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107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-328

======================================================================



 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2002

                                _______
                                

                December 6, 2001.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 2883]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2883), to authorize appropriations for fiscal year 2002 for 
intelligence and intelligence-related activities of the United 
States Government, the Community Management Account, and the 
Central Intelligence Agency Retirement and Disability System, 
and for other purposes, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the 
``Intelligence Authorization Act for Fiscal Year 2002''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--INTELLIGENCE ACTIVITIES

Sec. 101. Authorization of appropriations.
Sec. 102. Classified schedule of authorizations.
Sec. 103. Personnel ceiling adjustments.
Sec. 104. Intelligence Community Management Account.
Sec. 105. Codification of the Coast Guard as an element of the 
          intelligence community.

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

Sec. 201. Authorization of appropriations.

                      TITLE III--GENERAL PROVISIONS

Sec. 301. Increase in employee compensation and benefits authorized by 
          law.
Sec. 302. Restriction on conduct of intelligence activities.
Sec. 303. Sense of Congress on intelligence community contracting.
Sec. 304. Requirements for lodging allowances in intelligence community 
          assignment program benefits.
Sec. 305. Modification of reporting requirements for significant 
          anticipated intelligence activities and significant 
          intelligence failures.
Sec. 306. Report on implementation of recommendations of the National 
          Commission on Terrorism and other entities.
Sec. 307. Judicial review under Foreign Narcotics Kingpin Designation 
          Act.
Sec. 308. Modification of positions requiring consultation with Director 
          of Central Intelligence in appointments.
Sec. 309. Modification of authorities for protection of intelligence 
          community employees who report urgent concerns to Congress.
Sec. 310. Review of protections against the unauthorized disclosure of 
          classified information.
Sec. 311. One-year suspension of reorganization of Diplomatic 
          Telecommunications Service Program Office.
Sec. 312. Presidential approval and submission to Congress of National 
          Counterintelligence Strategy and National Threat 
          Identification and Prioritization Assessments.
Sec. 313. Report on alien terrorist removal proceedings.
Sec. 314. Technical amendments.

                  TITLE IV--CENTRAL INTELLIGENCE AGENCY

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

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

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

                    TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2002 for the conduct of the intelligence and intelligence-
related activities of the following elements of the United 
States Government:
            (1) The Central Intelligence Agency.
            (2) The Department of Defense.
            (3) The Defense Intelligence Agency.
            (4) The National Security Agency.
            (5) The Department of the Army, the Department of 
        the Navy, and the Department of the Air Force.
            (6) The Department of State.
            (7) The Department of the Treasury.
            (8) The Department of Energy.
            (9) The Federal Bureau of Investigation.
            (10) The National Reconnaissance Office.
            (11) The National Imagery and Mapping Agency.
            (12) The Coast Guard.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

    (a) Specifications of Amounts and Personnel Ceilings.--The 
amounts authorized to be appropriated under section 101, and 
the authorized personnel ceilings as of September 30, 2002, for 
the conduct of the intelligence and intelligence-related 
activities of the elements listed in such section, are those 
specified in the classified Schedule of Authorizations prepared 
to accompany the conference report on the bill H.R. 2883 of the 
One Hundred Seventh Congress.
    (b) Availability of Classified Schedule of 
Authorizations.--The Schedule of Authorizations shall be made 
available to the Committees on Appropriations of the Senate and 
House of Representatives and to the President. The President 
shall provide for suitable distribution of the Schedule, or of 
appropriate portions of the Schedule, within the executive 
branch.

SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

    (a) Authority for Adjustments.--With the approval of the 
Director of the Office of Management and Budget, the Director 
of Central Intelligence may authorize employment of civilian 
personnel in excess of the number authorized for fiscal year 
2002 under section 102 when the Director of Central 
Intelligence determines that such action is necessary to the 
performance of important intelligence functions, except that 
the number of personnel employed in excess of the number 
authorized under such section may not, for any element of the 
intelligence community, exceed 2 percent of the number of 
civilian personnel authorized under such section for such 
element.
    (b) Notice to Intelligence Committees.--The Director of 
Central Intelligence shall notify promptly the Permanent Select 
Committee on Intelligence of the House of Representatives and 
the Select Committee on Intelligence of the Senate whenever the 
Director exercises the authority granted by this section.

SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

    (a) Authorization of Appropriations.--There is authorized 
to be appropriated for the Community Management Account of the 
Director of Central Intelligence for fiscal year 2002 the sum 
of $200,276,000. Within such amount, funds identified in the 
classified Schedule of Authorizations referred to in section 
102(a) for the advanced research and development committee 
shall remain available until September 30, 2003.
    (b) Authorized Personnel Levels.--The elements within the 
Intelligence Community Management Account of the Director of 
Central Intelligence are authorized 343 full-time personnel as 
of September 30, 2002. Personnel serving in such elements may 
be permanent employees of the Intelligence Community Management 
Account or personnel detailed from other elements of the United 
States Government.
    (c) Classified Authorizations.--
            (1) Authorization of appropriations.--In addition 
        to amounts authorized to be appropriated for the 
        Intelligence Community Management Account by subsection 
        (a), there are also authorized to be appropriated for 
        the Intelligence Community Management Account for 
        fiscal year 2002 such additional amounts as are 
        specified in the classified Schedule of Authorizations 
        referred to in section 102(a). Such additional amounts 
        shall remain available until September 30, 2003.
            (2) Authorization of personnel.--In addition to the 
        personnel authorized by subsection (b) for elements of 
        the Intelligence Community Management Account as of 
        September 30, 2002, there are hereby authorized such 
        additional personnel for such elements as of that date 
        as are specified in the classified Schedule of Authorizations. 
    (d) Reimbursement.--Except as provided in section 113 of 
the National Security Act of 1947 (50 U.S.C. 404h), during 
fiscal year 2002 any officer or employee of the United States 
or a member of the Armed Forces who is detailed to the staff of 
the Intelligence Community Management Account from another 
element of the United States Government shall be detailed on a 
reimbursable basis, except that any such officer, employee, or 
member may be detailed on a nonreimbursable basis for a period 
of less than one year for the performance of temporary 
functions as required by the Director of Central Intelligence.
    (e) National Drug Intelligence Center.--
            (1) In general.--Of the amount authorized to be 
        appropriated in subsection (a), $44,000,000 shall be 
        available for the National Drug Intelligence Center. 
        Within such amount, funds provided for research, 
        development, testing, and evaluation purposes shall 
        remain available until September 30, 2003, and funds 
        provided for procurement purposes shall remain 
        available until September 30, 2004.
            (2) Transfer of funds.--The Director of Central 
        Intelligence shall transfer to the Attorney General 
        funds available for the National Drug Intelligence 
        Center under paragraph (1). The Attorney General shall 
        utilize funds so transferred for the activities of the 
        National Drug Intelligence Center.
            (3) Limitation.--Amounts available for the National 
        Drug Intelligence Center may not be used in 
        contravention of the provisions of section 103(d)(1) of 
        the National Security Act of 1947 (50 U.S.C. 403-
        3(d)(1)).
            (4) Authority.--Notwithstanding any other provision 
        of law, the Attorney General shall retain full 
        authority over the operations of the National Drug 
        Intelligence Center.

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

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

 TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for the Central 
Intelligence Agency Retirement and Disability Fund for fiscal 
year 2002 the sum of $212,000,000.

                     TITLE III--GENERAL PROVISIONS

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

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

SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Requirement.--The Attorney General shall, in 
consultation with the Secretary of Defense, Secretary of State, 
Secretary of Energy, Director of Central Intelligence, and 
heads of such other departments, agencies, and entities of the 
United States Government as the Attorney General considers 
appropriate, carry out a comprehensive review of current 
protections against the unauthorized disclosure of classified 
information, including--
            (1) any mechanisms available under civil or 
        criminal law, or under regulation, to detect the 
        unauthorized disclosure of such information; and
            (2) any sanctions available under civil or criminal 
        law, or under regulation, to deter and punish the 
        unauthorized disclosure of such information.
    (b) Particular Considerations.--In carrying out the review 
required by subsection (a), the Attorney General shall 
consider, in particular--
            (1) whether the administrative regulations and 
        practices of the intelligence community are adequate, 
        in light of the particular requirements of the 
        intelligence community, to protect against the 
        unauthorized disclosure of classified information; and
            (2) whether recent developments in technology, and 
        anticipated developments in technology, necessitate 
        particular modifications of current protections against 
        the unauthorized disclosure of classified information 
        in order to further protect against the unauthorized 
        disclosure of such information.
    (c) Report.--(1) Not later than May 1, 2002, the Attorney 
General shall submit to Congress a report on the review carried 
out under subsection (a). The report shall include the 
following:
            (A) A comprehensive description of the review, 
        including the findings of the Attorney General as a 
        result of the review.
            (B) An assessment of the efficacy and adequacy of 
        current laws and regulations against the unauthorized 
        disclosure of classified information, including whether 
        or not modifications of such laws or regulations, or 
        additional laws or regulations, are advisable in order 
        to further protect against the unauthorized disclosure 
        of such information.
            (C) Any recommendations for legislative or 
        administrative action that the Attorney General 
        considers appropriate, including a proposed draft for 
        any such action, and a comprehensive analysis of 
        the Constitutional and legal ramifications of any such 
        action. 
    (2) The report shall be submitted in unclassified form, but 
may include a classified annex.

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

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

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

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

SEC. 313. REPORT ON ALIEN TERRORIST REMOVAL PROCEEDINGS.

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

SEC. 314. TECHNICAL AMENDMENTS.

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

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

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

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

SEC. 401. MODIFICATIONS OF CENTRAL SERVICES PROGRAM.

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

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

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

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

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

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

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

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                   Bob Graham,
                                   John D. Rockefeller IV,
                                   Dianne Feinstein,
                                   Ron Wyden,
                                   Richard Durbin,
                                   Evan Bayh,
                                   John Edwards,
                                   Barbara Mikulski,
                                   Richard Shelby,
                                   Jon Kyl,
                                   James Inhofe,
                                   Orrin G. Hatch,
                                   Pat Roberts,
                                   Mike DeWine,
                                   Fred Thompson,
                                   Richard G. Lugar,
                                Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

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

                    Title I--Intelligence Activities

               SEC. 101. AUTHORIZATION OF APPROPRIATIONS

      Section 101 of the conference report lists the 
departments, agencies, and other elements of the United States 
Government for whose intelligence and intelligence-related 
activities the Act authorizes appropriations for fiscal year 
2001. Section 101 is identical to section 101 of the House bill 
and section 101 of the Senate amendment, except for the 
addition of the Coast Guard, see section 105, infra.

             SEC. 102 CLASSIFIED SCHEDULE OF AUTHORIZATIONS

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

                SEC. 103. PERSONNEL CEILING ADJUSTMENTS

      Section 103 of the conference report authorizes the 
Director of Central Intelligence, with the approval of the 
Director of the Office of Management and Budget, in fiscal year 
2002 to authorize employment of civilian personnel in excess of 
the personnel ceilings applicable to the components of the 
Intelligence Community under section 102 by an amount not too 
exceed two percent of the total of the ceilings applicable 
under section 102. The Director of Central Intelligence may 
exercise this authority only if necessary to the performance of 
important intelligence functions. Any exercise of this 
authority must be reported to the intelligence committees of 
the Congress.
      The managers emphasize that the authority conferred by 
section 103 is not intended to permit wholesale increases in 
personnel strength in any intelligence component. Rather, the 
section provides the Director of Central Intelligence 
with flexibility to adjust personnel levels temporarily for 
contingencies and for overages caused by an imbalance between hiring of 
new employees and attrition of current employees. The managers do not 
expect the Director of Central Intelligence to allow heads of 
intelligence components to plan to exceed levels set in the Schedule of 
Authorizations except for the satisfaction of clearly identified hiring 
needs that are consistent with the authorization of personnel strengths 
in this bill. In no case is this authority to be used to provide for 
positions denied by this bill. Section 103 is identical to section 103 
of the House bill and section 103 of the Senate amendment.

          sec. 104. intelligence community management account

      Section 104 of the conference report authorizes 
appropriations for the Community Management Account (CMA) of 
the Director of Central Intelligence (DCI) and sets the 
personnel end-strength for the Intelligence Community 
management staff for fiscal year 2002.
      Subsection (a) authorizes appropriations of $200,276,000 
for fiscal year 2002 for the activities of the CMA of the DCI.
      Subsection (b) authorizes 343 full-time personnel for the 
Community Management Staff for fiscal year 2002 and provides 
that such personnel may be permanent employees of the Staff or 
detailed from various elements of the United States Government.
      Subsection (c) authorizes additional appropriations and 
personnel for the CMA as specified in the classified Schedule 
of Authorizations and permits these additional amounts to 
remain available through September 30, 2003.
      Subsection (d) requires that, except as provided in 
Section 113 of the National Security Act of 1947, personnel 
from another element of the United States Government be 
detailed to an element of the CMA on a reimbursable basis, or 
for temporary situations of less than one year on a non-
reimbursable basis.
      Subsection (e) authorizes $44,000,000 of the amount 
authorized in subsection (a) to be made available for the 
National Drug Intelligence Center (NDIC). Subsection (e) 
requires the DCI to transfer these funds to the Department of 
Justice to be used for NDIC activities under the authority of 
the Attorney General and subject to section 103(d)(1) of the 
National Security Act. Subsection (e) is similar to subsection 
(e) of the House bill and subsection (e) of the Senate 
amendment.
      The managers note that since Fiscal Year 1997 the 
Community Management Account has included authorization for 
appropriations for the National Drug Intelligence Center 
(NDIC). The committees periodically have expressed concern 
about the effectiveness of NDIC and its ability to fulfill the 
role for which it was created. The managers are encouraged by 
the NDIC's recent performance and by the refocused role for the 
organization. The conferees request that the Director of the 
NDIC provide a spending plan for fiscal year 2002 to the 
intelligence committees and to the appropriations committees 
within 90 days of enactment of this Act.

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

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

 Title II--Central Intelligence Agency Retirement and Disability System

               SEC. 201. AUTHORIZATION OF APPROPRIATIONS

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

                     Title III--General Provisions

                   Subtitle A--Intelligence Community

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

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

       sec. 302 restriction on conduct of intelligence activities

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

  SEC. 303 SENSE OF THE CONGRESS OF INTELLIGENCE COMMUNITY CONTRACTING

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

        sec. 313. report on alien terrorist removal proceedings

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

                     sec. 314. technical amendments

Extension of Time to Seek FISA Ratification of Attorney General-
        authorized Electronic Surveillance and Physical Searches
      Under current law, the Attorney General may authorize 
electronic surveillance or a search without a court order when 
he concludes, first, that the factual basis for granting such 
an order exists and, second, that an emergency exists requiring 
action before a court order may be obtained. 50 U.S.C. 
Sec. Sec. 1805(f), 1824(e). Current law requires the Government 
to prepare a complete FISA application and present it to the 
FISA court for approval within 24 hours ``after the Attorney 
General authorizes'' the surveillance or search. Failure to do 
so results in the suppression of information from the 
surveillance or search.
      Given the length and complexity of many FISA 
applications, the need to verify the accuracy of each FISA 
declaration by review in the field, the requirement that the 
Government obtain both a written certification from the 
director of the FBI (or a similar official) and the written 
approval of the Attorney General, it often is extremely 
difficult to meet the 24-hour deadline. This is especially true 
where--as often will be the case--the emergency authorization 
comes in the midst of a larger emergency requiring the personal 
attention of the Attorney General and the Director of the FBI. 
The emergency authorization provision of title III wiretaps, 18 
U.S.C. Sec. 2518(7), sets a deadline of 48-hours, and starts 
the 48-hour clock not at the time of authorization, but only 
once the interception ``has occurred, or begins to occur.''
      The conferees agreed to a provision to extend the time 
for judicial ratification of an emergency FISA surveillance or 
search from 24 to 72 hours. That would give the Government 
adequate time to assemble an application without requiring 
extraordinary effort by officials responsible for the 
preparation of those applications. The additional 48 hours for 
FISA applications is appropriate given their complexity and the 
need for higher-level approval for FISA applications than for 
applications under title III. The additional time is also 
appropriate given that the deadline for submission of 
applications under FISA begins when the Attorney General 
authorizes the surveillance or search, rather than when the 
surveillance or search actually occurs, as is the case under 
title III.
Multipoint Wiretaps
      The multipoint wiretap amendment to FISA in the USA 
PATRIOT Act (section 206) allows the FISA court to issue 
generic orders of assistance to any communications provider or 
similar person, instead of to a particular communications 
provider. This change permits the Government to implement new 
surveillance immediately if the FISA target changes providers 
in an effort to thwart surveillance. The amendment was directed 
at persons who, for example, attempt to defeat surveillance by 
changing wireless telephone providers or using pay phones.
      Currently, FISA requires the court to ``specify'' the 
``nature and location of each of the facilities or places at 
which the electronic surveillance will be directed.'' 50 U.S.C. 
Sec. 1805(c)(1)(B). Obviously, in certain situations under 
current law, such a specification is limited. For example, a 
wireless phone has no fixed location and electronic mail may be 
accessed from any number of locations.
      To avoid any ambiguity and clarify Congress' intent, the 
conferees agreed to a provision which adds the phrase, ``if 
known,'' to the end of 50 U.S.C. Sec. 1805(c)(1)(B). The ``if 
known'' language, which follows the model of 50 U.S.C. 
Sec. 1805(c)(1)(A), is designed to avoid any uncertainty about 
the kind of specification required in a multipoint wiretap 
case, where the facility to be monitored is typically not known 
in advance.
Non-conformity of FISA Subsections 501(a)(1) and 501(b)(2)
      Section 215 of the USA PATRIOT Act of 2001 amended title 
V of the FISA, adding a new section 501. Section 501(a)(1) now 
authorizes the director of the FBI to apply for a court order 
to produce certain records ``for an investigation to protect 
against international terrorism or clandestine intelligence 
activities.'' Section 501(b)(2) directs that the application 
for such records specify that the purpose of the investigation 
is to ``obtain foreign intelligence information not concerning 
a United States person.'' However, section 501(a)(1), which 
generally authorizes the applications, does not contain 
equivalent language. Thus, subsections (a)(1) and (b)(2) now 
appear inconsistent.
      The conferees agreed to a provision which adds the phrase 
``to obtain foreign intelligence information not concerning a 
United States person or'' to section 501(a)(1). This would make 
the language of section 501(a)(1) consistent with the 
legislative history of section 215 of the USA PATRIOT Act (see 
147 Cong. Res. S11006 (daily ed. Oct. 25, 2001) (sectional 
analysis)) and with the language of section 214 of the USA 
PATRIOT Act (authorizing an application for an order to use pen 
registers and trap and trace devices to ``obtain foreign 
intelligence information not concerning a United States 
person'').
Clarification of Intelligence Exception
      Section 203(b)(2) of the USA PATRIOT Act added a 
definition of ``foreign intelligence information'' to chapter 
119 of title 18, United States Code. The existingintelligence 
exception from certain chapters of title 18--i.e., chapters 119, 121, 
and 206--is contained in chapter 119 (at 18 U.S.C. Sec. 2511(2)(f)) and 
uses the term ``foreign intelligence information'' to define the scope 
of the exception. As a result, the new definition of ``foreign 
intelligence information'' added by section 203(b)(2) could potentially 
be read to limit the intelligence exception--particularly when compared 
to the National Security Act definition of ``foreign intelligence'' (50 
U.S.C. Sec. 401(a)).
Other Technical Amendments
      The conferees agreed to provisions correcting several 
drafting problems in the text of the USA PATRIOT Act. First, 
section 207(b)(1) of the PATRIOT ACT refers to section 
105(d)(2) instead of section 105(e)(2) and to 50 U.S.C. 
Sec. 1805(d)(2) instead of 50 U.S.C. Sec. 1805(e)(2). Second, 
section 215 (creating new section 502 of FISA) refers to 
``section 402'' instead of ``section 501'' in the last line of 
new section 502(a) and in the last line of new section 
502(b)(1). Third, section 225 adds a new subsection (h) 
immediately following 50 U.S.C. Sec. 1805(g), but it should add 
a new subsection (i) immediately following 50 U.S.C. 
Sec. 1805(h).
      Fourth, the title of section 225 is ``Immunity for 
Compliance with FISA Wiretap'' and it is an amendment to 50 
U.S.C. Sec. 1805, both of which suggest that it applies only to 
electronic surveillance and not to physical searches or other 
activity authorized by FISA. However, the text of section 225 
refers to court orders and requests for emergency assistance 
``under this Act,'' which makes clear that it applies to 
physical searches (and pen-trap requests--for which there 
already exists an immunity provision, 50 U.S.C. Sec. 1842(f)--
and subpoenas) as well as to electronic surveillance.

                 Title IV--Central Intelligence Agency

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

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

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

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

     sec. 403. guidelines for recruitment of certain foreign assets

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

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

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

         Title V--Department of Defense Intelligence Activities

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

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

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

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

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

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

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

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

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

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

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

      Section 506 authorizes the National Security Agency (NSA) 
security protective officers to exercise their law enforcement 
functions 500 feet beyond the confines of NSA facilities. At 
present, NSA's protective jurisdiction does not extend beyond 
the territorial bounds of its perimeter fences. Additionally, 
NSA has to rely on several federal, state, and local 
jurisdictions to respond to threats that occur just outside its 
fence line. With so many jurisdictions involved, there is a 
chance that a necessary response could be slowed and thus 
ineffective. In addition, under current law (Section 11 of the 
National Security Agency Act of 1959) the Administrator of 
General Services, upon the application of the Director of NSA, 
may provide for the protection of those facilities that are 
under the control of or use by the National Security Agency. 
The General Services Administration has delegated this 
authority to NSA. This amendment to the National Security 
Agency Act would provide NSA with the organic authority needed 
to protect its facilities and personnel without having to 
obtain a delegation of authority from the General Services 
Administration. This section parallels authority the Central 
Intelligence Agency currently has in section 15 of the CIA Act 
of 1949 (50 U.S.C. 403o).
      The attacks of September 11, 2001 demonstrated the 
growing threat of terrorism in the United States. The conferees 
believe the NSA's authority to have a protective detail should 
be clarified and enhanced 500 feet beyond the confines of NSA's 
facilities, but were sensitive to the public's reaction to an 
unlimited grant of law enforcement jurisdiction outside NSA's 
borders. Therefore, the exercise of this new authority is 
expressly limited to only those circumstances where NSA 
security protective officers can identify specific and 
articulable facts giving them reason to believe that the 
exercise of this authority is necessary to protect against 
physical damage or injury to NSA installations, property, or 
employees. This provision also expressly states that the rules 
and regulations prescribed by the Director of the NSA for 
agency property and installations do not extend into the 500 
foot area established by this provision. Thus, there will be no 
restrictions, for example, on the taking of photographs within 
the 500 foot zone.
      The conferees do not envision a general grant of police 
authority in the 500 foot zone, but do envision NSA security 
protective officers functioning as federal police, for limited 
purposes, within the 500 foot zone with all attendant 
authorities, capabilities, immunities, and liabilities. The 
conferees expect the Director of NSA to coordinate and 
establish Memoranda of Understanding with all federal, state, 
or local law enforcementagencies with which NSA will exercise 
concurrent jurisdiction in the 500 foot zones. The Director of NSA 
shall submit such Memoranda of Understanding to the Select Committee on 
Intelligence and the Armed Services Committee of the Senate and the 
Permanent Select Committee on Intelligence and the Armed Services 
Committee of the House of Representatives. The Director of NSA is also 
expected to develop a training plan to familiarize the Agency's 
security protective officers with their new authorities and 
responsibilities. The Director of NSA shall submit such plan to the 
Select Committee on Intelligence and the Armed Services Committee of 
the Senate and the Permanent Select Committee on Intelligence and the 
Armed Services Committee of the House of Representatives not later than 
30 days after the enactment of this provision.
      Section 506 also includes a reporting requirement so that 
the intelligence committees may closely scrutinize the exercise 
of this new authority.
Items Not Included
      Section 306 of the House bill contained a provision 
establishing, with respect to the terrorist attacks of 
September 11, 2001, a federal commission on the national 
security readiness of the United States. The Senate bill had no 
similar provision. The House recedes.

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

                                   Bob Graham,
                                   John D. Rockefeller IV,
                                   Dianne Feinstein,
                                   Ron Wyden,
                                   Richard Durbin,
                                   Evan Bayh,
                                   John Edwards,
                                   Barbara Mikulski,
                                   Richard Shelby,
                                   Jon Kyl,
                                   James Inhofe,
                                   Orrin G. Hatch,
                                   Pat Roberts,
                                   Mike DeWine,
                                   Fred Thompson,
                                   Richard G. Lugar,
                                Managers on the Part of the Senate.