[Senate Report 104-337]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 543
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-337
_______________________________________________________________________


 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1997

                               __________

                              R E P O R T

                                 of the

         COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE

                              to accompany

                                S. 1718

 TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 1997 FOR INTELLIGENCE AND 
 INTELLIGENCE-RELATED ACTIVITIES OF THE UNITED STATES GOVERNMENT, THE 
 COMMUNITY MANAGEMENT ACCOUNT, AND FOR THE CENTRAL INTELLIGENCE AGENCY 
        RETIREMENT AND DISABILITY SYSTEM, AND FOR OTHER REASONS




                 July 29, 1996.--Ordered to be printed


                   COMMITTEE ON GOVERNMENTAL AFFAIRS

   TED STEVENS, Alaska, Chairman
JOHN GLENN, Ohio                     WILLIAM V. ROTH, Jr., Delaware
SAM NUNN, Georgia                    WILLIAM S. COHEN, Maine
CARL LEVIN, Michigan                 FRED THOMPSON, Tennessee
DAVID PRYOR, Arkanas                 PETE V. DOMENICI, News Mexico
JOSEPH I. LIEBERMAN, Connecticut     THAD COCHRAN, Mississippi
DANIEL K. AKAKA, Hawaii              JOHN McCAIN, Arizona
BYRON L. DORGAN, North Carolina      BOB SMITH, New Hampshire
    Albert L. McDermott, Staff 
             Director
 John Roots, Legislative Attorney
 Greg Hetzler, Legislative Fellow
  Leonard Weiss, Minority Staff 
             Director
  Michal Sue Prosser, Chief Clerk



                                                       Calendar No. 543
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-337
_______________________________________________________________________


 TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 1997 FOR INTELLIGENCE AND 
    INTELLIGENCE-RELATED ACTIVITIES OF THE UNITED STATES GOVERNMENT

                                _______
                                

                 July 29, 1996.--Ordered to be printed

_______________________________________________________________________


Mr. Stevens, from the Committee on Governmental Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1718]

    The Senate Committee on Governmental Affairs, to which was 
referred the bill (S. 1718) having considered the same, reports 
favorably thereon with amendments and recommends that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Scope of Committee Review........................................2
III. Glenn Amendment..................................................2
 IV. Inspectors General...............................................2
  V. Committee Action.................................................4
 VI. Estimates of Costs...............................................4
VII. Changes in Existing Law..........................................4
VIII.Regulatory Impact for Legislation................................4


                         i. purpose and summary

    S. 1718, as reported from the Governmental Affairs 
Committee, would authorize appropriations for fiscal year 1997 
for intelligence and intelligence-related activities of the 
United States Government, including certain activities within 
the jurisdiction of the Governmental Affairs Committee.
    The Senate Select Committee on Intelligence reported the 
bill on April 30, 1996. It was referred to the Senate Committee 
on Armed Services on May 2, 1996, in accordance with section 
3(b) of Senate Resolution 400, 94th Congress. At the request of 
the Senate Committee on Governmental Affairs, S. 1718 was, on 
June 6, 1996, referred to this committee for a thirty-session 
day period.

                     ii. scope of committee review

    The committee requested an opportunity to review those 
provisions of S. 1718 which addressed Federal government 
organization. In broad terms this included provisions to create 
a commission to assess government structure and efficiency 
relating to non-proliferation and a new senior executive 
service for the intelligence community. The committee also 
noted language in the report accompanying S. 1718 which 
suggested a lack of effective coordination on joint matters by 
the various inspectors general (IGs) in those agencies 
comprising the intelligence community. After careful review of 
S. 1718, including extensive discussions with the staffs of 
both the Armed Services and Intelligence Committees, the 
Governmental Affairs Committee voted to report the bill 
favorably, with amendments, on July 25. This is prior to the 
expiration of the 30 days of session allotted in Senate 
Resolution 400 for consideration upon referral.
    On June 6, 1996, the Senate Armed Services Committee 
published its report (104-277) on S. 1718 and suggested several 
amendments, one of which strike the concept of a new senior 
executive service personnel program for the intelligence 
community. As noted in the Armed Services Committee report a 
number of provisions in S. 1718 would shift authority over DOD 
intelligence assets from the Secretary of Defense (SecDef) to 
the Director of Central Intelligence (DCI). Most of these 
provisions were amended by the Armed Services Committee and 
eventual compromises negotiated between them and the 
Intelligence Committee.
    On June 11, the Intelligence Committee published its report 
(104-278) on S. 1745, the Department of Defense Authorization 
bill, agreeing to the Armed Services Committee reommendation to 
strike the new senior excutive service personnel program 
language.
    The Governmental Affairs Committee only addressed issues 
within our jurisdication; however, we fully concur in all the 
changes recommended by the Armed Services Committee including 
its recommendation to strike all language establishing a new 
senior executive service peronnel program for the intelligence 
community.

                          iii. glenn amendment

    Senator Glenn's amendment to S. 1718 (1) provides more 
specificity as to the qualifications of commission members; (2) 
enumerates how the commission will assess the effectiveness of 
the U.S. cooperation with other countries with respect to 
nonproliferation activities; and (3) calls on the commission to 
address export controls, funding, information flow, and the 
organization of counterproliferation activities of the U.S., 
among other issues. The committee voted to report the bill with 
this amendment.

                         iv. inspectors general

    An earlier draft version of the Intelligence Authorization 
Bill contained language which would have broadened the role of 
the CIA's Inspector General to act, in effect, as an inspector 
general for the entire intelligence community. That version of 
the bill would have included in the duties of the CIA IG the 
duty inter alia to ``(a) identify to the Director programs and 
operations conducted by elements of the intelligence community 
as appropriate subjects for inspections, investigations and 
audits''; and (b) upon the request of the Director, or his 
designee, arrange for and coordinate the conduct of'' these 
reviews, as well as ``(c) establish standards for the staffs 
and products of the inspectors general of the elements of the 
intelligence community.'' The Intelligence Committee felt there 
was a need to establish a central point of coordination or 
accountability for intelligence community IG issues. Better 
arrangements exist for coordinating interagency IG activities 
than empowering one of the concerned IGs to act as the central 
point of contact for intelligence matters. The Intelligence 
Committee, following a discussion with the staff of the 
Governmental Affairs Committee, subsequently agreed to drop 
this provision from their bill; however, their committee report 
still expresses concerns over the IGs' ability to conduct or 
coordinate activities involving intelligence matters.
    As the committee charged with the oversight of the 
statutory inspectors general, we have found no evidence 
indicating Congress should take the extraordinary step of 
creating a ``community'' inspector general. This would be 
analogous to empowering the Justice Department IG to act as 
coordinator and central point of contact on all IG matters 
involving the law enforcement ``community'' which, like the 
intelligence community, consists of various organizations 
spread across more than one department.
    This committee has heard from a number of the inspectors 
general in departments and agencies comprising the intelligence 
community expressing concern over several issues raised in the 
Intelligence Committee report. These are: the suggestion by the 
Intelligence Committee of a lack of effective coordination 
between intelligence community IGs, lack of consistent IG 
coverage of high risk or high dollar intelligence programs, 
lack of effective management support and attention to the IGs 
and their products and recommendations, and inconsistent 
training and professional standards for IG employees. In 
addition, the Intelligence Committee noted that concerns have 
been expressed by intelligence officials outside the IG 
community regarding the professionalism, experience, and 
training of the IG staffs. The IGs expressed their view that 
these concerns were for the most part unfounded.
    In our view adequate mechanisms for coordinating 
interagency IG activities already exist. We reference the 
August 1994 establishment of the DOD/CIA Intelligence Inspector 
General Forum (the Forum) created to ensure adequate coverage 
of topics and issues involving interagency functions and 
programs. In addition, the President's Council on Integrity and 
Efficiency (PCIE), comprised of representatives from the 
Statutory IGs, has the responsibility for coordinating 
interagency IG activities throughout the Federal Government. 
The Government Affairs Committee has been in dialogue with the 
Office of Management and Budget with a view toward formalizing 
a PCIE mechanism made up of statutory IG representatives from 
all those agencies and departments comprising the intelligence 
community. We believe this would be the proper venue for 
coordinating joint IG activities involving those intelligence 
community agencies outside DOD and CIA.
    The Intelligence Committee report calls for the thirteen 
intelligence community IGs (Department of Defense, Central 
Intelligence Agency, Department of Justice, Defense 
Intelligence Agency, Central Imagery Office, Department of 
Energy, Department of State, Department of the Treasury, the 
Military Services, National Reconnaissance Office, and National 
Security Agency) to provide by January 15, 1997, a report to 
the committees describing the reviews involving joint 
intelligence issues in which they have participated since 
January 1, 1994. Copies of those reports should also be 
provided to the Governmental Affairs Committee as the oversight 
committee for the statutory inspectors general.

                          v. committee action

    On July 25, 1996, the Senate Governmental Affairs Committee 
held a markup on S. 1718. Senator Glenn's amendment was 
approved by roll call vote of seven to six. The following 
Senators were recorded as voting aye: Cohen (by proxy), Glenn, 
Levin, Pryor (by proxy), Lieberman (by proxy), Akaka (by 
proxy), and Dorgan. The following Senators were recorded as 
voting no: Stevens, Roth (by proxy), Thompson, Cochran, McCain, 
and Smith. A voice vote then occurred on the motion to report 
S. 1718, as amended by the Glenn Amendment, from the 
Governmental Affairs Committee.

                         vi. estimates of costs

    The committee finds no changes in the estimate of costs as 
a result of these amendments.

                      vii. changes in existing law

    Pursuant to the provisions of paragraph 12 of rule XXVI of 
the Standing Rules of the Senate, the changes in existing law 
made by certain portions of the bill have not been shown in 
this section of the report because, in the opinion of the 
committee, it is necessary to dispense with showing such 
changes in order to expedite the business of the Senate and 
reduce the expenditure of funds.

                 viii. regulatory impact of legislation

    Paragraph 11(b)(1) of rule XXVI of the Standing Rules of 
the Senate requires that each report accompanying a bill 
evaluate ``the regulatory impact which would be incurred in 
carrying out the bill.'' The enactment of this legislation 
would not have a significant regulatory impact.

                                
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