparable provisions.
``application
``Sec. 905. This title shall cease to be effective on the
date which is one year after the date of the enactment of this
title.''.
(b) Clerical Amendment.--The table of contents in the first
section of such Act is amended by adding at the end thereof the
following:
``TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES
``Sec. 901. Stay of sanctions.
``Sec. 902. Extension of stay.
``Sec. 903. Reports.
``Sec. 904. Laws subject to stay.
``Sec. 905. Application.''.
SEC. 304. THRIFT SAVINGS PLAN FORFEITURE.
(a) In General.--Section 8432(g) of title 5, United States
Code, is amended by adding at the end the following new
paragraph:
``(5) Notwithstanding any other provision of law,
contributions made by the Government for the benefit of an
employee or Member under subsection (c), and all earnings
attributable to such contributions, shall be forfeited if the
annuity of the employee or Member, or that of a survivor or
beneficiary, is forfeited under subchapter II of chapter 83.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to offenses upon which the requisite annuity
forfeitures are based occurring on or after the date of the
enactment of this Act.
SEC. 305. AUTHORITY TO RESTORE SPOUSAL PENSION BENEFITS TO SPOUSES WHO
COOPERATE IN CRIMINAL INVESTIGATIONS AND
PROSECUTIONS FOR NATIONAL SECURITY OFFENSES.
Section 8318 of title 5, United States Code, is amended by
adding at the end the following:
``(e) The spouse of an individual whose annuity or retired
pay is forfeited under section 8312 or 8313 after the date of
enactment of this subsection shall be eligible for spousal
pension benefits if the Attorney General of the United States
determines that the spouse fully cooperated with Federal
authorities in the conduct of a criminal investigation and
subsequent prosecution of the individual which resulted in such
forfeiture.''.
SEC. 306. SECRECY AGREEMENTS USED IN INTELLIGENCE ACTIVITIES.
Notwithstanding any other provision of law not specifically
referencing this section, a nondisclosure policy form or
agreement that is to be executed by a person connected with the
conduct of an intelligence or intelligence-related activity,
other than an employee or officer of the United States
Government, may contain provisions appropriate to the
particular activity for which such document is to be used. Such
form or agreement shall, at a minimum--
(1) require that the person will not disclose any
classified information received in the course of such
activity unless specifically authorized to do so by the
United States Government; and
(2) provide that the form or agreement does not
bar--
(A) disclosures to Congress; or
(B) disclosures to an authorized official
of an executive agency that are deemed
essential to reporting a violation of United
States law.
SEC. 307. LIMITATION ON AVAILABILITY OF FUNDS FOR AUTOMATIC
DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.
(a) In General.--The Director of Central Intelligence shall
use no more than $25,000,000 of the amounts authorized to be
appropriated for fiscal year 1996 by this Act for the National
Foreign Intelligence Program to carry out the provisions of
section 3.4 of Executive Order 12958. The Director may, in the
Director's discretion, draw on this amount for allocation to
the agencies within the National Foreign Intelligence Program
for the purpose of automatic declassification of records over
25 years old.
(b) Required Budget Submission.--The President shall submit
for fiscal year 1997 and each of the following fiscal years
through fiscal year 2000 a budget request which specifically
sets forth the funds requested for implementation of section
3.4 of Executive Order 12958.
SEC. 308. AMENDMENT TO THE HATCH ACT REFORM AMENDMENTS OF 1993.
Section 7325 of title 5, United States Code, is amended by
adding after ``section 7323(a)'' the following: ``and paragraph
(2) of section 7323(b)''.
SEC. 309. REPORT ON PERSONNEL POLICIES.
(a) Report Required.--Not later than three months after the
date of enactment of this Act, the Director of Central
Intelligence shall submit to the intelligence committees of
Congress a report describing personnel procedures, and
recommending necessary legislation, to provide for mandatory
retirement for expiration of time in class, comparable to the
applicable provisions of section 607 of the Foreign Service Act
of 1980 (22 U.S.C. 4007), and termination based on relative
performance, comparable to section 608 of the Foreign Service
Act of 1980 (22 U.S.C. 4008), and to provide for other
personnel review systems for all civilian employees of the
Central Intelligence Agency, the National Security Agency, the
Defense Intelligence Agency, and the intelligence elements of
the Army, Navy, Air Force, and Marine Corps. Such report shall
contain a description and analysis of voluntary separation
incentive options, including a waiver of the 2 percent penalty
reduction for early retirement under certain Federal retirement
systems.
(b) Coordination.--The preparation of the report required
by subsection (a) shall be coordinated as appropriate with
elements of the intelligence community (as defined in section
3(4) of the National Security Act of 1947 (50 U.S.C. 401(4)).
(c) Definition.--As used in this section, the term
``intelligence committees of Congress'' means the Select
Committee on Intelligence of the Senate and the Permanent
Select Committee on Intelligence of the House of
Representatives.
SEC. 310. ASSISTANCE TO FOREIGN COUNTRIES.
Notwithstanding any other provision of law, funds
authorized to be appropriated by this Act may be used to
provide assistance to a foreign country for counterterrorism
efforts if--
(1) such assistance is provided for the purpose of
protecting the property of the United States Government
or the life and property of any United States citizen,
or furthering the apprehension of any individual
involved in any act of terrorism against such property
or persons; and
(2) the Committee on Intelligence of the Senate and
the Permanent Select Committee on Intelligence of the
House of Representatives are notified not later than 15
days prior to the provision of such assistance.
SEC. 311. FINANCIAL MANAGEMENT OF THE NATIONAL RECONNAISSANCE OFFICE.
(a) Management Review.--(1) The Inspector General for the
Central Intelligence Agency, assisted by the Inspector General
of the Department of Defense, shall undertake a comprehensive
review of the financial management of the National
Reconnaissance Office to evaluate the effectiveness of policies
and internal controls over the budget of the National
Reconnaissance Office, including the use of carry-forward
funding, to ensure that National Reconnaissance Office funds
are used in accordance with applicable Federal acquisition
regulations and the policies of the Director of Central
Intelligence and consistent with those of the Department of
Defense, the guidelines of the National Reconnaissance Office,
and congressional direction.
(2) The review required by paragraph (1) shall--
(A) determine the quality of the development and
implementation of the budget process within the
National Reconnaissance Office at both the comptroller
and directorate level;
(B) assess the advantages and disadvantages of the
use of incremental versus full funding for contracts
entered into by the National Reconnaissance Office;
(C) assess the advantages and disadvantages of the
National Reconnaissance Office's use of carry-forward
funding;
(D) determine how the National Reconnaissance
Office defines, identifies, and justifies carry-forward
funding requirements;
(E) determine how the National Reconnaissance
Office tracks and manages carry-forward funding;
(F) determine how the National Reconnaissance
Office plans to comply with congressional direction
regarding carry-forward funding;
(G) determine whether or not a contract entered
into by the National Reconnaissance Office has ever
encountered a contingency which required the
utilization of more than 30 days of carry-forward
funding;
(H) consider the proposal by the Director of
Central Intelligence for the establishment of a
position of a Chief Financial Officer, and assess how
the functions to be performed by that officer would
enhance the financial management of the National
Reconnaissance Office; and
(I) make recommendations, as appropriate, to
improve control and management of the budget process of
the National Reconnaissance Office.
(3) The Director of Central Intelligence shall submit a
report to the Congress setting forth the findings of the review
required by paragraph (1) not later than March 1, 1996, with an
interim report provided to the Congress not later than 2 weeks
after the enactment of this Act.
(b) Report.--(1) Not later than January 30, 1996, the
President shall submit a report to the appropriate committees
of the Congress on a proposal to subject the budget of the
intelligence community to greater oversight by the executive
branch of Government.
(2) Such report shall include (among other things)--
(A) consideration of establishing by statute a
financial control officer for the National
Reconnaissance Office, other elements of the
intelligence community, and for the intelligence
community as a whole;
(B) recommendations for procedures to be used by
the Office of Management and Budget for review of the
budget of the National Reconnaissance Office;
(C) a proposed statutory provision that would
require the Director of Central Intelligence to
establish a policy to restrict the National
Reconnaissance Office authority on carry-forward
funding in a manner consistent with the restriction on
such authority within the Department of Defense; and
(D) an evaluation of how changes proposed as a
result of the review required by subsection (a) will
affect, directly or indirectly, the National
Reconnaissance Office's streamlined acquisition process
and, ultimately, program costs.
(c) Definition.--As used in this section, the term
``intelligence community'' has the meaning given to the term in
section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)).
TITLE IV--CENTRAL INTELLIGENCE AGENCY
SEC. 401. EXTENSION OF THE CIA VOLUNTARY SEPARATION PAY ACT.
(a) Extension of Authority.--Section 2(f) of the Central
Intelligence Agency Voluntary Separation Pay Act (50 U.S.C.
403-4(f)) is amended by striking ``September 30, 1997'' and
inserting ``September 30, 1999''.
(b) Remittance of Funds.--Section 2 of the Central
Intelligence Agency Voluntary Separation Pay Act (50 U.S.C.
403-4) is amended by inserting at the end the following new
subsection:
``(i) Remittance of Funds.--The Director shall remit to the
Office of Personnel Management for deposit in the Treasury of
the United States to the credit of the Civil Service Retirement
and Disability Fund (in addition to any other payments which
the Director is required to make under subchapter III of
chapter 83 and subchapter II of chapter 84 of title 5, United
States Code), an amount equal to 15 percent of the final basic
pay of each employee who, in fiscal year 1998 or fiscal year
1999, retires voluntarily under section 8336, 8412, or 8414 of
such title or resigns and to whom a voluntary separation
incentive payment has been or is to be paid under this
section.''.
SEC. 402. VOLUNTEER SERVICE PROGRAM.
(a) General Authority.--The Director of Central
Intelligence is authorized to establish and maintain a program
from fiscal years 1996 through 2001 to utilize the services
contributed by not more than 50 annuitants who serve without
compensation as volunteers in aid of the review for
declassification or downgrading of classified information by
the Central Intelligence Agency under applicable Executive
orders governing the classification and declassification of
national security information and Public Law 102-526.
(b) Costs Incidental to Services.--The Director is
authorized to use sums made available to the Central
Intelligence Agency by appropriations or otherwise for paying
the costs incidental to the utilization of services contributed
by individuals under subsection (a). Such costs may include
(but need not be limited to) training, transportation, lodging,
subsistence, equipment, and supplies. The Director may
authorize either direct procurement of equipment, supplies, and
services, or reimbursement for expenses, incidental to the
effective use of volunteers. Such expenses or services shall be
in accordance with volunteer agreements made with such
individuals. Sums made available for such costs may not exceed
$100,000.
(c) Application of Certain Provisions of Law.--A volunteer
under this section shall be considered to be a Federal employee
for the purposes of subchapter I of title 81 (relating to
compensation of Federal employees for work injuries) and
section 1346(b) and chapter 171 of title 28 (relating to tort
claims). A volunteer under this section shall be covered by and
subject to the provisions of chapter 11 of title 18 of the
United States Code as if they were employees or special
Government employees depending upon the days of expected
service at the time they begin volunteering.
SEC. 403. AUTHORITIES OF THE INSPECTOR GENERAL OF THE CENTRAL
INTELLIGENCE AGENCY.
(a) Reports by the Inspector General.--Section 17(b)(5) of
the Central Intelligence Act of 1949 (50 U.S.C. 403q(b)(5)) is
amended to read as follows:
``(5) In accordance with section 535 of title 28, United
States Code, the Inspector General shall report to the Attorney
General any information, allegation, or complaint received by
the Inspector General relating to violations of Federal
criminal law that involve a program or operation of the Agency,
consistent with such guidelines as may be issued by the
Attorney General pursuant to subsection (b)(2) of such section.
A copy of all such reports shall be furnished to the
Director.''.
(b) Exception to Nondisclosure Requirement.--Section
17(e)(3)(A) of such Act is amended by inserting after
``investigation'' the following: ``or the disclosure is made to
an official of the Department of Justice responsible for
determining whether a prosecution should be undertaken''.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
SEC. 501. DEFENSE INTELLIGENCE SENIOR LEVEL POSITIONS.
Section 1604 of title 10, United States Code, is amended to
read as follows:
``Sec. 1604. Civilian personnel management
``(a) General Personnel Authority.--The Secretary of
Defense may, without regard to the provisions of any other law
relating to the number, classification, or compensation of
Federal employees--
``(1) establish such positions for employees in the
Defense Intelligence Agency and the Central Imagery
Office as the Secretary considers necessary to carry
out the functions of that Agency and Office, including
positions designated under subsection (f) as Defense
Intelligence Senior Level positions;
``(2) appoint individuals to those positions; and
``(3) fix the compensation for service in those
positions.
``(b) Authority To Fix Rates of Basic Pay; Other Allowances
and Benefits.--(1) The Secretary of Defense shall, subject to
subsection (c), fix the rates of basic pay for positions
established under subsection (a) in relation to the rates of
basic pay provided in subpart D of part III of title 5 for
positions subject to that title which have corresponding levels
of duties and responsibilities. Except as otherwise provided by
law, an employee of the Defense Intelligence Agency or the
Central Imagery Office may not be paid basic pay at a rate in
excess of the maximum rate payable under section 5376 of title
5.
``(2) The Secretary of Defense may provide employees of the
Defense Intelligence Agency and the Central Imagery Office
compensation (in addition to basic pay under paragraph (1)) and
benefits, incentives, and allowances consistent with, and not
in excess of the levels authorized for, comparable positions
authorized by title 5.
``(c) Prevailing Rates Systems.--The Secretary of Defense
may, consistent with section 5341 of title 5, adopt such
provisions of that title as provide for prevailing rate systems
of basic pay and may apply those provisions to positions in or
under which the Defense Intelligence Agency or the Central
Imagery Office may employ individuals described by section
5342(a)(2)(A) of such title.
``(d) Allowances Based on Living Costs and Environment for
Employees Stationed Outside Continental United States or in
Alaska.--(1) In addition to the basic compensation payable
under subsection (b), employees of the Defense Intelligence
Agency and the Central Imagery Office described in paragraph
(3) may be paid an allowance, in accordance with regulations
prescribed by the Secretary of Defense, at a rate not in excess
of the allowance authorized to be paid under section 5941(a) of
title 5 for employees whose rates of basic pay are fixed by
statute.
``(2) Such allowance shall be based on--
``(A) living costs substantially higher than in the
District of Columbia;
``(B) conditions of environment which--
``(i) differ substantially from conditions
of environment in the continental United
States; and
``(ii) warrant an allowance as a
recruitment incentive; or
``(C) both of those factors.
``(3) This subsection applies to employees who--
``(A) are citizens or nationals of the United
States; and
``(B) are stationed outside the continental United
States or in Alaska.
``(e) Termination of Employees.--(1) Notwithstanding any
other provision of law, the Secretary of Defense may terminate
the employment of any employee of the Defense Intelligence
Agency or the Central Imagery Office if the Secretary--
``(A) considers such action to be in the interests
of the United States; and
``(B) determines that the procedures prescribed in
other provisions of law that authorize the termination
of the employment of such employee cannot be invoked in
a manner consistent with the national security.
``(2) A decision by the Secretary of Defense to terminate
the employment of an employee under this subsection is final
and may not be appealed or reviewed outside the Department of
Defense.
``(3) The Secretary of Defense shall promptly notify the
Permanent Select Committee on Intelligence of the House of
Representatives and the Select Committee on Intelligence of the
Senate whenever the Secretary terminates the employment of any
employee under the authority of this subsection.
``(4) Any termination of employment under this subsection
shall not affect the right of the employee involved to seek or
accept employment with any other department or agency of the
United States if that employee is declared eligible for such
employment by the Director of the Office of Personnel
Management.
``(5) The authority of the Secretary of Defense under this
subsection may be delegated only to the Deputy Secretary of
Defense, the Director of the Defense Intelligence Agency (with
respect to employees of the Defense Intelligence Agency), and
the Director of the Central Imagery Office (with respect to
employees of the Central Imagery Office). An action to
terminate employment of an employee by any such officer may be
appealed to the Secretary of Defense.
``(f) Defense Intelligence Senior Level Positions.--(1) In
carrying out subsection (a)(1), the Secretary may designate
positions described in paragraph (3) as Defense Intelligence
Senior Level positions. The total number of positions
designated under this subsection, when combined with the total
number of positions in the Defense Intelligence Senior
Executive Service under section 1601 of this title, may not
exceed the total number of positions in the Defense
Intelligence Senior Executive Service as of June 1, 1995.
``(2) Positions designated under this subsection shall be
treated as equivalent for purposes of compensation to the
senior level positions to which section 5376 of title 5 is
applicable.
``(3) Positions that may be designated as Defense
Intelligence Senior Level positions are positions in the
Defense Intelligence Agency and Central Imagery Office that (A)
are classified above the GS-15 level, (B) emphasize functional
expertise and advisory activity, but (C) do not have the
organizational or program management functions necessary for
inclusion in the Defense Intelligence Senior Executive Service.
``(4) Positions referred to in paragraph (3) include
Defense Intelligence Senior Technical positions and Defense
Intelligence Senior Professional positions. For purposes of
this subsection--
``(A) Defense Intelligence Senior Technical
positions are positions covered by paragraph (3) that
involve any of the following:
``(i) Research and development.
``(ii) Test and evaluation.
``(iii) Substantive analysis, liaison, or
advisory activity focusing on engineering,
physical sciences, computer science,
mathematics, biology, chemistry, medicine, or
other closely related scientific and technical
fields.
``(iv) Intelligence disciplines including
production, collection, and operations in close
association with any of the activities
described in clauses (i), (ii), and (iii) or
related activities; and
``(B) Defense Intelligence Senior Professional
positions are positions covered by paragraph (3) that
emphasize staff, liaison, analytical, advisory, or
other activity focusing on intelligence, law, finance
and accounting, program and budget, human resources
management, training, information services, logistics,
security, and other appropriate fields.
``(g) `Employee' Defined as Including Officers.--In this
section, the term `employee', with respect to the Defense
Intelligence Agency or the Central Imagery Office, includes any
civilian officer of that Agency or Office.''.
SEC. 502. COMPARABLE BENEFITS AND ALLOWANCES FOR CIVILIAN AND MILITARY
PERSONNEL ASSIGNED TO DEFENSE INTELLIGENCE
FUNCTIONS OVERSEAS.
(a) Civilian Personnel.--Section 1605 of title 10, United
States Code, is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' after ``(a)'';
(B) by striking ``of the Department of
Defense'' and all that follows through ``this
subsection,'' and inserting ``described in
subsection (d)''; and
(C) by designating the second sentence as
paragraph (2);
(2) by striking subsection (c) and inserting the
following:
``(c) Regulations prescribed under subsection (a) may not
take effect until the Secretary of Defense has submitted such
regulations to--
``(1) the Committee on Armed Services and the
Select Committee on Intelligence of the Senate; and
``(2) the Committee on National Security and the
Permanent Select Committee on Intelligence of the House
of Representatives.''; and
(3) by adding at the end the following new
subsection:
``(d) Subsection (a) applies to civilian personnel of the
Department of Defense who--
``(1) are United States nationals;
``(2) in the case of employees of the Defense
Intelligence Agency, are assigned to duty outside the
United States and, in the case of other employees, are
assigned to Defense Attache Offices or Defense
Intelligence Agency Liaison Offices outside the United
States; and
``(3) are designated by the Secretary of Defense
for the purposes of subsection (a).''.
(b) Military Personnel.--Section 431 of title 37, United
States Code, is amended--
(1) in subsection (a), by striking ``who are
assigned to'' and all that follows through ``of this
subsection'' and inserting ``described in subsection
(e)'';
(2) by striking subsection (d) and inserting the
following:
``(d) Regulations prescribed under subsection (a) may not
take effect until the Secretary of Defense has submitted such
regulations to--
``(1) the Committee on Armed Services and the
Select Committee on Intelligence of the Senate; and
``(2) the Committee on National Security and the
Permanent Select Committee on Intelligence of the House
of Representatives.''; and
(3) by adding at the end the following new
subsection:
``(e) Subsection (a) applies to members of the Armed Forces
who--
``(1) are assigned--
``(A) to Defense Attache Offices or Defense
Intelligence Agency Liaison Offices outside the
United States; or
``(B) to the Defense Intelligence Agency
and engaged in intelligence-related duties
outside the United States; and
``(2) are designated by the Secretary of Defense
for the purposes of subsection (a).''.
SEC. 503. EXTENSION OF AUTHORITY TO CONDUCT INTELLIGENCE COMMERCIAL
ACTIVITIES.
Section 431(a) of title 10, United States Code, is amended
by striking ``1995'' and inserting ``1998''.
SEC. 504. AVAILABILITY OF FUNDS FOR TIER II UAV.
All funds appropriated for fiscal year 1995 for the Medium
Altitude Endurance Unmanned Aerial Vehicle (Tier II) are
specifically authorized, within the meaning of section 504 of
the National Security Act of 1947 (50 U.S.C. 414), for such
purpose.
SEC. 505. MILITARY DEPARTMENT CIVILIAN INTELLIGENCE PERSONNEL
MANAGEMENT SYSTEM.
(a) Establishment of Training Program.--Chapter 81 of title
10, United States Code, is amended by adding at the end thereof
the following new section:
``Sec. 1599a. Financial assistance to certain employees in acquisition
of critical skills
``(a) Training Program.--The Secretary of Defense shall
establish an undergraduate training program with respect to
civilian employees in the Military Department Civilian
Intelligence Personnel Management System that is similar in
purpose, conditions, content, and administration to the program
established by the Secretary of Defense under section 16 of the
National Security Act of 1959 (50 U.S.C. 402 note) for civilian
employees of the National Security Agency.
``(b) Use of Funds for Training Program.--Any payment made
by the Secretary to carry out the program required to be
established by subsection (a) may be made in any fiscal year
only to the extent that appropriated funds are available for
that purpose.''.
(b) Clerical Amendment.--The table of sections at the
beginning of that chapter is amended by adding at the end
thereof the following new item:
``Sec. 1599a. Financial assistance to certain employees in acquisition
of critical skills.''.
SEC. 506. ENHANCEMENT OF CAPABILITIES OF CERTAIN ARMY FACILITIES.
(a) Authority.--(1) In addition to funds otherwise
available for such purpose, the Secretary of the Army may
transfer or reprogram funds for the enhancement of the
capabilities of the Bad Aibling Station and the Menwith Hill
Station, including improvements of facility infrastructure and
quality of life programs at those installations.
(2) The authority of paragraph (1) may be exercised
notwithstanding any other provision of law.
(b) Source of Funds.--Funds available for the Army for
operations and maintenance for fiscal years 1996 and 1997 shall
be available to carry out subsection (a).
(c) Congressional Notification.--Whenever the Secretary of
the Army determines that an amount to be transferred or
reprogrammed under this section would cause the total amount
transferred or reprogrammed in that fiscal year under this
section to exceed $1,000,000, the Secretary shall notify in
advance the Select Committee on Intelligence, the Committee on
Armed Services, and the Committee on Appropriations of the
Senate and the Permanent Select Committee on Intelligence, the
Committee on National Security, and the Committee on
Appropriations of the House of Representatives and provide a
justification for the increased expenditure.
(d) Statutory Construction.--Nothing in this section may be
construed to modify or obviate existing law or practice with
regard to the transfer or reprogramming of funds in excess of
$2,000,000 from the Department of the Army to the Bad Aibling
Station and the Menwith Hill Station.
TITLE VI--FEDERAL BUREAU OF INVESTIGATION
SEC. 601. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO FBI FOR
COUNTERINTELLIGENCE PURPOSES.
(a) In General.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended by adding after section 623 the
following new section:
``Sec. 624. Disclosures to FBI for counterintelligence purposes
``(a) Identity of Financial Institutions.--Notwithstanding
section 604 or any other provision of this title, a consumer
reporting agency shall furnish to the Federal Bureau of
Investigation the names and addresses of all financial
institutions (as that term is defined in section 1101 of the
Right to Financial Privacy Act of 1978) at which a consumer
maintains or has maintained an account, to the extent that
information is in the files of the agency, when presented with
a written request for that information, signed by the Director
of the Federal Bureau of Investigation, or the Director's
designee, which certifies compliance with this section. The
Director or the Director's designee may make such a
certification only if the Director or the Director's designee
has determined in writing that--
``(1) such information is necessary for the conduct
of an authorized foreign counterintelligence
investigation; and
``(2) there are specific and articulable facts
giving reason to believe that the consumer--
``(A) is a foreign power (as defined in
section 101 of the Foreign Intelligence
Surveillance Act of 1978) or a person who is
not a United States person (as defined in such
section 101) and is an official of a foreign
power; or
``(B) is an agent of a foreign power and is
engaging or has engaged in an act of
international terrorism (as that term is
defined in section 101(c) of the Foreign
Intelligence Surveillance Act of 1978) or
clandestine intelligence activities that
involve or may involve a violation of criminal
statutes of the United States.
``(b) Identifying Information.--Notwithstanding the
provisions of section 604 or any other provision of this title,
a consumer reporting agency shall furnish identifying
information respecting a consumer, limited to name, address,
former addresses, places of employment, or former places of
employment, to the Federal Bureau of Investigation when
presented with a written request, signed by the Director or the
Director's designee, which certifies compliance with this
subsection. The Director or the Director's designee may make
such a certification only if the Director or the Director's
designee has determined in writing that--
``(1) such information is necessary to the conduct
of an authorized counterintelligence investigation; and
``(2) there is information giving reason to believe
that the consumer has been, or is about to be, in
contact with a foreign power or an agent of a foreign
power (as defined in section 101 of the Foreign
Intelligence Surveillance Act of 1978).
``(c) Court Order for Disclosure of Consumer Reports.--
Notwithstanding section 604 or any other provision of this
title, if requested in writing by the Director of the Federal
Bureau of Investigation, or a designee of the Director, a court
may issue an order ex parte directing a consumer reporting
agency to furnish a consumer report to the Federal Bureau of
Investigation, upon a showing in camera that--
``(1) the consumer report is necessary for the
conduct of an authorized foreign counterintelligence
investigation; and
``(2) there are specific and articulable facts
giving reason to believe that the consumer whose
consumer report is sought--
``(A) is an agent of a foreign power, and
``(B) is engaging or has engaged in an act
of international terrorism (as that term is
defined in section 101(c) of the Foreign
Intelligence Surveillance Act of 1978) or
clandestine intelligence activities that
involve or may involve a violation of criminal
statutes of the United States.
The terms of an order issued under this subsection shall not
disclose that the order is issued for purposes of a
counterintelligence investigation.
``(d) Confidentiality.--No consumer reporting agency or
officer, employee, or agent of a consumer reporting agency
shall disclose to any person, other than those officers,
employees, or agents of a consumer reporting agency necessary
to fulfill the requirement to disclose information to the
Federal Bureau of Investigation under this section, that the
Federal Bureau of Investigation has sought or obtained the
identity of financial institutions or a consumer report
respecting any consumer under subsection (a), (b), or (c), and
no consumer reporting agency or officer, employee, or agent of
a consumer reporting agency shall include in any consumer
report any information that would indicate that the Federal
Bureau of Investigation has sought or obtained such information
or a consumer report.
``(e) Payment of Fees.--The Federal Bureau of Investigation
shall, subject to the availability of appropriations, pay to
the consumer reporting agency assembling or providing report or
information in accordance with procedures established under
this section a fee for reimbursement for such costs as are
reasonably necessary and which have been directly incurred in
searching, reproducing, or transporting books, papers, records,
or other data required or requested to be produced under this
section.
``(f) Limit on Dissemination.--The Federal Bureau of
Investigation may not disseminate information obtained pursuant
to this section outside of the Federal Bureau of Investigation,
except to other Federal agencies as may be necessary for the
approval or conduct of a foreign counterintelligence
investigation, or, where the information concerns a person
subject to the Uniform Code of Military Justice, to appropriate
investigative authorities within the military department
concerned as may be necessary for the conduct of a joint
foreign counterintelligence investigation.
``(g) Rules of Construction.--Nothing in this section shall
be construed to prohibit information from being furnished by
the Federal Bureau of Investigation pursuant to a subpoena or
court order, in connection with a judicial or administrative
proceeding to enforce the provisions of this Act. Nothing in
this section shall be construed to authorize or permit the
withholding of information from the Congress.
``(h) Reports to Congress.--On a semiannual basis, the
Attorney General shall fully inform the Permanent Select
Committee on Intelligence and the Committee on Banking, Finance
and Urban Affairs of the House of Representatives, and the
Select Committee on Intelligence and the Committee on Banking,
Housing, and Urban Affairs of the Senate concerning all
requests made pursuant to subsections (a), (b), and (c).
``(i) Damages.--Any agency or department of the United
States obtaining or disclosing any consumer reports, records,
or information contained therein in violation of this section
is liable to the consumer to whom such consumer reports,
records, or information relate in an amount equal to the sum
of--
``(1) $100, without regard to the volume of
consumer reports, records, or information involved;
``(2) any actual damages sustained by the consumer
as a result of the disclosure;
``(3) if the violation is found to have been
willful or intentional, such punitive damages as a
court may allow; and
``(4) in the case of any successful action to
enforce liability under this subsection, the costs of
the action, together with reasonable attorney fees, as
determined by the court.
``(j) Disciplinary Actions for Violations.--If a court
determines that any agency or department of the United States
has violated any provision of this section and the court finds
that the circumstances surroundingthe violation raise questions
of whether or not an officer or employee of the agency or department
acted willfully or intentionally with respect to the violation, the
agency or department shall promptly initiate a proceeding to determine
whether or not disciplinary action is warranted against the officer or
employee who was responsible for the violation.
``(k) Good-Faith Exception.--Notwithstanding any other
provision of this title, any consumer reporting agency or agent
or employee thereof making disclosure of consumer reports or
identifying information pursuant to this subsection in good-
faith reliance upon a certification of the Federal Bureau of
Investigation pursuant to provisions of this section shall not
be liable to any person for such disclosure under this title,
the constitution of any State, or any law or regulation of any
State or any political subdivision of any State.
``(l) Limitation of Remedies.--Notwithstanding any other
provision of this title, the remedies and sanctions set forth
in this section shall be the only judicial remedies and
sanctions for violation of this section.
``(m) Injunctive Relief.--In addition to any other remedy
contained in this section, injunctive relief shall be available
to require compliance with the procedures of this section. In
the event of any successful action under this subsection, costs
together with reasonable attorney fees, as determined by the
court, may be recovered.''.
(b) Clerical Amendment.--The table of sections at the
beginning of the Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.) is amended by adding after the item relating to section
623 the following new item:
``624. Disclosures to FBI for counterintelligence purposes.''.
TITLE VII--TECHNICAL AMENDMENTS
SEC. 701. CLARIFICATION WITH RESPECT TO PAY FOR DIRECTOR OR DEPUTY
DIRECTOR OF CENTRAL INTELLIGENCE APPOINTED FROM
COMMISSIONED OFFICERS OF THE ARMED FORCES.
(a) Clarification.--Subparagraph (C) of section 102(c)(3)
of the National Security Act of 1947 (50 U.S.C. 403(c)(3)) is
amended to read as follows:
``(C) A commissioned officer of the Armed Forces on active
duty who is appointed to the position of Director or Deputy
Director, while serving in such position and while remaining on
active duty, shall continue to receive military pay and
allowances and shall not receive the pay prescribed for the
Director or Deputy Director. Funds from which such pay and
allowances are paid shall be reimbursed from funds available to
the Director.''.
(b) Technical Corrections.--(1) Subparagraphs (A) and (B)
of such section are amended by striking ``pursuant to paragraph
(2) or (3)'' and inserting ``to the position of Director or
Deputy Director''.
(2) Subparagraph (B) of such section is amended by striking
``paragraph (A)'' and inserting ``subparagraph (A)''.
SEC. 702. CHANGE OF DESIGNATION OF CIA OFFICE OF SECURITY.
Section 701(b)(3) of the National Security Act of 1947 (50
U.S.C. 431(b)(3)), is amended by striking ``Office of
Security'' and inserting ``Office of Personnel Security''.
And the Senate agree to the same.
From the Permanent Select Committee on
Intelligence, for consideration of the House
bill, and the Senate amendment, and
modifications committed to conference:
Larry Combest,
R.K. Dornan,
Bill Young,
James V. Hansen,
Jerry Lewis,
Porter J. Goss,
Bud Shuster,
Bill McCollum,
Michael N. Castle,
Norman Dicks,
Bill Richardson,
Julian C. Dixon,
Robert G. Torricelli,
Ron Coleman,
David E. Skaggs,
Nancy Pelosi,
As additional conferees from the Committee on
National Security, for consideration of defense
tactical intelligence and related activities:
Floyd Spence,
Bob Stump,
As additional conferees from the Committee on
International Relations, for consideration of
section 303 of the House bill, and section 303
of the Senate amendment, and modifications
committed to conference:
Benjamin A. Gilman,
Christopher Smith,
Howard L. Berman,
Managers on the Part of the House.
Arlen Specter,
Richard G. Lugar,
Richard Shelby,
Mike DeWine,
Jon Kyl,
Jim Inhofe,
Kay Bailey Hutchison,
Connie Mack,
Bill Cohen,
Strom Thurmond,
Robert Kerrey,
John Glenn,
Richard H. Bryan,
Bob Graham,
John F. Kerry,
Max Baucus,
J. Bennett Johnston,
Charles Robb,
Sam Nunn,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to the bill (H.R. 1655) to
authorize appropriations for fiscal year 1996 for intelligence
and the intelligence-related activities of the United States
Government, the Community Management Account, and the Central
Intelligence Agency Retirement and Disability System, and for
other purposes, submit the following joint statement to the
House and the Senate in explanation of the effect of the action
agreed upon by the managers and recommended in the accompanying
conference report:
The Senate amendment struck all of the House bill after
the enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment
of the Senate with an amendment that is a substitute for the
House bill and the Senate amendment. The differences between
the House bill, the Senate amendment, and the substitute agreed
to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clerical
changes.
Title I--Intelligence Activities
SEC. 101. AUTHORIZATION FOR APPROPRIATIONS.
Section 101 of the conference report lists the
departments, agencies, and other elements of the United States
Government for whose intelligence and intelligence-related
activities the Act authorizes appropriations for fiscal year
1996.
SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.
Section 102 of the conference report makes clear that the
details of the amounts authorized to be appropriated for
intelligence and intelligence-related activities and applicable
personnel ceilings covered under this title for fiscal year
1996 are contained in a classified Schedule of Authorizations.
The Schedule of Authorizations is incorporated into the Act by
this section. The details of the Schedule are explained in the
classified annex to this report.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
Section 103 of the conference report authorizes the
Director of Central Intelligence, with the approval of the
Director of the Office of Management and Budget, in fiscal year
1996 to exceed the personnel ceilings applicable to the
components of the Intelligence Community under section 102 by
an amount not to exceed two percent of the total of the
ceilings applicable under section 102. The Director may
exercise this authority only when doing so is necessary to the
performance of important intelligence functions. Any exercise
of this authority must be reported to the two intelligence
committees of the Congress.
The conferees emphasize that the authority conferred by
Section 103 is not intended to permit the wholesale raising of
personnel strength in any intelligence component. Rather, the
section provides the Director of Central Intelligence with
flexibility to adjust personnel levels temporarily for
contingencies and for overages caused by an imbalance between
hiring of new employees and attrition of current employees. The
conferees do not expect the Director of Central Intelligence to
allow heads of intelligence components to plan to exceed levels
set in the Schedule of Authorizations except for the
satisfaction of clearly identified hiring needs which are
consistent with the authorization of personnel strengths in
this bill. In no case is this authority to be used to provide
for positions denied by this bill.
SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.
Section 104 of the conference report authorizes
appropriations for the Community Management Account of the
Director of Central Intelligence and sets the personnel end-
strength for the Intelligence Community Management Staff for
fiscal year 1996.
Subsection (a) authorizes appropriations of $90,713,000
for fiscal year 1996 for the activities of the Community
Management Account of the Director of Central Intelligence. It
also authorizes funds identified for the Advanced Research and
Development Committee and the Environmental Task Force to
remain available for two years.
Subsection (b) authorizes 247 full-time personnel for the
Community Management Staff for fiscal year 1996 and provides
that such personnel may be permanent employees of the Staff or
detailed from various elements of the United States Government.
Subsection (c) requires that personnel be detailed on a
reimbursable basis except for temporary situations of less than
one year.
Title II--Central Intelligence Agency Retirement and Disability System
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Section 201 authorizes appropriations in the amount of
$213,900,000 for fiscal year 1996 for the Central Intelligence
Agency Retirement and Disability Fund.
Title III--General Provisions
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY
LAW.
Section 301 of the conference report provides that
appropriations authorized by the conference report for salary,
pay, retirement and other benefits for federal employees may be
increased by such additional or supplemental amounts as may be
necessary for increases in such compensation or benefits
authorized by law. Section 301 is identical to section 301 of
the House bill and section 301 of the Senate amendment.
SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.
Section 302 provides that the authorization of
appropriations by the conference report shall not be deemed to
constitute authority for the conduct of any intelligence
activity that is not otherwise authorized by the Constitution
or laws of the United States. Section 302 is identical to
section 302 of the House bill and section 302 of the Senate
amendment.
SEC. 303. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.
Section 303 of the conference report amends the National
Security Act of 1947 with a new Title IX to permit the
President to stay the imposition of an economic, cultural,
diplomatic, or other sanction or related action when the
President determines and reports to Congress that to proceed
without delay would seriously risk the compromise of an
intelligence source or method or an ongoing criminal
investigation. Both the House bill and the Senate amendment
contained provisions pertaining to deferrals of sanctions.
Section 901 of the new Title IX of the National Security
Act of 1947 grants the President the authority to stay the
imposition of a sanction or related action. Section 901
requires that when a sanction or related action is to be
deferred due to the risk of compromise of a source or method or
an ongoing criminal investigation, the source or method or the
law enforcement matter in question must be related to the
activities giving rise to the sanction. The section allows the
President to stay the imposition of a sanction or related
action for a specified period not to exceed 120 days.
Section 902 of the new Title IX provides that when the
President determines and reports to Congress that a stay of an
imposition of a sanction or related action has not afforded
sufficient time to obviate the risk to an ongoing criminal
investigation or to an intelligence source or method that gave
rise to the stay, the President may extend the stay for
successive periods of not more than 120 days.
Section 903 of the new Title IX requires that reports to
Congress pursuant to section 901 and 902 be submitted promptly
upon the President's determination to stay the imposition of a
sanction or related action. Reports required under the new
title are to be submitted to the Committee on International
Relations of the House and the Committee on Foreign Relations
of the Senate. Those reports pertaining to determinations
related to intelligence sources and methods are also to be
submitted to the Permanent Select Committee on Intelligence of
the House and the Select Committee on Intelligence of the
Senate. Those reports pertaining to determinations related to
ongoing criminal investigations are also to be submitted to the
Judiciary Committees of the House and Senate. The conferees
further recognize that the actual structure and content of the
reports to the Senate and House committees of jurisdiction will
be achieved as a result of ongoing dialogue between the
Congress and the Executive Branch. The conferees expect that
the reports submitted pursuant to the new title will indicate
the nature of the activities giving rise to the sanction or
related action, the applicable law concerned, the country or
countries in which the activity took place, and other pertinent
details, to the maximum extent practicable consistent with the
protection of intelligence sources and methods. The reports
should also include a determination that the delay in the
imposition of a sanction or related action will not be
seriously prejudicial to the achievement of the United States'
nonproliferation objectives or significantly increase the
threat or risk to United States' military forces.
Section 904 of the new Title IX enumerates specific
nonproliferation laws requiring a sanction or related action,
the imposition of which the President may stay pursuant to
sections 901 and 902. The section also grants the President the
authority to stay the imposition of a sanction or related
action contained in laws comparable to the enumerated acts.
Section 905 of the new Title IX states that the title
ceases to be effective one year from the date of its enactment.
The conferees believe this will afford Congress an opportunity
to evaluate the use and effect of this provision in relation to
sanctions laws. The Senate bill did not contain a similar
provision.
The conferees expect that when the President chooses to
exercise the deferral authority, the utmost will be done to
resolve sources or methods or law enforcement problems as soon
as possible so as to permit sanctions to be imposed as required
by law. The intelligence and judiciary committees, as
appropriate, should be informed fully of the efforts being made
to address the circumstances that led to the delay. The
conferees understand that instances where sanctions would be
deferred would be rare, and that the deferral authority will be
exercised only when an intelligence source or method or a
criminal investigation is seriously at risk, and not to protect
generic or speculative intelligence or law enforcement
interests. Moreover, the presidential determination should not
be used as a pretext for some other reason not to impose
sanctions such as economic or foreign policy reasons. The
President should lift the stay when the President determines
that it is no longer necessary to protect against compromise.
The President must have sufficient information to
determine whether the risk to intelligence sources and methods
or an ongoing criminal investigation is significant and
outweighs any potential harm to U.S. nonproliferation
objectives. The conferees expect that determinations to invoke
a stay authorized under this new title will be preceded by a
rigorous interagency review process in which the
recommendations of all relevant agencies, together with
supporting facts, are made available to the President. The
conferees intend to closely monitor the use of the authority
provided under this title.
SEC. 305. THRIFT SAVINGS PLAN FORFEITURE.
Section 304 of the conference report adds a new
subsection to section 8432(g) of title 5, United States Code,
to provide that the Government's contribution to the Thrift
Savings Plan under the Federal Employees Retirement System
(FERS) and interest earned on that contribution shall be
forfeited if the employee's annuity has been forfeited under
subchapter II of Chapter 83, title 5, United States Code. This
provision closes a loophole that was created when the FERS was
established.
Prior to the enactment of the FERS, an employee's
retirement annuity was based entirely on contributions made by
the employee and by the Government to the applicable retirement
fund. Under subchapter II of Chapter 83, any employee convicted
of various national security offenses, including espionage,
would forfeit his annuity and be entitled to receive only his
monetary contributions to the annuity. A new retirement
benefit, however, was created with the establishment of FERS,
payable under the Thrift Savings Plan.
The Thrift Savings Plan now permits the employee to
contribute into the Government-managed fund and requires that
the Government also contribute to the fund on the employee's
behalf. When FERS was enacted, the forfeiture provisions of
subchapter II were not amended to cover the Government's
contributions to the Plan. This situation clearly undermines
the intent of subchapter II by permitting an employee convicted
of espionage to retain the Government's contributions to the
Plan. Section 304 corrects this anomaly by requiring the
forfeiture of the Government's contribution to the Plan and
attributable earnings on that contribution in situations where
an individual's annuity is forfeited under subchapter II.
Section 304 is identical to section 304 of the House bill and
section 304 of the Senate amendment.
SEC. 305. AUTHORITY TO RESTORE SPOUSAL PENSION BENEFITS TO SPOUSES WHO
COOPERATE IN CRIMINAL INVESTIGATIONS AND
PROSECUTIONS FOR NATIONAL SECURITY OFFENSES.
Section 305 of the conference report amends section 8318
of title 5, United States Code, to make the spouse of an
individual whose annuity or retired pay has been forfeited
under section 8312 or 8313 of title 5 eligible for spousal
pension benefits if the Attorney General determines that the
spouse fully cooperated in the criminal investigation and
prosecution of the individual. Enactment of this legislation
will help to protect the national security interests of the
United States by encouraging the spouses of federal employees
who know or suspect that their husband or wife is engaged in
espionage activities to inform the Government and to cooperate
in a subsequent criminal investigation and prosecution. Current
law actually discourages cooperation with the Government, since
under current law pension benefits are lost upon conviction and
forfeiture of the husband's or wife's annuity, even if the
spouse has cooperated with the Government. Section 305 is
identical to section 305 of the House bill and section 305 of
the Senate amendment.
SEC. 306. SECRECY AGREEMENTS USED IN INTELLIGENCE ACTIVITIES.
Section 306 addresses a problem that CIA has experienced
with secrecy agreements in the conduct of authorized
intelligence activities. Beginning with the Treasury, Postal
Service, and General Government Appropriations Act for fiscal
year 1991 and in each year thereafter, Congress has required
that agreements to protect classified information must contain
certain prescribed language to put the executor on notice that
the agreement does not supersede specified laws and Executive
Order 12356. The language is as follows:
These restrictions are consistent with and do not
supersede, conflict with or otherwise alter the
employee obligations, rights or liabilities created by
Executive Order 12356; section 7211 of title 5, United
States Code (governing disclosures to Congress);
section 1034 of title 10, United States Code, as
amended by the Military Whistleblower Protection Act
(governing disclosure to Congress by members of the
military); section 2302(b)(8) of title 5, United States
Code, as amended by the Whistleblower Protection Act
(governing disclosures of illegality, waste, fraud,
abuse of public health or safety threats); the
Intelligence Identities Protection Act of 1982 (50
U.S.C. 421 et seq.) (governing disclosures that could
expose confidential Government agents), and the
statutes which protect against disclosure that may
compromise the national security, including sections
641, 793, 794, 798, and 952 of title 18, United States
Code, and section 4(b) of the Subversive Activities Act
of 1950 (50 U.S.C. section 783(b)). The definitions,
requirements, obligations, rights, sanctions and
liabilities created by said Executive Order and listed
statutes are incorporated into the Agreement and are
controlling.
Notwithstanding that several of the laws cited apply only
to federal employees, the Treasury appropriations acts have
required CIA to include the specified language in nondisclosure
agreements intended to be executed by private parties. The
prescribed language is required in every secrecy agreement
entered into, so federal employees and private entities alike
must have such language included in the agreement that they
sign. The recitation of numerous statutes in the overbearing
but required ``legalese'' has caused confusion, complicated
authorized intelligence activities, and even disrupted them
when parties refused to sign agreements containing provisions
that do not apply to them. The required language is
intimidating and has chilled otherwise promising intelligence
relationships with private entities.
Consequently, section 306 clarifies that CIA and other
intelligence agencies have the flexibility to tailor
nondisclosure agreements according to the needs of the
intelligence activity at hand, as long as the agreement at a
minimum requires nondisclosure without specific authorization
by the United States Government. The form or agreement must
also make clear that the form or agreement does not bar
disclosures to Congress or disclosures to an authorized
official of an executive agency that are deemed essential to
reporting a violation of United States laws. This section, when
enacted, will permit the use of secrecy agreements stated in
plain and understandable English and that will not intimidate
the layman. The provision will make it easier for people to
understand their rights and obligations when signing a secrecy
agreement, which will ultimately enhance the protection of
national security information.
SEC. 307. LIMITATION ON AVAILABILITY OF FUNDS FOR AUTOMATIC
DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.
Section 307 limits the availability of funds authorized
to be appropriated by this Act to implement section 3.4 of
Executive Order 12958 to $25 million in fiscal year 1996. The
Director of Central Intelligence, at the Director's discretion,
may allocate this amount among the agencies of the National
Foreign Intelligence Program for this purpose. Section 307
requires the President to submit budget requests that
specifically identify the funds necessary to implement section
3.4 for fiscal years 1997 through 2000.
Given that the conferees have received four different
estimates of the cost of implementing section 3.4 since the
beginning of the year, the conferees believe there needs to be
a continuing effort to fully evaluate the potential costs
associated with the declassification review programs. The
conferees further urge that this declassification effort be
coordinated closely with CIA's Historical Review Program Office
so as to enhance the intellectual coherence of the
declassification process. In the budget submission for FY1997,
the President is to provide a detailed request supported by
firm estimates of declassification costs.
Section 307 of the House bill limited each agency of the
National Foreign Intelligence Program to $2.5 million to carry
out the provisions of section 3.4. The Senate amendment had no
similar provision.
SEC. 308. AMENDMENT TO THE HATCH ACT REFORM AMENDMENTS OF 1993.
Section 308 restores the authority of the Office of
Personnel Management (OPM) to extend ``de-Hatching'' to
employees of the agencies listed in 5 U.S.C.
Sec. 7323(b)(2)(B)(i).
Previously, under 5 U.S.C. Sec. 7323, OPM had the
authority to designate certain municipalities and other
political subdivisions in which federal employees in both
competitive and excepted services could actively participate in
local partisan elections. (Such designation of municipalities
and political subdivisions by OPM is commonly referred to as
``de-Hatching''.) However, when this authority was amended by
Public Law 103-94 and recodified in 5 U.S.C. Sec. 7325, the
authority was granted only ``without regard to the prohibitions
in paragraphs (2) and (3) of section 7323(a)''. The
prohibitions in section 7323(a) apply to the federal employees,
both competitive and excepted service. However, employees of
NSA, CIA, DIA and the other agencies listed in 5 U.S.C.
Sec. 7323(b)(2)(B)(i) are subject to additional prohibitions
under section 7323(b)(2)(A) which section 7325 does not permit
OPM to disregard. Thus, OPM cannot extend de-Hatching to
employees of the listed agencies and the implementing interim
regulations issued by OPM (59 Fed. Reg. 5313 (1994) to be
codified at 5 C.F.R. Part 733) reflect this restriction.
This provision would amend the ``de-Hatching'' provision
(5 U.S.C. Sec. 7325) to include the excepted services in the
category of federal employees that OPM may permit to take an
active part in local (not Federal) political campaigns.
Section 308 is identical to section 306 of the Senate
amendment. The House bill did not contain a similar provision.
SEC. 309. REPORT ON PERSONNEL POLICIES.
Section 309 of the conference report requires the DCI to
report to the intelligence oversight committees within three
months detailed personnel procedures that could be implemented
across the intelligence community to provide for mandatory
retirement at expiration of time in class and termination based
on relative performance similar to comparable provisions in
sections 607 and 608 of the Foreign Service Act of 1980 (Title
22 U.S.C. 4007 and 4008) for civilian employees.
The Director of Central Intelligence and Secretary of
Defense were directed in the FY 1995 Intelligence Authorization
Act to provide a report by December 1, 1994 on the advisability
of providing for mandatory retirement at expiration of time in
class. The oversight committees have reviewed the issue and
determined that a performance-based policy is advisable and are
now directing the DCI to develop and report on procedures that
could be implemented.
Senate floor action added a provision requiring that the
DCI's report include a description and analysis of voluntary
separation incentives, including a waiver of the ``two percent
penalty'' reduction for early retirement under certain federal
retirement systems. Section 309 is substantially similar to
section 307 of the Senate amendment. The House bill did not
contain a similar provision.
SEC. 310. ASSISTANCE TO FOREIGN COUNTRIES.
Section 310 of the conference report authorizes
assistance to a foreign country for counterterrorism efforts,
notwithstanding any other provision of law, for the purpose of
protecting the property of the United States Government or the
life and property of any United States citizen or furthering
the apprehension of any individual involved in any act of
terrorism against such property or persons. The appropriate
committees of Congress are to be notified not later than 15
days prior to the provision of such assistance. This authority
is needed for the purpose of furthering United States
interests. By providing this authority, there will be no doubt
that the United States will be able to provide assistance to
foreign countries that are willing to help identify, track and
apprehend persons who have destroyed American property or
harmed American citizens. Section 310 is identical to section
308 of the Senate amendment. There was no comparable language
in the House bill.
SEC. 311. FINANCIAL MANAGEMENT OF THE NATIONAL RECONNAISSANCE OFFICE.
Section 311 of the conference report seeks to improve
accountability and financial management control over the
National Reconnaissance Office. The section further requires a
review of NRO's financial management by the Inspector General
of CIA, assisted by the Inspector General of DOD, to evaluate
the effectiveness of policies and internal controls over the
NRO budget, particularly with regard to carry-forward funding.
It is the intention of the conferees that the Director of
Central Intelligence notify the intelligence oversight
committees prior to reprogramming, reallocating, and/or
rescinding funds previously authorized and appropriated for NRO
programs, projects, and activities. The section also requires
the President to report no later than January 30, 1996 on a
proposal to subject the budget of the Intelligence Community to
greater Executive Branch oversight, including the possibility
of a statutory financial control officer for the NRO and
greater Office of Management and Budget review of the NRO's
budget. The report must include an analysis of the option for a
statutory provision requiring the DCI to establish a policy to
restrict the NRO's authority on carry-forward funding
consistent with the restriction on such authority within the
Department of Defense. The President shall also report on how
changes proposed as a result of this review will affect,
directly or indirectly, the NRO's streamlined acquisition
process and ultimately, program costs.
Elements of section 311 were added to the Senate
amendment in floor action, but the provision has been
substantially changed in subsequent discussions among
conferees. There was no comparable provision in the House bill.
Title IV--Central Intelligence Agency
SEC. 401. EXTENSION OF THE CIA VOLUNTARY SEPARATION PAY ACT.
Section 401 amends section 2(f) of the CIA Voluntary
Separation Pay Act, 50 U.S.C. Sec. 403-4(f), to extend the
Agency's authority to offer separation incentives until
September 30, 1999. Without this amendment, the Agency's
authority to offer such incentives will expire on September 30,
1997.
CIA's separation incentive program has been an effective
force reduction tool. It is necessary to extend this authority
until September 30, 1999, because CIA, like DOD, will continue
to downsize through that year. Enactment of this provision will
ensure that CIA can minimize the need to separate employees
involuntarily. In light of the conferees' concern that this
authority may have been used in the past in lieu of more
rigorous personnel policies, this authority is extended with
the understanding that the Intelligence Community will be
pursuing such policies, and that this authority can be used to
ease the transition to the more rigorous, performance-based
criteria and policy.
Section 401(b) is designed to offset the direct spending
cost of the extension of the authority provided for in the CIA
Voluntary Separation Pay Act. Specifically, it establishes
procedures to conform with the pay-as-you-go provision, section
252, of the Balanced Budget and Emergency Deficit Control Act,
by requiring the Director of Central Intelligence to remit to
the Treasury an amount equal to 15 percent of the final basic
pay of each employee who, in fiscal year 1998 or fiscal year
1999, retires voluntarily or who resigns and to whom a
voluntary separation incentive has been or is to be paid.
Section 401(a) is identical to section 401 of the House
bill. Section 401(b) is identical to section 401(b) of the
Senate amendment. The House bill did not contain a similar
offset provision.
SEC. 402. VOLUNTEER SERVICE PROGRAM.
Section 402 authorizes the Director to establish, as a
demonstration project, a limited volunteer service program for
fiscal years 1996 through 2001, whereby no more than 50
retirees can volunteer their services to the CIA to assist the
Agency in its systematic or mandatory review for
declassification or downgrading of classified information under
certain Executive Orders and Public Law 102-526. The provision
limits expenditures to no more than $100,000.
This section authorizes the Agency to pay costs
incidental to the use of the services of volunteers, such as
training, equipment, lodging, subsistence, equipment and
supplies. It also ensures that volunteers are covered by
workers compensation and the Federal Torts Claim Act. Without
this legislation, the CIA would be unable to pay costs incident
to the use of gratuitous services provided by volunteers, such
as training and equipment. The program established under this
section will be temporary and limited. Section 402 is identical
to section 402 of the House bill and section 402 of the Senate
amendment.
SEC. 403. AUTHORITIES OF THE INSPECTOR GENERAL OF THE CENTRAL
INTELLIGENCE AGENCY.
Section 403(a) of the conference report modifies the CIA
Inspector General statute to require the IG to report
violations of Federal law by any person, as opposed to
violations by officers or employees of the CIA. It also allows
the reports to go directly from OIG to the Department of
Justice, rather than through the DCI, although the DCI must
receive a copy of the report. This is consistent with the
Inspector General Statute of 1978 and enhances the independence
of the IG. The conferees understand that the Inspector General
has agreed to give advanced notice to the DCI and the conferees
strongly support this agreement. The conferees further
understand that this advance notice will not be used to prevent
reports from going to the Department of Justice. Section 403(a)
is identical to section 403(a) of the Senate amendment. The
House bill did not contain a similar provision.
Section 403(b) of the conference report clarifies the CIA
Inspector General statute to ensure that the identity of an
employee who has been granted confidentiality can be disclosed
to the Department of Justice official responsible for
determining whether a prosecution should be undertaken. Current
law already provides for this but this provision would clarify
and simplify the process. Section 403(b) is identical to
section 403(b) of the Senate amendment. The House bill did not
contain a similar provision.
Title V--Department of Defense
intelligence activities
SEC. 501. DEFENSE INTELLIGENCE SENIOR LEVEL POSITIONS.
Section 501 of the conference report amends section 1604
of title 10, United States Code, by authorizing the Secretary
of Defense to establish the Defense Intelligence Senior Level
(DISL) personnel system for the Defense Intelligence Agency
(DIA) and the Central Imagery Office (CIO). Section 1604
currently authorizes the Secretary of Defense to establish
positions for civilian officers and employees in DIA and CIO.
The rates of basic pay for these positions are fixed in
relation to the rates of basic pay provided in the General
Schedule under section 5332 of title 5. Section 5332, however,
which limits the grades of employees to GS-15, is insufficient
for the needs of DIA and CIO.
In 1991, two Army field activities were transferred to
DIA. The employees at the Missile and Space Intelligence Center
and the Armed Forces Medical Intelligence Center are high-level
technical employees. Their positions do not meet the management
and program criteria for Senior Executive Service (SES)
inclusion, but they do exceed the GS-15 criteria. DIA is also
acquiring the Human Intelligence (HUMINT) resources of the
Military Services. This functional transfer will add over 1,000
civilian and military personnel to DIA's rolls, and there may
be a need to structure at least one senior advisory assignment
as part of the Defense HUMINT Service (DHS) architecture.
Additionally, the increased Defense intelligence leadership
roles of DIA and CIO require increased high level activity in
technical analysis, liaison and advisory services.
The primary purpose of DISL positions will be to provide
technical expertise and advisory services beyond the GS-15
level established by DIA and CIO. Employees in DISL positions
will not be responsible for managerial and program oversight,
which are functions of the SES. DISL positions will include
Defense Intelligence Senior Technical (DIST) and Defense
Intelligence Senior Professional (DISP) assignments. These
positions are classifiable above the DIA and CIO GS-15 level
but do not involve the organizational or program management
functions necessary for the Defense Intelligence Senior
Executive Service.
DIST positions are those that involve research and
development; test and evaluation; or substantive analysis,
liaison, and/or advisory activity focusing on engineering,
physical sciences, computer science, mathematics, medicine,
biology, chemistry, or other closely related scientific and
technical fields; and intelligence disciplines including
production, collection, and operations in close association
with the preceding or related activities.
DISP positions are those that emphasize staff, liaison,
analytical, advisory, or other activity focusing on
intelligence, law, finance and accounting, program and budget,
human resources management, training, information services,
logistics, and other appropriate support fields.
DISL positions will provide DIA and CIO with the
flexibility that is essential to recruit effectively and to
retain highly competent employees with scientific, technical,
or other complex skills. This provision allows the Secretary of
Defense to establish a basic rate of pay that does not exceed
the rate paid to Executive Level IV. It also authorizes the
Secretary of Defense to provide to DIA and CIO employees other
benefits, allowances, incentives, or compensation that
similarly situated federal employees are eligible to receive
under title 5, United States Code. Section 501 is identical to
section 501 of the House bill. The Senate amendment did not
contain a similar provision.
SEC. 502. COMPARABLE BENEFITS AND ALLOWANCES FOR CIVILIAN AND MILITARY
PERSONNEL ASSIGNED TO DEFENSE INTELLIGENCE
FUNCTIONS OVERSEAS.
Section 502 of the conference report amends section 1605
of title 10, United States Code, and section 431 of title 37,
United States Code, to provide to civilian personnel and
members of the armed forces serving with the Defense HUMINT
Service outside the United States benefits and allowances
comparable to those provided by the Secretary of State to
officers and employees of the Foreign Service.
The Secretary of Defense has the authority to provide to
civilian personnel and members of the armed forces assigned to
the Defense Attache Offices and the Defense Intelligence Agency
Liaison Offices outside the United States benefits and
allowances comparable to those provided by the Secretary of
State to officers and employees of the Foreign Service. This
authority was attained in 1983 (Public Law 98-215) because
travel allowances and related benefits for overseas personnel
at the Defense Attache Offices and the Defense Intelligence
Agency Liaison Offices were different from Foreign Service
personnel assigned overseas.
With the consolidation of Department of Defense human
intelligence into the Defense HUMINT Service, the Defense
Intelligence Agency will be responsible for a significant
number of employees overseas. Although a number of these
employees may be assigned to Defense Attache Offices or Defense
Intelligence Agency Liaison Offices outside the United States,
there will be some assigned to other overseas locations. Since
the Agency's authority to provide benefits and allowances to
overseas employees is limited to the Defense Attache Office and
the Defense Intelligence Agency Liaison Offices, inequities
will once again occur. Section 502 ensures comparable benefits
for civilian and military personnel assigned to the Defense
HUMINT Service overseas. Section 502 is virtually identical to
Section 501 of the Senate amendment and section 502 of the
House bill.
SEC. 503. EXTENSION OF AUTHORITY TO CONDUCT INTELLIGENCE COMMERCIAL
ACTIVITIES.
Section 503 of the conference report would extend for
three years, until December 31, 1998, the authority of the
Secretary of Defense to initiate intelligence commercial
activities to provide cover security to intelligence collection
activities undertaken abroad by the Defense Department. This
authority permits the Secretary to waive compliance with
certain types of federal laws and regulations pertaining to the
management and administration of federal entities when he
determines that compliance by the commercial cover activity
would create an unacceptable risk of compromise of an
authorized intelligence collection activity. This authority is
similar to the authority granted to the Central Intelligence
Agency and the Federal Bureau of Investigation.
The Secretary's intelligence commercial cover authority
was originally enacted as part of the FY 1991 Intelligence
Authorization Act (Public Law 102-88) August 14, 1991. However,
the intelligence commercial cover authority did not become
effective until December 2, 1992, after the statutorily
required promulgation and submission to Congress of a directive
from the Secretary governing the implementation of the statute.
Due to a variety of reasons, including the launching of a plan
in 1993 to create a new Defense HUMINT Service under which all
Defense Department human intelligence activities are being
consolidated, this intelligence commercial activities authority
has not yet been used, due largely to significant budget cuts
effected in December 1992. Recently, however, DoD has enhanced
its HUMINT efforts and is working closely with CIA to develop
the skills, plans, and infrastructure necessary to effectively
utilize this authority. Thus, the conference report extends the
sunset provision to December 31, 1998.
The Administration's intelligence authorization
legislative proposal sought repeal of the existing ``sunset''
clause, thus making the Secretary's intelligence commercial
activities authority permanent. Senior officials from both the
Defense Department and the Central Intelligence Agency
testified to the continuing and growing need for the Secretary
to have this authority under certain circumstances to provide
bona fide commercial cover that can withstand detailed
investigation by hostile foreign intelligence services as well
as domestic scrutiny. The conferees agreed to the extension of
the authority. However, in view of the lack of a record of use
thus far, Section 503 extends the authority for three years,
instead of the permanent extension originally sought by the
Administration. Three years should provide time for the
development and oversight of a track record on the use of this
authority without encouraging overuse of it, and particularly
its more elaborate and sophisticated applications. At the end
of that time, and based on its oversight of the record, the
Intelligence Committees can address whether to make this
authority permanent, extend it for a specific period or allow
it to lapse. Section 503 is the same as section 503 of the
House bill. Section 502 of the Senate amendment had extended
the authority for five years.
SEC. 504. AVAILABILITY OF FUNDS FOR TIER II UAV.
The Fiscal Year 1995 authorization bill authorized full
funding of the Defense Department's request for the Tier-2
Medium Altitude Endurance Unmanned Aerial Vehicle (UAV)
Advanced Concept Technology Demonstration. The Fiscal Year 1995
defense appropriations bill included appropriations $20 million
above the amount authorized for the program. As these
additional funds were not specifically authorized, as required
by Section 504 of the National Security Act of 1947, the
Department of Defense could not spend them. To remedy this
problem, Section 504 of the conference report specifically
authorizes an additional $20 million for this program. Section
504 is identical to section 504 of the House bill. The Senate
bill did not contain a similar provision.
SEC. 505. MILITARY DEPARTMENT CIVILIAN INTELLIGENCE PERSONNEL
MANAGEMENT SYSTEM.
Section 505 of the conference report authorizes the
Secretary of Defense to send civilian employees in the Military
Departments' Civilian Intelligence Personnel Management System
(CIPMS) to be students at accredited professional, technical,
and other institutions of higher learning for training at the
undergraduate level. This authority would be similar to that
already granted to the Defense Intelligence Agency (DIA) in 10
U.S.C. section 1608 (Public Law 101-93, title V, section
507(a)(1), Nov. 30, 1989, 103 Stat. 1710) and the National
Security Agency (NSA) in 50 U.S.C. 402 note. The purpose of the
new section is to establish an undergraduate training program,
including training which may lead to the baccalaureate degree,
to facilitate the recruitment of individuals, particularly
minority, women, and handicapped high school students with a
demonstrated capability to develop skills critical to the
intelligence missions of the Military Departments in areas such
as computer science, engineering, foreign language, and area
studies. In exchange for this financial assistance from the
respective CIPMS organization, the student participant would
undertake an obligation to work for a period of one-and-one
half years for each year or partial year of schooling.
The missions of the intelligence entities of the United
States Government demand employees of extraordinary aptitude
and strong undergraduate training. These same entities must
compete with a private sector--capable of offering more
favorable compensation arrangements--that in most instances has
been able to outbid the USG in terms of attracting qualified
minority candidates. Statistics in recent years indicate that
the success of the Military Departments' CIPMS to attract
minority group candidates has been marginal.
This proposal is designed to enhance the capabilities of
the intelligence elements of the Military Departments to: (i)
ensure equal employment opportunity with their civilian ranks
through affirmative action; (ii) develop and retain personnel
trained in the skills essential to the effective performance of
their intelligence mission; and, (iii) compete on equal footing
with other Intelligence Community entities for personnel with
critical skills. Section 505 is identical to section 503 of the
Senate amendment. The House bill did not contain a similar
provision.
SEC. 506. ENHANCEMENT OF CAPABILITIES OF CERTAIN ARMY FACILITIES.
Section 506 of the conference report is intended to
assist the Department of the Army as it assumes executive agent
responsibility for the Bad Aibling, Germany and Menwith Hill,
England stations. Specifically, this provision would permit the
Department of the Army to use up to $2 million of appropriated
operations and maintenance funds to rectify infrastructure and
quality of life problems at Menwith Hill and Bad Aibling. At
the present time, the Army is prohibited by statute from using
appropriated funds to support certain activities. Section 506
was added to the Senate amendment in floor action. The House
bill did not include a similar provision.
Title VI--Federal Bureau of Investigation
SEC. 601. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO FBI FOR
COUNTERINTELLIGENCE PURPOSES.
Section 601 of the conference report would amend the Fair
Credit Reporting Act (FCRA) (15 U.S.C. 1681f) to grant the
Federal Bureau of Investigation (FBI) access to certain
information in consumer credit records in counterintelligence
investigations.
A similar provision was included in the Intelligence
Authorization Act for FY 1995 as reported by the Senate Select
Committee on Intelligence. The provision was dropped in
conference at the request of the House Committee on Banking,
Finance, and Urban Affairs upon assurances that it would pursue
similar legislation. The U.S. House of Representatives
ultimately adopted H.R. 5143 which was substantially the same
as section 601 of this Act. The bill was never acted upon by
the Senate during the last Congress. The conferees have
recently received a letter from the Chairman of the House
Committee on Banking and Financial Services in support of this
provision. The language of that letter is as follows:
House of Representatives,
Committee on Banking and Financial Services,
Washington, DC, October 11, 1995.
Hon. Newt Gingrich,
Speaker, House of Representatives,
Washington, DC.
Dear Mr. Speaker: I am writing concerning H.R. 1655, the
``Intelligence Authorization Act for Fiscal Year 1996'' on
which the House will soon appoint conferees to reconcile
differences with the Senate. Section 601 of H.R. 1655, as added
by the Senate amends the Fair Credit Reporting Act (FCRA) and
thereby falls under the jurisdiction of the Committee on
Banking and Financial Services, as provided for under Rule X of
the Rules of the House of Representatives.
Section 601 of the Senate reported bill amends the FCRA
to allow the FBI greater access to consumer reports when
investigating foreign terrorism. The FCRA imposes certain
obligations and liabilities on consumer reporting agencies in
assembling, evaluating and maintaining consumer credit reports.
Section 601 amends the FCRA to grant authority to the FBI to
obtain certain information from a consumer report on a
suspected terrorist without a court order.
The section is carefully crafted to protect consumers'
rights to privacy while allowing law enforcement agencies to
obtain necessary information in order to conduct authorized
foreign counterintelligence investigations. This issue was
considered by the Banking Committee in the last several
Congresses and a provision similar to section 601 was passed by
the full House in the 103rd Congress. In addition, Banking
Committee conferees were appointed by the House to the
Intelligence Authorization conference (H.R. 4299) last Congress
on this issue. Given past precedent of the House and the fact
that the language of this section was developed in consultation
with the House Banking Committee.
I would strongly urge the House conferees to recede to
the Senate on Section 601 or to consult with the Banking
Committee in the event of any substantive modifications.
Sincerely,
James A. Leach, Chairman.
This provision would provide a limited expansion of the
FBI's authority in counterintelligence investigations
(including terrorism investigations), to obtain a consumer
credit report with a court order. In addition, it would allow
the FBI to use a ``National Security Letter,'' i.e. a written
certification by the FBI Director or the Director's designee,
to obtain from a consumer credit agency the names and addresses
of all financial institutions at which a consumer maintains an
account, as well as certain identifying information.
Under current law, when appropriate legal standards are
met, FBI is able to obtain mandatory access to credit records
by means of a court order or grand jury subpoena (see the FCRA,
15 U.S.C. 168b(1)), but such an option is available to the FBI
only after a counterintelligence investigation has been
converted to a criminal investigation or proceeding. Many
counterintelligence investigations never reach the criminal
stage but proceed for intelligence purposes or are handled in
diplomatic channels.
In addition, FBI presently has authority to use the
National Security Letter mechanism to obtain two types of
records; financial institution records (under the Right to
Financial Privacy Act, 12 U.S.C. 3414(a)(5)) and telephone
subscriber and toll billing information (under the Electronic
Communications Privacy Act, 18 U.S.C. 2709). Expansion of this
extraordinary authority is not taken lightly by the conferees,
but the conferees have concluded that in this instance the need
is genuine, the threshold for use is sufficiently rigorous,
and, given the safeguards built in to the legislation, the
threat to privacy is minimized.
Under a provision of the Right to Financial Privacy Act
(RFPA) (12 U.S.C. 3414(a)(5)), the FBI is entitled to obtain
financial records from financial institutions, such as banks
and credit card companies, by means of a National Security
Letter when the Director or the Director's designee certifies
in writing to the financial institution that such records are
sought for foreign counterintelligence purposes and that there
are specific and articulable facts giving reason to believe
that the customer or entity whose records are sought is a
foreign power or an agent of a foreign power, as those terms
are defined in section 101 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1801 et seq.).
The FBI considers such access to financial records
crucial to trace the activities of suspected spies or
terrorists. The need to follow financial dealings in
counterintelligence investigations has grown as foreign
intelligence services increasingly operate under non-official
cover, i.e., pose as business entities or executives, and as
foreign intelligence service activity has focused increasingly
on U.S. economic information.
FBI's right of access under the Right of Financial
Privacy Act cannot be effectively used, however, until the FBI
discovers which financial institutions are being utilized by
the subject of a counterintelligence investigation. Consumer
reports maintained by credit bureaus are a ready source of such
information, but, although such report are readily available to
the private sector, they are not available to FBI
counterintelligence investigators. Under section 608 of the
Fair Credit Reporting Act, without a court order, FBI
counterintelligence officials, like other government agencies,
are entitled to obtain only limited information from credit
reporting agencies--the name, address, former addresses, places
of employment, and former places of employment, of a person--
and this information can be obtained only with the consent of
the credit bureau.
FBI has made a specific showing to the conferees that the
effort to identify financial institutions in order to make use
of FBI authority under the Right to Financial Privacy Act can
not only be time-consuming and resource-intensive, but can also
require the use of investigative techniques--such as physical
and electronic surveillance, review of mail covers, and
canvassing of all banks in an area--that would appear to be
more intrusive than the review of credit reports. FBI has
offered a number of specific examples in which lengthy,
intensive and intrusive surveillance activity was required to
identify financial institutions doing business with a suspected
spy or terrorist.
Section 601 of the instant legislation would amend FCRA
by adding a new section 624, consisting of 13 paragraphs.
Paragraph 624(a) of the amended FCRA requires a consumer
reporting agency to furnish to the FBI the names and addresses
of all financial institutions at which a consumer maintains or
has maintained an account, to the extent the agency has that
information, when presented with a written request signed by
the FBI Director or the Director's designee, which certifies
compliance with the subsection. The FBI Director or the
Director's designee may make such certification only if the
Director or the Director's designee has determined in writing
that such records are necessary for the conduct of an
authorized foreign counterintelligence investigation and that
there are specific and articulable facts giving reason to
believe that the person whose consumer report is sought is a
foreign power, a non-U.S. official of a foreign power, or an
agent of a foreign power (as defined in Section 101 of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801
et seq.)) and is engaged in terrorism or other criminal
clandestine intelligence activities.
The requirement that there be specific and articulable
facts giving reasons to believe that a U.S. person is an agent
of a foreign power before FBI can obtain access to a consumer
report is consistent with the standards in the Right to
Financial Privacy Act, U.S.C. 3414(a)(5)(A), and the Electronic
Communications Privacy Act, 18 U.S.C. 2709(b).
However, in contrast to those statutes, the conferees
have drafted the FCRA certification requirement to provide that
the FBI demand submitted to the consumer reporting agency make
reference to the statutory provision without providing the
agency with a written certification that the subject of the
consumer report is believed to be an agent of a foreign power.
FBI would still be required to record in writing its
determination regarding the subject, and the credit reporting
agency would be able to draw the necessary conclusion, but the
conferees believe that this approach would reduce the risk of
harm from the certification process itself to the person under
investigation. A similar approach is taken in paragraph 624(b))
described below.
Section 605 of the FCRA, 15 U.S.C. 1681c, defines
``consumer report'' in a manner that prohibits the
dissemination by credit reporting agencies of certain older
information except in limited circumstances. None of these
excepted circumstances would apply to FBI access under proposed
FCRA paragraph 624(a) (or proposed FCRA paragraph 624(b)).
Accordingly, FBI access would be limited to ``consumer
reports'' as defined in section 605.
The term ``an authorized foreign counterintelligence
investigation'' includes those FBI investigations conducted for
the purpose of countering international terrorist activities as
well as those FBI investigations conducted for the purpose of
countering the intelligence activities of foreign powers. Both
types of investigations are conducted under the auspices of the
FBI's Intelligence Division, headed by an FBI Assistant
Director.
As is the case with the FBI's existing National Security
Letter authority under the Right to Financial Privacy Act (see
Senate Report 99-307, May 21, 1986, p. 16; House Report 99-952,
October 1, 1986, p. 23), the conferees expect that, if the
Director of the FBI delegates this function under paragraph
624(a), as well as under paragraph 624(b) discussed below, the
Director will delegate it no further than the level of FBI
Deputy Assistant Director. (There are presently two Deputy
Assistant Directors for the National Security Division, one
with primary responsibility for counterintelligence
investigations and the other with primary responsibility for
international terrorism investigations.)
Paragraph 624(b) would give the FBI mandatory access to
the consumer identifying information--name, address, former
addresses, places of employment, or former places of
employment--that it may obtain under current section 608 only
with the consent of the credit reporting agency. A consumer
reporting agency would be required signed by the FBI Director
or the Director's designee, which certifies compliance with the
subsection. The Director or the Director's designee may make
such a certification only if the Director or the Director's
designee has determined in writing that such information is
necessary to the conduct of an authorized foreign
counterintelligence investigation and that there is information
giving reason to believe that the person about whom the
information is sought has been or is about to be, in contact
with a foreign power or an agent of a foreign power, as defined
in Section 101 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1801 et. seq.).
FBI officials have indicated that they seek mandatory
access to this identifying information in order to determine if
a person who has been in contact with a foreign power or agent
is a government or industry employee who might have access to
sensitive information of interest to a foreign intelligence
service. Accordingly, the conferees have drafted this provision
to require that such limited information can be provided only
in circumstances where the consumer has been or is about to be
in contact with the foreign power or agent.
The conferees have also drafted paragraphs 624(a) and
624(b) in a manner intended to make clear the conferees' intent
that the FBI may use this authority to obtain this information
only as regard those persons who either are a foreign power or
agent thereof or have been or will be in contact with a foreign
power or agent. Although the consumer records of another
person, such as a relative or friend of an agent of a foreign
power, or identifying information respecting a relative or
friend of a person in contact with an agent of a foreign power,
may be of interest to FBI counterintelligence investigators,
they are not subject to access under paragraphs 624(a) and
624(b).
It is not the intent of the conferees to require any
credit reporting agency to gather credit or identifying
information on a person for the purpose of fulfilling an FBI
request under paragraphs 624(a) and 624(b). A credit reporting
agency's obligation under these provisions is to provide
information responsive to the FBI's request that the credit
reporting agency already has in its possession.
Paragraph 624(c) provides that, if requested in writing
by the FBI, a court may issue an order ex parte directing a
consumer reporting agency to furnish a consumer report to the
FBI upon a showing in camera that the report is necessary for
the conduct of an authorized foreign counterintelligence
investigation and that there are specific and articulable facts
giving reason to believe the consumer is an agent of a foreign
power and is engaged in international terrorism or clandestine
intelligence activities that may involve a crime.
Paragraph 624(d) provides that no consumer reporting
agency or officer, employee, or agent of such institution shall
disclose to any person, other than those officers, employees or
agents of such institution necessary to fulfill the requirement
to disclose information to the FBI under subsection 624, that
the FBI has sought or obtained a consumer report or financial
institution, or identifying information respecting any consumer
under paragraphs 624, nor shall such agency, officer, employee,
or agent include in any consumer report any information that
would indicate that the FBI has sought or obtained such
information. The prohibition against including such information
in a consumer report is intended to clarify the obligations of
the consumer reporting agencies. It is not intended to preclude
employees of consumer reporting agencies from complying with
company regulations or policies concerning the reporting of
information, nor to preclude their complying with a subpoena
for such information issued pursuant to appropriate legal
authority.
Paragraph 624(d) departs from the parallel provision of
the RFPA by clarifying that disclosure is permitted within the
contacted institution to the extent necessary to fulfill the
FBI request. The conferees have not concluded that, or
otherwise taken a position whether, disclosure for such purpose
would be forbidden by the RFPA; indeed, practicalities would
dictate that the provision not be interpreted to exclude such
disclosure. However, the conferees believe that clarification
of the obligation for purposes of the FCRA is desirable.
Paragraph 624(e) requires the FBI, subject to the
availability of appropriations, to pay to the consumer
reporting agency assembling or providing credit records a fee
in accordance with FCRA procedures for reimbursement for costs
reasonably necessary and which have been directly incurred in
searching for, reproducing, or transporting books, papers,
records, or other data required or requested to be produced
under section 624. The FBI informs the Committee that such
reports are commercially available for approximately $7 to $25
and that FBI could expect to pay fees in approximately that
range. FBI officials have advised the conferees that the costs
of such reports would be easily recouped from the savings
afforded by the reduced need for other investigative techniques
aimed at obtaining the same information.
Paragraph 624(f) prohibits the FBI from disseminating
information obtained pursuant to section 624 outside the FBI,
except as may be necessary for the approval of conduct of a
foreign counterintelligence investigation, or, where the
information concerns military service personnel subject to the
Uniform Code of Military Justice, to appropriate investigation
authorities in the military department concerned as may be
necessary for the conduct of a joint foreign
counterintelligence investigation with the FBI. Since the
military departments have concurrent jurisdiction to
investigate and prosecute military personnel subject to the
Uniform Code of Military Justice, paragraph 624(g) permits the
FBI to disseminate consumer credit reports it obtains pursuant
to this section to appropriate military investigative
authorities where a foreign counterintelligence investigation
involves a military service person and is being conducted
jointly with the FBI.
Paragraph 624(g) provides that nothing in section 624
shall be construed to prohibit information from being furnished
by the FBI pursuant to subpoena or court order, or in
connection with judicial or administrative proceeding to
enforce the provisions of the FCRA. The paragraph further
provides that nothing in section 624 shall be construed to
authorize or permit the withholding of information from the
Congress.
Paragraph 634(h) provides that on a semiannual basis the
Attorney General shall fully inform the Permanent Select
Committee on Intelligence and the Committee on Banking,
Finance, and Urban Affairs of the U.S. House of
Representatives, and the Select Committee on Intelligence and
the Committee on Banking, Housing, and Urban Affairs of the
U.S. Senate concerning all requests made pursuant to section
624.
Semiannual reports are required to be submitted to the
intelligence committees on (1) use of FBI's mandatory access
provision of the RFPA by section 3414(a)(5)(C) of title 15,
United States Code; and (2) use of the FBI's
counterintelligence authority, under the Electronic Privacy
Communications Act of 1986, to access telephone subscriber and
toll billing information by section 2709(e) of title 18, United
States Code. The conferees expect the reports required by FCRA
paragraph 624(h) to match the level of detail included in these
reports, i.e., a breakdown by quarter, by number of requests,
by number or persons or organizations subject to requests, and
by U.S. persons and organizations and non-U.S. persons and
organizations.
Paragraphs 624(i) through 624(m) parallel the enforcement
provisions of the Right to Financial Privacy Act, 12 U.S.C.
3417 and 3418.
Paragraph 624(i) establishes civil penalties for access
or disclosure by an agency or department of the United States
in violation of section 624. Damages, costs and attorney fees
would be awarded to the person to whom the consumer reports
related in the event of a violation.
Paragraph 624(j) provides that whenever a court
determines that any agency or department of the United States
has violated any provision of section 624 and that the
circumstances surrounding the violation raise questions of
whether an officer or employee of the agency or department
acted willfully or intentionally with respect to the violation,
the agency or department shall promptly initiate a proceeding
to determine whether disciplinary action is warranted against
the officer or employee who was responsible for the violation.
Paragraph 624(k) provides that any credit reporting
institution or agent or employee thereof making a disclosure of
credit records pursuant to section 624 in good-faith reliance
upon a certificate by the FBI pursuant to the provisions of
section 624 shall not be liable to any person for such
disclosure under title 15, the constitution of any State, or
any law or regulation of any State or any political subdivision
of any State.
Paragraph 624(l) provides that the remedies and sanctions
set forth in section 624 shall be the only judicial remedies
and sanctions for violations of the section.
Paragraph 624(m) provides that in addition to any other
remedy contained in section 624, injunctive relief shall be
available to require that the procedures of the section are
complied with and that in the event of any successful action,
costs together with reasonable attorney's fees, as determined
by the court, may be recovered.
Section 601 is identical to section 601 of the Senate
amendment. The House bill did not contain a similar provision.
Title VII--Technical Amendments
SEC. 701. CLARIFICATION WITH RESPECT TO PAY FOR DIRECTOR OR DEPUTY
DIRECTOR OF CENTRAL INTELLIGENCE APPOINTED FROM
COMMISSIONED OFFICERS OF THE ARMED FORCES.
Section 701 of the conference report amends section
102(c)(3)(C) of the National Security Act of 1947 to make clear
that a retired military officer appointed as Director or Deputy
Director of Central Intelligence can receive compensation at
the appropriate level of the Executive Schedule under 5 U.S.C.
Sec. 5313 (Director) or 5 U.S.C. Sec. 5314 (Deputy Director).
This was clearly the intent of the drafters of this provision.
The conferees are aware of the restriction on compensation that
applies to active duty military personnel appointed as DCI or
DDCI, and in no way wish to change this restriction. Section
701 is similar to Section 601 in the House bill and Section 701
in the Senate amendment.
SEC. 702. CHANGE OF DESIGNATION OF CIA OFFICE OF SECURITY.
Section 702 of the conference report amends the CIA
Information Act of 1984 to reflect the recent reorganization of
the CIA Office of Security into the Office of Personnel
Security and the Office of Security Operations. The amendment
will ensure that the Office of Personnel Security, where the
records intended to be subject to the Act are kept, will
continue to receive the benefit of the Act's exception from
search and review under the Freedom of Information Act. Section
701 is similar to Section 602 in the House bill and Section 702
in the Senate amendment.
Provisions Not Included in the Conference Report
The Senate amendment included, at Section 404, a
requirement for an annual report on liaison relationships.
While the Conferees are committed to ensuring that the
oversight committees are appropriately informed on liaison
relationships, they do not believe that a statutory reporting
requirement is the best way to achieve that result.
Consequently, the conferees agreed to delete section 404.
From the Permanent Select Committee on
Intelligence, for consideration of the House
bill, and the Senate amendment, and
modifications committed to conference:
Larry Combest,
R.K. Dornan,
Bill Young,
James V. Hansen,
Jerry Lewis,
Porter J. Goss,
Bud Shuster,
Bill McCollum,
Michael N. Castle,
Norman Dicks,
Bill Richardson,
Julian C. Dixon,
Robert G. Torricelli,
Ron Coleman,
David E. Skaggs,
Nancy Pelosi,
As additional conferees from the Committee on
National Security, for consideration of defense
tactical intelligence and related activities:
Floyd Spence,
Bob Stump,
As additional conferees from the Committee on
International Relations, for consideration of
section 303 of the House bill, and section 303
of the Senate amendment, and modifications
committed to conference:
Benjamin A. Gilman,
Christopher Smith,
Howard L. Berman,
Managers on the Part of the House.
Arlen Specter,
Richard G. Lugar,
Richard Shelby,
Mike DeWine,
Jon Kyl,
Jim Inhofe,
Kay Bailey Hutchison,
Connie Mack,
Bill Cohen,
Strom Thurmond,
Robert Kerrey,
John Glenn,
Richard H. Bryan,
Bob Graham,
John F. Kerry,
Max Baucus,
J. Bennett Johnston,
Charles Robb,
Sam Nunn,
Managers on the Part of the Senate.
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