104th CONGRESS 2d Session HOUSE OF REPRESENTATIVES REPR. 104-578 Part 1

INTELLIGENCE AUTHORIZATION ACT
FOR FISCAL YEAR 1997

MAY 15, 1996. REPORT [To accompany H.R. 3259]


COMMITTEE POSITION

On May 7, 1996, the Permanent Select Committee on Intelligence, a quorum being present, approved the bill, as amended by an amendment in the nature of a substitute, and, by a recorded vote of 10 ayes to 0 noes, ordered it favorably reported. On that recorded vote the Members present voted as follows: Mr. Combest (Chairman)-aye; Mr. Dornan-aye; Mr. Young-aye; Mr. Lewis-aye; Mr. Goss-aye; Mr. Castle-aye; Mr. Dicks-aye; Mr. Richardson-aye; Mr. Coleman-aye; Mr. Skaggs-aye. The Committee, by voice vote, also authorized and directed the Chairman, or his designee, to make a motion under Rule XX of the House at the appropriate time to expedite taking the bill to conference with the Senate.

FINDINGS AND RECOMMENDATIONS OF THE COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT

With respect to clause 2(l)(3)(D) of rule XI of the House of Representatives, the Committee has not received a report from the Committee on Government Reform and Oversight pertaining to the subject to this bill.

OVERSIGHT FINDINGS

With respect to clause 2(l)(3)(A) of rule XI of the Rules of the House of Representatives, the Committee held six hearings, as well as a number of briefings, on the classified legislative, personnel, programmatic and budgetary issues raised by H.R. 3259. Testimony was heard from the Director of Central Intelligence, the Director of the National Security Agency, the Director of the Defense Intelligence Agency, numerous program managers and various other knowledgeable witnesses on the activities and plans of the Intelligence Community covered by this intelligence bill. The bill, as reported by the Committee, reflects conclusions reached by the Committee in light of that oversight activity.


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FISCAL YEAR COST PROJECTIONS

The Committee has attempted pursuant to clause 7(a)(1) of rule XIII of the Rules of the House of Representatives to ascertain the outlays that will occur in fiscal year 1997 and the five years following if these amounts are appropriated. These estimates are contained in the classified annex and are in accordance with those of the executive branch.

CONGRESSIONAL BUDGET OFFICE ESTIMATE

In compliance with clause 2(l)(3) (B) and (C) of rule XI of the Rules of the House of Representatives, an estimate prepared by the Congressional Budget Office submitted pursuant to sections 308 and 403 of the Congressional Budget Act of 1974 is as follows:

U.S. CONGRESS,

CONGRESSIONAL BUDGET OFFICE,

Washington, DC, May 14,1996.

Hon. LARRY COMBEST
Chairman, Permanent Select Committee on Intelligence,
House ofRepresentatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3259, the Intelligence Authorization Act for Fiscal Year 1997, as ordered reported by the House Permanent Select Committee on Intelligence on May 7, 1996.

The bill would affect direct spending and thus would be subject to pay-as-you-go procedures under section 252 of the Balanced Budget and Emergency Deficit Control Act.

If you wish further details on this estimate, we will be pleased to provide them.

Sincerely,

PAUL VAN DE WATER

(For June E. O'Neill, Director).

Enclosure.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

1. Bill number: H.R. 3259.

2. Bill title: Intelligence Authorization Act for Fiscal Year 1997.

3. Bill status: As ordered reported by the House Permanent Select Committee

on Intelligence on May 7, 1996.

4. Bill purpose: This bill would authorize appropriations for fiscal year 1997 for intelligence activities of the United States government, the Community Management Staff of the Director of Central Intelligence, and the Central Intelligence Agency Retirement and Disability System (CIARDS).

5. Estimated cost to the Federal Government: Table 1 summarizes the budgetary effects of the bill. It shows the effects of the bill on direct spending and authorizations of appropriations for 1997. CBO was unable to obtain the necessary information to estimate the costs for the entire bill because parts are classified at a level above clearances now held by CBO employees. The estimated costs in Table 1, therefore, reflect only the costs of the unclassified portions of the bill.


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6. Basis of estimate: For purposes of this estimate, CBO assumed that H.R. 3259 will be enacted by October 1, 1996, and that the full amounts authorized will be appropriated for fiscal year 1997. Outlays are estimated according to historical spending patterns for intelligence programs.

Direct spending

Section 402 would repeal the surcharge associated with Central Intelligence Agency (CIA) employees who receive a voluntary separation incentive payment in fiscal years 1998 or 1999. Under current law, the CIA must pay the Civil Service Retirement Trust Fund 15 percent of final salary of all those who take a separation incentive payment in 1998 or 1999. Based on data from the CIA, CBO estimates that about 625 employees will take an incentive payment in those years. The result would be an estimated loss in mandatory offsetting receipts of $3 million in both 1998 and 1999 and a corresponding reduction in discretionary spending.

Section 401 would allow the Director of Central Intelligence to enter into long-term leases without them being subject to appropriations action. Thus, it would create direct spending authority equal to the net present value of the government's obligation over the term of the lease; outlays would equal the actual lease payments. CBO does not have enough information to estimate these costs, but they could amount to millions or tens of millions of dollars a year.

TABLE I.-ESTIMATED COST TO THE FEDERAL GOVERNMENT OF THE UNCLASSIFIED SECTIONS OF

H.R. 3259

[By fiscal years, in millions of dollars]
 
 
				1996	1997	1998	1999	2000	2001	2002 
 
 
DIRECT SPENDING I 
 
Direct spending: 
 
Estimated budget authority	0	0	3	3	0	0	0 
 
Estimated outlays		0	0	3	3	0	0	0 
 
 
SPENDING SUBJECT TO APPROPRIATIONS 
 
 
Spending under current law: 
 
Budget authority 2		305	0	0	0	0	0	0 
 
Estimated outlays		350	39	19	5	0	0	0 
 
Proposed changes: 
 
Estimated authorization level	0	351	0	0	0	0	0 
 
Estimated outlays		0	280	39	24	8	0	0 
 
Spending under the bill: 
 
Estimated authorization level2	305	351	0	0	0	0	0 
 
Estimated outlays		350	319	58	29	8	0	0 
 
 
1 Does not include the cost of long-term leases under section 401. 
 
2 The 1996 figures is the amount appropriated for programs authorized by this bill. 
 
 
Note.-Because parts of this bill are highly classified, CBO is unable to provide a full accounting of the bill's costs over the 1997-2000 period . 
 
 

Authorization of appropriations

Section 104 would authorize appropriations of $93.6 million for 1997 for the Intelligence Community Management Account of the Director of Central Intelligence (DCI). In addition, section 104 would authorize $25 million for the National Foreign Intelligence Program, $32.1 million for the National Drug Intelligence Center, and $6 million for the Environmental Intelligence and Applications


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Program. Similarly, section 201 specifies an authorization of appropriations for a contribution to the Central Intelligence Agency Retirement and Disability fund of $194.4 million.

7. Pay-as-you-go considerations: The Balanced Budget and Emergency Deficit Control Act of 1985 sets up pay-as-you-go procedures for legislation affecting direct spending or receipts through 1998. CBO estimates that H.R. 3259 as ordered reported by the Permanent Select Committee on Intelligence would have the following pay-as-you-go impact:

 
[By fiscal years, in millions of dollars] 
 
 
				1996		1997		1998 
 
 

Changes in outlays 0 0 3

Changes in receipts (2) (2) . (2) 1 The table does not include the cost of long-term leases under section 401. 2 Not applicable.

8. Estimated impact on State, local, and tribal governments: Section 4 of Public Law 104-4 excludes from application of that Act legislative provisions that are necessary for the national security. CBO has determined that all the provisions of H.R. 3259 either fit within this exclusion or do not contain mandates as defined by Public Law 104-4.

9. Estimated impact on the private sector: Section 4 of Public Law 104-4 excludes from application of that Act legislative provisions that are necessary for the national security. CBO has determined that all the provisions of H.R. 3259 either fit within this exclusion or do not contain mandates as defined by Public Law 104-4..

10. Previous CBO estimate: None.

11. Estimate prepared by: Wayne Boyington and Jeannette Van Winkle.

12. Estimate approved by: Michael A. Miller for Paul N. Van de Water Assistant Director for Budget Analysis.

COMMITTEE COST ESTIMATES

The Committee agrees with the estimate of the Congressional Budget Office.

INFLATIONARY IMPACT STATEMENT

Pursuant to clause 2(l)(4) of rule XI of the Rules of the House of Representatives, the Committee has attempted to estimate the inflationary impact of enactment of the bill.

The Committee finds no adequate method to identify the inflationary impact of this legislation. The bill does not provide specific budget authority but rather authorizations for appropriations. Thus, any inflationary impact would depend on the amounts actually appropriated and the effects that supplies of materials, production capacity or other economic resources would have on prices and costs in the operation of the national economy.

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported,


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are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman):

SECTION 307 OF THE INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1996

SEC. 307. LIMITATION ON AVAILIBILTY OF FUNDS FOR AUTOMATIC

DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.

(a) IN GENERAL.-The Director of Central Intelligence shall use no more than $25,000,000 of the amounts authorized to be appropriated for [fiscal year 1996 by this Act] any of the fiscal years 1996 through 2000 for the National Foreign Intelligence Program to carry out the provisions of section 3.4 of Executive Order 12958. The Director may, in the Director's discretion, draw on this amount for allocation to the agencies within the National Foreign Intelligence Program for the purpose of automatic declassification of records over 25 years old.

NATIONAL SECURITY ACT OF 1947

TITLE IX-APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES

LAWS SUBJECT TO STAY

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

(1) The Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (title III of Public Law 102-182).

(2) The Nuclear Proliferation Prevention Act of 1994 (title VIII of Public Law 103-236).

(3) Section 11B of the Export Administration Act of 1979 (50 U.S.C. App. 2410b).


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(4) Chapter 7 of the Arms Export Control Act (22 U.S.C. 2797 et seq.).

(5) The Iran-Iraq Arms Non-Proliferation Act of 1992 (title XVI of Public Law 102-484).

(6) The following provisions of annual appropriations Acts:

(A) Section 573 of the Foreign Operations, Export Financing and Related Programs Appropriations Act, 1994 (Public Law 103-87; 107 Stat. 972).

(B) Section 563 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995 (Public Law 103-306; 108 Stat. 1649).

(C) Section 552 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996 (Public Law 104-107; 110 Stat. 741).

(7) Comparable provisions.

APPLICATION

SEC. 905. This title shall cease to be effective [on the date which is one year after the date of the enactment of this title] on January 6, 1998.

SECTION 5 OF THE CENTRAL INTELLIGENCE AGENCY

ACT OF 1949

GENERAL AUTHORITIES

SEC. 5. In the performance of its functions, the Central Intelligence Agency is authorized to-

(a) * * *

[(e) Make alterations, improvements, and repairs on premises rented by the Agency, and pay rent therefor without regard to limitations on expenditures contained in the Act of June 30, 1932, as amended: Provided, That in each case the Director shall certify that exception from such limitations is necessary to the successful performance of the Agency's functions or to the security of its activities; and]

(e) Make alterations, improvements, and repairs on premises rented by the Agency and, for the purpose of furthering the cost-efficient acquisition of Agency facilities, enter into multiyear leases for up to 15 years that are not otherwise authorized pursuant to section 8 of this Act; and

SECTION 2 OF THE CENTRAL INTELLIGENCE AGENCY

VOLUNTARY SEPARATION PAY ACT

SEC. 2. SEPARATION PAY.

(a) * * *

[(i) REMITTANCE OF FUNDS.-The Director shall remit to the Of-

fice of Personnel Management for deposit in the Treasury of the


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United States to the credit of the Civil Service Retirement and Disability Fund (in addition to any other payments which the Director is required to make under subchapter III of chapter 83 and subchapter II of chapter 84 of title 5, United States Code), an amount equal to 15 percent of the final basic pay of each employee who, in fiscal year 1998 or fiscal year 1999, retires voluntarily under section 8336, 8412, or 8414 of such title or resigns and to whom a voluntary separation incentive payment has been or is to be paid under this section.]

TITLE 10, UNITED STATES CODE

Subtitle A-General Military Law

PART I-ORGANIZATION AND GENERAL

MILITARY POWERS

CHAPTER 21-DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

SUBCHAPTER I-GENERAL MATTERS

Sec. 421. Funds for foreign cryptologic support.

[424. Disclosure of organizational and personnel information: exemption for De-

fense Intelligence Agency.

[425. Disclosure of personnel information: exemption for National Reconnaissance Office.]

424. Disclosure of organizational and personnel information: exemption for the Defense Intelligence Agency and National Reconnaissance Office.

[ 424. Disclosure of organizational and personnel information: exemption for Defense Intelligence Agency

[(a) Except as required by the President or as provided in subsection (b), the Secretary of Defense may not be required to disclose information with respect to-

[(l) the organization or any function of the Defense Intelligence Agency; or

[(2) the number of persons employed by or assigned or detailed to such Agency or the name, official title, occupational series, grade, or salary of any such person.

[(b) This section does not apply-


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[(l) with respect to the provision of information to Congress;

or

[(2) with respect to information required to be disclosed by

section 552 or 552a of title 5.

[ 425. Disclosure of personnel information: exemption for

National Reconnaissance Office

[(a) EXEMPTION FROM DISCLOSURE.-Except as required by the President or as provided in subsection (b), no provision of law shall be construed to require the disclosure of the name, title, or salary of any person employed by, or assigned or detailed to, the National Reconnaissance Office or the disclosure of the number of such persons.

[(b) PROVISION OF INFORMATION TO CONGRESS.-Subsection (a) does not apply with respect to the provision of information to Congress.]

424. Disclosure of organizational and personnel information: exemption for the Defense Intelligence Agency and National Reconnaissance Offtce

(a) EXEMPTION FROM DISCLOSURE.-Except as required by the

President or as provided in subsection (b), no provision of law shall be construed to require the disclosure of-

(1) the organization or any function of the Defense Intelligence Agency or the National Reconnaissance Office; or

(2) the number of persons employed by or assigned or detailed to that Agency or Office or the name, official title, occupational series, grade, or salary of any such person.

(b) PROVISION OF INFORMATION TO CONGRESS.-Subsection (a) does not apply with respect to the provision of information to Congress.