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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3259 Enrolled Bill (ENR)]

        H.R.3259

                       One Hundred Fourth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six

                                 An Act

 
 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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 the 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 sub- paragraph 
        (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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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