Print[House Report 104-832]
[From the U.S. Government Printing Office]
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-832
_______________________________________________________________________
INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1997
_______
September 24, 1996.--Ordered to be printed
_______________________________________________________________________
Mr. Combest, from the committee of conference, submitted the following
CONFERENCE REPORT
[To accompany H.R. 3259]
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
3259), to authorize appropriations for fiscal year 1997 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 1997''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--INTELLIGENCE ACTIVITIES
Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Community Management Account.
TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM
Sec. 201. Authorization of appropriations.
TITLE III--GENERAL PROVISIONS
Sec. 301. Increase in employee compensation and benefits authorized by
law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Limitation on availability of funds for automatic
declassification of records over 25 years old.
Sec. 304. Application of sanctions laws to intelligence activities.
Sec. 305. Expedited naturalization.
Sec. 306. Sense of Congress on enforcement of requirement to protect the
identities of undercover intelligence officers, agents,
informants, and sources.
Sec. 307. Sense of Congress on intelligence community contracting.
Sec. 308. Restrictions on intelligence sharing with the United Nations.
Sec. 309. Prohibition on using journalists as agents or assets.
Sec. 310. Report on policy of intelligence community regarding the
protection of the national information infrastructure against
attack.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
Sec. 401. Elimination of double surcharge on Central Intelligence Agency
relating to employees who retire or resign in fiscal years
1998 or 1999 and who receive voluntary separation incentive
payments.
Sec. 402. Post-employment restrictions.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
Sec. 501. Executive branch oversight of budgets of elements of the
intelligence community.
TITLE VI--FEDERAL BUREAU OF INVESTIGATION
Sec. 601. Access to telephone records.
TITLE VII--COMBATTING PROLIFERATION
Sec. 701. Short title.
Subtitle A--Assessment of Organization and Structure of Government for
Combatting Proliferation
Sec. 711. Establishment of commission.
Sec. 712. Duties of commission.
Sec. 713. Powers of commission.
Sec. 714. Commission personnel matters.
Sec. 715. Termination of commission.
Sec. 716. Definition.
Sec. 717. Payment of commission expenses.
Subtitle B--Other Matters
Sec. 721. Reports on acquisition of technology relating to weapons of
mass destruction and advanced conventional munitions.
TITLE VIII--RENEWAL AND REFORM OF INTELLIGENCE ACTIVITIES
Sec. 801. Short title.
Sec. 802. Committee on Foreign Intelligence.
Sec. 803. Annual reports on intelligence.
Sec. 804. Transnational threats.
Sec. 805. Overall management of central intelligence.
Sec. 806. National Intelligence Council.
Sec. 807. Enhancement of authority of Director of Central Intelligence
to manage budget, personnel, and activities of intelligence
community.
Sec. 808. Responsibilities of Secretary of Defense pertaining to the
National Foreign Intelligence Program.
Sec. 809. Improvement of intelligence collection.
Sec. 810. Improvement of analysis and production of intelligence.
Sec. 811. Improvement of administration of intelligence activities.
Sec. 812. Pay level of Deputy Director of Central Intelligence for
Community Management and Assistant Directors of Central
Intelligence.
Sec. 813. General Counsel of the Central Intelligence Agency.
Sec. 814. Assistance for law enforcement agencies by intelligence
community.
Sec. 815. Appointment of officials responsible for intelligence-related
activities.
Sec. 816. Study on the future of intelligence collection.
Sec. 817. Intelligence Reserve Corps.
TITLE IX--FINANCIAL MATTERS
Sec. 901. Authorization of funding provided by 1996 supplemental
appropriations Act.
TITLE I--INTELLIGENCE ACTIVITIES
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for fiscal
year 1997 for the conduct of the intelligence and intelligence-
related activities of the following elements of the United
States Government:
(1) The Central Intelligence Agency.
(2) The Department of Defense.
(3) The Defense Intelligence Agency.
(4) The National Security Agency.
(5) The Department of the Army, the Department of
the Navy, and the Department of the Air Force.
(6) The Department of State.
(7) The Department of Treasury.
(8) The Department of Energy.
(9) The Federal Bureau of Investigation.
(10) The Drug Enforcement Administration.
(11) The National Reconnaissance Office.
(12) The 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, 1997, 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. 3259 of the
One Hundred Fourth Congress.
(b) Availability of Classified Schedule of
Authorizations.--The Schedule of Authorizations shall be made
available to the Committees on Appropriations of the Senate and
House of Representatives and to the President. The President
shall provide for suitable distribution of the Schedule, or of
appropriate portions of the Schedule, within the executive
branch.
SEC. 103. PERSONNEL CEILING ADJUSTMENTS.
(a) Authority for Adjustments.--With the approval of the
Director of the Office of Management and Budget, the Director
of Central Intelligence may authorize employment of civilian
personnel in excess of the number authorized for fiscal year
1997 under section 102 when the Director of Central
Intelligence determines that such action is necessary to the
performance of important intelligence functions, except that
the number of personnel employed in excess of the number
authorized under such section may not, for any element of the
intelligence community, exceed two percent of the number of
civilian personnel authorized under such section for such
element.
(b) Notice to Intelligence Committees.--The Director of
Central Intelligence shall promptly notify the Permanent Select
Committee on Intelligence of the House of Representatives and
the Select Committee on Intelligence of the Senate whenever he
exercises the authority granted by this section.
SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.
(a) Authorizations of Appropriations.--There is authorized
to be appropriated for the Community Management Account of the
Director of Central Intelligence for fiscal year 1997 the sum
of $131,116,000. Within such amount, funds identified in the
classified Schedule of Authorizations referred to in section
102(a) for the Advanced Research and Development Committee
shall remain available until September 30, 1998.
(b) Authorized Personnel Levels.--The staff of the
Community Management Account of the Director of Central
Intelligence is authorized 303 full-time personnel as of
September 30, 1997. Such personnel of the Community Management
Staff may be permanent employees of the Community Management
Staff or personnel detailed from other elements of the United
States Government.
(c) Reimbursement.--During fiscal year 1997, any officer or
employee of the United States or member of the Armed Forces who
is detailed to the staff of 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 non-reimbursable basis
for a period of less than one year for the performance of
temporary functions as required by the Director of Central
Intelligence.
(d) National Drug Intelligence Center.--(1) Of the amount
authorized to be appropriated in subsection (a), $27,000,000
shall be available for the National Drug Intelligence Center
located in Johnstown, Pennsylvania.
(2) The Director of Central Intelligence shall transfer to
the Attorney General funds available for the National Drug
Intelligence Center under paragraph (1). The Attorney General
shall utilize funds so transferred for the activities of the
center.
(3) Amounts available for the 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) Notwithstanding any other provision of law, the
Attorney General shall retain full authority over the
operations of the center.
(e) Environmental Programs.--Of the amount authorized to be
appropriated in subsection (a), $18,000,000 shall be available
for the Environmental Intelligence and Applications Program,
formerly known as the Environmental Task Force, and remain
available until September 30, 1998.
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 1997 the sum of $184,200,000.
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. LIMITATION ON AVAILABILITY OF FUNDS FOR AUTOMATIC
DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.
Of the amounts authorized to be appropriated for fiscal
year 1997 by this Act for the National Foreign Intelligence
Program, not more than $27,200,000 shall be available to carry
out the provisions of section 3.4 of Executive Order 12958.
SEC. 304. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.
Section 905 of the National Security Act of 1947 (50 U.S.C.
441d) is amended by striking out ``on the date which is one
year after the date of the enactment of this title'' and
inserting in lieu thereof ``on January 6, 1998''.
SEC. 305. EXPEDITED NATURALIZATION.
(a) In General.--With the approval of the Director of
Central Intelligence, the Attorney General, and the
Commissioner of Immigration and Naturalization, an applicant
described in subsection (b) and otherwise eligible for
naturalization may be naturalized without regard to the
residence and physical presence requirements of section 316(a)
of the Immigration and Nationality Act, or to the prohibitions
of section 313 of such Act, and no residence within a
particular State or district of the Immigration and
Naturalization Service in the United States shall be required.
(b) Eligible Applicant.--An applicant eligible for
naturalization under this section is the spouse or child of a
deceased alien whose death resulted from the intentional and
unauthorized disclosure of classified information regarding the
alien's participation in the conduct of United States
intelligence activities and who--
(1) has resided continuously, after being lawfully
admitted for permanent residence, within the United
States for at least one year prior to naturalization;
and
(2) is not described in subparagraph (A), (B), (C),
or (D) of section 243(h)(2) of such Act.
(c) Administration of Oath.--An applicant for
naturalization under this section may be administered the oath
of allegiance under section 337(a) of the Immigration and
Nationality Act by the Attorney General or any district
court of the United States, without regard to the
residence of the applicant. Proceedings under this subsection
shall be conducted in a manner consistent with the protection
of intelligence sources, methods, and activities.
(d) Definitions.--For purposes of this section--
(1) the term ``child'' means a child as defined in
subparagraphs (A) through (E) of section 101(b)(1) of
the Immigration and Nationality Act, without regard to
age or marital status; and
(2) the term ``spouse'' means the wife or husband
of a deceased alien referred to in subsection (b) who
was married to such alien during the time the alien
participated in the conduct of United States
intelligence activities.
SEC. 306. SENSE OF CONGRESS ON ENFORCEMENT OF REQUIREMENT TO PROTECT
THE IDENTITIES OF UNDERCOVER INTELLIGENCE OFFICERS,
AGENTS, INFORMANTS, AND SOURCES.
It is the sense of Congress that title VI of the National
Security Act of 1947 (50 U.S.C. 421 et seq.) (relating to
protection of the identities of undercover intelligence
officers, agents, informants, and sources) should be enforced
by the appropriate law enforcement agencies.
SEC. 307. 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 the
operational and security concerns related to the conduct of
intelligence activities, and where fiscally sound, should award
contracts in a manner that would maximize the procurement of
products properly designated as having been made in the United
States.
SEC. 308. RESTRICTIONS ON INTELLIGENCE SHARING WITH THE UNITED
NATIONS.
(a) In General.--The National Security Act of 1947 (50
U.S.C. 401 et seq.) is amended by adding at the end of title I
the following new section:
``restrictions on intelligence sharing with the united nations
``Sec. 110. (a) Provision of Intelligence Information to
the United Nations.--(1) No United States intelligence
information may be provided to the United Nations or any
organization affiliated with the United Nations, or to any
officials or employees thereof, unless the President certifies
to the appropriate committees of Congress that the Director of
Central Intelligence, in consultation with the Secretary of
State and the Secretary of Defense, has established and
implemented procedures, and has worked with the United Nations
to ensure implementation of procedures, for protecting from
unauthorized disclosure United States intelligence sources and
methods connected to such information.
``(2) Paragraph (1) may be waived upon written
certification by the President to the appropriate committees of
Congress that providing such information to the United Nations
or an organization affiliated with the United Nations, or to
any officials or employees thereof, is in the national security
interests of the United States.
``(b) Periodic and Special Reports.--(1) The President
shall report semiannually to the appropriate committees of
Congress on the types and volume of intelligence provided to
the United Nations and the purposes for which it was provided
during the period covered by the report. The President shall
also report to the appropriate committees of Congress within 15
days after it has become known to the United States Government
that there has been an unauthorized disclosure of intelligence
provided by the United States to the United Nations.
``(2) The requirement for periodic reports under the first
sentence of paragraph (1) shall not apply to the provision of
intelligence that is provided only to, and for the use of,
appropriately cleared United States Government personnel
serving with the United Nations.
``(c) Delegation of Duties.--The President may not delegate
or assign the duties of the President under this section.
``(d) Relationship to Existing Law.--Nothing in this
section shall be construed to--
``(1) impair or otherwise affect the authority of
the Director of Central Intelligence to protect
intelligence sources and methods from unauthorized
disclosure pursuant to section 103(c)(6) of this Act;
or
``(2) supersede or otherwise affect the provisions
of title V of this Act.
``(e) Definition.--As used in this section, the term
`appropriate committees of Congress' means the Committee on
Foreign Relations and the Select Committee on Intelligence of
the Senate and the Committee on Foreign Relations and the
Permanent Select Committee on Intelligence of the House of
Representatives.''.
(b) Clerical Amendment.--The table of contents for the
National Security Act of 1947 is amended by inserting after the
item relating to section 109 the following:
``Sec. 110. Restrictions on intelligence sharing with the United
Nations.''.
SEC. 309. PROHIBITION ON USING JOURNALISTS AS AGENTS OR ASSETS.
(a) Policy.--It is the policy of the United States that an
element of the Intelligence Community may not use as an agent
or asset for the purposes of collecting intelligence any
individual who--
(1) is authorized by contract or by the issuance of
press credentials to represent himself or herself,
either in the United States or abroad, as a
correspondent of a United States news media
organization; or
(2) is officially recognized by a foreign
government as a representative of a United States media
organization.
(b) Waiver.--Pursuant to such procedures as the President
may prescribe, the President or the Director of Central
Intelligence may waive subsection (a) in the case of an
individual if the President or the Director, as the case may
be, makes a written determination that the waiver is necessary
to address the overriding national security interest of the
United States. The Permanent Select Committee on Intelligence
of the House of Representatives and the Select Committee on
Intelligence of the Senate shall be notified of any waiver
under this subsection.
(c) Voluntary Cooperation.--Subsection (a) shall not be
construed to prohibit the voluntary cooperation of any person
who is aware that the cooperation is being provided to an
element of the United States Intelligence Community.
SEC. 310. REPORT ON POLICY OF INTELLIGENCE COMMUNITY REGARDING THE
PROTECTION OF THE NATIONAL INFORMATION
INFRASTRUCTURE AGAINST ATTACK.
(a) Report.--(1) Not later than 120 days after the date of
the enactment of this Act, the Director of Central Intelligence
shall submit to Congress a report on the potential responses of
the intelligence community to threats to and attacks upon the
information infrastructure of the United States by foreign
countries, groups, or individuals, or by other entities,
groups, or individuals.
(2) The report shall include the following:
(A) An analysis of the threats posed to the
information infrastructure of the United States by
information warfare and other forms of non-traditional
attacks on the infrastructure by foreign countries,
groups, or individuals, or by other entities, groups,
or individuals.
(B) A description and assessment of the
counterintelligence activities required to respond to
such threats, including the plans of the intelligence
community to support such activities.
(b) Definitions.--For purposes of this section:
(1) The term ``intelligence community'' has the
meaning given such term in section 3(4) of the National
Security Act of 1947 (50 U.S.C. 401a(4)).
(2) The term ``information infrastructure of the
United States'' includes the information infrastructure
of the public sector and of the private sector.
TITLE IV--CENTRAL INTELLIGENCE AGENCY
SEC. 401. ELIMINATION OF DOUBLE SURCHARGE ON CENTRAL INTELLIGENCE
AGENCY RELATING TO EMPLOYEES WHO RETIRE OR RESIGN
IN FISCAL YEARS 1998 OR 1999 AND WHO RECEIVE
VOLUNTARY SEPARATION INCENTIVE PAYMENTS.
Section 2(i) of the Central Intelligence Agency Voluntary
Separation Pay Act (50 U.S.C. 403-4 note) is amended by adding
at the end the following: ``The remittance required by this
subsection shall be in lieu of any remittance required by
section 4(a) of the Federal Workforce Restructuring Act of 1994
(5 U.S.C. 8331 note).''.
SEC. 402. POST-EMPLOYMENT RESTRICTIONS.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Director of Central Intelligence
shall prescribe regulations requiring each employee of the
Central Intelligence Agency designated by the Director for such
purpose to sign a written agreement restricting the activities
of the employee upon ceasing employment with the Central
Intelligence Agency. The Director may designate a group or
class of employees for such purpose.
(b) Agreement Elements.--The regulations shall provide that
an agreement contain provisions specifying that the employee
concerned not represent or advise the government, or any
political party, of any foreign country during the three-year
period beginning on the cessation of the employee's employment
with the Central Intelligence Agency unless the Director
determines that such representation or advice would be in the
best interests of the United States.
(c) Disciplinary Actions.--The regulations shall specify
appropriate disciplinary actions (including loss of retirement
benefits) to be taken against any employee determined by the
Director of Central Intelligence to have violated the agreement
of the employee under this section.
TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
SEC. 501. EXECUTIVE BRANCH OVERSIGHT OF BUDGETS OF ELEMENTS OF THE
INTELLIGENCE COMMUNITY.
(a) Report.--Not later than 90 days after the date of the
enactment of this Act, the President shall submit to the
appropriate congressional committees a report setting forth the
actions that have been taken to ensure adequate oversight by
the executive branch of the budget of the National
Reconnaissance Office and the budgets of other elements of the
intelligence community within the Department of Defense.
(b) Report Elements.--The report required by subsection (a)
shall--
(1) describe the extent to which the elements of
the intelligence community carrying out programs and
activities in the National Foreign Intelligence Program
are subject to requirements imposed on other elements
and components of the Department of Defense under the
Chief Financial Officers Act of 1990 (Public Law 101-
576), and the amendments made by that Act, and the
Federal Financial Management Act of 1994 (title IV of
Public Law 103-356), and the amendments made by that
Act;
(2) describe the extent to which such elements
submit to the Office of Management and Budget budget
justification materials and execution reports similar
to the budget justification materials and execution
reports submitted to the Office of Management and
Budget by the non-intelligence components of the
Department of Defense;
(3) describe the extent to which the National
Reconnaissance Office submits to the Office of
Management and Budget, the Community Management Staff,
and the Office of the Secretary of Defense--
(A) complete information on the cost,
schedule, performance, and requirements for any
new major acquisition before initiating the
acquisition;
(B) yearly reports (including baseline cost
and schedule information) on major
acquisitions;
(C) planned and actual expenditures in
connection with major acquisitions; and
(D) variances from any cost baselines for
major acquisitions (including explanations of
such variances); and
(4) assess the extent to which the National
Reconnaissance Office has submitted to Office of
Management and Budget, the Community Management Staff,
and the Office of the Secretary of Defense on a monthly
basis a detailed budget execution report similar to the
budget execution report prepared for Department of
Defense programs.
(c) Definitions.--For purposes of this section:
(1) The term ``appropriate congressional
committees'' means the following:
(A) The Select Committee on Intelligence
and the Committee on Armed Services of the
Senate.
(B) The Permanent Select Committee on
Intelligence and the Committee on National
Security of the House of Representatives.
(2) The term ``National Foreign Intelligence
Program'' has the meaning given such term in section
3(6) of the National Security Act of 1947 (50 U.S.C.
401a(6)).
TITLE VI--FEDERAL BUREAU OF INVESTIGATION
SEC. 601. ACCESS TO TELEPHONE RECORDS.
(a) Access for Counterintelligence Purposes.--Section
2709(b)(1) of title 18, United States Code, is amended by
inserting ``local and long distance'' before ``toll billing
records''.
(b) Conforming Amendment.--Section 2703(c)(1)(C) of such
title is amended by inserting ``local and long distance'' after
``address,''.
(c) Civil Remedy.--Section 2707 of such title is amended--
(1) in subsection (a), by striking out ``customer''
and inserting in lieu thereof ``other person'';
(2) in subsection (c), by adding at the end the
following: ``If the violation is willful or
intentional, the court may assess punitive damages. In
the case of a successful action to enforce liability
under this section, the court may assess the costs of
the action, together with reasonable attorney fees
determined by the court.'';
(3) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively; and
(4) by inserting after subsection (c) the following
new subsection (d):
``(d) Disciplinary Actions for Violations.--If a court
determines that any agency or department of the United States
has violated this chapter and the court finds that the
circumstances surrounding the violation raise the question
whether or not an officer or employee of the agency or
department acted willfully or intentionally with respect to the
violation, the agency or department concerned shall promptly
initiate a proceeding to determine whether or not disciplinary
action is warranted against the officer or employee.''.
TITLE VII--COMBATTING PROLIFERATION
SEC. 701. SHORT TITLE.
This title may be cited as the ``Combatting Proliferation
of Weapons of Mass Destruction Act of 1996''.
Subtitle A--Assessment of Organization and Structure of Government for
Combatting Proliferation
SEC. 711. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established a commission to be
known as the Commission to Assess the Organization of the
Federal Government to Combat the Proliferation of Weapons of
Mass Destruction (in this subtitle referred to as the
``Commission'').
(b) Membership.--The Commission shall be composed of eight
members of whom--
(1) four shall be appointed by the President;
(2) one shall be appointed by the Majority Leader
of the Senate;
(3) one shall be appointed by the Minority Leader
of the Senate;
(4) one shall be appointed by the Speaker of the
House of Representatives; and
(5) one shall be appointed by the Minority Leader
of the House of Representatives.
(c) Qualifications of Members.--(1) To the maximum extent
practicable, the individuals appointed as members of the
Commission shall be individuals who are nationally recognized
for expertise regarding--
(A) the nonproliferation of weapons of mass
destruction;
(B) the efficient and effective implementation of
United States nonproliferation policy; or
(C) 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 if, in the judgment of
the official, the individual possesses any personal or
financial interest in the discharge of any of the duties of the
Commission.
(d) Period of Appointment; Vacancies.--Members shall be
appointed for the life of the Commission. Any vacancy in the
Commission shall not affect its powers, but shall be filled in
the same manner as the original appointment.
(e) Initial Meeting.--Not later than 30 days after the
date on which all members of the Commission have been
appointed, the Commission shall hold its first meeting.
(f) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(g) Chairman and Vice Chairman.--The Commission shall
select a Chairman and Vice Chairman from among its members.
(h) Meetings.--The Commission shall meet at the call of the
Chairman.
SEC. 712. DUTIES OF COMMISSION.
(a) Study.--
(1) In general.--The Commission shall carry out a
thorough study of the organization of the Federal
Government, including the elements of the intelligence
community, with respect to combatting the proliferation
of weapons of mass destruction.
(2) Specific requirements.--In carrying out the
study, the Commission shall--
(A) assess the current structure and
organization of the departments and agencies of
the Federal Government having responsibilities
for combatting the proliferation of weapons of
mass destruction; and
(B) assess the effectiveness of United
States cooperation with foreign governments
with respect to nonproliferation activities,
including cooperation--
(i) between elements of the
intelligence community and elements of
the intelligence-gathering services of
foreign governments;
(ii) between other departments and
agencies of the Federal Government and
the counterparts to such departments
and agencies in foreign governments;
and
(iii) between the Federal
Government and international
organizations.
(3) Assessments.--In making the assessments under
paragraph (2), the Commission should address--
(A) the organization of the export control
activities (including licensing and enforcement
activities) of the Federal Government relating
to the proliferation of weapons of mass
destruction;
(B) arrangements for coordinating the
funding of United States nonproliferation
activities;
(C) existing arrangements governing the
flow of information among departments and
agencies of the Federal Government responsible
for nonproliferation activities;
(D) the effectiveness of the organization
and function of interagency groups in ensuring
implementation of United States treaty
obligations, laws, and policies with respect to
nonproliferation;
(E) the administration of sanctions for
purposes of nonproliferation, including the
measures taken by departments and agencies of
the Federal Government to implement, assess,
and enhance the effectiveness of such
sanctions;
(F) the organization, management, and
oversight of United States counterproliferation
activities;
(G) the recruitment, training, morale,
expertise, retention, and advancement of
Federal Government personnel responsible for
the nonproliferation functions of the Federal
Government, including any problems in such
activities;
(H) the role in United States
nonproliferation activities of the National
Security Council, the Office of Management and
Budget, the Office of Science and Technology
Policy, and other offices in the Executive
Office of the President having responsibilities
for such activities;
(I) the organization of the activities of
the Federal Government to verify government-to-
government assurances and commitments with
respect to nonproliferation, including
assurances regarding the future use of
commodities exported from the United States;
and
(J) the costs and benefits to the United
States of increased centralization and of
decreased centralization in the administration
of the nonproliferation activities of the
Federal Government.
(b) Recommendations.--In conducting the study, the
Commission shall develop recommendations on means of improving
the effectiveness of the organization of the departments and
agencies of the Federal Government in meeting the national
security interests of the United States with respect to the
proliferation of weapons of mass destruction. Such
recommendations shall include specific recommendations to
eliminate duplications of effort, and other inefficiencies, in
and among such departments and agencies.
(c) Report.--(1) Not later than 18 months after the date of
the enactment of this Act, the Commission shall submit to
Congress a report containing a detailed statement of the
findings and conclusions of the Commission, together with its
recommendations for such legislation and administrative actions
as it considers appropriate.
(2) The report shall be submitted in unclassified form, but
may include a classified annex.
SEC. 713. POWERS OF COMMISSION.
(a) Hearings.--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 subtitle.
(b) Information From Federal Agencies.--
(1) In general.--The Commission may secure directly
from any Federal department or agency such information
as the Commission considers necessary to carry out the
provisions of this subtitle. Upon request of the
Chairman of the Commission, the head of such department
or agency shall furnish such information to the
Commission.
(2) Classified information.--A department or agency
may furnish the Commission classified information under
this subsection. The Commission shall take appropriate
actions to safeguard classified information furnished
to the Commission under this paragraph.
(c) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
(d) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
SEC. 714. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--Each member of the Commission
who is not an officer or employee of the Federal Government
shall be compensated at a rate equal to the daily equivalent of
the annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United States
Code, for each day (including travel time) during which such
member is engaged in the performance of the duties of the
Commission. All members of the Commission who are officers or
employees of the United States shall serve without compensation
in addition to that received for their services as officers or
employees of the United States.
(b) Travel Expenses.--The members of the Commission shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Commission.
(c) Staff.--
(1) In general.--The Chairman of the Commission
may, without regard to the civil service laws and
regulations, appoint and terminate an executive
director and such other additional personnel as may be
necessary to enable the Commission to perform its
duties. The employment of an executive director shall
be subject to confirmation by the Commission.
(2) Compensation.--The Chairman of the Commission
may fix the compensation of the executive director and
other personnel without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of title 5,
United States Code, relating to classification of
positions and General Schedule pay rates, except that
the rate of pay for the executive director and other
personnel may not exceed the rate payable for level V
of the Executive Schedule under section 5316 of such
title.
(d) Detail of Government Employees.--Any Federal Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
(e) Procurement of Temporary and Intermittent Services.--
The Chairman of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay prescribed for
level V of the Executive Schedule under section 5316 of such
title.
SEC. 715. TERMINATION OF COMMISSION.
The Commission shall terminate 60 days after the date on
which the Commission submits its report under section 712(c).
SEC. 716. DEFINITION.
For purposes of this subtitle, the term ``intelligence
community'' shall have the meaning given such term in section
3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).
SEC. 717. PAYMENT OF COMMISSION EXPENSES.
The compensation, travel expenses, per diem allowances of
members and employees of the Commission, and other expenses of
the Commission shall be paid out of funds available to the
Director of Central Intelligence for the payment of
compensation, travel allowances, and per diem allowances,
respectively, of employees of the Central Intelligence Agency.
Subtitle B--Other Matters
SEC. 721. REPORTS ON ACQUISITION OF TECHNOLOGY RELATING TO WEAPONS OF
MASS DESTRUCTION AND ADVANCED CONVENTIONAL
MUNITIONS.
(a) Reports.--Not later than 6 months after the date of the
enactment of this Act, and every 6 months thereafter, the
Director of Central Intelligence shall submit to Congress a
report on--
(1) the acquisition by foreign countries during the
preceding 6 months of dual-use and other technology
useful for the development or production of weapons of
mass destruction (including nuclear weapons, chemical
weapons, and biological weapons) and advanced
conventional munitions; and
(2) trends in the acquisition of such technology by
such countries.
(b) Form of Reports.--The reports submitted under
subsection (a) shall be submitted in unclassified form, but may
include a classified annex.
TITLE VIII--RENEWAL AND REFORM OF INTELLIGENCE ACTIVITIES
SEC. 801. SHORT TITLE.
This title may be cited as the ``Intelligence Renewal and
Reform Act of 1996''.
SEC. 802. COMMITTEE ON FOREIGN INTELLIGENCE.
Section 101 of the National Security Act of 1947 (50 U.S.C.
402) is amended--
(1) by redesignating subsection (h) as subsection
(j); and
(2) by inserting after subsection (g) the following
new subsection (h):
``(h)(1) There is established within the National Security
Council a committee to be known as the Committee on Foreign
Intelligence (in this subsection referred to as the
`Committee').
``(2) The Committee shall be composed of the following:
``(A) The Director of Central Intelligence.
``(B) The Secretary of State.
``(C) The Secretary of Defense.
``(D) The Assistant to the President for National
Security Affairs, who shall serve as the chairperson of
the Committee.
``(E) Such other members as the President may
designate.
``(3) The function of the Committee shall be to assist the
Council in its activities by--
``(A) identifying the intelligence required to
address the national security interests of the United
States as specified by the President;
``(B) establishing priorities (including funding
priorities) among the programs, projects, and
activities that address such interests and
requirements; and
``(C) establishing policies relating to the conduct
of intelligence activities of the United States,
including appropriate roles and missions for the
elements of the intelligence community and appropriate
targets of intelligence collection activities.
``(4) In carrying out its function, the Committee shall--
``(A) conduct an annual review of the national
security interests of the United States;
``(B) identify on an annual basis, and at such
other times as the Council may require, the
intelligence required to meet such interests and
establish an order of priority for the collection and
analysis of such intelligence; and
``(C) conduct an annual review of the elements of
the intelligence community in order to determine the
success of such elements in collecting, analyzing, and
disseminating the intelligence identified under
subparagraph (B).
``(5) The Committee shall submit each year to the Council
and to the Director of Central Intelligence a comprehensive
report on its activities during the preceding year, including
its activities under paragraphs (3) and (4).''.
SEC. 803. ANNUAL REPORTS ON INTELLIGENCE.
(a) In General.--Section 109 of the National Security Act
of 1947 (50 U.S.C. 404d) is amended by striking out subsections
(a) and (b) and inserting in lieu thereof the following new
subsections:
``Sec. 109. (a) In General.--(1) Not later than January 31
each year, the President shall submit to the appropriate
congressional committees a report on the requirements of the
United States for intelligence and the activities of the
intelligence community.
``(2) The purpose of the report is to facilitate an
assessment of the activities of the intelligence community
during the preceding fiscal year and to assist in the
development of a mission and a budget for the intelligence
community for the fiscal year beginning in the year in which
the report is submitted.
``(3) The report shall be submitted in unclassified form,
but may include a classified annex.
``(b) Matters Covered.--(1) Each report under subsection
(a) shall--
``(A) specify the intelligence required to meet the
national security interests of the United States, and
set forth an order of priority for the collection and
analysis of intelligence required to meet such
interests, for the fiscal year beginning in the year in
which the report is submitted; and
``(B) evaluate the performance of the intelligence
community in collecting and analyzing intelligence
required to meet such interests during the fiscal year
ending in the year preceding the year in which the
report is submitted, including a description of the
significant successes and significant failures of the
intelligence community in such collection and analysis
during that fiscal year.
``(2) The report shall specify matters under paragraph
(1)(A) in sufficient detail to assist Congress in making
decisions with respect to the allocation of resources for the
matters specified.
``(c) Definition.--In this section, the term `appropriate
congressional committees' means the following:
``(1) The Select Committee on Intelligence, the
Committee on Appropriations, and the Committee on Armed
Services of the Senate.
``(2) The Permanent Select Committee on
Intelligence, the Committee on Appropriations, and the
Committee on National Security of the House of
Representatives.''.
(b) Conforming Amendments.--(1) The section heading of such
section is amended to read as follows:
``annual report on intelligence''.
(2) The table of contents for Act is amended by striking
out the item relating to section 109 and inserting in lieu
thereof the following new item:
``Sec. 109. Annual report on intelligence.''.
SEC. 804. TRANSNATIONAL THREATS.
Section 101 of the National Security Act of 1947 (50 U.S.C.
402) is amended by inserting after subsection (h), as amended
by section 802 of this Act, the following new subsection:
``(i)(1) There is established within the National Security
Council a committee to be known as the Committee on
Transnational Threats (in this subsection referred to as the
`Committee').
``(2) The Committee shall include the following members:
``(A) The Director of Central Intelligence.
``(B) The Secretary of State.
``(C) The Secretary of Defense.
``(D) The Attorney General.
``(E) The Assistant to the President for National
Security Affairs, who shall serve as the chairperson of
the Committee.
``(F) Such other members as the President may
designate.
``(3) The function of the Committee shall be to coordinate
and direct the activities of the United States Government
relating to combatting transnational threats.
``(4) In carrying out its function, the Committee shall--
``(A) identify transnational threats;
``(B) develop strategies to enable the United
States Government to respond to transnational threats
identified under subparagraph (A);
``(C) monitor implementation of such strategies;
``(D) make recommendations as to appropriate
responses to specific transnational threats;
``(E) assist in the resolution of operational and
policy differences among Federal departments and
agencies in their responses to transnational threats;
``(F) develop policies and procedures to ensure the
effective sharing of information about transnational
threats among Federal departments and agencies,
including law enforcement agencies and the elements of
the intelligence community; and
``(G) develop guidelines to enhance and improve the
coordination of activities of Federal law enforcement
agencies and elements of the intelligence community
outside the United States with respect to transnational
threats.
``(5) For purposes of this subsection, the term
`transnational threat' means the following:
``(A) Any transnational activity (including
international terrorism, narcotics trafficking, the
proliferation of weapons of mass destruction and the
delivery systems for such weapons, and organized crime)
that threatens the national security of the United
States.
``(B) Any individual or group that engages in an
activity referred to in subparagraph (A).''.
SEC. 805. OVERALL MANAGEMENT OF CENTRAL INTELLIGENCE.
(a) Office of the Director of Central Intelligence.--Title
I of the National Security Act of 1947 (50 U.S.C. 402 et seq.)
is amended by striking out section 102 and inserting in lieu
thereof the following new section 102:
``office of the director of central intelligence
``Sec. 102. (a) Director of Central Intelligence.--There is
a Director of Central Intelligence who shall be appointed by
the President, by and with the advice and consent of the
Senate. The Director shall--
``(1) serve as head of the United States
intelligence community;
``(2) act as the principal adviser to the President
for intelligence matters related to the national
security; and
``(3) serve as head of the Central Intelligence
Agency.
``(b) Deputy Directors of Central Intelligence.--(1) There
is a Deputy Director of Central Intelligence who shall be
appointed by the President, by and with the advice and consent
of the Senate.
``(2) There is a Deputy Director of Central Intelligence
for Community Management who shall be appointed by the
President, by and with the advice and consent of the Senate.
``(3) Each Deputy Director of Central Intelligence shall
have extensive national security expertise.
``(c) Military Status of Director and Deputy Directors.--
(1)(A) Not more than one of the individuals serving in the
positions specified in subparagraph (B) may be a commissioned
officer of the Armed Forces, whether in active or retired
status.
``(B) The positions referred to in subparagraph (A) are the
following:
``(i) The Director of Central Intelligence.
``(ii) The Deputy Director of Central Intelligence.
``(iii) The Deputy Director of Central Intelligence
for Community Management.
``(2) It is the sense of Congress that, under ordinary
circumstances, it is desirable that one of the individuals
serving in the positions specified in paragraph (1)(B)--
``(A) be a commissioned officer of the Armed
Forces, whether in active or retired status; or
``(B) have, by training or experience, an
appreciation of military intelligence activities and
requirements.
``(3) A commissioned officer of the Armed Forces, while
serving in a position specified in paragraph (1)(B)--
``(A) shall not be subject to supervision or
control by the Secretary of Defense or by any officer
or employee of the Department of Defense;
``(B) shall not exercise, by reason of the
officer's status as a commissioned officer, any
supervision or control with respect to any of the
military or civilian personnel of the Department of
Defense except as otherwise authorized by law; and
``(C) shall not be counted against the numbers and
percentages of commissioned officers of the rank and
grade of such officer authorized for the military
department of that officer.
``(4) Except as provided in subparagraph (A) or (B) of
paragraph (3), the appointment of an officer of the Armed
Forces to a position specified in paragraph (1)(B) shall not
affect the status, position, rank, or grade of such officer in
the Armed Forces, or any emolument, perquisite, right,
privilege, or benefit incident to or arising out of any such
status, position, rank, or grade.
``(5) A commissioned officer of the Armed Forces on active
duty who is appointed to a position specified in paragraph
(1)(B), while serving in such position and while remaining on
active duty, shall continue to receive military pay and
allowances and shall not receive the pay prescribed for such
position. Funds from which such pay and allowances are paid
shall be reimbursed from funds available to the Director of
Central Intelligence.
``(d) Duties of Deputy Directors.--(1)(A) The Deputy
Director of Central Intelligence shall assist the Director of
Central Intelligence in carrying out the Director's
responsibilities under this Act.
``(B) The Deputy Director of Central Intelligence shall act
for, and exercise the powers of, the Director of Central
Intelligence during the Director's absence or disability or
during a vacancy in the position of the Director of Central
Intelligence.
``(2) The Deputy Director of Central Intelligence for
Community Management shall, subject to the direction of the
Director of Central Intelligence, be responsible for the
following:
``(A) Directing the operations of the Community
Management Staff.
``(B) Through the Assistant Director of Central
Intelligence for Collection, ensuring the efficient and
effective collection of national intelligence using
technical means and human sources.
``(C) Through the Assistant Director of Central
Intelligence for Analysis and Production, conducting
oversight of the analysis and production of
intelligence by elements of the intelligence community.
``(D) Through the Assistant Director of Central
Intelligence for Administration, performing community-
wide management functions of the intelligence
community, including the management of personnel and
resources.
``(3)(A) The Deputy Director of Central Intelligence takes
precedence in the Office of the Director of Central
Intelligence immediately after the Director of Central
Intelligence.
``(B) The Deputy Director of Central Intelligence for
Community Management takes precedence in the Office of the
Director of Central Intelligence immediately after the Deputy
Director of Central Intelligence.
``(e) Office of the Director of Central Intelligence.--(1)
There is an Office of the Director of Central Intelligence. The
function of the Office is to assist the Director of Central
Intelligence in carrying out the duties and responsibilities of
the Director under this Act and to carry out such other duties
as may be prescribed by law.
``(2) The Office of the Director of Central Intelligence is
composed of the following:
``(A) The Director of Central Intelligence.
``(B) The Deputy Director of Central Intelligence.
``(C) The Deputy Director of Central Intelligence
for Community Management.
``(D) The National Intelligence Council.
``(E) The Assistant Director of Central
Intelligence for Collection.
``(F) The Assistant Director of Central
Intelligence for Analysis and Production.
``(G) The Assistant Director of Central
Intelligence for Administration.
``(H) Such other offices and officials as may be
established by law or the Director of Central
Intelligence may establish or designate in the Office.
``(3) To assist the Director in fulfilling the
responsibilities of the Director as head of the intelligence
community, the Director shall employ and utilize in the Office
of the Director of Central Intelligence a professional staff
having an expertise in matters relating to such
responsibilities and may establish permanent positions and
appropriate rates of pay with respect to that staff.''.
(b) Central Intelligence Agency.--Title I of the National
Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by
inserting after section 102, as amended by subsection (a), the
following new section:
``central intelligence agency
``Sec. 102A. There is a Central Intelligence Agency. The
function of the Agency shall be to assist the Director of
Central Intelligence in carrying out the responsibilities
referred to in paragraphs (1) through (5) of section 103(d) of
this Act.''.
(c) Clerical Amendment.--The table of contents for that Act
is amended by striking out the item relating to section 102 and
inserting in lieu thereof the following new items:
``Sec. 102. Office of the Director of Central Intelligence.
``Sec. 102A. Central Intelligence Agency.''.
SEC. 806. NATIONAL INTELLIGENCE COUNCIL.
Section 103(b) of the National Security Act of 1947 (50
U.S.C. 403-3(b)) is amended--
(1) in paragraph (1)(B), by inserting ``, or as
contractors of the Council or employees of such
contractors,'' after ``on the Council'';
(2) in paragraph (2)--
(A) by striking out ``and'' at the end of
subparagraph (A);
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following new subparagraph (B):
``(B) evaluate community-wide collection and
production of intelligence by the intelligence
community and the requirements and resources of such
collection and production; and'';
(3) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively;
(4) by inserting after paragraph (3) the following
new paragraph (4):
``(4) Subject to the direction and control of the Director
of Central Intelligence, the Council may carry out its
responsibilities under this subsection by contract, including
contracts for substantive experts necessary to assist the
Council with particular assessments under this subsection.'';
and
(5) in paragraph (5), as so redesignated, by adding
at the end the following: ``The Council shall also be
readily accessible to policymaking officials and other
appropriate individuals not otherwise associated with
the intelligence community.''.
SEC. 807. ENHANCEMENT OF AUTHORITY OF DIRECTOR OF CENTRAL INTELLIGENCE
TO MANAGE BUDGET, PERSONNEL, AND ACTIVITIES OF
INTELLIGENCE COMMUNITY.
(a) In General.--Section 103(c) of the National Security
Act of 1947 (50 U.S.C. 403-3(c)) is amended--
(1) by striking out paragraph (1) and inserting in
lieu thereof the following new paragraph (1):
``(1) facilitate the development of an annual
budget for intelligence and intelligence-related
activities of the United States by--
``(A) developing and presenting to the
President an annual budget for the National
Foreign Intelligence Program; and
``(B) participating in the development by
the Secretary of Defense of the annual budgets
for the Joint Military Intelligence Program and
the Tactical Intelligence and Related
Activities Program;'';
(2) by redesignating paragraphs (3) through (6) as
paragraphs (4) through (7), respectively; and
(3) by inserting after paragraph (2) the following
new paragraph (3):
``(3) approve collection requirements, determine
collection priorities, and resolve conflicts in
collection priorities levied on national collection
assets, except as otherwise agreed with the Secretary
of Defense pursuant to the direction of the
President;''.
(b) Use of Funds.--Section 104(c) of the National Security
Act of 1947 (50 U.S.C. 403-4(c)) is amended by adding at the
end the following: ``The Secretary of Defense shall consult
with the Director of Central Intelligence before reprogramming
funds made available under the Joint Military Intelligence
Program.''.
(c) Periodic Reports on Expenditures.--Not later than
January 1, 1997, the Director of Central Intelligence and the
Secretary of Defense shall prescribe guidelines to ensure
prompt reporting to the Director and the Secretary on a
periodic basis of budget execution data for all national,
defense-wide, and tactical intelligence activities.
(d) Database Program Tracking.--Not later than January 1,
1999, the Director of Central Intelligence and the Secretary of
Defense shall develop and implement a database to provide
timely and accurate information on the amounts, purposes, and
status of the resources, including periodic budget execution
updates, for all national, defense-wide, and tactical
intelligence activities.
(e) Personnel, Training, and Administrative Activities.--
Not later than January 31 of each year through 1999, the
Director of Central Intelligence shall submit to the Select
Committee on Intelligence of the Senate and the Permanent
Select Committee on Intelligence of the House of
Representatives a report on the policies and programs the
Director has instituted under subsection (f) of section 104 of
the National Security Act of 1947.
SEC. 808. RESPONSIBILITIES OF SECRETARY OF DEFENSE PERTAINING TO THE
NATIONAL FOREIGN INTELLIGENCE PROGRAM.
Section 105 of the National Security Act of 1947 (50 U.S.C.
403-5) is amended--
(1) in subsection (a), by inserting ``, in
consultation with the Director of Central
Intelligence,'' after ``Secretary of Defense'' in the
matter preceding paragraph (1); and
(2) by adding at the end the following:
``(d) Annual Evaluation of the Director of Central
Intelligence.--The Director of Central Intelligence, in
consultation with the Secretary of Defense and the Chairman of
the Joint Chiefs of Staff, shall submit each year to the
Committee on Foreign Intelligence of the National Security
Council and the appropriate congressional committees (as
defined in section 109(c) of this Act) an evaluation of the
performance and the responsiveness of the National Security
Agency, the National Reconnaissance Office, and the National
Imagery and Mapping Agency in meeting their national
missions.''.
SEC. 809. IMPROVEMENT OF INTELLIGENCE COLLECTION.
(a) Assistant Director of Central Intelligence for
Collection.--Section 102 of the National Security Act of 1947,
as amended by section 805(a) of this Act, is further amended by
adding at the end the following:
``(f) Assistant Director of Central Intelligence for
Collection.--(1) To assist the Director of Central Intelligence
in carrying out the Director's responsibilities under this Act,
there shall be an Assistant Director of Central Intelligence
for Collection who shall be appointed by the President, by and
with the advice and consent of the Senate.
``(2) The Assistant Director for Collection shall assist
the Director of Central Intelligence in carrying out the
Director's collection responsibilities in order to ensure the
efficient and effective collection of national intelligence.''.
(b) Consolidation of Human Intelligence Collection
Activities.--Not later than 90 days after the date of the
enactment of this Act, the Director of Central Intelligence and
the Deputy Secretary of Defense shall jointly submit to the
Committee on Armed Services and the Select Committee on
Intelligence of the Senate and the Committee on National
Security and the Permanent Select Committee on Intelligence of
the House of Representatives a report on the ongoing efforts of
those officials to achieve commonality, interoperability, and,
where practicable, consolidation of the collection of
clandestine intelligence from human sources conducted by the
Defense Human Intelligence Service of the Department of Defense
and the Directorate of Operations of the Central Intelligence
Agency.
SEC. 810. IMPROVEMENT OF ANALYSIS AND PRODUCTION OF INTELLIGENCE.
Section 102 of the National Security Act of 1947, as
amended by section 809(a) of this Act, is further amended by
adding at the end the following:
``(g) Assistant Director of Central Intelligence for
Analysis and Production.--(1) To assist the Director of Central
Intelligence in carrying out the Director's responsibilities
under this Act, there shall be an Assistant Director of Central
Intelligence for Analysis and Production who shall be appointed
by the President, by and with the advice and consent of the
Senate.
``(2) The Assistant Director for Analysis and Production
shall--
``(A) oversee the analysis and production of
intelligence by the elements of the intelligence
community;
``(B) establish standards and priorities relating
to such analysis and production;
``(C) monitor the allocation of resources for the
analysis and production of intelligence in order to
identify unnecessary duplication in the analysis and
production of intelligence;
``(D) identify intelligence to be collected for
purposes of the Assistant Director of Central
Intelligence for Collection; and
``(E) provide such additional analysis and
production of intelligence as the President and the
National Security Council may require.''.
SEC. 811. IMPROVEMENT OF ADMINISTRATION OF INTELLIGENCE ACTIVITIES.
Section 102 of the National Security Act of 1947, as
amended by section 810 of this Act, is further amended by
adding at the end the following:
``(h) Assistant Director of Central Intelligence for
Administration.--(1) To assist the Director of Central
Intelligence in carrying out the Director's responsibilities
under this Act, there shall be an Assistant Director of Central
Intelligence for Administration who shall be appointed by the
President, by and with the advice and consent of the Senate.
``(2) The Assistant Director for Administration shall
manage such activities relating to the administration of the
intelligence community as the Director of Central Intelligence
shall require.''.
SEC. 812. PAY LEVEL OF DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE FOR
COMMUNITY MANAGEMENT AND ASSISTANT DIRECTORS OF
CENTRAL INTELLIGENCE.
(a) Executive Schedule III Pay Level.--Section 5314 of
title 5, United States Code, is amended by striking out item
the relating to the Deputy Director of Central Intelligence and
inserting in lieu thereof the following:
``Deputy Directors of Central Intelligence (2).''.
(b) Executive Schedule IV Pay Level.--Section 5315 of title
5, United States Code, is amended by adding at the end the
following:
``Assistant Directors of Central Intelligence
(3).''.
SEC. 813. GENERAL COUNSEL OF THE CENTRAL INTELLIGENCE AGENCY.
(a) In General.--The Central Intelligence Agency Act of
1949 (50 U.S.C. 403a et seq.) is amended by adding at the end
the following:
``general counsel of the central intelligence agency
``Sec. 20. (a) There is a General Counsel of the Central
Intelligence Agency, appointed from civilian life by the
President, by and with the advice and consent of the Senate.
``(b) The General Counsel is the chief legal officer of the
Central Intelligence Agency.
``(c) The General Counsel of the Central Intelligence
Agency shall perform such functions as the Director of Central
Intelligence may prescribe.''.
(b) Applicability of Appointment Requirements.--The
requirement established by section 20 of the Central
Intelligence Agency Act of 1949, as added by subsection (a),
for the appointment by the President, by and with the advice
and consent of the Senate, of an individual to the position of
General Counsel of the Central Intelligence Agency shall apply
as follows:
(1) To any vacancy in such position that occurs
after the date of the enactment of this Act.
(2) To the incumbent serving in such position on
the date of the enactment of this Act as of the date
that is six months after such date of enactment, if
such incumbent has served in such position continuously
between such date of enactment and the date that is six
months after such date of enactment.
(c) Executive Schedule IV Pay Level.--Section 5315 of title
5, United States Code, as amended by section 812 of this Act,
is further amended by adding at the end the following:
``General Counsel of the Central Intelligence
Agency.''.
SEC. 814. ASSISTANCE FOR LAW ENFORCEMENT AGENCIES BY INTELLIGENCE
COMMUNITY.
(a) In General.--Title I of the National Security Act of
1947 (50 U.S.C. 402 et seq.) is amended by inserting after
section 105 the following new section:
``assistance to united states law enforcement agencies
``Sec. 105A. (a) Authority To Provide Assistance.--Subject
to subsection (b), elements of the intelligence community may,
upon the request of a United States law enforcement agency,
collect information outside the United States about individuals
who are not United States persons. Such elements may collect
such information notwithstanding that the law enforcement
agency intends to use the information collected for purposes of
a law enforcement investigation or counterintelligence
investigation.
``(b) Limitation on Assistance by Elements of Department of
Defense.--(1) With respect to elements within the Department of
Defense, the authority in subsection (a) applies only to the
following:
``(A) The National Security Agency.
``(B) The National Reconnaissance Office.
``(C) The National Imagery and Mapping Agency.
``(D) The Defense Intelligence Agency.
``(2) Assistance provided under this section by elements of
the Department of Defense may not include the direct
participation of a member of the Army, Navy, Air Force, or
Marine Corps in an arrest or similar activity.
``(3) Assistance may not be provided under this section by
an element of the Department of Defense if the provision of
such assistance will adversely affect the military preparedness
of the United States.
``(4) The Secretary of Defense shall prescribe regulations
governing the exercise of authority under this section by
elements of the Department of Defense, including regulations
relating to the protection of sources and methods in the
exercise of such authority.
``(c) Definitions.--For purposes of subsection (a):
``(1) The term `United States law enforcement
agency' means any department or agency of the Federal
Government that the Attorney General designates as law
enforcement agency for purposes of this section.
``(2) The term `United States person' means the
following:
``(A) A United States citizen.
``(B) An alien known by the intelligence
agency concerned to be a permanent resident
alien.
``(C) An unincorporated association
substantially composed of United States
citizens or permanent resident aliens.
``(D) A corporation incorporated in the
United States, except for a corporation
directed and controlled by a foreign government
or governments.''.
(b) Clerical Amendment.--The table of contents for that Act
is amended by inserting after the item relating to section 105
the following new item:
``Sec. 105A. Assistance to United States law enforcement agencies.''.
SEC. 815. APPOINTMENT OF OFFICIALS RESPONSIBLE FOR INTELLIGENCE-RELATED
ACTIVITIES.
(a) In General.--Section 106 of the National Security Act
of 1947 (50 U.S.C. 403-6) is amended to read as follows:
``appointment of officials responsible for intelligence-related
activities
``Sec. 106. (a) Concurrence of DCI in Certain
Appointments.--(1) In the event of a vacancy in a position
referred to in paragraph (2), the Secretary of Defense shall
obtain the concurrence of the Director of Central Intelligence
before recommending to the President an individual for
appointment to the position. If the Director does not concur in
the recommendation, the Secretary may make the recommendation
to the President without the Director's concurrence, but shall
include in the recommendation a statement that the Director
does not concur in the recommendation.
``(2) Paragraph (1) applies to the following positions:
``(A) The Director of the National Security Agency.
``(B) The Director of the National Reconnaissance
Office.
``(C) The Director of the National Imagery and
Mapping Agency.
``(b) Consultation with DCI in Certain Appointments.--(1)
In the event of a vacancy in a position referred to in
paragraph (2), the head of the department or agency having
jurisdiction over the position shall consult with the Director
of Central Intelligence before appointing an individual to fill
the vacancy or recommending to the President an individual to
be nominated to fill the vacancy.
``(2) Paragraph (1) applies to the following positions:
``(A) The Director of the Defense Intelligence
Agency.
``(B) The Assistant Secretary of State for
Intelligence and Research.
``(C) The Director of the Office of
Nonproliferation and National Security of the
Department of Energy.
``(3) In the event of a vacancy in the position of the
Assistant Director, National Security Division of the Federal
Bureau of Investigation, the Director of the Federal Bureau of
Investigation shall provide timely notice to the Director of
Central Intelligence of the recommendation of the Director of
the Federal Bureau of Investigation of an individual to fill
the position in order that the Director of Central Intelligence
may consult with the Director of the Federal Bureau of
Investigation before the Attorney General appoints an
individual to fill the vacancy.''.
(b) Clerical Amendment.--The table of contents for that Act
is amended by striking out the item relating to section 106 and
inserting in lieu thereof the following new item:
``Sec. 106. Appointment of officials responsible for intelligence-
related activities.''.
SEC. 816. STUDY ON THE FUTURE OF INTELLIGENCE COLLECTION.
(a) Study.--The Director of Central Intelligence shall, in
consultation with the Deputy Secretary of Defense, conduct a
study on the future of intelligence collection. The study shall
address whether collection resources can be managed in a more
consolidated, integrated manner. The study is not limited to,
but should include, specific examination of the following:
(1) Establishing within the Intelligence Community
a single agency with responsibility for--
(A) the clandestine collection of
intelligence through human sources and other
clandestine techniques;
(B) covert action; and
(C) representing the Director of Central
Intelligence in liaison with foreign
intelligence and security services.
(2) Establishing a single agency for the conduct of
technical intelligence collection activities,
including--
(A) signals intelligence (SIGINT), imagery
intelligence (IMINT), and measurement and
signatures intelligence (MASINT);
(B) first-phase (or initial) exploitation
of the results of such collection;
(C) dissemination of such collection in a
timely manner;
(D) development of processing and
exploitation technologies to support these
functions; and
(E) serving as the sole agent within the
Intelligence Community for--
(i) the specification of technical
requirements for such reconnaissance
systems as may be needed to meet the
signals intelligence, imagery
intelligence, and measurement and
signatures intelligence collection
requirements of the Intelligence
Community; and
(ii) the operation and final
disposition of such systems.
(3) Establishing a single agency--
(A) to serve as the sole agent within the
Intelligence Community for the conduct of
research, development, test, and evaluation,
for procurement, and for launch of satellite
reconnaissance systems that may be required to
satisfy the intelligence collection
requirements of the Intelligence Community; and
(B) to serve as the primary agent within
the Intelligence Community for the conduct of
research, development, test, evaluation and for
procurement of reconnaissance, surveillance,
and sensor systems, including airborne and
maritime reconnaissance capabilities within the
National Foreign Intelligence Program and the
Joint Military Intelligence Program.
(b) Criteria.--The study under subsection (a) shall--
(1) take into account current and future
technological capabilities and intelligence
requirements;
(2) take into account the costs and benefits
associated with establishing each of the agencies
described in paragraphs (1) through (3) of subsection
(a) as well as the costs and benefits of maintaining
the current system of distinct ``collection
stovepipes''; and
(3) examine establishing each of the agencies
described in paragraphs (1) through (3) of subsection
(a) both on their individual merits and also with a
view toward having such agencies co-exist as an entire
new organizational structure.
(c) Report.--Not later than April 15, 1997, the Director of
Central Intelligence shall submit a report on the study to the
following:
(1) The President.
(2) The Secretary of Defense
(3) The Select Committee on Intelligence and the
Committee on Armed Services of the Senate.
(4) The Permanent Select Committee on Intelligence
and the Committee on National Security of the House of
Representatives.
SEC. 817. INTELLIGENCE RESERVE CORPS.
(a) Report on Corps.--Not later than four months after the
date of the enactment of this Act, the Director of Central
Intelligence shall submit to the appropriate committees of
Congress a report on the Surge Augmentation Program to provide
for an Intelligence Reserve Corps to serve as a surge or
augmentation resource for the Intelligence Community. The
report shall include such recommendations for legislation as
the Director considers appropriate.
(b) Appropriate Committees Defined.--In this section, the
term ``appropriate committees of Congress'' means the
following:
(1) The Committee on Governmental Affairs and the
Select Committee on Intelligence of the Senate.
(2) The Committee on Government Reform and
Oversight and the Permanent Select Committee on
Intelligence of the House of Representatives.
TITLE IX--FINANCIAL MATTERS
SEC. 901. AUTHORIZATION OF FUNDING PROVIDED BY 1996 SUPPLEMENTAL
APPROPRIATIONS ACT.
Amounts obligated or expended for intelligence or
intelligence-related activities based on and otherwise in
accordance with the appropriations provided by the Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (Public
Law 104-134), including any such obligations or expenditures
occurring before the enactment of this Act, shall be deemed to
have been specifically authorized by the Congress for purposes
of section 504 of the National Security Act of 1947 (50 U.S.C.
414) and are hereby ratified and confirmed.
And the Senate agree to the same.
From the Permanent Select Committee on
Intelligence, for consideration of the House
bill and the Senate amendment, and
modifications committed to the conference:
Larry Combest,
Robert K. Dornan,
Bill Young,
James V. Hansen,
Jerry Lewis,
Porter J. Goss,
Bud Shuster,
Bill McCollum,
Michael N. Castle,
Norman D. Dicks,
Bill Richardson,
Julian C. Dixon,
Robert Torricelli,
Ronald D. Coleman,
David Skaggs,
Nancy Pelosi,
From the Committee on National Security, for
consideration of defense tactical intelligence
and related agencies:
Bob Stump,
Floyd Spence,
Managers on the Part of the House.
Arlen Specter,
Dick Lugar,
Richard Shelby,
Mike DeWine,
Jon Kyl,
J.M. Inhofe,
Kay Bailey Hutchison,
Bill Cohen,
Hank Brown,
Bob Kerrey,
John Glenn,
Richard H. Bryan,
Bob Graham,
John F. Kerry,
Max Baucus,
J. Bennett Johnston,
Charles S. Robb,
From the Committee on Armed Services:
Strom Thurmond,
Sam Nunn,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to the bill (H.R. 3259) to
authorize appropriations for fiscal year 1997 for intelligence
and the intelligence-related activities of the United States
Government, the Community Management Account, and the Central
Intelligence Agency Retirement and Disability System, and for
other purposes, submit the following joint statement to the
House and the Senate in explanation of the effect of the action
agreed upon by the managers and recommended in the accompanying
conference report:
The Senate amendment struck all of the House bill after
the enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment
of the Senate with an amendment that is a substitute for the
House bill and the Senate amendment. The differences between
the House bill, the Senate amendment, and the substitute agreed
to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clerical
changes.
Title I--Intelligence Activities
sec. 101. authorization for appropriations
Section 101 of the conference report lists the
departments, agencies, and other elements of the United States
Government for whose intelligence and intelligence-related
activities the Act authorize appropriations for fiscal year
1997.
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
1997 are contained in a classified Schedule of Authorizations.
The Schedule of Authorizations is incorporated into the Act by
this section. The details of the Schedule are explained in the
classified annex to this report.
sec. 103. personnel ceiling adjustments
Section 103 of the conference report authorizes the
Director of Central Intelligence, with the approval of the
Director of the Office of Management and Budget, in fiscal year
1997 to exceed the personnel ceilings applicable to the
components of the Intelligence Community under section 102 by
an amount not to exceed two percent of the total of the
ceilings applicable under section 102. The Director may
exercise this authority only when doing so is necessary to the
performance of important intelligence functions. Any exercise
of this authority must be reported to the two intelligence
committees of the Congress.
The conferees emphasize that the authority conferred by
Section 103 is not intended to permit the wholesale raising of
personnel strength in any intelligence component. Rather, the
section provides the Director of Central Intelligence with
flexibility to adjust personnel levels temporarily for
contingencies and for overages caused by an imbalance between
hiring of new employees and attrition of current employees. The
conferees do not expect the Director of Central Intelligence to
allow heads of intelligence components to plan to exceed levels
set in the Schedule of Authorizations except for the
satisfaction of clearly identified hiring needs which are
consistent with the authorization of personnel strengths in
this bill. In no case is this authority to be used to provide
for positions denied by this bill.
sec. 104. community management account
Section 104 of the conference report authorizes
appropriations for the Community Management Account of the
Director of Central Intelligence and sets the personnel end-
strength for the Intelligence Community Management Staff for
fiscal year 1997,
Subsection (a) authorizes appropriations of $131,116,000
for fiscal year 1997 for the activities of the Community
Management Account (CMA) of the Director of Central
Intelligence. This amount includes funds identified for the
Advanced Research and Development Committee, which shall remain
available for two years.
Subsection (b) authorizes 303 full-time personnel for the
Community Management Staff for fiscal year 1997 and provides
that such personnel may be permanent employees of the Staff or
detailed from various elements of the United States Government.
Subsection (c) requires that personnel be detailed on a
reimbursable basis except for temporary situations of less than
one year.
Subsection (d) authorizes $27,000,000 of the total CMA to
be made available for the National Drug Intelligence Center
(NDIC) in Johnstown, Pennsylvania. Subsection (d) is similar to
section 104(e) of the House bill. The House bill authorized 35
positions at NDIC to be funded in the National Foreign
Intelligence Program (NFIP). The conferees agreed that these
positions will continue to be funded in the Department of
Defense Community Management Account.
The Attorney General and the DCI have agreed to designate
the NDIC as an element of the intelligence community, pursuant
to section 3(4)(J) of the National Security Act of 1947, and
accordingly the DCI shall approve the NDIC budget before its
incorporation into the NFIP, pursuant to Section 104(b) of the
National Security Act. The conferees anticipate that, as with
the budget for the National Security Division of the FBI, the
DCI will ordinarily approve the Attorney General's proposed
budget for the NDIC without change or will make changes in the
NDIC budget only after consultation with the Attorney General.
Moreover, even though NDIC will be funded in the NFIP, the
conferees emphasize that the DCI should not exercise direction
or control over the operations of the NDIC. The conferees note
that section 103(d)!1) of the National Security Act provides
that the Central Intelligence Agency shall have no ``law
enforcement powers.'' Although section 103(d)(1) specifically
applies only to the CIA and not to the DCI, because the DCI is
both head of the intelligence community and head of the CIA,
the conferees believe it is important that the DCI not appear
to be involved in managing law enforcement activities.
Accordingly, section 104(d) of the conference report makes
clear that amounts appropriated for the NDIC may not be used in
contravention of section 103(d)(1) of the Act.
Subsection (e) authorizes $18,000,000 of the total CMA to
be made available for the Environmental Intelligence and
Applications Program, formerly known as the Environmental Task
Force, to remain available for two years.
Title II--Central Intelligence Agency Retirement and Disability System
sec. 201. authorization of appropriations
Section 201 authorizes appropriations in the amount of
$184,200,000 for fiscal year 1997 for the Central Intelligence
Agency Retirement and Disability Fund.
Title III--General Provisions
sec. 301. increase in employee compensation and benefits authorized by
law
Section 301 of the conference report provides that
appropriations authorized by the conference report for salary,
pay, retirement, and other benefits for federal employees may
be increased by such additional or supplemental amounts as may
be necessary for increases in such compensation or benefits
authorized by law. Section 301 is identical to section 301 of
the House bill and section 301 of the Senate amendment.
sec. 302. restriction on conduct of intelligence activities
Section 302 provided that the authorization of
appropriations by the conference report shall not be deemed to
constitute authority for the conduct of any intelligence
activity that is not otherwise authorized by the Constitution
or laws of the United States. Section 302 is identical to
section 302 of the House bill and section 302 of the Senate
amendment.
sec. 303. limitation of availability of funds for automatic
declassification of records over 25 years old
Section 303 limits the availability of funds authorized
to be appropriated in the National Foreign Intelligence Program
to $27.2 million for the purpose of carrying out Section 3.4 of
Executive Order 12958, which directs the automatic
declassification of documents older than 25 years. The
provision is similar to section 303 of the House bill. The
Senate amendment contained no similar provision.
The conferees urge the Director of Central Intelligence
to appoint one individual within the Community Management Staff
to oversee programs to implement Section 3.4 in the
intelligence community. This individual should be charged with
ensuring the programs are making progress on the substantial
task ahead of declassifying thousands of older documents while
adequately protecting intelligence sources and methods. The
individual should coordinate the preparation by the individual
NFIP programs of the programs' FY 1998 budget requests for
funds to implement Section 3.4.
sec. 304. application of sanctions laws to intelligence activities
Section 304 of the conference report extends until
January 6, 1998 the authority granted by section 303 of the
Intelligence Authorization Act for Fiscal Year 1996 for the
President to stay the imposition of an economic, cultural,
diplomatic, or other sanction or related action when the
President determines and reports to Congress that to proceed
without delay would seriously risk the compromise of an
intelligence source or method or an ongoing criminal
investigation. Section 304 is identical to Section 303 of the
Senate amendment and similar to section 304 of the House bill.
sec. 305. expedited naturalization
Section 305 provides for naturalization of certain
applicants without their having met the normal statutory
requirements relating to continuous residency and physical
presence in the United States and lack of recent affiliation
with the Communist Party or other totalitartion organization.
The section would apply to the spouse, son, or daughter of a
deceased alien whose death resulted from the intentional and
unauthorized disclosure of classified information (such as by
convicted spy Aldrich Ames) regarding the alien's participation
in U.S. intelligence activities. Existing law provides for
expedited naturalization for aliens who themselves have made
extraordinary contributions to the national security of the
United States or to U.S. intelligence activities.
Naturalization benefits under this provision would have
to be approved by the Director of Central Intelligence, the
Attorney General, and the Commissioner of Immigration and
Naturalization. Expedited naturalization would not be
available, however, to aliens whom the Attorney General
determines to have engaged in racial, religious, ethnic, or
political persecution or to constitute a danger to the
community or to the security of the United States.
Section 305 is identical to Section 305 of the House
bill. The Senate amendment had no similar provision.
sec. 306. sense of the congress on intelligence identities protection
act
Section 306 expresses the sense of the Congress that the
Intelligence Identities Protection Act of 1982 (50 U.S.C. 421
et seq.) should be enforced by appropriate law enforcement
agencies. The provision is identical to Section 306 of the
House bill. The Senate amendment had no similar provision.
The Intelligence Identities Protection Act makes it a
crime for anyone with authorized access to classified
information identifying a covert agent of the United States to
disclose any information identifying that agent to an
individual not authorized to receive classified information,
knowing that information identifies the covert agent and that
the U.S. is taking affirmative measures to conceal such covert
agent's intelligence relationship to the United States.
The conferees believe the Act should be enforced. The
provision reflects concern about the apparent unwillingness of
the Department of Justice to enforce the Act in several recent
cases involving public officials and journalists. The conferees
recognize that the decision whether to bring a prosecution
under the Identities Act involves careful consideration of:
whether each element of the offense can be proven; in those
cases in which it is determined that each element of the
offense can be proven, the need to deter future unauthorized
disclosures; and an assessment of the risk of additional
disclosures of classified information at trial. The conferees
believe the Classified Information Procedures Act, enacted by
Congress in 1980, can be used effectively to lessen the risks
with using classified information in criminal trials. The
conferees further believe that concerns about possible
additional disclosures at trial should not be the sole
determinant of whether the Identities Act is enforced.
In addition to the disclosures of agent identities, the
conferees are concerned about the apparent increase in the
public disclosure of sensitive national security information
generally. These disclosures have placed lives at risk and, in
at least one instance, may have contributed to a number of
deaths. The intelligence oversight committees have expressed
intense concern to both the DCI and the Justice Department and
will continue to exercise appropriate oversight into the
measures and policies for safeguarding sensitive information.
sec. 307. intelligence community procurement
Section 307 expresses the sense of the Congress that the
Director of Central Intelligence should continue to direct
elements of the intelligence community to award contracts in a
manner that would maximize the procurement of products produced
in the United States, when such action is compatible with the
national security interests of the United States, consistent
with operational and security concerns, and fiscally sound. A
provision similar to Section 307 has been contained in previous
intelligence authorization acts. Section 307 is similar in
intent to Sections 307 through 309 of the House bill. The
Senate amendment had no similar provision.
sec. 308. restrictions on intelligence sharing with the united nations
Section 308 reflects the desire of the conferees to
improve oversight over the sharing of U.S. intelligence with
the United Nations and the safeguarding of such intelligence by
the U.N. through improved security practices. The provision
prohibits sharing of intelligence with the U.N. unless the
President certifies that (1) procedures are in place to protect
information provided from unauthorized disclosure of U.S.
intelligence sources and methods, or (2) that providing such
information is in the U.S. national interest. It also requires
the President to provide semiannual reports to Congress on the
types and volume of intelligence information provided to the
U.N. and to report to Congress any unauthorized disclosure of
intelligence information provided.
The provision is identical to Section 310 of the House
bill. The Senate amendment had no similar provision.
sec. 309. prohibition on using journalists as agents or assets
Section 309 of the conference report would codify as
policy of the United States that the intelligence community may
not use as an agent or asset for intelligence collection
purposes any individual who is either: authorized by contract
or the issuance of press credentials to represent himself or
herself, either in the United States or abroad, as a
correspondent of a United States news media organization or is
officially recognized by a foreign government as a
representative of a United States media organization. The
prohibition against the use of such individuals as intelligence
agents or assets is not to exclude the voluntary cooperation of
any person who is aware that the cooperation is being provided
to an element of the intelligence community. Additionally,
under such procedures as the President shall promulgate, the
prohibition against the use of journalists may be waived by
either the President or the Director of Central Intelligence
(DCI) if he or she determines in writing that the waiver is
necessary to address the overriding national security interests
of the United States. The congressional intelligence committees
shall be notified of any waivers provided under this section.
Section 309 is similar to section 311 of the House bill.
The Senate amendment did not contain a similar provision.
The conferees recognize the dangers faced by journalists
working overseas if they are suspected of being spies. Section
309 is intended to mitigate that danger to the maximum extent
possible while providing the flexibility to deal with those
extremely rare circumstances in which the national security
interests of the United States can best be promoted by
utilizing the voluntary cooperation of a journalist.
sec. 310. report on intelligence community policy on protecting the
national information infrastructure against strategic attacks
Section 301 requires the DCI to submit a report to
Congress on the threats to the national information
infrastructure from information warfare and other
nontraditional attacks by foreign nations, groups, or
individuals or other groups or individuals. Section 310 is
similar to Section 719 of the Senate amendment except for
drafting modifications. The House bill did not contain a
similar provision.
Title IV--Central Intelligence Agency
sec. 401. elimination of double surcharge on the central intelligence
agency relating to employees who retire or resign in fiscal year 1998
or 1999 and who receive voluntary separation incentive payments
Section 401 corrects a discrepancy in existing law which
currently requires the CIA to make double payments to the Civil
Service Retirement and Disability Fund for those Agency
employees who take an early retirement. Section 4(a) of the
Federal Workforce Restructuring Act (FWRA) requires agencies
that offer retirement incentives, including CIA, to pay to the
Fund 9 percent of the final basic pay of each employee who
takes an early retirement. In addition, section (2)(i) of the
CIA Voluntary Separation Pay Act (CVSPA), enacted as part of
the Intelligence Authorization Act for Fiscal Year 1996,
requires the CIA to make a 15 percent payment for each employee
who takes an early retirement.
It was not Congress' intent to have CIA make double
payments totalling 24 percent to the Fund. Accordingly, Section
401 of the conference report provides that the 15 percent
payment CIA is required to pay under CVSPA is in lieu of the 9
percent payment required under the FWRA.
Section 401 is identical to section 402 of the House
bill. The Senate amendment did not contain a similar provision.
sec. 402. post-employment restrictions
Section 402 of the conference report requires the
Director of Central Intelligence to issue regulations requiring
designated employees of the Central Intelligence Agency to sign
written agreements committing not to represent or advise, for a
period of three years after that employee's termination of
employment with the CIA, the government or political party of
any foreign country.
Section 402 is similar to Section 304 of the Senate
amendment. The House bill did not contain a similar provision.
The conferees agreed to a provision that is narrower than the
Senate amendment in two respects. First, the written agreements
would be required only of certain designated officials. The
conferees expect that the DCI would designate senior Agency
officials or others who have had significant contact with
foreign governments such that their representation of a foreign
government immediately after their cessation of employment with
the Agency might create the appearance of a conflict of
interest. Second, the restrictions would apply only for a
period of three years, rather than five, following the
employee's departure from CIA. The conferees have also modified
the provision to allow the DCI to permit an employee to
represent or advise a foreign government if the DCI determines
that it would be in the best interest of the United States (for
example, to allow a former CIA employee to assist an allied
government with which the U.S. has a close liaison
relationship).
Title V--Department of Defense Intelligence Activities
sec. 501. executive branch oversight of budgets of elements of the
intelligence community
Section 501 requires the President to submit a report to
Congress on actions that have been taken to ensure adequate
oversight by the executive branch of the budget and
expenditures of the National Reconnaissance Office and other
elements of the intelligence community within the Department of
Defense. The provision is identical to Section 305 of the
Senate amendment. The House bill did not contain a similar
provision.
Title VI--Federal Bureau of Investigation
sec. 601. access to telephone records
Section 601 amends Sections 2703 and 2709 of Title 18,
United States Code to clarify that the ``telephone toll billing
records'' which the Federal Bureau of Investigation may
subpoena in certain law enforcement investigations include not
only long distance but also local billing records. Section 601
also amends Section 2707 of Title 18 to allow courts to award
punitive damages, and to institute disciplinary actions against
employees of U.S. agencies or departments, for violations of
Chapter 121 of Title 18.
Section 601 is identical to Section 401 of the Senate
amendment. The House bill did not contain a similar provision.
Title VII--Combatting Proliferation
Title VII contains a number of provisions relating to
proliferation of weapons of mass destruction. Sections 711
through 717 establish and define the duties of a Commission to
Assess the Organization of the Federal Government to Combat the
Proliferation of Weapons of Mass Destruction. The eight members
of the Commission are to be appointed by the President and the
congressional leadership. The Commission is required to conduct
a study of the organization of the federal government,
including the intelligence community, for combatting weapons
proliferation. Section 711 of the conference report sets forth
a specific list of issues for the Commission to address. The
Commission is required to submit a report to Congress not later
than eighteen months after enactment of this legislation. The
conferees modified Section 717 to provide that commission
expenses shall be paid out of funds available to the DCI for
the payment of compensation, travel allowances, and per diem of
CIA employees.
Section 721 of the conference report requires the
Director of Central Intelligence to submit a semiannual report
to Congress on the acquisition by foreign countries of
technology for the development of weapons of mass destruction
and advanced conventional munitions.
Title VII of the conference report is similar to Title VI
of the Senate amendment. The House bill contained no similar
provision.
Title VIII--Renewal and Reform of Intelligence Activities
Title VIII of the conference report contains provisions
intended to make the Intelligence Community operate more
effectively and more efficiently in the post-Cold War world.
These provisions would create two committees of the National
Security Council, one to provide better guidance to the
intelligence community and the other to provide senior-level
guidance on issues raised by the intersection of law
enforcement and intelligence, particularly relating to
terrorism, narcotics trafficking, and weapons proliferation. In
addition, provisions in this section strengthen the ability of
the Director of Central Intelligence to manage the Intelligence
Community by codifying his authority to participate in the
development of the budgets for defense-wide and tactical
intelligence and to concur or be consulted with respect to the
appointments of the heads of the principal NFIP agencies.
Giving the DCI a database of all intelligence activities and
requiring all NFIP elements to submit periodic budget execution
reports should enable the DCI to make better use of his
existing authorities--given to him by Congress in 1992--to
approve the budgets of NFIP elements and to transfer funds and
personnel with the concurrence of affected agency heads. The
conferees urge the DCI to be more assertive in using these
authorities. The bill also establishes a new Senate-confirmed
Deputy Director of Central Intelligence for Community
Management and three new Senate-confirmed Assistant Directors
of Central Intelligence to assist the DCI in managing the
Intelligence Community. Finally, the conference report
clarifies the authority of intelligence collection agencies to
provide support to law enforcement agencies.
Title VIII is similar to Title VII of the Senate
amendment. As originally reported by the Senate Intelligence
Committee as part of S. 1718, Title VII would have given the
DCI budget execution authority over most elements of the
National Foreign Intelligence Program; authority to reprogram
funds among NFIP programs over the objection of the affected
department head; authority to manage the national collection
activities of the intelligence community; and shared
responsibility--with the Secretary of Defense--for managing the
National Security Agency, the National Reconnaissance Office,
and the Central Imagery Office. After extensive discussions
with the Senate Armed Services Committee, the Senate
Intelligence Committee agreed to drop or modify a number of
these provisions.
Although the House bill, H.R. 3259, contained no similar
provisions, the House Permanent Select Committee on
Intelligence also undertook a major review of the roles,
functions, and structure of the intelligence community during
the 104th Congress. On April 9, 1996, the House Committee
released a study entitled ``IC21: Intelligence Community in the
21st Century,'' which set forth the findings and
recommendations of the Committee staff. On June 13, 1996, the
House Committee reported H.R. 3237, which would have enacted
many of the recommendations of the staff study and would have
made significant changes to the current organization of the
intelligence community. The House National Security Committee,
which took H.R. 3237 on sequential referral, deleted many of
these provisions, and the bill was never brought to the House
floor.
The conferees believe that the provisions of Title VIII
will help ensure that various elements of the intelligence
community operate more cohesively and without unnecessary
duplication. That the conferees agreed to more limited
organizational changes this year does not mean that some of the
more far-reaching changes proposed by S. 1718 and H.R. 3237 are
without merit. To the contrary, the provisions in both bills
were the culmination of exhaustive study by both committees as
well as by the Commission on the Roles and Capabilities of the
U.S. Intelligence Community, the 17-member congressionally
chartered commission which submitted its report to Congress on
April 1, 1996, and deserve further consideration. The conferees
specifically agreed that the DCI should study the establishment
of an Intelligence Community Reserve and that the DCI and the
Secretary of Defense should study the feasibility of creating a
single technical collection agency as well as other specified
agencies--the creation of which was recommended by the IC-21
study. The conferees anticipate that some of the other
provisions in S. 1718 and H.R. 3237 that were not enacted this
year will be taken up again in the 104th Congress.
section 801
Section 801 contains the short title VIII, the
``Intelligence Renewal and Reform Act of 1996.''
section 802
Section 802 amends Section 101 of the National Security
Act of 1947 to create a Committee on Foreign Intelligence of
the National Security Council. Section 802 is identical to
Section 702 of the Senate amendment.
section 803
Section 803 amends Section 109 of the National Security
Act to require the President to submit an annual report to
Congress on U.S. intelligence requirements and priorities and
the performance of the U.S. Intelligence Community. Section 803
is identical to Section 703 of the Senate amendment.
section 804
Section 804 amends Section 101 of the National Security
Act of 1947 to create a Committee on Transnational Threats of
the National Security Council. Section 804 is identical to
Section 704 of the Senate amendment.
The Committee on Transnational Threats would identify
transnational threats; develop strategies to respond to them in
a coordinated way; assist in resolving operational differences
among federal departments and agencies; develop policies and
procedures to ensure the effective sharing of information among
federal departments and agencies, including between the law
enforcement and foreign policy communities; and develop
guidelines for coordination of federal law enforcement and
intelligence activities overseas.
The conferees note, that in response to the growth in
global crime and the increasing number of U.S. statutes with
extraterritorial application, the Federal Bureau of
Investigation is significantly expanding its presence and
activities outside the United States. The conferees are
interested in the growth of these activities and the degree to
which Bureau investigations, recruitment of assets, liaison
with foreign intelligence services, and operational activities
are coordinated with U.S. intelligence agencies. Accordingly,
the conferees direct that, beginning no later than February 1,
1997, the Director of the Federal Bureau of Investigation shall
submit an annual report to the appropriate congressional
committees regarding the activities of the Bureau outside the
United States. The report shall specify the number of Bureau
personnel posted or detailed outside the United States and the
extend to which the Bureau plans to increase the number of such
personnel and/or the scope of its overseas activities. The
report should describe how Bureau overseas investigations,
asset handling, liaison, and operational activities are
coordinated with the Intelligence Community, and the extent to
which information derived from such activities is or will be
shared with the Intelligence Community. The intelligence
committees plan to monitor these matters closely.
section 805
Section 705 of the Senate amendment would have amended
Section 102 of the National Security Act of 1947 to add a new
subsection (d) to establish an Office of the Director of
Central Intelligence to include the DCI, the DDCI; the newly
established positions of Assistant DCI for Collection,
Assistant DCI for Analysis and Production, Assistant DCI for
Administration, the National Intelligence Council, and such
other offices as the DCI may designate.
The conferees agreed to accept the provisions in the
Senate amendment with the addition of a new Deputy Director for
Community Management (DDCI/CM), to whom the three new Assistant
Directors would report. This DDCI for Community Management will
be appointed by the President and confirmed by the Senate. This
Deputy will work under the direction of the DCI and is
responsible for assisting him in carrying out his
responsibilities as head of the Intelligence Community. The
DDCI/CM will manage a community management staff and direct
community-wide functions, including personnel, resources,
requirements, collection, research and development, and
analysis and production.
The conferees recognize that there is always the
potential that positions requiring Presidential appointment and
Senate confirmation may be subject to inappropriate political
pressures. This is of particular concern with respect to the
Assistant Director of Central Intelligence for Analysis and
Production. Nevertheless, the conferees believe the significant
advantages in terms of stature and congressional oversight
afforded by making this a confirmable position outweigh that
potential concern. Moreover, the intelligence oversight
committees will be vigilant in their efforts to ensure there is
no politicization of these positions. The extensive focus on
charges of politicization during the Senate confirmation of
Robert Gates to be the DCI in 1991 demonstrates the seriousness
with which the Congress views this issue. In reviewing
potential nominees for any of the confirmable positions within
the Intelligence Community and in the course of its oversight,
the Congress will look carefully for any evidence that an
individual has tailored his or her views to curry favor with
the Administration or Congress, or that an individual has
suffered retribution for failing to succumb to political
pressure.
As amended by Section 805, section 102(d)(3) of the
National Security Act directs the DCI to employ and utilize a
professional staff to assist him in carrying out his Community-
wide responsibilities. This staff would be part of the Office
of the DCI. The staff could, at the DCI's discretion, operate
as a unit, or be divided among the Deputy Director for
Community Management and the three new Assistant DCIs. The
conferees anticipate that this staff would replace the
functions of the current Community Management Staff and, while
it should include some detailees from the Intelligence
Community, would consist primarily of a core staff of career
professionals.
Section 805 also transfer the current section 102(a)(1)
of the National Security Act, which establishes the Central
Intelligence Agency, to a new section 102A of the National
Security Act. Section 102A would reference Section 103(d),
which sets forth the responsibilities of the Director of
Central Intelligence as head of the CIA.
section 806
Section 806, concerning the National Intelligence
Council, is identical to Section 706 of the Senate amendment
except that the NIC would also specifically be directed to
evaluate intelligence community-wide collection and production
activities.
section 807
Section 807 strengthens the DCI's authorities as head of
the intelligence community. It gives the DCI authority to
participate in the development by the Secretary of Defense of
the annual budgets for JMIP and TIARA; authority to approve
collection requirements, determine collection priorities, and
resolve conflicts in collection priorities levied on national
collection assets; and the right to be consulted by the
Secretary of Defense with respect to reprogrammings of funds
within the JMIP.
The provision also directs the DCI and the Secretary of
Defense to develop, no later than January 1, 1999, a database
of all intelligence and intelligence-related programs and
activities, which would specify the purpose of each program or
activity and include information for past and future years on
the types and quantities of resources planned, programmed,
budgeted, and executed in support of specific objectives. The
conferees noted that the Office of Science and Technology
Policy within the White House has recently developed a database
of all research and development activities within the federal
government and that this database has been invaluable for
identifying duplication among federal R&D programs. The
conferees believe that the DCI has been hampered in his ability
to manage the intelligence community by a lack of accurate and
comprehensive information about all intelligence community
activities. Development of a database for intelligence
activities should give the DCI crucial analytical and
supervisory tools he needs to provide better direction to and
control over U.S. intelligence programs. The conferees have
provided funding for the development of the database and urge
the DCI and the Secretary of Defense to move ahead as quickly
as possible.
Section 807 is similar to Section 707 of the Senate
amendment. In addition to minor drafting changes, the provision
has been modified to specifically require the DCI and the
Secretary of Defense to prescribe guidelines to require
reporting of budget execution data on all intelligence
activities to the DCI and the Secretary of Defense. This is to
ensure that this data is available to the DCI and Secretary of
Defense during FY 1997 and is not held up pending development
of the database.
In addition, a new subsection has been added requiring
the DCI to submit an annual report to Congress, for the next
three years, on the steps he has taken under Section 104(f) of
the National Security Act to rotate personnel, and to
consolidate personnel, administrative, and security programs,
among intelligence community elements. The DCI was given this
authority in 1992 but appears to be making little use of it.
section 808
Section 808 is identical to Section 708 of the Senate
amendment. The Section requires the DCI to submit to the
Committee on Foreign Intelligence and the appropriate
congressional committees an evaluation of the performance and
responsiveness of the NSA, NRO, and NIMA in meeting their
national missions.
section 809
Section 809(a) of the conference report adds a new
subsection (f) to Section 102 of the National Security Act of
1947 to establish the position of Assistant Director of Central
Intelligence for Collection. This position will be appointed by
the President and confirmed by the Senate.
The ADCI for Collection will be one of three new
Assistant Directors of Central Intelligence who will assist the
DCI in carrying out his Community-wide management
responsibilities. The ADCI for Collection will assist the DCI
in carrying out his intelligence collection responsibilities.
The ADCI for Collection will oversee all national intelligence
collection activities, including identifying targets, setting
priorities, and allocating resources where a particular
intelligence collection discipline offers a comparative
advantage. In performing this role, it is expected that the
ADCI for Collection will be responsible for the effective and
efficient operation of the interagency collection committees--
including those focusing on IMINT, HUMINT, SIGINT, an MASINT--
to ensure national collection requirements, priorities, and
resources are consistent with intelligence consumer needs.
Further, the ADCI for Collection will rely upon the ADCI for
Analysis and Production for guidance on current collection
requirements and for an assessment of the need for the
acquisition of future collection capabilities. The ADCI for
Collection will also assist in implementing the DCI's
authorities regarding the procurement and operation of national
collection systems under development by other agencies and
assist the DCI in formulating plans and budgets of national
collection activities.
Section 809(b) requires the DCI and the Deputy Secretary
of Defense to submit, no later than 90 days after enactment of
this Act, a report on their efforts to coordinate and, where
practicable, consolidate the human intelligence collection
activities of the clandestine collection elements of the
Defense HUMINT Service and CIA's Directorate of Operations
(DO). The conferees note that the Aspin-Brown Commission
recommended that the clandestine HUMINT collection activities
of the Defense HUMINT Service be consolidated into the DO. The
report should address the desirability of such a consolidation.
section 810
Section 810 adds a new section (g) to Section 102 of the
National Security Act of 1947 to establish the position of
Assistant Director of Central Intelligence for Analysis and
Production. This position will be appointed by the President
and confirmed by the Senate.
The ADCI for Analysis and Production will assist the DCI
in overseeing analysis and production of intelligence by the
Intelligence Community, establish priorities for analysis, and
monitor the allocation of resources in order to eliminate
unnecessary duplication in analysis and production thus
ensuring timely delivery of intelligence products to consumers.
Intelligence analysis and production of analytical
products is broadly dispersed across the Intelligence
Community. Although some competitive analysis is necessary and
some products are needed to serve only the needs of a single
department or agency, most analysis supports the entire policy
community. The DCI currently lacks an effective mechanism to
review and supervise adequately intelligence analysis and
production community-wide in order to ensure the most effective
allocation of resources and to eliminate unnecessary
duplication. Intelligence producers have worked together
voluntarily to reduce overlaps, but the conferees believe that
a better management structure is needed. The new ADCI for
Analysis and Production would provide the basis for this
structure. The conferees do not expect the ADCI for Analysis
and Production to perform intelligence production functions or
roles similar to those currently performed by the Chairman and
members of the National Intelligence Council, CIA's Deputy
Director for Intelligence, the Assistant Secretary of State for
Intelligence & Research, or DIA's Director of Production.
section 811
Section 811 adds a new subsection (h) to Section 102 of
the National Security Act of 1947 to establish the position of
Assistant Director of Central Intelligence for Administration.
This position will be appointed by the President and confirmed
by the Senate.
Numerous studies, including the Aspin-Brown Commission,
have urged greater consolidation of personnel and
administrative functions and use of common standards across the
Intelligence Community. The largest agencies, nevertheless,
continue to maintain separate administrative, personnel,
security, and training systems. The Aspin-Brown Commission
concluded ``While the Commission is willing to accept that some
latitude is needed for individual agencies to satisfy their
unique requirements, we see no reason for all of these programs
and activities to be administered separately, or, at least
without greater uniformity.'' The conferees agree with this
conclusion.
The role of the proposed ADCI for Administration would be
to assist the DCI in bringing about this uniformity. The ADCI
for Administration would coordinate the various personnel
management systems, information systems, telecommunications
systems, finance and accounting services, and security programs
for the Intelligence Community. The conferees expect that the
ADCI for Administration would also assist the DCI in exercising
his authorities under Section 104(f) of the National Security
Act to consolidate personnel, administrative, and security
programs of Intelligence Community elements.
section 812
Section 812 amends Section 5315 of Title 5, United States
Code, to place the positions of Deputy Director of Central
Intelligence and Deputy Director of Central Intelligence for
Community Management at Executive Level III and the positions
of Assistant Director of Central Intelligence for Collection,
Assistant Director of Central Intelligence for Analysis and
Production, Assistant Director of Central Intelligence for
Administration, at Level IV of the Executive Schedule. Section
812 is similar to Section 712 of the Senate amendment.
section 813
Section 813, which establishes the statutory position of
General Counsel of the CIA, is identical to Section 713 of the
Senate amendment, except that the conferees have modified the
provision to provide that it shall take effect no later than
six months from the date of enactment of this Act or upon the
appointment of a General Counsel other than the individual
occupying the position on the date of enactment of this Act,
whichever is sooner. Thus, whoever occupies the non-statutory
position of General Counsel at the time this provision is
enacted may continue to occupy that position for up to six
months after enactment before a formal nomination must be
submitted to the Senate. Nothing in the provision would prevent
the President from nominating the individual serving as non-
statutory General Counsel at the time of enactment for the
statutory General Counsel position. It is the intent of the
conferees, however, that the President either nominate this
individual to be the statutory General Counsel within six
months of the date of enactment of this Act or, if this
individual leaves the position of non-statutory General Counsel
in less than six months, that the President nominate another
individual to fill the statutory General Counsel position.
The conferees do not intend in any way that the
establishment of the statutory General Counsel position limit
the ability of the CIA Inspector General to obtain independent
legal advice from members of the IG's staff or to otherwise
carry out the duties of that office as provided for in section
17 of the CIA Act of 1949 (50 USC 403q). However, where an IG
determination or report includes a legal opinion that differs
from that of the CIA's Office of General Counsel, that
difference of opinion should be noted. This would apply to
reports presented to the DCI, briefings for Congress, or any
other context in which IG legal opinions are presented.
section 814
Section 814 creates a new Section 105A of the National
Security Act that authorizes intelligence community elements to
collect information about non-U.S. persons outside the United
States at the request of U.S. law enforcement agencies. The
section is identical to Section 715 of the Senate amendment,
except that the Defense Intelligence Agency has been added to
the list of Department of Defense agencies to which this
provision applies.
section 815
Section 815 amends Section 106 of the National Security
Act to require the DCI to concur in, or be consulted regarding,
the appointment of the heads of the principal NFIP elements.
Section 815 is identical to Section 716 of the Senate
amendment, with two modifications.
First, the Director of the National Imagery and Mapping
Agency has been added to the list of agency heads for which DCA
concurrence is required. This authority had originally been
included separately in provisions relating to the appointment
of the Director of NIMA. The conferees note that the conference
report accompanying the National Defense Authorization Act for
Fiscal Year 1997 also codifies the DCI's authority to concur in
the appointments of the heads of NSA, NRO, and NIMA in Section
201 of Title 10, U.S. Code. The DoD bill also requires the DCI
to provide to the Secretary of Defense an annual evaluation of
the performance of the heads of NSA, NRO, and NIMA in
fulfilling their responsibilities under the NFIP.
In addition, the conferees have modified the original
Senate language regarding DCI consultation on the Assistant
Director, National Security Division of the Federal Bureau of
Investigation. This individual is selected by the Attorney
General upon the recommendation of the Director of FBI. The
bill now calls for timely notice to the DCI of the Director of
FBI's recommendation regarding this position. The conferees
understand that for the purposes of this section timely notice
means notice will be provided at a sufficiently early stage in
the process that consultation is still meaningful and that the
DCI will be provided sufficient time to respond to the
notification prior to the recommendation being forwarded to the
Attorney General. At the same time, the DCI should not use this
opportunity for consultation as a means of delaying this
process.
The conferees also emphasize that, by requiring the DCI
to be consulted regarding the appointment of the head of the
FBI's National Security Division, they do not intend to give
the DCI control over FBI law enforcement activities.
Nevertheless, the head of the National Security Division
manages a significant portion, both in budgetary and
substantive terms, of the NFIP, and the conferees believe it is
wholly appropriate that the DCI have some voice in his or her
appointment.
section 816
Section 816 of the conference report directs the DCI, in
consultation with the Deputy Secretary of Defense, to study the
appropriate organization and management of intelligence
collection for the future. A report on the study is to be
forwarded to the President, the Secretary of Defense, and the
appropriate Congressional committees no later than April 15,
1997. The conferees expect that the Assistant DCI for
Collection will manage the production of this study on behalf
of the DCI.
The study should examine how the Intelligence Community's
collection apparatus can best function in the future, and not
merely perform an examination of the effectiveness of the
Intelligence Community at present or in the recent past, except
to the extent such an examination illuminates the direction
that must be taken in the future. The section specifies that
the study must specifically include, but need not be limited
to, feasibility studies of three changes to the current
Intelligence Community structure: (1) the establishment of a
Clandestine Service; (2) the establishment of a Technical
Collection Agency; and (3) the establishment of a Technology
Development Office.
The study should consider the merits of establishing a
Clandestine Service responsible for the clandestine collection
of intelligence through human sources and other clandestine
means; the carrying out of covert action as directed by the
President; and acting as the DCI's principal entity in carrying
out liaison with foreign intelligence and security services.
The study should keep in mind that this particular entity, the
Clandestine Service (unlike the others under consideration),
would have roles and missions outside the realm of intelligence
collection. The study should also pay particular attention to
the fact that a Clandestine Service's activities are, generally
speaking, intrinsically risky and require the close oversight
of the DCI. The study should also consider how military
personnel might be integrated into a Clandestine Service in a
manner allowing their proper career development and their being
able to function as clandestine collectors under operational
guidelines developed under DCI authorities.
The study should consider the costs and benefits
associated with consolidating technical collection activities
and exploitation into a single agency, not necessarily in one
physical location but under a unified management structure.
This agency would include all current signals intelligence,
imagery intelligence and measurement and signatures
intelligence collection and time-sensitive exploitation
activities, including the operation of satellite collection
systems. The study should consider whether consolidation would
improve synergistic collection at the operator level, integrate
multi-source tasking at the collection management level, and
achieve cross-discipline trade-offs at the resources management
level. The study should consider in particular how the agency
as proposed would further or hinder these goals, and whether
such a consolidation would further or hinder other identified
goals for intelligence collection. This study should also
examine whether the first-phase analysts exploiting the data
collected for time-sensitive reporting should be integrated
with the all-source analytical community and, if so, how.
The study should also consider the costs and benefits of
consolidating research, development and acquisition activities
for reconnaissance systems into a single agency responsible
primarily for space-based, airborne and maritime reconnaissance
systems. The study should consider whether consolidation would
improve coherent development and complementary architectures,
particularly in the space and air realms; promote development
of common ground processing and dissemination capabilities;
reduce unnecessary duplication; and promote the sharing of
appropriate technologies.
Section 816 is a new provision. No similar provision was
included in either the House bill or Senate amendment.
section 817
Section 817 of the conference report requires the DCI to
submit a report within four months of enactment describing the
current efforts to establish a Surge Augmentation Program and
making appropriate legislative recommendations.
The conferees believe that significant reductions in
personnel and other resources throughout the Intelligence
Community over the past few years, combined with significant
increases in the need for intelligence information, have
created a shortfall in analytic resources, especially in the
areas of all-source analysis and linguists. Ad hoc crises, such
as Rwanda and Somalia, further underscore the need for the
Intelligence Community to be flexible enough to ``surge''
resources to meet immediate needs and to have a capability to
augment existing resources in order to develop and maintain a
worldwide ``base'' of knowledge. Such an intelligence ``base''
should allow for identification of trends and other changes
that could portend future actions by U.S. policy makers. This
warning function becomes critical both to the policy maker by
providing adequate time to manage an impending situation before
it develops into a crisis and to the military commander in
cases where the proper policy response includes military
activity. DCI Deutch has been addressing the same concerns in
his ``Hard Target/Global Coverage'' efforts.
The conferees note that it is unlikely that internal
Intelligence Community resources will ever be robust enough to
meet all of the requirements that will be levied on them. The
ability to augment existing resources with individuals who have
intelligence experience and/or have maintained a level of
substantive knowledge could prove invaluable in addressing what
appears to be an ongoing pattern of small, often regional
crises and situations. In this respect, a portion of the Surge
Augmentation Program, or ``Intelligence Community Reserve,''
could operate similarly to existing military intelligence
reserve resources, with periodic training and service within
the Community in order to maintain expertise. In some cases,
individuals who are our country's experts in certain areas are
likely to be outside of the Intelligence Community--in industry
or academia, for example--and should remain so in order to
maintain their level of knowledge and contacts worldwide. In
those cases, however, it would be extremely beneficial for the
Intelligence Community to have access to this knowledge on an
occasional basis. Although it is not envisioned that someone
outside of the Intelligence Community would be asked to
``serve'' the Intelligence Community Reserve in the same
capacity as those individuals who have had a prior association,
it is envisioned that these ``experts'' might be held on a type
of retainer requiring them to notify the Intelligence Community
on a regular basis of significant trends and changes in their
issue area. In addition, particular attention should be paid to
building a linguistic ``surge'' capability, especially in more
unique or less known languages, for use during crisis periods.
Finally, the conferees believe that the Intelligence Community
Reserve should be managed and funded at the Community level,
ensuring that all valid ``surge'' requirements by all agencies/
offices within the Intelligence Community are planned for and
addressed as necessary.
Due to the complexities of issues such as pay, security,
training and support, the conferees are not establishing the
Reserve in legislation at this time. Instead, the DCI is
directed to provide a report on current efforts and any
legislation that might be considered by Congress.
Finally, the conferees note that the Intelligence
Community Reserve is not envisioned as a panacea for addressing
shortfalls in intelligence analytical expertise. Clearly,
specific attention must be paid toward maintaining an
experienced analytic workforce in specific subject areas that
are of national security and policy concern.
Title IX--Miscellaneous Provisions
SEC. 901. AUTHORIZATION OF FUNDING PROVIDED BY 1996 SUPPLEMENTAL
APPROPRIATIONS ACT
Section 901 of the conference report is identical to
section 601 of the House bill. The Senate amendment did not
contain a similar provision. The section provides that funds
appropriated as part of the supplemental appropriation in the
Omnibus Consolidated Rescissions and Appropriations Act of 1996
for intelligence, and intelligence-related activities in Bosnia
shall be deemed to be specifically authorized for purposes of
Section 504 of the National Security Act.
Provisions not included in the Conference Report
Multiyear leasing
Section 401 of the House bill would have amended the
Central Intelligence Agency Act of 1949 to authorize the CIA to
enter into multiyear leases for buildings and other facilities.
However, an amendment added on the House floor would have
required that the leases be fully funded in advance. As this
requirement would have vitiated the effectiveness of the
provision, the conferees agreed to drop it.
Intelligence Community personnel reforms
On April 23, 1996 DCI Deutch unveiled a CIA human
resources reform initiative that will affect Intelligence
Community personnel at the CIA and in various DoD agencies. The
presentation of the personnel reform package had been long
awaited by both intelligence committees as the DCI had stated
on numerous occasions the priority he was attaching to
revamping an ancient and antiquated personnel system. The
sweeping nature of the CIA human resources reform proposal and
the initial lack of specificity concerning its contents led the
House Committee to include a provision in its bill (Section
403) to prevent expenditure of any funds until the Congress was
fully briefed. The Senate amendment did not contain a similar
provision. The CIA has now provided extensive briefings to both
committees regarding its program; therefore, the conferees have
agreed to drop the House provision.
The conferees have provided funding for the CIA personnel
reform initiative albeit at a level substantially below the
requested amount. The funding level is contained in the
classified schedule of authorizations. The conferees concur
with the CIA's view that the initial priorities should be the
acquisition and installation of a new Human Resources
Information System, the completion of a job skills analysis and
implementation of associated training and educational programs.
The conferees initially understood that the CIA would
issue a ``Request for Proposal'' (RFP) for the Human Resources
Information System software component, but without informing
the Congress, the CIA changed course and decided not to compete
the contract. It is the view of the conferees that RFP's help
to immunize the CIA from potential protests and enable the CIA,
in the most transparent way possible, to identify the best
contractor at the lower cost. Apparently, following a
refinement of the requirements and the completion of an
exhaustive market survey of the various software packages
available, it was determined that only one vendor met and
demonstrated the CIA's software requirements. Thus, the CIA
expects to issue a single source contract in keeping with
standard contracting procedures. It is the conferees
understanding that the single source contract is for the
acquisition of the software package only and that the systems
integration, systems engineering and implementation components
of the Human Resources Information System will be competitively
bid. The conferees expect to be kept fully and currently
informed of this process.
FOIA exemptions for certain defense agencies
Section 501 of the House bill would have amended and
consolidated the information disclosure statutes for the
Defense Intelligence Agency (DIA) and the National
Reconnaissance (NRO), 10 U.S.C. 424 and 425 respectively, to
permit the two organizations to withhold from release in
response to Freedom of Information Act (FOIA) requests
unclassified information relating to those agencies'
organization, functions, and personnel. The Senate amendment
did not contain a similar provision. The House recedes.
The conferees note that Section 1112 of the National
Defense Authorization Act for Fiscal Year 1997 included a
provision, added at conference, that is similar to Section 501
of the House bill but that covers personnel and organizational
information of the National Imagery and Mapping Agency (NIMA)
as well as of NRO and DIA. The conferees agree that it is
legitimate to protect from disclosure personnel information
relating to DIA, NRO, and NIMA because their employees may be
counterintelligence targets. But the conferees have some
reservations about providing a blanket exemption against
disclosure of unclassified information about the organization
and functions of these agencies. The conferees note that, when
the NRO's information disclosure statute was enacted in 1992,
Congress specifically declined to extend the provision to cover
unclassified organizational information about the NRO.
The conferees understand that the Senate Armed Services
Committee and the House National Security Committee may
reconsider whether the blanket exemption for all organizational
and functional information is appropriate. In the interim, the
conferees urge DIA, NRO, and NIMA to use the exemption
sparingly to protect only that information which is truly
sensitive and not as a reason to deny all FOIA requests for
information about their organization or functions.
Tier III minus UAV
Section 502 of the House bill authorized an additional
$22 million for the Tier III minus unmanned aerial vehicle. The
Senate amendment did not contain a similar provision. The
authorization level for this program has been included in the
Classified Schedule of Authorizations, and accordingly the
conferees agreed that the provision is not necessary.
Economic espionage
Title V of the Senate amendment contained provisions
criminalizing theft of economic proprietary information
undertaken on the behalf of, or with the intent to benefit, a
foreign government or its agent. The House bill did not contain
similar provisions.
This legislation was initially introduced by Senator
Arlen Specter and Senator Herb Kohl as S. 1557 (the Economic
Espionage Act), along with additional legislation, S. 1556 (the
Industrial Espionage Act), to provide a broader criminal
statute for general industrial espionage. The provisions of S.
1557 were then adopted by the Senate Select Committee on
Intelligence as part of S. 1718, the Intelligence Authorization
Act for fiscal year 1997. Subsequent to the SSCI action on this
provision, the Senate and House adopted legislation
encompassing provisions similar to both the Economic Espionage
Act and the Industrial Espionage Act. Thus, the conferees
agreed to drop this provision from the Intelligence
Authorization Act.
Budget disclosure
Section 718 of the Senate amendment contained a provision
requiring the President, as part of his annual budget
submission to Congress, to provide in unclassified form the
total amount appropriated by Congress for all intelligence and
intelligence-related activities during the current fiscal year
and the total amount requested in the budget for the next
fiscal year. The House bill contained no similar provision. The
Senate agreed to recede to the House.
Office of Congressional Affairs of the DCI
Section 714 of the Senate amendment would have
established an Office of Congressional Affairs of the DCI to
coordinate the congressional affairs activities of the various
elements of the Intelligence Community. The House bill
contained no similar provision. The conferees have decided not
to require the creation of this office in statute. The
conferees agree, however, that there is occasionally a need for
a coordinated Community response to Congressional inquiries and
recommend that the DCI specifically designate the Director of
the Office of Congressional Affairs within the CIA as the focal
point for such inquiries from Congress. The conferees do not
intend by this recommendation to preclude the individual
offices of congressional affairs within the elements of the
Intelligence Community from responding directly to requests
from the congressional committees.
National Imagery and Mapping Agency
Section 801 of the Senate amendment would have added a
new section to the National Security Act specifying the
national museum and collection tasking authority for the new
National Imagery and Mapping Agency. The House bill contained
no similar provisions.
The conferees noted that Section 1112 of the National
Defense Authorization Act for Fiscal Year 1997, which
establishes and sets forth the missions for NIMA, contains
similar provisions. These provisions were added to the Senate
version of the Act by the Senate Intelligence Committee, which
took the Senate bill on sequential referral from the Senate
Armed Services Committee in order to examine the provisions
relating to NIMA. Accordingly, the conferees agreed to exclude
Section 801 from the conference report.
From the Permanent Select Committee on
Intelligence, for consideration of the House
bill and the Senate amendment, and
modifications committed to the conference:
Larry Combest,
Robert K. Dornan,
Bill Young,
James V. Hansen,
Jerry Lewis,
Porter J. Goss,
Bud Shuster,
Bill McCollum,
Michael N. Castle,
Norman D. Dicks,
Bill Richardson,
Julian C. Dixon,
Robert Torricelli,
Ronald D. Coleman,
David Skaggs,
Nancy Pelosi,
From the Committee on National Security, for
consideration of defense tactical intelligence
and related agencies:
Bob Stump,
Floyd Spence,
Managers on the Part of the House.
Arlen Specter,
Dick Lugar,
Richard Shelby,
Mike DeWine,
Jon Kyl,
J.M. Inhofe,
Kay Bailey Hutchison,
Bill Cohen,
Hank Brown,
Bob Kerrey,
John Glenn,
Richard H. Bryan,
Bob Graham,
John F. Kerry,
Max Baucus,
J. Bennett Johnston,
Charles S. Robb,
From the Committee on Armed Services:
Strom Thurmond,
Sam Nunn,
Managers on the Part of the Senate.
Senate Intelligence Committee Releases Bipartisan Report Detailing Foreign Intelligence Threats
WASHINGTON – Today, Senate Select Committee on Intelligence Chairman Mark R. Warner (D-VA) and Vice Chairman Marco...