```

[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2056 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2056

       To amend the National Security Act of 1947 to improve the 
counterintelligence and security posture of the United States, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 2, 1994

Mr. DeConcini (for himself and Mr. Warner) (by request) introduced the 
    following bill; which was read twice and referred to the Select 
                       Committee on Intelligence

_______________________________________________________________________

                                 A BILL

 
       To amend the National Security Act of 1947 to improve the 
counterintelligence and security posture of the United States, 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.

    This Act may be cited as the ``Counterintelligence and Security 
Enhancements Act of 1994''.

SEC. 2. AMENDMENT TO THE NATIONAL SECURITY ACT OF 1947.

    The National Security Act of 1947 (50 U.S.C. 401 et seq.) is 
amended by inserting at the end thereof the following new title:

             ``TITLE VIII--ACCESS TO CLASSIFIED INFORMATION

    ``Sec. 801. The provisions of this title shall not apply to the 
President and Vice President, Members of the Congress, Justices of the 
Supreme Court, and Federal judges appointed by the President.
    ``Sec. 802. The President shall, within one hundred and eighty days 
of enactment of this title, direct the issuance of a regulation to 
govern access to classified information which shall be binding upon all 
departments, agencies, and offices of the executive branch.
    ``Sec. 803. Except as may be provided for in the regulation issued 
under section 802 of this title, no person shall be given access to 
classified information, after the effective date of this title, by any 
department, agency, or office of the executive branch unless, based 
upon an appropriate background investigation, such access is determined 
to be clearly consistent with the interests of national security.

            ``requests by authorized investigative agencies

    ``Sec. 804. (a)(1) Any authorized investigative agency may request 
from any financial agency, financial institution, or holding company, 
as defined in section 5312 of the Currency and Foreign Transactions 
Reporting Act (31 U.S.C. 5312, as amended) or section 1101 of the Right 
to Financial Privacy Act of 1978 (12 U.S.C. 3401), or from any consumer 
credit reporting agency, as defined in section 603 of the Consumer 
Credit Protection Act (15 U.S.C. 1681a), such financial records, other 
financial information, and consumer reports as are necessary in order 
to conduct any authorized law enforcement investigation, 
counterintelligence inquiry, or security determination. Any authorized 
investigative agency may also request records maintained by any 
commercial entity within the United States pertaining to travel by a 
person outside the United States.
    ``(2) Requests may be made under this section where--
            ``(A) the records sought pertain to a person who is or was 
        an employee required by the President in an Executive order, as 
        a condition of access to classified information, to provide 
        consent, during a background investigation and for such time as 
        access to the information is maintained, and for not more than 
        5 years thereafter, permitting access to financial records, 
        other financial information, consumer reports, and travel 
        records; and
            ``(B) there is information or allegations indicating that 
        the person is, or may be, disclosing classified information in 
        an unauthorized manner to a foreign power or agent of a foreign 
        power, or an issue of otherwise unexplained affluence or 
        excessive indebtedness arises in the course of any background 
        investigation or reinvestigation.
    ``(3) Each such request--
            ``(A) shall be accompanied by a written certification 
        signed by the department or agency head or deputy department or 
        agency head concerned and shall certify that--
                    ``(i) the person concerned is or was an employee 
                within the meaning of subparagraph (2)(A) above;
                    ``(ii) the request is being made pursuant to an 
                authorized inquiry or investigation and is authorized 
                under this section; and
                    ``(iii) the records or information to be reviewed 
                are records or information which the employee has 
                previously agreed to make available to the authorized 
                investigative agency for review;
            ``(B) shall contain a copy of the agreement referred to in 
        subparagraph (A)(iii);
            ``(C) shall identify specifically or by category the 
        records or information to be reviewed; and
            ``(D) shall inform the recipient of the request of the 
        prohibition described in subsection (b).
    ``(b) Notwithstanding any other provision of law, no governmental 
or private entity, or officer, employee, or agent of such entity, may 
disclose to any person, other than those officers, employees, or agents 
of such entity necessary to satisfy a request made under this section, 
that such entity has received or satisfied a request made by an 
authorized investigative agency under this section.
    ``(c)(1) Notwithstanding any other provision of law except section 
6103 of title 26, United States Code, an entity receiving a request for 
records or information under subsection (a) shall, if the request 
satisfies the requirements of this section, make available such records 
or information within thirty days for inspection or copying, as may be 
appropriate, by the agency requesting such records or information.
    ``(2) Any entity (including any officer, employee, or agent 
thereof) that discloses records or information for inspection or 
copying pursuant to this section in good faith reliance upon the 
certifications made by an agency pursuant to this section shall not be 
liable for any such disclosure to any person under this title, the 
constitution of any State, or any law or regulation of any State or any 
political subdivision of any State.
    ``(d) Subject to the availability of appropriations therefor, any 
agency requesting records or information under this section may 
reimburse a private entity for any cost reasonably incurred by such 
entity in responding to such request, including the cost of 
identifying, reproducing, or transporting records or other data.
    ``(e) An agency receiving records or information pursuant to a 
request under this section may disseminate the records or information 
obtained pursuant to such request outside the agency only to the agency 
employing the employee who is the subject of the records or 
information, to the Department of Justice for law enforcement or 
counterintelligence purposes, or, with respect to dissemination to an 
agency of the United States, only if such information is clearly 
relevant to the authorized responsibilities of such agency.
    ``(f) Nothing in this section shall affect the authority of an 
investigative agency to obtain information pursuant to the Right to 
Financial Privacy Act (12 U.S.C. 3401 et seq.) or the Fair Credit 
Reporting Act (15 U.S.C. 1681 et seq.).

                             ``definitions

    ``Sec. 805. For purposes of this title--
            ``(a) the phrase `classified information' means any 
        information that has been determined pursuant to Executive 
        Order No. 12356 of April 2, 1982, or successor orders, or the 
        Atomic Energy Act of 1954, to require protection against 
        unauthorized disclosure and that is so designated;
            ``(b) the term `employee' includes any person who receives 
        a salary or compensation of any kind from the United States 
        Government, is a contractor of the United States Government or 
        an employee thereof, is an unpaid consultant of the United 
        States Government, or otherwise acts for or on behalf of the 
        United States Government;
            ``(c) the term `authorized investigative agency' means an 
        agency authorized by law or regulation to conduct a 
        counterintelligence investigation or investigations of persons 
        who are proposed for access to classified information to 
        ascertain whether such persons satisfy the criteria for 
        obtaining and retaining access to such information; and
            ``(d) the term `State' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Trust Territory of the Pacific Islands, and any 
        territory or possession of the United States.

                            ``effective date

    ``Sec. 806. This title shall take effect one hundred eighty days 
after the date of its enactment.''.

SEC. 3. DISCLOSURE OF CONSUMER CREDIT REPORTS FOR COUNTERINTELLIGENCE 
              PURPOSES.

    Section 608 of the Fair Credit Reporting Act (15 U.S.C. 1681f) is 
amended--
            (1) by striking ``Notwithstanding'' and inserting ``(a) 
        Disclosure of Certain Identifying Information.--
        Notwithstanding''; and
            (2) by adding at the end the following new subsection:
    ``(b) Disclosures to the FBI for Counterintelligence Purposes.--
            ``(1) Consumer reports.--Notwithstanding the provisions of 
        section 604, a consumer reporting agency shall furnish a 
        consumer report to the Federal Bureau of Investigation when 
        presented with a written request for a consumer report, signed 
        by the Director or Deputy Director of the Federal Bureau of 
        Investigation who certifies compliance with this subsection. 
        The Director or Deputy Director may make such a certification 
        only if he has determined in writing that--
                    ``(A) such records are necessary for the conduct of 
                an authorized foreign counterintelligence 
                investigation; and
                    ``(B) there are specific and articulable facts 
                giving reason to believe that the consumer whose 
                consumer report is sought is a foreign power or an 
                agent of a foreign power, as defined in section 101 of 
                the Foreign Intelligence Surveillance Act of 1978 (50 
                U.S.C. 1801).
            ``(2) Identifying information.--Notwithstanding the 
        provisions of section 604, a consumer reporting agency shall 
        furnish identifying information respecting a consumer, limited 
        to name, address, former addresses, places of employment, or 
        former places of employment, to the Federal Bureau of 
        Investigation when presented with a written request, signed by 
        the Director or Deputy Director, which certifies compliance 
        with this subsection. The Director or Deputy Director may make 
        such certification only if the Director or Deputy Director has 
        determined in writing that--
                    ``(A) such information is necessary to the conduct 
                of an authorized foreign counterintelligence 
                investigation; and
                    ``(B) there is information giving reason to believe 
                that the consumer has been, or is about to be, in 
                contact with a foreign power or an agent of a foreign 
                power, as so defined.
            ``(3) Confidentiality.--No consumer reporting agency or 
        officer, employee, or agent of such consumer reporting agency 
        may disclose to any person, other than those officers, 
        employees, or agents of such agency necessary to fulfill the 
        requirement to disclose information to the Federal Bureau of 
        Investigation under this subsection, that the Federal Bureau of 
        Investigation has sought or obtained a consumer report or 
        identifying information respecting any consumer under paragraph 
        (1) or (2), nor shall such agency, officer, employee, or agent 
        include in any consumer report any information that would 
        indicate that the Federal Bureau of Investigation has sought or 
        obtained such a consumer report or identifying information.
            ``(4) Payment of fees.--The Federal Bureau of Investigation 
        may, subject to the availability of appropriations, pay to the 
        consumer reporting agency assembling or providing credit 
        reports or identifying information in accordance with this 
        title, a fee for reimbursement for such costs as are reasonably 
        necessary and which have been directly incurred in searching, 
        reproducing, or transporting books, papers, records, or other 
        data required or requested to be produced under this 
        subsection.
            ``(5) Limit on dissemination.--The Federal Bureau of 
        Investigation may not disseminate information obtained pursuant 
        to this subsection outside of the Federal Bureau of 
        Investigation, except to the Department of Justice or as may be 
        necessary for the conduct of a foreign counterintelligence 
        investigation.
            ``(6) Rules of construction.--Nothing in this subsection 
        shall be construed to prohibit information from being furnished 
        by the Federal Bureau of Investigation pursuant to a subpoena 
        or court order, or in connection with a judicial or 
        administrative proceeding to enforce the provisions of this 
        Act. Nothing in this subsection shall be construed to authorize 
        or permit the withholding of information from Congress.
            ``(7) Reports to congress.--On an annual basis, the 
        Attorney General of the United States shall fully inform the 
        Permanent Select Committee on Intelligence of the House of 
        Representatives and the Select Committee on Intelligence of the 
        Senate concerning all requests made pursuant to paragraphs (1) 
        and (2).
            ``(8) Damages.--Any agency or department of the United 
        States obtaining or disclosing credit reports, records, or 
        information contained therein in violation of this subsection 
        is liable to the consumer to whom such records relate in an 
        amount equal to the sum of--
                    ``(A) $100, without regard to the volume of records 
                involved;
                    ``(B) any actual damages sustained by the consumer 
                as a result of the disclosure;
                    ``(C) if the violation is found to have been 
                willful or intentional, such punitive damages as a 
                court may allow; and
                    ``(D) in the case of any successful action to 
                enforce liability under this subsection, the costs of 
                the action, together with reasonable attorney's fees, 
                as determined by the court.
            ``(9) Good faith exception.--Any credit reporting agency or 
        agent or employee thereof making disclosure of credit reports 
        or identifying information pursuant to this subsection in good 
        faith reliance upon a certificate of the Federal Bureau of 
        Investigation pursuant to this subsection shall not be liable 
        to any person for such disclosure under this title, the 
        constitution of any State, or any law or regulation of any 
        State or any political subdivision of any State. As used in 
        this subsection, the term `State' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Trust Territory of the Pacific Islands, and any 
        territory or possession of the United States.
            ``(10) Limitation of remedies.--The remedies set forth in 
        this subsection shall be the only judicial remedies for 
        violation of this subsection.
            ``(11) Injunctive relief.--In addition to any other remedy 
        contained in this subsection, injunctive relief shall be 
        available to require compliance with the procedures of this 
        subsection. In the event of any successful action under this 
        subsection, costs of the action, together with reasonable 
        attorney's fees, as determined by the court, may be 
        recovered.''.

SEC. 4. REWARDS FOR INFORMATION CONCERNING ESPIONAGE.

    (a) Rewards.--Section 3071 of title 18, United States Code, is 
amended--
            (1) by inserting ``(a)'' before ``With respect to''; and
            (2) by adding at the end the following new subsection:
    ``(b) With respect to acts of espionage involving or directed at 
the United States, the Attorney General may reward any individual who 
furnishes information--
            ``(1) leading to the arrest or conviction, in any country, 
        of any individual or individuals for commission of an act of 
        espionage against the United States;
            ``(2) leading to the arrest or conviction, in any country, 
        of any individual or individuals for conspiring or attempting 
        to commit an act of espionage against the United States; or
            ``(3) leading to the prevention or frustration of an act of 
        espionage against the United States.''.
    (b) Definitions.--Section 3077 of such title is amended by 
inserting at the end thereof the following new paragraph:
            ``(8) `act of espionage' means an activity that is a 
        violation of--
                    ``(A) section 793, 794, or 798 of title 18, United 
                States Code;
                    ``(B) section 783(b) of title 50, United States 
                Code; or
                    ``(C) section 4 of the Subversive Activities 
                Control Act of 1950 (50 U.S.C. 783).''.
    (c) Clerical Amendments.--The items relating to chapter 24 in the 
table of chapters at the beginning of such title, and in the table of 
chapters at the beginning of part II of such title, are each amended by 
adding at the end the following: ``and espionage.''.

SEC. 5. ESPIONAGE NOT COMMITTED IN ANY DISTRICT.

  (a) In General.--Chapter 211 of title 18, United States Code, is 
amended by inserting after section 3238 the following new section:
    ``Sec. 3239. Espionage and related offenses not committed in any 
district.
    ``The trial for any offense involving a violation of--
            ``(1) section 793, 794, 798, 952, or 1030(a)(1) of this 
        title;
            ``(2) section 601 of the National Security Act of 1947 (50 
        U.S.C. 421); or
            ``(3) subsection (b) or (c) of section 4 of the Subversive 
        Activities Control Act of 1950 (50 U.S.C. 783 (b) or (c)), 
        begun or committed upon the high seas or elsewhere out of the 
        jurisdiction of any particular State or district, may be in the 
        District of Columbia or in any other district authorized by 
        law.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 211 of such title is amended by inserting after the item 
relating to section 3238 the following: ``3239. Jurisdiction of 
espionage outside the United States and related offenses.''.

SEC. 6. CRIMINAL FORFEITURE FOR VIOLATION OF CERTAIN ESPIONAGE LAWS.

    (a) Section 798 of title 18, United States Code, is amended by 
adding at the end the following new subsections:
    ``(d)(1) Any person convicted of a violation of this section shall 
forfeit to the United States irrespective of any provision of State 
law--
            ``(A) any property constituting, or derived from, any 
        proceeds the person obtained, directly or indirectly, as the 
        result of such violation; and
            ``(B) any of the person's property used, or intended to be 
        used, in any manner or part, to commit, or to facilitate the 
        commission of, such violation.
    ``(2) The court, in imposing sentence on a defendant for a 
conviction of a violation of this section, shall order that the 
defendant forfeit to the United States all property described in 
paragraph (1).
    ``(3) Except as provided in paragraph (4), the provisions of 
subsections (b), (c), and (e) through (p) of section 413 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
853 (b), (c), and (e)-(p)) shall apply to--
            ``(A) property subject to forfeiture under this subsection;
            ``(B) any seizure or disposition of such property; and
            ``(C) any administrative or judicial proceeding in relation 
        to such property, if not inconsistent with this subsection.
    ``(4) Notwithstanding section 524(c) of title 28, there shall be 
deposited in the Crime Victims Fund established under section 1402 of 
the Victims of Crime Act of 1984 (42 U.S.C. 10601) all amounts from the 
forfeiture of property under this subsection remaining after the 
payment of expenses for forfeiture and sale authorized by law.
    ``(e) As used in subsection (d) of this section, the term `State' 
means any State of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Trust Territory of the Pacific 
Islands, and any territory or possession of the United States.''.
    (b) Amendments for Consistency in Application of Forfeiture Under 
Title 18.--(1) Section 793(h)(3) of such title is amended in the matter 
above subparagraph (A) by striking out ``(o)'' each place it appears 
and inserting in lieu thereof ``(p)''.
    (2) Section 794(d)(3) of such title is amended in the matter above 
subparagraph (A) by striking out ``(o)'' each place it appears and 
inserting in lieu thereof ``(p)''.
    (c) Subversive Activities Control Act.--Section 4 of the Subversive 
Activities Control Act of 1950 (50 U.S.C. 783) is amended by adding at 
the end the following new subsection:
    ``(g)(1) Any person convicted of a violation of this section shall 
forfeit to the United States irrespective of any provision of State 
law--
            ``(A) any property constituting, or derived from, any 
        proceeds the person obtained, directly or indirectly, as the 
        result of such violation; and
            ``(B) any of the person's property used, or intended to be 
        used, in any manner or part, to commit, or to facilitate the 
        commission of, such violation.
    ``(2) The court, in imposing sentence on a defendant for a 
conviction of a violation of this section, shall order that the 
defendant forfeit to the United States all property described in 
paragraph (1).
    ``(3) Except as provided in paragraph (4), the provisions of 
subsections (b), (c), and (e) through (p) of section 413 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
853(b), (c), and (e)-(p)) shall apply to--
            ``(A) property subject to forfeiture under this subsection;
            ``(B) any seizure or disposition of such property; and
            ``(C) any administrative or judicial proceeding in relation 
        to such property, if not inconsistent with this subsection.
    ``(4) Notwithstanding section 524(c) of title 28, there shall be 
deposited in the Crime Victims Fund established under section 1402 of 
the Victims of Crime Act of 1984 (42 U.S.C. 10601) all amounts from the 
forfeiture of property under this subsection remaining after the 
payment of expenses for forfeiture and sale authorized by law.''.

SEC. 7. DENIAL OF ANNUITIES OR RETIRED PAY TO PERSONS CONVICTED OF 
              ESPIONAGE IN FOREIGN COURTS INVOLVING UNITED STATES 
              INFORMATION.

    Section 8312 of title 5, United States Code, is amended by adding 
at the end thereof the following new section--
    ``(d) For purposes of subsections (b)(1) and (c)(1), an offense 
within the meaning of such subsections is established if the Attorney 
General certifies to the agency administering the annuity or retired 
pay concerned--
            ``(1) that an individual subject to this chapter has been 
        convicted by an impartial court of appropriate jurisdiction 
        within a foreign country in circumstances in which the conduct 
        violates the provisions of law enumerated in subsections (b)(1) 
        and (c)(1), or would violate such provisions had such conduct 
        taken place with the United States, and that such conviction is 
        not being appealed or that final action has been taken on such 
        appeal;
            ``(2) that such conviction was obtained in accordance with 
        procedures that provided the defendant due process rights 
        comparable to such rights provided by the United States 
        Constitution, and such conviction was based upon evidence which 
        would have been admissible in the courts of the United States; 
        and
            ``(3) that such conviction occurred after the date of 
        enactment of this subsection.''.

                                 <all>

S 2056 IS----2
```