104th Congress                                           Rept. 104-620,
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
                       INTELLIGENCE COMMUNITY ACT

_______________________________________________________________________


                 June 13, 1996.--Ordered to be printed

                                _______


   Mr. Combest, from the Permanent Select Committee on Intelligence, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3237]

      [Including cost estimate of the Congressional Budget Office]

  The Permanent Select Committee on Intelligence, to whom was 
referred the bill (H.R. 3237) to provide for improved 
management and operation of intelligence activities of the 
Government by providing for a more corporate approach to 
intelligence, to reorganize the agencies of the Government 
engaged in intelligence activities so as to provide an improved 
Intelligence Community for the 21st century, and for other 
purposes, having considered the same, report favorably thereon 
with amendments and recommend that the bill as amended do pass.
  The amendments are as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Intelligence Community Act''.

SEC. 2. ORGANIZATION OF ACT; TABLE OF CONTENTS.

  (a) Organization of Act.--This Act is organized as follows:

               TITLE I--INTELLIGENCE COMMUNITY GENERALLY

Subtitle A--Director of Central Intelligence
Subtitle B--Deputy Directors of Central Intelligence
Subtitle C--The Intelligence Community
Subtitle D--Annual Reports

              TITLE II--INTELLIGENCE COMMUNITY MANAGEMENT

Subtitle A--Intelligence Community Functions
Subtitle B--National Foreign Intelligence Program
Subtitle C--Personnel
Subtitle D--Infrastructure Support Office
Subtitle E--Intelligence Community Administration

               TITLE III--INTELLIGENCE COMMUNITY AGENCIES

Subtitle A--Central Intelligence Agency
Subtitle B--The National Intelligence Evaluation Council
Subtitle C--Future of Intelligence Collection

TITLE IV--DEPARTMENT OF DEFENSE FUNCTIONS IN THE INTELLIGENCE COMMUNITY

Subtitle A--Secretary of Defense
Subtitle B--Director of Military Intelligence
Subtitle C--Defense Intelligence Agency
Subtitle D--The Military Departments
Subtitle E--Planning and Budgeting
Subtitle F--Civilian Intelligence Personnel Policy

  TITLE V--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

TITLE VI--TECHNICAL AND CONFORMING AMENDMENTS AND EFFECTIVE DATE
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act; table of contents.
Sec. 3. Findings and purposes.
Sec. 4. Definitions.

               TITLE I--INTELLIGENCE COMMUNITY GENERALLY

              Subtitle A--Director of Central Intelligence

Sec. 101. Director of Central Intelligence.
Sec. 102. General intelligence responsibilities of the Director.
Sec. 103. Preparation of annual budget for National Foreign 
Intelligence Program.
Sec. 104. Foreign intelligence collection.
Sec. 105. Protection of sources and methods.
Sec. 106. Promotion and evaluation of the usefulness of intelligence to 
consumers.
Sec. 107. Elimination of waste and unnecessary duplication.
Sec. 108. Other functions.
Sec. 109. Prohibition on law enforcement powers and internal security 
functions.
Sec. 110. Access to intelligence.
Sec. 111. Coordination with foreign governments.

          Subtitle B--Deputy Directors of Central Intelligence

Sec. 121. Deputy Directors of Central Intelligence.
Sec. 122. Deputy Director of Central Intelligence.
Sec. 123. Deputy Director of Central Intelligence for Community 
Management.
Sec. 124. Civilian and military status of Director of Central 
Intelligence and Deputies.

                 Subtitle C--The Intelligence Community

Sec. 131. Elements of the Intelligence Community.
Sec. 132. Intelligence Community Inspector General Forum.

                       Subtitle D--Annual Reports

Sec. 141. Annual report on Intelligence Community activities.

              TITLE II--INTELLIGENCE COMMUNITY MANAGEMENT

              Subtitle A--Intelligence Community Functions

Sec. 201. Community Management Staff.
Sec. 202. Functions of the Community Management Staff.

           Subtitle B--National Foreign Intelligence Program

Sec. 221. Budgets.
Sec. 222. Comptroller functions of Community Management Staff.
Sec. 223. Limitations on transfers and reprogramming.
Sec. 224. Transfer of funds or personnel within the National Foreign 
Intelligence Program.
Sec. 225. Limitation on reprogramming.

                         Subtitle C--Personnel

Sec. 231. Use of personnel.
Sec. 232. Authority to terminate employment of certain employees.
Sec. 233. Intelligence Community Reserve.

               Subtitle D--Infrastructure Support Office

Sec. 241. Establishment of Infrastructure Support Office.
Sec. 242. Responsibilities of Director of the Infrastructure Support 
Office.

           Subtitle E--Intelligence Community Administration

Sec. 251. Secrecy agreements used in intelligence activities.
Sec. 252. Coordination of counterintelligence matters with the Federal 
Bureau of Investigation.
Sec. 253. Intelligence Community contracting.

               TITLE III--INTELLIGENCE COMMUNITY AGENCIES

                Subtitle A--Central Intelligence Agency

Sec. 301. Central Intelligence Agency.
Sec. 302. Duties of Director of Central Intelligence with regard to the 
Central Intelligence Agency.
Sec. 303. Functions of the Central Intelligence Agency.
Sec. 304. Agreement to transfer DOD clandestine humint to CIA.

        Subtitle B--The National Intelligence Evaluation Council

Sec. 321. National Intelligence Evaluation Council.
Sec. 322. Functions of the National Intelligence Evaluation Council.
Sec. 323. Staffing of the National Intelligence Evaluation Council.

             Subtitle C--Future of Intelligence Collection

Sec. 331. Panel on the future of intelligence collection.

TITLE IV--DEPARTMENT OF DEFENSE FUNCTIONS IN THE INTELLIGENCE COMMUNITY

                    Subtitle A--Secretary of Defense

Sec. 401. Overall Secretary of Defense functions.
Sec. 402. Requirement that budgets for intelligence components be 
adequate.
Sec. 403. Implementation of Director of Central Intelligence policies 
and resource decisions.
Sec. 404. Relationship of NFIP activities to tactical intelligence 
activities.
Sec. 405. Responsiveness to operational military forces.
Sec. 406. Elimination of waste and unnecessary duplication.
Sec. 407. Joint and corporate conduct of Defense intelligence 
activities.
Sec. 408. Signals intelligence activities.
Sec. 409. Imagery collection, processing, and exploitation.
Sec. 410. Overhead reconnaissance systems.
Sec. 411. Use of elements of Department of Defense.
Sec. 412. Consultations regarding appointment of certain intelligence 
officials.

             Subtitle B--Director of Military Intelligence

Sec. 421. Director of Military Intelligence.
Sec. 422. Functions of the Director of Military Intelligence.
Sec. 423. Role of Director of Military Intelligence in the Intelligence 
Community.
Sec. 424. Planning and budget functions.
Sec. 425. Staff.

                Subtitle C--Defense Intelligence Agency

Sec. 441. Defense Intelligence Agency generally.
Sec. 442. Functions of the Defense Intelligence Agency.

                  Subtitle D--The Military Departments

Sec. 451. Intelligence capabilities of the military departments.

                   Subtitle E--Planning and Budgeting

Sec. 461. Joint Military Intelligence Program.
Sec. 462. Tactical Intelligence and Related Activities (TIARA).
Sec. 463. Notice to Congress of changes in JMIP and TIARA.

           Subtitle F--Civilian Intelligence Personnel Policy

Sec. 481. Standardization of personnel policies for intelligence 
components of Department of Defense
Sec. 482. Temporary program for civilian workforce reduction in the 
National Security Agency.

  TITLE V--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

Sec. 501. Recodification of laws relating to National Security Council 
and related boards and committees in Executive Office of the President.
Sec. 502. Committee on Foreign Intelligence.
Sec. 503. Transnational threats.
Sec. 504. Prohibition of direct participation by National Security 
Council staff in execution of intelligence operations.

    TITLE VI--TECHNICAL AND CONFORMING AMENDMENTS AND EFFECTIVE DATE

Sec. 601. Restatement of National Security Agency Act of 1959.
Sec. 602. Amendments to title 5, United States Code.
Sec. 603. Repeal of provisions recodified in new Act.
Sec. 604. National Security Act of 1947.
Sec. 605. Abolition of National Intelligence Council.
Sec. 606. Effective date.

SEC. 3. FINDINGS AND PURPOSES.

  (a) Findings.--The Congress makes the following findings:
          (1) The United States must maintain a strong, capable, and 
        increasingly flexible intelligence capability to collect and 
        analyze information concerning world events that may threaten 
        its security so as to be in a position to anticipate and 
        respond to such events in an effective and timely manner.
          (2) The existing framework for the conduct of United States 
        intelligence activities, established by the National Security 
        Act of 1947, has evolved largely without changes to the 
        original statutory framework, but rather as a matter of 
        Executive order and directive.
          (3) Although the Director of Central Intelligence has had an 
        overall, coordinating role for United States intelligence 
        activities, under existing law and by Executive order the 
        Director has, in fact, lacked sufficient authorities to 
        exercise this responsibility effectively, leaving control 
        largely decentralized within elements of the Intelligence 
        Community.
  (b) Purposes.--The purposes of this Act are--
          (1) to provide a corporate framework for the improved 
        management of United States intelligence activities at all 
        levels and within all intelligence disciplines;
          (2) to provide an institutional structure that will continue 
        to ensure that the Intelligence Community serves the needs of 
        the Government as a whole in an effective, timely, and 
        corporate manner;
          (3) to clarify by law the responsibilities of United States 
        intelligence agencies; and
          (4) to improve the congressional oversight of intelligence 
        activities.

SEC. 4. DEFINITIONS.

  For the purposes of this Act:
          (1) Intelligence.--The term ``intelligence'' includes foreign 
        intelligence and counterintelligence.
          (2) Foreign intelligence.--The term ``foreign intelligence'' 
        means information relating to the capabilities, intentions, or 
        activities of foreign governments or elements thereof, foreign 
        organizations, foreign transnational entities, or foreign 
        persons.
          (3) Counterintelligence.--The term ``counterintelligence'' 
        means information gathered and activities conducted to protect 
        against espionage, other intelligence activities, sabotage, or 
        assassinations conducted by or on behalf of foreign governments 
        or elements thereof, foreign organizations, foreign 
        transnational entities, or foreign persons, or international 
        terrorist activities.
          (4) National intelligence and intelligence related to 
        national security.--The terms ``national intelligence'' and 
        ``intelligence related to the national security''--
                  (A) each refer to intelligence that pertains to the 
                interests of the Government generally, rather than to 
                the interests of a single department or agency of 
                Government, or to a component of such department or 
                agency;
                  (B) do not refer to intelligence necessary to plan or 
                conduct tactical military operations by United States 
                Armed Forces; and
                  (C) do not refer to counterintelligence or law 
                enforcement activities conducted by the Federal Bureau 
                of Investigation except to the extent provided for in 
                procedures agreed to by the Director of Central 
                Intelligence and the Attorney General, or otherwise as 
                expressly provided for in this Act.
          (5) National foreign intelligence program.--The term 
        ``National Foreign Intelligence Program'' refers to all 
        programs, projects, and activities of the Intelligence 
        Community that are intended to produce national intelligence, 
        as well as any other programs of the Intelligence Community 
        designated jointly by the Director of Central Intelligence and 
        the head of a United States department or agency or by the 
        President. Such term does not include programs, projects, or 
        activities of the military departments to acquire intelligence 
        solely for the planning and conduct of tactical military 
        operations by United States Armed Forces.
          (6) Congressional intelligence committees.--The term 
        ``congressional intelligence committees'' means--
                  (A) the Select Committee on Intelligence of the 
                Senate; and
                  (B) the Permanent Select Committee on Intelligence of 
                the House of Representatives.

               TITLE I--INTELLIGENCE COMMUNITY GENERALLY

              Subtitle A--Director of Central Intelligence

SEC. 101. DIRECTOR OF CENTRAL INTELLIGENCE.

  (a) Director of Central Intelligence.--There is a Director of Central 
Intelligence. The Director of Central Intelligence is--
          (1) the principal adviser to the President and the National 
        Security Council for intelligence matters related to the 
        national security; and
          (2) the head of the Intelligence Community.
   (b) Appointment.--The Director of Central Intelligence is appointed 
by the President, by and with the advice and consent of the Senate.

SEC. 102. GENERAL INTELLIGENCE RESPONSIBILITIES OF THE DIRECTOR.

  (a) Provision of Intelligence to the President.--Under the direction 
of the National Security Council, the Director of Central Intelligence 
shall be responsible for providing intelligence to the President.
  (b) Provision of Intelligence to Others.--Under the direction of the 
National Security Council, the Director of Central Intelligence shall 
be responsible for providing intelligence--
          (1) to the heads of departments and agencies of the executive 
        branch;
          (2) to the Chairman of the Joint Chiefs of Staff, to the 
        commanders of the unified combatant commands, and to other 
        senior military commanders; and
          (3) to the Senate and House of Representatives and the 
        appropriate committees thereof.
  (c) Intelligence To Be Objective and Timely.--Intelligence provided 
by the Director pursuant to this section should be timely and objective 
and shall be provided independent of political considerations or bias 
and based upon all sources available to the Intelligence Community.

SEC. 103. PREPARATION OF ANNUAL BUDGET FOR NATIONAL FOREIGN 
                    INTELLIGENCE PROGRAM.

  The Director of Central Intelligence shall develop (in accordance 
with subtitle B of title II) and present to the President an annual 
budget for the National Foreign Intelligence Program of the United 
States.

SEC. 104. FOREIGN INTELLIGENCE COLLECTION.

  The Director of Central Intelligence shall establish the requirements 
and priorities to govern the collection of national intelligence by 
elements of the Intelligence Community and shall manage the collection 
capabilities of the Intelligence Community to ensure that national 
requirements are met.

SEC. 105. PROTECTION OF SOURCES AND METHODS.

  The Director of Central Intelligence shall protect intelligence 
sources and methods from unauthorized disclosure.

SEC. 106. PROMOTION AND EVALUATION OF THE USEFULNESS OF INTELLIGENCE TO 
                    CONSUMERS.

  The Director of Central Intelligence shall promote and evaluate the 
quality and usefulness of national intelligence to consumers within the 
Government.

SEC. 107. ELIMINATION OF WASTE AND UNNECESSARY DUPLICATION.

  The Director of Central Intelligence, in cooperation with the heads 
of the elements of the Intelligence Community shall eliminate waste and 
unnecessary duplication within the Intelligence Community.

SEC. 108. OTHER FUNCTIONS.

  The Director of Central Intelligence shall perform such other 
functions as the President or the National Security Council may direct.

SEC. 109. PROHIBITION ON LAW ENFORCEMENT POWERS AND INTERNAL SECURITY 
                    FUNCTIONS.

  The Director of Central Intelligence shall have no police, subpoena, 
or law enforcement powers or internal security functions.

SEC. 110. ACCESS TO INTELLIGENCE.

  To the extent recommended by the National Security Council and 
approved by the President, the Director of Central Intelligence shall 
have access to all intelligence related to the national security which 
is collected by any department, agency, or other entity of the United 
States.

SEC. 111. COORDINATION WITH FOREIGN GOVERNMENTS.

  Under the direction of the National Security Council and in a manner 
consistent with section 207 of the Foreign Service Act of 1980 (22 
U.S.C. 3927), the Director shall coordinate the relationships between 
elements of the Intelligence Community and the intelligence or security 
services of foreign governments on all matters involving intelligence 
related to the national security or involving intelligence acquired 
through clandestine means.

          Subtitle B--Deputy Directors of Central Intelligence

SEC. 121. DEPUTY DIRECTORS OF CENTRAL INTELLIGENCE.

  (a) Positions.--There is a Deputy Director of Central Intelligence, 
and there is a Deputy Director of Central Intelligence for Community 
Management.
  (b) Appointment.--Each Deputy Director shall be appointed by the 
President, by and with the advice and consent of the Senate.
  (c) Qualifications.--Each Deputy Director shall have extensive 
national security experience.

SEC. 122. DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE.

  (a) In General.--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 office of the Director of Central Intelligence.
  (b) Precedence.--The Deputy Director of Central Intelligence takes 
precedence immediately after the Director of Central Intelligence.

SEC. 123. DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE FOR COMMUNITY 
                    MANAGEMENT.

  Subject to the direction of the Director of Central Intelligence, the 
Deputy Director of Central Intelligence for Community Management shall 
be responsible for the following:
          (1) Directing the operations of the Community Management 
        Staff.
          (2) Directing the operations of the Infrastructure Support 
        Office.
          (3) Performing community-wide management functions, including 
        the management of personnel, resources, and requirements.
          (4) Managing community-wide research and development.

SEC. 124. CIVILIAN AND MILITARY STATUS OF DIRECTOR OF CENTRAL 
                    INTELLIGENCE AND DEPUTIES.

  (a) Limitation on Active Duty Status.--Not more than one individual 
serving in the following positions may be on active duty in the Armed 
Forces while serving in that position:
          (1) The Director of Central Intelligence.
          (2) The two Deputy Directors of Central Intelligence.
  (b) Appointment and Rank.--An individual serving in a position 
specified in paragraph (1) or (2) of subsection (a) who is on active 
duty in the Armed Forces shall be appointed from among the officers of 
the Armed Forces on the active-duty list. The Director of Central 
Intelligence may hold the grade of general or admiral while so serving 
and a Deputy Director of Central Intelligence may hold the rank of 
lieutenant general or vice admiral while so serving.
  (c) Role as Officer of Armed Forces.--A commissioned officer of the 
Armed Forces, while serving in a position specified in paragraph (1) or 
(2) of subsection (a)--
          (1) shall not be subject to supervision or control by the 
        Secretary of Defense or by any officer or employee of the 
        Department of Defense;
          (2) 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 authorized by this title; and
          (3) 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.
  (d) Military Benefits.--Except as provided in paragraph (1) or (2) of 
subsection (c), the appointment of an officer of the Armed Forces to a 
position specified in paragraph (1) or (2) of subsection (a) 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.
  (e) Pay.--An officer of the Armed Forces appointed to a position 
specified in paragraph (1) or (2) of subsection (a), while serving in 
such position, shall continue to receive military pay and allowances 
payable to a commissioned officer of that officer's grade and length of 
service for which the appropriate military department shall be 
reimbursed from funds available to the Director of Central 
Intelligence. In addition to any pay or allowance payable under this 
subsection, such officer shall also receive, out of funds available to 
the Director of Central Intelligence, annual compensation in an amount 
by which the annual rate of compensation payable for such position 
exceeds the total of that officer's annual rate of military pay and 
allowances.

                 Subtitle C--The Intelligence Community

SEC. 131. ELEMENTS OF THE INTELLIGENCE COMMUNITY.

  The Intelligence Community of the United States Government consists 
of the following:
          (1) The Office of the Director of Central Intelligence, which 
        shall include the Offices of the Deputy Directors of Central 
        Intelligence and such other offices as the Director may 
        designate.
          (2) The Community Management Staff.
          (3) The National Intelligence Evaluation Council.
          (4) The Central Intelligence Agency.
          (5) The Defense Intelligence Agency.
          (6) The National Security Agency.
          (7) The National Reconnaissance Office.
          (8) The Central Imagery Office.
          (9) The Infrastructure Support Office.
          (10) The intelligence elements of the Army, the Navy, the Air 
        Force, the Marine Corps, and the Coast Guard.
          (11) The intelligence elements of the Federal Bureau of 
        Investigation, the Department of the Treasury, the Department 
        of Energy, and the Drug Enforcement Administration.
          (12) The Bureau of Intelligence and Research of the 
        Department of State.
          (13) Such other offices and entities as are established by 
        law under the authority of the Director of Central Intelligence 
        or as may be provided by law or by the President to be a 
        component of the Intelligence Community.

SEC. 132. INTELLIGENCE COMMUNITY INSPECTOR GENERAL FORUM.

  (a) Establishment.--There is hereby established an Intelligence 
Community Inspector General Forum (hereinafter in this section referred 
to as the ``Forum'').
  (b) Mission.--The Forum shall provide a mechanism for sharing 
information among those Inspectors General whose duties and 
responsibilities include audit, inspection, or investigation relating 
to programs and operations of elements within the Intelligence 
Community to ensure adequate Inspector General oversight with respect 
to those programs and operations and to coordinate efforts with a view 
toward preventing duplication.
  (c) Membership.--
          (1) The Forum shall consist of the following members:
                  (A) The Inspector General of the Department of 
                Defense.
                  (B) The Inspector General of the Central Intelligence 
                Agency.
                  (C) The Inspector General of the Department of State.
                  (D) The Inspector General of the Department of the 
                Treasury.
                  (E) The Inspector General of the Department of 
                Justice.
                  (F) The Inspector General of the Department of 
                Energy.
                  (G) The Inspector General of any other element within 
                the Intelligence Community, regardless of whether the 
                position of such Inspector General is created by 
                statute.
                  (H) Such other Federal officials as the co-chairs of 
                the Forum may invite to attend meetings whenever 
                matters of interest to them are scheduled to be 
                discussed.
          (2) The Forum shall be co-chaired by the Inspector General of 
        the Department of Defense and the Inspector General of the 
        Central Intelligence Agency.
          (3) The co-chairs may establish such subcommittees or working 
        groups as they consider appropriate to support the work of the 
        Forum.
          (4) There shall be an Executive Secretary for the Forum to be 
        appointed from the Office of the Inspector General of the 
        Department of Defense.
  (d) Meetings.--The Forum shall meet at least quarterly, and more 
often as the co-chairs consider necessary. The Director of Central 
Intelligence, the Secretaries of Defense, State, the Treasury, and 
Energy, and the Attorney General of the United States shall be given as 
much advance notice as practicable before each meeting of the Forum.
  (e) Functions.--
          (1) The Forum shall ensure adequate Inspector General 
        oversight over programs and operations of elements within the 
        Intelligence Community under the jurisdiction of two or more 
        statutory Inspectors General. In this regard, the Director of 
        Central Intelligence, the Secretaries of Defense, State, the 
        Treasury, and Energy, and the Attorney General may each submit 
        to the Forum or to their respective statutory Inspector General 
        requests for an Inspector General audit, inspection, or 
        investigation with respect to any program or operation of an 
        element within the Intelligence Community under the 
        jurisdiction of two or more statutory Inspectors General.
          (2) The Forum shall serve as a focal point for discussions of 
        mutual interest to the Inspectors General concerning oversight 
        of elements within the Intelligence Community, including--
                  (A) policies and procedures for conducting audits, 
                inspections, or investigations into programs and 
                operations of elements within the Intelligence 
                Community under the jurisdiction of two or more 
                statutory Inspectors General; and
                  (B) qualifications and training for auditors, 
                inspectors, and investigators who will be assigned to 
                conduct audits, inspections, or investigations into 
                programs and operations of elements within the 
                Intelligence Community under the jurisdiction of two or 
                more statutory Inspectors General.
          (3) The Forum shall keep the Director of Central 
        Intelligence, the Secretary of the appropriate Department, and 
        the head of the appropriate element within the Intelligence 
        Community informed of issues identified in audits, inspections 
        or investigations of programs, or operations of elements within 
        the Intelligence Community under the jurisdiction of two or 
        more statutory Inspectors General.
          (4) This section shall not preclude and is not intended to 
        preclude an Inspector General from independently initiating any 
        audit, inspection, or investigation of programs or operations 
        within their respective establishment as they consider 
        appropriate in accordance with the Inspector General Act of 
        1978, or section 17 of the Central Intelligence Agency Act of 
        1949, as appropriate.
  (f) Responsibilities.--Members of the Forum shall--
          (1) designate a point of contact within their respective 
        organizations to receive and provide information regarding 
        Forum activities; and
          (2) provide staff and other resources for the audits, 
        inspections and investigations of programs, or operations that 
        involve two or more elements within the Intelligence Community.
  (g) Report on Inspector General for the Intelligence Community.--Not 
later than April 15, 1997, the Forum shall submit to the congressional 
intelligence committees a report on the feasibility of, and costs and 
benefits associated with, creating an Inspector General for the 
Intelligence Community.

                       Subtitle D--Annual Reports

SEC. 141. ANNUAL REPORT ON INTELLIGENCE COMMUNITY ACTIVITIES.

  (a) In General.--The Director of Central Intelligence shall submit to 
Congress an annual report on the activities of the Intelligence 
Community. The annual report shall be unclassified.
  (b) Matters To Be Covered in Annual Report.--Each report under this 
section shall describe--
          (1) the activities of the Intelligence Community during the 
        preceding fiscal year, including significant successes and 
        failures that can be described in an unclassified manner; and
          (2) the areas of the world and the issues that the Director 
        expects will require increased or unusual attention from the 
        Intelligence Community during the next fiscal year.
  (c) Time for Submission.--The report under this section for any year 
shall be submitted at the same time that the President submits the 
budget for the next fiscal year pursuant to section 1105 of title 31, 
United States Code.

              TITLE II--INTELLIGENCE COMMUNITY MANAGEMENT

              Subtitle A--Intelligence Community Functions

SEC. 201. COMMUNITY MANAGEMENT STAFF.

  There is a Community Management Staff.

SEC. 202. FUNCTIONS OF THE COMMUNITY MANAGEMENT STAFF.

  (a) In General.--The Deputy Director of Central Intelligence for 
Community Management, acting through the Community Management Staff, 
shall provide corporate management of the following Intelligence 
Community-wide functions:
          (1) Requirements and collection management.
          (2) Planning, programming, budgeting, and accounting for the 
        National Foreign Intelligence Program.
          (3) Research and development activities.
  (b) Coordination With the DMI Staff.--The Deputy Director of Central 
Intelligence for Community Management shall coordinate the functions 
referred to in paragraphs (1) through (3) of subsection (a) with the 
Director of Military Intelligence.

           Subtitle B--National Foreign Intelligence Program

SEC. 221. BUDGETS.

  (a) Preparation.--The Deputy Director of Central Intelligence for 
Community Management, in consultation with the elements of the 
Intelligence Community, shall prepare the annual budgets of the 
National Foreign Intelligence Program.
  (b) Approval of Budgets.--The Director of Central Intelligence shall 
approve the budgets prepared under subsection (a) before their 
incorporation in the National Foreign Intelligence Program.
  (c) Accounting.--The Director of Central Intelligence, acting through 
the Deputy Director of Central Intelligence for Community Management, 
shall budget and account for financial resources on a community-wide 
basis by the functional categories of collection, processing, 
exploitation, analysis, dissemination, and infrastructure.
  (d) Identification of Constituent Components of Base Intelligence 
Budget.--The Director of Central Intelligence shall include in the 
congressional budget justification materials provided to the 
congressional intelligence committees in connection with the annual 
submission of the National Foreign Intelligence Program for a fiscal 
year the same level of budgetary detail for that part of the National 
Foreign Intelligence Program budget identified as the Base Budget that 
is provided for that part of such budget identified as Ongoing 
Initiatives and New Initiatives.

SEC. 222. COMPTROLLER FUNCTIONS OF COMMUNITY MANAGEMENT STAFF.

  (a) Execution Review.--The Community Management Staff shall perform 
budget execution review of elements of the Intelligence Community and 
shall have the authority to recommend to the comptroller of the 
Department of Defense that authorized and appropriated intelligence 
funds be withheld in those instances in which elements of the 
Intelligence Community within the Department of Defense are not 
complying with guidance from the Director of Central Intelligence or 
applicable law.
  (b) Accounting System.--The Deputy Director of Central Intelligence 
for Community Management shall establish and maintain an Intelligence 
Community-wide automated system for programming, budgeting, accounting, 
and execution review of the National Foreign Intelligence Program.

SEC. 223. LIMITATIONS ON TRANSFERS AND REPROGRAMMING.

  (a) Limitation on New Use of Funds Available for Intelligence 
Activities.--Funds may not be made available through transfer, 
reprogramming, or other means between the Central Intelligence Agency 
and the Department of Defense for any intelligence or special activity 
different from that previously justified to the Congress unless the 
Director of Central Intelligence or the Secretary of Defense notifies 
in advance the Permanent Select Committee on Intelligence of the House 
of Representatives, the Select Committee on Intelligence of the Senate, 
and the Committees on Appropriations of the Senate and House of 
Representatives of the intent to make such funds available for such 
activity.
  (b) Limitation on Amounts Transferred.--The amount that may be 
transferred from any account of an element of the Intelligence 
Community for any fiscal year may not exceed five percent of the 
aggregate portion of the National Foreign Intelligence Program budget 
of that element for that fiscal year.
  (c) Limitation on Transfer of Funds Available for Drug Interdiction 
or Counter-Drug Purposes.--None of the funds available to the Central 
Intelligence Agency for any fiscal year for drug interdiction and 
counter-drug activities may be transferred to any other department or 
agency of the United States except as specifically provided in an 
appropriations law.

SEC. 224. TRANSFER OF FUNDS OR PERSONNEL WITHIN THE NATIONAL FOREIGN 
                    INTELLIGENCE PROGRAM.

  (a) General Authority.--In addition to any other authorities 
available under law for such purposes, the Director of Central 
Intelligence, with the approval of the Director of the Office of 
Management and Budget, may transfer funds appropriated for a program 
within the National Foreign Intelligence Program to another such 
program and, in accordance with procedures to be developed by the 
Director and the heads of affected departments and agencies, may 
transfer personnel authorized for an element of the Intelligence 
Community to another such element for periods up to a year.
  (b) Conditions.--A transfer of funds or personnel may be made under 
this section only if--
          (1) the funds or personnel are being transferred to an 
        activity that is a higher priority intelligence activity;
          (2) the need for funds or personnel for such activity is 
        based on unforeseen requirements;
          (3) the transfer does not involve a transfer of funds to the 
        Reserve for Contingencies of the Director of Central 
        Intelligence; and
          (4) the transfer does not involve a transfer of funds or 
        personnel from the Federal Bureau of Investigation.
  (c) Availability of Transferred Funds.--Funds transferred under this 
subsection shall remain available for the same period as the 
appropriations account to which such funds are transferred.
  (d) Notification of Congress.--Any transfer of funds under this 
section shall be carried out in accordance with existing procedures 
applicable to reprogramming notifications for the appropriate 
congressional committees. Any proposed transfer for which notice is 
given to the appropriate congressional committees shall be accompanied 
by a report explaining the nature of the proposed transfer and how it 
satisfies the requirements of this subsection. In addition, the 
congressional intelligence committees shall be promptly notified of any 
transfer of funds made pursuant to this subsection in any case in which 
the transfer would not have otherwise required reprogramming 
notification under procedures in effect as of October 24, 1992.
  (e) Report on Personnel Transfers.--The Director shall promptly 
submit to the congressional intelligence committees and, in the case of 
the transfer of personnel to or from the Department of Defense, the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives, a report on any transfer of 
personnel made pursuant to this section. The Director shall include in 
any such report an explanation of the nature of the transfer and how it 
satisfies the requirements of this subsection.

SEC. 225. LIMITATION ON REPROGRAMMING.

  No funds made available under the National Foreign Intelligence 
Program may be reprogrammed by any element of the Intelligence 
Community without the prior approval of the Director of Central 
Intelligence except in accordance with procedures issued by the 
Director.

                         Subtitle C--Personnel

SEC. 231. USE OF PERSONNEL.

  The Director of Central Intelligence shall, in coordination with the 
heads of departments and agencies with elements in the Intelligence 
Community, institute policies and programs within the Intelligence 
Community--
          (1) to provide for the rotation of personnel between the 
        elements of the Intelligence Community, where appropriate, and 
        to make such rotated service a factor to be considered for 
        promotion to senior positions;
          (2) to consolidate, wherever possible, personnel, 
        administrative, and security programs to reduce the overall 
        costs of these activities within the Intelligence Community;
          (3) to ensure the maintenance of effective performance 
        evaluation systems with common standards throughout the 
        national Intelligence Community; and
          (4) to develop a community-wide career development program 
        that emphasizes corporate management skills.

SEC. 232. AUTHORITY TO TERMINATE EMPLOYMENT OF CERTAIN EMPLOYEES.

  (a) In General.--The Director of Central Intelligence may, in the 
Director's discretion, terminate the employment of any officer or 
employee of the Central Intelligence Agency or the Community Management 
Staff whenever the Director considers such termination to be necessary 
or advisable in the interests of the United States.
  (b) Other Employment in the Government.--Any such termination does 
not affect the right of the individual whose employment is so 
terminated to seek or accept employment in any other department or 
agency of the Government if declared eligible for such employment by 
the Office of Personnel Management.

SEC. 233. INTELLIGENCE COMMUNITY RESERVE.

  (a) Establishment.--The Director of Central Intelligence shall 
establish an Intelligence Community Reserve.
  (b) Members.--The Intelligence Community Reserve may consist of 
former or retired personnel of elements of the Intelligence Community 
(including individuals with expertise in all-source analysis and 
individuals who are linguists) and of other qualified individuals drawn 
from non-Intelligence Community sources, as determined by the Director 
of Central Intelligence. Each member of the Intelligence Community 
Reserve shall agree that, during any period of emergency (as determined 
by the Director), the member shall enter into or return to active 
civilian status within the Intelligence Community and shall perform 
such duties as the Director may assign.
  (c) Monetary Incentives.--In order to attract individuals to become 
members of the Intelligence Community Reserve, the Director, without 
regard to subchapter IV of chapter 55 of title 5, United States Code, 
may provide special monetary incentives to individuals eligible to 
become members of the Reserve who agree to become members of the 
Intelligence Community Reserve and to acquire or retain proficiency in 
such skills as the Director shall specify.
  (d) Training and Support.--In order to provide training and support 
for members of the Intelligence Community Reserve, the Director--
          (1) may pay all or part of the expenses related to the 
        training of individuals in the Intelligence Community Reserve; 
        and
          (2) may pay benefits and allowances in accordance with 
        chapters 57 and 59 of title 5, United States Code, to 
        individuals in the Intelligence Community Reserve who are 
        assigned to training at sites away from their homes or regular 
        places of business.
  (e) Service Agreements.--(1) The Director, before providing training 
under this section to any individual, may obtain an agreement with that 
individual that--
          (A) in the case of current employees, pertains to 
        continuation of service of the employee, and repayment of the 
        expenses of such training for failure to fulfill the agreement, 
        consistent with the provisions of section 4108 of title 5, 
        United States Code; and
          (B) in the case of individuals accepted for membership in the 
        Intelligence Community Reserve, pertains to return to service 
        when requested, and repayment of the expenses of such training 
        for failure to fulfill the agreement, consistent with the 
        provisions of section 4108 of title 5, United States Code.
  (2) The Director, under regulations prescribed under this section, 
may waive, in whole or in part, a right of recovery under an agreement 
made under this subsection if it is shown that the recovery would be 
against equity and good conscience or against the public interest.
  (f) Applicability of Voluntary Separation Pay Act.--(1) Participation 
in the Intelligence Community Reserve through the receipt of monetary 
incentives under subsection (c) does not constitute employment with the 
Government of the United States for purposes of the Central 
Intelligence Agency Voluntary Separation Pay Act (50 U.S.C. 403-4).
  (2) Performing service in an active duty status under subsection (d) 
does constitute employment with the Government of the United States for 
purposes of the Central Intelligence Agency Voluntary Separation Pay 
Act (50 U.S.C. 403-4), and the repayment requirement of section 2(b) of 
that Act applies unless waived in accordance with such section 2(b).

               Subtitle D--Infrastructure Support Office

SEC. 241. ESTABLISHMENT OF INFRASTRUCTURE SUPPORT OFFICE.

  (a) Establishment.--There is within the Intelligence Community the 
Infrastructure Support Office.
  (b) Director.--The Office shall be headed by a Director, who shall be 
appointed by the Director of Central Intelligence.

SEC. 242. RESPONSIBILITIES OF DIRECTOR OF THE INFRASTRUCTURE SUPPORT 
                    OFFICE.

  (a) In General.--Under the direction of the Deputy Director of 
Central Intelligence for Community Management, the Director of the 
Infrastructure Support Office shall be responsible for administrative 
and logistical functions relating to infrastructure and services of 
common concern to elements of the Intelligence Community. Such 
functions shall include the following:
          (1) Personnel management.
          (2) Security.
          (3) Community-level training.
          (4) Communications.
          (5) Automation.
          (6) Such additional functions as may be assigned by the 
        Director of Central Intelligence.
  (b) Automation Equipment.--The Director of the Infrastructure Support 
Office shall establish standards and information architectures for 
automation equipment throughout the Intelligence Community. The 
Director shall be responsible for life-cycle management, replacement, 
and upgrading of such equipment.
  (c) Coordination Among Elements of Intelligence Community.--The 
Director of Central Intelligence and the Secretary of Defense, as 
appropriate, shall require the head of each element of the Intelligence 
Community to report to the Director of the Infrastructure Support 
Office on those functions and activities that can be consolidated in 
the Infrastructure Support Office so as to achieve cost savings and 
efficiencies for the Intelligence Community as a whole.

           Subtitle E--Intelligence Community Administration

SEC. 251. 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--
          (1) 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; and
          (2) provide that the form or agreement does not bar--
                  (A) disclosures to Congress; or
                  (B) disclosures to an authorized official of an 
                executive agency that are considered essential to 
                reporting a violation of United States law.

SEC. 252. COORDINATION OF COUNTERINTELLIGENCE MATTERS WITH THE FEDERAL 
                    BUREAU OF INVESTIGATION.

  (a) Coordination by Other Agencies With FBI.--(1) The head of each 
department or agency within the executive branch shall ensure that the 
Director of the Federal Bureau of Investigation is informed immediately 
of any information, regardless of its origin, which indicates that 
classified information is being, or may have been, disclosed in an 
unauthorized manner to a foreign power or an agent of a foreign power.
  (2) Following the making of a report under paragraph (1), the head of 
the department or agency making the report shall ensure that the 
Director of the Federal Bureau of Investigation is consulted with 
respect to all subsequent actions that may be undertaken by the 
department or agency to determine the source of such unauthorized 
disclosure.
  (3) When, after appropriate consultation with the head of the 
department or agency concerned, the Director of the Federal Bureau of 
Investigation undertakes investigative activities to determine the 
source of the unauthorized disclosure, the head of the department or 
agency concerned shall ensure that the Director is given complete and 
timely access to the employees and records of that department or agency 
for purposes of such investigative activities.
  (b) Coordination by FBI With Other Agencies.--(1) The Director of the 
Federal Bureau of Investigation shall ensure that when the Bureau 
obtains espionage information pertaining to the personnel, operations, 
or information of another department or agency of the executive branch, 
such information is provided through appropriate channels to the head 
of that department or agency.
  (2) The Director shall ensure that when the Bureau undertakes an 
espionage investigation which involves the personnel, operations, or 
information of another department or agency of the executive branch 
after a report is provided pursuant to subsection (a)(1), the head of 
that department or agency is consulted with respect to that 
investigation.
  (c) Presidential Waiver Authority.--(1) When essential to meet 
extraordinary circumstances affecting vital national security interests 
of the United States as determined by the President, the President may, 
on a case-by-case basis, waive the requirements of subsection (a) or 
(b), as they apply to the head of a particular department or agency or 
to the Director of the Federal Bureau of Investigation.
  (2) Such a waiver shall be in writing and shall fully state the 
justification for the waiver.
  (3) Within 30 days after issuing such a waiver, the President shall 
notify the congressional intelligence committees that the waiver has 
been issued and, at that time or as soon thereafter as national 
security considerations permit, shall provide those committees with a 
complete explanation of the circumstances which necessitated the 
waiver.
  (d) Annual Report.--The Director of the Federal Bureau of 
Investigation shall, not later than February 1 of each year, submit to 
the congressional intelligence committees and, in accordance with 
applicable security procedures, the Committees on the Judiciary of the 
Senate and House of Representatives a report with respect to compliance 
with subsections (a) and (b) during the previous calendar year. Each 
such report shall be prepared in consultation with the Director of 
Central Intelligence and the Secretary of Defense.
  (e) Relationship to Department of Defense Authority Over Persons 
Subject to UCMJ.--Nothing in this section may be construed to--
          (1) alter the jurisdictional arrangements in effect as of 
        October 14, 1994, between the Federal Bureau of Investigation 
        and the Department of Defense with respect to investigations of 
        persons subject to the Uniform Code of Military Justice 
        (chapter 47 of title 10, United States Code); or
          (2) impose reporting requirements upon the Department of 
        Defense with respect to such investigations beyond those 
        required by law and executive branch policy as of October 14, 
        1994.
  (f) Definitions.--As used in this section, the terms ``foreign 
power'' and ``agent of a foreign power'' have the meanings set forth in 
sections 101(a) and 101(b), respectively, of the Foreign Intelligence 
Surveillance Act of 1978 (50 U.S.C. 1801).

SEC. 253. INTELLIGENCE COMMUNITY CONTRACTING.

  The Director of Central Intelligence shall 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, shall award 
contracts in a manner that would maximize the procurement of products 
in the United States.

               TITLE III--INTELLIGENCE COMMUNITY AGENCIES

                Subtitle A--Central Intelligence Agency

SEC. 301. CENTRAL INTELLIGENCE AGENCY.

  There is a Central Intelligence Agency. The Central Intelligence 
Agency is the principal all-source national intelligence analytical 
agency. The Director of Central Intelligence is the head of the Central 
Intelligence Agency.

SEC. 302. DUTIES OF DIRECTOR OF CENTRAL INTELLIGENCE WITH REGARD TO THE 
                    CENTRAL INTELLIGENCE AGENCY.

  The Director of Central Intelligence, as head of the Central 
Intelligence Agency, shall--
          (1) correlate and evaluate intelligence related to the 
        national security;
          (2) provide appropriate dissemination of such intelligence; 
        and
          (3) coordinate and manage all human intelligence activities 
        within the Intelligence Community.

SEC. 303. FUNCTIONS OF THE CENTRAL INTELLIGENCE AGENCY.

  The Director of Central Intelligence, as head of the Central 
Intelligence Agency, shall perform the following functions:
          (1) Analysis and production.--
                  (A) Correlating and evaluating intelligence related 
                to national security collected from all sources 
                available throughout the Intelligence Community and 
                facilitating appropriate dissemination of such 
                intelligence.
                  (B) Coordinating analyses conducted by the elements 
                of the Intelligence Community and establishing 
                procedures for collaborative all-source analysis.
                  (C) Producing national intelligence estimates.
                  (D) Managing the acquisition and incorporation of 
                all-source intelligence into the community all-source 
                analytical process.
          (2) Collection of intelligence through human sources.--
                  (A) Collecting national intelligence clandestinely 
                through human sources and by other appropriate means, 
                using the elements of the Intelligence Community 
                authorized to undertake such collection.
                  (B) Ensuring that the most effective use is made of 
                resources authorized for the purposes of subparagraph 
                (A) and minimizing the risks to the United States 
                inherent in clandestine collection operations.
                  (C) Managing the administrative and technical support 
                activities of the Intelligence Community necessary to 
                carrying out clandestine collection.
                  (D) Performing such other functions as the Director 
                of Central Intelligence may direct.

SEC. 304. AGREEMENT TO TRANSFER DOD CLANDESTINE HUMINT TO CIA.

  The Secretary of Defense shall enter into an agreement with the 
Director of Central Intelligence to transfer from the Secretary of 
Defense the responsibilities and authorities of the Secretary for the 
clandestine collection of intelligence by human sources conducted by 
the Defense Human Intelligence Service as of the date of the enactment 
of this Act.

        Subtitle B--The National Intelligence Evaluation Council

SEC. 321. NATIONAL INTELLIGENCE EVALUATION COUNCIL.

  (a) Establishment.--There is within the Intelligence Community the 
National Intelligence Evaluation Council.
  (b) Members.--The National Intelligence Evaluation Council shall be 
composed of senior analysts within the Intelligence Community and may 
include substantive experts from the public and private sector. Members 
of the Council shall be appointed by, report to, and serve at the 
pleasure of, the Director of Central Intelligence. The Director of 
Central Intelligence shall appoint the head of the Council from among 
its members, who shall report directly to the Director of Central 
Intelligence.
  (c) Security Requirements.--The Director of Central Intelligence 
shall prescribe appropriate security requirements for personnel 
appointed from the private sector as a condition of service on the 
Council to ensure the protection of intelligence sources and methods 
while avoiding, wherever possible, unduly intrusive requirements which 
the Director considers to be unnecessary for this purpose.

SEC. 322. FUNCTIONS OF THE NATIONAL INTELLIGENCE EVALUATION COUNCIL.

  The National Intelligence Evaluation Council shall evaluate 
Intelligence Community-wide collection and production of intelligence, 
as well as the requirements and resources for such collection and 
production. Such evaluation shall be performed in consultation with 
both Deputy Directors of Central Intelligence and with the Director of 
Military Intelligence.

SEC. 323. STAFFING OF THE NATIONAL INTELLIGENCE EVALUATION COUNCIL.

  The Director of Central Intelligence shall make available to the 
National Intelligence Evaluation Council such staff as may be necessary 
to permit the Council to carry out its responsibilities under this 
subtitle and shall take appropriate measures to ensure that the Council 
and its staff satisfy the needs of policymaking officials and other 
consumers of intelligence.

             Subtitle C--Future of Intelligence Collection

SEC. 331. PANEL ON THE FUTURE OF INTELLIGENCE COLLECTION.

  (a) Study.--The Director of Central Intelligence and the Secretary of 
Defense shall arrange for a study to be conducted on the future of 
intelligence collection, in terms of managing collection resources in a 
more consolidated, synergistic 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.
          (4) Establishing a single agency for collection and 
        processing of imagery and geospatial information. This should 
        be examined as both a stand-alone agency and as a subset of the 
        agency described in paragraph (2). Specifically, the study 
        should evaluate the substantive advantages and disadvantages of 
        consolidating imagery collection into an overall collection 
        agency.
  (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 (4) 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 (4) 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) Panel Members.--
          (1) Selection.--The Director of Central Intelligence and the 
        Secretary of Defense, jointly, shall select individuals for 
        membership on a panel to conduct the study under subsection (a) 
        who are--
                  (A) current and former members of the Intelligence 
                Community and senior policy makers who are 
                knowledgeable about a diverse range of intelligence 
                requirements; and
                  (B) such other public or private individuals as the 
                Director and the Secretary deem appropriate.
          (2) Balance.--Membership on the panel shall be balanced in 
        terms of technical and operational knowledge and views so as to 
        ensure the objectivity of the panel's report.
          (3) Director.--The Director of Central Intelligence shall 
        appoint a director of the panel from among its members. The 
        director of the panel may create such sub-panels as the 
        director deems appropriate.
  (d) Report.--No later than April 15, 1997, the panel shall submit a 
report of the study to the Director of Central Intelligence, who shall 
forward the report to the President, the Secretary of Defense, and to 
the congressional intelligence committees.

TITLE IV--DEPARTMENT OF DEFENSE FUNCTIONS IN THE INTELLIGENCE COMMUNITY

                    Subtitle A--Secretary of Defense

SEC. 401. OVERALL SECRETARY OF DEFENSE FUNCTIONS.

  The Secretary of Defense shall perform such intelligence functions as 
may be directed by the President by Executive order or otherwise.

SEC. 402. REQUIREMENT THAT BUDGETS FOR INTELLIGENCE COMPONENTS BE 
                    ADEQUATE.

  The Secretary of Defense shall ensure that the budgets of the 
elements of the Intelligence Community within the Department of Defense 
for any fiscal year are adequate to satisfy the overall intelligence 
needs of the Department of Defense, including--
          (1) the needs of the chairman of the Joint Chiefs of Staff;
          (2) the needs of the commanders of the unified and specified 
        commands; and
          (3) the needs of other departments and agencies, as 
        appropriate.

SEC. 403. IMPLEMENTATION OF DIRECTOR OF CENTRAL INTELLIGENCE POLICIES 
                    AND RESOURCE DECISIONS.

  The Secretary of Defense shall ensure appropriate implementation of 
the policies and resource decisions of the Director of Central 
Intelligence by elements of the Department of Defense within the 
National Foreign Intelligence Program.

SEC. 404. RELATIONSHIP OF NFIP ACTIVITIES TO TACTICAL INTELLIGENCE 
                    ACTIVITIES.

  The Secretary of Defense shall ensure that the tactical intelligence 
activities of the Department of Defense complement, and are compatible 
with, intelligence activities under the National Foreign Intelligence 
Program. The Secretary shall carry out this section through the 
Director of Military Intelligence.

SEC. 405. RESPONSIVENESS TO OPERATIONAL MILITARY FORCES.

  The Secretary of Defense shall ensure that the elements of the 
Intelligence Community within the Department of Defense are responsive 
and timely with respect to satisfying the needs of operational military 
forces.

SEC. 406. ELIMINATION OF WASTE AND UNNECESSARY DUPLICATION.

  The Secretary of Defense shall eliminate waste and unnecessary 
duplication among the intelligence activities of the Department of 
Defense.

SEC. 407. JOINT AND CORPORATE CONDUCT OF DEFENSE INTELLIGENCE 
                    ACTIVITIES.

  The Secretary of Defense shall ensure that, when appropriate, 
intelligence activities of the Department of Defense are conducted (1) 
jointly, and (2) cooperatively with elements of the Intelligence 
Community outside the Department of Defense.

SEC. 408. SIGNALS INTELLIGENCE ACTIVITIES.

  The Secretary of Defense shall ensure through the National Security 
Agency (except as otherwise directed by the President or the National 
Security Council), the continued operation of an effective unified 
organization for the conduct of signals intelligence activities and 
shall ensure that the product is disseminated in a timely manner to 
authorized recipients.

SEC. 409. IMAGERY COLLECTION, PROCESSING, AND EXPLOITATION.

  The Secretary of Defense shall ensure through the Central Imagery 
Office (except as otherwise directed by the President or the National 
Security Council), with appropriate representation from the 
Intelligence Community, the continued operation of an effective unified 
organization within the Department of Defense for carrying out tasking 
of imagery collection, for the coordination of imagery processing and 
exploitation activities, and for ensuring the dissemination of imagery 
in a timely manner to authorized recipients.

SEC. 410. OVERHEAD RECONNAISSANCE SYSTEMS.

  The Secretary of Defense shall ensure through the National 
Reconnaissance Office (except as otherwise directed by the President or 
the National Security Council), the continued operation of an effective 
unified organization for the research and development, acquisition, and 
operation of overhead reconnaissance systems necessary to satisfy the 
requirements of all elements of the Intelligence Community.

SEC. 411. USE OF ELEMENTS OF DEPARTMENT OF DEFENSE.

  The Secretary of Defense, in carrying out the functions of the 
Secretary under this Act, may use such elements of the Department of 
Defense as may be appropriate for the execution of those functions, in 
addition to, or in lieu of, the elements specifically identified in 
this Act for the performance of those functions.

SEC. 412. CONSULTATIONS REGARDING APPOINTMENT OF CERTAIN INTELLIGENCE 
                    OFFICIALS.

  (a) In General.--Section 201 of title 10, United States Code, is 
amended to read as follows:

``Sec. 201. Consultation regarding appointment of heads of certain 
                    intelligence components

  ``(a) Consultations With Regard to Directors of NSA and NRO.--Before 
submitting a recommendation to the President regarding the appointment 
of an individual to the position of Director of the National Security 
Agency or Director of the National Reconnaissance Office, the Secretary 
of Defense shall consult with the Director of Central Intelligence 
regarding the recommendation.
  ``(b) Appointment of Head of Central Imagery Office.--The Secretary 
shall appoint, upon the recommendation of the Director of Central 
Intelligence, the head of the Central Imagery Office within the 
Department of Defense.''.
  (b) Clerical Amendment.--The item relating to section 201 in the 
table of sections at the beginning of subchapter II of chapter 8 of 
such title is amended to read as follows:

``201. Consultation regarding appointment of heads of certain 
intelligence components.''.

             Subtitle B--Director of Military Intelligence

SEC. 421. DIRECTOR OF MILITARY INTELLIGENCE.

  (a) Establishment of Position.--There is a Director of Military 
Intelligence, appointed by the President, by and with the advice and 
consent of the Senate, from the officers of the regular components of 
the Armed Forces on active duty. The Director, while so serving, holds 
the grade of lieutenant general or vice admiral.
  (b) Nomination.--A recommendation by the Secretary of Defense to the 
President for appointment of an officer as Director of Military 
Intelligence may be made only after consultation with the Director of 
Central Intelligence.

SEC. 422. FUNCTIONS OF THE DIRECTOR OF MILITARY INTELLIGENCE.

  (a) Senior Military Intelligence Adviser.--The Director of Military 
Intelligence is the senior military intelligence adviser to the 
Secretary of Defense.
  (b) Director of DIA.--The Director of Military Intelligence is the 
Director of the Defense Intelligence Agency.
  (c) Program Manager for JMIP.--The Director of Military Intelligence 
is the program manager for the Joint Military Intelligence Program (or 
any successor program).
  (d) Program Coordinator for TIARA.--The Director of Military 
Intelligence is the program coordinator for the activities in the 
Department of Defense known as Tactical Intelligence and Related 
Activities (TIARA).

SEC. 423. ROLE OF DIRECTOR OF MILITARY INTELLIGENCE IN THE INTELLIGENCE 
                    COMMUNITY.

  (a) National Intelligence.--The Director of Military Intelligence, as 
director of the Defense Intelligence Agency, is accountable to the 
Director of Central Intelligence in matters relative to the collection 
and prosecution of national intelligence.
  (b) Intelligence Requirements of the Secretary of Defense and the 
Joint Chiefs of Staff.--The Director of Military Intelligence shall be 
responsible for ensuring that the intelligence requirements of the 
Secretary of Defense and the Joint Chiefs of Staff are met.

SEC. 424. PLANNING AND BUDGET FUNCTIONS.

  (a) JMIP Responsibility.--The Director of Military Intelligence is 
responsible within the Department of Defense for development and 
submission of the Joint Military Intelligence Program for any fiscal 
year.
  (b) TIARA Responsibility.--The Director is responsible within the 
Department of Defense for coordination of the development and 
submission of the budget for any fiscal year for programs, projects, 
and activities included within Tactical Intelligence and Related 
Activities.
  (c) Overall Budget Coordination.--The Director is the central point 
of contact in the Department of Defense for budget coordination with 
the Deputy Director of Central Intelligence for Community Management 
relating to the development and submission of the National Foreign 
Intelligence Program for any fiscal year.

SEC. 425. STAFF.

  The Director of Military Intelligence shall have a staff sufficient 
to enable the Director to carry out the functions of the Director, 
including responsibilities with respect to budget development, 
planning, programming, and coordination. The Director shall ensure that 
the staff acts in a coordinated and corporate way with the Community 
Management Staff and the Infrastructure Support Office.

                Subtitle C--Defense Intelligence Agency

SEC. 441. DEFENSE INTELLIGENCE AGENCY GENERALLY.

  (a) In General.--There is within the Department of Defense a Defense 
Agency designated as the Defense Intelligence Agency. The Director of 
Military Intelligence is the head of the Defense Intelligence Agency.
  (b) Supervision.--The Director of Military Intelligence shall carry 
out the Director's responsibilities as head of the Defense Intelligence 
Agency under the direction of the Secretary of Defense and subject to 
the authority and guidance of the Director of Central Intelligence for 
those activities that support national intelligence requirements.

SEC. 442. FUNCTIONS OF THE DEFENSE INTELLIGENCE AGENCY.

  (a) Production.--The Director of Military Intelligence, in the 
Director's capacity as head of the Defense Intelligence Agency, shall 
produce timely, objective military and military-related intelligence, 
independent of political considerations or bias and based upon all 
sources available to the Intelligence Community.
  (b) Dissemination of Intelligence.--The Director shall ensure the 
appropriate dissemination of intelligence produced pursuant to 
subsection (a) to authorized recipients.
  (c) Management of Joint Intelligence Center.--The Director shall 
manage the Joint Intelligence Center as provided by section 923 of 
Public Law 102-190 (10 U.S.C. 201 note; 105 Stat. 1453).
  (d) Coordination.--The Director shall coordinate the exercise 
pursuant to section 924 of Public Law 102-190 (10 U.S.C. 113 note; 105 
Stat. 1454) of national intelligence collections systems and 
exploitation organizations that would be used to provide intelligence 
support, including support of the combatant commands, during a crisis 
or conflict.
  (e) Defense Attache System.--The Director shall manage the Defense 
Attache system.
  (f) Additional Functions.--The Director shall perform such additional 
services of common concern to the intelligence elements of the 
Department of Defense as the Secretary of Defense determines can be 
more efficiently accomplished centrally.

                  Subtitle D--The Military Departments

SEC. 451. INTELLIGENCE CAPABILITIES OF THE MILITARY DEPARTMENTS.

  (a) Requirement for Maintenance of Capabilities.--Under the direction 
of the Secretary of Defense, the Secretaries of the military 
departments shall maintain sufficient capabilities to collect and 
produce intelligence to meet--
          (1) the requirements of the Director of Central Intelligence;
          (2) the requirements of the Secretary of Defense or the 
        Chairman of the Joint Chiefs of Staff; and
          (3) the specialized requirements of the military departments 
        for intelligence necessary to support--
                  (A) tactical commanders;
                  (B) military planners;
                  (C) the research and development process;
                  (D) the acquisition of military equipment; and
                  (E) training and doctrine.
  (b) Level and Form of Capabilities To Be Maintained.--The Secretaries 
of the military departments shall ensure that the capabilities 
maintained pursuant to subsection (a) do not exceed that which is 
necessary to satisfy the requirements of their respective departments. 
To the extent feasible, the Secretaries shall provide for such 
capabilities to be maintained jointly and in the most efficient and 
cost-effective form.

                   Subtitle E--Planning and Budgeting

SEC. 461. JOINT MILITARY INTELLIGENCE PROGRAM.

  (a) In General.--The Joint Military Intelligence Program consists of 
those programs, projects, and activities of the Department of Defense 
that are intended to provide intelligence, surveillance, and 
reconnaissance capabilities that support multiple defense-wide or joint 
theater-level consumers.
  (b) Components.--The Joint Military Intelligence Program includes the 
programs, projects, and activities that as of the date of the enactment 
of this Act are designated as follows:
          (1) The Defense Imagery Program.
          (2) The Defense Cryptologic Program.
          (3) The Defense Mapping, Charting, and Geodesy Program.
          (4) The Defense General Intelligence Applications Program, 
        including--
                  (A) the Defense Airborne Reconnaissance Program;
                  (B) the Defense Space Reconnaissance Program;
                  (C) the Defense Intelligence Counterdrug Program;
                  (D) the Defense Intelligence Tactical Program; and
                  (E) the Defense Intelligence Special Technologies 
                Program.
  (c) Additional Components.--The Joint Military Intelligence Program 
includes such additional programs, projects, and activities as are 
specified by law or are designated by the Secretary of Defense.

SEC. 462. TACTICAL INTELLIGENCE AND RELATED ACTIVITIES (TIARA).

  (a) In General.--The set of programs, projects, and activities in the 
Department of Defense referred to as Tactical Intelligence and Related 
Activities are those programs, projects, and activities of the 
Department of Defense that--
          (1) provide intelligence, surveillance, and reconnaissance 
        capabilities that are unique to one of the military services; 
        and
          (2) are part of a force structure organic to one of the 
        military services at the component level and below.
  (b) Included Personnel Activities.--Those activities include 
activities that train personnel for intelligence duties or provide an 
intelligence reserve.
  (c) Certain Weapons Targeting Programs Excluded.--Those activities do 
not include programs that are so closely integrated with a weapons 
system that their primary function is to provide immediate-use 
targeting data.

SEC. 463. NOTICE TO CONGRESS OF CHANGES IN JMIP AND TIARA.

  The Secretary of Defense may not add to or remove program elements 
from (other than a change provided by law) the Joint Military 
Intelligence Program or the Tactical Intelligence and Related 
Activities aggregation for any fiscal year unless the Secretary 
included notice of the proposed change with the budget justification 
materials submitted to the congressional intelligence committees for 
the preceding fiscal year. The Secretary shall include with any such 
notice a statement providing an explanation and justification for the 
proposed change.

           Subtitle F--Civilian Intelligence Personnel Policy

SEC. 481. STANDARDIZATION OF PERSONNEL POLICIES FOR INTELLIGENCE 
                    COMPONENTS OF DEPARTMENT OF DEFENSE

  (a) Consolidation and Standardization.--Chapter 83 of title 10, 
United States Code, is amended--
          (1) by redesignating section 1602 as section 1607 and 
        transferring that section so as to appear after section 1606; 
        and
          (2) by striking out sections 1601, 1603, and 1604 and 
        inserting in lieu thereof the following:

``Sec. 1601. Management of civilian intelligence personnel

  ``(a) General Personnel Authority.--The Secretary of Defense may, 
without regard to the provisions of any other law relating to the 
appointment, number, classification, or compensation of employees--
          ``(1) establish such excepted service positions, including 
        positions in the Intelligence Senior Executive Service and 
        positions that may be designated as Intelligence Senior Level 
        positions under section 1602(c) of this title, for civilian 
        intelligence officers and employees of the intelligence 
        components of the Department of Defense as may be necessary to 
        carry out the intelligence functions of such components;
          ``(2) appoint individuals to such positions with appropriate 
        consideration of veterans' preference; and
          ``(3) fix the compensation of such individuals for service in 
        such 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 this 
section 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, a civilian intelligence employee of an 
intelligence component of the Department of Defense, including an 
Intelligence Senior Level employee or a member of the Intelligence 
Senior Executive Service, may not be paid basic pay in excess of the 
maximum rate payable under section 5306(e), section 5376, or section 
5382 of title 5, respectively.
  ``(2) The Secretary of Defense may provide civilian employees of the 
intelligence components of the Department of Defense compensation (in 
addition to basic pay) including benefits, incentives, and allowances 
consistent with, and not in excess of the level authorized for, 
comparable positions authorized by title 5.
  ``(c) Prevailing Rate 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 for civilian employees in or under which 
the Department may employ individuals described by section 
5342(a)(2)(A) of such title.
  ``(d) Allowances Based on Living Costs and Environment.--(1) In 
addition to the basic pay payable under subsection (b), civilian 
intelligence officers and employees of the intelligence components of 
the Department of Defense who are citizens or nationals of the United 
States and are stationed outside the continental United States or in 
Alaska may be paid allowances, in accordance with regulations 
prescribed by the Secretary of Defense, at a rate not in excess of the 
allowance authorized to be paid by section 5941(a) of title 5 for 
employees whose rates of basic pay are fixed by statute.
  ``(2) Such allowances shall be based on--
          ``(A) living costs substantially higher than in the District 
        of Columbia;
          ``(B) conditions of environment which differ substantially 
        from conditions of environment in the continental United States 
        and warrant an allowance as a recruitment incentive; or
          ``(C) both of the factors specified in subparagraphs (A) and 
        (B).

``Sec. 1602. Intelligence Senior Executive Service

  ``(a) Intelligence Senior Executive Service.--With regard to any 
positions equivalent to the Senior Executive Service which may be 
established pursuant to section 1601 of this title, the Secretary of 
Defense shall prescribe regulations which are consistent with the 
requirements set forth in sections 3131, 3132(a)(2), 3396(c), 3592, 
3595(a), 5384, and 6304 of title 5 and subsections (a), (b), and (c) of 
section 7543 of title 5 (except that any hearing or appeal shall be 
held or decided pursuant to regulations issued by the Secretary). To 
the extent practicable, the Secretary shall also prescribe regulations 
to implement such other provisions of title 5 as apply to members of 
the Senior Executive Service or to individuals applying for positions 
in the Senior Executive Service.
  ``(b) Award of Rank to Members of the Intelligence Senior Executive 
Service.--The President, based on the recommendations of the Secretary 
of Defense, may award a rank referred to in section 4507 of title 5 to 
members of the Intelligence Senior Executive Service whose positions 
may be established pursuant to this section. The awarding of such rank 
shall be made in a manner consistent with the provisions of that 
section.
  ``(c) Intelligence Senior Level Positions.--In carrying out section 
1601(a) of this title, the Secretary of Defense may designate positions 
as Intelligence Senior Level positions. Positions which may be so 
designated are those which require functional expertise and advisory 
capacity, but do not have the organizational or program management 
functions necessary for inclusion in the Intelligence Senior Executive 
Service. Before designating any such position, the Secretary shall 
prescribe regulations to implement this subsection.

``Sec. 1603. Administrative provisions

  ``(a) Time Limited Appointments.--(1) The Secretary of Defense may by 
regulation authorize the use of time-limited appointments when hiring 
and appointing an employee to certain prescribed positions within an 
intelligence component of the Department of Defense. An employee who 
has a time-limited appointment is not eligible for conversion to a 
permanent Intelligence Senior Executive Service position without 
competition.
  ``(2) In this subsection, the term `time-limited appointment' means 
an appointment to a position within an intelligence component of the 
Department of Defense for a period not to exceed five years.
  ``(b) Termination of Civilian Intelligence Employees.--(1) 
Notwithstanding any other provision of law, the Secretary of Defense 
may terminate the employment of any civilian intelligence officer or 
employee of an intelligence component of the Department of Defense if 
the Secretary--
          ``(A) considers that 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 officer or employee cannot be invoked in a 
        manner consistent with national security.
  ``(2) A decision by the Secretary 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 officer or employ under the 
authority of this section.
  ``(4) Any termination of employment under this subsection does not 
affect the right of the officer or employee involved to seek or accept 
employment with any other department or agency of the United States if 
that officer or 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 or (with 
respect to officers and employees under their respective jurisdictions) 
the heads of the intelligence components of the Department of Defense. 
An action to terminate employment of any civilian intelligence officer 
or employee of the Department by any such officer may be appealed to 
the Secretary of Defense.
  ``(c) Adjustment in Force.--(1) Notwithstanding sections 3501(b) and 
3502 of title 5 and subject to paragraph (2), the Secretary of Defense 
may prescribe regulations for the separation of civilian employees of 
the intelligence components of the Department of Defense including 
members of the Intelligence Senior Executive Service and employees 
assigned to Intelligence Senior Level positions, in an adjustment in 
force which give effect to--
          ``(A) performance;
          ``(B) tenure of employment;
          ``(C) length of service as computed under section 3502(a) 
        (A), (B), and (C) of title 5; and
          ``(D) veterans' preference, subject to sections 3501(a)(3) 
        and 3502(b) of title 5.
  ``(2) An adjustment in force in the Intelligence Senior Executive 
Service shall be consistent with section 3595(a) of title 5.
  ``(3) The regulations prescribed under paragraph (1) shall include 
provisions for appeal rights within the Department in lieu of the 
provisions of any other law or regulations for all employees affected 
by actions under this subsection.
  ``(d) Notification of Congress.--The Secretary of Defense shall 
notify Congress of any regulations prescribed to carry out this section 
or section 1601 or 1602 of this title. Such notice shall be provided by 
submitting a copy of the regulations to the Permanent Select Committee 
on Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate at least 60 days before such 
regulations take effect.

``Sec. 1604. Intelligence components of the Department of Defense 
                    defined

  ``In this chapter, the term `intelligence component of the Department 
of Defense' means any of the following:
          ``(1) The National Security Agency.
          ``(2) The Defense Intelligence Agency.
          ``(3) The Central Imagery Office.
          ``(4) The National Reconnaissance Office.
          ``(5) The intelligence components of the military 
        departments.
          ``(6) Any other intelligence component of the Department of 
        Defense so designated by the Secretary of Defense.
          ``(7) Any successor to any such agency or office.''.
  (b) Repeal of Superseded Provisions.--The following provisions of law 
are repealed:
          (1) Section 1590 of title 10, United States Code.
          (2) Section 303 of the Internal Security Act of 1950 (50 
        U.S.C. 833).
  (c) Clerical Amendments.--(1)(A) The heading of chapter 83 of title 
10, United States Code, is amended to read as follows:

        ``CHAPTER 83--DEFENSE INTELLIGENCE CIVILIAN PERSONNEL''.

  (B) The items relating to such chapter in the tables of chapters at 
the beginning of subtitle A, and at the beginning of part II of 
subtitle A, of such title are amended by striking out ``Agency and 
Central Imagery Office''.
  (2) The table of sections at the beginning of chapter 81 of such 
title is amended by striking out the item relating to section 1590.
  (3) The table of sections at the beginning of chapter 83 of such 
title is amended--
          (A) by striking out the items relating to sections 1601, 
        1602, 1603, and 1604 and inserting in lieu thereof the 
        following:

``1601. Management of civilian intelligence personnel.
``1602. Intelligence Senior Executive Service.
``1603. Administrative provisions.
``1604. Intelligence components of the Department of Defense 
defined.''; and

          (B) by inserting after the item relating to section 1606 the 
        following new item:

``1607. Merit pay system: Defense Intelligence Agency and Central 
Imagery Office.''.

  (3) The heading of section 1607, as transferred and redesignated by 
subsection (a), is amended to read as follows:

``Sec. 1607. Merit pay system: Defense Intelligence Agency and Central 
                    Imagery Office''.

SEC. 482. TEMPORARY PROGRAM FOR CIVILIAN WORKFORCE REDUCTION IN THE 
                    NATIONAL SECURITY AGENCY.

  (a) Voluntary Early Retirement Program.--The Secretary of Defense may 
authorize the Director of the National Security Agency to permit 
eligible employees to retire early from service voluntarily by 
obtaining a lump-sum payment representing the present value of the 2 
percent per annum early retirement penalty provided in section 8339(h) 
of title 5, United States Code.
  (b) Conditions for Payment.--Under the program, the payment may be 
offered only--
          (1) with the prior consent, or on the authority, of the 
        Secretary of Defense;
          (2) to employees of the National Security Agency;
          (3) to employees within such occupational groups or 
        geographic locations, or subject to such other similar 
        limitations or conditions as the Director of the National 
        Security Agency may require; and
          (4) for a period not to exceed 90 consecutive days during the 
        period from October 1, 1996, to September 30, 1997.
  (c) Terms of Payment.--Such payment shall--
          (1) be paid in a lump sum;
          (2) be equal to the present value of the total reduction in 
        the annuity pursuant to section 8339(h) of title 5, United 
        States Code, as calculated using appropriate present value 
        factors supplied by the Director of the Office of Personnel 
        Management;
          (3) not be a basis for payment, and not be included in the 
        computation, of any other type of Government benefit;
          (4) not be provided to employees who elect to receive 
        separation pay under section 5597 of title 5, United States 
        Code; and
          (5) be subject to the availability of appropriations pursuant 
        to subsection (e).
  (d) Repayment Upon Reemployment by the United States.--(1) An 
individual who has received a payment under this section and 
subsequently accepts employment with the United States shall be 
required to repay, before the individual's first day of employment, the 
entire amount of the lump-sum payment to the National Security Agency.
  (2) For the purpose of this section, the term ``employment'' 
includes--
          (A) employment of any length or under any type of 
        appointment, but does not include employment that is without 
        compensation; and
          (B) employment under a personal services contract, as defined 
        in the Federal Procurement Regulations.
  (e) Source of Payment.--(1) A lump-sum payment under this section may 
be paid by the Director of the National Security Agency only out of 
appropriations available to the National Security Agency for salaries 
and expenses.
  (2) Funds authorized to be appropriated for operation and maintenance 
for the National Security Agency in the Intelligence Authorization Act 
for Fiscal Year 1997 are authorized to be made available for lump sum 
payments under this section.
  (f) Definition.--For purposes of this section, the term ``employee'' 
means an individual who on the date of the enactment of this Act is an 
employee of the National Security Agency, serving under an appointment 
without time limitation, who has been employed as of that date for a 
period of at least 60 months, and 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. Such term does not include--
          (1) a reemployed annuitant under subchapter III of chapter 83 
        of such title; or
          (2) an employee having a disability on the basis of which 
        such employee is or would be eligible for disability retirement 
        under chapter 83 of such title.

  TITLE V--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

SEC. 501. RECODIFICATION OF LAWS RELATING TO NATIONAL SECURITY COUNCIL 
                    AND RELATED BOARDS AND COMMITTEES IN EXECUTIVE 
                    OFFICE OF THE PRESIDENT.

  Title I of the National Security Act of 1947 is amended by striking 
out the title heading and sections 101 through 107 and inserting in 
lieu thereof the following:

 ``TITLE I--NATIONAL SECURITY COUNCIL AND RELATED BOARDS AND COMMITTEES

``SEC. 101. NATIONAL SECURITY COUNCIL.

  ``(a) In General.--There is in the Executive Office of the President 
the National Security Council. The Council is composed of the 
following:
          ``(1) The President.
          ``(2) The Vice President.
          ``(3) The Secretary of State.
          ``(4) The Secretary of Defense.
  ``(b) Additional Participants.--Subject to the direction of the 
President, the following officers may attend and participate in 
meetings of the National Security Council:
          ``(1) Director of central intelligence.--The Director of 
        Central Intelligence (or, in the Director's absence, a Deputy 
        Director of Central Intelligence), in the performance of the 
        Director's duties under this Act and the Intelligence Community 
        Act.
          ``(2) Chairman of the joint chiefs of staff.--The Chairman 
        (or, in the Chairman's absence, the Vice Chairman) of the Joint 
        Chiefs of Staff, in the Chairman's role as principal military 
        adviser to the National Security Council.
          ``(3) Director of national drug control policy.--The Director 
        of National Drug Control Policy, in the Director's role as 
        principal adviser to the National Security Council on national 
        drug control policy, but only through the date specified in 
        section 1009 of the National Narcotics Leadership Act of 1988 
        (21 U.S.C. 1506).
          ``(4) Others designated by the president.--Such additional 
        officers as may be designated by the President.
  ``(c) Functions.--The function of the Council shall be to advise the 
President with respect to the integration of domestic, foreign, and 
military policies relating to the national security so as to enable the 
military services and the other departments and agencies of the 
Government to cooperate more effectively in matters involving the 
national security. In addition to performing such other functions as 
the President may direct, the Council (subject to the direction of the 
President) shall, for the purpose of more effectively coordinating the 
policies and functions of the departments and agencies of the 
Government relating to the national security--
          ``(1) assess and appraise the objectives, commitments, and 
        risks of the United States in relation to our actual and 
        potential military power, in the interest of national security, 
        for the purpose of making recommendations to the President in 
        connection therewith; and
          ``(2) consider policies on matters of common interest to the 
        departments and agencies of the Government concerned with the 
        national security and make recommendations to the President in 
        connection therewith.
  ``(d) Recommendations and Reports.--The Council shall, from time to 
time, make such recommendations and such other reports to the President 
as it considers appropriate or as the President may require.
  ``(e) Staff.--The Council shall have a staff to be headed by a 
civilian executive secretary who shall be appointed by the President. 
The executive secretary, subject to the direction of the Council, may 
subject to the civil-service laws, appoint and fix the compensation of 
such personnel as may be necessary to perform such duties as may be 
prescribed by the Council in connection with the performance of its 
functions.

``SEC. 104. BOARD FOR LOW INTENSITY CONFLICT.

  ``(a) Establishment of Board.--The President shall establish within 
the National Security Council a board to be known as the `Board for Low 
Intensity Conflict'.
  ``(b) Function.--The principal function of the board shall be to 
coordinate the policies of the United States for low intensity 
conflict.

``SEC. 105. NATIONAL COUNTERINTELLIGENCE POLICY BOARD.

  ``(a) Establishment of Board.--There is within the executive branch 
of the Government a National Counterintelligence Policy Board. The 
Board shall report to the President through the National Security 
Council.
  ``(b) Function of the Board.--The Board shall serve as the principal 
mechanism for--
          ``(1) developing policies and procedures for the approval of 
        the President to govern the conduct of counterintelligence 
        activities; and
          ``(2) resolving conflicts, as directed by the President, 
        which may arise between elements of the Government which carry 
        out such activities.''.

SEC. 502. COMMITTEE ON FOREIGN INTELLIGENCE.

  Title I of the National Security Act of 1947, as amended by section 
501, is further amended by inserting after section 101 the following 
new section 102:

``SEC. 102. COMMITTEE ON FOREIGN INTELLIGENCE.

  ``(a) Establishment of Committee.--There is established within the 
National Security Council a Committee on Foreign Intelligence. The 
Committee shall be composed of the following:
          ``(1) The Assistant to the President for National Security 
        Affairs, who shall serve as chairman of the Committee.
          ``(2) The following officers or their respective deputies:
                  ``(A) The Director of Central Intelligence.
                  ``(B) The Secretary of State.
                  ``(C) The Secretary of Defense.
                  ``(D) The Attorney General.
                  ``(E) The Chairman of the Joint Chiefs of Staff.
          ``(3) Such other members as the President may designate.
  ``(b) Function.--The function of the Committee on Foreign 
Intelligence shall be--
          ``(1) to establish, consistent with the policy and objectives 
        of the President, the overall requirements and priorities for 
        the Intelligence Community; and
          ``(2) to assess regularly, on behalf of the President, how 
        effectively the Intelligence Community has performed its 
        responsibilities under this Act and the Intelligence Community 
        Act.
  ``(c) Semiannual Strategic Intelligence Review Process With 
Congress.--Not less often than every six months, the Committee on 
Foreign Intelligence shall convene a meeting with the members of the 
congressional intelligence committees to conduct a comprehensive, 
global strategic intelligence review. Each semiannual meeting shall 
review significant strategic intelligence trends, strategic 
intelligence reporting, and anticipated Intelligence Community 
requirements for the following six to twelve months.''.

SEC. 503. TRANSNATIONAL THREATS.

  Title I of the National Security Act of 1947, as amended by sections 
501 and 502, is further amended by inserting after section 102 the 
following new section 103:

``SEC. 103. COMMITTEE ON TRANSNATIONAL THREATS.

  ``(a) Establishment.--There is established within the National 
Security Council a Committee on Transnational Threats. The Committee 
shall be composed of the following:
          ``(1) The Assistant to the President for National Security 
        Affairs, who shall serve as chairman of the Committee.
          ``(2) The following officers or their respective deputies:
                  ``(A) The Director of Central Intelligence.
                  ``(B) The Secretary of State.
                  ``(C) The Secretary of Defense.
                  ``(D) The Attorney General.
          ``(3) Such other members as the President may designate.
  ``(b) Function.--The function of the Committee on Transnational 
Threats shall be to coordinate and direct the activities of the United 
States Government relating to combating transnational threats. In 
carrying out its function, the Committee shall--
          ``(1) identify transnational threats;
          ``(2) develop strategies to enable the United States 
        Government to respond to transnational threats identified under 
        paragraph (1);
          ``(3) monitor implementation of such strategies;
          ``(4) make recommendations as to appropriate responses to 
        specific transnational threats;
          ``(5) assist in the resolution of operational and policy 
        differences among Federal departments and agencies in their 
        responses to transnational threats;
          ``(6) 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
          ``(7) develop guidelines to enhance and improve the 
        coordination of Federal law enforcement activities overseas.
  ``(c) Definition of transnational threat.--For purposes of this 
section, the term `transnational threat' means the following:
          ``(1) 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.
          ``(2) Any individual or group that engages in an activity 
        referred to in paragraph (1).''.

    TITLE VI--TECHNICAL AND CONFORMING AMENDMENTS AND EFFECTIVE DATE

SEC. 601. RESTATEMENT OF NATIONAL SECURITY AGENCY ACT OF 1959.

  The National Security Agency Act of 1959 (50 U.S.C. 402 note) is 
amended to read as follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  ``(a) Short Title.--This Act may be cited as the `National Security 
Agency Act of 1959'.
  ``(b) Table of Contents.--The table of contents for this Act is as 
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. General personnel authorities.
``Sec. 3. Protection of identities of employees.
``Sec. 4. Authority to lease real property outside the United States.
``Sec. 5. Benefits for personnel assigned to special cryptologic 
activities outside the United States.
``Sec. 10. Language training for cryptologic personnel.
``Sec. 11. Protection of facilities by General Services Administration.
``Sec. 12. Senior Cryptologic Executive Service.
``Sec. 13. Grants for cryptologic research.
``Sec. 14. Availability of certain appropriations.
``Sec. 15. Protection of agency name from unauthorized use.
``Sec. 16. Recruitment of qualified personnel.
``Sec. 17. Authority to pay certain expenses for employees dying while 
on rotational tour of duty in the United States.

``SEC. 2. GENERAL PERSONNEL AUTHORITIES.

  ``(a) In General.--General personnel authorities of the Secretary of 
Defense with respect to the National Security Agency are provided in 
chapter 83 of title 10, United States Code.
  ``(b) Authority for Additional Compensation for Certain Employees.--
Officers and employees of the National Security Agency who are citizens 
or nationals of the United States may be granted additional 
compensation, in accordance with regulations which shall be prescribed 
by the Secretary of Defense, not in excess of additional compensation 
authorized by section 5941 of title 5, United States Code, for 
employees whose rates of basic compensation are fixed by statute.

``SEC. 3. PROTECTION OF IDENTITIES OF EMPLOYEES.

  ``Nothing in this Act or any other law shall be construed to require 
the disclosure of the organization or any function of the National 
Security Agency, of any information with respect to the activities 
thereof, or of the names, titles, salaries, or number of the persons 
employed by such agency.

``SEC. 4. AUTHORITY TO LEASE REAL PROPERTY OUTSIDE THE UNITED STATES.

  ``(a) Authority.--Notwithstanding section 322 of the Act of June 30, 
1932 (40 U.S.C. 278a), section 5536 of title 5, United States Code, and 
section 2675 of title 10, United States Code, the Director of the 
National Security Agency, on behalf of the Secretary of Defense, may 
lease real property outside the United States, for periods not 
exceeding ten years, for the use of the National Security Agency for 
special cryptologic activities and for housing for personnel assigned 
to such activities.
  ``(b) Limitation to Appropriated Funds.--The authority of the 
Director of the National Security Agency, on behalf of the Secretary of 
Defense, to make payments under subsection (a), and under contracts for 
leases entered into under subsection (a), is effective for any fiscal 
year only to the extent that appropriated funds are available for such 
purpose.

``SEC. 5. BENEFITS FOR PERSONNEL ASSIGNED TO SPECIAL CRYPTOLOGIC 
                    ACTIVITIES OUTSIDE THE UNITED STATES.

  ``(a) Authority To Provide Certain Benefits.--The Director of the 
National Security Agency, on behalf of the Secretary of Defense, may 
provide to certain civilian and military personnel of the Department of 
Defense who are assigned to special cryptologic activities outside the 
United States and who are designated by the Secretary of Defense for 
the purposes of this subsection the following:
          ``(1) Allowances and benefits--
                  ``(A) comparable to those provided by the Secretary 
                of State to members of the Foreign Service under 
                chapter 9 of title I of the Foreign Service Act of 1980 
                (22 U.S.C. 4081 et seq.) or any other provision of law; 
                and
                  ``(B) in the case of selected personnel serving in 
                circumstances similar to those in which personnel of 
                the Central Intelligence Agency serve, comparable to 
                those provided by the Director of Central Intelligence 
                to personnel of the Central Intelligence Agency.
          ``(2) Housing (including heat, light, and household 
        equipment) without cost to such personnel, if the Director of 
        the National Security Agency, on behalf of the Secretary of 
        Defense, determines that it would be in the public interest to 
        provide such housing.
          ``(3) Special retirement accrual in the same manner provided 
        in section 303 of the Central Intelligence Agency Retirement 
        Act (50 U.S.C. 2153) and in section 18 of the Central 
        Intelligence Agency Act of 1949.
  ``(b) Limitation to Appropriated Funds.--The authority of the 
Director of the National Security Agency, on behalf of the Secretary of 
Defense, to make payments under subsection (a) is effective for any 
fiscal year only to the extent that appropriated funds are available 
for such purpose.
  ``(c) Prohibition of Duplication of Benefits.--Members of the Armed 
Forces may not receive benefits under both subsection (a)(1) and under 
title 37, United States Code, for the same purpose. The Secretary of 
Defense shall prescribe such regulations as may be necessary to carry 
out this subsection.
  ``(d) Regulations.--Regulations prescribed under subsection (a)(1) 
shall be submitted to the Permanent Select Committee on Intelligence of 
the House of Representatives and the Select Committee on Intelligence 
of the Senate before such regulations take effect.

``SEC. 10. LANGUAGE TRAINING FOR CRYPTOLOGIC PERSONNEL.

  ``(a) Language Training Programs.--The Director of the National 
Security Agency shall arrange for, and shall prescribe regulations 
concerning, language and language-related training programs for 
military and civilian cryptologic personnel. In establishing programs 
under this section for language and language-related training, the 
Director--
          ``(1) may provide for the training and instruction to be 
        furnished, including functional and geographic area 
        specializations;
          ``(2) may arrange for training and instruction through other 
        Government agencies and, in any case in which appropriate 
        training or instruction is unavailable through Government 
        facilities, through nongovernmental facilities that furnish 
        training and instruction useful in the fields of language and 
        foreign affairs;
          ``(3) may support programs that furnish necessary language 
        and language-related skills, including, in any case in which 
        appropriate programs are unavailable at Government facilities, 
        support through contracts, grants, or cooperation with 
        nongovernmental educational institutions; and
          ``(4) may obtain by appointment or contract the services of 
        individuals to serve as language instructors, linguists, or 
        special language project personnel.
  ``(b) Foreign Language Proficiency Incentives.--(1) In order to 
maintain necessary capability in foreign language skills and related 
abilities needed by the National Security Agency, the Director, without 
regard to subchapter IV of chapter 55 of title 5, United States Code, 
may provide special monetary or other incentives to encourage civilian 
cryptologic personnel of the Agency to acquire or retain proficiency in 
foreign languages or special related abilities needed by the Agency.
  ``(2) In order to provide linguistic training and support for 
cryptologic personnel, the Director--
          ``(A) may pay all or part of the tuition and other expenses 
        related to the training of personnel who are assigned or 
        detailed for language and language-related training, 
        orientation, or instruction; and
          ``(B) may pay benefits and allowances to civilian personnel 
        in accordance with chapters 57 and 59 of title 5, United States 
        Code, and to military personnel in accordance with chapter 7 of 
        title 37, United States Code, and applicable provisions of 
        title 10, United States Code, when such personnel are assigned 
        to training at sites away from their designated duty station.
  ``(c) Cryptologic Linguist Reserve.--(1) To the extent not 
inconsistent, in the opinion of the Secretary of Defense, with the 
operation of military cryptologic reserve units and in order to 
maintain necessary capability in foreign language skills and related 
abilities needed by the National Security Agency, the Director may 
establish a Cryptologic Linguist Reserve.
  ``(2) The Cryptologic Linguist Reserve may consist of former or 
retired civilian or military cryptologic personnel of the National 
Security Agency and of other qualified individuals, as determined by 
the Director of the Agency. Each member of the Cryptologic Linguist 
Reserve shall agree that, during any period of emergency (as determined 
by the Director), the member shall return to active civilian status 
with the National Security Agency and shall perform such linguistic or 
linguistic-related duties as the Director may assign.
  ``(3) In order to attract individuals to become members of the 
Cryptologic Linguist Reserve, the Director, without regard to 
subchapter IV of chapter 55 of title 5, United States Code, may provide 
special monetary incentives to individuals eligible to become members 
of the reserve who agree to become members of the cryptologic linguist 
reserve and to acquire or retain proficiency in foreign languages or 
special related abilities.
  ``(4) In order to provide training and support for members of the 
Cryptologic Linguist Reserve, the Director--
          ``(A) may pay all or part of the tuition and other expenses 
        related to the training of individuals in the Cryptologic 
        Linguist Reserve who are assigned or detailed for language and 
        language-related training, orientation, or instruction; and
          ``(B) may pay benefits and allowances in accordance with 
        chapters 57 and 59 of title 5, United States Code, to 
        individuals in the Cryptologic Linguist Reserve who are 
        assigned to training at sites away from their homes or regular 
        places of business.
  ``(d) Service Agreements.--(1) The Director, before providing 
training under this section to any individual, may obtain an agreement 
with that individual that--
          ``(A) in the case of current employees, pertains to 
        continuation of service of the employee, and repayment of the 
        expenses of such training for failure to fulfill the agreement, 
        consistent with the provisions of section 4108 of title 5, 
        United States Code; and
          ``(B) in the case of individuals accepted for membership in 
        the Cryptologic Linguist Reserve, pertains to return to service 
        when requested, and repayment of the expenses of such training 
        for failure to fulfill the agreement, consistent with the 
        provisions of section 4108 of title 5, United States Code.
  ``(2) The Director, under regulations prescribed under this section, 
may waive, in whole or in part, a right of recovery under an agreement 
made under this subsection if it is shown that the recovery would be 
against equity and good conscience or against the public interest.
  ``(e) Language Training for Family Members.--(1) Subject to paragraph 
(2), the Director may provide to family members of military and 
civilian cryptologic personnel assigned to representational duties 
outside the United States, in anticipation of the assignment of such 
personnel outside the United States or while outside the United States, 
appropriate orientation and language training that is directly related 
to the assignment abroad.
  ``(2) Language training under paragraph (1) may not be provided to 
any individual through payment of the expenses of tuition or other cost 
of instruction at a non-Government educational institution unless 
appropriate instruction is not available at a Government facility.
  ``(f) Waiver Authority.--The Director may waive the applicability of 
any provision of chapter 41 of title 5, United States Code, to any 
provision of this section if he finds that such waiver is important to 
the performance of cryptologic functions.
  ``(g) Limitation to Appropriated Funds.--The authority of the 
Director to enter into contracts or to make grants under this section 
is effective for any fiscal year only to the extent that appropriated 
funds are available for such purpose.
  ``(h) Regulations.--Regulations prescribed under this section shall 
be submitted to the Permanent Select Committee on Intelligence of the 
House of Representatives and the Select Committee on Intelligence of 
the Senate before such regulations take effect.
  ``(i) Travel and Transportation Expenses in Connection With Training 
Outside the United States.--The Director of the National Security 
Agency, on behalf of the Secretary of Defense, may, without regard to 
section 4109(a)(2)(B) of title 5, United States Code, pay travel, 
transportation, storage, and subsistence expenses under chapter 57 of 
such title to civilian and military personnel of the Department of 
Defense who are assigned to duty outside the United States for a period 
of one year or longer which involves cryptologic training, language 
training, or related disciplines.

``SEC. 11. PROTECTION OF FACILITIES BY GENERAL SERVICES ADMINISTRATION.

  ``The Administrator of General Services, upon the application of the 
Director of the National Security Agency, may provide for the 
protection in accordance with section 3 of the Act of June 1, 1948 (40 
U.S.C. 318b), of certain facilities (as designated by the Director of 
such Agency) which are under the administration and control of, or are 
used by, the National Security Agency in the same manner as if such 
facilities were property of the United States over which the United 
States has acquired exclusive or concurrent criminal jurisdiction.

``SEC. 12. SENIOR CRYPTOLOGIC EXECUTIVE SERVICE.

  ``(a) Authority To Establish SCES.--(1) The Secretary of Defense (or 
his designee) may by regulation establish a personnel system for senior 
civilian cryptologic personnel in the National Security Agency to be 
known as the Senior Cryptologic Executive Service. The regulations 
establishing the Senior Cryptologic Executive Service shall do the 
following:
          ``(A) Meet the requirements set forth in section 3131 of 
        title 5, United States Code, for the Senior Executive Service.
          ``(B) Provide that positions in the Senior Cryptologic 
        Executive Service meet requirements that are consistent with 
        the provisions of section 3132(a)(2) of such title.
          ``(C) Provide, without regard to section 2, rates of pay for 
        the Senior Cryptologic Executive Service that are not in excess 
        of the maximum rate or less than the minimum rate of basic pay 
        established for the Senior Executive Service under section 5382 
        of such title, and that are adjusted at the same time and to 
        the same extent as rates of basic pay for the Senior Executive 
        Service are adjusted.
          ``(D) Provide a performance appraisal system for the Senior 
        Cryptologic Executive Service that conforms to the provisions 
        of subchapter II of chapter 43 of such title.
          ``(E) Provide for removal consistent with section 3592 of 
        such title, and removal or suspension consistent with 
        subsections (a), (b), and (c) of section 7543 of such title 
        (except that any hearing or appeal to which a member of the 
        Senior Cryptologic Executive Service is entitled shall be held 
        or decided pursuant to procedures established by regulations of 
        the Secretary of Defense).
          ``(F) Permit the payment of performance awards to members of 
        the Senior Cryptologic Executive Service consistent with the 
        provisions applicable to performance awards under section 5384 
        of such title.
          ``(G) Provide that members of the Senior Cryptologic 
        Executive Service may be granted sabbatical leaves consistent 
        with the provisions of section 3396(c) of such title.
          ``(H) Provide for the recertification of members of the 
        Senior Cryptologic Executive Service consistent with the 
        provisions of section 3393a of such title.
  ``(2) Except as otherwise provided in paragraph (1), the Secretary of 
Defense may--
          ``(A) make applicable to the Senior Cryptologic Executive 
        Service any of the provisions of title 5, United States Code, 
        applicable to applicants for or members of the Senior Executive 
        Service; and
          ``(B) appoint, promote, and assign individuals to positions 
        established within the Senior Cryptologic Executive Service 
        without regard to the provisions of title 5, United States 
        Code, governing appointments and other personnel actions in the 
        competitive service.
  ``(3) The President, based on the recommendations of the Secretary of 
Defense, may award ranks to members of the Senior Cryptologic Executive 
Service in a manner consistent with the provisions of section 4507 of 
title 5, United States Code.
  ``(4) Notwithstanding any other provision of this section, the 
Director of the National Security Agency may detail or assign any 
member of the Senior Cryptologic Executive Service to serve in a 
position outside the National Security Agency in which the member's 
expertise and experience may be of benefit to the National Security 
Agency or another Government agency. Any such member shall not by 
reason of such detail or assignment lose any entitlement or status 
associated with membership in the Senior Cryptologic Executive Service.
  ``(b) Merit Pay System.--The Secretary of Defense may by regulation 
establish a merit pay system for such employees of the National 
Security Agency as the Secretary of Defense considers appropriate. The 
merit pay system shall be designed to carry out purposes consistent 
with those set forth in section 5401(a) of title 5, United States Code.
  ``(c) Limitation on Total Compensation.--Nothing in this section 
shall be construed to allow the aggregate amount payable to a member of 
the Senior Cryptologic Executive Service under this section during any 
fiscal year to exceed the annual rate payable for positions at level I 
of the Executive Schedule in effect at the end of such year.

``SEC. 13. GRANTS FOR CRYPTOLOGIC RESEARCH.

  ``(a) Grant Authority.--The Director of the National Security Agency 
may make grants to private individuals and institutions for the conduct 
of cryptologic research. An application for a grant under this section 
may not be approved unless the Director determines that the award of 
the grant would be clearly consistent with the national security.
  ``(b) Applicable Law.--The grant program established by subsection 
(a) shall be conducted in accordance with the Federal Grant and 
Cooperative Agreement Act of 1977 (41 U.S.C. 501 et seq.) to the extent 
that such Act is consistent with and in accordance with section 6 of 
this Act.
  ``(c) Limitation to Appropriated Funds.--The authority of the 
Director to make grants under this section is effective for any fiscal 
year only to the extent that appropriated funds are available for such 
purpose.

``SEC. 14. AVAILABILITY OF CERTAIN APPROPRIATIONS.

  ``Funds appropriated to an entity of the Federal Government other 
than an element of the Department of Defense that have been 
specifically appropriated for the purchase of cryptologic equipment, 
materials, or services with respect to which the National Security 
Agency has been designated as the central source of procurement for the 
Government shall remain available for a period of three fiscal years.

``SEC. 15. PROTECTION OF AGENCY NAME FROM UNAUTHORIZED USE.

  ``(a) Prohibition on Unauthorized Use.--No person may, except with 
the written permission of the Director of the National Security Agency, 
knowingly use the words `National Security Agency', the initials `NSA', 
the seal of the National Security Agency, or any colorable imitation of 
such words, initials, or seal in connection with any merchandise, 
impersonation, solicitation, or commercial activity in a manner 
reasonably calculated to convey the impression that such use is 
approved, endorsed, or authorized by the National Security Agency.
  ``(b) Enforcement.--Whenever it appears to the Attorney General that 
any person is engaged or is about to engage in an act or practice which 
constitutes or will constitute conduct prohibited by subsection (a), 
the Attorney General may initiate a civil proceeding in a district 
court of the United States to enjoin such act or practice. Such court 
shall proceed as soon as practicable to the hearing and determination 
of such action and may, at any time before final determination, enter 
such restraining orders or prohibitions, or take such other action as 
is warranted, to prevent injury to the United States or to any person 
or class of persons for whose protection the action is brought.

``SEC. 16. RECRUITMENT OF QUALIFIED PERSONNEL.

  ``(a) Purpose.--The purpose of this section is to establish an 
undergraduate training program, which may lead to the baccalaureate 
degree, to facilitate the recruitment of individuals, particularly 
minority high school students, with a demonstrated capability to 
develop skills critical to the mission of the National Security Agency, 
including mathematics, computer science, engineering, and foreign 
languages.
  ``(b) Assignment of Civilian Employees.--The Secretary of Defense 
may, in the Secretary's discretion, assign civilian employees of the 
National Security Agency as students at accredited professional, 
technical, and other institutions of higher learning for training at 
the undergraduate level in skills critical to effective performance of 
the mission of the Agency.
  ``(c) Limitation to Appropriated Funds.--The National Security Agency 
may pay, directly or by reimbursement to employees, expenses incident 
to assignments under subsection (b), in any fiscal year only to the 
extent that appropriated funds are available for such purpose.
  ``(d) Employee Agreement.--(1) To be eligible for assignment under 
subsection (b), an employee of the Agency must agree in writing to the 
following:
          ``(A) To continue in the service of the Agency for the period 
        of the assignment and to complete the educational course of 
        training for which the employee is assigned.
          ``(B) To continue in the service of the Agency following 
        completion of the assignment for a period of one-and-a-half 
        years for each year of the assignment or part thereof.
          ``(C) To reimburse the United States for the total cost of 
        education (excluding the employee's pay and allowances) 
        provided under this section to the employee if, before the