[Congressional Record Volume 142, Number 133 (Tuesday, September 24, 1996)]
[House]
[Pages H10937-H10951]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  CONFERENCE REPORT ON H.R. 3259, INTELLIGENCE AUTHORIZATION ACT FOR 
                            FISCAL YEAR 1997

  Mr. COMBEST submitted the following conference report and statement 
on the bill (H.R. 3259) to authorize appropriations for fiscal year 
1997 for intelligence and intelligence-related activities of the United 
States Government, the Community Management Account, and the Central 
Intelligence Agency Retirement and Disability System, and for other 
purposes:

                  Conference Report (H. Rept. 104-832)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     3259), to authorize appropriations for fiscal year 1997 for 
     intelligence and intelligence-related activities of the 
     United States Government, the Community Management Account, 
     and the Central Intelligence Agency Retirement and Disability 
     System, and for other purposes, having met, after full and 
     free conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Intelligence Authorization Act for Fiscal Year 1997''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Community Management Account.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                     TITLE III--GENERAL PROVISIONS

Sec. 301. Increase in employee compensation and benefits authorized by 
              law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Limitation on availability of funds for automatic 
              declassification of records over 25 years old.
Sec. 304. Application of sanctions laws to intelligence activities.
Sec. 305. Expedited naturalization.
Sec. 306. Sense of Congress on enforcement of requirement to protect 
              the identities of undercover intelligence officers, 
              agents, informants, and sources.
Sec. 307. Sense of Congress on intelligence community contracting.
Sec. 308. Restrictions on intelligence sharing with the United Nations.
Sec. 309. Prohibition on using journalists as agents or assets.
Sec. 310. Report on policy of intelligence community regarding the 
              protection of the national information infrastructure 
              against attack.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Elimination of double surcharge on Central Intelligence 
              Agency relating to employees who retire or resign in 
              fiscal years 1998 or 1999 and who receive voluntary 
              separation incentive payments.
Sec. 402. Post-employment restrictions.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

Sec. 501. Executive branch oversight of budgets of elements of the 
              intelligence community.

               TITLE VI--FEDERAL BUREAU OF INVESTIGATION

Sec. 601. Access to telephone records.

                  TITLE VII--COMBATTING PROLIFERATION

Sec. 701. Short title.

Subtitle A--Assessment of Organization and Structure of Government for 
                        Combatting Proliferation

Sec. 711. Establishment of commission.
Sec. 712. Duties of commission.
Sec. 713. Powers of commission.
Sec. 714. Commission personnel matters.
Sec. 715. Termination of commission.
Sec. 716. Definition.
Sec. 717. Payment of commission expenses.

                       Subtitle B--Other Matters

Sec. 721. Reports on acquisition of technology relating to weapons of 
              mass destruction and advanced conventional munitions.

       TITLE VIII--RENEWAL AND REFORM OF INTELLIGENCE ACTIVITIES

Sec. 801. Short title.
Sec. 802. Committee on Foreign Intelligence.
Sec. 803. Annual reports on intelligence.
Sec. 804. Transnational threats.

[[Page H10938]]

Sec. 805. Overall management of central intelligence.
Sec. 806. National Intelligence Council.
Sec. 807. Enhancement of authority of Director of Central Intelligence 
              to manage budget, personnel, and activities of 
              intelligence community.
Sec. 808. Responsibilities of Secretary of Defense pertaining to the 
              National Foreign Intelligence Program.
Sec. 809. Improvement of intelligence collection.
Sec. 810. Improvement of analysis and production of intelligence.
Sec. 811. Improvement of administration of intelligence activities.
Sec. 812. Pay level of Deputy Director of Central Intelligence for 
              Community Management and Assistant Directors of Central 
              Intelligence.
       Sec. 813. General Counsel of the Central Intelligence 
           Agency.
       Sec. 814. Assistance for law enforcement agencies by 
           intelligence community.
       Sec. 815. Appointment of officials responsible for 
           intelligence-related activities.
       Sec. 816. Study on the future of intelligence collection.
       Sec. 817. Intelligence Reserve Corps.

                      TITLE IX--FINANCIAL MATTERS

       Sec. 901. Authorization of funding provided by 1996 
           supplemental appropriations Act.
                    TITLE I--INTELLIGENCE ACTIVITIES

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 1997 for the conduct of the intelligence and 
     intelligence-related activities of the following elements of 
     the United States Government:
       (1) The Central Intelligence Agency.
       (2) The Department of Defense.
       (3) The Defense Intelligence Agency.
       (4) The National Security Agency.
       (5) The Department of the Army, the Department of the Navy, 
     and the Department of the Air Force.
       (6) The Department of State.
       (7) The Department of Treasury.
       (8) The Department of Energy.
       (9) The Federal Bureau of Investigation.
       (10) The Drug Enforcement Administration.
       (11) The National Reconnaissance Office.
       (12) The National Imagery and Mapping Agency.

     SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

       (a) Specifications of Amounts and Personnel Ceilings.--The 
     amounts authorized to be appropriated under section 101, and 
     the authorized personnel ceilings as of September 30, 1997, 
     for the conduct of the intelligence and intelligence-related 
     activities of the elements listed in such section, are those 
     specified in the classified Schedule of Authorizations 
     prepared to accompany the conference report on the bill H.R. 
     3259 of the One Hundred Fourth Congress.
       (b) Availability of Classified Schedule of 
     Authorizations.--The Schedule of Authorizations shall be made 
     available to the Committees on Appropriations of the Senate 
     and House of Representatives and to the President. The 
     President shall provide for suitable distribution of the 
     Schedule, or of appropriate portions of the Schedule, within 
     the executive branch.

     SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

       (a) Authority for Adjustments.--With the approval of the 
     Director of the Office of Management and Budget, the Director 
     of Central Intelligence may authorize employment of civilian 
     personnel in excess of the number authorized for fiscal year 
     1997 under section 102 when the Director of Central 
     Intelligence determines that such action is necessary to the 
     performance of important intelligence functions, except that 
     the number of personnel employed in excess of the number 
     authorized under such section may not, for any element of the 
     intelligence community, exceed two percent of the number of 
     civilian personnel authorized under such section for such 
     element.
       (b) Notice to Intelligence Committees.--The Director of 
     Central Intelligence shall promptly notify the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives and the Select Committee on Intelligence of 
     the Senate whenever he exercises the authority granted by 
     this section.

     SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.

       (a) Authorizations of Appropriations.--There is authorized 
     to be appropriated for the Community Management Account of 
     the Director of Central Intelligence for fiscal year 1997 the 
     sum of $131,116,000. Within such amount, funds identified in 
     the classified Schedule of Authorizations referred to in 
     section 102(a) for the Advanced Research and Development 
     Committee shall remain available until September 30, 1998.
       (b) Authorized Personnel Levels.--The staff of the 
     Community Management Account of the Director of Central 
     Intelligence is authorized 303 full-time personnel as of 
     September 30, 1997. Such personnel of the Community 
     Management Staff may be permanent employees of the Community 
     Management Staff or personnel detailed from other elements of 
     the United States Government.
       (c) Reimbursement.--During fiscal year 1997, any officer or 
     employee of the United States or member of the Armed Forces 
     who is detailed to the staff of the Community Management 
     Account from another element of the United States Government 
     shall be detailed on a reimbursable basis, except that any 
     such officer, employee, or member may be detailed on a non-
     reimbursable basis for a period of less than one year for the 
     performance of temporary functions as required by the 
     Director of Central Intelligence.
       (d) National Drug Intelligence Center.--(1) Of the amount 
     authorized to be appropriated in subsection (a), $27,000,000 
     shall be available for the National Drug Intelligence Center 
     located in Johnstown, Pennsylvania.
       (2) The Director of Central Intelligence shall transfer to 
     the Attorney General funds available for the National Drug 
     Intelligence Center under paragraph (1). The Attorney General 
     shall utilize funds so transferred for the activities of the 
     center.
       (3) Amounts available for the center may not be used in 
     contravention of the provisions of section 103(d)(1) of the 
     National Security Act of 1947 (50 U.S.C. 403-3(d)(1)).
       (4) Notwithstanding any other provision of law, the 
     Attorney General shall retain full authority over the 
     operations of the center.
       (e) Environmental Programs.--Of the amount authorized to be 
     appropriated in subsection (a), $18,000,000 shall be 
     available for the Environmental Intelligence and Applications 
     Program, formerly known as the Environmental Task Force, and 
     remain available until September 30, 1998.
 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated for the Central 
     Intelligence Agency Retirement and Disability Fund for fiscal 
     year 1997 the sum of $184,200,000.
                     TITLE III--GENERAL PROVISIONS

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

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

     SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

     SEC. 303. LIMITATION ON AVAILABILITY OF FUNDS FOR AUTOMATIC 
                   DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.

       Of the amounts authorized to be appropriated for fiscal 
     year 1997 by this Act for the National Foreign Intelligence 
     Program, not more than $27,200,000 shall be available to 
     carry out the provisions of section 3.4 of Executive Order 
     12958.

     SEC. 304. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE 
                   ACTIVITIES.

       Section 905 of the National Security Act of 1947 (50 U.S.C. 
     441d) is amended by striking out ``on the date which is one 
     year after the date of the enactment of this title'' and 
     inserting in lieu thereof ``on January 6, 1998''.

     SEC. 305. EXPEDITED NATURALIZATION.

       (a) In General.--With the approval of the Director of 
     Central Intelligence, the Attorney General, and the 
     Commissioner of Immigration and Naturalization, an applicant 
     described in subsection (b) and otherwise eligible for 
     naturalization may be naturalized without regard to the 
     residence and physical presence requirements of section 
     316(a) of the Immigration and Nationality Act, or to the 
     prohibitions of section 313 of such Act, and no residence 
     within a particular State or district of the Immigration and 
     Naturalization Service in the United States shall be 
     required.
       (b) Eligible Applicant.--An applicant eligible for 
     naturalization under this section is the spouse or child of a 
     deceased alien whose death resulted from the intentional and 
     unauthorized disclosure of classified information regarding 
     the alien's participation in the conduct of United States 
     intelligence activities and who--
       (1) has resided continuously, after being lawfully admitted 
     for permanent residence, within the United States for at 
     least one year prior to naturalization; and
       (2) is not described in subparagraph (A), (B), (C), or (D) 
     of section 243(h)(2) of such Act.
       (c) Administration of Oath.--An applicant for 
     naturalization under this section may be administered the 
     oath of allegiance under section 337(a) of the Immigration 
     and Nationality Act by the Attorney General or any district 
     court of the United States, without regard to the residence 
     of the applicant. Proceedings under this subsection shall be 
     conducted in a manner consistent with the protection of 
     intelligence sources, methods, and activities.
       (d) Definitions.--For purposes of this section--
       (1) the term ``child'' means a child as defined in 
     subparagraphs (A) through (E) of section 101(b)(1) of the 
     Immigration and Nationality Act, without regard to age or 
     marital status; and
       (2) the term ``spouse'' means the wife or husband of a 
     deceased alien referred to in subsection (b) who was married 
     to such alien during the time the alien participated in the 
     conduct of United States intelligence activities.

     SEC. 306. SENSE OF CONGRESS ON ENFORCEMENT OF REQUIREMENT TO 
                   PROTECT THE IDENTITIES OF UNDERCOVER 
                   INTELLIGENCE OFFICERS, AGENTS, INFORMANTS, AND 
                   SOURCES.

       It is the sense of Congress that title VI of the National 
     Security Act of 1947 (50 U.S.C. 421 et seq.) (relating to 
     protection of the identities of undercover intelligence 
     officers, agents, informants, and sources) should be enforced 
     by the appropriate law enforcement agencies.

     SEC. 307. SENSE OF CONGRESS ON INTELLIGENCE COMMUNITY 
                   CONTRACTING.

       It is the sense of Congress that the Director of Central 
     Intelligence should continue to direct that elements of the 
     intelligence community, whenever compatible with the national 
     security

[[Page H10939]]

     interests of the United States and consistent with the 
     operational and security concerns related to the conduct of 
     intelligence activities, and where fiscally sound, should 
     award contracts in a manner that would maximize the 
     procurement of products properly designated as having been 
     made in the United States.

     SEC. 308. RESTRICTIONS ON INTELLIGENCE SHARING WITH THE 
                   UNITED NATIONS.

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


     ``restrictions on intelligence sharing with the united nations

       ``Sec. 110. (a) Provision of Intelligence Information to 
     the United Nations.--(1) No United States intelligence 
     information may be provided to the United Nations or any 
     organization affiliated with the United Nations, or to any 
     officials or employees thereof, unless the President 
     certifies to the appropriate committees of Congress that the 
     Director of Central Intelligence, in consultation with the 
     Secretary of State and the Secretary of Defense, has 
     established and implemented procedures, and has worked with 
     the United Nations to ensure implementation of procedures, 
     for protecting from unauthorized disclosure United States 
     intelligence sources and methods connected to such 
     information.
       ``(2) Paragraph (1) may be waived upon written 
     certification by the President to the appropriate committees 
     of Congress that providing such information to the United 
     Nations or an organization affiliated with the United 
     Nations, or to any officials or employees thereof, is in the 
     national security interests of the United States.
       ``(b) Periodic and Special Reports.--(1) The President 
     shall report semiannually to the appropriate committees of 
     Congress on the types and volume of intelligence provided to 
     the United Nations and the purposes for which it was provided 
     during the period covered by the report. The President shall 
     also report to the appropriate committees of Congress within 
     15 days after it has become known to the United States 
     Government that there has been an unauthorized disclosure of 
     intelligence provided by the United States to the United 
     Nations.
       ``(2) The requirement for periodic reports under the first 
     sentence of paragraph (1) shall not apply to the provision of 
     intelligence that is provided only to, and for the use of, 
     appropriately cleared United States Government personnel 
     serving with the United Nations.
       ``(c) Delegation of Duties.--The President may not delegate 
     or assign the duties of the President under this section.
       ``(d) Relationship to Existing Law.--Nothing in this 
     section shall be construed to--
       ``(1) impair or otherwise affect the authority of the 
     Director of Central Intelligence to protect intelligence 
     sources and methods from unauthorized disclosure pursuant to 
     section 103(c)(6) of this Act; or
       ``(2) supersede or otherwise affect the provisions of title 
     V of this Act.
       ``(e) Definition.--As used in this section, the term 
     `appropriate committees of Congress' means the Committee on 
     Foreign Relations and the Select Committee on Intelligence of 
     the Senate and the Committee on Foreign Relations and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives.''.
       (b) Clerical Amendment.--The table of contents for the 
     National Security Act of 1947 is amended by inserting after 
     the item relating to section 109 the following:

``Sec. 110. Restrictions on intelligence sharing with the United 
              Nations.''.

     SEC. 309. PROHIBITION ON USING JOURNALISTS AS AGENTS OR 
                   ASSETS.

       (a) Policy.--It is the policy of the United States that an 
     element of the Intelligence Community may not use as an agent 
     or asset for the purposes of collecting intelligence any 
     individual who--
       (1) is authorized by contract or by the issuance of press 
     credentials to represent himself or herself, either in the 
     United States or abroad, as a correspondent of a United 
     States news media organization; or
       (2) is officially recognized by a foreign government as a 
     representative of a United States media organization.
       (b) Waiver.--Pursuant to such procedures as the President 
     may prescribe, the President or the Director of Central 
     Intelligence may waive subsection (a) in the case of an 
     individual if the President or the Director, as the case may 
     be, makes a written determination that the waiver is 
     necessary to address the overriding national security 
     interest of the United States. The Permanent Select Committee 
     on Intelligence of the House of Representatives and the 
     Select Committee on Intelligence of the Senate shall be 
     notified of any waiver under this subsection.
       (c) Voluntary Cooperation.--Subsection (a) shall not be 
     construed to prohibit the voluntary cooperation of any person 
     who is aware that the cooperation is being provided to an 
     element of the United States Intelligence Community.

     SEC. 310. REPORT ON POLICY OF INTELLIGENCE COMMUNITY 
                   REGARDING THE PROTECTION OF THE NATIONAL 
                   INFORMATION INFRASTRUCTURE AGAINST ATTACK.

       (a) Report.--(1) Not later than 120 days after the date of 
     the enactment of this Act, the Director of Central 
     Intelligence shall submit to Congress a report on the 
     potential responses of the intelligence community to threats 
     to and attacks upon the information infrastructure of the 
     United States by foreign countries, groups, or individuals, 
     or by other entities, groups, or individuals.
       (2) The report shall include the following:
       (A) An analysis of the threats posed to the information 
     infrastructure of the United States by information warfare 
     and other forms of non-traditional attacks on the 
     infrastructure by foreign countries, groups, or individuals, 
     or by other entities, groups, or individuals.
       (B) A description and assessment of the counterintelligence 
     activities required to respond to such threats, including the 
     plans of the intelligence community to support such 
     activities.
       (b) Definitions.--For purposes of this section:
       (1) The term ``intelligence community'' has the meaning 
     given such term in section 3(4) of the National Security Act 
     of 1947 (50 U.S.C. 401a(4)).
       (2) The term ``information infrastructure of the United 
     States'' includes the information infrastructure of the 
     public sector and of the private sector.
                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     SEC. 401. ELIMINATION OF DOUBLE SURCHARGE ON CENTRAL 
                   INTELLIGENCE AGENCY RELATING TO EMPLOYEES WHO 
                   RETIRE OR RESIGN IN FISCAL YEARS 1998 OR 1999 
                   AND WHO RECEIVE VOLUNTARY SEPARATION INCENTIVE 
                   PAYMENTS.

       Section 2(i) of the Central Intelligence Agency Voluntary 
     Separation Pay Act (50 U.S.C. 403-4 note) is amended by 
     adding at the end the following: ``The remittance required by 
     this subsection shall be in lieu of any remittance required 
     by section 4(a) of the Federal Workforce Restructuring Act of 
     1994 (5 U.S.C. 8331 note).''.

     SEC. 402. POST-EMPLOYMENT RESTRICTIONS.

       (a) In General.--Not later than 90 days after the date of 
     enactment of this Act, the Director of Central Intelligence 
     shall prescribe regulations requiring each employee of the 
     Central Intelligence Agency designated by the Director for 
     such purpose to sign a written agreement restricting the 
     activities of the employee upon ceasing employment with the 
     Central Intelligence Agency. The Director may designate a 
     group or class of employees for such purpose.
       (b) Agreement Elements.--The regulations shall provide that 
     an agreement contain provisions specifying that the employee 
     concerned not represent or advise the government, or any 
     political party, of any foreign country during the three-year 
     period beginning on the cessation of the employee's 
     employment with the Central Intelligence Agency unless the 
     Director determines that such representation or advice would 
     be in the best interests of the United States.
       (c) Disciplinary Actions.--The regulations shall specify 
     appropriate disciplinary actions (including loss of 
     retirement benefits) to be taken against any employee 
     determined by the Director of Central Intelligence to have 
     violated the agreement of the employee under this section.
         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

     SEC. 501. EXECUTIVE BRANCH OVERSIGHT OF BUDGETS OF ELEMENTS 
                   OF THE INTELLIGENCE COMMUNITY.

       (a) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the President shall submit to the 
     appropriate congressional committees a report setting forth 
     the actions that have been taken to ensure adequate oversight 
     by the executive branch of the budget of the National 
     Reconnaissance Office and the budgets of other elements of 
     the intelligence community within the Department of Defense.
       (b) Report Elements.--The report required by subsection (a) 
     shall--
       (1) describe the extent to which the elements of the 
     intelligence community carrying out programs and activities 
     in the National Foreign Intelligence Program are subject to 
     requirements imposed on other elements and components of the 
     Department of Defense under the Chief Financial Officers Act 
     of 1990 (Public Law 101-576), and the amendments made by that 
     Act, and the Federal Financial Management Act of 1994 (title 
     IV of Public Law 103-356), and the amendments made by that 
     Act;
       (2) describe the extent to which such elements submit to 
     the Office of Management and Budget budget justification 
     materials and execution reports similar to the budget 
     justification materials and execution reports submitted to 
     the Office of Management and Budget by the non-intelligence 
     components of the Department of Defense;
       (3) describe the extent to which the National 
     Reconnaissance Office submits to the Office of Management and 
     Budget, the Community Management Staff, and the Office of the 
     Secretary of Defense--
       (A) complete information on the cost, schedule, 
     performance, and requirements for any new major acquisition 
     before initiating the acquisition;
       (B) yearly reports (including baseline cost and schedule 
     information) on major acquisitions;
       (C) planned and actual expenditures in connection with 
     major acquisitions; and
       (D) variances from any cost baselines for major 
     acquisitions (including explanations of such variances); and
       (4) assess the extent to which the National Reconnaissance 
     Office has submitted to Office of Management and Budget, the 
     Community Management Staff, and the Office of the Secretary 
     of Defense on a monthly basis a detailed budget execution 
     report similar to the budget execution report prepared for 
     Department of Defense programs.
       (c) Definitions.--For purposes of this section:
       (1) The term ``appropriate congressional committees'' means 
     the following:
       (A) The Select Committee on Intelligence and the Committee 
     on Armed Services of the Senate.
       (B) The Permanent Select Committee on Intelligence and the 
     Committee on National Security of the House of 
     Representatives.
       (2) The term ``National Foreign Intelligence Program'' has 
     the meaning given such term in section 3(6) of the National 
     Security Act of 1947 (50 U.S.C. 401a(6)).

[[Page H10940]]

               TITLE VI--FEDERAL BUREAU OF INVESTIGATION

     SEC. 601. ACCESS TO TELEPHONE RECORDS.

       (a) Access for Counterintelligence Purposes.--Section 
     2709(b)(1) of title 18, United States Code, is amended by 
     inserting ``local and long distance'' before ``toll billing 
     records''.
       (b) Conforming Amendment.--Section 2703(c)(1)(C) of such 
     title is amended by inserting ``local and long distance'' 
     after ``address,''.
       (c) Civil Remedy.--Section 2707 of such title is amended--
       (1) in subsection (a), by striking out ``customer'' and 
     inserting in lieu thereof ``other person'';
       (2) in subsection (c), by adding at the end the following: 
     ``If the violation is willful or intentional, the court may 
     assess punitive damages. In the case of a successful action 
     to enforce liability under this section, the court may assess 
     the costs of the action, together with reasonable attorney 
     fees determined by the court.'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (4) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Disciplinary Actions for Violations.--If a court 
     determines that any agency or department of the United States 
     has violated this chapter and the court finds that the 
     circumstances surrounding the violation raise the question 
     whether or not an officer or employee of the agency or 
     department acted willfully or intentionally with respect to 
     the violation, the agency or department concerned shall 
     promptly initiate a proceeding to determine whether or not 
     disciplinary action is warranted against the officer or 
     employee.''.
                  TITLE VII--COMBATTING PROLIFERATION

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Combatting Proliferation 
     of Weapons of Mass Destruction Act of 1996''.
Subtitle A--Assessment of Organization and Structure of Government for 
                        Combatting Proliferation

     SEC. 711. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the Commission to Assess the Organization of the 
     Federal Government to Combat the Proliferation of Weapons of 
     Mass Destruction (in this subtitle referred to as the 
     ``Commission'').
       (b) Membership.--The Commission shall be composed of eight 
     members of whom--
       (1) four shall be appointed by the President;
       (2) one shall be appointed by the Majority Leader of the 
     Senate;
       (3) one shall be appointed by the Minority Leader of the 
     Senate;
       (4) one shall be appointed by the Speaker of the House of 
     Representatives; and
       (5) one shall be appointed by the Minority Leader of the 
     House of Representatives.
       (c) Qualifications of Members.--(1) To the maximum extent 
     practicable, the individuals appointed as members of the 
     Commission shall be individuals who are nationally recognized 
     for expertise regarding--
       (A) the nonproliferation of weapons of mass destruction;
       (B) the efficient and effective implementation of United 
     States nonproliferation policy; or
       (C) the implementation, funding, or oversight of the 
     national security policies of the United States.
       (2) An official who appoints members of the Commission may 
     not appoint an individual as a member if, in the judgment of 
     the official, the individual possesses any personal or 
     financial interest in the discharge of any of the duties of 
     the Commission.
       (d) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (e)  Initial Meeting.--Not later than 30 days after the 
     date on which all members of the Commission have been 
     appointed, the Commission shall hold its first meeting.
       (f) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (g) Chairman and Vice Chairman.--The Commission shall 
     select a Chairman and Vice Chairman from among its members.
       (h) Meetings.--The Commission shall meet at the call of the 
     Chairman.

     SEC. 712. DUTIES OF COMMISSION.

       (a) Study.--
       (1) In general.--The Commission shall carry out a thorough 
     study of the organization of the Federal Government, 
     including the elements of the intelligence community, with 
     respect to combatting the proliferation of weapons of mass 
     destruction.
       (2) Specific requirements.--In carrying out the study, the 
     Commission shall--
       (A) assess the current structure and organization of the 
     departments and agencies of the Federal Government having 
     responsibilities for combatting the proliferation of weapons 
     of mass destruction; and
       (B) assess the effectiveness of United States cooperation 
     with foreign governments with respect to nonproliferation 
     activities, including cooperation--
       (i) between elements of the intelligence community and 
     elements of the intelligence-gathering services of foreign 
     governments;
       (ii) between other departments and agencies of the Federal 
     Government and the counterparts to such departments and 
     agencies in foreign governments; and
       (iii) between the Federal Government and international 
     organizations.
       (3) Assessments.--In making the assessments under paragraph 
     (2), the Commission should address--
       (A) the organization of the export control activities 
     (including licensing and enforcement activities) of the 
     Federal Government relating to the proliferation of weapons 
     of mass destruction;
       (B) arrangements for coordinating the funding of United 
     States nonproliferation activities;
       (C) existing arrangements governing the flow of information 
     among departments and agencies of the Federal Government 
     responsible for nonproliferation activities;
       (D) the effectiveness of the organization and function of 
     interagency groups in ensuring implementation of United 
     States treaty obligations, laws, and policies with respect to 
     nonproliferation;
       (E) the administration of sanctions for purposes of 
     nonproliferation, including the measures taken by departments 
     and agencies of the Federal Government to implement, assess, 
     and enhance the effectiveness of such sanctions;
       (F) the organization, management, and oversight of United 
     States counterproliferation activities;
       (G) the recruitment, training, morale, expertise, 
     retention, and advancement of Federal Government personnel 
     responsible for the nonproliferation functions of the Federal 
     Government, including any problems in such activities;
       (H) the role in United States nonproliferation activities 
     of the National Security Council, the Office of Management 
     and Budget, the Office of Science and Technology Policy, and 
     other offices in the Executive Office of the President having 
     responsibilities for such activities;
       (I) the organization of the activities of the Federal 
     Government to verify government-to-government assurances and 
     commitments with respect to nonproliferation, including 
     assurances regarding the future use of commodities exported 
     from the United States; and
       (J) the costs and benefits to the United States of 
     increased centralization and of decreased centralization in 
     the administration of the nonproliferation activities of the 
     Federal Government.
       (b) Recommendations.--In conducting the study, the 
     Commission shall develop recommendations on means of 
     improving the effectiveness of the organization of the 
     departments and agencies of the Federal Government in meeting 
     the national security interests of the United States with 
     respect to the proliferation of weapons of mass destruction. 
     Such recommendations shall include specific recommendations 
     to eliminate duplications of effort, and other 
     inefficiencies, in and among such departments and agencies.
       (c) Report.--(1) Not later than 18 months after the date of 
     the enactment of this Act, the Commission shall submit to 
     Congress a report containing a detailed statement of the 
     findings and conclusions of the Commission, together with its 
     recommendations for such legislation and administrative 
     actions as it considers appropriate.
       (2) The report shall be submitted in unclassified form, but 
     may include a classified annex.

     SEC. 713. POWERS OF COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the purposes of this subtitle.
       (b) Information From Federal Agencies.--
       (1) In general.--The Commission may secure directly from 
     any Federal department or agency such information as the 
     Commission considers necessary to carry out the provisions of 
     this subtitle. Upon request of the Chairman of the 
     Commission, the head of such department or agency shall 
     furnish such information to the Commission.
       (2) Classified information.--A department or agency may 
     furnish the Commission classified information under this 
     subsection. The Commission shall take appropriate actions to 
     safeguard classified information furnished to the Commission 
     under this paragraph.
       (c) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (d) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 714. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     who is not an officer or employee of the Federal Government 
     shall be compensated at a rate equal to the daily equivalent 
     of the annual rate of basic pay prescribed for level IV of 
     the Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Commission. All members of the Commission who are 
     officers or employees of the United States shall serve 
     without compensation in addition to that received for their 
     services as officers or employees of the United States.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Staff.--
       (1) In general.--The Chairman of the Commission may, 
     without regard to the civil service laws and regulations, 
     appoint and terminate an executive director and such other 
     additional personnel as may be necessary to enable the 
     Commission to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     Commission.
       (2) Compensation.--The Chairman of the Commission may fix 
     the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States

[[Page H10941]]

     Code, relating to classification of positions and General 
     Schedule pay rates, except that the rate of pay for the 
     executive director and other personnel may not exceed the 
     rate payable for level V of the Executive Schedule under 
     section 5316 of such title.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairman of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.

     SEC. 715. TERMINATION OF COMMISSION.

       The Commission shall terminate 60 days after the date on 
     which the Commission submits its report under section 712(c).

     SEC. 716. DEFINITION.

       For purposes of this subtitle, the term ``intelligence 
     community'' shall have the meaning given such term in section 
     3(4) of the National Security Act of 1947 (50 U.S.C. 
     401a(4)).

     SEC. 717. PAYMENT OF COMMISSION EXPENSES.

       The compensation, travel expenses, per diem allowances of 
     members and employees of the Commission, and other expenses 
     of the Commission shall be paid out of funds available to the 
     Director of Central Intelligence for the payment of 
     compensation, travel allowances, and per diem allowances, 
     respectively, of employees of the Central Intelligence 
     Agency.
                       Subtitle B--Other Matters

     SEC. 721. REPORTS ON ACQUISITION OF TECHNOLOGY RELATING TO 
                   WEAPONS OF MASS DESTRUCTION AND ADVANCED 
                   CONVENTIONAL MUNITIONS.

       (a) Reports.--Not later than 6 months after the date of the 
     enactment of this Act, and every 6 months thereafter, the 
     Director of Central Intelligence shall submit to Congress a 
     report on--
       (1) the acquisition by foreign countries during the 
     preceding 6 months of dual-use and other technology useful 
     for the development or production of weapons of mass 
     destruction (including nuclear weapons, chemical weapons, and 
     biological weapons) and advanced conventional munitions; and
       (2) trends in the acquisition of such technology by such 
     countries.
       (b) Form of Reports.--The reports submitted under 
     subsection (a) shall be submitted in unclassified form, but 
     may include a classified annex.
       TITLE VIII--RENEWAL AND REFORM OF INTELLIGENCE ACTIVITIES

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Intelligence Renewal and 
     Reform Act of 1996''.

     SEC. 802. COMMITTEE ON FOREIGN INTELLIGENCE.

       Section 101 of the National Security Act of 1947 (50 U.S.C. 
     402) is amended--
       (1) by redesignating subsection (h) as subsection (j); and
       (2) by inserting after subsection (g) the following new 
     subsection (h):
       ``(h)(1) There is established within the National Security 
     Council a committee to be known as the Committee on Foreign 
     Intelligence (in this subsection referred to as the 
     `Committee').
       ``(2) The Committee shall be composed of the following:
       ``(A) The Director of Central Intelligence.
       ``(B) The Secretary of State.
       ``(C) The Secretary of Defense.
       ``(D) The Assistant to the President for National Security 
     Affairs, who shall serve as the chairperson of the Committee.
       ``(E) Such other members as the President may designate.
       ``(3) The function of the Committee shall be to assist the 
     Council in its activities by--
       ``(A) identifying the intelligence required to address the 
     national security interests of the United States as specified 
     by the President;
       ``(B) establishing priorities (including funding 
     priorities) among the programs, projects, and activities that 
     address such interests and requirements; and
       ``(C) establishing policies relating to the conduct of 
     intelligence activities of the United States, including 
     appropriate roles and missions for the elements of the 
     intelligence community and appropriate targets of 
     intelligence collection activities.
       ``(4) In carrying out its function, the Committee shall--
       ``(A) conduct an annual review of the national security 
     interests of the United States;
       ``(B) identify on an annual basis, and at such other times 
     as the Council may require, the intelligence required to meet 
     such interests and establish an order of priority for the 
     collection and analysis of such intelligence; and
       ``(C) conduct an annual review of the elements of the 
     intelligence community in order to determine the success of 
     such elements in collecting, analyzing, and disseminating the 
     intelligence identified under subparagraph (B).
       ``(5) The Committee shall submit each year to the Council 
     and to the Director of Central Intelligence a comprehensive 
     report on its activities during the preceding year, including 
     its activities under paragraphs (3) and (4).''.

     SEC. 803. ANNUAL REPORTS ON INTELLIGENCE.

       (a) In General.--Section 109 of the National Security Act 
     of 1947 (50 U.S.C. 404d) is amended by striking out 
     subsections (a) and (b) and inserting in lieu thereof the 
     following new subsections:
       ``Sec. 109. (a) In General.--(1) Not later than January 31 
     each year, the President shall submit to the appropriate 
     congressional committees a report on the requirements of the 
     United States for intelligence and the activities of the 
     intelligence community.
       ``(2) The purpose of the report is to facilitate an 
     assessment of the activities of the intelligence community 
     during the preceding fiscal year and to assist in the 
     development of a mission and a budget for the intelligence 
     community for the fiscal year beginning in the year in which 
     the report is submitted.
       ``(3) The report shall be submitted in unclassified form, 
     but may include a classified annex.
       ``(b) Matters Covered.--(1) Each report under subsection 
     (a) shall--
       ``(A) specify the intelligence required to meet the 
     national security interests of the United States, and set 
     forth an order of priority for the collection and analysis of 
     intelligence required to meet such interests, for the fiscal 
     year beginning in the year in which the report is submitted; 
     and
       ``(B) evaluate the performance of the intelligence 
     community in collecting and analyzing intelligence required 
     to meet such interests during the fiscal year ending in the 
     year preceding the year in which the report is submitted, 
     including a description of the significant successes and 
     significant failures of the intelligence community in such 
     collection and analysis during that fiscal year.
       ``(2) The report shall specify matters under paragraph 
     (1)(A) in sufficient detail to assist Congress in making 
     decisions with respect to the allocation of resources for the 
     matters specified.
       ``(c) Definition.--In this section, the term `appropriate 
     congressional committees' means the following:
       ``(1) The Select Committee on Intelligence, the Committee 
     on Appropriations, and the Committee on Armed Services of the 
     Senate.
       ``(2) The Permanent Select Committee on Intelligence, the 
     Committee on Appropriations, and the Committee on National 
     Security of the House of Representatives.''.
       (b) Conforming Amendments.--(1) The section heading of such 
     section is amended to read as follows:


                   ``annual report on intelligence''.

       (2) The table of contents for Act is amended by striking 
     out the item relating to section 109 and inserting in lieu 
     thereof the following new item:

``Sec. 109. Annual report on intelligence.''.

     SEC. 804. TRANSNATIONAL THREATS.

       Section 101 of the National Security Act of 1947 (50 U.S.C. 
     402) is amended by inserting after subsection (h), as amended 
     by section 802 of this Act, the following new subsection:
       ``(i)(1) There is established within the National Security 
     Council a committee to be known as the Committee on 
     Transnational Threats (in this subsection referred to as the 
     `Committee').
       ``(2) The Committee shall include the following members:
       ``(A) The Director of Central Intelligence.
       ``(B) The Secretary of State.
       ``(C) The Secretary of Defense.
       ``(D) The Attorney General.
       ``(E) The Assistant to the President for National Security 
     Affairs, who shall serve as the chairperson of the Committee.
       ``(F) Such other members as the President may designate.
       ``(3) The function of the Committee shall be to coordinate 
     and direct the activities of the United States Government 
     relating to combatting transnational threats.
       ``(4) In carrying out its function, the Committee shall--
       ``(A) identify transnational threats;
       ``(B) develop strategies to enable the United States 
     Government to respond to transnational threats identified 
     under subparagraph (A);
       ``(C) monitor implementation of such strategies;
       ``(D) make recommendations as to appropriate responses to 
     specific transnational threats;
       ``(E) assist in the resolution of operational and policy 
     differences among Federal departments and agencies in their 
     responses to transnational threats;
       ``(F) develop policies and procedures to ensure the 
     effective sharing of information about transnational threats 
     among Federal departments and agencies, including law 
     enforcement agencies and the elements of the intelligence 
     community; and
       ``(G) develop guidelines to enhance and improve the 
     coordination of activities of Federal law enforcement 
     agencies and elements of the intelligence community outside 
     the United States with respect to transnational threats.
       ``(5) For purposes of this subsection, the term 
     `transnational threat' means the following:
       ``(A) Any transnational activity (including international 
     terrorism, narcotics trafficking, the proliferation of 
     weapons of mass destruction and the delivery systems for such 
     weapons, and organized crime) that threatens the national 
     security of the United States.
       ``(B) Any individual or group that engages in an activity 
     referred to in subparagraph (A).''.

     SEC. 805. OVERALL MANAGEMENT OF CENTRAL INTELLIGENCE.

       (a) Office of the Director of Central Intelligence.--Title 
     I of the National Security Act of 1947 (50 U.S.C. 402 et 
     seq.) is amended by striking out section 102 and inserting in 
     lieu thereof the following new section 102:


            ``office of the director of central intelligence

       ``Sec. 102. (a) Director of Central Intelligence.--There is 
     a Director of Central Intelligence who shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate. The Director shall--
       ``(1) serve as head of the United States intelligence 
     community;
       ``(2) act as the principal adviser to the President for 
     intelligence matters related to the national security; and

[[Page H10942]]

       ``(3) serve as head of the Central Intelligence Agency.
       ``(b) Deputy Directors of Central Intelligence.--(1) There 
     is a Deputy Director of Central Intelligence who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       ``(2) There is a Deputy Director of Central Intelligence 
     for Community Management who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       ``(3) Each Deputy Director of Central Intelligence shall 
     have extensive national security expertise.
       ``(c) Military Status of Director and Deputy Directors.--
     (1)(A) Not more than one of the individuals serving in the 
     positions specified in subparagraph (B) may be a commissioned 
     officer of the Armed Forces, whether in active or retired 
     status.
       ``(B) The positions referred to in subparagraph (A) are the 
     following:
       ``(i) The Director of Central Intelligence.
       ``(ii) The Deputy Director of Central Intelligence.
       ``(iii) The Deputy Director of Central Intelligence for 
     Community Management.
       ``(2) It is the sense of Congress that, under ordinary 
     circumstances, it is desirable that one of the individuals 
     serving in the positions specified in paragraph (1)(B)--
       ``(A) be a commissioned officer of the Armed Forces, 
     whether in active or retired status; or
       ``(B) have, by training or experience, an appreciation of 
     military intelligence activities and requirements.
       ``(3) A commissioned officer of the Armed Forces, while 
     serving in a position specified in paragraph (1)(B)--
       ``(A) shall not be subject to supervision or control by the 
     Secretary of Defense or by any officer or employee of the 
     Department of Defense;
       ``(B) shall not exercise, by reason of the officer's status 
     as a commissioned officer, any supervision or control with 
     respect to any of the military or civilian personnel of the 
     Department of Defense except as otherwise authorized by law; 
     and
       ``(C) shall not be counted against the numbers and 
     percentages of commissioned officers of the rank and grade of 
     such officer authorized for the military department of that 
     officer.
       ``(4) Except as provided in subparagraph (A) or (B) of 
     paragraph (3), the appointment of an officer of the Armed 
     Forces to a position specified in paragraph (1)(B) shall not 
     affect the status, position, rank, or grade of such officer 
     in the Armed Forces, or any emolument, perquisite, right, 
     privilege, or benefit incident to or arising out of any such 
     status, position, rank, or grade.
       ``(5) A commissioned officer of the Armed Forces on active 
     duty who is appointed to a position specified in paragraph 
     (1)(B), while serving in such position and while remaining on 
     active duty, shall continue to receive military pay and 
     allowances and shall not receive the pay prescribed for such 
     position. Funds from which such pay and allowances are paid 
     shall be reimbursed from funds available to the Director of 
     Central Intelligence.
       ``(d) Duties of Deputy Directors.--(1)(A) The Deputy 
     Director of Central Intelligence shall assist the Director of 
     Central Intelligence in carrying out the Director's 
     responsibilities under this Act.
       ``(B) The Deputy Director of Central Intelligence shall act 
     for, and exercise the powers of, the Director of Central 
     Intelligence during the Director's absence or disability or 
     during a vacancy in the position of the Director of Central 
     Intelligence.
       ``(2) The Deputy Director of Central Intelligence for 
     Community Management shall, subject to the direction of the 
     Director of Central Intelligence, be responsible for the 
     following:
       ``(A) Directing the operations of the Community Management 
     Staff.
       ``(B) Through the Assistant Director of Central 
     Intelligence for Collection, ensuring the efficient and 
     effective collection of national intelligence using technical 
     means and human sources.
       ``(C) Through the Assistant Director of Central 
     Intelligence for Analysis and Production, conducting 
     oversight of the analysis and production of intelligence by 
     elements of the intelligence community.
       ``(D) Through the Assistant Director of Central 
     Intelligence for Administration, performing community-wide 
     management functions of the intelligence community, including 
     the management of personnel and resources.
       ``(3)(A) The Deputy Director of Central Intelligence takes 
     precedence in the Office of the Director of Central 
     Intelligence immediately after the Director of Central 
     Intelligence.
       ``(B) The Deputy Director of Central Intelligence for 
     Community Management takes precedence in the Office of the 
     Director of Central Intelligence immediately after the Deputy 
     Director of Central Intelligence.
       ``(e) Office of the Director of Central Intelligence.--(1) 
     There is an Office of the Director of Central Intelligence. 
     The function of the Office is to assist the Director of 
     Central Intelligence in carrying out the duties and 
     responsibilities of the Director under this Act and to carry 
     out such other duties as may be prescribed by law.
       ``(2) The Office of the Director of Central Intelligence is 
     composed of the following:
       ``(A) The Director of Central Intelligence.
       ``(B) The Deputy Director of Central Intelligence.
       ``(C) The Deputy Director of Central Intelligence for 
     Community Management.
       ``(D) The National Intelligence Council.
       ``(E) The Assistant Director of Central Intelligence for 
     Collection.
       ``(F) The Assistant Director of Central Intelligence for 
     Analysis and Production.
       ``(G) The Assistant Director of Central Intelligence for 
     Administration.
       ``(H) Such other offices and officials as may be 
     established by law or the Director of Central Intelligence 
     may establish or designate in the Office.
       ``(3) To assist the Director in fulfilling the 
     responsibilities of the Director as head of the intelligence 
     community, the Director shall employ and utilize in the 
     Office of the Director of Central Intelligence a professional 
     staff having an expertise in matters relating to such 
     responsibilities and may establish permanent positions and 
     appropriate rates of pay with respect to that staff.''.
       (b) Central Intelligence Agency.--Title I of the National 
     Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by 
     inserting after section 102, as amended by subsection (a), 
     the following new section:


                     ``central intelligence agency

       ``Sec. 102A. There is a Central Intelligence Agency. The 
     function of the Agency shall be to assist the Director of 
     Central Intelligence in carrying out the responsibilities 
     referred to in paragraphs (1) through (5) of section 103(d) 
     of this Act.''.
       (c) Clerical Amendment.--The table of contents for that Act 
     is amended by striking out the item relating to section 102 
     and inserting in lieu thereof the following new items:

``Sec. 102. Office of the Director of Central Intelligence.
``Sec. 102A. Central Intelligence Agency.''.

     SEC. 806. NATIONAL INTELLIGENCE COUNCIL.

       Section 103(b) of the National Security Act of 1947 (50 
     U.S.C. 403-3(b)) is amended--
       (1) in paragraph (1)(B), by inserting ``, or as contractors 
     of the Council or employees of such contractors,'' after ``on 
     the Council'';
       (2) in paragraph (2)--
       (A) by striking out ``and'' at the end of subparagraph (A);
       (B) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (C) by inserting after subparagraph (A) the following new 
     subparagraph (B):
       ``(B) evaluate community-wide collection and production of 
     intelligence by the intelligence community and the 
     requirements and resources of such collection and production; 
     and'';
       (3) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively;
       (4) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) Subject to the direction and control of the Director 
     of Central Intelligence, the Council may carry out its 
     responsibilities under this subsection by contract, including 
     contracts for substantive experts necessary to assist the 
     Council with particular assessments under this subsection.''; 
     and
       (5) in paragraph (5), as so redesignated, by adding at the 
     end the following: ``The Council shall also be readily 
     accessible to policymaking officials and other appropriate 
     individuals not otherwise associated with the intelligence 
     community.''.

     SEC. 807. ENHANCEMENT OF AUTHORITY OF DIRECTOR OF CENTRAL 
                   INTELLIGENCE TO MANAGE BUDGET, PERSONNEL, AND 
                   ACTIVITIES OF INTELLIGENCE COMMUNITY.

       (a) In General.--Section 103(c) of the National Security 
     Act of 1947 (50 U.S.C. 403-3(c)) is amended--
       (1) by striking out paragraph (1) and inserting in lieu 
     thereof the following new paragraph (1):
       ``(1) facilitate the development of an annual budget for 
     intelligence and intelligence-related activities of the 
     United States by--
       ``(A) developing and presenting to the President an annual 
     budget for the National Foreign Intelligence Program; and
       ``(B) participating in the development by the Secretary of 
     Defense of the annual budgets for the Joint Military 
     Intelligence Program and the Tactical Intelligence and 
     Related Activities Program;'';
       (2) by redesignating paragraphs (3) through (6) as 
     paragraphs (4) through (7), respectively; and
       (3) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) approve collection requirements, determine collection 
     priorities, and resolve conflicts in collection priorities 
     levied on national collection assets, except as otherwise 
     agreed with the Secretary of Defense pursuant to the 
     direction of the President;''.
       (b) Use of Funds.--Section 104(c) of the National Security 
     Act of 1947 (50 U.S.C. 403-4(c)) is amended by adding at the 
     end the following: ``The Secretary of Defense shall consult 
     with the Director of Central Intelligence before 
     reprogramming funds made available under the Joint Military 
     Intelligence Program.''.
       (c) Periodic Reports on Expenditures.--Not later than 
     January 1, 1997, the Director of Central Intelligence and the 
     Secretary of Defense shall prescribe guidelines to ensure 
     prompt reporting to the Director and the Secretary on a 
     periodic basis of budget execution data for all national, 
     defense-wide, and tactical intelligence activities.
       (d) Database Program Tracking.--Not later than January 1, 
     1999, the Director of Central Intelligence and the Secretary 
     of Defense shall develop and implement a database to provide 
     timely and accurate information on the amounts, purposes, and 
     status of the resources, including periodic budget execution 
     updates, for all national, defense-wide, and tactical 
     intelligence activities.
       (e) Personnel, Training, and Administrative Activities.--
     Not later than January 31 of each year through 1999, the 
     Director of Central Intelligence shall submit to the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of

[[Page H10943]]

     Representatives a report on the policies and programs the 
     Director has instituted under subsection (f) of section 104 
     of the National Security Act of 1947.

     SEC. 808. RESPONSIBILITIES OF SECRETARY OF DEFENSE PERTAINING 
                   TO THE NATIONAL FOREIGN INTELLIGENCE PROGRAM.

       Section 105 of the National Security Act of 1947 (50 U.S.C. 
     403-5) is amended--
       (1) in subsection (a), by inserting ``, in consultation 
     with the Director of Central Intelligence,'' after 
     ``Secretary of Defense'' in the matter preceding paragraph 
     (1); and
       (2) by adding at the end the following:
       ``(d) Annual Evaluation of the Director of Central 
     Intelligence.--The Director of Central Intelligence, in 
     consultation with the Secretary of Defense and the Chairman 
     of the Joint Chiefs of Staff, shall submit each year to the 
     Committee on Foreign Intelligence of the National Security 
     Council and the appropriate congressional committees (as 
     defined in section 109(c) of this Act) an evaluation of the 
     performance and the responsiveness of the National Security 
     Agency, the National Reconnaissance Office, and the National 
     Imagery and Mapping Agency in meeting their national 
     missions.''.

     SEC. 809. IMPROVEMENT OF INTELLIGENCE COLLECTION.

       (a) Assistant Director of Central Intelligence for 
     Collection.--Section 102 of the National Security Act of 
     1947, as amended by section 805(a) of this Act, is further 
     amended by adding at the end the following:
       ``(f) Assistant Director of Central Intelligence for 
     Collection.--(1) To assist the Director of Central 
     Intelligence in carrying out the Director's responsibilities 
     under this Act, there shall be an Assistant Director of 
     Central Intelligence for Collection who shall be appointed by 
     the President, by and with the advice and consent of the 
     Senate.
       ``(2) The Assistant Director for Collection shall assist 
     the Director of Central Intelligence in carrying out the 
     Director's collection responsibilities in order to ensure the 
     efficient and effective collection of national 
     intelligence.''.
       (b) Consolidation of Human Intelligence Collection 
     Activities.--Not later than 90 days after the date of the 
     enactment of this Act, the Director of Central Intelligence 
     and the Deputy Secretary of Defense shall jointly submit to 
     the Committee on Armed Services and the Select Committee on 
     Intelligence of the Senate and the Committee on National 
     Security and the Permanent Select Committee on Intelligence 
     of the House of Representatives a report on the ongoing 
     efforts of those officials to achieve commonality, 
     interoperability, and, where practicable, consolidation of 
     the collection of clandestine intelligence from human sources 
     conducted by the Defense Human Intelligence Service of the 
     Department of Defense and the Directorate of Operations of 
     the Central Intelligence Agency.

     SEC. 810. IMPROVEMENT OF ANALYSIS AND PRODUCTION OF 
                   INTELLIGENCE.

       Section 102 of the National Security Act of 1947, as 
     amended by section 809(a) of this Act, is further amended by 
     adding at the end the following:
       ``(g) Assistant Director of Central Intelligence for 
     Analysis and Production.--(1) To assist the Director of 
     Central Intelligence in carrying out the Director's 
     responsibilities under this Act, there shall be an Assistant 
     Director of Central Intelligence for Analysis and Production 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate.
       ``(2) The Assistant Director for Analysis and Production 
     shall--
       ``(A) oversee the analysis and production of intelligence 
     by the elements of the intelligence community;
       ``(B) establish standards and priorities relating to such 
     analysis and production;
       ``(C) monitor the allocation of resources for the analysis 
     and production of intelligence in order to identify 
     unnecessary duplication in the analysis and production of 
     intelligence;
       ``(D) identify intelligence to be collected for purposes of 
     the Assistant Director of Central Intelligence for 
     Collection; and
       ``(E) provide such additional analysis and production of 
     intelligence as the President and the National Security 
     Council may require.''.

     SEC. 811. IMPROVEMENT OF ADMINISTRATION OF INTELLIGENCE 
                   ACTIVITIES.

       Section 102 of the National Security Act of 1947, as 
     amended by section 810 of this Act, is further amended by 
     adding at the end the following:
       ``(h) Assistant Director of Central Intelligence for 
     Administration.--(1) To assist the Director of Central 
     Intelligence in carrying out the Director's responsibilities 
     under this Act, there shall be an Assistant Director of 
     Central Intelligence for Administration who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       ``(2) The Assistant Director for Administration shall 
     manage such activities relating to the administration of the 
     intelligence community as the Director of Central 
     Intelligence shall require.''.

     SEC. 812. PAY LEVEL OF DEPUTY DIRECTOR OF CENTRAL 
                   INTELLIGENCE FOR COMMUNITY MANAGEMENT AND 
                   ASSISTANT DIRECTORS OF CENTRAL INTELLIGENCE.

       (a) Executive Schedule III Pay Level.--Section 5314 of 
     title 5, United States Code, is amended by striking out item 
     the relating to the Deputy Director of Central Intelligence 
     and inserting in lieu thereof the following:
       ``Deputy Directors of Central Intelligence (2).''.
       (b) Executive Schedule IV Pay Level.--Section 5315 of title 
     5, United States Code, is amended by adding at the end the 
     following:
       ``Assistant Directors of Central Intelligence (3).''.

     SEC. 813. GENERAL COUNSEL OF THE CENTRAL INTELLIGENCE AGENCY.

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


          ``general counsel of the central intelligence agency

       ``Sec. 20. (a) There is a General Counsel of the Central 
     Intelligence Agency, appointed from civilian life by the 
     President, by and with the advice and consent of the Senate.
       ``(b) The General Counsel is the chief legal officer of the 
     Central Intelligence Agency.
       ``(c) The General Counsel of the Central Intelligence 
     Agency shall perform such functions as the Director of 
     Central Intelligence may prescribe.''.
       (b) Applicability of Appointment Requirements.--The 
     requirement established by section 20 of the Central 
     Intelligence Agency Act of 1949, as added by subsection (a), 
     for the appointment by the President, by and with the advice 
     and consent of the Senate, of an individual to the position 
     of General Counsel of the Central Intelligence Agency shall 
     apply as follows:
       (1) To any vacancy in such position that occurs after the 
     date of the enactment of this Act.
       (2) To the incumbent serving in such position on the date 
     of the enactment of this Act as of the date that is six 
     months after such date of enactment, if such incumbent has 
     served in such position continuously between such date of 
     enactment and the date that is six months after such date of 
     enactment.
       (c) Executive Schedule IV Pay Level.--Section 5315 of title 
     5, United States Code, as amended by section 812 of this Act, 
     is further amended by adding at the end the following:
       ``General Counsel of the Central Intelligence Agency.''.

     SEC. 814. ASSISTANCE FOR LAW ENFORCEMENT AGENCIES BY 
                   INTELLIGENCE COMMUNITY.

       (a) In General.--Title I of the National Security Act of 
     1947 (50 U.S.C. 402 et seq.) is amended by inserting after 
     section 105 the following new section:


         ``assistance to united states law enforcement agencies

       ``Sec. 105A. (a) Authority To Provide Assistance.--Subject 
     to subsection (b), elements of the intelligence community 
     may, upon the request of a United States law enforcement 
     agency, collect information outside the United States about 
     individuals who are not United States persons. Such elements 
     may collect such information notwithstanding that the law 
     enforcement agency intends to use the information collected 
     for purposes of a law enforcement investigation or 
     counterintelligence investigation.
       ``(b) Limitation on Assistance by Elements of Department of 
     Defense.--(1) With respect to elements within the Department 
     of Defense, the authority in subsection (a) applies only to 
     the following:
       ``(A) The National Security Agency.
       ``(B) The National Reconnaissance Office.
       ``(C) The National Imagery and Mapping Agency.
       ``(D) The Defense Intelligence Agency.
       ``(2) Assistance provided under this section by elements of 
     the Department of Defense may not include the direct 
     participation of a member of the Army, Navy, Air Force, or 
     Marine Corps in an arrest or similar activity.
       ``(3) Assistance may not be provided under this section by 
     an element of the Department of Defense if the provision of 
     such assistance will adversely affect the military 
     preparedness of the United States.
       ``(4) The Secretary of Defense shall prescribe regulations 
     governing the exercise of authority under this section by 
     elements of the Department of Defense, including regulations 
     relating to the protection of sources and methods in the 
     exercise of such authority.
       ``(c) Definitions.--For purposes of subsection (a):
       ``(1) The term `United States law enforcement agency' means 
     any department or agency of the Federal Government that the 
     Attorney General designates as law enforcement agency for 
     purposes of this section.
       ``(2) The term `United States person' means the following:
       ``(A) A United States citizen.
       ``(B) An alien known by the intelligence agency concerned 
     to be a permanent resident alien.
       ``(C) An unincorporated association substantially composed 
     of United States citizens or permanent resident aliens.
       ``(D) A corporation incorporated in the United States, 
     except for a corporation directed and controlled by a foreign 
     government or governments.''.
       (b) Clerical Amendment.--The table of contents for that Act 
     is amended by inserting after the item relating to section 
     105 the following new item:

``Sec. 105A. Assistance to United States law enforcement agencies.''.

     SEC. 815. APPOINTMENT OF OFFICIALS RESPONSIBLE FOR 
                   INTELLIGENCE-RELATED ACTIVITIES.

       (a) In General.--Section 106 of the National Security Act 
     of 1947 (50 U.S.C. 403-6) is amended to read as follows:


    ``appointment of officials responsible for intelligence-related 
                               activities

       ``Sec. 106. (a) Concurrence of DCI in Certain 
     Appointments.--(1) In the event of a vacancy in a position 
     referred to in paragraph (2), the Secretary of Defense shall 
     obtain the concurrence of the Director of Central 
     Intelligence before recommending to the President an 
     individual for appointment to the position. If the Director 
     does not concur in the recommendation, the Secretary may make 
     the recommendation to the President without the Director's 
     concurrence, but shall include in the recommendation a 
     statement that the Director does not concur in the 
     recommendation.

[[Page H10944]]

       ``(2) Paragraph (1) applies to the following positions:
       ``(A) The Director of the National Security Agency.
       ``(B) The Director of the National Reconnaissance Office.
       ``(C) The Director of the National Imagery and Mapping 
     Agency.
       ``(b) Consultation with DCI in Certain Appointments.--(1) 
     In the event of a vacancy in a position referred to in 
     paragraph (2), the head of the department or agency having 
     jurisdiction over the position shall consult with the 
     Director of Central Intelligence before appointing an 
     individual to fill the vacancy or recommending to the 
     President an individual to be nominated to fill the vacancy.
       ``(2) Paragraph (1) applies to the following positions:
       ``(A) The Director of the Defense Intelligence Agency.
       ``(B) The Assistant Secretary of State for Intelligence and 
     Research.
       ``(C) The Director of the Office of Nonproliferation and 
     National Security of the Department of Energy.
       ``(3) In the event of a vacancy in the position of the 
     Assistant Director, National Security Division of the Federal 
     Bureau of Investigation, the Director of the Federal Bureau 
     of Investigation shall provide timely notice to the Director 
     of Central Intelligence of the recommendation of the Director 
     of the Federal Bureau of Investigation of an individual to 
     fill the position in order that the Director of Central 
     Intelligence may consult with the Director of the Federal 
     Bureau of Investigation before the Attorney General appoints 
     an individual to fill the vacancy.''.
       (b) Clerical Amendment.--The table of contents for that Act 
     is amended by striking out the item relating to section 106 
     and inserting in lieu thereof the following new item:

``Sec. 106. Appointment of officials responsible for intelligence-
              related activities.''.

     SEC. 816. STUDY ON THE FUTURE OF INTELLIGENCE COLLECTION.

       (a) Study.--The Director of Central Intelligence shall, in 
     consultation with the Deputy Secretary of Defense, conduct a 
     study on the future of intelligence collection. The study 
     shall address whether collection resources can be managed in 
     a more consolidated, integrated manner. The study is not 
     limited to, but should include, specific examination of the 
     following:
       (1) Establishing within the Intelligence Community a single 
     agency with responsibility for--
       (A) the clandestine collection of intelligence through 
     human sources and other clandestine techniques;
       (B) covert action; and
       (C) representing the Director of Central Intelligence in 
     liaison with foreign intelligence and security services.
       (2) Establishing a single agency for the conduct of 
     technical intelligence collection activities, including--
       (A) signals intelligence (SIGINT), imagery intelligence 
     (IMINT), and measurement and signatures intelligence 
     (MASINT);
       (B) first-phase (or initial) exploitation of the results of 
     such collection;
       (C) dissemination of such collection in a timely manner;
       (D) development of processing and exploitation technologies 
     to support these functions; and
       (E) serving as the sole agent within the Intelligence 
     Community for--
       (i) the specification of technical requirements for such 
     reconnaissance systems as may be needed to meet the signals 
     intelligence, imagery intelligence, and measurement and 
     signatures intelligence collection requirements of the 
     Intelligence Community; and
       (ii) the operation and final disposition of such systems.
       (3) Establishing a single agency--
       (A) to serve as the sole agent within the Intelligence 
     Community for the conduct of research, development, test, and 
     evaluation, for procurement, and for launch of satellite 
     reconnaissance systems that may be required to satisfy the 
     intelligence collection requirements of the Intelligence 
     Community; and
       (B) to serve as the primary agent within the Intelligence 
     Community for the conduct of research, development, test, 
     evaluation and for procurement of reconnaissance, 
     surveillance, and sensor systems, including airborne and 
     maritime reconnaissance capabilities within the National 
     Foreign Intelligence Program and the Joint Military 
     Intelligence Program.
       (b) Criteria.--The study under subsection (a) shall--
       (1) take into account current and future technological 
     capabilities and intelligence requirements;
       (2) take into account the costs and benefits associated 
     with establishing each of the agencies described in 
     paragraphs (1) through (3) of subsection (a) as well as the 
     costs and benefits of maintaining the current system of 
     distinct ``collection stovepipes''; and
       (3) examine establishing each of the agencies described in 
     paragraphs (1) through (3) of subsection (a) both on their 
     individual merits and also with a view toward having such 
     agencies co-exist as an entire new organizational structure.
       (c) Report.--Not later than April 15, 1997, the Director of 
     Central Intelligence shall submit a report on the study to 
     the following:
       (1) The President.
       (2) The Secretary of Defense,
       (3) The Select Committee on Intelligence and the Committee 
     on Armed Services of the Senate.
       (4) The Permanent Select Committee on Intelligence and the 
     Committee on National Security of the House of 
     Representatives.

     SEC. 817. INTELLIGENCE RESERVE CORPS.

       (a) Report on Corps.--Not later than four months after the 
     date of the enactment of this Act, the Director of Central 
     Intelligence shall submit to the appropriate committees of 
     Congress a report on the Surge Augmentation Program to 
     provide for an Intelligence Reserve Corps to serve as a surge 
     or augmentation resource for the Intelligence Community. The 
     report shall include such recommendations for legislation as 
     the Director considers appropriate.
       (b) Appropriate Committees Defined.--In this section, the 
     term ``appropriate committees of Congress'' means the 
     following:
       (1) The Committee on Governmental Affairs and the Select 
     Committee on Intelligence of the Senate.
       (2) The Committee on Government Reform and Oversight and 
     the Permanent Select Committee on Intelligence of the House 
     of Representatives.
                      TITLE IX--FINANCIAL MATTERS

     SEC. 901. AUTHORIZATION OF FUNDING PROVIDED BY 1996 
                   SUPPLEMENTAL APPROPRIATIONS ACT.

       Amounts obligated or expended for intelligence or 
     intelligence-related activities based on and otherwise in 
     accordance with the appropriations provided by the Omnibus 
     Consolidated Rescissions and Appropriations Act of 1996 
     (Public Law 104-134), including any such obligations or 
     expenditures occurring before the enactment of this Act, 
     shall be deemed to have been specifically authorized by the 
     Congress for purposes of section 504 of the National Security 
     Act of 1947 (50 U.S.C. 414) and are hereby ratified and 
     confirmed.
       And the Senate agree to the same.
     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to the conference:
     Larry Combest,
     Robert K. Dornan,
     Bill Young,
     James V. Hansen,
     Jerry Lewis,
     Porter J. Goss,
     Bud Shuster,
     Bill McCollum,
     Michael N. Castle,
     Norman D. Dicks,
     Bill Richardson,
     Julian C. Dixon,
     Robert Torricelli,
     Ronald D. Coleman,
     David Skaggs,
     Nancy Pelosi,
       From the Committee on National Security, for consideration 
     of defense tactical intelligence and related agencies:
     Bob Stump,
     Floyd Spence,
                                Managers on the Part of the House.

     Arlen Specter,
     Dick Lugar,
     Richard Shelby,
     Mike DeWine,
     Jon Kyl,
     J.M. Inhofe,
     Kay Bailey Hutchison,
     Bill Cohen,
     Hank Brown,
     Bob Kerrey,
     John Glenn,
     Richard H. Bryan,
     Bob Graham,
     John F. Kerry,
     Max Baucus,
     J. Bennett Johnston,
     Charles S. Robb,
     From the Committee on Armed Services:
     Strom Thurmond,
     Sam Nunn,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3259) to authorize 
     appropriations for fiscal year 1997 for intelligence and the 
     intelligence-related activities of the United States 
     Government, the Community Management Account, and the Central 
     Intelligence Agency Retirement and Disability System, and for 
     other purposes, submit the following joint statement to the 
     House and the Senate in explanation of the effect of the 
     action agreed upon by the managers and recommended in the 
     accompanying conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.

                    Title I--Intelligence Activities


               sec. 101. authorization for appropriations

       Section 101 of the conference report lists the departments, 
     agencies, and other elements of the United States Government 
     for whose intelligence and intelligence-related activities 
     the Act authorize appropriations for fiscal year 1997.


            sec. 102. classified schedule of authorizations

       Section 102 of the conference report makes clear that the 
     details of the amounts authorized to be appropriated for 
     intelligence and intelligence-related activities and 
     applicable

[[Page H10945]]

     personnel ceilings covered under this title for fiscal year 
     1997 are contained in a classified Schedule of 
     Authorizations. The Schedule of Authorizations is 
     incorporated into the Act by this section. The details of the 
     Schedule are explained in the classified annex to this 
     report.


                sec. 103. personnel ceiling adjustments

       Section 103 of the conference report authorizes the 
     Director of Central Intelligence, with the approval of the 
     Director of the Office of Management and Budget, in fiscal 
     year 1997 to exceed the personnel ceilings applicable to the 
     components of the Intelligence Community under section 102 by 
     an amount not to exceed two percent of the total of the 
     ceilings applicable under section 102. The Director may 
     exercise this authority only when doing so is necessary to 
     the performance of important intelligence functions. Any 
     exercise of this authority must be reported to the two 
     intelligence committees of the Congress.
       The conferees emphasize that the authority conferred by 
     Section 103 is not intended to permit the wholesale raising 
     of personnel strength in any intelligence component. Rather, 
     the section provides the Director of Central Intelligence 
     with flexibility to adjust personnel levels temporarily for 
     contingencies and for overages caused by an imbalance between 
     hiring of new employees and attrition of current employees. 
     The conferees do not expect the Director of Central 
     Intelligence to allow heads of intelligence components to 
     plan to exceed levels set in the Schedule of Authorizations 
     except for the satisfaction of clearly identified hiring 
     needs which are consistent with the authorization of 
     personnel strengths in this bill. In no case is this 
     authority to be used to provide for positions denied by this 
     bill.


                 sec. 104. community management account

       Section 104 of the conference report authorizes 
     appropriations for the Community Management Account of the 
     Director of Central Intelligence and sets the personnel end-
     strength for the Intelligence Community Management Staff for 
     fiscal year 1997,
       Subsection (a) authorizes appropriations of $131,116,000 
     for fiscal year 1997 for the activities of the Community 
     Management Account (CMA) of the Director of Central 
     Intelligence. This amount includes funds identified for the 
     Advanced Research and Development Committee, which shall 
     remain available for two years.
       Subsection (b) authorizes 303 full-time personnel for the 
     Community Management Staff for fiscal year 1997 and provides 
     that such personnel may be permanent employees of the Staff 
     or detailed from various elements of the United States 
     Government.
       Subsection (c) requires that personnel be detailed on a 
     reimbursable basis except for temporary situations of less 
     than one year.
       Subsection (d) authorizes $27,000,000 of the total CMA to 
     be made available for the National Drug Intelligence Center 
     (NDIC) in Johnstown, Pennsylvania. Subsection (d) is similar 
     to section 104(e) of the House bill. The House bill 
     authorized 35 positions at NDIC to be funded in the National 
     Foreign Intelligence Program (NFIP). The conferees agreed 
     that these positions will continue to be funded in the 
     Department of Defense Community Management Account.
       The Attorney General and the DCI have agreed to designate 
     the NDIC as an element of the intelligence community, 
     pursuant to section 3(4)(J) of the National Security Act of 
     1947, and accordingly the DCI shall approve the NDIC budget 
     before its incorporation into the NFIP, pursuant to Section 
     104(b) of the National Security Act. The conferees anticipate 
     that, as with the budget for the National Security Division 
     of the FBI, the DCI will ordinarily approve the Attorney 
     General's proposed budget for the NDIC without change or will 
     make changes in the NDIC budget only after consultation with 
     the Attorney General. Moreover, even though NDIC will be 
     funded in the NFIP, the conferees emphasize that the DCI 
     should not exercise direction or control over the operations 
     of the NDIC. The conferees note that section 103(d)(1) of the 
     National Security Act provides that the Central Intelligence 
     Agency shall have no ``law enforcement powers.'' Although 
     section 103(d)(1) specifically applies only to the CIA and 
     not to the DCI, because the DCI is both head of the 
     intelligence community and head of the CIA, the conferees 
     believe it is important that the DCI not appear to be 
     involved in managing law enforcement activities. Accordingly, 
     section 104(d) of the conference report makes clear that 
     amounts appropriated for the NDIC may not be used in 
     contravention of section 103(d)(1) of the Act.
       Subsection (e) authorizes $18,000,000 of the total CMA to 
     be made available for the Environmental Intelligence and 
     Applications Program, formerly known as the Environmental 
     Task Force, to remain available for two years.

 Title II--Central Intelligence Agency Retirement and Disability System


               sec. 201. authorization of appropriations

       Section 201 authorizes appropriations in the amount of 
     $184,200,000 for fiscal year 1997 for the Central 
     Intelligence Agency Retirement and Disability Fund.

                     Title III--General Provisions


sec. 301. increase in employee compensation and benefits authorized by 
                                  law

       Section 301 of the conference report provides that 
     appropriations authorized by the conference report for 
     salary, pay, retirement, and other benefits for federal 
     employees may be increased by such additional or supplemental 
     amounts as may be necessary for increases in such 
     compensation or benefits authorized by law. Section 301 is 
     identical to section 301 of the House bill and section 301 of 
     the Senate amendment.


      sec. 302. restriction on conduct of intelligence activities

       Section 302 provided that the authorization of 
     appropriations by the conference report shall not be deemed 
     to constitute authority for the conduct of any intelligence 
     activity that is not otherwise authorized by the Constitution 
     or laws of the United States. Section 302 is identical to 
     section 302 of the House bill and section 302 of the Senate 
     amendment.


      sec. 303. limitation of availability of funds for automatic 
             declassification of records over 25 years old

       Section 303 limits the availability of funds authorized to 
     be appropriated in the National Foreign Intelligence Program 
     to $27.2 million for the purpose of carrying out Section 3.4 
     of Executive Order 12958, which directs the automatic 
     declassification of documents older than 25 years. The 
     provision is similar to section 303 of the House bill. The 
     Senate amendment contained no similar provision.
       The conferees urge the Director of Central Intelligence to 
     appoint one individual within the Community Management Staff 
     to oversee programs to implement Section 3.4 in the 
     intelligence community. This individual should be charged 
     with ensuring the programs are making progress on the 
     substantial task ahead of declassifying thousands of older 
     documents while adequately protecting intelligence sources 
     and methods. The individual should coordinate the preparation 
     by the individual NFIP programs of the programs' FY 1998 
     budget requests for funds to implement Section 3.4.


   sec. 304. application of sanctions laws to intelligence activities

       Section 304 of the conference report extends until January 
     6, 1998 the authority granted by section 303 of the 
     Intelligence Authorization Act for Fiscal Year 1996 for the 
     President to stay the imposition of an economic, cultural, 
     diplomatic, or other sanction or related action when the 
     President determines and reports to Congress that to proceed 
     without delay would seriously risk the compromise of an 
     intelligence source or method or an ongoing criminal 
     investigation. Section 304 is identical to Section 303 of the 
     Senate amendment and similar to section 304 of the House 
     bill.


                   sec. 305. expedited naturalization

       Section 305 provides for naturalization of certain 
     applicants without their having met the normal statutory 
     requirements relating to continuous residency and physical 
     presence in the United States and lack of recent affiliation 
     with the Communist Party or other totalitartion organization. 
     The section would apply to the spouse, son, or daughter of a 
     deceased alien whose death resulted from the intentional and 
     unauthorized disclosure of classified information (such as by 
     convicted spy Aldrich Ames) regarding the alien's 
     participation in U.S. intelligence activities. Existing law 
     provides for expedited naturalization for aliens who 
     themselves have made extraordinary contributions to the 
     national security of the United States or to U.S. 
     intelligence activities.
       Naturalization benefits under this provision would have to 
     be approved by the Director of Central Intelligence, the 
     Attorney General, and the Commissioner of Immigration and 
     Naturalization. Expedited naturalization would not be 
     available, however, to aliens whom the Attorney General 
     determines to have engaged in racial, religious, ethnic, or 
     political persecution or to constitute a danger to the 
     community or to the security of the United States.
       Section 305 is identical to Section 305 of the House bill. 
     The Senate amendment had no similar provision.


 sec. 306. sense of the congress on intelligence identities protection 
                                  act

       Section 306 expresses the sense of the Congress that the 
     Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 
     et seq.) should be enforced by appropriate law enforcement 
     agencies. The provision is identical to Section 306 of the 
     House bill. The Senate amendment had no similar provision.
       The Intelligence Identities Protection Act makes it a crime 
     for anyone with authorized access to classified information 
     identifying a covert agent of the United States to disclose 
     any information identifying that agent to an individual not 
     authorized to receive classified information, knowing that 
     information identifies the covert agent and that the U.S. is 
     taking affirmative measures to conceal such covert agent's 
     intelligence relationship to the United States.
       The conferees believe the Act should be enforced. The 
     provision reflects concern about the apparent unwillingness 
     of the Department of Justice to enforce the Act in several 
     recent cases involving public officials and journalists. The 
     conferees recognize that the decision whether to bring a 
     prosecution under the Identities Act involves careful 
     consideration of: whether each element of the offense can be 
     proven; in those cases in which it is determined that each 
     element of the offense can be proven, the need to deter 
     future unauthorized disclosures; and an assessment of the 
     risk of additional disclosures of classified information at 
     trial. The conferees believe the Classified Information 
     Procedures Act, enacted by Congress in 1980, can

[[Page H10946]]

     be used effectively to lessen the risks with using classified 
     information in criminal trials. The conferees further believe 
     that concerns about possible additional disclosures at trial 
     should not be the sole determinant of whether the Identities 
     Act is enforced.
       In addition to the disclosures of agent identities, the 
     conferees are concerned about the apparent increase in the 
     public disclosure of sensitive national security information 
     generally. These disclosures have placed lives at risk and, 
     in at least one instance, may have contributed to a number of 
     deaths. The intelligence oversight committees have expressed 
     intense concern to both the DCI and the Justice Department 
     and will continue to exercise appropriate oversight into the 
     measures and policies for safeguarding sensitive information.


              sec. 307. intelligence community procurement

       Section 307 expresses the sense of the Congress that the 
     Director of Central Intelligence should continue to direct 
     elements of the intelligence community to award contracts in 
     a manner that would maximize the procurement of products 
     produced in the United States, when such action is compatible 
     with the national security interests of the United States, 
     consistent with operational and security concerns, and 
     fiscally sound. A provision similar to Section 307 has been 
     contained in previous intelligence authorization acts. 
     Section 307 is similar in intent to Sections 307 through 309 
     of the House bill. The Senate amendment had no similar 
     provision.


 sec. 308. restrictions on intelligence sharing with the united nations

       Section 308 reflects the desire of the conferees to improve 
     oversight over the sharing of U.S. intelligence with the 
     United Nations and the safeguarding of such intelligence by 
     the U.N. through improved security practices. The provision 
     prohibits sharing of intelligence with the U.N. unless the 
     President certifies that (1) procedures are in place to 
     protect information provided from unauthorized disclosure of 
     U.S. intelligence sources and methods, or (2) that providing 
     such information is in the U.S. national interest. It also 
     requires the President to provide semiannual reports to 
     Congress on the types and volume of intelligence information 
     provided to the U.N. and to report to Congress any 
     unauthorized disclosure of intelligence information provided.
       The provision is identical to Section 310 of the House 
     bill. The Senate amendment had no similar provision.


     sec. 309. prohibition on using journalists as agents or assets

       Section 309 of the conference report would codify as policy 
     of the United States that the intelligence community may not 
     use as an agent or asset for intelligence collection purposes 
     any individual who is either: authorized by contract or the 
     issuance of press credentials to represent himself or 
     herself, either in the United States or abroad, as a 
     correspondent of a United States news media organization or 
     is officially recognized by a foreign government as a 
     representative of a United States media organization. The 
     prohibition against the use of such individuals as 
     intelligence agents or assets is not to exclude the voluntary 
     cooperation of any person who is aware that the cooperation 
     is being provided to an element of the intelligence 
     community. Additionally, under such procedures as the 
     President shall promulgate, the prohibition against the use 
     of journalists may be waived by either the President or the 
     Director of Central Intelligence (DCI) if he or she 
     determines in writing that the waiver is necessary to address 
     the overriding national security interests of the United 
     States. The congressional intelligence committees shall be 
     notified of any waivers provided under this section.
       Section 309 is similar to section 311 of the House bill. 
     The Senate amendment did not contain a similar provision.
       The conferees recognize the dangers faced by journalists 
     working overseas if they are suspected of being spies. 
     Section 309 is intended to mitigate that danger to the 
     maximum extent possible while providing the flexibility to 
     deal with those extremely rare circumstances in which the 
     national security interests of the United States can best be 
     promoted by utilizing the voluntary cooperation of a 
     journalist.


  sec. 310. report on intelligence community policy on protecting the 
     national information infrastructure against strategic attacks

       Section 301 requires the DCI to submit a report to Congress 
     on the threats to the national information infrastructure 
     from information warfare and other nontraditional attacks by 
     foreign nations, groups, or individuals or other groups or 
     individuals. Section 310 is similar to Section 719 of the 
     Senate amendment except for drafting modifications. The House 
     bill did not contain a similar provision.

                 Title IV--Central Intelligence Agency


 sec. 401. elimination of double surcharge on the central intelligence 
 agency relating to employees who retire or resign in fiscal year 1998 
    or 1999 and who receive voluntary separation incentive payments

       Section 401 corrects a discrepancy in existing law which 
     currently requires the CIA to make double payments to the 
     Civil Service Retirement and Disability Fund for those Agency 
     employees who take an early retirement. Section 4(a) of the 
     Federal Workforce Restructuring Act (FWRA) requires agencies 
     that offer retirement incentives, including CIA, to pay to 
     the Fund 9 percent of the final basic pay of each employee 
     who takes an early retirement. In addition, section (2)(i) of 
     the CIA Voluntary Separation Pay Act (CVSPA), enacted as part 
     of the Intelligence Authorization Act for Fiscal Year 1996, 
     requires the CIA to make a 15 percent payment for each 
     employee who takes an early retirement.
       It was not Congress' intent to have CIA make double 
     payments totalling 24 percent to the Fund. Accordingly, 
     Section 401 of the conference report provides that the 15 
     percent payment CIA is required to pay under CVSPA is in lieu 
     of the 9 percent payment required under the FWRA.
       Section 401 is identical to section 402 of the House bill. 
     The Senate amendment did not contain a similar provision.


                 sec. 402. post-employment restrictions

       Section 402 of the conference report requires the Director 
     of Central Intelligence to issue regulations requiring 
     designated employees of the Central Intelligence Agency to 
     sign written agreements committing not to represent or 
     advise, for a period of three years after that employee's 
     termination of employment with the CIA, the government or 
     political party of any foreign country.
       Section 402 is similar to Section 304 of the Senate 
     amendment. The House bill did not contain a similar 
     provision. The conferees agreed to a provision that is 
     narrower than the Senate amendment in two respects. First, 
     the written agreements would be required only of certain 
     designated officials. The conferees expect that the DCI would 
     designate senior Agency officials or others who have had 
     significant contact with foreign governments such that their 
     representation of a foreign government immediately after 
     their cessation of employment with the Agency might create 
     the appearance of a conflict of interest. Second, the 
     restrictions would apply only for a period of three years, 
     rather than five, following the employee's departure from 
     CIA. The conferees have also modified the provision to allow 
     the DCI to permit an employee to represent or advise a 
     foreign government if the DCI determines that it would be in 
     the best interest of the United States (for example, to allow 
     a former CIA employee to assist an allied government with 
     which the U.S. has a close liaison relationship).

         Title V--Department of Defense Intelligence Activities


  sec. 501. executive branch oversight of budgets of elements of the 
                         intelligence community

       Section 501 requires the President to submit a report to 
     Congress on actions that have been taken to ensure adequate 
     oversight by the executive branch of the budget and 
     expenditures of the National Reconnaissance Office and other 
     elements of the intelligence community within the Department 
     of Defense. The provision is identical to Section 305 of the 
     Senate amendment. The House bill did not contain a similar 
     provision.

               Title VI--Federal Bureau of Investigation


                 sec. 601. access to telephone records

       Section 601 amends Sections 2703 and 2709 of Title 18, 
     United States Code to clarify that the ``telephone toll 
     billing records'' which the Federal Bureau of Investigation 
     may subpoena in certain law enforcement investigations 
     include not only long distance but also local billing 
     records. Section 601 also amends Section 2707 of Title 18 to 
     allow courts to award punitive damages, and to institute 
     disciplinary actions against employees of U.S. agencies or 
     departments, for violations of Chapter 121 of Title 18.
       Section 601 is identical to Section 401 of the Senate 
     amendment. The House bill did not contain a similar 
     provision.

                  Title VII--Combatting Proliferation

       Title VII contains a number of provisions relating to 
     proliferation of weapons of mass destruction. Sections 711 
     through 717 establish and define the duties of a Commission 
     to Assess the Organization of the Federal Government to 
     Combat the Proliferation of Weapons of Mass Destruction. The 
     eight members of the Commission are to be appointed by the 
     President and the congressional leadership. The Commission is 
     required to conduct a study of the organization of the 
     federal government, including the intelligence community, for 
     combatting weapons proliferation. Section 711 of the 
     conference report sets forth a specific list of issues for 
     the Commission to address. The Commission is required to 
     submit a report to Congress not later than eighteen months 
     after enactment of this legislation. The conferees modified 
     Section 717 to provide that commission expenses shall be paid 
     out of funds available to the DCI for the payment of 
     compensation, travel allowances, and per diem of CIA 
     employees.
       Section 721 of the conference report requires the Director 
     of Central Intelligence to submit a semiannual report to 
     Congress on the acquisition by foreign countries of 
     technology for the development of weapons of mass destruction 
     and advanced conventional munitions.
       Title VII of the conference report is similar to Title VI 
     of the Senate amendment. The House bill contained no similar 
     provision.

[[Page H10947]]

       Title VIII--Renewal and Reform of Intelligence Activities

       Title VIII of the conference report contains provisions 
     intended to make the Intelligence Community operate more 
     effectively and more efficiently in the post-Cold War world. 
     These provisions would create two committees of the National 
     Security Council, one to provide better guidance to the 
     intelligence community and the other to provide senior-level 
     guidance on issues raised by the intersection of law 
     enforcement and intelligence, particularly relating to 
     terrorism, narcotics trafficking, and weapons proliferation. 
     In addition, provisions in this section strengthen the 
     ability of the Director of Central Intelligence to manage the 
     Intelligence Community by codifying his authority to 
     participate in the development of the budgets for defense-
     wide and tactical intelligence and to concur or be consulted 
     with respect to the appointments of the heads of the 
     principal NFIP agencies. Giving the DCI a database of all 
     intelligence activities and requiring all NFIP elements to 
     submit periodic budget execution reports should enable the 
     DCI to make better use of his existing authorities--given to 
     him by Congress in 1992--to approve the budgets of NFIP 
     elements and to transfer funds and personnel with the 
     concurrence of affected agency heads. The conferees urge the 
     DCI to be more assertive in using these authorities. The bill 
     also establishes a new Senate-confirmed Deputy Director of 
     Central Intelligence for Community Management and three new 
     Senate-confirmed Assistant Directors of Central Intelligence 
     to assist the DCI in managing the Intelligence Community. 
     Finally, the conference report clarifies the authority of 
     intelligence collection agencies to provide support to law 
     enforcement agencies.
       Title VIII is similar to Title VII of the Senate amendment. 
     As originally reported by the Senate Intelligence Committee 
     as part of S. 1718, Title VII would have given the DCI budget 
     execution authority over most elements of the National 
     Foreign Intelligence Program; authority to reprogram funds 
     among NFIP programs over the objection of the affected 
     department head; authority to manage the national collection 
     activities of the intelligence community; and shared 
     responsibility--with the Secretary of Defense--for managing 
     the National Security Agency, the National Reconnaissance 
     Office, and the Central Imagery Office. After extensive 
     discussions with the Senate Armed Services Committee, the 
     Senate Intelligence Committee agreed to drop or modify a 
     number of these provisions.
       Although the House bill, H.R. 3259, contained no similar 
     provisions, the House Permanent Select Committee on 
     Intelligence also undertook a major review of the roles, 
     functions, and structure of the intelligence community during 
     the 104th Congress. On April 9, 1996, the House Committee 
     released a study entitled ``IC21: Intelligence Community in 
     the 21st Century,'' which set forth the findings and 
     recommendations of the Committee staff. On June 13, 1996, the 
     House Committee reported H.R. 3237, which would have enacted 
     many of the recommendations of the staff study and would have 
     made significant changes to the current organization of the 
     intelligence community. The House National Security 
     Committee, which took H.R. 3237 on sequential referral, 
     deleted many of these provisions, and the bill was never 
     brought to the House floor.
       The conferees believe that the provisions of Title VIII 
     will help ensure that various elements of the intelligence 
     community operate more cohesively and without unnecessary 
     duplication. That the conferees agreed to more limited 
     organizational changes this year does not mean that some of 
     the more far-reaching changes proposed by S. 1718 and H.R. 
     3237 are without merit. To the contrary, the provisions in 
     both bills were the culmination of exhaustive study by both 
     committees as well as by the Commission on the Roles and 
     Capabilities of the U.S. Intelligence Community, the 17-
     member congressionally chartered commission which submitted 
     its report to Congress on April 1, 1996, and deserve further 
     consideration. The conferees specifically agreed that the DCI 
     should study the establishment of an Intelligence Community 
     Reserve and that the DCI and the Secretary of Defense should 
     study the feasibility of creating a single technical 
     collection agency as well as other specified agencies--the 
     creation of which was recommended by the IC-21 study. The 
     conferees anticipate that some of the other provisions in S. 
     1718 and H.R. 3237 that were not enacted this year will be 
     taken up again in the 104th Congress.


                              section 801

       Section 801 contains the short title VIII, the 
     ``Intelligence Renewal and Reform Act of 1996.''


                              section 802

       Section 802 amends Section 101 of the National Security Act 
     of 1947 to create a Committee on Foreign Intelligence of the 
     National Security Council. Section 802 is identical to 
     Section 702 of the Senate amendment.


                              section 803

       Section 803 amends Section 109 of the National Security Act 
     to require the President to submit an annual report to 
     Congress on U.S. intelligence requirements and priorities and 
     the performance of the U.S. Intelligence Community. Section 
     803 is identical to Section 703 of the Senate amendment.


                              section 804

       Section 804 amends Section 101 of the National Security Act 
     of 1947 to create a Committee on Transnational Threats of the 
     National Security Council. Section 804 is identical to 
     Section 704 of the Senate amendment.
       The Committee on Transnational Threats would identify 
     transnational threats; develop strategies to respond to them 
     in a coordinated way; assist in resolving operational 
     differences among federal departments and agencies; develop 
     policies and procedures to ensure the effective sharing of 
     information among federal departments and agencies, including 
     between the law enforcement and foreign policy communities; 
     and develop guidelines for coordination of federal law 
     enforcement and intelligence activities overseas.
       The conferees note, that in response to the growth in 
     global crime and the increasing number of U.S. statutes with 
     extraterritorial application, the Federal Bureau of 
     Investigation is significantly expanding its presence and 
     activities outside the United States. The conferees are 
     interested in the growth of these activities and the degree 
     to which Bureau investigations, recruitment of assets, 
     liaison with foreign intelligence services, and operational 
     activities are coordinated with U.S. intelligence agencies. 
     Accordingly, the conferees direct that, beginning no later 
     than February 1, 1997, the Director of the Federal Bureau of 
     Investigation shall submit an annual report to the 
     appropriate congressional committees regarding the activities 
     of the Bureau outside the United States. The report shall 
     specify the number of Bureau personnel posted or detailed 
     outside the United States and the extend to which the Bureau 
     plans to increase the number of such personnel and/or the 
     scope of its overseas activities. The report should describe 
     how Bureau overseas investigations, asset handling, liaison, 
     and operational activities are coordinated with the 
     Intelligence Community, and the extent to which information 
     derived from such activities is or will be shared with the 
     Intelligence Community. The intelligence committees plan to 
     monitor these matters closely.


                              section 805

       Section 705 of the Senate amendment would have amended 
     Section 102 of the National Security Act of 1947 to add a new 
     subsection (d) to establish an Office of the Director of 
     Central Intelligence to include the DCI, the DDCI; the newly 
     established positions of Assistant DCI for Collection, 
     Assistant DCI for Analysis and Production, Assistant DCI for 
     Administration, the National Intelligence Council, and such 
     other offices as the DCI may designate.
       The conferees agreed to accept the provisions in the Senate 
     amendment with the addition of a new Deputy Director for 
     Community Management (DDCI/CM), to whom the three new 
     Assistant Directors would report. This DDCI for Community 
     Management will be appointed by the President and confirmed 
     by the Senate. This Deputy will work under the direction of 
     the DCI and is responsible for assisting him in carrying out 
     his responsibilities as head of the Intelligence Community. 
     The DDCI/CM will manage a community management staff and 
     direct community-wide functions, including personnel, 
     resources, requirements, collection, research and 
     development, and analysis and production.
       The conferees recognize that there is always the potential 
     that positions requiring Presidential appointment and Senate 
     confirmation may be subject to inappropriate political 
     pressures. This is of particular concern with respect to the 
     Assistant Director of Central Intelligence for Analysis and 
     Production. Nevertheless, the conferees believe the 
     significant advantages in terms of stature and congressional 
     oversight afforded by making this a confirmable position 
     outweigh that potential concern. Moreover, the intelligence 
     oversight committees will be vigilant in their efforts to 
     ensure there is no politicization of these positions. The 
     extensive focus on charges of politicization during the 
     Senate confirmation of Robert Gates to be the DCI in 1991 
     demonstrates the seriousness with which the Congress views 
     this issue. In reviewing potential nominees for any of the 
     confirmable positions within the Intelligence Community and 
     in the course of its oversight, the Congress will look 
     carefully for any evidence that an individual has tailored 
     his or her views to curry favor with the Administration or 
     Congress, or that an individual has suffered retribution for 
     failing to succumb to political pressure.
       As amended by Section 805, section 102(d)(3) of the 
     National Security Act directs the DCI to employ and utilize a 
     professional staff to assist him in carrying out his 
     Community-wide responsibilities. This staff would be part of 
     the Office of the DCI. The staff could, at the DCI's 
     discretion, operate as a unit, or be divided among the Deputy 
     Director for Community Management and the three new Assistant 
     DCIs. The conferees anticipate that this staff would replace 
     the functions of the current Community Management Staff and, 
     while it should include some detailees from the Intelligence 
     Community, would consist primarily of a core staff of career 
     professionals.
       Section 805 also transfer the current section 102(a)(1) of 
     the National Security Act, which establishes the Central 
     Intelligence Agency, to a new section 102A of the National 
     Security Act. Section 102A would reference Section 103(d), 
     which sets forth the

[[Page H10948]]

     responsibilities of the Director of Central Intelligence as 
     head of the CIA.


                              section 806

       Section 806, concerning the National Intelligence Council, 
     is identical to Section 706 of the Senate amendment except 
     that the NIC would also specifically be directed to evaluate 
     intelligence community-wide collection and production 
     activities.


                              section 807

       Section 807 strengthens the DCI's authorities as head of 
     the intelligence community. It gives the DCI authority to 
     participate in the development by the Secretary of Defense of 
     the annual budgets for JMIP and TIARA; authority to approve 
     collection requirements, determine collection priorities, and 
     resolve conflicts in collection priorities levied on national 
     collection assets; and the right to be consulted by the 
     Secretary of Defense with respect to reprogrammings of funds 
     within the JMIP.
       The provision also directs the DCI and the Secretary of 
     Defense to develop, no later than January 1, 1999, a database 
     of all intelligence and intelligence-related programs and 
     activities, which would specify the purpose of each program 
     or activity and include information for past and future years 
     on the types and quantities of resources planned, programmed, 
     budgeted, and executed in support of specific objectives. The 
     conferees noted that the Office of Science and Technology 
     Policy within the White House has recently developed a 
     database of all research and development activities within 
     the federal government and that this database has been 
     invaluable for identifying duplication among federal R&D 
     programs. The conferees believe that the DCI has been 
     hampered in his ability to manage the intelligence community 
     by a lack of accurate and comprehensive information about all 
     intelligence community activities. Development of a database 
     for intelligence activities should gibe the DCI crucial 
     analytical and supervisory tools he needs to provide better 
     direction to and control over U.S. intelligence programs. The 
     conferees have provided funding for the development of the 
     database and urge the DCI and the Secretary of Defense to 
     move ahead as quickly as possible.
       Section 807 is similar to Section 707 of the Senate 
     amendment. In addition to minor drafting changes, the 
     provision has been modified to specifically require the DCI 
     and the Secretary of Defense to prescribe guidelines to 
     require reporting of budget execution data on all 
     intelligence activities to the DCI and the Secretary of 
     Defense. This is to ensure that this data is available to the 
     DCI and Secretary of Defense during FY 1997 and is not held 
     up pending development of the database.
       In addition, a new subsection has been added requiring the 
     DCI to submit an annual report to Congress, for the next 
     three years, on the steps he has taken under Section 104(f) 
     of the National Security Act to rotate personnel, and to 
     consolidate personnel, administrative, and security programs, 
     among intelligence community elements. The DCI was given this 
     authority in 1992 but appears to be making little use of it.


                              section 808

       Section 808 is identical to Section 708 of the Senate 
     amendment. The Section requires the DCI to submit to the 
     Committee on Foreign Intelligence and the appropriate 
     congressional committees an evaluation of the performance and 
     responsiveness of the NSA, NRO, and NIMA in meeting their 
     national missions.


                              section 809

       Section 809(a) of the conference report adds a new 
     subsection (f) to Section 102 of the National Security Act of 
     1947 to establish the position of Assistant Director of 
     Central Intelligence for Collection. This position will be 
     appointed by the President and confirmed by the Senate.
       The ADCI for Collection will be one of three new Assistant 
     Directors of Central Intelligence who will assist the DCI in 
     carrying out his Community-wide management responsibilities. 
     The ADCI for Collection will assist the DCI in carrying out 
     his intelligence collection responsibilities. The ADCI for 
     Collection will oversee all national intelligence collection 
     activities, including identifying targets, setting 
     priorities, and allocating resources where a particular 
     intelligence collection discipline offers a comparative 
     advantage. In performing this role, it is expected that the 
     ADCI for Collection will be responsible for the effective and 
     efficient operation of the interagency collection 
     committees--including those focusing on IMINT, HUMINT, 
     SIGINT, an MASINT--to ensure national collection 
     requirements, priorities, and resources are consistent with 
     intelligence consumer needs. Further, the ADCI for Collection 
     will rely upon the ADCI for Analysis and Production for 
     guidance on current collection requirements and for an 
     assessment of the need for the acquisition of future 
     collection capabilities. The ADCI for Collection will also 
     assist in implementing the DCI's authorities regarding the 
     procurement and operation of national collection systems 
     under development by other agencies and assist the DCI in 
     formulating plans and budgets of national collection 
     activities.
       Section 809(b) requires the DCI and the Deputy Secretary of 
     Defense to submit, no later than 90 days after enactment of 
     this Act, a report on their efforts to coordinate and, where 
     practicable, consolidate the human intelligence collection 
     activities of the clandestine collection elements of the 
     Defense HUMINT Service and CIA's Directorate of Operations 
     (DO). The conferees note that the Aspin-Brown Commission 
     recommended that the clandestine HUMINT collection activities 
     of the Defense HUMINT Service be consolidated into the DO. 
     The report should address the desirability of such a 
     consolidation.


                              section 810

       Section 810 adds a new section (g) to Section 102 of the 
     National Security Act of 1947 to establish the position of 
     Assistant Director of Central Intelligence for Analysis and 
     Production. This position will be appointed by the President 
     and confirmed by the Senate.
       The ADCI for Analysis and Production will assist the DCI in 
     overseeing analysis and production of intelligence by the 
     Intelligence Community, establish priorities for analysis, 
     and monitor the allocation of resources in order to eliminate 
     unnecessary duplication in analysis and production thus 
     ensuring timely delivery of intelligence products to 
     consumers.
       Intelligence analysis and production of analytical products 
     is broadly dispersed across the Intelligence Community. 
     Although some competitive analysis is necessary and some 
     products are needed to serve only the needs of a single 
     department or agency, most analysis supports the entire 
     policy community. The DCI currently lacks an effective 
     mechanism to review and supervise adequately intelligence 
     analysis and production community-wide in order to ensure the 
     most effective allocation of resources and to eliminate 
     unnecessary duplication. Intelligence producers have worked 
     together voluntarily to reduce overlaps, but the conferees 
     believe that a better management structure is needed. The new 
     ADCI for Analysis and Production would provide the basis for 
     this structure. The conferees do not expect the ADCI for 
     Analysis and Production to perform intelligence production 
     functions or roles similar to those currently performed by 
     the Chairman and members of the National Intelligence 
     Council, CIA's Deputy Director for Intelligence, the 
     Assistant Secretary of State for Intelligence & Research, or 
     DIA's Director of Production.


                              section 811

       Section 811 adds a new subsection (h) to Section 102 of the 
     National Security Act of 1947 to establish the position of 
     Assistant Director of Central Intelligence for 
     Administration. This position will be appointed by the 
     President and confirmed by the Senate.
       Numerous studies, including the Aspin-Brown Commission, 
     have urged greater consolidation of personnel and 
     administrative functions and use of common standards across 
     the Intelligence Community. The largest agencies, 
     nevertheless, continue to maintain separate administrative, 
     personnel, security, and training systems. The Aspin-Brown 
     Commission concluded ``While the Commission is willing to 
     accept that some latitude is needed for individual agencies 
     to satisfy their unique requirements, we see no reason for 
     all of these programs and activities to be administered 
     separately, or, at least without greater uniformity.'' The 
     conferees agree with this conclusion.
       The role of the proposed ADCI for Administration would be 
     to assist the DCI in bringing about this uniformity. The ADCI 
     for Administration would coordinate the various personnel 
     management systems, information systems, telecommunications 
     systems, finance and accounting services, and security 
     programs for the Intelligence Community. The conferees expect 
     that the ADCI for Administration would also assist the DCI in 
     exercising his authorities under Section 104(f) of the 
     National Security Act to consolidate personnel, 
     administrative, and security programs of Intelligence 
     Community elements.


                              section 812

       Section 812 amends Section 5315 of Title 5, United States 
     Code, to place the positions of Deputy Director of Central 
     Intelligence and Deputy Director of Central Intelligence for 
     Community Management at Executive Level III and the positions 
     of Assistant Director of Central Intelligence for Collection, 
     Assistant Director of Central Intelligence for Analysis and 
     Production, Assistant Director of Central Intelligence for 
     Administration, at Level IV of the Executive Schedule. 
     Section 812 is similar to Section 712 of the Senate 
     amendment.


                              section 813

       Section 813, which establishes the statutory position of 
     General Counsel of the CIA, is identical to Section 713 of 
     the Senate amendment, except that the conferees have modified 
     the provision to provide that it shall take effect no later 
     than six months from the date of enactment of this Act or 
     upon the appointment of a General Counsel other than the 
     individual occupying the position on the date of enactment of 
     this Act, whichever is sooner. Thus, whoever occupies the 
     non-statutory position of General Counsel at the time this 
     provision is enacted may continue to occupy that position for 
     up to six months after enactment before a formal nomination 
     must be submitted to the Senate. Nothing in the provision 
     would prevent the President from nominating the individual 
     serving as non-statutory General Counsel at the time of 
     enactment for the statutory General Counsel position. It is 
     the intent of the conferees, however, that the President 
     either nominate this individual to be the statutory General 
     Counsel within six months of the date of enactment of this 
     Act or, if

[[Page H10949]]

     this individual leaves the position of non-statutory General 
     Counsel in less than six months, that the President nominate 
     another individual to fill the statutory General Counsel 
     position.
       The conferees do not intend in any way that the 
     establishment of the statutory General Counsel position limit 
     the ability of the CIA Inspector General to obtain 
     independent legal advice from members of the IG's staff or to 
     otherwise carry out the duties of that office as provided for 
     in section 17 of the CIA of 1949 (50 USC 403q). However, 
     where an IG determination or report includes a legal opinion 
     that differs from that of the CIA's Office of General 
     Counsel, that difference of opinion should be noted. This 
     would apply to reports presented to the DCI, briefings for 
     Congress, or any other context in which IG legal opinions are 
     presented.


                              section 814

       Section 814 creates a new Section 105A of the National 
     Security Act that authorizes intelligence community elements 
     to collect information about non-U.S. persons outside the 
     United States at the request of U.S. law enforcement 
     agencies. The section is identical to Section 715 of the 
     Senate amendment, except that the Defense Intelligence Agency 
     has been added to the list of Department of Defense agencies 
     to which this provision applies.


                              section 815

       Section 815 amends Section 106 of the National Security Act 
     to require the DCI to concur in, or be consulted regarding, 
     the appointment of the heads of the principal NFIP elements. 
     Section 815 is identical to Section 716 of the Senate 
     amendment, with two modifications.
       First, the Director of the National Imagery and Mapping 
     Agency has been added to the list of agency heads for which 
     DCA concurrence is required. This authority had originally 
     been included separately in provisions relating to the 
     appointment of the Director of NIMA. The conferees note that 
     the conference report accompanying the National Defense 
     Authorization Act for Fiscal Year 1997 also codifies the 
     DCI's authority to concur in the appointments of the heads of 
     NSA, NRO, and NIMA in Section 201 of Title 10, U.S. Code. The 
     DOD bill also requires the DCI to provide to the Secretary of 
     Defense an annual evaluation of the performance of the heads 
     of NSA, NRO, and NIMA in fulfilling their responsibilities 
     under the NFIP.
       In addition, the conferees have modified the original 
     Senate language regarding DCI consultation on the Assistant 
     Director, National Security Division of the Federal Bureau of 
     Investigation. This individual is selected by the Attorney 
     General upon the recommendation of the Director of FBI. The 
     bill now calls for timely notice to the DCI of the Director 
     of FBI's recommendation regarding this position. The 
     conferees understand that for the purposes of this section 
     timely notice means notice will be provided at a sufficiently 
     early stage in the process that consultation is still 
     meaningful and that the DCI will be provided sufficient time 
     to respond to the notification prior to the recommendation 
     being forwarded to the Attorney General. At the same time, 
     the DCI should not use this opportunity for consultation as a 
     means of delaying this process.
       The conferees also emphasize that, by requiring the DCI to 
     be consulted regarding the appointment of the head of the 
     FBI's National Security Division, they do not intend to give 
     the DCI control over FBI law enforcement activities. 
     Nevertheless, the head of the National Security Division 
     manages a significant portion, both in budgetary and 
     substantive terms, of the NFIP, and the conferees believe it 
     is wholly appropriate that the DCI have some voice in his or 
     her appointment.


                              section 816

       Section 816 of the conference report directs the DCI, in 
     consultation with the Deputy Secretary of Defense, to study 
     the appropriate organization and management of intelligence 
     collection for the future. A report on the study is to be 
     forwarded to the President, the Secretary of Defense, and the 
     appropriate Congressional committees no later than April 15, 
     1997. The conferees expect that the Assistant DCI for 
     Collection will manage the production of this study on behalf 
     of the DCI.
       The study should examine how the Intelligence Community's 
     collection apparatus can best function in the future, and not 
     merely perform an examination of the effectiveness of the 
     Intelligence Community at present or in the recent past, 
     except to the extent such an examination illuminates the 
     direction that must be taken in the future. The section 
     specifies that the study must specifically include, but need 
     not be limited to, feasibility studies of three changes to 
     the current Intelligence Community structure: (1) the 
     establishment of a Clandestine Service; (2) the establishment 
     of a Technical Collection Agency; and (3) the establishment 
     of a Technology Development Office.
       The study should consider the merits of establishing a 
     Clandestine Service responsible for the clandestine 
     collection of intelligence through human sources and other 
     clandestine means; the carrying out of covert action as 
     directed by the President; and acting as the DCI's principal 
     entity in carrying out liaison with foreign intelligence and 
     security services. The study should keep in mind that this 
     particular entity, the Clandestine Service (unlike the others 
     under consideration), would have roles and missions outside 
     the realm of intelligence collection. The study should also 
     pay particular attention to the fact that a Clandestine 
     Service's activities are, generally speaking, intrinsically 
     risky and require the close oversight of the DCI. The study 
     should also consider how military personnel might be 
     integrated into a Clandestine Service in a manner allowing 
     their proper career development and their being able to 
     function as clandestine collectors under operational 
     guidelines developed under DCI authorities.
       The study should consider the costs and benefits associated 
     with consolidating technical collection activities and 
     exploitation into a single agency, not necessarily in one 
     physical location but under a unified management structure. 
     This agency would include all current signals intelligence, 
     imagery intelligence and measurement and signatures 
     intelligence collection and time-sensitive exploitation 
     activities, including the operation of satellite collection 
     systems. The study should consider whether consolidation 
     would improve synergistic collection at the operator level, 
     integrate multi-source tasking at the collection management 
     level, and achieve cross-discipline trade-offs at the 
     resources management level. The study should consider in 
     particular how the agency as proposed would further or hinder 
     these goals, and whether such a consolidation would further 
     or hinder other identified goals for intelligence collection. 
     This study should also examine whether the first-phase 
     analysts exploiting the data collected for time-sensitive 
     reporting should be integrated with the all-source analytical 
     community and, if so, how.
       The study should also consider the costs and benefits of 
     consolidating research, development and acquisition 
     activities for reconnaissance systems into a single agency 
     responsible primarily for space-based, airborne and maritime 
     reconnaissance systems. The study should consider whether 
     consolidation would improve coherent development and 
     complementary architectures, particularly in the space and 
     air realms; promote development of common ground processing 
     and dissemination capabilities; reduce unnecessary 
     duplication; and promote the sharing of appropriate 
     technologies.
       Section 816 is a new provision. No similar provision was 
     included in either the House bill or Senate amendment.


                              section 817

       Section 817 of the conference report requires the DCI to 
     submit a report within four months of enactment describing 
     the current efforts to establish a Surge Augmentation Program 
     and making appropriate legislative recommendations.
       The conferees believe that significant reductions in 
     personnel and other resources throughout the Intelligence 
     Community over the past few years, combined with significant 
     increases in the need for intelligence information, have 
     created a shortfall in analytic resources, especially in the 
     areas of all-source analysis and linguists. Ad hoc crises, 
     such as Rwanda and Somalia, further underscore the need for 
     the Intelligence Community to be flexible enough to ``surge'' 
     resources to meet immediate needs and to have a capability to 
     augment existing resources in order to develop and maintain a 
     worldwide ``base'' of knowledge. Such an intelligence 
     ``base'' should allow for identification of trends and other 
     changes that could portend future actions by U.S. policy 
     makers. This warning function becomes critical both to the 
     policy maker by providing adequate time to manage an 
     impending situation before it develops into a crisis and to 
     the military commander in cases where the proper policy 
     response includes military activity. DCI Deutch has been 
     addressing the same concerns in his ``Hard Target/Global 
     Coverage'' efforts.
       The conferees note that it is unlikely that internal 
     Intelligence Community resources will ever be robust enough 
     to meet all of the requirements that will be levied on them. 
     The ability to augment existing resources with individuals 
     who have intelligence experience and/or have maintained a 
     level of substantive knowledge could prove invaluable in 
     addressing what appears to be an ongoing pattern of small, 
     often regional crises and situations. In this respect, a port 
     of the Surge Augmentation Program, or ``Intelligence 
     Community Reserve,'' could operate similarly to existing 
     military intelligence reserve resources, with periodic 
     training and service within the Community in order to 
     maintain expertise. In some cases, individuals who are our 
     country's experts in certain areas are likely to be outside 
     of the Intelligence Community--in industry or academia, for 
     example--and should remain so in order to maintain their 
     level of knowledge and contacts worldwide. In those cases, 
     however, it would be extremely beneficial for the 
     Intelligence Community to have access to this knowledge on an 
     occasional basis. Although it is not envisioned that someone 
     outside of the Intelligence Community would be asked to 
     ``serve'' the Intelligence Community Reserve in the same 
     capacity as those individuals who have had a prior 
     association, it is envisioned that these ``experts'' might be 
     held on a type of retainer requiring them to notify the 
     Intelligence Community on a regular basis of significant 
     trends and changes in their issue area. In addition, 
     particular attention should be paid to building a linguistic 
     ``surge'' capability, especially in more unique or less known 
     languages, for use during crisis periods. Finally, the 
     conferees believe that the Intelligence Community Reserve 
     should be managed and funded at the

[[Page H10950]]

     Community level, ensuring that all valid ``surge'' 
     requirements by all agencies/offices within the Intelligence 
     Community are planned for and addressed as necessary.
       Due to the complexities of issues such as pay, security, 
     training and support, the conferees are not establishing the 
     Reserve in legislation at this time. Instead, the DCI is 
     directed to provide a report on current efforts and any 
     legislation that might be considered by Congress.
       Finally, the conferees note that the Intelligence Community 
     Reserve is not envisioned as a panacea for addressing 
     shortfalls in intelligence analytical expertise. Clearly, 
     specific attention must be paid toward maintaining an 
     experienced analytic workforce in specific subject areas that 
     are of national security and policy concern.

                   Title IX--Miscellaneous Provisions


   SEC. 901. AUTHORIZATION OF FUNDING PROVIDED BY 1996 SUPPLEMENTAL 
                           APPROPRIATIONS ACT

       Section 901 of the conference report is identical to 
     section 601 of the House bill. The Senate amendment did not 
     contain a similar provision. The section provides that funds 
     appropriated as part of the supplemental appropriation in the 
     Omnibus Consolidated Rescissions and Appropriations Act of 
     1996 for intelligence, and intelligence-related activities in 
     Bosnia shall be deemed to be specifically authorized for 
     purposes of Section 504 of the National Security Act.
     Provisions not included in the Conference Report
       Multiyear leasing
       Section 401 of the House bill would have amended the 
     Central Intelligence Agency Act of 1949 to authorize the CIA 
     to enter into multiyear leases for buildings and other 
     facilities. However, an amendment added on the House floor 
     would have required that the leases be fully funded in 
     advance. As this requirement would have vitiated the 
     effectiveness of the provision, the conferees agreed to drop 
     it.
       Intelligence Community personnel reforms
       On April 23, 1996 DCI Deutch unveiled a CIA human resources 
     reform initiative that will affect Intelligence Community 
     personnel at the CIA and in various DoD agencies. The 
     presentation of the personnel reform package had been long 
     awaited by both intelligence committees as the DCI had stated 
     on numerous occasions the priority he was attaching to 
     revamping an ancient and antiquated personnel system. The 
     sweeping nature of the CIA human resources reform proposal 
     and the initial lack of specificity concerning its contents 
     led the House Committee to include a provision in its bill 
     (Section 403) to prevent expenditure of any funds until the 
     Congress was fully briefed. The Senate amendment did not 
     contain a similar provision. The CIA has now provided 
     extensive briefings to both committees regarding its program; 
     therefore, the conferees have agreed to drop the House 
     provision.
       The conferees have provided funding for the CIA personnel 
     reform initiative albeit at a level substantially below the 
     requested amount. The funding level is contained in the 
     classified schedule of authorizations. The conferees concur 
     with the CIA's view that the initial priorities should be the 
     acquisition and installation of a new Human Resources 
     Information System, the completion of a job skills analysis 
     and implementation of associated training and educational 
     programs.
       The conferees initially understood that the CIA would issue 
     a ``Request for Proposal'' (RFP) for the Human Resources 
     Information System software component, but without informing 
     the Congress, the CIA changed course and decided not to 
     compete the contract. It is the view of the conferees that 
     RFP's help to immunize the CIA from potential protests and 
     enable the CIA, in the most transparent way possible, to 
     identify the best contractor at the lower cost. Apparently, 
     following a refinement of the requirements and the completion 
     of an exhaustive market survey of the various software 
     packages available, it was determined that only one vendor 
     met and demonstrated the CIA's software requirements. Thus, 
     the CIA expects to issue a single source contract in keeping 
     with standard contracting procedures. It is the conferees 
     understanding that the single source contract is for the 
     acquisition of the software package only and that the systems 
     integration, systems engineering and implementation 
     components of the Human Resources Information System will be 
     competitively bid. The conferees expect to be kept fully and 
     currently informed of this process.
       FOIA exemptions for certain defense agencies
       Section 501 of the House bill would have amended and 
     consolidated the information disclosure statutes for the 
     Defense Intelligence Agency (DIA) and the National 
     Reconnaissance (NRO), 10 U.S.C. 424 and 425 respectively, to 
     permit the two organizations to withhold from release in 
     response to Freedom of Information Act (FOIA) requests 
     unclassified information relating to those agencies' 
     organization, functions, and personnel. The Senate amendment 
     did not contain a similar provision. The House recedes.
       The conferees note that Section 1112 of the National 
     Defense Authorization Act for Fiscal Year 1997 included a 
     provision, added at conference, that is similar to Section 
     501 of the House bill but that covers personnel and 
     organizational information of the National Imagery and 
     Mapping Agency (NIMA) as well as of NRO and DIA. The 
     conferees agree that it is legitimate to protect from 
     disclosure personnel information relating to DIA, NRO, and 
     NIMA because their employees may be counterintelligence 
     targets. But the conferees have some reservations about 
     providing a blanket exemption against disclosure of 
     unclassified information about the organization and functions 
     of these agencies. The conferees note that, when the NRO's 
     information disclosure statute was enacted in 1992, Congress 
     specifically declined to extend the provision to cover 
     unclassified organizational information about the NRO.
       The conferees understand that the Senate Armed Services 
     Committee and the House National Security Committee may 
     reconsider whether the blanket exemption for all 
     organizational and functional information is appropriate. In 
     the interim, the conferees urge DIA, NRO, and NIMA to use the 
     exemption sparingly to protect only that information which is 
     truly sensitive and not as a reason to deny all FOIA requests 
     for information about their organization or functions.
       Tier III Minus UAV
       Section 502 of the House bill authorized an additional $22 
     million for the Tier III minus unmanned aerial vehicle. The 
     Senate amendment did not contain a similar provision. The 
     authorization level for this program has been included in the 
     Classified Schedule of Authorizations, and accordingly the 
     conferees agreed that the provision is not necessary.
       Economic espionage
       Title V of the Senate amendment contained provisions 
     criminalizing theft of economic proprietary information 
     undertaken on the behalf of, or with the intent benefit, a 
     foreign government or its agent. The House bill did not 
     contain similar provisions.
       This legislation was initially introduced by Senator Arlen 
     Specter and Senator Herb Kohl as S. 1557 (the Economic 
     Espionage Act), along with additional legislation, S. 1556 
     (the Industrial Espionage Act), to provide a broader criminal 
     statute for general industrial espionage. The provisions of 
     S. 1557 were then adopted by the Senate Select Committee on 
     Intelligence as part of S. 1718, the Intelligence 
     Authorization Act for fiscal year 1997. Subsequent to the 
     SSCI action on this provision, the Senate and House adopted 
     legislation encompassing provisions similar to both the 
     Economic Espionage Act and the Industrial Espionage Act. 
     Thus, the conferees agreed to drop this provision from the 
     Intelligence Authorization Act.
       Budget disclosure
       Section 718 of the Senate amendment contained a provision 
     requiring the President, as part of his annual budget 
     submission to Congress, to provide in unclassified form the 
     total amount appropriated by Congress for all intelligence 
     and intelligence-related activities during the current fiscal 
     year and the total amount requested in the budget for the 
     next fiscal year. The House bill contained no similar 
     provision. The Senate agreed to recede to the House.
       Office of Congressional Affairs of the DCI
       Section 714 of the Senate amendment would have established 
     an Office of Congressional Affairs of the DCI to coordinate 
     the congressional affairs activities of the various elements 
     of the Intelligence Community. The House bill contained no 
     similar provision. The conferees have decided not to require 
     the creation of this office in statute. The conferees agree, 
     however, that there is occasionally a need for a coordinated 
     Community response to Congressional inquiries and recommend 
     that the DCI specifically designate the Director of the 
     Office of Congressional Affairs within the CIA as the focal 
     point for such inquiries from Congress. The conferees do not 
     intend by this recommendation to preclude the individual 
     offices of congressional affairs within the elements of the 
     Intelligence Community from responding directly to requests 
     from the congressional committees.
       National Imagery and Mapping Agency
       Section 801 of the Senate amendment would have added a new 
     section to the National Security Act specifying the national 
     museum and collection tasking authority for the new National 
     Imagery and Mapping Agency. The House bill contained no 
     similar provisions.
       The conferees noted that Section 1112 of the National 
     Defense Authorization Act for Fiscal Year 1997, which 
     establishes and sets forth the missions for NIMA, contains 
     similar provisions. These provisions were added to the Senate 
     version of the Act by the Senate Intelligence Committee, 
     which took the Senate bill on sequential provisions from the 
     Senate Armed Services Committee in order to examine the 
     provisions relating to NIMA. Accordingly, the conferees 
     agreed to exclude Section 801 from the conference report.

     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committee to the conference:
     Larry Combest,
     Robert K. Dornan,
     Bill Young,
     James V. Hansen,
     Jerry Lewis,
     Porter J. Goss,
     Bud Shuster,
     Bill McCollum,
     Michael N. Castle,
     Norman D. Dicks,
     Bill Richardson,
     Julian C. Dixon,
     Robert Torricelli,

[[Page H10951]]

     Ronald D. Coleman,
     David Skaggs,
     Nancy Pelosi,
     From the Committee on National Security, for consideration of 
     defense tactical intelligence and related agencies:
     Bob Stump,
     Floyd Spence,
                                Managers on the Part of the House.

     Arlen Specter,
     Dick Lugar,
     Richard Shelby,
     Mike DeWine,
     Jon Kyl,
     J.M. Inhofe,
     Kay Bailey Hutchison,
     Bill Cohen,
     Hank Brown,
     Bob Kerrey,
     John Glenn,
     Richard H. Bryan,
     Bob Graham,
     John F. Kerry,
     Max Baucus,
     J. Bennett Johnston,
     Charles S. Robb,
     From the Committee on Armed Services:
     Strom Thurmond,
     Sam Nunn,
     Managers on the Part of the Senate.

                          ____________________