1995 Congressional Documents
Intelligence and Security


          Union Calendar No. 99
          104th CONGRESS
          1st Session
                                         A BILL
          To authorize appropriations for fiscal year 1996 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.
                                      June 14, 1995
          Reported with an amendment and referred to the Committee on 
          National Security for a period ending not later than June 23, 1995,
          for consideration of such provisions of the bill and amendment as
          fall within the jurisdiction of that committee pursuant to clause
          1(k), rule X
                                      June 23, 1995
          Referral to the Committee on National Security extended for a 
          period ending not later than July 19, 1995
          Referred to the Committee on Government Reform and Oversight for a
          period ending not later than July 19, 1995, for consideration of
          such provisions of the bill and amendment as fall within the
          jurisdiction of that committee pursuant to clause 1(g), rule X
                                      July 19, 1995
          Reported from the Committee on Government Reform and Oversight with
          an amendment
                                      July 19, 1995
          The Committee on National Security discharged; referred to the
          Committee of the Whole House on the State of the Union
          HR 1655 RH
          104th CONGRESS
          1st Session
          [Report No. 104-138, Parts I and II]
          To authorize appropriations for fiscal year 1996 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.
                             IN THE HOUSE OF REPRESENTATIVES
                                      May 17, 1995
          Mr. COMBEST introduced the following bill; which was referred to 
              the Permanent Select Committee on Intelligence
                                      June 14, 1995
          Reported with an amendment and referred to the Committee on 
              National Security for a period ending not later than June 23,
              1995, for consideration of such provisions of the bill and
              amendment as fall within the jurisdiction of that committee
              pursuant to clause 1(k), rule X
              [STRIKE OUT ALL AFTER THE ENACTING CLAUSE AND INSERT THE PART
                                   PRINTED IN ITALIC]
                                      June 23, 1995
          Referral to the Committee on National Security extended for a 
              period ending not later than July 19, 1995
          Referred to the Committee on Government Reform and Oversight for a
              period ending not later than July 19, 1995, for consideration 
              of such provisions of the bill and amendment as fall within the
              jurisdiction of that committee pursuant to clause 1(g), rule X
                                      July 19, 1995
          Reported from the Committee on Government Reform and Oversight with
              an amendment
                        [OMIT THE PART STRUCK THROUGH IN ITALIC]
          The Committee on National Security discharged; referred to the
              Committee of the Whole House on the State of the Union
           [FOR TEXT OF INTRODUCED BILL, SEE COPY OF BILL AS INTRODUCED ON MAY
                                        17, 1995]
                                         A BILL
          To authorize appropriations for fiscal year 1996 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.
           [Italic->]   Be it enacted by the Senate and House of
          Representatives of the United States of America in Congress
          assembled, [<-Italic]
          SECTION 1. SHORT TITLE.
            This Act may be cited as the `Intelligence Authorization Act for
          Fiscal Year 1996'.
                            TITLE I--INTELLIGENCE ACTIVITIES
          SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
            Funds are hereby authorized to be appropriated for fiscal year
          1996 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 Central Imagery Office.
          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, 1996, 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 bill H.R. 1655
          of the 104th 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 1996 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) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
          appropriated for the Community Management Account of the Director 
          of Central Intelligence for fiscal year 1996 the sum of 
          $80,713,000. Within such amounts authorized, funds identified in 
          the classified Schedule of Authorizations referred to in section
          102(a) for the Advanced Research and Development Committee and the
          Environmental Task Force shall remain available until September 30,
          1997.
            (b) AUTHORIZED PERSONNEL LEVELS- The Community Management Staff 
          of the Director of Central Intelligence is authorized 247 full-time
          personnel as of September 30, 1996. 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 1996, any officer or
          employee of the United States or a member of the Armed Forces who 
          is detailed to the Community Management Staff from another element
          of the United States Government shall be detailed on a reimbursable
          basis, except that any such officer, employee or member may be
          detailed on a nonreimbursable basis for a period of less than one
          year for the performance of temporary functions as required by the
          Director of Central Intelligence.
             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
          1996 the sum of $213,900,000.
                              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. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.
            (a) GENERAL PROVISIONS- The National Security Act of 1947 (50
          U.S.C. 401 et seq.), is amended by adding at the end thereof the
          following new title:
           `TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES
                                   `STAY OF SANCTIONS
            `SEC. 901. Notwithstanding any other provision of law, the
          President may stay the imposition of an economic, cultural,
          diplomatic, or other sanction or related action by the United 
          States Government concerning a foreign country, organization, or
          person when the President determines that to proceed without delay
          would seriously risk the compromise of an ongoing criminal
          investigation or an intelligence source or method. The President
          shall lift any such stay when the President determines that such
          stay is no longer necessary to that purpose.
                                        `REPORTS
            `SEC. 902. Whenever any stay is imposed pursuant to section 901,
          and whenever the duration of any such stay exceeds 120 days, the
          President shall promptly report to the Select Committee on
          Intelligence of the Senate and the Permanent Select Committee on
          Intelligence of the House of Representatives the rationale and
          circumstances that led the President to exercise the stay authority
          with respect to an intelligence source or method, and to the 
          Judiciary Committees of the Senate and the House of Representatives
          the rationale and circumstances that led the President to exercise
          the stay authority with respect to an ongoing criminal
          investigation.'.
            (b) CLERICAL AMENDMENT- The table of contents in the first 
          section of such Act is amended by adding at the end thereof the
          following:
           `TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES
          `Sec. 901. Stay of Sanctions.
          `Sec. 902. Reports.'.
          SEC. 304. THRIFT SAVINGS PLAN FORFEITURE.
            Section 8432(g) of title 5, United States Code, is amended by
          adding at the end the following new paragraphs:
            `(5)(A) Notwithstanding any other provision of law, contributions
          made by the Government for the benefit of an employee or Member
          under subsection (c), and all earnings attributable to such
          contributions, shall be forfeited if the annuity of the employee or
          Member, or that of a survivor or beneficiary, is forfeited under
          subchapter II of chapter 83.
            `(B) Forfeitures under this paragraph shall occur only if the
          offenses upon which the requisite annuity forfeitures are based
          happened subsequent to the enactment of this paragraph.'.
          SEC. 305. AUTHORITY TO RESTORE SPOUSAL PENSION BENEFITS TO SPOUSES
                            WHO COOPERATE IN CRIMINAL INVESTIGATIONS AND
                            PROSECUTIONS FOR NATIONAL SECURITY OFFENSES.
            Section 8318 of title 5, United States Code, is amended by adding
          at the end the following:
            `(e) The spouse of an individual whose annuity or retired pay is
          forfeited under section 8312 or 8313 after the date of enactment of
          this subsection shall be eligible for spousal pension benefits if
          the Attorney General of the United States determines that the 
          spouse fully cooperated with Federal authorities in the conduct of 
          a criminal investigation and subsequent prosecution of the
          individual which resulted in such forfeiture.'.
          SEC. 306. SECRECY AGREEMENTS USED IN INTELLIGENCE ACTIVITIES.
            Notwithstanding any other provision of law not specifically
          referencing this section, a nondisclosure policy form or agreement
          that is to be executed by a person connected with the conduct of an
          intelligence or intelligence-related activity, other than an
          employee or officer of the United States Government, may contain
          provisions appropriate to the particular activity for which such
          document is to be used. Such form or agreement shall, at a minimum,
          require that the person will not disclose any classified 
          information received in the course of such activity unless
          specifically authorized to do so by the United States Government.
          SEC. 307. LIMITATION ON AVAILABILITY OF FUNDS FOR AUTOMATIC
                            DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.
            (a) IN GENERAL- Each agency of the National Foreign Intelligence
          Program shall use no more than $2,500,000 of the amounts authorized
          to be appropriated
          by this Act to carry out the provisions of section 3.4 of Executive
          Order 12958.
            (b) REQUIRED BUDGET SUBMISSION- The President shall submit for
          fiscal year 1997 and each of the following five years a budget
          request which specifically sets forth the funds requested for
          implementation of section 3.4 of Executive Order 12958.
                          TITLE IV--CENTRAL INTELLIGENCE AGENCY
          SEC. 401. EXTENSION OF THE CIA VOLUNTARY SEPARATION PAY ACT.
            Section 2(f) of the Central Intelligence Agency Voluntary
          Separation Pay Act (50 U.S.C. 403-4(f)), is amended by striking out
          `September 30, 1997' and inserting in lieu thereof `September 30,
          1999'.
          SEC. 402. VOLUNTEER SERVICE PROGRAM.
            (a) GENERAL AUTHORITY- The Director of Central Intelligence is
          authorized to establish and maintain a program from fiscal years
          1996 through 2001 to utilize the services contributed by not more
          than 50 annuitants who serve without compensation as volunteers in
          aid of systematic or mandatory review for declassification or
          downgrading of classified information of the Central Intelligence
          Agency under applicable Executive orders governing the
          classification and declassification of national security 
          information and Public Law 102-526.
            (b) COSTS INCIDENTAL TO SERVICES- The Director is authorized to
          use sums made available to the Central Intelligence Agency by
          appropriations or otherwise for paying the costs incidental to the
          utilization of services contributed by individuals under subsection
          (a). Such costs may include (but need not be limited to) training,
          transportation, lodging, subsistence, equipment, and supplies. The
          Director may authorize either direct procurement of equipment,
          supplies, and services, or reimbursement for expenses, incidental 
          to the effective use of volunteers. Such expenses or services shall
          be in accordance with volunteer agreements made with such
          individuals. Sums made available for such costs may not exceed
          $100,000.
            (c) APPLICATION OF CERTAIN PROVISIONS OF LAW- A volunteer under
          this section shall be considered to be a Federal employee for the
          purposes of subchapter I of title 81 (relating to compensation of
          Federal employees for work injuries) and section 1346(b) and 
          chapter 171 of title 28 (relating to tort claims). A volunteer 
          under this section shall be covered by and subject to the 
          provisions of chapter 11 of title 18 of the United States Code as 
          if they were employees or special Government employees depending
          upon the days of expected service at the time they begin
          volunteering.
                 TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES
          SEC. 501. DEFENSE INTELLIGENCE SENIOR LEVEL POSITIONS.
            Section 1604 of title 10, United States Code, is amended to read
          as follows:
          `Sec. 1604. Civilian personnel management
            `(a) GENERAL PERSONNEL AUTHORITY- The Secretary of Defense may,
          without regard to the provisions of any other law relating to the
          number, classification, or compensation of Federal employees--
                `(1) establish such positions for employees in the Defense
              Intelligence Agency and the Central Imagery Office as the
              Secretary considers necessary to carry out the functions of 
              that Agency and Office, including positions designated under
              subsection (f) as Defense Intelligence Senior Level positions;
                `(2) appoint individuals to those positions; and
                `(3) fix the compensation for service in those positions.
            `(b) AUTHORITY TO FIX RATES OF BASIC PAY; OTHER ALLOWANCES AND
          BENEFITS- (1) The Secretary of Defense shall, subject to subsection
          (c), fix the rates of basic pay for positions established under
          subsection (a) in relation to the rates of basic pay provided in
          subpart D of part III of title 5 for positions subject to that 
          title which have corresponding levels of duties and
          responsibilities. Except as otherwise provided by law, an employee
          of the Defense Intelligence Agency or the Central Imagery Office 
          may not be paid basic pay at a rate in excess of the maximum rate
          payable under section 5376 of title 5.
            `(2) The Secretary of Defense may provide employees of the 
          Defense Intelligence Agency and the Central Imagery Office
          compensation (in addition to basic pay under paragraph (1)) and
          benefits, incentives, and allowances consistent with, and not in
          excess of the levels authorized for, comparable positions 
          authorized by title 5.
            `(c) PREVAILING RATES SYSTEMS- The Secretary of Defense may,
          consistent with section 5341 of title 5, adopt such provisions of
          that title as provide for prevailing rate systems of basic pay and
          may apply those provisions to positions in or under which the
          Defense Intelligence Agency or the Central Imagery Office may 
          employ individuals described by section 5342(a)(2)(A) of such title.
            `(d) ALLOWANCES BASED ON LIVING COSTS AND ENVIRONMENT FOR
          EMPLOYEES STATIONED OUTSIDE CONTINENTAL UNITED STATES OR IN ALASKA-
          (1) In addition to the basic compensation payable under subsection
          (b), employees of the Defense Intelligence Agency and the Central
          Imagery Office described in paragraph (3) may be paid an allowance,
          in accordance with regulations prescribed by the Secretary of
          Defense, at a rate not in excess of the allowance authorized to be
          paid under section 5941(a) of title 5 for employees whose rates of
          basic pay are fixed by statute.
            `(2) Such allowance shall be based on--
                `(A) living costs substantially higher than in the District 
              of Columbia;
                `(B) conditions of environment which--
                    `(i) differ substantially from conditions of environment
                  in the continental United States; and
                    `(ii) warrant an allowance as a recruitment incentive; or
                `(C) both of those factors.
            `(3) This subsection applies to employees who--
                `(A) are citizens or nationals of the United States; and
                `(B) are stationed outside the continental United States or 
              in Alaska.
            `(e) TERMINATION OF EMPLOYEES- (1) Notwithstanding any other
          provision of law, the Secretary of Defense may terminate the
          employment of any employee of the Defense Intelligence Agency or 
          the Central Imagery Office if the Secretary--
                `(A) considers such action to be in the interests of the
              United States; and
                `(B) determines that the procedures prescribed in other
              provisions of law that authorize the termination of the
              employment of such employee cannot be invoked in a manner
              consistent with the national security.
            `(2) A decision by the Secretary of Defense to terminate the
          employment of an employee under this subsection is final and may 
          not be appealed or reviewed outside the Department of Defense.
            `(3) The Secretary of Defense shall promptly notify the Permanent
          Select Committee on Intelligence of the House of Representatives 
          and the Select Committee on Intelligence of the Senate whenever the
          Secretary terminates the employment of any employee under the
          authority of this subsection.
            `(4) Any termination of employment under this subsection shall 
          not affect the right of the employee involved to seek or accept
          employment with any other department or agency of the United States
          if that employee is declared eligible for such employment by the
          Director of the Office of Personnel Management.
            `(5) The authority of the Secretary of Defense under this
          subsection may be delegated only to the Deputy Secretary of 
          Defense, the Director of the Defense Intelligence Agency (with
          respect to employees of the Defense Intelligence Agency), and the
          Director of the Central Imagery Office (with respect to employees 
          of the Central Imagery Office). An action to terminate employment 
          of an employee by any such officer may be appealed to the Secretary
          of Defense.
            `(f) DEFENSE INTELLIGENCE SENIOR LEVEL POSITIONS- (1) In carrying
          out subsection (a)(1), the Secretary may designate positions
          described in paragraph (3) as Defense Intelligence Senior Level
          positions. The total number of positions designated under this
          subsection and in the Defense Intelligence Senior Executive Service
          under section 1601 of this title may not exceed the number of
          positions in the Defense Intelligence Senior Executive Service as 
          of June 1, 1995.
            `(2) Positions designated under this subsection shall be treated
          as equivalent for purposes of compensation to the senior level
          positions to which section 5376 of title 5 is applicable.
            `(3) Positions that may be designated as Defense Intelligence
          Senior Level positions are positions in the Defense Intelligence
          Agency and Central Imagery Office that (A) are classified above the
          GS-15 level, (B) emphasize functional expertise and advisory
          activity, but (C) do not have the organizational or program
          management functions necessary for inclusion in the Defense
          Intelligence Senior Executive Service.
            `(4) Positions referred to in paragraph (3) include Defense
          Intelligence Senior Technical positions and Defense Intelligence
          Senior Professional positions. For purposes of this subsection--
                `(A) Defense Intelligence Senior Technical positions are
              positions covered by paragraph (3) that involve any of the
              following:
                    `(i) Research and development.
                    `(ii) Test and evaluation.
                    `(iii) Substantive analysis, liaison, or advisory 
                  activity focusing on engineering, physical sciences,
                  computer science, mathematics, biology, chemistry, 
                  medicine, or other closely related scientific and technical
                  fields.
                    `(iv) Intelligence disciplines including production,
                  collection, and operations in close association with any of
                  the activities described in clauses (i), (ii), and (iii) or
                  related activities; and
                `(B) Defense Intelligence Senior Professional positions are
              positions covered by paragraph (3) that emphasize staff,
              liaison, analytical, advisory, or other activity focusing on
              intelligence, law, finance and accounting, program and budget,
              human resources management, training, information services,
              logistics, security, and other appropriate fields.
            `(g) `EMPLOYEE' DEFINED AS INCLUDING OFFICERS- In this section,
          the term `employee', with respect to the Defense Intelligence 
          Agency or the Central Imagery Office, includes any civilian officer
          of that Agency or Office.'.
          SEC. 502. COMPARABLE BENEFITS AND ALLOWANCES FOR CIVILIAN AND
                            MILITARY PERSONNEL ASSIGNED TO DEFENSE
                            INTELLIGENCE FUNCTIONS OVERSEAS.
            (a) CIVILIAN PERSONNEL- Section 1605 of title 10, United States
          Code, is amended--
                (1) in subsection (a)--
                    (A) by inserting `(1)' after `(a)';
                    (B) by striking out `of the Department of Defense' and 
                  all that follows through `this subsection,' and inserting 
                  in lieu thereof `described in subsection (d)'; and
                    (C) by designating the second sentence as paragraph (2);
                (2) by striking out subsection (c) and inserting in lieu
              thereof the following:
            `(c) Regulations prescribed under subsection (a) may not take
          effect until the Secretary of Defense has submitted such 
          regulations to--
                `(1) the Committee on Armed Services and the Select Committee
              on Intelligence of the Senate; and
                `(2) the Committee on National Security and the Permanent
              Select Committee on Intelligence of the House of
              Representatives.'; and
                (3) by adding at the end the following new subsection:
            `(d) Subsection (a) applies to civilian personnel of the
          Department of Defense who--
                `(1) are United States nationals;
                `(2) in the case of employees of the Defense Intelligence
              Agency, are assigned to duty outside the United States and, in
              the case of other employees, are assigned to Defense Attache
              Offices or Defense Intelligence Agency Liaison Offices outside
              the United States; and
                `(3) are designated by the Secretary of Defense for the
              purposes of subsection (a).'.
            (b) MILITARY PERSONNEL- Section 431 of title 37, United States
          Code, is amended--
                (1) in subsection (a), by striking out `who are assigned to'
              and all that follows through `of this subsection' and inserting
              in lieu thereof `described in subsection (e)';
                (2) by striking out subsection (d) and inserting in lieu
              thereof the following:
            `(d) Regulations prescribed under subsection (a) may not take
          effect until the Secretary of Defense has submitted such 
          regulations to--
                `(1) the Committee on Armed Services and the Select Committee
              on Intelligence of the Senate; and
                `(2) the Committee on National Security and the Permanent
              Select Committee on Intelligence of the House of
              Representatives.'; and
                (3) by adding at the end the following new subsection:
            `(e) Subsection (a) applies to members of the armed forces who--
                `(1) are assigned--
                    `(A) to Defense Attache Offices or Defense Intelligence
                  Agency Liaison Offices outside the United States; or
                    `(B) to the Defense Intelligence Agency and engaged in
                  intelligence-related duties outside the United States; and
                `(2) are designated by the Secretary of Defense for the
              purposes of subsection (a).'.
          SEC. 503. EXTENSION OF AUTHORITY TO CONDUCT INTELLIGENCE COMMERCIAL
                            ACTIVITIES.
            Section 431(a) of title 10, United States Code, is amended by
          striking out `1995' and inserting in lieu thereof `1998'.
          SEC. 504. AVAILABILITY OF FUNDS FOR TIER II UAV.
            All funds appropriated for fiscal year 1995 for the Medium
          Altitude Endurance Unmanned Aerial Vehicle (Tier II) are
          specifically authorized, within the meaning of section 504 of the
          National Security Act of 1947 (50 U.S.C. 414), for such purpose.
          SEC. 505. TEMPORARY PROGRAM TO WAIVE MANDATORY REDUCTIONS TO
                            ANNUITIES.
            (a) GENERAL AUTHORITY- The Secretary of Defense shall establish a
          program under which the reduction of annuities under subsection (h)
          of section 8339 of title 5, United States Code, may be waived to
          encourage eligible employees to separate voluntarily from service 
          by retiring to lessen the possibility of involuntary separations 
          due to reduction in force at the National Security Agency.
            (b) COMPUTATION OF ANNUITY- Under this program, annuities shall 
          be computed under section 8339 of such title without regard to
          subsection (h) of such section.
            (c) PROGRAM ELIGIBILITY REQUIREMENTS- Under the program
          established under subsection (a), the waiver of the annuity
          reduction may be offered by the Director of the National Security
          Agency--
                (1) to an employee who--
                    (A) is an employee of the National Security Agency,
                  serving under an appointment without time limitation, who 
                  is in the Civil Service Retirement System and is eligible
                  for an annuity under section 8336(d)(2) of title 5, United
                  States Code, other than--
                        (i) a reemployed annuitant under subchapter III of
                      chapter 83 of such title 5; and
                        (ii) an employee having a disability on the basis of
                      which such employee is or would be eligible for
                      disability retirement under such chapter 83; and
                    (B) is within such occupational groups or geographic
                  locations, or subject to similar limitations or conditions,
                  as the Director may require; and
                (2) for a period not to exceed 90 days during the period
              beginning on October 1, 1995, and ending on September 30, 1996.
            (d) PAYMENTS TO THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND-
          In addition to any other payment
          which it is required to make under subchapter III of chapter 83 of
          title 5, United States Code, the National Security Agency shall
          remit to the Office of Personnel Management for deposit in the
          Treasury of the United States to the credit of the Civil Service
          Retirement and Disability Fund the amount necessary to reimburse 
          the Fund for the additional costs of the unreduced annuities 
          payable under this section. Amounts may be made available to make
          such deposits from amounts authorized to be appropriated to the
          National Security Agency for the fiscal year in which this Act is
          enacted and for the succeeding four fiscal years.
            (e) LIMITATION ON AVAILABILITY OF FUNDS- No funds shall be 
          payable under this section based on retirements occurring after
          September 30, 1996.
            (f) REGULATIONS- The Secretary shall prescribe such regulations 
          as may be necessary to carry out this section.
                             TITLE VI--TECHNICAL AMENDMENTS
          SEC. 601. CLARIFICATION WITH RESPECT TO PAY FOR DIRECTOR OR DEPUTY
                            DIRECTOR OF CENTRAL INTELLIGENCE APPOINTED FROM
                            COMMISSIONED OFFICERS OF THE ARMED FORCES.
            (a) CLARIFICATION- Subparagraph (C) of section 102(c)(3) of the
          National Security Act of 1947 (50 U.S.C. 403(c)(3)) is amended to
          read as follows:
            `(C) A commissioned officer of the Armed Forces on active duty 
          who is appointed to the position of Director or Deputy Director,
          while serving in such position and while remaining on active duty,
          shall continue to receive military pay and allowances. Funds from
          which such pay and allowances are paid shall be reimbursed from
          funds available to the Director.'.
            (b) TECHNICAL CORRECTIONS- (1) Subparagraphs (A) and (B) of such
          section are amended by striking out `pursuant to paragraph (2) or
          (3)' and inserting in lieu thereof `to the position of Director or
          Deputy Director'.
            (2) Subparagraph (B) of such section is amended by striking out
          `paragraph (A)' and inserting in lieu thereof `subparagraph (A)'.
          SEC. 602. CHANGE OF DESIGNATION OF CIA OFFICE OF SECURITY.
            Section 701(b)(3) of the National Security Act of 1947 (50 U.S.C.
          431(b)(3)), is amended by striking out `Office of Security' and
          inserting in lieu thereof `Office of Personnel Security'.
                 TITLE VII--DEPARTMENT OF STATE INTELLIGENCE ACTIVITIES
          SEC. 701. CONSOLIDATION OF WATCH COMPONENT OF THE BUREAU OF
                            INTELLIGENCE AND RESEARCH.
            (a) LIMITATION- The 24-Hour Watch component of the Bureau of
          Intelligence and Research of the Department of State may not be
          consolidated into, and its functions may not be transferred to, the
          Secretary's Operations Center of the Department of State until 60
          days after the report described in subsection (b) has been 
          submitted by the Secretary of State to the Permanent Select
          Committee on Intelligence and the Committee on International
          Relations of the House of Representatives and the Select Committee
          on Intelligence and the Committee on Foreign Relations of the Senate.
            (b) REPORT- The report referred to in subsection (a) shall
          include--
                (1) the measures taken and proposed to be taken to assure 
              that adequate resources of the Secretary's Operations Center 
              are dedicated to fulfilling the needs and requirements of the
              Bureau of Intelligence and Research;
                (2) the measures taken and proposed to be taken, in
              consultation with the Director of Central Intelligence
              particularly with regard to procedures, staff training, and
              facilities, to upgrade the ability of the Secretary's 
              Operations Center to handle highly sensitive information so it
              is properly safeguarded and provided to the Bureau of
              Intelligence and Research in a timely manner; and
                (3) a comparison of the cost of the measures necessary to
              upgrade the Secretary's Operations Center to fulfill the needs
              of the Bureau of Intelligence and Research with the costs of
              eliminating the 24-Hour Watch component of the Bureau of
              Intelligence and Research.
          HR 1655 RH----2