[Congressional Record Volume 147, Number 168 (Thursday, December 6, 2001)]
[House]
[Pages H9057-H9065]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     CONFERENCE REPORT ON H.R. 2883

  Mr. GOSS, submitted the following conference report and statement on 
the bill (H.R. 2883), to authorize appropriations for fiscal year 2002 
for intelligence and intelligence-related activities of the United 
States Government,

[[Page H9058]]

the Community Management Account, and the Central Intelligence Agency 
Retirement and Disability System, and for other purposes:

                  Conference Report (H. Rept. 107-328)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2883), to authorize appropriations for fiscal year 2002 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 2002''.
       (b) Table of Contents.--The table of contents of 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. Intelligence Community Management Account.
Sec. 105. Codification of the Coast Guard as an element of the 
              intelligence community.

 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. Sense of Congress on intelligence community contracting.
Sec. 304. Requirements for lodging allowances in intelligence community 
              assignment program benefits.
Sec. 305. Modification of reporting requirements for significant 
              anticipated intelligence activities and significant 
              intelligence failures.
Sec. 306. Report on implementation of recommendations of the National 
              Commission on Terrorism and other entities.
Sec. 307. Judicial review under Foreign Narcotics Kingpin Designation 
              Act.
Sec. 308. Modification of positions requiring consultation with 
              Director of Central Intelligence in appointments.
Sec. 309. Modification of authorities for protection of intelligence 
              community employees who report urgent concerns to 
              Congress.
Sec. 310. Review of protections against the unauthorized disclosure of 
              classified information.
Sec. 311. One-year suspension of reorganization of Diplomatic 
              Telecommunications Service Program Office.
Sec. 312. Presidential approval and submission to Congress of National 
              Counterintelligence Strategy and National Threat 
              Identification and Prioritization Assessments.
Sec. 313. Report on alien terrorist removal proceedings.
Sec. 314. Technical amendments.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Modifications of central services program.
Sec. 402. One-year extension of Central Intelligence Agency Voluntary 
              Separation Pay Act.
Sec. 403. Guidelines for recruitment of certain foreign assets.
Sec. 404. Full reimbursement for professional liability insurance of 
              counterterrorism employees.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

Sec. 501. Authority to purchase items of nominal value for recruitment 
              purposes.
Sec. 502. Funding for infrastructure and quality-of-life improvements 
              at Menwith Hill and Bad Aibling stations.
Sec. 503. Modification of authorities relating to official immunity in 
              interdiction of aircraft engaged in illicit drug 
              trafficking.
Sec. 504. Undergraduate training program for employees of the National 
              Imagery and Mapping Agency.
Sec. 505. Preparation and submittal of reports, reviews, studies, and 
              plans relating to Department of Defense intelligence 
              activities.
Sec. 506. Enhancement of security authorities of National Security 
              Agency.
                    TITLE I--INTELLIGENCE ACTIVITIES

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2002 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 the Treasury.
       (8) The Department of Energy.
       (9) The Federal Bureau of Investigation.
       (10) The National Reconnaissance Office.
       (11) The National Imagery and Mapping Agency.
       (12) The Coast Guard.

     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, 2002, 
     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. 
     2883 of the One Hundred Seventh 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 
     2002 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 2 percent of the number of 
     civilian personnel authorized under such section for such 
     element.
       (b) Notice to Intelligence Committees.--The Director of 
     Central Intelligence shall notify promptly the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives and the Select Committee on Intelligence of 
     the Senate whenever the Director exercises the authority 
     granted by this section.

     SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Community Management Account of 
     the Director of Central Intelligence for fiscal year 2002 the 
     sum of $200,276,000. 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, 2003.
       (b) Authorized Personnel Levels.--The elements within the 
     Intelligence Community Management Account of the Director of 
     Central Intelligence are authorized 343 full-time personnel 
     as of September 30, 2002. Personnel serving in such elements 
     may be permanent employees of the Intelligence Community 
     Management Account or personnel detailed from other elements 
     of the United States Government.
       (c) Classified Authorizations.--
       (1) Authorization of appropriations.--In addition to 
     amounts authorized to be appropriated for the Intelligence 
     Community Management Account by subsection (a), there are 
     also authorized to be appropriated for the Intelligence 
     Community Management Account for fiscal year 2002 such 
     additional amounts as are specified in the classified 
     Schedule of Authorizations referred to in section 102(a). 
     Such additional amounts shall remain available until 
     September 30, 2003.
       (2) Authorization of personnel.--In addition to the 
     personnel authorized by subsection (b) for elements of the 
     Intelligence Community Management Account as of September 30, 
     2002, there are hereby authorized such additional personnel 
     for such elements as of that date as are specified in the 
     classified Schedule of Authorizations.
       (d) Reimbursement.--Except as provided in section 113 of 
     the National Security Act of 1947 (50 U.S.C. 404h), during 
     fiscal year 2002 any officer or employee of the United States 
     or a member of the Armed Forces who is detailed to the staff 
     of the Intelligence 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 nonreimbursable basis for a 
     period of less than one year for the performance of temporary 
     functions as required by the Director of Central 
     Intelligence.
       (e) National Drug Intelligence Center.--
       (1) In general.--Of the amount authorized to be 
     appropriated in subsection (a), $44,000,000 shall be 
     available for the National Drug Intelligence Center. Within 
     such amount, funds provided for research, development, 
     testing, and evaluation purposes shall remain available until 
     September 30, 2003, and funds provided for procurement 
     purposes shall remain available until September 30, 2004.
       (2) Transfer of funds.--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 National Drug 
     Intelligence Center.
       (3) Limitation.--Amounts available for the National Drug 
     Intelligence Center may not be

[[Page H9059]]

     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) Authority.--Notwithstanding any other provision of law, 
     the Attorney General shall retain full authority over the 
     operations of the National Drug Intelligence Center.

     SEC. 105. CODIFICATION OF THE COAST GUARD AS AN ELEMENT OF 
                   THE INTELLIGENCE COMMUNITY.

       Section 3(4)(H) of the National Security Act of 1947 (50 
     U.S.C. 401a(4)(H) is amended--
       (1) by striking ``and'' before ``the Department of 
     Energy''; and
       (2) by inserting ``, and the Coast Guard'' before the 
     semicolon.
 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 2002 the sum of $212,000,000.
                     TITLE III--GENERAL PROVISIONS

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

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

     SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

     SEC. 303. SENSE OF CONGRESS ON INTELLIGENCE COMMUNITY 
                   CONTRACTING.

       It is the sense of Congress that the Director of Central 
     Intelligence should continue to direct that elements of the 
     intelligence community, whenever compatible with the national 
     security interests of the United States and consistent with 
     operational and security concerns related to the conduct of 
     intelligence activities, and where fiscally sound, should 
     competitively award contracts in a manner that maximizes the 
     procurement of products properly designated as having been 
     made in the United States.

     SEC. 304. REQUIREMENTS FOR LODGING ALLOWANCES IN INTELLIGENCE 
                   COMMUNITY ASSIGNMENT PROGRAM BENEFITS.

       Section 113(b) of the National Security Act of 1947 (50 
     U.S.C. 404h(b) is amended--
       (1) by inserting ``(1)'' before ``An employee''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The head of an agency of an employee detailed under 
     subsection (a) may pay a lodging allowance for the employee 
     subject to the following conditions:
       ``(A) The allowance shall be the lesser of the cost of the 
     lodging or a maximum amount payable for the lodging as 
     established jointly by the Director of Central Intelligence 
     and--
       ``(i) with respect to detailed employees of the Department 
     of Defense, the Secretary of Defense; and
       ``(ii) with respect to detailed employees of other agencies 
     and departments, the head of such agency or department.
       ``(B) The detailed employee maintains a primary residence 
     for the employee's immediate family in the local commuting 
     area of the parent agency duty station from which the 
     employee regularly commuted to such duty station before the 
     detail.
       ``(C) The lodging is within a reasonable proximity of the 
     host agency duty station.
       ``(D) The distance between the detailed employee's parent 
     agency duty station and the host agency duty station is 
     greater than 20 miles.
       ``(E) The distance between the detailed employee's primary 
     residence and the host agency duty station is 10 miles 
     greater than the distance between such primary residence and 
     the employees parent duty station.
       ``(F) The rate of pay applicable to the detailed employee 
     does not exceed the rate of basic pay for grade GS-15 of the 
     General Schedule.''.

     SEC. 305. MODIFICATION OF REPORTING REQUIREMENTS FOR 
                   SIGNIFICANT ANTICIPATED INTELLIGENCE ACTIVITIES 
                   AND SIGNIFICANT INTELLIGENCE FAILURES.

       Section 502 of the National Security Act of 1947 (50 U.S.C. 
     413a) is amended--
       (1) by inserting ``(a) In General.--'' before ``To the 
     extent''; and
       (2) by adding at the end the following new subsections:
       ``(b) Form and Contents of Certain Reports.--Any report 
     relating to a significant anticipated intelligence activity 
     or a significant intelligence failure that is submitted to 
     the intelligence committees for purposes of subsection (a)(1) 
     shall be in writing, and shall contain the following:
       ``(1) A concise statement of any facts pertinent to such 
     report.
       ``(2) An explanation of the significance of the 
     intelligence activity or intelligence failure covered by such 
     report.
       ``(c) Standards and Procedures for Certain Reports.--The 
     Director of Central Intelligence, in consultation with the 
     heads of the departments, agencies, and entities referred to 
     in subsection (a), shall establish standards and procedures 
     applicable to reports covered by subsection (b).''.

     SEC. 306. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE 
                   NATIONAL COMMISSION ON TERRORISM AND OTHER 
                   ENTITIES.

       (a) In General.--Not later than 120 days after the date of 
     the enactment of this Act, the Director of Central 
     Intelligence shall submit to the Permanent Select Committee 
     on Intelligence of the House of Representatives and the 
     Select Committee on Intelligence of the Senate a report 
     concerning whether, and to what extent, the Intelligence 
     Community has implemented recommendations relevant to the 
     Intelligence Community as set forth in the following:
       (1) The report prepared by the National Commission on 
     Terrorism established by section 591 of the Omnibus 
     Consolidated and Emergency Supplemental Appropriations Act, 
     1999 (Public Law 105-277).
       (2) The report prepared by the United States Commission on 
     National Security for the 21st Century, Phase III, dated 
     February 15, 2001.
       (3) The second annual report of the advisory panel to 
     assess domestic response capabilities for terrorism involving 
     weapons of mass destruction established pursuant to section 
     1405 of the National Defense Authorization Act for Fiscal 
     Year 1999 (Public Law 105-261; 50 U.S.C. 2301 note).
       (b) Recommendations Determined Not To Be Adopted.--In a 
     case in which the Director determines that a recommendation 
     described in subsection (a) has not been implemented, the 
     report under that subsection shall include a detailed 
     explanation of the reasons for not implementing that 
     recommendation.

     SEC. 307. JUDICIAL REVIEW UNDER FOREIGN NARCOTICS KINGPIN 
                   DESIGNATION ACT.

       Section 805 of the Foreign Narcotics Kingpin Designation 
     Act (title VIII of Public Law 106-120; 113 Stat. 1629; 21 
     U.S.C. 1904) is amended by striking subsection (f).

     SEC. 308. MODIFICATION OF POSITIONS REQUIRING CONSULTATION 
                   WITH DIRECTOR OF CENTRAL INTELLIGENCE IN 
                   APPOINTMENTS.

       Section 106(b)(2) of the National Security Act of 1947 (50 
     U.S.C. 403-6(b)(2)) is amended by striking subparagraph (C) 
     and inserting the following new subparagraphs:
       ``(C) The Director of the Office of Intelligence of the 
     Department of Energy.
       ``(D) The Director of the Office of Counterintelligence of 
     the Department of Energy.''.

     SEC. 309. MODIFICATION OF AUTHORITIES FOR PROTECTION OF 
                   INTELLIGENCE COMMUNITY EMPLOYEES WHO REPORT 
                   URGENT CONCERNS TO CONGRESS.

       (a) Authority of Inspector General of Central Intelligence 
     Agency.--Section 17(d)(5) of the Central Intelligence Agency 
     Act of 1949 (50 U.S.C. 403q(d)(5)) is amended--
       (1) in subparagraph (B), by striking the second sentence 
     and inserting the following new sentence: ``Upon making such 
     a determination, the Inspector General shall transmit to the 
     Director notice of that determination, together with the 
     complaint or information.''; and
       (2) in subparagraph (D)(i), by striking ``does not 
     transmit,'' and all that follows through ``subparagraph 
     (B),'' and inserting ``does not find credible under 
     subparagraph (B) a complaint or information submitted under 
     subparagraph (A), or does not transmit the complaint or 
     information to the Director in accurate form under 
     subparagraph (B),''.
       (b) Authorities of Inspectors General of the Intelligence 
     Community.--Section 8H of the Inspector General Act of 1978 
     (5 U.S.C. App.) is amended--
       (1) in subsection (b), by striking the second sentence and 
     inserting the following new sentence: ``Upon making such a 
     determination, the Inspector General shall transmit to the 
     head of the establishment notice of that determination, 
     together with the complaint or information.''; and
       (2) in subsection (d)(1), by striking ``does not 
     transmit,'' and all that follows through ``subsection (b),'' 
     and inserting ``does not find credible under subsection (b) a 
     complaint or information submitted to the Inspector General 
     under subsection (a), or does not transmit the complaint or 
     information to the head of the establishment in accurate form 
     under subsection (b),''.

     SEC. 310. REVIEW OF PROTECTIONS AGAINST THE UNAUTHORIZED 
                   DISCLOSURE OF CLASSIFIED INFORMATION.

       (a) Requirement.--The Attorney General shall, in 
     consultation with the Secretary of Defense, Secretary of 
     State, Secretary of Energy, Director of Central Intelligence, 
     and heads of such other departments, agencies, and entities 
     of the United States Government as the Attorney General 
     considers appropriate, carry out a comprehensive review of 
     current protections against the unauthorized disclosure of 
     classified information, including--
       (1) any mechanisms available under civil or criminal law, 
     or under regulation, to detect the unauthorized disclosure of 
     such information; and
       (2) any sanctions available under civil or criminal law, or 
     under regulation, to deter and punish the unauthorized 
     disclosure of such information.
       (b) Particular Considerations.--In carrying out the review 
     required by subsection (a), the Attorney General shall 
     consider, in particular--
       (1) whether the administrative regulations and practices of 
     the intelligence community are adequate, in light of the 
     particular requirements of the intelligence community, to 
     protect against the unauthorized disclosure of classified 
     information; and
       (2) whether recent developments in technology, and 
     anticipated developments in technology, necessitate 
     particular modifications of

[[Page H9060]]

     current protections against the unauthorized disclosure of 
     classified information in order to further protect against 
     the unauthorized disclosure of such information.
       (c) Report.--(1) Not later than May 1, 2002, the Attorney 
     General shall submit to Congress a report on the review 
     carried out under subsection (a). The report shall include 
     the following:
       (A) A comprehensive description of the review, including 
     the findings of the Attorney General as a result of the 
     review.
       (B) An assessment of the efficacy and adequacy of current 
     laws and regulations against the unauthorized disclosure of 
     classified information, including whether or not 
     modifications of such laws or regulations, or additional laws 
     or regulations, are advisable in order to further protect 
     against the unauthorized disclosure of such information.
       (C) Any recommendations for legislative or administrative 
     action that the Attorney General considers appropriate, 
     including a proposed draft for any such action, and a 
     comprehensive analysis of the Constitutional and legal 
     ramifications of any such action.
       (2) The report shall be submitted in unclassified form, but 
     may include a classified annex.

     SEC. 311. ONE-YEAR SUSPENSION OF REORGANIZATION OF DIPLOMATIC 
                   TELECOMMUNICATIONS SERVICE PROGRAM OFFICE.

       Notwithstanding any provision of subtitle B of title III of 
     the Intelligence Authorization Act for Fiscal Year 2001 
     (Public Law 106-567; 114 Stat. 2843; 22 U.S.C. 7301 et seq.), 
     relating to the reorganization of the Diplomatic 
     Telecommunications Service Program Office, no provision of 
     that subtitle shall be effective during the period beginning 
     on the date of the enactment of this Act and ending on 
     October 1, 2002.

     SEC. 312. PRESIDENTIAL APPROVAL AND SUBMISSION TO CONGRESS OF 
                   NATIONAL COUNTERINTELLIGENCE STRATEGY AND 
                   NATIONAL THREAT IDENTIFICATION AND 
                   PRIORITIZATION ASSESSMENTS.

       The National Counterintelligence Strategy, and each 
     National Threat Identification and Prioritization Assessment, 
     produced under Presidential Decision Directive 75, dated 
     December 28, 2000, entitled ``U.S. Counterintelligence 
     Effectiveness--Counterintelligence for the 21st Century'', 
     including any modification of that Strategy or any such 
     Assessment, may only take effect if approved by the 
     President. The Strategy, each Assessment, and any 
     modification thereof, shall be submitted to the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives and the Select Committee on Intelligence of 
     the Senate.

     SEC. 313. REPORT ON ALIEN TERRORIST REMOVAL PROCEEDINGS.

       Section 504 of the Immigration and Nationality Act (8 
     U.S.C. 1534) is amended by adding after subsection (k) the 
     following new subsection:
       ``(l) Not later than 3 months from the date of the 
     enactment of this subsection, the Attorney General shall 
     submit to Congress a report concerning the effect and 
     efficacy of alien terrorist removal proceedings, including 
     the reasons why proceedings pursuant to this section have not 
     been used by the Attorney General in the past and the effect 
     on the use of these proceedings after the enactment of the 
     USA PATRIOT Act of 2001 (Public Law 107-56).''.

     SEC. 314. TECHNICAL AMENDMENTS.

       (a) FISA.--The Foreign Intelligence Surveillance Act of 
     1978 is amended as follows:
       (1) Section 101(h)(4) (50 U.S.C. 1801(h)(4)) is amended by 
     striking ``twenty-four hours'' and inserting ``72 hours''.
       (2) Section 105 (50 U.S.C. 1805) is amended--
       (A) by inserting ``, if known'' in subsection (c)(1)(B) 
     before the semicolon at the end;
       (B) by striking ``twenty-four hours'' in subsection (f) 
     each place it appears and inserting ``72 hours'';
       (C) by transferring the subsection (h) added by section 225 
     of the USA PATRIOT Act (Public Law 107-56; 115 Stat. 295) so 
     as to appear after (rather than before) the subsection (h) 
     redesignated by section 602(b)(2) of the Counterintelligence 
     Reform Act of 2000 (title VI of Public Law 106-567; 114 Stat. 
     2851) and redesignating that subsection as so transferred as 
     subsection (i); and
       (D) in the subsection transferred and redesignated by 
     subparagraph (C), by inserting ``for electronic surveillance 
     or physical search'' before the period at the end.
       (3) Section 301(4)(D) (50 U.S.C. 1821(4)(D)) is amended by 
     striking ``24 hours'' and inserting ``72 hours''.
       (4) Section 304(e) (50 U.S.C. 1824(e)) is amended by 
     striking ``24 hours'' each place it appears and inserting 
     ``72 hours''.
       (5) Section 402 (50 U.S.C. 1842) is amended--
       (A) in subsection (c), as amended by paragraphs (2) and (3) 
     of section 214(a) of the USA PATRIOT Act (115 Stat. 286), by 
     inserting ``and'' at the end of paragraph (1); and
       (B) in subsection (f), by striking ``of a court'' and 
     inserting ``of an order issued''.
       (6) Subsection (a) of section 501 (50 U.S.C. 1861), as 
     inserted by section 215 of the USA PATRIOT Act (115 Stat. 
     287), is amended by inserting ``to obtain foreign 
     intelligence information not concerning a United States 
     person or'' in paragraph (1) after ``an investigation''.
       (7) Section 502 (50 U.S.C. 1862), as inserted by section 
     215 of the USA PATRIOT Act (115 Stat. 288), is amended by 
     striking ``section 402'' both places it appears and inserting 
     ``section 501''.
       (8) The table of contents in the first section is amended--
       (A) by inserting ``Sec.'' at the beginning of the items 
     relating to sections 401, 402, 403, 404, 405, 406, and 601; 
     and
       (B) by striking the items relating to sections 501, 502, 
     and 503 and inserting the following:

       ``Sec. 501. Access to certain business records for foreign 
           intelligence and international terrorism 
           investigations.
       ``Sec. 502. Congressional oversight.''.

       (b) Title 18, United States Code.--Paragraph (19) of 
     section 2510 of title 18, United States Code, as added by 
     section 203(b)(2)(C) of the USA PATRIOT Act (115 Stat. 280), 
     is amended by inserting ``, for purposes of section 2517(6) 
     of this title,'' before ``means''.
       (c) USA Patriot Act.--Effective as of the enactment of such 
     Act and as if included therein as originally enacted, the USA 
     PATRIOT Act (Public Law 107-56) is amended--
       (1) in section 207(b)(1) (115 Stat. 282), by striking 
     ``105(d)(2)'' and ``1805(d)(2)'' and inserting ``105(e)(2)'' 
     and ``1805(e)(2)'', respectively; and
       (2) in section 1003 (115 Stat. 392), by inserting ``of 
     1978'' after ``Act''.
                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

     SEC. 401. MODIFICATIONS OF CENTRAL SERVICES PROGRAM.

       (a) Annual Audits.--Subsection (g)(1) of section 21 of the 
     Central Intelligence Agency Act of 1949 (50 U.S.C. 403u) is 
     amended--
       (1) by striking ``December 31'' and inserting ``January 
     31''; and
       (2) by striking ``conduct'' and inserting ``complete''.
       (b) Permanent Authority.--Subsection (h) of that section is 
     amended--
       (1) by striking paragraph (1);
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively;
       (3) in paragraph (1), as so redesignated, by striking 
     ``paragraph (3)'' and inserting ``paragraph (2)''; and
       (4) in paragraph (2), as so redesignated, by striking 
     ``paragraph (2)'' and inserting ``paragraph (1)''.

     SEC. 402. ONE-YEAR EXTENSION OF CENTRAL INTELLIGENCE AGENCY 
                   VOLUNTARY SEPARATION PAY ACT.

       Section 2 of the Central Intelligence Agency Voluntary 
     Separation Pay Act (50 U.S.C. 403-4 note) is amended--
       (1) in subsection (f), by striking ``September 30, 2002'' 
     and inserting ``September 30, 2003''; and
       (2) in subsection (i), by striking ``or 2002'' and 
     inserting ``2002, or 2003''.

     SEC. 403. GUIDELINES FOR RECRUITMENT OF CERTAIN FOREIGN 
                   ASSETS.

       Recognizing dissatisfaction with the provisions of the 
     guidelines of the Central Intelligence Agency (promulgated in 
     1995) for handling cases involving foreign assets or sources 
     with human rights concerns and recognizing that, although 
     there have been recent modifications to those guidelines, 
     they do not fully address the challenges of both existing and 
     long-term threats to United States security, the Director of 
     Central Intelligence shall--
       (1) rescind the existing guidelines for handling such 
     cases;
       (2) issue new guidelines that more appropriately weigh and 
     incentivize risks to ensure that qualified field intelligence 
     officers can, and should, swiftly and directly gather 
     intelligence from human sources in such a fashion as to 
     ensure the ability to provide timely information that would 
     allow for indications and warnings of plans and intentions of 
     hostile actions or events; and
       (3) ensure that such information is shared in a broad and 
     expeditious fashion so that, to the extent possible, actions 
     to protect American lives and interests can be taken.

     SEC. 404. FULL REIMBURSEMENT FOR PROFESSIONAL LIABILITY 
                   INSURANCE OF COUNTERTERRORISM EMPLOYEES.

       Section 406(a)(2) of the Intelligence Authorization Act for 
     Fiscal Year 2001 (Public Law 106-567; 114 Stat. 2849; 5 
     U.S.C. prec. 5941 note) is amended by striking ``one-half'' 
     and inserting ``100 percent''.
         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

     SEC. 501. AUTHORITY TO PURCHASE ITEMS OF NOMINAL VALUE FOR 
                   RECRUITMENT PURPOSES.

       (a) Authority.--Section 422 of title 10, United States 
     Code, is amended by adding at the end the following:
       ``(b) Promotional Items for Recruitment Purposes.--The 
     Secretary of Defense may use funds available for an 
     intelligence element of the Department of Defense to purchase 
     promotional items of nominal value for use in the recruitment 
     of individuals for employment by that element.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 422. Use of funds for certain incidental purposes''.

       (2) Such section is further amended by inserting at the 
     beginning of the text of the section the following:
       ``(a) Counterintelligence Official Reception and 
     Representation Expenses.--''.
       (3) The item relating to such section in the table of 
     sections at the beginning of subchapter I of chapter 21 of 
     such title is amended to read as follows:
``422. Use of funds for certain incidental purposes.''.

     SEC. 502. FUNDING FOR INFRASTRUCTURE AND QUALITY-OF-LIFE 
                   IMPROVEMENTS AT MENWITH HILL AND BAD AIBLING 
                   STATIONS.

       (a) Authority.--
       (1) In addition to funds otherwise available for such 
     purpose, the Secretaries of the Army, Navy, and Air Force may 
     each transfer or reprogram such funds as are necessary--

[[Page H9061]]

       (A) for the enhancement of the capabilities of the Menwith 
     Hill Station and Bad Aibling Station, including improvements 
     of facility infrastructure and quality of life programs at 
     those installations; and
       (B) at the appropriate time, for costs associated with the 
     closure of the Bad Aibling Station.
       (2) The authority provided in paragraph (1) may be 
     exercised notwithstanding any other provision of law.
       (b) Source of Funds.--Funds available for any of the 
     military departments for operation and maintenance shall be 
     available to carry out subsection (a).
       (c) Budget Report.--The Secretary of each military 
     department shall ensure--
       (1) that the annual budget request of that military 
     department reflects any funds transferred or reprogrammed 
     under this section for the preceding fiscal year; and
       (2) that a copy of the portion of the budget request 
     showing each such transfer or reprogramming is transmitted to 
     the Permanent Select Committee on Intelligence of the House 
     of Representatives and the Select Committee on Intelligence 
     of the Senate.
       (d) Statutory Construction.--Nothing in this section may be 
     construed to modify or obviate existing law or practice with 
     regard to the transfer or reprogramming of funds from the 
     Department of the Army, the Department of the Navy, or the 
     Department of the Air Force to the Menwith Hill Station at 
     the Bad Aibling Station.

     SEC. 503. MODIFICATION OF AUTHORITIES RELATING TO OFFICIAL 
                   IMMUNITY IN INTERDICTION OF AIRCRAFT ENGAGED IN 
                   ILLICIT DRUG TRAFFICKING.

       (a) Certification Required for Immunity.--Subsection (a)(2) 
     of section 1012 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 22 U.S.C. 2291-4) is 
     amended by striking ``, before the interdiction occurs, has 
     determined'' in the matter preceding subparagraph (A) and 
     inserting ``has, during the 12-month period ending on the 
     date of the interdiction, certified to Congress''.
       (b) Annual Reports.--That section is further amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Annual Report.--(1) Not later than February 1 each 
     year, the President shall submit to Congress a report on the 
     assistance provided under subsection (b) during the preceding 
     calendar year. Each report shall include for the calendar 
     year covered by such report the following:
       ``(A) A list specifying each country for which a 
     certification referred to in subsection (a)(2) was in effect 
     for purposes of that subsection during any portion of such 
     calendar year, including the nature of the illicit drug 
     trafficking threat to each such country.
       ``(B) A detailed explanation of the procedures referred to 
     in subsection (a)(2)(B) in effect for each country listed 
     under subparagraph (A), including any training and other 
     mechanisms in place to ensure adherence to such procedures.
       ``(C) A complete description of any assistance provided 
     under subsection (b).
       ``(D) A summary description of the aircraft interception 
     activity for which the United States Government provided any 
     form of assistance under subsection (b).
       ``(2) Each report under paragraph (1) shall be submitted in 
     unclassified form, but may include a classified annex.''.

     SEC. 504. UNDERGRADUATE TRAINING PROGRAM FOR EMPLOYEES OF THE 
                   NATIONAL IMAGERY AND MAPPING AGENCY.

       (a) Authority To Carry Out Training Program.--Subchapter 
     III of chapter 22 of title 10, United States Code, is amended 
     by adding at the end the following new section:

     ``Sec. 462. Financial assistance to certain employees in 
       acquisition of critical skills

       ``The Secretary of Defense may establish an undergraduate 
     training program with respect to civilian employees of the 
     National Imagery and Mapping Agency that is similar in 
     purpose, conditions, content, and administration to the 
     program established by the Secretary of Defense under section 
     16 of the National Security Agency Act of 1959 (50 U.S.C. 402 
     note) for civilian employees of the National Security 
     Agency.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:

       ``462. Financial assistance to certain employees in 
           acquisition of critical skills.''.

     SEC. 505. PREPARATION AND SUBMITTAL OF REPORTS, REVIEWS, 
                   STUDIES, AND PLANS RELATING TO DEPARTMENT OF 
                   DEFENSE INTELLIGENCE ACTIVITIES.

       (a) Consultation in Preparation.--The Director of Central 
     Intelligence shall ensure that any report, review, study, or 
     plan required to be prepared or conducted by a provision of 
     this Act, including a provision of the classified Schedule of 
     Authorizations or a classified annex to this Act, that 
     involves the intelligence or intelligence-related activities 
     of the Department of Defense shall be prepared or conducted 
     in consultation with the Secretary of Defense or an 
     appropriate official of the Department designated by the 
     Secretary for that purpose.
       (b) Submittal.--Any report, review, study, or plan referred 
     to in subsection (a) shall be submitted, in addition to any 
     other committee of Congress specified for submittal in the 
     provision concerned, to the following committees of Congress:
       (1) The Committee on Armed Services, the Committee on 
     Appropriations, and the Permanent Select Committee on 
     Intelligence of the House of Representatives.
       (2) The Committee on Armed Services, the Committee on 
     Appropriations, and the Select Committee on Intelligence of 
     the Senate.

     SEC. 506. ENHANCEMENT OF SECURITY AUTHORITIES OF NATIONAL 
                   SECURITY AGENCY.

       Section 11 of the National Security Agency Act of 1959 (50 
     U.S.C. 402 note) is amended to read as follows:
       ``Sec. 11. (a)(1) The Director of the National Security 
     Agency may authorize agency personnel within the United 
     States to perform the same functions as special policemen of 
     the General Services Administration perform under the first 
     section of the Act entitled `An Act to authorize the Federal 
     Works Administrator or officials of the Federal Works Agency 
     duly authorized by him to appoint special policemen for duty 
     upon Federal property under the jurisdiction of the Federal 
     Works Agency, and for other purposes' (40 U.S.C. 318) with 
     the powers set forth in that section, except that such 
     personnel shall perform such functions and exercise such 
     powers--
       ``(A) at the National Security Agency Headquarters complex 
     and at any facilities and protected property which are solely 
     under the administration and control of, or are used 
     exclusively by, the National Security Agency; and
       ``(B) in the streets, sidewalks, and the open areas within 
     the zone beginning at the outside boundary of such facilities 
     or protected property and extending outward 500 feet.
       ``(2) The performance of functions and exercise of powers 
     under subparagraph (B) of paragraph (1) shall be limited to 
     those circumstances where such personnel can identify 
     specific and articulable facts giving such personnel reason 
     to believe that the performance of such functions and 
     exercise of such powers is reasonable to protect against 
     physical damage or injury, or threats of physical damage or 
     injury, to agency installations, property, or employees.
       ``(3) Nothing in this subsection shall be construed to 
     preclude, or limit in any way, the authority of any 
     Federal, State, or local law enforcement agency, or any 
     other Federal police or Federal protective service.
       ``(4) The rules and regulations enforced by such personnel 
     shall be the rules and regulations prescribed by the Director 
     and shall only be applicable to the areas referred to in 
     subparagraph (A) of paragraph (1).
       ``(5) Not later than July 1 each year, the Director shall 
     submit to the Permanent Select Committee on Intelligence of 
     the House of Representatives and the Select Committee on 
     Intelligence of the Senate a report that describes in detail 
     the exercise of the authority granted by this subsection and 
     the underlying facts supporting the exercise of such 
     authority, during the preceding fiscal year. The Director 
     shall make each such report available to the Inspector 
     General of the National Security Agency.
       ``(b) The Director of the National Security Agency is 
     authorized to establish penalties for violations of the rules 
     or regulations prescribed by the Director under subsection 
     (a). Such penalties shall not exceed those specified in the 
     fourth section of the Act referred to in subsection (a) (40 
     U.S.C. 318c).
       ``(c) Agency personnel designated by the Director of the 
     National Security Agency under subsection (a) shall be 
     clearly identifiable as United States Government security 
     personnel while engaged in the performance of the functions 
     to which subsection (a) refers.''.
       And the Senate agree to the same.

     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Porter J. Goss,
     Douglas Bereuter,
     Michael N. Castle,
     Sherwood Boehlert,
     Jim Gibbons,
     Ray LaHood,
     Duke Cunningham,
     Pete Hoekstra,
     Richard Burr,
     Saxby Chambliss,
     Nancy Pelosi,
     Sanford Bishop,
     Jane Harmon,
     Gary Condit,
     Tim Roemer,
     Alcee L. Hastings,
     Leonard L. Boswell,
     Collin C. Peterson,
                                 Mangers on the Part of the House.

     Bob Graham,
     John D. Rockefeller IV,
     Dianne Feinstein,
     Ron Wyden,
     Richard Durbin,
     Evan Bayh,
     John Edwards,
     Barbara Mikulski,
     Richard Shelby,
     Jon Kyl,
     James Inhofe,
     Orrin G. Hatch,
     Pat Roberts,
     Mike DeWine,
     Fred Thompson,
     Richard G. Lugar,
                               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. 2883), to authorize 
     appropriations for fiscal year 2002 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

[[Page H9062]]

     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.
       The managers agree that the congressionally directed 
     actions described in the House bill, the Senate amendment, 
     the respective committee reports, and classified annexes 
     accompanying H.R. 2883, should be undertaken to the extent 
     that such congressionally directed actions are not amended, 
     altered, or otherwise specifically addressed in either this 
     Joint Explanatory Statement or in the classified annex to the 
     conference report on the bill H.R. 2883.
     Rebuilding the Nation's Intelligence Capabilities
       The conferees note that the fiscal year 2002 budget request 
     submitted by the President includes a substantial increase 
     for programs funded in the National Foreign Intelligence 
     Program. This authorization bill further enhances that 
     investment. The conferees believe this funding increase 
     should represent the first installment of at least a five-
     year effort to correct serious deficiencies that have 
     developed over the past decade in the Intelligence Community. 
     The conferees recognize that these deficiencies existed prior 
     to the events of September 11th and, indeed, they have been 
     consistently highlighting these shortfalls for the past seven 
     years. Put simply, although the end of the Cold War warranted 
     a reordering of national priorities, the steady decline in 
     intelligence funding since the mid-1990s left the nation with 
     a diminished ability to address the emerging threats and 
     technological challenges of the 21st Century.
       In this budget, the conferees seek to highlight four 
     priority areas that must receive significant attention in the 
     near term if intelligence is to fulfill its role in our 
     national security strategy. Those are: (1) revitalizing the 
     National Security Agency (NSA); (2) correcting deficiencies 
     in human intelligence; (3) addressing the imbalance between 
     intelligence collection and analysis; and (4) rebuilding a 
     robust research and development program.
       The conferees' top priority last year was the 
     revitalization of the National Security Agency. This 
     continues to be the conferees' number one concern. Within the 
     next five years, the NSA must have the ability to collect and 
     exploit electronic signals in a vastly differenct 
     communications environment. Along with significant investment 
     in technology, this means closer collaboration with 
     clandestine human collectors. The computer and 
     telecommunications systems that NSA employees use to 
     accomplish their work must be state-of-the-art technology. 
     Analysts must have sophisticated software tools to allow them 
     to exploit fully the amount of data available in the future.
       Correcting deficiencies in the area of human intelligence 
     is critical for the Intelligence Community if it is to meet 
     the increasingly complex and growing set of collection 
     requirements within the next five years. The Central 
     Intelligence Agency (CIA) will need to hire case officers 
     capable of dealing with the explosion of technology, both as 
     collection tools and as potential threats. These individuals 
     must be able to operate effectively in the many places around 
     the world. To do that, the CIA must place even greater 
     emphasis on the diversity of the new recruits. As 
     importantly, the emphasis of our human collection must change 
     in such a way that places a priority on being able to access 
     the types of information that reveal the plans and intentions 
     of those who would harm U.S. interests. The human 
     intelligence system also must be integrated more closely with 
     our other collection capabilities.
       As we do a better job of collecting intelligence, we also 
     must enhance our ability to understand this information. The 
     percentage of the intelligence budget devoted to processing 
     and analysis has been declining steadily since 1990. Although 
     collection systems are becoming more and more capable, our 
     investment in analysis continues to decline. The disparity 
     threatens to overwhelm our ability to effectively use the 
     information collected. To address this problem, the conferees 
     have added funds to finance promising all-source analysis 
     initiatives across the Community. Over the next five years, 
     the Intelligence Community must rebuild its all-source 
     analytical capability, creating a force that can truly 
     present a global coverage capability.
       The conferees' fourth priority, a strong research and 
     development program, supports all of the other initiatives 
     and more. Over the past decade, agencies have allowed 
     research and development accounts to be the ``bill payer'' 
     for funding shortfalls, and have sacrificed modernization and 
     innovation in the process. The conferees believe that over 
     the next five years, there must be a review of several 
     emerging technologies to determine what will provide the best 
     long-term return on investment, while ensuring that 
     sufficient incentives for ``risk'' are promoted in order to 
     bring R&D to the ``cutting edge.'' As part of such an effort, 
     the conferees continue to support and encourage a symbiotic 
     relationship between the Intelligence Community and the 
     private sector using innovative approaches such as the 
     Central Intelligence Agency's In-Q-Tel.
       Although the conferees believe that this authorization 
     represents a ``down payment'' for a five-year effort to 
     rebuild our intelligence capabilities, they also believe 
     that, in light of the horrible and tragic terrorist attacks, 
     this year's authorization represents only a snapshot in time, 
     and does not necessarily represent the critically needed 
     long-term investments sufficient to bolster national security 
     objectives. In fact, the conferees believe that this 
     authorization is only the beginning of what must be a 
     substantial investment if the nation is to have the 
     intelligence capabilities required to protect national 
     security and to provide the first line of defense against 
     terrorism and other transnational issues.
       Beyond the four priority areas mentioned above, significant 
     attention is needed elsewhere as well. For example, designing 
     and procuring the appropriate capabilities for technical 
     collection to replace our aging systems must also be 
     addressed. Additionally, there are areas that the 
     Administration must address that are beyond financial 
     investment, and go to instilling, within the Intelligence 
     Community, a focus on ensuring anticipatory access, so as 
     to be able to obtain information on plans and intentions 
     in order to prevent crises. The Intelligence Community 
     must create a ``culture'' that is less risk averse.
       Finally, the conferees believe that any effort to invest in 
     and expand intelligence capabilities will only be marginally 
     successful, at best, if there is not a parallel effort to 
     change the structure of the Community where appropriate. 
     Today's intelligence structure is not suitable to address 
     current and future challenges, and the conferees look forward 
     to working with the Administration on this issue as well.

                    Title I--Intelligence Activities


               SEC. 101. AUTHORIZATION OF 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 authorizes appropriations for fiscal year 2001. 
     Section 101 is identical to section 101 of the House bill and 
     section 101 of the Senate amendment, except for the addition 
     of the Coast Guard, see section 105, infra.


             SEC. 102 CLASSIFIED SCHEDULE OF AUTHORIZATIONS

       Section 102 of the conference report makes clear that the 
     details of the amounts authorized to be appropriated for 
     intelligence and intelligence-related activities and 
     applicable personnel ceilings covered under this title for 
     fiscal year 2002 are contained in a classified Schedule of 
     Authorizations. The classified Schedule of Authorizations is 
     incorporated into the Act by this section. 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 classified annex provides the details 
     of the Schedule. Section 102 is identical to section 102 of 
     the House bill and section 102 of the Senate amendment.


                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 2002 to authorize employment of civilian personnel in 
     excess of the personnel ceilings applicable to the components 
     of the Intelligence Community under section 102 by an amount 
     not too exceed two percent of the total of the ceilings 
     applicable under section 102. The Director of Central 
     Intelligence may exercise this authority only if necessary to 
     the performance of important intelligence functions. Any 
     exercise of this authority must be reported to the 
     intelligence committees of the Congress.
       The managers emphasize that the authority conferred by 
     section 103 is not intended to permit wholesale increases in 
     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 managers 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 that 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. Section 103 is identical to section 
     103 of the House bill and section 103 of the Senate 
     amendment.


          sec. 104. intelligence community management account

       Section 104 of the conference report authorizes 
     appropriations for the Community Management Account (CMA) of 
     the Director of Central Intelligence (DCI) and sets the 
     personnel end-strength for the Intelligence Community 
     management staff for fiscal year 2002.

[[Page H9063]]

       Subsection (a) authorizes appropriations of $200,276,000 
     for fiscal year 2002 for the activities of the CMA of the 
     DCI.
       Subsection (b) authorizes 343 full-time personnel for the 
     Community Management Staff for fiscal year 2002 and provides 
     that such personnel may be permanent employees of the Staff 
     or detailed from various elements of the United States 
     Government.
       Subsection (c) authorizes additional appropriations and 
     personnel for the CMA as specified in the classified Schedule 
     of Authorizations and permits these additional amounts to 
     remain available through September 30, 2003.
       Subsection (d) requires that, except as provided in Section 
     113 of the National Security Act of 1947, personnel from 
     another element of the United States Government be detailed 
     to an element of the CMA on a reimbursable basis, or for 
     temporary situations of less than one year on a non-
     reimbursable basis.
       Subsection (e) authorizes $44,000,000 of the amount 
     authorized in subsection (a) to be made available for the 
     National Drug Intelligence Center (NDIC). Subsection (e) 
     requires the DCI to transfer these funds to the Department of 
     Justice to be used for NDIC activities under the authority of 
     the Attorney General and subject to section 103(d)(1) of the 
     National Security Act. Subsection (e) is similar to 
     subsection (e) of the House bill and subsection (e) of the 
     Senate amendment.
       The managers note that since Fiscal Year 1997 the Community 
     Management Account has included authorization for 
     appropriations for the National Drug Intelligence Center 
     (NDIC). The committees periodically have expressed concern 
     about the effectiveness of NDIC and its ability to fulfill 
     the role for which it was created. The managers are 
     encouraged by the NDIC's recent performance and by the 
     refocused role for the organization. The conferees request 
     that the Director of the NDIC provide a spending plan for 
     fiscal year 2002 to the intelligence committees and to the 
     appropriations committees within 90 days of enactment of this 
     Act.


     SEC. 105 CODIFICATION OF THE COAST GUARD AS AN ELEMENT OF THE 
                         INTELLIGENCE COMMUNITY

       Section 105 is identical to Section 105 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.

 Title II--Central Intelligence Agency Retirement and Disability System


               SEC. 201. AUTHORIZATION OF APPROPRIATIONS

       Section 201 is identical to Section 201 of the Senate 
     amendment and section 201 of the House bill.

                     Title III--General Provisions

                   Subtitle A--Intelligence Community


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

       Section 301 is identical to Section 301 of the Senate 
     amendment and section 301 of the House bill.


       sec. 302 restriction on conduct of intelligence activities

       Section 302 is identical to Section 302 of the Senate 
     amendment and section 302 of the House bill.


  SEC. 303 SENSE OF THE CONGRESS OF INTELLIGENCE COMMUNITY CONTRACTING

       Section 303 is identical to Section 303 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.


sec. 304. REQUIREMENTS FOR LODGING ALLOWANCES IN INTELLIGENCE COMMUNITY 
                      ASSIGNMENT PROGRAM BENEFITS

       Section 304 is identical to Section 304 of the House 
     amendment. The Senate amendment had no similar provision. The 
     Senate recedes.


   SEC. 305. MODIFICATION OF REPORTING REQUIREMENTS FOR SIGNIFICANT 
   ANTICIPATED INTELLIGENCE ACTIVITIES AND SIGNIFICANT INTELLIGENCE 
                                FAILURES

       Section 305 is identical to Section 305 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


 SEC. 306. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE NATIONAL 
               COMMISSION ON TERRORISM AND OTHER ENTITIES

       Section 306 is similar to Section 307 of the House bill, 
     which requires a report from the Director of Central 
     Intelligence concerning whether and to what extent, the 
     Intelligence Community has implemented the applicable 
     recommendations set forth by the National Commission on 
     Terrorism (Bremer Commission). The DCI report, which shall be 
     due 120 days after enactment of this legislation, shall 
     include a detailed explanation from the DCI as to the reasons 
     for not implementing Intelligence Community-related 
     recommendations contained within the three commission 
     reports. The Senate amendment had no similar provision. The 
     conferees agree to expand the DCI's reporting requirement to 
     include applicable provisions of the US commission on 
     National Security for the 21st Century and the second annual 
     report of the so-called Gilmore Commission. The Senate 
     amendment had no similar provision. The Senate recedes.


 SEC. 307. JUDICIAL REVIEW UNDER FOREIGN NARCOTICS KINGPIN DESIGNATION 
                                  ACT

       Section 307 is identical to Section 303 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


    SEC, 308. MODIFICATION OF POSITIONS REQUIRING CONSULTATION WITH 
            DIRECTOR OF CENTRAL INTELLIGENCE IN APPOINTMENTS

       Section 308 is identical to Section 304 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


 SEC. 309. MODIFICATION OF AUTHORITIES FOR PROTECTION OF INTELLIGENCE 
       COMMUNITY EMPLOYEES WHO REPORT URGENT CONCERNS TO CONGRESS

       Section 309 is identical to Section 306 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


SEC. 310. REVIEW OF PROTECTIONS AGAINST THE UNAUTHORIZED DISCLOSURE OF 
                         CLASSIFIED INFORMATION

       Section 310 is identical to Section 307 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes. The conferees expect a report no later than May 1, 
     2002, from the Attorney General providing a comprehensive 
     review of current protections against the unauthorized 
     disclosure of classified information.


     SEC. 311. ONE-YEAR SUSPENSION OF REORGANIZATION OF DIPLOMATIC 
               TELECOMMUNICATIONS SERVICE PROGRAM OFFICE

       Section 311 is identical to Section 309 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


sec. 312. presidential approval and submission to congress of national 
  counterintelligence strategy and national threat identification and 
                       prioritization assessments

       Section 312 is identical to Section 310 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


        sec. 313. report on alien terrorist removal proceedings

       Section 313 is identical to section 312 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


                     sec. 314. technical amendments

     Extension of Time to Seek FISA Ratification of Attorney 
         General-authorized Electronic Surveillance and Physical 
         Searches
       Under current law, the Attorney General may authorize 
     electronic surveillance or a search without a court order 
     when he concludes, first, that the factual basis for granting 
     such an order exists and, second, that an emergency exists 
     requiring action before a court order may be obtained. 50 
     U.S.C. Sec. Sec. 1805(f), 1824(e). Current law requires the 
     Government to prepare a complete FISA application and present 
     it to the FISA court for approval within 24 hours ``after the 
     Attorney General authorizes'' the surveillance or search. 
     Failure to do so results in the suppression of information 
     from the surveillance or search.
       Given the length and complexity of many FISA applications, 
     the need to verify the accuracy of each FISA declaration by 
     review in the field, the requirement that the Government 
     obtain both a written certification from the director of the 
     FBI (or a similar official) and the written approval of the 
     Attorney General, it often is extremely difficult to meet the 
     24-hour deadline. This is especially true where--as often 
     will be the case--the emergency authorization comes in the 
     midst of a larger emergency requiring the personal attention 
     of the Attorney General and the Director of the FBI. The 
     emergency authorization provision of title III wiretaps, 18 
     U.S.C. Sec. 2518(7), sets a deadline of 48-hours, and starts 
     the 48-hour clock not at the time of authorization, but only 
     once the interception ``has occurred, or begins to occur.''
       The conferees agreed to a provision to extend the time for 
     judicial ratification of an emergency FISA surveillance or 
     search from 24 to 72 hours. That would give the Government 
     adequate time to assemble an application without requiring 
     extraordinary effort by officials responsible for the 
     preparation of those applications. The additional 48 hours 
     for FISA applications is appropriate given their complexity 
     and the need for higher-level approval for FISA applications 
     than for applications under title III. The additional time is 
     also appropriate given that the deadline for submission of 
     applications under FISA begins when the Attorney General 
     authorizes the surveillance or search, rather than when the 
     surveillance or search actually occurs, as is the case under 
     title III.
     Multipoint Wiretaps
       The multipoint wiretap amendment to FISA in the USA PATRIOT 
     Act (section 206) allows the FISA court to issue generic 
     orders of assistance to any communications provider or 
     similar person, instead of to a particular communications 
     provider. This change permits the Government to implement new 
     surveillance immediately if the FISA target changes providers 
     in an effort to thwart surveillance. The amendment was 
     directed at persons who, for example, attempt to defeat 
     surveillance by changing wireless telephone providers or 
     using pay phones.
       Currently, FISA requires the court to ``specify'' the 
     ``nature and location of each of the facilities or places at 
     which the electronic surveillance will be directed.'' 50 
     U.S.C. Sec. 1805(c)(1)(B). Obviously, in certain situations 
     under current law, such a specification is limited. For 
     example, a wireless phone has no fixed location and 
     electronic mail may be accessed from any number of locations.
       To avoid any ambiguity and clarify Congress' intent, the 
     conferees agreed to a provision which adds the phrase, ``if 
     known,'' to the end of 50 U.S.C. Sec. 1805(c)(1)(B). The ``if 
     known'' language, which follows the model of 50 U.S.C. 
     Sec. 1805(c)(1)(A), is designed to avoid any uncertainty 
     about the kind of

[[Page H9064]]

     specification required in a multipoint wiretap case, where 
     the facility to be monitored is typically not known in 
     advance.
     Non-conformity of FISA Subsections 501(a)(1) and 501(b)(2)
       Section 215 of the USA PATRIOT Act of 2001 amended title V 
     of the FISA, adding a new section 501. Section 501(a)(1) now 
     authorizes the director of the FBI to apply for a court order 
     to produce certain records ``for an investigation to protect 
     against international terrorism or clandestine intelligence 
     activities.'' Section 501(b)(2) directs that the application 
     for such records specify that the purpose of the 
     investigation is to ``obtain foreign intelligence information 
     not concerning a United States person.'' However, section 
     501(a)(1), which generally authorizes the applications, does 
     not contain equivalent language. Thus, subsections (a)(1) and 
     (b)(2) now appear inconsistent.
       The conferees agreed to a provision which adds the phrase 
     ``to obtain foreign intelligence information not concerning a 
     United States person or'' to section 501(a)(1). This would 
     make the language of section 501(a)(1) consistent with the 
     legislative history of section 215 of the USA PATRIOT Act 
     (see 147 Cong. Res. S11006 (daily ed. Oct. 25, 2001) 
     (sectional analysis)) and with the language of section 214 of 
     the USA PATRIOT Act (authorizing an application for an order 
     to use pen registers and trap and trace devices to ``obtain 
     foreign intelligence information not concerning a United 
     States person'').
     Clarification of Intelligence Exception
       Section 203(b)(2) of the USA PATRIOT Act added a definition 
     of ``foreign intelligence information'' to chapter 119 of 
     title 18, United States Code. The existing intelligence 
     exception from certain chapters of title 18--i.e., 
     chapters 119, 121, and 206--is contained in chapter 119 
     (at 18 U.S.C. Sec. 2511(2)(f)) and uses the term ``foreign 
     intelligence information'' to define the scope of the 
     exception. As a result, the new definition of ``foreign 
     intelligence information'' added by section 203(b)(2) 
     could potentially be read to limit the intelligence 
     exception--particularly when compared to the National 
     Security Act definition of ``foreign intelligence'' (50 
     U.S.C. Sec. 401(a)).
     Other Technical Amendments
       The conferees agreed to provisions correcting several 
     drafting problems in the text of the USA PATRIOT Act. First, 
     section 207(b)(1) of the PATRIOT ACT refers to section 
     105(d)(2) instead of section 105(e)(2) and to 50 U.S.C. 
     Sec. 1805(d)(2) instead of 50 U.S.C. Sec. 1805(e)(2). Second, 
     section 215 (creating new section 502 of FISA) refers to 
     ``section 402'' instead of ``section 501'' in the last line 
     of new section 502(a) and in the last line of new section 
     502(b)(1). Third, section 225 adds a new subsection (h) 
     immediately following 50 U.S.C. Sec. 1805(g), but it should 
     add a new subsection (i) immediately following 50 U.S.C. 
     Sec. 1805(h).
       Fourth, the title of section 225 is ``Immunity for 
     Compliance with FISA Wiretap'' and it is an amendment to 50 
     U.S.C. Sec. 1805, both of which suggest that it applies only 
     to electronic surveillance and not to physical searches or 
     other activity authorized by FISA. However, the text of 
     section 225 refers to court orders and requests for emergency 
     assistance ``under this Act,'' which makes clear that it 
     applies to physical searches (and pen-trap requests--for 
     which there already exists an immunity provision, 50 U.S.C. 
     Sec. 1842(f)--and subpoenas) as well as to electronic 
     surveillance.

                 Title IV--Central Intelligence Agency


   sec. 401. modifications to central intelligence agency's central 
                            service program

       Section 401 is identical to Section 401 of the House bill 
     and Section 402 of the Senate amendment.


 sec. 402. one-year extension of central intelligence agency voluntary 
                           separation pay act

       Section 402 is identical to Section 402 of the House bill 
     and section 401 of the Senate amendment.


     sec. 403. guidelines for recruitment of certain foreign assets

       Section 403 addresses the CIA's 1995 guidelines on 
     recruitment of foreign assets and sources. The House bill 
     noted the concern that excessive caution and a burdensome 
     vetting process resulting from the 1995 guidelines have 
     undermined the CIA's ability and willingness to recruit 
     assets, especially those who would provide insights into 
     terrorist organizations and other hard targets.
       The conferees believe that the concerns expressed in the 
     House bill are justified and that, despite the changes to the 
     1995 guidelines that the Director of Central Intelligence 
     made in September, the current guidelines must be rescinded 
     and replaced with new guidelines. The conferees intend that a 
     new balance be struck between potential gain and risk, a 
     balance that recognizes concerns about egregious human rights 
     behavior and law breaking, while providing much needed 
     flexibility to take advantage of opportunities to gather 
     important information as those opportunities present 
     themselves. Moreover, the conferees believe that the goals 
     and priorities for human collection must be weighted toward 
     collecting the type of information that will provide plans 
     and intentions of those who would threaten American national 
     security, in a timeframe that will allow maximum opportunity 
     to prevent actions against American interests. The conferees 
     acknowledge that it may not always be possible to collect 
     such information in every case, but this must be a focus for 
     planning future HUMINT collection efforts if such collection 
     is going to be preventative in nature rather than reactive. 
     The Senate amendment had no similar provision. The Senate 
     recedes.


 SEC. 404. FULL REIMBURSEMENT FOR PROFESSIONAL LIABILITY INSURANCE OF 
                       COUNTERTERRORISM EMPLOYEES

       Section 404 is identical to Section 404 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.

         Title V--Department of Defense Intelligence Activities


SEC. 501. AUTHORITY TO PURCHASE ITEMS OF NOMINAL VALUE FOR RECRUITMENT 
                                PURPOSES

       Section 501 is identical to Section 501 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.


 SEC. 502. FUNDING FOR INFRASTRUCTURE AND QUALITY-OF-LIFE IMPROVEMENTS 
                AT MENWITH HILL AND BAD AIBLING STATIONS

       Section 502 is similar to Section 502 of the House bill. 
     The provision is intended to facilitate the transfer or 
     reprogramming of funds from the Departments of the Army, Air 
     Force, and Navy as necessary to support the enhancement of 
     the infrastructure of Menwith Hill and Bad Aibling stations. 
     The Senate amendment had no similar provision. The Senate 
     recedes.


SEC. 503. MODIFICATION OF AUTHORITIES RELATING TO OFFICIAL IMMUNITY IN 
      INTERDICTION OF AIRCRAFT ENGAGED IN ILLICIT DRUG TRAFFICKING

       Section 503 is identical to Section 503 of the House bill 
     and Section 308 of the Senate amendment.


sec. 504. undergraduate training program for employees of the national 
                       imagery and mapping agency

       Section 504 is identical to Section 504 of the House bill. 
     The Senate amendment had no similar provision. The Senate 
     recedes.


 sec. 505. preparation and submittal of reports, reviews, studies, and 
    plans relating to department of defense intelligence activities

       Section 505 is identical to Section 311 of the Senate 
     amendment. The House bill had no similar provision. The House 
     recedes.


  sec. 506. enhancement of security authorities of national security 
                                 agency

       Section 506 authorizes the National Security Agency (NSA) 
     security protective officers to exercise their law 
     enforcement functions 500 feet beyond the confines of NSA 
     facilities. At present, NSA's protective jurisdiction does 
     not extend beyond the territorial bounds of its perimeter 
     fences. Additionally, NSA has to rely on several federal, 
     state, and local jurisdictions to respond to threats that 
     occur just outside its fence line. With so many jurisdictions 
     involved, there is a chance that a necessary response could 
     be slowed and thus ineffective. In addition, under current 
     law (Section 11 of the National Security Agency Act of 1959) 
     the Administrator of General Services, upon the application 
     of the Director of NSA, may provide for the protection of 
     those facilities that are under the control of or use by the 
     National Security Agency. The General Services Administration 
     has delegated this authority to NSA. This amendment to the 
     National Security Agency Act would provide NSA with the 
     organic authority needed to protect its facilities and 
     personnel without having to obtain a delegation of authority 
     from the General Services Administration. This section 
     parallels authority the Central Intelligence Agency currently 
     has in section 15 of the CIA Act of 1949 (50 U.S.C. 403o).
       The attacks of September 11, 2001 demonstrated the growing 
     threat of terrorism in the United States. The conferees 
     believe the NSA's authority to have a protective detail 
     should be clarified and enhanced 500 feet beyond the confines 
     of NSA's facilities, but were sensitive to the public's 
     reaction to an unlimited grant of law enforcement 
     jurisdiction outside NSA's borders. Therefore, the exercise 
     of this new authority is expressly limited to only those 
     circumstances where NSA security protective officers can 
     identify specific and articulable facts giving them reason to 
     believe that the exercise of this authority is necessary to 
     protect against physical damage or injury to NSA 
     installations, property, or employees. This provision also 
     expressly states that the rules and regulations prescribed by 
     the Director of the NSA for agency property and installations 
     do not extend into the 500 foot area established by this 
     provision. Thus, there will be no restrictions, for example, 
     on the taking of photographs within the 500 foot zone.
       The conferees do not envision a general grant of police 
     authority in the 500 foot zone, but do envision NSA security 
     protective officers functioning as federal police, for 
     limited purposes, within the 500 foot zone with all attendant 
     authorities, capabilities, immunities, and liabilities. The 
     conferees expect the Director of NSA to coordinate and 
     establish Memoranda of Understanding with all federal, state, 
     or local law enforcement agencies with which NSA will 
     exercise concurrent jurisdiction in the 500 foot zones. 
     The Director of NSA shall submit such Memoranda of 
     Understanding to the Select Committee on Intelligence and 
     the Armed Services Committee of the Senate and the 
     Permanent Select Committee on Intelligence

[[Page H9065]]

     and the Armed Services Committee of the House of 
     Representatives. The Director of NSA is also expected to 
     develop a training plan to familiarize the Agency's 
     security protective officers with their new authorities 
     and responsibilities. The Director of NSA shall submit 
     such plan to the Select Committee on Intelligence and the 
     Armed Services Committee of the Senate and the Permanent 
     Select Committee on Intelligence and the Armed Services 
     Committee of the House of Representatives not later than 
     30 days after the enactment of this provision.
       Section 506 also includes a reporting requirement so that 
     the intelligence committees may closely scrutinize the 
     exercise of this new authority.
     Items Not Included
       Section 306 of the House bill contained a provision 
     establishing, with respect to the terrorist attacks of 
     September 11, 2001, a federal commission on the national 
     security readiness of the United States. The Senate bill had 
     no similar provision. The House recedes.

     From the Permanent Select Committee on Intelligence, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Porter J. Goss,
     Douglas Bereuter,
     Michael N. Castle,
     Sherwood Boehlert,
     Jim Gibbons,
     Ray LaHood,
     Duke Cunningham,
     Pete Hoekstra,
     Richard Burr,
     Saxby Chambliss,
     Nancy Pelosi,
     Sanford Bishop,
     Jane Harman,
     Gary Condit,
     Tim Roemer,
     Alcee L. Hastings,
     Leonard L. Boswell,
     Collin C. Peterson,
                                Managers on the Part of the House.

     

                          ____________________