[House Report 106-457]
[From the U.S. Government Printing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 106-457
======================================================================
INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2000
_______
November 5, 1999.--Ordered to be printed
_______
Mr. Goss, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 1555]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the Senate to the bill (H.R.
1555), to authorize appropriations for fiscal year 2000 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 2000''.
(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. Intelligence Community Management Account.
Sec. 105. Authorization of emergency supplemental appropriations for
fiscal year 1999.
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. Diplomatic intelligence support centers.
Sec. 304. Protection of identity of retired covert agents.
Sec. 305. Access to computers and computer data of executive branch
employees with access to classified information.
Sec. 306. Naturalization of certain persons affiliated with a Communist
or similar party.
Sec. 307. Technical amendment.
Sec. 308. Declassification review of intelligence estimate on Vietnam-
era prisoners of war and missing in action personnel and
critical assessment of estimate.
Sec. 309. Report on legal standards applied for electronic surveillance.
Sec. 310. Report on effects of foreign espionage on the United States.
Sec. 311. Report on activities of the Central Intelligence Agency in
Chile.
Sec. 312. Report on Kosova Liberation Army.
Sec. 313. Reaffirmation of longstanding prohibition against drug
trafficking by employees of the intelligence community.
Sec. 314. Sense of Congress on classification and declassification.
Sec. 315. Sense of Congress on intelligence community contracting.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
Sec. 401. Improvement and extension of central services program.
Sec. 402. Extension of CIA Voluntary Separation Pay Act.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
Sec. 501. Protection of operational files of the National Imagery and
Mapping Agency.
Sec. 502. Funding for infrastructure and quality of life improvements at
Menwith Hill and Bad Aibling stations.
TITLE VI--FOREIGN COUNTERINTELLIGENCE AND INTERNATIONAL TERRORISM
INVESTIGATIONS
Sec. 601. Expansion of definition of ``agent of a foreign power'' for
purposes of the Foreign Intelligence Surveillance Act of 1978.
Sec. 602. Federal Bureau of Investigation reports to other executive
agencies on results of counterintelligence activities.
TITLE VII--NATIONAL COMMISSION FOR THE REVIEW OF THE NATIONAL
RECONNAISSANCE OFFICE
Sec. 701. Findings.
Sec. 702. National Commission for the Review of the National
Reconnaissance Office.
Sec. 703. Duties of commission.
Sec. 704. Powers of commission.
Sec. 705. Staff of commission.
Sec. 706. Compensation and travel expenses.
Sec. 707. Treatment of information relating to national security.
Sec. 708. Final report; termination.
Sec. 709. Assessments of final report.
Sec. 710. Inapplicability of certain administrative provisions.
Sec. 711. Funding.
Sec. 712. Congressional intelligence committees defined.
TITLE VIII--INTERNATIONAL NARCOTICS TRAFFICKING
Sec. 801. Short title.
Sec. 802. Findings and policy.
Sec. 803. Purpose.
Sec. 804. Public identification of significant foreign narcotics
traffickers and required reports.
Sec. 805. Blocking assets and prohibiting transactions.
Sec. 806. Authorities.
Sec. 807. Enforcement.
Sec. 808. Definitions.
Sec. 809. Exclusion of persons who have benefited from illicit
activities of drug traffickers.
Sec. 810. Judicial Review Commission on Foreign Asset Control.
Sec. 811. Effective date.
TITLE I--INTELLIGENCE ACTIVITIES
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fiscal
year 2000 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 the Treasury.
(8) The Department of Energy.
(9) The Federal Bureau of Investigation.
(10) The National Reconnaissance Office.
(11) The National Imagery and Mapping Agency.
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, 2000, 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. 1555 of the
One Hundred Sixth Congress.
(b) Availability of Classified Schedule of
Authorizations.--The classified 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
2000 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 the
Director exercises the authority granted by this section.
SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.
(a) Authorization of Appropriations.--There is authorized
to be appropriated for the Intelligence Community Management
Account of the Director of Central Intelligence for fiscal year
2000 the sum of $170,672,000.
(b) Authorized Personnel Levels.--The elements within the
Community Management Account of the Director of Central
Intelligence are authorized a total of 348 full-time personnel
as of September 30, 2000. Personnel serving in such elements
may be permanent employees of the Community Management Account
element or personnel detailed from other elements of the United
States Government.
(c) Classified Authorizations.--
(1) Authorization of appropriations.--In addition
to amounts authorized to be appropriated for the
Community Management Account by subsection (a), there
is also authorized to be appropriated for the Community
Management Account for fiscal year 2000 such additional
amounts as are specified in the classified Schedule of
Authorizations referred to in section 102(a). Such
additional amounts shall remain available until
September 30, 2001.
(2) Authorization of personnel.--In addition to the
personnel authorized by subsection (b) for elements of
the Community Management Account as of September 30,
2000, there is hereby authorized such additional
personnel for such elements as of that date as is
specified in the classified Schedule of Authorizations.
(d) Reimbursement.--Except as provided in section 113 of
the National Security Act of 1947 (50 U.S.C. 404h), during
fiscal year 2000, any officer or employee of the United States
or member of the Armed Forces who is detailed to the staff of
an element within the Community Management Account 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.
(e) National Drug Intelligence Center.--
(1) In general.--Of the amount authorized to be
appropriated in subsection (a), $27,000,000 shall be
available for the National Drug Intelligence Center.
Within such amount, funds provided for research,
development, test, and evaluation purposes shall remain
available until September 30, 2001, and funds provided
for procurement purposes shall remain available until
September 30, 2002.
(2) Transfer of funds.--The Director of Central
Intelligence shall transfer to the Attorney General of
the United States funds available for the National Drug
Intelligence Center under paragraph (1). The Attorney
General shall utilize funds so transferred for
activities of the Center.
(3) Limitation.--Amounts available for the National
Drug Intelligence Center may not be used in
contravention of the provisions of section 103(d)(1) of
the National Security Act of 1947 (50 U.S.C. 403-
3(d)(1)).
(4) Authority.--Notwithstanding any other provision
of law, the Attorney General shall retain full
authority over the operations of the National Drug
Intelligence Center.
SEC. 105. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR
FISCAL YEAR 1999.
(a) Authorization.--Amounts authorized to be appropriated
for fiscal year 1999 under section 101 of the Intelligence
Authorization Act for Fiscal Year 1999 (Public Law 105-272) for
the conduct of the intelligence activities of elements of the
United States Government listed in such section are hereby
increased, with respect to any such authorized amount, by the
amount by which appropriations pursuant to such authorization
were increased by the 1999 Emergency Supplemental
Appropriations Act (Public Law 106-31), for such amounts as are
designated by Congress as an emergency requirement pursuant to
section 251(b)(2)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)).
(b) Ratification.--For purposes of section 504 of the
National Security Act of 1947 (50 U.S.C. 414), any obligation
or expenditure of amounts appropriated in the 1999 Emergency
Supplemental Appropriations Act for intelligence activities is
hereby ratified and confirmed, to the extent such amounts are
designated by Congress as an emergency requirement pursuant to
the Balanced Budget and Emergency Deficit Control Act of 1985.
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 2000 the sum of $209,100,000.
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. DIPLOMATIC INTELLIGENCE SUPPORT CENTERS.
(a) In General.--Title I of the National Security Act of
1947 (50 U.S.C. 401 et seq.) is amended by adding at the end
the following new section:
``limitation on establishment or operation of diplomatic intelligence
support centers
``Sec. 115. (a) In General.--(1) A diplomatic intelligence
support center may not be established, operated, or maintained
without the prior approval of the Director of Central
Intelligence.
``(2) The Director may only approve the establishment,
operation, or maintenance of a diplomatic intelligence support
center if the Director determines that the establishment,
operation, or maintenance of such center is required to provide
necessary intelligence support in furtherance of the national
security interests of the United States.
``(b) Prohibition of Use of Appropriations.--Amounts
appropriated pursuant to authorizations by law for intelligence
and intelligence-related activities may not be obligated or
expended for the establishment, operation, or maintenance of a
diplomatic intelligence support center that is not approved by
the Director of Central Intelligence.
``(c) Definitions.--In this section:
``(1) The term `diplomatic intelligence support
center' means an entity to which employees of the
various elements of the intelligence community (as
defined in section 3(4)) are detailed for the purpose
of providing analytical intelligence support that--
``(A) consists of intelligence analyses on
military or political matters and expertise to
conduct limited assessments and dynamic
taskings for a chief of mission; and
``(B) is not intelligence support
traditionally provided to a chief of mission by
the Director of Central Intelligence.
``(2) The term `chief of mission' has the meaning
given that term by section 102(3) of the Foreign
Service Act of 1980 (22 U.S.C. 3902(3)), and includes
ambassadors at large and ministers of diplomatic
missions of the United States, or persons appointed to
lead United States offices abroad designated by the
Secretary of State as diplomatic in nature.
``(d) Termination.--This section shall cease to be
effective on October 1, 2000.''.
(b) Clerical Amendment.--The table of contents contained in
the first section of such Act is amended by inserting after the
item relating to section 114 the following new item:
``Sec. 115. Limitation on establishment or operation of diplomatic
intelligence support centers.''.
SEC. 304. PROTECTION OF IDENTITY OF RETIRED COVERT AGENTS.
(a) In General.--Section 606(4)(A) of the National Security
Act of 1947 (50 U.S.C. 426(4)(A)) is amended--
(1) by striking ``an officer or employee'' and
inserting ``a present or retired officer or employee'';
and
(2) by striking ``a member'' and inserting ``a
present or retired member''.
(b) Prison Sentences for Violations.--
(1) Imposition of consecutive sentences.--Section
601 of the National Security Act of 1947 (50 U.S.C.
421) is amended by adding at the end the following new
subsection:
``(d) A term of imprisonment imposed under this section
shall be consecutive to any other sentence of imprisonment.''.
(2) Technical amendments.--Such section 601 is
further amended--
(A) in subsection (a), by striking ``shall
be fined not more than $50,000'' and inserting
``shall be fined under title 18, United States
Code,'';
(B) in subsection (b), by striking ``shall
be fined not more than $25,000'' and inserting
``shall be fined under title 18, United States
Code,''; and
(C) in subsection (c), by striking ``shall
be fined not more than $15,000'' and inserting
``shall be fined under title 18, United States
Code,''.
SEC. 305. ACCESS TO COMPUTERS AND COMPUTER DATA OF EXECUTIVE BRANCH
EMPLOYEES WITH ACCESS TO CLASSIFIED INFORMATION.
(a) Access.--Section 801(a)(3) of the National Security Act
of 1947 (50 U.S.C. 435(a)(3)) is amended by striking ``and
travel records'' and inserting ``travel records, and computers
used in the performance of government duties''.
(b) Computer Defined.--Section 804 of that Act (50 U.S.C.
438) is amended--
(1) by striking ``and'' at the end of paragraph
(6);
(2) by striking the period at the end of paragraph
(7) and inserting ``; and''; and
(3) by adding at the end the following:
``(8) the term `computer' means any electronic,
magnetic, optical, electrochemical, or other high speed
data processing device performing logical, arithmetic,
or storage functions, and includes any data storage
facility or communications facility directly related to
or operating in conjunction with such device and any
data or other information stored or contained in such
device.''.
(c) Applicability.--The President shall modify the
procedures required by section 801(a)(3) of the National
Security Act of 1947 to take into account the amendment to that
section made by subsection (a) of this section not later than
90 days after the date of the enactment of this Act.
SEC. 306. NATURALIZATION OF CERTAIN PERSONS AFFILIATED WITH A COMMUNIST
OR SIMILAR PARTY.
Section 313 of the Immigration and Nationality Act (8
U.S.C. 1424) is amended by adding at the end the following new
subsection:
``(e) A person may be naturalized under this title without
regard to the prohibitions in subsections (a)(2) and (c) of
this section if the person--
``(1) is otherwise eligible for naturalization;
``(2) is within the class described in subsection
(a)(2) solely because of past membership in, or past
affiliation with, a party or organization described in
that subsection;
``(3) does not fall within any other of the classes
described in that subsection; and
``(4) is determined by the Director of Central
Intelligence, in consultation with the Secretary of
Defense, and with the concurrence of the Attorney
General, to have made a contribution to the national
security or to the national intelligence mission of the
United States.''.
SEC. 307. TECHNICAL AMENDMENT.
Section 305(b)(2) of the Intelligence Authorization Act for
Fiscal Year 1997 (Public Law 104-293, 110 Stat. 3465; 8 U.S.C.
1427 note) is amended by striking ``subparagraph (A), (B), (C),
or (D) of section 243(h)(2) of such Act'' and inserting
``clauses (i) through (iv) of section 241(b)(3)(B) of such
Act''.
SEC. 308. DECLASSIFICATION REVIEW OF INTELLIGENCE ESTIMATE ON VIETNAM-
ERA PRISONERS OF WAR AND MISSING IN ACTION
PERSONNEL AND CRITICAL ASSESSMENT OF ESTIMATE.
(a) Declassification Review.--Subject to subsection (b),
the Director of Central Intelligence shall review for
declassification the following:
(1) National Intelligence Estimate 98-03 dated
April 1998 and entitled ``Vietnamese Intentions,
Capabilities, and Performance Concerning the POW/MIA
Issue''.
(2) The assessment dated November 1998 and entitled
``A Critical Assessment of National Intelligence
Estimate 98-03 prepared by the United States Chairman
of the Vietnam War Working Group of the United States-
Russia Joint Commission on POWs and MIAs''.
(b) Limitations.--The Director shall not declassify any
text contained in the estimate or assessment referred to in
subsection (a) which would--
(1) reveal intelligence sources and methods; or
(2) disclose by name the identity of a living
foreign individual who has cooperated with United
States efforts to account for missing personnel from
the Vietnam era.
(c) Deadline.--The Director shall complete the
declassification review of the estimate and assessment under
subsection (a) not later than 30 days after the date of the
enactment of this Act.
SEC. 309. REPORT ON LEGAL STANDARDS APPLIED FOR ELECTRONIC
SURVEILLANCE.
(a) Report.--Not later than 60 days after the date of the
enactment of this Act, the Director of Central Intelligence,
the Director of the National Security Agency, and the Attorney
General shall jointly prepare, and the Director of the National
Security Agency shall submit to the appropriate congressional
committees, a report in classified and unclassified form
providing a detailed analysis of the legal standards employed
by elements of the intelligence community in conducting signals
intelligence activities, including electronic surveillance.
(b) Matters Specifically Addressed.--The report shall
specifically include a statement of each of the following legal
standards:
(1) The legal standards for interception of
communications when such interception may result in the
acquisition of information from a communication to or
from United States persons.
(2) The legal standards for intentional targeting
of the communications to or from United States persons.
(3) The legal standards for receipt from non-United
States sources of information pertaining to
communications to or from United States persons.
(4) The legal standards for dissemination of
information acquired through the interception of the
communications to or from United States persons.
(c) Definitions.--As used in this section:
(1) The term ``intelligence community'' has the
meaning given that term under section 3(4) of the
National Security Act of 1947 (50 U.S.C. 401a(4)).
(2) The term ``United States persons'' has the
meaning given that term under section 101(i) of the
Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1801(i)).
(3) The term ``appropriate congressional
committees'' means the Permanent Select Committee on
Intelligence and the Committee on the Judiciary of the
House of Representatives and the Select Committee on
Intelligence and the Committee on the Judiciary of the
Senate.
SEC. 310. REPORT ON EFFECTS OF FOREIGN ESPIONAGE ON THE UNITED STATES.
Not later than 270 days after the date of the enactment of
this Act, the Director of Central Intelligence shall submit to
Congress a report describing the effects of espionage against
the United States, conducted by or on behalf of other nations,
on United States trade secrets, patents, and technology
development. The report shall also include an analysis of other
effects of such espionage on the United States.
SEC. 311. REPORT ON ACTIVITIES OF THE CENTRAL INTELLIGENCE AGENCY IN
CHILE.
(a) In General.--By not later than 270 days after the date
of the enactment of this Act, the Director of Central
Intelligence shall submit to the appropriate congressional
committees a report describing all activities of officers,
covert agents, and employees of all elements in the
intelligence community with respect to the following events in
the Republic of Chile:
(1) The assassination of President Salvador Allende
in September 1973.
(2) The accession of General Augusto Pinochet to
the Presidency of the Republic of Chile.
(3) Violations of human rights committed by
officers or agents of former President Pinochet.
(b) Definition.--In this section, the term ``appropriate
congressional committees'' means the Permanent Select Committee
on Intelligence and the Committee on Appropriations of the
House of Representatives and the Select Committee on
Intelligence and the Committee on Appropriations of the Senate.
SEC. 312. REPORT ON KOSOVA LIBERATION ARMY.
(a) Report.--Not later than 30 days after the date of the
enactment of this Act, the Director of Central Intelligence
shall submit to the appropriate congressional committees a
report (in both classified and unclassified form) on the
organized resistance in Kosovo known as the Kosova Liberation
Army. The report shall include the following:
(1) A summary of the history of the Kosova
Liberation Army.
(2) As of the date of the enactment of this Act--
(A) the number of individuals currently
participating in or supporting combat
operations of the Kosova Liberation Army
(fielded forces), and the number of individuals
in training for such service (recruits);
(B) the types, and quantity of each type,
of weapon employed by the Kosova Liberation
Army, the training afforded to such fielded
forces in the use of such weapons, and the
sufficiency of such training to conduct
effective military operations; and
(C) minimum additional weaponry and
training required to improve substantially the
efficacy of such military operations.
(3) An estimate of the percentage of funding (if
any) of the Kosova Liberation Army that is attributable
to profits from the sale of illicit narcotics.
(4) A description of the involvement (if any) of
the Kosova Liberation Army in terrorist activities.
(5) A description of the number of killings of
noncombatant civilians (if any) carried out by the
Kosova Liberation Army since its formation.
(6) A description of the leadership of the Kosova
Liberation Army, including an analysis of--
(A) the political philosophy and program of
the leadership; and
(B) the sentiment of the leadership toward
the United States.
(b) Appropriate Congressional Committees Defined.--As used
in this section, the term ``appropriate congressional
committees'' means the Committee on International Relations and
the Permanent Select Committee on Intelligence of the House of
Representatives and the Committee on Foreign Relations and the
Select Committee on Intelligence of the Senate.
SEC. 313. REAFFIRMATION OF LONGSTANDING PROHIBITION AGAINST DRUG
TRAFFICKING BY EMPLOYEES OF THE INTELLIGENCE
COMMUNITY.
(a) Finding.--Congress finds that longstanding statutes,
regulations, and policies of the United States prohibit
employees, agents, and assets of the elements of the
intelligence community, and of every other Federal department
and agency, from engaging in the illegal manufacture, purchase,
sale, transport, and distribution of drugs.
(b) Obligation of Employees of Intelligence Community.--Any
employee of the intelligence community having knowledge of a
fact or circumstance that reasonably indicates that an
employee, agent, or asset of an element of the intelligence
community is involved in any activity that violates a statute,
regulation, or policy described in subsection (a) shall report
such knowledge to an appropriate official.
(c) Intelligence Community Defined.--In this section, the
term ``intelligence community'' has the meaning given that term
in section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)).
SEC. 314. SENSE OF CONGRESS ON CLASSIFICATION AND DECLASSIFICATION.
It is the sense of Congress that the systematic
declassification of records of permanent historical value is in
the public interest and that the management of classification
and declassification by Executive branch agencies requires
comprehensive reform and the dedication by the Executive branch
of additional resources.
SEC. 315. SENSE OF CONGRESS ON INTELLIGENCE COMMUNITY CONTRACTING.
It is the sense of Congress that the Director of Central
Intelligence should continue to direct that elements of the
intelligence community, whenever compatible with the national
security interests of the United States and consistent with
operational and security concerns related to the conduct of
intelligence activities, and where fiscally sound, should
competitively award contracts in a manner that maximizes the
procurement of products properly designated as having been made
in the United States.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
SEC. 401. IMPROVEMENT AND EXTENSION OF CENTRAL SERVICES PROGRAM.
(a) Scope of Provision of Items and Services.--Subsection
(a) of section 21 of the Central Intelligence Agency Act of
1949 (50 U.S.C. 403u) is amended by striking ``and to other''
and inserting ``, nonappropriated fund entities or
instrumentalities associated or affiliated with the Agency, and
other''.
(b) Deposits in Central Services Working Capital Fund.--
Subsection (c)(2) of that section is amended--
(1) by amending subparagraph (D) to read as
follows:
``(D) Amounts received in payment for loss or
damage to equipment or property of a central service
provider as a result of activities under the
program.'';
(2) by redesignating subparagraph (E) as
subparagraph (F); and
(3) by inserting after subparagraph (D), as so
amended, the following new subparagraph (E):
``(E) Other receipts from the sale or exchange of
equipment or property of a central service provider as
a result of activities under the program.''.
(c) Availability of Fees.--Subsection (f)(2)(A) of that
section is amended by inserting ``central service providers and
any'' before ``elements of the Agency''.
(d) Extension of Program.--Subsection (h)(1) of that
section is amended by striking ``March 31, 2000'' and inserting
``March 31, 2002''.
SEC. 402. EXTENSION OF 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 note) is amended by striking ``September 30, 1999'' and
inserting ``September 30, 2002''.
(b) Remittance of Funds.--Section 2(i) of that Act is
amended by striking ``or fiscal year 1999'' and inserting ``,
1999, 2000, 2001, or 2002''.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
SEC. 501. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL IMAGERY AND
MAPPING AGENCY.
(a) In General.--(1) Title I of the National Security Act
of 1947 (50 U.S.C. 401 et seq.) is amended by inserting after
section 105A (50 U.S.C. 403-5a) the following new section:
``protection of operational files of the national imagery and mapping
agency
``Sec. 105B. (a) Exemption of Certain Operational Files
From Search, Review, Publication, or Disclosure.--(1) The
Director of the National Imagery and Mapping Agency, with the
coordination of the Director of Central Intelligence, may
exempt operational files of the National Imagery and Mapping
Agency from the provisions of section 552 of title 5, United
States Code, which require publication, disclosure, search, or
review in connection therewith.
``(2)(A) Subject to subparagraph (B), for the purposes of
this section, the term `operational files' means files of the
National Imagery and Mapping Agency (hereinafter in this
section referred to as `NIMA') concerning the activities of
NIMA that before the establishment of NIMA were performed by
the National Photographic Interpretation Center of the Central
Intelligence Agency (NPIC), that document the means by which
foreign intelligence or counterintelligence is collected
through scientific and technical systems.
``(B) Files which are the sole repository of disseminated
intelligence are not operational files.
``(3) Notwithstanding paragraph (1), exempted operational
files shall continue to be subject to search and review for
information concerning--
``(A) United States citizens or aliens lawfully
admitted for permanent residence who have requested
information on themselves pursuant to the provisions of
section 552 or 552a of title 5, United States Code;
``(B) any special activity the existence of which
is not exempt from disclosure under the provisions of
section 552 of title 5, United States Code; or
``(C) the specific subject matter of an
investigation by any of the following for any
impropriety, or violation of law, Executive order, or
Presidential directive, in the conduct of an
intelligence activity:
``(i) The Permanent Select Committee on
Intelligence of the House of Representatives.
``(ii) The Select Committee on Intelligence
of the Senate.
``(iii) The Intelligence Oversight Board.
``(iv) The Department of Justice.
``(v) The Office of General Counsel of
NIMA.
``(vi) The Office of the Director of NIMA.
``(4)(A) Files that are not exempted under paragraph (1)
which contain information derived or disseminated from exempted
operational files shall be subject to search and review.
``(B) The inclusion of information from exempted
operational files in files that are not exempted under
paragraph (1) shall not affect the exemption under paragraph
(1) of the originating operational files from search, review,
publication, or disclosure.
``(C) Records from exempted operational files which have
been disseminated to and referenced in files that are not
exempted under paragraph (1) and which have been returned to
exempted operational files for sole retention shall be subject
to search and review.
``(5) The provisions of paragraph (1) may not be superseded
except by a provision of law which is enacted after the date of
the enactment of this section, and which specifically cites and
repeals or modifies its provisions.
``(6)(A) Except as provided in subparagraph (B), whenever
any person who has requested agency records under section 552
of title 5, United States Code, alleges that NIMA has withheld
records improperly because of failure to comply with any
provision of this section, judicial review shall be available
under the terms set forth in section 552(a)(4)(B) of title 5,
United States Code.
``(B) Judicial review shall not be available in the manner
provided for under subparagraph (A) as follows:
``(i) In any case in which information specifically
authorized under criteria established by an Executive
Order to be kept secret in the interests of national
defense or foreign relations is filed with, or produced
for, the court by NIMA, such information shall be
examined ex parte, in camera by the court.
``(ii) The court shall, to the fullest extent
practicable, determine the issues of fact based on
sworn written submissions of the parties.
``(iii) When a complainant alleges that requested
records are improperly withheld because of improper
placement solely in exempted operational files, the
complainant shall support such allegation with a sworn
written submission based upon personal knowledge or
otherwise admissible evidence.
``(iv)(I) When a complainant alleges that requested
records were improperly withheld because of improper
exemption of operational files, NIMA shall meet its
burden under section 552(a)(4)(B) of title 5, United
States Code, by demonstrating to the court by sworn
written submission that exempted operational files
likely to contain responsible records currently perform
the functions set forth in paragraph (2).
``(II) The court may not order NIMA to review the
content of any exempted operational file or files in
order to make the demonstration required under
subclause (I), unless the complainant disputes NIMA's
showing with a sworn written submission based on
personal knowledge or otherwise admissible evidence.
``(v) In proceedings under clauses (iii) and (iv),
the parties may not obtain discovery pursuant to rules
26 through 36 of the Federal Rules of Civil Procedure,
except that requests for admissions may be made
pursuant to rules 26 and 36.
``(vi) If the court finds under this paragraph that
NIMA has improperly withheld requested records because
of failure to comply with any provision of this
subsection, the court shall order NIMA to search and
review the appropriate exempted operational file or
files for the requested records and make such records,
or portions thereof, available in accordance with the
provisions of section 552 of title 5, United States
Code, and such order shall be the exclusive remedy for
failure to comply with this subsection.
``(vii) If at any time following the filing of a
complaint pursuant to this paragraph NIMA agrees to
search the appropriate exempted operational file or
files for the requested records, the court shall
dismiss the claim based upon such complaint.
``(viii) Any information filed with, or produced
for the court pursuant to clauses (i) and (iv) shall be
coordinated with the Director of Central Intelligence
prior to submission to the court.
``(b) Decennial Review of Exempted Operational Files.--(1)
Not less than once every ten years, the Director of the
National Imagery and Mapping Agency and the Director of Central
Intelligence shall review the exemptions in force under
subsection (a)(1) to determine whether such exemptions may be
removed from the category of exempted files or any portion
thereof. The Director of Central Intelligence must approve any
determination to remove such exemptions.
``(2) The review required by paragraph (1) shall include
consideration of the historical value or other public interest
in the subject matter of the particular category of files or
portions thereof and the potential for declassifying a
significant part of the information contained therein.
``(3) A complainant that alleges that NIMA has improperly
withheld records because of failure to comply with this
subsection may seek judicial review in the district court of
the United States of the district in which any of the parties
reside, or in the District of Columbia. In such a proceeding,
the court's review shall be limited to determining the
following:
``(A) Whether NIMA has conducted the review
required by paragraph (1) before the expiration of the
ten-year period beginning on the date of the enactment
of this section or before the expiration of the 10-year
period beginning on the date of the most recent review.
``(B) Whether NIMA, in fact, considered the
criteria set forth in paragraph (2) in conducting the
required review.''.
(2) The table of contents contained in the first section of
such Act is amended by inserting after the item relating to
section 105A the following new item:
``Sec. 105B. Protection of operational files of the National Imagery and
Mapping Agency.''.
(b) Treatment of Certain Transferred Records.--Any record
transferred to the National Imagery and Mapping Agency from
exempted operational files of the Central Intelligence Agency
covered by section 701(a) of the National Security Act of 1947
(50 U.S.C. 431(a)) shall be placed in the operational files of
the National Imagery and Mapping Agency that are established
pursuant to section 105B of the National Security Act of 1947,
as added by subsection (a).
SEC. 502. FUNDING FOR INFRASTRUCTURE AND QUALITY OF LIFE IMPROVEMENTS
AT MENWITH HILL AND BAD AIBLING STATIONS.
Section 506(b) of the Intelligence Authorization Act for
Fiscal Year 1996 (Public Law 104-93; 109 Stat. 974), as amended
by section 502 of the Intelligence Authorization Act for Fiscal
Year 1998 (Public Law 105-107; 111 Stat. 2262), is further
amended by striking ``for fiscal years 1998 and 1999'' and
inserting ``for fiscal years 2000 and 2001''.
TITLE VI--FOREIGN COUNTERINTELLIGENCE AND INTERNATIONAL TERRORISM
INVESTIGATIONS
SEC. 601. EXPANSION OF DEFINITION OF ``AGENT OF A FOREIGN POWER'' FOR
PURPOSES OF THE FOREIGN INTELLIGENCE SURVEILLANCE
ACT OF 1978.
Section 101(b)(2) of the Foreign Intelligence Surveillance
Act of 1978 (50 U.S.C. 1801(b)(2)) is amended--
(1) in subparagraph (C), by striking ``or'' at the
end;
(2) by redesignating subparagraph (D) as
subparagraph (E); and
(3) by inserting after subparagraph (C) the
following new subparagraph (D):
``(D) knowingly enters the United States
under a false or fraudulent identity for or on
behalf of a foreign power or, while in the
United States, knowingly assumes a false or
fraudulent identity for or on behalf of a
foreign power; or''.
SEC. 602. FEDERAL BUREAU OF INVESTIGATION REPORTS TO OTHER EXECUTIVE
AGENCIES ON RESULTS OF COUNTERINTELLIGENCE
ACTIVITIES.
Section 811(c)(2) of the Counterintelligence and Security
Enhancements Act of 1994 (title VIII of Public Law 103-359; 108
Stat. 3455; 50 U.S.C. 402a(c)(2)) is amended by striking
``after a report has been provided pursuant to paragraph
(1)(A)''.
TITLE VII--NATIONAL COMMISSION FOR THE REVIEW OF THE NATIONAL
RECONNAISSANCE OFFICE
SEC. 701. FINDINGS.
Congress makes the following findings:
(1) Imagery and signals intelligence satellites are
vitally important to the security of the Nation.
(2) The National Reconnaissance Office (in this
title referred to as the ``NRO'') and its predecessor
organizations have helped protect and defend the United
States for more than 30 years.
(3) The end of the Cold War and the enormous growth
in usage of information technology have changed the
environment in which the intelligence community must
operate. At the same time, the intelligence community
has undergone significant changes in response to
dynamic developments in strategy and in budgetary
matters. The acquisition and maintenance of satellite
systems are essential to providing timely intelligence
to national policymakers and achieving information
superiority for military leaders.
(4) There is a need to evaluate the roles and
mission, organizational structure, technical skills,
contractor relationships, use of commercial imagery,
acquisition of launch vehicles, launch services, and
launch infrastructure, mission assurance, acquisition
authorities, and relationship to other agencies and
departments of the Federal Government of the NRO in
order to assure continuing success in satellite
reconnaissance in the new millennium.
SEC. 702. NATIONAL COMMISSION FOR THE REVIEW OF THE NATIONAL
RECONNAISSANCE OFFICE.
(a) Establishment.--There is established a commission to be
known as the ``National Commission for the Review of the
National Reconnaissance Office'' (in this title referred to as
the ``Commission'').
(b) Composition.--The Commission shall be composed of
eleven members, as follows:
(1) The Deputy Director of Central Intelligence for
Community Management.
(2) Three members appointed by the Majority Leader
of the Senate, in consultation with the Chairman of the
Select Committee on Intelligence of the Senate, one
from Members of the Senate and two from private life.
(3) Two members appointed by the Minority Leader of
the Senate, in consultation with the Vice Chairman of
the Select Committee on Intelligence of the Senate, one
from Members of the Senate and one from private life.
(4) Three members appointed by the Speaker of the
House of Representatives, in consultation with the
Chairman of the Permanent Select Committee on
Intelligence of the House of Representatives, one from
Members of the House of Representatives and two from
private life.
(5) Two members appointed by the Minority Leader of
the House of Representatives, in consultation with the
ranking member of the Permanent Select Committee on
Intelligence of the House of Representatives, one from
Members of the House of Representatives and one from
private life.
The Director of the National Reconnaissance Office shall be an
ex officio member of the Commission.
(c) Membership.--(1) The individuals appointed as members
of the Commission shall be individuals who are nationally
recognized for expertise, knowledge, or experience in--
(A) technical intelligence collection systems and
methods;
(B) research and development programs;
(C) acquisition management;
(D) use of intelligence information by national
policymakers and military leaders; or
(E) the implementation, funding, or oversight of
the national security policies of the United States.
(2) An official who appoints members of the Commission may
not appoint an individual as a member of the Commission if, in
the judgment of the official, such individual possesses any
personal or financial interest in the discharge of any of the
duties of the Commission.
(3) All members of the Commission appointed from private
life shall possess an appropriate security clearance in
accordance with applicable laws and regulations concerning the
handling of classified information.
(d) Co-Chairs.--(1) The Commission shall have two co-
chairs, selected from among the members of the Commission.
(2) One co-chair of the Commission shall be a member of the
Democratic Party, and one co-chair shall be a member of the
Republican Party.
(3) The individuals who serve as the co-chairs of the
Commission shall be jointly agreed upon by the President, the
Majority Leader of the Senate, the Minority Leader of the
Senate, and Speaker of the House of Representatives, and the
Minority Leader of the House of Representatives.
(e) Appointment; Initial Meeting.--(1) Members of the
Commission shall be appointed not later than 45 days after the
date of the enactment of this Act.
(2) The Commission shall hold its initial meeting on the
date that is 60 days after the date of the enactment of this
Act.
(f) Meetings; Quorum; Vacancies.--(1) After its initial
meeting, the Commission shall meet upon the call of the co-
chairs of the Commission.
(2) Six members of the Commission shall constitute a quorum
for purposes of conducting business, except that two members of
the Commission shall constitute a quorum for purposes of
receiving testimony.
(3) Any vacancy in the Commission shall not affect its
powers, but shall be filled in the same manner in which the
original appointment was made.
(4) If vacancies in the Commission occur on any day after
45 days after the date of the enactment of this Act, a quorum
shall consist of a majority of the members of the Commission as
of such day.
(g) Actions of Commission.--(1) The Commission shall act by
resolution agreed to by a majority of the members of the
Commission voting and present.
(2) The Commission may establish panels composed of less
than the full membership of the Commission for purposes of
carrying out the duties of the Commission under this title. The
actions of any such panel shall be subject to the review and
control of the Commission. Any findings and determinations made
by such a panel shall not be considered the findings and
determinations of the Commission unless approved by the
Commission.
(3) Any member, agent, or staff of the Commission may, if
authorized by the co-chairs of the Commission, take any action
which the Commission is authorized to take pursuant to this
title.
SEC. 703. DUTIES OF COMMISSION.
(a) In General.--The duties of the Commission shall be--
(1) to conduct, until not later than the date on
which the Commission submits the report under section
708(a), the review described in subsection (b); and
(2) to submit to the congressional intelligence
committees, the Director of Central Intelligence, and
the Secretary of Defense a final report on the results
of the review.
(b) Review.--The Commission shall review the current
organization, practices, and authorities of the NRO, in
particular with respect to--
(1) roles and mission;
(2) organizational structure;
(3) technical skills;
(4) contractor relationships;
(5) use of commercial imagery;
(6) acquisition of launch vehicles, launch
services, and launch infrastructure, and mission
assurance;
(7) acquisition authorities; and
(8) relationships with other agencies and
departments of the Federal Government.
SEC. 704. POWERS OF COMMISSION.
(a) In General.--(1) The Commission or, on the
authorization of the Commission, any subcommittee or member
thereof, may, for the purpose of carrying out the provisions of
this title--
(A) hold such hearings and sit and act at such
times and places, take such testimony, receive such
evidence, and administer such oaths, and
(B) require, by subpoena or otherwise, the
attendance and testimony of such witnesses and the
production of such books, records, correspondence,
memoranda, papers, and documents,
as the Commission or such designated subcommittee or designated
member considers necessary.
(2) Subpoenas may be issued under paragraph (1)(B) under
the signature of the co-chairs of the Commission, and may be
served by any person designated by such co-chairs.
(3) The provisions of sections 102 through 104 of the
Revised Statutes of the United States (2 U.S.C. 192-194) shall
apply in the case of any failure of a witness to comply with
any subpoena or to testify when summoned under authority of
this section.
(b) Contracting.--The Commission may, to such extent and in
such amounts as are provided in advance in appropriation Acts,
enter into contracts to enable the Commission to discharge its
duties under this title.
(c) Information From Federal Agencies.--The Commission may
secure directly from any executive department, agency, bureau,
board, commission, office, independent establishment, or
instrumentality of the Government information, suggestions,
estimates, and statistics for the purposes of this title. Each
such department, agency, bureau, board, commission, office,
establishment, or instrumentality shall, to the extent
authorized by law, furnish such information, suggestions,
estimates, and statistics directly to the Commission, upon
request of the co-chairs of the Commission. The Commission
shall handle and protect all classified information provided to
it under this section in accordance with applicable statutes
and regulations.
(d) Assistance From Federal Agencies.--(1) The Director of
Central Intelligence shall provide to the Commission, on a
nonreimbursable basis, such administrative services, funds,
staff, facilities, and other support services as are necessary
for the performance of the Commission's duties under this
title.
(2) The Secretary of Defense may provide the Commission, on
a nonreimbursable basis, with such administrative services,
staff, and other support services as the Commission may
request.
(3) In addition to the assistance set forth in paragraphs
(1) and (2), other departments and agencies of the United
States may provide the Commission such services, funds,
facilities, staff, and other support as such departments and
agencies consider advisable and as may be authorized by law.
(4) The Commission shall receive the full and timely
cooperation of any official, department, or agency of the
United States Government whose assistance is necessary for the
fulfillment of the duties of the Commission under this title,
including the provision of full and current briefings and
analyses.
(e) Prohibition on Withholding Information.--No department
or agency of the Government may withhold information from the
Commission on the grounds that providing the information to the
Commission would constitute the unauthorized disclosure of
classified information or information relating to intelligence
sources or methods.
(f) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as the departments and agencies of the United States.
(g) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property in carrying out its
duties under this title.
SEC. 705. STAFF OF COMMISSION.
(a) In General.--(1) The co-chairs of the Commission, in
accordance with rules agreed upon by the Commission, shall
appoint and fix the compensation of a staff director and such
other personnel as may be necessary to enable the Commission to
carry out its duties, without regard to the provisions of title
5, United States Code, governing appointments in the
competitive service, and without regard to the provisions of
chapter 51 and subchapter III orchapter 53 of such title
relating to classification and General Schedule pay rates, except that
no rate of pay fixed under this subsection may exceed the equivalent of
that payable to a person occupying a position at level V of the
Executive Schedule under section 5316 of such title.
(2) Any Federal Government employee may be detailed to the
Commission without reimbursement from the Commission, and such
detailee shall retain the rights, status, and privileges of his
or her regular employment without interruption.
(3) All staff of the Commission shall possess a security
clearance in accordance with applicable laws and regulations
concerning the handling of classified information.
(b) Consultant Services.--(1) The Commission may procure
the services of experts and consultants in accordance with
section 3109 of title 5, United States Code, but at rates not
to exceed the daily rate paid a person occupying a position at
level IV of the Executive Schedule under section 5315 of such
title.
(2) All experts and consultants employed by the Commission
shall possess a security clearance in accordance with
applicable laws and regulations concerning the handling of
classified information.
SEC. 706. COMPENSATION AND TRAVEL EXPENSES.
(a) Compensation.--(1) Except as provided in paragraph (2),
each member of the Commission may be compensated at not to
exceed the daily equivalent of the annual rate of basic pay in
effect for a position at level IV of the Executive Schedule
under section 5315 of title 5, United States Code, for each day
during which that member is engaged in the actual performance
of the duties of the Commission under this title.
(2) Members of the Commission who are officers or employees
of the United States or Members of Congress shall receive no
additional pay by reason of their service on the Commission.
(b) Travel Expenses.--While away from their homes or
regular places of business in the performance of services for
the Commission, members of the Commission may be allowed travel
expenses, including per diem in lieu of subsistence, in the
same manner as persons employed intermittently in the
Government service are allowed expenses under section 5703(b)
of title 5, United States Code.
SEC. 707. TREATMENT OF INFORMATION RELATING TO NATIONAL SECURITY.
(a) In General.--(1) The Director of Central Intelligence
shall assume responsibility for the handling and disposition of
any information related to the national security of the United
States that is received, considered, or used by the Commission
under this title.
(2) Any information related to the national security of the
United States that is provided to the Commission by a
congressional intelligence committee may not be further
provided or released without the approval of the chairman of
such committee.
(b) Access After Termination of Commission.--
Notwithstanding any other provision of law, after the
termination of the Commission under section 708, only the
Members and designated staff of the congressional intelligence
committees, the Director of Central Intelligence and the
designees of the Director, and such other officials of the
executive branch as the President may designate shall have
access to information related to the national security of the
United States that is received, considered, or used by the
Commission.
SEC. 708. FINAL REPORT; TERMINATION.
(a) Final Report.--Not later than November 1, 2000, the
Commission shall submit to the congressional intelligence
committees, the Director of Central Intelligence, and the
Secretary of Defense a final report as required by section
703(a).
(b) Termination.--(1) The Commission, and all the
authorities of this title, shall terminate at the end of the
120-day period beginning on the date on which the final report
under subsection (a) is transmitted to the congressional
intelligence committees.
(2) The Commission may use the 120-day period referred to
in paragraph (1) for the purposes of concluding its activities,
including providing testimony to committees of Congress
concerning the final report referred to in that paragraph and
disseminating the report.
SEC. 709. ASSESSMENTS OF FINAL REPORT.
Not later than 60 days after receipt of the final report
under section 708(a), the Director of Central Intelligence and
the Secretary of Defense shall each submit to the congressional
intelligence committees an assessment by the Director or the
Secretary, as the case may be, of the final report. Each
assessment shall include such comments on the findings and
recommendations contained in the final report as the Director
or Secretary, as the case may be, considers appropriate.
SEC. 710. INAPPLICABILITY OF CERTAIN ADMINISTRATIVE PROVISIONS.
(a) Federal Advisory Committee Act.--The provisions of the
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply
to the activities of the Commission under this title.
(b) Freedom of Information Act.--The provisions of section
552 of title 5, United States Code (commonly referred to as the
Freedom of Information Act), shall not apply to the activities,
records, and proceedings of the Commission under this title.
SEC. 711. FUNDING.
(a) Transfer From NRO.--Of the amounts authorized to be
appropriated by this Act for the National Reconnaissance
Office, the Director of the National Reconnaissance Office
shall transfer to the Director of Central Intelligence
$5,000,000 for purposes of the activities of the Commission
under this title.
(b) Availability In General.--The Director of Central
Intelligence shall make available to the Commission, from the
amount transferred to the Director under subsection (a), such
amounts as the Commission may require for purposes of the
activities of the Commission under this title.
(c) Duration of Availability.--Amounts made available to
the Commission under subsection (b) shall remain available
until expended.
SEC. 712. CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED.
In this title, the term ``congressional intelligence
committees'' means the following:
(1) The Select Committee on Intelligence of the
Senate.
(2) The Permanent Select Committee on Intelligence
of the House of Representatives.
TITLE VIII--INTERNATIONAL NARCOTICS TRAFFICKING
SEC. 801. SHORT TITLE.
This title may be cited as the ``Foreign Narcotics Kingpin
Designation Act''.
SEC. 802. FINDINGS AND POLICY.
(a) Findings.--Congress makes the following findings:
(1) Presidential Decision Directive 42, issued on
October 21, 1995, ordered agencies of the executive
branch of the United States Government to, inter alia,
increase the priority and resources devoted to the
direct and immediate threat international crime
presents to national security, work more closely with
other governments to develop a global response to this
threat, and use aggressively and creatively all legal
means available to combat international crime.
(2) Executive Order No. 12978 of October 21, 1995,
provides for the use of the authorities in the
International Emergency Economic Powers Act (IEEPA) (50
U.S.C. 1701 et seq.) to target and apply sanctions to 4
international narcotics traffickers and their
organizations that operate from Colombia.
(3) IEEPA was successfully applied to international
narcotics traffickers in Colombia and based on that
successful case study, Congress believes similar
authorities should be applied worldwide.
(4) There is a national emergency resulting from
the activities of international narcotics traffickers
and their organizations that threatens the national
security, foreign policy, and economy of the United
States.
(b) Policy.--It shall be the policy of the United States to
apply economic and other financial sanctions to significant
foreign narcotics traffickers and their organizations worldwide
to protect the national security, foreign policy, and economy
of the United States from the threat described in subsection
(a)(4).
SEC. 803. PURPOSE.
The purpose of this title is to provide authority for the
identification of, and application of sanctions on a worldwide
basis to, significant foreign narcotics traffickers, their
organizations, and the foreign persons who provide support to
those significant foreign narcotics traffickers and their
organizations, whose activities threaten the national security,
foreign policy, and economy of the United States.
SEC. 804. PUBLIC IDENTIFICATION OF SIGNIFICANT FOREIGN NARCOTICS
TRAFFICKERS AND REQUIRED REPORTS.
(a) Provision of Information to the President.--The
Secretary of the Treasury, the Attorney General, the Secretary
of Defense, the Secretary of State, and the Director of Central
Intelligence shall consult among themselves and provide the
appropriate and necessary information to enable the President
to submit the report under subsection (b). This information
shall also be provided to the Director of the Office of
National Drug Control Policy.
(b) Public Identification and Sanctioning of Significant
Foreign Narcotics Traffickers.--Not later than June 1, 2000,
and not later than June 1 of each year thereafter, the
President shall submit a report to the Permanent Select
Committee on Intelligence, and the Committees on the Judiciary,
International Relations, Armed Services, and Ways and Means of
the House of Representatives; and to the Select Committee on
Intelligence, and the Committees on the Judiciary, Foreign
Relations, Armed Services, and Finance of the Senate--
(1) identifying publicly the foreign persons that
the President determines are appropriate for sanctions
pursuant to this title; and
(2) detailing publicly the President's intent to
impose sanctions upon these significant foreign
narcotics traffickers pursuant to this title.
The report required in this subsection shall not include
information on persons upon which United States sanctions
imposed under this title, or otherwise on account of narcotics
trafficking, are already in effect.
(c) Unclassified Report Required.--The report required by
subsection (b) shall be submitted in unclassified form and made
available to the public.
(d) Classified Report.--(1) Not later than July 1, 2000,
and not later than July 1 of each year thereafter, the
President shall provide the Permanent Select Committee on
Intelligence of the House of Representatives and the Select
Committee on Intelligence of the Senate with a report in
classified form describing in detail the status of the
sanctions imposed under this title, including the personnel and
resources directed towards the imposition of such sanctions
during the preceding fiscal year, and providing background
information with respect to newly-identified significant
foreign narcotics traffickers and their activities.
(2) Such classified report shall describe actions the
President intends to undertake or has undertaken with respect
to such significant foreign narcotics traffickers.
(3) The report required under this subsection is in
addition to the President's obligations to keep the
intelligence committees of Congress fully and currently
informed pursuant to the provisions of the National Security
Act of 1947.
(e) Exclusion of Certain Information.--
(1) Intelligence.--Notwithstanding any other
provision of this section, the reports described in
subsections (b) and (d) shall not disclose the identity
of any person, if the Director of Central Intelligence
determines that such disclosure could compromise an
intelligence operation, activity, source, or method of
the United States.
(2) Law enforcement.--Notwithstanding any other
provision of this section, the reports described in
subsections (b) and (d) shall not disclose the name of
any person if the Attorney General, in coordination as
appropriate with the Director of the Federal Bureau of
Investigation, the Administrator of the Drug Enforcement
Administration, and the Secretary of the Treasury,
determines that such disclosure could reasonably be expected to --
(A) compromise the identity of a confidential
source, including a State, local, or foreign agency or
authority or any private institution that furnished
information on a confidential basis;
(B) jeopardize the integrity or success of an
ongoing criminal investigation or prosecution;
(C) endanger the life or physical safety of any
person; or
(D) cause substantial harm to physical property.
(f) Notification Required.--(1) Whenever either the
Director of Central Intelligence or the Attorney General makes
a determination under subsection (e), the Director of Central
Intelligence or the Attorney General shall notify the Permanent
Select Committee on Intelligence of the House of
Representatives and the Select Committee on Intelligence of the
Senate, and explain the reasons for such determination.
(2) The notification required under this subsection shall
be submitted to the Permanent Select Committee on Intelligence
of the House of Representatives and the Select Committee on
Intelligence of the Senate not later than July 1, 2000, and on
an annual basis thereafter.
(g) Determinations Not To Apply Sanctions.--(1) The
President may waive the application to a significant foreign
narcotics trafficker of any sanction authorized by this title
if the President determines that the application of sanctions
under this title would significantly harm the national security
of the United States.
(2) When the President determines not to apply sanctions
that are authorized by this title to any significant foreign
narcotics trafficker, the President shall notify the Permanent
Select Committee on Intelligence, and the Committees on the
Judiciary, International Relations, Armed Services, and Ways
and Means of the House of Representatives, and the Select
Committee on Intelligence, and the Committees on the Judiciary,
Foreign Relations, Armed Services, and Finance of the Senate
not later than 21 days after making such determination.
(h) Changes in Determinations To Impose Sanctions.--
(1) Additional determinations.--(A) If at any time
after the report required under subsection (b) the
President finds that a foreign person is a significant
foreign narcotics trafficker and such foreign person
has not been publicly identified in a report required
under subsection (b), the President shall submit an
additional public report containing the information
described in subsection (b) with respect to such
foreign person to the Permanent Select Committee on
Intelligence, and the Committees on the Judiciary,
International Relations, Armed Services, and Ways and
Means of the House of Representatives, and the Select
Committee on Intelligence, and the Committees on the
Judiciary, Foreign Relations, Armed Services, and
Finance of the Senate.
(B) The President may apply sanctions authorized
under this title to the significant foreign narcotics
trafficker identified in the report submitted under
subparagraph (A) as if the trafficker were originally
included in the report submitted pursuant to subsection
(b) of this section.
(C) The President shall notify the Secretary of the
Treasury of any determination made under this
paragraph.
(2) Revocation of determination.--(A) Whenever the
President finds that a foreign person that has been
publicly identified as a significant foreign narcotics
trafficker in the report required under subsection (b)
or this subsection no longer engages in those
activities for which sanctions under this title may be
applied, the President shall issue public notice of
such a finding.
(B) Not later than the date of the public notice
issued pursuant to subparagraph (A), the President
shall notify, in writing and in classified or
unclassified form, the Permanent Select Committee on
Intelligence, and the Committees on the Judiciary,
International Relations, Armed Services, and Ways and
Means of the House of Representatives, and the Select
Committee on Intelligence, and the Committees on the
Judiciary, Foreign Relations, Armed Services, and
Finance of the Senate of actions taken under this
paragraph and a description of the basis for such
actions.
SEC. 805. BLOCKING ASSETS AND PROHIBITING TRANSACTIONS.
(a) Applicability of Sanctions.--A significant foreign
narcotics trafficker publicly identified in the report required
under subsection (b) or (h)(1) of section 804 and foreign
persons designated by the Secretary of the Treasury pursuant to
subsection (b) of this section shall be subject to any and all
sanctions as authorized by this title. The application of
sanctions on any foreign person pursuant to subsection (b) or
(h)(1) of section 804 or subsection (b) of this section shall
remain in effect until revoked pursuant to section 804(h)(2) or
subsection (e)(1)(A) of this section or waived pursuant to
section 804(g)(1).
(b) Blocking of Assets.--Except to the extent provided in
regulations, orders, instructions, licenses, or directives
issued pursuant to this title, and notwithstanding any contract
entered into or any license or permit granted prior to the date
on which the President submits the report required under
subsection (b) or (h)(1) of section 804, there are blocked as
of such date, and any date thereafter, all such property and
interests in property within the United States, or within the
possession or control of any United States person, which are
owned or controlled by--
(1) any significant foreign narcotics trafficker
publicly identified by the President in the report
required under subsection (b) or (h)(1) of section 804;
(2) any foreign person that the Secretary of the
Treasury, in consultation with the Attorney General,
the Director of Central Intelligence, the Director of
the Federal Bureau of Investigation, the Administrator
of the Drug Enforcement Administration, the Secretary
of Defense, and the Secretary of State, designates as
materially assisting in, or providing financial or
technological support for or to, or providing goods or
services in support of, the international narcotics
trafficking activities of a significant foreign
narcotics trafficker so identified in the report
required under subsection (b) or (h)(1) of section 804,
or foreign persons designated by the Secretary of the
Treasury pursuant to this subsection;
(3) any foreign person that the Secretary of the
Treasury, in consultation with the Attorney General,
the Director of Central Intelligence, the Director of
the Federal Bureau of Investigation, the Administrator
of the Drug Enforcement Administration, the Secretary
of Defense, and the Secretary of State, designates as
owned, controlled, or directed by, or acting for or on
behalf of, a significant foreign narcotics trafficker
so identified in the report required under subsection
(b) or (h)(1) of section 804, or foreign persons
designated by the Secretary of the Treasury pursuant to
this subsection; and
(4) any foreign person that the Secretary of the
Treasury, in consultation with the Attorney General,
the Director of Central Intelligence, the Director of
the Federal Bureau of Investigation, the Administrator
of the Drug Enforcement Administration, the Secretary
of Defense, and the Secretary of State, designates as
playing a significant role in international narcotics
trafficking.
(c) Prohibited Transactions.--Except to the extent provided
in regulations, orders, instructions, licenses, or directives
issued pursuant to this title, and notwithstanding any contract
entered into or any license or permit granted prior to the date
on which the President submits the report required under
subsection (b) or (h)(1) of section 804, the following
transactions are prohibited:
(1) Any transaction or dealing by a United States
person, or within the United States, in property or
interests in property of any significant foreign
narcotics trafficker so identified in the report
required pursuant to subsection (b) or (h)(1) of
section 804, and foreign persons designated by the
Secretary of the Treasury pursuant to subsection (b) of
this section.
(2) Any transaction or dealing by a United States
person, or within the United States, that evades or
avoids, or has the effect of evading or avoiding, and
any endeavor, attempt, or conspiracy to violate, any of
the prohibitions contained in this title.
(d) Law Enforcement and Intelligence Activities Not
Affected.--Nothing in this title prohibits or otherwise limits
the authorized law enforcement or intelligence activities of
the United States, or the law enforcement activities of any
State or subdivision thereof.
(e) Implementation.--(1) The Secretary of the Treasury, in
consultation with the Attorney General, the Director of Central
Intelligence, the Director of the Federal Bureau of
Investigation, the Administrator of the Drug Enforcement
Administration, the Secretary of Defense, and the Secretary of
State, is authorized to take such actions as may be necessary
to carry out this title, including--
(A) making those designations authorized by
paragraphs (2), (3), and (4) of subsection (b) of this
section and revocation thereof;
(B) promulgating rules and regulations permitted
under this title; and
(C) employing all powers conferred on the Secretary
of the Treasury under this title.
(2) Each agency of the United States shall take all
appropriate measures within its authority to carry out the
provisions of this title.
(3) Section 552(a)(3) of title 5, United States Code, shall
not apply to any record or information obtained or created in
the implementation of this title.
(f) Judicial Review.--The determinations, identifications,
findings, and designations made pursuant to section 804 and
subsection (b) of this section shall not be subject to judicial
review.
SEC. 806. AUTHORITIES.
(a) In General.--To carry out the purposes of this title,
the Secretary of the Treasury may, under such regulations as he
may prescribe, by means of instructions, licenses, or
otherwise--
(1) investigate, regulate, or prohibit--
(A) any transactions in foreign exchange,
currency, or securities; and
(B) transfers of credit or payments
between, by, through, or to any banking
institution, to the extent that such transfers
or payments involve any interests of any
foreign country or a national thereof; and
(2) investigate, block during the pendency of an
investigation, regulate, direct and compel, nullify,
void, prevent, or prohibit any acquisition, holding,
withholding, use, transfer, withdrawal, transportation,
placement into foreign or domestic commerce of, or
dealing in, or exercising any right, power, or
privilege with respect to, or transactions involving,
any property in which any foreign country or a national
thereof has any interest,
by any person, or with respect to any property, subject to the
jurisdiction of the United States.
(b) Recordkeeping.--Pursuant to subsection (a), the
Secretary of the Treasury may require recordkeeping, reporting,
and production of documents to carry out the purposes of this
title.
(c) Defenses.--
(1) Full and actual compliance with any regulation,
order, license, instruction, or direction issued under
this title shall be a defense in any proceeding
alleging a violation of any of the provisions of this
title.
(2) No person shall be held liable in any court for
or with respect to anything done or omitted in good
faith in connection with the administration of, or
pursuant to, and in reliance on this title, or any
regulation, instruction, or direction issued under this
title.
(d) Rulemaking.--The Secretary of the Treasury may issue
such other regulations or orders, including regulations
prescribing recordkeeping, reporting, and production of
documents, definitions, licenses, instructions, or directions,
as may be necessary for the exercise of the authorities granted
by this title.
SEC. 807. ENFORCEMENT.
(a) Criminal Penalties.--(1) Whoever willfully violates the
provisions of this title, or any license rule, or regulation
issued pursuant to this title, or willfully neglects or refuses
to comply with any order of the President issued under this
title shall be--
(A) imprisoned for not more than 10 years,
(B) fined in the amount provided in title 18,
United States Code, or, in the case of an entity, fined
not more than $10,000,000,
or both.
(2) Any officer, director, or agent of any entity who
knowingly participates in a violation of the provisions of this
title shall be imprisoned for not more than 30 years, fined not
more than $5,000,000, or both.
(b) Civil Penalties.--A civil penalty not to exceed
$1,000,000 may be imposed by the Secretary of the Treasury on
any person who violates any license, order, rule, or regulation
issued in compliance with the provisions of this title.
(c) Judicial Review of Civil Penalty.--Any penalty imposed
under subsection (b) shall be subject to judicial review only
to the extent provided in section 702 of title 5, United States
Code.
SEC. 808. DEFINITIONS.
As used in this title:
(1) Entity.--The term ``entity'' means a
partnership, joint venture, association, corporation,
organization, network, group, or subgroup, or any form
of business collaboration.
(2) Foreign person.--The term ``foreign person''
means any citizen or national of a foreign state or any
entity not organized under the laws of the United
States, but does not include a foreign state.
(3) Narcotics trafficking.--The term ``narcotics
trafficking'' means any illicit activity to cultivate,
produce, manufacture, distribute, sell, finance, or
transport narcotic drugs, controlled substances, or
listed chemicals, or otherwise endeavor or attempt to
do so, or to assist, abet, conspire, or collude with
others to do so.
(4) Narcotic drug; controlled substance; listed
chemical.--The terms ``narcotic drug'', ``controlled
substance'', and ``listed chemical'' have the meanings
given those terms in section 102 of the Controlled
Substances Act (21 U.S.C. 802).
(5) Person.--The term ``person'' means an
individual or entity.
(6) United states person.--The term ``United States
person'' means any United States citizen or national,
permanent resident alien, an entity organized under the
laws of the United States (including its foreign
branches), or any person within the United States.
(7) Significant foreign narcotics trafficker.--The
term ``significant foreign narcotics trafficker'' means
any foreign person that plays a significant role in
international narcotics trafficking, that the President
has determined to be appropriate for sanctions pursuant
to this title, and that the President has publicly
identified in the report required under subsection (b)
or (h)(1) of section 804.
SEC. 809. EXCLUSION OF PERSONS WHO HAVE BENEFITED FROM ILLICIT
ACTIVITIES OF DRUG TRAFFICKERS.
Section 212(a)(2)(C) of the Immigration and Nationality Act
(8 U.S.C. 1182(a)(2)(C)) is amended to read as follows:
``(C) Controlled substance traffickers.--
Any alien who the consular officer or the
Attorney General knows or has reason to
believe--
``(i) is or has been an illicit
trafficker in any controlled substance
or in any listed chemical (as defined
in section 102 of the Controlled
Substances Act (21 U.S.C. 802)), or is
or has been a knowing aider, abettor,
assister, conspirator, or colluder with
others in the illicit trafficking in
any such controlled or listed substance
or chemical, or endeavored to do so; or
``(ii) is the spouse, son, or
daughter of an alien inadmissible under
clause (i), has, within the previous 5
years, obtained any financial or other
benefit from the illicit activity of
that alien, and knew or reasonably
should have known that the financial or
other benefit was the product of such
illicit activity,
is inadmissible.''.
SEC. 810. JUDICIAL REVIEW COMMISSION ON FOREIGN ASSET CONTROL.
(a) Establishment.--There is established a commission to be
known as the ``Judicial Review Commission on Foreign Asset
Control'' (in this section referred to as the ``Commission'').
(b) Membership and Procedural Matters.--(1) The Commission
shall be composed of five members, as follows:
(A) One member shall be appointed by the Chairman
of the Select Committee on Intelligence of the Senate.
(B) One member shall be appointed by the Vice
Chairman of the Select Committee on Intelligence of the
Senate.
(C) One member shall be appointed by the Chairman
of the Permanent Select Committee on Intelligence of
the House of Representatives.
(D) One member shall be appointed by the Ranking
Minority Member of the Permanent Select Committee on
Intelligence of the House of Representatives.
(E) One member shall be appointed jointly by the
members appointed under subparagraphs (A) through (D).
(2) Each member of the Commission shall, for purposes of
the activities of the Commission under this section, possess or
obtain an appropriate security clearance in accordance with
applicable laws and regulations regarding the handling of
classified information.
(3) The members of the Commission shall choose the chairman
of the Commission from among the members of the Commission.
(4) The members of the Commission shall establish rules
governing the procedures and proceedings of the Commission.
(c) Duties.--The Commission shall have as its duties the
following:
(1) To conduct a review of the current judicial,
regulatory, and administrative authorities relating to
the blocking of assets of foreign persons by the United
States Government.
(2) To conduct a detailed examination and
evaluation of the remedies available to United States
persons affected by the blocking of assets of foreign
persons by the United States Government.
(d) Powers.--(1) The Commission may hold such hearings, sit
and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable to
carry out the purposes of this section.
(2) The Commission may secure directly from any executive
department, agency, bureau, board, commission, office,
independent establishment, or instrumentality of the Government
information, suggestions, estimates, and statistics for the
purposes of this section. Each such department, agency, bureau,
board, commission, office, establishment, or instrumentality
shall, to the extent authorized by law, furnish such
information, suggestions, estimates, and statistics directly to
the Commission, upon request of the chairman of the Commission.
The Commission shall handle and protect all classified
information provided to it under this section in accordance
with applicable statutes and regulations.
(3) The Attorney General and the Secretary of the Treasury
shall provide to the Commission, on a nonreimbursable basis,
such administrative services, funds, facilities, and other
support services as are necessary for the performance of the
Commission's duties under this section.
(4) The Commission shall receive the full and timely
cooperation of any official, department, or agency of the
United States Government whose assistance is necessary for the
fulfillment of the duties of the Commission under this section,
including the provision of full and current briefings and
analyses.
(5) No department or agency of the Government may withhold
information from the Commission on the grounds that providing
the information to the Commission would constitute the
unauthorized disclosure of classified information or
information relating to intelligence sources or methods.
(6) The Commission may use the United States mails in the
same manner and under the same conditions as the departments
and agencies of the United States.
(e) Staff.--(1) Subject to paragraph (2), the chairman of
the Commission, in accordance with rules agreed upon by the
Commission, shall appoint and fix the compensation of a staff
director and such other personnel as may be necessary to enable
the Commission to carry out its duties, without regard to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and without regard to
the provisions of chapter 51 and subchapter III or chapter 53
of such title relating to classification and General Schedule
pay rates, except that no rate of pay fixed under this
subsection may exceed the equivalent of that payable to a
person occupying a position at level V of the Executive
Schedule under section 5316 of such title.
(2)(A) Any employee of a department or agency referred to
in subparagraph (B) may be detailed to the Commission without
reimbursement from the Commission, and such detailee shall
retain the rights, status, and privileges of his or her regular
employment without interruption.
(B) The departments and agencies referred to in this
subparagraph are as follows:
(i) The Department of Justice.
(ii) The Department of the Treasury.
(iii) The Central Intelligence Agency.
(3) All staff of the Commission shall possess a security
clearance in accordance with applicable laws and regulations
concerning the handling of classified information.
(f) Compensation and Travel Expenses.--(1)(A) Except as
provided in subparagraph (B), each member of the Commission may
be compensated at not to exceed the daily equivalent of the
annual rate of basic pay in effect for a position at level IV
of the Executive Schedule under section 5315 of title 5, United
States Code, for each day during which that member is engaged
in the actual performance of the duties of the Commission under
this section.
(B) Members of the Commission who are officers or employees
of the United States shall receive no additional pay by reason
of their service on the Commission.
(2) While away from their homes or regular places of
business in the performance of services for the Commission,
members of the Commission may be allowed travel expenses,
including per diem in lieu of subsistence, in the same manner
as persons employed intermittently in the Government service
are allowed expenses under section 5703(b) of title 5, United
States Code.
(g) Report.--(1) Not later than one year after the date of
the enactment of this Act, the Commissions shall submit to the
committees of Congress referred to in paragraph (4) a report on
the activities of the Commission under this section, including
the findings, conclusions, and recommendations, if any, of the
Commission as a result of the review under subsection (c)(1)
and the examination and evaluation under subsection (c)(2).
(2) The report under paragraph (1) shall include any
additional or dissenting views of a member of the Commission
upon the request of the member.
(3) The report under paragraph (1) shall be submitted in
unclassified form, but may include a classified annex.
(4) The committees of Congress referred to in this
paragraph are the following:
(A) The Select Committee on Intelligence and the
Committees on Foreign Relations and the Judiciary of
the Senate.
(B) The Permanent Select Committee on Intelligence
and the Committees on International Relations and the
Judiciary of the House of Representatives.
(h) Termination.--The Commission shall terminate at the end
of the 60-day period beginning on the date on which the report
required by subsection (g) is submitted to the committees of
Congress referred to in that subsection.
(i) Inapplicability of Certain Administrative Provisions.--
(1) The provisions of the Federal Advisory Committee Act
(5.S.C. App.) shall not apply to the activities of the
Commission under this section.
(2) The provisions of section 552 of title 5, United States
Code (commonly referred to as the Freedom of Information Act),
shall not apply to the activities, records, and proceedings of
the Commission under this title.
(j) Funding.--The Attorney General shall, from amounts
authorized to be appropriated to the Attorney General by this
Act, make available to the Commission $1,000,000 for purposes
of the activities of the Commission under this section. Amounts
made available to the Commission under the preceding sentence
shall remain available until expended.
SEC. 811. EFFECTIVE DATE.
This title shall take effect on the date of the enactment
of this Act.
And the Senate agree to the same.
From the Permanent Select Committee on
Intelligence, for consideration of the Senate
amendment, and the House bill, and
modifications committed to conference:
Porter Goss,
Jerry Lewis,
Bill McCollum,
Michael N. Castle,
Sherwood Boehlert,
Charles F. Bass,
Jim Gibbons,
Ray LaHood,
Heather Wilson,
Julian C. Dixon,
Nancy Pelosi,
Sanford Bishop, Jr.,
Norman Sisisky,
Gary Condit.
From the Committee on Armed Services, for
consideration of defense tactical intelligence
and related activities:
Floyd Spence,
Bob Stump,
Robert E. Andrews,
Managers on the Part of the House.
From the Select Committee on Intelligence:
Richard Shelby,
Bob Kerrey,
Richard G. Lugar,
Mike DeWine,
Jon Kyl,
Jim Inhofe,
Orrin Hatch,
Pat Roberts,
Wayne Allard,
Richard H. Bryan,
Bob Graham,
John F. Kerry,
Max Baucus,
Chuck Robb,
Frank R. Lautenberg.
From the Committee on Armed Services:
John Warner,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the Senate and the House at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to the bill (H.R. 1555) to
authorize appropriations for fiscal year 2000 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
Senate and the House 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.
The managers agree that the congressionally directed
actions described in the respective committee reports or
classified annexes should be undertaken to the extent that such
congressionally directed actions are not amended, altered, or
otherwise specifically addressed in either this Joint
Explanatory Statement or in the classified annex to the
conference report on the bill H.R. 1555.
Title I--Intelligence Activities
sec. 101. authorization of 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
2000. Section 101 is identical to section 101 of the House bill
and section 101 of the Senate amendment.
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
2000 are contained in a classified Schedule of Authorizations.
The classified 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. Section 102
is similar to section 102 of the House bill and section 102 of
the Senate amendment.
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
2000 to authorize employment of civilian personnel in excess of
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 of Central Intelligence 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 managers 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
managers 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. Section 103 is identical to
section 103 of the House bill and section 103 of the Senate
amendment.
sec. 104. intelligence community management account
Section 104 of the conference report authorizes
appropriations for the Community Management Account for the
Director of Central Intelligence and sets the personnel end-
strength for the Intelligence Community Management Staff for
fiscal year 2000.
Subsection (a) authorizes appropriations of $170,672,000
for fiscal year 2000 for the activities of the Community
Management Account (CMA) of the Director of Central
Intelligence.
The House bill and the Senate amendment were nearly
identical.
The Senate amendment, however, contained a provision
earmarking funds from the CMA for the Information Security
Oversight Office (ISOO). The House bill did not include a
similar provision. The House recedes to the Senate position
with a modification. The managers have agreed to delete the
provision earmarking Community Management funds for the ISOO.
The managers agree that authorizing funds from the CMA for the
ISOO is an inappropriate allocation of intelligence community
funds.
Subsection (b) authorizes 348 full-time personnel for the
Community Management Staff for fiscal year 2000 and provides
that such personnel may be permanent employees of the Staff or
detailed from various elements of the United States Government.
Subsection (c) authorizes additional appropriations and
personnel for the Community Management Account as specified in
the classified Schedule of Authorizations and permits these
additional amounts to remain available through September 30,
2001.
Subsection (d) requires, except as provided in Section
113 of the National Security Act of 1947 or for temporary
situations of less than one year, that personnel from another
element of the United States Government be detailed to an
element of the Community Management Account on a reimbursable
basis.
Subsection (e) authorizes $27,000,000 of the amount
authorized in subsection (a) to be made available for the
National Drug Intelligence Center (NDIC).
Sec. 105. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR
FISCAL YEAR 1999
Section 105 specifically authorizes, for purposes of
section 504 of the National Security Act of 1947, those
intelligence and intelligence-related activities that were
deemed to have been authorized, pursuant to that section,
through the 1999 Emergency Supplemental Appropriations Act
(P.L. 106-31). A provision similar to section 105 was included
in the House bill but was not included in the Senate amendment.
The Senate recedes to the House position. The managers agreed
to include this provision based on the requirements of section
504 of the National Security Act of 1947.
Title II--Central Intelligence Agency Retirement and Disability System
sec. 201. authorization of appropriations
Section 201 is identical to section 201 of the House bill
and section 201 of the Senate amendment.
Title III--General Provisions
SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND 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 is identical to section 302 of the House bill
and section 302 of the Senate amendment.
sec. 303. diplomatic intelligence support centers
Section 303 of the conference report limits the
establishment, operation, or maintenance of Diplomatic
Intelligence Support Centers (DISCs) in fiscal year 2000 and
precludes the obligation or expenditure of any funds
appropriated for fiscal year 2000 for any purpose related to
DISCs, without the prior approval of the Director of Central
Intelligence (DCI).
The managers direct that prior to any NFIP funds being
spent to establish a DISC, the DCI must, within three days of
his approval of the establishment of a DISC, advise the
congressional intelligence committees of his determination that
the approved DISC is required to provide necessary intelligence
support in furtherance of the national security interests of
the United States.
Neither the House bill nor the Senate amendment contained
a similar provision. Prior to the meeting of conferees,
however, the managers learned of efforts by the Department of
State to establish a DISC and found the concept unwise. The
managers are not convinced that the DISC model is an
appropriate means for providing intelligence support to
diplomatic missions. This is specifically so where there is
already ample intelligence support at the disposal of the chief
of a diplomatic mission. Notwithstanding this provision
limiting the establishment, operation, or maintenance of DISCs,
the managers strongly believe that intelligence support to
diplomatic missions is one of the very highest intelligence
priorities.
Nothing in this provision precludes the Department of
State from deploying Bureau of Intelligence and Research
analysts to any location where the Secretary of State
determines there is a need for such support. Likewise, this
provision does not inhibit the Director of Central Intelligence
from deciding the appropriate level of, or the manner in which,
intelligence support to U.S. diplomatic missions shall be
accomplished. The managers have specifically identified in the
classified annex to this conference report the type of
intelligence support that is unaffected by this provision.
sec. 304. protection of identity of retired covert agents
The House bill contained a similar provision. The Senate
amendment did not. The Senate recedes to the House with a
modification replacing the mandatory minimum sentencing
provision in the House bill with a provision specifying that
terms of imprisonment imposed under the section shall be served
consecutively to any other sentence of imprisonment.
Sec. 305. access to computers and computer data of executive branch
employees with access to classified information
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position.
sec. 306. naturalization of certain persons affiliated with a communist
or similar party
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position.
sec. 307. technical amendment
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position.
Sec. 308. declassification review of intelligence estimate on vietnam-
era prisoners of war and missing in action personnel and critical
assessment of estimate
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position.
sec. 309. report on legal standards applied for electronic surveillance
The House bill and Senate amendment contained similar
provisions. The Senate recedes to the House provision with a
modification.
sec. 310. report on effects of foreign espionage on the united states
The House bill contained a similar provision. The Senate
amendment did not. The Senate recedes to the House position.
sec. 311. report on activities of the central intelligence agency in
chile
Section 311 requires the Director of Central Intelligence
to submit a report to the appropriate committees of Congress no
later than nine months after this Act is enacted describing all
activities of officers, covert agents, and employees of all
elements in the intelligence community with respect to the
assassination of President Salvador Allende in September 1973;
the accession of General Augusto Pinochet to the Presidency of
the Republic of Chile; and, violations of human rights
committed by officers or agents of former President Pinochet.
The conferees note that the National Security Council on
February 1, 1999, directed the Departments of State, Justice,
and Defense; the Central Intelligence Agency; and the National
Archives to compile and review for public release all documents
that shed light on human rights abuses, terrorism, and other
acts of political violence during and prior to the Pinochet era
in Chile. In addition, the conferees note that the Department
of Justice is conducting a search for documents pertaining to
the requests of the Spanish court investigating the abuses of
the Pinochet regime. The managers expect the appropriate
committees of Congress, as set forth in this section, to be
given access to the documents responsive to these two searches,
whether classified or publicly released.
Section 311 is similar to Section 306(a) of the House
bill but provides additional time for the submission of the
report.
sec. 312. report on kosova liberation army
The House bill contained a similar provision. The Senate
amendment did not. The Senate recedes to the House position.
sec. 313. reaffirmation of longstanding prohibition against drug
trafficking by employees of the intelligence community
The House bill contained a similar provision. The Senate
amendment did not. The Senate recedes to the House position
with a modification upon the insistence of the Senate.
sec. 314. sense of congress on classification and declassification
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position.
sec. 315. sense of congress on intelligence community contracting
The House bill contained a similar provision. The Senate
amendment did not. The Senate recedes to the House position.
Title IV--Central Intelligence Agency
sec. 401. improvement and extension of central services program
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position,
with a modification.
sec. 402. extension of cia voluntary separation pay act
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position,
upon the insistence of the Senate.
Title V--Department of Defense Intelligence Activities
sec. 501. protection of operational files of the national imagery and
mapping agency
The House bill contained a similar provision. The Senate
amendment did not. The Senate recedes to the House position,
with a modification making this amendment to title 50, United
States Code, rather than in title 10, United States Code.
sec. 502. funding for infrastructure and quality of life improvements
at menwith hill and bad aibling stations
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position.
Title VI--Foreign Counterintelligence and International Terrorism
Investigations
sec. 601. expansion of definition of ``agent of a foreign power'' for
purposes of the foreign intelligence surveillance act of 1978
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position.
sec. 602. federal bureau of investigation reports to other executive
agencies on results of counterintelligence activities
The Senate amendment contained a similar provision. The
House bill did not. The House recedes to the Senate position.
Title VII--National Commission for the Review of the National
Reconnaissance Office
sec. 701. findings
Neither the House bill nor the Senate amendment contained
a similar provision. Prior to the meeting of conferees,
however, the managers determined that an independent review of
the National Reconnaissance Office (NRO) must be conducted to
ensure that the National Reconnaissance Office (NRO) must be
conducted to ensure that the Intelligence Community will
acquire the most efficient, technologically capable, and
economical satellite collection systems, and that the national
policymakers and military leaders receive the intelligence they
require to keep our nation secure. Therefore, the managers have
included a provision creating the Commission for the Review of
the National Reconnaissance Office.
The managers agreed that the functions and missions
carried out by the NRO are essential to the provision of timely
intelligence to policymakers and military leaders. However, the
changing threat environment and emerging technologies have
altered both what information satellites can collect and how
they collect it. Additionally, Congress wants to ensure that
future generations of intelligence collection satellites both
perform to their requirements and are purchased at a fair cost
to the taxpayer.
sec. 702. national commission for the review of the national
reconnaissance office
The Commission will have eleven members. The Majority
Leader of the Senate and the Speaker of the House, in
consultation with the Chairman of the Senate Select Committee
on Intelligence and the House Permanent Select Committee on
Intelligence, will each appoint one commission member from
their respective Chamber and two from private life. The
Minority Leaders of the Senate and House, in consultation with
the Vice Chairman of the Senate Select Committee on
Intelligence and the ranking member of the House Permanent
Select Committee on Intelligence, will each appoint one
commission member from their respective Chamber and one from
private life. Additionally, the Deputy Director of Central
Intelligence for Community Management will be a voting member
of the Commission and the Director of the National
Reconnaissance Office will be an ex officio, i.e., non-voting,
member of the Commission.
The managers have included requirements that individuals
appointed to the Commission will have experience and expertise
in technical intelligence collection systems and methods;
research and development programs; acquisition management; use
of intelligence information by national policymakers and
military leaders; and/or the implementation, funding, or
oversight of the national security policies of the United
States.
The Co-Chairs of the Commission will be selected from
among the members of the Commission and agreed upon by the
President, the Majority and Minority Leaders of the Senate, and
the Speaker and Minority Leader of the House.
sec. 703. duties of commission
The Commission is tasked with reviewing the roles and
mission of the NRO; its organizational structure; technical
skills of its employees; its contractor relationships; its use
of commercial imagery; its acquisition of launch vehicles,
launch services, launch infrastructure, and mission assurance;
its acquisition authorities; and the relationship to other
agencies and departments of the Federal Government.
sec. 704. powers of commission
The Commission is authorized to hold hearings, receive
testimony from witnesses, receive information from federal
agencies, and receive assistance from the Director of Central
Intelligence and the Secretary of Defense in order to discharge
its duties under this title.
sec. 705. staff of commission
The Commission is authorized to hire staff, procure
consultant services, and receive assistance from Federal
Government employees detailed to the Commission in order to
discharge its duties under this title.
The managers agree that any member of the Commission is
authorized to designate his or her staff to serve as liaison
staff to the Commission. Liaison staff are required to possess
the requisite security clearances before being given any access
to classified information. Liaison staff shall have the same
access to the information considered by the Commission as staff
directly hired by the Commission.
SEC. 706. COMPENSATION AND TRAVEL EXPENSES
Members of the Commission are authorized to be
compensated and be allowed travel expenses for the performance
of their duties under this title.
SEC. 707. TREATMENT OF INFORMATION RELATING TO NATIONAL SECURITY
The Director of Central Intelligence shall assume
responsibility for the handling and disposition of national
security information received, considered, and used by
Commission.
SEC. 708. FINAL REPORT; TERMINATION
The Commission is to produce a report with
recommendations to the congressional intelligence committees,
the Director of Central Intelligence, and the Secretary of
Defense by November 1, 2000. A copy of this report shall also
be made available to the committees on Armed Services of the
Senate and the House of Representatives.
The managers realize that the nature of the subject
matter involved in a review of the NRO may of necessity require
that Classified report be produced, but believe strongly that
an unclassified report should also be made available to the
public.
SEC. 709. ASSESSMENTS OF FINAL REPORT
The Director of Central Intelligence and the Secretary of
Defense shall each submit to the congressional intelligence
committees as assessment of the report of the Commission within
30 days of receipt of the report. A copy of these assessments
shall also be made available to the Commission on Armed
Services of the Senate and the House of Representatives.
SEC. 710. INAPPLICABILITY OF CERTAIN ADMINISTRATIVE PROVISIONS
The provisions of the Federal Advisory Committee Act and
the Freedom of Information Act shall not apply to the
activities of the Commission.
SEC. 711. FUNDING
The Director of Central Intelligence shall make available
for purposes of the activities of the Commission $5.0 million
from the amounts authorized to be appropriated by this Act for
the National Reconnaissance Office.
SEC. 712. CONGRESSIONAL INTELLIGENCE COMMITTEES DEFINED
The congressional intelligence committees referred to in
this title refer to the Senate Select Committee on Intelligence
and the House Permanent Select Committee on Intelligence.
Title VIII--Blocking Assets of Significant Foreign Narcotics
Traffickers
SEC. 801. SHORT TITLE
This section provides the short title for this title:
``Foreign Narcotics Kingpin Designation Act.''
SEC. 802. FINDINGS AND POLICY
The provisions in title VIII are intended to be global in
scope--not country-specific--and specifically focus on the
major cocaine, heroin, marijuana, amphetamine, and emerging
synthetic narcotics produced and sold by foreign narco-
trafficking organizations. The managers believe that the
enactment of these provisions will encourage U.S. law
enforcement an intelligence agencies to better coordinate their
efforts against the leaders of the world's most dangerous
multinational criminal organizations. This initiative will
assist U.S. Government efforts to identify the assets,
financial networks, and business associates of major narcotics
trafficking groups. If effectively implemented, this strategy
will disrupt these criminal organizations and bankrupt their
leadership.
The provisions in this title are intended to supplement--
not to replace--the United States' policy of annual
certification of countries based on their performance in
combating narcotics trafficking. This title will properly focus
our Government's efforts against the specific individuals most
responsible for trafficking in illegal narcotics by attacking
their sources of income and undermining their efforts to
launder the profits generated by drug-trafficking into
legitimate business activities.
The intention of this legislation is to strengthen the
ability of United States law enforcement effectively to target
international narcotics traffickers attaching the fabric of our
society. The legislation is based on the successful application
of the International Emergency Economic Powers Act (IEEPA)
against Colombian narcotics traffickers. There is no intention
that this legislation affect Americans who are not knowingly
and willfully engaged in international narcotics trafficking.
Nor is it intended in any way to derogate from existing
constitutional and statutory due process protections for those
whose assets are blocked or seized pursuant to law.
sec. 803. purpose
The legal precedent for this title was the successful
application of sanctions in 1995 and 1996 against the Cali
Cartel narco-trafficking organization and its key leaders.
Executive Order 12978, issued by the Clinton Administration in
October 1995, had the effect of dismantling and defunding
numerous business entities conclusively tied to the Cali
Cartel. Relying on the authorities provided within the IEEPA,
President Clinton found that the activities of several
Specially Designated Narcotics Traffickers (SDNTs) constituted
an unusual and extraordinary threat to the United States'
national security, foreign policy, and economy. In a June 1998
publication of the Treasury Department, the SDNT program was
described as follows:
Companies and individuals are identified as SDNTs and
placed on the SDNT list if they are determined, (a) to
play a significant role in international narcotics
trafficking centered in Colombia, (b) to materially
assist in or provide financial or technological support
for, or goods and services in support of, the narcotics
trafficking activities of persons designated in or
pursuant to the executive order, or (c) to be owned or
controlled by, or to act for or on behalf of, persons
designated in or pursuant to Executive Order 12978. The
objectives of the SDNT program are to identify, expose,
isolate and incapacitate the businesses and agents of
the Colombian cartels and to deny them access to the
U.S. financial system and to the benefits of trade and
transactions involving United States businesses and
individuals.
Coordinated law enforcement efforts by the U.S. and
Colombian Governments in support of these sanctions put the
Cali Cartel kingpins out of business. This legislation is
intended to follow up on the success of the Colombian SDNT
precedent by applying similar U.S. Government authorities and
resources against significant foreign narcotics traffickers
around the globe--including, but not limited to, major
narcotics traffickers and trafficking organizations based in
Afghanistan, Bolivia, Burma, Colombia, Dominican Republic,
Laos, Mexico, Pakistan, People's Republic of China, Peru,
Russia, and Thailand.
The bottom line objective of these provisions is to
bankrupt and disrupt the major narcotics trafficking
organizations. The targets of this legislation are not only the
drug kingpins, but those involved in their illicit activities,
such as: money laundering, acquiring chemical precursors to
manufacture narcotics, manufacturing the drugs, transporting
narcotics from the drug source countries to the United States,
and managing the assets of these criminal enterprises.
sec. 804. public identification of significant foreign narcotics
traffickers and required reports
This section requires the Secretary of the Treasury--in
consultation with the Attorney General, the Director of Central
Intelligence, the Secretary of Defense, and the Secretary of
State--to provide the appropriate and necessary information to
enable the President to prepare the congressionally-mandated
classified and unclassified reports on significant foreign
narcotics traffickers. The President then shall make the
determination to formally designate any significant foreign
narcotics traffickers on June 1, 2000 (and not later than June
1st of each year thereafter) as constituting an unusual and
extraordinary threat to the national security, foreign policy
and the economy of the United States. On June 1, 2000 (and not
later than June 1st of each year thereafter), the President
shall submit an unclassified report to the Committees on
Intelligence, International Relations, Judiciary, Armed
Services, and Ways and Means of the House of Representatives,
and the Committees on Intelligence, Foreign Relations,
Judiciary, Armed Services, and Finance of the Senate for
official review. This unclassified report shall: (1) identify
publicly the foreign persons that the President determines are
appropriate for sanctions pursuant to this title; and (b)
detail publicly the President's intent to impose sanctions upon
these significant foreign narcotics traffickers pursuant to
this title. Individuals and entities linked to major narcotics
trafficking groups may be added to or withdrawn from the
kingpins' list by the President at any time during the year.
The managers expect that the President will provide a
classified report on July 1, 2000 (and not later than July 1st
of each year thereafter) to the House Permanent Select
Committee on Intelligence and the Senate Select Committee on
Intelligence detailing the overall status of the program,
including personnel and resources directed towards the program,
and providing background information with respect to newly
identified significant foreign narcotics traffickers and their
activities. The managers intend that the executive branch shall
provide a detailedbriefing after publication of the annual
classified report with respect to its findings.
If the Director of Central Intelligence or the Attorney
General make a determination not to designate a foreign
individual on the Global Kingpins list due to a possible
compromise of intelligence or law enforcement sources and
methods, the legislation requires that they shall notify the
House and Senate Intelligence Committees delineating the basis
of their determination. A formal notification of a
determination not to designate shall be provided to the House
and Senate Intelligence Committees not later than July 1, 2000,
and on an annual basis thereafter.
As a general matter, it is contemplated that the Director
of Central Intelligence, the Attorney General, and the
Secretary of the Treasury will determine to exclude the name of
an individual from the Global Kingpins list only: (1) under
circumstances where the mere appearance of the name on the list
could compromise an intelligence source or method; (2) could
reasonably be expected to disclose the identity of a
confidential law enforcement source; (3) would disclose
techniques and procedures for law enforcement prosecutions; (4)
could reasonably be expected to endanger the life or physical
safety of any individual; or (5) where there is an insufficient
basis upon which to rely to support that individual's
inclusion.
A similar version of this legislation, offered in the
House as the ``Drug Kingpins Bankruptcy Act of 1999,''
established a precedent for the future content and scope of the
Global Kingpins list, by specifically identifying the first
group of twelve of the world's most significant narco-
traffickers from Burma, the Caribbean Region, Colombia, Mexico
and Thailand. The first proposed Global Kingpins/SDNT list was
developed in consultation with the Drug Enforcement
Administration, the Federal Bureau of Investigation, the State
Department, the Treasury Department, and the Central
Intelligence Agency's Crime and Narcotics Center.
The managers also believe that the annual unclassified
and classified reports to the Congress will serve as vital
oversight tools by providing additional data for the annual
drug certification process. The certification process requires
the President to certify on March 1st of each year the level of
cooperation that the United States Government is receiving from
major drug producing and major transit nations. The action or
lack of action by both the Administration and these nations on
the ``majors list'' with respect to the drug kingpins will
become a significant annual indicator of counterdrug
cooperation.
The managers note that the Colombian Kingpins/SDNT
initiative under Executive Order 12978 in October 1995 was
prepared within 6 months and was based upon information already
collected on these kingpins and their operations. The managers
recognize that the implementation of the Global Kingpins list
will require significant additional resources and personnel
from the intelligence and law enforcement communities. The
managers urge that the Administration provide significant
additional funding in the FY2001 Budget for the Treasury
Department's Office of Foreign Assets Control (OFAC) to fully
implement the Global Kingpins program in 2000 on a worldwide
basis. As an interim measure, the managers recommend that the
Treasury Department's Office of Foreign Assets Control receive
analytical assistance and technical support from the Treasury
Department's Office of Intelligence Support, the Justice
Department's National Drug Intelligence Center, and the CIA's
Crime and Narcotics Center.
sec. 805. blocking assets and prohibiting transactions
The effect of this provision will be to block all
property and interests in property within the United States
that are under the direct or indirect ownership or control of
significant foreign narcotics traffickers. Second, it will
block all assets of any foreign persons who materially assist,
provide financial or technical support, or offer goods and
services to such significant foreign narcotics traffickers.
Third, it will block the assets of any foreign persons, who are
determined by the United States Government as controlled by or
acting on behalf of significant foreign narcotics traffickers.
Fourth, it will block the assets of any foreign persons that
the Secretary of the Treasury--in consultation with the
Director of Central Intelligence, the Director of the Federal
Bureau of Investigation, the Administrator of the Drug
Enforcement Administration, the Secretary of State, and the
Secretary of Defense--designates as playing a significant role
in international narcotics trafficking.
The sanctions that would take effect against the kingpins
designated by the President, and their organizations and
subordinates, would include the following:
(a) All assets of the kingpins and their organizations
and subordinates subject to United States jurisdiction would be
blocked; other law enforcement tools such as seizure and
forfeiture would be available if appropriate.
(b) U.S. individuals and companies would be prohibited
from engaging in unlicensed transactions, including any
commercial or financial dealings, with any of the named
kingpins and their organizations and subordinates.
Following the Colombia IEEPA-SDNT precedent, the
Secretary of the Treasury will have the authority to determine
and list persons and entities deemed to be materially assisting
in, providing financial or technological support for, or
providing goods or services in support of the narcotics
trafficking activities of significant foreign narcotics
traffickers. In order to develop this second-level list of
facilitating persons and entities, the Secretary of the
Treasury will rely on information collected by the U.S.
intelligence and law enforcement communities as well as on
information provided by foreign government intelligence and law
enforcement organizations. This information must pass through a
rigorous interagency review process; the information must be
material, factual and verifiable, and able to withstand
scrutiny in a United States Federal Court. The success of the
Colombia IEEPA-SDNT program has largely been the product of
close U.S. cooperation with Colombian law enforcement and
regulatory agencies. It is expected that global implementation
of the kingpins list will promote closer U.S. cooperation with
foreign law enforcement and regulatory agencies.
As with the Colombia IEEPA-SDNT program, the Secretary of
the Treasury will issue all necessary administrative
regulations and specifications to implement the Kingpins
program on a global basis. Notification of United States
persons and entities linked to significant foreign narcotics
traffickers will also follow the precedents established under
the Colombia IEEPA-SDNT program. Due to threats made against
the U.S. officials responsible for implementation of the
Colombia SDNT program, records and information obtained or
created in the preparation of the Global Kingpins/SDNT list as
well as the specific details on the implementation of sanctions
against significant foreign narcotics traffickers would be
exempted from the Freedom of Information Act.
All SDNT programs require that such designations pass an
``arbitrary and capricious'' test; and all designations are
based upon a non-criminal standard of ``reasonable cause to
believe'' that the party is owned or controlled by, or acts, or
purports to act, for or on behalf of the sanctioned non-state
party. Furthermore, the Colombia IEEPA-SDNT executive order
uses an additional designation basis for foreign firms or
individuals that ``materially * * * assist in or provide
financial or technological support for or goods or services in
support of, the narcotics trafficking activities'' of the named
drug kingpins or other, already designated SDNTs.
In implementing the Colombia IEEPA-SDNT program, OFAC
analysts identify and research foreign targets that can be
linked by evidence to individuals or entities already
designated pursuant to E.O. 12978. To establish sufficient
linkage, OFAC initially relied upon a significant body of
documentary evidence through criminal law enforcement raids and
seizures. The President's involvement was required in the
designation of the original four Cali cartel kingpins named in
the annex to E.O. 12978. Additional kingpin listings in
Colombia have been developed through close coordination between
OFAC and the Department of Justice, and the preponderance of
Colombian SDNTs have been designated as a product of OFAC's
research and collection efforts.
In the Colombia IEEPA-SDNT program, OFAC has reached
designation determinations only after extensive reviews of the
evidence internally and with the Department of Justice. E.O.
12978 has required that the State and Justice Departments be
consulted by the Treasury prior to a designation. As noted
above, Justice is deeply involved in examining the sufficiency
of the evidence that occurs before any parties are added to the
list.
OFAC regulations provide for post-designation review and
remedies. The usual forum for considering removal of a
designation (such as a change in circumstances or behavior) is
one in which the named person or entity petitions OFAC for
removal. Most petitioners initiate the review process simply by
writing OFAC. Exchanges of correspondence, additional fact-
finding and meetings occur before OFAC decides whether there is
a basis for removal. Although a number of persons have been
removed through this means, only a very few persons or entities
on the SDNT and other SDNT lists have ever petitioned for
removal. Federal courts have held that no pre-deprivation
hearing is required in blocking of assets because of the
Executive Branch's plenary authority to act in the area of
foreign policy and the obvious need to take immediate action
upon designation to avoid dissipation of affected assets.
sec. 806. authorities
This section generally restates the applicable provisions
of the International Economic Emergency Powers Act.
sec. 807. enforcement
This section generally restates the applicable provisions
of the Trading with the Enemy Act.
sec. 808. definitions
This section defines specific terms used in this title.
sec. 809. exclusion of persons who have benefited from illicit
activities of drug traffickers
This section restates the applicable provisions of the
Immigration and Nationality Act of 1952 as amended in 8 U.S.C.
1182(a)(2)(c). Designation on this list will result in the
denial of visas and inadmissibility of specially designated
narcotics traffickers, their immediate families, and their
business associates.
sec. 810. judicial review commission on foreign asset control
This section creates a commission to review the current
judicial, regulatory, and administrative authorities under
which the United States government blocks assets of foreign
persons and to provide a detailed constitutional examination
and evaluation of remedies available to United States persons
affected by the blocking of assets of foreign persons. The
commission is required to report back to Congress no later than
one year after the date of enactment of this act on its
findings, conclusions, and recommendations, if any, on the
matters under their review. The managers believe that the
public interest can best be served if the commission can reach
consensus on its conclusions. The managers acknowledge,
however, that consensus may not be able to be reached on the
significant issues on which the commission will deliberate. To
that end, therefore, the managers have provided that the report
to be submitted to Congress at the end of the commission's
review period shall include all additional or dissenting views,
if any.
Four of the commission members are to be appointed by the
Chairmen and Ranking Democrats of the congressional
intelligence committees. The fifth member of the Commission
shall be appointed by the four members of the commission
appointed by the intelligence committee Chairmen and Ranking
Democrats. The commission shall also be provided the
cooperation and assistance that it requests from any agency in
the federal government.
The managers are determined to ensure that the judicial,
regulatory, and administrative remedies and procedures
available to U.S. persons affected by the blocking of assets of
foreign persons pass constitutional muster. As expected, the
managers concern centers on the fundamental question of due
process and whether that principle is affirmed and sustained in
the execution of this legislation. The managers expect the
members of the Commission to examine and report on at least the
following constitutional and other issues:
(1) whether reasonable protections of innocent U.S.
businesses are available under the regime currently in
place that is utilized to carry out the provisions of
the International Emergency Economic Powers Act
(``IEEPA'');
(2) whether advance notice prior to blocking of
one's assets is required as a matter of constitutional
due process;
(3) whether there are reasonable opportunities
under the current IEEPA regulatory regime and the
Administrative Procedures Act for an erroneous blocking
of assets or mistaken listing under IEEPA to be
remedied;
(4) whether the level of proof that is required
under the current judicial, regulatory, or
administrative scheme is adequate to protect legitimate
business interests from irreparable financial harm;
(5) whether there is constitutionally adequate
accessibility to the courts to challenge agency actions
under IEEPA, or the designation of persons or entities
under IEEPA;
(6) whether there are remedial measures and
legislative amendments that should be enacted to
improve the current asset blocking scheme under IEEPA
or this title; and
(7) whether the resources made available for the
Office of Foreign Assets Control (``OFAC'') at the
Department of Treasury in the fiscal year 2001 budget
submission are adequate to carry out the provisions of
this title or the other programs currently in effect
under IEEPA.
sec. 811. effective date
This section establishes the effective date for this
title.
From the Permanent Select Committee on
Intelligence, for consideration of the Senate
amendment, and the House bill, and
modifications committed to conference:
Porter Goss,
Jerry Lewis,
Bill McCollum,
Michael N. Castle,
Sherwood Boehlert,
Charles F. Bass,
Jim Gibbons,
Ray LaHood,
Heather Wilson,
Julian C. Dixon,
Nancy Pelosi,
Sanford Bishop, Jr.,
Norman Sisisky,
Gary Condit.
From the Committee on Armed Services, for
consideration of defense tactical intelligence
and related activities:
Floyd Spence,
Bob Stump,
Robert E. Andrews,
Managers on the Part of the House.
From the Select Committee on Intelligence:
Richard Shelby,
Bob Kerrey,
Richard G. Lugar,
Mike DeWine,
Jon Kyl,
Jim Inhofe,
Orrin Hatch,
Pat Roberts,
Wayne Allard,
Richard H. Bryan,
Bob Graham,
John F. Kerry,
Max Baucus,
Chuck Robb,
Frank R. Lautenberg.
From the Committee on Armed Services:
John Warner,
Managers on the Part of the Senate.
