[Congressional Record Volume 140, Number 137 (Tuesday, September 27, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                     CONFERENCE REPORT ON H.R. 4299

  Mr. GLICKMAN submitted the following conference report and statement 
on the bill (H.R) 4299), to authorize appropriations for fiscal year 
1995 for intelligence and intelligence-related activities of the U.S. 
Government, the community management account, and the Central 
Intelligence Agency retirement and disability system, and for other 
purposes:

                  Conference Report (H. Rept. 103-753)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4299), to authorize appropriations for fiscal year 1995 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 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 AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Intelligence Authorization Act for Fiscal Year 1995''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. 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. Intelligence community contracting.
Sec. 304. Repeal of restriction on intelligence cooperation with South 
              Africa.
Sec. 305. Report regarding mandatory retirement for expiration of time 
              in class.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Illness or injury requiring hospitalization.
Sec. 402. Inspector General of the Central Intelligence Agency.
Sec. 403. Advanced information presentation project.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

Sec.  501. Central Imagery Office.
Sec. 502. Exception to public availability of certain Department of 
              Defense maps, charts, and geodetic data. 
Sec. 503. Disclosure of governmental affiliation by Department of 
              Defense intelligence personnel outside of the United 
              States.
Sec. 504. Exception from authority for obligation of certain 
              unauthorized fiscal year 1994 Defense appropriations.

  TITLE VI--CONSTRUCTION OF FACILITIES FOR THE INTELLIGENCE COMMUNITY

Sec. 601. Limitations on funding of the National Reconnaissance Office.
Sec. 602. Limitation on construction of facilities to be used primarily 
              by the intelligence community.
Sec. 603. Identification of constituent components of base intelligence 
              budget.
Sec. 604. Definitions.

                  TITLE VII--CLASSIFICATION MANAGEMENT

Sec. 701. Classification and declassification of information.
Sec. 702. Declassification plan.

              TITLE VIII--COUNTERINTELLIGENCE AND SECURITY

Sec. 801. Short title.
Sec. 802. Access to classified information.
Sec. 803. Rewards for information concerning espionage.
Sec. 804. Criminal forfeiture for violation of certain espionage laws.
Sec. 805. Denial of annuities or retired pay to persons convicted of 
              espionage in foreign courts involving United States 
              information.
Sec. 806. Postemployment assistance for certain terminated intelligence 
              employees of the Department of Defense.
Sec. 807. Providing a court order process for physical searches 
              undertaken for foreign intelligence purposes.
Sec. 808. Lesser criminal offense for unauthorized removal of 
              classified documents.
Sec. 809. Reports on foreign industrial espionage.
Sec. 810. Counternarcotics targets funding.
Sec. 811. Coordination of counterintelligence activities.

TITLE IX--COMMISSION ON THE ROLES AND CAPABILITIES OF THE UNITED STATES 
                         INTELLIGENCE COMMUNITY

Sec. 901. Establishment.
Sec. 902. Composition and qualifications.
Sec. 903. Duties of the Commission.
Sec. 904. Reports.
Sec. 905. Powers.
Sec. 906. Personnel matters.
Sec. 907. Payment of Commission expenses.
Sec. 908. Termination of the Commission.
Sec. 909. Definitions.
                    TITLE I--INTELLIGENCE ACTIVITIES

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1995 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 National Reconnaissance Office.
       (6) The Department of the Army, the Department of the Navy, 
     and the Department of the Air Force.
       (7) The Department of State.
       (8) The Department of the Treasury.
       (9) The Department of Energy.
       (10) The Federal Bureau of Investigation.
       (11) The Drug Enforcement Administration.
       (12) The Central Imagery Office.

     SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

       (a) Specifications of Amounts and Personnel Ceilings.--The 
     amounts authorized to be appropriated under section 101, and 
     the authorized personnel ceilings as of September 30, 1995, 
     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. 
     4299 of the One Hundred Third 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. COMMUNITY MANAGEMENT ACCOUNT.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Community Management Account of 
     the Director of Central Intelligence for fiscal year 1995 the 
     sum of $86,900,000. Within such amounts authorized, funds 
     identified in the classified Schedule of Authorizations 
     referred to in section 102(a) for the Advanced Research and 
     Development Committee and the Environmental Task Force shall 
     remain available until September 30, 1996.
       (b) Authorized Personnel Levels.--The Community Management 
     Account of the Director of Central Intelligence is authorized 
     241 full-time personnel as of September 30, 1995. Such 
     personnel of the Community Management Account may be 
     permanent employees of the Community Management Account or 
     personnel detailed from other elements of the United States 
     Government.
       (c) Reimbursement.--During fiscal year 1995, any officer or 
     employee of the United States or a member of the Armed Forces 
     who is detailed to the Community Management Staff from 
     another element of the United States Government shall be 
     detailed on a reimbursable basis, except that any such 
     officer, employee or member may be detailed on a 
     nonreimbursable basis for a period of less than one year for 
     the performance of temporary functions as required by the 
     Director of Central Intelligence.
 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated for the Central 
     Intelligence Agency Retirement and Disability Fund for fiscal 
     year 1995 the sum of $198,000,000.
                     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 laws of the United States.

     SEC. 303. 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. 304. REPEAL OF RESTRICTION ON INTELLIGENCE COOPERATION 
                   WITH SOUTH AFRICA.

       Section 107 of the Intelligence Authorization Act for 
     Fiscal Year 1987 (Public Law 99-569) is repealed.

     SEC. 305. REPORT REGARDING MANDATORY RETIREMENT FOR 
                   EXPIRATION OF TIME IN CLASS.

       (a) Report Required.--Not later than December 1, 1994, the 
     Director of Central Intelligence shall submit a report to the 
     committees of Congress specified in subsection (d) on the 
     advisability of providing for mandatory retirement for 
     expiration of time in class in a manner comparable to that 
     established by the applicable provisions of section 607 of 
     the Foreign Service Act of 1980 (22 U.S.C. 4007) for all 
     civilian employees of the Central Intelligence Agency, the 
     National Security Agency, the Defense Intelligence Agency, 
     the National Reconnaissance Office, the Central Imagery 
     Office, and the intelligence elements of the Army, Navy, Air 
     Force, and Marine Corps.
       (b) Required Contents.--The report required by subsection 
     (a) shall include--
       (1) an assessment of the feasibility of instituting such a 
     mandatory retirement policy and of alternative means to 
     achieve the objectives of such a mandatory retirement policy;
       (2) an assessment which the Secretary of Defense shall 
     conduct of the impact of such a mandatory retirement policy 
     for intelligence community civilian employees on all other 
     Department of Defense civilian employees; and
       (3) any appropriate legislative recommendations.
       (c) Coordination.--The report required by subsection (a) 
     shall be coordinated as appropriate with elements of the 
     intelligence community (as defined in section 3(4) of the 
     National Security Act of 1947 (50 U.S.C. 401(4)).
       (d) Committees of Congress.--The committees of Congress 
     referred to in subsection (a) are the Committees on Armed 
     Services of the Senate and House of Representatives, the 
     Defense Subcommittees of the Committees on Appropriations of 
     the Senate and House of Representatives, the Select Committee 
     on Intelligence of the Senate, and the Permanent Select 
     Committee on Intelligence of the House of Representatives.
                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     SEC. 401. ILLNESS OR INJURY REQUIRING HOSPITALIZATION.

       Section 4(a)(5) of the Central Intelligence Agency Act of 
     1949 (50 U.S.C. 403(e)(a)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``, not the result of vicious habits, 
     intemperance, or misconduct on his part,'';
       (B) by striking ``he shall deem'' and inserting ``the 
     Director deems'';
       (C) by striking ``section 10 of the Act of March 3, 1933 
     (47 Stat. 1516; 5 U.S.C. 73b)'' and inserting ``section 5731 
     of title 5, United States Code'';
       (D) by striking ``his recovery'' and inserting ``the 
     recovery of such officer or employee''; and
       (E) by striking ``his return to his post'' and inserting 
     ``the return to the post of duty of such officer or 
     employee'';
       (2) in subparagraph (B), by striking ``his opinion'' both 
     places it appears and inserting ``the opinion of the 
     Director''; and
       (3) in subparagraph (C), by striking ``, not the result of 
     vicious habits, intemperance, or misconduct on his part,''.

     SEC. 402. INSPECTOR GENERAL OF THE CENTRAL INTELLIGENCE 
                   AGENCY.

       Section 17 of the Central Intelligence Agency Act of 1949 
     (50 U.S.C. 403q) is amended--
       (1) in subsection (b)(1)--
       (A) by striking ``or'' after ``analysis,''; and
       (B) by striking the period at the end thereof and inserting 
     ``, or auditing.'';
       (2) in subsection (c)(1), by striking ``to conduct'' and 
     inserting ``to plan, conduct'';
       (3) in subsection (d)(1)--
       (A) by striking ``June 30 and December 31'' and inserting 
     ``January 31 and July 31'';
       (B) by striking ``period.'' at the end of the first 
     sentence and inserting ``periods ending December 31 (of the 
     preceding year) and June 30, respectively.''; and
       (C) by inserting ``of receipt of such reports'' after 
     ``thirty days'';
       (4) in subsection (d)(3)(C), by inserting ``inspection, or 
     audit,'' after ``investigation,'';
       (5) in subsection (d)(4), by inserting ``or findings and 
     recommendations'' after ``report''; and
       (6) in subsection (e)(6)--
       (A) by striking ``it is the sense of Congress that''; and
       (B) by striking ``should'' and inserting ``shall''.

     SEC. 403. ADVANCED INFORMATION PRESENTATION PROJECT.

       Of the funds made available under this Act, the Director of 
     Central Intelligence is authorized during fiscal year 1995 to 
     expend not more than $3,000,000 to develop products to 
     demonstrate multimedia and graphical data interface 
     techniques on topics of general interest to policy makers and 
     the public. The products shall utilize unclassified 
     government information, augmented if appropriate by 
     commercially available information, and the project shall be 
     limited to the development of not more than six products. In 
     carrying out this section, the Director may acquire 
     commercially available technology. Not later than August 1, 
     1995, the Director shall submit the products developed under 
     this section to the Permanent Select Committee on 
     Intelligence of the House of Representatives and the Select 
     Committee on Intelligence of the Senate.
         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

     SEC. 501. CENTRAL IMAGERY OFFICE.

       (a) Amendments of the National Security Act of 1947.--(1) 
     Section 3(4)(E) of the National Security Act of 1947 (50 
     U.S.C. 401a(4)(E)) is amended by striking out ``the central 
     imagery authority within the Department of Defense'' and 
     inserting in lieu thereof ``the Central Imagery Office''.
       (2) Section 105(b)(2) of such Act (50 U.S.C. 403-5(b)(2)) 
     is amended by striking out ``a central imagery authority'' 
     and inserting in lieu thereof ``the Central Imagery Office''.
       (3) Section 106(b) of such Act (50 U.S.C. 403-6(b)) is 
     amended--
       (A) in the subsection caption, by striking out ``Central 
     Imagery Authority'' and inserting in lieu thereof ``Central 
     Imagery Office''; and
       (B) by striking out ``central imagery authority'' and 
     inserting in lieu thereof ``Central Imagery Office''.
       (b) Title 10, United States Code.--(1) Chapter 83 of title 
     10, United States Code, is amended as follows:
       (A) By amending the heading of the chapter to read as 
     follows:

 ``CHAPTER 83--DEFENSE INTELLIGENCE AGENCY AND CENTRAL IMAGERY OFFICE 
                         CIVILIAN PERSONNEL''.

       (B) In section 1601--
       (i) by inserting ``and the Central Imagery Office'' after 
     ``Defense Intelligence Agency'' in subsection (a);
       (ii) by inserting ``or the Central Imagery Office'' after 
     ``outside the Defense Intelligence Agency'' and inserting ``, 
     the Central Imagery Office,'' after ``to the Defense 
     Intelligence Agency'' in subsection (d); and
       (iii) by inserting ``and the Central Imagery Office'' after 
     ``Defense Intelligence Agency'' in subsection (e).
       (C) In section 1602, by inserting ``and Central Imagery 
     Office'' after ``Defense Intelligence Agency''.
       (D) In section 1604--
       (i) by inserting ``and the Central Imagery Office,'' after 
     ``Defense Intelligence Agency'' in subsection (a)(1);
       (ii) by inserting ``or the Central Imagery Office'' after 
     ``Defense Intelligence Agency'' in both places it occurs in 
     the second sentence of subsection (b);
       (iii) by inserting ``or the Central Imagery Office'' after 
     ``Defense Intelligence Agency'' in subsection (c);
       (iv) by inserting ``and the Central Imagery Office'' after 
     ``Defense Intelligence Agency'' in subsection (d);
       (v) by inserting ``or the Central Imagery Office'' after 
     ``Defense Intelligence Agency'' in subsection (e)(1); and
       (vi) in subsection (e)(3)--
       (I) by amending the first sentence to read as follows: 
     ``The Secretary of Defense may delegate authority under this 
     subsection only to the Deputy Secretary of Defense, the 
     Director of the Defense Intelligence Agency, the Director of 
     the Central Imagery Office, or all three.''; and
       (II) by striking ``either'' and inserting ``any''.
       (2) The items relating to chapter 83 in the tables of 
     chapters at the beginning of subtitle A, and at the beginning 
     of part II of subtitle A, of title 10, United States Code, 
     are amended to read as follows:


  ``83. Defense Intelligence Agency and Central Imagery Office Civilian 
    Personnel...................................................1601''.

       (c) Chapter 23 of Title 5.--Section 2302(a)(2)(C)(ii) of 
     title 5, United States Code, is amended by inserting ``the 
     Central Imagery Office,'' after ``Defense Intelligence 
     Agency,''.
       (d) Chapter 31 of Title 5.--Section 3132(a)(1)(B) of title 
     5, United States Code, is amended by inserting ``the Central 
     Imagery Office,'' after ``Defense Intelligence Agency,''.
       (e) Chapter 43 of Title 5.--Section 4301(1)(B)(ii) of title 
     5, United States Code, is amended by inserting ``the Central 
     Imagery Office,'' after ``Defense Intelligence Agency,''.
       (f) Chapter 47 of Title 5.--Section 4701(a)(1)(B) of title 
     5, United States Code, is amended by inserting ``the Central 
     Imagery Office,'' after ``Defense Intelligence Agency,''.
       (g) Chapter 51 of Title 5.--Section 5102(a)(1) of title 5, 
     United States Code, is amended--
       (1) by striking ``or'' at the end of clause (ix);
       (2) by striking the period at the end of clause (x) and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(xi) the Central Imagery Office, Department of 
     Defense.''.
       (h) Chapter 51 of Title 5.--Section 5342(a)(1) of title 5, 
     United States Code, is amended--
       (1) by striking ``or'' at the end of subparagraph (J);
       (2) by inserting ``or'' after the semicolon at the end of 
     subparagraph (K); and
       (3) by adding at the end the following:
       ``(L) the Central Imagery Office, Department of Defense;''.
       (i) Additional Leave Transfer Programs.--(1) Section 
     6339(a)(1) of title 5, United States Code, is amended--
       (A) by striking ``and'' at the end of subparagraph (D);
       (B) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (C) by inserting after subparagraph (D) the following new 
     subparagraph (E):
       ``(E) the Central Imagery Office; and''.
       (2) Section 6339(a)(2) of such title is amended--
       (A) by striking ``and'' at the end of subparagraph (D);
       (B) by redesignating subparagraph (E) as subparagraph (F);
       (C) by inserting after subparagraph (D) the following new 
     subparagraph (E):
       ``(E) with respect to the Central Imagery Office, the 
     Director of the Central Imagery Office; and''; and
       (D) in subparagraph (F), as redesignated by subparagraph 
     (B) of this paragraph, by striking ``paragraph (1)(E)'' and 
     inserting ``paragraph (1)(F)'' both places it appears.
       (j) Chapter 71 of Title 5.--Section 7103(a)(3) of title 5, 
     United States Code, is amended--
       (1) by striking ``or'' at the end of subparagraph (F);
       (2) by inserting ``or'' at the end of subparagraph (G); and
       (3) by adding at the end the following:
       ``(H) the Central Imagery Office;''.
       (k) Chapter 73 of Title 5.--Section 7323(b)(2)(B)(i) of 
     title 5, United States Code, is amended--
       (1) by striking ``or'' at the end of subclause (XI); and
       (2) by adding at the end the following:
       ``(XIII) the Central Imagery Office; or''.
       (l) Chapter 75 of Title 5.--Section 7511(b)(8) of title 5, 
     United States Code, is amended by inserting ``the Central 
     Imagery Office,'' after ``Defense Intelligence Agency,''.
       (m) Ethics in Government Act of 1978.--Section 105(a)(1) of 
     the Ethics in Government Act of 1978 (5 U.S.C. App.) is 
     amended by inserting ``the Central Imagery Office,'' after 
     ``Defense Intelligence Agency,''.
       (n) Employee Polygraph Protection Act of 1988.--Section 
     7(b)(2)(A)(i) of the Employee Polygraph Protection Act of 
     1988 (29 U.S.C. 2006(b)(2)(A)(i)) is amended by inserting 
     ``the Central Imagery Office,'' after ``Defense Intelligence 
     Agency,''.

     SEC. 502. EXCEPTION TO PUBLIC AVAILABILITY OF CERTAIN 
                   DEPARTMENT OF DEFENSE MAPS, CHARTS, AND 
                   GEODETIC DATA.

       Section 2796(b)(1) of title 10, United States Code is 
     amended by inserting ``jeopardize or interfere with ongoing 
     military or intelligence operations or'' in subparagraph (C) 
     after ``disclosed,''.

     SEC. 503. DISCLOSURE OF GOVERNMENTAL AFFILIATION BY 
                   DEPARTMENT OF DEFENSE INTELLIGENCE PERSONNEL 
                   OUTSIDE OF THE UNITED STATES.

       (a) In General.--Notwithstanding section 552a(e)(3) of 
     title 5, United States Code, intelligence personnel of the 
     Department of Defense who are authorized by the Secretary of 
     Defense to collect intelligence from human sources shall not 
     be required, when making an initial assessment contact 
     outside the United States, to give notice of governmental 
     affiliation to potential sources who are United States 
     persons.
       (b) Records.--Records concerning such contacts shall be 
     maintained by the Department of Defense and made available 
     upon request to the appropriate committees of the Congress in 
     accordance with applicable security procedures. Such records 
     shall include for each such contact an explanation of why 
     notice of government affiliation could not reasonably be 
     provided, the nature of the information obtained from the 
     United States person as a result of the contact, and whether 
     additional contacts resulted with the person concerned.
       (c) Definitions.--For the purposes of this section--
       (1) the term ``United States'' includes the Commonwealth of 
     Puerto Rico, the Commonwealth of the Northern Mariana 
     Islands, and any territory or possession of the United 
     States; and
       (2) the term ``United States person'' means any citizen, 
     national, or permanent resident alien of the United States.

     SEC. 504. EXCEPTION FROM AUTHORITY FOR OBLIGATION OF CERTAIN 
                   UNAUTHORIZED FISCAL YEAR 1994 DEFENSE 
                   APPROPRIATIONS.

       Section 1006 of the National Defense Authorization Act for 
     Fiscal Year 1995 shall not apply to amounts which remain 
     available for obligation on the date of the enactment of this 
     Act for national foreign intelligence programs, projects, and 
     activities.
  TITLE VI--CONSTRUCTION OF FACILITIES FOR THE INTELLIGENCE COMMUNITY

     SEC. 601. LIMITATIONS ON FUNDING OF THE NATIONAL 
                   RECONNAISSANCE OFFICE.

       (a) Review of Project; Compliance with DOD Procurement and 
     Contracting Procedures.--
       (1) In general.--Of the funds authorized to be made 
     available by this Act for the National Reconnaissance Office 
     under the classified Schedule of Authorizations referred to 
     in section 102--
       (A) $50,000,000 out of the Miscellaneous Support account of 
     the Mission Support Consolidated Expenditure Center may not 
     be obligated or expended until the Director of Central 
     Intelligence and the Secretary of Defense have completed a 
     review of the National Reconnaissance Office Headquarters 
     Building project and the results of such review have been 
     disclosed to the intelligence committees; and
       (B) no such funds authorized to be made available by this 
     Act may be obligated or expended for the purchase of any real 
     property, or to contract for any construction or acquisition, 
     in connection with the construction of buildings or 
     facilities, unless (and to the extent that)--
       (i) such purchase or contract is made or entered into in 
     accordance with the policies and procedures applicable to 
     other elements of the Department of Defense; or
       (ii) the President determines that the national security 
     interest of the United States requires that such policies and 
     procedures shall not apply to a particular purchase or 
     contract and reports such determination in accordance with 
     subsection (b).
       (2) Application of provisions.--Paragraph (1)(B) shall not 
     apply to contracts made or entered into for the purchase of 
     real property, or for construction or acquisition, before the 
     date of enactment of this Act.
       (b) Waiver Procedures.--Not later than 30 days after making 
     a determination under subsection (a)(1)(B)(ii), the President 
     shall report in writing the determination to the intelligence 
     committees.
       (c) Specific Authorization and Appropriations Required.--
     Except to the extent and in the amounts specifically provided 
     in an Act authorizing appropriations, in an appropriation 
     Act, or in accordance with established reprogramming 
     procedures, no funds made available under any provision of 
     law may be obligated or expended for the construction of the 
     National Reconnaissance Office Headquarters Building project 
     if such funds would cause the total amount obligated or 
     expended for such project to exceed $310,000,000.
       (d) Definition.--As used in this section, the term 
     ``National Reconnaissance Office Headquarters Building 
     project'' means the project for the headquarters buildings of 
     the National Reconnaissance Office, situated at the so-called 
     Westfields site, and includes all construction and 
     improvement of facilities (including ``fit up'') and all 
     actions related to the acquisition of land, communications, 
     computers, furniture and other building furnishings, and 
     vehicle parking facilities.

     SEC. 602. LIMITATION ON CONSTRUCTION OF FACILITIES TO BE USED 
                   PRIMARILY BY THE INTELLIGENCE COMMUNITY.

       (a) In General.--
       (1) In general.--Except as provided in subsection (b), no 
     project for the construction of any facility to be used 
     primarily by personnel of any component of the intelligence 
     community which has an estimated Federal cost in excess of 
     $750,000 may be undertaken in any fiscal year unless such 
     project is specifically identified as a separate item in the 
     President's annual fiscal year budget request and is 
     specifically authorized by the Congress.
       (2) Notification.--In the case of a project for the 
     construction of any facility to be used primarily by 
     personnel of any component of the intelligence community 
     which has an estimated Federal cost greater than $500,000 but 
     less than $750,000, or where any improvement project to such 
     a facility has an estimated Federal cost greater than 
     $500,000, the Director of Central Intelligence shall submit a 
     notification to the intelligence committees specifically 
     identifying such project.
       (b) Exception.--
       (1) In general.--Notwithstanding subsection (a) but subject 
     to paragraphs (2) and (3), a project for the construction of 
     a facility to be used primarily by personnel of any component 
     of the intelligence community may be carried out if the 
     Secretary of Defense and the Director of Central Intelligence 
     jointly determine--
       (A) that the project is vital to the national security or 
     to the protection of health, safety, or the quality of the 
     environment, and
       (B) that the requirement for the project is so urgent that 
     deferral of the project for inclusion in the next Act 
     authorizing appropriations for the intelligence community 
     would be inconsistent with national security or the 
     protection of health, safety, or environmental quality, as 
     the case may be.
       (2) Report.--When a decision is made to carry out a 
     construction project under this subsection, the Secretary of 
     Defense and the Director of Central Intelligence jointly 
     shall submit a report in writing to the appropriate 
     committees of Congress on that decision. Each such report 
     shall include (A) the justification for the project and the 
     current estimate of the cost of the project, (B) the 
     justification for carrying out the project under this 
     subsection, and (C) a statement of the source of the funds to 
     be used to carry out the project. The project may then be 
     carried out only after the end of the 21-day period beginning 
     on the date the notification is received by such committees.
       (3) Projects primarily for cia.--If a project referred to 
     in paragraph (1) is primarily for the Central Intelligence 
     Agency, the Director of Central Intelligence shall make the 
     determination and submit the report required by paragraphs 
     (1) and (2).
       (4) Limitation.--A project carried out under this 
     subsection shall be carried out within the total amount of 
     funds appropriated for intelligence and intelligence-related 
     activities that have not been obligated.
       (c) Application.--This section shall not apply to any 
     project which is subject to subsection (a)(1)(A) or (c) of 
     section 601.

     SEC. 603. IDENTIFICATION OF CONSTITUENT COMPONENTS OF BASE 
                   INTELLIGENCE BUDGET.

       The Director of Central Intelligence shall include the same 
     level of budgetary detail for the Base Budget that is 
     provided for Ongoing Initiatives and New Initiatives to the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives and the Select Committee on Intelligence of 
     the Senate in the congressional justification materials for 
     the annual submission of the National Foreign Intelligence 
     Program of each fiscal year.

     SEC. 604. DEFINITIONS.

       As used in this title:
       (1) Intelligence committees.--The term ``intelligence 
     committees'' means the Permanent Select Committee on 
     Intelligence of the House of Representatives and the Select 
     Committee on Intelligence of the Senate.
       (2) Intelligence community.--The term ``intelligence 
     community'' has the same meaning given that term in section 
     3(4) of the National Security Act of 1947 (50 U.S.C. 
     401a(4)).
                  TITLE VII--CLASSIFICATION MANAGEMENT

     SEC. 701. CLASSIFICATION AND DECLASSIFICATION OF INFORMATION.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the President shall, by executive 
     order, provide for the classification and declassification of 
     information. It is the sense of Congress that the executive 
     order should provide for the following:
       (1) The qualification of information for classification 
     only when its public disclosure would cause identifiable 
     damage to the national security.
       (2) The declassification of information if the appropriate 
     authority within the Executive branch determines that the 
     Government's interest in continuing to protect such 
     information is outweighed by the public's interest in having 
     the information made available.
       (3) The automatic declassification of information that is 
     more than 25 years old unless such information is within a 
     category designated by the President as requiring document-
     by-document review to identify that information whose 
     disclosure to unauthorized persons would clearly damage the 
     national security.
       (b) Submission to Congress; Effective Date.--The executive 
     order referred to in subsection (a) may not take effect until 
     after 30 days after the date on which such proposed executive 
     order is submitted to the Permanent Select Committee on 
     Intelligence and the Committee on Government Operations of 
     the House of Representatives and the Select Committee on 
     Intelligence and the Committee on Governmental Affairs of the 
     Senate.

     SEC. 702. DECLASSIFICATION PLAN.

       Each agency of the National Foreign Intelligence Program to 
     which is appropriated more than $1,000,000 in the security, 
     countermeasures, and related activities structural category 
     for fiscal year 1995 shall allocate at least two percent of 
     its total expenditure in this structural category for fiscal 
     year 1995 to the classification management consolidated 
     expenditure center, to be used for the following activities:
       (1) Development of a phased plan to implement 
     declassification guidelines contained in the executive order 
     which replaces Executive Order 12356. Each such agency shall 
     provide the plan to Congress within 90 days after the 
     beginning of fiscal year 1995 or 90 days after the 
     publication of such replacement executive order, whichever is 
     later. This plan shall include an accounting of the amount of 
     archived material, levels of classification, types of storage 
     media and locations, review methods to be employed, and 
     estimated costs of the declassification activity itself; as 
     well as an assessment by the agency of the appropriate types 
     and amounts of information to be maintained in the future, 
     how it will be stored, safeguarded, and reviewed, and the 
     projected costs of these classification management activities 
     for the succeeding five years.
       (2) Commencement of the process of declassification and 
     reduction of the amount of archived classified documents 
     maintained by each agency.
       (3) Submission of a report to the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate within 90 
     days after the end of fiscal year 1995 on the progress made 
     in carrying out paragraph (2), with reference to the plan 
     required by paragraph (1).
              TITLE VIII--COUNTERINTELLIGENCE AND SECURITY

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Counterintelligence and 
     Security Enhancements Act of 1994''.

     SEC. 802. ACCESS TO CLASSIFIED INFORMATION.

       (a) Amendment of the National Security Act of 1947.--The 
     National Security Act of 1947 (50 U.S.C. 401 et seq.) is 
     amended by adding at the end the following new title:

             ``TITLE VIII--ACCESS TO CLASSIFIED INFORMATION


                              ``procedures

       ``Sec. 801. (a) Not later than 180 days after the date of 
     enactment of this title, the President shall, by Executive 
     order or regulation, establish procedures to govern access to 
     classified information which shall be binding upon all 
     departments, agencies, and offices of the executive branch of 
     Government. Such procedures shall, at a minimum--
       ``(1) provide that, except as may be permitted by the 
     President, no employee in the executive branch of Government 
     may be given access to classified information by any 
     department, agency, or office of the executive branch of 
     Government unless, based upon an appropriate background 
     investigation, such access is determined to be clearly 
     consistent with the national security interests of the United 
     States;
       ``(2) establish uniform minimum requirements governing the 
     scope and frequency of background investigations and 
     reinvestigations for all employees in the executive branch of 
     Government who require access to classified information as 
     part of their official responsibilities;
       ``(3) provide that all employees in the executive branch of 
     Government who require access to classified information shall 
     be required as a condition of such access to provide to the 
     employing department or agency written consent which permits 
     access by an authorized investigative agency to relevant 
     financial records, other financial information, consumer 
     reports, and travel records, as determined by the President, 
     in accordance with section 802 of this title, during the 
     period of access to classified information and for a period 
     of three years thereafter;
       ``(4) provide that all employees in the executive branch of 
     Government who require access to particularly sensitive 
     classified information, as determined by the President, shall 
     be required, as a condition of maintaining access to such 
     information, to submit to the employing department or agency, 
     during the period of such access, relevant information 
     concerning their financial condition and foreign travel, as 
     determined by the President, as may be necessary to ensure 
     appropriate security; and
       ``(5) establish uniform minimum standards to ensure that 
     employees in the executive branch of Government whose access 
     to classified information is being denied or terminated under 
     this title are appropriately advised of the reasons for such 
     denial or termination and are provided an adequate 
     opportunity to respond to all adverse information which forms 
     the basis for such denial or termination before final action 
     by the department or agency concerned.
       ``(b)(1) Subsection (a) shall not be deemed to limit or 
     affect the responsibility and power of an agency head 
     pursuant to other law or Executive order to deny or terminate 
     access to classified information if the national security so 
     requires. Such responsibility and power may be exercised only 
     when the agency head determines that the procedures 
     prescribed by subsection (a) cannot be invoked in a manner 
     that is consistent with the national security.
       ``(2) Upon the exercise of such responsibility, the agency 
     head shall submit a report to the Permanent Select Committee 
     on Intelligence of the House of Representatives and the 
     Select Committee on Intelligence of the Senate.


            ``requests by authorized investigative agencies

       ``Sec. 802. (a)(1) Any authorized investigative agency may 
     request from any financial agency, financial institution, or 
     holding company, or from any consumer reporting agency, such 
     financial records, other financial information, and consumer 
     reports as may be necessary in order to conduct any 
     authorized law enforcement investigation, counterintelligence 
     inquiry, or security determination. Any authorized 
     investigative agency may also request records maintained by 
     any commercial entity within the United States pertaining to 
     travel by an employee in the executive branch of Government 
     outside the United States.
       ``(2) Requests may be made under this section where--
       ``(A) the records sought pertain to a person who is or was 
     an employee in the executive branch of Government required by 
     the President in an Executive order or regulation, as a 
     condition of access to classified information, to provide 
     consent, during a background investigation and for such time 
     as access to the information is maintained, and for a period 
     of not more than three years thereafter, permitting access to 
     financial records, other financial information, consumer 
     reports, and travel records; and
       ``(B)(i) there are reasonable grounds to believe, based on 
     credible information, that the person is, or may be, 
     disclosing classified information in an unauthorized manner 
     to a foreign power or agent of a foreign power;
       ``(ii) information the employing agency deems credible 
     indicates the person has incurred excessive indebtedness or 
     has acquired a level of affluence which cannot be explained 
     by other information known to the agency; or
       ``(iii) circumstances indicate the person had the 
     capability and opportunity to disclose classified information 
     which is known to have been lost or compromised to a foreign 
     power or an agent of a foreign power.
       ``(3) Each such request--
       ``(A) shall be accompanied by a written certification 
     signed by the department or agency head or deputy department 
     or agency head concerned, or by a senior official designated 
     for this purpose by the department or agency head concerned 
     (whose rank shall be no lower than Assistant Secretary or 
     Assistant Director), and shall certify that--
       ``(i) the person concerned is or was an employee within the 
     meaning of paragraph (2)(A);
       ``(ii) the request is being made pursuant to an authorized 
     inquiry or investigation and is authorized under this 
     section; and
       ``(iii) the records or information to be reviewed are 
     records or information which the employee has previously 
     agreed to make available to the authorized investigative 
     agency for review;
       ``(B) shall contain a copy of the agreement referred to in 
     subparagraph (A)(iii);
       ``(C) shall identify specifically or by category the 
     records or information to be reviewed; and
       ``(D) shall inform the recipient of the request of the 
     prohibition described in subsection (b).
       ``(b) Notwithstanding any other provision of law, no 
     governmental or private entity, or officer, employee, or 
     agent of such entity, may disclose to any person, other than 
     those officers, employees, or agents of such entity necessary 
     to satisfy a request made under this section, that such 
     entity has received or satisfied a request made by an 
     authorized investigative agency under this section.
       ``(c)(1) Notwithstanding any other provision of law (other 
     than section 6103 of the Internal Revenue Code of 1986), an 
     entity receiving a request for records or information under 
     subsection (a) shall, if the request satisfies the 
     requirements of this section, make available such records or 
     information within 30 days for inspection or copying, as may 
     be appropriate, by the agency requesting such records or 
     information.
       ``(2) Any entity (including any officer, employee, or agent 
     thereof) that discloses records or information for inspection 
     or copying pursuant to this section in good faith reliance 
     upon the certifications made by an agency pursuant to this 
     section shall not be liable for any such disclosure to any 
     person under this title, the constitution of any State, or 
     any law or regulation of any State or any political 
     subdivision of any State.
       ``(d) Any agency requesting records or information under 
     this section may, subject to the availability of 
     appropriations, reimburse a private entity for any cost 
     reasonably incurred by such entity in responding to such 
     request, including the cost of identifying, reproducing, or 
     transporting records or other data.
       ``(e) An agency receiving records or information pursuant 
     to a request under this section may disseminate the records 
     or information obtained pursuant to such request outside the 
     agency only--
       ``(1) to the agency employing the employee who is the 
     subject of the records or information;
       ``(2) to the Department of Justice for law enforcement or 
     counterintelligence purposes; or
       ``(3) with respect to dissemination to an agency of the 
     United States, if such information is clearly relevant to the 
     authorized responsibilities of such agency.
       ``(f) Nothing in this section may be construed to affect 
     the authority of an investigative agency to obtain 
     information pursuant to the Right to Financial Privacy Act 
     (12 U.S.C. 3401 et seq.) or the Fair Credit Reporting Act (15 
     U.S.C. 1681 et seq.).


                              ``exceptions

       ``Sec. 803. Except as otherwise specifically provided, the 
     provisions of this title shall not apply to the President and 
     Vice President, Members of the Congress, Justices of the 
     Supreme Court, and Federal judges appointed by the President.


                             ``definitions

       ``Sec. 804. For purposes of this title--
       ``(1) the term `authorized investigative agency' means an 
     agency authorized by law or regulation to conduct a 
     counterintelligence investigation or investigations of 
     persons who are proposed for access to classified information 
     to ascertain whether such persons satisfy the criteria for 
     obtaining and retaining access to such information;
       ``(2) the term `classified information' means any 
     information that has been determined pursuant to Executive 
     Order No. 12356 of April 2, 1982, or successor orders, or the 
     Atomic Energy Act of 1954, to require protection against 
     unauthorized disclosure and that is so designated;
       ``(3) the term `consumer reporting agency' has the meaning 
     given such term in section 603 of the Consumer Credit 
     Protection Act (15 U.S.C. 1681a);
       ``(4) the term `employee' includes any person who receives 
     a salary or compensation of any kind from the United States 
     Government, is a contractor of the United States Government 
     or an employee thereof, is an unpaid consultant of the United 
     States Government, or otherwise acts for or on behalf of the 
     United States Government, except as otherwise determined by 
     the President;
       ``(5) the terms `financial agency' and `financial 
     institution' have the meanings given to such terms in section 
     5312(a) of title 31, United States Code, and the term 
     `holding company' has the meaning given to such term in 
     section 1101(6) of the Right to Financial Privacy Act of 1978 
     (12 U.S.C. 3401);
       ``(6) the terms `foreign power' and `agent of a foreign 
     power' have the same meanings as set forth in sections 101 
     (a) and (b), respectively, of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1801); and
       ``(7) the term `State' means each of the several States of 
     the United States, the District of Columbia, the Commonwealth 
     of Puerto Rico, the Commonwealth of the Northern Mariana 
     Islands, the United States Virgin Islands, Guam, American 
     Samoa, the Republic of the Marshall Islands, the Federated 
     States of Micronesia, and the Republic of Palau, and any 
     other possession of the United States.''.
       (b) Clerical Amendment.--The table of contents of the 
     National Security Act of 1947 is amended by adding at the end 
     the following:

             ``TITLE VIII--ACCESS TO CLASSIFIED INFORMATION

``Sec. 801. Procedures.
``Sec. 802. Requests by authorized investigative agencies.
``Sec. 803. Exceptions.
``Sec. 804. Definitions.''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect 180 days after the date of 
     enactment of this Act.

     SEC. 803. REWARDS FOR INFORMATION CONCERNING ESPIONAGE.

       (a) Rewards.--Section 3071 of title 18, United States Code, 
     is amended--
       (1) by inserting ``(a)'' before ``With respect to''; and
       (2) by adding at the end the following new subsection:
       ``(b) With respect to acts of espionage involving or 
     directed at the United States, the Attorney General may 
     reward any individual who furnishes information--
       ``(1) leading to the arrest or conviction, in any country, 
     of any individual or individuals for commission of an act of 
     espionage against the United States;
       ``(2) leading to the arrest or conviction, in any country, 
     of any individual or individuals for conspiring or attempting 
     to commit an act of espionage against the United States; or
       ``(3) leading to the prevention or frustration of an act of 
     espionage against the United States.''.
       (b) Definitions.--Section 3077 of such title is amended--
       (1) by striking ``and'' at the end of paragraph (6);
       (2) by striking the period at the end of paragraph (7) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(8) `act of espionage' means an activity that is a 
     violation of--
       ``(A) section 793, 794, or 798 of title 18, United States 
     Code; or
       ``(B) section 4 of the Subversive Activities Control Act of 
     1950.''.
       (c) Clerical Amendments.--(1) The item relating to chapter 
     204 in the table of chapters for part II of such title is 
     amended to read as follows:

``204. Rewards for information concerning terrorist acts and3071''.age.

       (2) The heading for chapter 204 of such title is amended to 
     read as follows:

 ``CHAPTER 204--REWARDS FOR INFORMATION CONCERNING TERRORIST ACTS AND 
                              ESPIONAGE''.

     SEC. 804. CRIMINAL FORFEITURE FOR VIOLATION OF CERTAIN 
                   ESPIONAGE LAWS.

       (a) In General.--Section 798 of title 18, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d)(1) Any person convicted of a violation of this 
     section shall forfeit to the United States irrespective of 
     any provision of State law--
       ``(A) any property constituting, or derived from, any 
     proceeds the person obtained, directly or indirectly, as the 
     result of such violation; and
       ``(B) any of the person's property used, or intended to be 
     used, in any manner or part, to commit, or to facilitate the 
     commission of, such violation.
       ``(2) The court, in imposing sentence on a defendant for a 
     conviction of a violation of this section, shall order that 
     the defendant forfeit to the United States all property 
     described in paragraph (1).
       ``(3) Except as provided in paragraph (4), the provisions 
     of subsections (b), (c), and (e) through (p) of section 413 
     of the Comprehensive Drug Abuse Prevention and Control Act of 
     1970 (21 U.S.C. 853(b), (c), and (e)-(p)), shall apply to--
       ``(A) property subject to forfeiture under this subsection;
       ``(B) any seizure or disposition of such property; and
       ``(C) any administrative or judicial proceeding in relation 
     to such property,

     if not inconsistent with this subsection.
       ``(4) Notwithstanding section 524(c) of title 28, there 
     shall be deposited in the Crime Victims Fund established 
     under section 1402 of the Victims of Crime Act of 1984 (42 
     U.S.C. 10601) all amounts from the forfeiture of property 
     under this subsection remaining after the payment of expenses 
     for forfeiture and sale authorized by law.
       ``(5) As used in this subsection, the term `State' means 
     any State of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the Trust Territory of the 
     Pacific Islands, and any territory or possession of the 
     United States.''.
       (b) Amendments for Consistency in Application of Forfeiture 
     Under Title 18.--(1) Section 793(h)(3) of such title is 
     amended in the matter preceding subparagraph (A) by striking 
     out ``(o)'' each place it appears and inserting in lieu 
     thereof ``(p)''.
       (2) Section 794(d)(3) of such title is amended in the 
     matter preceding subparagraph (A) by striking out ``(o)'' 
     each place it appears and inserting in lieu thereof ``(p)''.
       (c) Subversive Activities Control Act.--Section 4 of the 
     Subversive Activities Control Act of 1950 (50 U.S.C. 783) is 
     amended by adding at the end the following new subsection:
       ``(e)(1) Any person convicted of a violation of this 
     section shall forfeit to the United States irrespective of 
     any provision of State law--
       ``(A) any property constituting, or derived from, any 
     proceeds the person obtained, directly or indirectly, as the 
     result of such violation; and
       ``(B) any of the person's property used, or intended to be 
     used, in any manner or part, to commit, or to facilitate the 
     commission of, such violation.
       ``(2) The court, in imposing sentence on a defendant for a 
     conviction of a violation of this section, shall order that 
     the defendant forfeit to the United States all property 
     described in paragraph (1).
       ``(3) Except as provided in paragraph (4), the provisions 
     of subsections (b), (c), and (e) through (p) of section 413 
     of the Comprehensive Drug Abuse Prevention and Control Act of 
     1970 (21 U.S.C. 853(b), (c), and (e)-(p)) shall apply to--
       ``(A) property subject to forfeiture under this subsection;
       ``(B) any seizure or disposition of such property; and
       ``(C) any administrative or judicial proceeding in relation 
     to such property,
     if not inconsistent with this subsection.
       ``(4) Notwithstanding section 524(c) of title 28, there 
     shall be deposited in the Crime Victims Fund established 
     under section 1402 of the Victims of Crime Act of 1984 (42 
     U.S.C. 10601) all amounts from the forfeiture of property 
     under this subsection remaining after the payment of expenses 
     for forfeiture and sale authorized by law.
       ``(5) As used in this subsection, the term `State' means 
     any State of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the Trust Territory of the 
     Pacific Islands, and any territory or possession of the 
     United States.''.

     SEC. 805. DENIAL OF ANNUITIES OR RETIRED PAY TO PERSONS 
                   CONVICTED OF ESPIONAGE IN FOREIGN COURTS 
                   INVOLVING UNITED STATES INFORMATION.

       Section 8312 of title 5, United States Code, is amended by 
     adding at the end thereof the following new subsection:
       ``(d)(1) For purposes of subsections (b)(1) and (c)(1), an 
     offense within the meaning of such subsections is established 
     if the Attorney General of the United States certifies to the 
     agency administering the annuity or retired pay concerned--
       ``(A) that an individual subject to this chapter has been 
     convicted by an impartial court of appropriate jurisdiction 
     within a foreign country in circumstances in which the 
     conduct violates the provisions of law enumerated in 
     subsections (b)(1) and (c)(1), or would violate such 
     provisions had such conduct taken place within the United 
     States, and that such conviction is not being appealed or 
     that final action has been taken on such appeal;
       ``(B) that such conviction was obtained in accordance with 
     procedures that provided the defendant due process rights 
     comparable to such rights provided by the United States 
     Constitution, and such conviction was based upon evidence 
     which would have been admissible in the courts of the United 
     States; and
       ``(C) that such conviction occurred after the date of 
     enactment of this subsection.
       ``(2) Any certification made pursuant to this subsection 
     shall be subject to review by the United States Court of 
     Claims based upon the application of the individual 
     concerned, or his or her attorney, alleging that any of the 
     conditions set forth in subparagraphs (A), (B), or (C) of 
     paragraph (1), as certified by the Attorney General, have not 
     been satisfied in his or her particular circumstances. Should 
     the court determine that any of these conditions has not been 
     satisfied in such case, the court shall order any annuity or 
     retirement benefit to which the person concerned is entitled 
     to be restored and shall order that any payments which may 
     have been previously denied or withheld to be paid by the 
     department or agency concerned.''.

     SEC. 806. POSTEMPLOYMENT ASSISTANCE FOR CERTAIN TERMINATED 
                   INTELLIGENCE EMPLOYEES OF THE DEPARTMENT OF 
                   DEFENSE.

       (a) Consolidation and Extension of Authority.--
       (1)  In general.--Chapter 81 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1599. Postemployment assistance: certain terminated 
       intelligence employees

       ``(a) Authority.--Subject to subsection (c), the Secretary 
     of Defense may, in the case of any individual who is a 
     qualified former intelligence employee, use appropriated 
     funds--
       ``(1) to assist that individual in finding and qualifying 
     for employment other than in an intelligence component of the 
     Department of Defense;
       ``(2) to assist that individual in meeting the expenses of 
     treatment of medical or psychological disabilities of that 
     individual; and
       ``(3) to provide financial support to that individual 
     during periods of unemployment.
       ``(b) Qualified Former Intelligence Employees.--For 
     purposes of this section, a qualified former intelligence 
     employee is an individual who was employed as a civilian 
     employee of the Department of Defense in a sensitive position 
     in an intelligence component of the Department of Defense--
       ``(1) who has been found to be ineligible for continued 
     access to information designated as `Sensitive Compartmented 
     Information' and employment with the intelligence component; 
     or
       ``(2) whose employment with the intelligence component has 
     been terminated.
       ``(c) Conditions.--Assistance may be provided to a 
     qualified former intelligence employee under subsection (a) 
     only if the Secretary determines that such assistance is 
     essential to--
       ``(1) maintain the judgment and emotional stability of the 
     qualified former intelligence employee; and
       ``(2) avoid circumstances that might lead to the unlawful 
     disclosure of classified information to which the qualified 
     former intelligence employee had access.
       ``(d) Duration of Assistance.--Assistance may not be 
     provided under this section in the case of any individual 
     after the end of the five-year period beginning on the date 
     of the termination of the employment of the individual with 
     an intelligence component of the Department of Defense.
       ``(e) Annual Report.--(1) The Secretary of Defense shall 
     submit to the congressional committees specified in paragraph 
     (2) an annual report with respect to any expenditure made 
     under this section.
       ``(2) The committees referred to in paragraph (1) are the 
     following:
       ``(A) The Committees on Armed Services and Appropriations 
     and the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       ``(B) The Committees on Armed Services and Appropriations 
     and the Select Committee on Intelligence of the Senate.
       ``(f) Definition.--In this section, the term `intelligence 
     component of the Department of Defense' means any of the 
     following:
       ``(1) The National Security Agency.
       ``(2) The Defense Intelligence Agency.
       ``(3) The National Reconnaissance Office.
       ``(4) The Central Imagery Office.
       ``(5) The intelligence components of any of the military 
     departments.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1599. Postemployment assistance: certain terminated intelligence 
              employees.''.

       (b) Repeal of Predecessor Authority.--
       (1) Defense intelligence agency.--Paragraph (4) of section 
     1604(e) of title 10, United States Code, is repealed.
       (2) National security agency.--Section 17 of the National 
     Security Agency Act of 1959 (50 U.S.C. 402 note) is repealed.

     SEC. 807. PROVIDING A COURT ORDER PROCESS FOR PHYSICAL 
                   SEARCHES UNDERTAKEN FOR FOREIGN INTELLIGENCE 
                   PURPOSES.

       (a) Amendment of the Foreign Intelligence Surveillance Act 
     of 1978.--The Foreign Intelligence Surveillance Act of 1978 
     (50 U.S.C. 1801 et seq.) is amended--
       (1) by redesignating title III as title IV and section 301 
     as section 401, respectively;
       (2) in section 401 (as so redesignated) by inserting 
     ``(other than title III)'' after ``provisions of this Act''; 
     and
       (3) by inserting after title II the following new title:
  ``TITLE III--PHYSICAL SEARCHES WITHIN THE UNITED STATES FOR FOREIGN 
                         INTELLIGENCE PURPOSES


                             ``definitions

       ``Sec. 301. As used in this title:
       ``(1) The terms `foreign power', `agent of a foreign 
     power', `international terrorism', `sabotage', `foreign 
     intelligence information', `Attorney General', `United States 
     person', `United States', `person', and `State' shall have 
     the same meanings as in section 101 of this Act, except as 
     specifically provided by this title.
       ``(2) `Aggrieved person' means a person whose premises, 
     property, information, or material is the target of physical 
     search or any other person whose premises, property, 
     information, or material was subject to physical search.
       ``(3) `Foreign Intelligence Surveillance Court' means the 
     court established by section 103(a) of this Act.
       ``(4) `Minimization procedures' with respect to physical 
     search, means--
       ``(A) specific procedures, which shall be adopted by the 
     Attorney General, that are reasonably designed in light of 
     the purposes and technique of the particular physical search, 
     to minimize the acquisition and retention, and prohibit the 
     dissemination, of nonpublicly available information 
     concerning unconsenting United States persons consistent with 
     the need of the United States to obtain, produce, and 
     disseminate foreign intelligence information;
       ``(B) procedures that require that nonpublicly available 
     information, which is not foreign intelligence information, 
     as defined in section 101(e)(1) of this Act, shall not be 
     disseminated in a manner that identifies any United States 
     person, without such person's consent, unless such person's 
     identity is necessary to understand such foreign intelligence 
     information or assess its importance;
       ``(C) notwithstanding subparagraphs (A) and (B), procedures 
     that allow for the retention and dissemination of information 
     that is evidence of a crime which has been, is being, or is 
     about to be committed and that is to be retained or 
     disseminated for law enforcement purposes; and
       ``(D) notwithstanding subparagraphs (A), (B), and (C), with 
     respect to any physical search approved pursuant to section 
     302(a), procedures that require that no information, 
     material, or property of a United States person shall be 
     disclosed, disseminated, or used for any purpose or retained 
     for longer than 24 hours unless a court order under section 
     304 is obtained or unless the Attorney General determines 
     that the information indicates a threat of death or serious 
     bodily harm to any person.
       ``(5) `Physical search' means any physical intrusion within 
     the United States into premises or property (including 
     examination of the interior of property by technical means) 
     that is intended to result in a seizure, reproduction, 
     inspection, or alteration of information, material, or 
     property, under circumstances in which a person has a 
     reasonable expectation of privacy and a warrant would be 
     required for law enforcement purposes, but does not include 
     (A) `electronic surveillance', as defined in section 101(f) 
     of this Act, or (B) the acquisition by the United States 
     Government of foreign intelligence information from 
     international or foreign communications, or foreign 
     intelligence activities conducted in accordance with 
     otherwise applicable Federal law involving a foreign 
     electronic communications system, utilizing a means other 
     than electronic surveillance as defined in section 101(f) of 
     this Act.


 ``AUTHORIZATION OF PHYSICAL SEARCHES FOR FOREIGN INTELLIGENCE PURPOSES

       ``Sec. 302. (a)(1) Notwithstanding any other provision of 
     law, the President, acting through the Attorney General, may 
     authorize physical searches without a court order under this 
     title to acquire foreign intelligence information for periods 
     of up to one year if--
       ``(A) the Attorney General certifies in writing under oath 
     that--
       ``(i) the physical search is solely directed at premises, 
     information, material, or property used exclusively by, or 
     under the open and exclusive control of, a foreign power or 
     powers (as defined in section 101(a)(1), (2), or (3));
       ``(ii) there is no substantial likelihood that the physical 
     search will involve the premises, information, material, or 
     property of a United States person; and
       ``(iii) the proposed minimization procedures with respect 
     to such physical search meet the definition of minimization 
     procedures under paragraphs (1) through (4) of section 
     301(4); and
       ``(B) the Attorney General reports such minimization 
     procedures and any changes thereto to the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate at least 
     30 days before their effective date, unless the Attorney 
     General determines that immediate action is required and 
     notifies the committees immediately of such minimization 
     procedures and the reason for their becoming effective 
     immediately.
       ``(2) A physical search authorized by this subsection may 
     be conducted only in accordance with the certification and 
     minimization procedures adopted by the Attorney General. The 
     Attorney General shall assess compliance with such procedures 
     and shall report such assessments to the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate under the 
     provisions of section 306.
       ``(3) The Attorney General shall immediately transmit under 
     seal to the Foreign Intelligence Surveillance Court a copy of 
     the certification. Such certification shall be maintained 
     under security measures established by the Chief Justice of 
     the United States with the concurrence of the Attorney 
     General, in consultation with the Director of Central 
     Intelligence, and shall remain sealed unless--
       ``(A) an application for a court order with respect to the 
     physical search is made under section 301(4) and section 303; 
     or
       ``(B) the certification is necessary to determine the 
     legality of the physical search under section 305(g).
       ``(4)(A) With respect to physical searches authorized by 
     this subsection, the Attorney General may direct a specified 
     landlord, custodian, or other specified person to--
       ``(i) furnish all information, facilities, or assistance 
     necessary to accomplish the physical search in such a manner 
     as will protect its secrecy and produce a minimum of 
     interference with the services that such landlord, custodian, 
     or other person is providing the target of the physical 
     search; and
       ``(ii) maintain under security procedures approved by the 
     Attorney General and the Director of Central Intelligence any 
     records concerning the search or the aid furnished that such 
     person wishes to retain.
       ``(B) The Government shall compensate, at the prevailing 
     rate, such landlord, custodian, or other person for 
     furnishing such aid.
       ``(b) Applications for a court order under this title are 
     authorized if the President has, by written authorization, 
     empowered the Attorney General to approve applications to the 
     Foreign Intelligence Surveillance Court. Notwithstanding any 
     other provision of law, a judge of the court to whom 
     application is made may grant an order in accordance with 
     section 304 approving a physical search in the United States 
     of the premises, property, information, or material of a 
     foreign power or an agent of a foreign power for the purpose 
     of collecting foreign intelligence information.
       ``(c) The Foreign Intelligence Surveillance Court shall 
     have jurisdiction to hear applications for and grant orders 
     approving a physical search for the purpose of obtaining 
     foreign intelligence information anywhere within the United 
     States under the procedures set forth in this title, except 
     that no judge shall hear the same application which has been 
     denied previously by another judge designated under section 
     103(a) of this Act. If any judge so designated denies an 
     application for an order authorizing a physical search under 
     this title, such judge shall provide immediately for the 
     record a written statement of each reason for such decision 
     and, on motion of the United States, the record shall be 
     transmitted, under seal, to the court of review established 
     under section 103(b).
       ``(d) The court of review established under section 103(b) 
     shall have jurisdiction to review the denial of any 
     application made under this title. If such court determines 
     that the application was properly denied, the court shall 
     immediately provide for the record a written statement of 
     each reason for its decision and, on petition of the United 
     States for a writ of certiorari, the record shall be 
     transmitted under seal to the Supreme Court, which shall have 
     jurisdiction to review such decision.
       ``(e) Judicial proceedings under this title shall be 
     concluded as expeditiously as possible. The record of 
     proceedings under this title, including applications made and 
     orders granted, shall be maintained under security measures 
     established by the Chief Justice of the United States in 
     consultation with the Attorney General and the Director of 
     Central Intelligence.


                       ``APPLICATION FOR AN ORDER

       ``Sec. 303. (a) Each application for an order approving a 
     physical search under this title shall be made by a Federal 
     officer in writing upon oath or affirmation to a judge of the 
     Foreign Intelligence Surveillance Court. Each application 
     shall require the approval of the Attorney General based upon 
     the Attorney General's finding that it satisfies the criteria 
     and requirements for such application as set forth in this 
     title. Each application shall include--
       ``(1) the identity of the Federal officer making the 
     application;
       ``(2) the authority conferred on the Attorney General by 
     the President and the approval of the Attorney General to 
     make the application;
       ``(3) the identity, if known, or a description of the 
     target of the search, and a detailed description of the 
     premises or property to be searched and of the information, 
     material, or property to be seized, reproduced, or altered;
       ``(4) a statement of the facts and circumstances relied 
     upon by the applicant to justify the applicant's belief 
     that--
       ``(A) the target of the physical search is a foreign power 
     or an agent of a foreign power;
       ``(B) the premises or property to be searched contains 
     foreign intelligence information; and
       ``(C) the premises or property to be searched is owned, 
     used, possessed by, or is in transit to or from a foreign 
     power or an agent of a foreign power;
       ``(5) a statement of the proposed minimization procedures;
       ``(6) a statement of the nature of the foreign intelligence 
     sought and the manner in which the physical search is to be 
     conducted;
       ``(7) a certification or certifications by the Assistant to 
     the President for National Security Affairs or an executive 
     branch official or officials designated by the President from 
     among those executive branch officers employed in the area of 
     national security or defense and appointed by the President, 
     by and with the advice and consent of the Senate--
       ``(A) that the certifying official deems the information 
     sought to be foreign intelligence information;
       ``(B) that the purpose of the search is to obtain foreign 
     intelligence information;
       ``(C) that such information cannot reasonably be obtained 
     by normal investigative techniques;
       ``(D) that designates the type of foreign intelligence 
     information being sought according to the categories 
     described in section 101(e); and
       ``(E) includes a statement explaining the basis for the 
     certifications required by subparagraphs (C) and (D);
       ``(8) where the physical search involves a search of the 
     residence of a United States person, the Attorney General 
     shall state what investigative techniques have previously 
     been utilized to obtain the foreign intelligence information 
     concerned and the degree to which these techniques resulted 
     in acquiring such information; and
       ``(9) a statement of the facts concerning all previous 
     applications that have been made to any judge under this 
     title involving any of the persons, premises, or property 
     specified in the application, and the action taken on each 
     previous application.
       ``(b) The Attorney General may require any other affidavit 
     or certification from any other officer in connection with 
     the application.
       ``(c) The judge may require the applicant to furnish such 
     other information as may be necessary to make the 
     determinations required by section 304.


                         ``ISSUANCE OF AN ORDER

       ``Sec. 304. (a) Upon an application made pursuant to 
     section 303, the judge shall enter an ex parte order as 
     requested or as modified approving the physical search if the 
     judge finds that--
       ``(1) the President has authorized the Attorney General to 
     approve applications for physical searches for foreign 
     intelligence purposes;
       ``(2) the application has been made by a Federal officer 
     and approved by the Attorney General;
       ``(3) on the basis of the facts submitted by the applicant 
     there is probable cause to believe that--
       ``(A) the target of the physical search is a foreign power 
     or an agent of a foreign power, except that no United States 
     person may be considered an agent of a foreign power solely 
     upon the basis of activities protected by the first amendment 
     to the Constitution of the United States; and
       ``(B) the premises or property to be searched is owned, 
     used, possessed by, or is in transit to or from an agent of a 
     foreign power or a foreign power;
       ``(4) the proposed minimization procedures meet the 
     definition of minimization contained in this title; and
       ``(5) the application which has been filed contains all 
     statements and certifications required by section 303, and, 
     if the target is a United States person, the certification or 
     certifications are not clearly erroneous on the basis of the 
     statement made under section 303(a)(7)(E) and any other 
     information furnished under section 303(c).
       ``(b) An order approving a physical search under this 
     section shall--
       ``(1) specify--
       ``(A) the identity, if known, or a description of the 
     target of the physical search;
       ``(B) the nature and location of each of the premises or 
     property to be searched;
       ``(C) the type of information, material, or property to be 
     seized, altered, or reproduced;
       ``(D) a statement of the manner in which the physical 
     search is to be conducted and, whenever more than one 
     physical search is authorized under the order, the authorized 
     scope of each search and what minimization procedures shall 
     apply to the information acquired by each search; and
       ``(E) the period of time during which physical searches are 
     approved; and
       ``(2) direct--
       ``(A) that the minimization procedures be followed;
       ``(B) that, upon the request of the applicant, a specified 
     landlord, custodian, or other specified person furnish the 
     applicant forthwith all information, facilities, or 
     assistance necessary to accomplish the physical search in 
     such a manner as will protect its secrecy and produce a 
     minimum of interference with the services that such landlord, 
     custodian, or other person is providing the target of the 
     physical search;
       ``(C) that such landlord, custodian or other person 
     maintain under security procedures approved by the Attorney 
     General and the Director of Central Intelligence any records 
     concerning the search or the aid furnished that such person 
     wishes to retain;
       ``(D) that the applicant compensate, at the prevailing 
     rate, such landlord, custodian, or other person for 
     furnishing such aid; and
       ``(E) that the Federal officer conducting the physical 
     search promptly report to the court the circumstances and 
     results of the physical search.
       ``(c)(1) An order issued under this section may approve a 
     physical search for the period necessary to achieve its 
     purpose, or for forty-five days, whichever is less, except 
     that an order under this section shall approve a physical 
     search targeted against a foreign power, as defined in 
     paragraph (1), (2), or (3) of section 101(a), for the period 
     specified in the application or for one year, whichever is 
     less.
       ``(2) Extensions of an order issued under this title may be 
     granted on the same basis as the original order upon an 
     application for an extension and new findings made in the 
     same manner as required for the original order, except that 
     an extension of an order under this Act for a physical search 
     targeted against a foreign power, as defined in section 
     101(a) (5) or (6), or against a foreign power, as defined in 
     section 101(a)(4), that is not a United States person, may be 
     for a period not to exceed one year if the judge finds 
     probable cause to believe that no property of any individual 
     United States person will be acquired during the period.
       ``(3) At or before the end of the period of time for which 
     a physical search is approved by an order or an extension, or 
     at any time after a physical search is carried out, the judge 
     may assess compliance with the minimization procedures by 
     reviewing the circumstances under which information 
     concerning United States persons was acquired, retained, or 
     disseminated.
       ``(d)(1)(A) Notwithstanding any other provision of this 
     title, whenever the Attorney General reasonably makes the 
     determination specified in subparagraph (B), the Attorney 
     General may authorize the execution of an emergency physical 
     search if--
       ``(i) a judge having jurisdiction under section 103 is 
     informed by the Attorney General or the Attorney General's 
     designee at the time of such authorization that the decision 
     has been made to execute an emergency search, and
       ``(ii) an application in accordance with this title is made 
     to that judge as soon as practicable but not more than 24 
     hours after the Attorney General authorizes such search.
       ``(B) The determination referred to in subparagraph (A) is 
     a determination that--
       ``(i) an emergency situation exists with respect to the 
     execution of a physical search to obtain foreign intelligence 
     information before an order authorizing such search can with 
     due diligence be obtained, and
       ``(ii) the factual basis for issuance of an order under 
     this title to approve such a search exists.
       ``(2) If the Attorney General authorizes an emergency 
     search under paragraph (1), the Attorney General shall 
     require that the minimization procedures required by this 
     title for the issuance of a judicial order be followed.
       ``(3) In the absence of a judicial order approving such a 
     physical search, the search shall terminate the earlier of--
       ``(A) the date on which the information sought is obtained;
       ``(B) the date on which the application for the order is 
     denied; or
       ``(C) the expiration of 24 hours from the time of 
     authorization by the Attorney General.
       ``(4) In the event that such application for approval is 
     denied, or in any other case where the physical search is 
     terminated and no order is issued approving the search, no 
     information obtained or evidence derived from such search 
     shall be received in evidence or otherwise disclosed in any 
     trial, hearing, or other proceeding in or before any court, 
     grand jury, department, office, agency, regulatory body, 
     legislative committee, or other authority of the United 
     States, a State, or political subdivision thereof, and no 
     information concerning any United States person acquired from 
     such search shall subsequently be used or disclosed in any 
     other manner by Federal officers or employees without the 
     consent of such person, except with the approval of the 
     Attorney General, if the information indicates a threat of 
     death or serious bodily harm to any person. A denial of the 
     application made under this subsection may be reviewed as 
     provided in section 302.
       ``(e) Applications made and orders granted under this title 
     shall be retained for a period of at least 10 years from the 
     date of the application.


                          ``USE OF INFORMATION

       ``Sec. 305. (a) Information acquired from a physical search 
     conducted pursuant to this title concerning any United States 
     person may be used and disclosed by Federal officers and 
     employees without the consent of the United States person 
     only in accordance with the minimization procedures required 
     by this title. No information acquired from a physical search 
     pursuant to this title may be used or disclosed by Federal 
     officers or employees except for lawful purposes.
       ``(b) Where a physical search authorized and conducted 
     pursuant to section 304 involves the residence of a United 
     States person, and, at any time after the search the Attorney 
     General determines there is no national security interest in 
     continuing to maintain the secrecy of the search, the 
     Attorney General shall provide notice to the United States 
     person whose residence was searched of the fact of the search 
     conducted pursuant to this Act and shall identify any 
     property of such person seized, altered, or reproduced during 
     such search.
       ``(c) No information acquired pursuant to this title shall 
     be disclosed for law enforcement purposes unless such 
     disclosure is accompanied by a statement that such 
     information, or any information derived therefrom, may only 
     be used in a criminal proceeding with the advance 
     authorization of the Attorney General.
       ``(d) Whenever the United States intends to enter into 
     evidence or otherwise use or disclose in any trial, hearing, 
     or other proceeding in or before any court, department, 
     officer, agency, regulatory body, or other authority of the 
     United States, against an aggrieved person, any information 
     obtained or derived from a physical search pursuant to the 
     authority of this title, the United States shall, prior to 
     the trial, hearing, or the other proceeding or at a 
     reasonable time prior to an effort to so disclose or so use 
     that information or submit it in evidence, notify the 
     aggrieved person and the court or other authority in which 
     the information is to be disclosed or used that the United 
     States intends to so disclose or so use such information.
       ``(e) Whenever any State or political subdivision thereof 
     intends to enter into evidence or otherwise use or disclose 
     in any trial, hearing, or other proceeding in or before any 
     court, department, officer, agency, regulatory body, or other 
     authority of a State or a political subdivision thereof 
     against an aggrieved person any information obtained or 
     derived from a physical search pursuant to the authority of 
     this title, the State or political subdivision thereof shall 
     notify the aggrieved person, the court or other authority in 
     which the information is to be disclosed or used, and the 
     Attorney General that the State or political subdivision 
     thereof intends to so disclose or so use such information.
       ``(f)(1) Any person against whom evidence obtained or 
     derived from a physical search to which he is an aggrieved 
     person is to be, or has been, introduced or otherwise used or 
     disclosed in any trial, hearing, or other proceeding in or 
     before any court, department, officer, agency, regulatory 
     body, or other authority of the United States, a State, or a 
     political subdivision thereof, may move to suppress the 
     evidence obtained or derived from such search on the grounds 
     that--
       ``(A) the information was unlawfully acquired; or
       ``(B) the physical search was not made in conformity with 
     an order of authorization or approval.
       ``(2) Such a motion shall be made before the trial, 
     hearing, or other proceeding unless there was no opportunity 
     to make such a motion or the person was not aware of the 
     grounds of the motion.
       ``(g) Whenever a court or other authority is notified 
     pursuant to subsection (d) or (e), or whenever a motion is 
     made pursuant to subsection (f), or whenever any motion or 
     request is made by an aggrieved person pursuant to any other 
     statute or rule of the United States or any State before any 
     court or other authority of the United States or any State to 
     discover or obtain applications or orders or other materials 
     relating to a physical search authorized by this title or to 
     discover, obtain, or suppress evidence or information 
     obtained or derived from a physical search authorized by this 
     title, the United States district court or, where the motion 
     is made before another authority, the United States district 
     court in the same district as the authority shall, 
     notwithstanding any other provision of law, if the Attorney 
     General files an affidavit under oath that disclosure or any 
     adversary hearing would harm the national security of the 
     United States, review in camera and ex parte the application, 
     order, and such other materials relating to the physical 
     search as may be necessary to determine whether the physical 
     search of the aggrieved person was lawfully authorized and 
     conducted. In making this determination, the court may 
     disclose to the aggrieved person, under appropriate security 
     procedures and protective orders, portions of the 
     application, order, or other materials relating to the 
     physical search, or may require the Attorney General to 
     provide to the aggrieved person a summary of such materials, 
     only where such disclosure is necessary to make an accurate 
     determination of the legality of the physical search.
       ``(h) If the United States district court pursuant to 
     subsection (g) determines that the physical search was not 
     lawfully authorized or conducted, it shall, in accordance 
     with the requirements of law, suppress the evidence which was 
     unlawfully obtained or derived from the physical search of 
     the aggrieved person or otherwise grant the motion of the 
     aggrieved person. If the court determines that the physical 
     search was lawfully authorized or conducted, it shall deny 
     the motion of the aggrieved person except to the extent that 
     due process requires discovery or disclosure.
       ``(i) Orders granting motions or requests under subsection 
     (h), decisions under this section that a physical search was 
     not lawfully authorized or conducted, and orders of the 
     United States district court requiring review or granting 
     disclosure of applications, orders, or other materials 
     relating to the physical search shall be final orders and 
     binding upon all courts of the United States and the several 
     States except a United States Court of Appeals or the Supreme 
     Court.
       ``(j)(1) If an emergency execution of a physical search is 
     authorized under section 304(d) and a subsequent order 
     approving the search is not obtained, the judge shall cause 
     to be served on any United States person named in the 
     application and on such other United States persons subject 
     to the search as the judge may determine in his discretion it 
     is in the interests of justice to serve, notice of--
       ``(A) the fact of the application;
       ``(B) the period of the search; and
       ``(C) the fact that during the period information was or 
     was not obtained.
       ``(2) On an ex parte showing of good cause to the judge, 
     the serving of the notice required by this subsection may be 
     postponed or suspended for a period not to exceed 90 days. 
     Thereafter, on a further ex parte showing of good cause, the 
     court shall forego ordering the serving of the notice 
     required under this subsection.


                       ``CONGRESSIONAL OVERSIGHT

       ``Sec. 306. On a semiannual basis the Attorney General 
     shall fully inform the Permanent Select Committee on 
     Intelligence of the House of Representatives and the Select 
     Committee on Intelligence of the Senate concerning all 
     physical searches conducted pursuant to this title. On a 
     semiannual basis the Attorney General shall also provide to 
     those committees and the Committees on the Judiciary of the 
     House of Representatives and the Senate a report setting 
     forth with respect to the preceding six-month period--
       ``(1) the total number of applications made for orders 
     approving physical searches under this title;
       ``(2) the total number of such orders either granted, 
     modified, or denied; and
       ``(3) the number of physical searches which involved 
     searches of the residences, offices, or personal property of 
     United States persons, and the number of occasions, if any, 
     where the Attorney General provided notice pursuant to 
     section 305(b).


                              ``PENALTIES

       ``Sec. 307. (a) A person is guilty of an offense if he 
     intentionally--
       ``(1) under color of law for the purpose of obtaining 
     foreign intelligence information, executes a physical search 
     within the United States except as authorized by statute; or
       ``(2) discloses or uses information obtained under color of 
     law by physical search within the United States, knowing or 
     having reason to know that the information was obtained 
     through physical search not authorized by statute, for the 
     purpose of obtaining intelligence information.
       ``(b) It is a defense to a prosecution under subsection (a) 
     that the defendant was a law enforcement or investigative 
     officer engaged in the course of his official duties and the 
     physical search was authorized by and conducted pursuant to a 
     search warrant or court order of a court of competent 
     jurisdiction.
       ``(c) An offense described in this section is punishable by 
     a fine of not more than $10,000 or imprisonment for not more 
     than five years, or both.
       ``(d) There is Federal jurisdiction over an offense under 
     this section if the person committing the offense was an 
     officer or employee of the United States at the time the 
     offense was committed.


                           ``civil liability

       ``Sec. 308. An aggrieved person, other than a foreign power 
     or an agent of a foreign power, as defined in section 101 (a) 
     or (b)(1)(A), respectively, of this Act, whose premises, 
     property, information, or material has been subjected to a 
     physical search within the United States or about whom 
     information obtained by such a physical search has been 
     disclosed or used in violation of section 307 shall have a 
     cause of action against any person who committed such 
     violation and shall be entitled to recover--
       ``(1) actual damages, but not less than liquidated damages 
     of $1,000 or $100 per day for each day of violation, 
     whichever is greater;
       ``(2) punitive damages; and
       ``(3) reasonable attorney's fees and other investigative 
     and litigation costs reasonably incurred.


                   ``authorization during time of war

       ``Sec. 309. Notwithstanding any other provision of law, the 
     President, through the Attorney General, may authorize 
     physical searches without a court order under this title to 
     acquire foreign intelligence information for a period not to 
     exceed 15 calendar days following a declaration of war by the 
     Congress.''.
       (b) Clerical Amendment.--The table of contents in the first 
     section of the Foreign Intelligence Surveillance Act of 1978 
     is amended by striking the items relating to title III and 
     inserting the following:

  ``TITLE III--PHYSICAL SEARCHES WITHIN THE UNITED STATES FOR FOREIGN 
                         INTELLIGENCE PURPOSES

``Sec. 301. Definitions.
``Sec. 302. Authorization of physical searches for foreign intelligence 
              purposes.
``Sec. 303. Application for an order.
``Sec. 304. Issuance of an order.
``Sec. 305. Use of information.
``Sec. 306. Congressional oversight.
``Sec. 307. Penalties.
``Sec. 308. Civil liability.
``Sec. 309. Authorization during time of war.

                       ``TITLE IV--EFFECTIVE DATE

``Sec. 401. Effective Date.''.

       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect 90 days after the date of enactment 
     of this Act, except that any physical search approved by the 
     Attorney General of the United States to gather foreign 
     intelligence information shall not be deemed unlawful for 
     failure to follow the procedures of title III of the Foreign 
     Intelligence Surveillance Act of 1978 (as added by this Act), 
     if that search is conducted within 180 days after the date of 
     enactment of this Act pursuant to regulations issued by the 
     Attorney General, which were in the possession of the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives before the date of enactment of this Act.

     SEC. 808. LESSER CRIMINAL OFFENSE FOR UNAUTHORIZED REMOVAL OF 
                   CLASSIFIED DOCUMENTS.

       (a) In General.--Chapter 93 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1924. Unauthorized removal and retention of classified 
       documents or material

       ``(a) Whoever, being an officer, employee, contractor, or 
     consultant of the United States, and, by virtue of his 
     office, employment, position, or contract, becomes possessed 
     of documents or materials containing classified information 
     of the United States, knowingly removes such documents or 
     materials without authority and with the intent to retain 
     such documents or materials at an unauthorized location shall 
     be fined not more than $1,000, or imprisoned for not more 
     than one year, or both.
       ``(b) For purposes of this section, the provision of 
     documents and materials to the Congress shall not constitute 
     an offense under subsection (a).
       ``(c) In this section, the term `classified information of 
     the United States' means information originated, owned, or 
     possessed by the United States Government concerning the 
     national defense or foreign relations of the United States 
     that has been determined pursuant to law or Executive order 
     to require protection against unauthorized disclosure in the 
     interests of national security.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``1924. Unauthorized removal and retention of classified documents or 
              material.''.

     SEC. 809. REPORTS ON FOREIGN INDUSTRIAL ESPIONAGE.

       (a) In General.--
       (1) Submission and contents.--In order to assist Congress 
     in its oversight functions with respect to this Act and to 
     improve the awareness of United States industry of foreign 
     industrial espionage and the ability of such industry to 
     protect against such espionage, the President shall submit to 
     Congress a report that describes, as of the time of the 
     report, the following:
       (A) The respective policy functions and operational roles 
     of the agencies of the executive branch of the Federal 
     Government in identifying and countering threats to United 
     States industry of foreign industrial espionage, including 
     the manner in which such functions and roles are coordinated.
       (B) The means by which the Federal Government communicates 
     information on such threats, and on methods to protect 
     against such threats, to United States industry in general 
     and to United States companies known to be targets of foreign 
     industrial espionage.
       (C) The specific measures that are being or could be 
     undertaken in order to improve the activities referred to in 
     subparagraphs (A) and (B), including proposals for any 
     modifications of law necessary to facilitate the undertaking 
     of such activities.
       (D) The threat to United States industry of foreign 
     industrial espionage and any trends in that threat, 
     including--
       (i) the number and identity of the foreign governments 
     conducting foreign industrial espionage;
       (ii) the industrial sectors and types of information and 
     technology targeted by such espionage; and
       (iii) the methods used to conduct such espionage.
       (2) Date of Submission.--The President shall submit the 
     report required under this subsection not later than six 
     months after the date of the enactment of this Act.
       (b) Annual Update.--Not later than one year after the date 
     referred to in paragraph (2) of subsection (a), and on the 
     expiration of each year thereafter, the President shall 
     submit to Congress a report updating the information referred 
     to in paragraph (1)(D) of that subsection.
       (c) Form of Reports.--To the maximum extent practicable, 
     the reports referred to in subsections (a) and (b) shall be 
     submitted in an unclassified form, but may be accompanied by 
     a classified appendix.
       (d) Report under Defense Production Act.--Section 
     721(k)(1)(B) of the Defense Production Act of 1950 (50 U.S.C. 
     App. 2170(k)(1)(B)) is amended by inserting ``or directly 
     assisted'' after ``directed''.
       (e) Definition.--For the purposes of this section, 
     ``foreign industrial espionage'' means industrial espionage 
     conducted by a foreign government or by a foreign company 
     with direct assistance of a foreign government against a 
     private United States company and aimed at obtaining 
     commercial secrets.

     SEC. 810. COUNTERNARCOTICS TARGETS FUNDING.

       Not less than $5,000,000 from the base budget for the 
     National Security Agency shall be transferred to United 
     States Army signals intelligence activities directed at 
     counternarcotics targets. A detailed operations plan with 
     special emphasis on the United States/Mexico border and 
     including the participation of the National Security Agency, 
     the Drug Enforcement Administration, the Federal Bureau of 
     Investigation, and the United States Customs Service, shall 
     be provided to the Select Committee on Intelligence of the 
     Senate and the Permanent Select Committee on Intelligence of 
     the House of Representatives no later than November 15, 1994. 
     This plan shall include a detailed description of the planned 
     targets and the type of intelligence collection, 
     dissemination, analysis and tasking that will be included in 
     these operations.

     SEC. 811. COORDINATION OF COUNTERINTELLIGENCE ACTIVITIES.

       (a) Establishment of Counterintelligence Policy Board.--
     There is established within the executive branch of 
     Government a National Counterintelligence Policy Board (in 
     this section referred to as the ``Board''). The Board shall 
     report to the President through the National Security 
     Council.
       (b) Function of the Board.--The Board shall serve as the 
     principal mechanism for--
       (1) developing policies and procedures for the approval of 
     the President to govern the conduct of counterintelligence 
     activities; and
       (2) resolving conflicts, as directed by the President, 
     which may arise between elements of the Government which 
     carry out such activities.
       (c) Coordination of Counterintelligence Matters With the 
     Federal Bureau of Investigation.--(1) Except as provided in 
     paragraph (3), the head of each department or agency within 
     the executive branch shall ensure that--
       (A) the Federal Bureau of Investigation is advised 
     immediately of any information, regardless of its origin, 
     which indicates that classified information is being, or may 
     have been, disclosed in an unauthorized manner to a foreign 
     power or an agent of a foreign power;
       (B) following a report made pursuant to subparagraph (A), 
     the Federal Bureau of Investigation is consulted with respect 
     to all subsequent actions which may be undertaken by the 
     department or agency concerned to determine the source of 
     such loss or compromise; and
       (C) where, after appropriate consultation with the 
     department or agency concerned, the Federal Bureau of 
     Investigation undertakes investigative activities to 
     determine the source of the loss or compromise, the Federal 
     Bureau of Investigation is given complete and timely access 
     to the employees and records of the department or agency 
     concerned for purposes of such investigative activities.
       (2) Except as provided in paragraph (3), the Director of 
     the Federal Bureau of Investigation shall ensure that 
     espionage information obtained by the Federal Bureau of 
     Investigation pertaining to the personnel, operations, or 
     information of departments or agencies of the executive 
     branch, is provided through appropriate channels to the 
     department or agency concerned, and that such departments or 
     agencies are consulted with respect to espionage 
     investigations undertaken by the Federal Bureau of 
     Investigation which involve the personnel, operations, or 
     information of such department or agency after a report has 
     been provided pursuant to paragraph (1)(A).
       (3) Where essential to meet extraordinary circumstances 
     affecting vital national security interests of the United 
     States, the President may on a case-by-case basis waive the 
     requirements of paragraph (1) or (2), as they apply to the 
     head of a particular department or agency, or the Director of 
     the Federal Bureau of Investigation. Such waiver shall be in 
     writing and shall fully state the justification for such 
     waiver. Within thirty days, the President shall notify the 
     Select Committee on Intelligence of the Senate and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives that such waiver has been issued, and at that 
     time or as soon as national security considerations permit, 
     provide these committees with a complete explanation of the 
     circumstances which necessitated such waiver.
       (4) The Director of the Federal Bureau of Investigation 
     shall, in consultation with the Director of Central 
     Intelligence and the Secretary of Defense, report annually, 
     beginning on February 1, 1995, and continuing each year 
     thereafter, to the Select Committee on Intelligence of the 
     Senate and to the Permanent Select Committee on Intelligence 
     of the House of Representatives and, in accordance with 
     applicable security procedures, the Committees on the 
     Judiciary of the House of Representatives and the Senate with 
     respect to compliance with paragraphs (1) and (2) during the 
     previous calendar year.
       (5) Nothing in this section may be construed to alter the 
     existing jurisdictional arrangements between the Federal 
     Bureau of Investigation and the Department of Defense with 
     respect to investigations of persons subject to the Uniform 
     Code of Military Justice, nor to impose additional reporting 
     requirements upon the Department of Defense with respect to 
     such investigations beyond those required by existing law and 
     executive branch policy.
       (6) As used in this section, the terms ``foreign power'' 
     and ``agent of a foreign power'' have the same meanings as 
     set forth in sections 101(a) and (b), respectively, of the 
     Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
     1801).
TITLE IX--COMMISSION ON THE ROLES AND CAPABILITIES OF THE UNITED STATES 
                         INTELLIGENCE COMMUNITY

     SEC. 901. ESTABLISHMENT.

       There is established a commission to be known as the 
     Commission on the Roles and Capabilities of the United States 
     Intelligence Community (hereafter in this title referred to 
     as the ``Commission'').

     SEC. 902. COMPOSITION AND QUALIFICATIONS.

       (a) Membership.--(1) The Commission shall be composed of 17 
     members, as follows:
       (A) Nine members shall be appointed by the President from 
     private life, no more than four of whom shall have previously 
     held senior leadership positions in the intelligence 
     community and no more than five of whom shall be members of 
     the same political party.
       (B) Two members shall be appointed by the majority leader 
     of the Senate, of whom one shall be a Member of the Senate 
     and one shall be from private life.
       (C) Two members shall be appointed by the minority leader 
     of the Senate, of whom one shall be a Member of the Senate 
     and one shall be from private life.
       (D) Two members shall be appointed by the Speaker of the 
     House of Representatives, of whom one shall be a Member of 
     the House and one shall be from private life.
       (E) Two members shall be appointed by the Minority Leader 
     of the House of Representatives, of whom one shall be a 
     Member of the House and one shall be from private life.
       (2) The members of the Commission appointed from private 
     life under paragraph (1) shall be persons of demonstrated 
     ability and accomplishment in government, business, law, 
     academe, journalism, or other profession, who have a 
     substantial background in national security matters.
       (b) Chairman and Vice Chairman.--The President shall 
     designate two of the members appointed from private life to 
     serve as Chairman and Vice Chairman, respectively, of the 
     Commission.
       (c) 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.
       (d) Deadline for Appointments.--The appointments required 
     by subsection (a) shall be made within 45 days after the date 
     of enactment of this Act.
       (e) Meetings.--(1) The Commission shall meet at the call of 
     the Chairman.
       (2) The Commission shall hold its first meeting not later 
     than four months after the date of enactment of this Act.
       (f) Quorum.--Nine members of the Commission shall 
     constitute a quorum, but a lesser number of members may hold 
     hearings, take testimony, or receive evidence.
       (g) Security Clearances.--Appropriate security clearances 
     shall be required for members of the Commission who are 
     private United States citizens. Such clearances shall be 
     processed and completed on an expedited basis by appropriate 
     elements of the executive branch of Government and shall, in 
     any case, be completed within 90 days of the date such 
     members are appointed.
       (h) Application of certain provisions of law.--In light of 
     the extraordinary and sensitive nature of its deliberations, 
     the provisions of the Federal Advisory Committee Act (5 
     U.S.C. App.), and the regulations prescribed by the 
     Administrator of General Services pursuant to that Act, shall 
     not apply to the Commission. Further, the provisions of 
     section 552 of title 5, United States Code (commonly known as 
     the ``Freedom of Information Act'') shall not apply to the 
     Commission; however, records of the Commission shall be 
     subject to the Federal Records Act and, when transferred to 
     the National Archives and Records Agency, shall no longer be 
     exempt from the provisions of such section 552.

     SEC. 903. DUTIES OF THE COMMISSION.

       (a) In General.--It shall be the duty of the Commission--
       (1) to review the efficacy and appropriateness of the 
     activities of the United States intelligence community in the 
     post-cold war global environment; and
       (2) to prepare and transmit the reports described in 
     section 904.
       (b) Implementation.--In carrying out subsection (a), the 
     Commission shall specifically consider the following:
       (1) What should be the roles and missions of the 
     intelligence community in terms of providing support to the 
     defense and foreign policy establishments and how should 
     these relate to tactical intelligence activities.
       (2) Whether the roles and missions of the intelligence 
     community should extend beyond the traditional areas of 
     providing support to the defense and foreign policy 
     establishments, and, if so, what areas should be considered 
     legitimate for intelligence collection and analysis, and 
     whether such areas should include for example, economic 
     issues, environmental issues, and health issues.
       (3) What functions, if any, should continue to be assigned 
     to the organizations of the intelligence community, including 
     the Central Intelligence Agency, and what capabilities should 
     these organizations retain for the future.
       (4) Whether the existing organization and management 
     framework of the organizations of the intelligence community, 
     including the Central Intelligence Agency, provide the 
     optimal structure for the accomplishment of their missions.
       (5) Whether existing principles and strategies governing 
     the acquisition and maintenance of intelligence collection 
     capabilities should be retained and what collection 
     capabilities should the Government retain to meet future 
     contingencies.
       (6) Whether intelligence analysis, as it is currently 
     structured and executed, adds sufficient value to information 
     otherwise available to the Government to justify its 
     continuation, and, if so, at what level of resources.
       (7) Whether the existing decentralized system of 
     intelligence analysis results in significant waste or 
     duplication, and, if so, what can be done to correct these 
     deficiencies.
       (8) Whether the existing arrangements for allocating 
     available resources to accomplish the roles and missions 
     assigned to intelligence agencies are adequate.
       (9) Whether the existing framework for coordinating among 
     intelligence agencies with respect to intelligence collection 
     and analysis and other activities, including training and 
     operational activities, provides an optimal structure for 
     such coordination.
       (10) Whether current personnel policies and practices of 
     intelligence agencies provide an optimal work force to 
     satisfy the needs of intelligence consumers.
       (11) Whether resources for intelligence activities should 
     continue to be allocated as part of the defense budget or be 
     treated by the President and Congress as a separate budgetary 
     program.
       (12) Whether the existing levels of resources allocated for 
     intelligence collection or intelligence analysis, or to 
     provide a capability to conduct covert actions, are seriously 
     at variance with United States needs.
       (13) Whether there are areas of redundant or overlapping 
     activity or areas where there is evidence of serious waste, 
     duplication, or mismanagement.
       (14) To what extent, if any, should the budget for United 
     States intelligence activities be publicly disclosed.
       (15) To what extent, if any, should the United States 
     intelligence community collect information bearing upon 
     private commercial activity and the manner in which such 
     information should be controlled and disseminated.
       (16) Whether counterintelligence policies and practices are 
     adequate to ensure that employees of intelligence agencies 
     are sensitive to security problems, and whether intelligence 
     agencies themselves have adequate authority and capability to 
     address perceived security problems.
       (17) The manner in which the size, missions, capabilities, 
     and resources of the United States intelligence community 
     compare to those of other countries.
       (18) Whether existing collaborative arrangements between 
     the United States and other countries in the area of 
     intelligence cooperation should be maintained and whether 
     such arrangements should be expanded to provide for increased 
     burdensharing.
       (19) Whether existing arrangements for sharing intelligence 
     with multinational organizations in support of mutually 
     shared objectives are adequate.

     SEC. 904. REPORTS.

       (a) Initial Report.--Not later than two months after the 
     first meeting of the Commission, the Commission shall 
     transmit to the congressional intelligence committees a 
     report setting forth its plan for the work of the Commission.
       (b) Interim Reports.--Prior to the submission of the report 
     required by subsection (c), the Commission may issue such 
     interim reports as it finds necessary and desirable.
       (c) Final Report.--No later than March 1, 1996, the 
     Commission shall submit to the President and to the 
     congressional intelligence committees a report setting forth 
     the activities, findings, and recommendations of the 
     Commission, including any recommendations for the enactment 
     of legislation that the Commission considers advisable. To 
     the extent feasible, such report shall be unclassified and 
     made available to the public. Such report shall be 
     supplemented as necessary by a classified report or annex, 
     which shall be provided separately to the President and the 
     congressional intelligence committees.

     SEC. 905. POWERS.

       (a) Hearings.--The Commission or, at its direction, any 
     panel or member of the Commission, may, for the purpose of 
     carrying out the provisions of this title, hold hearings, sit 
     and act at times and places, take testimony, receive 
     evidence, and administer oaths to the extent that the 
     Commission or any panel or member considers advisable.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any intelligence agency or from any 
     other Federal department or agency any information that the 
     Commission considers necessary to enable the Commission to 
     carry out its responsibilities under this section. Upon 
     request of the Chairman of the Commission, the head of any 
     such department or agency shall furnish such information 
     expeditiously to the Commission.
       (c) Postal, Printing and Binding Services.--The Commission 
     may use the United States mails and obtain printing and 
     binding services in the same manner and under the same 
     conditions as other departments and agencies of the Federal 
     Government.
       (d) Subcommittees.--The Commission may establish panels 
     composed of less than the full membership of the Commission 
     for the purpose of carrying out the Commission's duties. The 
     actions of each such panel shall be subject to the review and 
     control of the Commission. Any findings and determinations 
     made by such a panel shall not be considered the findings and 
     determinations of the Commission unless approved by the 
     Commission.
       (e) Authority of Individuals To Act for Commission.--Any 
     member or agent of the Commission may, if authorized by the 
     Commission, take any action which the Commission is 
     authorized to take under this title.

     SEC. 906. PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     who is a private United States citizen shall be paid, if 
     requested, at a rate equal to the daily equivalent of the 
     annual rate of basic pay payable for level V of the Executive 
     Schedule under section 5316 of title 5, United States Code, 
     for each day (including travel time) during which the member 
     is engaged in the performance of the duties of the 
     Commission. All members of the Commission who are Members of 
     Congress shall serve without compensation in addition to that 
     received for their services as Members of Congress.
       (b) Travel Expenses.--Each member 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 provisions of title 5, United States 
     Code, governing appointments in the competitive service, 
     appoint a staff director and such additional personnel as may 
     be necessary to enable the Commission to perform its duties. 
     The staff director of the Commission shall be appointed from 
     private life, and such appointment shall be subject to the 
     approval of the Commission as a whole. No member of the 
     professional staff may be a current officer or employee of an 
     intelligence agency, except that up to three current 
     employees of intelligence agencies who are on rotational 
     assignment to the Executive Office of the President may serve 
     on the Commission staff, subject to the approval of the 
     Commission as a whole.
       (2) Compensation.--The Chairman of the Commission may fix 
     the pay of the staff 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 fixed under this paragraph for 
     the staff director may not exceed the rate payable for level 
     V of the Executive Schedule under section 5316 of such title 
     and the rate of pay for other personnel may not exceed the 
     maximum rate payable for grade GS-15 of the General Schedule.
       (d) Detail of Government Employees.--Upon request of the 
     Chairman of the Commission, the head of any Federal 
     department or agency may detail, on a nonreimbursable basis, 
     any personnel of that department or agency to the Commission 
     to assist it in carrying out its administrative and clerical 
     functions.
       (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 
     payable for level V of the Executive Schedule under section 
     5316 of such title.
       (f) Administrative and Support Services.--The Director of 
     Central Intelligence shall furnish the Commission, on a non-
     reimbursable basis, any administrative and support services 
     requested by the Commission consistent with this title.

     SEC. 907. 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.

     SEC. 908. TERMINATION OF THE COMMISSION.

       The Commission shall terminate one month after the date of 
     the submission of the report required by section 904(c).

     SEC. 909. DEFINITIONS.

       For purposes of this title--
       (1) the term ``intelligence agency'' means any agency, 
     office, or element of the intelligence community;
       (2) the term ``intelligence community'' shall have the same 
     meaning as set forth in section 3(4) of the National Security 
     Act of 1947 (50 U.S.C. 401a(4)); and
       (3) the term ``congressional intelligence committees'' 
     refers to the Select Committee on Intelligence of the Senate 
     and the Permanent Select Committee on Intelligence of the 
     House of Representatives.
       And the Senate agree to the same.
     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill, and the Senate amendment, 
     and modifications committed to conference:
     Dan Glickman,
     Bill Richardson,
     Norman D. Dicks,
     Julian C. Dixon,
     Robert Torricelli,
     Ronald Coleman,
     David E. Skaggs,
     James H. Bilbray,
     Nancy Pelosi,
     Greg Laughlin,
     Bud Cramer,
     Jack Reed,
     Larry Combest,
     Doug Bereuter,
     Robert K. Dornan,
     Bill Young,
     George W. Gekas,
     James V. Hansen,
     Jerry Lewis.
     As additional conferees from the Committee on Banking, 
     Finance and Urban Affairs, for consideration of sections 601 
     and 704 of the Senate amendment, and modifications committed 
     to conference:
     Henry Gonzalez,
     Joe Kennedy,
     Larry LaRocco,
     Al McCandless,
     Michael N. Castle.
     As additional conferees from the Committee on Government 
     Operations, for consideration of section 601 of the House 
     bill, and modifications committed to conference:
     John Conyers, Jr.,
     Edolphus Towns,
     Bill Clinger.
     As additional conferees from the Committee on the Judiciary, 
     for consideration of sections 802-804 of the House bill and 
     sections 601, 703-707, and 709-712 of the Senate amendment, 
     and modifications committed to conference:
     Henry Hyde,
                                Managers on the Part of the House.

     Dennis DeConcini,
     John Glenn,
     Bob Kerrey,
     Richard H. Bryan,
     Bob Graham,
     John F. Kerry,
     Max Baucus,
     J. Bennett Johnston,
     John Warner,
     Alfonse D'Amato,
     John C. Danforth,
     John H. Chafee,
     Ted Stevens,
     Richard G. Lugar,
     Malcolm Wallop,
     From the Committee on Armed Services:
     Sam Nunn,
     Strom Thurmond,
                               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. 4299), to authorize 
     appropriations for fiscal year 1995 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, 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

       Due to the classified nature of intelligence and 
     intelligence-related activities, a classified annex to this 
     joint explanatory statement serves as a guide to the 
     classified Schedule of Authorizations by providing a detailed 
     description of program and budget authority contained therein 
     as reported by the Committee of Conference.
       The actions of the conferees on all matters at difference 
     between the two Houses are shown below or in the classified 
     annex to this joint statement.
       A special conference group resolved differences between the 
     House and Senate regarding DoD intelligence related 
     activities, referred to as Tactical Intelligence and Related 
     Activities (TIARA). This special conference group was 
     necessitated by the differing committee jurisdictions of the 
     intelligence committees of the House and the Senate, and 
     consisted of members of the House and Senate Committees on 
     Armed Services and the House Permanent Select Committee on 
     Intelligence.
       The amounts listed for TIARA programs represent the funding 
     levels jointly agreed to by the TIARA conferees and the House 
     and Senate conferees for the National Defense Authorization 
     Act for Fiscal Year 1995. In addition, the TIARA conferees 
     have agreed on the authorization level, as listed in the 
     classified Schedule of Authorizations, the joint statement, 
     and its classified annex, for TIARA programs which fall into 
     the appropriations category of Military Pay.


                          sections 101 and 102

       Sections 101 and 102 of the conference report authorize 
     appropriations for the intelligence and intelligence-related 
     activities of the United States Government for fiscal year 
     1995 and establish personnel ceilings applicable to such 
     activities.


                              section 103

       Section 103 of the conference report authorizes 
     appropriations and personnel end-strengths for fiscal year 
     1995 for the Community Management Account. The Community 
     Management Account consists of the Community Management 
     Staff, the Center for Security Evaluation, the National 
     Intelligence Council, the Advanced Research and Development 
     Committee, the National Counterintelligence Center, the 
     Foreign Language Committee, and the Environmental Task Force. 
     The conference report authorizes $86,900,000 and 241 
     personnel for the Community Management Account, to be used in 
     connection with the performance of some of the tasks 
     associated with the responsibilities the Director of Central 
     Intelligence (DCI) has for the management of the intelligence 
     community. As part of the Office of the Director of Central 
     Intelligence, the Community Management Account is 
     administered in a manner consistent with the provisions of 
     the National Security Act of 1947 and the Central 
     Intelligence Agency Act of 1949.

 Title II--Central Intelligence Agency Retirement and Disability System


                              Section 201

       Section 201 of the conference report authorizes 
     appropriations for fiscal year 1995 of $198,000,000 for the 
     Central Intelligence Agency Retirement and Disability Fund, 
     the amount contained in both the House bill and the Senate 
     amendment.

                     Title III--General Provisions


                              section 301

       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 compensation or 
     benefits authorized by law. A provision identical to section 
     301 was contained in the House bill and a similar provision 
     was contained in the Senate amendment.


                              section 302

       Section 302 of the conference report provides that the 
     authorization of appropriations by the conference report 
     shall not be deemed to constitute authority for the conduct 
     of any intelligence activity which 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 
     similar to section 302 of the Senate amendment.


                              Section 303

       Section 303 of the conference report expresses the sense of 
     Congress that the Director of Central Intelligence should 
     continue to direct that elements of the intelligence 
     community should 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 303 has been contained in 
     previous intelligence authorization acts. Section 303 is 
     similar in intent to section 303 of the House bill. The 
     Senate amendment did not contain a similar provision.


                              section 304

       Section 304 of the conference report repeals section 107 of 
     the Intelligence Authorization Act for Fiscal Year 1987 
     (Public Law 99-569), which limited U.S. intelligence 
     cooperation with the government of South Africa. Section 304 
     is identical to section 303 of the Senate amendment. The 
     House bill did not contain a similar provision.
       The limitation contained in Public Law 99-569 reflected a 
     concern that the intelligence services of South Africa were 
     playing an important role in the government's efforts to 
     maintain the system of apartheid in the face of the 
     activities of internal opposition forces.
       Apartheid is no more. The people of South Africa have 
     freely elected a new government and inaugurated a new 
     president. Virtually all of the restrictions imposed upon 
     South Africa by the Comprehensive Anti-Apartheid Act of 1986 
     have been lifted. Attention is now being focused on fostering 
     the development of democratic institutions and processes. The 
     establishment of internal management and administrative 
     systems to improve accountability in, and oversight of, the 
     intelligence and security services should be a part of these 
     activities. The conferees are convinced the United States 
     intelligence agencies can play a helpful role in this effort, 
     as well as in other undertakings with the South African 
     government, and therefore believe that the current limitation 
     on cooperation should be removed.


                              section 305

       Section 305 of the conference report requires the Director 
     of Central Intelligence to submit a report to the 
     congressional intelligence committees, armed services 
     committees, and defense appropriations subcommittees no later 
     than December 1, 1994 on the advisability of providing for 
     mandatory retirement for expiration of time in class in a 
     manner comparable to the applicable provisions of section 607 
     of the Foreign Service Act of 1980 (22 U.S.C. 4007) for all 
     civilian employees of the Central Intelligence Agency, the 
     National Security Agency, the Defense Intelligence Agency, 
     the National Reconnaissance Office, the Central Imagery 
     Office, and the intelligence elements of the Army, Navy, Air 
     Force and Marine Corps. The report shall contain an 
     assessment of the feasibility of instituting a mandatory 
     retirement policy and alternative means of achieving the 
     objectives of such a policy, as well as an assessment by the 
     Secretary of Defense of the impact of a mandatory retirement 
     policy for civilian employees of the intelligence community 
     on all other Department of Defense civilian employees. The 
     report shall also include appropriate legislative 
     recommendations.
       Section 305 is similar to section 304 of the Senate 
     amendment. The House bill did not contain a similar 
     provision.

                 Title IV--Central Intelligence Agency


                              section 401

       Section 401 of the conference report deletes the provisions 
     in section 4(a) of the Central Intelligence Agency Act of 
     1949 which provide that medical treatment for illness or 
     injury overseas, or the cost of transporting employees to a 
     suitable hospital or clinic for such treatment, is not 
     compensable by the Director of Central Intelligence if the 
     condition resulted from ``vicious habits, intemperance, or 
     misconduct.'' The conferees note that deletion of this 
     language will not mandate compensation for such illness or 
     injuries but would permit the Director to pay expenses if 
     appropriate under regulations issued pursuant to the statute. 
     The conferees believe that deletion of the existing language 
     will eliminate the possibility that the CIA's alcohol 
     rehabilitation program could be seen as inconsistent with the 
     Agency's statutory authorities.
       Section 401 also corrects a statutory citation to section 
     10 of the Act of March 3, 1933, with a reference to section 
     5731 of title 5, United States Code and strike gender-
     specific language.
       Section 401 is identical to section 401 of the House bill 
     and similar to section 401 of the Senate amendment.


                              section 402

       Section 402 reflects the conferees' resolution of the 
     issues pertaining to the provisions of title VI of the House 
     bill. Title VI of the House bill would have established in 
     statute the offices of the inspector general at the National 
     Security Agency (NSA) and the Defense Intelligence Agency 
     (DIA) and would have made conforming amendments to the CIA 
     Inspector General Act, section 17 of the Central Intelligence 
     Agency Act of 1949.
       Because of concerns expressed by the Department of Defense, 
     the conferees chose not to include subsections (a) or (b) of 
     section 601 of the House bill, concerning the inspectors 
     general of DIA and NSA, in the conference report at this 
     time.
       Section 402 is substantially similar to section 601(c) of 
     the House bill except that the conferees agreed to eliminate 
     the requirement that the Inspector General of the Central 
     Intelligence Agency have experience in a federal office of 
     inspector general. Although such experience is highly 
     desirable, the conferees felt the requirement would have 
     greatly narrowed the pool of potential inspector general 
     appointees.
       The Senate amendment contained no similar provision.


                              section 403

       Section 403 of the Senate amendment authorized the 
     Secretary of Defense to expend $3 million to establish a 
     National Public Information Center for the purpose of using 
     unclassified information available in government data bases 
     to produce multimedia presentations to be used by other 
     government decision makers and the general public. The House 
     bill contained no similar provision.
       The conferees believe it would be worthwhile for the 
     government to develop more innovative presentations of its 
     unclassified data bases. The conferees further agree that 
     policy makers and the American public should derive greater 
     benefit from the government's information holdings. However, 
     the conferees do not believe that the creation of an 
     information center is necessary to address these 
     deficiencies. They agree that it would be more appropriate to 
     conduct a one-year project to produce a limited number of 
     multimedia presentations from a broad range of unclassified 
     government data, possibly augmented by commercial or private 
     unclassified data. These presentations, which should treat 
     topics of broad policy and general interest, would then be 
     reviewed by the congressional intelligence committees to 
     determine whether the project should be continued beyond 
     fiscal year 1995. In addition, the conferees believe that the 
     CIA's Office of the Open Source Coordinator is best equipped 
     to conduct such an effort. The conferees expect that in 
     executing this project, the intelligence community will 
     become familiar with the latest commercial multimedia and 
     graphical data interface techniques, and that the quality of 
     intelligence presentations to policymakers will thereby 
     improve. The conferees further fully expect all products to 
     be marked with copyright notices as appropriate and the 
     intellectual property rights associated with the information 
     and techniques utilized in this project will be respected in 
     the preparation and subsequent use of the products.
       Section 403 thus authorizes the Director of Central 
     Intelligence to expend not more than $3 million from funds 
     otherwise available under this Act to conduct an Advanced 
     Information Presentation Project for the purpose of: (1) 
     demonstrating the potential benefit to government decision 
     makers and the general public from the presentation of 
     unclassified U.S. government information in a multimedia 
     format, and (2) enabling the intelligence community to 
     develop or acquire state-of-the-art multimedia and graphical 
     interface techniques to improve multimedia intelligence 
     presentations.

         Title V--Department of Defense Intelligence Activities


                              section 501

       Section 501 of the conference report addresses issues 
     pertaining to the Central Imagery Office (CIO) which were 
     addressed by section 501 of the House bill and section 501 of 
     the Senate amendment.
       Subsection (a) amends the National Security Act of 1947 to 
     delete the general references in current law to ``a central 
     imagery authority'' and replace them with the name of the 
     CIO. This provision is similar to section 501(a) of the 
     Senate amendment. The House bill did not contain a similar 
     provision.
       Subsection (b) amends several provisions of titles 5 and 
     10, United States Code, as well as other statutes applicable 
     to government personnel, to provide the Secretary of Defense 
     with the same statutory authorities to manage the civilian 
     employees of the CIO as exist for the civilian employees of 
     the Defense Intelligence Agency (DIA). This provision is 
     identical to Section 501 of the House bill and is similar in 
     intent to section 501(b) of the Senate amendment.
       The conferees note that the DIA currently provides 
     personnel administrative support for the civilian employees 
     of the CIO. Section 501 is intended to provide the CIO the 
     same personnel authorities as the DIA. It is not intended to 
     require that the CIO secure administrative support only from 
     the DIA. The conferees expect that the CIO, rather than 
     creating an internal mechanism for providing administrative 
     support, will obtain such support from any component of the 
     Department of Defense determined to be capable of providing 
     it.


                              section 502

       Section 502 of the conference report amends section 2796 of 
     title 10, United States Code, to authorize the Director of 
     the Defense Mapping Agency to withhold from public disclosure 
     maps, charts, and geodetic data prepared specifically to 
     support ongoing military or intelligence operations, where 
     such products are not themselves classified. The conferees 
     view section 502 as a reasonable extension of the Director's 
     authority under curent law to withhold from public disclosure 
     products which would reveal military opeational or 
     contingency plans.
       Section 502 is substantially the same, except for technical 
     drafting differences, as section 502 of the Senate amendment. 
     The House bill did not contain a similar provision.


                              section 503

       Section 503 of the conference report clarifies that the 
     Privacy Act of 1974 (5 U.S.C. 552a(e)(3)) does not apply to 
     Department of Defense personnel authorized to collect 
     intelligence from human sources who are conducting, outside 
     the United States, an initial assessment contact of a United 
     States person as a potential source of foreign intelligence.
       The conferees agree the Privacy Act notice requirements as 
     now implemented may pose a serious risk to the safety 
     overseas of both the intelligence officer and the U.S. person 
     being assessed.
       The conferees believe these risks can be largely eliminated 
     if DoD intelligence officers authorized to collect 
     intelligence from human sources operating outside of the U.S. 
     are allowed one initial assessment contact with a potential 
     U.S. person source without being required to give notice of 
     governmental affiliation. The conferees intend that this 
     provision be construed in such a way as to minimize intrusion 
     on the privacy of the potential U.S. person. The conferees 
     intend that the initial assessment contact be no more than 
     one face-to-face meeting or its equivalent. Telephone 
     conversations which involve the solicitation of personal 
     information beyond the minimum needed to set up an 
     appointment to meet are considered by the conferees to be an 
     initial assessment contact. The conferees also believe that 
     no personal information solicited from the individual during 
     the initial assessment contact should be retained in a U.S. 
     government system of records if the individual is not 
     informed of the intelligence officer's governmental 
     affiliation. The conferees also expect that under no 
     circumstances should a potential U.S. person be requested or 
     utilized in any fashion to undertake any intelligence 
     activity by defense intelligence officers unless the 
     potential U.S. person is made willing that he or she is 
     acting on behalf of the U.S. government regardless of the 
     status of the initial assessment contact.
       The conferees expect that the appropriate committees of the 
     Congress will conduct vigorous oversight of the use of this 
     authority and thus agreed to require that the Department of 
     Defense maintain records concerning initial assessment 
     contacts outside the United States during which notice of 
     governmental affiliation was not given to a potential source 
     who is a United States person.
       The records should include for each such contact an 
     explanation of why notice of government affiliation could not 
     reasonably be provided, the nature of the information 
     obtained from the United States person as a result of the 
     contact, and whether additional contacts resulted with the 
     person concerned.
       Section 503 is similar to section 502 of the House bill. 
     The Senate amendment did not include a similar provision.


                              section 504

       Section 504 of the conference report clarifies that section 
     1006 of the National Defense Authorization Act for Fiscal 
     Year 1995 shall not apply to amounts which remain available 
     on the date of enactment of the Intelligence Authorization 
     Act for Fiscal Year 1995 for national foreign intelligence 
     programs, projects, and activities. The conferees note that 
     the aggregation of programs known as Tactical Intelligence 
     and Related Activities (TIARA) are not covered by section 504 
     because of a difference in jurisdiction between the House 
     Intelligence Committee, which shares jurisdiction over TIARA 
     programs with the House Armed Services Committee, and the 
     Senate Intelligence Committee which does not claim 
     jurisdiction over TIARA. The absence of a refernce to TIARA 
     in section 504 is not intended to reflect on the jurisdiction 
     of the House Intelligence Committee over intelligence 
     elements of this aggregation of programs.
       Section 504 was not a part of either the House bill or the 
     Senate amendment.

  Title VI--Construction of Facilities for the Intelligence Community


                              section 601

       Section 601 places certain limitations upon the funding 
     authorized by the bill for fiscal year 1995 for the National 
     Reconnaissance Office.
       Subsection (a) provides that $50,000,000 out of the 
     Miscellaneous Support account of the Mission Support 
     Consolidated Expenditure Center may not be obligated or 
     expended until the Director of Central Intelligence and the 
     Secretary of Defense have completed a review of the National 
     Reconnaissance Office Headquarters Building project and the 
     results of such review have been made available to the 
     intelligence committees. Subsection (a) also provides that no 
     funds authorized by the bill may be obligated or expended for 
     the purchase of any real property, or to contract for any 
     construction or acquisition, in connection with the 
     construction of buildings or facilities, unless and to the 
     extent that such purchases or contracts are entered into in 
     accordance with Department of Defense policies and 
     procedures, or unless the President determines that these 
     policies and procedures shall not apply. In this event, the 
     President is required by subsection (b) to advise the 
     intelligence committees in writing within 30 days of such 
     waiver.
       Subsection (c) provides that no funds available to the 
     National Reconnaissance Office may be obligated or expended 
     for the construction of the Headquarters Building if such 
     obligation or expenditure would cause the total cost of the 
     building to exceed $310 million, unless the authority for 
     such obligation or expenditure has been provided in an act 
     authorizing appropriations, an appropriations act, or in 
     accordance with applicable reprogramming procedures.
       Section 601 is similar to section 504 of the Senate 
     amendment. The House bill did not contain a similar 
     provision.


                              SECTION 602

       Section 602 of the conference report establishes procedures 
     for congressional notification and approval of certain 
     intelligence community construction and improvement projects.
       Section 602(a) specifies that no project for the 
     construction of any facility to be used primarily by 
     personnel of any component of the intelligence community 
     which has an estimated Federal cost in excess of $750,000 may 
     be undertaken unless such project is specifically identified 
     as a separate item in the President's annual fiscal year 
     budget request and is specifically authorized by the 
     Congress. The conferees understand the term ``estimated 
     Federal cost'' to include design construction, and fit-up 
     costs.
       Section 602(a) also specifies that, in the case of a 
     project for the construction of any facility to be used 
     primarily by personnel of any component of the intelligence 
     community having an estimated Federal cost greater than 
     $500,000 but less than $750,000 the congressional 
     intelligence committees shall be notified by the Director of 
     Central Intelligence. A similar notification shall be made in 
     the case of any improvement project for any facility to be 
     used primarily by personnel of any component of the 
     intelligence community which has an estimated Federal cost 
     greater than $500,000. It is the intent of the conferees that 
     notification occur for projects which are projected to cost 
     more than $500,000 at their inception, not when a series of 
     improvement projects at the same facility exceed $500,000.
       An exception to the notification and approval requirements 
     for construction projects exceeding $750,000 is provided in 
     section 602(b) for cases in which the Secretary of Defense 
     and the Director of Central Intelligence jointly determine 
     that the project is vital to the national security or to the 
     protection of health, safety, or the quality of the 
     environment, and the requirement for the project is so urgent 
     that it cannot be deferred until the next intelligence 
     authorization act. For construction projects primarily for 
     the Central Intelligence Agency, the determination that the 
     grounds for an exception exist shall be made solely by the 
     Director of Central Intelligence. When a determination is 
     made that ground for an exception exist, a report indicating 
     the justification for the project, justification for the 
     exception and the source of funds to be used for the project 
     must be submitted to the appropriate committees of the 
     Congress. No work on the project may begin until twenty-one 
     days after the report is received by the committees.
       Section 602(c) specifies that section 602 does not apply to 
     any project covered by section 601(a)(1)(A) or section 601(c) 
     of the conference report.
       The provisions of section 602 did not appear in either the 
     House bill or the Senate amendment.


                              section 603

       Section 603 of the conference report was included to 
     reflect the conferees' dissatisfaction with the lack of 
     specificity in the budget category referred to as ``base.'' 
     Section 603 requires that those congressional justification 
     materials submitted annually in support of the National 
     Foreign Intelligence Program budget request shall include the 
     same level of budgetary detail for the ``base'' category as 
     is provided for the categories of ``ongoing initiatives'' and 
     ``new initiatives.'' Additional legislation will be pursued 
     as necessary to achieve the goal of complete transparency in 
     the ``base'' budget, which the conferees believe will allow 
     for more effective internal as well as congressional 
     oversight.
       The provisions of section 603 were not included in either 
     the House bill or the Senate amendment.


                              section 604

       Section 604 of the conference report provides definitions 
     for certain terms used in title VI.

                  Title VII--Classification Management


                              section 701

       Section 701 of the conference report reflects the 
     conferees' resolution of the issues contained in section 702 
     of the House bill. The Senate amendment did not contain a 
     similar provision.
       As agreed to by the conferees, section 701 requires the 
     President to issue an executive order, providing for the 
     classification and declassification of information not later 
     than 90 days after the date of enactment of this Act. The 
     effective date of the executive order is to be 30 days after 
     it is submitted to the congressional intelligence committees 
     and the Committee on Government Operations of the House of 
     Representatives and the Committee on Governmental Affairs of 
     the Senate. Section 701 also expresses the sense of Congress 
     that the executive order should provide for the following:
       (1) that information should be classified only when its 
     public disclosure would cause identifiable damage to the 
     national security. The conferees believe that government 
     employees authorized to classify information should be able 
     to articulate how disclosure of such information would damage 
     the national security rather than citing vague references to 
     the ``national security'' as justification for 
     classification;
       (2) that classified information should be declassified if 
     the appropriate authority within the executive branch 
     determines that the government's interest in continuing to 
     protect the classified information in question is outweighed 
     by the public's interest in having the information available; 
     and
       (3) that classified information which is more than 25 years 
     old should be automatically declassified unless it falls 
     within a category designated by the President for document-
     by-document review to identify information whose disclosure 
     would clearly damage the national security. The conferees 
     believe that most classified information should have lost its 
     national security sensitivity with the passage of 25 years, 
     but recognize there may be certain categories, e.g. the 
     identification of intelligence sources or methods, that may 
     require continued classification. Executive agencies should 
     not continue the classification of such information, however, 
     unless it is clear, given the nature of the information 
     concerned, even after 25 years, that the national security 
     would be damaged by its disclosure.
       In including section 701 in the conference report, the 
     conferees intend to underscore their concern that the current 
     executive order on national security information, Executive 
     Order 12356, is now more than twelve years old, was 
     promulgated during the Cold War, and should be updated.


                              section 702

       Section 702 of the conference report requires each agency 
     funded in the National Foreign Intelligence Program and 
     receiving an appropriation for fiscal year 1995 of more than 
     $1 million in the security, countermeasures, and related 
     activities structural budget category to allocate at least 
     two percent of its total expenditure in this category to the 
     classification management consolidated expenditure center. 
     The funds so allocated are to be used to: (1) develop a 
     phased plan to implement declassification guidelines 
     contained in the executive order which replaces Executive 
     Order 12356 on national security information; (2) commence 
     the process of declassification and reduction of the amount 
     of archival classified documents maintained by each agency; 
     and (3) submit a report to the congressional intelligence 
     committees without 90 days after the end of fiscal year 1995 
     on the progress made in carrying out the process of 
     declassification with reference to the phased plan. The 
     contents of the phased plan are further specified in House 
     Report 103-541, Part I, which accomplishes the House bill.
       Section 702 is identical to section 701 of the House bill. 
     The Senate amendment did not contain a similar provision.

              Title VIII--Counterintelligence and Security


                              section 801

       Section 801 contains the short title of title VIII, the 
     Counterintelligence and Security Enhancements Act of 1994.


                              section 802

       Section 802 amends the National Security Act of 1947 by 
     adding a new title VIII on access to classified information. 
     It is similar to section 802 of the Senate amendment and 
     section 801 of the House bill.
       Section 801(a) of the new title VIII requires the President 
     to issue, within 180 days of enactment, regulations to 
     establish uniform procedures governing access to classified 
     information by employees in the executive branch of the 
     government. Like Section 702 of the Senate amendment, Section 
     801(a) provides that the regulations to be issued by the 
     President shall at a minimum provide for certain things. 
     Subsection (a)(1) specifies that, unless otherwise permitted 
     by the President, no employee of the executive branch may be 
     given access to classified information unless such employee 
     has been the subject of an appropriate background 
     investigation and such access is determined to be clearly 
     consistent with the national security. Subsection (a)(2) 
     provides that uniform requirements for background 
     investigations will be established for all employees of the 
     executive branch. Subsection (a)(3) specifies that as a 
     condition for receiving access to classified information, 
     executive branch employees will be required to provide 
     written consent permitting an authorized investigative agency 
     to obtain certain financial records and travel records during 
     the period of the employees' access and for three years 
     thereafter, in accordance with conditions and limitations set 
     forth elsewhere in the Act. The conferees note that the time 
     period was reduced from the five years contained in the 
     Senate amendment. Subsection (a)(4) provides that employees 
     who require access to particularly sensitive information, as 
     determined by the President, shall be required to submit 
     reports concerning their financial condition and travel, as 
     may be determined by the President. Finally, subsection 
     (a)(5) provides that uniform standards shall be established 
     to ensure that employees whose access to classified 
     information is being denied or terminated are appropriately 
     advised of the reasons for such denial or termination and 
     given an adequate opportunity to respond to the information 
     which forms the basis for the denial or termination.
       The conferees wish to make clear with respect to subsection 
     (a)(5) that the words ``appropriately advised'' refer to both 
     the manner and content of the notice. The conferees intend 
     that employees whose access to classified information is 
     being denied or terminated will be officially advised of the 
     reasons for such denial or termination to the maximum extent 
     consistent with the national security. The conferees 
     recognize there will be rare occasions when information which 
     forms the basis for a proposed denial or termination of 
     access to classified information was itself derived from 
     classified sources or by a classified method which cannot be 
     divulged to the employee concerned. However, even in these 
     circumstances, the department or agency concerned should make 
     every reasonable effort to convey to the employee concerned 
     the basis for the denial or termination of access short of 
     disclosing classified information which reveals a sensitive 
     source or method.
       The primary purpose of this requirement is to provide a 
     procedure that will help ensure that departments and agencies 
     do not make security determinations on the basis of 
     inaccurate or unreliable information. It is not uncommon for 
     background investigations to develop information which does 
     not relate to the subject of the investigation or is 
     otherwise inaccurate. Reliance upon such information by the 
     department or agency concerned could easily have an adverse 
     impact on the career and livelihood of the employee 
     concerned. The conferees believe the minimal procedure 
     required by subsection (a)(5) will go far towards preventing 
     such results. In requiring this procedure, it is not the 
     intent of the conferees that subsection (a)(5) affect in any 
     way existing case law on the subject of security clearances 
     (e.g. Department of Navy v. Egan, 484 U.S. 518 (1988)), nor 
     is subsection (a)(5) intended to alter or affect in any way 
     the recourse employees may have, through administrative or 
     judicial means, to seek redress for an adverse determination 
     made by a department or agency with regard to their security 
     clearance.
       The conferees also agreed to the addition of section 801(b) 
     which had been in neither the Senate amendment not the House 
     bill. This section provides that nothing in section 801(a) 
     shall be deemed to limit the responsibility or power of an 
     agency head pursuant to other law or executive order to deny 
     or terminate access to classified information if the national 
     security so requires. Specifically, by requiring the 
     President to promulgate uniform standards to ensure due 
     process where access to classified information is being 
     denied or terminated, it is not the intent of the conferees 
     to limit or affect the authority of department or agency 
     heads, pursuant to statute or executive order, to terminate 
     access to classified information or to terminate employment 
     in the interests of national security, nor to affect the 
     procedures intended to provide due process in such situations 
     which may be provided pursuant to such statutes or executive 
     orders.
       Subsection (b)(2) was added by the conferees to require a 
     report to the congressional intelligence committees when a 
     department or agency head exercises the authority provided by 
     other statutes or executive order, and referred to in 
     subsection (b)(1), to terminate access to classified 
     information if the national security so requires.
       Section 802 is similar to section 802 of the Senate 
     amendment and to section 804 (of the new title VIII) proposed 
     in the House bill. The conferees agreed to the following 
     modifications of the Senate language:
       (1) Section 802(a)(2)(A) of the new title VIII was modified 
     to reflect the reduced time period for which the employee was 
     required to provide access to the records covered by the Act, 
     i.e. from five years in the Senate bill to three years:
       (2) Subsection (a)(2)(B), which sets forth the 
     circumstances which must be present in order for a request 
     for access to records to be made under the Act, was modified 
     in several respects. Paragraph (i) was modified to provide 
     that there must be ``reasonable grounds to believe, based on 
     credible information,'' that the employee concerned is, or 
     may be, disclosing classified information in an unauthorized 
     manner to a foreign power or agent of a foreign power. The 
     Senate amendment had required only ``information or 
     allegations'' of such conduct. Paragraph (ii) was modified to 
     provide that the employing agency must have information which 
     it ``deems credible'' of unexplained affluence or excessive 
     indebtedness before it could seek access to records. The 
     Senate amendment had required only that the employing agency 
     have ``information'' of such affluence or indebtedness. The 
     conferees believe these modifications provide more 
     appropriate standards for obtaining access to records under 
     this section.
       (3) In section 804(4) of the new title VIII, the definition 
     of the term ``employee'' was modified by inserting at the end 
     of the definition, ``except as otherwise determined by the 
     President.'' The conferees agreed to this modification to 
     permit the President latitude to exclude certain categories 
     from the term ``employee'' where compliance with the 
     requirements of the statute is either not feasible or not 
     considered to be necessary.
       Section 802(f) of the new title VIII states ``Nothing in 
     this section may be construed to affect the authority of an 
     investigative agency to obtain information pursuant to the 
     Right to Financial Privacy Act (12 U.S.C. 3401 et seq.) or 
     the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).'' The 
     conferees intend that nothing in this section should be 
     construed to limit the authority of federal agencies which 
     conduct background investigations of federal employees from 
     continuing to conduct credit and financial checks under the 
     Right to Financial Privacy Act or the Fair Credit Reporting 
     Act as a routine part of assessing a person's financial 
     responsibility for access to classified information or 
     employment in a sensitive position.


                              section 803

       Section 803 of the conference report amends section 3071 of 
     title 18, United States Code, to authorize the Attorney 
     General to give rewards for information leading to the arrest 
     or conviction of individuals for the commission of espionage, 
     or conspiracy to commit espionage, or leading to the 
     prevention or frustration of an act of espionage against the 
     United States. The conferees believe that the discretionary 
     authority conferred upon the Attorney General by section 803 
     should not be used to reward individuals who have a pre-
     existing duty to report suspected breaches of security or who 
     are otherwise remunerated by the U.S. Government for 
     counterintelligence information.
       Section 803 is identical to section 802 of the House bill 
     and substantially the same, except for technical drafting 
     differences, to section 705 of the Senate amendment.


                              section 804

       Section 804 of the conference report amends 18 U.S.C. 798 
     and 50 U.S.C. 783 to provide for the forfeiture of the 
     proceeds of espionage activities to the United States and the 
     deposit of the amounts forfeited in the Crime Victims Fund 
     established under section 1402 of the Victims of Crime Act of 
     1984 (42 U.S.C. 10601).
       Section 804 is substantially similar, except for technical 
     drafting differences, to section 707 of the Senate amendment 
     and section 804 of the House bill.


                              section 805

       Section 805 of the conference report provides for the 
     denial of annuities or retired pay to individuals convicted 
     in an impartial foreign court of appropriate jurisdiction of 
     conduct which would constitute a violation of U.S. espionage 
     statutes, upon the Attorney General's certification that the 
     individual was afforded due process and the evidence would 
     have been admissible in a U.S. court. The Attorney General's 
     certification would be subject to review by the United States 
     Court of Claims.
       Section 805 is identical to section 805 of the House bill 
     and, except for the right of appeal to the Court of Claims, 
     to section 708 of the Senate amendment.


                              section 806

       Section 806 authorizes the Secretary of Defense to provide 
     post employment assistance to former civilian employees of 
     intelligence components of the Department who are found to be 
     ineligible for continued access to Sensitive Compartmented 
     Information. Assistance may be provided for up to five years 
     after the individual's employment is terminated, if the 
     Secretary determines that the assistance is essential to 
     maintain the judgment and stability of the former employee 
     and avoid unlawful disclosure of classified information to 
     which the former employee had access. The conferees 
     anticipated that the Secretary of Defense may delegate the 
     authority to provide assistance to the heads of the 
     intelligence components as the Secretary deems appropriate. 
     The Secretary shall submit an annual report with respect to 
     any expenditure under this section to the appropriations, 
     defense and intelligence committees of the Congress.
       Section 806 of the conference report is similar to section 
     806 of the House bill. The conferees wish to clarify, 
     however, that any post-employment assistance provided 
     pursuant to authority contained in the conference report be 
     limited to employees of intelligence components of the 
     Department. A technical drafting change to section 806 of the 
     House bill was made to accomplish that purpose. The Senate 
     amendment contained no provision on this matter.


                              section 807

       Section 807 amends the Foreign Intelligence Surveillance 
     Act of 1978 (FISA) (50 U.S.C. 1801 et seq.) by adding a new 
     title III which provides in general for a court order 
     procedure to govern the conduct of physical searches 
     undertaken within the United States for foreign intelligence 
     purposes. The procedure is similar to that used to authorize 
     electronic surveillance for foreign intelligence purposes 
     within the United States.
       Section 807 is similar to section 709 of the Senate 
     amendment. The House bill had no similar provision. (For a 
     detailed discussion of the background of this legislation as 
     well as a detailed section-by-section analysis of the 
     provisions of the Senate amendment, see Senate Report 103-
     296, accompanying S. 2056, The Counterintelligence and 
     Security Enhancements Act of 1994.)
       Due to the complexity of section 807, the discussion below, 
     which includes an explanation of the modifications to the 
     Senate amendment made by the conferees, is organized using 
     the section numbers of the new title III of FISA as found 
     both in the Senate amendment and in the conference report.
     Section 301
       Section 301 contains the definitions of terms used in the 
     new title III. This section is identical to section 309 of 
     the Senate amendment with the exception of two modifications 
     agreed to by the conferees.
       The first modification is the addition of subsection 
     (4)(D), which was not in the Senate amendment. The addition 
     of this subsection is necessitated by the inclusion of 
     section 302, discussed below, which also was not in the 
     Senate amendment. Subsection (4)(D) provides minimization 
     procedures to govern physical searches undertaken of certain 
     ``foreign powers'' pursuant to the approval of the Attorney 
     General under section 302. (See the explanation below.) The 
     definition provides, in effect, that no information, 
     material, or property of a United States person acquired 
     during such searches shall be disclosed, disseminated or used 
     for any purpose or retained for longer than 24 hours unless a 
     court order is obtained under section 304 of this title or 
     unless the Attorney General determines that the information 
     indicates a threat of death or serious bodily harm to any 
     person. This provision is virtually identical to the 
     minimization procedure contained in section 101(h)(4) of the 
     Act which governs the acquisition of the communications of 
     United States persons obtained during an electronic 
     surveillance of the same categories of foreign power approved 
     by the Attorney General pursuant to section 102 of the Act.
       The second modification to the Senate amendment involves 
     the addition of item (B) to the language of section 301(5). 
     This provides that the term ``physical search'' does not 
     include ``the acquisition by the United States Government of 
     foreign intelligence information from international or 
     foreign communications, or foreign intelligence activities 
     conducted in accordance with otherwise applicable Federal law 
     involving a foreign electronic communications system, 
     utilizing a means other than electronic surveillance as 
     defined in section 101(f) of this Act.'' This language is 
     intended to clarify that certain communications intelligence 
     activities undertaken by the United States Government are not 
     encompassed by the definition of ``physical search.'' It is 
     identical to language contained in 18 U.S.C. 2511(2)(e), 
     pertaining to the interception of wire, oral, or electronic 
     communications for law enforcement purposes, where it was 
     included to clarify that the intelligence activities were not 
     covered by 18 U.S.C. 2511.
     Section 302
       Section 302 did not appear in the Senate amendment and was 
     added in its entirety by the conferees. It is very similar to 
     section 102 of the Act which authorizes the President, 
     through the Attorney General, to authorize electronic 
     surveillances without a court order for periods up to a year 
     of certain categories of foreign powers, as defined in 
     section 101 of the Act.
       Section 302 authorizes the President, through the Attorney 
     General, to authorize physical searches without a court order 
     for periods up to a year if the Attorney General certifies in 
     writing and under oath that the physical search is solely 
     directed at the premises, information, material, or property 
     used exclusively by, or under the open and exclusive control 
     of, a foreign power or powers as defined in section 
     101(a)(1), (2), or (3) of FISA; that there is no substantial 
     likelihood that the search will involve the premises, 
     information, material, or property of a United States person; 
     and that the proposed minimization procedures meet the 
     requirements imposed by the definition of ``minimization 
     procedures'' contained in section 301(4). Section 302 also 
     requires that the minimization procedures approved by the 
     Attorney General have been reported to the intelligence 
     committees 30 days prior to their effective date, unless the 
     Attorney General determines that their immediate use is 
     required and provides the reason for this determination to 
     the intelligence committees.
       Like electronic surveillance conducted under title I of the 
     Act, section 302 requires the Attorney General to file the 
     certifications required by this section under seal with the 
     Foreign Intelligence Surveillance Court, established by 
     section 103 of the Act. These certifications remain sealed 
     unless an application is made for a court order pursuant to 
     section 301(4) and section 303, or the certification is 
     necessary to determine the legality of the physical search 
     under section 305(g). The Attorney General is also authorized 
     by section 302 to direct specific landlords, custodians, or 
     other specified persons to provide certain assistance to such 
     searches and to maintain appropriate secrecy, as well as to 
     provide appropriate compensation for assistance rendered.
       Similar to sections 102(b) and 103 of the Act pertaining to 
     electronic surveillance, section 302 also provides in general 
     terms that the Attorney General may file applications for 
     court orders authorizing physical searches with the Foreign 
     Intelligence Surveillance Court (``the Court'') if the 
     President has authorized the Attorney General to do so; and, 
     in turn, authorizes the Court to grant orders in accordance 
     with section 304 approving such physical searches. The Court 
     is specifically authorized to hear applications and grant 
     orders authorizing physical searches, except that no judge 
     may hear an application for an order which has previously 
     been denied by another judge designated under the Act. The 
     court of review established under the Act is authorized to 
     hear appeals from denials of applications made under this 
     title, and provision is made for the records of all 
     proceedings under this title to be maintained under security 
     procedures established by the Chief Justice of the United 
     States in consultation with the Attorney General and the 
     Director of Central Intelligence.
       The conferees agreed to the addition of section 302 in 
     order to provide the Attorney General with the same authority 
     with respect to physical searches that the Attorney General 
     is currently authorized by title I of the FISA with respect 
     to electronic surveillances.
     Section 303
       Section 303 sets forth the requirements for applications 
     for a court order approving a physical search pursuant to 
     this title. It is identical to section 302 of the Senate 
     amendment except that a new subsection (a)(8) has been added 
     by the conferees which provides that in addition to the other 
     statements and certifications required by section 303 to be 
     part of the application to the court, the Attorney General 
     shall, where the physical search involves a search of a 
     residence of a United States person, state what investigative 
     techniques have been previously utilized to obtain the 
     foreign intelligence information concerned and the degree to 
     which these techniques resulted in acquiring such 
     information.
       In adding this requirement to the application process, the 
     conferees recognize that the search of a residence of a 
     United States person raises special concerns and 
     sensitivities. While a certification must accompany all 
     applications for physical searches that the foreign 
     intelligence information cannot be obtained by normal 
     investigative means, the conferees believe in the case of 
     residential searches, the Court should be specifically 
     apprised of the investigative efforts previously made to 
     acquire the information in question and what the results of 
     those efforts have been before an order is granted.
     Section 304
       Section 304 provides the grounds upon which a judge on the 
     Foreign Intelligence Surveillance Court may grant an order 
     authorizing a physical search and provides what such orders 
     shall contain. It also provides time limits for which orders 
     may be granted and provides for extensions of orders. It also 
     authorizes judges on the Court to assess compliance with the 
     statute at any time after a physical search has been approved 
     or carried out. Similar to the provisions of section 105(e) 
     pertaining to electronic surveillances, the Attorney General 
     is authorized to approve emergency searches in accordance 
     with the conditions set forth in the section. Finally, 
     section 304 provides that applications and orders granted 
     under this title shall remain available to the Court for a 
     period of ten years.
       Section 304 is identical to section 303 of the Senate 
     amendment with two exceptions. Section 303(a)(3)(C) of the 
     Senate amendment has been deleted because it appears to have 
     been included as the result of administrative error. Section 
     303(c)(1) has been amended by reducing the period for which a 
     court order may authorize a physical search pursuant to this 
     title from 90 days to 45 days. The conferees believe a 45-day 
     period is adequate in terms of conducting searches pursuant 
     to this title.
     Section 305
       Section 305 governs the use of information obtained from 
     physical searches authorized pursuant to this title as well 
     as use of information about the searches themselves. It 
     parallels the provisions of section 106 of the Act pertaining 
     to electronic surveillances.
       Section 305 provides that information concerning a United 
     States person obtained from physical searches pursuant to 
     this title cannot be used or disclosed by federal officers 
     and employees except as provided in the minimization 
     procedures set forth in section 301(4). No information 
     obtained from such searches may be used for law enforcement 
     purposes without the advance authorization of the Attorney 
     General. Whenever in a federal or state criminal or civil 
     proceeding, the U.S. Government authorizes the use of 
     information derived from such searches, it is required to 
     notify the person whose premises or property or information 
     was the subject of the search. Once so advised, the person 
     may move to suppress the use of the information derived from 
     the search on the grounds that the information was unlawfully 
     acquired or the search was not made in conformity with an 
     order of authorization or approval. If such a motion is made, 
     the court receiving the motion, or the U.S. district court in 
     the district where the motion is received by another 
     authority, shall, if the Attorney General files an affidavit 
     under oath that disclosure or any adversary hearing would 
     harm the national security of the United States, review in 
     camera and ex parte the application, order, and other 
     materials relating to the search necessary to determine 
     whether the search was lawfully authorized and conducted. If 
     the court determines the search was not lawfully authorized, 
     the information derived from the search must be suppressed.
       Section 305 is identical to section 304 of the Senate 
     amendment except for the following modifications agreed to by 
     the conferees:
      (1) Subsection (b) was added in its entirety. This 
     subsection provides that where a physical search authorized 
     pursuant to this title involves the residence of a United 
     States person, and, at any time after the search the Attorney 
     General determines there is no national security interest in 
     continuing to maintain the secrecy of the search, the 
     Attorney General shall provide notice to the U.S. person 
     whose residence was searched of the fact of the search and 
     identify any property that was seized, altered, or reproduced 
     during such search. While the conferees appreciate that most 
     physical searches authorized pursuant to this title will 
     likely remain secret for national security reasons, where 
     those searches involve the residence of United States 
     persons, continuing consideration should be given by the 
     Attorney General to providing notice of the search if 
     continued secrecy no longer becomes necessary, or in 
     situations where a mistake is made and a search is conducted 
     of a residence of other than the target of the search. In 
     such circumstances, the conferees believe notice should be 
     provided.
      (2) Subsections (d) and (e) were modified by the conferees 
     by striking the phrase ``of the premises or property of that 
     aggrieved person'' as it had appeared in subsections 304(c) 
     and (d) of the Senate amendment. The effect of these 
     modifications is to make these subsections consistent with 
     the definition of ``aggrieved person'' which includes not 
     only persons whose premises or property are searched, but 
     also persons about whom information is sought by such 
     searches (regardless of whether they own the property or 
     premises involved).
       (3) The final modification made by the conferees to the 
     Senate amendment involves the inclusion in the last sentence 
     of subsection (g) of the phrase: ``or may require the 
     Attorney General to provide to the aggrieved person a summary 
     of such materials.'' The last sentence of subsection (g) 
     addresses the situation referred to above, where a motion has 
     been made by the subject of the search (i.e. ``aggrieved 
     person'') to suppress information obtained from the search 
     for purposes of a criminal, civil or administrative 
     proceeding, and the Attorney General has filed an affidavit 
     that disclosure to the ``aggrieved person'' would be harmful 
     to the national security. At this juncture, the court is 
     required to conduct an ex parte, in camera proceeding to 
     determine the legality of the physical search. As part of 
     this process, the court may determine, under subsection (g), 
     to provide the ``aggrieved person,'' in accordance with 
     appropriate security procedures and protective orders, with 
     portions of the application, order, or other materials only 
     where necessary to make an accurate determination of the 
     legality of the physical search. The modification agreed to 
     by the conferees would provide the court in such 
     circumstances with the additional option of requiring the 
     Attorney General to provide to the aggrieved person a summary 
     of the relevant materials, without having to divulge the 
     highly sensitive details of the application, order or other 
     supporting materials.
     Section 306
       Section 306, providing for semiannual reports to the 
     intelligence committees, is similar to section 305 of the 
     Senate amendment.
       The conferees agreed, however, that in addition to keeping 
     the intelligence committees ``fully informed'' on a 
     semiannual basis, the Attorney General should provide 
     semiannual reports to both the intelligence committees and 
     the judiciary committees of the House of Representatives and 
     the Senate with respect to physical searches pursuant to this 
     title and particularly which involved United States persons. 
     Accordingly, section 306 was modified to impose such a 
     requirement, requiring that the total number of applications 
     for searches be specified; that the number of orders either 
     granted, modified, or denied be specified; and that the 
     number of physical searches involving the residences, 
     offices, or personal property of United States persons be 
     specified, as well as the number of occasions, if any, where 
     the Attorney General provided notice to a U.S. person whose 
     residence was the subject of a physical search authorized by 
     the title pursuant to section 305(b).
     Section 307
       Section 307 provides penalties for violations of this title 
     and is identical to section 306 of the Senate amendment.
     Section 308
       Section 308 provides for civil actions arising from 
     violations of this title and is identical to section 307 of 
     the Senate amendment.
     Section 309
       Section 309 pertains to authorization of physical searches 
     by the President, through the Attorney General, in time of 
     war and is identical to section 308 of the Senate amendment.


                              section 808

       Section 808 of the conference report would create a new 
     misdemeanor offense applicable to federal employees who 
     knowingly remove classified documents or materials without 
     authority, with the intent to retain them at an unauthorized 
     location. Persons convicted of such offense could be fined up 
     to $1,000 or imprisoned for up to one year, or both. The 
     conferees agreed the provision of documents or materials to 
     the Congress shall not constitute an offense under this 
     section.
       Section 808 is similar to section 710 of the Senate 
     amendment. The House bill did not contain a similar 
     provision.


                              section 809

       Section 809 of the conference report would require the 
     President to submit a report to Congress which would:
       (1) review the respective policy functions and operational 
     roles of the executive branch agencies involved in 
     identifying and countering threats to United States industry 
     posed by foreign industrial espionage, including the manner 
     in which those functions and roles are coordinated;
       (2) describe the means by which information on such threats 
     and on methods to protect against them is communicated to 
     U.S. industries in general and specifically to U.S. companies 
     known to be targets of foreign industrial espionage;
       (3) describe specific measures which are or could be 
     undertaken to improve the coordination and communication 
     described above; and
       (4) discuss the threat to United States industries posed by 
     foreign industrial espionage, including foreign governments 
     involved, industrial sectors, information and technologies 
     targeted, and the methods by which the espionage is 
     conducted.

     The portion of the report describing the nature of the threat 
     is to be updated annually. The existing requirement contained 
     in the Defense Production Act for a report on foreign 
     industrial espionage targeting critical technologies would be 
     clarified to ensure that the report examines not only 
     espionage directed by foreign governments but also that 
     directly assisted by foreign governments.
       Section 809 is identical to section 711 of the Senate 
     amendment. The House bill did not contain a similar 
     provision.


                              section 810

       Section 810 of the conference report provides that funding 
     from the base budget for the National Security Agency shall 
     be transferred to the United States Army signals intelligence 
     activities directed at counternarcotics targets. Section 712 
     of the Senate amendment provided that not less than 
     $10,000,000 should be transferred for this purpose. The 
     conferees agreed that not less than $5,000,000 was the 
     appropriate level of resources for this provision.
  Section 810 is otherwise identical to section 710 of the Senate 
amendment except for technical drafting differences.


                              section 811

  Section 811 is similar to section 703 of the Senate amendment. The 
House bill had no similar provision.
  Section 811 provides for the coordination of counterintelligence 
activities by establishing a National Counterintelligence Policy Board 
and charging it with certain functions, and by requiring the heads of 
departments and agencies of the executive branch to report certain 
counterintelligence information to the Federal Bureau of Investigation 
(FBI) and to cooperate in subsequent investigations which the FBI may 
undertake involving the department or agency's employees, operations, 
or information. A reciprocal obligation is imposed on the FBI to 
provide pertinent espionage information to affected departments and 
agencies and to consult with respect to subsequent investigative 
actions which involve the department or agency concerned. Both 
obligations may be waived by the President in extraordinary 
circumstances. The President must report to the intelligence committees 
within 30 days of the waiver that this authority has been exercised and 
provide the reasons for the waiver, either at that time or as soon as 
national security considerations permit. An annual report to the 
appropriate congressional committees is required of the Director of the 
FBI, in consultation with the Director of Central Intelligence and 
Secretary of Defense, with respect to compliance with the obligations 
imposed by section 811 during the preceding year.
  The conferees made several modifications to the Senate amendment.
  Section 811(a) which establishes the National Counterintelligence 
Policy Board was modified to eliminate specific designation of the 
Chairman and members of the Board. The conferees believe such 
designations are more appropriately left to the discretion of the 
President. At the same time, it is the conferees' understanding that 
the President will provide for participation on the Board by 
representatives of the CIA, FBI, the Department of Defense, State, and 
Justice, and the National Security Council.
  Section 811(c)(1)(A), which sets forth the circumstances under which 
departments and agencies must report counterintelligence information to 
the FBI, was modified to require such reports where information is 
obtained ``which indicates that classified information is being, or may 
have been, disclosed in an unauthorized manner to a foreign power or 
agent of a foreign power.'' The Senate amendment had provided that the 
information must indicate that classified information ``is being, or 
may have been, deliberately disclosed (etc.)'' The conferees believed 
that this formulation was likely to result in information not being 
reported to the FBI until a department or agency had determined for 
itself that there had been an intentional compromise by an employee. A 
report at this point may well prejudice the FBI's ability to pursue the 
case investigatively.
       In requiring the heads of departments and agencies to 
     ensure that the FBI is immediately advised of any information 
     which indicates classified information has been, or may have 
     been, disclosed in an unauthorized manner to a foreign power 
     or agent of a foreign power, the conferees do not intend that 
     the department or agency report information to the FBI which 
     is baseless, scurrilous, or patently without foundation. Nor 
     is it the intent of the conferees to require information to 
     be reported to the FBI which indicates only that classified 
     information was left vulnerable to compromise to unauthorized 
     persons, e.g. by leaving a safe unlocked or classified 
     documents unsecured in a hotel room, in violation of 
     applicable security regulations; or which indicates that 
     classified information has been leaked without authorization 
     to the press (and is therefore available to foreign powers 
     and agents of foreign powers). Rather, the intent of the 
     conferees is that when departments and agencies receive 
     information indicating that classified information has been, 
     or may have been, compromised to a foreign power or agent of 
     a foreign power through clandestine activities or means, 
     human or technical, a report to the FBI is required. If there 
     is reasonable doubt with respect to whether a report is 
     required by this section, departments and agencies should 
     consult informally with appropriate representatives of the 
     FBI to resolve the issue.
       The conferees made two modifications to the Senate 
     amendment in section 811(c)(2), which establishes reciprocal 
     reporting requirements for the FBI. The first modification 
     was to change the obligation to report ``counterintelligence 
     information'' to ``espionage information.'' The conferees 
     believe this narrower term better expresses their intent. The 
     second modification was to eliminate the requirement in the 
     Senate amendment that the FBI consult in advance with respect 
     to investigative activities it might undertake involving the 
     personnel, operations, or information of the department or 
     agency concerned. The conferees believed that this 
     requirement to consult in advance on every aspect of an 
     investigation could impact adversely on the FBI's ability to 
     conduct an espionage investigation. Accordingly, the 
     requirement to consult ``in advance'' was eliminated. The 
     conferees nonetheless believe that an appropriate level of 
     consultation is desirable on a continuing basis where an 
     espionage investigation involves the personnel, operations, 
     or information of another department or agency.
       The conferees also amended subsection (c)(4) of the Senate 
     amendment by including as recipients of the annual compliance 
     report the Committees on Judiciary in the Senate and House of 
     Representatives. Should these reports contain highly 
     classified information pertaining to U.S. intelligence 
     operations, the conferees anticipate that such information 
     will be provided in an appropriately classified supplement to 
     the intelligence committees.

Title IX--Commission on the Roles and Capabilities of the United States 
                         Intelligence Community

       Title VIII of the Senate amendment established a Commission 
     to review the roles and capabilities of the U.S. intelligence 
     community. The House bill contained no similar provision.
       The Commission would consist of seventeen members, nine 
     appointed by the President and eight appointed by the 
     congressional leadership. The Commission would provide a 
     comprehensive and independent review and evaluation of the 
     activities of the U.S. intelligence community in the 
     aftermath of the Cold War. In order to achieve that 
     objective, the Senate amendment contained a list of nineteen 
     specific topics for the Commission to consider. This review 
     would represent one of the most comprehensive assessments of 
     the intelligence community since its inception in 1947.
       Title IX is similar to title VIII of the Senate amendment 
     but contains several modifications agreed to by the 
     conferees.
       First, the conferees specified that no more than five of 
     the nine Commission members appointed by the President may be 
     from the same political party. This change is intended to 
     enhance the credibility of the Commission by ensuring that 
     the Commission is not perceived as a partisan organization.
       Second, recognizing that members of the President's Foreign 
     Intelligence Advisory Board (PFIAB) may be appointed to the 
     Commission, the conferees agreed to modify the language in 
     the Senate amendment that prohibited current intelligence 
     community employees from serving on the Commission staff. The 
     conference agreement permits up to three intelligence 
     community employees who are currently detailed to the 
     Executive Office of the President to work for the Commission. 
     However, none of these individuals are eligible to serve as 
     the Commission's staff director. The conferees also agreed to 
     permit the use of intelligence community employees for 
     clerical and administrative duties.
       Third, the conferees agreed to modify three of the specific 
     topics the Commission is to consider. The topics now include 
     what functions should continue to be assigned to the 
     organizations of the intelligence community, including the 
     Central Intelligence Agency (CIA); whether the organization 
     and framework of the organizations of the intelligence 
     community, including the CIA, provide the optimal structure; 
     and the manner in which the U.S. intelligence community 
     compares to the intelligence communities of other countries 
     in general.
       Finally, due to the extraordinary sensitivity of the issues 
     to be considered by the Commission, the conferees agreed to 
     adopt an amendment waiving the provisions of the Federal 
     Advisory Committee Act requiring public access to advisory 
     committee meetings. The conferees also agreed to waive the 
     provisions of the Freedom of Information Act with regard to 
     the Commission's records until those records are transferred 
     to the National Archives.
       The conferees expect the President and the other appointing 
     authorities to move expeditiously in appointing Commission 
     members. The conferees believe that Commission members must 
     be prepared to invest a substantial amount of time in the 
     Commission's activities given the importance and complexity 
     of the many issues that the Commission must review.
       The conferees emphasize that the primary objective of this 
     provision is to produce a credible, independent and objective 
     review of the intelligence community. The conferees believe 
     that this review should be conducted in a non-partisan 
     manner, and without preconception about the appropriateness 
     of current levels of spending on intelligence programs and 
     activities. The conferees urge the appointing authorities to 
     keep these objectives, which will significantly determine the 
     utility to a future Congress of the Commission's final 
     report, in mind as they select Commission members.


            provisions not included in the conference report

     Personnel ceiling adjustments
       Section 103 of the Senate amendment authorized the Director 
     of Central Intelligence to exceed the personnel ceilings 
     established by the amendment in certain circumstances. The 
     House bill did not contain a similar provision.
       While the authority contained in section 103 of the Senate 
     amendment had been a part of intelligence authorization acts 
     for a number of years, the conferees believed that the 
     continued inclusion of the provision was inconsistent with 
     congressional, and other, mandates to significantly reduce 
     the number of employees in the intelligence community. The 
     conferees therefore agreed to exclude section 103 of the 
     Senate amendment from the conference report.
     Disclosure of classified information by Members of Congress 
         and executive branch officers and employees
       Section 304 of the House bill prohibited, during fiscal 
     years 1995, any element of the United States Government for 
     which funds are authorized by the Intelligence Authorization 
     Act for Fiscal Year 1995 from providing any classified 
     information derived from that element's intelligence or 
     intelligence-related activities to a member of the House of 
     Representatives until that member had signed an oath of 
     secrecy and the oath had been published in the Congressional 
     Record. Section 305 of the House bill would have extended the 
     coverage of section 304 to members of the Senate and officers 
     or employees of the executive branch. The Senate amendment 
     did not contain similar provisions. The House recedes.
     Confirmation of the General Counsel of the Central 
         Intelligence Agency
       Section 402 of the Senate amendment established the CIA 
     General Counsel as a Senate-confirmed Presidential appointee 
     position. The House bill contained no similar provision.
       On the basis of the record developed in hearings held by 
     the House committee on this issue, it was the judgment of a 
     majority of the House conferees that extending a confirmation 
     requirement to the CIA General Counsel position was not 
     necessary. The Senate recedes.
     Report concerning the cost of classification
       Section 703 of the House bill required the Director of 
     Central Intelligence, within seven days of the enactment of 
     the Act, to submit a report, in classified and unclassified 
     form, on classification costs to the congressional 
     intelligence committees. The report would identify: the cost 
     of classifying documents and keeping information classified 
     within each agency of the intelligence community; the number 
     of personnel within each such agency assigned to classifying 
     documents and keeping information classified; and a plan, 
     with specific goals, to reduce expenditures for keeping 
     information classified for each such agency. The Senate 
     amendment contained no similar provision.
       A report which addresses the concerns embodied in section 
     703 of the House bill was delivered to the House Intelligence 
     Committee on September 21, 1994. Although not entirely 
     responsive to the request which had formed the basis for 
     section 703, the conferees believed that the report which was 
     provided, and the promise contained within it to devise an 
     improved cost definition and tracking methodology, were 
     sufficient to warrant the exclusion of the section from the 
     conference report.
     Disclosure of consumer credit reports for counterintelligence 
         purposes
       Section 704 of the Senate amendment amended the Fair Credit 
     Reporting Act to provide the Federal Bureau of Investigation 
     (FBI) with a means of obtaining access to consumer credit 
     records in counterintelligence investigations. The House bill 
     did not contain a similar provision.
       The conferees were aware that a provision providing FBI 
     access to consumer credit records was a part of H.R. 1015, a 
     bill reported from the House Banking Committee and passed by 
     the House in June. Although not the same as the provision in 
     the Senate version of the intelligence authorization bill, 
     the provision in H.R. 1015 did form the basis for 
     negotiations between representatives of the Department of 
     Justice and the congressional banking and judiciary 
     committees. Those negotiations produced an agreement 
     satisfactory to all parties and strongly supported by the 
     conferees. The conferees believe that it is important that 
     the FBI be authorized to access consumer credit records for 
     counterintelligence purposes.
       In deference to the jurisdictional concerns of the banking 
     committees, and with the assurance that every effort would be 
     made to clear the legislation containing the agreement for 
     the President's signature in the 103rd Congress, the 
     conferees agreed to exclude section 704 from the conference 
     report. However, the conferees intend to pursue similar 
     legislation during the drafting of the fiscal year 1996 
     intelligence authorization bill if the banking committees' 
     measure containing this provision is not enacted this year.
     Interdiction of aerial drug trafficking
       Section 901 of the House bill indicated that, while it was 
     the policy of the United States to provide intelligence 
     assistance to foreign governments to support their efforts to 
     interdict aerial drug trafficking, such assistance was for 
     purposes other than facilitating the intentional damage or 
     destruction of aircraft in violation of international law. 
     Section 902 of the House bill expressed the sense of Congress 
     that executive branch interpretations of law relevant to the 
     provision of assistance to foreign governments for aerial 
     drug interdiction should be reviewed. The Senate amendment 
     contained no similar provisions.
       The conferees were aware that section 1012 of the National 
     Defense Authorization Act for Fiscal Year 1995 addressed the 
     issue of United States assistance to the aerial drug 
     interdiction efforts of foreign governments in a broader 
     manner than had been attempted in sections 901 and 902. 
     Accordingly, the conferees agreed to exclude sections 901 and 
     902 from the conference report.
     Espionage committed in any district
       Section 803 of the House bill and section 707 of the Senate 
     amendment provided that the trial for any offense involving a 
     violation of certain espionage or related statutes which was 
     begun or committed out of the jurisdiction of any particular 
     state or district may be held in the District of Columbia or 
     in any other district authorized by law.
       The conferees were aware that the Violent Crimes Control 
     and Law Enforcement Act of 1994 contains a section addressing 
     the issue addressed by section 803 and section 707. 
     Accordingly, the conferees agreed to exclude a provision on 
     this matter 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 conference:
     Dan Glickman,
     Bill Richardson,
     Norman D. Dicks,
     Julian C. Dixon,
     Robert Torricelli,
     Ronald Coleman,
     David E. Skaggs,
     James H. Bilbray,
     Nancy Pelosi,
     Greg Laughlin,
     Bud Cramer,
     Jack Reed,
     Larry Combest,
     Doug Bereuter,
     Robert K. Dornan,
     Bill Young,
     George W. Gekas,
     James V. Hansen,
     Jerry Lewis,
     As additional conferees from the Committee on Banking, 
     Finance and Urban Affairs, for consideration of sections 601 
     and 704 of the Senate amendment, and modifications committed 
     to conference:
     Henry Gonzalez,
     Joe Kennedy,
     Larry LaRocco,
     Al McCandless,
     Michael N. Castle,
     As additional conferees from the Committee on Government 
     Operations, for consideration of section 601 of the House 
     bill, and modifications committed to conference:
     John Conyers, Jr.,
     Edolphus Towns,
     Bill Clinger,
     As additional conferees from the Committee on the Judiciary, 
     for consideration of sections 802-804 of the House bill and 
     sections 601, 703-707, and 709-712 of the Senate amendment, 
     and modifications committee to conference:
     Henry Hyde,
                                Managers on the Part of the House.

     Dennis DeConcini,
     John Glenn,
     Bob Kerrey,
     Richard H. Bryan,
     Bob Graham,
     John F. Kerry,
     Max Baucus,
     J. Bennett Johnston,
     John Warner,
     Alfonse D'Amato,
     John C. Danforth,
     John H. Chafee,
     Ted Stevens,
     Richard G. Lugar,
     Malcolm Wallop,
     From the Committee on Armed Services:
     Sam Nunn,
     Strom Thurmond,
     Managers on the Part of the Senate.

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