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104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-832
_______________________________________________________________________


 
          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1997

                                _______
                                

               September 24, 1996.--Ordered to be printed

_______________________________________________________________________


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

                           CONFERENCE REPORT

                        [To accompany H.R. 3259]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the Senate to the bill (H.R. 
3259), to authorize appropriations for fiscal year 1997 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 1997''.
    (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. Limitation on availability of funds for automatic 
          declassification of records over 25 years old.
Sec. 304. Application of sanctions laws to intelligence activities.
Sec. 305. Expedited naturalization.
Sec. 306. Sense of Congress on enforcement of requirement to protect the 
          identities of undercover intelligence officers, agents, 
          informants, and sources.
Sec. 307. Sense of Congress on intelligence community contracting.
Sec. 308. Restrictions on intelligence sharing with the United Nations.
Sec. 309. Prohibition on using journalists as agents or assets.
Sec. 310. Report on policy of intelligence community regarding the 
          protection of the national information infrastructure against 
          attack.

                  TITLE IV--CENTRAL INTELLIGENCE AGENCY

Sec. 401. Elimination of double surcharge on Central Intelligence Agency 
          relating to employees who retire or resign in fiscal years 
          1998 or 1999 and who receive voluntary separation incentive 
          payments.
Sec. 402. Post-employment restrictions.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

Sec. 501. Executive branch oversight of budgets of elements of the 
          intelligence community.

                TITLE VI--FEDERAL BUREAU OF INVESTIGATION

Sec. 601. Access to telephone records.

                   TITLE VII--COMBATTING PROLIFERATION

Sec. 701. Short title.

 Subtitle A--Assessment of Organization and Structure of Government for 
                        Combatting Proliferation

Sec. 711. Establishment of commission.
Sec. 712. Duties of commission.
Sec. 713. Powers of commission.
Sec. 714. Commission personnel matters.
Sec. 715. Termination of commission.
Sec. 716. Definition.
Sec. 717. Payment of commission expenses.

                        Subtitle B--Other Matters

Sec. 721. Reports on acquisition of technology relating to weapons of 
          mass destruction and advanced conventional munitions.

        TITLE VIII--RENEWAL AND REFORM OF INTELLIGENCE ACTIVITIES

Sec. 801. Short title.
Sec. 802. Committee on Foreign Intelligence.
Sec. 803. Annual reports on intelligence.
Sec. 804. Transnational threats.
Sec. 805. Overall management of central intelligence.
Sec. 806. National Intelligence Council.
Sec. 807. Enhancement of authority of Director of Central Intelligence 
          to manage budget, personnel, and activities of intelligence 
          community.
Sec. 808. Responsibilities of Secretary of Defense pertaining to the 
          National Foreign Intelligence Program.
Sec. 809. Improvement of intelligence collection.
Sec. 810. Improvement of analysis and production of intelligence.
Sec. 811. Improvement of administration of intelligence activities.
Sec. 812. Pay level of Deputy Director of Central Intelligence for 
          Community Management and Assistant Directors of Central 
          Intelligence.
Sec. 813. General Counsel of the Central Intelligence Agency.
Sec. 814. Assistance for law enforcement agencies by intelligence 
          community.
Sec. 815. Appointment of officials responsible for intelligence-related 
          activities.
Sec. 816. Study on the future of intelligence collection.
Sec. 817. Intelligence Reserve Corps.

                       TITLE IX--FINANCIAL MATTERS

Sec. 901. Authorization of funding provided by 1996 supplemental 
          appropriations Act.

                    TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1997 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 National Imagery and Mapping Agency.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

    (a) Specifications of Amounts and Personnel Ceilings.--The 
amounts authorized to be appropriated under section 101, and 
the authorized personnel ceilings as of September 30, 1997, 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. 3259 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 
1997 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) Authorizations of Appropriations.--There is authorized 
to be appropriated for the Community Management Account of the 
Director of Central Intelligence for fiscal year 1997 the sum 
of $131,116,000. 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, 1998.
    (b) Authorized Personnel Levels.--The staff of the 
Community Management Account of the Director of Central 
Intelligence is authorized 303 full-time personnel as of 
September 30, 1997. 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 1997, any officer or 
employee of the United States or member of the Armed Forces who 
is detailed to the staff of the Community Management Account 
from another element of the United States Government shall be 
detailed on a reimbursable basis, except that any such officer, 
employee, or member may be detailed on a non-reimbursable basis 
for a period of less than one year for the performance of 
temporary functions as required by the Director of Central 
Intelligence.
    (d) National Drug Intelligence Center.--(1) Of the amount 
authorized to be appropriated in subsection (a), $27,000,000 
shall be available for the National Drug Intelligence Center 
located in Johnstown, Pennsylvania.
    (2) 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 
center.
    (3) Amounts available for the 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) Notwithstanding any other provision of law, the 
Attorney General shall retain full authority over the 
operations of the center.
    (e) Environmental Programs.--Of the amount authorized to be 
appropriated in subsection (a), $18,000,000 shall be available 
for the Environmental Intelligence and Applications Program, 
formerly known as the Environmental Task Force, and remain 
available until September 30, 1998.

 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 1997 the sum of $184,200,000.

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

    Of the amounts authorized to be appropriated for fiscal 
year 1997 by this Act for the National Foreign Intelligence 
Program, not more than $27,200,000 shall be available to carry 
out the provisions of section 3.4 of Executive Order 12958.

SEC. 304. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.

    Section 905 of the National Security Act of 1947 (50 U.S.C. 
441d) is amended by striking out ``on the date which is one 
year after the date of the enactment of this title'' and 
inserting in lieu thereof ``on January 6, 1998''.

SEC. 305. EXPEDITED NATURALIZATION.

    (a) In General.--With the approval of the Director of 
Central Intelligence, the Attorney General, and the 
Commissioner of Immigration and Naturalization, an applicant 
described in subsection (b) and otherwise eligible for 
naturalization may be naturalized without regard to the 
residence and physical presence requirements of section 316(a) 
of the Immigration and Nationality Act, or to the prohibitions 
of section 313 of such Act, and no residence within a 
particular State or district of the Immigration and 
Naturalization Service in the United States shall be required.
    (b) Eligible Applicant.--An applicant eligible for 
naturalization under this section is the spouse or child of a 
deceased alien whose death resulted from the intentional and 
unauthorized disclosure of classified information regarding the 
alien's participation in the conduct of United States 
intelligence activities and who--
            (1) has resided continuously, after being lawfully 
        admitted for permanent residence, within the United 
        States for at least one year prior to naturalization; 
        and
            (2) is not described in subparagraph (A), (B), (C), 
        or (D) of section 243(h)(2) of such Act.
    (c) Administration of Oath.--An applicant for 
naturalization under this section may be administered the oath 
of allegiance under section 337(a) of the Immigration and 
Nationality Act by the Attorney  General  or  any  district  
court  of  the  United  States,  without regard to the 
residence of the applicant. Proceedings under this subsection 
shall be conducted in a manner consistent with the protection 
of intelligence sources, methods, and activities.
    (d) Definitions.--For purposes of this section--
            (1) the term ``child'' means a child as defined in 
        subparagraphs (A) through (E) of section 101(b)(1) of 
        the Immigration and Nationality Act, without regard to 
        age or marital status; and
            (2) the term ``spouse'' means the wife or husband 
        of a deceased alien referred to in subsection (b) who 
        was married to such alien during the time the alien 
        participated in the conduct of United States 
        intelligence activities.

SEC. 306. SENSE OF CONGRESS ON ENFORCEMENT OF REQUIREMENT TO PROTECT 
                    THE IDENTITIES OF UNDERCOVER INTELLIGENCE OFFICERS, 
                    AGENTS, INFORMANTS, AND SOURCES.

    It is the sense of Congress that title VI of the National 
Security Act of 1947 (50 U.S.C. 421 et seq.) (relating to 
protection of the identities of undercover intelligence 
officers, agents, informants, and sources) should be enforced 
by the appropriate law enforcement agencies.

SEC. 307. 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 the 
operational and security concerns related to the conduct of 
intelligence activities, and where fiscally sound, should award 
contracts in a manner that would maximize the procurement of 
products properly designated as having been made in the United 
States.

SEC.  308.  RESTRICTIONS  ON  INTELLIGENCE  SHARING  WITH  THE UNITED 
                    NATIONS.

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


     ``restrictions on intelligence sharing with the united nations


    ``Sec. 110. (a) Provision of Intelligence Information to 
the United Nations.--(1) No United States intelligence 
information may be provided to the United Nations or any 
organization affiliated with the United Nations, or to any 
officials or employees thereof, unless the President certifies 
to the appropriate committees of Congress that the Director of 
Central Intelligence, in consultation with the Secretary of 
State and the Secretary of Defense, has established and 
implemented procedures, and has worked with the United Nations 
to ensure implementation of procedures, for protecting from 
unauthorized disclosure United States intelligence sources and 
methods connected to such information.
    ``(2) Paragraph (1) may be waived upon written 
certification by the President to the appropriate committees of 
Congress that providing such information to the United Nations 
or an organization affiliated with the United Nations, or to 
any officials or employees thereof, is in the national security 
interests of the United States.
    ``(b) Periodic and Special Reports.--(1) The President 
shall report semiannually to the appropriate committees of 
Congress on the types and volume of intelligence provided to 
the United Nations and the purposes for which it was provided 
during the period covered by the report. The President shall 
also report to the appropriate committees of Congress within 15 
days after it has become known to the United States Government 
that there has been an unauthorized disclosure of intelligence 
provided by the United States to the United Nations.
    ``(2) The requirement for periodic reports under the first 
sentence of paragraph (1) shall not apply to the provision of 
intelligence that is provided only to, and for the use of, 
appropriately cleared United States Government personnel 
serving with the United Nations.
    ``(c) Delegation of Duties.--The President may not delegate 
or assign the duties of the President under this section.
    ``(d) Relationship to Existing Law.--Nothing in this 
section shall be construed to--
            ``(1) impair or otherwise affect the authority of 
        the Director of Central Intelligence to protect 
        intelligence sources and methods from unauthorized 
        disclosure pursuant to section 103(c)(6) of this Act; 
        or
            ``(2) supersede or otherwise affect the provisions 
        of title V of this Act.
    ``(e) Definition.--As used in this section, the term 
`appropriate committees of Congress' means the Committee on 
Foreign Relations and the Select Committee on Intelligence of 
the Senate and the Committee on Foreign Relations and the 
Permanent Select Committee on Intelligence of the House of 
Representatives.''.
    (b) Clerical Amendment.--The table of contents for the 
National Security Act of 1947 is amended by inserting after the 
item relating to section 109 the following:

``Sec. 110. Restrictions on intelligence sharing with the United 
          Nations.''.

SEC. 309. PROHIBITION ON USING JOURNALISTS AS AGENTS OR ASSETS.

    (a) Policy.--It is the policy of the United States that an 
element of the Intelligence Community may not use as an agent 
or asset for the purposes of collecting intelligence any 
individual who--
            (1) is authorized by contract or by the issuance of 
        press credentials to represent himself or herself, 
        either in the United States or abroad, as a 
        correspondent of a United States news media 
        organization; or
            (2) is officially recognized by a foreign 
        government as a representative of a United States media 
        organization.
    (b) Waiver.--Pursuant to such procedures as the President 
may prescribe, the President or the Director of Central 
Intelligence may waive subsection (a) in the case of an 
individual if the President or the Director, as the case may 
be, makes a written determination that the waiver is necessary 
to address the overriding national security interest of the 
United States. The Permanent Select Committee on Intelligence 
of the House of Representatives and the Select Committee on 
Intelligence of the Senate shall be notified of any waiver 
under this subsection.
    (c) Voluntary Cooperation.--Subsection (a) shall not be 
construed to prohibit the voluntary cooperation of any person 
who is aware that the cooperation is being provided to an 
element of the United States Intelligence Community.

SEC. 310. REPORT ON POLICY OF INTELLIGENCE COMMUNITY REGARDING THE 
                    PROTECTION OF THE NATIONAL INFORMATION 
                    INFRASTRUCTURE AGAINST ATTACK.

    (a) Report.--(1) Not later than 120 days after the date of 
the enactment of this Act, the Director of Central Intelligence 
shall submit to Congress a report on the potential responses of 
the intelligence community to threats to and attacks upon the 
information infrastructure of the United States by foreign 
countries, groups, or individuals, or by other entities, 
groups, or individuals.
    (2) The report shall include the following:
            (A) An analysis of the threats posed to the 
        information infrastructure of the United States by 
        information warfare and other forms of non-traditional 
        attacks on the infrastructure by foreign countries, 
        groups, or individuals, or by other entities, groups, 
        or individuals.
            (B) A description and assessment of the 
        counterintelligence activities required to respond to 
        such threats, including the plans of the intelligence 
        community to support such activities.
    (b) Definitions.--For purposes of this section:
            (1) The term ``intelligence community'' has the 
        meaning given such term in section 3(4) of the National 
        Security Act of 1947 (50 U.S.C. 401a(4)).
            (2) The term ``information infrastructure of the 
        United States'' includes the information infrastructure 
        of the public sector and of the private sector.

                 TITLE IV--CENTRAL INTELLIGENCE AGENCY

SEC. 401. ELIMINATION OF DOUBLE SURCHARGE ON CENTRAL INTELLIGENCE 
                    AGENCY RELATING TO EMPLOYEES WHO RETIRE OR RESIGN 
                    IN FISCAL YEARS 1998 OR 1999 AND WHO RECEIVE 
                    VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    Section 2(i) of the Central Intelligence Agency Voluntary 
Separation Pay Act (50 U.S.C. 403-4 note) is amended by adding 
at the end the following: ``The remittance required by this 
subsection shall be in lieu of any remittance required by 
section 4(a) of the Federal Workforce Restructuring Act of 1994 
(5 U.S.C. 8331 note).''.

SEC. 402. POST-EMPLOYMENT RESTRICTIONS.

    (a) In General.--Not later than 90 days after the date of 
enactment of this Act, the Director of Central Intelligence 
shall prescribe regulations requiring each employee of the 
Central Intelligence Agency designated by the Director for such 
purpose to sign a written agreement restricting the activities 
of the employee upon ceasing employment with the Central 
Intelligence Agency. The Director may designate a group or 
class of employees for such purpose.
    (b) Agreement Elements.--The regulations shall provide that 
an agreement contain provisions specifying that the employee 
concerned not represent or advise the government, or any 
political party, of any foreign country during the three-year 
period beginning on the cessation of the employee's employment 
with the Central Intelligence Agency unless the Director 
determines that such representation or advice would be in the 
best interests of the United States.
    (c) Disciplinary Actions.--The regulations shall specify 
appropriate disciplinary actions (including loss of retirement 
benefits) to be taken against any employee determined by the 
Director of Central Intelligence to have violated the agreement 
of the employee under this section.

         TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

SEC. 501. EXECUTIVE BRANCH OVERSIGHT OF BUDGETS OF ELEMENTS OF THE 
                    INTELLIGENCE COMMUNITY.

    (a) Report.--Not later than 90 days after the date of the 
enactment of this Act, the President shall submit to the 
appropriate congressional committees a report setting forth the 
actions that have been taken to ensure adequate oversight by 
the executive branch of the budget of the National 
Reconnaissance Office and the budgets of other elements of the 
intelligence community within the Department of Defense.
    (b) Report Elements.--The report required by subsection (a) 
shall--
            (1) describe the extent to which the elements of 
        the intelligence community carrying out programs and 
        activities in the National Foreign Intelligence Program 
        are subject to requirements imposed on other elements 
        and components of the Department of Defense under the 
        Chief Financial Officers Act of 1990 (Public Law 101-
        576), and the amendments made by that Act, and the 
        Federal Financial Management Act of 1994 (title IV of 
        Public Law 103-356), and the amendments made by that 
        Act;
            (2) describe the extent to which such elements 
        submit to the Office of Management and Budget budget 
        justification materials and execution reports similar 
        to the budget justification materials and execution 
        reports submitted to the Office of Management and 
        Budget by the non-intelligence components of the 
        Department of Defense;
            (3) describe the extent to which the National 
        Reconnaissance Office submits to the Office of 
        Management and Budget, the Community Management Staff, 
        and the Office of the Secretary of Defense--
                    (A) complete information on the cost, 
                schedule, performance, and requirements for any 
                new major acquisition before initiating the 
                acquisition;
                    (B) yearly reports (including baseline cost 
                and schedule information) on major 
                acquisitions;
                    (C) planned and actual expenditures in 
                connection with major acquisitions; and
                    (D) variances from any cost baselines for 
                major acquisitions (including explanations of 
                such variances); and
            (4) assess the extent to which the National 
        Reconnaissance Office has submitted to Office of 
        Management and Budget, the Community Management Staff, 
        and the Office of the Secretary of Defense on a monthly 
        basis a detailed budget execution report similar to the 
        budget execution report prepared for Department of 
        Defense programs.
    (c) Definitions.--For purposes of this section:
            (1) The term ``appropriate congressional 
        committees'' means the following:
                    (A) The Select Committee on Intelligence 
                and the Committee on Armed Services of the 
                Senate.
                    (B) The Permanent Select Committee on 
                Intelligence and the Committee on National 
                Security of the House of Representatives.
            (2) The term ``National Foreign Intelligence 
        Program'' has the meaning given such term in section 
        3(6) of the National Security Act of 1947 (50 U.S.C. 
        401a(6)).

               TITLE VI--FEDERAL BUREAU OF INVESTIGATION

SEC. 601. ACCESS TO TELEPHONE RECORDS.

    (a) Access for Counterintelligence Purposes.--Section 
2709(b)(1) of title 18, United States Code, is amended by 
inserting ``local and long distance'' before ``toll billing 
records''.
    (b) Conforming Amendment.--Section 2703(c)(1)(C) of such 
title is amended by inserting ``local and long distance'' after 
``address,''.
    (c) Civil Remedy.--Section 2707 of such title is amended--
            (1) in subsection (a), by striking out ``customer'' 
        and inserting in lieu thereof ``other person'';
            (2) in subsection (c), by adding at the end the 
        following: ``If the violation is willful or 
        intentional, the court may assess punitive damages. In 
        the case of a successful action to enforce liability 
        under this section, the court may assess the costs of 
        the action, together with reasonable attorney fees 
        determined by the court.'';
            (3) by redesignating subsections (d) and (e) as 
        subsections (e) and (f), respectively; and
            (4) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d) Disciplinary Actions for Violations.--If a court 
determines that any agency or department of the United States 
has violated this chapter and the court finds that the 
circumstances surrounding the violation raise the question 
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 concerned shall promptly 
initiate a proceeding to determine whether or not disciplinary 
action is warranted against the officer or employee.''.

                  TITLE VII--COMBATTING PROLIFERATION

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Combatting Proliferation 
of Weapons of Mass Destruction Act of 1996''.

Subtitle A--Assessment of Organization and Structure of Government for 
                        Combatting Proliferation

SEC. 711. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be 
known as the Commission to Assess the Organization of the 
Federal Government to Combat the Proliferation of Weapons of 
Mass Destruction (in this subtitle referred to as the 
``Commission'').
    (b) Membership.--The Commission shall be composed of eight 
members of whom--
            (1) four shall be appointed by the President;
            (2) one shall be appointed by the Majority Leader 
        of the Senate;
            (3) one shall be appointed by the Minority Leader 
        of the Senate;
            (4) one shall be appointed by the Speaker of the 
        House of Representatives; and
            (5) one shall be appointed by the Minority Leader 
        of the House of Representatives.
    (c) Qualifications of Members.--(1) To the maximum extent 
practicable, the individuals appointed as members of the 
Commission shall be individuals who are nationally recognized 
for expertise regarding--
            (A) the nonproliferation of weapons of mass 
        destruction;
            (B) the efficient and effective implementation of 
        United States nonproliferation policy; or
            (C) the implementation, funding, or oversight of 
        the national security policies of the United States.
    (2) An official who appoints members of the Commission may 
not appoint an individual as a member if, in the judgment of 
the official, the individual possesses any personal or 
financial interest in the discharge of any of the duties of the 
Commission.
    (d) Period of Appointment; Vacancies.--Members shall be 
appointed for the life of the Commission. Any vacancy in the 
Commission shall not affect its powers, but shall be filled in 
the same manner as the original appointment.
    (e)  Initial Meeting.--Not later than 30 days after the 
date on which all members of the Commission have been 
appointed, the Commission shall hold its first meeting.
    (f) Quorum.--A majority of the members of the Commission 
shall constitute a quorum, but a lesser number of members may 
hold hearings.
    (g) Chairman and Vice Chairman.--The Commission shall 
select a Chairman and Vice Chairman from among its members.
    (h) Meetings.--The Commission shall meet at the call of the 
Chairman.

SEC. 712. DUTIES OF COMMISSION.

    (a) Study.--
            (1) In general.--The Commission shall carry out a 
        thorough study of the organization of the Federal 
        Government, including the elements of the intelligence 
        community, with respect to combatting the proliferation 
        of weapons of mass destruction.
            (2) Specific requirements.--In carrying out the 
        study, the Commission shall--
                    (A) assess the current structure and 
                organization of the departments and agencies of 
                the Federal Government having responsibilities 
                for combatting the proliferation of weapons of 
                mass destruction; and
                    (B) assess the effectiveness of United 
                States cooperation with foreign governments 
                with respect to nonproliferation activities, 
                including cooperation--
                            (i) between elements of the 
                        intelligence community and elements of 
                        the intelligence-gathering services of 
                        foreign governments;
                            (ii) between other departments and 
                        agencies of the Federal Government and 
                        the counterparts to such departments 
                        and agencies in foreign governments; 
                        and
                            (iii) between the Federal 
                        Government and international 
                        organizations.
            (3) Assessments.--In making the assessments under 
        paragraph (2), the Commission should address--
                    (A) the organization of the export control 
                activities (including licensing and enforcement 
                activities) of the Federal Government relating 
                to the proliferation of weapons of mass 
                destruction;
                    (B) arrangements for coordinating the 
                funding of United States nonproliferation 
                activities;
                    (C) existing arrangements governing the 
                flow of information among departments and 
                agencies of the Federal Government responsible 
                for nonproliferation activities;
                    (D) the effectiveness of the organization 
                and function of interagency groups in ensuring 
                implementation of United States treaty 
                obligations, laws, and policies with respect to 
                nonproliferation;
                    (E) the administration of sanctions for 
                purposes of nonproliferation, including the 
                measures taken by departments and agencies of 
                the Federal Government to implement, assess, 
                and enhance the effectiveness of such 
                sanctions;
                    (F) the organization, management, and 
                oversight of United States counterproliferation 
                activities;
                    (G) the recruitment, training, morale, 
                expertise, retention, and advancement of 
                Federal Government personnel responsible for 
                the nonproliferation functions of the Federal 
                Government, including any problems in such 
                activities;
                    (H) the role in United States 
                nonproliferation activities of the National 
                Security Council, the Office of Management and 
                Budget, the Office of Science and Technology 
                Policy, and other offices in the Executive 
                Office of the President having responsibilities 
                for such activities;
                    (I) the organization of the activities of 
                the Federal Government to verify government-to-
                government assurances and commitments with 
                respect to nonproliferation, including 
                assurances regarding the future use of 
                commodities exported from the United States; 
                and
                    (J) the costs and benefits to the United 
                States of increased centralization and of 
                decreased centralization in the administration 
                of the nonproliferation activities of the 
                Federal Government.
    (b) Recommendations.--In conducting the study, the 
Commission shall develop recommendations on means of improving 
the effectiveness of the organization of the departments and 
agencies of the Federal Government in meeting the national 
security interests of the United States with respect to the 
proliferation of weapons of mass destruction. Such 
recommendations shall include specific recommendations to 
eliminate duplications of effort, and other inefficiencies, in 
and among such departments and agencies.
    (c) Report.--(1) Not later than 18 months after the date of 
the enactment of this Act, the Commission shall submit to 
Congress a report containing a detailed statement of the 
findings and conclusions of the Commission, together with its 
recommendations for such legislation and administrative actions 
as it considers appropriate.
    (2) The report shall be submitted in unclassified form, but 
may include a classified annex.

SEC. 713. POWERS OF COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit 
and act at such times and places, take such testimony, and 
receive such evidence as the Commission considers advisable to 
carry out the purposes of this subtitle.
    (b) Information From Federal Agencies.--
            (1) In general.--The Commission may secure directly 
        from any Federal department or agency such information 
        as the Commission considers necessary to carry out the 
        provisions of this subtitle. Upon request of the 
        Chairman of the Commission, the head of such department 
        or agency shall furnish such information to the 
        Commission.
            (2) Classified information.--A department or agency 
        may furnish the Commission classified information under 
        this subsection. The Commission shall take appropriate 
        actions to safeguard classified information furnished 
        to the Commission under this paragraph.
    (c) Postal Services.--The Commission may use the United 
States mails in the same manner and under the same conditions 
as other departments and agencies of the Federal Government.
    (d) Gifts.--The Commission may accept, use, and dispose of 
gifts or donations of services or property.

SEC. 714. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission 
who is not an officer or employee of the Federal Government 
shall be compensated at a rate equal to the daily equivalent of 
the annual rate of basic pay prescribed for level IV of the 
Executive Schedule under section 5315 of title 5, United States 
Code, for each day (including travel time) during which such 
member is engaged in the performance of the duties of the 
Commission. All members of the Commission who are officers or 
employees of the United States shall serve without compensation 
in addition to that received for their services as officers or 
employees of the United States.
    (b) Travel Expenses.--The members of the Commission shall 
be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places of business 
in the performance of services for the Commission.
    (c) Staff.--
            (1) In general.--The Chairman of the Commission 
        may, without regard to the civil service laws and 
        regulations, appoint and terminate an executive 
        director and such other additional personnel as may be 
        necessary to enable the Commission to perform its 
        duties. The employment of an executive director shall 
        be subject to confirmation by the Commission.
            (2) Compensation.--The Chairman of the Commission 
        may fix the compensation of the executive director and 
        other personnel without regard to the provisions of 
        chapter 51 and subchapter III of chapter 53 of title 5, 
        United States Code, relating to classification of 
        positions and General Schedule pay rates, except that 
        the rate of pay for the executive director and other 
        personnel may not exceed the rate payable for level V 
        of the Executive Schedule under section 5316 of such 
        title.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without 
reimbursement, and such detail shall be without interruption or 
loss of civil service status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--
The Chairman of the Commission may procure temporary and 
intermittent services under section 3109(b) of title 5, United 
States Code, at rates for individuals which do not exceed the 
daily equivalent of the annual rate of basic pay prescribed for 
level V of the Executive Schedule under section 5316 of such 
title.

SEC. 715. TERMINATION OF COMMISSION.

    The Commission shall terminate 60 days after the date on 
which the Commission submits its report under section 712(c).

SEC. 716. DEFINITION.

    For purposes of this subtitle, the term ``intelligence 
community'' shall have the meaning given such term in section 
3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).

SEC. 717. PAYMENT OF COMMISSION EXPENSES.

    The compensation, travel expenses, per diem allowances of 
members and employees of the Commission, and other expenses of 
the Commission shall be paid out of funds available to the 
Director of Central Intelligence for the payment of 
compensation, travel allowances, and per diem allowances, 
respectively, of employees of the Central Intelligence Agency.

                       Subtitle B--Other Matters

SEC. 721. REPORTS ON ACQUISITION OF TECHNOLOGY RELATING TO WEAPONS OF 
                    MASS DESTRUCTION AND ADVANCED CONVENTIONAL 
                    MUNITIONS.

    (a) Reports.--Not later than 6 months after the date of the 
enactment of this Act, and every 6 months thereafter, the 
Director of Central Intelligence shall submit to Congress a 
report on--
            (1) the acquisition by foreign countries during the 
        preceding 6 months of dual-use and other technology 
        useful for the development or production of weapons of 
        mass destruction (including nuclear weapons, chemical 
        weapons, and biological weapons) and advanced 
        conventional munitions; and
            (2) trends in the acquisition of such technology by 
        such countries.
    (b) Form of Reports.--The reports submitted under 
subsection (a) shall be submitted in unclassified form, but may 
include a classified annex.

       TITLE VIII--RENEWAL AND REFORM OF INTELLIGENCE ACTIVITIES

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Intelligence Renewal and 
Reform Act of 1996''.

SEC. 802. COMMITTEE ON FOREIGN INTELLIGENCE.

    Section 101 of the National Security Act of 1947 (50 U.S.C. 
402) is amended--
            (1) by redesignating subsection (h) as subsection 
        (j); and
            (2) by inserting after subsection (g) the following 
        new subsection (h):
    ``(h)(1) There is established within the National Security 
Council a committee to be known as the Committee on Foreign 
Intelligence (in this subsection referred to as the 
`Committee').
    ``(2) The Committee shall be composed of the following:
            ``(A) The Director of Central Intelligence.
            ``(B) The Secretary of State.
            ``(C) The Secretary of Defense.
            ``(D) The Assistant to the President for National 
        Security Affairs, who shall serve as the chairperson of 
        the Committee.
            ``(E) Such other members as the President may 
        designate.
    ``(3) The function of the Committee shall be to assist the 
Council in its activities by--
            ``(A) identifying the intelligence required to 
        address the national security interests of the United 
        States as specified by the President;
            ``(B) establishing priorities (including funding 
        priorities) among the programs, projects, and 
        activities that address such interests and 
        requirements; and
            ``(C) establishing policies relating to the conduct 
        of intelligence activities of the United States, 
        including appropriate roles and missions for the 
        elements of the intelligence community and appropriate 
        targets of intelligence collection activities.
    ``(4) In carrying out its function, the Committee shall--
            ``(A) conduct an annual review of the national 
        security interests of the United States;
            ``(B) identify on an annual basis, and at such 
        other times as the Council may require, the 
        intelligence required to meet such interests and 
        establish an order of priority for the collection and 
        analysis of such intelligence; and
            ``(C) conduct an annual review of the elements of 
        the intelligence community in order to determine the 
        success of such elements in collecting, analyzing, and 
        disseminating the intelligence identified under 
        subparagraph (B).
    ``(5) The Committee shall submit each year to the Council 
and to the Director of Central Intelligence a comprehensive 
report on its activities during the preceding year, including 
its activities under paragraphs (3) and (4).''.

SEC. 803. ANNUAL REPORTS ON INTELLIGENCE.

    (a) In General.--Section 109 of the National Security Act 
of 1947 (50 U.S.C. 404d) is amended by striking out subsections 
(a) and (b) and inserting in lieu thereof the following new 
subsections:
    ``Sec. 109. (a) In General.--(1) Not later than January 31 
each year, the President shall submit to the appropriate 
congressional committees a report on the requirements of the 
United States for intelligence and the activities of the 
intelligence community.
    ``(2) The purpose of the report is to facilitate an 
assessment of the activities of the intelligence community 
during the preceding fiscal year and to assist in the 
development of a mission and a budget for the intelligence 
community for the fiscal year beginning in the year in which 
the report is submitted.
    ``(3) The report shall be submitted in unclassified form, 
but may include a classified annex.
    ``(b) Matters Covered.--(1) Each report under subsection 
(a) shall--
            ``(A) specify the intelligence required to meet the 
        national security interests of the United States, and 
        set forth an order of priority for the collection and 
        analysis of intelligence required to meet such 
        interests, for the fiscal year beginning in the year in 
        which the report is submitted; and
            ``(B) evaluate the performance of the intelligence 
        community in collecting and analyzing intelligence 
        required to meet such interests during the fiscal year 
        ending in the year preceding the year in which the 
        report is submitted, including a description of the 
        significant successes and significant failures of the 
        intelligence community in such collection and analysis 
        during that fiscal year.
    ``(2) The report shall specify matters under paragraph 
(1)(A) in sufficient detail to assist Congress in making 
decisions with respect to the allocation of resources for the 
matters specified.
    ``(c) Definition.--In this section, the term `appropriate 
congressional committees' means the following:
            ``(1) The Select Committee on Intelligence, the 
        Committee on Appropriations, and the Committee on Armed 
        Services of the Senate.
            ``(2) The Permanent Select Committee on 
        Intelligence, the Committee on Appropriations, and the 
        Committee on National Security of the House of 
        Representatives.''.
    (b) Conforming Amendments.--(1) The section heading of such 
section is amended to read as follows:


                   ``annual report on intelligence''.


    (2) The table of contents for Act is amended by striking 
out the item relating to section 109 and inserting in lieu 
thereof the following new item:

``Sec. 109. Annual report on intelligence.''.

SEC. 804. TRANSNATIONAL THREATS.

    Section 101 of the National Security Act of 1947 (50 U.S.C. 
402) is amended by inserting after subsection (h), as amended 
by section 802 of this Act, the following new subsection:
    ``(i)(1) There is established within the National Security 
Council a committee to be known as the Committee on 
Transnational Threats (in this subsection referred to as the 
`Committee').
    ``(2) The Committee shall include the following members:
            ``(A) The Director of Central Intelligence.
            ``(B) The Secretary of State.
            ``(C) The Secretary of Defense.
            ``(D) The Attorney General.
            ``(E) The Assistant to the President for National 
        Security Affairs, who shall serve as the chairperson of 
        the Committee.
            ``(F) Such other members as the President may 
        designate.
    ``(3) The function of the Committee shall be to coordinate 
and direct the activities of the United States Government 
relating to combatting transnational threats.
    ``(4) In carrying out its function, the Committee shall--
            ``(A) identify transnational threats;
            ``(B) develop strategies to enable the United 
        States Government to respond to transnational threats 
        identified under subparagraph (A);
            ``(C) monitor implementation of such strategies;
            ``(D) make recommendations as to appropriate 
        responses to specific transnational threats;
            ``(E) assist in the resolution of operational and 
        policy differences among Federal departments and 
        agencies in their responses to transnational threats;
            ``(F) develop policies and procedures to ensure the 
        effective sharing of information about transnational 
        threats among Federal departments and agencies, 
        including law enforcement agencies and the elements of 
        the intelligence community; and
            ``(G) develop guidelines to enhance and improve the 
        coordination of activities of Federal law enforcement 
        agencies and elements of the intelligence community 
        outside the United States with respect to transnational 
        threats.
    ``(5) For purposes of this subsection, the term 
`transnational threat' means the following:
            ``(A) Any transnational activity (including 
        international terrorism, narcotics trafficking, the 
        proliferation of weapons of mass destruction and the 
        delivery systems for such weapons, and organized crime) 
        that threatens the national security of the United 
        States.
            ``(B) Any individual or group that engages in an 
        activity referred to in subparagraph (A).''.

SEC. 805. OVERALL MANAGEMENT OF CENTRAL INTELLIGENCE.

    (a) Office of the Director of Central Intelligence.--Title 
I of the National Security Act of 1947 (50 U.S.C. 402 et seq.) 
is amended by striking out section 102 and inserting in lieu 
thereof the following new section 102:


            ``office of the director of central intelligence


    ``Sec. 102. (a) Director of Central Intelligence.--There is 
a Director of Central Intelligence who shall be appointed by 
the President, by and with the advice and consent of the 
Senate. The Director shall--
            ``(1) serve as head of the United States 
        intelligence community;
            ``(2) act as the principal adviser to the President 
        for intelligence matters related to the national 
        security; and
            ``(3) serve as head of the Central Intelligence 
        Agency.
    ``(b) Deputy Directors of Central Intelligence.--(1) There 
is a Deputy Director of Central Intelligence who shall be 
appointed by the President, by and with the advice and consent 
of the Senate.
    ``(2) There is a Deputy Director of Central Intelligence 
for Community Management who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    ``(3) Each Deputy Director of Central Intelligence shall 
have extensive national security expertise.
    ``(c) Military Status of Director and Deputy Directors.--
(1)(A) Not more than one of the individuals serving in the 
positions specified in subparagraph (B) may be a commissioned 
officer of the Armed Forces, whether in active or retired 
status.
    ``(B) The positions referred to in subparagraph (A) are the 
following:
            ``(i) The Director of Central Intelligence.
            ``(ii) The Deputy Director of Central Intelligence.
            ``(iii) The Deputy Director of Central Intelligence 
        for Community Management.
    ``(2) It is the sense of Congress that, under ordinary 
circumstances, it is desirable that one of the individuals 
serving in the positions specified in paragraph (1)(B)--
            ``(A) be a commissioned officer of the Armed 
        Forces, whether in active or retired status; or
            ``(B) have, by training or experience, an 
        appreciation of military intelligence activities and 
        requirements.
    ``(3) A commissioned officer of the Armed Forces, while 
serving in a position specified in paragraph (1)(B)--
            ``(A) shall not be subject to supervision or 
        control by the Secretary of Defense or by any officer 
        or employee of the Department of Defense;
            ``(B) shall not exercise, by reason of the 
        officer's status as a commissioned officer, any 
        supervision or control with respect to any of the 
        military or civilian personnel of the Department of 
        Defense except as otherwise authorized by law; and
            ``(C) shall not be counted against the numbers and 
        percentages of commissioned officers of the rank and 
        grade of such officer authorized for the military 
        department of that officer.
    ``(4) Except as provided in subparagraph (A) or (B) of 
paragraph (3), the appointment of an officer of the Armed 
Forces to a position specified in paragraph (1)(B) shall not 
affect the status, position, rank, or grade of such officer in 
the Armed Forces, or any emolument, perquisite, right, 
privilege, or benefit incident to or arising out of any such 
status, position, rank, or grade.
    ``(5) A commissioned officer of the Armed Forces on active 
duty who is appointed to a position specified in paragraph 
(1)(B), 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 such 
position. Funds from which such pay and allowances are paid 
shall be reimbursed from funds available to the Director of 
Central Intelligence.
    ``(d) Duties of Deputy Directors.--(1)(A) The Deputy 
Director of Central Intelligence shall assist the Director of 
Central Intelligence in carrying out the Director's 
responsibilities under this Act.
    ``(B) The Deputy Director of Central Intelligence shall act 
for, and exercise the powers of, the Director of Central 
Intelligence during the Director's absence or disability or 
during a vacancy in the position of the Director of Central 
Intelligence.
    ``(2) The Deputy Director of Central Intelligence for 
Community Management shall, subject to the direction of the 
Director of Central Intelligence, be responsible for the 
following:
            ``(A) Directing the operations of the Community 
        Management Staff.
            ``(B) Through the Assistant Director of Central 
        Intelligence for Collection, ensuring the efficient and 
        effective collection of national intelligence using 
        technical means and human sources.
            ``(C) Through the Assistant Director of Central 
        Intelligence for Analysis and Production, conducting 
        oversight of the analysis and production of 
        intelligence by elements of the intelligence community.
            ``(D) Through the Assistant Director of Central 
        Intelligence for Administration, performing community-
        wide management functions of the intelligence 
        community, including the management of personnel and 
        resources.
    ``(3)(A) The Deputy Director of Central Intelligence takes 
precedence in the Office of the Director of Central 
Intelligence immediately after the Director of Central 
Intelligence.
    ``(B) The Deputy Director of Central Intelligence for 
Community Management takes precedence in the Office of the 
Director of Central Intelligence immediately after the Deputy 
Director of Central Intelligence.
    ``(e) Office of the Director of Central Intelligence.--(1) 
There is an Office of the Director of Central Intelligence. The 
function of the Office is to assist the Director of Central 
Intelligence in carrying out the duties and responsibilities of 
the Director under this Act and to carry out such other duties 
as may be prescribed by law.
    ``(2) The Office of the Director of Central Intelligence is 
composed of the following:
            ``(A) The Director of Central Intelligence.
            ``(B) The Deputy Director of Central Intelligence.
            ``(C) The Deputy Director of Central Intelligence 
        for Community Management.
            ``(D) The National Intelligence Council.
            ``(E) The Assistant Director of Central 
        Intelligence for Collection.
            ``(F) The Assistant Director of Central 
        Intelligence for Analysis and Production.
            ``(G) The Assistant Director of Central 
        Intelligence for Administration.
            ``(H) Such other offices and officials as may be 
        established by law or the Director of Central 
        Intelligence may establish or designate in the Office.
    ``(3) To assist the Director in fulfilling the 
responsibilities of the Director as head of the intelligence 
community, the Director shall employ and utilize in the Office 
of the Director of Central Intelligence a professional staff 
having an expertise in matters relating to such 
responsibilities and may establish permanent positions and 
appropriate rates of pay with respect to that staff.''.
    (b) Central Intelligence Agency.--Title I of the National 
Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by 
inserting after section 102, as amended by subsection (a), the 
following new section:


                     ``central intelligence agency


    ``Sec. 102A. There is a Central Intelligence Agency. The 
function of the Agency shall be to assist the Director of 
Central Intelligence in carrying out the responsibilities 
referred to in paragraphs (1) through (5) of section 103(d) of 
this Act.''.
    (c) Clerical Amendment.--The table of contents for that Act 
is amended by striking out the item relating to section 102 and 
inserting in lieu thereof the following new items:

``Sec. 102. Office of the Director of Central Intelligence.
``Sec. 102A. Central Intelligence Agency.''.

SEC. 806. NATIONAL INTELLIGENCE COUNCIL.

    Section 103(b) of the National Security Act of 1947 (50 
U.S.C. 403-3(b)) is amended--
            (1) in paragraph (1)(B), by inserting ``, or as 
        contractors of the Council or employees of such 
        contractors,'' after ``on the Council'';
            (2) in paragraph (2)--
                    (A) by striking out ``and'' at the end of 
                subparagraph (A);
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph (B):
            ``(B) evaluate community-wide collection and 
        production of intelligence by the intelligence 
        community and the requirements and resources of such 
        collection and production; and'';
            (3) by redesignating paragraphs (4) and (5) as 
        paragraphs (5) and (6), respectively;
            (4) by inserting after paragraph (3) the following 
        new paragraph (4):
    ``(4) Subject to the direction and control of the Director 
of Central Intelligence, the Council may carry out its 
responsibilities under this subsection by contract, including 
contracts for substantive experts necessary to assist the 
Council with particular assessments under this subsection.''; 
and
            (5) in paragraph (5), as so redesignated, by adding 
        at the end the following: ``The Council shall also be 
        readily accessible to policymaking officials and other 
        appropriate individuals not otherwise associated with 
        the intelligence community.''.

SEC. 807. ENHANCEMENT OF AUTHORITY OF DIRECTOR OF CENTRAL INTELLIGENCE 
                    TO MANAGE BUDGET, PERSONNEL, AND ACTIVITIES OF 
                    INTELLIGENCE COMMUNITY.

    (a) In General.--Section 103(c) of the National Security 
Act of 1947 (50 U.S.C. 403-3(c)) is amended--
            (1) by striking out paragraph (1) and inserting in 
        lieu thereof the following new paragraph (1):
            ``(1) facilitate the development of an annual 
        budget for intelligence and intelligence-related 
        activities of the United States by--
                    ``(A) developing and presenting to the 
                President an annual budget for the National 
                Foreign Intelligence Program; and
                    ``(B) participating in the development by 
                the Secretary of Defense of the annual budgets 
                for the Joint Military Intelligence Program and 
                the Tactical Intelligence and Related 
                Activities Program;'';
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (3) by inserting after paragraph (2) the following 
        new paragraph (3):
            ``(3) approve collection requirements, determine 
        collection priorities, and resolve conflicts in 
        collection priorities levied on national collection 
        assets, except as otherwise agreed with the Secretary 
        of Defense pursuant to the direction of the 
        President;''.
    (b) Use of Funds.--Section 104(c) of the National Security 
Act of 1947 (50 U.S.C. 403-4(c)) is amended by adding at the 
end the following: ``The Secretary of Defense shall consult 
with the Director of Central Intelligence before reprogramming 
funds made available under the Joint Military Intelligence 
Program.''.
    (c) Periodic Reports on Expenditures.--Not later than 
January 1, 1997, the Director of Central Intelligence and the 
Secretary of Defense shall prescribe guidelines to ensure 
prompt reporting to the Director and the Secretary on a 
periodic basis of budget execution data for all national, 
defense-wide, and tactical intelligence activities.
    (d) Database Program Tracking.--Not later than January 1, 
1999, the Director of Central Intelligence and the Secretary of 
Defense shall develop and implement a database to provide 
timely and accurate information on the amounts, purposes, and 
status of the resources, including periodic budget execution 
updates, for all national, defense-wide, and tactical 
intelligence activities.
    (e) Personnel, Training, and Administrative Activities.--
Not later than January 31 of each year through 1999, the 
Director of Central Intelligence shall submit to the Select 
Committee on Intelligence of the Senate and the Permanent 
Select Committee on Intelligence of the House of 
Representatives a report on the policies and programs the 
Director has instituted under subsection (f) of section 104 of 
the National Security Act of 1947.

SEC. 808. RESPONSIBILITIES OF SECRETARY OF DEFENSE PERTAINING TO THE 
                    NATIONAL FOREIGN INTELLIGENCE PROGRAM.

    Section 105 of the National Security Act of 1947 (50 U.S.C. 
403-5) is amended--
            (1) in subsection (a), by inserting ``, in 
        consultation with the Director of Central 
        Intelligence,'' after ``Secretary of Defense'' in the 
        matter preceding paragraph (1); and
            (2) by adding at the end the following:
    ``(d) Annual Evaluation of the Director of Central 
Intelligence.--The Director of Central Intelligence, in 
consultation with the Secretary of Defense and the Chairman of 
the Joint Chiefs of Staff, shall submit each year to the 
Committee on Foreign Intelligence of the National Security 
Council and the appropriate congressional committees (as 
defined in section 109(c) of this Act) an evaluation of the 
performance and the responsiveness of the National Security 
Agency, the National Reconnaissance Office, and the National 
Imagery and Mapping Agency in meeting their national 
missions.''.

SEC. 809. IMPROVEMENT OF INTELLIGENCE COLLECTION.

    (a) Assistant Director of Central Intelligence for 
Collection.--Section 102 of the National Security Act of 1947, 
as amended by section 805(a) of this Act, is further amended by 
adding at the end the following:
    ``(f) Assistant Director of Central Intelligence for 
Collection.--(1) To assist the Director of Central Intelligence 
in carrying out the Director's responsibilities under this Act, 
there shall be an Assistant Director of Central Intelligence 
for Collection who shall be appointed by the President, by and 
with the advice and consent of the Senate.
    ``(2) The Assistant Director for Collection shall assist 
the Director of Central Intelligence in carrying out the 
Director's collection responsibilities in order to ensure the 
efficient and effective collection of national intelligence.''.
    (b) Consolidation of Human Intelligence Collection 
Activities.--Not later than 90 days after the date of the 
enactment of this Act, the Director of Central Intelligence and 
the Deputy Secretary of Defense shall jointly submit to the 
Committee on Armed Services and the Select Committee on 
Intelligence of the Senate and the Committee on National 
Security and the Permanent Select Committee on Intelligence of 
the House of Representatives a report on the ongoing efforts of 
those officials to achieve commonality, interoperability, and, 
where practicable, consolidation of the collection of 
clandestine intelligence from human sources conducted by the 
Defense Human Intelligence Service of the Department of Defense 
and the Directorate of Operations of the Central Intelligence 
Agency.

SEC. 810. IMPROVEMENT OF ANALYSIS AND PRODUCTION OF INTELLIGENCE.

    Section 102 of the National Security Act of 1947, as 
amended by section 809(a) of this Act, is further amended by 
adding at the end the following:
    ``(g) Assistant Director of Central Intelligence for 
Analysis and Production.--(1) To assist the Director of Central 
Intelligence in carrying out the Director's responsibilities 
under this Act, there shall be an Assistant Director of Central 
Intelligence for Analysis and Production who shall be appointed 
by the President, by and with the advice and consent of the 
Senate.
    ``(2) The Assistant Director for Analysis and Production 
shall--
            ``(A) oversee the analysis and production of 
        intelligence by the elements of the intelligence 
        community;
            ``(B) establish standards and priorities relating 
        to such analysis and production;
            ``(C) monitor the allocation of resources for the 
        analysis and production of intelligence in order to 
        identify unnecessary duplication in the analysis and 
        production of intelligence;
            ``(D) identify intelligence to be collected for 
        purposes of the Assistant Director of Central 
        Intelligence for Collection; and
            ``(E) provide such additional analysis and 
        production of intelligence as the President and the 
        National Security Council may require.''.

SEC. 811. IMPROVEMENT OF ADMINISTRATION OF INTELLIGENCE ACTIVITIES.

    Section 102 of the National Security Act of 1947, as 
amended by section 810 of this Act, is further amended by 
adding at the end the following:
    ``(h) Assistant Director of Central Intelligence for 
Administration.--(1) To assist the Director of Central 
Intelligence in carrying out the Director's responsibilities 
under this Act, there shall be an Assistant Director of Central 
Intelligence for Administration who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    ``(2) The Assistant Director for Administration shall 
manage such activities relating to the administration of the 
intelligence community as the Director of Central Intelligence 
shall require.''.

SEC. 812. PAY LEVEL OF DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE FOR 
                    COMMUNITY MANAGEMENT AND ASSISTANT DIRECTORS OF 
                    CENTRAL INTELLIGENCE.

    (a) Executive Schedule III Pay Level.--Section 5314 of 
title 5, United States Code, is amended by striking out item 
the relating to the Deputy Director of Central Intelligence and 
inserting in lieu thereof the following:
            ``Deputy Directors of Central Intelligence (2).''.
    (b) Executive Schedule IV Pay Level.--Section 5315 of title 
5, United States Code, is amended by adding at the end the 
following:
            ``Assistant Directors of Central Intelligence 
        (3).''.

SEC.  813.  GENERAL  COUNSEL  OF  THE  CENTRAL  INTELLIGENCE AGENCY.

    (a) In General.--The Central Intelligence Agency Act of 
1949 (50 U.S.C. 403a et seq.) is amended by adding at the end 
the following:


          ``general counsel of the central intelligence agency


    ``Sec. 20. (a) There is a General Counsel of the Central 
Intelligence Agency, appointed from civilian life by the 
President, by and with the advice and consent of the Senate.
    ``(b) The General Counsel is the chief legal officer of the 
Central Intelligence Agency.
    ``(c) The General Counsel of the Central Intelligence 
Agency shall perform such functions as the Director of Central 
Intelligence may prescribe.''.
    (b) Applicability of Appointment Requirements.--The 
requirement established by section 20 of the Central 
Intelligence Agency Act of 1949, as added by subsection (a), 
for the appointment by the President, by and with the advice 
and consent of the Senate, of an individual to the position of 
General Counsel of the Central Intelligence Agency shall apply 
as follows:
            (1) To any vacancy in such position that occurs 
        after the date of the enactment of this Act.
            (2) To the incumbent serving in such position on 
        the date of the enactment of this Act as of the date 
        that is six months after such date of enactment, if 
        such incumbent has served in such position continuously 
        between such date of enactment and the date that is six 
        months after such date of enactment.
    (c) Executive Schedule IV Pay Level.--Section 5315 of title 
5, United States Code, as amended by section 812 of this Act, 
is further amended by adding at the end the following:
            ``General Counsel of the Central Intelligence 
        Agency.''.

SEC. 814. ASSISTANCE FOR LAW ENFORCEMENT AGENCIES BY INTELLIGENCE 
                    COMMUNITY.

    (a) In General.--Title I of the National Security Act of 
1947 (50 U.S.C. 402 et seq.) is amended by inserting after 
section 105 the following new section:


         ``assistance to united states law enforcement agencies


    ``Sec. 105A. (a) Authority To Provide Assistance.--Subject 
to subsection (b), elements of the intelligence community may, 
upon the request of a United States law enforcement agency, 
collect information outside the United States about individuals 
who are not United States persons. Such elements may collect 
such information notwithstanding that the law enforcement 
agency intends to use the information collected for purposes of 
a law enforcement investigation or counterintelligence 
investigation.
    ``(b) Limitation on Assistance by Elements of Department of 
Defense.--(1) With respect to elements within the Department of 
Defense, the authority in subsection (a) applies only to the 
following:
            ``(A) The National Security Agency.
            ``(B) The National Reconnaissance Office.
            ``(C) The National Imagery and Mapping Agency.
            ``(D) The Defense Intelligence Agency.
    ``(2) Assistance provided under this section by elements of 
the Department of Defense may not include the direct 
participation of a member of the Army, Navy, Air Force, or 
Marine Corps in an arrest or similar activity.
    ``(3) Assistance may not be provided under this section by 
an element of the Department of Defense if the provision of 
such assistance will adversely affect the military preparedness 
of the United States.
    ``(4) The Secretary of Defense shall prescribe regulations 
governing the exercise of authority under this section by 
elements of the Department of Defense, including regulations 
relating to the protection of sources and methods in the 
exercise of such authority.
    ``(c) Definitions.--For purposes of subsection (a):
            ``(1) The term `United States law enforcement 
        agency' means any department or agency of the Federal 
        Government that the Attorney General designates as law 
        enforcement agency for purposes of this section.
            ``(2) The term `United States person' means the 
        following:
                    ``(A) A United States citizen.
                    ``(B) An alien known by the intelligence 
                agency concerned to be a permanent resident 
                alien.
                    ``(C) An unincorporated association 
                substantially composed of United States 
                citizens or permanent resident aliens.
                    ``(D) A corporation incorporated in the 
                United States, except for a corporation 
                directed and controlled by a foreign government 
                or governments.''.
    (b) Clerical Amendment.--The table of contents for that Act 
is amended by inserting after the item relating to section 105 
the following new item:

``Sec. 105A. Assistance to United States law enforcement agencies.''.

SEC. 815. APPOINTMENT OF OFFICIALS RESPONSIBLE FOR INTELLIGENCE-RELATED 
                    ACTIVITIES.

    (a) In General.--Section 106 of the National Security Act 
of 1947 (50 U.S.C. 403-6) is amended to read as follows:


    ``appointment of officials responsible for intelligence-related 
                               activities


    ``Sec. 106. (a) Concurrence of DCI in Certain 
Appointments.--(1) In the event of a vacancy in a position 
referred to in paragraph (2), the Secretary of Defense shall 
obtain the concurrence of the Director of Central Intelligence 
before recommending to the President an individual for 
appointment to the position. If the Director does not concur in 
the recommendation, the Secretary may make the recommendation 
to the President without the Director's concurrence, but shall 
include in the recommendation a statement that the Director 
does not concur in the recommendation.
    ``(2) Paragraph (1) applies to the following positions:
            ``(A) The Director of the National Security Agency.
            ``(B) The Director of the National Reconnaissance 
        Office.
            ``(C) The Director of the National Imagery and 
        Mapping Agency.
    ``(b) Consultation with DCI in Certain Appointments.--(1) 
In the event of a vacancy in a position referred to in 
paragraph (2), the head of the department or agency having 
jurisdiction over the position shall consult with the Director 
of Central Intelligence before appointing an individual to fill 
the vacancy or recommending to the President an individual to 
be nominated to fill the vacancy.
    ``(2) Paragraph (1) applies to the following positions:
            ``(A) The Director of the Defense Intelligence 
        Agency.
            ``(B) The Assistant Secretary of State for 
        Intelligence and Research.
            ``(C) The Director of the Office of 
        Nonproliferation and National Security of the 
        Department of Energy.
    ``(3) In the event of a vacancy in the position of the 
Assistant Director, National Security Division of the Federal 
Bureau of Investigation, the Director of the Federal Bureau of 
Investigation shall provide timely notice to the Director of 
Central Intelligence of the recommendation of the Director of 
the Federal Bureau of Investigation of an individual to fill 
the position in order that the Director of Central Intelligence 
may consult with the Director of the Federal Bureau of 
Investigation before the Attorney General appoints an 
individual to fill the vacancy.''.
    (b) Clerical Amendment.--The table of contents for that Act 
is amended by striking out the item relating to section 106 and 
inserting in lieu thereof the following new item:

``Sec. 106. Appointment of officials responsible for intelligence-
          related activities.''.

SEC. 816. STUDY ON THE FUTURE OF INTELLIGENCE COLLECTION.

    (a) Study.--The Director of Central Intelligence shall, in 
consultation with the Deputy Secretary of Defense, conduct a 
study on the future of intelligence collection. The study shall 
address whether collection resources can be managed in a more 
consolidated, integrated manner. The study is not limited to, 
but should include, specific examination of the following:
            (1) Establishing within the Intelligence Community 
        a single agency with responsibility for--
                    (A) the clandestine collection of 
                intelligence through human sources and other 
                clandestine techniques;
                    (B) covert action; and
                    (C) representing the Director of Central 
                Intelligence in liaison with foreign 
                intelligence and security services.
            (2) Establishing a single agency for the conduct of 
        technical intelligence collection activities, 
        including--
                    (A) signals intelligence (SIGINT), imagery 
                intelligence (IMINT), and measurement and 
                signatures intelligence (MASINT);
                    (B) first-phase (or initial) exploitation 
                of the results of such collection;
                    (C) dissemination of such collection in a 
                timely manner;
                    (D) development of processing and 
                exploitation technologies to support these 
                functions; and
                    (E) serving as the sole agent within the 
                Intelligence Community for--
                            (i) the specification of technical 
                        requirements for such reconnaissance 
                        systems as may be needed to meet the 
                        signals intelligence, imagery 
                        intelligence, and measurement and 
                        signatures intelligence collection 
                        requirements of the Intelligence 
                        Community; and
                            (ii) the operation and final 
                        disposition of such systems.
            (3) Establishing a single agency--
                    (A) to serve as the sole agent within the 
                Intelligence Community for the conduct of 
                research, development, test, and evaluation, 
                for procurement, and for launch of satellite 
                reconnaissance systems that may be required to 
                satisfy the intelligence collection 
                requirements of the Intelligence Community; and
                    (B) to serve as the primary agent within 
                the Intelligence Community for the conduct of 
                research, development, test, evaluation and for 
                procurement of reconnaissance, surveillance, 
                and sensor systems, including airborne and 
                maritime reconnaissance capabilities within the 
                National Foreign Intelligence Program and the 
                Joint Military Intelligence Program.
    (b) Criteria.--The study under subsection (a) shall--
            (1) take into account current and future 
        technological capabilities and intelligence 
        requirements;
            (2) take into account the costs and benefits 
        associated with establishing each of the agencies 
        described in paragraphs (1) through (3) of subsection 
        (a) as well as the costs and benefits of maintaining 
        the current system of distinct ``collection 
        stovepipes''; and
            (3) examine establishing each of the agencies 
        described in paragraphs (1) through (3) of subsection 
        (a) both on their individual merits and also with a 
        view toward having such agencies co-exist as an entire 
        new organizational structure.
    (c) Report.--Not later than April 15, 1997, the Director of 
Central Intelligence shall submit a report on the study to the 
following:
            (1) The President.
            (2) The Secretary of Defense
            (3) The Select Committee on Intelligence and the 
        Committee on Armed Services of the Senate.
            (4) The Permanent Select Committee on Intelligence 
        and the Committee on National Security of the House of 
        Representatives.

SEC. 817. INTELLIGENCE RESERVE CORPS.

    (a) Report on Corps.--Not later than four months after the 
date of the enactment of this Act, the Director of Central 
Intelligence shall submit to the appropriate committees of 
Congress a report on the Surge Augmentation Program to provide 
for an Intelligence Reserve Corps to serve as a surge or 
augmentation resource for the Intelligence Community. The 
report shall include such recommendations for legislation as 
the Director considers appropriate.
    (b) Appropriate Committees Defined.--In this section, the 
term ``appropriate committees of Congress'' means the 
following:
            (1) The Committee on Governmental Affairs and the 
        Select Committee on Intelligence of the Senate.
            (2) The Committee on Government Reform and 
        Oversight and the Permanent Select Committee on 
        Intelligence of the House of Representatives.

                      TITLE IX--FINANCIAL MATTERS

SEC. 901. AUTHORIZATION OF FUNDING PROVIDED BY 1996 SUPPLEMENTAL 
                    APPROPRIATIONS ACT.

    Amounts obligated or expended for intelligence or 
intelligence-related activities based on and otherwise in 
accordance with the appropriations provided by the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Public 
Law 104-134), including any such obligations or expenditures 
occurring before the enactment of this Act, shall be deemed to 
have been specifically authorized by the Congress for purposes 
of section 504 of the National Security Act of 1947 (50 U.S.C. 
414) and are hereby ratified and confirmed.
    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 the conference:
                                   Larry Combest,
                                   Robert K. Dornan,
                                   Bill Young,
                                   James V. Hansen,
                                   Jerry Lewis,
                                   Porter J. Goss,
                                   Bud Shuster,
                                   Bill McCollum,
                                   Michael N. Castle,
                                   Norman D. Dicks,
                                   Bill Richardson,
                                   Julian C. Dixon,
                                   Robert Torricelli,
                                   Ronald D. Coleman,
                                   David Skaggs,
                                   Nancy Pelosi,
                From the Committee on National Security, for 
                consideration of defense tactical intelligence 
                and related agencies:
                                   Bob Stump,
                                   Floyd Spence,
                                 Managers on the Part of the House.

                                   Arlen Specter,
                                   Dick Lugar,
                                   Richard Shelby,
                                   Mike DeWine,
                                   Jon Kyl,
                                   J.M. Inhofe,
                                   Kay Bailey Hutchison,
                                   Bill Cohen,
                                   Hank Brown,
                                   Bob Kerrey,
                                   John Glenn,
                                   Richard H. Bryan,
                                   Bob Graham,
                                   John F. Kerry,
                                   Max Baucus,
                                   J. Bennett Johnston,
                                   Charles S. Robb,
                From the Committee on Armed Services:
                                   Strom Thurmond,
                                   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. 3259) to 
authorize appropriations for fiscal year 1997 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 authorize appropriations for fiscal year 
1997.

            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 
1997 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 
1997 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 1997,
      Subsection (a) authorizes appropriations of $131,116,000 
for fiscal year 1997 for the activities of the Community 
Management Account (CMA) of the Director of Central 
Intelligence. This amount includes funds identified for the 
Advanced Research and Development Committee, which shall remain 
available for two years.
      Subsection (b) authorizes 303 full-time personnel for the 
Community Management Staff for fiscal year 1997 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.
      Subsection (d) authorizes $27,000,000 of the total CMA to 
be made available for the National Drug Intelligence Center 
(NDIC) in Johnstown, Pennsylvania. Subsection (d) is similar to 
section 104(e) of the House bill. The House bill authorized 35 
positions at NDIC to be funded in the National Foreign 
Intelligence Program (NFIP). The conferees agreed that these 
positions will continue to be funded in the Department of 
Defense Community Management Account.
      The Attorney General and the DCI have agreed to designate 
the NDIC as an element of the intelligence community, pursuant 
to section 3(4)(J) of the National Security Act of 1947, and 
accordingly the DCI shall approve the NDIC budget before its 
incorporation into the NFIP, pursuant to Section 104(b) of the 
National Security Act. The conferees anticipate that, as with 
the budget for the National Security Division of the FBI, the 
DCI will ordinarily approve the Attorney General's proposed 
budget for the NDIC without change or will make changes in the 
NDIC budget only after consultation with the Attorney General. 
Moreover, even though NDIC will be funded in the NFIP, the 
conferees emphasize that the DCI should not exercise direction 
or control over the operations of the NDIC. The conferees note 
that section 103(d)!1) of the National Security Act provides 
that the Central Intelligence Agency shall have no ``law 
enforcement powers.'' Although section 103(d)(1) specifically 
applies only to the CIA and not to the DCI, because the DCI is 
both head of the intelligence community and head of the CIA, 
the conferees believe it is important that the DCI not appear 
to be involved in managing law enforcement activities. 
Accordingly, section 104(d) of the conference report makes 
clear that amounts appropriated for the NDIC may not be used in 
contravention of section 103(d)(1) of the Act.
      Subsection (e) authorizes $18,000,000 of the total CMA to 
be made available for the Environmental Intelligence and 
Applications Program, formerly known as the Environmental Task 
Force, to remain available for two years.

 Title II--Central Intelligence Agency Retirement and Disability System

               sec. 201. authorization of appropriations

      Section 201 authorizes appropriations in the amount of 
$184,200,000 for fiscal year 1997 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 provided 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. limitation of availability of funds for automatic 
             declassification of records over 25 years old

      Section 303 limits the availability of funds authorized 
to be appropriated in the National Foreign Intelligence Program 
to $27.2 million for the purpose of carrying out Section 3.4 of 
Executive Order 12958, which directs the automatic 
declassification of documents older than 25 years. The 
provision is similar to section 303 of the House bill. The 
Senate amendment contained no similar provision.
      The conferees urge the Director of Central Intelligence 
to appoint one individual within the Community Management Staff 
to oversee programs to implement Section 3.4 in the 
intelligence community. This individual should be charged with 
ensuring the programs are making progress on the substantial 
task ahead of declassifying thousands of older documents while 
adequately protecting intelligence sources and methods. The 
individual should coordinate the preparation by the individual 
NFIP programs of the programs' FY 1998 budget requests for 
funds to implement Section 3.4.

   sec. 304. application of sanctions laws to intelligence activities

      Section 304 of the conference report extends until 
January 6, 1998 the authority granted by section 303 of the 
Intelligence Authorization Act for Fiscal Year 1996 for the 
President to stay the imposition of an economic, cultural, 
diplomatic, or other sanction or related action when the 
President determines and reports to Congress that to proceed 
without delay would seriously risk the compromise of an 
intelligence source or method or an ongoing criminal 
investigation. Section 304 is identical to Section 303 of the 
Senate amendment and similar to section 304 of the House bill.

                   sec. 305. expedited naturalization

      Section 305 provides for naturalization of certain 
applicants without their having met the normal statutory 
requirements relating to continuous residency and physical 
presence in the United States and lack of recent affiliation 
with the Communist Party or other totalitartion organization. 
The section would apply to the spouse, son, or daughter of a 
deceased alien whose death resulted from the intentional and 
unauthorized disclosure of classified information (such as by 
convicted spy Aldrich Ames) regarding the alien's participation 
in U.S. intelligence activities. Existing law provides for 
expedited naturalization for aliens who themselves have made 
extraordinary contributions to the national security of the 
United States or to U.S. intelligence activities.
      Naturalization benefits under this provision would have 
to be approved by the Director of Central Intelligence, the 
Attorney General, and the Commissioner of Immigration and 
Naturalization. Expedited naturalization would not be 
available, however, to aliens whom the Attorney General 
determines to have engaged in racial, religious, ethnic, or 
political persecution or to constitute a danger to the 
community or to the security of the United States.
      Section 305 is identical to Section 305 of the House 
bill. The Senate amendment had no similar provision.

 sec. 306. sense of the congress on intelligence identities protection 
                                  act

      Section 306 expresses the sense of the Congress that the 
Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 
et seq.) should be enforced by appropriate law enforcement 
agencies. The provision is identical to Section 306 of the 
House bill. The Senate amendment had no similar provision.
      The Intelligence Identities Protection Act makes it a 
crime for anyone with authorized access to classified 
information identifying a covert agent of the United States to 
disclose any information identifying that agent to an 
individual not authorized to receive classified information, 
knowing that information identifies the covert agent and that 
the U.S. is taking affirmative measures to conceal such covert 
agent's intelligence relationship to the United States.
      The conferees believe the Act should be enforced. The 
provision reflects concern about the apparent unwillingness of 
the Department of Justice to enforce the Act in several recent 
cases involving public officials and journalists. The conferees 
recognize that the decision whether to bring a prosecution 
under the Identities Act involves careful consideration of: 
whether each element of the offense can be proven; in those 
cases in which it is determined that each element of the 
offense can be proven, the need to deter future unauthorized 
disclosures; and an assessment of the risk of additional 
disclosures of classified information at trial. The conferees 
believe the Classified Information Procedures Act, enacted by 
Congress in 1980, can be used effectively to lessen the risks 
with using classified information in criminal trials. The 
conferees further believe that concerns about possible 
additional disclosures at trial should not be the sole 
determinant of whether the Identities Act is enforced.
      In addition to the disclosures of agent identities, the 
conferees are concerned about the apparent increase in the 
public disclosure of sensitive national security information 
generally. These disclosures have placed lives at risk and, in 
at least one instance, may have contributed to a number of 
deaths. The intelligence oversight committees have expressed 
intense concern to both the DCI and the Justice Department and 
will continue to exercise appropriate oversight into the 
measures and policies for safeguarding sensitive information.

              sec. 307. intelligence community procurement

      Section 307 expresses the sense of the Congress that the 
Director of Central Intelligence should continue to direct 
elements of the intelligence community to award contracts in a 
manner that would maximize the procurement of products produced 
in the United States, when such action is compatible with the 
national security interests of the United States, consistent 
with operational and security concerns, and fiscally sound. A 
provision similar to Section 307 has been contained in previous 
intelligence authorization acts. Section 307 is similar in 
intent to Sections 307 through 309 of the House bill. The 
Senate amendment had no similar provision.

 sec. 308. restrictions on intelligence sharing with the united nations

      Section 308 reflects the desire of the conferees to 
improve oversight over the sharing of U.S. intelligence with 
the United Nations and the safeguarding of such intelligence by 
the U.N. through improved security practices. The provision 
prohibits sharing of intelligence with the U.N. unless the 
President certifies that (1) procedures are in place to protect 
information provided from unauthorized disclosure of U.S. 
intelligence sources and methods, or (2) that providing such 
information is in the U.S. national interest. It also requires 
the President to provide semiannual reports to Congress on the 
types and volume of intelligence information provided to the 
U.N. and to report to Congress any unauthorized disclosure of 
intelligence information provided.
      The provision is identical to Section 310 of the House 
bill. The Senate amendment had no similar provision.

     sec. 309. prohibition on using journalists as agents or assets

      Section 309 of the conference report would codify as 
policy of the United States that the intelligence community may 
not use as an agent or asset for intelligence collection 
purposes any individual who is either: authorized by contract 
or the issuance of press credentials to represent himself or 
herself, either in the United States or abroad, as a 
correspondent of a United States news media organization or is 
officially recognized by a foreign government as a 
representative of a United States media organization. The 
prohibition against the use of such individuals as intelligence 
agents or assets is not to exclude the voluntary cooperation of 
any person who is aware that the cooperation is being provided 
to an element of the intelligence community. Additionally, 
under such procedures as the President shall promulgate, the 
prohibition against the use of journalists may be waived by 
either the President or the Director of Central Intelligence 
(DCI) if he or she determines in writing that the waiver is 
necessary to address the overriding national security interests 
of the United States. The congressional intelligence committees 
shall be notified of any waivers provided under this section.
      Section 309 is similar to section 311 of the House bill. 
The Senate amendment did not contain a similar provision.
      The conferees recognize the dangers faced by journalists 
working overseas if they are suspected of being spies. Section 
309 is intended to mitigate that danger to the maximum extent 
possible while providing the flexibility to deal with those 
extremely rare circumstances in which the national security 
interests of the United States can best be promoted by 
utilizing the voluntary cooperation of a journalist.

  sec. 310. report on intelligence community policy on protecting the 
     national information infrastructure against strategic attacks

      Section 301 requires the DCI to submit a report to 
Congress on the threats to the national information 
infrastructure from information warfare and other 
nontraditional attacks by foreign nations, groups, or 
individuals or other groups or individuals. Section 310 is 
similar to Section 719 of the Senate amendment except for 
drafting modifications. The House bill did not contain a 
similar provision.

                 Title IV--Central Intelligence Agency

 sec. 401. elimination of double surcharge on the central intelligence 
 agency relating to employees who retire or resign in fiscal year 1998 
    or 1999 and who receive voluntary separation incentive payments

      Section 401 corrects a discrepancy in existing law which 
currently requires the CIA to make double payments to the Civil 
Service Retirement and Disability Fund for those Agency 
employees who take an early retirement. Section 4(a) of the 
Federal Workforce Restructuring Act (FWRA) requires agencies 
that offer retirement incentives, including CIA, to pay to the 
Fund 9 percent of the final basic pay of each employee who 
takes an early retirement. In addition, section (2)(i) of the 
CIA Voluntary Separation Pay Act (CVSPA), enacted as part of 
the Intelligence Authorization Act for Fiscal Year 1996, 
requires the CIA to make a 15 percent payment for each employee 
who takes an early retirement.
      It was not Congress' intent to have CIA make double 
payments totalling 24 percent to the Fund. Accordingly, Section 
401 of the conference report provides that the 15 percent 
payment CIA is required to pay under CVSPA is in lieu of the 9 
percent payment required under the FWRA.
      Section 401 is identical to section 402 of the House 
bill. The Senate amendment did not contain a similar provision.

                 sec. 402. post-employment restrictions

      Section 402 of the conference report requires the 
Director of Central Intelligence to issue regulations requiring 
designated employees of the Central Intelligence Agency to sign 
written agreements committing not to represent or advise, for a 
period of three years after that employee's termination of 
employment with the CIA, the government or political party of 
any foreign country.
      Section 402 is similar to Section 304 of the Senate 
amendment. The House bill did not contain a similar provision. 
The conferees agreed to a provision that is narrower than the 
Senate amendment in two respects. First, the written agreements 
would be required only of certain designated officials. The 
conferees expect that the DCI would designate senior Agency 
officials or others who have had significant contact with 
foreign governments such that their representation of a foreign 
government immediately after their cessation of employment with 
the Agency might create the appearance of a conflict of 
interest. Second, the restrictions would apply only for a 
period of three years, rather than five, following the 
employee's departure from CIA. The conferees have also modified 
the provision to allow the DCI to permit an employee to 
represent or advise a foreign government if the DCI determines 
that it would be in the best interest of the United States (for 
example, to allow a former CIA employee to assist an allied 
government with which the U.S. has a close liaison 
relationship).

         Title V--Department of Defense Intelligence Activities

  sec. 501. executive branch oversight of budgets of elements of the 
                         intelligence community

      Section 501 requires the President to submit a report to 
Congress on actions that have been taken to ensure adequate 
oversight by the executive branch of the budget and 
expenditures of the National Reconnaissance Office and other 
elements of the intelligence community within the Department of 
Defense. The provision is identical to Section 305 of the 
Senate amendment. The House bill did not contain a similar 
provision.

               Title VI--Federal Bureau of Investigation

                 sec. 601. access to telephone records

      Section 601 amends Sections 2703 and 2709 of Title 18, 
United States Code to clarify that the ``telephone toll billing 
records'' which the Federal Bureau of Investigation may 
subpoena in certain law enforcement investigations include not 
only long distance but also local billing records. Section 601 
also amends Section 2707 of Title 18 to allow courts to award 
punitive damages, and to institute disciplinary actions against 
employees of U.S. agencies or departments, for violations of 
Chapter 121 of Title 18.
      Section 601 is identical to Section 401 of the Senate 
amendment. The House bill did not contain a similar provision.

                  Title VII--Combatting Proliferation

      Title VII contains a number of provisions relating to 
proliferation of weapons of mass destruction. Sections 711 
through 717 establish and define the duties of a Commission to 
Assess the Organization of the Federal Government to Combat the 
Proliferation of Weapons of Mass Destruction. The eight members 
of the Commission are to be appointed by the President and the 
congressional leadership. The Commission is required to conduct 
a study of the organization of the federal government, 
including the intelligence community, for combatting weapons 
proliferation. Section 711 of the conference report sets forth 
a specific list of issues for the Commission to address. The 
Commission is required to submit a report to Congress not later 
than eighteen months after enactment of this legislation. The 
conferees modified Section 717 to provide that commission 
expenses shall be paid out of funds available to the DCI for 
the payment of compensation, travel allowances, and per diem of 
CIA employees.
      Section 721 of the conference report requires the 
Director of Central Intelligence to submit a semiannual report 
to Congress on the acquisition by foreign countries of 
technology for the development of weapons of mass destruction 
and advanced conventional munitions.
      Title VII of the conference report is similar to Title VI 
of the Senate amendment. The House bill contained no similar 
provision.

       Title VIII--Renewal and Reform of Intelligence Activities

      Title VIII of the conference report contains provisions 
intended to make the Intelligence Community operate more 
effectively and more efficiently in the post-Cold War world. 
These provisions would create two committees of the National 
Security Council, one to provide better guidance to the 
intelligence community and the other to provide senior-level 
guidance on issues raised by the intersection of law 
enforcement and intelligence, particularly relating to 
terrorism, narcotics trafficking, and weapons proliferation. In 
addition, provisions in this section strengthen the ability of 
the Director of Central Intelligence to manage the Intelligence 
Community by codifying his authority to participate in the 
development of the budgets for defense-wide and tactical 
intelligence and to concur or be consulted with respect to the 
appointments of the heads of the principal NFIP agencies. 
Giving the DCI a database of all intelligence activities and 
requiring all NFIP elements to submit periodic budget execution 
reports should enable the DCI to make better use of his 
existing authorities--given to him by Congress in 1992--to 
approve the budgets of NFIP elements and to transfer funds and 
personnel with the concurrence of affected agency heads. The 
conferees urge the DCI to be more assertive in using these 
authorities. The bill also establishes a new Senate-confirmed 
Deputy Director of Central Intelligence for Community 
Management and three new Senate-confirmed Assistant Directors 
of Central Intelligence to assist the DCI in managing the 
Intelligence Community. Finally, the conference report 
clarifies the authority of intelligence collection agencies to 
provide support to law enforcement agencies.
      Title VIII is similar to Title VII of the Senate 
amendment. As originally reported by the Senate Intelligence 
Committee as part of S. 1718, Title VII would have given the 
DCI budget execution authority over most elements of the 
National Foreign Intelligence Program; authority to reprogram 
funds among NFIP programs over the objection of the affected 
department head; authority to manage the national collection 
activities of the intelligence community; and shared 
responsibility--with the Secretary of Defense--for managing the 
National Security Agency, the National Reconnaissance Office, 
and the Central Imagery Office. After extensive discussions 
with the Senate Armed Services Committee, the Senate 
Intelligence Committee agreed to drop or modify a number of 
these provisions.
      Although the House bill, H.R. 3259, contained no similar 
provisions, the House Permanent Select Committee on 
Intelligence also undertook a major review of the roles, 
functions, and structure of the intelligence community during 
the 104th Congress. On April 9, 1996, the House Committee 
released a study entitled ``IC21: Intelligence Community in the 
21st Century,'' which set forth the findings and 
recommendations of the Committee staff. On June 13, 1996, the 
House Committee reported H.R. 3237, which would have enacted 
many of the recommendations of the staff study and would have 
made significant changes to the current organization of the 
intelligence community. The House National Security Committee, 
which took H.R. 3237 on sequential referral, deleted many of 
these provisions, and the bill was never brought to the House 
floor.
      The conferees believe that the provisions of Title VIII 
will help ensure that various elements of the intelligence 
community operate more cohesively and without unnecessary 
duplication. That the conferees agreed to more limited 
organizational changes this year does not mean that some of the 
more far-reaching changes proposed by S. 1718 and H.R. 3237 are 
without merit. To the contrary, the provisions in both bills 
were the culmination of exhaustive study by both committees as 
well as by the Commission on the Roles and Capabilities of the 
U.S. Intelligence Community, the 17-member congressionally 
chartered commission which submitted its report to Congress on 
April 1, 1996, and deserve further consideration. The conferees 
specifically agreed that the DCI should study the establishment 
of an Intelligence Community Reserve and that the DCI and the 
Secretary of Defense should study the feasibility of creating a 
single technical collection agency as well as other specified 
agencies--the creation of which was recommended by the IC-21 
study. The conferees anticipate that some of the other 
provisions in S. 1718 and H.R. 3237 that were not enacted this 
year will be taken up again in the 104th Congress.

                              section 801

      Section 801 contains the short title VIII, the 
``Intelligence Renewal and Reform Act of 1996.''

                              section 802

      Section 802 amends Section 101 of the National Security 
Act of 1947 to create a Committee on Foreign Intelligence of 
the National Security Council. Section 802 is identical to 
Section 702 of the Senate amendment.

                              section 803

      Section 803 amends Section 109 of the National Security 
Act to require the President to submit an annual report to 
Congress on U.S. intelligence requirements and priorities and 
the performance of the U.S. Intelligence Community. Section 803 
is identical to Section 703 of the Senate amendment.

                              section 804

      Section 804 amends Section 101 of the National Security 
Act of 1947 to create a Committee on Transnational Threats of 
the National Security Council. Section 804 is identical to 
Section 704 of the Senate amendment.
      The Committee on Transnational Threats would identify 
transnational threats; develop strategies to respond to them in 
a coordinated way; assist in resolving operational differences 
among federal departments and agencies; develop policies and 
procedures to ensure the effective sharing of information among 
federal departments and agencies, including between the law 
enforcement and foreign policy communities; and develop 
guidelines for coordination of federal law enforcement and 
intelligence activities overseas.
      The conferees note, that in response to the growth in 
global crime and the increasing number of U.S. statutes with 
extraterritorial application, the Federal Bureau of 
Investigation is significantly expanding its presence and 
activities outside the United States. The conferees are 
interested in the growth of these activities and the degree to 
which Bureau investigations, recruitment of assets, liaison 
with foreign intelligence services, and operational activities 
are coordinated with U.S. intelligence agencies. Accordingly, 
the conferees direct that, beginning no later than February 1, 
1997, the Director of the Federal Bureau of Investigation shall 
submit an annual report to the appropriate congressional 
committees regarding the activities of the Bureau outside the 
United States. The report shall specify the number of Bureau 
personnel posted or detailed outside the United States and the 
extend to which the Bureau plans to increase the number of such 
personnel and/or the scope of its overseas activities. The 
report should describe how Bureau overseas investigations, 
asset handling, liaison, and operational activities are 
coordinated with the Intelligence Community, and the extent to 
which information derived from such activities is or will be 
shared with the Intelligence Community. The intelligence 
committees plan to monitor these matters closely.

                              section 805

      Section 705 of the Senate amendment would have amended 
Section 102 of the National Security Act of 1947 to add a new 
subsection (d) to establish an Office of the Director of 
Central Intelligence to include the DCI, the DDCI; the newly 
established positions of Assistant DCI for Collection, 
Assistant DCI for Analysis and Production, Assistant DCI for 
Administration, the National Intelligence Council, and such 
other offices as the DCI may designate.
      The conferees agreed to accept the provisions in the 
Senate amendment with the addition of a new Deputy Director for 
Community Management (DDCI/CM), to whom the three new Assistant 
Directors would report. This DDCI for Community Management will 
be appointed by the President and confirmed by the Senate. This 
Deputy will work under the direction of the DCI and is 
responsible for assisting him in carrying out his 
responsibilities as head of the Intelligence Community. The 
DDCI/CM will manage a community management staff and direct 
community-wide functions, including personnel, resources, 
requirements, collection, research and development, and 
analysis and production.
      The conferees recognize that there is always the 
potential that positions requiring Presidential appointment and 
Senate confirmation may be subject to inappropriate political 
pressures. This is of particular concern with respect to the 
Assistant Director of Central Intelligence for Analysis and 
Production. Nevertheless, the conferees believe the significant 
advantages in terms of stature and congressional oversight 
afforded by making this a confirmable position outweigh that 
potential concern. Moreover, the intelligence oversight 
committees will be vigilant in their efforts to ensure there is 
no politicization of these positions. The extensive focus on 
charges of politicization during the Senate confirmation of 
Robert Gates to be the DCI in 1991 demonstrates the seriousness 
with which the Congress views this issue. In reviewing 
potential nominees for any of the confirmable positions within 
the Intelligence Community and in the course of its oversight, 
the Congress will look carefully for any evidence that an 
individual has tailored his or her views to curry favor with 
the Administration or Congress, or that an individual has 
suffered retribution for failing to succumb to political 
pressure.
      As amended by Section 805, section 102(d)(3) of the 
National Security Act directs the DCI to employ and utilize a 
professional staff to assist him in carrying out his Community-
wide responsibilities. This staff would be part of the Office 
of the DCI. The staff could, at the DCI's discretion, operate 
as a unit, or be divided among the Deputy Director for 
Community Management and the three new Assistant DCIs. The 
conferees anticipate that this staff would replace the 
functions of the current Community Management Staff and, while 
it should include some detailees from the Intelligence 
Community, would consist primarily of a core staff of career 
professionals.
      Section 805 also transfer the current section 102(a)(1) 
of the National Security Act, which establishes the Central 
Intelligence Agency, to a new section 102A of the National 
Security Act. Section 102A would reference Section 103(d), 
which sets forth the responsibilities of the Director of 
Central Intelligence as head of the CIA.

                              section 806

      Section 806, concerning the National Intelligence 
Council, is identical to Section 706 of the Senate amendment 
except that the NIC would also specifically be directed to 
evaluate intelligence community-wide collection and production 
activities.

                              section 807

      Section 807 strengthens the DCI's authorities as head of 
the intelligence community. It gives the DCI authority to 
participate in the development by the Secretary of Defense of 
the annual budgets for JMIP and TIARA; authority to approve 
collection requirements, determine collection priorities, and 
resolve conflicts in collection priorities levied on national 
collection assets; and the right to be consulted by the 
Secretary of Defense with respect to reprogrammings of funds 
within the JMIP.
      The provision also directs the DCI and the Secretary of 
Defense to develop, no later than January 1, 1999, a database 
of all intelligence and intelligence-related programs and 
activities, which would specify the purpose of each program or 
activity and include information for past and future years on 
the types and quantities of resources planned, programmed, 
budgeted, and executed in support of specific objectives. The 
conferees noted that the Office of Science and Technology 
Policy within the White House has recently developed a database 
of all research and development activities within the federal 
government and that this database has been invaluable for 
identifying duplication among federal R&D; programs. The 
conferees believe that the DCI has been hampered in his ability 
to manage the intelligence community by a lack of accurate and 
comprehensive information about all intelligence community 
activities. Development of a database for intelligence 
activities should give the DCI crucial analytical and 
supervisory tools he needs to provide better direction to and 
control over U.S. intelligence programs. The conferees have 
provided funding for the development of the database and urge 
the DCI and the Secretary of Defense to move ahead as quickly 
as possible.
      Section 807 is similar to Section 707 of the Senate 
amendment. In addition to minor drafting changes, the provision 
has been modified to specifically require the DCI and the 
Secretary of Defense to prescribe guidelines to require 
reporting of budget execution data on all intelligence 
activities to the DCI and the Secretary of Defense. This is to 
ensure that this data is available to the DCI and Secretary of 
Defense during FY 1997 and is not held up pending development 
of the database.
      In addition, a new subsection has been added requiring 
the DCI to submit an annual report to Congress, for the next 
three years, on the steps he has taken under Section 104(f) of 
the National Security Act to rotate personnel, and to 
consolidate personnel, administrative, and security programs, 
among intelligence community elements. The DCI was given this 
authority in 1992 but appears to be making little use of it.

                              section 808

      Section 808 is identical to Section 708 of the Senate 
amendment. The Section requires the DCI to submit to the 
Committee on Foreign Intelligence and the appropriate 
congressional committees an evaluation of the performance and 
responsiveness of the NSA, NRO, and NIMA in meeting their 
national missions.

                              section 809

      Section 809(a) of the conference report adds a new 
subsection (f) to Section 102 of the National Security Act of 
1947 to establish the position of Assistant Director of Central 
Intelligence for Collection. This position will be appointed by 
the President and confirmed by the Senate.
      The ADCI for Collection will be one of three new 
Assistant Directors of Central Intelligence who will assist the 
DCI in carrying out his Community-wide management 
responsibilities. The ADCI for Collection will assist the DCI 
in carrying out his intelligence collection responsibilities. 
The ADCI for Collection will oversee all national intelligence 
collection activities, including identifying targets, setting 
priorities, and allocating resources where a particular 
intelligence collection discipline offers a comparative 
advantage. In performing this role, it is expected that the 
ADCI for Collection will be responsible for the effective and 
efficient operation of the interagency collection committees--
including those focusing on IMINT, HUMINT, SIGINT, an MASINT--
to ensure national collection requirements, priorities, and 
resources are consistent with intelligence consumer needs. 
Further, the ADCI for Collection will rely upon the ADCI for 
Analysis and Production for guidance on current collection 
requirements and for an assessment of the need for the 
acquisition of future collection capabilities. The ADCI for 
Collection will also assist in implementing the DCI's 
authorities regarding the procurement and operation of national 
collection systems under development by other agencies and 
assist the DCI in formulating plans and budgets of national 
collection activities.
      Section 809(b) requires the DCI and the Deputy Secretary 
of Defense to submit, no later than 90 days after enactment of 
this Act, a report on their efforts to coordinate and, where 
practicable, consolidate the human intelligence collection 
activities of the clandestine collection elements of the 
Defense HUMINT Service and CIA's Directorate of Operations 
(DO). The conferees note that the Aspin-Brown Commission 
recommended that the clandestine HUMINT collection activities 
of the Defense HUMINT Service be consolidated into the DO. The 
report should address the desirability of such a consolidation.

                              section 810

      Section 810 adds a new section (g) to Section 102 of the 
National Security Act of 1947 to establish the position of 
Assistant Director of Central Intelligence for Analysis and 
Production. This position will be appointed by the President 
and confirmed by the Senate.
      The ADCI for Analysis and Production will assist the DCI 
in overseeing analysis and production of intelligence by the 
Intelligence Community, establish priorities for analysis, and 
monitor the allocation of resources in order to eliminate 
unnecessary duplication in analysis and production thus 
ensuring timely delivery of intelligence products to consumers.
      Intelligence analysis and production of analytical 
products is broadly dispersed across the Intelligence 
Community. Although some competitive analysis is necessary and 
some products are needed to serve only the needs of a single 
department or agency, most analysis supports the entire policy 
community. The DCI currently lacks an effective mechanism to 
review and supervise adequately intelligence analysis and 
production community-wide in order to ensure the most effective 
allocation of resources and to eliminate unnecessary 
duplication. Intelligence producers have worked together 
voluntarily to reduce overlaps, but the conferees believe that 
a better management structure is needed. The new ADCI for 
Analysis and Production would provide the basis for this 
structure. The conferees do not expect the ADCI for Analysis 
and Production to perform intelligence production functions or 
roles similar to those currently performed by the Chairman and 
members of the National Intelligence Council, CIA's Deputy 
Director for Intelligence, the Assistant Secretary of State for 
Intelligence & Research, or DIA's Director of Production.

                              section 811

      Section 811 adds a new subsection (h) to Section 102 of 
the National Security Act of 1947 to establish the position of 
Assistant Director of Central Intelligence for Administration. 
This position will be appointed by the President and confirmed 
by the Senate.
      Numerous studies, including the Aspin-Brown Commission, 
have urged greater consolidation of personnel and 
administrative functions and use of common standards across the 
Intelligence Community. The largest agencies, nevertheless, 
continue to maintain separate administrative, personnel, 
security, and training systems. The Aspin-Brown Commission 
concluded ``While the Commission is willing to accept that some 
latitude is needed for individual agencies to satisfy their 
unique requirements, we see no reason for all of these programs 
and activities to be administered separately, or, at least 
without greater uniformity.'' The conferees agree with this 
conclusion.
      The role of the proposed ADCI for Administration would be 
to assist the DCI in bringing about this uniformity. The ADCI 
for Administration would coordinate the various personnel 
management systems, information systems, telecommunications 
systems, finance and accounting services, and security programs 
for the Intelligence Community. The conferees expect that the 
ADCI for Administration would also assist the DCI in exercising 
his authorities under Section 104(f) of the National Security 
Act to consolidate personnel, administrative, and security 
programs of Intelligence Community elements.

                              section 812

      Section 812 amends Section 5315 of Title 5, United States 
Code, to place the positions of Deputy Director of Central 
Intelligence and Deputy Director of Central Intelligence for 
Community Management at Executive Level III and the positions 
of Assistant Director of Central Intelligence for Collection, 
Assistant Director of Central Intelligence for Analysis and 
Production, Assistant Director of Central Intelligence for 
Administration, at Level IV of the Executive Schedule. Section 
812 is similar to Section 712 of the Senate amendment.

                              section 813

      Section 813, which establishes the statutory position of 
General Counsel of the CIA, is identical to Section 713 of the 
Senate amendment, except that the conferees have modified the 
provision to provide that it shall take effect no later than 
six months from the date of enactment of this Act or upon the 
appointment of a General Counsel other than the individual 
occupying the position on the date of enactment of this Act, 
whichever is sooner. Thus, whoever occupies the non-statutory 
position of General Counsel at the time this provision is 
enacted may continue to occupy that position for up to six 
months after enactment before a formal nomination must be 
submitted to the Senate. Nothing in the provision would prevent 
the President from nominating the individual serving as non-
statutory General Counsel at the time of enactment for the 
statutory General Counsel position. It is the intent of the 
conferees, however, that the President either nominate this 
individual to be the statutory General Counsel within six 
months of the date of enactment of this Act or, if this 
individual leaves the position of non-statutory General Counsel 
in less than six months, that the President nominate another 
individual to fill the statutory General Counsel position.
      The conferees do not intend in any way that the 
establishment of the statutory General Counsel position limit 
the ability of the CIA Inspector General to obtain independent 
legal advice from members of the IG's staff or to otherwise 
carry out the duties of that office as provided for in section 
17 of the CIA Act of 1949 (50 USC 403q). However, where an IG 
determination or report includes a legal opinion that differs 
from that of the CIA's Office of General Counsel, that 
difference of opinion should be noted. This would apply to 
reports presented to the DCI, briefings for Congress, or any 
other context in which IG legal opinions are presented.

                              section 814

      Section 814 creates a new Section 105A of the National 
Security Act that authorizes intelligence community elements to 
collect information about non-U.S. persons outside the United 
States at the request of U.S. law enforcement agencies. The 
section is identical to Section 715 of the Senate amendment, 
except that the Defense Intelligence Agency has been added to 
the list of Department of Defense agencies to which this 
provision applies.

                              section 815

      Section 815 amends Section 106 of the National Security 
Act to require the DCI to concur in, or be consulted regarding, 
the appointment of the heads of the principal NFIP elements. 
Section 815 is identical to Section 716 of the Senate 
amendment, with two modifications.
      First, the Director of the National Imagery and Mapping 
Agency has been added to the list of agency heads for which DCA 
concurrence is required. This authority had originally been 
included separately in provisions relating to the appointment 
of the Director of NIMA. The conferees note that the conference 
report accompanying the National Defense Authorization Act for 
Fiscal Year 1997 also codifies the DCI's authority to concur in 
the appointments of the heads of NSA, NRO, and NIMA in Section 
201 of Title 10, U.S. Code. The DoD bill also requires the DCI 
to provide to the Secretary of Defense an annual evaluation of 
the performance of the heads of NSA, NRO, and NIMA in 
fulfilling their responsibilities under the NFIP.
      In addition, the conferees have modified the original 
Senate language regarding DCI consultation on the Assistant 
Director, National Security Division of the Federal Bureau of 
Investigation. This individual is selected by the Attorney 
General upon the recommendation of the Director of FBI. The 
bill now calls for timely notice to the DCI of the Director of 
FBI's recommendation regarding this position. The conferees 
understand that for the purposes of this section timely notice 
means notice will be provided at a sufficiently early stage in 
the process that consultation is still meaningful and that the 
DCI will be provided sufficient time to respond to the 
notification prior to the recommendation being forwarded to the 
Attorney General. At the same time, the DCI should not use this 
opportunity for consultation as a means of delaying this 
process.
      The conferees also emphasize that, by requiring the DCI 
to be consulted regarding the appointment of the head of the 
FBI's National Security Division, they do not intend to give 
the DCI control over FBI law enforcement activities. 
Nevertheless, the head of the National Security Division 
manages a significant portion, both in budgetary and 
substantive terms, of the NFIP, and the conferees believe it is 
wholly appropriate that the DCI have some voice in his or her 
appointment.

                              section 816

      Section 816 of the conference report directs the DCI, in 
consultation with the Deputy Secretary of Defense, to study the 
appropriate organization and management of intelligence 
collection for the future. A report on the study is to be 
forwarded to the President, the Secretary of Defense, and the 
appropriate Congressional committees no later than April 15, 
1997. The conferees expect that the Assistant DCI for 
Collection will manage the production of this study on behalf 
of the DCI.
      The study should examine how the Intelligence Community's 
collection apparatus can best function in the future, and not 
merely perform an examination of the effectiveness of the 
Intelligence Community at present or in the recent past, except 
to the extent such an examination illuminates the direction 
that must be taken in the future. The section specifies that 
the study must specifically include, but need not be limited 
to, feasibility studies of three changes to the current 
Intelligence Community structure: (1) the establishment of a 
Clandestine Service; (2) the establishment of a Technical 
Collection Agency; and (3) the establishment of a Technology 
Development Office.
      The study should consider the merits of establishing a 
Clandestine Service responsible for the clandestine collection 
of intelligence through human sources and other clandestine 
means; the carrying out of covert action as directed by the 
President; and acting as the DCI's principal entity in carrying 
out liaison with foreign intelligence and security services. 
The study should keep in mind that this particular entity, the 
Clandestine Service (unlike the others under consideration), 
would have roles and missions outside the realm of intelligence 
collection. The study should also pay particular attention to 
the fact that a Clandestine Service's activities are, generally 
speaking, intrinsically risky and require the close oversight 
of the DCI. The study should also consider how military 
personnel might be integrated into a Clandestine Service in a 
manner allowing their proper career development and their being 
able to function as clandestine collectors under operational 
guidelines developed under DCI authorities.
      The study should consider the costs and benefits 
associated with consolidating technical collection activities 
and exploitation into a single agency, not necessarily in one 
physical location but under a unified management structure. 
This agency would include all current signals intelligence, 
imagery intelligence and measurement and signatures 
intelligence collection and time-sensitive exploitation 
activities, including the operation of satellite collection 
systems. The study should consider whether consolidation would 
improve synergistic collection at the operator level, integrate 
multi-source tasking at the collection management level, and 
achieve cross-discipline trade-offs at the resources management 
level. The study should consider in particular how the agency 
as proposed would further or hinder these goals, and whether 
such a consolidation would further or hinder other identified 
goals for intelligence collection. This study should also 
examine whether the first-phase analysts exploiting the data 
collected for time-sensitive reporting should be integrated 
with the all-source analytical community and, if so, how.
      The study should also consider the costs and benefits of 
consolidating research, development and acquisition activities 
for reconnaissance systems into a single agency responsible 
primarily for space-based, airborne and maritime reconnaissance 
systems. The study should consider whether consolidation would 
improve coherent development and complementary architectures, 
particularly in the space and air realms; promote development 
of common ground processing and dissemination capabilities; 
reduce unnecessary duplication; and promote the sharing of 
appropriate technologies.
      Section 816 is a new provision. No similar provision was 
included in either the House bill or Senate amendment.

                              section 817

      Section 817 of the conference report requires the DCI to 
submit a report within four months of enactment describing the 
current efforts to establish a Surge Augmentation Program and 
making appropriate legislative recommendations.
      The conferees believe that significant reductions in 
personnel and other resources throughout the Intelligence 
Community over the past few years, combined with significant 
increases in the need for intelligence information, have 
created a shortfall in analytic resources, especially in the 
areas of all-source analysis and linguists. Ad hoc crises, such 
as Rwanda and Somalia, further underscore the need for the 
Intelligence Community to be flexible enough to ``surge'' 
resources to meet immediate needs and to have a capability to 
augment existing resources in order to develop and maintain a 
worldwide ``base'' of knowledge. Such an intelligence ``base'' 
should allow for identification of trends and other changes 
that could portend future actions by U.S. policy makers. This 
warning function becomes critical both to the policy maker by 
providing adequate time to manage an impending situation before 
it develops into a crisis and to the military commander in 
cases where the proper policy response includes military 
activity. DCI Deutch has been addressing the same concerns in 
his ``Hard Target/Global Coverage'' efforts.
      The conferees note that it is unlikely that internal 
Intelligence Community resources will ever be robust enough to 
meet all of the requirements that will be levied on them. The 
ability to augment existing resources with individuals who have 
intelligence experience and/or have maintained a level of 
substantive knowledge could prove invaluable in addressing what 
appears to be an ongoing pattern of small, often regional 
crises and situations. In this respect, a portion of the Surge 
Augmentation Program, or ``Intelligence Community Reserve,'' 
could operate similarly to existing military intelligence 
reserve resources, with periodic training and service within 
the Community in order to maintain expertise. In some cases, 
individuals who are our country's experts in certain areas are 
likely to be outside of the Intelligence Community--in industry 
or academia, for example--and should remain so in order to 
maintain their level of knowledge and contacts worldwide. In 
those cases, however, it would be extremely beneficial for the 
Intelligence Community to have access to this knowledge on an 
occasional basis. Although it is not envisioned that someone 
outside of the Intelligence Community would be asked to 
``serve'' the Intelligence Community Reserve in the same 
capacity as those individuals who have had a prior association, 
it is envisioned that these ``experts'' might be held on a type 
of retainer requiring them to notify the Intelligence Community 
on a regular basis of significant trends and changes in their 
issue area. In addition, particular attention should be paid to 
building a linguistic ``surge'' capability, especially in more 
unique or less known languages, for use during crisis periods. 
Finally, the conferees believe that the Intelligence Community 
Reserve should be managed and funded at the Community level, 
ensuring that all valid ``surge'' requirements by all agencies/
offices within the Intelligence Community are planned for and 
addressed as necessary.
      Due to the complexities of issues such as pay, security, 
training and support, the conferees are not establishing the 
Reserve in legislation at this time. Instead, the DCI is 
directed to provide a report on current efforts and any 
legislation that might be considered by Congress.
      Finally, the conferees note that the Intelligence 
Community Reserve is not envisioned as a panacea for addressing 
shortfalls in intelligence analytical expertise. Clearly, 
specific attention must be paid toward maintaining an 
experienced analytic workforce in specific subject areas that 
are of national security and policy concern.

                   Title IX--Miscellaneous Provisions

   SEC. 901. AUTHORIZATION OF FUNDING PROVIDED BY 1996 SUPPLEMENTAL 
                           APPROPRIATIONS ACT

      Section 901 of the conference report is identical to 
section 601 of the House bill. The Senate amendment did not 
contain a similar provision. The section provides that funds 
appropriated as part of the supplemental appropriation in the 
Omnibus Consolidated Rescissions and Appropriations Act of 1996 
for intelligence, and intelligence-related activities in Bosnia 
shall be deemed to be specifically authorized for purposes of 
Section 504 of the National Security Act.
Provisions not included in the Conference Report
            Multiyear leasing
      Section 401 of the House bill would have amended the 
Central Intelligence Agency Act of 1949 to authorize the CIA to 
enter into multiyear leases for buildings and other facilities. 
However, an amendment added on the House floor would have 
required that the leases be fully funded in advance. As this 
requirement would have vitiated the effectiveness of the 
provision, the conferees agreed to drop it.
            Intelligence Community personnel reforms
      On April 23, 1996 DCI Deutch unveiled a CIA human 
resources reform initiative that will affect Intelligence 
Community personnel at the CIA and in various DoD agencies. The 
presentation of the personnel reform package had been long 
awaited by both intelligence committees as the DCI had stated 
on numerous occasions the priority he was attaching to 
revamping an ancient and antiquated personnel system. The 
sweeping nature of the CIA human resources reform proposal and 
the initial lack of specificity concerning its contents led the 
House Committee to include a provision in its bill (Section 
403) to prevent expenditure of any funds until the Congress was 
fully briefed. The Senate amendment did not contain a similar 
provision. The CIA has now provided extensive briefings to both 
committees regarding its program; therefore, the conferees have 
agreed to drop the House provision.
      The conferees have provided funding for the CIA personnel 
reform initiative albeit at a level substantially below the 
requested amount. The funding level is contained in the 
classified schedule of authorizations. The conferees concur 
with the CIA's view that the initial priorities should be the 
acquisition and installation of a new Human Resources 
Information System, the completion of a job skills analysis and 
implementation of associated training and educational programs.
      The conferees initially understood that the CIA would 
issue a ``Request for Proposal'' (RFP) for the Human Resources 
Information System software component, but without informing 
the Congress, the CIA changed course and decided not to compete 
the contract. It is the view of the conferees that RFP's help 
to immunize the CIA from potential protests and enable the CIA, 
in the most transparent way possible, to identify the best 
contractor at the lower cost. Apparently, following a 
refinement of the requirements and the completion of an 
exhaustive market survey of the various software packages 
available, it was determined that only one vendor met and 
demonstrated the CIA's software requirements. Thus, the CIA 
expects to issue a single source contract in keeping with 
standard contracting procedures. It is the conferees 
understanding that the single source contract is for the 
acquisition of the software package only and that the systems 
integration, systems engineering and implementation components 
of the Human Resources Information System will be competitively 
bid. The conferees expect to be kept fully and currently 
informed of this process.
            FOIA exemptions for certain defense agencies
      Section 501 of the House bill would have amended and 
consolidated the information disclosure statutes for the 
Defense Intelligence Agency (DIA) and the National 
Reconnaissance (NRO), 10 U.S.C. 424 and 425 respectively, to 
permit the two organizations to withhold from release in 
response to Freedom of Information Act (FOIA) requests 
unclassified information relating to those agencies' 
organization, functions, and personnel. The Senate amendment 
did not contain a similar provision. The House recedes.
      The conferees note that Section 1112 of the National 
Defense Authorization Act for Fiscal Year 1997 included a 
provision, added at conference, that is similar to Section 501 
of the House bill but that covers personnel and organizational 
information of the National Imagery and Mapping Agency (NIMA) 
as well as of NRO and DIA. The conferees agree that it is 
legitimate to protect from disclosure personnel information 
relating to DIA, NRO, and NIMA because their employees may be 
counterintelligence targets. But the conferees have some 
reservations about providing a blanket exemption against 
disclosure of unclassified information about the organization 
and functions of these agencies. The conferees note that, when 
the NRO's information disclosure statute was enacted in 1992, 
Congress specifically declined to extend the provision to cover 
unclassified organizational information about the NRO.
      The conferees understand that the Senate Armed Services 
Committee and the House National Security Committee may 
reconsider whether the blanket exemption for all organizational 
and functional information is appropriate. In the interim, the 
conferees urge DIA, NRO, and NIMA to use the exemption 
sparingly to protect only that information which is truly 
sensitive and not as a reason to deny all FOIA requests for 
information about their organization or functions.
            Tier III minus UAV
      Section 502 of the House bill authorized an additional 
$22 million for the Tier III minus unmanned aerial vehicle. The 
Senate amendment did not contain a similar provision. The 
authorization level for this program has been included in the 
Classified Schedule of Authorizations, and accordingly the 
conferees agreed that the provision is not necessary.
            Economic espionage
      Title V of the Senate amendment contained provisions 
criminalizing theft of economic proprietary information 
undertaken on the behalf of, or with the intent to benefit, a 
foreign government or its agent. The House bill did not contain 
similar provisions.
      This legislation was initially introduced by Senator 
Arlen Specter and Senator Herb Kohl as S. 1557 (the Economic 
Espionage Act), along with additional legislation, S. 1556 (the 
Industrial Espionage Act), to provide a broader criminal 
statute for general industrial espionage. The provisions of S. 
1557 were then adopted by the Senate Select Committee on 
Intelligence as part of S. 1718, the Intelligence Authorization 
Act for fiscal year 1997. Subsequent to the SSCI action on this 
provision, the Senate and House adopted legislation 
encompassing provisions similar to both the Economic Espionage 
Act and the Industrial Espionage Act. Thus, the conferees 
agreed to drop this provision from the Intelligence 
Authorization Act.
            Budget disclosure
      Section 718 of the Senate amendment contained a provision 
requiring the President, as part of his annual budget 
submission to Congress, to provide in unclassified form the 
total amount appropriated by Congress for all intelligence and 
intelligence-related activities during the current fiscal year 
and the total amount requested in the budget for the next 
fiscal year. The House bill contained no similar provision. The 
Senate agreed to recede to the House.
            Office of Congressional Affairs of the DCI
      Section 714 of the Senate amendment would have 
established an Office of Congressional Affairs of the DCI to 
coordinate the congressional affairs activities of the various 
elements of the Intelligence Community. The House bill 
contained no similar provision. The conferees have decided not 
to require the creation of this office in statute. The 
conferees agree, however, that there is occasionally a need for 
a coordinated Community response to Congressional inquiries and 
recommend that the DCI specifically designate the Director of 
the Office of Congressional Affairs within the CIA as the focal 
point for such inquiries from Congress. The conferees do not 
intend by this recommendation to preclude the individual 
offices of congressional affairs within the elements of the 
Intelligence Community from responding directly to requests 
from the congressional committees.
            National Imagery and Mapping Agency
      Section 801 of the Senate amendment would have added a 
new section to the National Security Act specifying the 
national museum and collection tasking authority for the new 
National Imagery and Mapping Agency. The House bill contained 
no similar provisions.
      The conferees noted that Section 1112 of the National 
Defense Authorization Act for Fiscal Year 1997, which 
establishes and sets forth the missions for NIMA, contains 
similar provisions. These provisions were added to the Senate 
version of the Act by the Senate Intelligence Committee, which 
took the Senate bill on sequential referral from the Senate 
Armed Services Committee in order to examine the provisions 
relating to NIMA. Accordingly, the conferees agreed to exclude 
Section 801 from the conference report.

                From the Permanent Select Committee on 
                Intelligence, for consideration of the House 
                bill and the Senate amendment, and 
                modifications committed to the conference:
                                   Larry Combest,
                                   Robert K. Dornan,
                                   Bill Young,
                                   James V. Hansen,
                                   Jerry Lewis,
                                   Porter J. Goss,
                                   Bud Shuster,
                                   Bill McCollum,
                                   Michael N. Castle,
                                   Norman D. Dicks,
                                   Bill Richardson,
                                   Julian C. Dixon,
                                   Robert Torricelli,
                                   Ronald D. Coleman,
                                   David Skaggs,
                                   Nancy Pelosi,
                From the Committee on National Security, for 
                consideration of defense tactical intelligence 
                and related agencies:
                                   Bob Stump,
                                   Floyd Spence,
                                 Managers on the Part of the House.

                                   Arlen Specter,
                                   Dick Lugar,
                                   Richard Shelby,
                                   Mike DeWine,
                                   Jon Kyl,
                                   J.M. Inhofe,
                                   Kay Bailey Hutchison,
                                   Bill Cohen,
                                   Hank Brown,
                                   Bob Kerrey,
                                   John Glenn,
                                   Richard H. Bryan,
                                   Bob Graham,
                                   John F. Kerry,
                                   Max Baucus,
                                   J. Bennett Johnston,
                                   Charles S. Robb,
                From the Committee on Armed Services:
                                   Strom Thurmond,
                                   Sam Nunn,
                                Managers on the Part of the Senate.