INTELLIGENCE CHARTER LEGISLATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-00101R000100070020-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 34
• Document Creation Date: December 12, 2016
• Document Release Date: July 18, 2002
• Sequence Number: 20
• Publication Date: February 28, 1978
• Content Type: MF

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ODP 8-0349
28 February 1978
MEMORANDUM FOR: Assistant for Information, DDA
STAT FROM n
Chief, Management Staff, ODP
SUBJECT Intelligence Charter Legislation ; d
REFERENCE Memo to Multiple Addressees fm Associate
Director-Management, National Foreign Assess
Center, 23 February 1978 (NFAC-729-78)
The paper attached to the referent memorandum has been
reviewed by senior ODP personnel and there are no comments
from an ODP viewpoint.
Distribution:
Orig & 1 - Addressee
1 - ODP Registry
2 - O/D/ODP
STAT
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0 7 MAR 1978
Systems for Information, DDA
Thomas B. Yale
Director of Finance
SUBJECT: Intelligence Charter Legislation, S-2525
REFERENCE: NFAC 729-78, dtd 23 February 1978
1. This memorandum provides comments on paragraphs of the Issues
Paper attached to reference which are of particular relevance to our
responsibilities. In addition, we are providing our comments on other
sections of S-2525 which we believe warrant attention.
(1) Paragraph 3. We agree with the importance
of the need for the proposed change.
(2) Paragraph 12. We agree with the need for
clarification of the areas identified.
(3) Paraq raph 17. We support the conclusion
stated.
(4) Paraqraph 20. The proposed change appears
to have been made in S-2525.
(5) Paragraph 21. Is it the intent of the pro-
posed language to remove the limitation
applicable to government agencies generally
which allows use of proceeds from personal
property for replacement purposes only
during a time period which expires at the
end of the fiscal year following fiscal year
of the sale?
(6) Paragraph 22. We believe the entire thrust
of Section 421(d)(1) is too restrictive,
Current Agency regulations recognize d member
of circumstances in which it may be prudent
for a proprietary to possess funds in excess
of "normal" requirements. It would be unwise
to lose the flexibility to allow proprietaries
to retain funds at whatever level is deemed
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necessary either for unique non-recurring
operational reasons or as necessary for the
proprietary to appear to be adequately funded
in relation to the pattern common to the
general area of business in which the particu-
lar proprietary is engaged.
(7) Paragraph 23. We support the question.
(8) Paragraph 31. We support the requirement for
additional language but suggest that the
concept of case basis advance approval for
individual expenditures be deleted.
(9) Paragraph 32. We agree that the issue is in
doubt, it should be clarified..
(1) Pages 18 and 22, Section 104(24(A)) & (B) and
Section 113(a). These sections and others
clearly contemplate an Office of the Director
of National Intelligence separate from the
Central Intelligence Agency. In the interests
of administrative efficiency, we have contemplated
the continued use of a single appropriation to
cover activities under the direct cognizant of
the Director (IC Staff excepted). We hope that
there is nothing in the proposed language which
would provide a statutory bar to a single appropri-
ation.
(2) Page 25, Section 113(e) and 113(f). There seems
to be a dichotomy in requiring that a military
director or deputy director be compensated
"only from funds appropriated to the Office of
the Director" concurrently with requiring (113(f))
that such an officer be entitled to the difference
between his military compensation and Agency
compensation entitlement.
(3) Page 26, line 25. The cited subsection (e) makes
no direct provision for rates of compensation.
(4) Page 35, Section 116(a). Should there be a pro-
vision for compensating assistant directors of
National Intelligence who may be commissioned
officers for differences between Military and
Agency entitlements.
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(5) Page 37 and Page 180, Sections 117(a) and
412(a). Is the Agency in agreement that
there need be no statutory provision for a
Deputy Director of the Central Intelligence
Agency?
(6) Page 40, Section 112(b). In the absence of
identification of any particular appropriation
is it the intention to allow the DNI the
specified certification authority for funds
in the National Intelligence budget regardless
of which Intelligence Community entity?
(7) Page 184, 185, Section 421(a)(1). To the extent
that this section is to provide the authority
by which the Agency is to receive its "appropriation"
through the appropriations of others, it seems
unnecessary as required by lines 3 through 6 that
the Director be required to make a certification
that limitations on the covering appropriation
would unduly impede the performance of Agency
functions.
(8) Page 187,_Section 421(b). The purpose of this
section as a separate section in addition to
421(a)(1) is not completely apparent. Do either
or both of these sections have the affect of
subjecting Economy Act transfers to the specific
approval of the Director of National Intelligence
and the Director of Management and Budget? We
recommend opposing such a requirement, if intended,
inasmuch as the authority for Economy Act transfers
is available to all Government agencies when necessary
to promote effectiveness of operations and we believe
it inappropriate to subject this Agency to any unique
approval requirements.
...........
(9) Pages 188 and 189, Section 421(d)(2). It would
appear that the proposed $50,000 threshold in
comparison to the value of proprietaries which
can be liquidated without external reporting to
the Attorney General and the Comptroller General
of the U.S. is unreasonably low.
(10) Page 196,Section 425(a). In addition to the comments
in paragraph la(8) above, we believe "for activities"
should be deleted from line 24 or the sentence
otherwise be revised to preclude the word "activities"
appearing to be antecedent for "authorized by
legislation enacted during the same. . ." We
continue to believe that the reference in this
section to prior year authorizations may contemplate
use of multiple year appropriations and again
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emphasize the cost effectiveness of con-
ducting CIA activities under a single annual
appropriation as has been done until now.
(11) Page 197, Section 425(b). We suggest omission
of the requirement for direct reporting on
expenditures certified by the DNI under the
authority of this section. Data on expenditures
so certified will be reflected in the Agency
Annual Financial Report.
(12) Page 199, Section 425(c)(3). We are not clear
as to the purpose of the requirement in this
section to the effect that expenditures and
financial obligations be approved by the Director
and the Director of OMB. It seems redundant in
our view to preceding paragraphs of Section 425(c).
A literal interpretation of the language based on
the technical meaning of financial "obligations"
would require each individual transaction repre-
senting a binding agreement for expenditure of
funds (an obligation) to receive the prior approval
of the Director and the Director, OMB. We suggest
deletion of this section.
(13) Page 204, Part E. In the interest of consistency
with the content of the text, we suggest the title
be expanded to read "Travel and Related Expenses
and Allowances; Retirement System."
(14) Page 205, Section 441(a)(3).
(a) The stated definition does not comport with
legislation referred to in Part E nor to other
Federal Regulations relating to travel and allowances
of which we are aware. On the basis of our review
of definitions and standards used in 5 USC and
22 USC as well as the Federal Travel Regulations
and the Foreign Affairs Manual, we suggest that
consistency in the relationships could be best
served by the following definition:
"The several States, the District of
Columbia, the Commonwealth of Puerto
Rico, the Commonwealth of Northern
Mariana Islands, the territories and
possessions of the United States, and
the Canal Zone."
Notwithstanding the foregoing suggestion it may be
relevant to assess the potential political impact
in new legislation of a definition which includes
the Canal Zone as part of the United States,
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(b) Germane to the above are the following
obtervations about observed inconsistencies
in the present definition of the United States.
1. The Virgin Islands and Guam are both
Unicorporated Territories and are virtually
identical as to their legal, political and
physical status - and similar as to economy,
population, climate, geographic location,
etc. The case for treating one as being in
the United States and other in a "foreign
area" is not clear.
2. The Commonwealth of Puerto Rico and the
Commonwealth of the Northern Mariana Islands
(established 9 Jan 1978) are similar, though
not identical, as to legal, political and
physical status. Here again the differentiation
of one as within "the United States" and the
other as a "foreign area" is not clear.
3. Although the Pacific Island possessions
of the United States, over which the U.S.
exercises sovereignty, would be "foreign
areas" for travel entitlements, the Canal
Zone which does not fall under U.S. sovereignty
(only acting "as if" if exercised sovereignty
per the current treaty) and which is to be
progressively geographically contracted until
it disappears in 1999 is considered within
"the United States."
4. This definition will create inherent incon-
sistencies between this legislation and the
existing legislation (5 USC and 22 USC) which
it references because of the substantive dif-
ferences in their geographical definitions and
applications. In addition, it creates the
possibility of serious inequities in the entitle-
ments and benefits applicable to employees who
are American citizens and natives of or residents
of U.S. Caribbean territories and possessions as
opposed to U.S. Pacific territories and possessions.
For example, employees with family ties in the
Virgin Islands or Puerto Rico would potentially
be entitled to home leave travel to those places,
while employees with family ties in Guam or
American Somoa would not be entitled to such
home leave travel. Home leave could be taken
in the V.I. or P.R., but not in Guam, Samoa, etc.
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(15) Page 206, Section 441(b)(2). In the interest
of clarification, it is suggested that lines
2 through 5 be restated to read as follows:
"59 of title 5, United States Code,
travel, transportation and subsistence
expenses and other allowances and
benefits in the same manner and under
the same circumstances as provided
employees of the Foreign Service under
title IX"
(16) Page 206 and 207, Section 441(b)(2). To be con-
sistent with the Foreign Service Act the term
"employees of Foreign Service" should be changed
to "officers and employees of the Foreign Service."
(Lines 9 and 14 page 206 and line 2 page 207.)
(17) Page 208, Section 441(d)(1). This section appears
to provide authority for payment of certain expenses
and benefits and allowances for reasons of operational
necessity or security when the means (emphasis added)
of paying such expenses authorized in previous sections
should not be utilized. The intent is not clear
because the sections cited seemingly make no provision
as to the "means" of payment.
STAT
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8 A 1973
MEMORANDUM FOR:
FROM:
SUBJECT:
Assistant for Information, DDA
James H. McDonald
Director of Logistics
Intelligence Charter Legislation, S. 2525
REFERENCE:
Multiple adse memo fr
Associate
STAT
Director - Management, Feb 78,
same subj (NFAC 729-78) (OL 8 0766)
1. This Office has completed its review of the "issues
paper" attached to the reference memorandum. Except for those
items specifically addressed herein, we have no comments or
suggestions to make on the other questions.
2. The following responses are keyed to the issue numbers:
Number 3: We agree with the definition of "proprie-
tary" as set forth in 3b.
Number 10: We believe your reference is to Section
413 (g)(2). Section 411 specifically states that this
"Agency shall be under the direction and control of the
National Security Council (NSC)." The charter legis-
lation appears to be sufficiently clear that the Agency
will be under the direction and control of NSC. The
Director of National Intelligence (DNI) receives his
direction from NSC. To add "under the direction of NSC"
would seem redundant. This addition in Section 413 g
(2) might bring into question under whose direction the
provisions in the other paragraphs are to be carried
out.
Number 13: Paragraph 413 (g)(5) as worded seems
sufficient to provide for the support of the Office of
the Director of National Intelligence. In the category
of administrative support is included: security, per-
sonnel, communications, logistics, training, medical
OL 8 0766a
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SUBJECT: Intelligence Charter Legislation, S. 2525
services, and finance activities. Even if the DNI
and the Director of Central Intelligence (DCI) is
not the same individual, support to the Office of
the DNI can be provided under the provision of this
paragraph without any difficulty.
Number 16: We concur in the recommendation and
the language of a new subsection 413 (i). However,
it would appear that the subsection is out of sequence
if left to the end of paragraph 413. We suggest a
new subsection 413 (g)(5) and the (5) becomes (6).
Remove the word "above" from line 3 of the proposed
paragraph.
Number 18: We concur in the recommended changes
suggested for inclusion in Section 421 (a)(6).
Number 21: Management of property, including its
disposal within the continental limits of the United
States, is adequately covered in the Federal Property
and Administrative Services Act of 1949, as amended.
However, we suggest that a new subsection 421 (a)(18)
address the disposal of foreign excess property as
follows:
"Dispose of foreign excess property by qqa_~"~
destruction, abandonment, or by donation, set,
or transfer to a foreign government notwith-
standing any other provisions of law, and under
procedures approved by the Attorney General,
when the Director deems such action necessary
to the successful performance of the functions
of the Agency or to protect the security of
Agency activities."
Number 26: We believe procurement authority is
sufficiently covered in Section 422. There is a pro-
cedural problem with subsection 422b. This paragraph
provides that the Director can waive compliance with
the Army Services Procurement Regulations, but that
he must report any waiver to the Permanent Select
Committee on Intelligence of the House of Representa-
tives and the Select Committee on Intelligence of the
Senate, together with reasons for exercising such
waiver. It is not clear if a report is required
prior to or subsequent to exercising the waiver, nor
2
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SUBJECT: Intelligence Charter Legislation, S. 2525
is the format or procedure for reporting understood.
Proposed bill S. 1264, The Federal Acquisition Act
of 1977 (Chiles Act), will replace the current Armed
Services Procurement Act contained in Title 10, U.S.C.
It appears that Section 422 was written without con-
sidering the impact of S. 1264.
Number 27: With reference to paragraphs 139
and 422 (c) - this is difficult to assess without
knowing what the procedures approved by the Attorney
General will be. Procurement and contracting activi-
ties could be impeded if the Director is to obtain
an approval each time.
Number 31: We agree to the suggested revision
to Section 425.
Number 35: We do not agree that the appointment
of the General Counsel in paragraph 426 (a) should
be subject to the advice and consent of the Senate
for reasons stated in the issues paper.
Number 39: We agree with the proposed language
change to paragraph 431 (c)(1).
3. We purposely did not comment on number 19, since we
are confronted with the limits of general authority and the
finite application of specific prohibition or permission to
carry out the myriad of functions inherent in the logistics
mission. For example, the authority to procure as contained
in Section 422 carries with it the necessity to store, account
for, transport and dispose of property within the confines of
existing law or under such waiver(s) as may be granted. We
choose to let Section 421 stand as written except as noted
elsewhere in this paper. Any attempt to enumerate each sepa-
rate responsibility could encumber any action with an unneces-
sary burden of waiver.
STAT
James H. McDonald
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Mk`k 1978
MEMORANDUM FOR: Deputy Director for Administration
Acting irec or of Personnel
SUBJECT : Intelligence Charter Legislation
REFERENCE : Multi adse memo fr AD-M/NFAC dtd 23 Feb 78,
same subject
1. Forwarded in response to reference request are Office of
Personnel comments on Title IV of Senate Bill 2525.
2. The OLC paper has been reviewed, and while all the points are
not covered in this memorandum, it is agreed the issues identified by
OLC need to be clarified or revised as proposed. A principal area of
difficulty in commenting on the proposed Title IV in relation to the
implementation of the provisions is the ambiguity over the relationship
of the Office of the DNI with the Central Intelligence Agency. The
experience with the IC Staff should serve to point up the problems
posed by having one agency provide the administrative support, including
statutory requirements such as appointment and separation of personnel,
for another separate entity without clearly defined responsibilities and
functions.
3. The attached comments are addressed to the specific items which
our review of Title IV identified as matters of concern in the particu-
lar area of personnel/administrative concern.
STAT
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TITLE TV - S'2525
(Page references are to the 9 February release copy of S 2525)
Section 411(a), page 4 (i60)
CIA is under the direction and control of the NSC.
Comment :
Defer to the legal opinion as to whether this expanded phrase is
significantly different from the wording of the CIA Act of 1947 which
establishes CIA under the NSC and in 102(d) provides for various
functions of the Agency "under direction of the NSC".
Section 412 (a), page 5 (18o)
As in Title I, provision is made herein for the DNI, the DDNI or
an ADNI to "act" as the Director of CIA.
Comment :
The ambiguities of the Office of the Director and CIA as separate
entities were noted in the comments on Title I.
If the President, as provided for in Section 117, can "transfer
all duties and authorities of the DNI" to the DDNI or an ADNI, the
term "act" appears inappropriate as indicating a temporary situation
which is not the intent per the SSCI comments on Section 117. "Serve"
would be a more appropriate word for a permanent situation. Section
117 does not use the term "act" although it is used in Section 114(d).
Agree with OLC on the lack of clarity relative to delegable powers,
among all other ambiguities of this possible dual role.
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 Approved For(k~le s~ 2 stC "F~~ 6~ '1 (f ~1 (~0~16`~~b~f~0~2d6 P
or other amount due suen parson or his estate,
(2) a deduction from any amount due such person from.
the united States, or
(3) such other method as is authorized by law,
unless the Director or his designee determines that recovery of
any such sum will not be in the best interests of the United
States.
(f) The Agency may, when the Director shall find it to be J
in the best interests of the Government to do so as a means of
eliminating transportation costs, provide assigned persons with
basic household furnishings and equipment for usp on a loan basis
in personally owned or leased residences in foreign areas or in
remote areas of Alaska.
(g) Under such regulations as the Director may prescribe,
the Aieney, with respect to its employees assigned to cuty
scatiocis an the United States, may waive the applications of
provisions of sections and of Public Law 89-516 for
certain employees wnen the Director deems that the official
change of station involved is of such a limited duration as to
warrant the waiver.
(h) Death Gratuities for Certain Agency Employees
Under such regulations as the Director may prescribe, the
Agency is authorized to provide for payment of a gratuity to
surviving dependents of any Agency employee, including any
as a result of
injuries sustained in the performance of duct' in a foreign area
or r-rre Canal Zone in an amount equal to one year's salary at ne
e_n.e of teach. A aeatn gratuity payment snail be :,dada uncer tn.is
sutsection only if :.ne survivors entitlec to pay.T.en: under this
sucsection are en~?tlec to elect Tontniy compensac'_on under
ace ion 31.,3, :it..e 5, Jnitec States ode because ..n? :each
?a from an ^.jUrv (excluding a disease proxi.rra:ely caused
?ustainec in nf- 7'r.".nriance o uty, wi u
STAT
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 sucRrftedp 349?f08/A%: cql -P2RP iiQp)Op1 ygr gt00ace n0 5
AI5?yeq
t,nis subsection snail be held to have been a gift and shawl be in
aeoi:.ion to any other oenefit payable from any source. A death
6ratuicy payment under this subsection shall be made as follows:
(1) first, to the widow or widower; (2) second, to the child, or
children in equal shares, if there is no widow or widower; and
(3) third, to the dependent parent, or dependent parents in equal
shares if there is no widow, widower or child. If there is no
survivor entitled to payment under this subsection, no payment
shall be made. As used in this subsection, the terms"widow",
"widower", "child", and "parent" shall_have the same meaning
given each such term under section 8101, title 5, United States
Code.
(i) (1) Whenever the President determines that it would be
appropriate for the purpose of maintaining conformity
between provisions of law relating to travel and related
expenses drid uedth gratuities of the ForeiWU Service of the
United Scates and provisions of law relating to travel and
related expenses and death gratuities of employees of the
Agency, tie may, by Executive order, extend to Agency
employees, a provision of law enacted after January 1, 1976,
which:
(A) amends part B, subchapter IX, chapter 14,
title 22, United States Code, or
(B) amends section 2679a, chapter 38, titlA 22,
United States Code, or
(C) otherwise affects provisions of law
relating to travel and related expenses or death
gratuities of the Foreign Service.
Any such order snall extend such provision of law so that
sucn provision applies in lice manner with respect to Agency
employees. Any s::c'n order snail have the force and effect
of law and may be given retroactive effect to a date not'
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 earlier than the effective date of the corrasronding
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provision of law relating to Foreign Service personnel.
(2) Any provisions of an Executive order issued
pursuant to this subsection shall'Todify, supersede, or
render inapplicable, as the case may be, to the extent
inconsistent therewith--
(A) all provisions of law enactea prior to the
effective data of the provisions of sueh Executive
order, and
(8) any prior provision of any Executive order
issued under authority of this section.
(3) An Executive order under this subsection may not
become effective until 60 days after the President submits
the proposed order to those committees of the Senate and
House of Representatives having jurisdiction over the
subject matter of the order.
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 RETIREMENT SYSTEM
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Sec. 418. Employees of the Agency shall participate in the
regular Federal civil service retirement system pursuant to
subchapter III of chapter 83 of title 5, United States Code. The
Director may, however, continue to designate for participation in
the Central Intelligence Agency Retirement and Disability System,
auttlorized by the Central Intelligence Agency Retirement Act of
1964 for Certain Employees (78 Stat. 1043; 50 U.S.C. 403 note),
certain employees of the Agency whose duties are e4-then (1) in
support of Agency activities abroad,and are-'hi hazardous to
el. 1 64
life or health or (2) so specialized,as to be c early
distinguishable from normal government employment; but the number
of employees of the Agency which may retire on an annuity under
such system in any period may not exceed the limits prescribed by
law.
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Sec. 419. Subject to the provisions of section 412(o) of
this Act, no provision of law shall be construed to require the
Director or any other officer or employee of the United States to
disclose the organization, function, name, official title, or
salary of any person employed by the Agency, or the number of
persons employed by the Agency, unless such provision
specifically requires such disclosure and expressly cites this
section.
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 TNANSFER OF PERSONNEL, PPOPERTY, AND FUNCTIONS
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Sec. 420. (a) All personnel employed by the Central
Intelligence Agency, as in effect on the day before the effective
dale of this title, ana all obligations, contracts, properties,
anu recorus employed, held, or used primarily in connection with
any function to be performed by the Agency under this title, are
transferred to the Director.
(b) All orders, determinations, rules, regulations,
permits, contracts, certificates, licenses, and privileges which
nave become effective in the exercise of functions transferred
under this title and which are in effect on the day before the
effective date-of this title, shall continue in effect until
modified, terminated, superseded, set aside, or repealed by the
Director, by any court of competent jurisdiction, or by operation
of law.
(c) The provisions of this title snall not affect any
proceeuings pending before the Central Intelligence Agency as in
effect prior to the effective date of this title.
(d) No suit, action, or other proceeding begun by or
against any officer in his official capacity in the Central
Intelligence Agency, as in effect prior to the effective date of
this title, shall abate by reason of enactment of this title.
(e) With respect to any function transferred by this title
and exercised after the effective date of this title, reference
in any other Federal law to any department, agency, office, or
part thereof shall be deemed to refer to the department, aRenev,
or office in which such function is vested pursuant to this
tiff:.
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 STATUTES SUPERSEDED AND REPEALED
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See. 421. (a) Section 102 of the National Security Act of
1947 and the Central Intelligence Agency Act of 1949 are
repealed.
W Section 662 of the Foreign Assistance Act of 1961, as
amenued, is repealed.
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 EFFECTIVE DATE
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Sec. 422. This title shall become effective the first day
of the third calendar month following the month in which it J-s
enacted.
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How far does the phrase "supervisor of" in line 9 extend into
administrative matters or is it limited to those of intelligence
nature?
Section 413(f), page 7 (1
Provides for the Agency to act as the agent of the DNI in certain
activities.
Comment:
If the DNI is also the D/CIA, is CIA an agent of its own Director?
Agree with OLC proposed revision if it is determined the DNI is always
the D/CIA. Would the provision of 412(a) for the D/CTA (if not also
the DNI) to be under the supervision of the DNI support use of "agent"
in this context.
Section 413(g) (5), page 7 3)
Authorizes the Agency to provide various services to the Office
of the DNI, including administrative services.
CoRmnent:
Assume "administrative" includes budget, finance, personnel,
logistics, et al. OLC raises the issue of a definition for the Office
of the DNI and explicit charge on CIA for the support of the ODNI., A
clear definition of the ODNI and the relationship to CIA is essential
if the services noted in this section are to be properly provided.
The impact on the CIA budget is only one facet. Can the CIA Director
of Personnel be delegated the power to appoint, promote and separate
the employees of another agency? Would the officers of CIA responsible
2
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for providing the services enumerated here hold dual status, e.g.,
Director of Personnel for CIA and for ODNI? If the DNI is not the
D/CIA, how would such powers be delegated . . . through the D/CIA?
Is the thrust here for the relationship of ODNI and CIA to be compara-
ble to Justice Department and the FBI? In that case, however, we
believe each one has its own support structure.
This question is also related to item 36 of OLC issues papers
where the question of the authorities of the IG and General Counsel
for ODNI duties is raised.
Section 421(a) (6), page 10 10
Background investigations.
Comment :
The following categories of personnel should be added: "employees,
contractors and employees of contractors" as provided for in 423(a)(1).
In this connection, referring to Section 114(m) and (n) of Title
I, which as now written appears to give the DNI authority to appoint,
promote and separate personnel in any of the agencies of the Intelligence
Community, and if that is the intent of the provision in Section 114,
this section should probably be expanded to include DNI authority to
do background investigations on any of the same category of individuals
elsewhere in the Intelligence Community. At a minimum, however, if
the CIA is to provide the administrative support to the ODNI, (Section
413), the authority to do background investigations should be extended
to the Office of the DNI.
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Section 421 (a) (8), page 10 ` i
Authorizes the Agency to perform inspection, audit, public affairs,
legal and legislative services,
Comment:
OLC proposes inclusion of "budgetary and personnel services". The
inclusion of budgetary and personnel would depend on the reason for
listing the services in (a)(8). If these are considered normal Agency
functions, the two should be added, but on the other hand, why list
what are normal to any agency of the Federal Government? If the
listing is intended to allow for the Agency to provide its own services
in these areas, thereby avoiding the use of CSC, Justice Department or
GAO, budgetary and personnel functions are provided for in other
sections of the Title. Defer to the intent of the section.
Section 421(i), page 13, 0 R of
Authorizes employees of the Agency to carry firearms within the
United States for the protection of certain officials.
Comnent :
Question if this list of officials should not provide for officials
of other government agencies or departments as directed by the AG,
NSC or the President. The Agency is required to supplement the Secret
Service in certain situations; it is assumed guns are carried.
Section 421(j), page 13 (q)1
Provides for appointment, promotion and separation of personnel
but limits appointment and promotion authority to EP V.
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Conunent :
Authority to promote within present lawn is basically unlimited,
although the practice has been restricted to EP TV. When the Director
ICS was appointed, CMB approved the EP ITT level.
As written, this section would require the D/CIA to go to Congress
for any promotion to EP IV, the level of the present Deputy Directors.
This S 2525 version of Title I, Section 116, provides for the
ADNIs, but does not specify a grade; earlier drafts had the ADNI posi-
tions at EP III. Section 426 which establishes the General Counsel
and Inspector General does not include grades in this version either;
they previously where EP IV and V respectively. While General Counsel
is a Presidential appointment, Inspector General is appointed by the
D/CIA. Does this mean Deputy Director. level may not exceed EP V or
that Deputy Directors of CIA will require Congressional approval.
Paragraph (j) (1) , (2) and (4) , page .13 and 14 0 11 - a }
Note the use of "separate" in Section (j)(1) and "terminate" in
Section (j) (2) and repeat in (j)(4). Is there any reason for the
different terminology? "Separate" certainly includes for "cause"
(e.g., incompetence, personal behavior) as well as surplus. The
"termination" for reasons of national security is only another version
of cause. Making a specific difference here could create problems for
future interpretation unless the legislative history covers the reason;
on the other hand use of one term or the other in both instances would
avoid future problems of any intent of difference.
5
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Paragraph (j) (3) , page 13 ( (Cj 7 1
Question if the use of "position" here is 'meant to include sub-
stances as well as number, e.g., the jobs with duties and responsibilities
as now exist are transferred to CIA. Does any subsequent change in
substance but not number require going back to Congress for approval
or can it be assumed the law would provide the SG and EP VI and EP V
only in terms of numbers requiring Congressional action only when our
present ceiling is exceeded. Section 421(j)(1), however, limits new
promotions to the EP V level.
Paragraph (j)(4), page 14
J(12
Provides for employment of separated or terminated individuals in
other agencies of government if declared eligible by the CSC.
While this is the same wording as the present law, and includes
the new benefit of conversion to competitive status with the transfer,
we question if it is really meant to approve employment in the govern-
ment only if CSC approves. There are jobs in the Federal Government
not in the competitive service and which do not necessarily require
CSC approval. Propose it be written: "declared eligible for such
employment under government rules, and the Civil Service Commission
may place such officer or employee in a position in the competitive
civil service in the same manner as an . . ."
N.B. The provision herein for competitive status on transfer
with CSC approval is in conflict with the current provisions of Title
5 on this subject. We defer to OLC whether this new law would take
precedence over the current statutes relative to the competitive service.
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Section 441(a), page 27
Defines "employee" and restricts benefits under certain circinii-
stances.
Comment :
Concur with OLC and prefer this section establish the contract
employee status more clearly, although we are advised the phrase
"unless specifically indicated" is meant to provide for the provision
of employee status and benefits in contracts. A wording such as pro-
posed by OLC would make the situation clear for future generations
interpreting this law.
We also believe the limit on employee benefits when the individual
is resident at the foreign post where initially employed is too
restrictive and requires modification. The Agency has in the past
employed on a full-time career basis U.S. citizens, resident at foreign
posts at the time of employment as the result of former U.S. Government
or private industry employment. It has been practice to provide return
travel to the United States at the completion of the tour normal for
the post,,usually two years.
Quarters and other allowances have also been paid in some instances.
If employment is under contract, presume the benefits could be written
into the contract, though that could be considered flaunting the intent.
Believe this is meant to apply to the individual who is a legal resident
of the foreign area with no intent of leaving the post, i.e., the FS
resident staff employees or local hire. Propose it be amended to
include "legal resident" as part of the definition if necessary to
include this restriction.
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Section 441(b) (1) and (2), page 27 ( c S 1
OLC proposes the use of "comparable" in the sections establishing
the various travel benefits and allowances. We see no difference in
"accordance with" or "comparable" but defer to the legal meanings of
the words.
Section 441(c)(1), page 27
Provides for an Executive Order to grant CIA employees benefits
which are provided to the Foreign Service by law, which are not amend-
ments to Title IX of the Foreign Service.
Comment:
Is the intent of this provision to obtain benefits, such as the
Foreign Service yearly educational travel, which was provided by amend-
ment to the Appropriations Act of the Foreign Service rather than as
an amendment to the normal travel and allowance sections of the statute.
If so, we concur the Executive Order is probably the only effective way
of obtaining the benefit . . . assuming the provision herein provides
the necessary authority for an Executive Order to override a specific
limitation on the benefit such as was included in the educational
travel provision.
Section 441(d) (1), page 29
This limits the Director's authority in payment of expense, benefits
and allowances to the equivalent of those provided for in Chapter 57
and 59 of Title V and.Title IX of the Foreign Service, but allows for
a different "mans" of payment.
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Comment:
This section would appear to limit the Agency's authority to pay
allowances only as provided for in Title 5 U.S. Code and would eliminate
the authorities exercised under Section 8b of CIA Act of 1949. Under
the current law, among other special benefits, the Agency pays supple-
mental quarters allowances of its personnel, representation allowance,
NOC Premium Pay, equalization, and sometimes supplemental education
allowances to NOCers. Attached is a list of some of the benefits pro-
vided Agency employees which are based on the DCI's authority under
Section 8(b) and which would probably be unavailable under the proposed
legislation.
An earlier version of Title IV included a clause which authorized
the expenditure of funds for extraordinary or emergency nature. As
noted in the OLC issues paper, item 31, this section has been eliminated.
We do not see Section 425 in the S 2525 version of the Title as
encompassing the intent of the original paragraph and would prefer a
clearer statement.
Whether the former clause is returned to the Act or the legislative
history clarifies the point in this section, it is proposed that the
wording of Section 441(d) be revised to permit the spending of funds
in excess of the benefits and allowances specified in 441(b) and (c)
where required by extraordinary circumstances (NOC) or operational
necessity.
Section 442, page 30 '
Retirement System.
9
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Comment:
Concur with OLC recommendation to delete the specifics of selection
for participation in CIAROS. Reference to the law itself should be
sufficient.
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 uVI'f# IUtJ I I/ L
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SECTION 8(b) AUTHORITIES
CIA ACT OF 1949
Benefits and Services
Conducting various insurance programs "in house" for cover reasons.
Employee's Activity Association
Sports Program - Health Room, etc.
"In house" processing of FECA claims for cover reasons.
Centralized service for arranging personnel travel and movement of HHE.
Payment of per diem for overseas out-patient medical travel, not
including hospitalization.
Retirement Activities
Retirement relocation benefits
External employment assistance.
Allowances and Benefits
Quarters Allowance in excess of standard rates
Fix-up costs of Quarters
Transportation Allowance
Furnishing QP furniture and automobiles
Representation Allowances
Advance Funds for Refundable School Bonds
Emergency Visitation without deductible
25X1
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Allowances and Benefits (Continued)
Casualty Plan, Special Payments
QUNHULN I IAL
Higher Differential in Special Cases, e.g.,
at 35% 25X1
Authorities Utilized for Non-official Cover Personnel
(in addition to 'a - O ve
Equalization Allowance
Education Allowance in excess of standard rates
TLA/SPA paid in excess of 90 days
Payment of Unemployment Compensation
NOC Premium Pay
Escrow Leave Accounts where cover does not permit the use of equivalent
government leave.
Pay Social Security taxes over $300
Shipment of excess HHE if keeping with cover
Others
25X1
Separation compensation for contract employees
Bonuses for contract employees
Independent Contractors under personal service contracts vis procurement
Purchase of insurance policies for independent contractors
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6UNFIDENTIAL
 (Ul'U IUtIN I IPtL
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Others (Continued)
Authority to pay in excess of government schedules. (There has been
one in excess of EP 1.)
Operational loans to agents
DCI authority to waive overpayment of Confidential Funds
Premium Pay
Limitation on payment of overtime
Eight hour contribution by GS-12 and above
Impact on Nonstandard Work Week based on 80 hour pay period (FPMs
provide overtime on basis of 8 hour day or 40 hour week).
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GONFL'T!!.
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8 MAR 1978
MEMORANDUM FOR: Assistant for Information, DDA
FROM: Robert W. Gambino
Director of Security
SUBJECT: Intelligence Charter Legislation - Title IV
REFERENCE: Memorandum from Associate Director -
Management, National Foreign Assessment
Center, subject: Intelligence Charter
Legislation, dated 23 February 1978
(NFAC 729-78)
The Office of Security has reviewed the latest draft of
Title IV together with the Office of Legislative Counsel's
paper which was attached to reference. We offer the following
comments:
a. Section 421(a)(6) - We stress and reiterate
our previously expressed concern that Title IV fails
to grant authority to conduct investigations on persons
other than applicants. We urge that this section be
amended as follows: "Protect the security of its
installations, activities, information and personnel
by appropriate means, including such investigations
of applicants, employees, contractors, and other
persons with similar associations with the CIA, or
access to its facilities as are necessary."
b. Section 421(h) and (i) - The explicit
firearms-carrying authority of Section 421(1),
following as it does Section 421(h) which speaks
of "police powers," could be construed to imply
that firearms may not be worn for the purpose of
protecting installations and grounds. We believe
the firearms-carrying authority should be extended
to include the protection of Agency installations,
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grounds and classified material. The latter point
is intended to encompass material not only in transit
(courier-type situation) but in storage, either
temporary or permanent. Further, we assume that
the authority to carry firearms overseas for the
purposes cited, in accordance with applicable foreign
law, is intended.
c. Section 421(j)(4) - We continue to feel that
the ability of a person fired by the Director for
security reasons to gain federal employment should
be limited to positions not involving access to
classified intelligence information. Otherwise,
it seems to us, the Civil Service Commission is
given the power to undermine the Directorts
responsibilities to protect sources and methods.
d. Section 423(1) - This section should be
amended to reflect the authority to seek assistance
from state and local law enforcement agencies in the
conduct of background and security investigations
t'as authorized by Section 421(a)(6) above." This,
of course, assumes the implementation of our recom-
mendation on the latter section. The point is that
we must have the authority to run police checks in
all authorized investigations.
STAT
,KoDert IN.ne1no
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