[House Report 105-780]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-780
_______________________________________________________________________


 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1999

                                _______
                                

                October 5, 1998.--Ordered to be printed

_______________________________________________________________________


  Mr. Goss, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 3694]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the Senate to the bill (H.R. 
3694), to authorize appropriations for fiscal year 1999 for 
intelligence and intelligence-related activities of the United 
States Government, the Community Management Account, and the 
Central Intelligence Agency Retirement and Disability System, 
and for other purposes, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
    That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
    In lieu of the matter proposed to be inserted by the Senate 
amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the 
``Intelligence Authorization Act for Fiscal Year 1999''.
    (b) Table of Contents.--The table of contents for this Act 
is as follow:

Sec. 1. Short title; table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Community Management Account.
Sec. 105. Authorization of emergency supplemental appropriations for 
          fiscal year 1998.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                      TITLE III--GENERAL PROVISIONS

Sec. 301. Increase in employee compensation and benefits authorized by 
          law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. One-year extension of application of sanctions laws to 
          intelligence activities.
Sec. 304. Sense of Congress on intelligence community contracting.
Sec. 305. Modification of national security education program.
Sec. 306. Requirement to direct competitive analysis of analytical 
          products having National importance.
Sec. 307. Annual reports to Congress.
Sec. 308. Quadrennial intelligence review.
Sec. 309. Designation of headquarters compound of Central Intelligence 
          Agency as the George Bush Center for Intelligence.

                  TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Enhanced protective authority for CIA personnel and family 
          members.
Sec. 402. Authority for retroactive payment of specified special pay 
          allowance.
Sec. 403. Technical amendments.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

Sec. 501. Extension of authority to engage in commercial activities as 
          security for intelligence collection activities.

       TITLE VI--FOREIGN INTELLIGENCE AND INTERNATIONAL TERRORISM 
                             INVESTIGATIONS

Sec. 601. Pen registers and trap and trace devices in foreign 
          intelligence and international terrorism investigations.
Sec. 602. Access to certain business records for foreign intelligence 
          and international terrorism investigations.
Sec. 603. Conforming and clerical amendments.
Sec. 604. Wire and electronic communications interception requirements.
Sec. 605. Authority of Attorney General to accept voluntary services.

TITLE VII--WHISTLEBLOWER PROTECTION FOR INTELLIGENCE COMMUNITY EMPLOYEES 
                  REPORTING URGENT CONCERNS TO CONGRESS

Sec. 701. Short title; findings.
Sec. 702. Protection of intelligence community employees who report 
          urgent concerns to Congress.

                    TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1999 for the conduct of the intelligence and intelligence-
related activities of the following elements of the United 
States Government:
            (1) The Central Intelligence Agency.
            (2) The Department of Defense.
            (3) The Defense Intelligence Agency.
            (4) The National Security Agency.
            (5) The Department of the Army, the Department of 
        the Navy, and the Department of the Air Force.
            (6) The Department of State.
            (7) The Department of the Treasury.
            (8) The Department of Energy.
            (9) The Federal Bureau of Investigation.
            (10) The National Reconnaissance Office.
            (11) The National Imagery and Mapping Agency.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

    (a) Specifications of Amounts and Personnel Ceilings.--The 
amounts authorized to be appropriated under section 101, and 
the authorized personnel ceilings as of September 30, 1999, for 
the conduct of the intelligence and intelligence-related 
activities of the elements listed in such section, are those 
specified in the classified Schedule of Authorizations prepared 
to accompany the conference report on the bill H.R. 3694 of the 
105th Congress.
    (b) Availability of Classified Schedule of 
Authorizations.--The Schedule of Authorizations shall be made 
available to the Committees on Appropriations of the Senate and 
House of Representatives and to the President. The President 
shall provide for suitable distribution of the Schedule, or of 
appropriate portions of the Schedule, within the Executive 
Branch.

SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

    (a) Authority for Adjustments.--With the approval of the 
Director of the Office of Management and Budget, the Director 
of Central Intelligence may authorize employment of civilian 
personnel in excess of the number authorized for fiscal year 
1999 under section 102 when the Director of Central 
Intelligence determines that such action is necessary to the 
performance of important intelligence functions, except that 
the number of personnel employed in excess of the number 
authorized under such section may not, for any element of the 
intelligence community, exceed two percent of the number of 
civilian personnel authorized under such section for such 
element.
    (b) Notice to Intelligence Committees.--The Director of 
Central Intelligence shall promptly notify the Permanent Select 
Committee on Intelligence of the House of Representatives and 
the Select Committee on Intelligence of the Senate upon an 
exercise of the authority granted by this section.

SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.

    (a) Authorization of Appropriations.--There is authorized 
to be appropriated for the Community Management Account of the 
Director of Central Intelligence for fiscal year 1999 the sum 
of $129,123,000. Within such amount, funds identified in the 
classified Schedule of Authorizations referred to in section 
102(a) for the Advanced Research and Development Committee and 
the Advanced Technology Group shall remain available until 
September 30, 2000.
    (b) Authorized Personnel Levels.--The elements within the 
Community Management Account of the Director of Central 
Intelligence are authorized 283 full-time personnel as of 
September 30, 1999. Personnel serving in such elements may be 
permanent employees of the Community Management Staff or 
personnel detailed from other elements of the United States 
Government.
    (c) Classified Authorizations.--
            (1) Authorization of appropriations.--In addition 
        to amounts authorized to be appropriated for the 
        Community Management Account by subsection (a), there 
        is also authorized to be appropriated for the Community 
        Management Account for fiscal year 1999 such additional 
        amounts as are specified in the classified Schedule of 
        Authorizations referred to in section 102(a). Such 
        additional amounts shall remain available until 
        September 30, 2000.
            (2) Authorization of personnel.--In addition to the 
        personnel authorized by subsection (b) for elements of 
        the Community Management Account as of September 30, 
        1999, there is authorized such additional personnel for 
        such elements as of that date as is specified in the 
        classified Schedule of Authorizations.
    (d) Reimbursement.--Except as provided in section 113 of 
the National Security Act of 1947 (50 U.S.C. 404h), during 
fiscal year 1999, any officer or employee of the United States 
or member of the Armed Forces who is detailed to the staff of 
an element within the Community Management Account from another 
element of the United States Government shall be detailed on a 
reimbursable basis, except that any such officer, employee, or 
member may be detailed on a nonreimbursable basis for a period 
of less than one year for the performance of temporary 
functions as required by the Director of Central Intelligence.
    (e) National Drug Intelligence Center.--
            (1) In general.--Of the amount appropriated 
        pursuant to the authorization in subsection (a), the 
        amount of $27,000,000 shall be available for the 
        National Drug Intelligence Center. Within such amount, 
        funds provided for research, development, test, and 
        evaluation purposes shall remain available until 
        September 30, 2000, and funds provided for procurement 
        purposes shall remain available until September 30, 
        2001.
            (2) Transfer of funds.--The Director of Central 
        Intelligence shall transfer to the Attorney General of 
        the United States funds available for the National Drug 
        Intelligence Center under paragraph (1). The Attorney 
        General shall utilize funds so transferred for the 
        activities of the National Drug Intelligence Center.
            (3) Limitation.--Amounts available for the National 
        Drug Intelligence Center may not be used in 
        contravention of the provisions of section 103(d)(1) of 
        the National Security Act of 1947 (50 U.S.C. 403-
        3(d)(1)).
            (4) Authority.--Notwithstanding any other provision 
        of law, the Attorney General shall retain full 
        authority over the operations of the National Drug 
        Intelligence Center.
    (f) Transfer Authority for Funds for Security Requirements 
at Overseas Locations.--
            (1) In general.--Of the amount appropriated 
        pursuant to the authorization in subsection (a), the 
        Director of Central Intelligence may transfer funds to 
        departments or other agencies for the sole purpose of 
        supporting certain intelligence community security 
        requirements at overseas locations, as specified by the 
        Director.
            (2) Limitation.--Amounts made available for 
        departments or agencies under paragraph (1) shall be--
      (A) transferred to the specific appropriation;
      (B) allocated to the specific account in the specific 
amount, as determined by the Director;
      (C) merged with funds in such account that are available 
for architectural and engineering support expenses at overseas 
locations; and
      (D) available only for the same purposes, and subject to 
the same terms and conditions, as the funds described in 
subparagraph (C).

SEC. 105. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR 
                    FISCAL YEAR 1998.

    (a) Authorization.--Amounts authorized to be appropriated 
for fiscal year 1998 under section 101 of the Intelligence 
Authorization Act for Fiscal Year 1998 (Public Law 105-107) for 
the conduct of the intelligence activities of elements of the 
United States Government listed in such section are hereby 
increased, with respect to any such authorized amount, by the 
amount by which appropriations pursuant to such authorization 
were increased by the following:
            (1) An emergency supplemental appropriation in 
        title I of the 1998 Supplemental Appropriations and 
        Rescissions Act (Public Law 105-174).
            (2) An emergency supplemental appropriation in a 
        supplemental appropriations Act for fiscal year 1998 
        that is enacted after September 28, 1998, for such 
        amounts as are designated by Congress as an emergency 
        requirement pursuant to section 251(b)(2)(A) of the 
        Balanced Budget and Emergency Deficit Control Act of 
        1985 (2 U.S.C. 901(b)(2)(A)).
    (b) Ratification.--For purposes of section 504 of the 
National Security Act of 1947 (50 U.S.C. 414), any obligation 
or expenditure of those amounts deemed to have been 
specifically authorized by Congress in the Act referred to in 
subsection (a)(1) and in the supplemental appropriations Act 
referred to in subsection (a)(2) is hereby ratified and 
confirmed.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for the Central 
Intelligence Agency Retirement and Disability Fund for fiscal 
year 1999 the sum of $201,500,000.

                     TITLE III--GENERAL PROVISIONS

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

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

SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

SEC. 303. ONE-YEAR EXTENSION OF APPLICATION OF SANCTIONS LAWS TO 
                    INTELLIGENCE ACTIVITIES.

    Section 905 of the National Security Act of 1947 (50 U.S.C. 
441d) is amended by striking out ``January 6, 1999'' and 
inserting in lieu thereof ``January 6, 2000''.

SEC. 304. SENSE OF CONGRESS ON INTELLIGENCE COMMUNITY CONTRACTING.

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

SEC. 305. MODIFICATION OF NATIONAL SECURITY EDUCATION PROGRAM.

    (a) Assistance for Counterproliferation Studies.--The David 
L. Boren National Security Education Act of 1991 (50 U.S.C. 
1901 et seq.) is amended as follows:
            (1) Section 801 (50 U.S.C. 1901) is amended by 
        inserting ``counterproliferation studies,'' after 
        ``area studies,'' in subsections (b)(7) and (c)(2).
            (2) Section 802 (50 U.S.C. 1902) is amended--
                    (A) in subsection (a), by inserting 
                ``counterproliferation studies,'' after ``area 
                studies,'' in paragraphs (1)(B)(i), (1)(C), and 
                (4); and
                    (B) in subsection (b)(2), by inserting 
                ``counterproliferation study,'' after ``area 
                study,'' in subparagraphs (A)(ii) and (B)(ii).
            (3) Section 803 (50 U.S.C. 1903) is amended by 
        striking out ``and area'' in subsections (b)(8) and 
        (d)(4) and inserting in lieu thereof ``area, and 
        counterproliferation''.
            (4) Section 806(b)(1) (50 U.S.C. 1906(b)(1)) is 
        amended by striking out ``and area'' and inserting in 
        lieu thereof ``area, and counterproliferation''.
    (b) Revision of Membership of National Security Education 
Board.--Section 803(b)(6) of such Act (50 U.S.C. 1903(b)(6)) is 
amended to read as follows:
            ``(6) The Secretary of Energy.''.

SEC. 306. REQUIREMENT TO DIRECT COMPETITIVE ANALYSIS OF ANALYTICAL 
                    PRODUCTS HAVING NATIONAL IMPORTANCE.

    Section 102(g)(2) of the National Security Act of 1947 (50 
U.S.C. 403(g)(2)) is amended--
            (1) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (E) and (F), respectively; and
            (2) by inserting after subparagraph (C) the 
        following new subparagraph (D):
            ``(D) direct competitive analysis of analytical 
        products having National importance;''.

SEC. 307. ANNUAL REPORTS TO CONGRESS.

    (a) Additional Annual Reports From the Director of Central 
Intelligence.--Title I of the National Security Act of 1947 (50 
U.S.C. 401 et seq.) is amended by adding at the end the 
following new section:


 ``additional annual reports from the director of central intelligence


    ``Sec. 114. (a) Report on Intelligence Community 
Cooperation with Federal Law Enforcement Agencies.--(1) Not 
later than December 31 of each year, the Director of Central 
Intelligence shall submit to the congressional intelligence 
committees and the congressional leadership a report describing 
the nature and extent of cooperation and assistance provided by 
the intelligence community to Federal law enforcement agencies 
with respect to efforts to stop the illegal importation into 
the United States of controlled substances (as that term is 
defined in section 102(6) of the Controlled Substances Act (21 
U.S.C. 802(6)) that are included in schedule I or II under part 
B of such Act.
    ``(2) Each such report shall include a discussion of the 
following:
            ``(A) Illegal importation of such controlled 
        substances through transit zones such as the Caribbean 
        Sea and across the southwest and northern borders of 
        the United States.
            ``(B) Methodologies used for such illegal 
        importation.
            ``(C) Additional routes used for such illegal 
        importation.
            ``(D) Quantities of such controlled substances 
        transported through each route.
    ``(3) Each such report may be prepared in classified form, 
unclassified form, or unclassified form with a classified 
annex.
    ``(b) Annual Report on the Safety and Security of Russian 
Nuclear Facilities and Nuclear Military Forces.--(1) The 
Director of Central Intelligence shall, on an annual basis, 
submit to the congressional intelligence committees and the 
congressional leadership an intelligence report assessing the 
safety and security of the nuclear facilities and nuclear 
military forces in Russia.
    ``(2) Each such report shall include a discussion of the 
following:
            ``(A) The ability of the Government of Russia to 
        maintain its nuclear military forces.
            ``(B) The security arrangements at civilian and 
        military nuclear facilities in Russia.
            ``(C) The reliability of controls and safety 
        systems at civilian nuclear facilities in Russia.
            ``(D) The reliability of command and control 
        systems and procedures of the nuclear military forces 
        in Russia.
    ``(3) Each such report shall be submitted in unclassified 
form, but may contain a classified annex.
    ``(c) Definitions.--In this section:
            ``(1) The term `congressional intelligence 
        committees' means the Permanent Select Committee on 
        Intelligence of the House of Representatives and the 
        Select Committee on Intelligence of the Senate.
            ``(2) The term `congressional leadership' means the 
        Speaker and the minority leader of the House of 
        Representatives and the majority leader and the 
        minority leader of the Senate.''.
    (b) Clerical Amendment.--The table of contents in the first 
section of such Act is amended by inserting after the item 
relating to section 113 the following new item:

``Sec. 114. Additional annual reports from the Director of Central 
          Intelligence.''.

    (c) Date for First Report on Cooperation With Civilian Law 
Enforcement Agencies.--The first report under section 114(a) of 
the National Security Act of 1947, as added by subsection (a), 
shall be submitted not later than December 31, 1999.

SEC. 308. QUADRENNIAL INTELLIGENCE REVIEW.

    (a) Sense of Congress.--It is the sense of Congress--
            (1) that the Director of Central Intelligence and 
        the Secretary of Defense should jointly complete, in 
        1999 and every four years thereafter, a comprehensive 
        review of United States intelligence programs and 
        activities, with each such review--
                    (A) to include assessments of intelligence 
                policy, resources, manpower, organization, and 
                related matters; and
                    (B) to encompass the programs and 
                activities funded under the National Foreign 
                Intelligence Program (NFIP), the Joint Military 
                Intelligence Program (JMIP), and the Tactical 
                Intelligence and Related Activities (TIARA) 
                accounts;
            (2) that the results of each review should be 
        shared with the appropriate committees of Congress and 
        the congressional leadership; and
            (3) that the Director, in conjunction with the 
        Secretary, should establish a nonpartisan, independent 
        panel (with members chosen in consultation with the 
        appropriate committees of Congress and the 
        congressional leadership from individuals in the 
        private sector) in order to--
                    (A) assess each review under paragraph (1);
                    (B) conduct an assessment of alternative 
                intelligence structures to meet the anticipated 
                intelligence requirements for the national 
                security and foreign policy of the United 
                States through the year 2010; and
                    (C) make recommendations to the Director 
                and the Secretary regarding the optimal 
                intelligence structure for the United States in 
                light of the assessment under subparagraph (B).
    (b) Report.--(1) Not later than December 1, 1998, the 
Director of Central Intelligence and the Secretary of Defense 
shall jointly submit to the committees specified in paragraph 
(2) the views of the Director and the Secretary regarding--
            (A) the potential value of conducting quadrennial 
        intelligence reviews as described in subsection (a)(1); 
        and
            (B) the potential value of assessments of such 
        reviews as described in subsection (a)(3)(A).
    (2) The committees referred to in paragraph (1) are the 
following:
            (A) The Select Committee on Intelligence, the 
        Committee on Armed Services, and the Committee on 
        Appropriations of the Senate.
            (B) The Permanent Select Committee on Intelligence, 
        the Committee on National Security, and the Committee 
        on Appropriations of the House of Representatives.

SEC. 309. DESIGNATION OF HEADQUARTERS COMPOUND OF CENTRAL INTELLIGENCE 
                    AGENCY AS THE GEORGE BUSH CENTER FOR INTELLIGENCE.

    (a) Designation.--The headquarters compound of the Central 
Intelligence Agency located in Langley, Virginia, shall be 
known and designated as the ``George Bush Center for 
Intelligence''.
    (b) References.--Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the 
headquarters compound referred to in subsection (a) shall be 
deemed to be a reference to the ``George Bush Center for 
Intelligence''.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

SEC. 401. ENHANCED PROTECTIVE AUTHORITY FOR CIA PERSONNEL AND FAMILY 
                    MEMBERS.

    Section 5(a)(4) of the Central Intelligence Agency Act of 
1949 (50 U.S.C. 403f(a)(4)) is amended by striking out ``and 
the protection of Agency personnel and of defectors, their 
families,'' and inserting in lieu thereof ``and the protection 
of current and former Agency personnel and their immediate 
families, defectors and their immediate families,''.

SEC. 402. AUTHORITY FOR RETROACTIVE PAYMENT OF SPECIFIED SPECIAL PAY 
                    ALLOWANCE.

    (a) Authorization.--The Director of Central Intelligence 
may make payments with respect to the period beginning on 
January 30, 1998, and ending on April 7, 1998, of the special 
pay allowance described in the Central Intelligence Agency 
notice dated April 7, 1998 (notwithstanding the otherwise 
applicable effective date for such payments of April 7, 1998).
    (b) Funds Available.--Payments authorized by subsection (a) 
may be made from amounts appropriated for the Central 
Intelligence Agency for fiscal year 1998 or for fiscal year 
1999.

SEC. 403. TECHNICAL AMENDMENTS.

    (a) Central Intelligence Agency Act of 1949.--The Central 
Intelligence Agency Act of 1949 is amended as follows:
            (1) Section 5(a)(1) (50 U.S.C. 403f(a)(1)) is 
        amended--
                    (A) by striking out ``subparagraphs (B) and 
                (C) of section 102(a)(2)'' and inserting in 
                lieu thereof ``paragraphs (2) and (3) of 
                section 102(a)'';
                    (B) by striking out ``(c)(5)'' and 
                inserting in lieu thereof ``(c)(6)'';
                    (C) by inserting ``(3),'' after 
                ``403(a)(2),'';
                    (D) by inserting ``(c)(6), (d)'' after 
                ``403-3''; and
                    (E) by inserting ``(a), (g)'' after ``403-
                4''.
            (2) Section 6 (50 U.S.C. 403g) is amended by 
        striking out ``(c)(5)'' each place it appears and 
        inserting in lieu thereof ``(c)(6)''.
    (b) Central Intelligence Agency Retirement Act.--Section 
201(c) of the Central Intelligence Agency Retirement Act (50 
U.S.C. 2011(c)) is amended by striking out ``section 103(c)(5) 
of the National Security Act of 1947 (50 U.S.C. 403-3(c)(5))'' 
and inserting in lieu thereof ``paragraph (6) of section 103(c) 
of the National Security Act of 1947 (50 U.S.C. 403-3(c))''.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

SEC. 501. EXTENSION OF AUTHORITY TO ENGAGE IN COMMERCIAL ACTIVITIES AS 
                    SECURITY FOR INTELLIGENCE COLLECTION ACTIVITIES.

    Section 431(a) of title 10, United States Code, is amended 
by striking out ``December 31, 1998'' and inserting in lieu 
thereof ``December 31, 2000''.

      TITLE VI--FOREIGN INTELLIGENCE AND INTERNATIONAL TERRORISM 
                             INVESTIGATIONS

SEC. 601. PEN REGISTERS AND TRAP AND TRACE DEVICES IN FOREIGN 
                    INTELLIGENCE AND INTERNATIONAL TERRORISM 
                    INVESTIGATIONS.

    The Foreign Intelligence Surveillance Act of 1978 (50 
U.S.C. 1801 et seq.) is amended--
            (1) by redesignating title IV as title VI and 
        section 401 as section 601, respectively; and
            (2) by inserting after title III the following new 
        title:

   ``TITLE IV--PEN REGISTERS AND TRAP AND TRACE DEVICES FOR FOREIGN 
                         INTELLIGENCE PURPOSES


                             ``definitions


    ``Sec. 401. As used in this title:
            ``(1) The terms `foreign power', `agent of a 
        foreign power', `international terrorism', `foreign 
        intelligence information', `Attorney General', `United 
        States person', `United States', `person', and `State' 
        shall have the same meanings as in section 101 of this 
        Act.
            ``(2) The terms `pen register' and `trap and trace 
        device' have the meanings given such terms in section 
        3127 of title 18, United States Code.
            ``(3) The term `aggrieved person' means any 
        person--
                    ``(A) whose telephone line was subject to 
                the installation or use of a pen register or 
                trap and trace device authorized by this title; 
                or
                    ``(B) whose communication instrument or 
                device was subject to the use of a pen register 
                or trap and trace device authorized by this 
                title to capture incoming electronic or other 
                communications impulses.


``pen registers and trap and trace devices for foreign intelligence and 
                 international terrorism investigations


    ``Sec. 402. (a)(1) Notwithstanding any other provision of 
law, the Attorney General or a designated attorney for the 
Government may make an application for an order or an extension 
of an order authorizing or approving the installation and use 
of a pen register or trap and trace device for any 
investigation to gather foreign intelligence information or 
information concerning international terrorism which is being 
conducted by the Federal Bureau of Investigation under such 
guidelines as the Attorney General approves pursuant to 
Executive Order No. 12333, or a successor order.
    ``(2) The authority under paragraph (1) is in addition to 
the authority under title I of this Act to conduct the 
electronic surveillance referred to in that paragraph.
    ``(b) Each application under this section shall be in 
writing under oath or affirmation to--
            ``(1) a judge of the court established by section 
        103(a) of this Act; or
            ``(2) a United States Magistrate Judge under 
        chapter 43 of title 28, United States Code, who is 
        publicly designated by the Chief Justice of the United 
        States to have the power to hear applications for and 
        grant orders approving the installation and use of a 
        pen register or trap or trace device on behalf of a 
        judge of that court.
    ``(c) Each application under this section shall require the 
approval of the Attorney General, or a designated attorney for 
the Government, and shall include--
            ``(1) the identity of the Federal officer seeking 
        to use the pen register or trap and trace device 
        covered by the application;
            ``(2) a certification by the applicant that the 
        information likely to be obtained is relevant to an 
        ongoing foreign intelligence or international 
terrorisminvestigation being conducted by the Federal Bureau of 
Investigation under guidelines approved by the Attorney General; and
            ``(3) information which demonstrates that there is 
        reason to believe that the telephone line to which the 
        pen register or trap and trace device is to be 
        attached, or the communication instrument or device to 
        be covered by the pen register or trap and trace 
        device, has been or is about to be used in 
        communication with--
                    ``(A) an individual who is engaging or has 
                engaged in international terrorism or 
                clandestine intelligence activities that 
                involve or may involve a violation of the 
                criminal laws of the United States; or
                    ``(B) a foreign power or agent of a foreign 
                power under circumstances giving reason to 
                believe that the communication concerns or 
                concerned international terrorism or 
                clandestine intelligence activities that 
                involve or may involve a violation of the 
                criminal laws of the United States.
    ``(d)(1) Upon an application made pursuant to this section, 
the judge shall enter an ex parte order as requested, or as 
modified, approving the installation and use of a pen register 
or trap and trace device if the judge finds that the 
application satisfies the requirements of this section.
    ``(2) An order issued under this section--
            ``(A) shall specify--
                    ``(i) the identity, if known, of the person 
                who is the subject of the foreign intelligence 
                or international terrorism investigation;
                    ``(ii) in the case of an application for 
                the installation and use of a pen register or 
                trap and trace device with respect to a 
                telephone line--
                            ``(I) the identity, if known, of 
                        the person to whom is leased or in 
                        whose name the telephone line is 
                        listed; and
                            ``(II) the number and, if known, 
                        physical location of the telephone 
                        line; and
                    ``(iii) in the case of an application for 
                the use of a pen register or trap and trace 
                device with respect to a communication 
                instrument or device not covered by clause 
                (ii)--
                            ``(I) the identity, if known, of 
                        the person who owns or leases the 
                        instrument or device or in whose name 
                        the instrument or device is listed; and
                            ``(II) the number of the instrument 
                        or device; and
            ``(B) shall direct that--
                    ``(i) upon request of the applicant, the 
                provider of a wire or electronic communication 
                service, landlord, custodian, or other person 
                shall furnish any information, facilities, or 
                technical assistance necessary to accomplish 
                the installation and operation of the pen 
                register or trap and trace device in such a 
                manner as will protect its secrecy and produce 
                a minimum amount of interference with the 
                services that such provider, landlord, 
                custodian, or other person is providing the 
                person concerned;
                    ``(ii) such provider, landlord, custodian, 
                or other person--
                            ``(I) shall not disclose the 
                        existence of the investigation or of 
                        the pen register or trap and trace 
                        device to any person unless or until 
                        ordered by the court; and
                            ``(II) shall maintain, under 
                        security procedures approved by the 
                        Attorney General and the Director of 
                        Central Intelligence pursuant to 
                        section 105(b)(2)(C) of this Act, any 
                        records concerning the pen register or 
                        trap and trace device or the aid 
                        furnished; and
                    ``(iii) the applicant shall compensate such 
                provider, landlord, custodian, or other person 
                for reasonable expenses incurred by such 
                provider, landlord, custodian, or other person 
                in providing such information, facilities, or 
                technical assistance.
    ``(e) An order issued under this section shall authorize 
the installation and use of a pen register or trap and trace 
device for a period not to exceed 90 days. Extensions of such 
an order may be granted, but only upon an application for an 
order under this section and upon the judicial finding required 
by subsection (d). The period of extension shall be for a 
period not to exceed 90 days.
    ``(f) No cause of action shall lie in any court against any 
provider of a wire or electronic communication service, 
landlord, custodian, or other person (including any officer, 
employee, agent, or other specified person thereof) that 
furnishes any information, facilities, or technical assistance 
under subsection (d) in accordance with the terms of a court 
under this section.
    ``(g) Unless otherwise ordered by the judge, the results of 
a pen register or trap and trace device shall be furnished at 
reasonable intervals during regular businesshours for the 
duration of the order to the authorized Government official or 
officials.


                   ``authorization during emergencies


    ``Sec. 403. (a) Notwithstanding any other provision of this 
title, when the Attorney General makes a determination 
described in subsection (b), the Attorney General may authorize 
the installation and use of a pen register or trap and trace 
device on an emergency basis to gather foreign intelligence 
information or information concerning international terrorism 
if--
            ``(1) a judge referred to in section 402(b) of this 
        Act is informed by the Attorney General or his designee 
        at the time of such authorization that the decision has 
        been made to install and use the pen register or trap 
        and trace device, as the case may be, on an emergency 
        basis; and
            ``(2) an application in accordance with section 402 
        of this Act is made to such judge as soon as 
        practicable, but not more than 48 hours, after the 
        Attorney General authorizes the installation and use of 
        the pen register or trap and trace device, as the case 
        may be, under this section.
    ``(b) A determination under this subsection is a reasonable 
determination by the Attorney General that--
            ``(1) an emergency requires the installation and 
        use of a pen register or trap and trace device to 
        obtain foreign intelligence information or information 
        concerning international terrorism before an order 
        authorizing the installation and use of the pen 
        register or trap and trace device, as the case may be, 
        can with due diligence be obtained under section 402 of 
        this Act; and
            ``(2) the factual basis for issuance of an order 
        under such section 402 to approve the installation and 
        use of the pen register or trap and trace device, as 
        the case may be, exists.
    ``(c)(1) In the absence of an order applied for under 
subsection (a)(2) approving the installation and use of a pen 
register or trap and trace device authorized under this 
section, the installation and use of the pen register or trap 
and trace device, as the case may be, shall terminate at the 
earlier of--
            ``(A) when the information sought is obtained;
            ``(B) when the application for the order is denied 
        under section 402 of this Act; or
            ``(C) 48 hours after the time of the authorization 
        by the Attorney General.
    ``(2) In the event that an application for an order applied 
for under subsection (a)(2) is denied, or in any other case 
where the installation and use of a pen register or trap and 
trace device under this section is terminated and no order 
under section 402 of this Act is issued approving the 
installation and use of the pen register or trap and trace 
device, as the case may be, no information obtained or evidence 
derived from the use of the pen register or trap and trace 
device, as the case may be, shall be received in evidence or 
otherwise disclosed in any trial, hearing, or other proceeding 
in or before any court, grand jury, department, office, agency, 
regulatory body, legislative committee, or other authority of 
the United States, a State, or political subdivision thereof, 
and no information concerning any United States person acquired 
from the use of the pen register or trap and trace device, as 
the case may be, shall subsequently be used or disclosed in any 
other manner by Federal officers or employees without the 
consent of such person, except with the approval of the 
Attorney General if the information indicates a threat of death 
or serious bodily harm to any person.


                   ``authorization during time of war


    ``Sec. 404. Notwithstanding any other provision of law, the 
President, through the Attorney General, may authorize the use 
of a pen register or trap and trace device without a court 
order under this title to acquire foreign intelligence 
information for a period not to exceed 15 calendar days 
following a declaration of war by Congress.


                          ``use of information


    ``Sec. 405. (a)(1) Information acquired from the use of a 
pen register or trap and trace device installed pursuant to 
this title concerning any United States person may be used and 
disclosed by Federal officers and employees without the consent 
of the United States person only in accordance with the 
provisions of this section.
    ``(2) No information acquired from a pen register or trap 
and trace device installed and used pursuant to this title may 
be used or disclosed by Federal officers or employees except 
for lawful purposes.
    ``(b) No information acquired pursuant to this title shall 
be disclosed for law enforcement purposes unless such 
disclosure is accompanied by a statement that such information, 
or any information derived therefrom, may only be used in a 
criminal proceeding with the advance authorization of the 
Attorney General.
    ``(c) Whenever the United States intends to enter into 
evidence or otherwise use or disclose in any trial, hearing, or 
other proceeding in or before any court, department, officer, 
agency, regulatory body, or other authority of the United 
States against an aggrieved person any information obtained or 
derived from the use of a pen register or trap and trace device 
pursuant to this title, the United States shall, before the 
trial, hearing, or the other proceeding or at a reasonable time 
before an effort to so disclose or so use that information or 
submit it in evidence, notify the aggrieved person and the 
court or other authority in which the information is to be 
disclosed or used that the United States intends to so disclose 
or so use such information.
    ``(d) Whenever any State or political subdivision thereof 
intends to enter into evidence or otherwise use or disclose in 
any trial, hearing, or other proceeding in or before any court, 
department, officer, agency, regulatory body, or other 
authority of the State or political subdivision thereof against 
an aggrieved person any information obtained or derived from 
the use of a pen register or trap and trace device pursuant to 
this title, the State or political subdivision thereof shall 
notify the aggrieved person, the court or other authority in 
which the information is to be disclosed or used, and the 
Attorney General that the State or political subdivision 
thereof intends to so disclose or so use such information.
    ``(e)(1) Any aggrieved person against whom evidence 
obtained or derived from the use of a pen register or trap and 
trace device is to be, or has been, introduced or otherwise 
used or disclosed in any trial, hearing, or other proceeding in 
or before any court, department, officer, agency, regulatory 
body, or other authority of the United States, or a State or 
political subdivision thereof, may move to suppress the 
evidence obtained or derived from the use of the pen register 
or trap and trace device, as the case may be, on the grounds 
that--
            ``(A) the information was unlawfully acquired; or
            ``(B) the use of the pen register or trap and trace 
        device, as the case may be, was not made in conformity 
        with an order of authorization or approval under this 
        title.
    ``(2) A motion under paragraph (1) shall be made before the 
trial, hearing, or other proceeding unless there was no 
opportunity to make such a motion or the aggrieved person 
concerned was not aware of the grounds of the motion.
    ``(f)(1) Whenever a court or other authority is notified 
pursuant to subsection (c) or (d), whenever a motion is made 
pursuant to subsection (e), or whenever any motion or request 
is made by an aggrieved person pursuant to any other statute or 
rule of the United States or any State before any court or 
other authority of the United States or any State to discover 
or obtain applications or orders or other materials relating to 
the use of a pen register or trap and trace device authorized 
by this title or to discover, obtain, or suppress evidence or 
informationobtained or derived from the use of a pen register 
or trap and trace device authorized by this title, the United States 
district court or, where the motion is made before another authority, 
the United States district court in the same district as the authority 
shall, notwithstanding any other provision of law and if the Attorney 
General files an affidavit under oath that disclosure or any adversary 
hearing would harm the national security of the United States, review 
in camera and ex parte the application, order, and such other materials 
relating to the use of the pen register or trap and trace device, as 
the case may be, as may be necessary to determine whether the use of 
the pen register or trap and trace device, as the case may be, was 
lawfully authorized and conducted.
    ``(2) In making a determination under paragraph (1), the 
court may disclose to the aggrieved person, under appropriate 
security procedures and protective orders, portions of the 
application, order, or other materials relating to the use of 
the pen register or trap and trace device, as the case may be, 
or may require the Attorney General to provide to the aggrieved 
person a summary of such materials, only where such disclosure 
is necessary to make an accurate determination of the legality 
of the use of the pen register or trap and trace device, as the 
case may be.
    ``(g)(1) If the United States district court determines 
pursuant to subsection (f) that the use of a pen register or 
trap and trace device was not lawfully authorized or conducted, 
the court may, in accordance with the requirements of law, 
suppress the evidence which was unlawfully obtained or derived 
from the use of the pen register or trap and trace device, as 
the case may be, or otherwise grant the motion of the aggrieved 
person.
    ``(2) If the court determines that the use of the pen 
register or trap and trace device, as the case may be, was 
lawfully authorized or conducted, it may deny the motion of the 
aggrieved person except to the extent that due process requires 
discovery or disclosure.
    ``(h) Orders granting motions or requests under subsection 
(g), decisions under this section that the use of a pen 
register or trap and trace device was not lawfully authorized 
or conducted, and orders of the United States district court 
requiring review or granting disclosure of applications, 
orders, or other materials relating to the installation and use 
of a pen register or trap and trace device shall be final 
orders and binding upon all courts of the United States and the 
several States except a United States Court of Appeals or the 
Supreme Court.


                       ``congressional oversight


    ``Sec. 406. (a) On a semiannual basis, the Attorney General 
shall fully inform the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate concerning all uses of 
pen registers and trap and trace devices pursuant to this 
title.
    ``(b) On a semiannual basis, the Attorney General shall 
also provide to the committees referred to in subsection (a) 
and to the Committees on the Judiciary of the House of 
Representatives and the Senate a report setting forth with 
respect to the preceding six-month period--
            ``(1) the total number of applications made for 
        orders approving the use of pen registers or trap and 
        trace devices under this title; and
            ``(2) the total number of such orders either 
        granted, modified, or denied.''.

SEC. 602. ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN INTELLIGENCE 
                    AND INTERNATIONAL TERRORISM INVESTIGATIONS.

    The Foreign Intelligence Surveillance Act of 1978 (50 
U.S.C. 1801 et seq.), as amended by section 601 of this Act, is 
further amended by inserting after title IV, as added by such 
section 601, the following new title:

``TITLE V--ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN INTELLIGENCE 
                                PURPOSES


                             ``definitions


    ``Sec. 501. As used in this title:
            ``(1) The terms `foreign power', `agent of a 
        foreign power', `foreign intelligence information', 
        `international terrorism', and `Attorney General' shall 
        have the same meanings as in section 101 of this Act.
            ``(2) The term `common carrier' means any person or 
        entity transporting people or property by land, rail, 
        water, or air for compensation.
            ``(3) The term `physical storage facility' means 
        any business or entity that provides space for the 
        storage of goods or materials, or services related to 
        the storage of goods or materials, to the public or any 
        segment thereof.
            ``(4) The term `public accommodation facility' 
        means any inn, hotel, motel, or other establishment 
        that provides lodging to transient guests.
            ``(5) The term `vehicle rental facility' means any 
        person or entity that provides vehicles for rent, 
        lease, loan, or other similar use to the public or any 
        segment thereof.


   ``access to certain business records for foreign intelligence and 
                 international terrorism investigations


    ``Sec. 502. (a) The Director of the Federal Bureau of 
Investigation or a designee of the Director (whose rank shall 
be no lower than Assistant Special Agent in Charge) may make an 
application for an order authorizing a common carrier, public 
accommodation facility, physical storage facility, or vehicle 
rental facility to release records in its possession for an 
investigation to gather foreign intelligence information or an 
investigation concerning international terrorism which 
investigation is being conducted by the Federal Bureau of 
Investigation under such guidelines as the Attorney General 
approves pursuant to Executive Order No. 12333, or a successor 
order.
    ``(b) Each application under this section--
            ``(1) shall be made to--
                    ``(A) a judge of the court established by 
                section 103(a) of this Act; or
                    ``(B) a United States Magistrate Judge 
                under chapter 43 of title 28, United States 
                Code, who is publicly designated by the Chief 
                Justice of the United States to have the power 
                to hear applications and grant orders for the 
                release of records under this section on behalf 
                of a judge of that court; and
            ``(2) shall specify that--
                    ``(A) the records concerned are sought for 
                an investigation described in subsection (a); 
                and
                    ``(B) there are specific and articulable 
                facts giving reason to believe that the person 
                to whom the records pertain is a foreign power 
                or an agent of a foreign power.
    ``(c)(1) Upon application made pursuant to this section, 
the judge shall enter an ex parte order as requested, or as 
modified, approving the release of records if the judge finds 
that the application satisfies the requirements of this 
section.
    ``(2) An order under this subsection shall not disclose 
that it is issued for purposes of an investigation described in 
subsection (a).
    ``(d)(1) Any common carrier, public accommodation facility, 
physical storage facility, or vehicle rental facility shall 
comply with an order under subsection (c).
    ``(2) No common carrier, public accommodation facility, 
physical storage facility, or vehicle rental facility, or 
officer, employee, or agent thereof, shall disclose to any 
person (other than those officers, agents, or employees of such 
common carrier, public accommodation facility, physical storage 
facility, or vehicle rental facility necessary to fulfill the 
requirement to disclose information to the Federal Bureau of 
Investigation under this section) that the Federal Bureau of 
Investigation has sought or obtained records pursuant to an 
order under this section.


                       ``congressional oversight


    ``Sec. 503. (a) On a semiannual basis, the Attorney General 
shall fully inform the Permanent Select Committee on 
Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate concerning all requests 
for records under this title.
    ``(b) On a semiannual basis, the Attorney General shall 
provide to the Committees on the Judiciary of the House of 
Representatives and the Senate a report setting forth with 
respect to the preceding six-month period--
            ``(1) the total number of applications made for 
        orders approving requests for records under this title; 
        and
            ``(2) the total number of such orders either 
        granted, modified, or denied.''.

SEC. 603. CONFORMING AND CLERICAL AMENDMENTS.

    (a) Conforming Amendment.--Section 601 of the Foreign 
Intelligence Surveillance Act of 1978, as redesignated by 
section 601(1) of this Act, is amended by striking out ``other 
than title III'' and inserting in lieu thereof ``other than 
titles III, IV, and V''.
    (b) Clerical Amendment.--The table of contents at the 
beginning of the Foreign Intelligence Surveillance Act of 1978 
is amended by striking out the items relating to title IV and 
section 401 and inserting in lieu thereof the following:

    ``TITLE IV--PEN REGISTERS AND TRAP AND TRACE DEVICES FOR FOREIGN 
                          INTELLIGENCE PURPOSES

``401. Definitions.
``402. Pen registers and trap and trace devices for foreign intelligence 
          and international terrorism investigations.
``403. Authorization during emergencies.
``404. Authorization during time of war.
``405. Use of information.
``406. Congressional oversight.

 ``TITLE V--ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN INTELLIGENCE 
                                PURPOSES

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

                       ``TITLE VI--EFFECTIVE DATE

``601. Effective date.''.

SEC. 604. WIRE AND ELECTRONIC COMMUNICATIONS INTERCEPTION REQUIREMENTS.

    (a) In General.--Section 2518(11)(b) of title 18, United 
States Code, is amended--
            (1) in clause (ii), by striking ``of a purpose'' 
        and all that follows through the end of such clause and 
        inserting ``that there is probable cause to believe 
        that the person's actions could have the effect of 
        thwarting interception from a specified facility;'';
            (2) in clause (iii), by striking ``such purpose'' 
        and all that follows through the end of such clause and 
        inserting ``such showing has been adequately made; 
        and''; and
            (3) by adding at the end the following clause:
                    ``(iv) the order authorizing or approving 
                the interception is limited to interception 
                only for such time as it is reasonable to 
                presume that the person identified in the 
                application is or was reasonably proximate to 
                the instrument through which such communication 
                will be or was transmitted.''.
    (b) Conforming Amendments.--Section 2518(12) of title 18, 
United States Code, is amended--
            (1) by inserting ``(a)'' after ``by reason of 
        subsection (11)'';
            (2) by striking ``the facilities from which, or''; 
        and
            (3) by striking the comma following ``where''.

SEC. 605. AUTHORITY OF ATTORNEY GENERAL TO ACCEPT VOLUNTARY SERVICES.

    Section 524(d)(1) of title 28, United States Code, is 
amended by inserting ``or services'' after ``property''.

    TITLE VII--WHISTLEBLOWER PROTECTION FOR INTELLIGENCE COMMUNITY 
            EMPLOYEES REPORTING URGENT CONCERNS TO CONGRESS

SEC. 701. SHORT TITLE; FINDINGS.

    (a) Short Title.--This title may be cited as the 
``Intelligence Community Whistleblower Protection Act of 
1998''.
    (b) Findings.--The Congress finds that--
            (1) national security is a shared responsibility, 
        requiring joint efforts and mutual respect by Congress 
        and the President;
            (2) the principles of comity between the Branches 
        of Government apply to the handling of national 
        security information;
            (3) Congress, as a co-equal Branch of Government, 
        is empowered by the Constitution to serve as a check on 
        the Executive Branch; in that capacity, it has a ``need 
        to know'' of allegations of wrongdoing within the 
        Executive Branch, including allegations of wrongdoing 
        in the Intelligence Community;
            (4) no basis in law exists for requiring prior 
        authorization of disclosures to the intelligence 
        committees of Congress by employees of the Executive 
        Branch of classified information about wrongdoing 
        within the Intelligence Community;
            (5) the risk of reprisal perceived by employees and 
        contractors of the Intelligence Community for reporting 
        serious or flagrant problems to Congress may have 
        impaired the flow of information needed by the 
        intelligence committees to carry out oversight 
        responsibilities; and
            (6) to encourage such reporting, an additional 
        procedure should be established that provides a means 
        for such employees and contractors to report to 
        Congress while safeguarding the classified information 
        involved in such reporting.

SEC. 702. PROTECTION OF INTELLIGENCE COMMUNITY EMPLOYEES WHO REPORT 
                    URGENT CONCERNS TO CONGRESS.

    (a) Inspector General of the Central Intelligence Agency.--
            (1) In general.--Subsection (d) of section 17 of 
        the Central Intelligence Agency Act of 1949 (50 U.S.C. 
        403q) is amended by adding at the end the following new 
        paragraph:
    ``(5)(A) An employee of the Agency, or of a contractor to 
the Agency, who intends to report to Congress a complaint or 
information with respect to an urgent concern may report such 
complaint or information to the Inspector General.
    ``(B) Not later than the end of the 14-calendar day period 
beginning on the date of receipt from an employee of a 
complaint or information under subparagraph (A), the Inspector 
General shall determine whether the complaint or information 
appears credible. If the Inspector General determines that the 
complaint or information appears credible, the Inspector 
General shall, before the end of such period, transmit the 
complaint or information to the Director.
    ``(C) Upon receipt of a transmittal from the Inspector 
General under subparagraph (B), the Director shall, within 7 
calendar days of such receipt, forward such transmittal to the 
intelligence committees, together with any comments the 
Director considers appropriate.
    ``(D)(i) If the Inspector General does not transmit, or 
does not transmit in an accurate form, the complaint or 
information described in subparagraph (B), the employee 
(subject to clause (ii)) may submit the complaint or 
information to Congress by contacting either or both of the 
intelligence committees directly.
    ``(ii) The employee may contact the intelligence committees 
directly as described in clause (i) only if the employee--
            ``(I) before making such a contact, furnishes to 
        the Director, through the Inspector General, a 
        statement of the employee's complaint or information 
        and notice of the employee's intent to contact the 
        intelligence committees directly; and
            ``(II) obtains and follows from the Director, 
        through the Inspector General, direction on how to 
        contact the intelligence committees in accordance with 
        appropriate security practices.
    ``(iii) A member or employee of one of the intelligence 
committees who receives a complaint or information under clause 
(i) does so in that member or employee's official capacity as a 
member or employee of that committee.
    ``(E) The Inspector General shall notify an employee who 
reports a complaint or information to the Inspector General 
under this paragraph of each action taken under this paragraph 
with respect to the complaint or information. Such notice shall 
be provided not later than 3 days after any such action is 
taken.
    ``(F) An action taken by the Director or the Inspector 
General under this paragraph shall not be subject to judicial 
review.
    ``(G) In this paragraph:
            ``(i) The term `urgent concern' means any of the 
        following:
                    ``(I) A serious or flagrant problem, abuse, 
                violation of law or executive order, or 
                deficiency relating to the funding, 
                administration, or operations of an 
                intelligence activity involving classified 
                information, but does not include differences 
                of opinions concerning public policy matters.
                    ``(II) A false statement to Congress, or a 
                willful withholding from Congress, on an issue 
                of material fact relating to the funding, 
                administration, or operation of an intelligence 
                activity.
                    ``(III) An action, including a personnel 
                action described in section 2302(a)(2)(A) of 
                title 5, United States Code, constituting 
                reprisal or threat of reprisal prohibited under 
                subsection (e)(3)(B) in response to an 
                employee's reporting an urgent concern in 
                accordance with this paragraph.
            ``(ii) The term `intelligence committees' means the 
        Permanent Select Committee on Intelligence ofthe House 
of Representatives and the Select Committee on Intelligence of the 
Senate.''.
            (2) Clerical amendment.--The heading to subsection 
        (d) of such section is amended by inserting ``; Reports 
        to Congress on Urgent Concerns'' before the period.
    (b) Additional Provisions With Respect to Inspectors 
General of the Intelligence Community.--
            (1) In general.--The Inspector General Act of 1978 
        (5 U.S.C. App.) is amended by redesignating section 8H 
        as section 8I and by inserting after section 8G the 
        following new section:
    ``Sec. 8H. (a)(1)(A) An employee of the Defense 
Intelligence Agency, the National Imagery and Mapping Agency, 
the National Reconnaissance Office, or the National Security 
Agency, or of a contractor of any of those Agencies, who 
intends to report to Congress a complaint or information with 
respect to an urgent concern may report the complaint or 
information to the Inspector General of the Department of 
Defense (or designee).
    ``(B) An employee of the Federal Bureau of Investigation, 
or of a contractor of the Bureau, who intends to report to 
Congress a complaint or information with respect to an urgent 
concern may report the complaint or information to the 
Inspector General of the Department of Justice (or designee).
    ``(C) Any other employee of, or contractor to, an executive 
agency, or element or unit thereof, determined by the President 
under section 2302(a)(2)(C)(ii) of title 5, United States Code, 
to have as its principal function the conduct of foreign 
intelligence or counterintelligence activities, who intends to 
report to Congress a complaint or information with respect to 
an urgent concern may report the complaint or information to 
the appropriate Inspector General (or designee) under this Act 
or section 17 of the Central Intelligence Agency Act of 1949.
    ``(2) If a designee of an Inspector General under this 
section receives a complaint or information of an employee with 
respect to an urgent concern, that designee shall report the 
complaint or information to the Inspector General within 7 
calendar days of receipt.
    ``(b) Not later than the end of the 14-calendar day period 
beginning on the date of receipt of an employee complaint or 
information under subsection (a), the Inspector General shall 
determine whether the complaint or information appears 
credible. If the Inspector General determines that the 
complaint or information appears credible, the Inspector 
General shall, before the end of such period,transmit the 
complaint or information to the head of the establishment.
    ``(c) Upon receipt of a transmittal from the Inspector 
General under subsection (b), the head of the establishment 
shall, within 7 calendar days of such receipt, forward such 
transmittal to the intelligence committees, together with any 
comments the head of the establishment considers appropriate.
    ``(d)(1) If the Inspector General does not transmit, or 
does not transmit in an accurate form, the complaint or 
information described in subsection (b), the employee (subject 
to paragraph (2)) may submit the complaint or information to 
Congress by contacting either or both of the intelligence 
committees directly.
    ``(2) The employee may contact the intelligence committees 
directly as described in paragraph (1) only if the employee--
            ``(A) before making such a contact, furnishes to 
        the head of the establishment, through the Inspector 
        General, a statement of the employee's complaint or 
        information and notice of the employee's intent to 
        contact the intelligence committees directly; and
            ``(B) obtains and follows from the head of the 
        establishment, through the Inspector General, direction 
        on how to contact the intelligence committees in 
        accordance with appropriate security practices.
    ``(3) A member or employee of one of the intelligence 
committees who receives a complaint or information under 
paragraph (1) does so in that member or employee's official 
capacity as a member or employee of that committee.
    ``(e) The Inspector General shall notify an employee who 
reports a complaint or information under this section of each 
action taken under this section with respect to the complaint 
or information. Such notice shall be provided not later than 3 
days after any such action is taken.
    ``(f) An action taken by the head of an establishment or an 
Inspector General under this section shall not be subject to 
judicial review.
    ``(g) In this section:
            ``(1) The term `urgent concern' means any of the 
        following:
                    ``(A) A serious or flagrant problem, abuse, 
                violation of law or Executive order, or 
                deficiency relating to the funding, 
                administration, or operations of an 
                intelligence activity involving classified 
                information, but does not include differences 
                of opinions concerning public policy matters.
                    ``(B) A false statement to Congress, or a 
                willful withholding from Congress, on an issue 
                of material fact relating to the funding, 
                administration, or operation of an intelligence 
                activity.
                    ``(C) An action, including a personnel 
                action described in section 2302(a)(2)(A) of 
                title 5, United States Code, constituting 
                reprisal or threat of reprisal prohibited under 
                section 7(c) in response to an employee's 
                reporting an urgent concern in accordance with 
                this section.
            ``(2) The term `intelligence committees' means the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives and the Select Committee on 
        Intelligence of the Senate.''.
            (2) Conforming Amendment.--Section 8I of such Act 
        (as redesignated by paragraph (1)) is amended by 
        striking out ``or 8E'' and inserting in lieu thereof 
        ``8E, or 8H''.

    And the Senate agree to the same.

                From the Permanent Select Committee on 
                Intelligence, for consideration of the House 
                bill and the Senate amendment, and 
                modifications committed to conference:
                                   Porter Goss,
                                   Bill Young,
                                   Jerry Lewis,
                                   Bud Shuster,
                                   Bill McCollum,
                                   Michael N. Castle,
                                   Sherwood Boehlert,
                                   Charles F. Bass,
                                   Jim Gibbons,
                                   Norman D. Dicks,
                                   Julian C. Dixon,
                                   David E. Skaggs,
                                   Nancy Pelosi,
                                   Jane Harman,
                                   Ike Skelton,
                                   Sanford D. Bishop, Jr.,
                From the Committee on National Security, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Floyd Spence,
                                   Bob Stump,
                                   Loretta Sanchez,
                                 Managers on the Part of the House.

                                   Richard Shelby,
                                   John H. Chafee,
                                   Dick Lugar,
                                   Mike DeWine,
                                   Jon Kyl,
                                   Jim Inhofe,
                                   Orrin G. Hatch,
                                   Pat Roberts,
                                   Wayne Allard,
                                   Dan Coats,
                                   Bob Kerrey,
                                   John Glenn,
                                   Richard H. Bryan,
                                   Bob Graham,
                                   John F. Kerry,
                                   Max Baucus,
                                   Chuck Robb,
                                   Frank R. Lautenberg,
                                   Carl Levin,
                From the Committee on Armed Services:
                                   Strom Thurmond,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 3694) to 
authorize appropriations for fiscal year 1999 for intelligence 
and the intelligence-related activities of the United States 
government, the Community Management Account, and the Central 
Intelligence Agency Retirement and Disability System, and for 
other purposes, submit the following joint statement to the 
House and the Senate in explanation of the effect of the action 
agreed upon by the managers and recommended in the accompanying 
conference report:
      The Senate amendment struck all of the House bill after 
the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clerical 
changes.
      The managers agree that the congressionally directed 
actions described in the House bill, the Senate amendment, the 
respective committee reports, or classified annexes should be 
undertaken to the extent that such congressionally directed 
actions are not amended, altered, or otherwise specifically 
addressed in either this Joint Explanatory Statement or in the 
classified annex to the conference report on the bill H.R. 
3694.

                    Title I--Intelligence Activities

               SEC. 101. AUTHORIZATION FOR APPROPRIATIONS

      Section 101 of the conference report lists the 
departments, agencies, and other elements of the United States 
government for whose intelligence and intelligence-related 
activities the Act authorizes appropriations for fiscal year 
1999. Section 101 is identical to section 101 of the House bill 
and section 101 of the Senate amendment.

            SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS

      Section 102 of the conference report makes clear that the 
details of the amounts authorized to be appropriated for 
intelligence and intelligence-related activities and applicable 
personnel ceilings covered under this title for fiscal year 
1999 are contained in a classified Schedule of Authorizations. 
The classified Schedule of Authorizations is incorporated into 
the Act by this section. The classified annex provides the 
details of the Schedule, including a cost cap to the five year 
and ten year costs of the Future Imagery Architecture. Section 
102 is identical to section 102 of the House bill and section 
102 of the Senate amendment.

                SEC. 103. PERSONNEL CEILING ADJUSTMENTS

      Section 103 of the conference report authorizes the 
Director of Central Intelligence, with the approval of the 
Director of the Office of Management and Budget, in fiscal year 
1999 to authorize employment of civilian personnel in excess of 
the personnel ceilings applicable to the components of the 
Intelligence Community under section 102 by an amount not to 
exceed two percent of the total of the ceilings applicable 
under section 102. The Director of Central Intelligence may 
exercise this authority only if necessary to the performance of 
important intelligence functions. Any exercise of this 
authority must be reported to the intelligence committees of 
the Congress.
      The managers emphasize that the authority conferred by 
section 103 is not intended to permit the wholesale raising of 
personnel strength in any intelligence component. Rather, the 
section provides the Director of Central Intelligence with 
flexibility to adjust personnel levels temporarily for 
contingencies and for overages caused by an imbalance between 
hiring of new employees and attrition of current employees. The 
managers do not expect the Director of Central Intelligence to 
allow heads of intelligence components to plan to exceed levels 
set in the Schedule of Authorizations except for the 
satisfaction of clearly identified hiring needs which are 
consistent with the authorization of personnel strengths in 
this bill. In no case is this authority to be used to provide 
for positions denied by this bill. Section 103 is identical to 
section 103 of the House bill and section 103 of the Senate 
amendment.

                 SEC. 104. COMMUNITY MANAGEMENT ACCOUNT

      Section 104 of the conference report authorizes 
appropriations for the Community Management Account (CMA) of 
the Director of Central Intelligence (DCI) and sets the 
personnel end-strength for the Intelligence Community 
management staff for fiscal year 1999.
      Subsection (a) authorizes appropriations of $129,123,000 
for fiscal year 1999 for the activities of the CMA of the DCI. 
This amount includes funds identified for the Advanced Research 
and Development Committee and the Advanced Technology Group, 
which shall remain available until September 30, 2000. 
Beginning in fiscal year 1999, the Environmental Intelligence 
and Applications Program will be funded through the DCI's 
Environmental Center, rather than through this account.
      Subsection (b) authorizes 283 full-time personnel for the 
Community Management Staff for fiscal year 1999 and provides 
that such personnel may be permanent employees of the Staff or 
detailed from various elements of the United States government.
      Subsection (c) authorizes additional appropriations and 
personnel for the CMA as specified in the classified Schedule 
of Authorizations and permits these additional amounts to 
remain available through September 30, 2000.
      Subsection (d) requires, except as provided in Section 
113 of the National Security Act of 1947, or for temporary 
situations of less than one year, that personnel from another 
element of the United States government be detailed to an 
element of the CMA on a reimbursable basis.
      Subsection (e) authorizes $27,000,000 of the amount 
authorized in subsection (a) to be made available for the 
National Drug Intelligence Center (NDIC). Subsection (e) is 
identical to subsection (e) of the House bill and subsection 
(e) of the Senate amendment. The Senate, in its report on this 
provision, would have fenced the entire $27,000,000 until the 
Office of National Drug Control Policy (ONDCP) issued its 
overdue report on the National Counter-Narcotics Architecture 
Review, which was directed by Congress to be completed by April 
1, 1998. The House had no such fence. While the managers 
continue to require the prompt production of this report, they 
do not wish to impede any part of the government's counter-
narcotics efforts. Consequently, the Senate recedes.
      The failure of the Director of the ONDCP to comply with a 
congressional requirement for this report is of concern.
      The managers strongly believe that the NDIC should be the 
facility that brings together all law enforcement and 
intelligence information for integrated, all-source, cross-case 
analysis. The continued isolation of domestic and foreign 
aspects of the drug trafficking organizations for separate 
analysis by different intelligence centers ignores the 
transnational character of the drug trafficking threat to 
national security. The Architecture Review should analyze the 
ability and capacity of NDIC to serve as the focal point for 
integrated analysis of foreign and domestic law enforcement 
information combined with foreign intelligence information.
      Subsection (f) authorizes the DCI to transfer funds to be 
appropriated to the CMA for fiscal year 1999 to the Department 
of State for specific purposes to be identified by the 
Director. The House bill contained a similar provision. The 
Senate amendment contained no such provision. The Senate agrees 
with the House position.
      The managers identified a shortfall in certain 
Intelligence Community security arrangements at certain 
overseas locations. The State Department has been aware of 
these shortcomings for some time, but claims it lacks resources 
to fund improvements. Thus, in order to alleviate the 
Intelligence Community security concerns at those locations, 
the transfer authority is provided.
      This section allows the DCI to transfer funds from the 
CMA only for the specific purposes, and in the specific 
amounts, listed in the Classified Annex to this Joint 
Explanatory Statement. Clearly, however, the managers do not 
intend this section to create any new budget authority. Rather, 
it is intended that the funds to be transferred will derive 
from those funds to be appropriated to the CMA for fiscal year 
1999.
      The managers only agreed to this grant of authority with 
the firm expectation that this will be a one-time action only. 
This authority will expire at the end of fiscal year 1999. This 
transfer authority is only being authorized to insure that the 
State Department will immediately, in fiscal year 1999, begin 
architectural and engineering security support at various 
overseas locations. Without this immediate transfer authority, 
the Intelligence Community would be required to rely on 
practices that are flawed, as well as being extremely costly.
      The managers acknowledge that the Intelligence Community 
has worked hard over the past two years with the State 
Department, the Defense Department, and the Office of 
Management and Budget to provide a permanent solution to the 
situation at issue. The Intelligence Community, in response to 
the seriousness of the hostile intelligence threat directed at 
United States interests, agreed to a one-time special cost-
sharing arrangement in fiscal year 1999 to alleviate any 
continued concern.

 sec. 105. authorization of emergency supplemental appropriations for 
            intelligence and intelligence-related activities

      Section 105 specifically authorizes, for purposes of 
section 504 of the National Security Act of 1947, those 
intelligence and intelligence-related activities that were 
deemed to have been authorized, pursuant to that section, 
through the 1998 Supplemental Appropriations and Rescisions Act 
(P.L. 105-174) and any supplemental appropriations that are 
expected to contain emergency appropriations for fiscal year 
1998. Neither the House bill, nor the Senate amendment, 
contained these provisions. The managers agreed to include this 
provision based on the requirements of section 504 of the 
National Security Act of 1947.

 Title II--Central Intelligence Agency Retirement and Disability System

               sec. 201. authorization of appropriations

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

                     Title III--General Provisions

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

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

      sec. 302. restriction on conduct of intelligence activities

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

   sec. 303. one-year extension of application of sanctions laws to 
                        intelligence activities

      Section 303 of the conference report extends until 
January 6, 2000 the authority granted by section 303 of the 
Intelligence Authorization Act for Fiscal Year 1996 for the 
President to stay the imposition of an economic, cultural, 
diplomatic, or other sanction or related action when the 
President determines and reports to Congress that to proceed 
without delay would seriously risk the compromise of an 
intelligence source or method, or an ongoing criminal 
investigation. Section 303 is identical to section 303 of the 
House bill and section 303 of the Senate amendment.

   sec. 304. sense of congress on intelligence community contracting

      Section 304 expresses the sense of the Congress that the 
Director of Central Intelligence should continue to direct 
elements of the Intelligence Community to award contracts in a 
manner that would maximize the procurement of products produced 
in the United States, when such action is compatible with the 
national security interests of the United States, consistent 
with operational and security concerns, and fiscally sound. A 
provision similar to section 304 has been included in previous 
intelligence authorization acts. The Senate bill had no similar 
provision. The Senate agrees with the House position.

     sec. 305. modification of national security education program

      A provision similar to section 305 was included in the 
Senate amendment. The House bill contained no such provision. 
The House agrees to the Senate provision.

  sec. 306. requirement to direct competitive analysis of analytical 
                  products having national importance

       Section 306 amends section 102(g)(2) of the National 
Security Act of 1947 (50 U.S.C. Sec. 403(g)(2)) to add an 
additional duty for the Assistant Director of Central 
Intelligence for Analysis and Production (ADCI/AP), namely to 
direct competitive analysis of analytical products having 
national importance. The Senate amendment contained a provision 
identical tosection 306. The House bill had no similar 
provision. The House recedes to the Senate provision.
       Since the end of the Cold War and in response to budget 
pressures, the Intelligence Community has experienced a 
significant decrease in personnel. While this has had the 
positive effect of increasing efficiency in some areas, in 
other areas shortfalls are beginning to appear. Such a 
shortfall is in the use of competitive analysis.
       During the Cold War competitive analysis played a 
crucial role in assuring that intelligence analysts did not 
become accustomed to accepting the same assumptions. Instead, 
analysts from different agencies and outside experts would 
routinely challenge each other's analysis. This decreased the 
opportunity for some elements within the community to become 
victims of their own prejudices and biases. Analysts were 
forced to defend their assumptions, logic, and analytical 
judgments against competing analysis from other agencies. 
Personnel reductions, however, made this routine competitive 
analysis a luxury that no longer was affordable in the 
downsizing of the early to mid-1990's.
      Independent reports by retired Admiral David Jeremiah and 
the former Secretary of Defense Donald Rumsfeld led to the 
conclusion that the absence of competitive analysis contributed 
to an incomplete explanation of the activities of several 
foreign powers. This resulted in conclusions not helpful in the 
policy-making process. In an era of declining resources, it is 
more important than ever that issues of great significance be 
subjected to independent analysis both from within and without 
the Intelligence Community.
       The managers believe it is important for the Director of 
Central Intelligence to institutionalize formally the practice 
of competitive analysis and direct that the responsibility be 
assigned to the ADCI/AP.
      The managers further direct the ADCI/AP to report to the 
intelligence committees by March 15, 1999, his plan for 
fulfilling the responsibility now assigned to him under section 
403 of the National Security Act of 1947 as part of this 
legislation.

                  SEC. 307. ANNUAL REPORTS TO CONGRESS

      Section 307 requires the Director of Central Intelligence 
to report to the Congress of the United States on an annual 
basis on two significant issues faced by this country. The 
first report should address the nature and extent of 
cooperation between the Intelligence Community and federal law 
enforcement agencies in combating drug trafficking.
      The second report should address the safety and security 
of Russian nuclear facilities and nuclear military forces.
      The House bill contained a provision similar to section 
307(a). The Senate amendment had no such provision. The Senate 
agrees to the House position, with respect to the drug 
trafficking report. The Senate amendment contained a provision 
similar to section 307(b), which the House bill did not 
contain. The House agrees to the Senate position regarding the 
report onRussian nuclear facilities and nuclear military 
forces.

               SEC. 308. QUADRENNIAL INTELLIGENCE REVIEW

       Section 308 is similar to a ``Sense of Congress'' 
provision contained within the Senate amendment. The House bill 
contained no such provision. The House recedes to the Senate 
provision, as modified.

SEC. 309. DESIGNATION OF HEADQUARTERS COMPOUND OF CENTRAL INTELLIGENCE 
           AGENCY AS THE GEORGE BUSH CENTER FOR INTELLIGENCE

       The Senate amendment contained a provision to designate 
the headquarters building of the Central Intelligence Agency 
(CIA) in Langley, Virginia, as the ``George Herbert Walker Bush 
Center for Central Intelligence.'' The House bill contained no 
similar provision. The House did, however, pass by voice vote 
on August 3, 1998, a bill (H.R. 3821) to designate the CIA 
headquarters compound as the ``George H.W. Bush Center for 
Central Intelligence.'' The managers agreed to the Senate 
provision with modifications.
      Section 309 will designate the CIA headquarters compound 
at Langley, Virginia as the ``George Bush Center for 
Intelligence.''
       Former President George Bush has dedicated much of his 
life to public service. During World War II, he flew for the 
Navy in the Pacific Theater. In 1967, George Bush was elected 
to the House of Representatives. He later served as Ambassador 
to the United Nations. Following that assignment, George Bush 
was appointed Chief of the U.S. Liaison Office to the People's 
Republic of China.
       In January 1976, George Bush was appointed Director of 
Central Intelligence (DCI) by then-President Gerald Ford. He 
held this position through the end of the Ford Administration. 
Although his tenure as DCI was relatively short, it came at a 
time when the U.S. Intelligence Community was undergoing 
increasing public scrutiny and some criticism.
      As DCI, George Bush brought innovation to the CIA, and 
dramatically improved the morale within the Agency. George Bush 
demonstrated leadership and integrity at a time when both were 
desperately needed to help restore confidence in the CIA and 
the other intelligence elements that make up the Intelligence 
Community.
      Currently, the headquarters compound does not have a 
formal designation. The managers agreed that this designation 
would be a fitting tribute to the only DCI to become President 
of the United States. It is appropriate to memorialize George 
Bush's integrity, work ethic, and dedication to public service 
in this manner.

                 Title IV--Central Intelligence Agency

 SEC. 401. ENHANCED PROTECTIVE AUTHORITY FOR CIA PERSONNEL AND FAMILY 
                                MEMBERS

       Section 401 is identical to a provision contained in the 
House bill. The Senate amendment did not include such a 
provision. The Senate agrees to the House position.

 SEC. 402. AUTHORITY FOR RETROACTIVE PAYMENT OF SPECIFIED SPECIAL PAY 
                               ALLOWANCE

       Neither the House bill, nor the Senate amendment 
contained a provision similar to section 402. The managers 
agree, however, to include this provision to enable the 
Director of Central Intelligence to provide retroactively a 
special pay allowance to certain Intelligence Community 
officers, who, because of a bureaucratic error, did not receive 
a special pay allowance at the time they were otherwise 
eligible to receive it. It was through no fault of their own 
that this special pay allowance was not administered at the 
time it was due and owing, but rather simply caused by a 
bureaucratic miscue.

                     SEC. 403. TECHNICAL AMENDMENTS

      Both the House bill and the Senate amendment contained a 
similar provision. The Senate recedes to the House position, 
with technical modifications.

         Title V--Department of Defense Intelligence Activities

SEC. 501. EXTENSION OF AUTHORITY TO ENGAGE IN COMMERCIAL ACTIVITIES AS 
            SECURITY FOR INTELLIGENCE COLLECTION ACTIVITIES

      Both the House bill and the Senate amendment contained 
similar provisions. The House recedes to the Senate provision.

      Title VI--Foreign Intelligence and International Terrorism 
                             Investigations

     SEC. 601. PEN REGISTERS AND TRAP AND TRACE DEVICES IN FOREIGN 
        INTELLIGENCE AND INTERNATIONAL TERRORISM INVESTIGATIONS

      The Senate amendment contained a similar provision. The 
House bill did not. The House recedes to the Senate position.

 SEC. 602. ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN INTELLIGENCE 
               AND INTERNATIONAL TERRORISM INVESTIGATIONS

      The Senate amendment contained a similar provision. The 
House bill did not. The House recedes to the Senate position.

              SEC. 603. CONFORMING AND CLERICAL AMENDMENTS

       The Senate amendment contained a similar provision. The 
House bill did not. The House recedes to the Senate position.

 SEC. 604. WIRE AND ELECTRONIC COMMUNICATIONS INTERCEPTION REQUIREMENTS

       This provision amends section 2518 of title 18, United 
States Code, to allow federal judges to issue an order on the 
conversations of a specific person, rather than on the 
conversations that occur on a specific telephone. This 
provision is identical to H.R. 3753, with a technical 
correction, which was introduced in the House by Mr. McCollum, 
Mr. Hyde, Mr. Conyers, and Mr. Schumer.
      Under current law, judges issue wiretap orders 
authorizing law enforcement officials to place a wiretap on a 
specific telephone number. Criminals, including terrorists and 
spies, know this and often try to avoid wiretaps by using pay 
telephones on the street at random, or by using stolen or 
cloned cell telephones. As law enforcement officials cannot 
know the numbers of these telephones in advance, they are 
unable to obtain a wiretap order on these numbers from a judge 
in time to intercept the conversation, and the criminal is able 
to evade interception of his communication.
      This provision addresses this problem by authorizing 
judges to issue an order authorizing the interception of all 
communications made by a particular person, regardless of what 
telephone he may use. The provision does not change the 
existing law that requires law enforcement officials to show 
that there is probable cause to believe that the suspect has 
committed, or may commit, a crime. With this amendment, law 
enforcement officials will be required to show that there is 
probable cause to believe that the actions of the suspect could 
have the effect of thwarting a wiretap on a specific telephone 
were the court to order the more typical method of wiretap, 
which targets a specific telephone number.
      With this provision, law enforcement officials will be 
able to follow a criminal suspect and ask the telephone company 
to activate a wiretap on those telephones that the suspect is 
shown to be using, or to have used. To do this, law enforcement 
and telephone company officials would have to make prior 
arrangements so that the location of the particular telephone 
used by the suspect could be relayed to the telephone company 
where employees would stand ready to ascertain the telephone 
number being used (by cross-reference from the telephone 
company's own records) and activate a wiretap on it. In the 
case of cell telephones, law enforcement officials would use 
existing scanner technology to intercept the telephone number 
of the phone a suspect is about to use (before or during a 
call) and then relay that number to telephone company 
employees, who would then immediately activate a wiretap on 
that number.
      In order to ensure that only the conversation of the 
suspect (and with whomever he speaks) is intercepted, the bill 
does not allow law enforcement officials to activate on-going 
wiretaps on all telephones they believe the suspect might use. 
Significantly, law enforcement officials may only activate a 
wiretap on a particular telephone and then only when it is 
reasonable to presume that the suspect is ``reasonably 
proximate'' to that phone. Thus, law enforcement officials will 
have to use undercover agents or informants who can actually 
see the suspect move toward a particular telephone, or enter a 
room where there is only one or a limited number of telephones, 
before they can activate a wiretap.
      Neither the House bill, nor the Senate amendment 
contained this provision. The managers agreed, however, to 
include this language as part of the conference report.

  SEC. 605. AUTHORITY OF ATTORNEY GENERAL TO ACCEPT VOLUNTARY SERVICES

      Section 605 will allow the Attorney General to accept 
voluntary services in furtherance of her law enforcement and 
national security missions. This provision will assist the 
Attorney General to find technological solutions to the ever-
increasing threat of encryption to those missions. The managers 
agreed to include this language to support the Department of 
Justice's and Federal Bureau of Investigation's future efforts 
to address the technological advances that law enforcement will 
face in future criminal and counter-intelligence investigations 
and prosecutions. Neither the House bill, nor the Senate 
amendment contained this or any other similar provision.

    Title VII--Whistleblower Protection for Intelligence Community 
            Employees Reporting Urgent Concerns to Congress

      The Senate amendment, S. 2052, contained a provision at 
title V that would have directed the President to inform all 
employees of the executive branch, and employees of contractors 
carrying out duties under classified contracts, that the 
disclosure of classified information reasonably believed by the 
person to be evidence of a violation of law, regulation, or 
rule; false statement to Congress; gross mismanagement, waste 
of funds, abuse of authority; or a substantial and specific 
danger to public safety, is not prohibited by law, executive 
order, regulation, or otherwise contrary to public policy. The 
Senate provision would have allowed disclosure of such 
information to any Member or staff member of a committee of 
Congress having primary oversight responsibility for the 
department, agency, or element of the Federal Government to 
which such information relates. The House bill contained no 
similar title or provision. The House Permanent Select 
Committee on Intelligence, however, did report the 
``Intelligence Community Whistleblower Protection Act of 1998'' 
to the House on July 23, 1998. (H.R. Rep. No. 105-747, part 1.)
      The managers agree to adopt a modified version of H.R. 
3829. This title establishes an additional process to 
accommodate the disclosure of classified information of 
interest to Congress. The managers further agree that H.R. 3829 
is not the exclusive process by which an Intelligence Community 
employee may make a report to Congress. The managers agree that 
the modified language furthers the goal of, and builds on, the 
Senate language contained in S. 1668 and S. 2052, which was 
adopted by the Senate on three occasions. The managers would 
also highlight the fact that Senate action on this issue was 
central to the development of this provision. The managers 
incorporate by reference the Senate reports on S. 1668 and S. 
2052 (S. Rep. Nos. 105-165 and 105-185, respectively) to 
provide additional legislative history and the need for 
congressional action on this issue. The two Senate reports on 
this issue examine the significant constitutional implications 
of this legislation. See S. Rep. Nos. 105-165 and 105-185. In 
addition, the managers incorporate by reference the House 
report on H.R. 3829 (H.R. Rep. No. 105-747, part 1) and adopt 
that report as the legislative history for title VII of the 
conference report.\1\
---------------------------------------------------------------------------
    \1\ Though incorporating House Report Number 105-747, part 1, by 
reference, the managers make the following two corrections. First, in 
the second paragraph under the heading, ``H.R. 3829 as Amended,'' at 
page 14 of the House Report, the managers would modify the sentence 
that provides: ``Administration witnesses described such a provision as 
a constitutional and administrative imperative.''; to read as follows: 
``Administration witnesses strongly supported such a provision based 
upon constitutional and policy considerations.'' Further, in the first 
sentence of the first paragraph under the heading, ``The Need for 
Comity,'' on page 16 of the House Report, the managers would modify the 
term ``constitutional prerogative'' to ``presidential prerogative.''
---------------------------------------------------------------------------
      As an additional matter, and separate from the terms and 
process established by H.R. 3829, the managers agree that an 
Intelligence Community employee should not be subject to 
reprisals or threat of reprisals for making a report to 
appropriate Members or staff of the intelligence committees 
about wrongdoing within the Intelligence Community.
      One important modification to H.R. 3829 that exists in 
the provision adopted by the managers pertains to the 
responsibilities of intelligence committee Members and staff 
receiving complaints or information through the process 
outlined in this title. The provision makes it plain that an 
intelligence committee Member or staff employee receiving such 
complaints or information must abide by the rules of the 
intelligence committees.

            Provisions Not Included in the Conference Report

 AUTHORITY FOR CENTRAL INTELLIGENCE AGENCY INSPECTOR GENERAL TO REVIEW 
                              LEGISLATION

      The Senate amendment contained a provision that would 
have authorized the Inspector General (IG) of the Central 
Intelligence Agency (CIA) to review existing and proposed 
legislation affecting CIA and to make recommendations to 
Congress in its semi-annual reports or otherwise. The House 
bill contained no such provision. The managers, upon further 
consideration of the issue, believed that this responsibility 
is already set forth in similar form in the reporting 
requirements of the CIA's IG in paragraph (1)(F) of section 
17(d) of the CIA Act of 1949 (50 U.S.C. Sec. 403q(D)).
      The managers have agreed to defer on this legislative 
proposal to allow the newly installed CIA IG to determine 
whether the current statutory authorities are sufficient to 
permit his independent review of proposed and current 
legislation.
      Thus, the Senate recedes to the House position.

           EXTENTION OF THE CIA VOLUNTARY SEPARATION PAY ACT

      The Senate amendment contained a provision extending, 
until September 30, 2001, the authority of the Director of 
Central Intelligence (DCI) to offer early out incentives to its 
employees. The House bill contained no such provision. The 
Senate recedes to the House position.
      The fact that the current authority does not expire until 
the end of fiscal year 1999 combined with the considerable 
concerns by another committee of the House with shared 
jurisdiction over civil service pay and pension issues, led the 
managers to omit this provision from the conference report. It 
is anticipated that the issue of extending this authority of 
the DCI could be addressed in separate legislation in the 106th 
Congress.
                From the Permanent Select Committee on 
                Intelligence, for consideration of the House 
                bill and the Senate amendment, and 
                modifications committed to conference:
                                   Porter Goss,
                                   Bill Young,
                                   Jerry Lewis,
                                   Bud Shuster,
                                   Bill McCollum,
                                   Michael N. Castle,
                                   Sherwood Boehlert,
                                   Charles F. Bass,
                                   Jim Gibbons,
                                   Norman D. Dicks,
                                   Julian C. Dixon,
                                   David E. Skaggs,
                                   Nancy Pelosi,
                                   Jane Harman,
                                   Ike Skelton,
                                   Sanford D. Bishop, Jr.,
                From the Committee on National Security, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference;
                                   Floyd Spence,
                                   Bob Stump,
                                   Loretta Sanchez,
                                 Managers on the Part of the House.

                                   Richard Shelby,
                                   John H. Chafee,
                                   Dick Lugar,
                                   Mike DeWine,
                                   Jon Kyl,
                                   Jim Inhofe,
                                   Orrin G. Hatch,
                                   Pat Roberts,
                                   Wayne Allard,
                                   Dan Coats,
                                   Bob Kerrey,
                                   John Glenn,
                                   Richard H. Bryan,
                                   Bob Graham,
                                   John F. Kerry,
                                   Max Baucus,
                                   Chuck Robb,
                                   Frank R. Lautenberg,
                                   Carl Levin,
                From the Committee on Armed Services:
                                   Strom Thurmond,
                                Managers on the Part of the Senate.

                                
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