[Congressional Record Volume 141, Number 100 (Monday, June 19, 1995)]
[Senate]
[Pages S8616-S8621]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



[[Page S 8616]]

                         ADDITIONAL STATEMENTS

                                 ______


          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1996

 Mr. SPECTER. Mr. President, on June 14, 1995, I filed, on 
behalf of myself and my distinguished colleague and vice chairman of 
the Select Committee on Intelligence, Senator Kerrey, a bill which 
authorizes appropriations for fiscal year 1996 for the intelligence 
activities and programs of the U.S. Government. The Select Committee on 
Intelligence approved the bill by a unanimous vote on May 24, 1995, and 
ordered that it be favorably reported.
  This bill would:
  First, authorize appropriations for fiscal year 1996 for (a) the 
intelligence activities and programs of the U.S. Government; (b) the 
Central Intelligence Agency Retirement and Disability System; and (c) 
the Community Management Account of the Director of Central 
Intelligence;
  Second, authorize the personnel ceilings as of September 30, 1996, 
for the intelligence activities of the United States and for the 
Community Management Account of the Director of Central Intelligence;
  Third, authorize the Director of Central Intelligence, with Office of 
Management and Budget approval, to exceed the personnel ceilings by up 
to 2 percent;
  Fourth, permit the President to delay the imposition of sanctions 
related to proliferation of weapons of mass destruction when necessary 
to protect an intelligence source or method or an ongoing criminal 
investigation;
  Fifth, provide for forfeiture of the U.S. Government contribution to 
the Thrift Savings Plan under the Federal Employees Retirement System 
[FERS], along with interest, if an employee is convicted of national 
security offenses;
  Sixth, restore spousal benefits to the spouse of an employee so 
convicted if the spouse cooperates in the investigation and 
prosecution;
  Seventh, to allow employees of the excepted services to take an 
active part in certain local elections;
  Eighth, amend the Fair Credit Reporting Act to permit the Federal 
Bureau of Investigation to obtain consumer credit reports necessary to 
foreign counterintelligence investigations under certain circumstances 
and subject to appropriate controls on the use of such reports; and
  Ninth, make certain other changes of technical nature to existing law 
governing intelligence agencies.
  The classified nature of U.S. intelligence activities prevents the 
committee from disclosing the details of its budgetary recommendations. 
However, the committee has prepared a classified supplement to the 
report, which contains: First, the classified annex to the report; 
second, and the classified schedule of authorizations which is 
incorporated by reference in the act and has the same legal status as a 
public law. The classified annex to the report explains the full scope 
and intent of the committee's actions as set forth in the classified 
schedule of authorizations.
  This classified supplement to the committee report is available for 
review by any Member of the Senate, subject to the provisions of Senate 
Resolution 400 of the 94th Congress.
  The classified supplement is also made available to affected 
departments and agencies within the intelligence community.


                       scope of committee review

  As it does annually, the committee conducted a detailed review of the 
administration's budget request for the National Foreign Intelligence 
Program [NFIP] for fiscal year 1996. The committee also reviewed the 
administration's fiscal year 1996 request for a new intelligence budget 
category, called the Joint Military Intelligence Program [JMIP]. The 
committee's review included a series of briefings and hearings with the 
Director of Central Intelligence [DCI], the Acting Deputy Assistant 
Secretary of Defense for Intelligence and Security, and other senior 
officials from the intelligence community, numerous staff briefings, 
review of budget justification materials, and numerous written 
responses provided by the intelligence community to specific questions 
posed by the committee.
  In addition to its annual review of the administration's budget 
request, the committee performs continuing oversight of various 
intelligence activities and programs, to include the conduct of audits 
and reviews by the committee's audit staff. These inquiries frequently 
lead to actions initiated by the committee with respect to the budget 
of the activity or program concerned.
  The committee also reviewed the administration's fiscal year 1996 
budget requests for the Tactical Intelligence and Related Activities 
[TIARA] Program aggregation of the Department of Defense. The 
committee's recommendations regarding these programs are provided 
separately to the Committee on Armed Services for consideration within 
the context of that committee's annual review of the National Defense 
Authorization Act.


                  followup to the ames espionage case

  In the wake of last year's controversy surrounding the Ames espionage
   case, the intelligence community leadership pledged renewed 
dedication to the counterintelligence mission. In the testimony he gave 
before the committee at his confirmation hearing in open session, DCI 
Deutch stated that counterintelligence was one of the four principal 
purposes toward which the intelligence community should direct its 
efforts.

  The committee and CIA Inspector General reports on the Ames espionage 
case published last year identified several serious shortcomings on the 
part of the Central Intelligence Agency. The committee held a closed 
hearing with intelligence community officials on January 25, 1995, to 
review progress made to date in implementing counterintelligence 
reforms recommended by the aforementioned reports by DCI Woolsey. The 
committee also focused on the adequacy of counterintelligence programs 
and activities in the context of its review and markup of the 
administration's fiscal year 1996 budget request and provides several 
recommendations to enhance U.S. capabilities in this critical area in 
the classified annex accompanying the report.
  Another issue raised by the Ames case is the apparent failure of the 
intelligence community to weed out poor performers. That Aldrich Ames 
was not only retained but promoted despite clear problems with alcohol 
and marginal performance is testament to a personnel process in need of 
reform. The committee has included in this bill a provision requiring 
the DCI to develop for all civilian employees in the intelligence 
community personnel procedures to provide for mandatory retirement for 
expiration of time in class and termination based on relative 
performance, comparable to sections 607 and 608, respectively, of the 
Foreign Service Act of 1980.


                      focus on high-priority areas

  Notwithstanding the rhetorical priority placed on critical 
intelligence topics such as proliferation, terrorism, and 
counternarcotics, the committee has identified areas where insufficient 
funds have been programmed for new capabilities, or where activities 
are funded in the name of high-priority targets which make little or no 
contribution to the issue. Therefore, in the classified annex 
accompanying the report, the committee recommends a number of 
initiatives to enhance U.S. capabilities in the areas of proliferation, 
terrorism, and counternarcotics.


           creation of a joint military intelligence program

  As noted above, this year the administration submitted a modification 
of the existing budgeting structure for intelligence activities and 
programs, by adding a third budget category--the Joint Military 
Intelligence Program--to supplement the existing NFIP and TIARA. The 
administration acted to resubordinate formerly national and tactical 
programs under JMIP and created a new management structure to oversee 
JMIP that includes senior officials of the intelligence community and 
Defense. The JMIP Program executive is the Deputy Secretary of Defense, 
who also chairs the new Defense Intelligence Executive Board [DIEB]--a 
senior management body providing planning, programming, and budget 
oversight of defense intelligence. JMIP was initially established by 
Secretary of Defense memorandum dated May 14, 1994, which was 
superseded by Department of Defense directive 5205.0, dated [[Page S 
8617]] April 7, 1995. The administration is submitting the first JMIP 
budget request to the Congress in fiscal year 1996.
  The committee does not yet endorse the decision by the Deputy 
Secretary of Defense and the Director of Central Intelligence [DCI] to 
develop a new set of funding criteria for intelligence activities. The 
committee understands the Defense Department's requirement to exercise 
more top-down oversight and control of defense intelligence programs 
and to create a management forum for evaluating these activities. 
Additionally, advances in technology have made the former definitions 
of national and tactical less meaningful to the budget process. 
However, the committee has reservations about whether the 
administration proposal for three intelligence programs is the optimal 
solution. Further, the committee is not convinced that the presence of 
the Director of Central Intelligence on the DIEB, or the joint review 
process undertaken by the DCI and Deputy Secretary of Defense, will 
ensure that both intelligence community and Defense Department equities 
are served in the planning, programming, and management of all 
intelligence activities and programs. The committee plans to review the 
appropriate budgeting structure for intelligence as part of its review 
of the roles and missions of the intelligence community later this 
year.
  In addition, the committee is concerned that the fiscal year 1996 
budget request includes many programs that are budgeted in one 
intelligence program but more appropriately belong in another 
intelligence program according to the definitions set forth by the 
Deputy Secretary of Defense and the DCI. A partial listing of such 
programs is provided by the committee for illustrative purposes:
  Programs belonging in NFIP because they serve multiple departments:
  Cobra Dane, which this fiscal year is programmed in the 
administration's budget request for the Arms Control and Disarmament 
Agency. The committee recommends returning funding responsibility for 
this important arms control monitoring capability to the NFIP;
  Air Force's Cobra Judy, a specialized shipborne reconnaissance 
program, funded in TIARA;
  Navy's P-3C Reef Point, a specialized airborne reconnaissance 
program, funded in TIARA.
  Programs belonging in JMIP because they serve multiple DOD 
components:
  Army's Guardrail and airborne reconnaissance low programs, funded in 
TIARA;
  Air Force's E-8C joint surveillance tracking and reconnaissance 
system, funded in TIARA;
  Air Force's space-based infrared system, funded in TIARA.
  Programs belonging in TIARA because they serve single military 
departments:
  Army's European command combat intelligence readiness facility, 
funded in the NFIP;
  Navy's fleet ocean surveillance information facility in the European 
theater, funded in the NFIP.
  With the exception of Cobra Dane, the committee makes no 
recommendations this fiscal year to transfer any of these programs, 
primarily to avoid confusion and the potential for an unintended 
appropriated-not authorized situation. Further, the committee does not 
necessarily agree that last year's decision by the administration to 
consolidate funding for spaceborne and airborne reconnaissance 
acquisition in the NFIP and JMIP respectively--regardless of the 
intended customer base--makes sense in light of the new definitions for 
programming and budgeting intelligence activities and programs.
  The committee believes that the DCI and Deputy Secretary of Defense 
should review jointly the budget categories of these and other programs 
prior to the submission of the fiscal year 1997 budget request and make 
the appropriate adjustments. Further, the DCI and Deputy Secretary of 
Defense should consider whether split funding arrangements; that is, 
funding provided by more than one intelligence budget category, are 
required for those organizations charged with acquisition of 
intelligence platforms; that is, the Defense Airborne Reconnaissance 
Office and the National Reconnaissance Office, on the grounds of 
improved management efficiency without regard to the consumer base as 
defined by Executive Order 12333 and Department of Defense Directive 
5205.0. The committee requests that a report assessing these issues and 
outlining any specific programmatic adjustments made in the President's 
fiscal year 1997 budget request to more accurately reflect the intent 
of the new budgeting system be provided to the Intelligence and Defense 
Committees by March 1, 1996.


                   committee recommendations on jmip

  Unlike the activities of the National Foreign Intelligence Program 
which the committee also authorizes, many activities funded by the new 
Joint Military Intelligence Program are unclassified. However, the 
amount of the total fiscal year 1996 budget request for JMIP, like that 
for the NEIP, is classified, as is any comprehensive treatment of JMIP 
elements. Given these facts, and in order to provide for the greatest 
degree of openness possible, the committee provides in the following 
sections its unclassified recommendations on JMIP elements. Further 
recommendations, as well as classified details on these unclassified 
recommendations, are provided in the classified annex accompanying this 
bill.


                   airborne reconnaissance priorities

  The committee believes that it is vital to maintain a robust airborne 
reconnaissance force that is capable of collection satisfying priority 
intelligence requirements in peacetime, crisis, and war. The committee 
also understands that, in a zero sum gain budget environment, choices 
need to be made between upgrades to current manned system and the 
development of new unmanned platforms. Due to the increasing demands 
and requirements placed on our Nation's current generation of manned 
reconnaissance systems, the committee makes the following 
recommendations to redirect resources requested for unmanned aerial 
vehicle development activities to several manned reconnaissance 
upgrades which the committee views as essential in order to provide 
mission-capable forces to the warfighting commanders-in-chief [CINC's].
  Accordingly, the committee recommends changes to the administration's 
fiscal year 1996 budget request to terminate one of five unmanned 
aerial vehicle [UAV] programs currently under development by the 
Defense Airborne Reconnaissance Program [DARP] and, instead, to 
reallocate these resources to provide for the upgrade of existing 
manned reconnaissance platforms.


                Conventional High Altitude Endurance UAV

  The committee recommends termination of the conventional high 
altitude endurance unmanned aerial vehicle [CONV HAE UAV] development 
effort, a reduction to the DARP in fiscal year 1996 of $117 million. 
The committee believes that the CONV HAE UAV will not provide an 
increased capability over
 the current U-2 airborne reconnaissance fleet and is therefore not 
required. The U-2 is an operational system currently supporting 
warfighting and national intelligence requirements. The CONV HAE UAV is 
an advanced concept technology demonstration [ACTD] project and has not 
achieved first flight.

  In fact, the U-2 is a much more capable multisensor reconnaissance 
aircraft today than the CONV HAE UAV is designed to be. The U-2 fleet 
provides radar, electro-optical, and film imagery as well as electronic 
intelligence collection support to national, theater, and tactical 
commanders. The CONV HAE UAV will have only imagery sensors, and these 
will be less capable than those on-board the U-2. The U-2 has a much 
greater payload capacity than the CONV HAE UAV design. The U-2 affords 
a deeper look capability than planned for the CONV HAE UAV. Further, 
the committee understands that the CONV HAE UAV operational concept, 
now under development, is virtually identical to that of the U-2.
  Cost comparisons are difficult to make because the U-2 is an existing 
asset flying missions on a daily basis and the CONV HAE UAV is an ACTD 
and has no flight experience. However, information provided to the 
committee by the DARP indicates that the flying hour costs of the UAV 
are comparable to the U-2.
  The committee believes that development by the DARP of the low 
observable high altitude endurance unmanned [[Page S 8618]] aerial 
vehicle [LO HAE UAV] as a complementary system to the U-2 will provide 
the most capability to national policymakers and the warfighter. The 
committee strongly suggests that the Department investigate increases 
in capability that can be achieved in the LO HAE UAV if the goal for 
unit fly-away cost is increased from $10 to $20 million. The committee 
requests that the DARO prepare an analysis on this alternative and 
provide it to the intelligence and defense committees by March 1, 1996.


                 RC-135V/W Rivet Joint Engine Upgrades

  Rivet Joint is an Air Force reconnaissance program which provides all 
weather, worldwide signals intelligence collection support to theater 
commanders. The committee has become concerned with the high OPTEMPO of 
the RC-135V/W Rivet Joint reconnaissance fleet. The RC-135 airframes 
currently are logging an extraordinary number of annual flight hours. 
Additionally, the schedule frequency and the extended mission times of 
the Rivet Joint program contribute significantly to the fuel and 
operating costs of the aircraft. Further, the current engines do not 
meet State III noise levels or EPA emission standards.
  The committee is aware that the Air Force is considering the 
establishment of a reengining program for the RC-135 aircraft. 
Reengining with the CFM-56 engines common to the tanker fleet and 
commercial airlines would increase RC-135 nominal operating altitudes 
considerably, thereby greatly enhancing sensor field-of-view and area 
coverage, decreasing fuel consumption, increasing on-station time, and 
improving short-field capability for contingency operations. Current 
tanker support requirements and tanker flying could also be reduced 
significantly.
  Therefore, the committee recommends an authorization of $79.5 million 
in fiscal year 1996 to begin reengining the RC-135 fleet. The committee 
expects the DARP to budget the additional funds required to continue 
reengining in fiscal year 1997 and beyond.


                              u-2 upgrades

  While the committee is supportive of the DARP initiative to define a 
joint airborne SIGINT architecture [JASA], there is concern about the 
affordability of this approach for the military departments. The 
committee is also concerned with the Defense Department's apparent 
decision not to continue upgrading current platforms while focusing 
funding exclusively on a new development program. Therefore, the 
committee recommends an authorization of $20 million in fiscal year 
1996 for the DARP to initiate a sensor upgrade program for the U-2 
fleet. Further details about the proposed upgrade are contained in the 
classified annex accompanying this bill. The committee expects the DARP 
to budget for the remaining funds required to complete this upgrade in 
fiscal year 1997 and beyond. The committee also believes that this 
upgrade should be fully compliant with JASA standards.
  The committee also makes a recommendation to improve the defensive 
capabilities of the U-2 fleet and provides $13 million in fiscal year 
1996 for this purpose. Details of this initiative are included in the 
classified annex accompanying this bill. As with the proposed sensor 
upgrade, the committee expects the DARP to budget for the remaining 
funds required to complete this upgrade in fiscal year 1997 and beyond.


         defense intelligence counter drug analysis initiatives

  In line with the committee's efforts to enhance intelligence 
capabilities in the area of counternarcotics and other high-priority 
issues, the committee recommends an authorization of an additional $7 
million in fiscal year 1996 to the Defense Intelligence Counterdrug 
Program [DICP]. These funds should be
 applied against a variety of high-priority, counterdrug analysis, and 
connectivity programs identified by the DICP program manager. Details 
of this initiative are included in the classified annex accompanying 
this bill.


                      information systems security

  While the administration's fiscal year 1996 budget request for DOD's 
Information Systems Security Program provides for a significant 
increase over the amounts requested in fiscal year 1995, the committee 
notes that information security [INFOSEC] personnel and resources will 
still have declined by roughly 40 percent since 1987. Meanwhile, in 
planning for future conflicts, the Department of Defense is 
deliberately placing increased reliance on information systems to 
compensate for a reduced force structure.
  The committee does not believe that the Department of Defense has 
adequately assessed U.S. information security requirements. Further, it 
does not believe that there is a coherent plan or program to rectify 
the vulnerabilities identified by the Joint Security Commission, the 
Commission on Roles and Missions, and independent organizations such as 
the Rand Corp. An effective and comprehensive U.S. policy needs to be 
developed in order to prepare an integrated response that recognizes 
not only the vulnerabilities of U.S. Government communications, but the 
vulnerabilities of the underlying public switch network [PSN]. In that 
regard, it is not clear what benefits can be achieved through increased 
DOD spending on information security when over 95 percent of DOD 
communications travel over PSN and the PSN is not protected against 
attacks that sophisticated adversaries may employ in future conflicts. 
In sum, a comprehensive U.S. INFOSEC plan urgently needs to be 
developed.
  The committee therefore, in its report, requests the DCI and the 
Secretary of Defense to prepare a comprehensive report which: (a) 
identifies the key threats to U.S. computers and communications 
systems, including those of both the Government and the private sector; 
that is, the public switch network upon which the Government heavily 
depends; and, (b) provides a comprehensive plan for addressing the 
threats described in section (a), to include any necessary legislative 
or programmatic recommendations required to protect Government or 
private U.S. information systems. The report is to be provided to the 
Intelligence and Defense Committees not later than March 1, 1996. In 
the absence of such a plan, the committee remains skeptical regarding 
the benefits that can be achieved through increased funding for the 
Department of Defense Information Systems Security Program.


                  commercial off-the-shelf technology

  It is the sense of the committee that, to the extent practicable, all 
high performance computing and communications [HPCC] equipment and 
products purchased with funds authorized in this act should be 
commercial-off-the-shelf [COTS] or modified COTS.
  The Department of Defense has already adopted a COTS policy in its 
purchase of high performance computing and communications systems, with 
significant cost savings to the taxpayers and with excellent 
performance results. Moreover, the Department's September 1994 defense 
technology plan, prepared by the Director of Defense Research and 
Engineering, recommends the utilization of more commercially viable 
technologies in the purchase of high performance computer systems. 
(Computing and Software, Defense Technology Plan.)
  The committee also believes that the application of a COTS technology 
policy among the intelligence agencies should be adopted and 
implemented beginning in fiscal year 1996. The committee is hopeful 
that a COTS policy for the procurement of high performance computing 
and communications equipment could save millions of dollars and 
maintain the quality and performance standards required by the 
intelligence agencies both now and in the future.
  Therefore, the committee included in the report a request that the 
agencies receiving funding authorized in this bill begin the process of 
adopting COTS technology procurement procedures in their high 
performance computing and communications programs and report, through 
the DCI, to the Intelligence and Defense Committees not later than May 
1, 1996, regarding compliance with this request.


technologies to improve sound processing devices used by the profoundly 
                                  deaf

  Recent technological advances have made it possible for the medical 
community to provide substantial hearing to profoundly deaf individuals 
who cannot benefit from conventional hearing aids. Surgically implanted 
electrodes, combined with external speech processing devices, have the 
demonstrated ability to provide sound information across the frequency 
range even at low [[Page S 8619]] volume; that is, 30 decibels. Some 
children and adults, who would have had no option other than to use 
sign language, now have access to spoken language and can function in 
school and the workplace without any use of sign language. While the 
benefits can be enormous, it is also true that the quality of sound 
provided by cochlear implants is still crude compared to normal 
hearing. Remarkable progress has been made, but many technical issues 
remain, including the reliability, size, and the effectiveness of the 
hardware and software used by manufacturers of sound processing 
devices.
  The intelligence community, and the National Security Agency in 
particular, is a world leader in speech and signal processing. It is 
quite possible that some of the sophisticated technologies employed by 
the intelligence community could increase the signal-to-noise ratio in 
the sound processing devices used by the profoundly deaf. The committee 
has recently seen how imaging technology developed by the intelligence 
community can be adapted to cancer screening by the medical community, 
and it is the committee's hope that similar success can be achieved in 
this area. In the report accompanying this bill, therefore, the 
committee requests the intelligence community to contact U.S. 
manufacturers of cochlear implant devices, review their technical 
needs, and identify any technologies that might be shared with such 
manufacturers in order to improve the quality of hearing for the 
hearing impaired. The committee also requests a report outlining the 
results of the intelligence community's review, to include 
identification of any capabilities that should be shared with U.S. 
manufacturers of cochlear implants, not later than May 1, 1996.
  Mr. President, I ask that the full text of the bill be printed in the 
Record.
  The text of the bill follows:
                                 S. 922

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That this 
     Act may be cited as the ``Intelligence Authorization Act for 
     Fiscal Year 1996''.
                    TITLE I--INTELLIGENCE ACTIVITIES

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are authorized to be appropriated for fiscal year 
     1996 for the conduct of the intelligence and intelligence-
     related activities of the following elements of the United 
     States Government:
       (1) The Central Intelligence Agency.
       (2) The Department of Defense.
       (3) The Defense Intelligence Agency.
       (4) The National Security Agency.
       (5) The Department of the Army, the Department of the Navy, 
     and the Department of the Air Force.
       (6) The Department of State.
       (7) The Department of Treasury.
       (8) The Department of Energy.
       (9) The Federal Bureau of Investigation.
       (10) The Drug Enforcement Administration.
       (11) The National Reconnaissance Office.
       (12) The Central Imagery Office.

     SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

       (a) Specifications of Amounts and Personnel Ceilings.--The 
     amounts authorized to be appropriated under section 101, and 
     the authorized personnel ceilings as of September 30, 1996, 
     for the conduct of the elements listed in such section, are 
     those specified in the classified Schedule of Authorizations 
     prepared by the Committee of Conference to accompany (  ) of 
     the One Hundred and Fourth Congress.
       (b) Availability of Classified Schedule of 
     Authorizations.--The Schedule of Authorizations shall be made 
     available to the Committee on Appropriations of the Senate 
     and House of Representatives and to the President. The 
     President shall provide for suitable distribution of the 
     Schedule, or of appropriate portions of the Schedule, within 
     the Executive Branch.

     SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

       (a) Authority for Adjustments.--With the approval of the 
     Director of the Office of Management and Budget, the Director 
     of Central Intelligence may authorize employment of civilian 
     personnel in excess of the number authorized for fiscal year 
     1996 under section 102 of this Act when the Director 
     determines that such action is necessary to the performance 
     of important intelligence functions, except that the number 
     of personnel employed in excess of the number authorized 
     under such section may not, for any element of the 
     intelligence community (as defined in section 3(4) of the 
     National Security Act of 1947 (50 U.S.C. 401(4)), exceed 2 
     percent of the number of
      civilian personnel authorized under such section for such 
     element.
       (b) Notice to Intelligence Committees.--The Director of 
     Central Intelligence shall notify the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate prior to 
     exercising the authority granted by this section.

     SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

       (a) Authorization of Appropriations.--(1) There is 
     authorized to be appropriated for the Intelligence Community 
     Management Account of the Director of Central Intelligence 
     for fiscal year 1996 the sum of $98,283,000.
       (2) Funds made available under paragraph (1) for the 
     Advanced Research and Development Committee and the 
     Environmental Task Force shall remain available until 
     September 30, 1997.
       (b) Authorized Personnel Levels.--The Community Management 
     Staff of the Director of Central Intelligence is authorized 
     247 full-time personnel as of September 30, 1996. Such 
     personnel of the Community Management Staff may be permanent 
     employees of the Community Management Staff or personnel 
     detailed from other elements of the United States Government.
       (c) Reimbursement.--During the fiscal year 1996, any 
     officer or employee of the United States or any member of the 
     Armed Forces who is detailed to the Community Management 
     Staff from another element of the United States Government 
     shall be detailed on a reimbursable basis, except that any 
     such officer, employee, or member may be detailed on a 
     nonreimbursable basis for a period of less than one year for 
     the performance of temporary functions as required by the 
     Director of Central Intelligence.
 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated for the Central 
     Intelligence Agency Retirement and Disability Fund for fiscal 
     year 1996 the sum of $213,900,000.
                     TITLE III--GENERAL PROVISIONS

     SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS 
                   AUTHORIZED BY LAW.

       Appropriations authorized by this Act for salary, pay, 
     retirement, and other benefits for Federal employees may be 
     increased by such additional or supplemental amounts as may 
     be necessary for increases in such compensation or benefits 
     authorized by law.

     SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

       The authorization of appropriations by this Act shall not 
     be deemed to constitute authority for the conduct of any 
     intelligence activity which is not otherwise authorized by 
     the Constitution or the laws of the United States.

     SEC. 303. APPLICATION OF SANCTIONS TO INTELLIGENCE 
                   ACTIVITIES.

       The National Security Act of 1947 (50 U.S.C.401 et seq.) is 
     amended by adding at the end thereof the following new title:
 ``TITLE VIII--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES

     ``SEC. 801. DELAY OF SANCTIONS.

       ``Notwithstanding any other provision of law, the President 
     may delay the imposition of a sanction related to the 
     proliferation of weapons of mass destruction, their delivery 
     systems, or advanced conventional weapons when he determines 
     that to proceed without delay would seriously risk the 
     compromise of a sensitive intelligence source or method or an 
     ongoing criminal investigation. The President shall terminate 
     any such delay as soon as it is no longer necessary to that 
     purpose.

     ``SEC. 802. REPORTS.

       ``Whenever the President makes the determination required 
     pursuant to section 801, the President shall promptly report 
     to the Select Committee on Intelligence of the Senate and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives the rationale and circumstances that led the 
     President to exercise the authority under section 801 with 
     respect to an intelligence source or method, and to the 
     Judiciary Committees of the Senate and the House of 
     Representatives the rationale and circumstances that led the 
     President to exercise the authority under section 801 with 
     respect to an ongoing criminal investigation. Such report 
     shall include a description of the efforts being made to 
     implement the sanctions as soon as possible and an estimate 
     of the date on which the sanctions will become effective.''.

     SEC. 304. THRIFT SAVINGS PLAN FORFEITURE.

       (a) In General.--Section 8432(g) of title 5, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(5) Notwithstanding any other provision of law, 
     contributions made by the Government for the benefit of an 
     employee under subsection (c), and all earnings attributable 
     to such contributions, shall be forfeited if the employee's 
     annuity, or that of a survivor or beneficiary, is forfeited 
     pursuant to subchapter II of chapter 83 of this title.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to offenses upon which the requisite annuity 
     forfeitures are based occurring on or after the date of 
     enactment of this Act.

     SEC. 305. AUTHORITY TO RESTORE SPOUSAL PENSION BENEFITS TO 
                   SPOUSES WHO COOPERATE IN CRIMINAL 
                   INVESTIGATIONS AND PRECAUTIONS FOR NATIONAL 
                   SECURITY OFFENSES.

       Section 8312 of title 5, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e) Notwithstanding any other provision of law, the 
     spouse of an employee whose annuity or retired pay is 
     forfeited under this [[Page S 8620]] section or section 8313 
     after the enactment of this subsection shall be eligible for 
     spousal pension benefits if the Attorney General determines 
     that the spouse fully cooperated with Federal authorities in 
     the conduct of a criminal investigation and subsequent 
     prosecution of the employee.''.

     SEC. 306. AMENDMENT TO THE HATCH ACT REFORM AMENDMENTS OF 
                   1993.

       Section 7325 of title 5, United States Code, is amended by 
     adding after ``section 7323(a)'' the following: ``and 
     paragraph (2) of section 7323(b)''.

     SEC. 307. REPORT ON PERSONNEL POLICIES.

       (a) Report Required.--Not later than three months after the 
     date of enactment of this Act, the Director of Central 
     Intelligence shall submit to the intelligence committees of 
     Congress a report describing personnel procedures, and 
     recommending necessary legislation, to provide for mandatory 
     retirement for expiration of time in class, comparable to the 
     applicable provisions of section 607 of the Foreign Service 
     Act of 1980 (22 U.S.C. 4007), and termination based on 
     relative performance, comparable to section 608 of the 
     Foreign Service Act of 1980 (22 U.S.C. 4008), for all 
     civilian employees of the Central Intelligence Agency, the 
     National Security Agency, the Defense Intelligence Agency, 
     and the intelligence elements of the Army, Navy, Air Force, 
     and Marine Corps.
       (b) Coordination.--The preparation of the report required 
     by subsection (a) shall be coordinated as appropriate with 
     elements of the intelligence community (as defined in section 
     3(4) of the National Security Act of 1947 (50 U.S.C. 401(4)).
       (c) Definition.--As used in this section, the term 
     ``intelligence committees of Congress'' means the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.

     SEC. 308. ASSISTANCE TO FOREIGN COUNTRIES.

       (a) In General.--Notwithstanding any other provision of 
     law, funds authorized to be appropriated by this Act may be 
     used to provide assistance to a foreign country for 
     counterterrorism efforts if--
       (1) such assistance is provided for the purpose of 
     protecting the property of the United States Government or 
     the life and property of any United States citizen, or 
     furthering the apprehension of any individual involved in any 
     act of terrorism against such property or persons; and
       (2) the appropriate committees of Congress are notified not 
     later than 15 days prior to the provision of such assistance.
       (b) Definition.--As used in this section, the term 
     ``appropriate congressional committees'' means 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. EXTENSION OF THE CIA VOLUNTARY SEPARATION PAY ACT.

       Section 2(f) of the CIA Voluntary Separation Pay Act is 
     amended by striking out ``September 30, 1997'' and inserting 
     in lieu thereof ``September 30, 1999''.

     SEC. 402. VOLUNTEER SERVICE PROGRAM.

       The Central Intelligence Agency Act of 1949 (50 U.S.C. 403a 
     et seq.) is amended by adding at the end of the following new 
     section:

     ``SEC. 20. VOLUNTEER SERVICE PROGRAM.

       ``(a) Notwithstanding any other provision of law, the 
     Director of Central Intelligence is authorized to establish 
     and maintain a program during fiscal years 1996 through 2001 
     to utilize the services contributed by not more than 50 
     retired annuitants who serve without compensation as 
     volunteers in aid of the review by the Central Intelligence 
     Agency for declassification or downgrading of classified 
     information under applicable Executive Orders covering the 
     classification and declassification of national security 
     information and Public Law 102-526.
       ``(b) The Agency is authorized to use sums made available 
     to the Agency by appropriations or otherwise for paying the 
     costs incidental to the utilization of services contributed 
     by individuals who serve without compensation as volunteers 
     in aid of the review by the Agency of classified information, 
     including, but not limited to, the costs of training, 
     transportation, lodging, subsistence, equipment, and 
     supplies. Agency officials may authorize either direct 
     procurement of, or reimbursement for, expenses incidental to 
     the effective use of volunteers, except that provision for 
     such expenses or services shall be in accordance with 
     volunteer agreements made with such individuals and that such 
     sums may not exceed $100,000.
       ``(c) Notwithstanding the provision of any other law, 
     individuals who volunteer to provide services to the Agency 
     under this section shall be covered by and subject to the 
     provisions of--
       ``(1) the Federal Employees Compensation Act; and
       ``(2) chapter 11 of title 18, United States Code,
     as if they were employees or special Government employees 
     depending upon the days of expected service at the time they 
     begin their volunteer service.''.

     SEC. 403. AUTHORITIES OF THE INSPECTOR GENERAL OF THE CENTRAL 
                   INTELLIGENCE AGENCY.

       (a) Reports by the Inspector General.--Section 17(b)(5) of 
     the Central Intelligence Act of 1949 (50 U.S.C. 403q) is 
     amended to read as follows:
       ``(5) In accordance with section 535 of title 28, United 
     States Code, the Inspector General shall report to the 
     Attorney General any information, allegation, or complaint 
     received by the Inspector General relating to violations of 
     Federal criminal law that involve a program or operation of 
     the Agency, consistent with such guidelines as may be issued 
     by the Attorney General pursuant to paragraph (2). A copy of 
     all such reports shall be furnished to the Director.''.
       (b) Exception to Nondisclosure Requirement.--Section 
     17(e)(3)(A) of such Act is amended by inserting after 
     ``investigation'' the following: ``or the disclosure is made 
     to an official of the Department of Justice responsible for 
     determining whether a prosecution should be undertaken''.

     SEC. 404. REPORT ON LIAISON RELATIONSHIPS.

       (a) Annual Report.--Section 502 of the National Security 
     Act of 1947 (50 U.S.C. 413a) is amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) annually submit to the intelligence committees a 
     report describing all liaison relationships for the preceding 
     year, including--
       ``(A) the names of the governments and entities;
       ``(B) the purpose of each relationship;
       ``(C) the resources dedicated (including personnel, funds, 
     and materiel);
       ``(D) a description of the intelligence provided and 
     received, including any reports on human rights violations; 
     and
       ``(E) any significant changes anticipated.''.
       (b) Definition.--Section 606 of such Act is amended by 
     adding at the end the following:
       ``(11) The term `liaison' means any governmental entity or 
     individual with whom an intelligence agency has established a 
     relationship for the purpose of obtaining information.''.
         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

     SEC. 501. COMPARABLE OVERSEAS BENEFITS AND ALLOWANCES FOR 
                   CIVILIAN AND MILITARY PERSONNEL ASSIGNED TO THE 
                   DEFENSE INTELLIGENCE AGENCY.

       (a) Title 10.--Title 10, United States Code, is amended--
       (1) in section 1605(a), by striking ``and'' after ``Defense 
     Attache Offices'' and inserting ``or''; and
       (2) in section 1605(a), by inserting ``, and Defense 
     Intelligence Agency employees assigned to duty outside the 
     United States,'' after ``outside the United States,''.
       (b) Title 37.--Title 37, United States Code, is amended--
       (1) in section 431(a), by striking ``and'' after ``Defense 
     Attache Offices'' and inserting ``or''; and
       (2) in section 431(a), by inserting ``, and members of the 
     armed forces assigned to the Defense Intelligence Agency and 
     engaged in intelligence related duties outside the United 
     States,'' after ``outside the United States''.

     SEC. 502. AUTHORITY TO CONDUCT COMMERCIAL ACTIVITIES 
                   NECESSARY TO PROVIDE SECURITY FOR AUTHORIZED 
                   INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

       Section 431(a) of title 10, United States Code, is amended 
     by striking ``1995'' and inserting ``2001''.

     SEC. 503. MILITARY DEPARTMENTS' CIVILIAN INTELLIGENCE 
                   PERSONNEL MANAGEMENT SYSTEM: ACQUISITION OF 
                   CRITICAL SKILLS.

       (a) Establishment of Training Program.--Chapter 81 of title 
     10, United States Code, is amended by adding at the end 
     thereof the following new section:

     ``Sec. 1599. Financial assistance to certain employees in 
       acquisition of critical skills

       ``(a) Training Program.--The Secretary of Defense shall 
     establish an undergraduate training program with respect to 
     civilian employees in the Military Departments' Civilian 
     Intelligence Personnel Management System that is similar in 
     purpose, conditions, content, and administration to the 
     program which the Secretary of Defense established under 
     section 16 of the National Security Act of 1959 (50 U.S.C. 
     402 note) for civilian employees of the National Security 
     Agency.
       ``(b) Funding of Training Program.--Any payments made by 
     the Secretary to carry out the program required to be 
     established by subsection (a) may be made in any fiscal year 
     only to the extent that appropriated funds are available for 
     that purpose.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of that chapter is amended by adding at the end 
     thereof the following:

``Sec. 1599. Financial assistance to certain employees in acquisition 
              of critical skills.''.
               TITLE VI--FEDERAL BUREAU OF INVESTIGATION

     SEC. 601. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO 
                   FBI FOR COUNTERINTELLIGENCE PURPOSES.

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

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

       ``(a) Identity of Financial Institutions.--Notwithstanding 
     section 604 or any other [[Page S 8621]] provision of this 
     title, a consumer reporting agency shall furnish to the
      Federal Bureau of Investigation the names and addresses of 
     all financial institutions (as that term is defined in 
     section 1101 of the Right to Financial Privacy Act of 
     1978) at which a consumer maintains or has maintained an 
     account, to the extent that information is in the files of 
     the agency, when presented with a written request for that 
     information, signed by the Director of the Federal Bureau 
     of Investigation, or the Director's designee, which 
     certifies compliance with this section. The Director or 
     the Director's designee may make such a certification only 
     if the Director or the Director's designee has determined 
     in writing that--
       ``(1) such information is necessary for the conduct of an 
     authorized foreign counterintelligence investigation; and
       ``(2) there are specific and articulable facts giving 
     reason to believe that the consumer--
       ``(A) is a foreign power (as defined in section 101 of the 
     Foreign Intelligence Surveillance Act of 1978) or a person 
     who is not a United States person (as defined in such section 
     101) and is an official of a foreign power; or
       ``(B) is an agent of a foreign power and is engaging or has 
     engaged in an act of international terrorism (as that term is 
     defined in section 101(c) of the Foreign Intelligence 
     Surveillance Act of 1978) or clandestine intelligence 
     activities that involve or may involve a violation of 
     criminal statutes of the United States.
       ``(b) Identifying Information.--Notwithstanding the 
     provisions of section 604 or any other provision of this 
     title, a consumer reporting agency shall furnish identifying 
     information respecting a consumer, limited to name, address, 
     former addresses, places of employment, or former places of 
     employment, to the Federal Bureau of Investigation when 
     presented with a written request, signed by the Director or 
     the Director's designee, which certifies compliance with this 
     subsection. The Director or the Director's designee may make 
     such a certification only if the Director or the Director's 
     designee has determined in writing that--
       ``(A) such information is necessary to the conduct of an 
     authorized counterintelligence investigation; and
       ``(B) there is information giving reason to believe that 
     the consumer has been, or is about to be, in contact with a 
     foreign power or an agent of a foreign power (as defined in 
     section 101 of the Foreign Intelligence Surveillance Act of 
     1978).
       ``(c) Court Order for Disclosure of Consumer Reports.--
     Notwithstanding section 604 or any other provision of this 
     title, if requested in writing by the Director of the Federal 
     Bureau of Investigation, or a designee of the Director, a 
     court may issue an order ex parte directing a consumer 
     reporting agency to furnish a consumer report to the Federal 
     Bureau of Investigation, upon a showing in camera that--
       ``(1) the consumer report is necessary for the conduct of 
     an authorized foreign counterintelligence investigation; and
       ``(2) there are specific and articulable facts giving 
     reason to believe that the consumer whose consumer report is 
     sought--
       ``(A) is an agent of a foreign power, and
       ``(B) is engaging or has engaged in an act of international 
     terrorism (as that term is defined in section 101(c) of the 
     Foreign Intelligence Surveillance Act of 1978) or clandestine 
     intelligence activities that involve or may involve a 
     violation of criminal statutes of the United States.

     The terms of an order issued under this subsection shall not 
     disclose that the order is issued for purposes of a 
     counterintelligence investigation.
       ``(d) Confidentiality.--No consumer reporting agency or 
     officer, employee, or agent of a consumer reporting agency 
     shall disclose to any person, other than those officers, 
     employees, or agents of a consumer reporting agency necessary 
     to fulfill the requirement to disclose information to the 
     Federal Bureau of Investigation under this section, that the 
     Federal Bureau of Investigation has sought or obtained the 
     identity of financial institutions or a consumer report 
     respecting any consumer under subsection (a), (b), or (c), 
     and no consumer reporting agency or officer, employee, or 
     agent of a consumer reporting agency shall include in any 
     consumer report any information that would indicate that the 
     Federal Bureau of Investigation has sought or obtained such 
     information or a consumer report.
       ``(e) Payment of Fees.--The Federal Bureau of Investigation 
     shall, subject to the availability of appropriations, pay to 
     the consumer reporting agency assembling or providing report 
     or information in accordance with procedures established 
     under this section a fee for reimbursement for such costs as 
     are reasonably necessary and which have been directly 
     incurred in searching, reproducing, or transporting books, 
     papers, records, or other data required or requested to be 
     produced under this section.
       ``(f) Limit on Dissemination.--The Federal Bureau of 
     Investigation may not disseminate information obtained 
     pursuant to this section outside of the Federal Bureau of 
     Investigation, except to other Federal agencies as may be 
     necessary for the approval or conduct of a foreign 
     counterintelligence investigation, or, where the information 
     concerns a person subject to the uniform Code of Military 
     Justice, to appropriate investigative authorities within the 
     military department concerned as may be necessary for the 
     conduct of a joint foreign counterintelligence investigation.
       ``(g) Rules of Construction.--Nothing in this section shall 
     be construed to prohibit information from being furnished by 
     the Federal Bureau of Investigation pursuant to a subpoena or 
     court order, in connection with a judicial or administrative 
     proceeding to enforce the provisions of this Act. Nothing in 
     this section shall be construed to authorize or permit the 
     withholding of information from the Congress.
       ``(h) Reports to Congress.--On a semiannual basis, the 
     Attorney General shall fully inform the Permanent Select 
     Committee on Intelligence and the Committee on Banking, 
     Finance and Urban Affairs of the House of Representatives, 
     and the Select Committee on Intelligence and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate concerning 
     all requests made pursuant to subsections (a), (b), and (c).
       ``(i) Damages.--Any agency or department of the United 
     States obtaining or disclosing any consumer reports, records, 
     or information contained therein in violation of this section 
     is liable to the consumer to whom such consumer reports, 
     records, or information relate in an amount equal to the sum 
     of--
       ``(1) $100, without regard to the volume of consumer 
     reports, records, or information involved;
       ``(2) any actual damages sustained by the consumer as a 
     result of the disclosure;
       ``(3) if the violation is found to have been willful or 
     intentional, such punitive damages as a court may allow; and
       ``(4) in the case of any successful action to enforce 
     liability under this subsection, the costs of the action, 
     together with reasonable attorney fees, as determined by the 
     court.
       ``(j) Disciplinary Actions for Violations.--If a court 
     determines that any agency or department of the United States 
     has violated any provision of this section and the court 
     finds that the circumstances 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 Reporting Act (15 U.S.C. 1681 et 
     seq.) is amended by adding after the item relating to section 
     624 the following:

``624. Disclosures to FBI for counterintelligence purposes.''.
                    TITLE VII--TECHNICAL CORRECTIONS

     SEC. 701. CLARIFICATION WITH RESPECT TO PAY FOR DIRECTOR OR 
                   DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE 
                   APPOINTED FROM COMMISSIONED OFFICERS OF THE 
                   ARMED FORCES.

       Section 102(c)(3)(C) of the National Security Act of 1947 
     (50 U.S.C. 403(c)(3)(C)) is amended--
       (1) by striking ``A'' before ``commissioned'' and inserting 
     ``An active duty'';
       (2) by striking out ``(including retired pay)'';
       (3) by inserting ``an active duty'' after ``payable to''; 
     and
       (4) by striking ``a'' before ``commissioned''.

     SEC. 702. CHANGE OF OFFICE DESIGNATION IN CIA INFORMATION 
                   ACT.

       Section 701(b)(3) of the CIA Information Act of 1984 (50 
     U.S.C. 431(b)(3)) is amended by striking ``Office of 
     Security'' and inserting ``Office of Personnel 
     Security''.
     

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