[House Report 104-620]
[From the U.S. Government Publishing Office]



                                                                       
104th Congress                                           Rept. 104-620,
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
                       INTELLIGENCE COMMUNITY ACT

_______________________________________________________________________


                 June 13, 1996.--Ordered to be printed

                                _______


   Mr. Combest, from the Permanent Select Committee on Intelligence, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3237]

      [Including cost estimate of the Congressional Budget Office]

  The Permanent Select Committee on Intelligence, to whom was 
referred the bill (H.R. 3237) to provide for improved 
management and operation of intelligence activities of the 
Government by providing for a more corporate approach to 
intelligence, to reorganize the agencies of the Government 
engaged in intelligence activities so as to provide an improved 
Intelligence Community for the 21st century, and for other 
purposes, having considered the same, report favorably thereon 
with amendments and recommend that the bill as amended do pass.
  The amendments are as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Intelligence Community Act''.

SEC. 2. ORGANIZATION OF ACT; TABLE OF CONTENTS.

  (a) Organization of Act.--This Act is organized as follows:

               TITLE I--INTELLIGENCE COMMUNITY GENERALLY

Subtitle A--Director of Central Intelligence
Subtitle B--Deputy Directors of Central Intelligence
Subtitle C--The Intelligence Community
Subtitle D--Annual Reports

              TITLE II--INTELLIGENCE COMMUNITY MANAGEMENT

Subtitle A--Intelligence Community Functions
Subtitle B--National Foreign Intelligence Program
Subtitle C--Personnel
Subtitle D--Infrastructure Support Office
Subtitle E--Intelligence Community Administration

               TITLE III--INTELLIGENCE COMMUNITY AGENCIES

Subtitle A--Central Intelligence Agency
Subtitle B--The National Intelligence Evaluation Council
Subtitle C--Future of Intelligence Collection

TITLE IV--DEPARTMENT OF DEFENSE FUNCTIONS IN THE INTELLIGENCE COMMUNITY

Subtitle A--Secretary of Defense
Subtitle B--Director of Military Intelligence
Subtitle C--Defense Intelligence Agency
Subtitle D--The Military Departments
Subtitle E--Planning and Budgeting
Subtitle F--Civilian Intelligence Personnel Policy

  TITLE V--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

TITLE VI--TECHNICAL AND CONFORMING AMENDMENTS AND EFFECTIVE DATE
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act; table of contents.
Sec. 3. Findings and purposes.
Sec. 4. Definitions.

               TITLE I--INTELLIGENCE COMMUNITY GENERALLY

              Subtitle A--Director of Central Intelligence

Sec. 101. Director of Central Intelligence.
Sec. 102. General intelligence responsibilities of the Director.
Sec. 103. Preparation of annual budget for National Foreign 
Intelligence Program.
Sec. 104. Foreign intelligence collection.
Sec. 105. Protection of sources and methods.
Sec. 106. Promotion and evaluation of the usefulness of intelligence to 
consumers.
Sec. 107. Elimination of waste and unnecessary duplication.
Sec. 108. Other functions.
Sec. 109. Prohibition on law enforcement powers and internal security 
functions.
Sec. 110. Access to intelligence.
Sec. 111. Coordination with foreign governments.

          Subtitle B--Deputy Directors of Central Intelligence

Sec. 121. Deputy Directors of Central Intelligence.
Sec. 122. Deputy Director of Central Intelligence.
Sec. 123. Deputy Director of Central Intelligence for Community 
Management.
Sec. 124. Civilian and military status of Director of Central 
Intelligence and Deputies.

                 Subtitle C--The Intelligence Community

Sec. 131. Elements of the Intelligence Community.
Sec. 132. Intelligence Community Inspector General Forum.

                       Subtitle D--Annual Reports

Sec. 141. Annual report on Intelligence Community activities.

              TITLE II--INTELLIGENCE COMMUNITY MANAGEMENT

              Subtitle A--Intelligence Community Functions

Sec. 201. Community Management Staff.
Sec. 202. Functions of the Community Management Staff.

           Subtitle B--National Foreign Intelligence Program

Sec. 221. Budgets.
Sec. 222. Comptroller functions of Community Management Staff.
Sec. 223. Limitations on transfers and reprogramming.
Sec. 224. Transfer of funds or personnel within the National Foreign 
Intelligence Program.
Sec. 225. Limitation on reprogramming.

                         Subtitle C--Personnel

Sec. 231. Use of personnel.
Sec. 232. Authority to terminate employment of certain employees.
Sec. 233. Intelligence Community Reserve.

               Subtitle D--Infrastructure Support Office

Sec. 241. Establishment of Infrastructure Support Office.
Sec. 242. Responsibilities of Director of the Infrastructure Support 
Office.

           Subtitle E--Intelligence Community Administration

Sec. 251. Secrecy agreements used in intelligence activities.
Sec. 252. Coordination of counterintelligence matters with the Federal 
Bureau of Investigation.
Sec. 253. Intelligence Community contracting.

               TITLE III--INTELLIGENCE COMMUNITY AGENCIES

                Subtitle A--Central Intelligence Agency

Sec. 301. Central Intelligence Agency.
Sec. 302. Duties of Director of Central Intelligence with regard to the 
Central Intelligence Agency.
Sec. 303. Functions of the Central Intelligence Agency.
Sec. 304. Agreement to transfer DOD clandestine humint to CIA.

        Subtitle B--The National Intelligence Evaluation Council

Sec. 321. National Intelligence Evaluation Council.
Sec. 322. Functions of the National Intelligence Evaluation Council.
Sec. 323. Staffing of the National Intelligence Evaluation Council.

             Subtitle C--Future of Intelligence Collection

Sec. 331. Panel on the future of intelligence collection.

TITLE IV--DEPARTMENT OF DEFENSE FUNCTIONS IN THE INTELLIGENCE COMMUNITY

                    Subtitle A--Secretary of Defense

Sec. 401. Overall Secretary of Defense functions.
Sec. 402. Requirement that budgets for intelligence components be 
adequate.
Sec. 403. Implementation of Director of Central Intelligence policies 
and resource decisions.
Sec. 404. Relationship of NFIP activities to tactical intelligence 
activities.
Sec. 405. Responsiveness to operational military forces.
Sec. 406. Elimination of waste and unnecessary duplication.
Sec. 407. Joint and corporate conduct of Defense intelligence 
activities.
Sec. 408. Signals intelligence activities.
Sec. 409. Imagery collection, processing, and exploitation.
Sec. 410. Overhead reconnaissance systems.
Sec. 411. Use of elements of Department of Defense.
Sec. 412. Consultations regarding appointment of certain intelligence 
officials.

             Subtitle B--Director of Military Intelligence

Sec. 421. Director of Military Intelligence.
Sec. 422. Functions of the Director of Military Intelligence.
Sec. 423. Role of Director of Military Intelligence in the Intelligence 
Community.
Sec. 424. Planning and budget functions.
Sec. 425. Staff.

                Subtitle C--Defense Intelligence Agency

Sec. 441. Defense Intelligence Agency generally.
Sec. 442. Functions of the Defense Intelligence Agency.

                  Subtitle D--The Military Departments

Sec. 451. Intelligence capabilities of the military departments.

                   Subtitle E--Planning and Budgeting

Sec. 461. Joint Military Intelligence Program.
Sec. 462. Tactical Intelligence and Related Activities (TIARA).
Sec. 463. Notice to Congress of changes in JMIP and TIARA.

           Subtitle F--Civilian Intelligence Personnel Policy

Sec. 481. Standardization of personnel policies for intelligence 
components of Department of Defense
Sec. 482. Temporary program for civilian workforce reduction in the 
National Security Agency.

  TITLE V--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

Sec. 501. Recodification of laws relating to National Security Council 
and related boards and committees in Executive Office of the President.
Sec. 502. Committee on Foreign Intelligence.
Sec. 503. Transnational threats.
Sec. 504. Prohibition of direct participation by National Security 
Council staff in execution of intelligence operations.

    TITLE VI--TECHNICAL AND CONFORMING AMENDMENTS AND EFFECTIVE DATE

Sec. 601. Restatement of National Security Agency Act of 1959.
Sec. 602. Amendments to title 5, United States Code.
Sec. 603. Repeal of provisions recodified in new Act.
Sec. 604. National Security Act of 1947.
Sec. 605. Abolition of National Intelligence Council.
Sec. 606. Effective date.

SEC. 3. FINDINGS AND PURPOSES.

  (a) Findings.--The Congress makes the following findings:
          (1) The United States must maintain a strong, capable, and 
        increasingly flexible intelligence capability to collect and 
        analyze information concerning world events that may threaten 
        its security so as to be in a position to anticipate and 
        respond to such events in an effective and timely manner.
          (2) The existing framework for the conduct of United States 
        intelligence activities, established by the National Security 
        Act of 1947, has evolved largely without changes to the 
        original statutory framework, but rather as a matter of 
        Executive order and directive.
          (3) Although the Director of Central Intelligence has had an 
        overall, coordinating role for United States intelligence 
        activities, under existing law and by Executive order the 
        Director has, in fact, lacked sufficient authorities to 
        exercise this responsibility effectively, leaving control 
        largely decentralized within elements of the Intelligence 
        Community.
  (b) Purposes.--The purposes of this Act are--
          (1) to provide a corporate framework for the improved 
        management of United States intelligence activities at all 
        levels and within all intelligence disciplines;
          (2) to provide an institutional structure that will continue 
        to ensure that the Intelligence Community serves the needs of 
        the Government as a whole in an effective, timely, and 
        corporate manner;
          (3) to clarify by law the responsibilities of United States 
        intelligence agencies; and
          (4) to improve the congressional oversight of intelligence 
        activities.

SEC. 4. DEFINITIONS.

  For the purposes of this Act:
          (1) Intelligence.--The term ``intelligence'' includes foreign 
        intelligence and counterintelligence.
          (2) Foreign intelligence.--The term ``foreign intelligence'' 
        means information relating to the capabilities, intentions, or 
        activities of foreign governments or elements thereof, foreign 
        organizations, foreign transnational entities, or foreign 
        persons.
          (3) Counterintelligence.--The term ``counterintelligence'' 
        means information gathered and activities conducted to protect 
        against espionage, other intelligence activities, sabotage, or 
        assassinations conducted by or on behalf of foreign governments 
        or elements thereof, foreign organizations, foreign 
        transnational entities, or foreign persons, or international 
        terrorist activities.
          (4) National intelligence and intelligence related to 
        national security.--The terms ``national intelligence'' and 
        ``intelligence related to the national security''--
                  (A) each refer to intelligence that pertains to the 
                interests of the Government generally, rather than to 
                the interests of a single department or agency of 
                Government, or to a component of such department or 
                agency;
                  (B) do not refer to intelligence necessary to plan or 
                conduct tactical military operations by United States 
                Armed Forces; and
                  (C) do not refer to counterintelligence or law 
                enforcement activities conducted by the Federal Bureau 
                of Investigation except to the extent provided for in 
                procedures agreed to by the Director of Central 
                Intelligence and the Attorney General, or otherwise as 
                expressly provided for in this Act.
          (5) National foreign intelligence program.--The term 
        ``National Foreign Intelligence Program'' refers to all 
        programs, projects, and activities of the Intelligence 
        Community that are intended to produce national intelligence, 
        as well as any other programs of the Intelligence Community 
        designated jointly by the Director of Central Intelligence and 
        the head of a United States department or agency or by the 
        President. Such term does not include programs, projects, or 
        activities of the military departments to acquire intelligence 
        solely for the planning and conduct of tactical military 
        operations by United States Armed Forces.
          (6) Congressional intelligence committees.--The term 
        ``congressional intelligence committees'' means--
                  (A) the Select Committee on Intelligence of the 
                Senate; and
                  (B) the Permanent Select Committee on Intelligence of 
                the House of Representatives.

               TITLE I--INTELLIGENCE COMMUNITY GENERALLY

              Subtitle A--Director of Central Intelligence

SEC. 101. DIRECTOR OF CENTRAL INTELLIGENCE.

  (a) Director of Central Intelligence.--There is a Director of Central 
Intelligence. The Director of Central Intelligence is--
          (1) the principal adviser to the President and the National 
        Security Council for intelligence matters related to the 
        national security; and
          (2) the head of the Intelligence Community.
   (b) Appointment.--The Director of Central Intelligence is appointed 
by the President, by and with the advice and consent of the Senate.

SEC. 102. GENERAL INTELLIGENCE RESPONSIBILITIES OF THE DIRECTOR.

  (a) Provision of Intelligence to the President.--Under the direction 
of the National Security Council, the Director of Central Intelligence 
shall be responsible for providing intelligence to the President.
  (b) Provision of Intelligence to Others.--Under the direction of the 
National Security Council, the Director of Central Intelligence shall 
be responsible for providing intelligence--
          (1) to the heads of departments and agencies of the executive 
        branch;
          (2) to the Chairman of the Joint Chiefs of Staff, to the 
        commanders of the unified combatant commands, and to other 
        senior military commanders; and
          (3) to the Senate and House of Representatives and the 
        appropriate committees thereof.
  (c) Intelligence To Be Objective and Timely.--Intelligence provided 
by the Director pursuant to this section should be timely and objective 
and shall be provided independent of political considerations or bias 
and based upon all sources available to the Intelligence Community.

SEC. 103. PREPARATION OF ANNUAL BUDGET FOR NATIONAL FOREIGN 
                    INTELLIGENCE PROGRAM.

  The Director of Central Intelligence shall develop (in accordance 
with subtitle B of title II) and present to the President an annual 
budget for the National Foreign Intelligence Program of the United 
States.

SEC. 104. FOREIGN INTELLIGENCE COLLECTION.

  The Director of Central Intelligence shall establish the requirements 
and priorities to govern the collection of national intelligence by 
elements of the Intelligence Community and shall manage the collection 
capabilities of the Intelligence Community to ensure that national 
requirements are met.

SEC. 105. PROTECTION OF SOURCES AND METHODS.

  The Director of Central Intelligence shall protect intelligence 
sources and methods from unauthorized disclosure.

SEC. 106. PROMOTION AND EVALUATION OF THE USEFULNESS OF INTELLIGENCE TO 
                    CONSUMERS.

  The Director of Central Intelligence shall promote and evaluate the 
quality and usefulness of national intelligence to consumers within the 
Government.

SEC. 107. ELIMINATION OF WASTE AND UNNECESSARY DUPLICATION.

  The Director of Central Intelligence, in cooperation with the heads 
of the elements of the Intelligence Community shall eliminate waste and 
unnecessary duplication within the Intelligence Community.

SEC. 108. OTHER FUNCTIONS.

  The Director of Central Intelligence shall perform such other 
functions as the President or the National Security Council may direct.

SEC. 109. PROHIBITION ON LAW ENFORCEMENT POWERS AND INTERNAL SECURITY 
                    FUNCTIONS.

  The Director of Central Intelligence shall have no police, subpoena, 
or law enforcement powers or internal security functions.

SEC. 110. ACCESS TO INTELLIGENCE.

  To the extent recommended by the National Security Council and 
approved by the President, the Director of Central Intelligence shall 
have access to all intelligence related to the national security which 
is collected by any department, agency, or other entity of the United 
States.

SEC. 111. COORDINATION WITH FOREIGN GOVERNMENTS.

  Under the direction of the National Security Council and in a manner 
consistent with section 207 of the Foreign Service Act of 1980 (22 
U.S.C. 3927), the Director shall coordinate the relationships between 
elements of the Intelligence Community and the intelligence or security 
services of foreign governments on all matters involving intelligence 
related to the national security or involving intelligence acquired 
through clandestine means.

          Subtitle B--Deputy Directors of Central Intelligence

SEC. 121. DEPUTY DIRECTORS OF CENTRAL INTELLIGENCE.

  (a) Positions.--There is a Deputy Director of Central Intelligence, 
and there is a Deputy Director of Central Intelligence for Community 
Management.
  (b) Appointment.--Each Deputy Director shall be appointed by the 
President, by and with the advice and consent of the Senate.
  (c) Qualifications.--Each Deputy Director shall have extensive 
national security experience.

SEC. 122. DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE.

  (a) In General.--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 office of the Director of Central Intelligence.
  (b) Precedence.--The Deputy Director of Central Intelligence takes 
precedence immediately after the Director of Central Intelligence.

SEC. 123. DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE FOR COMMUNITY 
                    MANAGEMENT.

  Subject to the direction of the Director of Central Intelligence, the 
Deputy Director of Central Intelligence for Community Management shall 
be responsible for the following:
          (1) Directing the operations of the Community Management 
        Staff.
          (2) Directing the operations of the Infrastructure Support 
        Office.
          (3) Performing community-wide management functions, including 
        the management of personnel, resources, and requirements.
          (4) Managing community-wide research and development.

SEC. 124. CIVILIAN AND MILITARY STATUS OF DIRECTOR OF CENTRAL 
                    INTELLIGENCE AND DEPUTIES.

  (a) Limitation on Active Duty Status.--Not more than one individual 
serving in the following positions may be on active duty in the Armed 
Forces while serving in that position:
          (1) The Director of Central Intelligence.
          (2) The two Deputy Directors of Central Intelligence.
  (b) Appointment and Rank.--An individual serving in a position 
specified in paragraph (1) or (2) of subsection (a) who is on active 
duty in the Armed Forces shall be appointed from among the officers of 
the Armed Forces on the active-duty list. The Director of Central 
Intelligence may hold the grade of general or admiral while so serving 
and a Deputy Director of Central Intelligence may hold the rank of 
lieutenant general or vice admiral while so serving.
  (c) Role as Officer of Armed Forces.--A commissioned officer of the 
Armed Forces, while serving in a position specified in paragraph (1) or 
(2) of subsection (a)--
          (1) shall not be subject to supervision or control by the 
        Secretary of Defense or by any officer or employee of the 
        Department of Defense;
          (2) 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 authorized by this title; and
          (3) 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.
  (d) Military Benefits.--Except as provided in paragraph (1) or (2) of 
subsection (c), the appointment of an officer of the Armed Forces to a 
position specified in paragraph (1) or (2) of subsection (a) 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.
  (e) Pay.--An officer of the Armed Forces appointed to a position 
specified in paragraph (1) or (2) of subsection (a), while serving in 
such position, shall continue to receive military pay and allowances 
payable to a commissioned officer of that officer's grade and length of 
service for which the appropriate military department shall be 
reimbursed from funds available to the Director of Central 
Intelligence. In addition to any pay or allowance payable under this 
subsection, such officer shall also receive, out of funds available to 
the Director of Central Intelligence, annual compensation in an amount 
by which the annual rate of compensation payable for such position 
exceeds the total of that officer's annual rate of military pay and 
allowances.

                 Subtitle C--The Intelligence Community

SEC. 131. ELEMENTS OF THE INTELLIGENCE COMMUNITY.

  The Intelligence Community of the United States Government consists 
of the following:
          (1) The Office of the Director of Central Intelligence, which 
        shall include the Offices of the Deputy Directors of Central 
        Intelligence and such other offices as the Director may 
        designate.
          (2) The Community Management Staff.
          (3) The National Intelligence Evaluation Council.
          (4) The Central Intelligence Agency.
          (5) The Defense Intelligence Agency.
          (6) The National Security Agency.
          (7) The National Reconnaissance Office.
          (8) The Central Imagery Office.
          (9) The Infrastructure Support Office.
          (10) The intelligence elements of the Army, the Navy, the Air 
        Force, the Marine Corps, and the Coast Guard.
          (11) The intelligence elements of the Federal Bureau of 
        Investigation, the Department of the Treasury, the Department 
        of Energy, and the Drug Enforcement Administration.
          (12) The Bureau of Intelligence and Research of the 
        Department of State.
          (13) Such other offices and entities as are established by 
        law under the authority of the Director of Central Intelligence 
        or as may be provided by law or by the President to be a 
        component of the Intelligence Community.

SEC. 132. INTELLIGENCE COMMUNITY INSPECTOR GENERAL FORUM.

  (a) Establishment.--There is hereby established an Intelligence 
Community Inspector General Forum (hereinafter in this section referred 
to as the ``Forum'').
  (b) Mission.--The Forum shall provide a mechanism for sharing 
information among those Inspectors General whose duties and 
responsibilities include audit, inspection, or investigation relating 
to programs and operations of elements within the Intelligence 
Community to ensure adequate Inspector General oversight with respect 
to those programs and operations and to coordinate efforts with a view 
toward preventing duplication.
  (c) Membership.--
          (1) The Forum shall consist of the following members:
                  (A) The Inspector General of the Department of 
                Defense.
                  (B) The Inspector General of the Central Intelligence 
                Agency.
                  (C) The Inspector General of the Department of State.
                  (D) The Inspector General of the Department of the 
                Treasury.
                  (E) The Inspector General of the Department of 
                Justice.
                  (F) The Inspector General of the Department of 
                Energy.
                  (G) The Inspector General of any other element within 
                the Intelligence Community, regardless of whether the 
                position of such Inspector General is created by 
                statute.
                  (H) Such other Federal officials as the co-chairs of 
                the Forum may invite to attend meetings whenever 
                matters of interest to them are scheduled to be 
                discussed.
          (2) The Forum shall be co-chaired by the Inspector General of 
        the Department of Defense and the Inspector General of the 
        Central Intelligence Agency.
          (3) The co-chairs may establish such subcommittees or working 
        groups as they consider appropriate to support the work of the 
        Forum.
          (4) There shall be an Executive Secretary for the Forum to be 
        appointed from the Office of the Inspector General of the 
        Department of Defense.
  (d) Meetings.--The Forum shall meet at least quarterly, and more 
often as the co-chairs consider necessary. The Director of Central 
Intelligence, the Secretaries of Defense, State, the Treasury, and 
Energy, and the Attorney General of the United States shall be given as 
much advance notice as practicable before each meeting of the Forum.
  (e) Functions.--
          (1) The Forum shall ensure adequate Inspector General 
        oversight over programs and operations of elements within the 
        Intelligence Community under the jurisdiction of two or more 
        statutory Inspectors General. In this regard, the Director of 
        Central Intelligence, the Secretaries of Defense, State, the 
        Treasury, and Energy, and the Attorney General may each submit 
        to the Forum or to their respective statutory Inspector General 
        requests for an Inspector General audit, inspection, or 
        investigation with respect to any program or operation of an 
        element within the Intelligence Community under the 
        jurisdiction of two or more statutory Inspectors General.
          (2) The Forum shall serve as a focal point for discussions of 
        mutual interest to the Inspectors General concerning oversight 
        of elements within the Intelligence Community, including--
                  (A) policies and procedures for conducting audits, 
                inspections, or investigations into programs and 
                operations of elements within the Intelligence 
                Community under the jurisdiction of two or more 
                statutory Inspectors General; and
                  (B) qualifications and training for auditors, 
                inspectors, and investigators who will be assigned to 
                conduct audits, inspections, or investigations into 
                programs and operations of elements within the 
                Intelligence Community under the jurisdiction of two or 
                more statutory Inspectors General.
          (3) The Forum shall keep the Director of Central 
        Intelligence, the Secretary of the appropriate Department, and 
        the head of the appropriate element within the Intelligence 
        Community informed of issues identified in audits, inspections 
        or investigations of programs, or operations of elements within 
        the Intelligence Community under the jurisdiction of two or 
        more statutory Inspectors General.
          (4) This section shall not preclude and is not intended to 
        preclude an Inspector General from independently initiating any 
        audit, inspection, or investigation of programs or operations 
        within their respective establishment as they consider 
        appropriate in accordance with the Inspector General Act of 
        1978, or section 17 of the Central Intelligence Agency Act of 
        1949, as appropriate.
  (f) Responsibilities.--Members of the Forum shall--
          (1) designate a point of contact within their respective 
        organizations to receive and provide information regarding 
        Forum activities; and
          (2) provide staff and other resources for the audits, 
        inspections and investigations of programs, or operations that 
        involve two or more elements within the Intelligence Community.
  (g) Report on Inspector General for the Intelligence Community.--Not 
later than April 15, 1997, the Forum shall submit to the congressional 
intelligence committees a report on the feasibility of, and costs and 
benefits associated with, creating an Inspector General for the 
Intelligence Community.

                       Subtitle D--Annual Reports

SEC. 141. ANNUAL REPORT ON INTELLIGENCE COMMUNITY ACTIVITIES.

  (a) In General.--The Director of Central Intelligence shall submit to 
Congress an annual report on the activities of the Intelligence 
Community. The annual report shall be unclassified.
  (b) Matters To Be Covered in Annual Report.--Each report under this 
section shall describe--
          (1) the activities of the Intelligence Community during the 
        preceding fiscal year, including significant successes and 
        failures that can be described in an unclassified manner; and
          (2) the areas of the world and the issues that the Director 
        expects will require increased or unusual attention from the 
        Intelligence Community during the next fiscal year.
  (c) Time for Submission.--The report under this section for any year 
shall be submitted at the same time that the President submits the 
budget for the next fiscal year pursuant to section 1105 of title 31, 
United States Code.

              TITLE II--INTELLIGENCE COMMUNITY MANAGEMENT

              Subtitle A--Intelligence Community Functions

SEC. 201. COMMUNITY MANAGEMENT STAFF.

  There is a Community Management Staff.

SEC. 202. FUNCTIONS OF THE COMMUNITY MANAGEMENT STAFF.

  (a) In General.--The Deputy Director of Central Intelligence for 
Community Management, acting through the Community Management Staff, 
shall provide corporate management of the following Intelligence 
Community-wide functions:
          (1) Requirements and collection management.
          (2) Planning, programming, budgeting, and accounting for the 
        National Foreign Intelligence Program.
          (3) Research and development activities.
  (b) Coordination With the DMI Staff.--The Deputy Director of Central 
Intelligence for Community Management shall coordinate the functions 
referred to in paragraphs (1) through (3) of subsection (a) with the 
Director of Military Intelligence.

           Subtitle B--National Foreign Intelligence Program

SEC. 221. BUDGETS.

  (a) Preparation.--The Deputy Director of Central Intelligence for 
Community Management, in consultation with the elements of the 
Intelligence Community, shall prepare the annual budgets of the 
National Foreign Intelligence Program.
  (b) Approval of Budgets.--The Director of Central Intelligence shall 
approve the budgets prepared under subsection (a) before their 
incorporation in the National Foreign Intelligence Program.
  (c) Accounting.--The Director of Central Intelligence, acting through 
the Deputy Director of Central Intelligence for Community Management, 
shall budget and account for financial resources on a community-wide 
basis by the functional categories of collection, processing, 
exploitation, analysis, dissemination, and infrastructure.
  (d) Identification of Constituent Components of Base Intelligence 
Budget.--The Director of Central Intelligence shall include in the 
congressional budget justification materials provided to the 
congressional intelligence committees in connection with the annual 
submission of the National Foreign Intelligence Program for a fiscal 
year the same level of budgetary detail for that part of the National 
Foreign Intelligence Program budget identified as the Base Budget that 
is provided for that part of such budget identified as Ongoing 
Initiatives and New Initiatives.

SEC. 222. COMPTROLLER FUNCTIONS OF COMMUNITY MANAGEMENT STAFF.

  (a) Execution Review.--The Community Management Staff shall perform 
budget execution review of elements of the Intelligence Community and 
shall have the authority to recommend to the comptroller of the 
Department of Defense that authorized and appropriated intelligence 
funds be withheld in those instances in which elements of the 
Intelligence Community within the Department of Defense are not 
complying with guidance from the Director of Central Intelligence or 
applicable law.
  (b) Accounting System.--The Deputy Director of Central Intelligence 
for Community Management shall establish and maintain an Intelligence 
Community-wide automated system for programming, budgeting, accounting, 
and execution review of the National Foreign Intelligence Program.

SEC. 223. LIMITATIONS ON TRANSFERS AND REPROGRAMMING.

  (a) Limitation on New Use of Funds Available for Intelligence 
Activities.--Funds may not be made available through transfer, 
reprogramming, or other means between the Central Intelligence Agency 
and the Department of Defense for any intelligence or special activity 
different from that previously justified to the Congress unless the 
Director of Central Intelligence or the Secretary of Defense notifies 
in advance the Permanent Select Committee on Intelligence of the House 
of Representatives, the Select Committee on Intelligence of the Senate, 
and the Committees on Appropriations of the Senate and House of 
Representatives of the intent to make such funds available for such 
activity.
  (b) Limitation on Amounts Transferred.--The amount that may be 
transferred from any account of an element of the Intelligence 
Community for any fiscal year may not exceed five percent of the 
aggregate portion of the National Foreign Intelligence Program budget 
of that element for that fiscal year.
  (c) Limitation on Transfer of Funds Available for Drug Interdiction 
or Counter-Drug Purposes.--None of the funds available to the Central 
Intelligence Agency for any fiscal year for drug interdiction and 
counter-drug activities may be transferred to any other department or 
agency of the United States except as specifically provided in an 
appropriations law.

SEC. 224. TRANSFER OF FUNDS OR PERSONNEL WITHIN THE NATIONAL FOREIGN 
                    INTELLIGENCE PROGRAM.

  (a) General Authority.--In addition to any other authorities 
available under law for such purposes, the Director of Central 
Intelligence, with the approval of the Director of the Office of 
Management and Budget, may transfer funds appropriated for a program 
within the National Foreign Intelligence Program to another such 
program and, in accordance with procedures to be developed by the 
Director and the heads of affected departments and agencies, may 
transfer personnel authorized for an element of the Intelligence 
Community to another such element for periods up to a year.
  (b) Conditions.--A transfer of funds or personnel may be made under 
this section only if--
          (1) the funds or personnel are being transferred to an 
        activity that is a higher priority intelligence activity;
          (2) the need for funds or personnel for such activity is 
        based on unforeseen requirements;
          (3) the transfer does not involve a transfer of funds to the 
        Reserve for Contingencies of the Director of Central 
        Intelligence; and
          (4) the transfer does not involve a transfer of funds or 
        personnel from the Federal Bureau of Investigation.
  (c) Availability of Transferred Funds.--Funds transferred under this 
subsection shall remain available for the same period as the 
appropriations account to which such funds are transferred.
  (d) Notification of Congress.--Any transfer of funds under this 
section shall be carried out in accordance with existing procedures 
applicable to reprogramming notifications for the appropriate 
congressional committees. Any proposed transfer for which notice is 
given to the appropriate congressional committees shall be accompanied 
by a report explaining the nature of the proposed transfer and how it 
satisfies the requirements of this subsection. In addition, the 
congressional intelligence committees shall be promptly notified of any 
transfer of funds made pursuant to this subsection in any case in which 
the transfer would not have otherwise required reprogramming 
notification under procedures in effect as of October 24, 1992.
  (e) Report on Personnel Transfers.--The Director shall promptly 
submit to the congressional intelligence committees and, in the case of 
the transfer of personnel to or from the Department of Defense, the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives, a report on any transfer of 
personnel made pursuant to this section. The Director shall include in 
any such report an explanation of the nature of the transfer and how it 
satisfies the requirements of this subsection.

SEC. 225. LIMITATION ON REPROGRAMMING.

  No funds made available under the National Foreign Intelligence 
Program may be reprogrammed by any element of the Intelligence 
Community without the prior approval of the Director of Central 
Intelligence except in accordance with procedures issued by the 
Director.

                         Subtitle C--Personnel

SEC. 231. USE OF PERSONNEL.

  The Director of Central Intelligence shall, in coordination with the 
heads of departments and agencies with elements in the Intelligence 
Community, institute policies and programs within the Intelligence 
Community--
          (1) to provide for the rotation of personnel between the 
        elements of the Intelligence Community, where appropriate, and 
        to make such rotated service a factor to be considered for 
        promotion to senior positions;
          (2) to consolidate, wherever possible, personnel, 
        administrative, and security programs to reduce the overall 
        costs of these activities within the Intelligence Community;
          (3) to ensure the maintenance of effective performance 
        evaluation systems with common standards throughout the 
        national Intelligence Community; and
          (4) to develop a community-wide career development program 
        that emphasizes corporate management skills.

SEC. 232. AUTHORITY TO TERMINATE EMPLOYMENT OF CERTAIN EMPLOYEES.

  (a) In General.--The Director of Central Intelligence may, in the 
Director's discretion, terminate the employment of any officer or 
employee of the Central Intelligence Agency or the Community Management 
Staff whenever the Director considers such termination to be necessary 
or advisable in the interests of the United States.
  (b) Other Employment in the Government.--Any such termination does 
not affect the right of the individual whose employment is so 
terminated to seek or accept employment in any other department or 
agency of the Government if declared eligible for such employment by 
the Office of Personnel Management.

SEC. 233. INTELLIGENCE COMMUNITY RESERVE.

  (a) Establishment.--The Director of Central Intelligence shall 
establish an Intelligence Community Reserve.
  (b) Members.--The Intelligence Community Reserve may consist of 
former or retired personnel of elements of the Intelligence Community 
(including individuals with expertise in all-source analysis and 
individuals who are linguists) and of other qualified individuals drawn 
from non-Intelligence Community sources, as determined by the Director 
of Central Intelligence. Each member of the Intelligence Community 
Reserve shall agree that, during any period of emergency (as determined 
by the Director), the member shall enter into or return to active 
civilian status within the Intelligence Community and shall perform 
such duties as the Director may assign.
  (c) Monetary Incentives.--In order to attract individuals to become 
members of the Intelligence Community Reserve, the Director, without 
regard to subchapter IV of chapter 55 of title 5, United States Code, 
may provide special monetary incentives to individuals eligible to 
become members of the Reserve who agree to become members of the 
Intelligence Community Reserve and to acquire or retain proficiency in 
such skills as the Director shall specify.
  (d) Training and Support.--In order to provide training and support 
for members of the Intelligence Community Reserve, the Director--
          (1) may pay all or part of the expenses related to the 
        training of individuals in the Intelligence Community Reserve; 
        and
          (2) may pay benefits and allowances in accordance with 
        chapters 57 and 59 of title 5, United States Code, to 
        individuals in the Intelligence Community Reserve who are 
        assigned to training at sites away from their homes or regular 
        places of business.
  (e) Service Agreements.--(1) The Director, before providing training 
under this section to any individual, may obtain an agreement with that 
individual that--
          (A) in the case of current employees, pertains to 
        continuation of service of the employee, and repayment of the 
        expenses of such training for failure to fulfill the agreement, 
        consistent with the provisions of section 4108 of title 5, 
        United States Code; and
          (B) in the case of individuals accepted for membership in the 
        Intelligence Community Reserve, pertains to return to service 
        when requested, and repayment of the expenses of such training 
        for failure to fulfill the agreement, consistent with the 
        provisions of section 4108 of title 5, United States Code.
  (2) The Director, under regulations prescribed under this section, 
may waive, in whole or in part, a right of recovery under an agreement 
made under this subsection if it is shown that the recovery would be 
against equity and good conscience or against the public interest.
  (f) Applicability of Voluntary Separation Pay Act.--(1) Participation 
in the Intelligence Community Reserve through the receipt of monetary 
incentives under subsection (c) does not constitute employment with the 
Government of the United States for purposes of the Central 
Intelligence Agency Voluntary Separation Pay Act (50 U.S.C. 403-4).
  (2) Performing service in an active duty status under subsection (d) 
does constitute employment with the Government of the United States for 
purposes of the Central Intelligence Agency Voluntary Separation Pay 
Act (50 U.S.C. 403-4), and the repayment requirement of section 2(b) of 
that Act applies unless waived in accordance with such section 2(b).

               Subtitle D--Infrastructure Support Office

SEC. 241. ESTABLISHMENT OF INFRASTRUCTURE SUPPORT OFFICE.

  (a) Establishment.--There is within the Intelligence Community the 
Infrastructure Support Office.
  (b) Director.--The Office shall be headed by a Director, who shall be 
appointed by the Director of Central Intelligence.

SEC. 242. RESPONSIBILITIES OF DIRECTOR OF THE INFRASTRUCTURE SUPPORT 
                    OFFICE.

  (a) In General.--Under the direction of the Deputy Director of 
Central Intelligence for Community Management, the Director of the 
Infrastructure Support Office shall be responsible for administrative 
and logistical functions relating to infrastructure and services of 
common concern to elements of the Intelligence Community. Such 
functions shall include the following:
          (1) Personnel management.
          (2) Security.
          (3) Community-level training.
          (4) Communications.
          (5) Automation.
          (6) Such additional functions as may be assigned by the 
        Director of Central Intelligence.
  (b) Automation Equipment.--The Director of the Infrastructure Support 
Office shall establish standards and information architectures for 
automation equipment throughout the Intelligence Community. The 
Director shall be responsible for life-cycle management, replacement, 
and upgrading of such equipment.
  (c) Coordination Among Elements of Intelligence Community.--The 
Director of Central Intelligence and the Secretary of Defense, as 
appropriate, shall require the head of each element of the Intelligence 
Community to report to the Director of the Infrastructure Support 
Office on those functions and activities that can be consolidated in 
the Infrastructure Support Office so as to achieve cost savings and 
efficiencies for the Intelligence Community as a whole.

           Subtitle E--Intelligence Community Administration

SEC. 251. SECRECY AGREEMENTS USED IN INTELLIGENCE ACTIVITIES.

  Notwithstanding any other provision of law not specifically 
referencing this section, a nondisclosure policy form or agreement that 
is to be executed by a person connected with the conduct of an 
intelligence or intelligence-related activity, other than an employee 
or officer of the United States Government, may contain provisions 
appropriate to the particular activity for which such document is to be 
used. Such form or agreement shall, at a minimum--
          (1) require that the person will not disclose any classified 
        information received in the course of such activity unless 
        specifically authorized to do so by the United States 
        Government; and
          (2) provide that the form or agreement does not bar--
                  (A) disclosures to Congress; or
                  (B) disclosures to an authorized official of an 
                executive agency that are considered essential to 
                reporting a violation of United States law.

SEC. 252. COORDINATION OF COUNTERINTELLIGENCE MATTERS WITH THE FEDERAL 
                    BUREAU OF INVESTIGATION.

  (a) Coordination by Other Agencies With FBI.--(1) The head of each 
department or agency within the executive branch shall ensure that the 
Director of the Federal Bureau of Investigation is informed immediately 
of any information, regardless of its origin, which indicates that 
classified information is being, or may have been, disclosed in an 
unauthorized manner to a foreign power or an agent of a foreign power.
  (2) Following the making of a report under paragraph (1), the head of 
the department or agency making the report shall ensure that the 
Director of the Federal Bureau of Investigation is consulted with 
respect to all subsequent actions that may be undertaken by the 
department or agency to determine the source of such unauthorized 
disclosure.
  (3) When, after appropriate consultation with the head of the 
department or agency concerned, the Director of the Federal Bureau of 
Investigation undertakes investigative activities to determine the 
source of the unauthorized disclosure, the head of the department or 
agency concerned shall ensure that the Director is given complete and 
timely access to the employees and records of that department or agency 
for purposes of such investigative activities.
  (b) Coordination by FBI With Other Agencies.--(1) The Director of the 
Federal Bureau of Investigation shall ensure that when the Bureau 
obtains espionage information pertaining to the personnel, operations, 
or information of another department or agency of the executive branch, 
such information is provided through appropriate channels to the head 
of that department or agency.
  (2) The Director shall ensure that when the Bureau undertakes an 
espionage investigation which involves the personnel, operations, or 
information of another department or agency of the executive branch 
after a report is provided pursuant to subsection (a)(1), the head of 
that department or agency is consulted with respect to that 
investigation.
  (c) Presidential Waiver Authority.--(1) When essential to meet 
extraordinary circumstances affecting vital national security interests 
of the United States as determined by the President, the President may, 
on a case-by-case basis, waive the requirements of subsection (a) or 
(b), as they apply to the head of a particular department or agency or 
to the Director of the Federal Bureau of Investigation.
  (2) Such a waiver shall be in writing and shall fully state the 
justification for the waiver.
  (3) Within 30 days after issuing such a waiver, the President shall 
notify the congressional intelligence committees that the waiver has 
been issued and, at that time or as soon thereafter as national 
security considerations permit, shall provide those committees with a 
complete explanation of the circumstances which necessitated the 
waiver.
  (d) Annual Report.--The Director of the Federal Bureau of 
Investigation shall, not later than February 1 of each year, submit to 
the congressional intelligence committees and, in accordance with 
applicable security procedures, the Committees on the Judiciary of the 
Senate and House of Representatives a report with respect to compliance 
with subsections (a) and (b) during the previous calendar year. Each 
such report shall be prepared in consultation with the Director of 
Central Intelligence and the Secretary of Defense.
  (e) Relationship to Department of Defense Authority Over Persons 
Subject to UCMJ.--Nothing in this section may be construed to--
          (1) alter the jurisdictional arrangements in effect as of 
        October 14, 1994, between the Federal Bureau of Investigation 
        and the Department of Defense with respect to investigations of 
        persons subject to the Uniform Code of Military Justice 
        (chapter 47 of title 10, United States Code); or
          (2) impose reporting requirements upon the Department of 
        Defense with respect to such investigations beyond those 
        required by law and executive branch policy as of October 14, 
        1994.
  (f) Definitions.--As used in this section, the terms ``foreign 
power'' and ``agent of a foreign power'' have the meanings set forth in 
sections 101(a) and 101(b), respectively, of the Foreign Intelligence 
Surveillance Act of 1978 (50 U.S.C. 1801).

SEC. 253. INTELLIGENCE COMMUNITY CONTRACTING.

  The Director of Central Intelligence shall direct that elements of 
the Intelligence Community, whenever compatible with the national 
security interests of the United States and consistent with the 
operational and security concerns related to the conduct of 
intelligence activities, and where fiscally sound, shall award 
contracts in a manner that would maximize the procurement of products 
in the United States.

               TITLE III--INTELLIGENCE COMMUNITY AGENCIES

                Subtitle A--Central Intelligence Agency

SEC. 301. CENTRAL INTELLIGENCE AGENCY.

  There is a Central Intelligence Agency. The Central Intelligence 
Agency is the principal all-source national intelligence analytical 
agency. The Director of Central Intelligence is the head of the Central 
Intelligence Agency.

SEC. 302. DUTIES OF DIRECTOR OF CENTRAL INTELLIGENCE WITH REGARD TO THE 
                    CENTRAL INTELLIGENCE AGENCY.

  The Director of Central Intelligence, as head of the Central 
Intelligence Agency, shall--
          (1) correlate and evaluate intelligence related to the 
        national security;
          (2) provide appropriate dissemination of such intelligence; 
        and
          (3) coordinate and manage all human intelligence activities 
        within the Intelligence Community.

SEC. 303. FUNCTIONS OF THE CENTRAL INTELLIGENCE AGENCY.

  The Director of Central Intelligence, as head of the Central 
Intelligence Agency, shall perform the following functions:
          (1) Analysis and production.--
                  (A) Correlating and evaluating intelligence related 
                to national security collected from all sources 
                available throughout the Intelligence Community and 
                facilitating appropriate dissemination of such 
                intelligence.
                  (B) Coordinating analyses conducted by the elements 
                of the Intelligence Community and establishing 
                procedures for collaborative all-source analysis.
                  (C) Producing national intelligence estimates.
                  (D) Managing the acquisition and incorporation of 
                all-source intelligence into the community all-source 
                analytical process.
          (2) Collection of intelligence through human sources.--
                  (A) Collecting national intelligence clandestinely 
                through human sources and by other appropriate means, 
                using the elements of the Intelligence Community 
                authorized to undertake such collection.
                  (B) Ensuring that the most effective use is made of 
                resources authorized for the purposes of subparagraph 
                (A) and minimizing the risks to the United States 
                inherent in clandestine collection operations.
                  (C) Managing the administrative and technical support 
                activities of the Intelligence Community necessary to 
                carrying out clandestine collection.
                  (D) Performing such other functions as the Director 
                of Central Intelligence may direct.

SEC. 304. AGREEMENT TO TRANSFER DOD CLANDESTINE HUMINT TO CIA.

  The Secretary of Defense shall enter into an agreement with the 
Director of Central Intelligence to transfer from the Secretary of 
Defense the responsibilities and authorities of the Secretary for the 
clandestine collection of intelligence by human sources conducted by 
the Defense Human Intelligence Service as of the date of the enactment 
of this Act.

        Subtitle B--The National Intelligence Evaluation Council

SEC. 321. NATIONAL INTELLIGENCE EVALUATION COUNCIL.

  (a) Establishment.--There is within the Intelligence Community the 
National Intelligence Evaluation Council.
  (b) Members.--The National Intelligence Evaluation Council shall be 
composed of senior analysts within the Intelligence Community and may 
include substantive experts from the public and private sector. Members 
of the Council shall be appointed by, report to, and serve at the 
pleasure of, the Director of Central Intelligence. The Director of 
Central Intelligence shall appoint the head of the Council from among 
its members, who shall report directly to the Director of Central 
Intelligence.
  (c) Security Requirements.--The Director of Central Intelligence 
shall prescribe appropriate security requirements for personnel 
appointed from the private sector as a condition of service on the 
Council to ensure the protection of intelligence sources and methods 
while avoiding, wherever possible, unduly intrusive requirements which 
the Director considers to be unnecessary for this purpose.

SEC. 322. FUNCTIONS OF THE NATIONAL INTELLIGENCE EVALUATION COUNCIL.

  The National Intelligence Evaluation Council shall evaluate 
Intelligence Community-wide collection and production of intelligence, 
as well as the requirements and resources for such collection and 
production. Such evaluation shall be performed in consultation with 
both Deputy Directors of Central Intelligence and with the Director of 
Military Intelligence.

SEC. 323. STAFFING OF THE NATIONAL INTELLIGENCE EVALUATION COUNCIL.

  The Director of Central Intelligence shall make available to the 
National Intelligence Evaluation Council such staff as may be necessary 
to permit the Council to carry out its responsibilities under this 
subtitle and shall take appropriate measures to ensure that the Council 
and its staff satisfy the needs of policymaking officials and other 
consumers of intelligence.

             Subtitle C--Future of Intelligence Collection

SEC. 331. PANEL ON THE FUTURE OF INTELLIGENCE COLLECTION.

  (a) Study.--The Director of Central Intelligence and the Secretary of 
Defense shall arrange for a study to be conducted on the future of 
intelligence collection, in terms of managing collection resources in a 
more consolidated, synergistic 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.
          (4) Establishing a single agency for collection and 
        processing of imagery and geospatial information. This should 
        be examined as both a stand-alone agency and as a subset of the 
        agency described in paragraph (2). Specifically, the study 
        should evaluate the substantive advantages and disadvantages of 
        consolidating imagery collection into an overall collection 
        agency.
  (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 (4) 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 (4) 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) Panel Members.--
          (1) Selection.--The Director of Central Intelligence and the 
        Secretary of Defense, jointly, shall select individuals for 
        membership on a panel to conduct the study under subsection (a) 
        who are--
                  (A) current and former members of the Intelligence 
                Community and senior policy makers who are 
                knowledgeable about a diverse range of intelligence 
                requirements; and
                  (B) such other public or private individuals as the 
                Director and the Secretary deem appropriate.
          (2) Balance.--Membership on the panel shall be balanced in 
        terms of technical and operational knowledge and views so as to 
        ensure the objectivity of the panel's report.
          (3) Director.--The Director of Central Intelligence shall 
        appoint a director of the panel from among its members. The 
        director of the panel may create such sub-panels as the 
        director deems appropriate.
  (d) Report.--No later than April 15, 1997, the panel shall submit a 
report of the study to the Director of Central Intelligence, who shall 
forward the report to the President, the Secretary of Defense, and to 
the congressional intelligence committees.

TITLE IV--DEPARTMENT OF DEFENSE FUNCTIONS IN THE INTELLIGENCE COMMUNITY

                    Subtitle A--Secretary of Defense

SEC. 401. OVERALL SECRETARY OF DEFENSE FUNCTIONS.

  The Secretary of Defense shall perform such intelligence functions as 
may be directed by the President by Executive order or otherwise.

SEC. 402. REQUIREMENT THAT BUDGETS FOR INTELLIGENCE COMPONENTS BE 
                    ADEQUATE.

  The Secretary of Defense shall ensure that the budgets of the 
elements of the Intelligence Community within the Department of Defense 
for any fiscal year are adequate to satisfy the overall intelligence 
needs of the Department of Defense, including--
          (1) the needs of the chairman of the Joint Chiefs of Staff;
          (2) the needs of the commanders of the unified and specified 
        commands; and
          (3) the needs of other departments and agencies, as 
        appropriate.

SEC. 403. IMPLEMENTATION OF DIRECTOR OF CENTRAL INTELLIGENCE POLICIES 
                    AND RESOURCE DECISIONS.

  The Secretary of Defense shall ensure appropriate implementation of 
the policies and resource decisions of the Director of Central 
Intelligence by elements of the Department of Defense within the 
National Foreign Intelligence Program.

SEC. 404. RELATIONSHIP OF NFIP ACTIVITIES TO TACTICAL INTELLIGENCE 
                    ACTIVITIES.

  The Secretary of Defense shall ensure that the tactical intelligence 
activities of the Department of Defense complement, and are compatible 
with, intelligence activities under the National Foreign Intelligence 
Program. The Secretary shall carry out this section through the 
Director of Military Intelligence.

SEC. 405. RESPONSIVENESS TO OPERATIONAL MILITARY FORCES.

  The Secretary of Defense shall ensure that the elements of the 
Intelligence Community within the Department of Defense are responsive 
and timely with respect to satisfying the needs of operational military 
forces.

SEC. 406. ELIMINATION OF WASTE AND UNNECESSARY DUPLICATION.

  The Secretary of Defense shall eliminate waste and unnecessary 
duplication among the intelligence activities of the Department of 
Defense.

SEC. 407. JOINT AND CORPORATE CONDUCT OF DEFENSE INTELLIGENCE 
                    ACTIVITIES.

  The Secretary of Defense shall ensure that, when appropriate, 
intelligence activities of the Department of Defense are conducted (1) 
jointly, and (2) cooperatively with elements of the Intelligence 
Community outside the Department of Defense.

SEC. 408. SIGNALS INTELLIGENCE ACTIVITIES.

  The Secretary of Defense shall ensure through the National Security 
Agency (except as otherwise directed by the President or the National 
Security Council), the continued operation of an effective unified 
organization for the conduct of signals intelligence activities and 
shall ensure that the product is disseminated in a timely manner to 
authorized recipients.

SEC. 409. IMAGERY COLLECTION, PROCESSING, AND EXPLOITATION.

  The Secretary of Defense shall ensure through the Central Imagery 
Office (except as otherwise directed by the President or the National 
Security Council), with appropriate representation from the 
Intelligence Community, the continued operation of an effective unified 
organization within the Department of Defense for carrying out tasking 
of imagery collection, for the coordination of imagery processing and 
exploitation activities, and for ensuring the dissemination of imagery 
in a timely manner to authorized recipients.

SEC. 410. OVERHEAD RECONNAISSANCE SYSTEMS.

  The Secretary of Defense shall ensure through the National 
Reconnaissance Office (except as otherwise directed by the President or 
the National Security Council), the continued operation of an effective 
unified organization for the research and development, acquisition, and 
operation of overhead reconnaissance systems necessary to satisfy the 
requirements of all elements of the Intelligence Community.

SEC. 411. USE OF ELEMENTS OF DEPARTMENT OF DEFENSE.

  The Secretary of Defense, in carrying out the functions of the 
Secretary under this Act, may use such elements of the Department of 
Defense as may be appropriate for the execution of those functions, in 
addition to, or in lieu of, the elements specifically identified in 
this Act for the performance of those functions.

SEC. 412. CONSULTATIONS REGARDING APPOINTMENT OF CERTAIN INTELLIGENCE 
                    OFFICIALS.

  (a) In General.--Section 201 of title 10, United States Code, is 
amended to read as follows:

``Sec. 201. Consultation regarding appointment of heads of certain 
                    intelligence components

  ``(a) Consultations With Regard to Directors of NSA and NRO.--Before 
submitting a recommendation to the President regarding the appointment 
of an individual to the position of Director of the National Security 
Agency or Director of the National Reconnaissance Office, the Secretary 
of Defense shall consult with the Director of Central Intelligence 
regarding the recommendation.
  ``(b) Appointment of Head of Central Imagery Office.--The Secretary 
shall appoint, upon the recommendation of the Director of Central 
Intelligence, the head of the Central Imagery Office within the 
Department of Defense.''.
  (b) Clerical Amendment.--The item relating to section 201 in the 
table of sections at the beginning of subchapter II of chapter 8 of 
such title is amended to read as follows:

``201. Consultation regarding appointment of heads of certain 
intelligence components.''.

             Subtitle B--Director of Military Intelligence

SEC. 421. DIRECTOR OF MILITARY INTELLIGENCE.

  (a) Establishment of Position.--There is a Director of Military 
Intelligence, appointed by the President, by and with the advice and 
consent of the Senate, from the officers of the regular components of 
the Armed Forces on active duty. The Director, while so serving, holds 
the grade of lieutenant general or vice admiral.
  (b) Nomination.--A recommendation by the Secretary of Defense to the 
President for appointment of an officer as Director of Military 
Intelligence may be made only after consultation with the Director of 
Central Intelligence.

SEC. 422. FUNCTIONS OF THE DIRECTOR OF MILITARY INTELLIGENCE.

  (a) Senior Military Intelligence Adviser.--The Director of Military 
Intelligence is the senior military intelligence adviser to the 
Secretary of Defense.
  (b) Director of DIA.--The Director of Military Intelligence is the 
Director of the Defense Intelligence Agency.
  (c) Program Manager for JMIP.--The Director of Military Intelligence 
is the program manager for the Joint Military Intelligence Program (or 
any successor program).
  (d) Program Coordinator for TIARA.--The Director of Military 
Intelligence is the program coordinator for the activities in the 
Department of Defense known as Tactical Intelligence and Related 
Activities (TIARA).

SEC. 423. ROLE OF DIRECTOR OF MILITARY INTELLIGENCE IN THE INTELLIGENCE 
                    COMMUNITY.

  (a) National Intelligence.--The Director of Military Intelligence, as 
director of the Defense Intelligence Agency, is accountable to the 
Director of Central Intelligence in matters relative to the collection 
and prosecution of national intelligence.
  (b) Intelligence Requirements of the Secretary of Defense and the 
Joint Chiefs of Staff.--The Director of Military Intelligence shall be 
responsible for ensuring that the intelligence requirements of the 
Secretary of Defense and the Joint Chiefs of Staff are met.

SEC. 424. PLANNING AND BUDGET FUNCTIONS.

  (a) JMIP Responsibility.--The Director of Military Intelligence is 
responsible within the Department of Defense for development and 
submission of the Joint Military Intelligence Program for any fiscal 
year.
  (b) TIARA Responsibility.--The Director is responsible within the 
Department of Defense for coordination of the development and 
submission of the budget for any fiscal year for programs, projects, 
and activities included within Tactical Intelligence and Related 
Activities.
  (c) Overall Budget Coordination.--The Director is the central point 
of contact in the Department of Defense for budget coordination with 
the Deputy Director of Central Intelligence for Community Management 
relating to the development and submission of the National Foreign 
Intelligence Program for any fiscal year.

SEC. 425. STAFF.

  The Director of Military Intelligence shall have a staff sufficient 
to enable the Director to carry out the functions of the Director, 
including responsibilities with respect to budget development, 
planning, programming, and coordination. The Director shall ensure that 
the staff acts in a coordinated and corporate way with the Community 
Management Staff and the Infrastructure Support Office.

                Subtitle C--Defense Intelligence Agency

SEC. 441. DEFENSE INTELLIGENCE AGENCY GENERALLY.

  (a) In General.--There is within the Department of Defense a Defense 
Agency designated as the Defense Intelligence Agency. The Director of 
Military Intelligence is the head of the Defense Intelligence Agency.
  (b) Supervision.--The Director of Military Intelligence shall carry 
out the Director's responsibilities as head of the Defense Intelligence 
Agency under the direction of the Secretary of Defense and subject to 
the authority and guidance of the Director of Central Intelligence for 
those activities that support national intelligence requirements.

SEC. 442. FUNCTIONS OF THE DEFENSE INTELLIGENCE AGENCY.

  (a) Production.--The Director of Military Intelligence, in the 
Director's capacity as head of the Defense Intelligence Agency, shall 
produce timely, objective military and military-related intelligence, 
independent of political considerations or bias and based upon all 
sources available to the Intelligence Community.
  (b) Dissemination of Intelligence.--The Director shall ensure the 
appropriate dissemination of intelligence produced pursuant to 
subsection (a) to authorized recipients.
  (c) Management of Joint Intelligence Center.--The Director shall 
manage the Joint Intelligence Center as provided by section 923 of 
Public Law 102-190 (10 U.S.C. 201 note; 105 Stat. 1453).
  (d) Coordination.--The Director shall coordinate the exercise 
pursuant to section 924 of Public Law 102-190 (10 U.S.C. 113 note; 105 
Stat. 1454) of national intelligence collections systems and 
exploitation organizations that would be used to provide intelligence 
support, including support of the combatant commands, during a crisis 
or conflict.
  (e) Defense Attache System.--The Director shall manage the Defense 
Attache system.
  (f) Additional Functions.--The Director shall perform such additional 
services of common concern to the intelligence elements of the 
Department of Defense as the Secretary of Defense determines can be 
more efficiently accomplished centrally.

                  Subtitle D--The Military Departments

SEC. 451. INTELLIGENCE CAPABILITIES OF THE MILITARY DEPARTMENTS.

  (a) Requirement for Maintenance of Capabilities.--Under the direction 
of the Secretary of Defense, the Secretaries of the military 
departments shall maintain sufficient capabilities to collect and 
produce intelligence to meet--
          (1) the requirements of the Director of Central Intelligence;
          (2) the requirements of the Secretary of Defense or the 
        Chairman of the Joint Chiefs of Staff; and
          (3) the specialized requirements of the military departments 
        for intelligence necessary to support--
                  (A) tactical commanders;
                  (B) military planners;
                  (C) the research and development process;
                  (D) the acquisition of military equipment; and
                  (E) training and doctrine.
  (b) Level and Form of Capabilities To Be Maintained.--The Secretaries 
of the military departments shall ensure that the capabilities 
maintained pursuant to subsection (a) do not exceed that which is 
necessary to satisfy the requirements of their respective departments. 
To the extent feasible, the Secretaries shall provide for such 
capabilities to be maintained jointly and in the most efficient and 
cost-effective form.

                   Subtitle E--Planning and Budgeting

SEC. 461. JOINT MILITARY INTELLIGENCE PROGRAM.

  (a) In General.--The Joint Military Intelligence Program consists of 
those programs, projects, and activities of the Department of Defense 
that are intended to provide intelligence, surveillance, and 
reconnaissance capabilities that support multiple defense-wide or joint 
theater-level consumers.
  (b) Components.--The Joint Military Intelligence Program includes the 
programs, projects, and activities that as of the date of the enactment 
of this Act are designated as follows:
          (1) The Defense Imagery Program.
          (2) The Defense Cryptologic Program.
          (3) The Defense Mapping, Charting, and Geodesy Program.
          (4) The Defense General Intelligence Applications Program, 
        including--
                  (A) the Defense Airborne Reconnaissance Program;
                  (B) the Defense Space Reconnaissance Program;
                  (C) the Defense Intelligence Counterdrug Program;
                  (D) the Defense Intelligence Tactical Program; and
                  (E) the Defense Intelligence Special Technologies 
                Program.
  (c) Additional Components.--The Joint Military Intelligence Program 
includes such additional programs, projects, and activities as are 
specified by law or are designated by the Secretary of Defense.

SEC. 462. TACTICAL INTELLIGENCE AND RELATED ACTIVITIES (TIARA).

  (a) In General.--The set of programs, projects, and activities in the 
Department of Defense referred to as Tactical Intelligence and Related 
Activities are those programs, projects, and activities of the 
Department of Defense that--
          (1) provide intelligence, surveillance, and reconnaissance 
        capabilities that are unique to one of the military services; 
        and
          (2) are part of a force structure organic to one of the 
        military services at the component level and below.
  (b) Included Personnel Activities.--Those activities include 
activities that train personnel for intelligence duties or provide an 
intelligence reserve.
  (c) Certain Weapons Targeting Programs Excluded.--Those activities do 
not include programs that are so closely integrated with a weapons 
system that their primary function is to provide immediate-use 
targeting data.

SEC. 463. NOTICE TO CONGRESS OF CHANGES IN JMIP AND TIARA.

  The Secretary of Defense may not add to or remove program elements 
from (other than a change provided by law) the Joint Military 
Intelligence Program or the Tactical Intelligence and Related 
Activities aggregation for any fiscal year unless the Secretary 
included notice of the proposed change with the budget justification 
materials submitted to the congressional intelligence committees for 
the preceding fiscal year. The Secretary shall include with any such 
notice a statement providing an explanation and justification for the 
proposed change.

           Subtitle F--Civilian Intelligence Personnel Policy

SEC. 481. STANDARDIZATION OF PERSONNEL POLICIES FOR INTELLIGENCE 
                    COMPONENTS OF DEPARTMENT OF DEFENSE

  (a) Consolidation and Standardization.--Chapter 83 of title 10, 
United States Code, is amended--
          (1) by redesignating section 1602 as section 1607 and 
        transferring that section so as to appear after section 1606; 
        and
          (2) by striking out sections 1601, 1603, and 1604 and 
        inserting in lieu thereof the following:

``Sec. 1601. Management of civilian intelligence personnel

  ``(a) General Personnel Authority.--The Secretary of Defense may, 
without regard to the provisions of any other law relating to the 
appointment, number, classification, or compensation of employees--
          ``(1) establish such excepted service positions, including 
        positions in the Intelligence Senior Executive Service and 
        positions that may be designated as Intelligence Senior Level 
        positions under section 1602(c) of this title, for civilian 
        intelligence officers and employees of the intelligence 
        components of the Department of Defense as may be necessary to 
        carry out the intelligence functions of such components;
          ``(2) appoint individuals to such positions with appropriate 
        consideration of veterans' preference; and
          ``(3) fix the compensation of such individuals for service in 
        such positions.
  ``(b) Authority To Fix Rates of Basic Pay, Other Allowances and 
Benefits.--(1) The Secretary of Defense shall, subject to subsection 
(c), fix the rates of basic pay for positions established under this 
section in relation to the rates of basic pay provided in subpart D of 
part III of title 5, for positions subject to that title which have 
corresponding levels of duties and responsibilities. Except as 
otherwise provided by law, a civilian intelligence employee of an 
intelligence component of the Department of Defense, including an 
Intelligence Senior Level employee or a member of the Intelligence 
Senior Executive Service, may not be paid basic pay in excess of the 
maximum rate payable under section 5306(e), section 5376, or section 
5382 of title 5, respectively.
  ``(2) The Secretary of Defense may provide civilian employees of the 
intelligence components of the Department of Defense compensation (in 
addition to basic pay) including benefits, incentives, and allowances 
consistent with, and not in excess of the level authorized for, 
comparable positions authorized by title 5.
  ``(c) Prevailing Rate Systems.--The Secretary of Defense may, 
consistent with section 5341 of title 5, adopt such provisions of that 
title as provide for prevailing rate systems of basic pay and may apply 
those provisions to positions for civilian employees in or under which 
the Department may employ individuals described by section 
5342(a)(2)(A) of such title.
  ``(d) Allowances Based on Living Costs and Environment.--(1) In 
addition to the basic pay payable under subsection (b), civilian 
intelligence officers and employees of the intelligence components of 
the Department of Defense who are citizens or nationals of the United 
States and are stationed outside the continental United States or in 
Alaska may be paid allowances, in accordance with regulations 
prescribed by the Secretary of Defense, at a rate not in excess of the 
allowance authorized to be paid by section 5941(a) of title 5 for 
employees whose rates of basic pay are fixed by statute.
  ``(2) Such allowances shall be based on--
          ``(A) living costs substantially higher than in the District 
        of Columbia;
          ``(B) conditions of environment which differ substantially 
        from conditions of environment in the continental United States 
        and warrant an allowance as a recruitment incentive; or
          ``(C) both of the factors specified in subparagraphs (A) and 
        (B).

``Sec. 1602. Intelligence Senior Executive Service

  ``(a) Intelligence Senior Executive Service.--With regard to any 
positions equivalent to the Senior Executive Service which may be 
established pursuant to section 1601 of this title, the Secretary of 
Defense shall prescribe regulations which are consistent with the 
requirements set forth in sections 3131, 3132(a)(2), 3396(c), 3592, 
3595(a), 5384, and 6304 of title 5 and subsections (a), (b), and (c) of 
section 7543 of title 5 (except that any hearing or appeal shall be 
held or decided pursuant to regulations issued by the Secretary). To 
the extent practicable, the Secretary shall also prescribe regulations 
to implement such other provisions of title 5 as apply to members of 
the Senior Executive Service or to individuals applying for positions 
in the Senior Executive Service.
  ``(b) Award of Rank to Members of the Intelligence Senior Executive 
Service.--The President, based on the recommendations of the Secretary 
of Defense, may award a rank referred to in section 4507 of title 5 to 
members of the Intelligence Senior Executive Service whose positions 
may be established pursuant to this section. The awarding of such rank 
shall be made in a manner consistent with the provisions of that 
section.
  ``(c) Intelligence Senior Level Positions.--In carrying out section 
1601(a) of this title, the Secretary of Defense may designate positions 
as Intelligence Senior Level positions. Positions which may be so 
designated are those which require functional expertise and advisory 
capacity, but do not have the organizational or program management 
functions necessary for inclusion in the Intelligence Senior Executive 
Service. Before designating any such position, the Secretary shall 
prescribe regulations to implement this subsection.

``Sec. 1603. Administrative provisions

  ``(a) Time Limited Appointments.--(1) The Secretary of Defense may by 
regulation authorize the use of time-limited appointments when hiring 
and appointing an employee to certain prescribed positions within an 
intelligence component of the Department of Defense. An employee who 
has a time-limited appointment is not eligible for conversion to a 
permanent Intelligence Senior Executive Service position without 
competition.
  ``(2) In this subsection, the term `time-limited appointment' means 
an appointment to a position within an intelligence component of the 
Department of Defense for a period not to exceed five years.
  ``(b) Termination of Civilian Intelligence Employees.--(1) 
Notwithstanding any other provision of law, the Secretary of Defense 
may terminate the employment of any civilian intelligence officer or 
employee of an intelligence component of the Department of Defense if 
the Secretary--
          ``(A) considers that action to be in the interests of the 
        United States; and
          ``(B) determines that the procedures prescribed in other 
        provisions of law that authorize the termination of the 
        employment of such officer or employee cannot be invoked in a 
        manner consistent with national security.
  ``(2) A decision by the Secretary under this subsection is final and 
may not be appealed or reviewed outside the Department of Defense.
  ``(3) The Secretary of Defense shall promptly notify the Permanent 
Select Committee on Intelligence of the House of Representatives and 
the Select Committee on Intelligence of the Senate whenever the 
Secretary terminates the employment of any officer or employ under the 
authority of this section.
  ``(4) Any termination of employment under this subsection does not 
affect the right of the officer or employee involved to seek or accept 
employment with any other department or agency of the United States if 
that officer or employee is declared eligible for such employment by 
the Director of the Office of Personnel Management.
  ``(5) The authority of the Secretary of Defense under this subsection 
may be delegated only to the Deputy Secretary of Defense or (with 
respect to officers and employees under their respective jurisdictions) 
the heads of the intelligence components of the Department of Defense. 
An action to terminate employment of any civilian intelligence officer 
or employee of the Department by any such officer may be appealed to 
the Secretary of Defense.
  ``(c) Adjustment in Force.--(1) Notwithstanding sections 3501(b) and 
3502 of title 5 and subject to paragraph (2), the Secretary of Defense 
may prescribe regulations for the separation of civilian employees of 
the intelligence components of the Department of Defense including 
members of the Intelligence Senior Executive Service and employees 
assigned to Intelligence Senior Level positions, in an adjustment in 
force which give effect to--
          ``(A) performance;
          ``(B) tenure of employment;
          ``(C) length of service as computed under section 3502(a) 
        (A), (B), and (C) of title 5; and
          ``(D) veterans' preference, subject to sections 3501(a)(3) 
        and 3502(b) of title 5.
  ``(2) An adjustment in force in the Intelligence Senior Executive 
Service shall be consistent with section 3595(a) of title 5.
  ``(3) The regulations prescribed under paragraph (1) shall include 
provisions for appeal rights within the Department in lieu of the 
provisions of any other law or regulations for all employees affected 
by actions under this subsection.
  ``(d) Notification of Congress.--The Secretary of Defense shall 
notify Congress of any regulations prescribed to carry out this section 
or section 1601 or 1602 of this title. Such notice shall be provided by 
submitting a copy of the regulations to the Permanent Select Committee 
on Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate at least 60 days before such 
regulations take effect.

``Sec. 1604. Intelligence components of the Department of Defense 
                    defined

  ``In this chapter, the term `intelligence component of the Department 
of Defense' means any of the following:
          ``(1) The National Security Agency.
          ``(2) The Defense Intelligence Agency.
          ``(3) The Central Imagery Office.
          ``(4) The National Reconnaissance Office.
          ``(5) The intelligence components of the military 
        departments.
          ``(6) Any other intelligence component of the Department of 
        Defense so designated by the Secretary of Defense.
          ``(7) Any successor to any such agency or office.''.
  (b) Repeal of Superseded Provisions.--The following provisions of law 
are repealed:
          (1) Section 1590 of title 10, United States Code.
          (2) Section 303 of the Internal Security Act of 1950 (50 
        U.S.C. 833).
  (c) Clerical Amendments.--(1)(A) The heading of chapter 83 of title 
10, United States Code, is amended to read as follows:

        ``CHAPTER 83--DEFENSE INTELLIGENCE CIVILIAN PERSONNEL''.

  (B) The items relating to such chapter in the tables of chapters at 
the beginning of subtitle A, and at the beginning of part II of 
subtitle A, of such title are amended by striking out ``Agency and 
Central Imagery Office''.
  (2) The table of sections at the beginning of chapter 81 of such 
title is amended by striking out the item relating to section 1590.
  (3) The table of sections at the beginning of chapter 83 of such 
title is amended--
          (A) by striking out the items relating to sections 1601, 
        1602, 1603, and 1604 and inserting in lieu thereof the 
        following:

``1601. Management of civilian intelligence personnel.
``1602. Intelligence Senior Executive Service.
``1603. Administrative provisions.
``1604. Intelligence components of the Department of Defense 
defined.''; and

          (B) by inserting after the item relating to section 1606 the 
        following new item:

``1607. Merit pay system: Defense Intelligence Agency and Central 
Imagery Office.''.

  (3) The heading of section 1607, as transferred and redesignated by 
subsection (a), is amended to read as follows:

``Sec. 1607. Merit pay system: Defense Intelligence Agency and Central 
                    Imagery Office''.

SEC. 482. TEMPORARY PROGRAM FOR CIVILIAN WORKFORCE REDUCTION IN THE 
                    NATIONAL SECURITY AGENCY.

  (a) Voluntary Early Retirement Program.--The Secretary of Defense may 
authorize the Director of the National Security Agency to permit 
eligible employees to retire early from service voluntarily by 
obtaining a lump-sum payment representing the present value of the 2 
percent per annum early retirement penalty provided in section 8339(h) 
of title 5, United States Code.
  (b) Conditions for Payment.--Under the program, the payment may be 
offered only--
          (1) with the prior consent, or on the authority, of the 
        Secretary of Defense;
          (2) to employees of the National Security Agency;
          (3) to employees within such occupational groups or 
        geographic locations, or subject to such other similar 
        limitations or conditions as the Director of the National 
        Security Agency may require; and
          (4) for a period not to exceed 90 consecutive days during the 
        period from October 1, 1996, to September 30, 1997.
  (c) Terms of Payment.--Such payment shall--
          (1) be paid in a lump sum;
          (2) be equal to the present value of the total reduction in 
        the annuity pursuant to section 8339(h) of title 5, United 
        States Code, as calculated using appropriate present value 
        factors supplied by the Director of the Office of Personnel 
        Management;
          (3) not be a basis for payment, and not be included in the 
        computation, of any other type of Government benefit;
          (4) not be provided to employees who elect to receive 
        separation pay under section 5597 of title 5, United States 
        Code; and
          (5) be subject to the availability of appropriations pursuant 
        to subsection (e).
  (d) Repayment Upon Reemployment by the United States.--(1) An 
individual who has received a payment under this section and 
subsequently accepts employment with the United States shall be 
required to repay, before the individual's first day of employment, the 
entire amount of the lump-sum payment to the National Security Agency.
  (2) For the purpose of this section, the term ``employment'' 
includes--
          (A) employment of any length or under any type of 
        appointment, but does not include employment that is without 
        compensation; and
          (B) employment under a personal services contract, as defined 
        in the Federal Procurement Regulations.
  (e) Source of Payment.--(1) A lump-sum payment under this section may 
be paid by the Director of the National Security Agency only out of 
appropriations available to the National Security Agency for salaries 
and expenses.
  (2) Funds authorized to be appropriated for operation and maintenance 
for the National Security Agency in the Intelligence Authorization Act 
for Fiscal Year 1997 are authorized to be made available for lump sum 
payments under this section.
  (f) Definition.--For purposes of this section, the term ``employee'' 
means an individual who on the date of the enactment of this Act is an 
employee of the National Security Agency, serving under an appointment 
without time limitation, who has been employed as of that date for a 
period of at least 60 months, and who is in the Civil Service 
Retirement System and is eligible for an annuity under section 
8336(d)(2) of title 5, United States Code. Such term does not include--
          (1) a reemployed annuitant under subchapter III of chapter 83 
        of such title; or
          (2) an employee having a disability on the basis of which 
        such employee is or would be eligible for disability retirement 
        under chapter 83 of such title.

  TITLE V--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

SEC. 501. RECODIFICATION OF LAWS RELATING TO NATIONAL SECURITY COUNCIL 
                    AND RELATED BOARDS AND COMMITTEES IN EXECUTIVE 
                    OFFICE OF THE PRESIDENT.

  Title I of the National Security Act of 1947 is amended by striking 
out the title heading and sections 101 through 107 and inserting in 
lieu thereof the following:

 ``TITLE I--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

``SEC. 101. NATIONAL SECURITY COUNCIL.

  ``(a) In General.--There is in the Executive Office of the President 
the National Security Council. The Council is composed of the 
following:
          ``(1) The President.
          ``(2) The Vice President.
          ``(3) The Secretary of State.
          ``(4) The Secretary of Defense.
  ``(b) Additional Participants.--Subject to the direction of the 
President, the following officers may attend and participate in 
meetings of the National Security Council:
          ``(1) Director of central intelligence.--The Director of 
        Central Intelligence (or, in the Director's absence, a Deputy 
        Director of Central Intelligence), in the performance of the 
        Director's duties under this Act and the Intelligence Community 
        Act.
          ``(2) Chairman of the joint chiefs of staff.--The Chairman 
        (or, in the Chairman's absence, the Vice Chairman) of the Joint 
        Chiefs of Staff, in the Chairman's role as principal military 
        adviser to the National Security Council.
          ``(3) Director of national drug control policy.--The Director 
        of National Drug Control Policy, in the Director's role as 
        principal adviser to the National Security Council on national 
        drug control policy, but only through the date specified in 
        section 1009 of the National Narcotics Leadership Act of 1988 
        (21 U.S.C. 1506).
          ``(4) Others designated by the president.--Such additional 
        officers as may be designated by the President.
  ``(c) Functions.--The function of the Council shall be to advise the 
President with respect to the integration of domestic, foreign, and 
military policies relating to the national security so as to enable the 
military services and the other departments and agencies of the 
Government to cooperate more effectively in matters involving the 
national security. In addition to performing such other functions as 
the President may direct, the Council (subject to the direction of the 
President) shall, for the purpose of more effectively coordinating the 
policies and functions of the departments and agencies of the 
Government relating to the national security--
          ``(1) assess and appraise the objectives, commitments, and 
        risks of the United States in relation to our actual and 
        potential military power, in the interest of national security, 
        for the purpose of making recommendations to the President in 
        connection therewith; and
          ``(2) consider policies on matters of common interest to the 
        departments and agencies of the Government concerned with the 
        national security and make recommendations to the President in 
        connection therewith.
  ``(d) Recommendations and Reports.--The Council shall, from time to 
time, make such recommendations and such other reports to the President 
as it considers appropriate or as the President may require.
  ``(e) Staff.--The Council shall have a staff to be headed by a 
civilian executive secretary who shall be appointed by the President. 
The executive secretary, subject to the direction of the Council, may 
subject to the civil-service laws, appoint and fix the compensation of 
such personnel as may be necessary to perform such duties as may be 
prescribed by the Council in connection with the performance of its 
functions.

``SEC. 104. BOARD FOR LOW INTENSITY CONFLICT.

  ``(a) Establishment of Board.--The President shall establish within 
the National Security Council a board to be known as the `Board for Low 
Intensity Conflict'.
  ``(b) Function.--The principal function of the board shall be to 
coordinate the policies of the United States for low intensity 
conflict.

``SEC. 105. NATIONAL COUNTERINTELLIGENCE POLICY BOARD.

  ``(a) Establishment of Board.--There is within the executive branch 
of the Government a National Counterintelligence Policy Board. The 
Board shall report to the President through the National Security 
Council.
  ``(b) Function of the Board.--The Board shall serve as the principal 
mechanism for--
          ``(1) developing policies and procedures for the approval of 
        the President to govern the conduct of counterintelligence 
        activities; and
          ``(2) resolving conflicts, as directed by the President, 
        which may arise between elements of the Government which carry 
        out such activities.''.

SEC. 502. COMMITTEE ON FOREIGN INTELLIGENCE.

  Title I of the National Security Act of 1947, as amended by section 
501, is further amended by inserting after section 101 the following 
new section 102:

``SEC. 102. COMMITTEE ON FOREIGN INTELLIGENCE.

  ``(a) Establishment of Committee.--There is established within the 
National Security Council a Committee on Foreign Intelligence. The 
Committee shall be composed of the following:
          ``(1) The Assistant to the President for National Security 
        Affairs, who shall serve as chairman of the Committee.
          ``(2) The following officers or their respective deputies:
                  ``(A) The Director of Central Intelligence.
                  ``(B) The Secretary of State.
                  ``(C) The Secretary of Defense.
                  ``(D) The Attorney General.
                  ``(E) The Chairman of the Joint Chiefs of Staff.
          ``(3) Such other members as the President may designate.
  ``(b) Function.--The function of the Committee on Foreign 
Intelligence shall be--
          ``(1) to establish, consistent with the policy and objectives 
        of the President, the overall requirements and priorities for 
        the Intelligence Community; and
          ``(2) to assess regularly, on behalf of the President, how 
        effectively the Intelligence Community has performed its 
        responsibilities under this Act and the Intelligence Community 
        Act.
  ``(c) Semiannual Strategic Intelligence Review Process With 
Congress.--Not less often than every six months, the Committee on 
Foreign Intelligence shall convene a meeting with the members of the 
congressional intelligence committees to conduct a comprehensive, 
global strategic intelligence review. Each semiannual meeting shall 
review significant strategic intelligence trends, strategic 
intelligence reporting, and anticipated Intelligence Community 
requirements for the following six to twelve months.''.

SEC. 503. TRANSNATIONAL THREATS.

  Title I of the National Security Act of 1947, as amended by sections 
501 and 502, is further amended by inserting after section 102 the 
following new section 103:

``SEC. 103. COMMITTEE ON TRANSNATIONAL THREATS.

  ``(a) Establishment.--There is established within the National 
Security Council a Committee on Transnational Threats. The Committee 
shall be composed of the following:
          ``(1) The Assistant to the President for National Security 
        Affairs, who shall serve as chairman of the Committee.
          ``(2) The following officers or their respective deputies:
                  ``(A) The Director of Central Intelligence.
                  ``(B) The Secretary of State.
                  ``(C) The Secretary of Defense.
                  ``(D) The Attorney General.
          ``(3) Such other members as the President may designate.
  ``(b) Function.--The function of the Committee on Transnational 
Threats shall be to coordinate and direct the activities of the United 
States Government relating to combating transnational threats. In 
carrying out its function, the Committee shall--
          ``(1) identify transnational threats;
          ``(2) develop strategies to enable the United States 
        Government to respond to transnational threats identified under 
        paragraph (1);
          ``(3) monitor implementation of such strategies;
          ``(4) make recommendations as to appropriate responses to 
        specific transnational threats;
          ``(5) assist in the resolution of operational and policy 
        differences among Federal departments and agencies in their 
        responses to transnational threats;
          ``(6) 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
          ``(7) develop guidelines to enhance and improve the 
        coordination of Federal law enforcement activities overseas.
  ``(c) Definition of transnational threat.--For purposes of this 
section, the term `transnational threat' means the following:
          ``(1) 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.
          ``(2) Any individual or group that engages in an activity 
        referred to in paragraph (1).''.

    TITLE VI--TECHNICAL AND CONFORMING AMENDMENTS AND EFFECTIVE DATE

SEC. 601. RESTATEMENT OF NATIONAL SECURITY AGENCY ACT OF 1959.

  The National Security Agency Act of 1959 (50 U.S.C. 402 note) is 
amended to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  ``(a) Short Title.--This Act may be cited as the `National Security 
Agency Act of 1959'.
  ``(b) Table of Contents.--The table of contents for this Act is as 
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. General personnel authorities.
``Sec. 3. Protection of identities of employees.
``Sec. 4. Authority to lease real property outside the United States.
``Sec. 5. Benefits for personnel assigned to special cryptologic 
activities outside the United States.
``Sec. 10. Language training for cryptologic personnel.
``Sec. 11. Protection of facilities by General Services Administration.
``Sec. 12. Senior Cryptologic Executive Service.
``Sec. 13. Grants for cryptologic research.
``Sec. 14. Availability of certain appropriations.
``Sec. 15. Protection of agency name from unauthorized use.
``Sec. 16. Recruitment of qualified personnel.
``Sec. 17. Authority to pay certain expenses for employees dying while 
on rotational tour of duty in the United States.

``SEC. 2. GENERAL PERSONNEL AUTHORITIES.

  ``(a) In General.--General personnel authorities of the Secretary of 
Defense with respect to the National Security Agency are provided in 
chapter 83 of title 10, United States Code.
  ``(b) Authority for Additional Compensation for Certain Employees.--
Officers and employees of the National Security Agency who are citizens 
or nationals of the United States may be granted additional 
compensation, in accordance with regulations which shall be prescribed 
by the Secretary of Defense, not in excess of additional compensation 
authorized by section 5941 of title 5, United States Code, for 
employees whose rates of basic compensation are fixed by statute.

``SEC. 3. PROTECTION OF IDENTITIES OF EMPLOYEES.

  ``Nothing in this Act or any other law shall be construed to require 
the disclosure of the organization or any function of the National 
Security Agency, of any information with respect to the activities 
thereof, or of the names, titles, salaries, or number of the persons 
employed by such agency.

``SEC. 4. AUTHORITY TO LEASE REAL PROPERTY OUTSIDE THE UNITED STATES.

  ``(a) Authority.--Notwithstanding section 322 of the Act of June 30, 
1932 (40 U.S.C. 278a), section 5536 of title 5, United States Code, and 
section 2675 of title 10, United States Code, the Director of the 
National Security Agency, on behalf of the Secretary of Defense, may 
lease real property outside the United States, for periods not 
exceeding ten years, for the use of the National Security Agency for 
special cryptologic activities and for housing for personnel assigned 
to such activities.
  ``(b) Limitation to Appropriated Funds.--The authority of the 
Director of the National Security Agency, on behalf of the Secretary of 
Defense, to make payments under subsection (a), and under contracts for 
leases entered into under subsection (a), is effective for any fiscal 
year only to the extent that appropriated funds are available for such 
purpose.

``SEC. 5. BENEFITS FOR PERSONNEL ASSIGNED TO SPECIAL CRYPTOLOGIC 
                    ACTIVITIES OUTSIDE THE UNITED STATES.

  ``(a) Authority To Provide Certain Benefits.--The Director of the 
National Security Agency, on behalf of the Secretary of Defense, may 
provide to certain civilian and military personnel of the Department of 
Defense who are assigned to special cryptologic activities outside the 
United States and who are designated by the Secretary of Defense for 
the purposes of this subsection the following:
          ``(1) Allowances and benefits--
                  ``(A) comparable to those provided by the Secretary 
                of State to members of the Foreign Service under 
                chapter 9 of title I of the Foreign Service Act of 1980 
                (22 U.S.C. 4081 et seq.) or any other provision of law; 
                and
                  ``(B) in the case of selected personnel serving in 
                circumstances similar to those in which personnel of 
                the Central Intelligence Agency serve, comparable to 
                those provided by the Director of Central Intelligence 
                to personnel of the Central Intelligence Agency.
          ``(2) Housing (including heat, light, and household 
        equipment) without cost to such personnel, if the Director of 
        the National Security Agency, on behalf of the Secretary of 
        Defense, determines that it would be in the public interest to 
        provide such housing.
          ``(3) Special retirement accrual in the same manner provided 
        in section 303 of the Central Intelligence Agency Retirement 
        Act (50 U.S.C. 2153) and in section 18 of the Central 
        Intelligence Agency Act of 1949.
  ``(b) Limitation to Appropriated Funds.--The authority of the 
Director of the National Security Agency, on behalf of the Secretary of 
Defense, to make payments under subsection (a) is effective for any 
fiscal year only to the extent that appropriated funds are available 
for such purpose.
  ``(c) Prohibition of Duplication of Benefits.--Members of the Armed 
Forces may not receive benefits under both subsection (a)(1) and under 
title 37, United States Code, for the same purpose. The Secretary of 
Defense shall prescribe such regulations as may be necessary to carry 
out this subsection.
  ``(d) Regulations.--Regulations prescribed under subsection (a)(1) 
shall be submitted to the Permanent Select Committee on Intelligence of 
the House of Representatives and the Select Committee on Intelligence 
of the Senate before such regulations take effect.

``SEC. 10. LANGUAGE TRAINING FOR CRYPTOLOGIC PERSONNEL.

  ``(a) Language Training Programs.--The Director of the National 
Security Agency shall arrange for, and shall prescribe regulations 
concerning, language and language-related training programs for 
military and civilian cryptologic personnel. In establishing programs 
under this section for language and language-related training, the 
Director--
          ``(1) may provide for the training and instruction to be 
        furnished, including functional and geographic area 
        specializations;
          ``(2) may arrange for training and instruction through other 
        Government agencies and, in any case in which appropriate 
        training or instruction is unavailable through Government 
        facilities, through nongovernmental facilities that furnish 
        training and instruction useful in the fields of language and 
        foreign affairs;
          ``(3) may support programs that furnish necessary language 
        and language-related skills, including, in any case in which 
        appropriate programs are unavailable at Government facilities, 
        support through contracts, grants, or cooperation with 
        nongovernmental educational institutions; and
          ``(4) may obtain by appointment or contract the services of 
        individuals to serve as language instructors, linguists, or 
        special language project personnel.
  ``(b) Foreign Language Proficiency Incentives.--(1) In order to 
maintain necessary capability in foreign language skills and related 
abilities needed by the National Security Agency, the Director, without 
regard to subchapter IV of chapter 55 of title 5, United States Code, 
may provide special monetary or other incentives to encourage civilian 
cryptologic personnel of the Agency to acquire or retain proficiency in 
foreign languages or special related abilities needed by the Agency.
  ``(2) In order to provide linguistic training and support for 
cryptologic personnel, the Director--
          ``(A) may pay all or part of the tuition and other expenses 
        related to the training of personnel who are assigned or 
        detailed for language and language-related training, 
        orientation, or instruction; and
          ``(B) may pay benefits and allowances to civilian personnel 
        in accordance with chapters 57 and 59 of title 5, United States 
        Code, and to military personnel in accordance with chapter 7 of 
        title 37, United States Code, and applicable provisions of 
        title 10, United States Code, when such personnel are assigned 
        to training at sites away from their designated duty station.
  ``(c) Cryptologic Linguist Reserve.--(1) To the extent not 
inconsistent, in the opinion of the Secretary of Defense, with the 
operation of military cryptologic reserve units and in order to 
maintain necessary capability in foreign language skills and related 
abilities needed by the National Security Agency, the Director may 
establish a Cryptologic Linguist Reserve.
  ``(2) The Cryptologic Linguist Reserve may consist of former or 
retired civilian or military cryptologic personnel of the National 
Security Agency and of other qualified individuals, as determined by 
the Director of the Agency. Each member of the Cryptologic Linguist 
Reserve shall agree that, during any period of emergency (as determined 
by the Director), the member shall return to active civilian status 
with the National Security Agency and shall perform such linguistic or 
linguistic-related duties as the Director may assign.
  ``(3) In order to attract individuals to become members of the 
Cryptologic Linguist Reserve, the Director, without regard to 
subchapter IV of chapter 55 of title 5, United States Code, may provide 
special monetary incentives to individuals eligible to become members 
of the reserve who agree to become members of the cryptologic linguist 
reserve and to acquire or retain proficiency in foreign languages or 
special related abilities.
  ``(4) In order to provide training and support for members of the 
Cryptologic Linguist Reserve, the Director--
          ``(A) may pay all or part of the tuition and other expenses 
        related to the training of individuals in the Cryptologic 
        Linguist Reserve who are assigned or detailed for language and 
        language-related training, orientation, or instruction; and
          ``(B) may pay benefits and allowances in accordance with 
        chapters 57 and 59 of title 5, United States Code, to 
        individuals in the Cryptologic Linguist Reserve who are 
        assigned to training at sites away from their homes or regular 
        places of business.
  ``(d) Service Agreements.--(1) The Director, before providing 
training under this section to any individual, may obtain an agreement 
with that individual that--
          ``(A) in the case of current employees, pertains to 
        continuation of service of the employee, and repayment of the 
        expenses of such training for failure to fulfill the agreement, 
        consistent with the provisions of section 4108 of title 5, 
        United States Code; and
          ``(B) in the case of individuals accepted for membership in 
        the Cryptologic Linguist Reserve, pertains to return to service 
        when requested, and repayment of the expenses of such training 
        for failure to fulfill the agreement, consistent with the 
        provisions of section 4108 of title 5, United States Code.
  ``(2) The Director, under regulations prescribed under this section, 
may waive, in whole or in part, a right of recovery under an agreement 
made under this subsection if it is shown that the recovery would be 
against equity and good conscience or against the public interest.
  ``(e) Language Training for Family Members.--(1) Subject to paragraph 
(2), the Director may provide to family members of military and 
civilian cryptologic personnel assigned to representational duties 
outside the United States, in anticipation of the assignment of such 
personnel outside the United States or while outside the United States, 
appropriate orientation and language training that is directly related 
to the assignment abroad.
  ``(2) Language training under paragraph (1) may not be provided to 
any individual through payment of the expenses of tuition or other cost 
of instruction at a non-Government educational institution unless 
appropriate instruction is not available at a Government facility.
  ``(f) Waiver Authority.--The Director may waive the applicability of 
any provision of chapter 41 of title 5, United States Code, to any 
provision of this section if he finds that such waiver is important to 
the performance of cryptologic functions.
  ``(g) Limitation to Appropriated Funds.--The authority of the 
Director to enter into contracts or to make grants under this section 
is effective for any fiscal year only to the extent that appropriated 
funds are available for such purpose.
  ``(h) Regulations.--Regulations prescribed under this section shall 
be submitted to the Permanent Select Committee on Intelligence of the 
House of Representatives and the Select Committee on Intelligence of 
the Senate before such regulations take effect.
  ``(i) Travel and Transportation Expenses in Connection With Training 
Outside the United States.--The Director of the National Security 
Agency, on behalf of the Secretary of Defense, may, without regard to 
section 4109(a)(2)(B) of title 5, United States Code, pay travel, 
transportation, storage, and subsistence expenses under chapter 57 of 
such title to civilian and military personnel of the Department of 
Defense who are assigned to duty outside the United States for a period 
of one year or longer which involves cryptologic training, language 
training, or related disciplines.

``SEC. 11. PROTECTION OF FACILITIES BY GENERAL SERVICES ADMINISTRATION.

  ``The Administrator of General Services, upon the application of the 
Director of the National Security Agency, may provide for the 
protection in accordance with section 3 of the Act of June 1, 1948 (40 
U.S.C. 318b), of certain facilities (as designated by the Director of 
such Agency) which are under the administration and control of, or are 
used by, the National Security Agency in the same manner as if such 
facilities were property of the United States over which the United 
States has acquired exclusive or concurrent criminal jurisdiction.

``SEC. 12. SENIOR CRYPTOLOGIC EXECUTIVE SERVICE.

  ``(a) Authority To Establish SCES.--(1) The Secretary of Defense (or 
his designee) may by regulation establish a personnel system for senior 
civilian cryptologic personnel in the National Security Agency to be 
known as the Senior Cryptologic Executive Service. The regulations 
establishing the Senior Cryptologic Executive Service shall do the 
following:
          ``(A) Meet the requirements set forth in section 3131 of 
        title 5, United States Code, for the Senior Executive Service.
          ``(B) Provide that positions in the Senior Cryptologic 
        Executive Service meet requirements that are consistent with 
        the provisions of section 3132(a)(2) of such title.
          ``(C) Provide, without regard to section 2, rates of pay for 
        the Senior Cryptologic Executive Service that are not in excess 
        of the maximum rate or less than the minimum rate of basic pay 
        established for the Senior Executive Service under section 5382 
        of such title, and that are adjusted at the same time and to 
        the same extent as rates of basic pay for the Senior Executive 
        Service are adjusted.
          ``(D) Provide a performance appraisal system for the Senior 
        Cryptologic Executive Service that conforms to the provisions 
        of subchapter II of chapter 43 of such title.
          ``(E) Provide for removal consistent with section 3592 of 
        such title, and removal or suspension consistent with 
        subsections (a), (b), and (c) of section 7543 of such title 
        (except that any hearing or appeal to which a member of the 
        Senior Cryptologic Executive Service is entitled shall be held 
        or decided pursuant to procedures established by regulations of 
        the Secretary of Defense).
          ``(F) Permit the payment of performance awards to members of 
        the Senior Cryptologic Executive Service consistent with the 
        provisions applicable to performance awards under section 5384 
        of such title.
          ``(G) Provide that members of the Senior Cryptologic 
        Executive Service may be granted sabbatical leaves consistent 
        with the provisions of section 3396(c) of such title.
          ``(H) Provide for the recertification of members of the 
        Senior Cryptologic Executive Service consistent with the 
        provisions of section 3393a of such title.
  ``(2) Except as otherwise provided in paragraph (1), the Secretary of 
Defense may--
          ``(A) make applicable to the Senior Cryptologic Executive 
        Service any of the provisions of title 5, United States Code, 
        applicable to applicants for or members of the Senior Executive 
        Service; and
          ``(B) appoint, promote, and assign individuals to positions 
        established within the Senior Cryptologic Executive Service 
        without regard to the provisions of title 5, United States 
        Code, governing appointments and other personnel actions in the 
        competitive service.
  ``(3) The President, based on the recommendations of the Secretary of 
Defense, may award ranks to members of the Senior Cryptologic Executive 
Service in a manner consistent with the provisions of section 4507 of 
title 5, United States Code.
  ``(4) Notwithstanding any other provision of this section, the 
Director of the National Security Agency may detail or assign any 
member of the Senior Cryptologic Executive Service to serve in a 
position outside the National Security Agency in which the member's 
expertise and experience may be of benefit to the National Security 
Agency or another Government agency. Any such member shall not by 
reason of such detail or assignment lose any entitlement or status 
associated with membership in the Senior Cryptologic Executive Service.
  ``(b) Merit Pay System.--The Secretary of Defense may by regulation 
establish a merit pay system for such employees of the National 
Security Agency as the Secretary of Defense considers appropriate. The 
merit pay system shall be designed to carry out purposes consistent 
with those set forth in section 5401(a) of title 5, United States Code.
  ``(c) Limitation on Total Compensation.--Nothing in this section 
shall be construed to allow the aggregate amount payable to a member of 
the Senior Cryptologic Executive Service under this section during any 
fiscal year to exceed the annual rate payable for positions at level I 
of the Executive Schedule in effect at the end of such year.

``SEC. 13. GRANTS FOR CRYPTOLOGIC RESEARCH.

  ``(a) Grant Authority.--The Director of the National Security Agency 
may make grants to private individuals and institutions for the conduct 
of cryptologic research. An application for a grant under this section 
may not be approved unless the Director determines that the award of 
the grant would be clearly consistent with the national security.
  ``(b) Applicable Law.--The grant program established by subsection 
(a) shall be conducted in accordance with the Federal Grant and 
Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.) to the extent 
that such Act is consistent with and in accordance with section 6 of 
this Act.
  ``(c) Limitation to Appropriated Funds.--The authority of the 
Director to make grants under this section is effective for any fiscal 
year only to the extent that appropriated funds are available for such 
purpose.

``SEC. 14. AVAILABILITY OF CERTAIN APPROPRIATIONS.

  ``Funds appropriated to an entity of the Federal Government other 
than an element of the Department of Defense that have been 
specifically appropriated for the purchase of cryptologic equipment, 
materials, or services with respect to which the National Security 
Agency has been designated as the central source of procurement for the 
Government shall remain available for a period of three fiscal years.

``SEC. 15. PROTECTION OF AGENCY NAME FROM UNAUTHORIZED USE.

  ``(a) Prohibition on Unauthorized Use.--No person may, except with 
the written permission of the Director of the National Security Agency, 
knowingly use the words `National Security Agency', the initials `NSA', 
the seal of the National Security Agency, or any colorable imitation of 
such words, initials, or seal in connection with any merchandise, 
impersonation, solicitation, or commercial activity in a manner 
reasonably calculated to convey the impression that such use is 
approved, endorsed, or authorized by the National Security Agency.
  ``(b) Enforcement.--Whenever it appears to the Attorney General that 
any person is engaged or is about to engage in an act or practice which 
constitutes or will constitute conduct prohibited by subsection (a), 
the Attorney General may initiate a civil proceeding in a district 
court of the United States to enjoin such act or practice. Such court 
shall proceed as soon as practicable to the hearing and determination 
of such action and may, at any time before final determination, enter 
such restraining orders or prohibitions, or take such other action as 
is warranted, to prevent injury to the United States or to any person 
or class of persons for whose protection the action is brought.

``SEC. 16. RECRUITMENT OF QUALIFIED PERSONNEL.

  ``(a) Purpose.--The purpose of this section is to establish an 
undergraduate training program, which may lead to the baccalaureate 
degree, to facilitate the recruitment of individuals, particularly 
minority high school students, with a demonstrated capability to 
develop skills critical to the mission of the National Security Agency, 
including mathematics, computer science, engineering, and foreign 
languages.
  ``(b) Assignment of Civilian Employees.--The Secretary of Defense 
may, in the Secretary's discretion, assign civilian employees of the 
National Security Agency as students at accredited professional, 
technical, and other institutions of higher learning for training at 
the undergraduate level in skills critical to effective performance of 
the mission of the Agency.
  ``(c) Limitation to Appropriated Funds.--The National Security Agency 
may pay, directly or by reimbursement to employees, expenses incident 
to assignments under subsection (b), in any fiscal year only to the 
extent that appropriated funds are available for such purpose.
  ``(d) Employee Agreement.--(1) To be eligible for assignment under 
subsection (b), an employee of the Agency must agree in writing to the 
following:
          ``(A) To continue in the service of the Agency for the period 
        of the assignment and to complete the educational course of 
        training for which the employee is assigned.
          ``(B) To continue in the service of the Agency following 
        completion of the assignment for a period of one-and-a-half 
        years for each year of the assignment or part thereof.
          ``(C) To reimburse the United States for the total cost of 
        education (excluding the employee's pay and allowances) 
        provided under this section to the employee if, before the 
        employee's completing the educational course of training for 
        which the employee is assigned, the assignment or the 
        employee's employment with the Agency is terminated either by 
        the Agency due to misconduct by the employee or by the employee 
        voluntarily.
          ``(D) To reimburse the United States if, after completing the 
        educational course of training for which the employee is 
        assigned, the employee's employment with the Agency is 
        terminated either by the Agency due to misconduct by the 
        employee or by the employee voluntarily, before the employee's 
        completion of the service obligation period described in 
        subparagraph (B), in an amount that bears the same ratio to the 
        total cost of the education (excluding the employee's pay and 
        allowances) provided to the employee as the unserved portion of 
        the service obligation period described in subparagraph (B) 
        bears to the total period of the service obligation described 
        in subparagraph (B).
  ``(2) Subject to paragraph (3), the obligation to reimburse the 
United States under an agreement described in paragraph (1), including 
interest due on such obligation, is for all purposes a debt owing the 
United States.
  ``(3)(A) A discharge in bankruptcy under title 11, United States 
Code, shall not release a person from an obligation to reimburse the 
United States required under an agreement described in paragraph (1) if 
the final decree of the discharge in bankruptcy is issued within five 
years after the last day of the combined period of service obligation 
described in subparagraphs (A) and (B) of paragraph (1).
  ``(B) The Secretary of Defense may release a person, in whole or in 
part, from the obligation to reimburse the United States under an 
agreement described in paragraph (1) when, in the Secretary's 
discretion, the Secretary determines that equity or the interests of 
the United States so require.
  ``(C) The Secretary of Defense shall permit an employee assigned 
under this section who, before commencing a second academic year of 
such assignment, voluntarily terminates the assignment or the 
employee's employment with the Agency, to satisfy his obligation under 
an agreement described in paragraph (1) to reimburse the United States 
by reimbursement according to a schedule of monthly payments which 
results in completion of reimbursement by a date five years after the 
date of termination of the assignment or employment or earlier at the 
option of the employee.
  ``(e) Disclosure to Educational Institution of Agency Affiliation of 
Employee.--(1) When an employee is assigned under this section to an 
institution, the Agency shall disclose to the institution to which the 
employee is assigned that the Agency employs the employee and that the 
Agency funds the employee's education.
  ``(2) Agency efforts to recruit individuals at educational 
institutions for participation in the undergraduate training program 
established by this section shall be made openly and according to the 
common practices of universities and employers recruiting at such 
institutions.
  ``(f) Inapplicability of Certain Laws.--Chapter 41 of title 5 and 
subsections (a) and (b) of section 3324 of title 31, United States 
Code, shall not apply with respect to this section.
  ``(g) Regulations.--The Secretary of Defense may prescribe such 
regulations as may be necessary to implement this section.

``SEC. 17. AUTHORITY TO PAY CERTAIN EXPENSES FOR EMPLOYEES DYING WHILE 
                    ON ROTATIONAL TOUR OF DUTY IN THE UNITED STATES.

  ``(a) Authority.--The Secretary of Defense may pay the expenses 
referred to in section 5742(b) of title 5, United States Code, in the 
case of any employee of the National Security Agency who dies while on 
a rotational tour of duty within the United States or while in transit 
to or from such tour of duty.
  ``(b) Definition.--For the purposes of this section, the term 
`rotational tour of duty', with respect to an employee, means a 
permanent change of station involving the transfer of the employee from 
the National Security Agency headquarters to another post of duty for a 
fixed period established by regulation to be followed at the end of 
such period by a permanent change of station involving a transfer of 
the employee back to such headquarters.''.

SEC. 602. AMENDMENTS TO TITLE 5, UNITED STATES CODE.

  (a) Pay.--Section 5314 of title 5, United States Code, is amended by 
striking out ``Deputy Director of Central Intelligence'' and inserting 
in lieu thereof ``Deputy Directors of Central Intelligence (2)''.
  (b) Merit System Principles.--Section 2305 of title 5, United States 
Code, is amended by striking out ``section 102 of the National Security 
Act of 1947 (61 Stat. 495; 50 U.S.C. 403),'' and inserting in lieu 
thereof ``subtitle A of title I of the Intelligence Community Act,''.

SEC. 603. REPEAL OF PROVISIONS RECODIFIED IN NEW ACT.

  (a) Fiscal Year 1996 Intelligence Authorization Act.--Section 306 of 
the Intelligence Authorization Act for Fiscal Year 1996 (Public Law 
104-93; 50 U.S.C. 435 note; 109 Stat. 966) is repealed.
  (b) Fiscal Year 1995 Intelligence Authorization Act.--The following 
provisions of the Intelligence Authorization Act for Fiscal Year 1995 
(Public Law 103-359) are repealed:
          (1) Section 603 (50 U.S.C. 403-3 note; 108 Stat. 3433).
          (2) Section 811 (50 U.S.C. 402a; 108 Stat. 3455).
  (c) Fiscal Year 1992 Intelligence Authorization Act.--Section 403 of 
the Intelligence Authorization Act for Fiscal Year 1992 (Public Law 
102-183; 50 U.S.C. 403-2; 105 Stat. 1267) is repealed.
  (d) National Security Act of 1947.--Section 109 of the National 
Security Act of 1947 (50 U.S.C. 404d) is repealed.
  (e) Fiscal Year 1995 Defense Appropriations Act.--Section 8154 of the 
Department of Defense Appropriations Act, 1995 (10 U.S.C. 384 note; 50 
U.S.C. 403f note; 108 Stat. 2658) is repealed.
  (f) Fiscal Year 1994 Defense Appropriations Act.--Section 8107 of the 
Department of Defense Appropriations Act, 1994 (50 U.S.C. 414 note; 107 
Stat. 1464) is repealed.

SEC. 604. NATIONAL SECURITY ACT OF 1947.

  (a) Table of Contents.--The table of contents in the first section of 
the National Security Act of 1947 is amended--
          (1) by inserting after the item relating to section 2 the 
        following new item:

``Sec. 3. Definitions.'';

          (2) by striking out the items relating to the heading for 
        title I and sections 101 through 107 and inserting in lieu 
        thereof the following:

 ``Title I--National Security Council and Related Boards and Committees

``Sec. 101. National Security Council.
``Sec. 102. Committee on Foreign Intelligence.
``Sec. 103. Committee on Transnational Threats.
``Sec. 104. Board for Low Intensity Conflict.
``Sec. 105. National Counterintelligence Policy Board.'';

          (3) by striking out the item relating to section 109 and the 
        item following that item (relating to section 104); and
          (4) by striking out the items relating to sections 202 
        through 204, 208 through 214, 301, 302, and 304 through 306.
  (b) Format Amendments.--Title IX of such Act is amended--
          (1) in section 904 (50 U.S.C. 441c), by striking out 
        ``required to be imposed by'' and all that follows and 
        inserting in lieu thereof ``required to be imposed by any of 
        the following provisions of law:
          ``(1) The Chemical and Biological Weapons Control and Warfare 
        Elimination Act of 1991 (title III of Public Law 102-182).
          ``(2) The Nuclear Proliferation Prevention Act of 1994 (title 
        VIII of Public Law 103-236).
          ``(3) Section 11B of the Export Administration Act of 1979 
        (50 U.S.C. App. 2410b).
          ``(4) Chapter 7 of the Arms Export Control Act (22 U.S.C. 
        2797 et seq.).
          ``(5) The Iran-Iraq Arms Non-Proliferation Act of 1992 (title 
        XVI of Public Law 102-484).
          ``(6) The following provisions of annual appropriations Acts:
                  ``(A) Section 573 of the Foreign Operations, Export 
                Financing, and Related Programs Appropriations Act, 
                1994 (Public Law 103-87; 107 Stat. 972).
                  ``(B) Section 563 of the Foreign Operations, Export 
                Financing, and Related Programs Appropriations Act, 
                1995 (Public Law 103-306; 108 Stat. 1649).
                  ``(C) Section 552 of the Foreign Operations, Export 
                Financing, and Related Programs Appropriations Act, 
                1996 (Public Law 104-107; 110 Stat. 741).
          ``(7) Comparable provisions.''; and
          (2) in section 905 (50 U.S.C. 441d), 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, 1997''.

SEC. 605. ABOLITION OF NATIONAL INTELLIGENCE COUNCIL.

  The National Intelligence Council is abolished.

SEC. 606. EFFECTIVE DATE.

  Except as otherwise specifically provided in this Act, this Act and 
the amendments made by this Act shall take effect six months after the 
date of the enactment of this Act, except that the President may 
prescribe an earlier date. Any such date prescribed by the President 
shall be published in the Federal Register.

  Amend the title so as to read:

      A bill to provide for improved management and operation 
of intelligence activities of the Government by providing for a 
more corporate approach to intelligence so as to provide an 
improved Intelligence Community for the 21st century, and for 
other purposes.

                                Purpose

    The purposes of this Act are:
          (1) To provide a corporate framework for the improved 
        management of United States intelligence activities at 
        all levels and within all intelligence disciplines:
          (2) To provide an institutional structure that will 
        continue to ensure that the Intelligence Community 
        serves the needs of the Government as a whole in an 
        effective timely and corporate manner:
          (3) To clarify by law the responsibilities of United 
        States intelligence agencies; and
          (4) To improve the congressional oversight of 
        intelligence activities.

          IC21: The Intelligence Community in the 21st Century

    At the outset of the 104th Congress, the Committee began a 
review of the current roles, functions, missions and 
capabilities of the Intelligence Community, with an emphasis on 
how well suited these were to address likely national security 
concerns in the 21st century. This review was intended to be 
parallel and complementary to the work being begun by the 
Commission on the Roles and Capabilities of the United States 
Intelligence Community, which had been created by the 
Intelligence Authorization Act for Fiscal Year 1995 (P.L. 103-
359). This Committee project was given the name IC21: The 
Intelligence Community in the 21st Century.

                        GUIDING CONCEPTS OF IC21

    IC21 has been guided by the following broad concepts:
    The United States continues to need a strong, highly 
capable and increasingly flexible Intelligence Community. This 
need has not diminished with the end of the Cold War. Indeed, 
the current international situation is, in many ways, more 
complex and more difficult to deal with than was the relatively 
stable, bi-polar Cold War. Thus, although we find our national 
security less threatened, the demands for intelligence remain 
and may likely increase. The focus of our national security has 
changed, but the mission of the Intelligence Community has not 
changed: to ensure that our nation never again suffers a 
crippling, strategic surprise: to provide timely, assessed 
intelligence to civil and military policy-makers that is the 
basis for sound decision making; supporting military 
operations; and, carrying out certain non-traditional 
intelligence operations--including covert action--in accordance 
with laws and as tasked by legally responsible officials.
    A key issue is opportunity, not reform. U.S. national 
security interests are less threatened than at any time since 
1940. This is a propitious moment in which to review major 
aspects of our national security apparatus and to update them 
in an atmosphere relatively free form crisis. Although Congress 
and the Executive continue to deal with issues regarding the 
propriety of certain operations (oversight and--occasionally--
legality), these are not the main driving issues as they were 
in the mid-1970s.
    Every facet and institution within the Intelligence 
Community was reviewed; nothing was above scrutiny, no agency 
or mission was immune from scrutiny. There also were no 
preconceptions as to the ``right answer'' for the future of the 
Intelligence Community.
    IC21 is not an exercise designed to reduce, or even to 
shape the intelligence budget. The goal is to provide the broad 
shape of the Intelligence Community that will best meet U.S. 
national security needs into the next century. The question of 
whether the price for this type of Intelligence Community is 
acceptable can only be decided by Congress and the Executive 
during their budget deliberations.
    The Committee examined and considered major structural 
changes in detail to ensure that support and a firm basis for 
these changes existed, and that they would yield the 
appropriate results. Any major recommendation for 
organizational change must come only from well-defined 
intelligence or policy-maker needs.
    Although the Committee's sole jurisdiction over the 
national Intelligence community is broad, it shares 
jurisdiction with the House National Security Committee over 
tactical and joint intelligence programs. Reforms and 
structural change can only be considered in conjunction with 
that Committee. It is important to keep the primary focus on 
those issues that might require legislative remedies. Changes 
that can be carried out by or within the Executive should also 
be noted, as should findings for which no specific 
recommendations are made.
    Any changes must result in improved processes or products 
to be worth the cost of short-lived dislocations.
    To the greatest extent possible, the IC21 process has been 
public and unclassified. One of the goals of IC21 has been to 
renew a national consensus to support a strong, diverse and 
capable Intelligence Community. Such a consensus must rely on 
an easily accessible body of information. This is an especially 
important function because, as several witnesses told the 
Committee, beyond Congress and the Executive there is no 
natural constituency for intelligence in the United States.
    Finally, the focus has been on where the Intelligence 
Community needs to be in the next 10-15 years, not a snapshot 
of where we are today.

                       scope of the IC21 process

Defining the issues

    Committee staff began by defining the types of issues that 
either had to be addressed or could be most profitably 
addressed regarding the future of the Intelligence Community. 
This led, first, to a set of detailed questions about the 
Intelligence Community that were sent out to over 40 former and 
current national security officials, academics and intelligence 
veterans.
    Based on these preliminary efforts and on the responses to 
the questions, IC21 was undertaken with the view that it would 
be most profitable to look at the Intelligence Community 
largely in terms of broad functional categories, rather than 
agency-by-agency. An agency-by-agency approach would largely 
lead to either a confirmation or rejection of the status quo 
without providing a basis for projecting future intelligence 
needs and how best to meet them. The following were the 
defining intelligence functions:
          Management Functions
          Requirements
          Resource Management
          Collection Management
          Production Management
          Execution Functions
          Systems Development
          Collection via open sources, human intelligence, 
        signals intelligence, imagery, measurement and 
        signatures intelligence
          Analysis
          Support Functions
          Infrastructure Support
          Evaluation, which is both a management and an 
        execution function.

Expert testimony

    The Committee undertook a series of hearings and staff 
panels to help shape the project and to provide expert 
testimony on IC21 issues. The following hearings were held, all 
but one of which were open--in keeping with the guiding concept 
of an open process. (The transcript of the one closed hearing 
has since been declassified and is being publishing along with 
the other hearings.)
            Former Directors of Central Intelligence, May 22, 1995
    Honorable Richard Helms; Honorable James Schlesinger; 
Honorable William E. Colby; Honorable Stansfield Turner; 
Honorable William H. Webster; Honorable R. James Woolsey.
            Future of Technology, July 13, 1995
    Bill Richardson, Director, the Advanced Technologies 
Office, Director of Central Intelligence's Community Management 
Staff; Dr. Lee Buchanan, Director, Defense Sciences Office, 
Advanced Research Projects Agency; Dr. Curtis R. Carlson, 
Executive Vice President, David Sarnoff Research Center.
            Policy Makers and Intelligence, July 27, 1995
    Lt. General Brent Scowcroft, USAF (ret.), former National 
Security Adviser to Presidents Ford and Bush; Ambassador Robert 
Kimmit, former Ambassador to Germany and Under Secretary of 
State for Political Affairs; Dr. Joseph Massey, former 
Assistant U.S. Trade Representative.
            Enabling Technologies, October 18, 1995
    Honorable Paul G. Kaminski, Under Secretary of Defense for 
Acquisition and Technology; Norm Augustine, President, 
Lockheed-Martin Corporation; Edward McCracken, Chairman and 
CEO, Silicon Graphics Incorporated.
            Intelligence Community ``Wise Men,'' November 16, 1995
    John N. McMahon, former Deputy Director of Central 
Intelligence; Richard J. Kerr, former Deputy Director of 
Central Intelligence; Lt. General James R. Clapper, USAF 
(ret.), former Director, Defense Intelligence Agency.
            Director of Central Intelligence, December 19, 1995
    Honorable John M. Deutch, Director of Central Intelligence.
    In addition to these hearings specifically devoted to IC21 
issues, the Committee gleaned much useful information relevant 
to IC21 during the extensive 1995 budget authorization process, 
which included 11 full Committee hearings, 20 Member briefings 
and over 200 staff briefings.
    Immediately before H.R. 3237 was introduced on April 15, 
1996, the Committee held further hearings on IC21 issues. On 
March 6, the Committee heard from former Secretary of Defense 
Harold Brown and former Senator Warren Rudman, the Chairman, 
and Vice Chairman, respectively, of the Commission on the Roles 
and Capabilities of the United States Intelligence Community. 
At two further hearings on IC21-related issues, witnesses 
included Deputy Director of Central Intelligence George Tenet; 
Assistant Secretary of State for Intelligence and Research Toby 
Gati; Deputy Assistant Secretary of Defense of Intelligence 
Joan Dempsey; and another hearing with Director of Central 
Intelligence Deutch. IC21 issues were also examined during the 
six full Committee hearings on the FY 1997 intelligence 
authorization held in early 1996. On May 29, 1996, Director of 
Central Intelligence Deutch and Deputy Secretary of Defense 
John White briefed the Committee on their views of the bill as 
reported.
    Finally, as noted, staff conducted dozens of interviews and 
held several staff panels and conducted scores of interviews 
with experts covering aspects of signals intelligence; imagery 
intelligence; measurement and signals intelligence; the 
clandestine service; Intelligence Community ``surge'' 
capability; and public perceptions of intelligence.

Staff studies

    Simultaneous with these other efforts, Majority staff 
prepared 14 staff studies, covering the range of issues first 
defined in 1995. These studies were published in April 1996, 
offering detailed analysis, as well as 87 findings and 105 
recommendations on:
          Intelligence Community Management
          Intelligence Requirements Process
          Collection Synergy
          Signals Intelligence (SIGINT)
          Imagery Intelligence (IMINT)
          Measruement and Signatures Intelligence (MASINT)
          Collection: Launch
          Intelligence Community ``Surge'' Capability
          Intelligence Support to Military Operations
          Intelligence Centers
          Intelligence and Law Enforcement
          Intelligence Communications
          Congressional Oversight.
    H.R. 3237 is based on this entire body of work. Moreover, 
once the bill was introduced, in addition to the further 
hearings noted above, staff continued its broad consultations 
with a wide variety of experts in and out of the Intelligence 
Community, with non-intelligence Executive Branch agencies, and 
with other interested Congressional staff and Members. As a 
result, the bill as originally introduced was further refined, 
resulting in the amendment in the nature of a substitute that 
is reported favorably herein.

                           committee findings

    The Committee found that the phrase ``intelligence 
community'' as a more apt description of how this important 
function is organized and managed than most people realize. It 
is the product of a half century of ad hoc development--largely 
through executive order and directive rather than statute. This 
has resulted in a vast array of organizations. Each of these 
entities makes sense individually but, as a whole, the 
Intelligence Community fails to achieve the coherence one would 
expect, even accounting for the fact that intelligence is 
housed in a number of separate departments and agencies, and 
supports separate and distinct consumers: the policy community 
and the military.
    The major thematic finding of IC21 and embodied in H.R. 
3237 is the need for a more ``corporate'' Intelligence 
Community, i.e., one in which all components understand that 
they are part of a larger coherent process aiming at a single 
goal: the delivery of timely intelligence to decision makers at 
various levels. What this means, in practical terms, is that 
central management of the Intelligence Community should be 
strengthened; core competencies (collection, analysis, 
operations) should be reinforced; and infrastructure should be 
consolidated wherever possible.
    This finding is not very different from that made by Vice 
President Gore's National Performance Review on the 
Intelligence Community (September 1993; p. 1), which observed:

        . . . The first and perhaps most important finding of 
        the National Performance Review is that there must be 
        an overarching vision for the Intelligence Community. 
        The members must come together as a team working toward 
        common goals and must realign resources and functions 
        to make the Community most effective in a post-Cold War 
        environment.

    In addition to providing a more corporate framework and a 
more coherent Intelligence Community structure in statute, H.R. 
3237 also finds that the authorities of the Director of Central 
Intelligence are not commensurate with his responsibilities for 
coordinating all U.S. intelligence activities.
    Several specific findings underscore these broader ones:
    The DCI should be thought of as the ``chief executive 
officer'' of a more corporate Intelligence Community. As such, 
he should have a greater voice in the appointment of his 
``corporate team,'' particularly the directors of National 
Foreign Intelligence Program Defense agencies.
    It has been difficult for Intelligence Community management 
to look at activities, budgets and programs as a whole. 
Instead, these have been looked at in three distinct blocks: 
the National Foreign Intelligence Program; the Joint Military 
Intelligence Program; and Tactical Intelligence and Related 
Activities.
    Even within the National Foreign Intelligence Program, the 
DCI lacks requisite authorities over program managers, 
particularly in the areas of budget and personnel.
    In addition to a strengthened DCI, there should be a 
Director of Military Intelligence with increased authority over 
non-National Foreign Intelligence Program defense intelligence 
programs.
    The Intelligence Community lacks and needs an improved 
ability to evaluate the intelligence process from end-to-end, 
that is, to be better able to relate requirements, tasking, 
collection and production.

                       committee recommendations

    Based on these findings, H.R. 3237 makes changes in six 
major areas. First, the bill addresses the Community structures 
available to support the DCI in his role over the entire 
Intelligence Community. The bill creates a second Deputy DCI 
for Community Management, in addition to the current Deputy DCI 
who continues to support the DCI across his entire role. This 
new Deputy DCI, working through an enhanced Community 
Management Staff, will give the DCI a more central role in the 
areas of budget, resources, requirements, collection tasking, 
and research and development. This role of the Community 
Management Staff is further enhanced by the creation of an 
Infrastructure Support Office to manage administrative and 
logistical issues like training, security, personnel, computer 
procurement that are common to all intelligence agencies. The 
bill also creates a National Intelligence Evaluation Council, 
reporting to the DCI, to provide him with a staff to perform 
the end-to-end evaluations of the entire intelligence process 
that currently do not occur.
    Second, the DCI's own authorities over the National Foreign 
Intelligence Program are directly enhanced by giving him the 
right to transfer limited amounts of money within that program 
and to detail personnel for limited periods of national needs. 
Both of these will make the DCI more of a direct participant in 
the formulation, execution and direction of Intelligence 
Community policies and less just an interested observer, as is 
currently the case. Closely related to this personnel 
initiative is the creation of an Intelligence Community 
Reserve, which--relying on intelligence veterans and retirees, 
or knowledgeable experts in academia and the private sector--
can be used to buttress Intelligence Community capabilities 
(``surge capacity'') during crises.
    Third, the bill designates the Director, Defense 
Intelligence Agency as the Director of Military Intelligence 
(DMI), in order to achieve more corporate management within the 
defense intelligence community. This position is further 
enhanced by the creation of a DMI Staff, which will work 
closely with the Community Management Staff to bridge the gaps 
among the three blocks of the intelligence program, especially 
on budgeting issues.
    Fourth, in order to improve executive guidance and 
direction of the DCI and the Intelligence Community, which is 
currently assigned to the National Security Council (NSC) but 
usually devolved to some subordinate body, the bill creates a 
Committee on Foreign Intelligence and a Committee on 
Transnational Threats on the NSC.
    Fifth, the bill creates a Civilian Intelligence Personnel 
Management System in the Defense Department. This would allow 
the Secretary of Defense to create an excepted personnel 
service, which would improve the ability of the Defense 
Department to attract and promote highly qualified personnel in 
intelligence, and to manage civilian intelligence personnel 
with greater flexibility and responsiveness to current needs.
    Sixth, H.R. 3237 authorizes the DCI and the Secretary of 
Defense to undertake a study on the future of intelligence 
collection. H.R. 3237, as originally introduced, proposed 
several significant changes in this area: separating the 
Clandestine Service (DO) from the CIA; creating a Technical 
Collection Agency to manage signals intelligence, imagery 
intelligence and measurement and signatures intelligence; and 
creating a Technology Development Office to manage collection 
research and development. Similarly, DCI Deutch proposed 
merging a number of imagery and mapping entities into a 
National Imagery and Mapping Agency. All of these proposals 
have far reaching consequences. Although the amended H.R. 3237 
recedes from its original proposals in this area, the Committee 
believed that there was sufficient agreement about the future 
of intelligence collection to warrant further study on these 
various concepts and others that may be of interest. The 
Committee recognizes that the level of concern outpaces, at 
present, any clear consensus about viable or acceptable 
solutions. In having the DCI and the Secretary of Defense 
undertake this study, we are assured that the two officials 
with the most direct interest at stake will be involved.
    Finally, the rationale behind the structure of the bill 
should be noted. Many sections of the bill recodify current 
law. This stems directly from the finding that much of the 
growth and development of the Intelligence Community has not 
been guided by statute. It was believed, during the drafting of 
the bill, that it was important for those reading the bill to 
be able to comprehend its intellectual coherence. Rather than 
simply include those sections that are either being added to or 
are amending current law--which would appear as unconnected 
entities--the Committee believed it would be better to include 
other relevant sections of intelligence law, so that this body 
of law could be seen in its entirety as well as how the changes 
proposed in H.R. 3237 fit in.

                         legislative structure

    H.R. 3237 is a comprehensive restatement of existing law in 
one piece of legislation coupled with appropriate changes that 
will streamline and make the Intelligence Community a more 
corporate entity capable of meeting the diverse challenges of 
the 21st century. The Committee intends that this Act will 
become a touchstone for the community, much as the National 
Security Act of 1947 has become a living document that shaped 
our nation's response to the Cold War. As such, elements of 
existing law that remain vibrant and relevant to the challenges 
of the 21st century have been included in H.R. 3237.

            Section-by-Section Analysis of Bill as Reported

Section 1--Short title

    This Act may be cited as the ``Intelligence Community 
Act''.

Section 2--Organization of act; table of contents

    (a) Organization of Act.--This Act is organized as follows:

Section 3--Findings and purposes

    New provision. General statement of findings and purposes 
based on the conclusions of the Committee's recently published 
staff studies entitled ``IC21: Intelligence Community in the 
21st Century.''

Section 4--Definitions

    Based on section 3 of the National Security Act of 1947, 
definitions include the following terms: intelligence, foreign 
intelligence, counterintelligence, national intelligence, 
intelligence related to national security, National Foreign 
Intelligence Program, and Congressional intelligence 
committees.

               Title I--Intelligence Community Generally

              subtitle A--director of central intelligence

Section 101--Director of Central Intelligence

    Current law. This is a brief restatement of the roles 
allocated to the Director of Central Intelligence in Section 
102 of the National Security Act of 1974.

Section 102--General intelligence responsibilities of the Director

    Current law. Restatement of Section 103(a) of the National 
Security Act of 1947.

Section 103--Preparation of annual budget for national foreign 
        intelligence program

    Current law. Restatement of Section 103(c)(1) of the 
National Security Act of 1947.

Section 104--Foreign intelligence collection

    Current law. Restatement of Section 103(c)(2) of the 
National Security Act of 1947.

Section 105--Protection of sources and methods

    Current law. Restatement of Section 103(c)(5) of the 
National Security Act of 1947.

Section 106--Promotion and evaluation of the usefulness of intelligence 
        to consumers

    Current law. Restatement of Section 103(c)(3) of the 
National Security Act of 1947.

Section 107--Elimination of waste and unnecessary duplication

    Current law. Restatement of Section 103(c)(4) of the 
National Security Act of 1947.

Section 108--Other functions

    Current law. Restatement of Section 103(c)(6) of the 
National Security Act of 1947.

Section 109--Prohibition on law enforcement powers and internal 
        security functions

    Current law. Restatement of Section 103(d)(1) of the 
National Security Act of 1947.

Section 110--Access to intelligence

    Current law. Restatement of Section 103(a) of the National 
Security Act of 1947.

Section 111--Coordination with foreign governments

    Current law. Restatement of Section 103(e) of the National 
Security Act of 1947.

          subtitle B--deputy directors of central intelligence

Section 121--Deputy directors of Central Intelligence

    New provision. There are two Deputy DCIs: a DDCI, which 
currently exists in law, and a DDCI for Community Management. 
Each DDCI is appointed by the President and confirmed by the 
Senate. Each DDCI shall have ``extensive national security 
experience'' as a qualification for office. The Committee 
recognizes that DCIs are chosen by Presidents for a variety of 
reasons and has done nothing to limit the President's choice in 
filling that principal intelligence position. Given that 
latitude, it is also important that the DCI's two deputies have 
experience in national security affairs so as to be of major 
assistance to the DCI. National security experience is viewed 
by the Committee as including but not necessarily limited to 
intelligence; extensive foreign or defense policy experience is 
also viewed as fulfilling this requirement.

Section 122--Deputy Director of Central Intelligence

    New provision. This section specifies that the DDCI acts 
for and has the authority of the DCI during that official's 
absence or if the office is vacant, and also that this DDCI has 
precedence immediately after the DCI, thus making clear the 
relationship between the DDCI and the DDCI for Community 
Management.

Section 123--Deputy Director of Central Intelligence for Community 
        Management

    New provision. The DDCI for Community Management works 
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 for Community Management will 
direct the Community Management Staff and the Infrastructure 
Support Office; and will manage community-wide functions, 
including personnel, resources, requirements, and research and 
development. Creating this position will give the DCI more 
support and better enable him to exercise his community-wide 
responsibilities. DCI Deutch has made a similar proposal.

Section 124--Civilian and military status of Director of Central 
        Intelligence and deputies

    New provision. Under current law, either the DCI or the 
DDCI may be (but is not required to be) on active duty in the 
armed forces. Although Sec. 123 creates an additional DDCI, the 
limit of only one of these three positions (DCI, two DDCIs) 
being held by someone on active duty in the armed forces 
remains. Members of the armed forces have served as DCI or DDCI 
in many instances and bring valuable backgrounds to these 
positions. Their availability for such service should continue. 
At the same time, the importance of maintaining strong civilian 
leadership within the highest circles of the Intelligence 
Community remains.
    Paragraph (b) specifies that a DCI may hold the rank of 
general or admiral and DDCIs the rank of lieutenant general or 
vice admiral while serving in those positions. Paragraphs (c), 
(d) and (e) retain current law (50 U.S.C. 403 (c)): 
commissioned officers serving in these positions are not 
subject to the supervision or control of the Secretary of 
Defense or the Defense Department, may not supervise any 
Defense personnel except as authorized by this title, and will 
not count against authorized numbers and percentages of ranks 
and grades in their military department; their military 
benefits will not be affected by such an appointment; and are 
eligible to receive compensation as DCI or DDCI if that is in 
excess of their pay and allowances for grade and length of 
service.

                 SUBTITLE C--THE INTELLIGENCE COMMUNITY

Section 131--Elements of the intelligence community

    Current law with some modification. This section identifies 
the various components of the Intelligence Community as set 
forth in Section 3(4) of the National Security Act of 1947. 
This provision also notes the newly enhanced roles of the 
Community Management Staff, the National Intelligence 
Evaluation Council, and the Infrastructure Support Office.

Section 132--Intelligence community Inspector General forum

    New provision. In earlier drafts of Intelligence Community 
reform legislation, it was proposed that there be a single 
Inspector General for the various components of the 
Intelligence Community. Proponents of this concept argued that 
a single Inspector General would encourage ``corporateness'' 
within the Intelligence Community as well as result in greater 
inter-agency coordination and efficiencies. However, the 
Inspectors General of several departments, notably the 
Departments of Defense and State, strongly opposed this 
proposal.
    Following a request from HPSCI staff, the Inspector General 
of the Department of Defense made a counterproposal to 
legislatively charter and Intelligence Community Inspector 
General Forum. The Inspector General of the CIA and other 
affected Inspectors General within the Intelligence Community 
have endorsed this counterproposal. As noted in subsection (c), 
the Forum consists of the Inspectors General of: the Central 
Intelligence Agency, the Department of Defense, the Department 
of State, the Department of the Treasury, the Department of 
Justice, the Department of Energy, and any other components 
within the Intelligence Community. As noted in subsection 
(c)(2), the Forum is to be co-chaired by the Inspectors General 
of the CIA and the Department of Defense. As established in 
subsection (d), the Forum is to meet on at least a quarterly 
basis. The Committee urges the Forum participants to meet more 
frequently, so as to improve their coordination and 
consultation efforts.
    Subsection (e) sets forth the functions of the Forum, 
including: (1) adequate Inspector General oversight over 
programs and operations of elements within the Intelligence 
Community under the jurisdiction of two or more statutory 
Inspectors General; (2) serving as a focal point for sharing 
information on policies and procedures for conducting audits, 
inspections, or investigations into programs and operations of 
components within the Intelligence Community; (3) serving as a 
focal point for sharing information on qualifications for 
auditors, inspectors, and investigators within the Intelligence 
Community; and (4) keeping the DCI and appropriate departmental 
secretaries informed of issues identified in audits, 
inspections or investigations into programs and operations of 
elements within the Intelligence Community. This provision is 
not intended to preclude an Inspector General for any 
Intelligence Community component agency from independently 
initiating any audit, inspection, or investigation of programs 
or operations under their current legal purview, in accordance 
with the Inspector General Act of 1978 or section 17 of the 
Central Intelligence Agency Act of 1949.
    Subsection (f) requires each of the Inspectors General to: 
(1) designate a point of contact within their respective 
agencies and to provide information regarding Forum activities; 
and (2) provide sufficient staff and other resources for any 
audits, inspections, and investigations of programs or 
operations that involve two or more elements within the 
Intelligence Community.
    Subsection (g) requires the Forum to submit a report to the 
Congressional Intelligence committees no later than April 15, 
1997 on the feasibility of, and costs and benefits associated 
with, creating an Inspector General for the Intelligence 
Community.

                       subtitle d--annual reports

Section 141--Annual report on intelligence activities

    Current law. Restatement of 50 United States Code 404(d).

              Title II--Intelligence Community Management

              subtitle a--intelligence community functions

Section 201--Community management staff

    New provision. This section provides for an Intelligence 
Community Management Staff (CMS). This staff is directly 
subordinate to the DDCI for Community Management.

Section 202--Functions of the community management staff

    New provision. The CMS, working closely with the Director 
of Military Intelligence (DMI) staff, is responsible for 
providing coordinated management of the Intelligence Community 
activities, including intelligence collection, analysis, 
production and dissemination functions. The CMS provides 
community-wide guidance for all-discipline requirements and 
collection management. The CMS provides community-wide 
budgetary guidance and, in coordination with the DMI Staff and 
other Departmental agencies, builds the President's National 
Foreign Intelligence Program budget. The CMS also provides 
management oversight of community-wide research and development 
programs to ensure coordination of effort and maximize use of 
available resources. This provision enhances the role and 
authority of CMS, making it better able to support the DCI in 
his role as head of the Intelligence Community.

           subtitle b--national foreign intelligence program

Section 221--Budgets

    Current law with some revisions. Paragraphs 221 (a), (b) 
and (c) are a restatement of section 104(b) of the National 
Security Act of 1947 as modified to incorporate the role of the 
Deputy Director of Central Intelligence for Community 
Management. Paragraph 221(d) is a restatement of 50 United 
States Code 403-3 note as well as section 603 of the Fiscal 
Year 1995 Intelligence Authorization bill. As required in 
section 202 of this bill, and in consultation with the DMI 
Staff and other elements of the Intelligence Community, the CMS 
is responsible to the Director of Central Intelligence for 
preparing and approving the community's yearly budget requests. 
During a budget execution year, the CMS is responsible to the 
DCI for accurate accounting of funds provided to the 
Intelligence Community within the National Foreign Intelligence 
Program. The staff will be responsible for accounting for funds 
by the functional categories of collection, processing, 
exploitation, analysis, dissemination and infrastructure such 
that oversight agencies will be able to specifically track and 
understand community costs. The CMS will also provide, in 
budget requests to the Congress, detailed breakouts of all 
requested money, whether categorized as base or as an ongoing 
or new initiative.

Section 222--Comptroller functions of community management staff

    New provision. The CMS is responsible for reviewing and 
analyzing intelligence community-wide budget execution 
performance. When IC elements of the Department of Defense are 
not in compliance with community-wide guidance established by 
the DCI, the CMS is also responsible for recommending, if 
necessary, the withholding of appropriate execution year funds 
to the Comptroller of the Department of Defense. The CMS is 
also responsible for instituting an automated accounting system 
for developing future-year budgets and for tracking current-
year budget execution.

Section 223--Limitation on transfers and reprogramming

    Current law with some revisions. Paragraph 223(a) is 
derived from 50 United States Code 414, note as well as section 
8107 and the FY 1994 Defense Department Appropriations Bill. 
Paragraph 223(b) seeks to limit the amounts that may be 
transferred from any account of an element of the Intelligence 
Community if those amounts exceed five percent of the aggregate 
portion of the National Foreign Intelligence Program budget of 
that element. Paragraph 223(c) is derived from 50 United States 
Code 403(f), note as well as section 8154(b) of the FY 1995 
Defense Department Appropriations Bill.
    This section states that the DCI and the Secretary of 
Defense may not transfer funds authorized and appropriated for 
National Foreign Intelligence Programs without the consent of 
the Congressional intelligence and appropriations committees. 
This section also provides authority for the DCI, with 
congressional approval, to transfer funds within the NFIP with 
or without the concurrence of the losing NFIP program element 
manager. This DCI authority is limited to five percent of the 
losing program manager's total year budget. This authority does 
not extend to funds specifically authorized and appropriated 
for drug interdiction or counter-drug purposes.

Section 224--Transfer of funds or personnel within the national foreign 
        intelligence program

    Current law. Restatement of section 104(d) of the National 
Security Act of 1947.

Section 225--Limitation on reprogramming

    Current law. Restatement of section 104(c) of the National 
Security Act of 1947.

                         subtitle c--personnel

Section 231--Use of personnel

    Current law. Restatement of section 104(g) of the National 
Security Act of 1947.

Section 232--Authority to terminate employment of certain employees

    Current law. Restatement of section 104(g) of the National 
Security Act of 1947.

Section 233--Intelligence community reserve

    New provision. This section directs the DCI to establish an 
Intelligence Community Reserve, providing the necessary 
provisions for monetary incentives, retirement, and training 
and support. This section defines three basic component groups 
that would be included in this program: (1) those individuals 
who are former or retired employees of the Intelligence 
Community; (2) those individuals who have had little, if any, 
association with the Intelligence Community, but have extensive 
experience in a subject area, region or issue that is of 
interest or concern to the Intelligence Community; and (3) 
linguists.
    Significant reductions in personnel and other resources 
throughout the Intelligence Community over the past few years 
combined with significant increases in the utility and need for 
intelligence information have created a severe shortfall in 
analytic resources, especially in the areas of all-source 
analysis and linguists. Ad hoc crises, such as Rwanda and 
Somalia, further emphasize that, to be effective in the future, 
the Intelligence Community must be flexible enough to ``surge'' 
resources to meet immediate needs while also having the 
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 to the 
policy maker in allowing time to manage an impending situation 
so that it does not develop into a crisis, or to the military 
commander in case the proper policy response includes military 
activity. DCI Deutch has been addressing the same concerns in 
his ``Hard Target/Global Coverage'' efforts.
    It is unlikely that internal Intelligence Community 
resources will ever be robust enough to meet all of the 
requirements that will be levied, nor should it be. The ability 
augment existing resources with individuals who have 
intelligence experience and 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 portion of the 
Intelligence Community Reserve would 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 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, while asking them to notify the 
Community of significant trends and changes in their areas. 
Finally, the need to pay specific attention to building a 
linguistic ``surge'' capability, especially in more unique or 
less known languages, that can be used when needed, has already 
proven to be necessary during crisis periods and should be 
maintained.
    Due to the complexities of issues such as pay, security, 
training and support, the Committee believes that the 
Intelligence Community Reserve should be managed and funded at 
the Community level (within the Community Management Staff), 
ensuring that all valid ``surge'' requirements by all agencies/
offices within the Intelligence Community are planned for and 
addressed as necessary.
    Finally, the Committee notes that the Intelligence 
Community Reserve is not intended 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 concerns.

               subtitle d--infrastructure support office

Section 241--Establishment of infrastructure support office

    New provision. This section establishes the Infrastructure 
Support Office (ISO) for and within the Intelligence Community. 
The Director of the ISO is to be appointed by the DCI.

Section 242--Responsibilities of Director of Infrastructure Support 
        Office

    New provision. This section establishes the 
responsibilities of the Director of the ISO, whose is to be 
placed under the direction of the DDCI for Community 
Management. These responsibilities include administrative and 
logistical functions relating to infrastructure and services of 
common concern, including: personnel management, security, 
Community-level training, communications and automation. 
Moreover, this section directs the Director of the ISO to 
establish standards and information architectures for 
automation equipment throughout the Intelligence Community, 
including being responsible for life-cycle management, 
replacement, and upgrading of such equipment.
    The growth of the Intelligence Community and the 
proliferation of distinct agencies have led to unwarranted 
duplication in what are, essentially, administrative and 
logistical functions. This is not only duplicative and costly, 
but also can harm the ability of the Intelligence Community to 
operate as a corporate whole. Numerous studies and reviews of 
the Community, including Vice President Gore's National 
Performance Review, have concluded that there are efficiencies 
and potential cost savings to be had by consolidating 
infrastructure and ``services of common concern.'' The 
Committee believes that it makes sense to combine under 
centralized management such Community functions as personnel 
management, certain types of training, communications and 
automation. Although many of the personnel performing these 
functions could remain physically in place as support 
detachments, the ISO should manage these individuals and areas 
across the Community, replacing individual agency offices in 
these subject areas.

            subtitle--intelligence community administration

Section 251--Secrecy agreements used in intelligence activities

    Current law. Restatement of 50 United States Code 435, note 
as well as section 306 of the FY 1996 Intelligence 
Authorization Bill.

Section 252--Coordination of counterintelligence matters with the 
        Federal Bureau of Investigation

    Current law. Restatement of 50 United States Code 402a(c) 
as well as section 811(c) of the FY 1995 Intelligence 
Authorization Bill.

Section 253--Intelligence community contracting

    Current law. Restatement of 50 United States Code 403-2 as 
well as section 403 of the FY 1992 Intelligence Authorization 
Bill.

               Title III--Intelligence Community Agencies

                subtitle a--central intelligence agency

Section 301--Central Intelligence Agency

    New provision. This section legislates the existence of a 
Central Intelligence Agency meant to function as the U.S. 
Government's principal all-source, national (e.g. non-
departmental) analytic agency. It is to be headed by the 
Director of Central Intelligence and is to be managed through 
its executive manager, the Deputy Director of Central 
Intelligence.

Section 302--Duties of Director of Central Intelligence with respect to 
        the Central Intelligence Agency

    Current law. Restatement of section 103(d)(3) of the 
National Security Act of 1947.

Section 303--Functions of the Central Intelligence Agency

    New provision. This provision outlines the principal 
functions of the Central Intelligence Agency--functions that, 
according to Section 302, properly come directly under the 
Director of Central Intelligence's authorities and 
responsibilities. The functions are grouped under analytic and 
human source collection categories. The functions described 
roughly correlate to those currently performed by the Central 
Intelligence Agency and parts of the National Intelligence 
Council.
    Analytic: The Central Intelligence Agency is to correlate, 
evaluate, produce and disseminate intelligence derived from all 
sources available to the Intelligence Community relating to 
national security issues. It is to be the nation's preeminent, 
non-departmental, source of such intelligence of the use of the 
President and national leaders. The Central Intelligence Agency 
is also responsible for the coordination of analysis within the 
Intelligence Communty and the establishment of procedures for 
collaborative all-source analysis. This would include the 
production of collaborate intelligence products such as 
National Intelligence Estimates. These functions are based on 
the Central Intelligence Agency's acting as the ``central'' 
analytic entity under the Director of Central Intelligence's 
direct control.
    Human Source Collection: The Central Intelligence Agency is 
responsible for national intelligence collection using 
clandestine human sources and other appropriate means. These 
other means would include a variety of clandestine technical 
techniques and the exploitation of covert relationships with 
foreign entities. The Central Intelligence Agency is to 
undertake those activities in the most effective manner 
possible to facilitate the production of intelligence of value 
to the President and other national consumers, while also 
minimizing to the degree possible the risks inherent in 
clandestine collection. The Central Intelligence Agency is also 
to manage the administrative and technical support activities 
necessary to carry out the clandestine collection mission.
    Finally, the section states that the Central Intelligence 
Agency will perform ``such other functions'' as the Director of 
Central Intelligence may direct. This may include those 
functions given the Director of Central Intelligence under 
Section 108 above.

Section 304--Agreement to transfer DOD clandestine humint to Central 
        Intelligence Agency

    New provision. This section would provide for the 
consolidation of certain clandestine human-source collection 
activities currently conducted by the Defense HUMINT Service 
(DHS) within the Department of Defense into the directorate of 
Operations of the Central Intelligence Agency. This 
consolidation was recommended by the Aspin-Brown Commission. 
The Commission found that, although military personnel are 
important to the successful collection of information from 
human sources about military topics, it is inefficient for the 
Department of Defense to maintain a large, separate 
infrastructure of military collectors who serve only a few 
years before returning to their regular career tracks.
    This section would require the DCI and the Secretary of 
Defense to enter into an agreement, no later than June 30, 
1997, providing for the transfer of the clandestine collection 
elements of the Defense HUMINT Service to the CIA, which should 
be accomplished no later than June 30, 1998. CIA would be 
responsible for all intelligence collection from human sources, 
except those clandestine HUMINT activities undertaken by DOD 
elements in advance of, or as a part of, a specific military 
operation. In collecting HUMINT on foreign military targets, 
CIA should, as needed, use military personnel on detail from 
DOD or the military services.

        subtitie b--the national intelligence evaluation council

Section 321--National Intelligence Evaluation Council

    New provision. This section establishes a National 
Intelligence Evaluation Council (NIEC) within the Intelligence 
Community. Paragraph (b) specifies that NIEC members from among 
senior Intelligence Community analysts and may include 
substantive experts from the public and private sector. The DCI 
shall appoint the members and a Director of the NIEC, who will 
report to the DCI. The Committee believes that it is important 
for the Intelligence Community to broaden its analytic base, 
where possible, drawing upon resources beyond the Intelligence 
Community.
    One of the frequent drawbacks to using private sector 
specialists more frequently is CIA security requirements, that 
may be more appropriate for full-time employees than for part-
time ones. Given the desire to draw on private sector 
specialists, paragraph (c) allows the DCI to prescribe 
appropriate security measures for these NIEC members, 
protecting intelligence sources and methods, but giving the DCI 
leeway regarding security requirements that he may deem 
unnecessary.

Section 322--Functions of the National Intelligence Evaluation Council

    New provision. The NIEC's major purpose to is to serve as a 
means of evaluating the resources devoted to intelligence and 
the intelligence that is subsequently produced. Such 
evaluations are rarely done in the Intelligence Community now, 
in part because there is no strong locus for them. The current 
National Intelligence Council has an Evaluation Staff, but it 
is the intent of this section to strengthen that staff and 
function by elevating it as the NIEC.
    Such ``means to ends'' correlations are not only useful in 
and of themselves, but are of increasing importance as 
resources become more constrained and, in a world where there 
are no dominant national security issues--leading to a greater 
competition among them for resources. In order to carry out 
this role, the NIEC will work closely with the two staffs 
within the Intelligence Community which shall be responsible 
for major resources and tasking decisions, the Community 
Management Staff and the DMI Staff.

Section 323--Staffing of the National Intelligence Evaluation Council

    New provision. The DCI is responsible for making such staff 
and appropriate measures available to the NIEC as needed to 
carry out is functions.

             subtitle C--future of intelligence collection

Section 331--Panel of the Future of Intelligence Collection

    New provision. This section directs the Director of Central 
Intelligence and the Secretary of Defense to establish a panel 
to look at the appropriate organization and management of 
intelligence collection for the future. Its report is to be 
provided to the DCI no later than April 15, 1997. The report 
will go to the President, the Secretary of Defense and the 
Congressional intelligence committees. The Committee believes 
there is broad agreement on the need to re-examine intelligence 
collection, but no consensus on what needs to be done.
    The panel, which may be organized into sub-panels, is to 
have a membership consisting of past and current members of the 
Intelligence Community, senior policy makers as well as any 
public officials or private citizens as the DCI and the 
Secretary of Defense deem fit. They should ensure that the 
membership is balanced in terms of views and technical and 
operational knowledge of the matters under study. The DCI and 
the Secretary of Defense will choose a director of the panel 
from among the panel's membership.
    The panel is to examine several proposals, each of which 
would involve significant change to the existing organization 
and management of intelligence collection. In its deliberations 
the panel should strive to look to how the Intelligence 
Community can best function in the future, and not perform an 
examination of the effectiveness of the Intelligence Community 
at present or in the recent past, except as such an examination 
illuminates the direction that must be taken in the future.
    The section specifies that, in preparing its report, the 
panel must specifically perform feasibility studies of four 
changes to the current Intelligence Community structure: (1) 
the establishment of Clandestine Service; (2) the establishment 
of a Technical Collection Agency; (3) the establishment of a 
Technology Development Office; and (4) the establishment of a 
National Imagery and Mapping Agency.
    The Clandestine Service under consideration would be the 
NFIP agency responsible for the clandestine collection of 
intelligence through human sources and other clandestine means; 
the carrying out of covert action and other appropriate policy-
related activities as the DCI is directed to do by the 
President; and acting as the DCI's principal entity in carrying 
out liaison with foreign intelligence and security services. In 
making its deliberations the panel must keep in mind that this 
particular entity, the Clandestine Service, (unlike the others 
under consideration) will have roles and missions outside the 
realm of intelligence collection. The panel should also pay 
particular attention to the fact that the Clandestine Service's 
activities are, generally speaking, intrinsically risky and 
require the close oversight of the DCI. The panel should also 
pay particular attention as to how military personnel may be 
integrated into the 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 panel should consider whether there are significant 
benefits to be gained from 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, and excluding those clandestine operations 
which are conducted jointly by the CIA and NSA. The goal of 
such a consolidation would be to improve synergistic collection 
at the operator level, integrated muilti-source tasking at the 
collection management level, and cross-discipline trade-offs at 
the resource management level. The panel should consider in 
particular how the agency as proposed would further or hinder 
these goals, and how the first-phase analysts exploiting the 
collected data for time-sensitive reporting should be 
integrated with the all-source analytical community.
    When studying the concept of a National Imagery and Mapping 
Agency, the panel should specifically examine whether such an 
agency is the most effective way to consolidate the imagery 
``community,'' either as a new, stand-alone ``stovepipe'' or as 
a subset of a Technical Collection Agency, as addressed 
previously. The panel should consider the overall effectiveness 
of such an agency in terms of whether and how both national-
level and military requirements can be met, how such an agency 
should be legislated (in Title 10 or in Title 50, for example) 
and specifically what DCI authorities are needed to ensure that 
the DCI can manage collection in a corporate fashion, the 
utility of merging imagery and geospatial resources and the 
effect on military and civilian customers and to what level 
should imagery analysts be incorporated into such an agency, or 
whether imagery analysts should become more integrated in the 
all-source process.
    The panel should consider whether there are significant 
benefits to be gained from consolidating research, development 
and acquisition activities for reconnaissance systems into a 
single agency responsible primarily for space-based, airborne 
and maritime reconnaissance systems. The goal of such a 
consolidation would be to improve coherent development of 
complementary architectures, particularly in the space and air 
realms; promote development of common ground processing and 
dissemination capabilities; and to reduce unnecessary 
duplication and promote the sharing of appropriate 
technologies.

Title IV--Department of Defense Functions in the Intelligence Community

                    subtitle a--secretary of defense

Section 401--Overall Secretary of Defense functions

    New provision. This section states that the Secretary of 
Defense is responsible for performing those intelligence 
functions that he is directed to do by competent authority.

Section 402--Requirement that budgets for intelligence components be 
        adequate

    Current law. Restatement of 50 United States Code 403-
5(a)(1).

Section 403--Implementation of Director of Central Intelligence 
        policies and resources decisions

    Current law. Restatement of 50 United States Code 403-
5(a)(2).

Section 404--Relationship of NFIP activities to tactical intelligence 
        activities

    Current law. Restatement of 50 United States Code 403-
5(a)(3).

Section 405--Responsiveness to operational military forces

    Current law. Restatement of 50 United States Code 403-
5(a)(4).

Section 406--Elimination of waste and unnecessary duplication

    Current law. Restatement of 50 United States Code 403-
5(a)(5).

Section 407--Joint and corporate conduct of defense intelligence

    Current law. Restatement of 50 United States Code 403-
5(a)(6), with slight modification to encourage corporate 
behavior within and among the Intelligence Community agencies.

Section 408--Signals intelligence activities

    Current law. Restatement of Section 105(b)(1) of the 
National Security Act of 1947.

Section 409--Imagery collection, processing, and exploitation

    Current law. Restatement of Section 105(b)(2) of the 
National Security Act of 1947.

Section 410--Overhead reconnaissance systems

    Current law. Restatement of Section 105(b)(3) of the 
National Security Act of 1947.

Section 411--Use of elements of Department of Defense

    Current law. Restatement of 50 United States Code 403-5(c).

Section 412--Consultations regarding appointment of certain 
        intelligence officials

    Current law with some modification. Paragraph (a) is a 
restatement of provisions first enacted by the Congress on 
December 5, 1991 in section 922(a)(2) of Public Law 102-190. 
This provision urged formal consultation between the Secretary 
of Defense and the Director of Central Intelligence prior to 
the Secretary making a formal recommendation to the President 
on the appointments of the Director of the Defense Intelligence 
Agency or the Director of the National Security Agency. This 
provision seeks to extend the consultation requirement of the 
nomination processes of the Director of the National 
Reconnaissance Office and the Head of the Central Imagery 
Office.

             subtitle b--director of military intelligence

Section 421--Director of Military Intelligence

    New provision. This section establishes the position of the 
Director of Military Intelligence (DMI) to serve as the 
military focal point for management of military intelligence 
functions within the Intelligence Community. The DMI shall hold 
the rank of either a lieutenant general or vice admiral and be 
appointed by the President, by and with the advise and consent 
of the Senate. Consistent with the consultation requirement set 
forth in Section 412 of this bill, this provision requires that 
the Secretary of Defense consult with the DCI prior to 
forwarding a DMI nominee's recommendation for appointment to 
the President.

Section 422--Functions of the Director of Military Intelligence

    New provision. The intent of the DMI position is to provide 
the single military focal point for management within the 
national intelligence community. The DMI is the senior 
uniformed military intelligence advisor to the Secretary of 
Defense and the Joint Chiefs of Staff. The DMI is responsible 
for intelligence support to military forces world-wide by 
managing and executing the Joint Military Intelligence Program 
(JMIP) and coordinating the individual service Tactical 
Intelligence and Related Activities (TIARA) efforts. This 
includes the responsibility to ensure the military portions of 
the intelligence community operate as a single end-to-end 
architectural entity and that systems meet established 
technical interoperability standards.

Section 423--Role of Director of Military Intelligence in the 
        intelligence community

    New provision. This section states that, as Director of the 
Defense Intelligence Agency and as a senior member of the 
Intelligence Community, the DMI is responsible to Director of 
Central Intelligence (DCI) for the conduct of national 
intelligence operations. The intent is for the DMI to function 
both as the senior military intelligence officer within the 
Department of Defense, reporting to the Secretary of Defense, 
and as a senior official within the Intelligence Community 
responsible for the DCI.

Section 424--Planning and budget functions

    New provision. The DMI is the responsible agent within the 
Department of Defense for coordinating and building the 
military portions of the overall intelligence community 
budgets. This includes the Joint Military Intelligence Program 
(JMIP), Tactical Intelligence and Related Activities (TIARA), 
and Defense Department portions of the National Foreign 
Intelligence Program (NFIP). As the manager of the JMIP, the 
DMI is specifically responsible for building the JMIP budget. 
As coordinating authority for the service TIARA budget 
requests, the DMI is responsible within the larger intelligence 
community architectures. In this capacity the DMI is to ensure 
service systems meet established technical interoperability 
standards.

Section 425--Staff

    New provision. The DMI's staff will be sufficient to 
support the DMI's roles and functions as well as to provide 
necessary coordination between the DMI and the Community 
Management Staff. The DMI Staff is a necessary counterpart to 
CMS and provides a ``bridge'' between national and defense 
intelligence.

                subtitle c--defense intelligence agency

Section 441--Defense Intelligence Agency generally

    Current law with some modifications. Consistent with 
section 1.12(a) of Executive Order 12333, this section 
identifies the DMI serving concurrently as the Director of the 
Defense Intelligence Agency. Paragraph(b) notes that the DMI 
shall carry out his responsibilities as head of the DIA under 
the direction of the Secretary of Defense; the head of the DIA 
shall also be subject to the authority and guidance of the DCI 
for those activities that support national intelligence 
requirements.

Section 442--Functions of the Defense Intelligence Agency

    Current law. Restatement of 50 United States Code 403-
5(b)(4) and 50 United States Code 403-5(b)(5).

                  subtitle d--the military departments

Section 451--Intelligence capabilities of the military departments

    Current law. Restatement of 50 United States Code 403-
5(b)(6).

                   subtitle e--planning and budgeting

Section 461--Joint military intelligence program

    New provision. This section defines the Joint Military 
Intelligence program and lists its component programs. The DMI 
is the program manager for the JMIP.

Section 462--Tactical intelligence and related activities (tiara)

    New provision. This section defines the Tactical 
Intelligence and Related Activities (TIARA) aggregation. The 
TIARA aggregation provides for those systems, functions and 
operations necessary for individual service and agency direct 
intelligence support.

Section 463--Notice to Congress of changes in JMIP and TIARA

    New provision. The intent of this section is to restrict 
the Department of Defense's ability to unilaterally remove or 
add programs to the JMIP or TIARA accounts without notifying, 
and proving sufficient justification to, Congress one year in 
advance.

           subtitle f--civilian intelligence personnel policy

Section 481--Standardization of personnel policies for intelligence 
        components of Department of Defense

    New provision. This section would amend Chapter 83 of title 
10, United States Code, authorizing the Secretary of Defense to 
establish by regulation an excepted service personnel 
management architecture common to all components of the defense 
intelligence community. This would expand existing authority 
under Chapter 83 of Title 10. It would create the Civilian 
Intelligence Personnel Management System, amended in Title 10 
in 1986.
    Intelligence community leaders want, and need, the 
capability to adjust the defense intelligence community 
personnel force in response to factors such as obsolete 
missions, obsolete skills, elimination or reduction of lowest 
priority missions and functions, and investment in future 
technological and mission skills. This bill would provide for a 
performance based personnel system that will help meet these 
needs for the intelligence components of the Department into 
the 21st century. This provision would function under the 
assumption that the delegation of implementing authority to the 
intelligence components will be continued.
    Subsection (a) of the amended section 1601 would authorize 
the Secretary to establish a common personnel architecture for 
all components of the defense intelligence community, with 
general and senior level positions and a senior executive 
service. Existing veterans' preference policies will remain in 
place for each intelligence component. Subsection (a) was 
amended to remove the statutory cap for senior executive 
positions. This subsection currently contains language that 
places a cap of one-half of one percent of the total number of 
all civilian intelligence positions for senior executive 
service positions in the military service components of the 
defense intelligence community. SES positions in the defense 
intelligence agencies, such as DIA and NSA, are not now capped 
in this manner, however. This disparity hampers community 
management. To permit the Secretary the ability to allocate 
most effectively SES positions across the entire Department of 
Defense components within the Intelligence Community, the 
proposed legislation would remove the cap from military service 
components of the Intelligence Community. This much needed 
flexibility, however, will not lead to an increase in the 
overall number of SES positions in the Defense Department's 
components of the Intelligence Community. Senior executive 
service ceilings currently set under Congressional oversight 
will not be exceeded.
    Subsection (b) of Section 1601 would authorize the 
Secretary to fix basic rates of pay throughout the defense 
intelligence community in relation to subpart D of part III of 
Title 5, United States Code, for similar levels of duties and 
responsibilities, and to pay other allowances for comparable 
positions authorized by Title 5. In addition, the word 
``benefits'' in this subsection would ensure inclusion of 
currently authorized foreign service-type overseas benefits. 
Subsection (b) would ensure comparability with Senior Executive 
Service positions established pursuant to section 3132 (a) (2) 
of title 5 and Senior Level positions above GS-15 established 
pursuant to section 5108 (a) of Title 5.
    Subsections (c) and (d) of Section 1601 would be amended to 
apply to all components of the Intelligence Community within 
the Department of Defense.
    In creating a new Section 1602 to Title 10, subsections (a) 
and (b) would authorize the Secretary to establish an 
Intelligence Senior Executive Service within the Department of 
Defense intelligence components and to award rank to members of 
that Service in accordance with section 4507 of title 5.
    Subsection (c) of the new Section 1602 would authorize the 
Secretary to appoint Intelligence Senior Level positions where 
necessary to successfully compete on the market for needed 
technological expertise where executive management skills are 
not necessary.
    In establishing a new Section 1603 to Title 10, subsection 
(a) would clarify the authority of the Secretary to use time 
limited appointments when needed to meet a temporary surge 
requirement such as a need for additional linguistic capacity 
for a current ``hot spot''. Time limited appointments may also 
be used for up to a 5 year period where a current need for an 
increase in skills may eventually evolve into a more permanent 
requirement. In such an event, observed good performers under a 
time limited appointment may be hired into the defense 
intelligence community service at the conclusion of their time 
limited appointment.
    Subsection (b) of the new Section 1603 would continue the 
termination authority currently held by all components of the 
Department of Defense components of the Intelligence Community 
to terminate an employee of the Department of Defense 
intelligence services, whenever that action is in the interests 
of the United States and other termination provisions of law 
cannot be invoked consistent with the national security. It is 
envisioned that this authority would be invoked within the 
defense community only when absolutely necessary, consistent 
with past practice.
    Subsection (c) of the new Section 1603 would authorize the 
Secretary to prescribe regulations for the separation of 
Department of Defense Intelligence Community employees to 
adjust the defense intelligence force in order to maintain the 
necessary and required skills mix within the Intelligence 
Community. Such separations are to be performance based. 
Employees under this Act will be reviewed for separation, 
retraining, or transfer in consideration of:
        (A) performance;
        (B) tenure of employment;
        (C) length of service; and
        (D) veterans' preference.
    Paragraph (3) of this subsection would require the 
Secretary of Defense to prescribe regulations providing appeal 
rights within the Department of Defense. It is intended that 
all employees affected by an action under this new Adjustment 
of Force authority have the same right to appeal within the 
Department and that there be no administrative review outside 
the Department such as under Chapters 35 and 75 of Title 5, 
United States Code, or any other law which would otherwise 
provide for such review.
    Subsection (b) of the new Section 1603 would provide for 
notification of Congress of the regulations prescribed under 
this legislation.
    A new Section 1604 of Title 10 would define the Department 
of Defense's components within the Intelligence Community for 
the purposes of this legislation. In order to ensure maximum 
mobility between all Intelligence Community components and to 
eliminate the bureaucratic approach required today, all 
intelligence functional components, including the Office of the 
Assistant Secretary of Defense for Command, Control, 
Communications and Intelligence, are defined. Subsection (b) 
repeals several provisions which are now superseded buy this 
legislation. Subsection (c) makes several clerical amendments 
to Chapter 83 of Title 10 so as to extend coverage of the 
provisions in the new Sections 1601, 1602, 1603, and 1604 to 
civilian intelligence employees of the Defense Intelligence 
Agency and the Central Imagery Office.

Section 482--Temporary program for civilian workforce reduction in the 
        National Security Agency

    New provision. This section would provide the National 
Security Agency (NSA), through the authority of the Secretary 
of Defense, with a temporary tool during fiscal year 1997 to 
stimulate voluntary attrition through early retirements if 
necessary to achieve workforce downsizing goals.
    Subsection (a) would authorize NSA to establish a program 
to encourage eligible employees to take early retirement. These 
employee requirements would help NSA achieve its downsizing 
objectives by contributing to the downward glide path for the 
size of the workforce and facilitating a reapportionment of 
budget dollars from personnel to investment expenditures. The 
incentive for early retirement is a lump-sum payment 
representing the total amount of the annuity reduction required 
by 5 United States Code section 8339(h). Under Section 8339(h), 
the Civil Service Retirement System (CSRS) annunities are 
reduced by \1/6\th of 1 percent for each month (equaling two 
percent for each year) the employee is under age 55 at the time 
of retirement. Subsection (a) would authorize NSA to offer a 
one-time payment equal to the present value of the total early 
retirement penalty incurred under 5 United States Code Section 
8339(h).
    Subsection (b)(1) would require NSA to obtain the approval 
of the Secretary of Defense before exercising this authority.
    Subsection (b)(2) would restrict this incentive to NSA 
employees.
    Subsection (b)(3) would permit the Director of NSA, to 
limit the scope of the program and offer the incentive 
selectively. Selective use of the incentive would allow NSA to 
encourage attrition of employees in over-strength career 
fields, rater than offering the incentive across the board and 
possibly losing personnel with critical skills.
    Subsection (b)(4) would limit this authority to a one-time 
program, lasting no more than ninety days, in fiscal year 1997.
    Subsection (c)(1) would require NSA to make a single 
payment.
    Subsection (c)(2) would require the payment to equal the 
total present value amount of the early retirement penalty 
incurred pursuant to 5 United States Code Section 8339(h).
    Subsection (c)(3) would provide that the payment may not be 
used to calculate entitlement to any other government benefit.
    Subsection (c)(4) would prohibit employees from obtaining 
both the lump sum payment under this section and the separation 
pay provided in 5 United States Code Section 5597. While NSA is 
striving to downsize its workforce, there is no rationale to 
support giving a double benefit for employees who voluntarily 
separate.
    Subsection (c)(5) would stipulate that payment is subject 
to availability of appropriations.
    Subsection (d) would require retired employees to repay the 
lump sum to the NSA in accordance with the provisions set forth 
in the legislation.
    Subsection (e) would identify the source for the lump sum 
payments to be those funds appropriated for the National 
Security Agency which may be properly used for the payment of 
salaries and expenses.
    Subsection (d)(2) would clarify that NSA may use Operation 
and Maintenance funds authorized for NSA in the 1997 
Intelligence Authorization Act for lump sum payments. This 
section would not, and is not intended to, facilitate an 
increase in the NSA operating budget for fiscal year 1997.
    Subsection (f) would define ``employee'' to limit its 
applicability in this section to employees of NSA who are 
covered by CSRS.

  Title V--National Security Council and Related Boards and Committees

Section 501--Recodification of laws relating to National Security 
        Council and related boards and committees in Executive Office 
        of the President

    Current law. Restatement of 50 United States Code 402(a)-
(f), (h).

Section 502--Committee on Foreign Intelligence

    New Provision. This section amends Section 101 of the 
National Security Act of 1947 by adding a new Section 103, 
which creates a Committee on Foreign Intelligence (CFI) of the 
National Security Council. The CFI would consist of the 
Director of Central Intelligence, the Secretary of State, the 
Secretary of Defense, the Attorney General, the Chairman of the 
Joint Chiefs of Staff, and the Assistant to the President for 
National Security Affairs, who would serve as Chairman of the 
CFI--or their deputies.
    The purpose of the CFI, which was recommended by the Aspin-
Brown Commission and DCI Deutch, would be to provide a better 
institutional mechanism to provide policy-level guidance for 
the conduct of U.S. intelligence activities. The CFI would 
identify the intelligence required to address U.S. national 
security interests, and establish priorities to address these 
requirements. The NSC has, on occasion, issued statements of 
intelligence requirements, but the Committee believes that the 
process for setting requirements and priorities should be 
institutionalized and should be performed on a regular basis by 
a group that will be more readily available than is the NSC 
itself, which is comprised of the President, the Vice President 
and the Secretaries of State and Defense.
    The CFI would also establish policy guidelines for 
intelligence activities, such as whether intelligence agencies 
should collect economic or environmental intelligence; whether 
they should target friendly governments for intelligence 
collection; whether they should use certain forms of cover; and 
whether they should enter into relationships with individuals 
or other governments whose conduct may not live up to U.S. 
standards. Intelligence agencies have historically been left to 
make these difficult decisions themselves; in the Committee's 
view, these decisions should be made at the policy level.
    Paragraph (c) proposes the creation of a semiannual 
strategic intelligence review process between the CFI and the 
Congressional intelligence committees. Each semiannual review 
meeting would review significant strategic intelligence trends, 
strategic intelligence reporting, and anticipated Intelligence 
Community requirements for the following six to twelve months.
    The President recently announced his intent to create a CFI 
by executive order. The Committee applauds the President's 
decision to create the CFI, but believes that the entity should 
be created by statute, rather than by executive order, to 
ensure continuity from Administration to Administration. The 
Committee notes, in this regard, that the CFI was first created 
in President Ford's Executive Order 11905 in 1976; that 
executive order has been superseded twice since then. With such 
broad agreement as to the utility and structure of the CFI, 
enactment by statute appears appropriate and desirable.

Section 503--Transnational threats

    New provision. This section amends Title 1 of the National 
Security Act of 1947 by adding a new Section 104, which would 
establish a Committee on Transnational Threats of the National 
Security Council. The Committee would consist of the DCI, the 
Secretary of Defense, the Secretary of State, the Attorney 
General, and the Assistant to the President for National 
Security Affairs, who would chair the Committee.
    The creation of such a Committee was recommended by the 
Aspin-Brown Commission, which found that the Federal government 
is not well organized to combat certain ``transnational'' 
activities--international terrorism, drug trafficking, weapons 
proliferation, and organized crime--that threaten the national 
security of the United States. The Aspin-Brown Commission 
referred to transnational activities as ``global crime'' to 
emphasize their links to global criminal elements. The 
Committee prefers to continue to refer to such activities as 
``transnational threats'' to emphasize, as discussed below, 
that law enforcement is only one of several possible Federal 
government responses to the problem.
    A number of federal departments and agencies play important 
roles in combatting transnational threats, but their activities 
are not well coordinated. Moreover, in the absence of higher 
level direction, law enforcement agencies have usually been 
left to take the lead. This has often resulted in conflicts 
with other agencies, including and within the various 
components of the Intelligence Community. In the Committee's 
view, a high-level group is needed to decide, as a policy 
matter, when to give priority to law enforcement, to 
intelligence, or to foreign policy or other considerations in 
responding to transnational threats. The Committee believes 
that a committee of the National Security Council would be best 
suited to fulfill this role. As with the Committee on Foreign 
Intelligence, the Committee believes the Committee on 
Transnational Threats should be established by legislation.
    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 Department of Justice has objected to giving the 
Committee on Transnational Threats authority to ``direct'' law 
enforcement activities on the ground that law enforcement 
activities should not be directed on the basis of 
considerations unrelated to the enforcement of law. In the 
Committee's view, one of the key reasons to create a high-level 
Committee on Transnational Threats is to ensure that 
considerations other than law enforcement are taken into 
account in the Federal Government's response to terrorism and 
other transnational threats. The Attorney General and law 
enforcement officials would still be responsible for directing 
law enforcement operations on a day-to-say basis, but the 
broader policy decisions regarding whether to give priority to 
law enforcement, or to intelligence, or to foreign policy 
interests, should be made at a higher level.

   Title vi--Technical and Conforming Amendments, and Effective Date

Section 601--Restatement of National Security Agency Act of 1959

    Current law. Restatement of National Security Act of 1959. 
This redrafting retains the original text while reorganizing 
and establishing the bill into a more comprehensible format.

Section 602--Amendments to title V, United States Code

    Technical and conforming amendments.

Section 603--Repeal of provisions recodified in new act

    Technical and conforming amendments.

Section 604--National Security Act of 1947

    Technical and conforming amendments.

Section 605--Abolition of National Intelligence Council

    The creation of the National Intelligence Evaluation 
Council in sections 321, 322, and 323 of this legislation will 
replace the National Intelligence Council (NIC), which this 
section dissolves. Those analysts (National Intelligence 
Officers and their support) currently preparing the estimates 
will be housed under the auspices of CIA or DIA, as 
appropriate. It is envisioned by the Committee that these 
analysts will be called upon, as appropriate, to act as the 
senior issue managers for their areas of expertise.

Section 606--Effective date

    This legislation shall take effect six months after the 
enactment of the Intelligence Community Act.

                           Committee Position

    On May 9, 1996, the Permanent Select Committee on 
Intelligence, a quorum being present, approved the bill, as 
amended by an amendment in the nature of a substitute, and, by 
a recorded vote of 6 ayes to 3 noes, ordered it favorably 
reported. On that recorded vote the Members present voted as 
follows: Mr. Combest (Chairman)--aye; Mr. Young--aye; Mr. 
Hansen--aye; Mr. Lewis--aye; Mr. Goss--aye; Mr. McCollum--aye; 
Mr. Dicks--no; Mr. Richardson--no; Mr. Coleman--no. The 
Committee, by voice vote, also authorized and directed the 
Chairman, or his designee, to make a motion under Rule XX of 
the House at the appropriate time to expedite taking the bill 
to conference with the Senate.

Findings and Recommendations of the Committee on Government Reform and 
                               Oversight

    With respect to clause 2(1)(3)(D) of rule XI of the House 
of Representatives, the Committee has not received a report 
from the Committee on Government Reform and Oversight 
pertaining to the subject of this bill.

                           Oversight Findings

    With respect to clause 2(1)(3)(A) of rule XI of the Rules 
of the House of Representatives, the Committee held 6 hearings, 
as well as 20 Member briefings and over 200 staff briefings, on 
the issues raised by H.R. 3237. Testimony was heard from the 
Director of Central Intelligence, Deputy Secretary of Defense, 
numerous program managers and various other knowledgeable 
witnesses on the activities and plans of the Intelligence 
Community covered by the Intelligence Community Act. The bill, 
as reported by the Committee, reflects conclusions reached by 
the Committee in light of that oversight activity.

                              Fiscal Data

    Pursuant to clause of Rule XIII of the Rules of the House 
of Representatives, the Committee attempted to ascertain annual 
outlays resulting from the bill during fiscal year 1997 and the 
four following fiscal years. The results of such efforts are 
reflected in the cost estimate prepared by the Director of the 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974, which is included in this 
report pursuant to clause 2(1)(3)(C) of House Rule XI.

                     Congressional Budget Committee

    In compliance with clause 2(1)(3) (B) and (C) of rule XI of 
the Rules of the House of Representatives, an estimate prepared 
by the Congressional Budget Office submitted pursuant to 
sections 308 and 403 of the Congressional Budget Act of 1974 is 
as follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 28, 1996.
Hon. Larry Combest,
Chairman, Permanent Select Committee on Intelligence,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3237, the 
Intelligence Community Act, as ordered reported by the House 
Permanent Select Committee on Intelligence on May 9, 1996.
    The bill would affect direct spending and thus would be 
subject to pay-as-you-go procedures under section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               Congressional Budget Office Cost Estimate

    1. Bill number: H.R. 3237.
    2. Bill title: Intelligence Community Act.
    3. Bill status: As ordered reported by the House Permanent 
Select Committee on Intelligence on May 9, 1996.
    4. Bill purpose: The bill would define the responsibilities 
of various federal agencies for intelligence functions. It 
would provide certain authorities concerning financial and 
personnel management including creation of a program to 
maintain a pool of personnel with skills that are important to 
intelligence activities and who could be called to service 
during an emergency.
    5. Estimated cost to the Federal Government:

----------------------------------------------------------------------------------------------------------------
                                                     1996     1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                                DIRECT SPENDING                                                 
                                                                                                                
             Civil Service Retirement                                                                           
Spending Under Current Law:                                                                                     
    Budget Authority.............................   39,120   41,146   43,067   45,057   47,062   49,149   51,316
    Estimated Outlays............................   39,041   41,064   42,980   44,967   46,968   49,051   51,214
Proposed Changes:                                                                                               
    Estimated Budget Authority...................        0        6       12       10        9        7        5
    Estimated Outlays............................        0        6       12       10        9        7        5
                                                                                                                
             Civil Service Retirement                                                                           
Spending Under the Bill:                                                                                        
    Estimated Budget Authority...................   39,120   41,152   43,079   45,067   47,071   49,156   51,321
    Estimated Outlays............................   39,041   41,070   42,992   44,977   46,977   49,058   51,219
                                                                                                                
                                    SPENDING SUBJECT TO APPROPRIATIONS ACTION                                   
                                                                                                                
Estimated Authorization Level....................        0       40        2        2        2        2        2
Estimated Outlays................................        0       40        2        2        2        2        2
----------------------------------------------------------------------------------------------------------------

    6. Basis of estimate: The estimate assumes that H.R. 3237 
will be enacted by October 1, 1996, and that the full amounts 
authorized will be appropriated. CBO used historical spending 
rates for estimating outlays.
    Direct spending. Section 482 would provide incentives for 
National Security Agency (NSA) employees to retire before age 
55. CBO estimates that this section would increase direct 
spending outlays by $6 million in 1997, $12 million in 1998, 
$10 million in 1999, $9 million in 2000, $7 million in 2001, 
and $5 million in 2002 for benefit payments from the Civil 
Service Retirement System (CSRS). Under current law, employees 
who take early retirement receive a permanent reduction in 
their annuity of 2 percent per year for each year under age 55 
at retirement. This section would allow the NSA to pay to 
employees retiring before age 55 a lump-sum payment equal to 
the present value of the penalty projected over their expected 
lifetime. Eligibility for the incentive under section 482 would 
be limited to a 90-day period during fiscal year 1997.
    Direct spending costs would result because some employees 
under age 55, who would have waited for their normal retirement 
age--assumed to be 55--would accelerate their retirement. CBO 
estimates that 15 percent, or about 450, of those employees 
under age 55 would take the incentive and retire. Because NSA 
currently has the authority to offer early retirement and 
separation incentive payments of up to $25,000, some of the 450 
employees would retire early under current law anyway. CBO 
estimates that about 310 employees under age 55 retiring under 
the bill would not retire under current law. Based on data 
supplied by NSA showing the distribution by age of employees 
under age 55 CBO estimates the average age of an employee 
taking advantage of the benefits of section 482 to be 50 and 
the average annuity of these individuals to be about $39,000 in 
1997.
    Spending subject to appropriations action. CBO estimates 
the provisions to centralize and redefine the responsibilities 
of agencies performing intelligence functions would have no 
significant budgetary effect. Depending on how the bill is 
implemented, these provisions could result in increased costs 
or some savings in appropriated funds, but in either case the 
budgetary impact would be relatively small.
    Two other provisions, however, would provide new authority 
that would clearly increase costs. First, section 233 would 
establish an Intelligence Community Reserve--a pool of 
specialists who could be called to service in an emergency. A 
cadre of approximately 100 consultants would periodically 
provide expertise that the intelligence community does not 
routinely possess on geographic regions and languages. The 
Director of Central Intelligence would be authorized to provide 
monetary incentives, training, and support. In addition, 
funding would be needed for an information data base. Assuming 
the reserve is implemented as currently envisioned, this 
provision would cost about $2 million annually.
    Second, section 482, which would allow NSA to provide 
incentives for employees to retiree before reaching age 55, 
also would result in costs that would be funded by 
appropriations. The incentive payments made by NSA to employees 
equaling the present value of the 2 percent annuity penalty 
would total $38 million in fiscal year 1997. CBO assumes the 
average incentive payment made to nearly 450 people would be 
about $84,000.
    7. Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act of 1985 sets up pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts through 1998. The bill would have the following pay-
as-you-go impact:

------------------------------------------------------------------------
                                            1996       1997       1998  
------------------------------------------------------------------------
Change in Outlays......................          0          6         12
Change in Receipts.....................  .........      (\1\)           
------------------------------------------------------------------------
\1\ Not applicable.                                                     

    8. Estimated cost to state, local, and tribal governments: 
Section 4 of Public Law 104-4 excludes from application of that 
act legislative provisions that are necessary for the national 
security. CBO has determined that all the provisions of H.R. 
3237 fit within this exclusion.
    9. Estimated impact on the private sector: CBO has 
determined that all the provisions of H.R. 3237 fit within the 
national security exclusion.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Federal Cost Estimate: Wayne 
Boyington, Jeannette Van Winkle. Impact on State, Local, and 
Tribal Governments: Marjorie Miller, Pepper Santalucia. Impact 
on Private Sector: Neil Singer.
    12. Estimate approved by: Robert A. Sunshine for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

                        Committee Cost Estimates

    The Committee agrees with the estimate of the Congressional 
Budget Office.

                     Inflationary Impact Statement

    Pursuant to clause 2(1)(4) of rule XI of the Rules of the 
House of Representatives, the Committee has attempted to 
estimate the inflationary impact of enactment of the bill.
    The Committee finds no adequate method to identify the 
inflationary impact of this legislation. The bill does not 
provide specific budget authority.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                      TITLE 10, UNITED STATES CODE

          * * * * * * *

                    Subtitle A--General Military Law

            PART I--ORGANIZATION AND GENERAL MILITARY POWERS

Chap.                                                               Sec.
      Definitions....................................................101
     * * * * * * *

                           PART II--PERSONNEL

     * * * * * * *
      Defense Intelligence [Agency and Central Imagery Office] Civilian 
        Personnel...................................................1601
     * * * * * * *

 CHAPTER 8--DEFENSE AGENCIES AND DEPARTMENT OF DEFENSE FIELD ACTIVITIES

     * * * * * * *

           SUBCHAPTER II--MISCELLANEOUS DEFENSE AGENCY MATTERS

Sec.
[201. Consultation regarding appointment of certain intelligence 
          officials.]
201. Consultation regarding appointment of heads of certain intelligence 
          components.
     * * * * * * *

[Sec. 201. Consultation regarding appointment of certain intelligence 
                    officials

  [Before submitting a recommendation to the President 
regarding the appointment of an individual to the position of 
Director of the Defense Intelligence Agency or Director of the 
National Security Agency, the Secretary of Defense shall 
consult with the Director of Central Intelligence regarding the 
recommendation.]

Sec. 201. Consultation regarding appointment of heads of certain 
                    intelligence components

  (a) Consultations With Regard to Directors of NSA and NRO.--
Before submitting a recommendation to the President regarding 
the appointment of an individual to the position of Director of 
the National Security Agency or Director of the National 
Reconnaissance Office, the Secretary of Defense shall consult 
with the Director of Central Intelligence regarding the 
recommendation.
  (b) Appointment of Head of Central Imagery Office.--The 
Secretary shall appoint, upon the recommendation of the 
Director of Central Intelligence, the head of the Central 
Imagery Office within the Department of Defense.
          * * * * * * *

                           PART II--PERSONNEL

          * * * * * * *
Chap.                                                               Sec.
      Enlistments....................................................501
     * * * * * * *
      Defense Intelligence [Agency and Central Imagery Office] Civilian 
        Personnel...................................................1601
     * * * * * * *

                     CHAPTER 81--CIVILIAN EMPLOYEES

Sec.
1581.  Foreign National Employees Separation Pay Account.
     * * * * * * *
[1590.  Management of civilian intelligence personnel of the military 
          departments.]
     * * * * * * *

[Sec. 1590. Management of civilian intelligence personnel of the 
                    military departments

  [(a) The Secretary of Defense may, without regard to the 
provisions of any other law relating to the number, 
classification, or compensation of employees--
          [(1) establish such positions, including positions in 
        the Senior Executive Service, for civilian intelligence 
        officers and employees of the military departments as 
        may be necessary to carry out the intelligence 
        functions of such departments, except that the total 
        number of positions in the Senior Executive Service 
        established pursuant to this section may not exceed 
        one-half of one percent of the total number of all 
        civilian intelligence positions established pursuant to 
        this section;
          [(2) appoint individuals to such positions; and
          [(3) fix the compensation of such individuals for 
        service in such positions.
  [(b) The Secretary of Defense shall, subject to subsection 
(c), fix the rates of basic pay for positions established under 
subsection (a) in relation to the rates of basic pay provided 
in the General Schedule under section 5332 of title 5 for 
positions subject to such Schedule which have corresponding 
levels of duties and responsibilities. The Secretary shall also 
fix rates of pay for positions in the Senior Executive Service 
established pursuant to this section that are not in excess of 
the maximum rate or less than the minimum rate of basic pay 
established pursuant to section 5382 of title 5. Except in the 
case of a civilian intelligence officer or employee of a 
military department serving as a member of the Senior Executive 
Service of a military department, no civilian intelligence 
officer or employee of a military department may be paid basic 
pay at a rate in excess of the highest rate of basic pay 
payable under such General Schedule.
  [(c) The Secretary of Defense is authorized, consistent with 
section 5341 of title 5, to adopt such provisions of such title 
as provide for prevailing rate systems of basic pay and to 
apply such provisions to positions for civilian intelligence 
officers or employees in or under which the military 
departments may employ individuals described by section 
5342(a)(2)(A) of such title.
  [(d) In addition to the basic pay payable under subsection 
(b), civilian intelligence officers and employees of the 
military departments who are citizens or nationals of the 
United States and who are stationed outside the continental 
United States or in Alaska may be paid allowances, in 
accordance with regulations prescribed by the Secretary of 
Defense, not in excess of an allowance authorized to be paid by 
section 5941(a) of title 5 for employees whose rates of basic 
pay are fixed by statute. Such allowances shall be based on--
          [(1) living costs substantially higher than in the 
        District of Columbia;
          [(2) conditions of environment which differ 
        substantially from conditions of environment in the 
        continental United States and warrant an allowance as a 
        recruitment incentive; or
          [(3) both of the factors described in paragraphs (1) 
        and (2).
  [(e)(1) Notwithstanding any other provision of law, the 
Secretary of Defense may terminate the employment of any 
civilian intelligence officer or employee of a military 
department whenever he considers that action to be in the 
interests of the United States and he determines that the 
procedures prescribed in other provisions of law that authorize 
the termination of the employment of such officer or employee 
cannot be invoked in a manner consistent with the national 
security. The decisions of the Secretary under this paragraph 
are final and may not be appealed or reviewed outside the 
Department of Defense. The Secretary of Defense shall promptly 
notify the Permanent Select Committee on Intelligence of the 
House of Representatives and the Select Committee on 
Intelligence of the Senate whenever this termination authority 
is exercised.
  [(2) Any termination of employment under this subsection 
shall not affect the right of the officer or employee involved 
to seek or accept employment with any other department or 
agency of the United States if he is declared eligible for such 
employment by the Director of the Office of Personnel 
Management.
  [(3) The Secretary of Defense may delegate authority under 
this subsection only to the Deputy Secretary of Defense or the 
Secretary concerned or both. An action to terminate any 
civilian intelligence officer or employee of a military 
department by either such officer shall be appealable to the 
Secretary of Defense.
  [(f) With regard to any position in the Senior Executive 
Service which may be established pursuant to this section, the 
Secretary of Defense shall prescribe regulations to implement 
this section which are consistent with the requirements set 
forth in sections 3131, 3132(a)(2), 3393a, 3396(c), 3592, 
3595(a), 5384, and 6304, subsections (a), (b), and (c) of 
section 7543 (except that any hearing or appeal to which a 
member of the Senior Executive Service is entitled shall be 
held or decided pursuant to regulations issued by the 
Secretary), and subchapter II of chapter 43 of title 5. The 
Secretary of Defense shall also prescribe, to the extent 
practicable, regulations to implement such other provisions of 
title 5 as apply to members of the Senior Executive Service or 
to individuals applying for positions in the Senior Executive 
Service.
  [(g) The President, based on the recommendations of the 
Secretary of Defense, may award a rank referred to in section 
4507 of title 5 to members of the Senior Executive Service 
whose positions may be established pursuant to this section. 
The awarding of such a rank shall be made in a manner 
consistent with the provisions of that section.]
          * * * * * * *

  [CHAPTER 83--DEFENSE INTELLIGENCE AGENCY AND CENTRAL IMAGERY OFFICE 
                          CIVILIAN PERSONNEL]

          CHAPTER 83--DEFENSE INTELLIGENCE CIVILIAN PERSONNEL

Sec.
[1601.  Defense Intelligence Senior Executive Service.
[1602.  Defense Intelligence Agency merit pay system.
[1603.  Limit on pay.
[1604.  Civilian personnel management.]
1601.  Management of civilian intelligence personnel.
1602.  Intelligence Senior Executive Service.
1603.  Administrative provisions.
1604.  Intelligence components of the Department of Defense defined.
     * * * * * * *
1607.  Merit pay system: Defense Intelligence Agency and Central Imagery 
          Office.
          * * * * * * *

[Sec. 1601. Defense Intelligence Senior Executive Service

  [(a) The Secretary of Defense may by regulation establish a  
personnel system  for senior civilian personnel within the 
Defense Intelligence Agency and the Central Imagery Office to 
be known as the Defense Intelligence Senior Executive Service. 
The regulations establishing the Defense Intelligence Senior 
Executive Service shall--
          [(1) meet the requirements set forth in section 3131 
        of title 5 for the Senior Executive Service;
          [(2) provide that positions in the Defense 
        Intelligence Senior Executive Service meet requirements 
        that are consistent with the provisions of section 
        3132(a)(2) of title 5;
          [(3) provide rates of pay for the Defense 
        Intelligence Senior Executive Service that are not in 
        excess of the maximum rate or less than the minimum 
        rate of basic pay established for the Senior Executive 
        Service under section 5382 of title 5, and that are 
        adjusted at the same time and to the same extent as 
        rates of basic pay for the Senior Executive Service are 
        adjusted;
          [(4) provide a performance appraisal system for the 
        Defense Intelligence Senior Executive Service that 
        conforms to the provisions of subchapter II of chapter 
        43 of title 5;
          [(5) provide for removal consistent with section 3592 
        of such title, and removal or suspension consistent 
        with subsections (a), (b), and (c) of section 7543 of 
        title 5 (except that any hearing or appeal to which a 
        member of the Defense Intelligence Senior Executive 
        Service is entitled shall be held or decided pursuant 
        to procedures established by regulations of the 
        Secretary of Defense);
          [(6) permit the payment of performance awards to 
        members of the Defense Intelligence Senior Executive 
        Service consistent with the provisions applicable to 
        performance awards under section 5384 of title 5;
          [(7) provide that members of the Defense Intelligence 
        Senior Executive Service may be granted sabbatical 
        leaves consistent with the provisions of section 
        3396(c) of title 5; and
          [(8) provide for the recertification of members of 
        the Defense Intelligence Senior Executive Service 
        consistent with the provisions of section 3393a of 
        title 5.
  [(b) Except as otherwise provided in subsection (a), the 
Secretary of Defense may--
          [(1) make applicable to the Defense Intelligence 
        Senior Executive Service any of the provisions of title 
        5 applicable to applicants for or members of the Senior 
        Executive Service; and
          [(2) appoint, promote, and assign individuals to 
        positions established within the Defense Intelligence 
        Senior Executive Service without regard to the 
        provisions of title 5 governing appointments and other 
        personnel actions in the competitive service.
  [(c) The President, based on the recommendations of the 
Secretary of Defense, may award ranks to members of the Defense 
Intelligence Senior Executive Service in a manner consistent 
with the provisions of section 4507 of title 5.
  [(d) Notwithstanding any other provision of this section, the 
Secretary of Defense may detail or assign any member of the 
Defense Intelligence Senior Executive Service to serve in a 
position outside the Defense Intelligence Agency or the Central 
Imagery Office in which the member's expertise and experience 
may be of benefit to the Defense Intelligence Agency, the 
Central Imagery Office, or another Government agency. Any such 
member shall not by reason of such detail or assignment lose 
any entitlement or status associated with membership in the 
Defense Intelligence Senior Executive Service.
  [(e) The Secretary of Defense shall each year submit to the 
Permanent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of the 
Senate, at the time the Budget is submitted by the President to 
the Congress for the next fiscal year, a report on the 
executive personnel in the Defense Intelligence Agency and the 
Central Imagery Office. The report shall include--
          [(1) the total number of positions added to or 
        deleted from the Defense Intelligence Senior Executive 
        Service during the preceding fiscal year;
          [(2) the number of executive personnel (including all 
        members of the Defense Intelligence Senior Executive 
        Service) being paid at each grade level and pay rate in 
        effect at the end of the preceding fiscal year;
          [(3) the number, distribution, and amount of awards 
        paid to members of the Defense Intelligence Senior 
        Executive Service during the preceding fiscal year; and
          [(4) the number of individuals removed from the 
        Defense Intelligence Senior Executive Service during 
        the preceding fiscal year for less than fully 
        successful performance.

[Sec. 1602. Defense Intelligence Agency merit pay system

  The Secretary of Defense may by regulation establish a merit 
pay system for such employees of the Defense Intelligence 
Agency and Central Imagery Office as the Secretary considers 
appropriate. The merit pay system shall be designed to carry 
out purposes consistent with those set forth in section 5401 of 
title 5, as in effect on October 31, 1993.

[Sec. 1603. Limit on pay

  [Nothing in sections 1601 and 1602 of this title shall be 
construed to allow the aggregate amount payable to a member of 
the Defense Intelligence Senior Executive Service under those 
sections during any fiscal year to exceed the annual rate 
payable for positions at level I of the Executive Schedule in 
effect at the end of such year.

[Sec. 1604. Civilian personnel management

  [(a) General Personnel Authority.--The Secretary of Defense 
may, without regard to the provisions of any other law relating 
to the number, classification, or compensation of Federal 
employees--
          [(1) establish such positions for employees in the 
        Defense Intelligence Agency and the Central Imagery 
        Office as the Secretary considers necessary to carry 
        out the functions of that Agency and Office, including 
        positions designated under subsection (f) as Defense 
        Intelligence Senior Level positions;
          [(2) appoint individuals to those positions; and
          [(3) fix the compensation for service in those 
        positions.
  [(b) Authority To Fix Rates of Basic Pay; Other Allowances 
and Benefits.--(1) The Secretary of Defense shall, subject to 
subsection (c), fix the rates of basic pay for positions 
established under subsection (a) in relation to the rates of 
basic pay provided in subpart D of part III of title 5 for 
positions subject to that title which have corresponding levels 
of duties and responsibilities. Except as otherwise provided by 
law, an employee of the Defense Intelligence Agency or the 
Central Imagery Office may not be paid basic pay at a rate in 
excess of the maximum rate payable under section 5376 of title 
5.
  [(2) The Secretary of Defense may provide employees of the 
Defense Intelligence Agency and the Central Imagery Office 
compensation (in addition to basic pay under paragraph (1)) and 
benefits, incentives, and allowances consistent with, and not 
in excess of the levels authorized for, comparable positions 
authorized by title 5.
  [(c) Prevailing Rates Systems.--The Secretary of Defense may, 
consistent with section 5341 of title 5, adopt such provisions 
of that title as provide for prevailing rate systems of basic 
pay and may apply those provisions to positions in or under 
which the Defense Intelligence Agency or the Central Imagery 
Office may employ individuals described by section 
5342(a)(2)(A) of such title.
  [(d) Allowances Based on Living Costs and Environment for 
Employees Stationed Outside Continental United States or in 
Alaska.--(1) In addition to the basic compensation payable 
under subsection (b), employees of the Defense Intelligence 
Agency and the Central Imagery Office described in paragraph 
(3) may be paid an allowance, in accordance with regulations 
prescribed by the Secretary of Defense, at a rate not in excess 
of the allowance authorized to be paid under section 5941(a) of 
title 5 for employees whose rates of basic pay are fixed by 
statute.
  [(2) Such allowance shall be based on--
          [(A) living costs substantially higher than in the 
        District of Columbia;
          [(B) conditions of environment which--
                  [(i) differ substantially from conditions of 
                environment in the continental United States; 
                and
                  [(ii) warrant an allowance as a recruitment 
                incentive; or
          [(C) both of those factors.
  [(3) This subsection applies to employees who--
          [(A) are citizens or nationals of the United States; 
        and
          [(B) are stationed outside the continental United 
        States or in Alaska.
  [(e) Termination of Employees.--(1) Notwithstanding any other 
provision of law, the Secretary of Defense may terminate the 
employment of any employee of the Defense Intelligence Agency 
or the Central Imagery Office if the Secretary--
          [(A) considers such action to be in the interests of 
        the United States; and
          [(B) determines that the procedures prescribed in 
        other provisions of law that authorize the termination 
        of the employment of such employee cannot be invoked in 
        a manner consistent with the national security.
  [(2) A decision by the Secretary of Defense to terminate the 
employment of an employee under this subsection is final and 
may not be appealed or reviewed outside the Department of 
Defense.
  [(3) The Secretary of Defense shall promptly notify the 
Permanent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of the 
Senate whenever the Secretary terminates the employment of any 
employee under the authority of this subsection.
  [(4) Any termination of employment under this subsection 
shall not affect the right of the employee involved to seek or 
accept employment with any other department or agency of the 
United States if that employee is declared eligible for such 
employment by the Director of the Office of Personnel 
Management.
  [(5) The authority of the Secretary of Defense under this 
subsection may be delegated only to the Deputy Secretary of 
Defense, the Director of the Defense Intelligence Agency (with 
respect to employees of the Defense Intelligence Agency), and 
the Director of the Central Imagery Office (with respect to 
employees of the Central Imagery Office). An action to 
terminate employment of an employee by any such officer may be 
appealed to the Secretary of Defense.
  [(f) Defense Intelligence Senior Level Positions.--(1) In 
carrying out subsection (a)(1), the Secretary may designate 
positions described in paragraph (3) as Defense Intelligence 
Senior Level positions. The total number of positions 
designated under this subsection, when combined with the total 
number of positions in the Defense Intelligence Senior 
Executive Service under section 1601 of this title, may not 
exceed the total number of positions in the Defense 
Intelligence Senior Executive Service as of June 1, 1995.
  [(2) Positions designated under this subsection shall be 
treated as equivalent for purposes of compensation to the 
senior level positions to which section 5376 of title 5 is 
applicable.
  [(3) Positions that may be designated as Defense Intelligence 
Senior Level positions are positions in the Defense 
Intelligence Agency and Central Imagery Office that (A) are 
classified above the GS-15 level, (B) emphasize functional 
expertise and advisory activity, but (C) do not have the 
organizational or program management functions necessary for 
inclusion in the Defense Intelligence Senior Executive Service.
  [(4) Positions referred to in paragraph (3) include Defense 
Intelligence Senior Technical positions and Defense 
Intelligence Senior Professional positions. For purposes of 
this subsection--
          [(A) Defense Intelligence Senior Technical positions 
        are positions covered by paragraph (3) that involve any 
        of the following:
                  [(i) Research and development.
                  [(ii) Test and evaluation.
                  [(iii) Substantive analysis, liaison, or 
                advisory activity focusing on engineering, 
                physical sciences, computer science, 
                mathematics, biology, chemistry, medicine, or 
                other closely related scientific and technical 
                fields.
                  [(iv) Intelligence disciplines including 
                production, collection, and operations in close 
                association with any of the activities 
                described in clauses (i), (ii), and (iii) or 
                related activities; and
          [(B) Defense Intelligence Senior Professional 
        positions are positions covered by paragraph (3) that 
        emphasize staff, liaison, analytical, advisory, or 
        other activity focusing on intelligence, law, finance 
        and accounting, program and budget, human resources 
        management, training, information services, logistics, 
        security, and other appropriate fields.
  [(g) ``Employee'' Defined as Including Officers.--In this 
section, the term ``employee'', with respect to the Defense 
Intelligence Agency or the Central Imagery Office, includes any 
civilian officer of that Agency or Office.]

Sec. 1601. Management of civilian intelligence personnel

  (a) General Personnel Authority.--The Secretary of Defense 
may, without regard to the provisions of any other law relating 
to the appointment, number, classification, or compensation of 
employees--
          (1) establish such excepted service positions, 
        including positions in the Intelligence Senior 
        Executive Service and positions that may be designated 
        as Intelligence Senior Level positions under section 
        1602(c) of this title, for civilian intelligence 
        officers and employees of the intelligence components 
        of the Department of Defense as may be necessary to 
        carry out the intelligence functions of such 
        components;
          (2) appoint individuals to such positions with 
        appropriate consideration of veterans' preference; and
          (3) fix the compensation of such individuals for 
        service in such positions.
  (b) Authority To Fix Rates of Basic Pay, Other Allowances and 
Benefits.--(1) The Secretary of Defense shall, subject to 
subsection (c), fix the rates of basic pay for positions 
established under this section in relation to the rates of 
basic pay provided in subpart D of part III of title 5, for 
positions subject to that title which have corresponding levels 
of duties and responsibilities. Except as otherwise provided by 
law, a civilian intelligence employee of an intelligence 
component of the Department of Defense, including an 
Intelligence Senior Level employee or a member of the 
Intelligence Senior Executive Service, may not be paid basic 
pay in excess of the maximum rate payable under section 
5306(e), section 5376, or section 5382 of title 5, 
respectively.
  (2) The Secretary of Defense may provide civilian employees 
of the intelligence components of the Department of Defense 
compensation (in addition to basic pay) including benefits, 
incentives, and allowances consistent with, and not in excess 
of the level authorized for, comparable positions authorized by 
title 5.
  (c) Prevailing Rate Systems.--The Secretary of Defense may, 
consistent with section 5341 of title 5, adopt such provisions 
of that title as provide for prevailing rate systems of basic 
pay and may apply those provisions to positions for civilian 
employees in or under which the Department may employ 
individuals described by section 5342(a)(2)(A) of such title.
  (d) Allowances Based on Living Costs and Environment.--(1) In 
addition to the basic pay payable under subsection (b), 
civilian intelligence officers and employees of the 
intelligence components of the Department of Defense who are 
citizens or nationals of the United States and are stationed 
outside the continental United States or in Alaska may be paid 
allowances, in accordance with regulations prescribed by the 
Secretary of Defense, at a rate not in excess of the allowance 
authorized to be paid by section 5941(a) of title 5 for 
employees whose rates of basic pay are fixed by statute.
  (2) Such allowances shall be based on--
          (A) living costs substantially higher than in the 
        District of Columbia;
          (B) conditions of environment which differ 
        substantially from conditions of environment in the 
        continental United States and warrant an allowance as a 
        recruitment incentive; or
          (C) both of the factors specified in subparagraphs 
        (A) and (B).

Sec. 1602. Intelligence Senior Executive Service

  (a) Intelligence Senior Executive Service.--With regard to 
any positions equivalent to the Senior Executive Service which 
may be established pursuant to section 1601 of this title, the 
Secretary of Defense shall prescribe regulations which are 
consistent with the requirements set forth in sections 3131, 
3132(a)(2), 3396(c), 3592, 3595(a), 5384, and 6304 of title 5 
and subsections (a), (b), and (c) of section 7543 of title 5 
(except that any hearing or appeal shall be held or decided 
pursuant to regulations issued by the Secretary). To the extent 
practicable, the Secretary shall also prescribe regulations to 
implement such other provisions of title 5 as apply to members 
of the Senior Executive Service or to individuals applying for 
positions in the Senior Executive Service.
  (b) Award of Rank to Members of the Intelligence Senior 
Executive Service.--The President, based on the recommendations 
of the Secretary of Defense, may award a rank referred to in 
section 4507 of title 5 to members of the Intelligence Senior 
Executive Service whose positions may be established pursuant 
to this section. The awarding of such rank shall be made in a 
manner consistent with the provisions of that section.
  (c) Intelligence Senior Level Positions.--In carrying out 
section 1601(a) of this title, the Secretary of Defense may 
designate positions as Intelligence Senior Level positions. 
Positions which may be so designated are those which require 
functional expertise and advisory capacity, but do not have the 
organizational or program management functions necessary for 
inclusion in the Intelligence Senior Executive Service. Before 
designating any such position, the Secretary shall prescribe 
regulations to implement this subsection.

Sec. 1603. Administrative provisions

  (a) Time Limited Appointments.--(1) The Secretary of Defense 
may by regulation authorize the use of time-limited 
appointments when hiring and appointing an employee to certain 
prescribed positions within an intelligence component of the 
Department of Defense. An employee who has a time-limited 
appointment is not eligible for conversion to a permanent 
Intelligence Senior Executive Service position without 
competition.
  (2) In this subsection, the term ``time-limited appointment'' 
means an appointment to a position within an intelligence 
component of the Department of Defense for a period not to 
exceed five years.
  (b) Termination of Civilian Intelligence Employees.--(1) 
Notwithstanding any other provision of law, the Secretary of 
Defense may terminate the employment of any civilian 
intelligence officer or employee of an intelligence component 
of the Department of Defense if the Secretary--
          (A) considers that action to be in the interests of 
        the United States; and
          (B) determines that the procedures prescribed in 
        other provisions of law that authorize the termination 
        of the employment of such officer or employee cannot be 
        invoked in a manner consistent with national security.
  (2) A decision by the Secretary under this subsection is 
final and may not be appealed or reviewed outside the 
Department of Defense.
  (3) The Secretary of Defense shall promptly notify the 
Permanent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of the 
Senate whenever the Secretary terminates the employment of any 
officer or employ under the authority of this section.
  (4) Any termination of employment under this subsection does 
not affect the right of the officer or employee involved to 
seek or accept employment with any other department or agency 
of the United States if that officer or employee is declared 
eligible for such employment by the Director of the Office of 
Personnel Management.
  (5) The authority of the Secretary of Defense under this 
subsection may be delegated only to the Deputy Secretary of 
Defense or (with respect to officers and employees under their 
respective jurisdictions) the heads of the intelligence 
components of the Department of Defense. An action to terminate 
employment of any civilian intelligence officer or employee of 
the Department by any such officer may be appealed to the 
Secretary of Defense.
  (c) Adjustment in Force.--(1) Notwithstanding sections 
3501(b) and 3502 of title 5 and subject to paragraph (2), the 
Secretary of Defense may prescribe regulations for the 
separation of civilian employees of the intelligence components 
of the Department of Defense including members of the 
Intelligence Senior Executive Service and employees assigned to 
Intelligence Senior Level positions, in an adjustment in force 
which give effect to--
          (A) performance;
          (B) tenure of employment;
          (C) length of service as computed under section 
        3502(a) (A), (B), and (C) of title 5; and
          (D) veterans' preference, subject to sections 
        3501(a)(3) and 3502(b) of title 5.
  (2) An adjustment in force in the Intelligence Senior 
Executive Service shall be consistent with section 3595(a) of 
title 5.
  (3) The regulations prescribed under paragraph (1) shall 
include provisions for appeal rights within the Department in 
lieu of the provisions of any other law or regulations for all 
employees affected by actions under this subsection.
  (d) Notification of Congress.--The Secretary of Defense shall 
notify Congress of any regulations prescribed to carry out this 
section or section 1601 or 1602 of this title. Such notice 
shall be provided by submitting a copy of the regulations to 
the Permanent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of the 
Senate at least 60 days before such regulations take effect.

Sec. 1604. Intelligence components of the Department of Defense defined

  In this chapter, the term ``intelligence component of the 
Department of Defense'' means any of the following:
          (1) The National Security Agency.
          (2) The Defense Intelligence Agency.
          (3) The Central Imagery Office.
          (4) The National Reconnaissance Office.
          (5) The intelligence components of the military 
        departments.
          (6) Any other intelligence component of the 
        Department of Defense so designated by the Secretary of 
        Defense.
          (7) Any successor to any such agency or office.
          * * * * * * *

Sec. 1607. Merit pay system: Defense Intelligence Agency and Central 
                    Imagery Office

  The Secretary of Defense may by regulation establish a merit 
pay system for such employees of the Defense Intelligence 
Agency and Central Imagery Office as the Secretary considers 
appropriate. The merit pay system shall be designed to carry 
out purposes consistent with those set forth in section 5401 of 
title 5, as in effect on October 31, 1993.
          * * * * * * *
                              ----------                              


                     NATIONAL SECURITY ACT OF 1959

 AN ACT To provide certain administrative authorities for the National 
                Security Agency, and for other purposes

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``National Security Agency Act of 
1959''.
  [Sec. 2. (a) The Secretary of Defense (or his designee) is 
authorized to establish such positions, and to appoint thereto, 
without regard to the civil service laws, such officers and 
employees, in the National Security Agency, as may be necessary 
to carry out the functions of such agency. The rates of basic 
pay for such positions shall be fixed by the Secretary of 
Defense (or his designee for this purpose) in relation to the 
rates of basic pay provided for in subpart D of part III of 
title 5, United States Code, for positions subject to such 
title which have corresponding levels of duties and 
responsibilities. Except as otherwise provided by law, no 
officer or employee of the National Security Agency shall be 
paid basic pay at a rate in excess of the maximum rate payable 
under section 5376 of such title and not more than 70 such 
officers and employees shall be paid within the range of rates 
authorized in section 5376 of such title.
  [(b) The Secretary of Defense (or his designee) may provide 
officers and employees of the National Security Agency other 
compensation, benefits, incentives, and allowances which are 
consistent with, and do not exceed the levels authorized for, 
such compensation, benefits, incentives, or allowances by title 
5, United States Code.
  [Sec. 3. Section 1581(a) of title 10, United States Code, as 
modified by section 12(a) of the Federal Employees Salary 
Increase Act of 1958 (72 Stat. 213), is amended by striking out 
``, and not more than fifty civilian positions in the National 
Security Agency,'' and the words ``and the National Security 
Agency, respectively,''.
  [Sec. 4. The Secretary of Defense (or his designee for the 
purpose) is authorized to--
          [(1) establish in the National Security Agency (A) 
        professional engineering positions primarily concerned 
        with research and development and (B) professional 
        positions in the physical and natural sciences, 
        medicine, and cryptology; and
          [(2) fix the respective rates of pay of such 
        positions at rates equal to rates of basic pay 
        contained in grades 16, 17, and 18 of the General 
        Schedule set forth in section 5332 of title 5, United 
        States Code.
Officers and employes appointed to positions established under 
this section shall be in addition to the number of officers and 
employees appointed to positions under section 2 of this Act 
who may be paid at rates equal to rates of basic pay contained 
in grades 16, 17, and 18 of the General Schedule.
  [Sec. 5. Officers and employees of the National Security 
Agency who are citizens or nationals of the United States may 
be granted additional compensation, in accordance with 
regulations which shall be prescribed by the Secretary of 
Defense, not in excess of additional compensation authorized by 
section 207 of the Independent Offices Appropriation Act, 1949, 
as amended (5 U.S.C. 118h), for employees whose rates of basic 
compensation are fixed by statute.
  [Sec. 6. (a) Except as provided in subsection (b) of this 
section, nothing in this Act or any other law (including, but 
not limited to, the first section and section 2 of the Act of 
August 28, 1935 (5 U.S.C. 654)) shall be construed to require 
the disclosure of the organization or any function of the 
National Security Agency, of any information with respect to 
the activities thereof, or of the names, titles, salaries, or 
number of the persons employed by such agency.
  [(b) The reporting requirements of section 1582 of title 10, 
United States Code, shall apply to positions established in the 
National Security Agency in the manner provided by section 4 of 
this Act.
  [Sec. 8. The foregoing provisions of this Act shall take 
effect on the first day of the first pay period which begins 
later than the thirtieth day following the date of enactment of 
this Act.
  [Sec. 9. (a) Notwithstanding section 322 of the Act of June 
30, 1932 (40 U.S.C. 278a), section 5536 of title 5, United 
States Code, and section 2675 of title 10, United States Code, 
the Director of the National Security Agency, on behalf of the 
Secretary of Defense, may lease real property outside the 
United States, for periods not exceeding ten years, for the use 
of the National Security Agency for special cryptologic 
activities and for housing for personnel assigned to such 
activities.
  [(b) The Director of the National Security Agency, on behalf 
of the Secretary of Defense, may provide to certain civilian 
and military personnel of the Department of Defense who are 
assigned to special cryptologic activities outside the United 
States and who are designated by the Secretary of Defense for 
the purposes of this subsection--
          [(1) allowances and benefits--
                  [(A) comparable to those provided by the 
                Secretary of State to members of the Foreign 
                Service under chapter 9 of title I of the 
                Foreign Service Act of 1980 (22 U.S.C. 4081 et 
                seq.) or any other provision of law; and
                  [(B) in the case of selected personnel 
                serving in circumstances similar to those in 
                which personnel of the Central Intelligence 
                Agency serve, comparable to those provided by 
                the Director of Central Intelligence to 
                personnel of the Central Intelligence Agency;
          [(2) housing (including heat, light, and household 
        equipment) without cost to such personnel, if the 
        Director of the National Security Agency, on behalf of 
        the Secretary of Defense determines that it would be in 
        the public interest to provide such housing; and
          [(3) special retirement accrual in the same manner 
        provided in section 303 of the Central Intelligence 
        Agency Retirement Act (50 U.S.C. 403 note) and in 
        section 18 of the Central Intelligence Agency Act of 
        1949.
  [(c) The authority of the Director of the National Security 
Agency, on behalf of the Secretary of Defense, to make payments 
under subsections (a) and (b), and under contracts for leases 
entered into under subsection (a), is effective for any fiscal 
year only to the extent that appropriated funds are available 
for such purpose.
  [(d) Members of the Armed Forces may not receive benefits 
under both subsection (b)(1) and title 37, United States Code, 
for the same purpose. The Secretary of Defense shall prescribe 
such regulations as may be necessary to carry out this 
subsection.
  [(e) Regulations issued pursuant to subsection (b)(1) shall 
be submitted to the Permanent Select Committee on Intelligence 
of the House of Representatives and the Select Committee on 
Intelligence of the Senate before such regulations take effect.
  [Sec. 10. (a) The Director of the National Security Agency 
shall arrange for, and shall prescribe regulations concerning, 
language and language-related training programs for military 
and civilian cryptologic personnel. In establishing programs 
under this section for language and language-related training, 
the Director--
          [(1) may provide for the training and instruction to 
        be furnished, including functional and geographic area 
        specializations;
          [(2) may arrange for training and instruction through 
        other Government agencies and, in any case in which 
        appropriate training or instruction is unavailable 
        through Government facilities, through nongovernmental 
        facilities that furnish training and instruction useful 
        in the fields of language and foreign affairs;
          [(3) may support programs that furnish necessary 
        language and language-related skills, including, in any 
        case in which appropriate programs are unavailable at 
        Government facilities, support through contracts, 
        grants, or cooperation with nongovernmental educational 
        institutions; and
          [(4) may obtain by appointment or contract the 
        services of individuals to serve as language 
        instructors, linguists, or special language project 
        personnel.
  [(b)(1) In order to maintain necessary capability in foreign 
language skills and related abilities needed by the National 
Security Agency, the Director, without regard to subchapter IV 
of chapter 55 of title 5, United States Code, may provide 
special monetary or other incentives to encourage civilian 
cryptologic personnel of the Agency to acquire or retain 
proficiency in foreign languages or special related abilities 
needed by the Agency.
  [(2) In order to provide linguistic training and support for 
cryptologic personnel, the Director--
          [(A) may pay all or part of the tuition and other 
        expenses related to the training of personnel who are 
        assigned or detailed for language and language-related 
        training, orientation, or instruction; and
          [(B) may pay benefits and allowances to civilian 
        personnel in accordance with chapters 57 and 59 of 
        title 5, United States Code, and to military personnel 
        in accordance with chapter 7 of title 37, United States 
        Code, and applicable provisions of title 10, United 
        States Code, when such personnel are assigned to 
        training at sites away from their designated duty 
        station.
  [(c)(1) To the extent not inconsistent, in the opinion of the 
Secretary of Defense, with the operation of military 
cryptologic reserve units and in order to maintain necessary 
capability in foreign language skills and related abilities 
needed by the National Security Agency, the Director may 
establish a cryptologic linguist reserve. The cryptologic 
linguist reserve may consist of former or retired civilian or 
military cryptologic personnel of the National Security Agency 
and of other qualified individuals, as determined by the 
Director of the Agency. Each member of the cryptologic linguist 
reserve shall agree that, during any period of emergency (as 
determined by the Director), the member shall return to active 
civilian status with the National Security Agency and shall 
perform such linguistic or linguistic-related duties as the 
Director may assign.
  [(2) In order to attract individuals to become members of the 
cryptologic linguist reserve, the Director, without regard to 
subchapter IV of chapter 55 of title 5, United States Code, may 
provide special monetary incentives to individuals eligible to 
become members of the reserve who agree to become members of 
the cryptologic linguist reserve and to acquire or retain 
proficiency in foreign languages or special related abilities.
  [(3) In order to provide training and support for members of 
the cryptologic linguist reserve, the Director--
          [(A) may pay all or part of the tuition and other 
        expenses related to the training of individuals in the 
        cryptologic linguist reserve who are assigned or 
        detailed for language and language-related training, 
        orientation, or instruction; and
          [(B) may pay benefits and allowances in accordance 
        with chapters 57 and 59 of title 5, United States Code, 
        to individuals in the cryptologic linguist reserve who 
        are assigned to training at sites away from their homes 
        or regular places of business.
  [(d)(1) The Director, before providing training under this 
section to any individual, may obtain an agreement with that 
individual that--
          [(A) in the case of current employees, pertains to 
        continuation of service of the employee, and repayment 
        of the expenses of such training for failure to fulfill 
        the agreement, consistent with the provisions of 
        section 4108 of title 5, United States Code; and
          [(B) in the case of individuals accepted for 
        membership in the cryptologic linguist reserve, 
        pertains to return to service when requested, and 
        repayment of the expenses of such training for failure 
        to fulfill the agreement, consistent with the 
        provisions of section 4108 of title 5, United States 
        Code.
  [(2) The Director, under regulations prescribed under this 
section, may waive, in whole or in part, a right of recovery 
under an agreement made under this subsection if it is shown 
that the recovery would be against equity and good conscience 
or against the public interest.
  [(e)(1) Subject to paragraph (2), the Director may provide to 
family members of military and civilian cryptologic personnel 
assigned to representational duties outside the United States, 
in anticipation of the assignment of such personnel outside the 
United States or while outside the United States, appropriate 
orientation and language training that is directly related to 
the assignment abroad.
  [(2) Language training under paragraph (1) may not be 
provided to any individual through payment of the expenses of 
tuition or other cost of instruction at a non-Government 
educational institution unless appropriate instruction is not 
available at a Government facility.
  [(f) The Director may waive the applicability of any 
provision of chapter 41 of title 5, United States Code, to any 
provision of this section if he finds that such waiver is 
important to the performance of cryptologic functions.
  [(g) The authority of the Director to enter into contracts or 
to make grants under this section is effective for any fiscal 
year only to the extent that appropriated funds are available 
for such purpose.
  [(h) Regulations issued pursuant to this section shall be 
submitted to the Permanent Select Committee on Intelligence of 
the House of Representatives and the Select Committee on 
Intelligence of the Senate before such regulations take effect.
  [(i) The Director of the National Security Agency, on behalf 
of the Secretary of Defense, may, without regard to section 
4109(a)(2)(B) of title 5, United States Code, pay travel, 
transportation, storage, and subsistence expenses under chapter 
57 of such title to civilian and military personnel of the 
Department of Defense who are assigned to duty outside the 
United States for a period of one year or longer which involves 
cryptologic training, language training, or related 
disciplines.
  [Sec. 11. The Administrator of General Services, upon the 
application of the Director of the National Security Agency, 
may provide for the protection in accordance with section 3 of 
the Act of June 1, 1948 (40 U.S.C. 318b), of certain facilities 
(as designated by the Director of such Agency) which are under 
the administration and control of, or are used by, the National 
Security Agency in the same manner as if such facilities were 
property of the United States over which the United States has 
acquired exclusive or concurrent criminal jurisdiction.
  [Sec. 12. (a)(1) The Secretary of Defense (or his designee) 
may by regulation establish a personnel system for senior 
civilian cryptologic personnel in the National Security Agency 
to be known as the Senior Cryptologic Executive Service. The 
regulations establishing the Senior Cryptologic Executive 
Service shall----
          [(A) meet the requirements set forth in section 3131 
        of title 5, United States Code, for the Senior 
        Executive Service;
          [(B) provide that positions in the Senior Cryptologic 
        Executive Service meet requirements that are consistent 
        with the provisions of section 3132(a)(2) of such 
        title;
          [(C) provide, without regard to section 2, rates of 
        pay for the Senior Cryptologic Executive Service that 
        are not in excess of the maximum rate or less than the 
        minimum rate of basic pay established for the Senior 
        Executive Service under section 5382 of such title, and 
        that are adjusted at the same time and to the same 
        extent as rates of basic pay for the Senior Executive 
        Service are adjusted;
          [(D) provide a performance appraisal system for the 
        Senior Cryptologic Executive Service that conforms to 
        the provisions of subchapter II of chapter 43 of such 
        title;
          [(E) provide for removal consistent with section 3592 
        of such title, and removal or suspension consistent 
        with subsections (a), (b), and (c) of section 7543 of 
        such title (except that any hearing or appeal to which 
        a member of the Senior Cryptologic Executive Service is 
        entitled shall be held or decided pursuant to 
        procedures established by regulations of the Secretary 
        of Defense or his designee);
          [(F) permit the payment of performance awards to 
        members of the Senior Cryptologic Executive Service 
        consistent with the provisions applicable to 
        performance awards under section 5384 of such title;
          [(G) provide that members of the Senior Cryptologic 
        Executive Service may be granted sabbatical leaves 
        consistent with the provisions of section 3396(c) of 
        such title.
          [(H) provide for the recertification of members of 
        the Senior Cryptologic Executive Service consistent 
        with the provisions of section 3393a of such title.
  [(2) Except as otherwise provided in subsection (a), the 
Secretary of Defense (or his designee) may--
          [(A) make applicable to the Senior Cryptologic 
        Executive Service any of the provisions of title 5, 
        United States Code, applicable to applicants for or 
        members of the Senior Executive Service; and
          [(B) appoint, promote, and assign individuals to 
        positions established within the Senior Cryptologic 
        Executive Service without regard to the provisions of 
        title 5, United States Code, governing appointments and 
        other personnel actions in the competitive service.
  [(3) The President, based on the recommendations of the 
Secretary of Defense, may award ranks to members of the Senior 
Cryptologic Executive Service in a manner consistent with the 
provisions of section 4507 of title 5, United States Code.
  [(4) Notwithstanding any other provision of this section, the 
Director of the National Security Agency may detail or assign 
any member of the Senior Cryptologic Executive Service to serve 
in a position outside the National Security Agency in which the 
member's expertise and experience may be of benefit to the 
National Security Agency or another Government agency. Any such 
member shall not by reason of such detail or assignment lose 
any entitlement or status associated with membership in the 
Senior Cryptologic Executive Service.
  [(b) The Secretary of Defense (or his designee) may by 
regulation establish a merit pay system for such employees of 
the National Security Agency as the Secretary of Defense (or 
his designee) considers appropriate. The merit pay system shall 
be designed to carry out purposes consistent with those set 
forth in section 5401(a) of title 5, United States Code.
  [(c) Nothing in this section shall be construed to allow the 
aggregate amount payable to a member of the Senior Cryptologic 
Executive Service under this section during any fiscal year to 
exceed the annual rate payable for positions at level I of the 
Executive Schedule in effect at the end of such year.
  [Sec. 13. (a) The Director of the National Security Agency 
may make grants to private individuals and institutions for the 
conduct of cryptologic research. An application for a grant 
under this section may not be approved unless the Director 
determines that the award of the grant would be clearly 
consistent with the national security.
  [(b) The grant program established by subsection (a) shall be 
conducted in accordance with the Federal Grant and Cooperative 
Agreement Act of 1977 (41 U.S.C. 501 et seq.) to the extent 
that such Act is consistent with and in accordance with section 
6 of this Act.
  [(c) The authority of the Director to make grants under this 
section is effective for any fiscal year only to the extent 
that appropriated funds are available for such purpose.
  [Sec. 14. Funds appropriated to an entity of the Federal 
Government other than an element of the Department of Defense 
that have been specifically appropriated for the purchase of 
cryptologic equipment, materials, or services with respect to 
which the National Security Agency has been designated as the 
central source of procurement for the Government shall remain 
available for a period of three fiscal years.
  [Sec. 15. (a) No person may, except with the written 
permission of the Director of the National Security Agency, 
knowingly use the words ``National Security Agency'', the 
initials ``NSA'', the seal of the National Security Agency, or 
any colorable imitation of such words, initials, or seal in 
connection with any merchandise, impersonation, solicitation, 
or commercial activity in a manner reasonably calculated to 
convey the impression that such use is approved, endorsed, or 
authorized by the National Security Agency.
  [(b) Whenever it appears to the Attorney General that any 
person is engaged or is about to engage in an act or practice 
which constitutes or will constitute conduct prohibited by 
subsection (a), the Attorney General may initiate a civil 
proceeding in a district court of the United States to enjoin 
such act or practice. Such court shall proceed as soon as 
practicable to the hearing and determination of such action and 
may, at any time before final determination, enter such 
restraining orders or prohibitions, or take such other action 
as is warranted, to prevent injury to the United States or to 
any person or class of persons for whose protection the action 
is brought.
  [Sec. 16. (a) The purpose of this section is to establish an 
undergraduate training program, which may lead to the 
baccalaureate degree, to facilitate the recruitment of 
individuals, particularly minority high school students, with a 
demonstrated capability to develop skills critical to the 
mission of the National Security Agency, including mathematics, 
computer science, engineering, and foreign languages.
  [(b) The Secretary of Defense is authorized, in his 
discretion, to assign civilian employees of the National 
Security Agency as students at accredited professional, 
technical, and other institutions of higher learning for 
training at the undergraduate level in skills critical to 
effective performance of the mission of the Agency.
  [(c) The National Security Agency may pay, directly or by 
reimbursement to employees, expenses incident to assignments 
under subsection (b), in any fiscal year only to the extent 
that appropriated funds are available for such purpose.
  [(d)(1) To be eligible for assignment under subsection (b), 
an employee of the Agency must agree in writing--
          [(A) to continue in the service of the Agency for the 
        period of the assignment and to complete the 
        educational course of training for which the employee 
        is assigned;
          [(B) to continue in the service of the Agency 
        following completion of the assignment for a period of 
        one-and-a-half years for each year of the assignment or 
        part thereof;
          [(C) to reimburse the United States for the total 
        cost of education (excluding the employee's pay and 
        allowances) provided under this section to the employee 
        if, prior to the employee's completing the educational 
        course of training for which the employee is assigned, 
        the assignment or the employee's employment with the 
        Agency is terminated either by the Agency due to 
        misconduct by the employee or by the employee 
        voluntarily; and
          [(D) to reimburse the United States if, after 
        completing the educational course of training for which 
        the employee is assigned, the employee's employment 
        with the Agency is terminated either by the Agency due 
        to misconduct by the employee or by the employee 
        voluntarily, prior to the employee's completion of the 
        service obligation period described in subparagraph 
        (B), in an amount that bears the same ratio to the 
        total cost of the education (excluding the employee's 
        pay and allowances) provided to the employee as the 
        unserved portion of the service obligation period 
        described in subparagraph (B) bears to the total period 
        of the service obligation described in subparagraph 
        (B).
  [(2) Subject to paragraph (3), the obligation to reimburse 
the United States under an agreement described in paragraph 
(1), including interest due on such obligation, is for all 
purposes a debt owing the United States.
  [(3)(A) A discharge in bankruptcy under title 11, United 
States Code, shall not release a person from an obligation to 
reimburse the United States required under an agreement 
described in paragraph (1) if the final decree of the discharge 
in bankruptcy is issued within five years after the last day of 
the combined period of service obligation described in 
subparagraphs (A) and (B) of paragraph (1).
  [(B) The Secretary of Defense may release a person, in whole 
or in part, from the obligation to reimburse the United States 
under an agreement described in paragraph (1) when, in his 
discretion, the Secretary determines that equity or the 
interests of the United States so require.
  [(C) The Secretary of Defense shall permit an employee 
assigned under this section who, prior to commencing a second 
academic year of such assignment, voluntarily terminates the 
assignment or the employee's employment with the Agency, to 
satisfy his obligation under an agreement described in 
paragraph (1) to reimburse the United States by reimbursement 
according to a schedule of monthly payments which results in 
completion of reimbursement by a date five years after the date 
of termination of the assignment or employment or earlier at 
the option of the employee.
  [(e)(1) When an employee is assigned under this section to an 
institution, the Agency shall disclose to the institution to 
which the employee is assigned that the Agency employs the 
employee and that the Agency funds the employee's education.
  [(2) Agency efforts to recruit individuals at educational 
institutions for participation in the undergraduate training 
program established by this section shall be made openly and 
according to the common practices of universities and employers 
recruiting at such institutions.
  [(f) Chapter 41 of title 5 and subsections (a) and (b) of 
section 3324 of title 31, United States Code, shall not apply 
with respect to this section.
  [(g) The Secretary of Defense may issue such regulations as 
may be necessary to implement this section.

  [Sec. 18. (a) The Secretary of Defense may pay the expenses 
referred to in section 5742(b) of title 5, United States Code, 
in the case of any employee of the National Security Agency who 
dies while on a rotational tour of duty within the United 
States or while in transit to or from such tour of duty.
  [(b) For the purposes of this section, the term ``rotational 
tour of duty'', with respect to an employee, means a permanent 
change of station involving the transfer of the employee from 
the National Security Agency headquarters to another post of 
duty for a fixed period established by regulation to be 
followed at the end of such period by a permanent change of 
station involving a transfer of the employee back to such 
headquarters.]

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``National 
Security Agency Act of 1959''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
Sec. 2. General personnel authorities.
Sec. 3. Protection of identities of employees.
Sec. 4. Authority to lease real property outside the United States.
Sec. 5. Benefits for personnel assigned to special cryptologic 
          activities outside the United States.
Sec. 10. Language training for cryptologic personnel.
Sec. 11. Protection of facilities by General Services Administration.
Sec. 12. Senior Cryptologic Executive Service.
Sec. 13. Grants for cryptologic research.
Sec. 14. Availability of certain appropriations.
Sec. 15. Protection of agency name from unauthorized use.
Sec. 16. Recruitment of qualified personnel.
Sec. 17. Authority to pay certain expenses for employees dying while on 
          rotational tour of duty in the United States.

SEC. 2. GENERAL PERSONNEL AUTHORITIES.

  (a) In General.--General personnel authorities of the 
Secretary of Defense with respect to the National Security 
Agency are provided in chapter 83 of title 10, United States 
Code.
  (b) Authority for Additional Compensation for Certain 
Employees.--Officers and employees of the National Security 
Agency who are citizens or nationals of the United States may 
be granted additional compensation, in accordance with 
regulations which shall be prescribed by the Secretary of 
Defense, not in excess of additional compensation authorized by 
section 5941 of title 5, United States Code, for employees 
whose rates of basic compensation are fixed by statute.

SEC. 3. PROTECTION OF IDENTITIES OF EMPLOYEES.

  Nothing in this Act or any other law shall be construed to 
require the disclosure of the organization or any function of 
the National Security Agency, of any information with respect 
to the activities thereof, or of the names, titles, salaries, 
or number of the persons employed by such agency.

SEC. 4. AUTHORITY TO LEASE REAL PROPERTY OUTSIDE THE UNITED STATES.

  (a) Authority.--Notwithstanding section 322 of the Act of 
June 30, 1932 (40 U.S.C. 278a), section 5536 of title 5, United 
States Code, and section 2675 of title 10, United States Code, 
the Director of the National Security Agency, on behalf of the 
Secretary of Defense, may lease real property outside the 
United States, for periods not exceeding ten years, for the use 
of the National Security Agency for special cryptologic 
activities and for housing for personnel assigned to such 
activities.
  (b) Limitation to Appropriated Funds.--The authority of the 
Director of the National Security Agency, on behalf of the 
Secretary of Defense, to make payments under subsection (a), 
and under contracts for leases entered into under subsection 
(a), is effective for any fiscal year only to the extent that 
appropriated funds are available for such purpose.

SEC. 5. BENEFITS FOR PERSONNEL ASSIGNED TO SPECIAL CRYPTOLOGIC 
                    ACTIVITIES OUTSIDE THE UNITED STATES.

  (a) Authority To Provide Certain Benefits.--The Director of 
the National Security Agency, on behalf of the Secretary of 
Defense, may provide to certain civilian and military personnel 
of the Department of Defense who are assigned to special 
cryptologic activities outside the United States and who are 
designated by the Secretary of Defense for the purposes of this 
subsection the following:
          (1) Allowances and benefits--
                  (A) comparable to those provided by the 
                Secretary of State to members of the Foreign 
                Service under chapter 9 of title I of the 
                Foreign Service Act of 1980 (22 U.S.C. 4081 et 
                seq.) or any other provision of law; and
                  (B) in the case of selected personnel serving 
                in circumstances similar to those in which 
                personnel of the Central Intelligence Agency 
                serve, comparable to those provided by the 
                Director of Central Intelligence to personnel 
                of the Central Intelligence Agency.
          (2) Housing (including heat, light, and household 
        equipment) without cost to such personnel, if the 
        Director of the National Security Agency, on behalf of 
        the Secretary of Defense, determines that it would be 
        in the public interest to provide such housing.
          (3) Special retirement accrual in the same manner 
        provided in section 303 of the Central Intelligence 
        Agency Retirement Act (50 U.S.C. 2153) and in section 
        18 of the Central Intelligence Agency Act of 1949.
  (b) Limitation to Appropriated Funds.--The authority of the 
Director of the National Security Agency, on behalf of the 
Secretary of Defense, to make payments under subsection (a) is 
effective for any fiscal year only to the extent that 
appropriated funds are available for such purpose.
  (c) Prohibition of Duplication of Benefits.--Members of the 
Armed Forces may not receive benefits under both subsection 
(a)(1) and under title 37, United States Code, for the same 
purpose. The Secretary of Defense shall prescribe such 
regulations as may be necessary to carry out this subsection.
  (d) Regulations.--Regulations prescribed under subsection 
(a)(1) shall be submitted to the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate before such regulations 
take effect.

SEC. 10. LANGUAGE TRAINING FOR CRYPTOLOGIC PERSONNEL.

  (a) Language Training Programs.--The Director of the National 
Security Agency shall arrange for, and shall prescribe 
regulations concerning, language and language-related training 
programs for military and civilian cryptologic personnel. In 
establishing programs under this section for language and 
language-related training, the Director--
          (1) may provide for the training and instruction to 
        be furnished, including functional and geographic area 
        specializations;
          (2) may arrange for training and instruction through 
        other Government agencies and, in any case in which 
        appropriate training or instruction is unavailable 
        through Government facilities, through nongovernmental 
        facilities that furnish training and instruction useful 
        in the fields of language and foreign affairs;
          (3) may support programs that furnish necessary 
        language and language-related skills, including, in any 
        case in which appropriate programs are unavailable at 
        Government facilities, support through contracts, 
        grants, or cooperation with nongovernmental educational 
        institutions; and
          (4) may obtain by appointment or contract the 
        services of individuals to serve as language 
        instructors, linguists, or special language project 
        personnel.
  (b) Foreign Language Proficiency Incentives.--(1) In order to 
maintain necessary capability in foreign language skills and 
related abilities needed by the National Security Agency, the 
Director, without regard to subchapter IV of chapter 55 of 
title 5, United States Code, may provide special monetary or 
other incentives to encourage civilian cryptologic personnel of 
the Agency to acquire or retain proficiency in foreign 
languages or special related abilities needed by the Agency.
  (2) In order to provide linguistic training and support for 
cryptologic personnel, the Director--
          (A) may pay all or part of the tuition and other 
        expenses related to the training of personnel who are 
        assigned or detailed for language and language-related 
        training, orientation, or instruction; and
          (B) may pay benefits and allowances to civilian 
        personnel in accordance with chapters 57 and 59 of 
        title 5, United States Code, and to military personnel 
        in accordance with chapter 7 of title 37, United States 
        Code, and applicable provisions of title 10, United 
        States Code, when such personnel are assigned to 
        training at sites away from their designated duty 
        station.
  (c) Cryptologic Linguist Reserve.--(1) To the extent not 
inconsistent, in the opinion of the Secretary of Defense, with 
the operation of military cryptologic reserve units and in 
order to maintain necessary capability in foreign language 
skills and related abilities needed by the National Security 
Agency, the Director may establish a Cryptologic Linguist 
Reserve.
  (2) The Cryptologic Linguist Reserve may consist of former or 
retired civilian or military cryptologic personnel of the 
National Security Agency and of other qualified individuals, as 
determined by the Director of the Agency. Each member of the 
Cryptologic Linguist Reserve shall agree that, during any 
period of emergency (as determined by the Director), the member 
shall return to active civilian status with the National 
Security Agency and shall perform such linguistic or 
linguistic-related duties as the Director may assign.
  (3) In order to attract individuals to become members of the 
Cryptologic Linguist Reserve, the Director, without regard to 
subchapter IV of chapter 55 of title 5, United States Code, may 
provide special monetary incentives to individuals eligible to 
become members of the reserve who agree to become members of 
the cryptologic linguist reserve and to acquire or retain 
proficiency in foreign languages or special related abilities.
  (4) In order to provide training and support for members of 
the Cryptologic Linguist Reserve, the Director--
          (A) may pay all or part of the tuition and other 
        expenses related to the training of individuals in the 
        Cryptologic Linguist Reserve who are assigned or 
        detailed for language and language-related training, 
        orientation, or instruction; and
          (B) may pay benefits and allowances in accordance 
        with chapters 57 and 59 of title 5, United States Code, 
        to individuals in the Cryptologic Linguist Reserve who 
        are assigned to training at sites away from their homes 
        or regular places of business.
  (d) Service Agreements.--(1) The Director, before providing 
training under this section to any individual, may obtain an 
agreement with that individual that--
          (A) in the case of current employees, pertains to 
        continuation of service of the employee, and repayment 
        of the expenses of such training for failure to fulfill 
        the agreement, consistent with the provisions of 
        section 4108 of title 5, United States Code; and
          (B) in the case of individuals accepted for 
        membership in the Cryptologic Linguist Reserve, 
        pertains to return to service when requested, and 
        repayment of the expenses of such training for failure 
        to fulfill the agreement, consistent with the 
        provisions of section 4108 of title 5, United States 
        Code.
  (2) The Director, under regulations prescribed under this 
section, may waive, in whole or in part, a right of recovery 
under an agreement made under this subsection if it is shown 
that the recovery would be against equity and good conscience 
or against the public interest.
  (e) Language Training for Family Members.--(1) Subject to 
paragraph (2), the Director may provide to family members of 
military and civilian cryptologic personnel assigned to 
representational duties outside the United States, in 
anticipation of the assignment of such personnel outside the 
United States or while outside the United States, appropriate 
orientation and language training that is directly related to 
the assignment abroad.
  (2) Language training under paragraph (1) may not be provided 
to any individual through payment of the expenses of tuition or 
other cost of instruction at a non-Government educational 
institution unless appropriate instruction is not available at 
a Government facility.
  (f) Waiver Authority.--The Director may waive the 
applicability of any provision of chapter 41 of title 5, United 
States Code, to any provision of this section if he finds that 
such waiver is important to the performance of cryptologic 
functions.
  (g) Limitation to Appropriated Funds.--The authority of the 
Director to enter into contracts or to make grants under this 
section is effective for any fiscal year only to the extent 
that appropriated funds are available for such purpose.
  (h) Regulations.--Regulations prescribed under this section 
shall be submitted to the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate before such regulations 
take effect.
  (i) Travel and Transportation Expenses in Connection With 
Training Outside the United States.--The Director of the 
National Security Agency, on behalf of the Secretary of 
Defense, may, without regard to section 4109(a)(2)(B) of title 
5, United States Code, pay travel, transportation, storage, and 
subsistence expenses under chapter 57 of such title to civilian 
and military personnel of the Department of Defense who are 
assigned to duty outside the United States for a period of one 
year or longer which involves cryptologic training, language 
training, or related disciplines.

SEC. 11. PROTECTION OF FACILITIES BY GENERAL SERVICES ADMINISTRATION.

  The Administrator of General Services, upon the application 
of the Director of the National Security Agency, may provide 
for the protection in accordance with section 3 of the Act of 
June 1, 1948 (40 U.S.C. 318b), of certain facilities (as 
designated by the Director of such Agency) which are under the 
administration and control of, or are used by, the National 
Security Agency in the same manner as if such facilities were 
property of the United States over which the United States has 
acquired exclusive or concurrent criminal jurisdiction.

SEC. 12. SENIOR CRYPTOLOGIC EXECUTIVE SERVICE.

  (a) Authority To Establish SCES.--(1) The Secretary of 
Defense (or his designee) may by regulation establish a 
personnel system for senior civilian cryptologic personnel in 
the National Security Agency to be known as the Senior 
Cryptologic Executive Service. The regulations establishing the 
Senior Cryptologic Executive Service shall do the following:
          (A) Meet the requirements set forth in section 3131 
        of title 5, United States Code, for the Senior 
        Executive Service.
          (B) Provide that positions in the Senior Cryptologic 
        Executive Service meet requirements that are consistent 
        with the provisions of section 3132(a)(2) of such 
        title.
          (C) Provide, without regard to section 2, rates of 
        pay for the Senior Cryptologic Executive Service that 
        are not in excess of the maximum rate or less than the 
        minimum rate of basic pay established for the Senior 
        Executive Service under section 5382 of such title, and 
        that are adjusted at the same time and to the same 
        extent as rates of basic pay for the Senior Executive 
        Service are adjusted.
          (D) Provide a performance appraisal system for the 
        Senior Cryptologic Executive Service that conforms to 
        the provisions of subchapter II of chapter 43 of such 
        title.
          (E) Provide for removal consistent with section 3592 
        of such title, and removal or suspension consistent 
        with subsections (a), (b), and (c) of section 7543 of 
        such title (except that any hearing or appeal to which 
        a member of the Senior Cryptologic Executive Service is 
        entitled shall be held or decided pursuant to 
        procedures established by regulations of the Secretary 
        of Defense).
          (F) Permit the payment of performance awards to 
        members of the Senior Cryptologic Executive Service 
        consistent with the provisions applicable to 
        performance awards under section 5384 of such title.
          (G) Provide that members of the Senior Cryptologic 
        Executive Service may be granted sabbatical leaves 
        consistent with the provisions of section 3396(c) of 
        such title.
          (H) Provide for the recertification of members of the 
        Senior Cryptologic Executive Service consistent with 
        the provisions of section 3393a of such title.
  (2) Except as otherwise provided in paragraph (1), the 
Secretary of Defense may--
          (A) make applicable to the Senior Cryptologic 
        Executive Service any of the provisions of title 5, 
        United States Code, applicable to applicants for or 
        members of the Senior Executive Service; and
          (B) appoint, promote, and assign individuals to 
        positions established within the Senior Cryptologic 
        Executive Service without regard to the provisions of 
        title 5, United States Code, governing appointments and 
        other personnel actions in the competitive service.
  (3) The President, based on the recommendations of the 
Secretary of Defense, may award ranks to members of the Senior 
Cryptologic Executive Service in a manner consistent with the 
provisions of section 4507 of title 5, United States Code.
  (4) Notwithstanding any other provision of this section, the 
Director of the National Security Agency may detail or assign 
any member of the Senior Cryptologic Executive Service to serve 
in a position outside the National Security Agency in which the 
member's expertise and experience may be of benefit to the 
National Security Agency or another Government agency. Any such 
member shall not by reason of such detail or assignment lose 
any entitlement or status associated with membership in the 
Senior Cryptologic Executive Service.
  (b) Merit Pay System.--The Secretary of Defense may by 
regulation establish a merit pay system for such employees of 
the National Security Agency as the Secretary of Defense 
considers appropriate. The merit pay system shall be designed 
to carry out purposes consistent with those set forth in 
section 5401(a) of title 5, United States Code.
  (c) Limitation on Total Compensation.--Nothing in this 
section shall be construed to allow the aggregate amount 
payable to a member of the Senior Cryptologic Executive Service 
under this section during any fiscal year to exceed the annual 
rate payable for positions at level I of the Executive Schedule 
in effect at the end of such year.

SEC. 13. GRANTS FOR CRYPTOLOGIC RESEARCH.

  (a) Grant Authority.--The Director of the National Security 
Agency may make grants to private individuals and institutions 
for the conduct of cryptologic research. An application for a 
grant under this section may not be approved unless the 
Director determines that the award of the grant would be 
clearly consistent with the national security.
  (b) Applicable Law.--The grant program established by 
subsection (a) shall be conducted in accordance with the 
Federal Grant and Cooperative Agreement Act of 1977 (41 U.S.C. 
501 et seq.) to the extent that such Act is consistent with and 
in accordance with section 6 of this Act.
  (c) Limitation to Appropriated Funds.--The authority of the 
Director to make grants under this section is effective for any 
fiscal year only to the extent that appropriated funds are 
available for such purpose.

SEC. 14. AVAILABILITY OF CERTAIN APPROPRIATIONS.

  Funds appropriated to an entity of the Federal Government 
other than an element of the Department of Defense that have 
been specifically appropriated for the purchase of cryptologic 
equipment, materials, or services with respect to which the 
National Security Agency has been designated as the central 
source of procurement for the Government shall remain available 
for a period of three fiscal years.

SEC. 15. PROTECTION OF AGENCY NAME FROM UNAUTHORIZED USE.

  (a) Prohibition on Unauthorized Use.--No person may, except 
with the written permission of the Director of the National 
Security Agency, knowingly use the words ``National Security 
Agency'', the initials ``NSA'', the seal of the National 
Security Agency, or any colorable imitation of such words, 
initials, or seal in connection with any merchandise, 
impersonation, solicitation, or commercial activity in a manner 
reasonably calculated to convey the impression that such use is 
approved, endorsed, or authorized by the National Security 
Agency.
  (b) Enforcement.--Whenever it appears to the Attorney General 
that any person is engaged or is about to engage in an act or 
practice which constitutes or will constitute conduct 
prohibited by subsection (a), the Attorney General may initiate 
a civil proceeding in a district court of the United States to 
enjoin such act or practice. Such court shall proceed as soon 
as practicable to the hearing and determination of such action 
and may, at any time before final determination, enter such 
restraining orders or prohibitions, or take such other action 
as is warranted, to prevent injury to the United States or to 
any person or class of persons for whose protection the action 
is brought.

SEC. 16. RECRUITMENT OF QUALIFIED PERSONNEL.

  (a) Purpose.--The purpose of this section is to establish an 
undergraduate training program, which may lead to the 
baccalaureate degree, to facilitate the recruitment of 
individuals, particularly minority high school students, with a 
demonstrated capability to develop skills critical to the 
mission of the National Security Agency, including mathematics, 
computer science, engineering, and foreign languages.
  (b) Assignment of Civilian Employees.--The Secretary of 
Defense may, in the Secretary's discretion, assign civilian 
employees of the National Security Agency as students at 
accredited professional, technical, and other institutions of 
higher learning for training at the undergraduate level in 
skills critical to effective performance of the mission of the 
Agency.
  (c) Limitation to Appropriated Funds.--The National Security 
Agency may pay, directly or by reimbursement to employees, 
expenses incident to assignments under subsection (b), in any 
fiscal year only to the extent that appropriated funds are 
available for such purpose.
  (d) Employee Agreement.--(1) To be eligible for assignment 
under subsection (b), an employee of the Agency must agree in 
writing to the following:
          (A) To continue in the service of the Agency for the 
        period of the assignment and to complete the 
        educational course of training for which the employee 
        is assigned.
          (B) To continue in the service of the Agency 
        following completion of the assignment for a period of 
        one-and-a-half years for each year of the assignment or 
        part thereof.
          (C) To reimburse the United States for the total cost 
        of education (excluding the employee's pay and 
        allowances) provided under this section to the employee 
        if, before the employee's completing the educational 
        course of training for which the employee is assigned, 
        the assignment or the employee's employment with the 
        Agency is terminated either by the Agency due to 
        misconduct by the employee or by the employee 
        voluntarily.
          (D) To reimburse the United States if, after 
        completing the educational course of training for which 
        the employee is assigned, the employee's employment 
        with the Agency is terminated either by the Agency due 
        to misconduct by the employee or by the employee 
        voluntarily, before the employee's completion of the 
        service obligation period described in subparagraph 
        (B), in an amount that bears the same ratio to the 
        total cost of the education (excluding the employee's 
        pay and allowances) provided to the employee as the 
        unserved portion of the service obligation period 
        described in subparagraph (B) bears to the total period 
        of the service obligation described in subparagraph 
        (B).
  (2) Subject to paragraph (3), the obligation to reimburse the 
United States under an agreement described in paragraph (1), 
including interest due on such obligation, is for all purposes 
a debt owing the United States.
  (3)(A) A discharge in bankruptcy under title 11, United 
States Code, shall not release a person from an obligation to 
reimburse the United States required under an agreement 
described in paragraph (1) if the final decree of the discharge 
in bankruptcy is issued within five years after the last day of 
the combined period of service obligation described in 
subparagraphs (A) and (B) of paragraph (1).
  (B) The Secretary of Defense may release a person, in whole 
or in part, from the obligation to reimburse the United States 
under an agreement described in paragraph (1) when, in the 
Secretary's discretion, the Secretary determines that equity or 
the interests of the United States so require.
  (C) The Secretary of Defense shall permit an employee 
assigned under this section who, before commencing a second 
academic year of such assignment, voluntarily terminates the 
assignment or the employee's employment with the Agency, to 
satisfy his obligation under an agreement described in 
paragraph (1) to reimburse the United States by reimbursement 
according to a schedule of monthly payments which results in 
completion of reimbursement by a date five years after the date 
of termination of the assignment or employment or earlier at 
the option of the employee.
  (e) Disclosure to Educational Institution of Agency 
Affiliation of Employee.--(1) When an employee is assigned 
under this section to an institution, the Agency shall disclose 
to the institution to which the employee is assigned that the 
Agency employs the employee and that the Agency funds the 
employee's education.
  (2) Agency efforts to recruit individuals at educational 
institutions for participation in the undergraduate training 
program established by this section shall be made openly and 
according to the common practices of universities and employers 
recruiting at such institutions.
  (f) Inapplicability of Certain Laws.--Chapter 41 of title 5 
and subsections (a) and (b) of section 3324 of title 31, United 
States Code, shall not apply with respect to this section.
  (g) Regulations.--The Secretary of Defense may prescribe such 
regulations as may be necessary to implement this section.

SEC. 17. AUTHORITY TO PAY CERTAIN EXPENSES FOR EMPLOYEES DYING WHILE ON 
                    ROTATIONAL TOUR OF DUTY IN THE UNITED STATES.

  (a) Authority.--The Secretary of Defense may pay the expenses 
referred to in section 5742(b) of title 5, United States Code, 
in the case of any employee of the National Security Agency who 
dies while on a rotational tour of duty within the United 
States or while in transit to or from such tour of duty.
  (b) Definition.--For the purposes of this section, the term 
``rotational tour of duty'', with respect to an employee, means 
a permanent change of station involving the transfer of the 
employee from the National Security Agency headquarters to 
another post of duty for a fixed period established by 
regulation to be followed at the end of such period by a 
permanent change of station involving a transfer of the 
employee back to such headquarters.
                              ----------                              


            SECTION 303 OF THE INTERNAL SECURITY ACT OF 1950

                       [termination of employment

  [Sec. 303. (a) Notwithstanding section 14 of the Act of June 
27, 1944, chapter 287, as amended (5 U.S.C. 863), section 1 of 
the Act of August 26, 1950, chapter 803, as amended (5 U.S.C. 
22-1), or any other provision of law, the Secretary may 
terminate the employment of any officer or employee of the 
Agency whenever he considers that action to be in the interest 
of the United States, and he determines that the procedures 
prescribed in other provisions of law that authorize the 
termination of the employment of that officer or employee 
cannot be invoked consistently with the national security. Such 
a determination is final.
  [(b) Termination of employment under this section shall not 
affect the right of the officer or employee involved to seek or 
accept employment with any other department or agency of the 
United States if he is declared eligible for such employment by 
the United States Civil Service Commission.
  [(c) Notwithstanding section 113(d) of title 10, United 
States Code, any authority vested in the Secretary of Defense 
by subsection (a) may be delegated only to the Deputy Secretary 
of Defense or the Director of the National Security Agency, or 
both.]
                              ----------                              


                     NATIONAL SECURITY ACT OF 1947

                              short title

  That this Act may be cited as the ``National Security Act of 
1947''.

                            TABLE OF CONTENTS

Sec. 2. Declaration of policy.
Sec. 3. Definitions.
     * * * * * * *

              [Title I--Coordination for National Security

[Sec. 101. National Security Council.
[Sec. 102. Central Intelligence Agency.
[Sec. 103. Responsibilities of the Director of Central Intelligence.
[Sec. 104. Authorities of the Director of Central Intelligence.
[Sec. 105. Responsibilities of the Secretary of Defense pertaining to 
          the National Foreign Intelligence Program.
[Sec. 106. Administrative provisions pertaining to defense elements 
          within the intelligence community.
[Sec. 107. National Security Resources Board.]

  Title I--National Security Council and Related Boards and Committees

Sec. 101. National Security Council.
Sec. 102. Committee on Foreign Intelligence.
Sec. 103. Committee on Transnational Threats.
Sec. 104. Board for Low Intensity Conflict.
Sec. 105. National Counterintelligence Policy Board.
     * * * * * * *
Sec. 108. Annual National Security Strategy Report.
[Sec. 109. Annual report on intelligence community activities.
[Sec. 104. Annual national security strategy report.]

                   Title II--The Department of Defense

Sec. 201. Department of Defense.
[Sec. 202. Secretary of Defense.
[Sec. 203. Military Assistants to the Secretary.
[Sec. 204. Civilian personnel.]
Sec. 205. Department of the Army.
Sec. 206. Department of the Navy.
Sec. 207. Department of the Air Force.
[Sec. 208. United States Air Force.
[Sec. 209. Effective date of transfers.
[Sec. 210. War Council.
[Sec. 211. Joint Chiefs of Staff.
[Sec. 212. Joint Staff.
[Sec. 213. Munitions Board.
[Sec. 214. Research and Development Board.]

                        Title III--Miscellaneous

[Sec. 301. Compensation of Secretaries.
[Sec. 302. Under Secretaries and Assistant Secretaries.]
Sec. 303. Advisory committees and personnel.
[Sec. 304. Status of transferred civilian personnel.
[Sec. 305. Saving provisions.
[Sec. 306. Transfer of funds.]
     * * * * * * *

              [TITLE I--COORDINATION FOR NATIONAL SECURITY

                       [national security council

  [Sec. 101. (a) There is hereby established a council to be 
known as the National Security Council (thereinafter in this 
section referred to as the ``Council'').
  [The President of the United States shall preside over 
meetings of the Council: Provided, That in his absence he may 
designate a member of the Council to preside in his place.
  [The function of the Council shall be to advise the President 
with respect to the integration of domestic, foreign, and 
military policies relating to the national security so as to 
enable the military services and the other departments and 
agencies of the Government to cooperate more effectively in 
matters involving the national security.
  [The Council shall be composed of--
          [(1) the President;
          [(2) the Vice President;
          [(3) the Secretary of State;
          [(4) the Secretary of Defense;
          [(5) the Director for Mutual Security;
          [(6) the Chairman of the National Security Resources 
        Board; and
          [(7) The Secretaries and Under Secretaries of other 
        executive departments and the military departments, the 
        Chairman of the Munitions Board, and the Chairman of 
        the Research and Development Board, when appointed by 
        the President by and with the advice and consent of the 
        Senate, to serve at his pleasure.
  [(b) In addition to performing such other functions as the 
President may direct, for the purpose of more effectively 
coordinating the policies and functions of the departments and 
agencies of the Government relating to the national security, 
it shall, subject to the direction of the President, be the 
duty of the Council--
          [(1) to assess and appraise the objectives, 
        commitments, and risks of the United States in relation 
        to our actual and potential military power, in the 
        interest of national security, for the purpose of 
        making recommendations to the President in connection 
        therewith; and
          [(2) to consider policies on matters of common 
        interest to the departments and agencies of the 
        Government concerned with the national security, and to 
        make recommendations to the President in connection 
        therewith.
  [(c) The Council shall have a staff to be headed by a 
civilian executive secretary who shall be appointed by the 
President, and who shall receive compensation at the rate of 
$10,000 a year. The executive secretary, subject to the 
direction of the Council, is hereby authorized, subject to the 
civil-service laws and the Classification Act of 1923, as 
amended, to appoint and fix the compensation of such personnel 
as may be necessary to perform such duties as may be prescribed 
by the Council in connection with the performance of its 
functions.
  [(d) The Council shall, from time to time, make such 
recommendations, and such other reports to the President as it 
deems appropriate or as the President may require.
  [(e) The Chairman (or in his absence the Vice Chairman) of 
the Joint Chiefs of Staff may, in his role as principal 
military adviser to the National Security Council and subject 
to the direction of the President, attend and participate in 
meetings of the National Security Council.
  [(f) The Director of National Drug Control Policy may, in his 
role as principal adviser to the National Security Council on 
national drug control policy, and subject to the direction of 
the President, attend and participate in meetings of the 
National Security Council.
  [(g) The President shall establish with the National Security 
Council a board to be known as the ``Board for Low Intensity 
Conflict''. The principal function of the board shall be to 
coordinate the policies of the United States for low intensity 
conflict.
  [(h) The Director of Central Intelligence (or, in the 
Director's absence, the Deputy Director of Central 
Intelligence) may, in the performance of the Director's duties 
under this Act and subject to the direction of the President, 
attend and participate in meetings of the National Security 
Council.

                      [central intelligence agency

  [Sec. 102. (a)(1) There is hereby established a Central 
Intelligence Agency.
  [(2) There shall be 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--
          [(A) serve as head of the United States intelligence 
        community;
          [(B) act as the principal adviser to the President 
        for intelligence matters related to the national 
        security; and
          [(C) serve as head of the Central Intelligence 
        Agency.
  [(b) To assist the Director of Central Intelligence in 
carrying out the Director's responsibilities under this Act, 
there shall be a Deputy Director of Central Intelligence, who 
shall be appointed by the President, by and with the advice and 
consent of the Senate, who shall act for, and exercise the 
powers of, the Director during the Director's absence or 
disability.
  [(c)(1) The Director or Deputy Director of Central 
Intelligence may be appointed from among the commissioned 
officers of the Armed Forces, or from civilian life, but at no 
time shall both positions be simultaneously occupied by 
commissioned officers of the Armed Forces, whether in an active 
or retired status.
  [(2) It is the sense of the Congress that under ordinary 
circumstances, it is desirable that either the Director or the 
Deputy Director be a commissioned officer of the Armed Forces 
or that either such appointee otherwise have, by training or 
experience, an appreciation of military intelligence activities 
and requirements.
  [(3)(A) A commissioned officer of the Armed Forces appointed 
to the position of Director or Deputy Director, while serving 
in such position--
          [(i) shall not be subject to supervision or control 
        by the Secretary of Defense or by any officer or 
        employee of the Department of Defense;
          [(ii) 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
          [(iii) 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 which such officer is a member.
  [(B) Except as provided in clause (i) or (ii) of subparagraph 
(A), the appointment of a commissioned officer of the Armed 
Forces to the position of Director or Deputy Director shall in 
no way 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.
  [(C) A commissioned officer of the Armed Forces on active 
duty who is appointed to the position of Director or Deputy 
Director, 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 the 
Director or Deputy Director. Funds from which such pay and 
allowances are paid shall be reimbursed from funds available to 
the Director.
  [(d) The Office of the Director of Central Intelligence 
shall, for administrative purposes, be within the Central 
Intelligence Agency.
  [(e) In the event that neither the Director nor Deputy 
Director of Central Intelligence is a commissioned officer of 
the Armed Forces, a commissioned officer of the Armed Forces 
appointed to the position of Associate Director of Central 
Intelligence for Military Support, while serving in such 
position, shall not be counted against the numbers and 
percentages of commissioned officers of the rank and grade of 
such officer authorized for the armed force of which such 
officer is a member.

       [RESPONSIBILITIES OF THE DIRECTOR OF CENTRAL INTELLIGENCE

  [Sec. 103. (a) Provision of Intelligence.--(1) Under the 
direction of the National Security Council, the Director of 
Central Intelligence shall be responsible for providing 
national intelligence--
          [(A) to the President;
          [(B) to the heads of departments and agencies of the 
        executive branch;
          [(C) to the Chairman of the Joint Chiefs of Staff and 
        senior military commanders; and
          [(D) where appropriate, to the Senate and House of 
        Representatives and the committees thereof.
  [(2) Such national intelligence should be timely, objective, 
independent of political considerations, and based upon all 
sources available to the intelligence community.
  [(b) National Intelligence Council.--(1)(A) There is 
established within the Office of the Director of Central 
Intelligence the National Intelligence Council (hereafter in 
this section referred to as the ``Council''). The Council shall 
be composed of senior analysts within the intelligence 
community and substantive experts from the public and private 
sector, who shall be appointed by, report to, and serve at the 
pleasure of, the Director of Central Intelligence.
  [(B) The Director shall prescribe appropriate security 
requirements for personnel appointed from the private sector as 
a condition of service on the Council to ensure the protection 
of intelligence sources and methods while avoiding, wherever 
possible, unduly intrusive requirements which the Director 
considers to be unnecessary for this purpose.
  [(2) The Council shall--
          [(A) produce national intelligence estimates for the 
        Government, including, whenever the Council considers 
        appropriate, alternative views held by elements of the 
        intelligence community; and
          [(B) otherwise assist the Director in carrying out 
        the responsibilities described in subsection (a).
  [(3) Within their respective areas of expertise and under the 
direction of the Director, the members of the Council shall 
constitute the senior intelligence advisers of the intelligence 
community for purposes of representing the views of the 
intelligence community within the Government.
  [(4) The Director shall make available to the Council such 
staff as may be necessary to permit the Council to carry out 
its responsibilities under this subsection and shall take 
appropriate measures to ensure that the Council and its staff 
satisfy the needs of policymaking officials and other consumers 
of intelligence.
  [(5) The heads of elements within the intelligence community 
shall, as appropriate, furnish such support to the Council, 
including the preparation of intelligence analyses, as may be 
required by the Director.
  [(c) Head of the Intelligence Community.--In the Director's 
capacity as head of the intelligence community, the Director 
shall--
          [(1) develop and present to the President an annual 
        budget for the National Foreign Intelligence Program of 
        the United States;
          [(2) establish the requirements and priorities to 
        govern the collection of national intelligence by 
        elements of the intelligence community;
          [(3) promote and evaluate the utility of national 
        intelligence to consumers within the Government;
          [(4) eliminate waste and unnecessary duplication 
        within the intelligence community;
          [(5) protect intelligence sources and methods from 
        unauthorized disclosure; and
          [(6) perform such other functions as the President or 
        the National Security Council may direct.
  [(d) Head of the Central Intelligence Agency.--In the 
Director's capacity as head of the Central Intelligence Agency, 
the Director shall--
          [(1) collect intelligence through human sources and 
        by other appropriate means, except that the Agency 
        shall have no police, subpoena, or law enforcement 
        powers or internal security functions;
          [(2) provide overall direction for the collection of 
        national intelligence through human sources by elements 
        of the intelligence community authorized to undertake 
        such collection and, in coordination with other 
        agencies of the Government which are authorized to 
        undertake such collection, ensure that the most 
        effective use is made of resources and that the risks 
        to the United States and those involved in such 
        collection are minimized;
          [(3) correlate and evaluate intelligence related to 
        the national security and provide appropriate 
        dissemination of such intelligence;
          [(4) perform such additional services as are of 
        common concern to the elements of the intelligence 
        community, which services the Director of Central 
        Intelligence determines can be more efficiently 
        accomplished centrally; and
          [(5) perform such other functions and duties related 
        to intelligence affecting the national security as the 
        President or the National Security Council may direct.

          [AUTHORITIES OF THE DIRECTOR OF CENTRAL INTELLIGENCE

  [Sec. 104. (a) Access to Intelligence.--To the extent 
recommended by the National Security Council and approved by 
the President, the Director of Central Intelligence shall have 
access to all intelligence related to the national security 
which is collected by any department, agency, or other entity 
of the United States.
  [(b) Approval of Budgets.--The Director of Central 
Intelligence shall provide guidance to elements of the 
intelligence community for the preparation of their annual 
budgets and shall approve such budgets before their 
incorporation in the National Foreign Intelligence Program.
  [(c) Role of DCI in Reprogramming.--No funds made available 
under the National Foreign Intelligence Program may be 
reprogrammed by any element of the intelligence community 
without the prior approval of the Director of Central 
Intelligence except in accordance with procedures issued by the 
Director.
  [(d) Transfer of Funds or Personnel Within the National 
Foreign Intelligence Program.--(1) In addition to any other 
authorities available under law for such purposes, the Director 
of Central Intelligence, with the approval of the Director of 
the Office of Management and Budget, may transfer funds 
appropriated for a program within the National Foreign 
Intelligence Program to another such program and, in accordance 
with procedures to be developed by the Director and the heads 
of affected departments and agencies, may transfer personnel 
authorized for an element of the intelligence community to 
another such element for periods up to a year.
  [(2) A transfer of funds or personnel may be made under this 
subsection only if--
          [(A) the funds or personnel are being transferred to 
        an activity that is a higher priority intelligence 
        activity;
          [(B) the need for funds or personnel for such 
        activity is based on unforeseen requirements;
          [(C) the transfer does not involve a transfer of 
        funds to the Reserve for Contingencies of the Central 
        Intelligence Agency;
          [(D) the transfer does not involve a transfer of 
        funds or personnel from the Federal Bureau of 
        Investigation; and
          [(E) the Secretary or head of the department which 
        contains the affected element or elements of the 
        intelligence community does not object to such 
        transfer.
  [(3) Funds transferred under this subsection shall remain 
available for the same period as the appropriations account to 
which transferred.
  [(4) Any transfer of funds under this subsection shall be 
carried out in accordance with existing procedures applicable 
to reprogramming notifications for the appropriate 
congressional committees. Any proposed transfer for which 
notice is given to the appropriate congressional committees 
shall be accompanied by a report explaining the nature of the 
proposed transfer and how it satisfies the requirements of this 
subsection. In addition, the Select Committee on Intelligence 
of the Senate and the Permanent Select Committee on 
Intelligence of the House of Representatives shall be promptly 
notified of any transfer of funds made pursuant to this 
subsection in any case in which the transfer would not have 
otherwise required reprogramming notification under procedures 
in effect as of the date of the enactment of this section.
  [(5) The Director shall promptly submit to the Select 
Committee on Intelligence of the Senate and to the Permanent 
Select Committee on Intelligence of the House of 
Representatives and, in the case of the transfer of personnel 
to or from the Department of Defense, the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives, a report on any transfer of 
personnel made pursuant to this subsection. The Director shall 
include in any such report an explanation of the nature of the 
transfer and how it satisfies the requirements of this 
subsection.
  [(e) Coordination With Foreign Governments.--Under the 
direction of the National Security Council and in a manner 
consistent with section 207 of the Foreign Service Act of 1980 
(22 U.S.C. 3927), the Director shall coordinate the 
relationships between elements of the intelligence community 
and the intelligence or security services of foreign 
governments on all matters involving intelligence related to 
the national security or involving intelligence acquired 
through clandestine means.
  [(f) Use of Personnel.--The Director shall, in coordination 
with the heads of departments and agencies with elements in the 
intelligence community, institute policies and programs within 
the intelligence community--
          [(1) to provide for the rotation of personnel between 
        the elements of the intelligence community, where 
        appropriate, and to make such rotated service a factor 
        to be considered for promotion to senior positions; and
          [(2) to consolidate, wherever possible, personnel, 
        administrative, and security programs to reduce the 
        overall costs of these activities within the 
        intelligence community.
  [(g) Termination of Employment of CIA Employees.--
Notwithstanding the provisions of any other law, the Director 
may, in the Director's discretion, terminate the employment of 
any officer or employee of the Central Intelligence Agency 
whenever the Director shall deem such termination necessary or 
advisable in the interests of the United States. Any such 
termination shall not affect the right of the officer or 
employee terminated to seek or accept employment in any other 
department or agency of the Government if declared eligible for 
such employment by the Office of Personnel Management.

    [RESPONSIBILITIES OF THE SECRETARY OF DEFENSE PERTAINING TO THE 
                 NATIONAL FOREIGN INTELLIGENCE PROGRAM

  [Sec. 105. (a) In General.--The Secretary of Defense shall--
          [(1) ensure that the budgets of the elements of the 
        intelligence community within the Department of Defense 
        are adequate to satisfy the overall intelligence needs 
        of the Department of Defense, including the needs of 
        the chairman of the Joint Chiefs of Staff and the 
        commanders of the unified and specified commands and, 
        wherever such elements are performing governmentwide 
        functions, the needs of other departments and agencies;
          [(2) ensure appropriate implementation of the 
        policies and resource decisions of the Director of 
        Central Intelligence by elements of the Department of 
        Defense within the National Foreign Intelligence 
        Program;
          [(3) ensure that the tactical intelligence activities 
        of the Department of Defense complement and are 
        compatible with intelligence activities under the 
        National Foreign Intelligence Program;
          [(4) ensure that the elements of the intelligence 
        community within the Department of Defense are 
        responsive and timely with respect to satisfying the 
        needs of operational military forces;
          [(5) eliminate waste and unnecessary duplication 
        among the intelligence activities of the Department of 
        Defense; and
          [(6) ensure that intelligence activities of the 
        Department of Defense are conducted jointly where 
        appropriate.
  [(b) Responsibility for the Performance of Specific 
Functions.--Consistent with sections 103 and 104 of this Act, 
the Secretary of Defense shall ensure--
          [(1) through the National Security Agency (except as 
        otherwise directed by the President or the National 
        Security Council), the continued operation of an 
        effective unified organization for the conduct of 
        signals intelligence activities and shall ensure that 
        the product is disseminated in a timely manner to 
        authorized recipients;
          [(2) through the Central Imagery Office (except as 
        otherwise directed by the President or the National 
        Security Council), with appropriate representation from 
        the intelligence community, the continued operation of 
        an effective unified organization within the Department 
        of Defense for carrying out tasking of imagery 
        collection, for the coordination of imagery processing 
        and exploitation activities, and for ensuring the 
        dissemination of imagery in a timely manner to 
        authorized recipients;
          [(3) through the National Reconnaissance Office 
        (except as otherwise directed by the President or the 
        National Security Council), the continued operation of 
        an effective unified organization for the research and 
        development, acquisition, and operation of overhead 
        reconnaissance systems necessary to satisfy the 
        requirements of all elements of the intelligence 
        community;
          [(4) through the Defense Intelligence Agency (except 
        as otherwise directed by the President or the National 
        Security Council), the continued operation of an 
        effective unified system within the Department of 
        Defense for the production of timely, objective 
        military and military-related intelligence, based upon 
        all sources available to the intelligence community, 
        and shall ensure the appropriate dissemination of such 
        intelligence to authorized recipients;
          [(5) through the Defense Intelligence Agency (except 
        as otherwise directed by the President or the National 
        Security Council), effective management of Department 
        of Defense human intelligence activities, including 
        defense attaches; and
          [(6) that the military departments maintain 
        sufficient capabilities to collect and produce 
        intelligence to meet--
                  [(A) the requirements of the Director of 
                Central Intelligence;
                  [(B) the requirements of the Secretary of 
                Defense or the Chairman of the Joint Chiefs of 
                Staff;
                  [(C) the requirements of the unified and 
                specified combatant commands and of joint 
                operations; and
                  [(D) the specialized requirements of the 
                military departments for intelligence necessary 
                to support tactical commanders, military 
                planners, the research and development process, 
                the acquisition of military equipment, and 
                training and doctrine.
  [(c) Use of Elements of Department of Defense.--The Secretary 
of Defense, in carrying out the functions described in this 
section, may use such elements of the Department of Defense as 
may be appropriate for the execution of those functions, in 
addition to, or in lieu of, the elements identified in this 
section.

 [ADMINISTRATIVE PROVISIONS PERTAINING TO DEFENSE ELEMENTS WITHIN THE 
                         INTELLIGENCE COMMUNITY

  [Sec. 106. (a) Consultations With Regard to Certain 
Appointments.--The Secretary of Defense shall undertake 
appropriate consultations with the Director of Central 
Intelligence before the appointment of any individual as head 
of the National Security Agency, the National Reconnaissance 
Office, or the Defense Intelligence Agency.
  [(b) Appointment of Head of Central Imagery Office.--The 
Secretary shall appoint, upon the recommendation of the 
Director, the head of the Central Imagery Office within the 
Department of Defense.

                   [national security resources board

  [Sec. 107. (a) The Director of the Office of Defense 
Mobilization, subject to the direction of the President, is 
authorized, subject to the civil-service laws and the 
Classification Act of 1949, to appoint and fix the compensation 
of such personnel as may be necessary to assist the Director in 
carrying out his functions.
  [(b) It shall be the function of the Director of the Office 
of Defense Mobilization to advise the President concerning the 
coordination of military, industrial, and civilian 
mobilization, including--
          [(1) policies concerning industrial and civilian 
        mobilization in order to assure the most effective 
        mobilization and maximum utilization of the Nation's 
        manpower in the event of war.
          [(2) programs for the effective use in time of war of 
        the Nation's natural and industrial resources for 
        military and civilian needs, for the maintenance and 
        stabilization of the civilian economy in time of war, 
        and for the adjustment of such economy to war needs and 
        conditions;
          [(3) policies for unifying, in time of war, the 
        activities of Federal agencies and departments engaged 
        in or concerned with production, procurement, 
        distribution, or transportation of military or civilian 
        supplies, materials, and products;
          [(4) the relationship between potential supplies of, 
        and potential requirements for, manpower, resources, 
        and productive facilities in time of war;
          [(5) policies for establishing adequate reserves of 
        strategic and critical material, and for the 
        conservation of these reserves;
          [(6) the strategic relocation of industries, 
        services, government, and economic activities, the 
        continuous operation of which is essential to the 
        Nation's security.
  [(c) In performing his functions, the Director of the Office 
of Defense Mobilization shall utilize to the maximum extent the 
facilities and resources of the departments and agencies of the 
Government.]

  TITLE I--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

SEC. 101. NATIONAL SECURITY COUNCIL.

  (a) In General.--There is in the Executive Office of the 
President the National Security Council. The Council is 
composed of the following:
          (1) The President.
          (2) The Vice President.
          (3) The Secretary of State.
          (4) The Secretary of Defense.
  (b) Additional Participants.--Subject to the direction of the 
President, the following officers may attend and participate in 
meetings of the National Security Council:
          (1) Director of central intelligence.--The Director 
        of Central Intelligence (or, in the Director's absence, 
        a Deputy Director of Central Intelligence), in the 
        performance of the Director's duties under this Act and 
        the Intelligence Community Act.
          (2) Chairman of the joint chiefs of staff.--The 
        Chairman (or, in the Chairman's absence, the Vice 
        Chairman) of the Joint Chiefs of Staff, in the 
        Chairman's role as principal military adviser to the 
        National Security Council.
          (3) Director of national drug control policy.--The 
        Director of National Drug Control Policy, in the 
        Director's role as principal adviser to the National 
        Security Council on national drug control policy, but 
        only through the date specified in section 1009 of the 
        National Narcotics Leadership Act of 1988 (21 U.S.C. 
        1506).
          (4) Others designated by the president.--Such 
        additional officers as may be designated by the 
        President.
  (c) Functions.--The function of the Council shall be to 
advise the President with respect to the integration of 
domestic, foreign, and military policies relating to the 
national security so as to enable the military services and the 
other departments and agencies of the Government to cooperate 
more effectively in matters involving the national security. In 
addition to performing such other functions as the President 
may direct, the Council (subject to the direction of the 
President) shall, for the purpose of more effectively 
coordinating the policies and functions of the departments and 
agencies of the Government relating to the national security--
          (1) assess and appraise the objectives, commitments, 
        and risks of the United States in relation to our 
        actual and potential military power, in the interest of 
        national security, for the purpose of making 
        recommendations to the President in connection 
        therewith; and
          (2) consider policies on matters of common interest 
        to the departments and agencies of the Government 
        concerned with the national security and make 
        recommendations to the President in connection 
        therewith.
  (d) Recommendations and Reports.--The Council shall, from 
time to time, make such recommendations and such other reports 
to the President as it considers appropriate or as the 
President may require.
  (e) Staff.--The Council shall have a staff to be headed by a 
civilian executive secretary who shall be appointed by the 
President. The executive secretary, subject to the direction of 
the Council, may subject to the civil-service laws, appoint and 
fix the compensation of such personnel as may be necessary to 
perform such duties as may be prescribed by the Council in 
connection with the performance of its functions.

SEC. 102. COMMITTEE ON FOREIGN INTELLIGENCE.

  (a) Establishment of Committee.--There is established within 
the National Security Council a Committee on Foreign 
Intelligence. The Committee shall be composed of the following:
          (1) The Assistant to the President for National 
        Security Affairs, who shall serve as chairman of the 
        Committee.
          (2) The following officers or their respective 
        deputies:
                  (A) The Director of Central Intelligence.
                  (B) The Secretary of State.
                  (C) The Secretary of Defense.
                  (D) The Attorney General.
                  (E) The Chairman of the Joint Chiefs of 
                Staff.
          (3) Such other members as the President may 
        designate.
  (b) Function.--The function of the Committee on Foreign 
Intelligence shall be--
          (1) to establish, consistent with the policy and 
        objectives of the President, the overall requirements 
        and priorities for the Intelligence Community; and
          (2) to assess regularly, on behalf of the President, 
        how effectively the Intelligence Community has 
        performed its responsibilities under this Act and the 
        Intelligence Community Act.
  (c) Semiannual Strategic Intelligence Review Process With 
Congress.--Not less often than every six months, the Committee 
on Foreign Intelligence shall convene a meeting with the 
members of the congressional intelligence committees to conduct 
a comprehensive, global strategic intelligence review. Each 
semiannual meeting shall review significant strategic 
intelligence trends, strategic intelligence reporting, and 
anticipated Intelligence Community requirements for the 
following six to twelve months.

SEC. 103. COMMITTEE ON TRANSNATIONAL THREATS.

  (a) Establishment.--There is established within the National 
Security Council a Committee on Transnational Threats. The 
Committee shall be composed of the following:
          (1) The Assistant to the President for National 
        Security Affairs, who shall serve as chairman of the 
        Committee.
          (2) The following officers or their respective 
        deputies:
                  (A) The Director of Central Intelligence.
                  (B) The Secretary of State.
                  (C) The Secretary of Defense.
                  (D) The Attorney General.
          (3) Such other members as the President may 
        designate.
  (b) Function.--The function of the Committee on Transnational 
Threats shall be to coordinate and direct the activities of the 
United States Government relating to combating transnational 
threats. In carrying out its function, the Committee shall--
          (1) identify transnational threats;
          (2) develop strategies to enable the United States 
        Government to respond to transnational threats 
        identified under paragraph (1);
          (3) monitor implementation of such strategies;
          (4) make recommendations as to appropriate responses 
        to specific transnational threats;
          (5) assist in the resolution of operational and 
        policy differences among Federal departments and 
        agencies in their responses to transnational threats;
          (6) 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
          (7) develop guidelines to enhance and improve the 
        coordination of Federal law enforcement activities 
        overseas.
  (c) Definition of transnational threat.--For purposes of this 
section, the term ``transnational threat'' means the following:
          (1) 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.
          (2) Any individual or group that engages in an 
        activity referred to in paragraph (1).

SEC. 104. BOARD FOR LOW INTENSITY CONFLICT.

  (a) Establishment of Board.--The President shall establish 
within the National Security Council a board to be known as the 
``Board for Low Intensity Conflict''.
  (b) Function.--The principal function of the board shall be 
to coordinate the policies of the United States for low 
intensity conflict.

SEC. 105. NATIONAL COUNTERINTELLIGENCE POLICY BOARD.

  (a) Establishment of Board.--There is within the executive 
branch of the Government a National Counterintelligence Policy 
Board. The Board shall report to the President through the 
National Security Council.
  (b) Function of the Board.--The Board shall serve as the 
principal mechanism for--
          (1) developing policies and procedures for the 
        approval of the President to govern the conduct of 
        counterintelligence activities; and
          (2) resolving conflicts, as directed by the 
        President, which may arise between elements of the 
        Government which carry out such activities.
          * * * * * * *

          [annual report on intelligence community activities

  [Sec. 109. (a) In General.--The Director of Central 
Intelligence shall submit to Congress an annual report on the 
activities of the intelligence community. The annual report 
under this section shall be unclassified.
  [(b) Matters To Be Covered in Annual Report.--Each report 
under this section shall describe--
          [(1) the activities of the intelligence community 
        during the preceding fiscal year, including significant 
        successes and failures that can be described in an 
        unclassified manner; and
          [(2) the areas of the world and the issues that the 
        Director expects will require increased or unusual 
        attention from the intelligence community during the 
        next fiscal year.
  [(c) Time for Submission.--The report under this section for 
any year shall be submitted at the same time that the President 
submits the budget for the next fiscal year pursuant to section 
1105 of title 31, United States Code.]
          * * * * * * *

   TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES

          * * * * * * *

                          laws subject to stay

  Sec. 904. The President may use the authority of sections 901 
and 902 to stay the imposition of an economic, cultural, 
diplomatic, or other sanction or related action by the United 
States Government related to the proliferation of weapons of 
mass destruction, their delivery systems, or advanced 
conventional weapons otherwise [required to be imposed by the 
Chemical and Biological Weapons Control and Warfare Elimination 
Act of 1991 (title III of Public Law 102-182); the Nuclear 
Proliferation Prevention Act of 1994 (title VIII of Public Law 
103-236); title XVII of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510) (relating to the 
nonproliferation of missile technology); the Iran-Iraq Arms 
Nonproliferation Act of 1992 (title XVI of Public Law 102-484); 
section 573 of the Foreign Operations, Export Financing Related 
Programs Appropriations Act, 1994 (Public Law 103-87); section 
563 of the Foreign Operations, Export Financing Related 
Programs Appropriations Act, 1995 (Public Law 103-306); and 
comparable provisions.] required to be imposed by any of the 
following provisions of law:
          (1) The Chemical and Biological Weapons Control and 
        Warfare Elimination Act of 1991 (title III of Public 
        Law 102-182).
          (2) The Nuclear Proliferation Prevention Act of 1994 
        (title VIII of Public Law 103-236).
          (3) Section 11B of the Export Administration Act of 
        1979 (50 U.S.C. App. 2410b).
          (4) Chapter 7 of the Arms Export Control Act (22 
        U.S.C. 2797 et seq.).
          (5) The Iran-Iraq Arms Non-Proliferation Act of 1992 
        (title XVI of Public Law 102-484).
          (6) The following provisions of annual appropriations 
        Acts:
                  (A) Section 573 of the Foreign Operations, 
                Export Financing, and Related Programs 
                Appropriations Act, 1994 (Public Law 103-87; 
                107 Stat. 972).
                  (B) Section 563 of the Foreign Operations, 
                Export Financing, and Related Programs 
                Appropriations Act, 1995 (Public Law 103-306; 
                108 Stat. 1649).
                  (C) Section 552 of the Foreign Operations, 
                Export Financing, and Related Programs 
                Appropriations Act, 1996 (Public Law 104-107; 
                110 Stat. 741).
          (7) Comparable provisions.

                              application

  Sec. 905. This title shall cease to be effective [on the date 
which is one year after the date of the enactment of this 
title] on January 6, 1997.
                              ----------                              


                      TITLE 5, UNITED STATES CODE

          * * * * * * *

                          PART III--EMPLOYEES

          * * * * * * *

                  CHAPTER 23--MERIT SYSTEM PRINCIPLES

          * * * * * * *

Sec. 2305. Coordination with certain other provisions of law

  No provision of this chapter, or action taken under this 
chapter, shall be construed to impair the authorities and 
responsibilities set forth in [section 102 of the National 
Security Act of 1947 (61 Stat. 495; 50 U.S.C. 403),] subtitle A 
of title I of the Intelligence Community Act, the Central 
Intelligence Agency Act of 1949 (63 Stat. 208; 50 U.S.C. 403a 
and following), the Act entitled ``An Act to provide certain 
administrative authorities for the National Security Agency, 
and for other purposes'', approved May 29, 1959 (73 Stat. 63; 
50 U.S.C. 402 note), and the Act entitled ``An Act to amend the 
Internal Security Act of 1950'', approved March 26, 1964 (78 
Stat. 168; 50 U.S.C. 831-835).
          * * * * * * *

                     Subpart D--Pay and Allowances

          * * * * * * *

                   CHAPTER 53--PAY RATES AND SYSTEMS

          * * * * * * *

              SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

          * * * * * * *

Sec. 5314. Positions at level III

  Level III of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Solicitor General of the United States.
          Under Secretary of Commerce, Under Secretary of 
        Commerce for Economic Affairs, Under Secretary of 
        Commerce for Export Administration and Under Secretary 
        of Commerce for Travel and Tourism.
          * * * * * * *
          [Deputy Director of Central Intelligence] Deputy 
        Directors of Central Intelligence (2).
          * * * * * * *
                              ----------                              


 SECTION 306 OF THE INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1996

[SEC. 306. SECRECY AGREEMENTS USED IN INTELLIGENCE ACTIVITIES.

  [Notwithstanding any other provision of law not specifically 
referencing this section, a nondisclosure policy form or 
agreement that is to be executed by a person connected with the 
conduct of an intelligence or intelligence-related activity, 
other than an employee or officer of the United States 
Government, may contain provisions appropriate to the 
particular activity for which such document is to be used. Such 
form or agreement shall, at a minimum--
          [(1) require that the person will not disclose any 
        classified information received in the course of such 
        activity unless specifically authorized to do so by the 
        United States Government; and
          [(2) provide that the form or agreement does not 
        bar--
                  [(A) disclosures to Congress; or
                  [(B) disclosures to an authorized official of 
                an executive agency that are deemed essential 
                to reporting a violation of United States law.]
                              ----------                              


          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1995

          * * * * * * *

  TITLE VI--CONSTRUCTION OF FACILITIES FOR THE INTELLIGENCE COMMUNITY

          * * * * * * *

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

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

              TITLE VIII--COUNTERINTELLIGENCE AND SECURITY

          * * * * * * *

[SEC. 811. COORDINATION OF COUNTERINTELLIGENCE ACTIVITIES.

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


 SECTION 403 OF THE INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1992

[SEC. 403. INTELLIGENCE COMMUNITY CONTRACTING.

  [The Director of Central Intelligence shall direct that 
elements of the Intelligence Community, whenever compatible 
with the national security interests of the United States and 
consistent with the operational and security concerns related 
to the conduct of intelligence activities, and where fiscally 
sound, shall award contracts in a manner that would maximize 
the procurement of products in the United States. For purposes 
of this provision, the term ``Intelligence Community'' has the 
same meaning as set forth in paragraph 3.4(f) of Executive 
Order 12333, dated December 4, 1981, or successor orders.]
                              ----------                              


   SECTION 8154 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1995

  [Sec. 8154. (a) None of the funds available to the Department 
of Defense for any fiscal year for drug interdiction or 
counter-drug activities may be transferred to any other 
department or agency of the United States except as 
specifically provided in an appropriations law.
  [(b) None of the funds available to the Central Intelligence 
Agency for any fiscal year for drug interdiction and counter-
drug activities may be transferred to any other department or 
agency of the United States except as specifically provided in 
an appropriations law.]
                              ----------                              


   SECTION 8107 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1994

                          [(transfer of funds)

  [Sec. 8107. During the current fiscal year and thereafter, no 
funds may be made available through transfer, reprogramming, or 
other means between the Central Intelligence Agency and the 
Department of Defense for any intelligence or special activity 
different from that previously justified to the Congress unless 
the Director of Central Intelligence or the Secretary of 
Defense has notified the House and Senate Appropriations 
Committees of the intent to make such funds available for such 
activity.]
                             MINORITY VIEWS

    Although it does not contain many of the more controversial 
provisions of its predecessor, H.R. 3237 as ordered reported by 
the majority would alter the existing relationship between the 
Director of Central Intelligence (DCI) and the heads of other 
agencies or departments, elements of which comprise the 
intelligence community. These changes were proposed, and 
adopted, without providing an opportunity for senior officials 
of the organizations most affected by them to appear before the 
Committee. Without an opportunity to fully assess these 
proposals, it is not possible to make an informed decision 
about their usefulness or necessity and, therefore the wisdom 
of approving them. While we were encouraged by Chairman 
Combest's pledge at the markup of this bill to hold hearings 
prior to conference at which Committee members could obtain 
additional information with which to judge the merits of this 
legislation, we can not endorse it at this time.
    With the exception of the Central Intelligence Agency, the 
components of the intelligence community are also parts of 
cabinet departments, primarily the Departments of Defense, 
State and Justice. A balance exists between the way these 
agencies, bureaus, divisions, and offices function as parts of 
the community and as parts of their parent organizations. At 
the heart of this balance lies a recognition that intelligence 
is a support function, rather than an independent function, of 
government. The intelligence community has grown in an ad hoc 
manner over the last fifty years, in large part because the 
United States has purposely chosen not to create a Department 
of Intelligence and concentrate within it the power exercised 
in other nations by ministers of state security. Managing the 
loose confederation that is the United States intelligence 
community is a challenging and, because it sometimes requires 
obtaining the concurrence of officials with responsibilities in 
areas other than intelligence, often a frustrating job. It has 
not been shown, however, that whatever managerial difficulties 
the current structure presents have made it impossible for the 
community to discharge effectively its responsibilities or that 
significant additions to the already impressive list of 
authorities held by the DCI, which would inevitably disrupt the 
balance between the DCI and other officers of the government, 
primarily the Secretary of Defense, are advisable.
    We view with concern, therefore, provisions in this bill 
which would allow the DCI, with only the consent of the 
Director of the Office of Management and Budget, to transfer 
funds within the National Foreign Intelligence Program and to 
transfer personnel among various intelligence agencies. There 
may be compelling reasons why, as an example, the Secretary of 
Defense might object to the movement of military personnel or 
funds appropriated to the department. Similar objections might 
be held in other cases by the Director of the Federal Bureau of 
Investigation. Under the terms of the bill, however, the DCI 
could effect the transfer regardless of these objections. Had a 
case been made that the existing transfer authority in the 
National Security Act, which requires the concurrence of the 
head of the department or agency from which funds would be 
taken was not adequate, we might feel differently. No such 
case, however, has been made.
    We have similar concerns about proposals to establish 
statutorily committees of the National Security Council, create 
a Director of Military Intelligence, and move a part of the 
human intelligence collection activity of the Department of 
Defense to the CIA. To the extent that any of these actions 
make sense, they can be accomplished by executive action. In 
fact, at least with respect to the structure of the National 
Security Council and the relationship between Defense 
Department human intelligence and the CIA, such action is 
either contemplated or underway. Legislating these changes, 
however, reduces the flexibility of senior officials in the 
executive branch, including the President, to make 
modifications as needs or experience dictates. We consider such 
restrictions to be unwise.
    We do not believe that any of the recent studies of the 
intelligence community support a conclusion that a major 
structural overhaul is needed. In making the changes on which 
there is consensus, we should legislate only when other means 
of effecting those changes are demonstrated to be inadequate. 
The bill would legislate as a matter of first rather than last 
choice, without a solid evidentiary basis to support such 
action. We do not believe that is a wise course.
    Director of Central Intelligence Deutch, in consultation 
with others in the executive branch, has proposed a number of 
reform measures which are intended to achieve many of the goals 
of H.R. 3237. These measures build on the DCI's advocacy of a 
system of joint management, with the Secretary of Defense, of 
the activities of the intelligence community. We believe that 
this joint management concept has great promise for enabling 
the community to function more smoothly, without upsetting the 
balance between the interests of its components. We endorse the 
DCI's proposal, the major components of which include: 
improving policy guidance for the intelligence community 
through the creation by executive action of a Committee on 
Foreign Intelligence, a Consumers Committee, and a Global Crime 
Committee; strengthening the ability of the DCI to discharge 
his community responsibilities by creating two new deputy 
DCI's, one for community management and one for the CIA; and 
strengthening the DCI's authorities by moving over time toward 
the implementation by executive action of a procedure through 
which the DCI would concur in the appointments of the heads of 
all of the major elements of the intelligence community. Other 
recommendations for change, such as the consolidation of 
imagery and mapping activities in a new agency, that were the 
product of careful study by the DCI and the civilian and 
military leadership of the Defense Department deserve to be 
acted upon by Congress. Finally, we believe that initiatives 
such as the DCI's personnel proposals for CIA that will 
facilitate the recruitment and retention of a highly skilled 
workforce through improvements in assignment and selection, 
continuous professional development, and a performance 
appraisal system based on competency and results merit strong 
support.

                                   Norm Dicks.
                                   Bill Richardson.
                                   Julian C. Dixon.
                                   Robert Torricelli.
                                   Ronald D. Coleman.
                                   David E. Skaggs.
                                   Nancy Pelosi.

                                
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