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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-427
_______________________________________________________________________


 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1996

                                _______


               December 20, 1995.--Ordered to be printed

_______________________________________________________________________


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

                           CONFERENCE REPORT

                        [To accompany H.R. 1655]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
1655), to authorize appropriations for fiscal year 1996 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 1996''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

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

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                      TITLE III--GENERAL PROVISIONS

Sec. 301. Increase in employee compensation and benefits authorized by 
          law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Application of sanctions laws to intelligence activities.
Sec. 304. Thrift savings plan forfeiture.
Sec. 305. Authority to restore spousal pension benefits to spouses who 
          cooperate in criminal investigations and prosecutions for 
          national security offenses.
Sec. 306. Secrecy agreements used in intelligence activities.
Sec. 307. Limitation on availability of funds for automatic 
          declassification of records over 25 years old.
Sec. 308. Amendment to the Hatch Act Reform Amendments of 1993.
Sec. 309. Report on personnel policies.
Sec. 310. Assistance to foreign countries.
Sec. 311. Financial management of the National Reconnaissance Office.

                  TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Extension of the CIA Voluntary Separation Pay Act.
Sec. 402. Volunteer service program.
Sec. 403. Authorities of the Inspector General of the Central 
          Intelligence Agency.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

Sec. 501. Defense intelligence senior level positions.
Sec. 502. Comparable benefits and allowances for civilian and military 
          personnel assigned to defense intelligence functions overseas.
Sec. 503. Extension of authority to conduct intelligence commercial 
          activities.
Sec. 504. Availability of funds for Tier II UAV.
Sec. 505. Military Department Civilian Intelligence Personnel Management 
          System.
Sec. 506. Enhancement of capabilities of certain army facilities.

                TITLE VI--FEDERAL BUREAU OF INVESTIGATION

Sec. 601. Disclosure of information and consumer reports to FBI for 
          counterintelligence purposes.

                     TITLE VII--TECHNICAL AMENDMENTS

Sec. 701. Clarification with respect to pay for Director or Deputy 
          Director of Central Intelligence appointed from commissioned 
          officers of the Armed Forces.
Sec. 702. Change of designation of CIA Office of Security.

                    TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1996 for the conduct of the intelligence and intelligence-
related activities of the following elements of the United 
States Government:
            (1) The Central Intelligence Agency.
            (2) The Department of Defense.
            (3) The Defense Intelligence Agency.
            (4) The National Security Agency.
            (5) The Department of the Army, the Department of 
        the Navy, and the Department of the Air Force.
            (6) The Department of State.
            (7) The Department of Treasury.
            (8) The Department of Energy.
            (9) The Federal Bureau of Investigation.
            (10) The Drug Enforcement Administration.
            (11) The National Reconnaissance Office.
            (12) The Central Imagery Office.

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, 1996, 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. 1655 of the 
One Hundred Fourth Congress.
    (b) Availability of Classified Schedule of 
Authorizations.--The Schedule of Authorizations shall be made 
available to the Committees on Appropriations of the Senate and 
House of Representatives and to the President. The President 
shall provide for suitable distribution of the Schedule, or of 
appropriate portions of the Schedule, within the executive 
branch.

SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

    (a) Authority for Adjustments.--With the approval of the 
Director of the Office of Management and Budget, the Director 
of Central Intelligence may authorize employment of civilian 
personnel in excess of the number authorized for fiscal year 
1996 under section 102 when the Director of Central 
Intelligence determines that such action is necessary to the 
performance of important intelligence functions, except that 
the number of personnel employed in excess of the number 
authorized under such section may not, for any element of the 
intelligence community, exceed two percent of the number of 
civilian personnel authorized under such section for such 
element.
    (b) Notice to Intelligence Committees.--The Director of 
Central Intelligence shall promptly notify the Permanent Select 
Committee on Intelligence of the House of Representatives and 
the Select Committee on Intelligence of the Senate whenever he 
exercises the authority granted by this section.

SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.

    (a) Authorization of Appropriations.--There is authorized 
to be appropriated for the Community Management Account of the 
Director of Central Intelligence for fiscal year 1996 the sum 
of $90,713,000. Within such amounts authorized, funds 
identified in the classified Schedule of Authorizations 
referred to in section 102(a) for the Advanced Research and 
Development Committee and the Environmental Task Force shall 
remain available until September 30, 1997.
    (b) Authorized Personnel Levels.--The Community Management 
Staff of the Director of Central Intelligence is authorized 247 
full-time personnel as of September 30, 1996. Such personnel of 
the Community Management Staff may be permanent employees of 
the Community Management Staff or personnel detailed from other 
elements of the United States Government.
    (c) Reimbursement.--During fiscal year 1996, any officer or 
employee of the United States or a member of the Armed Forces 
who is detailed to the Community Management Staff 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.

 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 1996 the sum of $213,900,000.

                     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. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.

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

  ``TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES


                          ``stay of sanctions


    ``Sec. 901. Notwithstanding any provision of law identified 
in section 904, the President may stay the imposition of an 
economic, cultural, diplomatic, or other sanction or related 
action by the United States Government concerning a foreign 
country, organization, or person when the President determines 
and reports to Congress in accordance with section 903 that to 
proceed without delay would seriously risk the compromise of an 
ongoing criminal investigation directly related to the 
activities giving rise to the sanction or an intelligence 
source or method directly related to the activities giving rise 
to the sanction. Any such stay shall be effective for a period 
of time specified by the President, which period may not exceed 
120 days, unless such period is extended in accordance with 
section 902.


                          ``extension of stay


    ``Sec. 902. Whenever the President determines and reports 
to Congress in accordance with section 903 that a stay of 
sanctions or related actions pursuant to section 901 has not 
afforded sufficient time to obviate the risk to an ongoing 
criminal investigation or to an intelligence source or method 
that gave rise to the stay, he may extend such stay for a 
period of time specified by the President, which period may not 
exceed 120 days. The authority of this section may be used to 
extend the period of a stay pursuant to section 901 for 
successive periods of not more than 120 days each.


                               ``reports


    ``Sec. 903. Reports to Congress pursuant to sections 901 
and 902 shall be submitted promptly upon determinations under 
this title. Such reports shall be submitted to the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate. With respect to 
determinations relating to intelligence sources and methods, 
reports shall also be submitted to the Permanent Select 
Committee on Intelligence of the House of Representatives and 
the Select Committee on Intelligence of the Senate. With 
respect to determinations relating to ongoing criminal 
investigations, reports shall also be submitted to the 
Committees on the Judiciary of the House of Representatives and 
the Senate.


                         ``laws subject to stay


    ``Sec. 904. The President may use the authority of sections 
901 and 902 to stay the imposition of an economic, cultural, 
diplomatic, or other sanction or related action by the United 
States Government related to the proliferation of weapons of 
mass destruction, their delivery systems, or advanced 
conventional weapons otherwise required to be imposed by the 
Chemical and Biological Weapons Control and Warfare Elimination 
Act of 1991 (title III of Public Law 102-182); the Nuclear 
Proliferation Prevention Act of 1994 (title VIII of Public Law 
103-236); title XVII of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510) (relating to the 
nonproliferation of missile technology); the Iran-Iraq Arms 
Nonproliferation Act of 1992 (title XVI of Public Law 102-484); 
section 573 of the Foreign Operations, Export Financing Related 
Programs Appropriations Act, 1994 (Public Law 103-87); section 
563 of the Foreign Operations, Export Financing Related 
Programs Appropriations Act, 1995 (Public Law 103-306); and 
comparable provisions.


                             ``application


    ``Sec. 905. This title shall cease to be effective on the 
date which is one year after the date of the enactment of this 
title.''.
    (b) Clerical Amendment.--The table of contents in the first 
section of such Act is amended by adding at the end thereof the 
following:

   ``TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES

``Sec. 901. Stay of sanctions.
``Sec. 902. Extension of stay.
``Sec. 903. Reports.
``Sec. 904. Laws subject to stay.
``Sec. 905. Application.''.

SEC. 304. THRIFT SAVINGS PLAN FORFEITURE.

    (a) In General.--Section 8432(g) of title 5, United States 
Code, is amended by adding at the end the following new 
paragraph:
    ``(5) Notwithstanding any other provision of law, 
contributions made by the Government for the benefit of an 
employee or Member under subsection (c), and all earnings 
attributable to such contributions, shall be forfeited if the 
annuity of the employee or Member, or that of a survivor or 
beneficiary, is forfeited under subchapter II of chapter 83.''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall apply to offenses upon which the requisite annuity 
forfeitures are based occurring on or after the date of the 
enactment of this Act.

SEC. 305. AUTHORITY TO RESTORE SPOUSAL PENSION BENEFITS TO SPOUSES WHO 
                    COOPERATE IN CRIMINAL INVESTIGATIONS AND 
                    PROSECUTIONS FOR NATIONAL SECURITY OFFENSES.

    Section 8318 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(e) The spouse of an individual whose annuity or retired 
pay is forfeited under section 8312 or 8313 after the date of 
enactment of this subsection shall be eligible for spousal 
pension benefits if the Attorney General of the United States 
determines that the spouse fully cooperated with Federal 
authorities in the conduct of a criminal investigation and 
subsequent prosecution of the individual which resulted in such 
forfeiture.''.

SEC. 306. SECRECY AGREEMENTS USED IN INTELLIGENCE ACTIVITIES.

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

SEC. 307. LIMITATION ON AVAILABILITY OF FUNDS FOR AUTOMATIC 
                    DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.

    (a) In General.--The Director of Central Intelligence shall 
use no more than $25,000,000 of the amounts authorized to be 
appropriated for fiscal year 1996 by this Act for the National 
Foreign Intelligence Program to carry out the provisions of 
section 3.4 of Executive Order 12958. The Director may, in the 
Director's discretion, draw on this amount for allocation to 
the agencies within the National Foreign Intelligence Program 
for the purpose of automatic declassification of records over 
25 years old.
    (b) Required Budget Submission.--The President shall submit 
for fiscal year 1997 and each of the following fiscal years 
through fiscal year 2000 a budget request which specifically 
sets forth the funds requested for implementation of section 
3.4 of Executive Order 12958.

SEC. 308. AMENDMENT TO THE HATCH ACT REFORM AMENDMENTS OF 1993.

    Section 7325 of title 5, United States Code, is amended by 
adding after ``section 7323(a)'' the following: ``and paragraph 
(2) of section 7323(b)''.

SEC. 309. REPORT ON PERSONNEL POLICIES.

    (a) Report Required.--Not later than three months after the 
date of enactment of this Act, the Director of Central 
Intelligence shall submit to the intelligence committees of 
Congress a report describing personnel procedures, and 
recommending necessary legislation, to provide for mandatory 
retirement for expiration of time in class, comparable to the 
applicable provisions of section 607 of the Foreign Service Act 
of 1980 (22 U.S.C. 4007), and termination based on relative 
performance, comparable to section 608 of the Foreign Service 
Act of 1980 (22 U.S.C. 4008), and to provide for other 
personnel review systems for all civilian employees of the 
Central Intelligence Agency, the National Security Agency, the 
Defense Intelligence Agency, and the intelligence elements of 
the Army, Navy, Air Force, and Marine Corps. Such report shall 
contain a description and analysis of voluntary separation 
incentive options, including a waiver of the 2 percent penalty 
reduction for early retirement under certain Federal retirement 
systems.
    (b) Coordination.--The preparation of the report required 
by subsection (a) shall be coordinated as appropriate with 
elements of the intelligence community (as defined in section 
3(4) of the National Security Act of 1947 (50 U.S.C. 401(4)).
    (c) Definition.--As used in this section, the term 
``intelligence committees of Congress'' means the Select 
Committee on Intelligence of the Senate and the Permanent 
Select Committee on Intelligence of the House of 
Representatives.

SEC. 310. ASSISTANCE TO FOREIGN COUNTRIES.

    Notwithstanding any other provision of law, funds 
authorized to be appropriated by this Act may be used to 
provide assistance to a foreign country for counterterrorism 
efforts if--
            (1) such assistance is provided for the purpose of 
        protecting the property of the United States Government 
        or the life and property of any United States citizen, 
        or furthering the apprehension of any individual 
        involved in any act of terrorism against such property 
        or persons; and
            (2) the Committee on Intelligence of the Senate and 
        the Permanent Select Committee on Intelligence of the 
        House of Representatives are notified not later than 15 
        days prior to the provision of such assistance.

SEC. 311. FINANCIAL MANAGEMENT OF THE NATIONAL RECONNAISSANCE OFFICE.

    (a) Management Review.--(1) The Inspector General for the 
Central Intelligence Agency, assisted by the Inspector General 
of the Department of Defense, shall undertake a comprehensive 
review of the financial management of the National 
Reconnaissance Office to evaluate the effectiveness of policies 
and internal controls over the budget of the National 
Reconnaissance Office, including the use of carry-forward 
funding, to ensure that National Reconnaissance Office funds 
are used in accordance with applicable Federal acquisition 
regulations and the policies of the Director of Central 
Intelligence and consistent with those of the Department of 
Defense, the guidelines of the National Reconnaissance Office, 
and congressional direction.
    (2) The review required by paragraph (1) shall--
            (A) determine the quality of the development and 
        implementation of the budget process within the 
        National Reconnaissance Office at both the comptroller 
        and directorate level;
            (B) assess the advantages and disadvantages of the 
        use of incremental versus full funding for contracts 
        entered into by the National Reconnaissance Office;
            (C) assess the advantages and disadvantages of the 
        National Reconnaissance Office's use of carry-forward 
        funding;
            (D) determine how the National Reconnaissance 
        Office defines, identifies, and justifies carry-forward 
        funding requirements;
            (E) determine how the National Reconnaissance 
        Office tracks and manages carry-forward funding;
            (F) determine how the National Reconnaissance 
        Office plans to comply with congressional direction 
        regarding carry-forward funding;
            (G) determine whether or not a contract entered 
        into by the National Reconnaissance Office has ever 
        encountered a contingency which required the 
        utilization of more than 30 days of carry-forward 
        funding;
            (H) consider the proposal by the Director of 
        Central Intelligence for the establishment of a 
        position of a Chief Financial Officer, and assess how 
        the functions to be performed by that officer would 
        enhance the financial management of the National 
        Reconnaissance Office; and
            (I) make recommendations, as appropriate, to 
        improve control and management of the budget process of 
        the National Reconnaissance Office.
    (3) The Director of Central Intelligence shall submit a 
report to the Congress setting forth the findings of the review 
required by paragraph (1) not later than March 1, 1996, with an 
interim report provided to the Congress not later than 2 weeks 
after the enactment of this Act.
    (b) Report.--(1) Not later than January 30, 1996, the 
President shall submit a report to the appropriate committees 
of the Congress on a proposal to subject the budget of the 
intelligence community to greater oversight by the executive 
branch of Government.
    (2) Such report shall include (among other things)--
            (A) consideration of establishing by statute a 
        financial control officer for the National 
        Reconnaissance Office, other elements of the 
        intelligence community, and for the intelligence 
        community as a whole;
            (B) recommendations for procedures to be used by 
        the Office of Management and Budget for review of the 
        budget of the National Reconnaissance Office;
            (C) a proposed statutory provision that would 
        require the Director of Central Intelligence to 
        establish a policy to restrict the National 
        Reconnaissance Office authority on carry-forward 
        funding in a manner consistent with the restriction on 
        such authority within the Department of Defense; and
            (D) an evaluation of how changes proposed as a 
        result of the review required by subsection (a) will 
        affect, directly or indirectly, the National 
        Reconnaissance Office's streamlined acquisition process 
        and, ultimately, program costs.
    (c) Definition.--As used in this section, the term 
``intelligence community'' has the meaning given to the term in 
section 3(4) of the National Security Act of 1947 (50 U.S.C. 
401a(4)).

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

SEC. 401. EXTENSION OF THE CIA VOLUNTARY SEPARATION PAY ACT.

    (a) Extension of Authority.--Section 2(f) of the Central 
Intelligence Agency Voluntary Separation Pay Act (50 U.S.C. 
403-4(f)) is amended by striking ``September 30, 1997'' and 
inserting ``September 30, 1999''.
    (b) Remittance of Funds.--Section 2 of the Central 
Intelligence Agency Voluntary Separation Pay Act (50 U.S.C. 
403-4) is amended by inserting at the end the following new 
subsection:
    ``(i) Remittance of Funds.--The Director shall remit to the 
Office of Personnel Management for deposit in the Treasury of 
the United States to the credit of the Civil Service Retirement 
and Disability Fund (in addition to any other payments which 
the Director is required to make under subchapter III of 
chapter 83 and subchapter II of chapter 84 of title 5, United 
States Code), an amount equal to 15 percent of the final basic 
pay of each employee who, in fiscal year 1998 or fiscal year 
1999, retires voluntarily under section 8336, 8412, or 8414 of 
such title or resigns and to whom a voluntary separation 
incentive payment has been or is to be paid under this 
section.''.

SEC. 402. VOLUNTEER SERVICE PROGRAM.

    (a) General Authority.--The Director of Central 
Intelligence is authorized to establish and maintain a program 
from fiscal years 1996 through 2001 to utilize the services 
contributed by not more than 50 annuitants who serve without 
compensation as volunteers in aid of the review for 
declassification or downgrading of classified information by 
the Central Intelligence Agency under applicable Executive 
orders governing the classification and declassification of 
national security information and Public Law 102-526.
    (b) Costs Incidental to Services.--The Director is 
authorized to use sums made available to the Central 
Intelligence Agency by appropriations or otherwise for paying 
the costs incidental to the utilization of services contributed 
by individuals under subsection (a). Such costs may include 
(but need not be limited to) training, transportation, lodging, 
subsistence, equipment, and supplies. The Director may 
authorize either direct procurement of equipment, supplies, and 
services, or reimbursement for expenses, incidental to the 
effective use of volunteers. Such expenses or services shall be 
in accordance with volunteer agreements made with such 
individuals. Sums made available for such costs may not exceed 
$100,000.
    (c) Application of Certain Provisions of Law.--A volunteer 
under this section shall be considered to be a Federal employee 
for the purposes of subchapter I of title 81 (relating to 
compensation of Federal employees for work injuries) and 
section 1346(b) and chapter 171 of title 28 (relating to tort 
claims). A volunteer under this section shall be covered by and 
subject to the provisions of chapter 11 of title 18 of the 
United States Code as if they were employees or special 
Government employees depending upon the days of expected 
service at the time they begin volunteering.

SEC. 403. AUTHORITIES OF THE INSPECTOR GENERAL OF THE CENTRAL 
                    INTELLIGENCE AGENCY.

    (a) Reports by the Inspector General.--Section 17(b)(5) of 
the Central Intelligence Act of 1949 (50 U.S.C. 403q(b)(5)) is 
amended to read as follows:
    ``(5) In accordance with section 535 of title 28, United 
States Code, the Inspector General shall report to the Attorney 
General any information, allegation, or complaint received by 
the Inspector General relating to violations of Federal 
criminal law that involve a program or operation of the Agency, 
consistent with such guidelines as may be issued by the 
Attorney General pursuant to subsection (b)(2) of such section. 
A copy of all such reports shall be furnished to the 
Director.''.
    (b) Exception to Nondisclosure Requirement.--Section 
17(e)(3)(A) of such Act is amended by inserting after 
``investigation'' the following: ``or the disclosure is made to 
an official of the Department of Justice responsible for 
determining whether a prosecution should be undertaken''.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

SEC. 501. DEFENSE INTELLIGENCE SENIOR LEVEL POSITIONS.

    Section 1604 of title 10, United States Code, is amended to 
read as follows:

``Sec. 1604. Civilian personnel management

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

SEC. 502. COMPARABLE BENEFITS AND ALLOWANCES FOR CIVILIAN AND MILITARY 
                    PERSONNEL ASSIGNED TO DEFENSE INTELLIGENCE 
                    FUNCTIONS OVERSEAS.

    (a) Civilian Personnel.--Section 1605 of title 10, United 
States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a)'';
                    (B) by striking ``of the Department of 
                Defense'' and all that follows through ``this 
                subsection,'' and inserting ``described in 
                subsection (d)''; and
                    (C) by designating the second sentence as 
                paragraph (2);
            (2) by striking subsection (c) and inserting the 
        following:
    ``(c) Regulations prescribed under subsection (a) may not 
take effect until the Secretary of Defense has submitted such 
regulations to--
            ``(1) the Committee on Armed Services and the 
        Select Committee on Intelligence of the Senate; and
            ``(2) the Committee on National Security and the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives.''; and
            (3) by adding at the end the following new 
        subsection:
    ``(d) Subsection (a) applies to civilian personnel of the 
Department of Defense who--
            ``(1) are United States nationals;
            ``(2) in the case of employees of the Defense 
        Intelligence Agency, are assigned to duty outside the 
        United States and, in the case of other employees, are 
        assigned to Defense Attache Offices or Defense 
        Intelligence Agency Liaison Offices outside the United 
        States; and
            ``(3) are designated by the Secretary of Defense 
        for the purposes of subsection (a).''.
    (b) Military Personnel.--Section 431 of title 37, United 
States Code, is amended--
            (1) in subsection (a), by striking ``who are 
        assigned to'' and all that follows through ``of this 
        subsection'' and inserting ``described in subsection 
        (e)'';
            (2) by striking subsection (d) and inserting the 
        following:
    ``(d) Regulations prescribed under subsection (a) may not 
take effect until the Secretary of Defense has submitted such 
regulations to--
            ``(1) the Committee on Armed Services and the 
        Select Committee on Intelligence of the Senate; and
            ``(2) the Committee on National Security and the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives.''; and
            (3) by adding at the end the following new 
        subsection:
    ``(e) Subsection (a) applies to members of the Armed Forces 
who--
            ``(1) are assigned--
                    ``(A) to Defense Attache Offices or Defense 
                Intelligence Agency Liaison Offices outside the 
                United States; or
                    ``(B) to the Defense Intelligence Agency 
                and engaged in intelligence-related duties 
                outside the United States; and
            ``(2) are designated by the Secretary of Defense 
        for the purposes of subsection (a).''.

SEC. 503. EXTENSION OF AUTHORITY TO CONDUCT INTELLIGENCE COMMERCIAL 
                    ACTIVITIES.

    Section 431(a) of title 10, United States Code, is amended 
by striking ``1995'' and inserting ``1998''.

SEC. 504. AVAILABILITY OF FUNDS FOR TIER II UAV.

    All funds appropriated for fiscal year 1995 for the Medium 
Altitude Endurance Unmanned Aerial Vehicle (Tier II) are 
specifically authorized, within the meaning of section 504 of 
the National Security Act of 1947 (50 U.S.C. 414), for such 
purpose.

SEC. 505. MILITARY DEPARTMENT CIVILIAN INTELLIGENCE PERSONNEL 
                    MANAGEMENT SYSTEM.

    (a) Establishment of Training Program.--Chapter 81 of title 
10, United States Code, is amended by adding at the end thereof 
the following new section:

``Sec. 1599a. Financial assistance to certain employees in acquisition 
                    of critical skills

    ``(a) Training Program.--The Secretary of Defense shall 
establish an undergraduate training program with respect to 
civilian employees in the Military Department Civilian 
Intelligence Personnel Management System that is similar in 
purpose, conditions, content, and administration to the program 
established by the Secretary of Defense under section 16 of the 
National Security Act of 1959 (50 U.S.C. 402 note) for civilian 
employees of the National Security Agency.
    ``(b) Use of Funds for Training Program.--Any payment made 
by the Secretary to carry out the program required to be 
established by subsection (a) may be made in any fiscal year 
only to the extent that appropriated funds are available for 
that purpose.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of that chapter is amended by adding at the end 
thereof the following new item:

``Sec. 1599a. Financial assistance to certain employees in acquisition 
          of critical skills.''.

SEC. 506. ENHANCEMENT OF CAPABILITIES OF CERTAIN ARMY FACILITIES.

    (a) Authority.--(1) In addition to funds otherwise 
available for such purpose, the Secretary of the Army may 
transfer or reprogram funds for the enhancement of the 
capabilities of the Bad Aibling Station and the Menwith Hill 
Station, including improvements of facility infrastructure and 
quality of life programs at those installations.
    (2) The authority of paragraph (1) may be exercised 
notwithstanding any other provision of law.
    (b) Source of Funds.--Funds available for the Army for 
operations and maintenance for fiscal years 1996 and 1997 shall 
be available to carry out subsection (a).
    (c) Congressional Notification.--Whenever the Secretary of 
the Army determines that an amount to be transferred or 
reprogrammed under this section would cause the total amount 
transferred or reprogrammed in that fiscal year under this 
section to exceed $1,000,000, the Secretary shall notify in 
advance the Select Committee on Intelligence, the Committee on 
Armed Services, and the Committee on Appropriations of the 
Senate and the Permanent Select Committee on Intelligence, the 
Committee on National Security, and the Committee on 
Appropriations of the House of Representatives and provide a 
justification for the increased expenditure.
    (d) Statutory Construction.--Nothing in this section may be 
construed to modify or obviate existing law or practice with 
regard to the transfer or reprogramming of funds in excess of 
$2,000,000 from the Department of the Army to the Bad Aibling 
Station and the Menwith Hill Station.

               TITLE VI--FEDERAL BUREAU OF INVESTIGATION

SEC. 601. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO FBI FOR 
                    COUNTERINTELLIGENCE PURPOSES.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
1681 et seq.) is amended by adding after section 623 the 
following new section:

``Sec. 624. Disclosures to FBI for counterintelligence purposes

    ``(a) Identity of Financial Institutions.--Notwithstanding 
section 604 or any other provision of this title, a consumer 
reporting agency shall furnish to the Federal Bureau of 
Investigation the names and addresses of all financial 
institutions (as that term is defined in section 1101 of the 
Right to Financial Privacy Act of 1978) at which a consumer 
maintains or has maintained an account, to the extent that 
information is in the files of the agency, when presented with 
a written request for that information, signed by the Director 
of the Federal Bureau of Investigation, or the Director's 
designee, which certifies compliance with this section. The 
Director or the Director's designee may make such a 
certification only if the Director or the Director's designee 
has determined in writing that--
            ``(1) such information is necessary for the conduct 
        of an authorized foreign counterintelligence 
        investigation; and
            ``(2) there are specific and articulable facts 
        giving reason to believe that the consumer--
                    ``(A) is a foreign power (as defined in 
                section 101 of the Foreign Intelligence 
                Surveillance Act of 1978) or a person who is 
                not a United States person (as defined in such 
                section 101) and is an official of a foreign 
                power; or
                    ``(B) is an agent of a foreign power and is 
                engaging or has engaged in an act of 
                international terrorism (as that term is 
                defined in section 101(c) of the Foreign 
                Intelligence Surveillance Act of 1978) or 
                clandestine intelligence activities that 
                involve or may involve a violation of criminal 
                statutes of the United States.
    ``(b) Identifying Information.--Notwithstanding the 
provisions of section 604 or any other provision of this title, 
a consumer reporting agency shall furnish identifying 
information respecting a consumer, limited to name, address, 
former addresses, places of employment, or former places of 
employment, to the Federal Bureau of Investigation when 
presented with a written request, signed by the Director or the 
Director's designee, which certifies compliance with this 
subsection. The Director or the Director's designee may make 
such a certification only if the Director or the Director's 
designee has determined in writing that--
            ``(1) such information is necessary to the conduct 
        of an authorized counterintelligence investigation; and
            ``(2) there is information giving reason to believe 
        that the consumer has been, or is about to be, in 
        contact with a foreign power or an agent of a foreign 
        power (as defined in section 101 of the Foreign 
        Intelligence Surveillance Act of 1978).
      ``(c) Court Order for Disclosure of Consumer Reports.--
Notwithstanding section 604 or any other provision of this 
title, if requested in writing by the Director of the Federal 
Bureau of Investigation, or a designee of the Director, a court 
may issue an order ex parte directing a consumer reporting 
agency to furnish a consumer report to the Federal Bureau of 
Investigation, upon a showing in camera that--
            ``(1) the consumer report is necessary for the 
        conduct of an authorized foreign counterintelligence 
        investigation; and
            ``(2) there are specific and articulable facts 
        giving reason to believe that the consumer whose 
        consumer report is sought--
                    ``(A) is an agent of a foreign power, and
                    ``(B) is engaging or has engaged in an act 
                of international terrorism (as that term is 
                defined in section 101(c) of the Foreign 
                Intelligence Surveillance Act of 1978) or 
                clandestine intelligence activities that 
                involve or may involve a violation of criminal 
                statutes of the United States.
The terms of an order issued under this subsection shall not 
disclose that the order is issued for purposes of a 
counterintelligence investigation.
    ``(d) Confidentiality.--No consumer reporting agency or 
officer, employee, or agent of a consumer reporting agency 
shall disclose to any person, other than those officers, 
employees, or agents of a consumer reporting agency 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 the 
identity of financial institutions or a consumer report 
respecting any consumer under subsection (a), (b), or (c), and 
no consumer reporting agency or officer, employee, or agent of 
a consumer reporting agency shall include in any consumer 
report any information that would indicate that the Federal 
Bureau of Investigation has sought or obtained such information 
or a consumer report.
    ``(e) Payment of Fees.--The Federal Bureau of Investigation 
shall, subject to the availability of appropriations, pay to 
the consumer reporting agency assembling or providing report or 
information in accordance with procedures established under 
this section a fee for reimbursement for such costs as are 
reasonably necessary and which have been directly incurred in 
searching, reproducing, or transporting books, papers, records, 
or other data required or requested to be produced under this 
section.
    ``(f) Limit on Dissemination.--The Federal Bureau of 
Investigation may not disseminate information obtained pursuant 
to this section outside of the Federal Bureau of Investigation, 
except to other Federal agencies as may be necessary for the 
approval or conduct of a foreign counterintelligence 
investigation, or, where the information concerns a person 
subject to the Uniform Code of Military Justice, to appropriate 
investigative authorities within the military department 
concerned as may be necessary for the conduct of a joint 
foreign counterintelligence investigation.
    ``(g) Rules of Construction.--Nothing in this section shall 
be construed to prohibit information from being furnished by 
the Federal Bureau of Investigation pursuant to a subpoena or 
court order, in connection with a judicial or administrative 
proceeding to enforce the provisions of this Act. Nothing in 
this section shall be construed to authorize or permit the 
withholding of information from the Congress.
    ``(h) Reports to Congress.--On a semiannual basis, the 
Attorney General shall fully inform the Permanent Select 
Committee on Intelligence and the Committee on Banking, Finance 
and Urban Affairs of the House of Representatives, and the 
Select Committee on Intelligence and the Committee on Banking, 
Housing, and Urban Affairs of the Senate concerning all 
requests made pursuant to subsections (a), (b), and (c).
    ``(i) Damages.--Any agency or department of the United 
States obtaining or disclosing any consumer reports, records, 
or information contained therein in violation of this section 
is liable to the consumer to whom such consumer reports, 
records, or information relate in an amount equal to the sum 
of--
            ``(1) $100, without regard to the volume of 
        consumer reports, records, or information involved;
            ``(2) any actual damages sustained by the consumer 
        as a result of the disclosure;
            ``(3) if the violation is found to have been 
        willful or intentional, such punitive damages as a 
        court may allow; and
            ``(4) in the case of any successful action to 
        enforce liability under this subsection, the costs of 
        the action, together with reasonable attorney fees, as 
        determined by the court.
    ``(j) Disciplinary Actions for Violations.--If a court 
determines that any agency or department of the United States 
has violated any provision of this section and the court finds 
that the circumstances surroundingthe violation raise questions 
of whether or not an officer or employee of the agency or department 
acted willfully or intentionally with respect to the violation, the 
agency or department shall promptly initiate a proceeding to determine 
whether or not disciplinary action is warranted against the officer or 
employee who was responsible for the violation.
    ``(k) Good-Faith Exception.--Notwithstanding any other 
provision of this title, any consumer reporting agency or agent 
or employee thereof making disclosure of consumer reports or 
identifying information pursuant to this subsection in good-
faith reliance upon a certification of the Federal Bureau of 
Investigation pursuant to provisions of this section shall not 
be liable to any person for such disclosure under this title, 
the constitution of any State, or any law or regulation of any 
State or any political subdivision of any State.
    ``(l) Limitation of Remedies.--Notwithstanding any other 
provision of this title, the remedies and sanctions set forth 
in this section shall be the only judicial remedies and 
sanctions for violation of this section.
    ``(m) Injunctive Relief.--In addition to any other remedy 
contained in this section, injunctive relief shall be available 
to require compliance with the procedures of this section. In 
the event of any successful action under this subsection, costs 
together with reasonable attorney fees, as determined by the 
court, may be recovered.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of the Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended by adding after the item relating to section 
623 the following new item:

``624. Disclosures to FBI for counterintelligence purposes.''.

                    TITLE VII--TECHNICAL AMENDMENTS

SEC. 701. CLARIFICATION WITH RESPECT TO PAY FOR DIRECTOR OR DEPUTY 
                    DIRECTOR OF CENTRAL INTELLIGENCE APPOINTED FROM 
                    COMMISSIONED OFFICERS OF THE ARMED FORCES.

    (a) Clarification.--Subparagraph (C) of section 102(c)(3) 
of the National Security Act of 1947 (50 U.S.C. 403(c)(3)) is 
amended to read as follows:
    ``(C) A commissioned officer of the Armed Forces on active 
duty who is appointed to the position of Director or Deputy 
Director, while serving in such position and while remaining on 
active duty, shall continue to receive military pay and 
allowances and shall not receive the pay prescribed for the 
Director or Deputy Director. Funds from which such pay and 
allowances are paid shall be reimbursed from funds available to 
the Director.''.
    (b) Technical Corrections.--(1) Subparagraphs (A) and (B) 
of such section are amended by striking ``pursuant to paragraph 
(2) or (3)'' and inserting ``to the position of Director or 
Deputy Director''.
    (2) Subparagraph (B) of such section is amended by striking 
``paragraph (A)'' and inserting ``subparagraph (A)''.

SEC. 702. CHANGE OF DESIGNATION OF CIA OFFICE OF SECURITY.

    Section 701(b)(3) of the National Security Act of 1947 (50 
U.S.C. 431(b)(3)), is amended by striking ``Office of 
Security'' and inserting ``Office of Personnel Security''.
      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:
                                   Larry Combest,
                                   R.K. Dornan,
                                   Bill Young,
                                   James V. Hansen,
                                   Jerry Lewis,
                                   Porter J. Goss,
                                   Bud Shuster,
                                   Bill McCollum,
                                   Michael N. Castle,
                                   Norman Dicks,
                                   Bill Richardson,
                                   Julian C. Dixon,
                                   Robert G. Torricelli,
                                   Ron Coleman,
                                   David E. Skaggs,
                                   Nancy Pelosi,
                As additional conferees from the Committee on 
                National Security, for consideration of defense 
                tactical intelligence and related activities:
                                   Floyd Spence,
                                   Bob Stump,
                As additional conferees from the Committee on 
                International Relations, for consideration of 
                section 303 of the House bill, and section 303 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Benjamin A. Gilman,
                                   Christopher Smith,
                                   Howard L. Berman,
                                 Managers on the Part of the House.

                                   Arlen Specter,
                                   Richard G. Lugar,
                                   Richard Shelby,
                                   Mike DeWine,
                                   Jon Kyl,
                                   Jim Inhofe,
                                   Kay Bailey Hutchison,
                                   Connie Mack,
                                   Bill Cohen,
                                   Strom Thurmond,
                                   Robert Kerrey,
                                   John Glenn,
                                   Richard H. Bryan,
                                   Bob Graham,
                                   John F. Kerry,
                                   Max Baucus,
                                   J. Bennett Johnston,
                                   Charles Robb,
                                   Sam Nunn,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 1655) to 
authorize appropriations for fiscal year 1996 for intelligence 
and the intelligence-related activities of the United States 
Government, the Community Management Account, and the Central 
Intelligence Agency Retirement and Disability System, and for 
other purposes, submit the following joint statement to the 
House and the Senate in explanation of the effect of the action 
agreed upon by the managers and recommended in the accompanying 
conference report:
      The Senate amendment struck all of the House bill after 
the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clerical 
changes.

                    Title I--Intelligence Activities

SEC. 101. AUTHORIZATION FOR APPROPRIATIONS.

      Section 101 of the conference report lists the 
departments, agencies, and other elements of the United States 
Government for whose intelligence and intelligence-related 
activities the Act authorizes appropriations for fiscal year 
1996.

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 
1996 are contained in a classified Schedule of Authorizations. 
The Schedule of Authorizations is incorporated into the Act by 
this section. The details of the Schedule are explained in the 
classified annex to this report.

SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

      Section 103 of the conference report authorizes the 
Director of Central Intelligence, with the approval of the 
Director of the Office of Management and Budget, in fiscal year 
1996 to exceed the personnel ceilings applicable to the 
components of the Intelligence Community under section 102 by 
an amount not to exceed two percent of the total of the 
ceilings applicable under section 102. The Director may 
exercise this authority only when doing so is necessary to the 
performance of important intelligence functions. Any exercise 
of this authority must be reported to the two intelligence 
committees of the Congress.
      The conferees emphasize that the authority conferred by 
Section 103 is not intended to permit the wholesale raising of 
personnel strength in any intelligence component. Rather, the 
section provides the Director of Central Intelligence with 
flexibility to adjust personnel levels temporarily for 
contingencies and for overages caused by an imbalance between 
hiring of new employees and attrition of current employees. The 
conferees do not expect the Director of Central Intelligence to 
allow heads of intelligence components to plan to exceed levels 
set in the Schedule of Authorizations except for the 
satisfaction of clearly identified hiring needs which are 
consistent with the authorization of personnel strengths in 
this bill. In no case is this authority to be used to provide 
for positions denied by this bill.

SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.

      Section 104 of the conference report authorizes 
appropriations for the Community Management Account of the 
Director of Central Intelligence and sets the personnel end-
strength for the Intelligence Community Management Staff for 
fiscal year 1996.
      Subsection (a) authorizes appropriations of $90,713,000 
for fiscal year 1996 for the activities of the Community 
Management Account of the Director of Central Intelligence. It 
also authorizes funds identified for the Advanced Research and 
Development Committee and the Environmental Task Force to 
remain available for two years.
      Subsection (b) authorizes 247 full-time personnel for the 
Community Management Staff for fiscal year 1996 and provides 
that such personnel may be permanent employees of the Staff or 
detailed from various elements of the United States Government.
      Subsection (c) requires that personnel be detailed on a 
reimbursable basis except for temporary situations of less than 
one year.

 Title II--Central Intelligence Agency Retirement and Disability System

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

      Section 201 authorizes appropriations in the amount of 
$213,900,000 for fiscal year 1996 for the Central Intelligence 
Agency Retirement and Disability Fund.

                     Title III--General Provisions

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

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

SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

SEC. 303. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.

      Section 303 of the conference report amends the National 
Security Act of 1947 with a new Title IX to permit 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. Both the House bill and the Senate amendment 
contained provisions pertaining to deferrals of sanctions.
      Section 901 of the new Title IX of the National Security 
Act of 1947 grants the President the authority to stay the 
imposition of a sanction or related action. Section 901 
requires that when a sanction or related action is to be 
deferred due to the risk of compromise of a source or method or 
an ongoing criminal investigation, the source or method or the 
law enforcement matter in question must be related to the 
activities giving rise to the sanction. The section allows the 
President to stay the imposition of a sanction or related 
action for a specified period not to exceed 120 days.
      Section 902 of the new Title IX provides that when the 
President determines and reports to Congress that a stay of an 
imposition of a sanction or related action has not afforded 
sufficient time to obviate the risk to an ongoing criminal 
investigation or to an intelligence source or method that gave 
rise to the stay, the President may extend the stay for 
successive periods of not more than 120 days.
      Section 903 of the new Title IX requires that reports to 
Congress pursuant to section 901 and 902 be submitted promptly 
upon the President's determination to stay the imposition of a 
sanction or related action. Reports required under the new 
title are to be submitted to the Committee on International 
Relations of the House and the Committee on Foreign Relations 
of the Senate. Those reports pertaining to determinations 
related to intelligence sources and methods are also to be 
submitted to the Permanent Select Committee on Intelligence of 
the House and the Select Committee on Intelligence of the 
Senate. Those reports pertaining to determinations related to 
ongoing criminal investigations are also to be submitted to the 
Judiciary Committees of the House and Senate. The conferees 
further recognize that the actual structure and content of the 
reports to the Senate and House committees of jurisdiction will 
be achieved as a result of ongoing dialogue between the 
Congress and the Executive Branch. The conferees expect that 
the reports submitted pursuant to the new title will indicate 
the nature of the activities giving rise to the sanction or 
related action, the applicable law concerned, the country or 
countries in which the activity took place, and other pertinent 
details, to the maximum extent practicable consistent with the 
protection of intelligence sources and methods. The reports 
should also include a determination that the delay in the 
imposition of a sanction or related action will not be 
seriously prejudicial to the achievement of the United States' 
nonproliferation objectives or significantly increase the 
threat or risk to United States' military forces.
      Section 904 of the new Title IX enumerates specific 
nonproliferation laws requiring a sanction or related action, 
the imposition of which the President may stay pursuant to 
sections 901 and 902. The section also grants the President the 
authority to stay the imposition of a sanction or related 
action contained in laws comparable to the enumerated acts.
      Section 905 of the new Title IX states that the title 
ceases to be effective one year from the date of its enactment. 
The conferees believe this will afford Congress an opportunity 
to evaluate the use and effect of this provision in relation to 
sanctions laws. The Senate bill did not contain a similar 
provision.
      The conferees expect that when the President chooses to 
exercise the deferral authority, the utmost will be done to 
resolve sources or methods or law enforcement problems as soon 
as possible so as to permit sanctions to be imposed as required 
by law. The intelligence and judiciary committees, as 
appropriate, should be informed fully of the efforts being made 
to address the circumstances that led to the delay. The 
conferees understand that instances where sanctions would be 
deferred would be rare, and that the deferral authority will be 
exercised only when an intelligence source or method or a 
criminal investigation is seriously at risk, and not to protect 
generic or speculative intelligence or law enforcement 
interests. Moreover, the presidential determination should not 
be used as a pretext for some other reason not to impose 
sanctions such as economic or foreign policy reasons. The 
President should lift the stay when the President determines 
that it is no longer necessary to protect against compromise.
      The President must have sufficient information to 
determine whether the risk to intelligence sources and methods 
or an ongoing criminal investigation is significant and 
outweighs any potential harm to U.S. nonproliferation 
objectives. The conferees expect that determinations to invoke 
a stay authorized under this new title will be preceded by a 
rigorous interagency review process in which the 
recommendations of all relevant agencies, together with 
supporting facts, are made available to the President. The 
conferees intend to closely monitor the use of the authority 
provided under this title.

SEC. 305. THRIFT SAVINGS PLAN FORFEITURE.

      Section 304 of the conference report adds a new 
subsection to section 8432(g) of title 5, United States Code, 
to provide that the Government's contribution to the Thrift 
Savings Plan under the Federal Employees Retirement System 
(FERS) and interest earned on that contribution shall be 
forfeited if the employee's annuity has been forfeited under 
subchapter II of Chapter 83, title 5, United States Code. This 
provision closes a loophole that was created when the FERS was 
established.
      Prior to the enactment of the FERS, an employee's 
retirement annuity was based entirely on contributions made by 
the employee and by the Government to the applicable retirement 
fund. Under subchapter II of Chapter 83, any employee convicted 
of various national security offenses, including espionage, 
would forfeit his annuity and be entitled to receive only his 
monetary contributions to the annuity. A new retirement 
benefit, however, was created with the establishment of FERS, 
payable under the Thrift Savings Plan.
      The Thrift Savings Plan now permits the employee to 
contribute into the Government-managed fund and requires that 
the Government also contribute to the fund on the employee's 
behalf. When FERS was enacted, the forfeiture provisions of 
subchapter II were not amended to cover the Government's 
contributions to the Plan. This situation clearly undermines 
the intent of subchapter II by permitting an employee convicted 
of espionage to retain the Government's contributions to the 
Plan. Section 304 corrects this anomaly by requiring the 
forfeiture of the Government's contribution to the Plan and 
attributable earnings on that contribution in situations where 
an individual's annuity is forfeited under subchapter II. 
Section 304 is identical to section 304 of the House bill and 
section 304 of the Senate amendment.

SEC. 305. AUTHORITY TO RESTORE SPOUSAL PENSION BENEFITS TO SPOUSES WHO 
                    COOPERATE IN CRIMINAL INVESTIGATIONS AND 
                    PROSECUTIONS FOR NATIONAL SECURITY OFFENSES.

      Section 305 of the conference report amends section 8318 
of title 5, United States Code, to make the spouse of an 
individual whose annuity or retired pay has been forfeited 
under section 8312 or 8313 of title 5 eligible for spousal 
pension benefits if the Attorney General determines that the 
spouse fully cooperated in the criminal investigation and 
prosecution of the individual. Enactment of this legislation 
will help to protect the national security interests of the 
United States by encouraging the spouses of federal employees 
who know or suspect that their husband or wife is engaged in 
espionage activities to inform the Government and to cooperate 
in a subsequent criminal investigation and prosecution. Current 
law actually discourages cooperation with the Government, since 
under current law pension benefits are lost upon conviction and 
forfeiture of the husband's or wife's annuity, even if the 
spouse has cooperated with the Government. Section 305 is 
identical to section 305 of the House bill and section 305 of 
the Senate amendment.

SEC. 306. SECRECY AGREEMENTS USED IN INTELLIGENCE ACTIVITIES.

      Section 306 addresses a problem that CIA has experienced 
with secrecy agreements in the conduct of authorized 
intelligence activities. Beginning with the Treasury, Postal 
Service, and General Government Appropriations Act for fiscal 
year 1991 and in each year thereafter, Congress has required 
that agreements to protect classified information must contain 
certain prescribed language to put the executor on notice that 
the agreement does not supersede specified laws and Executive 
Order 12356. The language is as follows:

            These restrictions are consistent with and do not 
        supersede, conflict with or otherwise alter the 
        employee obligations, rights or liabilities created by 
        Executive Order 12356; section 7211 of title 5, United 
        States Code (governing disclosures to Congress); 
        section 1034 of title 10, United States Code, as 
        amended by the Military Whistleblower Protection Act 
        (governing disclosure to Congress by members of the 
        military); section 2302(b)(8) of title 5, United States 
        Code, as amended by the Whistleblower Protection Act 
        (governing disclosures of illegality, waste, fraud, 
        abuse of public health or safety threats); the 
        Intelligence Identities Protection Act of 1982 (50 
        U.S.C. 421 et seq.) (governing disclosures that could 
        expose confidential Government agents), and the 
        statutes which protect against disclosure that may 
        compromise the national security, including sections 
        641, 793, 794, 798, and 952 of title 18, United States 
        Code, and section 4(b) of the Subversive Activities Act 
        of 1950 (50 U.S.C. section 783(b)). The definitions, 
        requirements, obligations, rights, sanctions and 
        liabilities created by said Executive Order and listed 
        statutes are incorporated into the Agreement and are 
        controlling.

      Notwithstanding that several of the laws cited apply only 
to federal employees, the Treasury appropriations acts have 
required CIA to include the specified language in nondisclosure 
agreements intended to be executed by private parties. The 
prescribed language is required in every secrecy agreement 
entered into, so federal employees and private entities alike 
must have such language included in the agreement that they 
sign. The recitation of numerous statutes in the overbearing 
but required ``legalese'' has caused confusion, complicated 
authorized intelligence activities, and even disrupted them 
when parties refused to sign agreements containing provisions 
that do not apply to them. The required language is 
intimidating and has chilled otherwise promising intelligence 
relationships with private entities.
      Consequently, section 306 clarifies that CIA and other 
intelligence agencies have the flexibility to tailor 
nondisclosure agreements according to the needs of the 
intelligence activity at hand, as long as the agreement at a 
minimum requires nondisclosure without specific authorization 
by the United States Government. The form or agreement must 
also make clear that the form or agreement does not bar 
disclosures to Congress or disclosures to an authorized 
official of an executive agency that are deemed essential to 
reporting a violation of United States laws. This section, when 
enacted, will permit the use of secrecy agreements stated in 
plain and understandable English and that will not intimidate 
the layman. The provision will make it easier for people to 
understand their rights and obligations when signing a secrecy 
agreement, which will ultimately enhance the protection of 
national security information.

SEC. 307. LIMITATION ON AVAILABILITY OF FUNDS FOR AUTOMATIC 
                    DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.

      Section 307 limits the availability of funds authorized 
to be appropriated by this Act to implement section 3.4 of 
Executive Order 12958 to $25 million in fiscal year 1996. The 
Director of Central Intelligence, at the Director's discretion, 
may allocate this amount among the agencies of the National 
Foreign Intelligence Program for this purpose. Section 307 
requires the President to submit budget requests that 
specifically identify the funds necessary to implement section 
3.4 for fiscal years 1997 through 2000.
      Given that the conferees have received four different 
estimates of the cost of implementing section 3.4 since the 
beginning of the year, the conferees believe there needs to be 
a continuing effort to fully evaluate the potential costs 
associated with the declassification review programs. The 
conferees further urge that this declassification effort be 
coordinated closely with CIA's Historical Review Program Office 
so as to enhance the intellectual coherence of the 
declassification process. In the budget submission for FY1997, 
the President is to provide a detailed request supported by 
firm estimates of declassification costs.
      Section 307 of the House bill limited each agency of the 
National Foreign Intelligence Program to $2.5 million to carry 
out the provisions of section 3.4. The Senate amendment had no 
similar provision.

SEC. 308. AMENDMENT TO THE HATCH ACT REFORM AMENDMENTS OF 1993.

      Section 308 restores the authority of the Office of 
Personnel Management (OPM) to extend ``de-Hatching'' to 
employees of the agencies listed in 5 U.S.C. 
Sec. 7323(b)(2)(B)(i).
      Previously, under 5 U.S.C. Sec. 7323, OPM had the 
authority to designate certain municipalities and other 
political subdivisions in which federal employees in both 
competitive and excepted services could actively participate in 
local partisan elections. (Such designation of municipalities 
and political subdivisions by OPM is commonly referred to as 
``de-Hatching''.) However, when this authority was amended by 
Public Law 103-94 and recodified in 5 U.S.C. Sec. 7325, the 
authority was granted only ``without regard to the prohibitions 
in paragraphs (2) and (3) of section 7323(a)''. The 
prohibitions in section 7323(a) apply to the federal employees, 
both competitive and excepted service. However, employees of 
NSA, CIA, DIA and the other agencies listed in 5 U.S.C. 
Sec. 7323(b)(2)(B)(i) are subject to additional prohibitions 
under section 7323(b)(2)(A) which section 7325 does not permit 
OPM to disregard. Thus, OPM cannot extend de-Hatching to 
employees of the listed agencies and the implementing interim 
regulations issued by OPM (59 Fed. Reg. 5313 (1994) to be 
codified at 5 C.F.R. Part 733) reflect this restriction.
      This provision would amend the ``de-Hatching'' provision 
(5 U.S.C. Sec. 7325) to include the excepted services in the 
category of federal employees that OPM may permit to take an 
active part in local (not Federal) political campaigns.
      Section 308 is identical to section 306 of the Senate 
amendment. The House bill did not contain a similar provision.

SEC. 309. REPORT ON PERSONNEL POLICIES.

      Section 309 of the conference report requires the DCI to 
report to the intelligence oversight committees within three 
months detailed personnel procedures that could be implemented 
across the intelligence community to provide for mandatory 
retirement at expiration of time in class and termination based 
on relative performance similar to comparable provisions in 
sections 607 and 608 of the Foreign Service Act of 1980 (Title 
22 U.S.C. 4007 and 4008) for civilian employees.
      The Director of Central Intelligence and Secretary of 
Defense were directed in the FY 1995 Intelligence Authorization 
Act to provide a report by December 1, 1994 on the advisability 
of providing for mandatory retirement at expiration of time in 
class. The oversight committees have reviewed the issue and 
determined that a performance-based policy is advisable and are 
now directing the DCI to develop and report on procedures that 
could be implemented.
      Senate floor action added a provision requiring that the 
DCI's report include a description and analysis of voluntary 
separation incentives, including a waiver of the ``two percent 
penalty'' reduction for early retirement under certain federal 
retirement systems. Section 309 is substantially similar to 
section 307 of the Senate amendment. The House bill did not 
contain a similar provision.

SEC. 310. ASSISTANCE TO FOREIGN COUNTRIES.

      Section 310 of the conference report authorizes 
assistance to a foreign country for counterterrorism efforts, 
notwithstanding any other provision of law, for the purpose of 
protecting the property of the United States Government or the 
life and property of any United States citizen or furthering 
the apprehension of any individual involved in any act of 
terrorism against such property or persons. The appropriate 
committees of Congress are to be notified not later than 15 
days prior to the provision of such assistance. This authority 
is needed for the purpose of furthering United States 
interests. By providing this authority, there will be no doubt 
that the United States will be able to provide assistance to 
foreign countries that are willing to help identify, track and 
apprehend persons who have destroyed American property or 
harmed American citizens. Section 310 is identical to section 
308 of the Senate amendment. There was no comparable language 
in the House bill.

SEC. 311. FINANCIAL MANAGEMENT OF THE NATIONAL RECONNAISSANCE OFFICE.

      Section 311 of the conference report seeks to improve 
accountability and financial management control over the 
National Reconnaissance Office. The section further requires a 
review of NRO's financial management by the Inspector General 
of CIA, assisted by the Inspector General of DOD, to evaluate 
the effectiveness of policies and internal controls over the 
NRO budget, particularly with regard to carry-forward funding. 
It is the intention of the conferees that the Director of 
Central Intelligence notify the intelligence oversight 
committees prior to reprogramming, reallocating, and/or 
rescinding funds previously authorized and appropriated for NRO 
programs, projects, and activities. The section also requires 
the President to report no later than January 30, 1996 on a 
proposal to subject the budget of the Intelligence Community to 
greater Executive Branch oversight, including the possibility 
of a statutory financial control officer for the NRO and 
greater Office of Management and Budget review of the NRO's 
budget. The report must include an analysis of the option for a 
statutory provision requiring the DCI to establish a policy to 
restrict the NRO's authority on carry-forward funding 
consistent with the restriction on such authority within the 
Department of Defense. The President shall also report on how 
changes proposed as a result of this review will affect, 
directly or indirectly, the NRO's streamlined acquisition 
process and ultimately, program costs.
      Elements of section 311 were added to the Senate 
amendment in floor action, but the provision has been 
substantially changed in subsequent discussions among 
conferees. There was no comparable provision in the House bill.

                 Title IV--Central Intelligence Agency

SEC. 401. EXTENSION OF THE CIA VOLUNTARY SEPARATION PAY ACT.

      Section 401 amends section 2(f) of the CIA Voluntary 
Separation Pay Act, 50 U.S.C. Sec. 403-4(f), to extend the 
Agency's authority to offer separation incentives until 
September 30, 1999. Without this amendment, the Agency's 
authority to offer such incentives will expire on September 30, 
1997.
      CIA's separation incentive program has been an effective 
force reduction tool. It is necessary to extend this authority 
until September 30, 1999, because CIA, like DOD, will continue 
to downsize through that year. Enactment of this provision will 
ensure that CIA can minimize the need to separate employees 
involuntarily. In light of the conferees' concern that this 
authority may have been used in the past in lieu of more 
rigorous personnel policies, this authority is extended with 
the understanding that the Intelligence Community will be 
pursuing such policies, and that this authority can be used to 
ease the transition to the more rigorous, performance-based 
criteria and policy.
      Section 401(b) is designed to offset the direct spending 
cost of the extension of the authority provided for in the CIA 
Voluntary Separation Pay Act. Specifically, it establishes 
procedures to conform with the pay-as-you-go provision, section 
252, of the Balanced Budget and Emergency Deficit Control Act, 
by requiring the Director of Central Intelligence to remit to 
the Treasury an amount equal to 15 percent of the final basic 
pay of each employee who, in fiscal year 1998 or fiscal year 
1999, retires voluntarily or who resigns and to whom a 
voluntary separation incentive has been or is to be paid.
      Section 401(a) is identical to section 401 of the House 
bill. Section 401(b) is identical to section 401(b) of the 
Senate amendment. The House bill did not contain a similar 
offset provision.

SEC. 402. VOLUNTEER SERVICE PROGRAM.

      Section 402 authorizes the Director to establish, as a 
demonstration project, a limited volunteer service program for 
fiscal years 1996 through 2001, whereby no more than 50 
retirees can volunteer their services to the CIA to assist the 
Agency in its systematic or mandatory review for 
declassification or downgrading of classified information under 
certain Executive Orders and Public Law 102-526. The provision 
limits expenditures to no more than $100,000.
      This section authorizes the Agency to pay costs 
incidental to the use of the services of volunteers, such as 
training, equipment, lodging, subsistence, equipment and 
supplies. It also ensures that volunteers are covered by 
workers compensation and the Federal Torts Claim Act. Without 
this legislation, the CIA would be unable to pay costs incident 
to the use of gratuitous services provided by volunteers, such 
as training and equipment. The program established under this 
section will be temporary and limited. Section 402 is identical 
to section 402 of the House bill and section 402 of the Senate 
amendment.

SEC. 403. AUTHORITIES OF THE INSPECTOR GENERAL OF THE CENTRAL 
                    INTELLIGENCE AGENCY.

      Section 403(a) of the conference report modifies the CIA 
Inspector General statute to require the IG to report 
violations of Federal law by any person, as opposed to 
violations by officers or employees of the CIA. It also allows 
the reports to go directly from OIG to the Department of 
Justice, rather than through the DCI, although the DCI must 
receive a copy of the report. This is consistent with the 
Inspector General Statute of 1978 and enhances the independence 
of the IG. The conferees understand that the Inspector General 
has agreed to give advanced notice to the DCI and the conferees 
strongly support this agreement. The conferees further 
understand that this advance notice will not be used to prevent 
reports from going to the Department of Justice. Section 403(a) 
is identical to section 403(a) of the Senate amendment. The 
House bill did not contain a similar provision.
      Section 403(b) of the conference report clarifies the CIA 
Inspector General statute to ensure that the identity of an 
employee who has been granted confidentiality can be disclosed 
to the Department of Justice official responsible for 
determining whether a prosecution should be undertaken. Current 
law already provides for this but this provision would clarify 
and simplify the process. Section 403(b) is identical to 
section 403(b) of the Senate amendment. The House bill did not 
contain a similar provision.

                     Title V--Department of Defense

                        intelligence activities

SEC. 501. DEFENSE INTELLIGENCE SENIOR LEVEL POSITIONS.

      Section 501 of the conference report amends section 1604 
of title 10, United States Code, by authorizing the Secretary 
of Defense to establish the Defense Intelligence Senior Level 
(DISL) personnel system for the Defense Intelligence Agency 
(DIA) and the Central Imagery Office (CIO). Section 1604 
currently authorizes the Secretary of Defense to establish 
positions for civilian officers and employees in DIA and CIO. 
The rates of basic pay for these positions are fixed in 
relation to the rates of basic pay provided in the General 
Schedule under section 5332 of title 5. Section 5332, however, 
which limits the grades of employees to GS-15, is insufficient 
for the needs of DIA and CIO.
      In 1991, two Army field activities were transferred to 
DIA. The employees at the Missile and Space Intelligence Center 
and the Armed Forces Medical Intelligence Center are high-level 
technical employees. Their positions do not meet the management 
and program criteria for Senior Executive Service (SES) 
inclusion, but they do exceed the GS-15 criteria. DIA is also 
acquiring the Human Intelligence (HUMINT) resources of the 
Military Services. This functional transfer will add over 1,000 
civilian and military personnel to DIA's rolls, and there may 
be a need to structure at least one senior advisory assignment 
as part of the Defense HUMINT Service (DHS) architecture. 
Additionally, the increased Defense intelligence leadership 
roles of DIA and CIO require increased high level activity in 
technical analysis, liaison and advisory services.
      The primary purpose of DISL positions will be to provide 
technical expertise and advisory services beyond the GS-15 
level established by DIA and CIO. Employees in DISL positions 
will not be responsible for managerial and program oversight, 
which are functions of the SES. DISL positions will include 
Defense Intelligence Senior Technical (DIST) and Defense 
Intelligence Senior Professional (DISP) assignments. These 
positions are classifiable above the DIA and CIO GS-15 level 
but do not involve the organizational or program management 
functions necessary for the Defense Intelligence Senior 
Executive Service.
      DIST positions are those that involve research and 
development; test and evaluation; or substantive analysis, 
liaison, and/or advisory activity focusing on engineering, 
physical sciences, computer science, mathematics, medicine, 
biology, chemistry, or other closely related scientific and 
technical fields; and intelligence disciplines including 
production, collection, and operations in close association 
with the preceding or related activities.
      DISP positions are those that emphasize staff, liaison, 
analytical, advisory, or other activity focusing on 
intelligence, law, finance and accounting, program and budget, 
human resources management, training, information services, 
logistics, and other appropriate support fields.
      DISL positions will provide DIA and CIO with the 
flexibility that is essential to recruit effectively and to 
retain highly competent employees with scientific, technical, 
or other complex skills. This provision allows the Secretary of 
Defense to establish a basic rate of pay that does not exceed 
the rate paid to Executive Level IV. It also authorizes the 
Secretary of Defense to provide to DIA and CIO employees other 
benefits, allowances, incentives, or compensation that 
similarly situated federal employees are eligible to receive 
under title 5, United States Code. Section 501 is identical to 
section 501 of the House bill. The Senate amendment did not 
contain a similar provision.

SEC. 502. COMPARABLE BENEFITS AND ALLOWANCES FOR CIVILIAN AND MILITARY 
                    PERSONNEL ASSIGNED TO DEFENSE INTELLIGENCE 
                    FUNCTIONS OVERSEAS.

      Section 502 of the conference report amends section 1605 
of title 10, United States Code, and section 431 of title 37, 
United States Code, to provide to civilian personnel and 
members of the armed forces serving with the Defense HUMINT 
Service outside the United States benefits and allowances 
comparable to those provided by the Secretary of State to 
officers and employees of the Foreign Service.
      The Secretary of Defense has the authority to provide to 
civilian personnel and members of the armed forces assigned to 
the Defense Attache Offices and the Defense Intelligence Agency 
Liaison Offices outside the United States benefits and 
allowances comparable to those provided by the Secretary of 
State to officers and employees of the Foreign Service. This 
authority was attained in 1983 (Public Law 98-215) because 
travel allowances and related benefits for overseas personnel 
at the Defense Attache Offices and the Defense Intelligence 
Agency Liaison Offices were different from Foreign Service 
personnel assigned overseas.
      With the consolidation of Department of Defense human 
intelligence into the Defense HUMINT Service, the Defense 
Intelligence Agency will be responsible for a significant 
number of employees overseas. Although a number of these 
employees may be assigned to Defense Attache Offices or Defense 
Intelligence Agency Liaison Offices outside the United States, 
there will be some assigned to other overseas locations. Since 
the Agency's authority to provide benefits and allowances to 
overseas employees is limited to the Defense Attache Office and 
the Defense Intelligence Agency Liaison Offices, inequities 
will once again occur. Section 502 ensures comparable benefits 
for civilian and military personnel assigned to the Defense 
HUMINT Service overseas. Section 502 is virtually identical to 
Section 501 of the Senate amendment and section 502 of the 
House bill.

SEC. 503. EXTENSION OF AUTHORITY TO CONDUCT INTELLIGENCE COMMERCIAL 
                    ACTIVITIES.

      Section 503 of the conference report would extend for 
three years, until December 31, 1998, the authority of the 
Secretary of Defense to initiate intelligence commercial 
activities to provide cover security to intelligence collection 
activities undertaken abroad by the Defense Department. This 
authority permits the Secretary to waive compliance with 
certain types of federal laws and regulations pertaining to the 
management and administration of federal entities when he 
determines that compliance by the commercial cover activity 
would create an unacceptable risk of compromise of an 
authorized intelligence collection activity. This authority is 
similar to the authority granted to the Central Intelligence 
Agency and the Federal Bureau of Investigation.
      The Secretary's intelligence commercial cover authority 
was originally enacted as part of the FY 1991 Intelligence 
Authorization Act (Public Law 102-88) August 14, 1991. However, 
the intelligence commercial cover authority did not become 
effective until December 2, 1992, after the statutorily 
required promulgation and submission to Congress of a directive 
from the Secretary governing the implementation of the statute. 
Due to a variety of reasons, including the launching of a plan 
in 1993 to create a new Defense HUMINT Service under which all 
Defense Department human intelligence activities are being 
consolidated, this intelligence commercial activities authority 
has not yet been used, due largely to significant budget cuts 
effected in December 1992. Recently, however, DoD has enhanced 
its HUMINT efforts and is working closely with CIA to develop 
the skills, plans, and infrastructure necessary to effectively 
utilize this authority. Thus, the conference report extends the 
sunset provision to December 31, 1998.
      The Administration's intelligence authorization 
legislative proposal sought repeal of the existing ``sunset'' 
clause, thus making the Secretary's intelligence commercial 
activities authority permanent. Senior officials from both the 
Defense Department and the Central Intelligence Agency 
testified to the continuing and growing need for the Secretary 
to have this authority under certain circumstances to provide 
bona fide commercial cover that can withstand detailed 
investigation by hostile foreign intelligence services as well 
as domestic scrutiny. The conferees agreed to the extension of 
the authority. However, in view of the lack of a record of use 
thus far, Section 503 extends the authority for three years, 
instead of the permanent extension originally sought by the 
Administration. Three years should provide time for the 
development and oversight of a track record on the use of this 
authority without encouraging overuse of it, and particularly 
its more elaborate and sophisticated applications. At the end 
of that time, and based on its oversight of the record, the 
Intelligence Committees can address whether to make this 
authority permanent, extend it for a specific period or allow 
it to lapse. Section 503 is the same as section 503 of the 
House bill. Section 502 of the Senate amendment had extended 
the authority for five years.

SEC. 504. AVAILABILITY OF FUNDS FOR TIER II UAV.

      The Fiscal Year 1995 authorization bill authorized full 
funding of the Defense Department's request for the Tier-2 
Medium Altitude Endurance Unmanned Aerial Vehicle (UAV) 
Advanced Concept Technology Demonstration. The Fiscal Year 1995 
defense appropriations bill included appropriations $20 million 
above the amount authorized for the program. As these 
additional funds were not specifically authorized, as required 
by Section 504 of the National Security Act of 1947, the 
Department of Defense could not spend them. To remedy this 
problem, Section 504 of the conference report specifically 
authorizes an additional $20 million for this program. Section 
504 is identical to section 504 of the House bill. The Senate 
bill did not contain a similar provision.

SEC. 505. MILITARY DEPARTMENT CIVILIAN INTELLIGENCE PERSONNEL 
                    MANAGEMENT SYSTEM.

      Section 505 of the conference report authorizes the 
Secretary of Defense to send civilian employees in the Military 
Departments' Civilian Intelligence Personnel Management System 
(CIPMS) to be students at accredited professional, technical, 
and other institutions of higher learning for training at the 
undergraduate level. This authority would be similar to that 
already granted to the Defense Intelligence Agency (DIA) in 10 
U.S.C. section 1608 (Public Law 101-93, title V, section 
507(a)(1), Nov. 30, 1989, 103 Stat. 1710) and the National 
Security Agency (NSA) in 50 U.S.C. 402 note. The purpose of the 
new section is to establish an undergraduate training program, 
including training which may lead to the baccalaureate degree, 
to facilitate the recruitment of individuals, particularly 
minority, women, and handicapped high school students with a 
demonstrated capability to develop skills critical to the 
intelligence missions of the Military Departments in areas such 
as computer science, engineering, foreign language, and area 
studies. In exchange for this financial assistance from the 
respective CIPMS organization, the student participant would 
undertake an obligation to work for a period of one-and-one 
half years for each year or partial year of schooling.
      The missions of the intelligence entities of the United 
States Government demand employees of extraordinary aptitude 
and strong undergraduate training. These same entities must 
compete with a private sector--capable of offering more 
favorable compensation arrangements--that in most instances has 
been able to outbid the USG in terms of attracting qualified 
minority candidates. Statistics in recent years indicate that 
the success of the Military Departments' CIPMS to attract 
minority group candidates has been marginal.
      This proposal is designed to enhance the capabilities of 
the intelligence elements of the Military Departments to: (i) 
ensure equal employment opportunity with their civilian ranks 
through affirmative action; (ii) develop and retain personnel 
trained in the skills essential to the effective performance of 
their intelligence mission; and, (iii) compete on equal footing 
with other Intelligence Community entities for personnel with 
critical skills. Section 505 is identical to section 503 of the 
Senate amendment. The House bill did not contain a similar 
provision.

SEC. 506. ENHANCEMENT OF CAPABILITIES OF CERTAIN ARMY FACILITIES.

      Section 506 of the conference report is intended to 
assist the Department of the Army as it assumes executive agent 
responsibility for the Bad Aibling, Germany and Menwith Hill, 
England stations. Specifically, this provision would permit the 
Department of the Army to use up to $2 million of appropriated 
operations and maintenance funds to rectify infrastructure and 
quality of life problems at Menwith Hill and Bad Aibling. At 
the present time, the Army is prohibited by statute from using 
appropriated funds to support certain activities. Section 506 
was added to the Senate amendment in floor action. The House 
bill did not include a similar provision.

               Title VI--Federal Bureau of Investigation

SEC. 601. DISCLOSURE OF INFORMATION AND CONSUMER REPORTS TO FBI FOR 
                    COUNTERINTELLIGENCE PURPOSES.

      Section 601 of the conference report would amend the Fair 
Credit Reporting Act (FCRA) (15 U.S.C. 1681f) to grant the 
Federal Bureau of Investigation (FBI) access to certain 
information in consumer credit records in counterintelligence 
investigations.
      A similar provision was included in the Intelligence 
Authorization Act for FY 1995 as reported by the Senate Select 
Committee on Intelligence. The provision was dropped in 
conference at the request of the House Committee on Banking, 
Finance, and Urban Affairs upon assurances that it would pursue 
similar legislation. The U.S. House of Representatives 
ultimately adopted H.R. 5143 which was substantially the same 
as section 601 of this Act. The bill was never acted upon by 
the Senate during the last Congress. The conferees have 
recently received a letter from the Chairman of the House 
Committee on Banking and Financial Services in support of this 
provision. The language of that letter is as follows:

                          House of Representatives,
               Committee on Banking and Financial Services,
                                  Washington, DC, October 11, 1995.
Hon. Newt Gingrich,
Speaker, House of Representatives,
Washington, DC.
      Dear Mr. Speaker: I am writing concerning H.R. 1655, the 
``Intelligence Authorization Act for Fiscal Year 1996'' on 
which the House will soon appoint conferees to reconcile 
differences with the Senate. Section 601 of H.R. 1655, as added 
by the Senate amends the Fair Credit Reporting Act (FCRA) and 
thereby falls under the jurisdiction of the Committee on 
Banking and Financial Services, as provided for under Rule X of 
the Rules of the House of Representatives.
      Section 601 of the Senate reported bill amends the FCRA 
to allow the FBI greater access to consumer reports when 
investigating foreign terrorism. The FCRA imposes certain 
obligations and liabilities on consumer reporting agencies in 
assembling, evaluating and maintaining consumer credit reports. 
Section 601 amends the FCRA to grant authority to the FBI to 
obtain certain information from a consumer report on a 
suspected terrorist without a court order.
      The section is carefully crafted to protect consumers' 
rights to privacy while allowing law enforcement agencies to 
obtain necessary information in order to conduct authorized 
foreign counterintelligence investigations. This issue was 
considered by the Banking Committee in the last several 
Congresses and a provision similar to section 601 was passed by 
the full House in the 103rd Congress. In addition, Banking 
Committee conferees were appointed by the House to the 
Intelligence Authorization conference (H.R. 4299) last Congress 
on this issue. Given past precedent of the House and the fact 
that the language of this section was developed in consultation 
with the House Banking Committee.
      I would strongly urge the House conferees to recede to 
the Senate on Section 601 or to consult with the Banking 
Committee in the event of any substantive modifications.
            Sincerely,
                                          James A. Leach, Chairman.

      This provision would provide a limited expansion of the 
FBI's authority in counterintelligence investigations 
(including terrorism investigations), to obtain a consumer 
credit report with a court order. In addition, it would allow 
the FBI to use a ``National Security Letter,'' i.e. a written 
certification by the FBI Director or the Director's designee, 
to obtain from a consumer credit agency the names and addresses 
of all financial institutions at which a consumer maintains an 
account, as well as certain identifying information.
      Under current law, when appropriate legal standards are 
met, FBI is able to obtain mandatory access to credit records 
by means of a court order or grand jury subpoena (see the FCRA, 
15 U.S.C. 168b(1)), but such an option is available to the FBI 
only after a counterintelligence investigation has been 
converted to a criminal investigation or proceeding. Many 
counterintelligence investigations never reach the criminal 
stage but proceed for intelligence purposes or are handled in 
diplomatic channels.
      In addition, FBI presently has authority to use the 
National Security Letter mechanism to obtain two types of 
records; financial institution records (under the Right to 
Financial Privacy Act, 12 U.S.C. 3414(a)(5)) and telephone 
subscriber and toll billing information (under the Electronic 
Communications Privacy Act, 18 U.S.C. 2709). Expansion of this 
extraordinary authority is not taken lightly by the conferees, 
but the conferees have concluded that in this instance the need 
is genuine, the threshold for use is sufficiently rigorous, 
and, given the safeguards built in to the legislation, the 
threat to privacy is minimized.
      Under a provision of the Right to Financial Privacy Act 
(RFPA) (12 U.S.C. 3414(a)(5)), the FBI is entitled to obtain 
financial records from financial institutions, such as banks 
and credit card companies, by means of a National Security 
Letter when the Director or the Director's designee certifies 
in writing to the financial institution that such records are 
sought for foreign counterintelligence purposes and that there 
are specific and articulable facts giving reason to believe 
that the customer or entity whose records are sought is a 
foreign power or an agent of a foreign power, as those terms 
are defined in section 101 of the Foreign Intelligence 
Surveillance Act of 1978 (50 U.S.C. 1801 et seq.).
      The FBI considers such access to financial records 
crucial to trace the activities of suspected spies or 
terrorists. The need to follow financial dealings in 
counterintelligence investigations has grown as foreign 
intelligence services increasingly operate under non-official 
cover, i.e., pose as business entities or executives, and as 
foreign intelligence service activity has focused increasingly 
on U.S. economic information.
      FBI's right of access under the Right of Financial 
Privacy Act cannot be effectively used, however, until the FBI 
discovers which financial institutions are being utilized by 
the subject of a counterintelligence investigation. Consumer 
reports maintained by credit bureaus are a ready source of such 
information, but, although such report are readily available to 
the private sector, they are not available to FBI 
counterintelligence investigators. Under section 608 of the 
Fair Credit Reporting Act, without a court order, FBI 
counterintelligence officials, like other government agencies, 
are entitled to obtain only limited information from credit 
reporting agencies--the name, address, former addresses, places 
of employment, and former places of employment, of a person--
and this information can be obtained only with the consent of 
the credit bureau.
      FBI has made a specific showing to the conferees that the 
effort to identify financial institutions in order to make use 
of FBI authority under the Right to Financial Privacy Act can 
not only be time-consuming and resource-intensive, but can also 
require the use of investigative techniques--such as physical 
and electronic surveillance, review of mail covers, and 
canvassing of all banks in an area--that would appear to be 
more intrusive than the review of credit reports. FBI has 
offered a number of specific examples in which lengthy, 
intensive and intrusive surveillance activity was required to 
identify financial institutions doing business with a suspected 
spy or terrorist.
      Section 601 of the instant legislation would amend FCRA 
by adding a new section 624, consisting of 13 paragraphs.
      Paragraph 624(a) of the amended FCRA requires a consumer 
reporting agency to furnish to the FBI the names and addresses 
of all financial institutions at which a consumer maintains or 
has maintained an account, to the extent the agency has that 
information, when presented with a written request signed by 
the FBI Director or the Director's designee, which certifies 
compliance with the subsection. The FBI Director or the 
Director's designee may make such certification only if the 
Director or the Director's designee has determined in writing 
that such records are necessary for the conduct of an 
authorized foreign counterintelligence investigation and that 
there are specific and articulable facts giving reason to 
believe that the person whose consumer report is sought is a 
foreign power, a non-U.S. official of a foreign power, or an 
agent of a foreign power (as defined in Section 101 of the 
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 
et seq.)) and is engaged in terrorism or other criminal 
clandestine intelligence activities.
      The requirement that there be specific and articulable 
facts giving reasons to believe that a U.S. person is an agent 
of a foreign power before FBI can obtain access to a consumer 
report is consistent with the standards in the Right to 
Financial Privacy Act, U.S.C. 3414(a)(5)(A), and the Electronic 
Communications Privacy Act, 18 U.S.C. 2709(b).
      However, in contrast to those statutes, the conferees 
have drafted the FCRA certification requirement to provide that 
the FBI demand submitted to the consumer reporting agency make 
reference to the statutory provision without providing the 
agency with a written certification that the subject of the 
consumer report is believed to be an agent of a foreign power. 
FBI would still be required to record in writing its 
determination regarding the subject, and the credit reporting 
agency would be able to draw the necessary conclusion, but the 
conferees believe that this approach would reduce the risk of 
harm from the certification process itself to the person under 
investigation. A similar approach is taken in paragraph 624(b)) 
described below.
      Section 605 of the FCRA, 15 U.S.C. 1681c, defines 
``consumer report'' in a manner that prohibits the 
dissemination by credit reporting agencies of certain older 
information except in limited circumstances. None of these 
excepted circumstances would apply to FBI access under proposed 
FCRA paragraph 624(a) (or proposed FCRA paragraph 624(b)). 
Accordingly, FBI access would be limited to ``consumer 
reports'' as defined in section 605.
      The term ``an authorized foreign counterintelligence 
investigation'' includes those FBI investigations conducted for 
the purpose of countering international terrorist activities as 
well as those FBI investigations conducted for the purpose of 
countering the intelligence activities of foreign powers. Both 
types of investigations are conducted under the auspices of the 
FBI's Intelligence Division, headed by an FBI Assistant 
Director.
      As is the case with the FBI's existing National Security 
Letter authority under the Right to Financial Privacy Act (see 
Senate Report 99-307, May 21, 1986, p. 16; House Report 99-952, 
October 1, 1986, p. 23), the conferees expect that, if the 
Director of the FBI delegates this function under paragraph 
624(a), as well as under paragraph 624(b) discussed below, the 
Director will delegate it no further than the level of FBI 
Deputy Assistant Director. (There are presently two Deputy 
Assistant Directors for the National Security Division, one 
with primary responsibility for counterintelligence 
investigations and the other with primary responsibility for 
international terrorism investigations.)
      Paragraph 624(b) would give the FBI mandatory access to 
the consumer identifying information--name, address, former 
addresses, places of employment, or former places of 
employment--that it may obtain under current section 608 only 
with the consent of the credit reporting agency. A consumer 
reporting agency would be required signed by the FBI Director 
or the Director's designee, which certifies compliance with the 
subsection. The Director or the Director's designee may make 
such a certification only if the Director or the Director's 
designee has determined in writing that such information is 
necessary to the conduct of an authorized foreign 
counterintelligence investigation and that there is information 
giving reason to believe that the person about whom the 
information is sought has been or is about to be, in contact 
with a foreign power or an agent of a foreign power, as defined 
in Section 101 of the Foreign Intelligence Surveillance Act of 
1978 (50 U.S.C. 1801 et. seq.).
      FBI officials have indicated that they seek mandatory 
access to this identifying information in order to determine if 
a person who has been in contact with a foreign power or agent 
is a government or industry employee who might have access to 
sensitive information of interest to a foreign intelligence 
service. Accordingly, the conferees have drafted this provision 
to require that such limited information can be provided only 
in circumstances where the consumer has been or is about to be 
in contact with the foreign power or agent.
      The conferees have also drafted paragraphs 624(a) and 
624(b) in a manner intended to make clear the conferees' intent 
that the FBI may use this authority to obtain this information 
only as regard those persons who either are a foreign power or 
agent thereof or have been or will be in contact with a foreign 
power or agent. Although the consumer records of another 
person, such as a relative or friend of an agent of a foreign 
power, or identifying information respecting a relative or 
friend of a person in contact with an agent of a foreign power, 
may be of interest to FBI counterintelligence investigators, 
they are not subject to access under paragraphs 624(a) and 
624(b).
      It is not the intent of the conferees to require any 
credit reporting agency to gather credit or identifying 
information on a person for the purpose of fulfilling an FBI 
request under paragraphs 624(a) and 624(b). A credit reporting 
agency's obligation under these provisions is to provide 
information responsive to the FBI's request that the credit 
reporting agency already has in its possession.
      Paragraph 624(c) provides that, if requested in writing 
by the FBI, a court may issue an order ex parte directing a 
consumer reporting agency to furnish a consumer report to the 
FBI upon a showing in camera that the report is necessary for 
the conduct of an authorized foreign counterintelligence 
investigation and that there are specific and articulable facts 
giving reason to believe the consumer is an agent of a foreign 
power and is engaged in international terrorism or clandestine 
intelligence activities that may involve a crime.
      Paragraph 624(d) provides that no consumer reporting 
agency or officer, employee, or agent of such institution shall 
disclose to any person, other than those officers, employees or 
agents of such institution necessary to fulfill the requirement 
to disclose information to the FBI under subsection 624, that 
the FBI has sought or obtained a consumer report or financial 
institution, or identifying information respecting any consumer 
under paragraphs 624, nor shall such agency, officer, employee, 
or agent include in any consumer report any information that 
would indicate that the FBI has sought or obtained such 
information. The prohibition against including such information 
in a consumer report is intended to clarify the obligations of 
the consumer reporting agencies. It is not intended to preclude 
employees of consumer reporting agencies from complying with 
company regulations or policies concerning the reporting of 
information, nor to preclude their complying with a subpoena 
for such information issued pursuant to appropriate legal 
authority.
      Paragraph 624(d) departs from the parallel provision of 
the RFPA by clarifying that disclosure is permitted within the 
contacted institution to the extent necessary to fulfill the 
FBI request. The conferees have not concluded that, or 
otherwise taken a position whether, disclosure for such purpose 
would be forbidden by the RFPA; indeed, practicalities would 
dictate that the provision not be interpreted to exclude such 
disclosure. However, the conferees believe that clarification 
of the obligation for purposes of the FCRA is desirable.
      Paragraph 624(e) requires the FBI, subject to the 
availability of appropriations, to pay to the consumer 
reporting agency assembling or providing credit records a fee 
in accordance with FCRA procedures for reimbursement for costs 
reasonably necessary and which have been directly incurred in 
searching for, reproducing, or transporting books, papers, 
records, or other data required or requested to be produced 
under section 624. The FBI informs the Committee that such 
reports are commercially available for approximately $7 to $25 
and that FBI could expect to pay fees in approximately that 
range. FBI officials have advised the conferees that the costs 
of such reports would be easily recouped from the savings 
afforded by the reduced need for other investigative techniques 
aimed at obtaining the same information.
      Paragraph 624(f) prohibits the FBI from disseminating 
information obtained pursuant to section 624 outside the FBI, 
except as may be necessary for the approval of conduct of a 
foreign counterintelligence investigation, or, where the 
information concerns military service personnel subject to the 
Uniform Code of Military Justice, to appropriate investigation 
authorities in the military department concerned as may be 
necessary for the conduct of a joint foreign 
counterintelligence investigation with the FBI. Since the 
military departments have concurrent jurisdiction to 
investigate and prosecute military personnel subject to the 
Uniform Code of Military Justice, paragraph 624(g) permits the 
FBI to disseminate consumer credit reports it obtains pursuant 
to this section to appropriate military investigative 
authorities where a foreign counterintelligence investigation 
involves a military service person and is being conducted 
jointly with the FBI.
      Paragraph 624(g) provides that nothing in section 624 
shall be construed to prohibit information from being furnished 
by the FBI pursuant to subpoena or court order, or in 
connection with judicial or administrative proceeding to 
enforce the provisions of the FCRA. The paragraph further 
provides that nothing in section 624 shall be construed to 
authorize or permit the withholding of information from the 
Congress.
      Paragraph 634(h) provides that on a semiannual basis the 
Attorney General shall fully inform the Permanent Select 
Committee on Intelligence and the Committee on Banking, 
Finance, and Urban Affairs of the U.S. House of 
Representatives, and the Select Committee on Intelligence and 
the Committee on Banking, Housing, and Urban Affairs of the 
U.S. Senate concerning all requests made pursuant to section 
624.
      Semiannual reports are required to be submitted to the 
intelligence committees on (1) use of FBI's mandatory access 
provision of the RFPA by section 3414(a)(5)(C) of title 15, 
United States Code; and (2) use of the FBI's 
counterintelligence authority, under the Electronic Privacy 
Communications Act of 1986, to access telephone subscriber and 
toll billing information by section 2709(e) of title 18, United 
States Code. The conferees expect the reports required by FCRA 
paragraph 624(h) to match the level of detail included in these 
reports, i.e., a breakdown by quarter, by number of requests, 
by number or persons or organizations subject to requests, and 
by U.S. persons and organizations and non-U.S. persons and 
organizations.
      Paragraphs 624(i) through 624(m) parallel the enforcement 
provisions of the Right to Financial Privacy Act, 12 U.S.C. 
3417 and 3418.
      Paragraph 624(i) establishes civil penalties for access 
or disclosure by an agency or department of the United States 
in violation of section 624. Damages, costs and attorney fees 
would be awarded to the person to whom the consumer reports 
related in the event of a violation.
      Paragraph 624(j) provides that whenever a court 
determines that any agency or department of the United States 
has violated any provision of section 624 and that the 
circumstances surrounding the violation raise questions of 
whether an officer or employee of the agency or department 
acted willfully or intentionally with respect to the violation, 
the agency or department shall promptly initiate a proceeding 
to determine whether disciplinary action is warranted against 
the officer or employee who was responsible for the violation.
      Paragraph 624(k) provides that any credit reporting 
institution or agent or employee thereof making a disclosure of 
credit records pursuant to section 624 in good-faith reliance 
upon a certificate by the FBI pursuant to the provisions of 
section 624 shall not be liable to any person for such 
disclosure under title 15, the constitution of any State, or 
any law or regulation of any State or any political subdivision 
of any State.
      Paragraph 624(l) provides that the remedies and sanctions 
set forth in section 624 shall be the only judicial remedies 
and sanctions for violations of the section.
      Paragraph 624(m) provides that in addition to any other 
remedy contained in section 624, injunctive relief shall be 
available to require that the procedures of the section are 
complied with and that in the event of any successful action, 
costs together with reasonable attorney's fees, as determined 
by the court, may be recovered.
      Section 601 is identical to section 601 of the Senate 
amendment. The House bill did not contain a similar provision.

                    Title VII--Technical Amendments

SEC. 701. CLARIFICATION WITH RESPECT TO PAY FOR DIRECTOR OR DEPUTY 
                    DIRECTOR OF CENTRAL INTELLIGENCE APPOINTED FROM 
                    COMMISSIONED OFFICERS OF THE ARMED FORCES.

      Section 701 of the conference report amends section 
102(c)(3)(C) of the National Security Act of 1947 to make clear 
that a retired military officer appointed as Director or Deputy 
Director of Central Intelligence can receive compensation at 
the appropriate level of the Executive Schedule under 5 U.S.C. 
Sec. 5313 (Director) or 5 U.S.C. Sec. 5314 (Deputy Director). 
This was clearly the intent of the drafters of this provision. 
The conferees are aware of the restriction on compensation that 
applies to active duty military personnel appointed as DCI or 
DDCI, and in no way wish to change this restriction. Section 
701 is similar to Section 601 in the House bill and Section 701 
in the Senate amendment.

SEC. 702. CHANGE OF DESIGNATION OF CIA OFFICE OF SECURITY.

      Section 702 of the conference report amends the CIA 
Information Act of 1984 to reflect the recent reorganization of 
the CIA Office of Security into the Office of Personnel 
Security and the Office of Security Operations. The amendment 
will ensure that the Office of Personnel Security, where the 
records intended to be subject to the Act are kept, will 
continue to receive the benefit of the Act's exception from 
search and review under the Freedom of Information Act. Section 
701 is similar to Section 602 in the House bill and Section 702 
in the Senate amendment.

            Provisions Not Included in the Conference Report

      The Senate amendment included, at Section 404, a 
requirement for an annual report on liaison relationships. 
While the Conferees are committed to ensuring that the 
oversight committees are appropriately informed on liaison 
relationships, they do not believe that a statutory reporting 
requirement is the best way to achieve that result. 
Consequently, the conferees agreed to delete section 404.
                From the Permanent Select Committee on 
                Intelligence, for consideration of the House 
                bill, and the Senate amendment, and 
                modifications committed to conference:
                                   Larry Combest,
                                   R.K. Dornan,
                                   Bill Young,
                                   James V. Hansen,
                                   Jerry Lewis,
                                   Porter J. Goss,
                                   Bud Shuster,
                                   Bill McCollum,
                                   Michael N. Castle,
                                   Norman Dicks,
                                   Bill Richardson,
                                   Julian C. Dixon,
                                   Robert G. Torricelli,
                                   Ron Coleman,
                                   David E. Skaggs,
                                   Nancy Pelosi,

                As additional conferees from the Committee on 
                National Security, for consideration of defense 
                tactical intelligence and related activities:
                                   Floyd Spence,
                                   Bob Stump,

                As additional conferees from the Committee on 
                International Relations, for consideration of 
                section 303 of the House bill, and section 303 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Benjamin A. Gilman,
                                   Christopher Smith,
                                   Howard L. Berman,
                                 Managers on the Part of the House.

                                   Arlen Specter,
                                   Richard G. Lugar,
                                   Richard Shelby,
                                   Mike DeWine,
                                   Jon Kyl,
                                   Jim Inhofe,
                                   Kay Bailey Hutchison,
                                   Connie Mack,
                                   Bill Cohen,
                                   Strom Thurmond,
                                   Robert Kerrey,
                                   John Glenn,
                                   Richard H. Bryan,
                                   Bob Graham,
                                   John F. Kerry,
                                   Max Baucus,
                                   J. Bennett Johnston,
                                   Charles Robb,
                                   Sam Nunn,
                                Managers on the Part of the Senate.