H.R. 1655 (104th): Intelligence Authorization Act for Fiscal Year 1996

104th Congress, 1995–1996. Text as of Jul 19, 1995 (Reported by House Committee).

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HR 1655 RH

Union Calendar No. 99

104th CONGRESS

1st Session

H. R. 1655

[Report No. 104-138, Parts I and II]

To authorize appropriations for fiscal year 1996 for intelligence and intelligence-related activities of the United States Government, the Community Management Account, and the Central Intelligence Agency Retirement and Disability System, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

May 17, 1995

Mr. COMBEST introduced the following bill; which was referred to the Permanent Select Committee on Intelligence

June 14, 1995

Reported with an amendment and referred to the Committee on National Security for a period ending not later than June 23, 1995, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(k), rule X

[Strike out all after the enacting clause and insert the part printed in italic]

June 23, 1995

Referral to the Committee on National Security extended for a period ending not later than July 19, 1995

Referred to the Committee on Government Reform and Oversight for a period ending not later than July 19, 1995, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(g), rule X

July 19, 1995

Reported from the Committee on Government Reform and Oversight with an amendment

[Omit the part struck through in italic]

The Committee on National Security discharged; referred to the Committee of the Whole House on the State of the Union

[For text of introduced bill, see copy of bill as introduced on May 17, 1995]


A BILL

To authorize appropriations for fiscal year 1996 for intelligence and intelligence-related activities of the United States Government, the Community Management Account, and the Central Intelligence Agency Retirement and Disability System, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Intelligence Authorization Act for Fiscal Year 1996’.

TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1996 for the conduct of the intelligence and intelligence-related activities of the following elements of the United States Government:

      (1) The Central Intelligence Agency.

      (2) The Department of Defense.

      (3) The Defense Intelligence Agency.

      (4) The National Security Agency.

      (5) The Department of the Army, the Department of the Navy, and the Department of the Air Force.

      (6) The Department of State.

      (7) The Department of Treasury.

      (8) The Department of Energy.

      (9) The Federal Bureau of Investigation.

      (10) The Drug Enforcement Administration.

      (11) The National Reconnaissance Office.

      (12) The Central Imagery Office.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

    (a) SPECIFICATIONS OF AMOUNTS AND PERSONNEL CEILINGS- The amounts authorized to be appropriated under section 101, and the authorized personnel ceilings as of September 30, 1996, for the conduct of the intelligence and intelligence-related activities of the elements listed in such section, are those specified in the classified Schedule of Authorizations prepared to accompany the bill H.R. 1655 of the 104th Congress.

    (b) AVAILABILITY OF CLASSIFIED SCHEDULE OF AUTHORIZATIONS- The Schedule of Authorizations shall be made available to the Committees on Appropriations of the Senate and House of Representatives and to the President. The President shall provide for suitable distribution of the Schedule, or of appropriate portions of the Schedule, within the executive branch.

SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

    (a) AUTHORITY FOR ADJUSTMENTS- With the approval of the Director of the Office of Management and Budget, the Director of Central Intelligence may authorize employment of civilian personnel in excess of the number authorized for fiscal year 1996 under section 102 when the Director of Central Intelligence determines that such action is necessary to the performance of important intelligence functions, except that the number of personnel employed in excess of the number authorized under such section may not, for any element of the intelligence community, exceed two percent of the number of civilian personnel authorized under such section for such element.

    (b) NOTICE TO INTELLIGENCE COMMITTEES- The Director of Central Intelligence shall promptly notify the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate whenever he exercises the authority granted by this section.

SEC. 104. COMMUNITY MANAGEMENT ACCOUNT.

    (a) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated for the Community Management Account of the Director of Central Intelligence for fiscal year 1996 the sum of $80,713,000. Within such amounts authorized, funds identified in the classified Schedule of Authorizations referred to in section 102(a) for the Advanced Research and Development Committee and the Environmental Task Force shall remain available until September 30, 1997.

    (b) AUTHORIZED PERSONNEL LEVELS- The Community Management Staff of the Director of Central Intelligence is authorized 247 full-time personnel as of September 30, 1996. Such personnel of the Community Management Staff may be permanent employees of the Community Management Staff or personnel detailed from other elements of the United States Government.

    (c) REIMBURSEMENT- During fiscal year 1996, any officer or employee of the United States or a member of the Armed Forces who is detailed to the Community Management Staff from another element of the United States Government shall be detailed on a reimbursable basis, except that any such officer, employee or member may be detailed on a nonreimbursable basis for a period of less than one year for the performance of temporary functions as required by the Director of Central Intelligence.

TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for the Central Intelligence Agency Retirement and Disability Fund for fiscal year 1996 the sum of $213,900,000.

TITLE III--GENERAL PROVISIONS

SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY LAW.

    Appropriations authorized by this Act for salary, pay, retirement, and other benefits for Federal employees may be increased by such additional or supplemental amounts as may be necessary for increases in such compensation or benefits authorized by law.

SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

    The authorization of appropriations by this Act shall not be deemed to constitute authority for the conduct of any intelligence activity which is not otherwise authorized by the Constitution or the laws of the United States.

SEC. 303. APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES.

    (a) GENERAL PROVISIONS- The National Security Act of 1947 (50 U.S.C. 401 et seq.), is amended by adding at the end thereof the following new title:

‘TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES

‘STAY OF SANCTIONS

    ‘SEC. 901. Notwithstanding any other provision of law, the President may stay the imposition of an economic, cultural, diplomatic, or other sanction or related action by the United States Government concerning a foreign country, organization, or person when the President determines that to proceed without delay would seriously risk the compromise of an ongoing criminal investigation or an intelligence source or method. The President shall lift any such stay when the President determines that such stay is no longer necessary to that purpose.

‘REPORTS

    ‘SEC. 902. Whenever any stay is imposed pursuant to section 901, and whenever the duration of any such stay exceeds 120 days, the President shall promptly report to the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives the rationale and circumstances that led the President to exercise the stay authority with respect to an intelligence source or method, and to the Judiciary Committees of the Senate and the House of Representatives the rationale and circumstances that led the President to exercise the stay authority with respect to an ongoing criminal investigation.’.

    (b) CLERICAL AMENDMENT- The table of contents in the first section of such Act is amended by adding at the end thereof the following:

‘TITLE IX--APPLICATION OF SANCTIONS LAWS TO INTELLIGENCE ACTIVITIES

      ‘Sec. 901. Stay of Sanctions.

      ‘Sec. 902. Reports.’.

SEC. 304. THRIFT SAVINGS PLAN FORFEITURE.

    Section 8432(g) of title 5, United States Code, is amended by adding at the end the following new paragraphs:

    ‘(5)(A) Notwithstanding any other provision of law, contributions made by the Government for the benefit of an employee or Member under subsection (c), and all earnings attributable to such contributions, shall be forfeited if the annuity of the employee or Member, or that of a survivor or beneficiary, is forfeited under subchapter II of chapter 83.

    ‘(B) Forfeitures under this paragraph shall occur only if the offenses upon which the requisite annuity forfeitures are based happened subsequent to the enactment of this paragraph.’.

SEC. 305. AUTHORITY TO RESTORE SPOUSAL PENSION BENEFITS TO SPOUSES WHO COOPERATE IN CRIMINAL INVESTIGATIONS AND PROSECUTIONS FOR NATIONAL SECURITY OFFENSES.

    Section 8318 of title 5, United States Code, is amended by adding at the end the following:

    ‘(e) The spouse of an individual whose annuity or retired pay is forfeited under section 8312 or 8313 after the date of enactment of this subsection shall be eligible for spousal pension benefits if the Attorney General of the United States determines that the spouse fully cooperated with Federal authorities in the conduct of a criminal investigation and subsequent prosecution of the individual which resulted in such forfeiture.’.

SEC. 306. SECRECY AGREEMENTS USED IN INTELLIGENCE ACTIVITIES.

    Notwithstanding any other provision of law not specifically referencing this section, a nondisclosure policy form or agreement that is to be executed by a person connected with the conduct of an intelligence or intelligence-related activity, other than an employee or officer of the United States Government, may contain provisions appropriate to the particular activity for which such document is to be used. Such form or agreement shall, at a minimum, require that the person will not disclose any classified information received in the course of such activity unless specifically authorized to do so by the United States Government.

SEC. 307. LIMITATION ON AVAILABILITY OF FUNDS FOR AUTOMATIC DECLASSIFICATION OF RECORDS OVER 25 YEARS OLD.

    (a) IN GENERAL- Each agency of the National Foreign Intelligence Program shall use no more than $2,500,000 of the amounts authorized to be appropriated

by this Act to carry out the provisions of section 3.4 of Executive Order 12958.

    (b) REQUIRED BUDGET SUBMISSION- The President shall submit for fiscal year 1997 and each of the following five years a budget request which specifically sets forth the funds requested for implementation of section 3.4 of Executive Order 12958.

TITLE IV--CENTRAL INTELLIGENCE AGENCY

SEC. 401. EXTENSION OF THE CIA VOLUNTARY SEPARATION PAY ACT.

    Section 2(f) of the Central Intelligence Agency Voluntary Separation Pay Act (50 U.S.C. 403-4(f)), is amended by striking out ‘September 30, 1997’ and inserting in lieu thereof ‘September 30, 1999’.

SEC. 402. VOLUNTEER SERVICE PROGRAM.

    (a) GENERAL AUTHORITY- The Director of Central Intelligence is authorized to establish and maintain a program from fiscal years 1996 through 2001 to utilize the services contributed by not more than 50 annuitants who serve without compensation as volunteers in aid of systematic or mandatory review for declassification or downgrading of classified information of the Central Intelligence Agency under applicable Executive orders governing the classification and declassification of national security information and Public Law 102-526.

    (b) COSTS INCIDENTAL TO SERVICES- The Director is authorized to use sums made available to the Central Intelligence Agency by appropriations or otherwise for paying the costs incidental to the utilization of services contributed by individuals under subsection (a). Such costs may include (but need not be limited to) training, transportation, lodging, subsistence, equipment, and supplies. The Director may authorize either direct procurement of equipment, supplies, and services, or reimbursement for expenses, incidental to the effective use of volunteers. Such expenses or services shall be in accordance with volunteer agreements made with such individuals. Sums made available for such costs may not exceed $100,000.

    (c) APPLICATION OF CERTAIN PROVISIONS OF LAW- A volunteer under this section shall be considered to be a Federal employee for the purposes of subchapter I of title 81 (relating to compensation of Federal employees for work injuries) and section 1346(b) and chapter 171 of title 28 (relating to tort claims). A volunteer under this section shall be covered by and subject to the provisions of chapter 11 of title 18 of the United States Code as if they were employees or special Government employees depending upon the days of expected service at the time they begin volunteering.

TITLE V--DEPARTMENT OF DEFENSE INTELLIGENCE ACTIVITIES

SEC. 501. DEFENSE INTELLIGENCE SENIOR LEVEL POSITIONS.

    Section 1604 of title 10, United States Code, is amended to read as follows:

‘Sec. 1604. Civilian personnel management

    ‘(a) GENERAL PERSONNEL AUTHORITY- The Secretary of Defense may, without regard to the provisions of any other law relating to the number, classification, or compensation of Federal employees--

      ‘(1) establish such positions for employees in the Defense Intelligence Agency and the Central Imagery Office as the Secretary considers necessary to carry out the functions of that Agency and Office, including positions designated under subsection (f) as Defense Intelligence Senior Level positions;

      ‘(2) appoint individuals to those positions; and

      ‘(3) fix the compensation for service in those positions.

    ‘(b) AUTHORITY TO FIX RATES OF BASIC PAY; OTHER ALLOWANCES AND BENEFITS- (1) The Secretary of Defense shall, subject to subsection (c), fix the rates of basic pay for positions established under subsection (a) in relation to the rates of basic pay provided in subpart D of part III of title 5 for positions subject to that title which have corresponding levels of duties and responsibilities. Except as otherwise provided by law, an employee of the Defense Intelligence Agency or the Central Imagery Office may not be paid basic pay at a rate in excess of the maximum rate payable under section 5376 of title 5.

    ‘(2) The Secretary of Defense may provide employees of the Defense Intelligence Agency and the Central Imagery Office compensation (in addition to basic pay under paragraph (1)) and benefits, incentives, and allowances consistent with, and not in excess of the levels authorized for, comparable positions authorized by title 5.

    ‘(c) PREVAILING RATES SYSTEMS- The Secretary of Defense may, consistent with section 5341 of title 5, adopt such provisions of that title as provide for prevailing rate systems of basic pay and may apply those provisions to positions in or under which the Defense Intelligence Agency or the Central Imagery Office may employ individuals described by section 5342(a)(2)(A) of such title.

    ‘(d) ALLOWANCES BASED ON LIVING COSTS AND ENVIRONMENT FOR EMPLOYEES STATIONED OUTSIDE CONTINENTAL UNITED STATES OR IN ALASKA- (1) In addition to the basic compensation payable under subsection (b), employees of the Defense Intelligence Agency and the Central Imagery Office described in paragraph (3) may be paid an allowance, in accordance with regulations prescribed by the Secretary of Defense, at a rate not in excess of the allowance authorized to be paid under section 5941(a) of title 5 for employees whose rates of basic pay are fixed by statute.

    ‘(2) Such allowance shall be based on--

      ‘(A) living costs substantially higher than in the District of Columbia;

      ‘(B) conditions of environment which--

        ‘(i) differ substantially from conditions of environment in the continental United States; and

        ‘(ii) warrant an allowance as a recruitment incentive; or

      ‘(C) both of those factors.

    ‘(3) This subsection applies to employees who--

      ‘(A) are citizens or nationals of the United States; and

      ‘(B) are stationed outside the continental United States or in Alaska.

    ‘(e) TERMINATION OF EMPLOYEES- (1) Notwithstanding any other provision of law, the Secretary of Defense may terminate the employment of any employee of the Defense Intelligence Agency or the Central Imagery Office if the Secretary--

      ‘(A) considers such action to be in the interests of the United States; and

      ‘(B) determines that the procedures prescribed in other provisions of law that authorize the termination of the employment of such employee cannot be invoked in a manner consistent with the national security.

    ‘(2) A decision by the Secretary of Defense to terminate the employment of an employee under this subsection is final and may not be appealed or reviewed outside the Department of Defense.

    ‘(3) The Secretary of Defense shall promptly notify the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate whenever the Secretary terminates the employment of any employee under the authority of this subsection.

    ‘(4) Any termination of employment under this subsection shall not affect the right of the employee involved to seek or accept employment with any other department or agency of the United States if that employee is declared eligible for such employment by the Director of the Office of Personnel Management.

    ‘(5) The authority of the Secretary of Defense under this subsection may be delegated only to the Deputy Secretary of Defense, the Director of the Defense Intelligence Agency (with respect to employees of the Defense Intelligence Agency), and the Director of the Central Imagery Office (with respect to employees of the Central Imagery Office). An action to terminate employment of an employee by any such officer may be appealed to the Secretary of Defense.

    ‘(f) DEFENSE INTELLIGENCE SENIOR LEVEL POSITIONS- (1) In carrying out subsection (a)(1), the Secretary may designate positions described in paragraph (3) as Defense Intelligence Senior Level positions. The total number of positions designated under this subsection and in the Defense Intelligence Senior Executive Service under section 1601 of this title may not exceed the number of positions in the Defense Intelligence Senior Executive Service as of June 1, 1995.

    ‘(2) Positions designated under this subsection shall be treated as equivalent for purposes of compensation to the senior level positions to which section 5376 of title 5 is applicable.

    ‘(3) Positions that may be designated as Defense Intelligence Senior Level positions are positions in the Defense Intelligence Agency and Central Imagery Office that (A) are classified above the GS-15 level, (B) emphasize functional expertise and advisory activity, but (C) do not have the organizational or program management functions necessary for inclusion in the Defense Intelligence Senior Executive Service.

    ‘(4) Positions referred to in paragraph (3) include Defense Intelligence Senior Technical positions and Defense Intelligence Senior Professional positions. For purposes of this subsection--

      ‘(A) Defense Intelligence Senior Technical positions are positions covered by paragraph (3) that involve any of the following:

        ‘(i) Research and development.

        ‘(ii) Test and evaluation.

        ‘(iii) Substantive analysis, liaison, or advisory activity focusing on engineering, physical sciences, computer science, mathematics, biology, chemistry, medicine, or other closely related scientific and technical fields.

        ‘(iv) Intelligence disciplines including production, collection, and operations in close association with any of the activities described in clauses (i), (ii), and (iii) or related activities; and

      ‘(B) Defense Intelligence Senior Professional positions are positions covered by paragraph (3) that emphasize staff, liaison, analytical, advisory, or other activity focusing on intelligence, law, finance and accounting, program and budget, human resources management, training, information services, logistics, security, and other appropriate fields.

    ‘(g) ‘EMPLOYEE’ DEFINED AS INCLUDING OFFICERS- In this section, the term ‘employee’, with respect to the Defense Intelligence Agency or the Central Imagery Office, includes any civilian officer of that Agency or Office.’.

SEC. 502. COMPARABLE BENEFITS AND ALLOWANCES FOR CIVILIAN AND MILITARY PERSONNEL ASSIGNED TO DEFENSE INTELLIGENCE FUNCTIONS OVERSEAS.

    (a) CIVILIAN PERSONNEL- Section 1605 of title 10, United States Code, is amended--

      (1) in subsection (a)--

        (A) by inserting ‘(1)’ after ‘(a)’;

        (B) by striking out ‘of the Department of Defense’ and all that follows through ‘this subsection,’ and inserting in lieu thereof ‘described in subsection (d)’; and

        (C) by designating the second sentence as paragraph (2);

      (2) by striking out subsection (c) and inserting in lieu thereof the following:

    ‘(c) Regulations prescribed under subsection (a) may not take effect until the Secretary of Defense has submitted such regulations to--

      ‘(1) the Committee on Armed Services and the Select Committee on Intelligence of the Senate; and

      ‘(2) the Committee on National Security and the Permanent Select Committee on Intelligence of the House of Representatives.’; and

      (3) by adding at the end the following new subsection:

    ‘(d) Subsection (a) applies to civilian personnel of the Department of Defense who--

      ‘(1) are United States nationals;

      ‘(2) in the case of employees of the Defense Intelligence Agency, are assigned to duty outside the United States and, in the case of other employees, are assigned to Defense Attache Offices or Defense Intelligence Agency Liaison Offices outside the United States; and

      ‘(3) are designated by the Secretary of Defense for the purposes of subsection (a).’.

    (b) MILITARY PERSONNEL- Section 431 of title 37, United States Code, is amended--

      (1) in subsection (a), by striking out ‘who are assigned to’ and all that follows through ‘of this subsection’ and inserting in lieu thereof ‘described in subsection (e)’;

      (2) by striking out subsection (d) and inserting in lieu thereof the following:

    ‘(d) Regulations prescribed under subsection (a) may not take effect until the Secretary of Defense has submitted such regulations to--

      ‘(1) the Committee on Armed Services and the Select Committee on Intelligence of the Senate; and

      ‘(2) the Committee on National Security and the Permanent Select Committee on Intelligence of the House of Representatives.’; and

      (3) by adding at the end the following new subsection:

    ‘(e) Subsection (a) applies to members of the armed forces who--

      ‘(1) are assigned--

        ‘(A) to Defense Attache Offices or Defense Intelligence Agency Liaison Offices outside the United States; or

        ‘(B) to the Defense Intelligence Agency and engaged in intelligence-related duties outside the United States; and

      ‘(2) are designated by the Secretary of Defense for the purposes of subsection (a).’.

SEC. 503. EXTENSION OF AUTHORITY TO CONDUCT INTELLIGENCE COMMERCIAL ACTIVITIES.

    Section 431(a) of title 10, United States Code, is amended by striking out ‘1995’ and inserting in lieu thereof ‘1998’.

SEC. 504. AVAILABILITY OF FUNDS FOR TIER II UAV.

    All funds appropriated for fiscal year 1995 for the Medium Altitude Endurance Unmanned Aerial Vehicle (Tier II) are specifically authorized, within the meaning of section 504 of the National Security Act of 1947 (50 U.S.C. 414), for such purpose.

[Struck out->] SEC. 505. TEMPORARY PROGRAM TO WAIVE MANDATORY REDUCTIONS TO ANNUITIES. [<-Struck out]

    [Struck out->] (a) GENERAL AUTHORITY- The Secretary of Defense shall establish a program under which the reduction of annuities under subsection (h) of section 8339 of title 5, United States Code, may be waived to encourage eligible employees to separate voluntarily from service by retiring to lessen the possibility of involuntary separations due to reduction in force at the National Security Agency. [<-Struck out]

    [Struck out->] (b) COMPUTATION OF ANNUITY- Under this program, annuities shall be computed under section 8339 of such title without regard to subsection (h) of such section. [<-Struck out]

    [Struck out->] (c) PROGRAM ELIGIBILITY REQUIREMENTS- Under the program established under subsection (a), the waiver of the annuity reduction may be offered by the Director of the National Security Agency-- [<-Struck out]

      [Struck out->] (1) to an employee who-- [<-Struck out]

        [Struck out->] (A) is an employee of the National Security Agency, serving under an appointment without time limitation, who is in the Civil Service Retirement System and is eligible for an annuity under section 8336(d)(2) of title 5, United States Code, other than-- [<-Struck out]

          [Struck out->] (i) a reemployed annuitant under subchapter III of chapter 83 of such title 5; and [<-Struck out]

          [Struck out->] (ii) an employee having a disability on the basis of which such employee is or would be eligible for disability retirement under such chapter 83; and [<-Struck out]

        [Struck out->] (B) is within such occupational groups or geographic locations, or subject to similar limitations or conditions, as the Director may require; and [<-Struck out]

      [Struck out->] (2) for a period not to exceed 90 days during the period beginning on October 1, 1995, and ending on September 30, 1996. [<-Struck out]

    [Struck out->] (d) PAYMENTS TO THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND- In addition to any other payment [<-Struck out]

[Struck out->] which it is required to make under subchapter III of chapter 83 of title 5, United States Code, the National Security Agency shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund the amount necessary to reimburse the Fund for the additional costs of the unreduced annuities payable under this section. Amounts may be made available to make such deposits from amounts authorized to be appropriated to the National Security Agency for the fiscal year in which this Act is enacted and for the succeeding four fiscal years. [<-Struck out]

    [Struck out->] (e) LIMITATION ON AVAILABILITY OF FUNDS- No funds shall be payable under this section based on retirements occurring after September 30, 1996. [<-Struck out]

    [Struck out->] (f) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary to carry out this section. [<-Struck out]

TITLE VI--TECHNICAL AMENDMENTS

SEC. 601. CLARIFICATION WITH RESPECT TO PAY FOR DIRECTOR OR DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE APPOINTED FROM COMMISSIONED OFFICERS OF THE ARMED FORCES.

    (a) CLARIFICATION- Subparagraph (C) of section 102(c)(3) of the National Security Act of 1947 (50 U.S.C. 403(c)(3)) is amended to read as follows:

    ‘(C) A commissioned officer of the Armed Forces on active duty who is appointed to the position of Director or Deputy Director, while serving in such position and while remaining on active duty, shall continue to receive military pay and allowances. Funds from which such pay and allowances are paid shall be reimbursed from funds available to the Director.’.

    (b) TECHNICAL CORRECTIONS- (1) Subparagraphs (A) and (B) of such section are amended by striking out ‘pursuant to paragraph (2) or (3)’ and inserting in lieu thereof ‘to the position of Director or Deputy Director’.

    (2) Subparagraph (B) of such section is amended by striking out ‘paragraph (A)’ and inserting in lieu thereof ‘subparagraph (A)’.

SEC. 602. CHANGE OF DESIGNATION OF CIA OFFICE OF SECURITY.

    Section 701(b)(3) of the National Security Act of 1947 (50 U.S.C. 431(b)(3)), is amended by striking out ‘Office of Security’ and inserting in lieu thereof ‘Office of Personnel Security’.

TITLE VII--DEPARTMENT OF STATE INTELLIGENCE ACTIVITIES

SEC. 701. CONSOLIDATION OF WATCH COMPONENT OF THE BUREAU OF INTELLIGENCE AND RESEARCH.

    (a) LIMITATION- The 24-Hour Watch component of the Bureau of Intelligence and Research of the Department of State may not be consolidated into, and its functions may not be transferred to, the Secretary’s Operations Center of the Department of State until 60 days after the report described in subsection (b) has been submitted by the Secretary of State to the Permanent Select Committee on Intelligence and the Committee on International Relations of the House of Representatives and the Select Committee on Intelligence and the Committee on Foreign Relations of the Senate.

    (b) REPORT- The report referred to in subsection (a) shall include--

      (1) the measures taken and proposed to be taken to assure that adequate resources of the Secretary’s Operations Center are dedicated to fulfilling the needs and requirements of the Bureau of Intelligence and Research;

      (2) the measures taken and proposed to be taken, in consultation with the Director of Central Intelligence particularly with regard to procedures, staff training, and facilities, to upgrade the ability of the Secretary’s Operations Center to handle highly sensitive information so it is properly safeguarded and provided to the Bureau of Intelligence and Research in a timely manner; and

      (3) a comparison of the cost of the measures necessary to upgrade the Secretary’s Operations Center to fulfill the needs of the Bureau of Intelligence and Research with the costs of eliminating the 24-Hour Watch component of the Bureau of Intelligence and Research.