[Congressional Record Volume 140, Number 143 (Wednesday, October 5, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 5, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                  FBI COUNTERINTELLIGENCE ACT OF 1994

  Mr. KENNEDY. Mr. Speaker, I ask unanimous consent that the Committee 
on Banking, Finance and Urban Affairs be discharged from further 
consideration of the bill (H.R. 5143) to amend the Fair Credit 
Reporting Act to provide for disclosures by consumer reporting agencies 
to the Federal Bureau of Investigation for counterintelligence 
purposes, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  Mr. BEREUTER. Mr. Speaker, this Member is pleased to rise in support 
of H.R. 5143, which this Member introduced. This Member would like to 
thank the distinguished gentleman from Texas [Mr. Gonzalez], the 
chairman of the House Banking Committee, and the distinguished 
gentleman from Iowa [Mr. Leach], the ranking member of the House 
Banking Committee, for bringing this measure to the House floor. This 
Member also extends his appreciation to the gentleman from 
Massachusetts [Mr. Kennedy], the chairman of the Banking Subcommittee 
on Consumer Credit and Insurance, and the gentleman from California 
[Mr. McCandless], the ranking member of this subcommittee, for their 
support for this legislation. Appreciation is further extended to the 
distinguished gentleman from Kansas [Mr. Glickman], the chairman of the 
House Select Committee on Intelligence, and the gentleman from Texas 
[Mr. Combest], the ranking member of the House Select Committee on 
Intelligence, for their assistance and cooperation in the negotiations 
regarding this measure.
  Last week the House passed S. 783, the consumer reporting reform, by 
voice vote under suspension of the rules. A provision in the House-
passed version of S. 783 authorizes the FBI to obtain credit reports 
for counterintelligence purposes. This Member appreciates the timely 
consideration of this measure on the House floor, as there is a 
possibility that the Senate will not take up the House-version of S. 
783 prior to adjournment. Furthermore there is a need for the FBI to 
have this authority as this legislation will enable the FBI to conduct 
counterintelligence investigations in a more efficient manner while 
retaining important individual privacy interests.
  H.R. 5143 permits the FBI to obtain limited information concerning a 
consumer if its Director determines that there are specific and 
articulable facts that show that such information is necessary for an 
authorized counterintelligence investigation. This limited information 
includes the names and addresses of all financial institutions at which 
a consumer maintains or has maintained an account, and identifying 
information respecting a consumer--limited to name, address, former 
addresses, places of employment, or former places of employment. In 
addition, the bill specifies that the FBI may obtain a consumer report 
on a consumer if the Director of the FBI obtains a court order that 
certifies that there are specific and articulable facts that show that 
such information is necessary for an authorized counterintelligence 
investigation.
  Mr. Speaker, this Member would again like to thank Chairman Gonzalez, 
Ranking Member Leach, Chairman Glickman, and Ranking Member Combest for 
their support and for the assistance their staffs gave me in preparing 
this legislation. This Member urges his colleagues to support this 
measure. It is clear from the Aldrich Ames espionage case that this 
legislation is needed.
  The Clerk read the bill as follows:

                               H.R. 5143

       Be it enacted by the Senate and House of 
     Representatives of the United States of America in 
     Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``FBI Counterintelligence Act 
     of 1994''.

     SEC. 2. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO FBI 
                   FOR COUNTERINTELLIGENCE PURPOSES.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.) is amended by adding after section 623 the 
     following new section:

     ``Sec. 624. Disclosures to FBI for counterintelligence 
       purposes

       ``(a) Identity of Financial Institutions.--Notwithstanding 
     section 604 or any other provision of this title, a consumer 
     reporting agency shall furnish to the Federal Bureau of 
     Investigation the names and addresses of all financial 
     institutions (as that term is defined in section 1101 of the 
     Right to Financial Privacy Act of 1978) at which a consumer 
     maintains or has maintained an account, to the extent that 
     information is in the files of the agency, when presented 
     with a written request for that information, signed by the 
     Director of the Federal Bureau of Investigation, or the 
     Director's designee, which certifies compliance with this 
     section. The Director or the Director's designee may make 
     such a certification only if the Director or the Director's 
     designee has determined in writing that--
       ``(1) such information is necessary for the conduct of an 
     authorized foreign counterintelligence investigation; and
       ``(2) there are specific and articulable facts giving 
     reason to believe that the consumer--
       ``(A) is a foreign power (as defined in section 101 of the 
     Foreign Intelligence Surveillance Act of 1978) or a person 
     who is not a United States person (as defined in such section 
     101) and is an official of a foreign power; or
       ``(B) is an agent of a foreign power and is engaging or has 
     engaged in international terrorism (as that term is defined 
     in section 101(c) of the Foreign Intelligence Surveillance 
     Act of 1978) or clandestine intelligence activities that 
     involve or may involve a violation of criminal statutes of 
     the United States.
       ``(b) Identifying information.--Notwithstanding the 
     provisions of section 604 or any other provision of this 
     title, a consumer reporting agency shall furnish identifying 
     information respecting a consumer, limited to name, address, 
     former addresses, places of employment, or former places of 
     employment, to the Federal Bureau of Investigation when 
     presented with a written request, signed by the Director or 
     the Director's designee, which certifies compliance with this 
     subsection. The Director or the Director's designee may make 
     such a certification only if the Director or the Director's 
     designee has determined in writing that--
       ``(1) such information is necessary to the conduct of an 
     authorized counterintelligence investigation; and
       ``(2) there is information giving reason to believe that 
     the consumer has been, or is about to be, in contact with a 
     foreign power or an agent of a foreign power (as defined in 
     section 101 of the Foreign Intelligence Surveillance Act of 
     1978).
       ``(c) Court Order for Disclosure of Consumer Reports.--
     Notwithstanding section 604 or any other provision of this 
     title, if requested in writing by the Director of the Federal 
     Bureau of Investigation, or a designee of the Director, a 
     court may issue an order ex parte directing a consumer 
     reporting agency to furnish a consumer report to the Federal 
     Bureau of Investigation, upon a showing in camera that--
       ``(1) the consumer report is necessary for the conduct of 
     an authorized foreign counterintelligence investigation; and
       ``(2) there are specific and articulable facts giving 
     reason to believe that the consumer whose consumer report is 
     sought--
       ``(A) is an agent of a foreign power; and
       ``(B) is engaging or has engaged in international terrorism 
     (as that term is defined in section 101(c) of the Foreign 
     Intelligence Surveillance Act of 1978) or clandestine 
     intelligence activities that involve or may involve a 
     violation of criminal statutes of the United States.

     The terms of an order issued under this subsection shall not 
     disclose that the order is issued for purposes of a 
     counterintelligence investigation.
       ``(d) Confidentiality.--No consumer reporting agency or 
     officer, employee, or agent of a consumer reporting agency 
     shall disclose to any person, other than those officers, 
     employees, or agents of a consumer reporting agency necessary 
     to fulfill the requirement to disclose information to the 
     Federal Bureau of Investigation under this section, that the 
     Federal Bureau of Investigation has sought or obtained the 
     identity of financial institutions or a consumer report 
     respecting any consumer under subsection (a), (b), or (c) and 
     no consumer reporting agency or officer, employee, or agent 
     of a consumer reporting agency shall include in any consumer 
     report any information that would indicate that the Federal 
     Bureau of Investigation has sought or obtained such 
     information or a consumer report.
       ``(e) Payment of Fees.--The Federal Bureau of Investigation 
     shall, subject to the availability of appropriations, pay to 
     the consumer reporting agency assembling or providing reports 
     or information in accordance with procedures established 
     under this section, a fee for reimbursement for such costs as 
     are reasonably necessary and which have been directly 
     incurred in searching, reproducing, or transporting books, 
     papers, records, or other data required or requested to be 
     produced under this section.
       ``(f) Limit on Dissemination.--The Federal Bureau of 
     Investigation may not disseminate information obtained 
     pursuant to this section outside of the Federal Bureau of 
     Investigation, except to the Department of Justice as may be 
     necessary for the approval or conduct of a foreign 
     counterintelligence investigation, or, where the information 
     concerns a person subject to the Uniform Code of Military 
     Justice, to appropriate investigative authorities within the 
     military department concerned as may be necessary for the 
     conduct of a joint foreign counterintelligence investigation.
       ``(g) Rules of Construction.--Nothing in this section shall 
     be construed to prohibit information from being furnished by 
     the Federal Bureau of Investigation pursuant to a subpoena or 
     court order, or in connection with a judicial or 
     administrative proceeding to enforce the provisions of this 
     Act. Nothing in this section shall be construed to authorize 
     or permit the withholding or information from the Congress.
       ``(h) Reports to Congress.--On a semiannual basis, the 
     Attorney General of the United States shall fully inform the 
     Permanent Select Committee on Intelligence and the Committee 
     on Banking, Finance and Urban Affairs of the House of 
     Representatives, and the Select Committee on Intelligence and 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate concerning all requests made pursuant to subsections 
     (a), (b), and (c).
       ``(i) Damages.--Any agency or department of the United 
     States obtaining or disclosing any consumer reports, records, 
     or information contained therein in violation of this section 
     is liable to the consumer to whom such consumer reports, 
     records, or information relate in an amount equal to the sum 
     of--
       ``(1) $100, without regard to the volume of consumer 
     reports, records, or information involved;
       ``(2) any actual damages sustained by the consumer as a 
     result of the disclosure;
       ``(3) if the violation is found to have been willful or 
     intentional, such punitive damages as a court may allow; and
       ``(4) in the case of any successful action to enforce 
     liability under this subsection, the costs of the action, 
     together with reasonable attorney fees, as determined by the 
     court.
       ``(j) Disciplinary Actions for Violations.--If a court 
     determines that any agency or department of the United States 
     has violated any provision of this section and the court 
     finds that the circumstances surrounding the violation raise 
     questions of whether or not an officer or employee of the 
     agency or department acted willfully or intentionally with 
     respect to the violation, the agency or department shall 
     promptly initiate a proceeding to determine whether or not 
     disciplinary action is warranted against the officer or 
     employee who was responsible for the violation.
       ``(k) Good-Faith Exception.--Notwithstanding any other 
     provision of this title, any consumer reporting agency or 
     agent or employee thereof making disclosure of consumer 
     reports or identifying information pursuant to this 
     subsection in good-faith reliance upon a certification of the 
     Federal Bureau of Investigation pursuant to provisions of 
     this section shall not be liable to any person for such 
     disclosure under this title, the constitution of any State, 
     or any law or regulation of any State or any political 
     subdivision of any State.
       ``(l) Limitation of Remedies.--Notwithstanding any other 
     provision of this title, the remedies and sanctions set forth 
     in this section shall be the only judicial remedies and 
     sanctions for violation of this section.
       ``(m) Injunctive Relief.--In addition to any other remedy 
     contained in this section, injunctive relief shall be 
     available to require compliance with the procedures of this 
     section. In the event of any successful action under this 
     subsection, costs together with reasonable attorney fees, as 
     determined by the court, may be recovered.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of the Fair Credit Report Act (15 U.S.C. 1681a et 
     seq.) is amended by adding after the item relating to section 
     623 the following:

``624. Disclosures to FBI for counterintelligence purposes.''.

       (c) Repeal of Provisions.--
       (1) Repeal.--The following provisions of the Fair Credit 
     Reporting Act, as added by this section, are repealed:
       (A) Section 624.
       (B) In the table of contents at the beginning of the Fair 
     Credit Reporting Act, the item relating to section 624.
       (2) Effective Date.--Paragraph (1) shall take effect on the 
     date that is 5 years after the date of the enactment of this 
     Act.

     SEC. 3. LIMITATION ON APPLICATION OF SECTION 2 AND REPEAL OF 
                   ANY AMENDMENTS MADE.

       Section 2 shall not have any legal effect after the date of 
     the enactment of the Consumer Reporting Reform Act of 1994. 
     Any provisions of the Fair Credit Reporting Act that were 
     added to that Act by the amendments made by section 2 of this 
     Act are repealed effective on the date of the enactment of 
     the Consumer Reporting Reform Act of 1994.
  The bill was ordered to be engrossed and read a third time, was read 
the third time, and passed, and a motion to reconsider was laid on the 
table.

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