COMMENTS ON DRAFT INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 1987

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88G01332R001100120017-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 102
• Document Creation Date: December 27, 2016
• Document Release Date: January 26, 2012
• Sequence Number: 17
• Publication Date: January 23, 1986
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
ROUTING AND TRANSMITTAL SUP
Dab
.24 JAN 1986
TO:(Name. *like symbol, room number,
building, Agency/Posy
EXO/DDA
initials
Date
ADDA
27 teaa
DDA
JA r1l
] sass
4.
File
Note and Return
I
For Clearance
Per Conversation
R u?std
for Correction
Prepare Rep
late
For Your Infownation
Se? M?
ment
Invests ?
mignature
ination
Justify
00 NOT use this form as a RECORD of approvals, concurrences, disposals,
clearances, and similar actions
FROM: (Name, org. symbol, Agency/Post)
OPTIONAL~yFORM 41 (Rev. 7-76)
RM 1 CFR 10 -11.20.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
2 3 JAN 1986'-?
STAT
Chief, Legislation Division
Office of Legislative Liaison
STAT
SUBJECT: Comments on Draft Intelligence Authorization
Act for Fiscal Year 1987
Director of Security
A review of Subject draft disclosed no objection except to
portions of Title IX, Section 901 as follows:
? Section 901(a) - There is a typographical error in
the first line. It should read, "...an officer or employee
of the United States..."
? Section 901(a) and (b), and the Analysis and
Explanation, page 59 - Subsection (a) of 901, states that
it would not be illegal under the Act to make an
unauthorized disclosure to any federal civilian or military
person. It is the view of the Office of Security that the
law should penalize any unauthorized disclosure by a person
having authorized access to any person who is not
authorized such access. Persons having access to
classified information are responsible for determining the
eligibility of persons to whom they covey such
information; the fact that the other person merely is a
federal or military employee should not relieve the
offender of that responsibility nor from liability under
the proposed law.
? Section 901(c)(iii) - It is suggested that the
word, "right" be deleted. Provision for access by those
having a "right", ie, elected officials, is made separately
later in the same paragraph. It is believed that we should
avoid implying that there are any others who have a right
STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9 -
JOIN 2 3 1986
MOURANDUM FOR: Chief, Legislation Division
Office of Legislative Liaison
FROM: Robert W. Magee
Director of Personnel
SUBJECT: Draft Intelligence Authorization Act for
Fiscal Year 1987
1. We have reviewed the subject draft legislation and have a number of
comments.
2. First, the wording of Section 403 of the proposed Act (p. 4 and p. 68),
which is intended to extend the extra retirement credit option for service at
unhealthful posts to Civil Service Retirement System and other non-CIARDS
participants, needs correction. The provision currently reads:
The provisions of subsection 251(b) of the Central
Intelligence Agency Retirement Act of 1964 for Certain
Employees (50 U.S.C. 403 note) authorizing the Director of
Central Intelligence to establish a list of unhealthful
posts for which an extra retirement credit for service at
such posts may be provided to an Agency employee who is a
participant in the Civil Service Retirement and Disability
System or in a new Government retirement system as defined
in the Federal Physicians Comparability Allowance Act of
1978, as amended, in the same manner and to the same extent
in the case of an Agency employee who is a participant in
the Central Intelligence Agency Retirement and Disability
System. (Emphasis added)
It is not clear whether the "may be provided" clause is intended to modify the
subject of the sentence--i.e., "the provisions of subsection 251(b) of the
[CIA] Retirement Act"--or to modify the phrase, "for which an extra retirement
credit for service at such posts." If the former is the case, then the
phrase, "for which an extra retirement credit for service at such posts," is
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
SUBJECT: Draft Intelligence Authorization Act for
Fiscal Year 1987
grammatically incomplete; if the second is the case, then the whole sentence
has na subject verb. We suggest the following revision of Section 403 to cure
this problem:
The provisions of subsection 251(b) of the Central
Intelligence Agency Retirement Act of 1964 for Certain
Employees (50 U.S.C. 403 note) authorizing the Director of
Central Intelligence to establish a list of unhealthful
posts for which an extra retirement credit for service at
such posts may be provided to an Agency employee, shall
apply to an Agency employee who is a participant in the
Civil Service Retirement and Disability System or in a new
Government retirement system as defined in the Federal
Physicians Comparability Allowance Act of 1978, as amended,
in the same manner and to the same extent as in the case of
an Agency employee who is a participant in the Central
Intelligence Agency Retirement and Disability System.
(Emphasis added)
3. Second, Section 901 of the draft Act (p. 24 and p. 88) literally would
make it a crime for a current or former federal employee to disclose
classified information to even a cleared independent contractor or foreign
liaison service employee, since an independent contractor or foreign
intelligence official is not "an officer or employee of the United States."
We believe this is not the intent of the provision and would suggest that it
be revised either by striking the words, "who is not an officer or employee of
the United States," or by adding immediately after that phrase the following:
"or person who has a contractual or official liaison relationship with the
United States."
4. Third, we detected several errors in the draft (there may be others).
On p. 16, in Section 703(a)(2)(c), "and employees" should read, "or
employee." On p. 24, in Section 808(3)(d), the second "or" either should be
"of" or could be deleted. On p. 26, in the last sentence of Section 901(f),
the word "proprietary" should be "propriety."
Robert W. Magee
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Fiscal Year 1987
STAT
Distribution:
Orig. & 1 - C/LD/OLL
1 - D/PERS
1 - DJK
1 - DD/PA&E
1 - PA&E Chron
OP/PA&tJ
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
ROUTING AND TRANSMITTAL SUP
STAT
STAT
Deb
21 JANUARY 1986
TOe (Name, olllee symbol, room numbar,
building, Agency/Post)
1. DIRECTOR OF PE ZSONNEL
Initials
Dots
_.
DIRB MR OF SECUP,ITY
46
a
File
Note and Return
1
For Clearance
Per Conversation
R uested
For Correction
Prepare Reply
Wculate
For Your infownation
See Me
Invests a
signature
ination n
justify
The attached no was received in ODDA late
morning 21 January. If we have comments, we must
report than to OLL by noon Thursday, 23 January.
If you have comments, please respond directly
to CHILL, (by telephone or memorandum)
and let me know after the fact. Thank you.
c U.S.G.P.O.: 1983421-529/320 f 1941 Co 0 1206 -
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
ROUTING AND TRANSMITTAL SUP
21 JANUARY 1986
STAT
FORM 41 (Rev. 7-76)
101-11.2Si
The attached memo was received in ODDA late
nmrning 21 January. If we have cciments, we must
report than to OIL by noon Thursday, 23 January.
I have'sent via the 2:00 p.m. courier a copy
to D/OP and D/OS for comments. If you have coinnents,
please pass than to me and I will incorporate our
response. Thank you.
REMARKS
TO: (~NName. ol!!a symbol. room number.
building, Agency/posy
1. DDA
Initials
bat*
~.
FCO/DDA
4
a
Foe
Nob and Ratum
1
For Clearance
Per Conversation
R uestad
For Correction
pre re
lab
For Your Infownation
Si. me
nMnt
Investl
Signature
ination n
Jusd
cc: ADDA
MS/DDA
DO NOT use this form as a RECORD of approvals, concurrences, disposals.
clearances, and similar actions
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
IMMEDIATE
Porm
3-0 t70t.
OLL 86-0100
21 January 1986
STAT FROM:
Chief, Legislation Division
Office of Legislative Liaison
Subject: Request for Comments - Draft Intelligence
Authorization Act for Fiscal Year 1987
1. Attached for your review and comment is a first draft
of the Intelligence Authorization Act for Fiscal Year 1987.
Following receipt of your comments, this draft will be
transmitted to the Office of Management and Budget (OMB) for
Administration clearance prior to its submission by the
Director of Central Intelligence (DCI) to the Congress.
2. Titles I through III and X of the bill are, for the
most part, routine in nature and similar to comparable
provisions contained in the Fiscal Year 1986 Authorization Act
(P.L. 99-169).
3. Title IV contains a number of Agency and Community
provisions. Section 401 removes an overly burdensome and
unnecessary obligation of the Central Intelligence Agency (CIA)
and National Security Agency (NSA) to publish classified record
destruction schedules in the Federal Register. Section 402 is
the "interlocutory appeal" provision which was included in last
year's bill as submitted to the Congress. Section 403 provides
an "unhealthful posts" retirement differential for non-CIARDS
Agency employees. You will recall that last year's bill
contained a provision granting this differential to
participants in the Central Intelligence Agency Retirement and
Disability System (CIARDS). Section 404 is the special drug
and alcohol abuse provision for CIA and NSA also contained in
last year's bill as submitted to the Congress. Section 405
contains a limitation on the personal tort liability of
Intelligence Community personnel which was included in the
version of last year's bill sent to O11B.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
4. Title V of the bill is the version of the Department
of Defense (DoD) proprietaries legislation which was submitted
to the Congress last year (in contrast to the version contained
in the "Defense Intelligence Commercial Entities Act" as
recently proposed by minority members of the House Permanent
Select Committee on Intelligence (HPSCI)).
5. Title VI contains a variety of provisions designed to
improve the counterintelligence capabilities of the Federal
Bureau of Investigation (FBI). Section 601 would mandate that
financial institutions cooperate with Federal Government agency
requests for records in connection with counterintelligence
investigations. Section 602 would allow FBI access to certain
tax records in counterintelligence investigations. Section 603
would authorize FBI access to telephone toll records in such
investigations. Section 604 would authorize the FBI and DoD to
expend funds to bring foreign counterintelligence officials to
the United States for consultation. Section 605 would add the
FBI to that group of agencies (CIA, DoD and the Office of
Personnel Management) who, under P.L. 99-169, are authorized to
obtain state and local criminal history record information on
applicants.
6. Title VII contains various provisions which would
improve the administrative and personnel authorities of the
military intelligence agencies. Section 701 provides a method
for insuring the security of promotions for military
intelligence officers. Section 702 extends the authority of
the Secretary of Defense to terminate civilian employees of the
Defense Intelligence Agency (DIA). Section 703 extends certain
other personnel management authorities which the Secretary now
has vis-a-vis DIA to the other military intelligence agencies.
Section 704 clarifies the authority of the DoD's Defense
Mapping Agency to enter into cooperative agreements and other
arrangements with foreign governments. Section 705 extends to
DIA civilian employees certain medical benefits already enjoyed
by other Intelligence Community personnel stationed overseas.
Section 706 authorizes the "Exceptional Intelligence Community
Awards Program".
7. Title VIII bars employees within the Intelligence
Community for a period of two years following termination of
Government service from directly or indirectly accepting
employment, entering into any advisory, financial or other
relationship with a designated foreign power or providing
assistance, guidance, or information concerning intelligence to
such foreign powers. Heads of departments or agencies could,
however, exempt classes of employees from this prohibition.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
STAT
STAT
Nonexempt employees would be required to seek approval from
their former employing agency, and the head of the agency could
in his or her discretion approve or disapprove such
application. This title would provide for criminal penalities
of not more than $10,000 or imprisonment for no greater than
two years for violation of its provisions. Every agency within
the intelligence community would be required to promulgate
regulations to carry out the provisions of this title. For the
purpose of this title, a designated foreign power would include
all foreign countries, foreign political parties, all
governments in exile, and would include any quasi-governmental,
international or multinational organization.
8. Title IX contains the unauthorized disclosure (leaks)
provision included in the version of last year's bill sent to
OMB.
9. The shortened budget schedule mandated by the
"Gramm-Rudman-Hollings" Budget Act means that the entire
authorization/appropriation process will be compressed and
expedited this year. Specifically, OMB has requested a copy
of our authorization bill by this Friday, 24 January 1986.
In addition, Chairman Hamilton of HPSCI has requested that the
Committee receive a copy of the Administration's bill no later
than 7 February. Accordingly, we must receive your comments on
the bill no later than noon, Thursday, 23 January. Comments
received after this date will not be considered. Given the
limited time available before the bill must be transmitted to
OMB this Friday, there may not be a sufficient opportunity to
resolve major substantive disputes between agencies on specific
provisions of the bill. We have contacted OMB, however,
concerning the limited review the bill will receive prior to
transmittal tc that agency and OMB will ensure that each agency
has a fuller opportunity to review and comment upon the bill
during this additional OMB coordination process.
10. If you have any questions, please do not hesitate to
contact me on
Attachment:
as stated
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
STAT
STAT
DiEtribution:
Original - Leg/Sub - Intelligence Auth Act FY 87
1 - SWHermesIS igner
1 - IC Staff (Adm. Burkhalter)
2 - NSC Staff (deGraffenreid/Thompson)
1 - State (Levitt)
1 - DoD (Hess)
1 - DOA (Winchester)
1 - DOJ (Perkins)
2 - FBI (Moschella/Moran)
1 - DIA
2 - DIA
1 - NSA
1 - SA/DCI
1 - SA/DDCI
1 - DDI
1 - DDS&T
1 - DDA
1 - Inspector General
1 - DDO
1 - Comptroller
1 - General Counsel
1 - EXDIR
1 - C/LD/OLL
1 - D/OLL
1 - DD/OLL
1 - OLL Chrono
LEG/OLL 'ab(17 Jan 1986)
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
#4 - 20 January 1986
A BILL
To authorize appropriations for fiscal year 1987 for
intelligence and intelligence-related activities of the United
States Government, the Intelligence Community Staff, 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, that this
Act may be cited as the "Intelligence Authorization Act for
Fiscal Year 1987".
Authorization of Appropriations
SEC. 101. Funds are hereby authorized to be appropriated
for fiscal year 1987 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 the Treasury;
(8) The Department of Energy;
(9) The Federal Bureau of Investigation; and
(10) The Drug Enforcement Administration.
Classified Schedule of Authorizations
SEC. 102. The amounts authorized to be appropriated under
section 101, and the authorized personnel ceilings as of
September 30, 1987, 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 by the committee of conference to
accompany ( ) of the Ninety-Ninth Congress. That
Schedule of Authorizations shall be made available to the
Committee on Appropriations of the Senate and House of
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
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.
Personnel Ceiling Adjustments
SEC. 103. The Director of Central Intelligence may
authorize employment of civilian personnel in excess of the
numbers authorized for the fiscal year 1987 under sections 102
and 202 of this Act when he determines that such action is
necessary to the performance of important intelligence
functions, except that such number may not, for any element of
the Intelligence Community, exceed 2 per centum of the number
of civilian personnel authorized under such sections for such
element. 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.
TITLE II - INTELLICENCE COMMUNITY STAFF
Authorization of Appropriations
SEC. 201. There is authorized to be appropriated for the
Intelligence Community Staff for fiscal year 1987 the sum of
Authorization of Personnel End Strength
SEC. 202.(a) The Intelligence Community Staff is authorized
full-time personnel as of September 30, 1987. Such
personnel of the Intelligence Community Staff may be permanent
employees of the Intelligence Community Staff or personnel
detailed from other elements of the United States Government.
(b) During fiscal year 1987, personnel of the Intelligence
Community Staff shall be selected so as to provide appropriate
representation from elements of the United States Government
engaged in intelligence and intelligence-related activities.
(c) During fiscal year 1987, any officer or employee of
the United States or a member of the Armed Forces who is
detailed to the Intelligence Community Staff from another
element of the United States Government shall be detailed on a
reimbursable basis, except that any such officer, employee or
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
member may be detailed on a nonreirhurEULle basis for a period
of less than one year for the performance of temporary
functions as required by the Director of Central Intelligence.
Intelligence Community Staff Administered
in Same Manner as Central Intelligence Agency
SEC. 203. During fiscal year 1987, activities and
personnel of the Intelligence Community Staff shall be subject
to the provisions of the National Security Act of 1947 (50
U.S.C. 401 et seq.) and the Central Intelligence Agency Act of
1949 (50 U.S.C. 403a et seq.) in the same manner as activities
and personnel of the Central Intelligence Agency.
TITLE III - CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY SYSTEM
Authorization of Appropriations
SEC. 301. There is authorized to be appropriated for the
Central Intelligence Agency Retirement and Disability Fund for
fiscal year 1987 the sum of
TITLE IV - ADMINISTRATIVE PROVISIONS RELATED
TO INTELLIGENCE AGENCIES
CIA and NSA Record Destruction Schedules
SEC. 401. Section 3303a of Title 44, United States Code,
is amended by adding at the end thereof the following new
subsection:
"(g) The requirement in subsection (a) of this section
that the Archivist provide notice in the Federal Register
of the list and schedule of records proposed for disposal
shall not apply to the Central Intelligence Agency or the
National Security Agency.".
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Interlocutory Appeal Authority
SEC. 402. The National Security Act of 1947 (50 U.S.C.
401 et seq.) is amended by adding after Section 102a the
following new section:
"SEC. 102b. In any civil action, suit, or proceeding
in which the United States or any officer, employee or agent
thereof is a party, or in which the United States has an
interest, an interlocutory appeal may be taken as of right from
a decision of any court of the United States, or a judge
thereof, on any evidentiary or discovery matters,
or potentially dispositive motions, if the Director of Central
Intelligence certifies that the decision will have an adverse
impact upon the national security of the United States. In
such cases, appeal may be taken upon application of the
Attorney General to the appropriate courts of appeals, which
shall have jurisdiction of appeals under this provision, except
where direct review may be had in the Supreme Court. A stay of
all proceedings shall be granted pending disposition of the
appeals.".
Retirement Benefits for Agency Employees Serving
in Unhealthful Areas
Sec. 403. The Central Intelligence Agency Act of 1949 (50
U.S.C. 403a et seq.) is amended by adding at the end thereof
the following new section:
SEC. 16. The provisions of subsection 251(b) of the
Central Intelligence Agency Retirement Act of 1964 for Certain
Employees (50 U.S.C. 403 note) authorizing the Director of
Central Intelligence to establish a list of unhealthful posts
for which an extra retirement credit for service at such posts
may be provided to an Agency employee who is a participant in
the Civil Service Retirement and Disability System or in a new
Government retirement system as defined in the Federal
Physicians Comparability Allowance Act of 1978, as amended,
in the same manner and to the same extent in the case of an
Agency employee who is a participant in the Central
Intelligence Agency Retirement and Disability System.".
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Protection of Agency Activities
SEC. 404. (a) The Central Intelligence Agency Act of 1949
(50 U.S.C. 403a et seq.) is amended by adding at the end of
Section 16 the following new section:
"SEC. 17. In its discretion, the Agency may, on the
grounds of prior or current alcohol or drug abuse,
deny to or remove from any individual access to classified
information; refuse to hire any applicant for Agency
employment; and terminate, suspend, or place limitations or
conditions on the continued employment of any Agency employee,
notwithstanding any other provisions of law.".
(b) The National Security Agency Act of 1959 (50 U.S.C. 402
note) is amended by redesignating section 2 as section 2(a),
and by adding at the end thereof the following new subsection:
"b) The Secretary of Defense (or his designee for the
purpose) may, in his discretion, on the grounds of prior or
current alcohol or drug abuse, deny to or remove from any
individual access to classified information; refuse to hire any
applicant for Agency employment; and terminate, suspend, or
place limitations or conditions on the continued employment of
any Agency employee, notwithstanding any other provisions of
law."
Modification of Certain Liabilities
of Intelligence Community Personnel
SEC. 405. The National Security Act of 1947 (50 U.S.C. 401
et seq.) is amended by adding at the end thereof the following
new section:
"SEC. 1001. Modification of Certain Liabilities of
Intelligence Community Personnel
"(a) The remecy against the United States provided by
sections 1346(b) and 2672 of the title 28 of the United States
Code for claims for injury or loss of property, or personal
injury or death, resulting from the negligent or wrongful act
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
or omission of any officer or employee of the Intelligence
Community while acting within the scope of his office or
employment shall hereafter be exclusive of any other civil
action or proceeding, arising out of or relating to the same
subject matter, against the officer or employee whose act or
omission gave rise to the claim, or against the estate of such
officer or employee.
"(b) The United States shall be liable, to the extent that
liability for such tort is recognized or provided by applicable
Federal law, for claims for money damages sounding in tort
arising under the Constitution of the United States resulting
fror:. an act or omission of any officer or employee of the
Intelligence Community while acting within the scope of his
office or employment. Such claims shall be treated in the same
manner as claims cognizable under section 1346(b) and 2672 of
title 28 of the United States Code. The remedy against the
United States provided by this subsection shall hereafter be
exclusive of any other civil action or proceeding, arising out
of or relating to the same subject matter, against any officer
or employee whose act or omission gave rise to any such claims,
or against the estate of the officer or employee. This remedy
shall be deemed an equally effective substitute for any
recovery against the officer or employee in his individual
capacity directly under the Constitution. The United States
shall not be liable for interest prior to judgment or for
punitive damages.
"(c) The Attorney General shall defend any civil action or
proceeding brought in any court against any person referred to
in subsection (a) and (b) of this section (or the estate of
such person) for any such claims. Any such person against whom
such civil action or proceeding is brought shall deliver within
such time after date of service or knowledge of service as
determined by the Attorney General, all process served upon
such person or any attested true copy thereof to such person's
immediate superior or to whomever was designated by the Federal
agency, which employed the individual at the time of the
alleged act or omission that gave rise to the action or
proceeding, to receive such papers and such person shall
promptly furnish copies of the pleading and process therein to
the United States attorney for the district embracing the place
wherein the action or proceeding is brought, to the Attorney
General and to the head of that Federal agency.
"(d) Upon certification by the Attorney General that the
defendant officer or employee was acting within the scope of
his office or employment at the time of the incident out of
which the action arose, any civil action or proceeding
commenced in the United States district court shall be deemed
an action against the United States under the provisions of
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
title 28 of the United States Code and all references thereto,
and the Unites; States shall be substituted as the party
defendant.
"(e) Upon: certification by the Attorney General that the
defendant officer or employee was acting within the scope of
his office or employment at the time of the incident out of
which the action arose, any civil action or proceeding
described in subsection (c) which is commenced in a State court
shall be removed, without bond, at any time before trial, by
the Attorney General to the district court of the United States
for the district and division embracing the place in which the
action or proceeding is pending. Such action shall be deemed
an action brought against the United States under the provision
of title 28 of the United States Code and all references
thereto, and the United States shall be substituted as the
party defendant. The certification of the Attorney General
shall conclusively establish scope of office or employment for
purposes of removal.
"(f) In any civil action or proceeding brought under this
section, the United States shall have available all defenses
heretofore available to the officer or employee whose act or
omission gave rise to the claim, and all defenses to which it
would have been entitled if the action had originally been
commenced against the United States under section 1346(b) and
sections 2671 through 2680 of title 28 of the United States
Code, except that section 2680(k) shall not apply to any cause
of action covered by this section.
"(g) The Attorney General may compromise or settle any
claim asserted in any such civil action or proceeding in the
manner provided in section 2677 or title 28 of the United
States Code, and with the same effect.".
TITLE V - SUPPORT FOR DEFENSE INTELLIGENCE
COLLECTION ACTIVITIES
SEC. 501. Subtitle A of Title 10, United States Code, is
amended bi adding the following new chapter after Chapter 18:
"CHAPTER 19 - SUPPORT FOR INTELLIGENCE
SEC.
391. Purpose of this chapter.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
392. Definition.
393. Authority to conduct commercial cover.
394. Authority to acquire logistic support, suppliE:, and
services.
395. Oversight.
396. General Provisions.
"SEC. 391. Purpose of this chapter.
The purpose of this chapter is to provide clear
authority for the Secretary of Defense or the Secretarie of
the Military Departments to conduct support activities
necessary for authorized and appropriately coordinated
intelligence collection activities of the Department of
Defense.
a. "Intelligence collection activities" means the
collection of foreign intelligence or counterintellicence
information by intelligence components of the Department of
Defense.
b. "Intelligence support activities" means those
activities described in sections 393 and 394, below.
c. "Foreign intelligence" means information relating
to the capabilities, intentions, and activities of foreign
powers, organizations, or persons, but not including
counterintelligence except for information on international
terrorist activities.
d. "Counterintelligence" means information Qzthered
and activities conducted to protect against espionage,
other intelligence activities, sabotage, or assassination
conducted for or on behalf of foreign powers,
organizations or persons, or international terrorist
activities, but not including personnel, physical, document
or communications security programs.
e. "Commercial cover" means a business entity that is
established solely to conceal the role of an intelligence
component of the Department of Defense as it performs
intelligence collection activities.
"SEC. 393. Authority to conduct commercial cover.
a. "The Secretary of Defense or the Secretaries of
the Military Departments, after consultation with the
Director of Central Intelligence and the Director of the
Federal Bureau of Investigation, as appropriate, may
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
establish and conduct commercial entities such as
corporations, partnerships, sole proprietaries, and other
lusiness entities as commercial covers to support
intelligence collection activities of the Department of
Defense, as defined herein. Such commercial entities may
be established only upon written certification by the
Secretary concerned that commercial cover is necessary
to the conduct of authorized intelligence collection
activities.
b. "The establishment and operation of commercial
entities pursuant to this section shall be in accordance
with prevailing commercial practices so long as such
practices are not inconsistent with the purposes of
commercial cover. To this end, laws applicable to federal
appropriations, federal property management, federal
acquisitions, federal employment and government
corporations shall not apply to the establishment and
operation of commercial covers upon the written
certification by the Secretary concerned or his designee
for the purpose that the application of such laws would
risk the compromise of commercial cover.
C. "The Secretary of Defense or the Secretaries of
the Military Departments, or their designees, are
authorized to deposit and withdraw funds appropriated for
the Department of Defense used to conduct commercial cover
and funds generated by the business entities authorized by
this section in banks or other financial institutions.
d. "Funds generated by such business entities may be
used to offset necessary and reasonable expenses incurred
by the commercial cover. As soon as practicable, funds
generated by a commercial cover that are no longer
necessary for the conduct of that commercial cover shall
be deposited in the Treasury of the United States as
miscellaneous receipts.
e. "Upon the liquidation, dissolution, sale, or other
final disposition of a commercial cover established and
conducted under the provisions of this section, the funds,
after obligations are met, shall be deposited in the
Treasury of the United States as miscellaneous receipts.
"SEC. 394. Authority to acquire logistic support,
supplies, and services.
a. "Subject to the availability of appropriations,
the Secretary of Defense or the Secretaries of the Military
Departments, or their designees, may acquire any goods,
services, property, buildings, facilities, space,
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
insurance, licenses and any equipment necessary in order to
establish or maintain a commercial cover.
b. "Acquisitions made under the provisions of this
section are to be made utilizing procedures consistent with
prevailing commercial practice so long as such practices
are not inconsistent with the purposes of the commercial
cover. To this end, laws applicable to federal
acquisitions, federal appropriations, federal property
management, and federal employment shall not apply where
the application of such laws would risk compromise of the
commercial cover.
"SEC. 395. Oversight.
"The Secretary of Defense shall establish a system to
ensure oversight of and accountability for the intelligence
support activities conducted pursuant to sections 393 and 394
of this title.
a. "The intelligence support activities authorized
pursuant to sections 393 and 394 may be conducted only in
accordance with regulations promulgated by the Secretary of
Defense.
b. "The Secretary of Defense or Secretaries of the
Military Departments shall ensure that elements of the
Department of Defense that undertake intelligence support
activities pursuant to this chapter conduct an annual
review and audit of such support activities and shall
ensure that the House Permanent Select Committee on
Intelligence and the Senate Select Committee on
Intelligence are kept fully and currently informed of such
activities, as prescribed in section 413 of Title 50.
c. "Intelligence support activities authorized under
this chapter shall be protected pursuant to 50 U.S.C.
403(d)(3).
d. "The table of chapters at the beginning of
subtitle A of such title and at the beginning of Part I of
such subtitle are each amended by inserting after the item
relating to chapter 18 the following new item:
"19. Support for Intelligence ......... 391".
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
TITLE VI - ENHANCED FBI COUNTERINTELLIGENCE
CAPABILITIES
Improved Access to Financial Records in Connection
with Counterintelligence Investigations
SEC. 601. Section 1114 of the Right to Financial Privacy
Act of 1978 (12 U.S.C. 3414) is amended by:
(a) deleting subparagraph (A) from paragraph (1) of
subsection (a), beginning with the dash that follows the word
"from," and ending with the letter "(B)"; and
(b) adding at the end of that section the following new
subsection:
"(c)(1) Notwithstanding any provisions of federal, state,
local or foreign law to the contrary, a financial institution,
or officer, employee, or agent of a financial institution,
shall provide access to, and copies of, financial records of a
customer that are responsive to a request made by a Government
authority authorized to conduct foreign intelligence or
counterintelligence activities, for purposes of conducting such
activities;
"(2) A request for access to, or copies of, financial
records, for foreign intelligence or counterintelligence
purposes, by a Government authority authorized to conduct such
activities, shall include the certificate required in section
3403(b) of this Title, signed by a supervisory official of a
rank designated by the head of the Government authority.
"(3) No financial institution, or officer, employee, or
agent of such institution, shall disclose to any person that a
Government authority described in paragraph (1) has sought or
obtained access to a customer's financial records.
"(4) The Government authority specified in paragraph (1)
shall compile an annual tabulation of the occasions in which
this section was used.
"(5) The provisions of sections 3415, 3417, 3418 and
3421(b) shall apply to requests made pursuant to this
subsection."
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Improved Access to Tux R~_ccrds in Connection
with Counterintellicenc_ Investigations
SEC. 602. Section 6103(i) of title 26, United States Code
is amended by adding at the end thereof the following new
paragraph:
"(8) Federal Bureau of Investigation Counterintelligence
Activities --Upon a determination by the Attorney General or
his designee that there is prod-able cause to believe that a
taxpayer is a foreign power or an agent of a foreign power (as
defined in section 101 of the Foreign Intelligence Surveillance
Act of 1978 (50 U.S.C. 1801)), the return of the taxpayer and
return information which relates to such taxpayer shall, upon
request for foreign counterintelligence purposes by the Federal
Bureau of Investigation approved by the Attorney General, be
open (to the extent of the approved request) to inspection by,
or disclosure to, the Federal Bureau of Investigation. The
Federal Bureau of Investigation is authorized to transfer
taxpayer information obtained pursuant to this subsection to
another federal agency or department when it is relevant to
foreign counterintelligence matters within the jurisdiction of
that agency or department.".
Access to Telephone Toll Records
SEC. 603. (a) Chapter 33 of title 28 is amended by adding
at the end thereof the following new section:
"SEC. 538. Access to Telephone Toll Records
(a) Upon receipt of a certification signed by the
Director of the Federal Bureau of Investigation or a
supervisory official of a rank designated by the
Director, that the Federal Bureau of Investigation is
conducting a foreign counterintelligence investigation
in accordance with applicable guidelines established
by the Attorney General of the United States, a
communications common carrier shall produce requested
telephone subscriber information and toll billing
record information.
(b) No officer, employee, or agent of the
communications common carrier shall disclose to any
person that the Federal Bureau of Investigation has
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
sought or obtained access to the subscriber
information and/or toll billing record information.
(c) The Federal Bureau of Investigation is authorized
to disseminate information obtained pursuant to this
section to other agencies within the Intelligence
Community, as defined in Executive Order 12333 or
successor orders, when the information is relevant to
foreign counterintelligence responsibilities of such
agency."
(b) The table of contents for chapter 33 of title 28,
United States Code is amended by adding at the end thereof the
following:
"538. Access to Telephone Toll Records.".
Authority to Expend Funds for Consultation
with Foreign Officials
SEC. 604. The Federal Bureau of Investigation and the
Department of Defense are authorized to make payments from
their appropriation for expenses incurred while hosting foreign
officials who have counterintelligence responsibilities in
their own countries while traveling to the United States for
consultation.
Criminal Records
SEC. 605. (a) Section 9101 of title 5, United States Code is
amended:
(1) in paragraph (1) of subsection (b) by striking out "or"
after "Office of Personnel Management" and by inserting ", or
the Federal Bureau of Investigation" after "the Central
Intelligence Agency;"
(2) in subparagraph (3)(A) of subsection (b) by striking
out "or" after "Office of Personnel Management" and by
inserting ", or the Federal Bureau of Investigation" after "the
Central Intelligence Agency;"
(3) in subparagraph (3)(B) of subsection (b) by striking
out "or" after "Office of Personnel Management" and by
inserting ", or the Federal Bureau of Investigation" after "the
Central Intelligence Agency;" and
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
(4) in subsection (c) by striking out "or" after "Office of
Personnel Management" and by inserting ", or the Federal Bureau
of Investigation" after "the Central Intelligence Agency."
(b) Section EC3(a) of title 8 of the intelligence
Authorization Act for Fiscal Year 1986 is amended by striking
out "and" after tre "the Office of Personnel Management" and by
inserting ", and the Federal Bureau of Investigation" after
"the Central Intelligence Agency".
(c) The amendments made by this Section of this Act shall
become effective with respect to any inquiry which begins after
the date of enactrent of this Act conducted by the Federal
Bureau of Investigation for purposes specified in paragraph
(b)(1) of section 9101 of Title 5.
TITLE VII - DOD ADMINISTRATIVE AND PERSONNEL
I MPROVEMENTS
Secure Promotions for Military Intelligence Officers
SEC. 701. (a) Section 624 of title 10, United States Code,
is amended:
(1) by adding immediately after the "(c)" in subsection
624(c) the paragraph designator "(1)"; and
(2) By adding at the end of paragraph (c)(1) the
following new paragraph:
"(2) Upon determination by the Secretary concerned
that the appointment procedures in paragraph (c)(1)
may be harmful to the safety and well being of an
officer because of that officer's participation in
classified intelligence operations or that such
procedures with respect to a specific officer could
compromise classified intelligence operation,
the Secretary of Defense shall approve the
use of a secure promotion list for the appointment of
affected officers and shall present such list to the
President. The President alone may appoint the
officers on that list in grades below Brigadier
General or Rear Admiral (lower half). The Secretary
of Defense shall report on the number of officers
promoted at least once a year to the Committees
on Armed Services of the Senate and House of
Representatives."
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
(b) The provisions of section 701 (a) of this Act are
effective upon the date of its enactment, except that an
officer of an armed force who, since September 15, 1981, hay
/been recommended by a selection board convened under this
Chapter 36 of title 10, United States Code, for promotion to a
grade below Brigadier General or Rear Admiral (lower half) and
who has not been promoted because to do so would have
compromised a classified intelligence operation or been harmful
to the safety or well being of the officer may be:
(i) promoted by the President alone; (ii) provided an effective
date of promotion for all purposes, to include pay and
allowances and eligibility for consideration for promotion to
the grade above that for which previously selected by a special
board convened under 10 U.S.C. 628(a)(1); and (iii) provided a
date of rank and position on the active-duty list that such
officer would have had if his or her name had been included on
the list from which that officer was excluded for security
purposes and which list was approved by the President and
forwarded to the Senate. An officer promoted under this
section shall not, during the fiscal year in which promoted, be
counted against any strength in grade limitation established by
law.
(c) The Secretary concerned is authorized to adjust:
(i) the effective date of promotion for all purposes, to
include pay and allowances and eligibility for consideration to
the next higher grade by a special selection board convened
under 10 U.S.C. 628(a)(1); and (ii) the date of rank and
position on the active-duty list of officers whose appointment
under Chapter 36 of title 10, United States Code, in grades in
which they are currently serving was delayed because of their
participation in a classified intelligence operation.
(d) The Secretary concerned is authorized, without regard
to 10 U.S.C. 1552 or the procedures established thereunder, and
without application by the officer concerned, to correct the
records of the officers concerned to reflect actions taken
under sections 706(b) and (c) above. Except when procured by
fraud, a correction under this section is final and conclusive
on all officers of the United States. The Secretary of Defense
shall include in the report required by subsection 701(a) of
this Act the number of officers promoted under this section.
(e) The authority to take actions under subsections 701(b) -
(d) of this Act shall expire on September 30, 1987.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Extension of Secretary's Termination Authority for
DIA Civilian Personnel
SEC. 702. Paragraph 1604(e)(1) of chapter 83 of title 10,
United States Code, is amended by striking out "1985 and 1986"
and inserting in lieu thereof "1987 and 1988".
Extension of Certain Personnel Management Authorities
to Military Intelligence Agency Personnel
SEC. 703. (a) Section 1604 of Title 10, United States Code, is
amended:
(1) in paragraph (1) of subsection (a) by inserting--
(a) after "Defense Intelligence Agency" the phrase
"and such positions for civilian intelligence officers and
employees of the military departments"; and
(b) after the phrase "the functions of such Agency"
the words "and departments";
(2) in subsection (b) by inserting--
(a) after the phrase "Except in the case of an officer
or employee of the Defense Intelligence Agency" the phrase "or
a civilian intelligence officer or employee of the military
departments";
(b) between the word "Intelligence" and the phrase
"Senior Executive Service" the phrase "or Military Department";
and
(c) after the phrase "no officer or employee of the
Defense Intelligence Agency" the phrase "or civilian
intelligence officer and employees of the military departments";
(3) in subsection (c) by inserting after the phrase "in or
under which the Defense Intelligence Agency" the phrase "or the
military departments";
(4) in subsection (d) by inserting after the phrase
"officers and employees of the Defense Intelligence Agency" the
phrase "or civilian intelligence officers and employees of the
military departments";
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
(5) after subsection (d), by adding the following new
subsection:
"(e) With respect to the military cepartr,ents, the
Secretary of Defense may delegate authority under this
subsection only to the Secretaries of the military
departments."
(6) by redesignating the current subsection (e) as
subsection (f) and in the redesignated subsection (f)
inserting --
(a) in paragraph 1 after the phrase "terminate the
employment of any civilian officer or employee of the Defense
Intelligence Agency" the phrase "or may, during the fiscal
years 1987 and 1988, terminate the employment of any civilian
intelligence officer or employee of the military departments";
and
(b) in paragraph 3 the phrase "With respect to the
Defense Intelligence Agency" before the phrase "the Secretary
of Defense may delegate";
(7) by adding at the end of the redesignated subsection (f)
the following new paragraph:
"(4) With respect to the military departments, the
Secretary of Defense may delegate authority under this
subsection only to the Secretaries of the military
departments. An action to terminate any civilian
intelligence officer or employee by the Secretary of any
military department shall be appealable to the Secretary of
Defense.".
(b) The title of Chapter 83 of title 10, United States
Code, "DEFENSE INTELLIGENCE AGENCY CIVILIAN PERSONNEL" is
amended by inserting after the word "PERSONNEL" the phrase "AND
CIVILIAN INTELLIGENCE OFFICERS AND EMPLOYEES OF THE MILITARY
DEPARTMENTS".
(c) The title of Chapter 83 in the table of contents of
Part II of title 10 is amended to read as follow:
"83. Defense Intelligence Agency Civilian Personnel and
Civilian Intelligence Officers and Employees of the Military
Departments.......... .. ...............................1601".
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Clarification of Defense Mapping Agency Authorities
SEC. 704.(a) Chapter 167 of title 10, United States Code
is amended by adding at the end thereof the following:
to 2795. Exchange of flapping, Charting and Geodesy
Data with Foreign Nations.
"The Secretary of Defense may, under such regulations as
are deemed appropriate, authorize the Defense Mapping Agency to
exchange or furnish mapping, charting and geodetic data,
supplies or services to a foreign country or international
organization pursuant to an agreement for the production or
exchange of such data.".
(b) The table of contents of Chapter 167 of Title 10,
United States Code is amended by adding at the end thereof:
to 2795. Exchange of Mapping, Charting and Geodesy Data
with Foreign Nations.".
Overseas Medical Care for DIA Civilian Employees
Stationed Overseas
SEC. 705. Subsection 1605(a) of chapter 83 of title 10,
United States Code, is amended:
(1) by striking out "paragraphs (2), (3), (4), (6), (7),
(8), and (13)" and inserting in lieu thereof
"paragraphs (2), (3), (4), (5), (6), (7), (8), and
(13)"; and
(2) by striking out within the parentheses at the end of
subsection (a) "22 U.S.C. 4081 (2), (3), (4), (6), (7),
(8), and (13)" and inserting in lieu thereof "22 U.S.C.
4081 (2), (3), (4), (5), (6), (7), (8), and (13)".
Exceptional Intelligence Community Awards Program
SEC. 706.(a) Chapter 57 of title 10, United States Code is
amended by inserting after section 1124 the following new
section:
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
"1124a. Cash awards for exceptional foreign
intelligence collection
"(a) Under regulations promulgated by the Director
of Central Intelligence, a member of the armed forces
may accept a cash award made in recognition of the
member's exceptional performance while serving on
active duty in collecting or reporting foreign
intelligence information affecting the national
security of the United States. A cash award under
this section is in addition to the pay and allowances
of the recipient.
(b) An award under this section may be paid
notwithstanding the member's death, separation, or
retirement from the armed force concerned.";
(b) The table of contents at the beginning of chapter 57
of title 10 is amended by inserting after section 1124 the
following new item:
"SEC. 1124a. Cash awards for exceptional foreign
intelligence collection"; and
(c) The amendment made by this section shall apply only to
awards made after September 30, 1986.
TITLE VIII - RESTRICTIONS ON ASSISTANCE TO
FOREIGN POWERS BY FORMER INTELLIGENCE OFFICERS
OR EMPLOYEES
SEC. 801. The National Security Act of 1947 is amended by
adding at the end thereof the following new title:
"TITLE VIII - RESTRICTIONS ON ASSISTANCE TO
FOREIGN POWERS BY FORMER INTELLIGENCE OFFICERS
OR EMPLOYEES
"(a) No person, having been at any time within the
preceding two years an officer or employee of an agency within
the Intelligence Community, shall without written approval to
do so from the intelligence agency which employed such
individual: i) enter into (either directly or indirectly) any
employment, advisory, financial or other relationship, whether
paid or unpaid, with a designated foreign power; ii) provide
aid, services or assistance to a designated foreign power; or,
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
iii) provide guidance, assistance or information to a
designated foreign power concerning intelligence, or
information derived from or directly related to an officer or
employee's former position within the Intelligence Community.
"(b) Subsection (a) of this section shall not apply to an
officer or employee of a department, agency, or independent
establishment of the United States who enters into an
employment, advisory, financial or other relationship with a
designated foreign power or who provides aid, services or
assistance to a designated foreign power in the course of
official duties as such officer or employee.
"(c) The head of an intelligence agency may in his
discretion waive the applicability of subsection (a) of this
section to any particular person, or class of persons, formerly
employed by such agency, to whom subsection (a) would otherwise
apply.
"802. Required Reports
"(a) A person seeking approval to enter into a
relationship or engage in activities which would otherwise be
prohibited by section 801 of this title shall apply to the last
intelligence agency which employed such person for approval and
shall submit the following information:
(i) the foreign power involved;
(ii) the nature of the activity or relationship and
anticipated duration of the activity or relationship;
(iii) the identities of any persons on whose behalf the
applicant will be acting in the course of the activity
or relationship; and
(iv) such other information as the head of the intelligence
agency shall require to carry out this title.
"(b) The head of an intelligence agency to which
application is made in accordance with subsection (a) of this
section may in his discretion grant approval to enter into a
relationship or engage in a particular activity if he concludes
that the relationship or activity: (i) will not involve the
unauthorized disclosure or use of information classified
pursuant to statute or Executive Order; and, (ii) will not be
inconsistent with national security. The head of the
intelligence agency may in his discretion place conditions upon
the grant of approval consistent with national security. All
grants of approval, including any applicable conditions, shall
be in writing.
"(c) A grant of approval in accordance with subsection (b)
of this section shall not affect any potential civil or
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
criminal lial_ility, under any provisions of law other than the
provisions cf this title, of the person to whom approval is
granted.
"803. Continuing Duty To Report
"(a) Every person granted approval to enter into a
relationsh:i or engage in an activity in accordance with
section 802 of this title and who continues to be subject to
section 801 of this title shall file with the intelligence
agency which granted the approval a report for each calendar
year durinc the continuation of the financial relationship or
activity. Such reports shall be filed within 30 days after the
end of the calendar year.
"(b) Every person granted approval to enter into a
relationship or engage in an activity in accordance with
Section 8C2 of this title shall file a report of any material
change in circumstances affecting the relationship or activity
with the intelligence agency which granted the approval within
ten days of the occurrence of such change. The head of the
intelligence agency may in his discretion require a person
reporting a material change to apply for a new grant of
approval for the relationship or other activity in accordance
with section 802 of this title. If the head of the
intelligence agency declines to grant a new approval in
accordance with section 802 of this title, the person who filed
a report of a material change shall terminate the relationship
or other activity within ten days after receiving actual notice
that the head of the intelligence agency has declined to grant
a new approval.
"(c) Every person granted approval to enter into a
relationship or engage in an activity in accordance with
section 802 of this title shall file a report within 30 days of
the termination of the financial transaction or other
relationship with the intelligence agency which granted the
approval.
"(d) Reports required to be filed by this section shall
contain such other information as the head of the intelligence
agency with which the report must be filed may require to carry
out the provisions of this title.
"804. False, Misleading, Or Missing Information
"(a) It shall be unlawful to fail to file any report
required to be filed by Section 803 of this title. Such
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
failure to file shall be considered a continuing offense for as
long as such failure exists, notwithstanding any statute of
limitations or other statute to the contrary.
"(b) It shall be unlawful to make any false or untrue
statement of material fact, or to omit a material fact
necessary to make any statement made not misleading with
respect to any material fact, in connection with the filing of
any applications or reports required by this title.
"(c) It shall be unlawful to omit from an application or
report required by this title any information which the
application or report is required to contain.
"(a) Whoever willfully violates section 801, subsection
802(a), section 803, section 804 of this Title, or any
regulation issued in accordance with section 806 of this title,
shall be fined not more than $10,000 or imprisoned not more
than two years, or both; but no person shall be subject to
imprisonment under this subsection for the violation of any
regulation if he proves that he had no actual knowledge of such
regulation.
"(b) Whenever in the judgment of the Attorney General any
person is engaged in or about to engage in any acts which
constitute or will constitute a violation of any provision of
this title, or regulations issued thereunder, or otherwise is
in violation of the Title, the Attorney General may make
application to the appropriate United States district court for
an order enjoining such acts, or for an order requiring
compliance with any appropriate provision of the title or
regulation thereunder. The district court shall have
jurisdiction and authority to issue a temporary or permanent
injunction, restraining order or such other order which it may
deem proper. The proceedings shall be made a preferred cause
and shall be expedited in every way.
"806. Regulations
"The several heads of agencies within the Intelligence
Community shall issue such regulations as may be appropriate to
carry out the provisions of this title.
"There is jurisdiction over an offense or violation under
this title committed outside the United States
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
if the individual committing the offense or violation is a
citizen of the United States or an alien lawfully admitted to
the United States for permanent residence as defined in section
101(a)(20) of the Immigration and Nationality Act
(8 U.S.C. 101 (a) (20) ) .
"For purposes of this title:
(1) The term 'intelligence agency' or 'agency within the
Intelligence Community' shall mean: the Departments
of State, the Treasury, Defense, and Energy; the
Central Intelligence Agency; the Federal Bureau of
Investigation; such other components of the United
States Government as the President may designate as
intelligence agencies or agencies within the
Intelligence Community; the Senate Select Committee on
Intelligence and the House Permanent Select Committee
on Intelligence.
(2) The term 'officer or employee' shall mean any person
who is--
(a) employed by an intelligence agency or assigned or
detailed to such agency and assigned to a
component with responsibility for the conduct
of: (i) foreign intelligence activities, (ii),
counterintelligence activities, or (iii) special
activities conducted in support of national
foreign policy objectives abroad which are
planned and executed so that the role of the
United States Government is not apparent or
acknowledged publicly;
(b) employed by the Central Intelligence Agency;
(c) employed by the Federal Bureau of Investigation;
(d) employed by the National Security Agency
(e) a Chief of mission or a member of the United
States Foreign Service;
(f) A commissioned, warrant, or noncommissioned
officer in the armed forces of the United States;
(g) a member of the armed forces who is assigned to
the United States Army Special Forces; or
(h) a staff employee of the Senate Select Committee
on Intelligence or the House Permanent Select
Committee on Intelligence.
(3) The term 'designated foreign power' shall mean:
(a) a government of a foreign country, a foreign
political party, faction, entity or a government
in exile of a foreign country;
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
(b) any unit of a foreign government, including any
foreign national state, local and municipal
government;
(c) any international or multinational organization
whose membership is composed of any unit of
foreign government; and,
(d) any agent or representative of any such unit or
or such organization while acting as such.".
TITLE IX - UNAUTHORIZED DISCLOSURE OF CLASSIFIED
INFORMATIO11,
SEC. 901. 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 - UNAUTHORIZED DISCLOSURE OF CLASSIFIED
INFORMATION
SEC. 901.(a) Whoever, being or having been an officer of
employee of the United States or a person having or having had
authorized access to classified information, willfully
discloses or attempts to disclose, any classified information
to a person who is not an officer or employee of the United
States and who does not have authorized access to classified
information, shall be fined not more than $25,000, or
imprisoned not more than five years, or both.
(b) Whoever, being or having been an officer or
employee of the United States or a person having had authorized
access to classified information, willfully aids or abets the
violation of subsection (a), shall be fined not more than
$25,000, or imprisoned not more than five years, or both.
(c) As used in this section --
(i) the term "classified information" means any
information or material that has been determined by the United
States Government pursuant to an Executive Order, statute or
regulation, to require protection against unauthorized
disclosure for reasons of national security;
(ii) the term "disclose" or "discloses" means to
communicate, furnish, deliver, transfer, impart, provide,
publish, convey, or otherwise make available;
(iii) the term "authorized access" means having
authority, right, or permission to receive classified
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
information or material within the scope of authorized
government activities or pursuant to the provisions of
a statute, Executive order, directive of the head of any
department or agency who is empowered to classify information,
order of any United States court, or provisions of
any rule or resolution of the House of Representatives or the
Senate which governs the handling of classified information by
the respective House of Congress.
(d) Nothing in this section shall be construed to
establish criminal liability for disclosure of classified
information in accordance with applicable law to:
(i) any court of the United States, or judge or justice
thereof; or
(ii) the Senate or House of Representatives, or any
committee or joint committee thereof.
(e) It is an affirmative defense to a prosecution under
this section that:
(i) before the defendant's disclosure, the information
that provides the basis for prosecution under this section
officially had been disclosed publicly; or
(ii) the defendant did not obtain the classified
information that provides the basis for prosecution under this
section as a result of his duties as an officer or employee of
the United States, or as a result of authorized access to
classified information; or
(iii) the defendant has submitted the information that
provides the basis for prosecution under this section to a
department or agency of the United States for prepublication
review, whether under a contract which provides for such review
or otherwise, or for declassification review pursuant to the
provision of an Executive order, and (a) the United States
informed defendant that it did not object to disclosure, or (b)
the United States objected to such disclosure, or denied
declassification, and such objection or denial was overruled in
a final opinion or ruling of a court of the United States.
(f) Prosecution under this section shall be barred unless,
prior to the return of an indictment or the filing of any
information, the Attorney General and the head of the
department or agency responsible for the classified information
jointly certify in writing that, at the time of the disclosure,
the information constituted properly classified information.
Such certification shall be conclusive as to the propriety of
the classification except that, if a defendant demonstrated
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
that the information that provides the basis for prosecution
under t~,is section was available from public sources or makes a
prima facie showing that the information did not meet the
substantive criteria for classification under applicable law,
the prosecution may proceed if the United States establishes
that the information, at the time of the disclosure, was
properly classified because the particular disclosure reasonably
could be expected to damage the national security. The court,
based u-.-,on submissions of defendant and the United States, shall
determine whether the information was properly classified.
Upon reuest of the United States, the court's determination
of the issue shall be in camera, ex parte. Any determination
by the court on the proprietary of the classification shall be
de novo and a matter of law, and shall be conclusive except as
provided in subsection (g) below.
(g) An interlocutory appeal by the United States shall lie
to a court of appeals from a decision or order of the court
with respect to the propriety of the classification of the
information that provides the basis for prosecution under this
section.
(h) There is jurisdiction under this section over an
offense committed outside the United States."
Authority for Conduct of Intelligence Activities
SEC. 1001. 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 laws of the United States.
Increase in Employee Benefits Authorized by Law
SLC. 1002. 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 benefits
authorized by law.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
INTELLIGENCE AUTHORIZATION ACT FOR
FISCAL YEAR 1987
SECTION-BY-SECTION ANALYSIS
AND EXPLANATION
Section 101 lists the departments, agencies, and other
elements of the United States Government for whose intelligence
and intelligence-related activities the Act authorizes
appropriations for fiscal year 1987.
Section 102 makes clear that details of the amounts
authorized to be appropriated for intelligence and
intelligence-related activities and personnel ceilings covered
under this title for fiscal year 1987 are contained in a
classified Schedule of Authorizations. The Schedule of
Authorizations is incorporated into the Act by this section.
Section 103 authorizes the Director of Central Intelligence
in fiscal year 1987 to expand the personnel ceilings applicable
to the components of the Intelligence Community under Sections
102 and 202 by an amount not to exceed 2 percent of the total
of the ceilings applicable under these sections. The Director
may exercise this authority only when necessary to the
performance of important intelligence functions or to the
maintenance of a stable personnel force, and any exercise of
this authority must be reported to the two intelligence
committees of the Congress.
Section 201 authorizes appropriations in the amount of
for the staffing and administration of the
Intelligence Community Staff.
Section 202 provides details concerning the number and
composition of Intelligence Community Staff personnel.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Subsection (a) authorizes full-time personnel for the
Intelligence Community Staff for fiscal year 1987, and provides
that personnel of the Intelligence Community Staff may be
permanent employees of the Staff or detailed from various
elements of the United States Government.
Subsection (b) requires that detailed employees be selected
so as to provide appropriate representation from the various
departments and agencies engaged in intelligence and
intelligence-related activities.
Subsection (c) requires that personnel be detailed on a
reimbursable basis except for temporary situations.
Section 203 provides that the Director of Central
Intelligence shall utilize existing statutory authority to
manage the activities and to pay the personnel of the
Intelligence Community Staff. This language reaffirms the
statutory authority of the Director of Central Intelligence and
clarifies the legal status of the Intelligence Community
Staff. In the case of detailed personnel, it is understood
that the authority of the Director of Central Intelligence to
discharge personnel extends only to discharge from service at
the Intelligence Community Staff and not from federal
employment or military service.
CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY SYSTEM
Section 301 authorizes fiscal year 1987 appropriations in
the amount of for the Central Intelligence Agency
Retirement and Disability Fund.
ADMINISTRATIVE PROVISIONS RELATED TO
INTELLIGENCE AGENCIES
Section 401 exempts the CIA and NSA from the requirement
contained in ?3303a of Title 44, United States Code, that the
Archivist may approve records disposal requests only after
publication of notice in the Federal Register and an
opportunity for interested persons to submit comments thereon.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
The requirement that the Archivist publish record disposal
requests in the Federal Register was added by ?204 of the
National Archives and Records Administration Act of 1984. By
requiring that the Archivist provide notice in the Federal
Register, the public would be given an opportunity to obtain
and comment on the the actual schedule of records proposed for
destruction. While the purpose of the provision was to give
the public a role in determining what records should be
destroyed, the legislative history makes clear that Congress
did "not intend . . . for such public notice to be a paperwork
burden for any affected parties or to unreasonably delay the
disposal of such records." H. Conf. Rpt. No 1124, 98th Cong.,
2d Sess., 29-30, reprinted in 1984 U.S. Code Cong. & Ad. News
3904-3905.
Unfortunately, the requirement for publication in the
Federal Register has become a paperwork burden for CIA and NSA
that has unreasonably delayed the disposal of records. The
problem arises because the CIA and NSA record control schedules
submitted to the National Archives and Records Administration
(NARA) are classified confidential. NARA has therefore decided
that the Federal Register notice concerning classified records
schedules will be limited to the following information:
a) the identity of the requesting agency;
b) the NARA job number assigned to the schedule; and
c) the reason the schedule is excluded from public
disclosure.
Because the CIA and NSA record destruction schedules are
classified and not accessible to the public, the statutory
requirement that the Archivist publish notice of them in the
Federal Register so as to provide the public an opportunity to
obtain them makes absolutely no sense. Furthermore, this
requirement unreasonably delays approval by the Archivist of
NSA and CIA record destruction schedules since the public is
given 60 days to comment on the notice in the Federal
Register. Exempting the CIA and NSA from the provision
requiring notice in the Federal Register of requests to destroy
records would expedite the process of approval of requests to
destroy records and not deprive the public of any information
they would otherwise be entitled to receive.
Section 402 amends the National Security Act of 1947 to
permit an interlocutory appeal by the United States from any
decision of a United States court or a judge thereof on any
evidentiary ruling or dispositive motion when the Director of
Central Intelligence certifies that the decision being appealed
will have an adverse impact on the national security. Recently,
the United States has encountered significant problems in
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
attempting to perfect interlocutory appeals of several court
decisions. The hallmark of these cases is an attempt by the
plaintiffs to force the United States to submit to civil
discovery and a trial on the merits, even though the
Government's legal arguments would likely eliminate the need
for discovery or further judicial proceedings if the issues
could be litigated fully on appeal. Moreover, in those cases
where the disclosure of sensitive national security information
is directly at issue, the United States needs the ability to
protect its information from any unnecessary risk of immediate
disclosure. Under current law the United States may find that
the only means of obtaining an immediate appeal to obtain a
dispositive ruling is to consider a contempt of court. These
problems can be resolved if the United States can obtain the
right to interlocutory appeal upon a certification that the
national security justifies it. It is not intended, however,
that the right established by this section in any way affect
the role of the Attorney General in managing the litigation
caseload of the United States. Additional information
regarding this provision, which cannot be provided in a public
document, has been previously provided to the Committees.
Section 403 amends the Central Intelligence Agency Act of
1949 to provide an additional retirement credit in lieu of a
post differential for service by non-CIARDS Agency employees at
unhealthful posts. As part of the FY86 Intelligence
Authorization bill, Congress approved legislation authorizing
extra retirement credits for those Agency employees who
participate in the Central Intelligence Agency Retirement and
Disability System. Under this legislation, Agency employees
who participate in CIARDS would have the option to elect to
receive a retirement credit of one and a half years for each
year of service at an unhealthful post in lieu of a post
differential. This benefit is the same as that provided to
Foreign Service Officers under Section 817 of the Foreign
Service Act of 1980.
Because the provision in the FY86 Intelligence
Authorization Act was limited to CIARDS participants, those
employees who participate in other retirement systems do not
have the opportunity to earn extra retirement credits for
service at unhealthful posts. This section expands the
authority to pay extra retirement credits to those Agency
employees who participate in the Civil Service Retirement
System or in a "new Government retirement system" as defined in
Section 203(a)(4) of the Federal Physicians Comparability
Allowance Amendments of 1983. These Agency employees may serve
in the same unhealthful posts as Agency employees who
participate in CIARDS and equity demands that these Agency
employees have the same chance to elect an extra retirement
credit as CIARDS participants. The amount of extra retirement
that would be paid and the circumstances under which it would
be paid are the same as that authorized for CIARDS participants
last year. 31
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Section 404 amends the CIA Act of 1949 and the National
Security Agency Act of 1959 to make clear that CIA and NSA can
continue to deal with security problems in the area of drug and
alcohol abuse without regard to the provisions of any other
law, rule or regulation. Recent court decisions and rulings by
both the Equal Employment Opportunity Commission and the Merit
Systems Protection Board have suggested that there will be
increasing emphasis on treating alcoholism and alcohol abuse as
a handicap protected under the provisions of the Rehabilitation
Act, which outlaws handicap discrimination. By implication
there will likely be a similar emphasis on treatment of drug
abuse as a handicap with the same protection. This may very
well result in an increased prospect of litigation whenever CIA
or NSA determine that drug or alcohol abuse requires the denial
or revocation of security approvals, or the denial or loss of
employment. Not only is there concern about the prospects of
having to litigate these decisions, but there also is a
likelihood that CIA and NSA will be forced more and more to
make accommodations to take into account these "handicaps,"
regardless of the security consequences of continuing to employ
or clear such persons. In order to avoid these additional
administrative and litigation problems, which could
substantially impair the ability of CIA and NSA to carry out
their national security missions and functions, this amendment
would clearly authorize CIA and NSA to deal with the security
implications of alcohol and drug abuse in the same manner as in
the past. Additional information regarding this provision,
which cannot be provided in a public document, has been
previously given to the Committees.
Section 405 amends the National Security Act of 1947 (50
U.S.C. 401 et seq.) so that, in tort actions, including actions
arising under the U.S. Constitution, the United States will be
substituted for individual defendants employed by Intelligence
Community agencies who are sued in their personal capacities
for acts undertaken in the scope of their Government
employment. In recent years, it has become commonplace for
senior Intelligence Community officials to be sued in their
individual (as well as official) catacities for making national
security judgments which they are authorized by law to make.
Intelligence Community officials live under the constant fear
that their official actions may result in years of litigation,
and that a judgment for monetary damages may ultimately be
entered against them. Responsible officials who must make the
most sensitive decisions affecting the national security cannot
be placed in an environment where they constantly have to be
concerned about their personal and financial well-being. This
provision amends the United States Code to provide that any
cause of action a person may have for tort claims, including
claims arising under the Constitution, for acts taken by
Intelligence Community officials during the scope of their
employment, will be against the United States exclusively.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
This bill further provides that the existing procedures of the
Federal Tort Claims Act, shall be applied to litigation under
this section. Suits against intelligence officers or employees
in their individual capacities are precluded. The sole remedy
would be against the United States. This provision is intended
to be a waiver of sovereign immunity with respect to
Constitutional torts brought against officials in their
individual capacities. It is intended to retain for the United
States any defenses those individuals may have had in suits
brought against them. Thus, for constitutional torts the
United States for the first time shall be liable to the same
extent as the officer or employee would have been in any Bivens
action prior to the enactment of this provision. Remedies for
common law and statutory torts will remain substantially the
same, except that employees no longer will be subjected to suit
at all, and claims of absolute or qualified immunity will be
made by the United States.
The section further provides at subsection (c) that the
Attorney General shall defend any action referred to in
subsections (a) and (b). Personnel are required to initiate
notification of any tort action to the relevant United States
attorney.
Subsection (d) provides that a certification by the
Attorney General that the officer or employee was acting within
the scope of employment in an authorized activity shall convert
the action into a suit against the United States.
Subsection (e) provides for removal of cases brought against
officers or employees in state courts to federal district
court, and substitution of the United States as proper party.
Subsection (f) provides that the United States shall have
available to it all the defenses that would have been available
to it and to a defendant sued in his individual capacity, and
would nullify a provision in the Federal Tort Claims Act which
would otherwise exclude any action for claims arising in
foreign countries.
Subsection (g) emphasizes that the Attorney General may
compromise or settle any claims brought under this section.
SUPPORT FOR DEFENSE INTELLIGENCE
COLLECTION ACTIVITIES
Section 501 adds a new chapter 19 to subtitle A of Title 10,
United States Code, authorizing the establishment and conduct of
corporations or other business entities to provide support for
Department of Defense undercover intelligence collection
activities.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Proposed subsection 391 states that the purpose of proposed
chapter 19 is to clarify congressional intent with regard to
the establishment of commercial covers to support intelligence
collection activities.
Proposed subsection 392a defines a new term "intelligence
collection activities". The use of a new term rather than the
redefining of the term "intelligence activities" precludes the
development of two definitions (E.O. 12333 & statutory) for the
same term.
Proposed subsection 392b defines the term "intelligence
support activities" to mean the establishment, acquisition and
conduct of commercial cover systems and the acquisition of
logistical support thereto as described in subsections 393 and
394.
Proposed subsection 392c defines one of the terms in
subsection 392a, "foreign intelligence", as it is defined in
E.O. 12333.
Proposed subsection 392d defines one of the terms used in
subsection 392a, "counterintelligence", as it is defined in
E.O. 12333.
Proposed subsection 392e defines a new.term, "commercial
cover", which is used throughout the proposed Chapter 19 of
this title.
Proposed subsection 393a authorizes the Secretary of
Defense or the Secretaries of the Military Departments to
establish and conduct commercial covers as commercial
entities. In making specific reference to consultation with
the Director of Central Intelligence and the Director of the
Federal Bureau of Investigation, this subsection is not
intended in any way to alter or derogate from the
responsibilities and authority of the Chief of Mission to a
foreign country under 22 U.S.C. 3927 for direction,
coordination, and supervision of all U.S. Government employees
in that country (except for employees under the command of a
U.S. area military commander) or from established procedures
for coordination with the Secretary of State in the conduct of
clandestine activities. Subsection 393a further states that
the establishment of a commercial cover requires a finding in
the form of a written certification by the Secretary
responsible for the commercial entity that the commercial cover
is necessary to the conduct of authorized intelligence
collection activities.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Proposed subsection 393b requires that the establishment
and operation of such commercial covers be in accordance with
prevailing commercial practice. Federal statutes that regulate
the establishment and operation of commercial and industrial
type government activities shall not apply to the establishment
and operation of commercial covers conducted pursuant to this
section when there is a written certification by the Secretary
concerned or his designee that compliance with such statutes
would risk compromise of the commercial cover. It is not
intended that the authorities contained in this section will
relieve the Department of Defense from any requirements of
applicable laws. Any exemptions apply only to the operations
of the commercial cover. Commercial covers must of necessity
conform to standard commercial practices. Compliance with
statutory requirements that govern routine government
procurement and financial transactions would not conform with
such prevailing commercial practices and would flag a
commercial cover entity as being connected with the United
States Government, thus risking the security of the commercial
cover and the underlying intelligence collection activities.
In the past, Congress has exempted the FBI from certain
procurement and financial requirements, e.g., the
Anti-Deficiency Act, 31 U.S.C., 1341, and the Department of
Defense is proposing that similar exemptions be authorized for
intelligence support activities. It is virtually impossible to
foresee and list by citation every statutory requirement that
may be incompatible with intelligence support activities.
Therefore, subsection 393b describes the exemptions
categorically in order to capture and embody all the provisions
that would risk compromising the commercial cover. Such
statutes encompass laws applicable to federal appropriations,
federal property management, federal acquisitions, federal
employment, and government corporations. These categories of
law are defined below.
"Federal acquisitions" means acquiring real estate, goods
or services for the United States Government. These activities
are principally governed by Titles 41 and 10 of the United
States Code. Title 41 requirements that may be incompatible
with intelligence support activities include:
41 U.S.C. 5 which establishes the requirement to advertise
proposed purchases and proposed contracts for supplies or
services.
41 U.S.C. 35 which requires the inclusion of contract
provisions such as the Walsh-Healey Act representations and
stipulations.
41 U.S.C. 46 and 48c which establish the requirement to
purchase blind-made products.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
41 U.S.C. 255 which limits advance payments to contractors.
41 U.S.C. 253 which requires full and open competition.
Title 10 requirements that may be incompatible with
intelligence support activities include:
10 U.S.C. 2207 which prohibits contracting unless the
contract contains specific provisions.
10 U.S.C. 2276 which makes the contractor's books subject
to Government audit.
10 U.S.C. 2301 which prohibits cost-plus-a-percentage-of-
cost contracts. This section also subjects a commercial
cover to small business set-asides. This may conflict with
prevailing commercial practice.
10 U.S.C. 2304 which limits the use of negotiated pro-
curements. Formal advertisement (sealed bids) may not be
consistent with prevailing commercial practice.
10 U.S.C. 2306 which places restrictions on the kinds of
contracting that may be used. These restrictions may
conflict with prevailing commercial practice. This section
also creates a right to examine all books, records, etc. of
the contractor or subcontractor. This may also identify
the intelligence support activity as a U.S. Government
entity.
10 U.S.C. 2307 which prohibits certain advance payments for
property and services. This may conflict with prevailing
commercial practice.
10 U.S.C. 2313 which creates a right to inspect plants and
audit books of certain contractors and subcontractors.
Such an inspection would identify the contracting agency as
a United States Government entity.
10 U.S.C. 2360 which creates a right for students
contracting with the Government to be entitled to be
considered as employees which may identify the contracting
agency as a United States Government entity.
10 U.S.C. 2381 which requires certain measures for
non-negotiated procurements which will identify the
contracting agency as a United States Government entity
(surety bonds, charges, etc.).
10 U.S.C. 2384 which requires supplies furnished to a
military department to be uniquely marked, which will
identify the contracting agency as a United States
Government entity.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
10 U.S.C. 2631 which restricts transportation of supplies
to U.S. Flag Vessels. This may conflict with prevailing
commercial practice.
"Federal property management" means the control and use of
federal real and personal property. These activities are
principally governed by Titles 40 and 10 of the United States
Code. Restrictions that may be incompatible with commercial
covers include:
40 U.S.C. 34 which limits the leasing of space in the
District of Columbia.
40 U.S.C. 33a which establishes restrictions on
construction loans for office buildings by Government
corporations.
40 U.S.C. 129 which establishes limits on a Government
corporation's leasing of buildings in addition to the
limitation on rental rates and prohibits the inclusion, in
any lease, of any provision regarding the repair of real
property.
10 U.S.C. 2662 which requires reporting of certain real
estate transactions to Congress 30 days in advance of the
transaction.
10 U.S.C. 2672 restricts agency authority to acquire an
interest in land to $100,000 or less.
10 U.S.C. 2676 limits authority to acquire land unless
acquisition is expressly authorized by law.
"Federal employment" means restrictions, rights, duties,
and entitlements flowing from Part III of Title 5 of the United
States Code. The intent of this section is to exclude from the
application of Title 5, United States Code, employees of the
commercial cover who are not federal employees occupying
positions within the commercial cover. The restrictions,
rights, duties, and entitlements that may be incompatible with
prevailing commercial practices include:
5 U.S.C. 3101
employees.
5 U.S.C. 5101
employees and
5 U.S.C. 4301
rating system
et seq. which limits the authority to appoint
et seq. which establishes classes of
prescribes levels of pay for those classes.
et seq. which establishes training programs.
et seq. which establishes a performance
for employees, including minimum due process.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
5 U.S.C. 6101 et seq. which establishes a leave and
attendance system.
5 U.S.C. 7101 et seq. which establishes a system for
adverse actions, including removal.
5 U.S.C. 8101 et seq. which provides for insurance and
other entitlements.
"Government Corporations" means a corporation that is owned
by the Federal Government. While commercial covers are not
Government corporations in the classical sense, they
nonetheless meet definitions set out in 31 U.S.C. 9101(1).
Government corporations are principally governed by Title 31 of
the United States Code. Requirements that pertain to
Government corporations that may be incompatible with
commercial covers include:
31 U.S.C. 9102 which requires that each corporation
established or acquired by an agency be specifically
authorized by Congress.
31 U.S.C. 9103 which requires an annual budget submission
to Congress.
31 U.S.C. 9107 which requires Comptroller General's
approval prior to the consolidation of a corporation's cash.
31 U.S.C. 9108 which limits the obligations that may be
issued by a Government corporation.
It is intended that commercial covers utilize these
exemptions only to the extent that it is necessary, and that
they be conducted in a manner that is generally consistent with
ordinary commercial practice. Adequate safeguards are provided
in the legislation and the Department's own procedures will
further ensure the proper application of the exemptions and the
appropriate use of funds.
Subsection 393c authorizes the deposit and withdrawal of
appropriated and generated funds in banks and other financial
institutions.
Subsection 393d requires that all proceeds generated by a
commercial cover that are no longer necessary to offset
necessary and reasonable expenses of the commercial cover,
revert to the U.S. Treasury as miscellaneous receipts.
Subsection 393e requires that funds resulting from a final
disposition of a commercial cover, after all obligations have
been met, shall be deposited in the United States Treasury as
miscellaneous receipts.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Proposed subsection 394a grants to the Secretary of Defense
or the Secretaries of the Military Departments, or their
designees, the authority to acquire necessary services,
personalty, fixtures, and realty in order to support a
commercial cover.
Proposed subsection 394b requires that acquisitions made
pursuant to subsection 394a utilize procedures that are
consistent with prevailing commercial practice. The subsection
further provides that such acquisitions shall be exempt from
laws governing federal acquisitions, federal appropriations,
federal property management, and federal employment where the
application of such laws would risk the compromise of the
commercial cover. It is not intended that the authorities
contained in this section will relieve the Department of
Defense from any requirements of applicable laws. Any
exemptions apply only to the operations of the commercial
cover. For a discussion of these laws see the analysis above
pertaining to proposed subsection 393b.
Proposed section 395 requires the establishment of a system
whereby the Secretary of Defense is responsible for ensuring
adequate oversight and accountability for all intelligence
support activities undertaken pursuant to this chapter.
Proposed subsection 396a requires all intelligence support
activities authorized pursuant to proposed sections 393 and 394
to be undertaken in accordance with regulations promulgated by
the Secretary of Defense.
Proposed subsection 396b requires the Secretary of Defense,
or the Secretaries of the Military Departments to ensure that
an annual review and audit is conducted of each intelligence
support activity. It further requires that the House Permanent
Select Committee on Intelligence and the Senate Select
Committee on Intelligence be kept fully and currently informed
of all intelligence support activities.
Proposed subsection 396c makes it clear that all
intelligence support activities undertaken pursuant to this
chapter are to be protected from unauthorized disclosure as set
forth in 50 U.S.C. 403(d)(3).
Section 601 would amend the Right to Financial Privacy Act
of 1978 (12 U.S.C. ?3401 et. seq.) by making-certain of the
special procedures set forth in Section 3414 mandatory.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Section 3414 currently provides that a Government authority
authorized to conduct foreign counterintelligence
investigations may obtain financial records from a financial
institution by submitting a certification signed by the
supervisory official of a rank designated by the head of the
Government authority. However, Section 3414 does not compel
the financial institution to disclose the requested records.
There have been instances wherein financial institutions have
declined to provide records requested pursuant to Section 3414.
Officials of such institutions have stated that they would
produce the requested records only in response to a subpoena.
Although the current number of refusals is not high, certain
major banks have refused to comply with requests for financial
data. Knowledge that these financial institutions will not
comply with requests for financial data has in some cases
deterred the FBI from making the requests. Thus, as long as
Section 3414 is retained in its current form, the FBI and other
government agencies may face the obstacle of a recalcitrant
financial institution in a foreign counterintelligence
investigation. Enactment of this section will ensure that
government agencies involved in foreign counterintelligence
investigations will have access to financial data relevant to
the particular matter being investigated. Congress will
continue to receive notice concerning use of this authority
through existing reporting provisions as set forth in 12 U.S.C.,
Section 3421.
Section 602 would provide access by the FBI to tax return
information in foreign counterintelligence investigations.
Disclosure of tax information by the Internal Revenue Service
(IRS) is generally proscribed by ?6103(a) of Title 26, United
States Code. A variety of exceptions to the prohibition on
disclosure of tax information are contained in Sec. 6103. With
respect to criminal investigations, tax return information may
be released without a court order if the matter pertains to tax
administration. Release of tax returns and return information
needed in the course of a non-tax criminal investigation must
be authorized by a court order. 26 U.S.C., 6103 (i)(1)(A).
Release of return information other than taxpayer return
information for use in non-tax criminal investigations may be
authorized by the Secretary of the Treasury upon receipt of a
request from the head of a federal agency involved in
enforcement of federal criminal statutes. For example, the
Director of the FBI may request such information.
Unfortunately, none of the aforementioned provisions provide
any access to tax returns or taxpayer return information in
foreign counterintelligence investigations. Access to
financial information, including tax returns, is important
to investigating espionage activity because recent cases
(e.g., Bell, Harper, Barnett) have shown that one important
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
motive for espionage can be financial gain. While it is
possible to obtain tax return information through a court order
for use in a criminal prosecution, there are instances where
access to tax information is an important investigative aid
even though criminal prosecution is not possible or desirable.
In many of these cases, the national security interest of the
United States is better served by convincing a person engaged
in espionage to work against the intelligence service of a
hostile government rather than prosecuting the individual. In
other instances, there may not be enough evidence developed to
anticipate going forward with a criminal prosecution. Enactment
of this section will enable the FBI to obtain vital information
in foreign counterintelligence investigations not connected
with an impending criminal prosecution.
Enactment of this section also will be of vital help to the
FBI in preventing the illegal export of high technology items.
The buyers and sellers of goods containing advanced technology,
the export of which is prohibited, conceal their activities in
a series of small shell corporations. The ability of the FBI
to trace the flow of money and make comparisons of losses and
earnings in order to establish the fraudulence of the
transaction and identify the final recipient of goods will be
facilitated with access to tax records of individuals and
businesses.
Enactment of this section also will be useful in helping
the FBI keep track of certain foreign students who are
sponsored by foreign governments. These students are required
to file with the IRS Form 2063 (US Departing Alien Income Tax
Statement), upon departure. These forms are collected in
Philadelphia, Pennsylvania and are important to the FBI as a
quick means of verifying the exact date of departure of a
student. This information is not readily available from other
sources. Consultation with officials of the IRS has determined
that this information falls within the definition of taxpayer's
return information and, therefore, is available only pursuant
to a judicial order. Enactment of this section will allow the
FBI access to these records without having to obtain a court
order.
In summary, enactment of this section would authorize the
FBI access, under proper controls, to tax return and taxpayer
information of individuals who are subjects of foreign
counterintelligence investigations and would allow for the
dissemination of this information to other members of the
Intelligence Community. Because the FBI can only obtain an
individual's return under this section upon a determination by
the Attorney General that there is probable cause to believe
that a taxpayer is a foreign power or agent of a foreign power,
use of this investigative technique will occur only after
substantial information has been gathered about the taxpayer's
involvement in espionage or activities of counterintelligence
interest.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Section 603 provides access by the FBI to telephone
subscriber information and toll billing record information from
a communications common carrier. The need for this provision
has its roots in the difficulties that the FBI encounters in
certain areas of the country in obtaining telephone toll record
information pursuant to National Security Letters (NSL).
Pursuant to an agreement reached approximately ten years ago
between the Department of Justice and AT&T, NSL's are utilized
in lieu of subpoenas to obtain telephone toll record information
in foreign counterintelligence investigations. However, State
privacy statutes, as well as court and agency decisions, are
causing certain companies, particularly in California, to
refuse to honor NSLs. Indeed, decisions of the California
Public Utility Commission (PUC) have resulted in no companies
in California honoring NSLs . This section would make it
mandatory for communications common carriers to produce
requested telephone subscriber information pursuant to an NSL
signed by the Director of FBI or a supervisory official
designated by him. The section also prohibits the disclosure
of such a request and authorizes dissemination of information
obtained pursuant to this section to other agencies within the
Intelligence Community.
Section 604 would authorize the FBI to pay for the
expenses necessary to conduct a foreign visitor exchange
program. A number of United States Government agencies have
foreign visitor programs wherein representatives or foreign
agencies travel to the United States as guests of the United
States agency to promote international cooperation between the
two agencies. These visits are not training programs but
rather observation programs to provide foreign visitors with
an overview of the United States agency operations in certain
areas in order to enhance the foreign United States agency
operations in these areas and to foster greater international
cooperation between the respective United States and foreign
agency. Presently, there is no FBI authorized funding
available to sponsor such a program. It is envisioned that
this funding will be utilized to pay the expense of bringing to
the United States certain Senior Executives who have
counterintelligence responsibilities in foreign agencies
with which the FBI maintains close contact. These foreign
representatives would be invited to the United States to
provide them with a thorough overview of FBI operations in
areas of mutual interest. These visits also would serve as an
exchange program to allow the FBI to gain expertise from that
foreign representative.
Section 605 would allow access for the FBI to state and
local criminal records for national security purposes similar
to the relief that was granted to the CIA, DOD, and OPM in the
Intelligence Authorization Act for FY 86. That Act does not
include the FBI in its provisions, despite the longstanding
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
responsibilities of the FBI in the conduct of background
investigations. However, the FBI has also faced difficulties
in recent years in obtaining criminal records information from
state and local agencies for purposes of conducting background
investigations, primarily because of state and local
legislation triggered by, and similar to, the Privacy Act.
An example of the difficulty in obtaining criminal history
record information for purposes of conducting a background
investigation can be found in California. The FBI's California
offices have been precluded from access to the California law
enforcement telecommunication criminal justice information
system for the purpose of conducting background investigations
because the California Department of Justice has interpreted
the State's Freedom of Information/Privacy Acts, which prohibit
use of information developed by law enforcement agencies for
other than law enforcement purposes, to exclude background
investigations from the realm of law enforcement purposes.
Even with a release from the applicant, some information on an
applicant has been withheld.
Other states have similar laws restricting the use of
criminal record information for employment purposes. To date
these laws have not been interpreted to preclude FBI access to
the records for the purpose of conducting background
investigations. There is no guaranty, however, that these
states may not someday take a different position. Because the
FBI is decentralizing its record keeping practices and state
and local authorities have become increasingly responsible for
the maintenance and dissemination of their criminal records, a
change in position by these states to deny the FBI these
records could drastically reduce the ability of the FBI obtain
complete criminal record information for background
investigations.
To address the current problems and potential concerns
stated above, the FBI should be added to those agencies
entitled under Section 9101 of Title 5, United States Code, to
obtain access to state and local criminal history records.
This will ensure that the FBI can adequately fulfill its
responsibilities in conducting background investigations.
Section 701(a) amends section 624(c) of title 10, United
States Code, to delete the requirement for Senate confirmation
for appointment to the next higher grade of certain officers on
the active duty list who are involved in classified
intelligence operations and approved by the President for
appointment to grades below 0-7 (Brigadier General or Rear
Admiral (lower half)).
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
At present, military officers participating in classified
intelligence operations who are otherwise eligible for
promotion must, in order to obtain Senate confirmation for
promotion to grades above captain or, in the case of the Navy,
lieutenant, be identified publicly by name during the
confirmation process. Because of this public scrutiny, the
officers and the operations themselves may be endangered.
As a result, many qualified, dedicated officers recommended for
promotion have been, in the interests of national security,
unable to be promoted and have lost the corresponding increases
in pay and allowances and other privileges and benefits of the
higher grade.
This section amends section 642(c) to empower the President
to appoint such officers to grades below 0-7 (Brigadier General
or Rear Admiral (lower half)) after the Secretary of Defense
has approved the use of a secure promotion list and the
appropriate Service Secretary has determined that the
procedures in section 624(c) [redesignated as section
624(c)(1)] would either endanger the officers or compromise the
operations in which they are involved, or both. The Secretary
of Defense would report at least annually to the Senate and
House Armed Services Committees the number of officers so
appointed and the grades to which they are promoted.
Section 701 (b) provides that the amendments to section
624(c) are effective on the date of its enactment, but provides
for authority to apply the provisions of section 624(c)(2) to
any officer recommended for promotion by a selection board
convened under chapter 61 (to include a special selection board
convened under section 628(a)(1)) on or after September 15,
1981, but who has not been promoted because of concerns that
the public scrutiny inherent in the confirmation process would
compromise a classified intelligence operation or be dangerous
to the officer.
The section further provides for the establishment of
retroactive effective dates of promotion for all purposes and
establishment of a date of rank and position on the active duty
list that such officers would have received had their names
been included on the list from which the officer was excluded,
and that list was approved by the President and forwarded to
the Senate. It may be that a date of rank and position on the
active duty list established under this section will result in
a situation in which, had the officer originally been promoted
under section 624(c) and received that date of rank and
position on the active duty list, that officer subsequently
would have been within a promotion zone established by the
Secretary concerned under section 623 for promotion to the
grade next above that to which the officer had been recommended
but not promoted to because of security concerns. Section
701(b) provides that such officers, upon promotion under that
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
section, are, if otherwise eligible, further eligible for
consideration by a special selection board convened under
section 628(a)(1). If recommended by that selection board for
promotion to a grade below brigadier general or rear admiral
(lower half), the officer could again be promoted under the
procedures established by section 701(a) of this Act, with a
date of rank, an effective date for the pay and allowances of
that grade, and a position on the active duty list determined
under section 628(d)(2).
Section 701(b)(a) further provides that the officers
promoted under that section shall not, during the fiscal year
in which their promotion is accomplished, be counted against
any strength in grade limitation established by law. This
section further provides that the Secretary of Defense shall
include in the report required by section 701(a) of this Act
the number of officers promoted under this section.
Section 701(c) provides that in the event that the
appointment of an officer under chapter 61 in the grade in
which that officer is currently serving was delayed because of
participation in a classified intelligence operation, the
Secretary concerned may adjust the date of rank, effective date
of promotion for all purposes, and position on the active-duty
list of that officer in order to obviate the seniority and pay
consequences of that delay. Section 701(c) further provides
that in the event that the officer would have been in a
promotion zone to the next higher grade established by the
Secretary concerned under section 623 had that officer been
promoted without such delay, the officer, if otherwise
eligible, is further eligible for consideration by a special
selection board convened under section 628(a)(1). If
recommended by that selection board for promotion to a grade
below brigadier general or rear admiral (lower half), the
officer could be promoted under the procedure established by
section 701(a) of this Act, with a date of rank, an effective
date for the pay and allowances of that grade and a position on
the active-duty list determined under section 628(d)(2).
Section 701(d) establishes a procedure whereby the
Secretary concerned may, in order to effectuate actions taken
pursuant to sections 701 (b) or (c), correct the records of the
officers concerned without reference to a Board established
under section 1552 and without application by the officers
concerned. Such a correction is binding upon all officers of
the United States, and, since a retroactive or adjusted
effective date of promotion would entitle the officer concerned
to back pay and allowances, such a correction would authorize
the expenditures, from applicable current appropriations, for
such pay and allowances.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Section 701(e) establishes an expiration date of September
30, 1987 for the authority provided by section 701(b) - (d) to
take corrective actions in the case of officers who were not
promoted or whose promotions were delayed because of security
concerns. Since section 701(a) provides a permanent mechanism
to effectuate the future promotion of officers engaged in
classified intelligence operations whose promotions have not as
of the date of this Act, been effected by security concerns.
The special corrective provisions of sections 701(b)(d) are not
needed on a permanent basis.
Section 702 seeks to extend by two fiscal years the
termination authority of the Secretary of Defense with respect
to the employment of any civilian officer or employee of the
Defense Intelligence Agency (DIA). Subsection 501(a) of the
Intelligence Authorization Act for FY85, P.L. 98-618,
authorized the Secretary of Defense to exercise the above
termination authority whenever such an action was considered by
him to be in the best interests of the United States and he
determined that the termination procedures otherwise authorized
by law could not be "invoked in a manner consistent with the
national security." As enacted, paragraph 1604(e)(1) of
chapter 83 of title 10, United States Code, extended this
authority to the Secretary of Defense for fiscal years 1985 and
1986. The regulations which were subsequently written to
implement this authority have been finalized within DIA and
they are now in the final stages of OSD coordination. The
extension of authority is being requested so as to allow DIA an
opportunity to have two full fiscal years of experience under
the implementing regulations. Then, as the end of the extended
time period draws near, a determination can be made as to
whether the termination authority should be modified and/or
enacted into permanent authority.
Section 703 addresses a provision included in the FY85
Intelligence Authorization Bill designed to markedly enhance
Defense Intelligence Agency's (DIA) capabilities to structure
attractive and flexible career opportunities for its civilian
professional intelligence work force. This earlier legislation
provided authorities parallel to those enjoyed by the Central
Intelligence Agency and the National Security Agency, thereby
eliminating a major disadvantage that had affected DIA's
ability to attract top quality careerists. The operative
effect of the legislation was to exempt DIA from the
requirements of the Classification Act, allowing DIA to
factor in the individual circumstances of the person in the
job in determining grade and revise standards to reflect the
changing intelligence environment of the second half of the
1980's and the 1990's. In addition, the legislation
facilitated the separation of civilian employees when such
separation is deemed to be in interests of the United States
and consistent with the national security.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Section 703 is intended to improve the management of
civilian intelligence personnel within the military departments
and to correct actual personnel management system inequities
and disparities existing within the Department of Defense
intelligence community. Notwithstanding the fact that the
military departments' intelligence collection and production
requirements have become more and more demanding and the
military departments exercise varying degrees of intelligence
collection and production responsibilities as vital
contributors to the Intelligence Community-wide intelligence
effort, they continue to labor under the restrictions of the
Classification Act. That Act hinders the military departments'
efforts to create viable and competitive professional
alternatives for their civilian intelligence officers and
employees. With regard to their civilian intelligence officers
and employees, the military departments simply do not have the
flexibility in personnel matters enjoyed by CIA, NSA, and DIA
under applicable statutes. As a consequence, the military
departments have been significantly handicapped in their
ability to recruit and reward outstanding analysts and other
intelligence specialists and employees, and otherwise to
operate an equally effective civilian personnel system.
Consequently, military intelligence management of the
collection, processing, analysis, and dissemination processes
is at a decided disadvantage. As a functional equivalent
within the defense and national intelligence communities, the
need exists for equivalent intelligence management and
functional authorities to be vested in and retained by the
military departments. Enactment of this legislative proposal
will allow the military departments to create a flexible,
viable, and attractive civilian personnel management system.
Specifically, enactment of this legislative proposal would
create conditions that would promote continuous modernization
of military intelligence civilian position classification and
qualification standards to keep pace with: intelligence
consumer expectations for increased quantity and enhanced
quality of intelligence products; the impact of new
technologies and initiatives upon intelligence management,
collection, processing, and dissemination methodologies; and,
Service intelligence reorganizations that are driven by
emerging intelligence collection and production imperatives.
Moreover, enactment of these provisions would allow the
Services to implement de facto multi-tracked career and
training programs for its civilian intelligence officers and
employees and invest "rank in the person" rather than in the
job in which the civilian intelligence officer or employee
serves as the incumbent.
All of the authority vested in the Secretary of Defense by
P.L. 98-618 with regard to the Defense Intelligence Agency
remains unchanged. This legislative proposal represents a
straight forward extension of 10 U.S.C. 1604 authorities to the
military departments.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
The effect of amendments to 10 U.S.C. 1604 (a) through (e),
as outlined above, would be to authorize the Secretary of
Defense, delegable only to the Secretaries of the military
departments, to establish a flexible personnel management
system for those personnel who are not in the Senior Executive
Service of the military departments. The phrase "civilian
intelligence officers employees" encompasses those individuals
who perform an intelligence function, i.e., the majority of the
incumbent's time is spent advising, administering, supervising,
performing, or supporting work in the collection, processing,
analysis, production, evaluation, interpretation, dissemination
or estimation of intelligence information, or in the planning,
programming, and management of intelligence resources. Salaries
and pay of such individuals would be fixed in relation to the
General Schedule and Wage Grade (prevailing rate) system. A
flexible classification system would be established which would
incorporate the concept of both position classification and
rank in the person. The system would be structured to permit
assignment, movement, and career development without cumbersome
classification and related administrative procedures.
Subsection 703(a) contains a number of amendments to
U.S.C. 1604. It amends 1604(a) to authorize the Secretary of
Defense to establish civilian intelligence positions in the
military departments and to appoint individuals to such
positions, without regard to civil service requirements.
Subsection 1604(b) is amended to authorize the Secretary of
Defense to fix pay for positions established under subsection
(a) in relation to the General Schedule (GS) rates.
Subsection 1604(c) is amended to authorize a prevailing
rate system of basic compensation for positions in or under
which the military departments may employ individuals in a
trade, craft, or manual occupation.
Subsection 1604(d) is amended to authorize additional
compensation for civilian intelligence officers and employees
of the military departments stationed outside the continental
United States or in Alaska at rates not to exceed those
authorized by 5 U.S.C. 5941(a). Such allowance shall be based
on living costs substantially higher than in the District of
Columbia or conditions of environment which differ from those
in the continental United States.
Subsection 1604(e) authorizes the Secretary of Defense to
delegate
the
authority contained in Subsection 10 U.S.C. 1604(a)
through
(d)
to the Secretaries of the military departments for
purposes
of
taking appropriate civilian personnel management
actions
with
respect to civilian intelligence officers and
employees of the military departments.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Newly designated subsection (f) of section 1604 as amended
by 703(a) of the bill, authorizes the Secretary of Defense,
during fiscal years 1987 and 1988, to terminate employment of
any civilian intelligence officer or employee of the military
departments whenever he considers that action to be in the
interests of the United States and he determines that the
procedures prescribed in other provisions of law that authorize
the termination of such employment cannot be invoked in a
manner consistent with the national security. Termination
authority may be delegated only to the Secretaries of the
military departments. Termination action would be appealable
to the Secretary of Defense whose decision would be final.
Subsection (f) is designed to facilitate, while preserving
basic due process, the removal of personnel whose performance
or security suitability is demonstrably unsatisfactory or
unacceptable, or who are otherwise impairing the effective
performance of the military departments' intelligence mission.
The intelligence environment requires suitability and unusually
high standards of performance to ensure the accuracy and
reliability of intelligence product. Tolerance of
unsatisfactory performance or security suitability is
necessarily low. The flexibility granted by this provision
would relieve the military departments from the external public
review procedures to which preference eligible individuals
would otherwise be entitled upon appeal to the Merit Systems
Protection Board. The termination system instituted under
subsection (f) would provide strict safeguards to assure
internal appeal to the Secretary of Defense thereby ensuring
equity and consistency. The Secretary of Defense is required
to notify the intelligence committees of each instance in which
the termination authority is exercised. The termination
authority is limited in duration. It is so designed to provide
an opportunity to assess the use made of the authority during a
two year period in order that an informed decision can be made
as to whether the authority should be made permanent.
Section 704 clarifies and makes permanent statutory
authority for the Department of Defense, through the Defense
Mapping Agency (DMA), to conduct mapping activities in foreign
countries. Currently, DMA has 185 international executive
agreements with 75 countries concerning the exchange,
collection, and production of mapping data. Some of these
agreements have been in existence since the early 1940's.
Specifically, these agreements permit (1) the exchange of maps,
charts and other geodesic information, (2) co-production and
collection of mapping data, (3) loan of DMA equipment, such as
gravimeters and doppler satellite tracking gear, so that
foreign mapping agencies can produce raw data more efficiently
and accurately, (4) training in equipment use by DMA of foreign
personnel, and (5) access to foreign countries, either directly
by DMA or through surrogate countries.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
DMA finds it necessary to deal with foreign map agencies to
the extent that overhead systems cannot provide accurate
cartographic data. To fill the gap, DMA will send a team to do
what is required to map that area. However, the cost of
sending U.S. personnel has been prohibitive; it is far less
expensive to use local foreign mapping agencies. When local
mapping personnel are used, the U.S. sends them the specialized
equipment and provides the necessary training as set forth in
the executive agreement.
Therefore, the U.S. saves a good deal of money by the use
of foreign locals rather than sending U.S. persons to do the
job. In the exchange, the U.S. gets significant raw mapping
data as well as access to the territory of another
sovereignty. Some executive agreements even provide for the
acquisition of new mapping data through surrogate countries.
Over the years this has been a low cost, reliable and
convenient way for DMA to fulfill its intelligence mandate.
It should also be emphasized that in many instances that this
is the "only" way to get mapping data from foreign countries.
In addition to the substantial savings in using local foreign
personnel, it is estimated that the data and other materials
provieed to the United States through such agreements is valued
in excess of $80 million annually.
However, the authority of DMA to engage in such executive
agreements with other countries has been called into question.
Technically, DMA lacks explicit statutory authority to engage
in these agreements. Currently it relies exclusively on
executive Constitutional authority as the basis for such
agreements. But changes in statutory law have introduced an
element of uncertainty in DMA's reliance on Constitutional
authority. Public law (P.L. 97-113) prohibits no-cost loan of
defense ( DMA ) equipment. In addition, both the Arms Export
Control Act and the Foreign Assistance Act require foreign
governments to reimburse the Defense Department for any foreign
training. Neither the cost avoidance of using foreign locals
over United States personnel, nor the $80 million valuation of
data provided by foreign countries is calculated as
reimbursement. In combination these laws render DMA's
exclusive reliance on the Constitution as the legal basis for
these international executive agreements somewhat uncertain.
To remedy this uncertainty, DMA seeks limited statutory
authority to continue to exchange mapping data, supplies and
services with foreign countries.
Section 705 provides the Defense Intelligence Agency (DIA)
with authority to pay for necessary medical evacuations of DIA
civilian employees stationed overseas. Section 501 of the
Intelligence Authorization Act for FY84, P.L. 98-215, authorized
allowances and benefits for certain employees of DIA stationed
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
overseas comparable to those provided to officers and employees
of the Foreign Service serving overseas. However, the
authority to pay the costs or expenses incurred for a medical
evacuation of a civilian employee when there is no suitable
person or facility in the overseas locality to provide the
necessary medical care was not included in the list of benefits
provided by section 501. This authority was reenacted as
Section 1605 of Title 10 by subsection (a) of Section 1302 of
the Department of Defense Authorization Act, 1986, P.L. 99-45,
but the medical evacuation authority was again omitted. This
authority is not only currently available to Foreign Service
officers and employees, but also to CIA and NSA civilian
employees (see section 4 of the CIA Act of 1949, 50 U.S.C.
403(e) and paragraph 9(b)(1) of the National Security Agency
Act of 1959, 50 U.S.C. 402 note, respectively). While it is
fortunate that there is rarely the need to have such an
authority, DIA has experienced necessary medical evacuations of
its civilian employees stationed overseas. Should similar
circumstances arise in the future, payment for medical
evacuation of DIA civilian employees should be handled on the
same basis as for other civilian intelligence and diplomatic
employees similarly situated.
Section 706(a) amends chapter 57 of title 10, United States
Code, to authorize members of the armed forces to accept cash
awards for exceptional performance of duty while engaged in the
collection or reporting of sensitive foreign intelligence
information. Under the Intelligence Exceptional Collector
National HUMINT Award Program established by the Director of
Central Intelligence Community in March 1985, each component of
the Intelligence Community is authorized to nominate military
or civilian personnel (a maximum of four each fiscal year)
whose achievements constitute either extraordinary intelligence
reporting or particularly fruitful collection activities
directly affecting United States national security policy.
Nominees approved by the Director of the Intelligence Community
Staff and the Director of Central Intelligence may receive
awards of up to $5000.
Section 5536 of title 5, United States Code, prohibits
Federal civilian employees or military personnel from accepting
additional pay or allowances for performing their official
duties unless the disbursement is specifically authorized by
law. Section 4503(2) of title 5, United States Code, provides
the authority to make incentive awards to civilian employees
who perform special acts or services in connection with their
official employment. In contrast, cash awards to military
personnel are limited to those recognizing individuals whose
"suggestion, invention or scientific achievement contributes to
the efficiency, economy or other improvement of operations or
programs relating to the armed forces." (10 U.S.C. 1124(a)).
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Thus, under existing law, civilian employees may accept cash
awards under the Intelligence Community Exceptional Collector
National HUMINT Award Program, but military personnel may not.
Enactment of this proposal will eliminate the disparity in
treatment of civilian and military personnel engaged in the
collection and reporting of foreign intelligence.
Subsection 706 (b) authorizes payment of cash awards for
achievements while on active duty in the armed forces even if
the member dies, separates or retires before approval of the
award.
RESTRICTIONS ON ASSISTANCE TO FOREIGN POWERS
BY FORMER INTELLIGENCE OFFICERS OR EMPLOYEES
Section 801 would amend the National Security Act of 1947
to prohibit former officers and employees of the U.S.
Intelligence Community from assisting foreign powers in certain
circumstances without approval.
I. Purpose of Legislation
The purpose of this legislation is to preserve and promote
the integrity of former members of the United States
Intelligence Community, to maintain and enhance the confidence
of the public in the Intelligence Community, to avoid real and
apparent conflict of interest and to protect intelligence-
related information from disclosure.
This bill would amend the National Security Act of 1947 as
follows:
a. Employees within the Intelligence Community
would be barred for a period of two years from
directly or indirectly accepting employment, entering
into any advisory, financial or other relationship
with a designated foreign power without written
approval to do so; or providing guidance, advice or
information concerning intelligence, or information
derived from or directly related to an officer's or
employee's former position within the Intelligence
Community to a designated foreign power without
written approval to do so;
b. Heads of departments or agencies could exempt
classes of employees from this prohibition;
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
c. Nonexempt employees would be required to seek
approval from their former employing agency, and the
head of the agency could in his or her discretion
approve or disapprove such application;
d. Employees who had been granted approval to enter
into such arrangements would have a continuing duty to
inform their former agency of their status with the
foreign power;
e. This title would provide for criminal penalties
of not more than $10,000, or imprisonment for no
greater than two years for violation of the Act's
provisions;
f. This title would also provide for injunctive
relief to compel former employees to comply with
its provisions.
g. Each agency within the Intelligence Community
would be required to promulgate regulations to
carry out the provisions of the Act;
h. This title would have extraterritorial
jurisdiction;
i. For the purpose of this title, a designated
foreign power is defined to include all foreign
countries, foreign political parties, all govern-
ments in exile and would include any quasi-
governmental, international or multinational
organization.
II. Need for Legislation
Existing conflict of interest statutes, post-employment
restrictions, espionage statutes and contractual secrecy
agreements binding members of the intelligence community fail
to provide adequate safeguards to insure that former officers
and employees of the intelligence community do not enter into
damaging relationships with foreign powers. The post-
employment restrictions found in 18 U.S.C. 207 merely prohibit
a former employee from taking a representational role on behalf
of another in regard to specific matters in which he, or
employees under his supervision, had personal and substantial
involvement as a government employee. Although the espionage
statutes prohibit the unauthorized disclosure of classified
information, they do not prohibit relationships which might
lead to the disclosure of information, nor do they prohibit the
disclosure of unclassified, yet sensitive and damaging
information. Contractual secrecy agreements with former
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
employees require only that employees submit materials for
prepublication review, and at best provide for relief under
principles of contract law. As a result, former employees of
the intelligence community are free to enter into employment
and advisory relationships with real or potential hostile
powers, and, if they are willing to risk uncertain civil
penalties, share unclassified yet non-public and sensitive
intelligence information with hostile powers, and trade in
intelligence-related professions when it is not in the interest
of the United States for them to do so.
Recent incidents evidence a need for remedial legislation:
- Former intelligence employees Edwin Wilson and Frank
Terpil established consulting and commercial relationships with
hostile governments shortly after their departure from the
government. In both cases, they apparently gained their
initial footholds on the basis of their recent employment by
United States Intelligence
- A former CIA analyst served as an "expert witness"
before the World Court, supporting the Nicaraguan Government's
claim against the United States. His testimony was carefully
crafted to exclude references to classified information and
couched as "extemporaneous statements" to avoid prepublication
review.
- Two former members of the Army's Delta Force were
approached by representatives of a Honduran junta to provide
security services. The two former officers were initially
unaware that the group represented a political faction which
was planning to assassinate the President of Honduras.
Although in this case the former officers were entirely
blameless, their apparent availability placed them in a
potentially compromising position.
In each of these cases, a temporary bar on employment or
advisory relationships with foreign powers could have delayed
or possibly thwarted potentially damaging relationships. At
the minimum, this legislation would assure the public that such
relationships should not exist in the future, and thus enhance
public faith in government.
Intelligence information, both raw intelligence and
information concerning intelligence methodologies, has both a
temporary and long-term value. This bill attempts to minimize
the potential harm to the United States while minimizing the
intrusion into the post-employment activities of former
intelligence officers by addressing the temporary component.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
We believe that it is necessary to place controls on the
trafficking of information and skills of immediate value for
purposes of obtaining employment or financial gain with a
foreign power. Accordingly, although the bill would permit
former employees to eventually seek employment with or
establish relationships with foreign powers, situations which
present the potential for the most serious damage would be
subject to approval and control.
From the viewpoint of an employee who plans to establish a
benign or positive relationship with a foreign power, the bill
would create only a minor intrusion into his private affairs,
requiring approval for only a two-year period.
b. Need for Exemptions for Classes of Employees
The bill is intended to restrict the post-employment
activities of employees whose particular skills or access to
information could be exploited by hostile governments. It is
likely, however, that some classes of employees of the
Intelligence Community would pose no current or potential
threat to the national interest. In order to avoid an
unnecessary and unwarranted restriction on the post-employment
activities of these employees, and to avoid clogging the
approval mechanism with unnecessary paperwork, we believe that
the legislation should permit exemption of classes of
employees, and that a decision to waive the reporting
requirements should be left to the discretion of each agency
head.
c. Need for Discretionary Authority to Approve or
Disapprove Requests
Absolute discretionary authority to approve or disapprove
requests is an essential element of this legislation. Because
of the temporal value of relationships based on former
intelligence service, agencies must have the authority to bar
such relationships, free from the prospect of delay arising out
of administrative appeal and judicial review. Decisions as to
what relationships might constitute dangers to the national
security are properly left to the heads of intelligence
agencies who have access to, and knowledge of, information
concerning the potential threat powed by the employment under
consideration, the details of the employee's duties and access
to information, and an appreciation and understanding of how
the two interrelate. Just as intelligence heads have the sole
discretion to identify intelligence sources (see, U.S. vs Sims)
it is essential that they have the non reviewable authority to
identify and bar potential threats to those intelligence
sources and methods.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
d. Need for Continuing Duty to Report
Because a change in the specific activities of an
individual, or a change in scope of his activities could affect
the determination as to whether a relationship poses a threat
to the Intelligence Community, former employees must have an
obligation to report material changes in the circumstances
surrounding their relationship with a foreign power. In order
to insure timely transmittal of this information, these reports
must be made promptly.
e. Need for Both Criminal Penalties and Injunctive Relief
Because relationships with foreign powers offer significant
financial rewards, and because certain relationships may result
in serious damage to the national security, civil damages would
be ineffective and inappropriate for violations of the bill's
approval and reporting requirements. However, because damage
once done could not be repaired, we also see a need for
injunctive relief to enjoin a former employee from entering
into non-approved relationships. We also see a need for civil
remedies to provide a means to both obtain information and to
provide a mechanism to assure that the statute is carried out
as written.
f. Need for Extraterritorial Jurisdiction
By their very nature, relationships with foreign powers are
likely to have been created and maintained outside of the
territory of the United States. Extraterritorial jurisdiction
is necessary to reach the majority of acts which the
legislation seeks to control.
II. Section-by-Section Analysis
Subsection 801(a) establishes a new requirement for
employees of the Intelligence Community to obtain approvals to
engage in certain activities during the first two years
following their separation from an agency within the
Intelligence Community. A former employee would be required to
seek advance approval before directly or indirectly entering
into the following:
Employment with a foreign power, an advisory
relationship with a foreign power, a financial
relationship with a foreign power; or;
providing aid, services or assistance to a foreign
power, or;
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
providing guidance, assistance or information to a
foreign power concerning intelligence, or information
derived from or directly related to his former
position within the Intelligence Community.
Under this section, former employees would be required to
seek advance approval before they negotiated for employment
with a foreign power, before supplying any consultative
services to a foreign power, or before serving as a paid or
unpaid spokesman or witness for a foreign power.
Subsection (b) exempts officers or employees of the
government who act in the course of their official duties.
Subsection (c) authorizes each head of an intelligence
agency to waive the provisions, of subsection (a) for any
particular person or class of persons. The agency head's
actions are discretionary and nonreviewable.
Subsection 802(a) establishes the requirement to seek prior
approval to enter into relationships or engage in activities
otherwise prohibited by section 801. Section 802(a) defines
the reporting requirement and sets forth the minimum
information required to be included in a request for approval.
Subsection (b) establishes the criteria for approval: that
an activity will not involve the unauthorized disclosure or use
of classified information and that it will not be inconsistent
with national security. The authority to approve is
discretionary with the agency head, not reviewable, not
appealable.
Subsection (c) states that approval to engage in an
activity does not affect any potential civil or criminal
liability. Accordingly, application of the conflict of
interest statutes, 18 U.S.C 201-209 is not affected, nor are
secrecy agreements between the government and its former
employees.
Section 803(a) establishes a continuing duty to report for
each year during which a financial relationship or activity
continues. This duty to report extends only through the first
two-year period following separation from the intelligence
community.
Subsection (b) establishes a duty to report material
changes in the circumstances affecting the relationship or
activity and requires former employees to file such reports
within 10 days of the occurrence of a change in circumstances.
On review of the updated report, the head of the agency
involved may require the former employee to reapply for
approval to engage in the relationship or activity. If the
head of the agency declines to approve the activity, the
employee must terminate the activity within 10 days.
57
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Subsection (c) establishes the requirement to file a
termination report within 30 days of the termination of a
financial relationship or activity. Subsection (d) sets forth
the authority of the agency head to require employees to
provide additional information to permit him to carry out the
provisions of the bill.
Subsection 804(a) defines a continuing offense for failure
to file reports required by section 803.
Subsection (b) defines as unlawful the making of false, or
untrue statements or the omission of material facts.
Subsection (c) defines as unlawful the omission of required
information.
Subsection 805(a) establishes criminal penalties for
willful violations of sections 801, 802(a), 803, and 804. This
subsection permits a defendant to claim as a defense that he
had no actual knowledge of the bill's requirements.
Subsection (b) sets forth jurisdiction in the district
courts for injunctive relief to require compliance with the
bill's reporting requirements or compliance with any of the
bill's other provisions. The intent of this section is to
permit the district court to enjoin a former employee from
entering into or continuing an unapproved activity.
Proceedings under this subsection will be expedited by the
court.
Section 806 requires the various agencies to issue
regulations to carry out the provisions of the bill.
Section 807 establishes extraterritorial jurisdiction.
Jurisdiction is conferred on the district court over citizens
and permanent resident aliens.
Section 808 provides definitions. For the purpose of the
bill, "intelligence agency" includes executive intelligence
agencies, and the Senate Select Committee on Intelligence
(SSCI) and House Permanent Select Committee on Intelligence
(HPSCI). The term "designated foreign power" is defined to
include foreign governments, all political subdivisions of such
governments, political parties of foreign governments,
governments in exile, international or multinational
organizations composed of foreign governments, or an agent or
representative of a foreign government.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Section 901 adds a new section to the National Security Act
of 1947 (50 U.S.C. 401 et seq.) prohibiting certain unauthorized
disclosures of classified information.
Proposed Section 901 provides criminal penalties for
willful unauthorized disclosure of classified information by
current or former federal employees and others, such as
government contractors, who have or have had authorized access
to classified information. With the narrow exceptions of
unauthorized disclosures of atomic energy Restricted Data,
communications intelligence and cryptography information, and
the identities of covert agents, willful unauthorized
disclosures of classified information by those entrusted with
it by the government are not per se offenses under existing
federal criminal statutes.
Subsection (a) of 901 prohibits willful disclosure or
attempted disclosure of classified information, by a federal
civilian or military officer or employee or other person with
authorized access to such information, to any person who is
neither a federal civilian or military officer or employee nor
a person with authorized access to such information. The
subsection provides criminal penalties of not more than five
years imprisonment or a $25,000 fine, or both, for each
violation.
Subsection (a) also prohibits unauthorized disclosures by
persons who previously have been officers or employees of the
United States, and to persons who have had authorized access to
classified information. This retroactive feature is important
to ensure that criminal liability under the proposed section is
not evaded by an individual who begins to make unauthorized
disclosures after government service or authorized access has
ceased.
Subsection (b) of 901 applies to a current or former
federal civilian or military officer or employee, and to any
other person who has or has had authorized access to classified
information, who aids or abets another such person in the
unauthorized disclosure of the information, directly or
indirectly such as through a chain of intermediaries, to a
person who is neither a federal civilian or military officer or
employee, nor a person with authorized access to the classified
information. The criminal penalties for such an offense are
identical to those provided for the offense defined in
subsection (a).
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Subsection (c) of 901 provides definitions for terms
employed in subsections (a) and (b). Subparagraph (i) defines
"classified information" to consist of information or material
that has been determined by the United States Government to
require protection against unauthorized disclosure for reasons
of national security pursuant to a statute, Executive Order, or
litigation. It is intended that prosecutions would be barred
unless a person has clear notice or reason to believe the
information disclosed was classified. Subparagraph (ii)
defines the term "disclose," or "discloses," to include all
forms of disclosure enumerated in the existing provisions of 18
U.S.C. 793-798 and 50 U.S.C. 426, 783. Subparagraph (iii)
defines the term "authorized access" to include authority or
permission to receive information within the scope of
authorized government activities or pursuant to the routine
security clearance processes of the Executive branch, orders of
the courts of the United States, or rules of either House of
Congress.
Subsection (d) of 901 assures that no criminal liability
will attach under subsections (a) or (b) to otherwise lawful
disclosures of classified information to the Congress or the
courts.
Subsection (e) (i) assures that no criminal liability will
attach when the information previously has been disclosed
publicly by U.S. government officials authorized to do so.
Subsection (e) (ii) further permits a defendant to assert as a
defense that the information disclosed was not information that
was obtained as a result of employment or to which he or she
had authorized access as defined in the bill. Subsection (e)
(iii) allows a defendant to assert as a defense the good faith
publication based upon prior U.S. Government review of the
information pursuant to a request from the defendant for
prepublication or declassification review. Prosecution would
be barred if the defendant has submitted the information for
review, pursuant to an express agreement providing for
prepublication review or otherwise, and has been notified by
the Government that is has no objection to the disclosure or
declassification on national security grounds, or if the U.S.
objection or denial of declassification has been overturned by
a federal court decision that is final.
Subsection (f) is designed to ensure
that
no prosecutions
may occur unless the Attorney General and
the
head of the
department or agency with responsibility
for
the classified
information concerned have certified that
the
information
disclosed constitutes properly classified information. Such
certifications shall be final and unreviewable, and shall be
conclusive indication that the information constitutes
information that properly meets the criteria for a specific
level of classification under statute or Executive order.
60
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
However, a defendant may challenge the propriety of the
classification by showing that the information was available
and obtained from public sources prior to the defendant's
disclosure. In such cases, the United States shall be provided
an opportunity to establish that the information nevertheless
remained properly classified despite its availability from
public sources, because it had not been officially disclosed or
confirmed by the United States. A defendant also may challenge
the classification by making a prima facie showing, based upon
personal knowledge or otherwise admissible evidence, that the
information was improperly classified by the U.S. at the time
of the defendant's disclosure because it did not meet the
substantive criteria for classification called for by
applicable statute, order, or directive. It is intended by
this subsection that, upon the requisite showing by a
defendant, the United States shall justify the propriety of the
classification, in camera ex parte, by showing the damage that,
at the time of the defendant's disclosure, reasonably could be
expected from disclosure. Thus, a prosecution could not be
maintained under this section if a defendant discloses certain
information that is available from public sources because of a
prior unauthorized disclosure, unless the United States can
establish that, at the time of the disclosure, the additional
disclosure of the information or confirmation by a person with
authorized access reasonably could be expected to cause damage
to the national security. Further, no prosecution could be
maintained if, after a prima facie showing by the defendant
that classification was arbitrary or otherwise improper, the
court rules in defendant's favor. Finally, the provision for
in camera, ex parte consideration of the propriety of the
classification is intended to permit the court to determine the
issue without exposing additional classified information to
persons not authorized to have access to such information.
It is intended that the court's examination on the matter shall
be de novo in accordance with the standards for review
established under the Freedom of Information Act. The court's
determination on this issue is to be conclusive on the
propriety of the classification, and is a matter of law.
Subsection (g) provides the United States the right to an
interlocutory appeal from any adverse ruling by the court on
the propriety of the classification. This provision enables
the issue to be resolved before submitting the case to trial,
and parallels the provision for interlocutory appeal contained
in the Classified Information Procedures Act. It is intended,
moreover, that the provisions of that Act also will be
available to ensure the protection of classified information
from unauthorized disclosure.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Subsection (h) provides that prosecutions may be commenced
even if the disclosure that provides the basis for prosecution
under the bill is made outside the territorial jurisdiction of
the United States.
Section 1001 makes clear that, with the exception of any
specific legislative authorities which may be contained in the
Intelligence Authorization Act for Fiscal Year 1986, the Act is
intended only to authorize appropriations and does not
constitute authority for the conduct of any intelligence
activity prohibited by the Constitution or laws of the United
States.
Section 1002 authorizes the increase of appropriations
authorized by the Act for salary, pay retirement, and other
benefits for federal employees as necessary for increases in
such benefits authorized by law.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
INTELLIGENCE AUTHORIZATION ACT FOR
FISCAL YEAR 1987
NOTE: Where applicable, changes in existing law are shown as
follows: existing law in which no change is proposed
is shown in roman; existing law proposed to be struck
is enclosed in brackets; new material is underscored.
TITLE I
INTELLIGENCE ACTIVITIES
Section 101: No substantive change.
Section 102: No substantive change.
Section 103: No substantive change from Section 104 of the
fiscal year 1986 Act.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
Section 201: No substantive change.
Section 202: No substantive change.
Section 203: No substantive change.
CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY SYSTEM
Section 301: No substantive change.
ADMINISTRATIVE PROVISIONS RELATED TO
INTELLIGENCE AGENCIES
Section 401: Amends section 3303a of Title 44, United
States Code, by adding at the end thereof the following new
subsection:
(g) The requirement in subsection (a) of this section
that the Archivist provide notice in the federal register
of the list and schedule of records proposed for disposal
shall not apply to the Central Intelligence Agency or the
National Security Agency.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Section 402: Amends the National Security Act of 1947
(50 U.S.C. 401 et seq.) by adding at the end of section 102a
the following new section:
SEC. 102b. In any civil action, suit, or proceeding in
which the United States or any officer, employee or agent
thereof is a party, or in which the United States has an
interest, an interlocutory appeal may be taken as of right from
a decision of any court of the United States, or a judge
thereof, on any evidentiary or discovery matters, or
potentially dispositive motions, if the Director of Central
Intelligence certifies that the decision will have an adverse
impact upon the national security of the United States. In
such cases, appeal may be taken upon application of the
Attorney General to the appropriate courts of appeals, which
shall have jurisdiction of appeals under this provision, except
where direct review may be had in the Supreme Court. A stay of
of all proceedings shall be granted pending disposition of the
appeals.
Section 403: Amends the Central Intelligence Agency Act of
1949 (50 U.S.C. 403a et seq.) by adding at the end thereof the
following new section:
Extra Credit for Service at Unhealthful Posts
SEC. 16. The provisions of subsection 251 (b) of the
Central Intelligence Agency Retirement Act of 1964 for Certain
Employees (50 U.S.C. 403 note) authorizing the Director of
Central Intelligence to establish a list of unhealthful posts
for which an extra retirement credit for service at such posts
may be provided to an Agency employee who is a participant in
the Civil Service Retirement and Disability System or in a new
Government retirement system as defined in the Federal
Physicians Comparability Allowance Act of 1978, as- amended,
in the same manner and to the same extent in the case of an
Agency employee who is a participant in the Central
Intelligence Agency Retirement and Disability System.".
Section 404: (a) Amends the Central Intelligence Act of
1949 (50 U.S.C. 403a et seq.) by adding at the end of Section
16 the following new section:
SEC. 17. In its discretion, the Agency may, on the grounds
of prior or current alcohol or drug abuse, deny to or remove
from any individual access to classified information; refuse to
hire any applicant for Agency employment; and,
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
terminate,
suspend,
or
place limitations or conditions on the
continued
employment
of
any Agency employee, notwithstanding
any other
provisions
of
law."
(b) Amends the National Security Agency Act of 1959 (50
U.S.C. 402 note):
1) by redesignating section 2 as section 2(a) and
2) by adding at the end thereof the following new
subsection:
b) The Secretary of Defense (or his designee for
the purpose) may, in his discretion, on the grounds of
prior or current alcohol or drug abuse, deny to or
remove from any individual access to classified
information; refuse to hire any applicant for Agency
employment; and,terminate, suspend, or place
limitations or conditions on the continued employment
of any Agency employee, notwithstanding any other
provisions of law.
Section 405 (a): Amends the National Security Act of 1947
(50 U.S.C. 401 et seq.) by adding at the end thereof the
following new section:
Section 1001. (a) The remedy against the United States
provided by sections 1346(b) and 2672 of
title 28 of the United States Code for
claims for injury or loss of property,
or personal injury or death, resulting
from the negligent or wrongful act
of omission of any officer or employee
of the Intelligence Community while
acting within the scope of his office or
employment shall hereafter be exclusive
of any other civil action or proceeding,
arising out of or relating to the same
subject matter, against the officer or
employee whose act or omission
gave rise to the claim, or against the
estate of such officer or employee.
(b) The United States shall be liable, to the
extent that liability for such tort is
recognized or provided by applicable
Federal law, for claims for money damages
sounding in tort arising under the
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Constitution of the United States
resulting from an act or omission of
any officer or employee of the
Intelligence Community while acting
within the scope of his office or
employment. Such claims shall be
treated in the same manner as claims
cognizable under section 1346(b) and
2672 of title 28 of the United States
Code. The remedy against the United
States provided by this subsection
shall hereafter be exclusive of any
other civil action or proceeding,
arising out of or relating to the
same subject matter, against any
officer or employee whose act or
omission gave rise to any employee.
This remedy shall be deemed an
equally effective substitute for
any recovery against the officer
or employee in his individual
capacity directly under the
Constitution. The United States
shall not be liable for interest
prior to judgment or for punitive
damages.
(c) The Attorney General shall defend any
civil action or proceeding brought in
any court against any person referred
to in subsection (a) and (b) of this
section (or the estate of such person)
for any such claims. Any such person
against whom such civil action or
proceeding is brought shall deliver
within such time after date of service
or knowledge of service as determined
by the Attorney General, all process
served upon such person or any attested
true copy thereof to such person's
immediate superior or to whomever was
designated by the Federal agency,
which employed the individual at the
time of the alleged act or omission that
gave rise to the action or proceeding,
to receive such papers and such person
shall promptly furnish copies of the
pleading and process therein to the
United States attorney for the district
embracing the place wherein the action
or proceeding is brought, to the Attorney
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
General and to the head of that Federal
agency.
(d) Upon certification by the Attorney General
that the defendant officer or employee was
acting within the scope of his office or
employment at the time of the incident
out of which the action arose, any civil
action or proceeding commenced in the
United States district court shall be
deemed an action against the United
States under the provisions of title 28
of the United States Code and all
references thereto, and the United
States shall be substituted as the party
defendant.
(e) Upon certification by the Attorney General
that the defendant officer or employee was
acting within the scope of his office or
employment at the time of the incident out
of which the action arose, any civil action
or proceeding described in subsection (c)
which is commenced in a State court shall
be removed, without bond, at any time before
trial, by the Attorney General to the district
court of the United States for the district
and division embracing the place in which the
action or proceeding is pending. Such action
shall be deemed an action brought against the
United States under the provision of title 28
of the United States Code and all references
thereto, and the United States shall be
substituted as the party defendant. The
certification of the Attorney General shall
conclusively establish scope of office or
employment for purposes of removal.
(f) In any civil action or proceeding brought under
this section, the United States shall have
available all defenses heretofore available to
the officer or employee whose act or omission
gave rise to the claim, and all defenses to
which it would have been entitled if the action
had originally been commenced against the
United States under section 1346(b) and
sections 2671 through 2680 of
title
28 of
the United States
Code,
except
that
section
2680(k) shall not
apply
to any
cause
of
action covered by
this
section.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
(g) The Attorney General may compromise or
settle any claim asserted in any such
civil action or proceeding in the manner
provided in section 2677 of title 28 of
the United States Code, and with the same
effect.
SUPPORT FOR DEFENSE INTELLIGENCE COLLECTION ACTIVITIES
Section 501: Amends subtitle(a) of Title 10, United States
Code, by adding the following new chapter after Chapter 18:
CHAPTER 19 - SUPPORT FOR INTELLIGENCE
SEC.
391. Purpose of this chapter.
392. Definition.
393. Authority to conduct commercial cover.
394. Authority to acquire logistic support, supplies, and
services.
395. Oversight.
396. General Provisions.
SEC. 391. Purpose of this chapter.
The purpose of this chapter is to provide clear
authority for the Secretary of Defense or the Secretaries
of the Military Departments to conduct support activities
necessary for authorized and appropriately coordinated
intelligence collection activities of the Department of
Defense.
SEC. 392. Definition.
a. "Intelligence collection activities" means the
collection of foreign intelligence or counterintelligence
information by intelligence components of the Department of
Defense.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
b. "Intelligence support activities" means those
activities described in sections 393 and 394, below.
c. "Foreign intelligence" means information relating
to the capabilities, intentions, and activities of foreign
powers, organizations, or persons, but not including
counterintelligence except for information on international
terrorist activities.
d. "Counterintelligence" means information gathered
and activities conducted to protect against espionage,
other intelligence activities, sabotage, or assassination
conducted for or on behalf of foreign powers, organizations
or persons, or international terrorist activities, but not
including personnel, physical, document or communications
security programs.
e. "Commercial cover" means a business entity that is
established solely to conceal the role of an intelligence
component of the Department of Defense as it performs
intelligence collection activities.
SEC. 393. Authority to conduct commercial cover.
a. The Secretary of Defense or the Secretaries of the
Military Departments, after consultation with the Director
of Central Intelligence and the Director of the Federal
Bureau of Investigation as appropriate, may establish and
conduct commercial entities such as corporations,
partnerships, sole proprietaries, and other business
entities as commercial covers to support intelligence
collection activities of the Department of Defense, as
defined herein. Such commercial entities may be
established only upon written certification by the
Secretary concerned that commercial cover is necessary to
the conduct of authorized intelligence collection
activities.
b. The establishment and operation of commercial
entities pursuant to this section shall be in accordance
with prevailing commercial practices so long as such
practices are not inconsistent with the purposes of
commercial cover. To this end, laws applicable to federal
appropriations, federal property management, federal
acquisitions, federal employment and government
corporations shall not apply to the establishment and
operation of commercial covers upon the written
certification by the Secretary concerned or his designee
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
for the purpose that the application of such laws would
risk the compromise of commercial cover.
c. The Secretary of Defense or the Secretaries of the
Military Departments, or their designees, are authorized to
deposit and withdraw fund
s a
ppropriated for the Departmen
t
of Defense used to conduc
t c
ommercial cover and funds
generated by the business
en
tities authorized by this
section in banks or other
fi
nancial institutions.
d. Funds generated
by
such business entities may be
used to offset necessary
and
reasonable expenses incurred
by the commercial cover.
As
soon as practicable, funds
generated by a commercial cover that are no longer
necessary for the conduct of that commercial cover shall
be
deposited in the Treasury of the United States as
miscellaneous receipts.
e. Upon the liquidation, dissolution, sale, or other
final disposition of a commercial cover established and
conducted under the provisions of this section, the funds,
after obligations are met, shall be deposited in the
Treasury of the United States as miscellaneous receipts.
SEC. 394. Authority to acquire logistic support,
supplies, and services.
a. Subject to the availability of appropriations, the
Secretary of Defense or the Secretaries of the Military
Departments, or their designees, may acquire any goods,
services, property, buildings, facilities, space,
insurance, licenses and any equipment necessary in order to
establish or maintain a commercial cover.
b. Acquisitions made under the provisions of this
section are to be made utilizing procedures consistent with
prevailing commercial practice so long as such practices
are not inconsistent with the purposes of the commercial
cover. To this end, laws applicable to federal
acquisitions, federal appropriations, federal property
management, and federal employment shall not apply where
the application of such laws would risk compromise of the
commercial cover.
SEC. 395. Oversight.
The Secretary of Defense shall establish a system to ensure
oversight of and accountability for the intelligence support
activities conducted pursuant to sections 393 and 394 of this
title.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
SEC. 396. General Provisions.
a. The intelligence support activities authorized
pursuant to sections 393 and 394 may be conducted only in
accordance with regulations promulgated by the Secretary of
Defense.
b. The Secretary of Defense, or Secretaries of the
Military Departments shall ensure that elements of the
Department of Defense that undertake intelligence support
activities pursuant to this chapter conduct an annual
review and audit of such support activities and shall
ensure that the House Permanent Select Committee on
Intelligence and the Senate Select Committee on
Intelligence are kept fully and currently informed of such
activities, as prescribed in section 413 of Title 50.
c. Intelligence support activities authorized under
this chapter shall be protected pursuant to 50 U.S.C.
403(d)(3).
d. The table of chapters at the beginning of
subtitle A of such title and at the beginning of Part I of such
subtitle are each amended by inserting after the item relating
to chapter 18 the following new item:
19. Support for Intelligence.........391.
TITLE VI - ENHANCED FBI COUNTERINTELLIGENCE
CAPABILITIES
Section 601(a): Amends Section 1114(a)(1) of the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3414) as follows:
(a)(l)Nothing in this chapter (except sections 3415,
3417, 3418, and 3421 of this title) shall apply to the
production and disclosure of financial records pursuant to
requests from[--
(A) a Government authority authorized to conduct
foreign counter- or foreign positive-intelli-
gence activities for purposes of conducting
such activities; or
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
(B)] the Secret Service for the purpose of
conducting its protective functions
(18 U.S.C. 3056; 3 U.S.C. 202,
Public Law 90-331, as amended).
(b)Amends Section 1114 by adding at the end thereof
the following:
(c)(1) Notwithstanding any provisions of federal, state,
local or foreign law to the contrary, a financial institution,
or officer, employee, or agent of a financial institution,
shall provide access to, and copies of, financial records of a
customer that are responsive to a request made by a Government
authority authorized to conduct foreign intelligence or
counterintelligence activities, for purposes of conducting such
activities;
(2) A request for access to, or copies of, financial
records, for foreign intelligence or counterintelligence
purposes, by a Government authority authorized to conduct such
activities, shall include the certificate required in section
3403(b) of this Title, signed by a supervisory official of a
rank designated by the head of the Government authority.
(3) No financial institution, or officer, employee, or
agent of such institution, shall disclose to any person that a
Government authority described in paragraph (1) has sought or
obtained access to a customer's financial records.
(4) The Government authority specified in paragraph (1)
shall compile an annual tabulation of the occasions in which
this section was used.
(5) The provisions of sections 3415, 3417, 3418 and 3421(b)
shall apply to requests made pursuant to this subsection."
Section 602: Amends section 6103(i) of title 26, United
States Code by adding at the end thereof the following new
paragraph:
(8) Federal Bureau of Investigation Counterintelligence
Activities --Upon a determination by the Attorney General of
his designee that there is probable cause to believe that a
taxpayer is a foreign power or an agent of a foreign power (as
defined in section 101 of the Foreign Intelligence Surveillance
Act of 1978 (50 U.S.C. 1801)), the return of the taxpayer and
return information which relates to such taxpayer shall, upon
request for foreign counterintelligence purposes by the Federal
Bureau of Investigation approved by the Attorney General, be
open (to the extent of the approved request) to inspection by,
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
or disclosure to, the Federal Bureau of Investigation. The
Federal Bureau of Investigation is authorized to transfer
taxpayer information obtained pursuant to this subsection to
another federal agency or department when it is relevant to
foreign counterintelligence matters within the jurisdiction of
that agency or department.
Section 603(a): Amends Chapter 33 of Title 28 by adding at
the end thereof the following new section:
SEC. 538. Access to Telephone Toll Records
(a) Upon receipt of a certification signed by the Director
of the Federal Bureau of Investigation or a supervisory
official of a rank designated by the Director, that the Federal
Bureau of Investigation is conductinga foreign
counterintelligence investigation in accordance with applicable
guidelines established by the Attorney General of the United
States, a communications common carrier shall produce requested
telephone subscriber information and toll billing record
information.
(b) No officer, employee, or agent of the communications
common carrier shall disclose to any person that the Federal
Bureau of Investigation has sought or obtained access to the
subscriber information and/or toll billing record information.
(c) The Federal Bureau of Investigation is authorized to
disseminate information obtained pursuant to this section to
other agencies within the Intelligence Community, as defined in
Executive order 12333, when the information is relevant to
foreign counterintelligence responsibilities of such agency.
(b) Amends the table of contents for chapter 33 of
Title 5, United States Code by adding at the end thereof the
following:
538. Access to Telephone Toll Records.
Section 604: No substantive change
Section 605(a): Amends Section 9101(b) of Title 5 as
follows:
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
(1) (b)(1) Upon request by the Department of Defense, the
Office of Personnel Management, [or] the Central Intelligence
Agency, or the Federal Bureau of Investigation, criminal
justice agencies . . .
(2) (b)(3)(A) Upon request by a State or locality, the
Department of Defense, the Office of Personnel Management, [or]
the Central Intelligence Agency, or the Federal Bureau of
Investigation shall enter into an agreement . . .
(3) (b)(3)(B) When the Department of Defense, the Office
of Personnel Management, [or] the Central Intelligence Agency,
or the Federal Bureau of Investigation" and a State . . .
(4) (c) The Department of Defense, the Office of Personnel
Management, [or] the Central Intelligence Agency, or the
Federal Bureau of Investigation shall not obtain . . .
(b) Amends Title VIII of the Intelligence
Authorization Act for Fiscal Year 1986 as follows:
Sec. 803(a) Within two years after the date of enactment
of this Act, the Department of Justice, after consultation with
the Department of Defense, the Office of Personnel Management,
[and] the Central Intelligence Agency, and the Federal Bureau
of Investigation, shall report . . .
DOD ADMINISTRATIVE AND PERSONNEL
IMPROVEMENTS
Section 701: amends Section 624 of title 10, United States
Code as follows:
(c)(1) Appointments under this section shall be made by the
President, by and with the advice and consent of the Senate,
except that appointments under this section in the grade of
first lieutenant or captain or lieutenant (junior grade) or
lieutenant shall be made by the President alone.
(c)(2) Upon a determination by the Secretary concerned that
the appointment procedures in subsection (c)(1) may be harmful
to the safety or well-being of an officer because of that
officer's participation in classified intelligence operations
or that such procedures with respect to a specific officer
could compromise an ongoing classified intelligence operation,
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
the Secretary of Defense shall approve the use of a secure
promotion list for the appointment of affected officers and
shall present such list to the President. The President alone
may appoint the officers on that list in grades below brigadier
general or rear admiral (lower half). The Secretary of Defense
shall report on the number of officers promoted under this
paragraph and the grades to which promoted at least once a year
to the Committees on Armed Services of the Senate and House of
Representatives.
Section 702: Amends paragraph 1604(e)(1) of chapter 83 of
title 10, United States Code, to extend the termination
authority granted to the Secretary of Defense in this paragraph
two additional fiscal years as follows:
Sec. 1604.
"(e)(1) Notwithstanding any other provisions of law, the
Secretary of Defense may, during fiscal years [1985 and 1986]
1987 and 1988, terminate the employment of any civilian officer
or employee of the Defense Intelligence Agency whenever he
considers that action to be in the interests of the United
States and he determines that the procedures prescribed in
other provisions of the law that authorize the termination of
the employment of such officer or employee cannot be invoked in
a manner consistent with the national security. The decisions
of the Secretary under this paragraph are final and may not be
appealed or reviewed outside the Department of Defense. 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
this termination authority is exercised.
Section 703: Amends chapter 83 of Title 10, United States
Code, as follows:
CHAPTER 83--DEFENSE INTELLIGENCE AGENCY CIVILIAN
PERSONNEL AND CIVILIAN INTELLIGENCE OFFICERS AND EMPLOYEES OF
THE MILITARY DEPARTMENTS
(a) The Secretary of Defense may, without regard to
the provisions of any other law relating to the number,
classification, or compensation of employees-
(1) establish such positions for civilian
officers and employees in the Defense Intelligence Agency and
such positions for civilian intelligence officers and employees
of the military departments as may be necessary to carry out
the functions of such Agency and departments;
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
(2) appoint individuals to such positions; and
(3) fix the compensation of such individuals for
service in such positions.
(b) 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 the General Schedule under section 5332
of title 5 for positions subject to such schedule which have
corresponding levels of duties and responsibilities. Except in
the case of an officer or employee of the Defense Intelligence
Agency or a civilian intelligence officer or employee of the
military departments serving as a member of the Defense
Intelligence or Military Department Senior Executive Service,
no officer or employee of the Defense Intelligence Agency or
civilian intelligence officer or employee of the military
departments may be paid basic compensation at a rate in excess
of the highest rate of basic pay contained in such General
Schedule.
(c) The Secretary of Defense is authorized, consistent with
section 5341 of title 5, to adopt such provisions of such title
as provide for prevailing rate systems of basic pay and to
apply such provisions to positions in or under which the
Defense Intelligence Agency or the-military departments may
employ individuals described by section 5342 (a)(2)(A) of such
title.
(d) In addition to the basic compensation payable under
subsection (b), officers and employees of the Defense
Intelligence Agency or civilian intelligence officers and
employees of the military departments who are citizens or
nationals of the United States or in Alaska may be paid
compensation, in accordance with regulations prescribed by the
Secretary of Defense, not in excess of an allowance authorized
to be paid by section 5941(a) of title 5 for employees whose
rates of basic pay are fixed by statute. Such allowances shall
be based on-
(1) living costs substantially higher than in the
District of Columbia;
(2) conditions of environment which differ
substantially from conditions of environment in the continental
United States and warrant an allowance as a recruitment
incentive; or
"(3) both of the factors described in paragraphs (1)
and (2).
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
(e) With respect to the military departments, the Secretary
of Defense may delegate authority under this subsection only to
the Secretaries of the military departments.
(f) (1) Notwithstanding any other provision of law, the
Secretary of Defense may, during fiscal years 1985 and 1986,
terminate the employment of any civilian officer or employee of
the Defense Intelligence Agency or may, during fiscal years
1987 and 1988, terminate the employment of any civilian
intelligence officer or employee of the military departments
whenever he considers that action to be in the interests of the
United States and he 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 the national security. The decisions
of the Secretary under this paragraph are final and may not be
appealed or reviewed outside the Department of Defense. 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
this termination authority is exercised.
(2) Any termination of employment under this subsection
shall 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 he is declared eligible for such
employment by the Director of the Office of Personnel
Management.
(3) With respect to the Defense Intelligence Agency, the
Secretary of Defense may delegate authority under this
subsection only to the Deputy Secretary of Defense or the
Director of the Defense Intelligence Agency or both. An action
to terminate any civilian officer or employee by either such
officer shall be appealable to the Secretary of Defense.
(4) With respect to the military departments, the Secretary
of Defense may delegate authority under this subsection only to
the Secretaries of the military departments. An action to
terminate any civilian intelligence officer or employee by the
Secretary of any military department shall be appealable to the
Secretary of Defense.
Section 704(a): Chapter 167 of Title 10, United States Code is
amended by adding at the end thereof the following new section:
2795. Exchange of Mapping, Charting and Geodesy Data with
Foreign Nations.
The Secretary of Defense may, under such regulations as are
deemed appropriate, authorize the Defense Mapping Agency to
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
exchange or furnish mapping, charting or geodetic data,
supplies or services to a foreign country or international
organization pursuant an agreement for the production or
exchange of such data.
(b) The table of contents of Chapter 167 of Title 10,
United States Code, is amended by adding at the end thereof the
following:
2795. Exchange of mapping, charting and geodesy data with
foreign nations.
Section 705: Amends subsection 1605(a) of chapter 83 of
title 10, United States Code as follows:
Section 192. Benefits for certain employees of the Defense
Intelligence Agency
"(a) The Directcr of the Defense Intelligence Agency, on
behalf of the Secretary of Defense, may provide to civilian
personnel of the Department of Defense who are United States
nationals, who are assigned to Defense Attache Offices and
Defense Intelligence Agency Liaison Offices outside the United
States, and who are designated by the Secretary of Defense for
the purposes of this subsection, allowances and benefits
comparable to those provided by the Secretary of State to
officers and employees of the Foreign Service under paragraphs
(2), (3), (4), (5), (6), (7), (8), and (13) of section 901 and
under sections 903, 705 and 2308 of the Foreign Service Act of
1980 (22 U.S.C. 4025; 22 U.S.C. 4081 (2), (3), (4), (5), (6),
(7), (8), and (13); 22 U.S.C. 4083; 5 U.S.C. 5924(4).
Section 706: Amends Chapter 57 of title 10, United States
Code, by inserting after section 1124 the following new section:
?1124a. Cash awards for exceptional foreign
intelligence collection
(a) Under regulations promulgated by the Director
of Central Intelligence, a member of the armed forces may
accept a cash award made in recognition of the member's
exceptional performance while serving on active duty in
collecting or reporting foreign intelligence information
affecting the national security of the United States. A cash
award under this section is in addition to the pay and
allowances of the recipient.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
(b) An award under this section may be paid
notwithstanding the member's death, separation, or retirement
from the armed force concerned.
(b) The table of contents at the beginning of chapter 57 of
title 10 is amended by inserting after section 1124 the
following new item:
?1124a. Cash awards for exceptional foreign
intelligence collection
RESTRICTIONS ON ASSISTANCE TO
FOREIGN POWERS BY FORMER INTELLIGENCE OFFICERS
OR EMPLOYEES
SEC. 801. The National Security Act of 1947 is amended by
adding at the end thereof a new title, Title VIII, to read as
follows:
TITLE VIII
RESTRICTIONS ON ASSISTANCE TO FOREIGN
POWERS BY FORMER INTELLIGENCE OFFICERS
OR EMPLOYEES
(a) No person, having been at any time within the
preceding two years an officer or employee of an Agency within
the intelligence community, shall without written approval to
do so from the intelligence agency which employed such
individual: i) enter into (either directly or indirectly) any
employment, advisory, financial or other relationship, whether
paid or unpaid, with a designated foreign power; ii) provide
aid, services or assistance to a designated foreign power; or,
iii) provide guidance, assistance or information to a
designated foreign power concerning intelligence or information
derived from or directly related to an officer's or employee's
former position with the Intelligence Community.
(b) Subsection (a) of this section shall not apply to an
officer or employee of a department, agency, or independent
establishment of the United States who enters into an
employment, advisory, financial or other relationship with a
designated foreign power or who provides aid,_services or
assistance to a aesignat
o icia duties as suc officer or emp oyee.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
(c) The head of an intelligence agency may in his
discretion waive the applicability of subsection (a) of this
section to any particular person, or class of persons, formerly
employed by such agency, to whom subsection (a) would otherwise
apply.
802. Required Reports
(a) A person seeking approval to enter into a relationship
or engage in activities which would otherwise be prohibited by
section 801 of this Title shall apply to the last intelligence
agency which employed such person for approval and shall submit
the following information:
(i) the foreign power involved;
(ii) The nature of the activity or relationship and
anticipated duration of the activity or relationship;
(iii) the identities of any persons on whose behalf the
applicant will be acting in the course of the activity
or relationship; and
(iv) such other information as the head of the intelligence
agency shall require to carry out this title.
(b) The head of an intelligence agency to which
application is made in accordance with subsection (a) of this
section may in his discretion grant approval to enter into a
relationship or engage in a particular activity if he concludes
that the relationship or activity: (i) will not involve the
unauthorized disclosure or use of information classified
pursuant to statute or Executive Order; and, (ii) will not be
inconsistent with national security. The head of the
intelligence agency may in his discretion place conditions upon
the grant of approval consistent with national security. All
grants of approval, including any applicable conditions, shall
be in writing.
(c) A grant of approval in accordance with subsection (b)
of this section shall not affect any potential civil or
criminal liability, under any provisions of law other than the
provisions of this title, of the person to whom approval is
granted.
803. Continuing Duty To Report
(a) Every person granted approval to enter into a
relationship or engage in an activity in accordance with
section 802 of this Title and who continues to be subject to
section 801 of this Title shall file with the intelligence
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
agency which granted the approval a report for each calendar
year during
the
continuation of the financial relationship
or
activity.
Such
reports shall be filed within thirty days
after
the end of
the
calendar year.
(b) Every person granted approval to enter into a
relationship or engage in an activity in accordance with
Section 802 of this Title shall file a report of any material
change in circumstances affecting the relationship or activity
with the intelligence agency which granted the approval within
ten days of the occurrence of such change. The head of the
intelligence agency may in his discretion require a person
reporting a material change to apply for a new grant of
approval for the relationship or other activity in accordance
with section 802 of this Title. If the head of the
intelligence agency declines to grant a new approval in
accordance with section 802 of this Title, the person who filed
a report of a material change shall terminate the relationship
or other activity within ten days after receiving actual notice
that the head of the intelligence agency has declined to grant
a new approval.
(c) Every person granted approval to enter into a
relationship or engage in an activity in accordance with
section 802 of this Title shall file a report within thirty
days of the termination of the financial transaction or other
relationship with the intelligence agency which granted the
approval.
(d) Reports required to be filed by this section shall
contain such other information as the head of the intelligence
agency with which the report must be filed may require to carry
out the provisions of this title.
804. False, misleading, or Missing Information
(a) It shall be unlawful to fail to file any report
required to be filed by Section 803 of this Title. Such
failure to file shall be considered a continuing offense for as
long as such failure exists, notwithstanding any statute of
limitations or other statute to the contrary.
(b) It shall be unlawful to make any false or untrue
statement of material fact, or to omit a material fact
necessary to make any statement made not misleading with
respect to any material fact, in connection with the filing of
any applications or reports required by this title.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
(c) It shall be unlawful to omit from an application or
report required by this title any information which the
application or report is required to contain.
(a) Whoever willfully violates section 801, subsection
802(a), section 803, section 804 of this Title, or any
regulation issued in accordance with section 806 of this
Title, shall be fined not more than $10,000 or imprisoned not
more than two years, or both; but no person shall be subject to
imprisonment under this subsection for the violation of any
regulation if he proves that he had no actual knowledge of such
regulation.
(b) Whenever in the judgment of the Attorney General any
person is engaged in or about to engage in any acts which
constitute or will constitute a violation of any provision of
this Title, or regulations issued thereunder, or otherwise is
in violation of the Title, the Attorney General may make
application to the appropriate United States district court for
an order enjoining such acts, or for an order requiring
compliance with any appropriate provision of the Title or
regulation thereunder. The district court shall have
jurisdiction and authority to issue a temporary or permanent
injunction, restraining order or such other order which it may
deem proper. The proceedings shall be made a preferred cause
and shall be expedited in every way.
The several heads of agencies within the Intelligence
Community shall issue such regulations as may be appropriate to
carry out the provisions of this title.
There is jurisdiction over an offense or violation under
this title committed outside the United States if the
individual committing the offense or violation is a citizen of
the United States or an alien lawfully admitted to the United
States for permanent residence (as defined in section
101(a)(20) of the Immigration and Nationality Act)-8 USC
101(a)(20)).
For purposes of this title:
86
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
(1) The term 'intelligence agency' or 'agency within the
Intelligence Community' shall mean: the Departments
of State, the Treasury, Defense, and Energy; the
Central Intelligence Agency; the Federal Bureau of
Investigation; such other components of the United
States Government as the President may designate as
intelligence agencies or agencies within the
Intelligence Community; the Senate Select Committee on
Intelligence and the House Permanent Select Committee
on Intelligence.
(2) The term 'officer or employee' shall mean any person
who is--
(a) employed by an intelligence agency or assigned or
detailed to such agency and assigned to a
component with responsibility for the conduct
of: (i) foreign intelligence activities, (ii),
counterintelligence activities, or (iii) special
activities conducted in support of national
foreign policy objectives abroad which are
planned and executed so that the role of the
United States Government is not apparent or
acknowledged publicly;
(b) employed by the Central Intelligence Agency;
(c) employed by the Federal Bureau of Investigation;
(d) employed by the National Security Agency
(e) a Chief of mission or a member of the United
States Foreign Service;
(f) A commissioned, warrant, or noncommissioned
officer in the armed forces of the United States;
(g) a member of the armed forces who is assigned to
the United States Army Special Forces; or
(h) a staff employee of the Senate Select Committee
on Intelligence or the House Permanent Select
Committee on Intelligence.
(3) The term 'designated foreign power' shall mean:
(a) a government of a foreign country, a foreign
political party, faction, entity or a government
in exile of a foreign country;
(b) any unit of a foreign government, including any
foreign national state, local and municipal
government;
(c) any international or multinational organization
whose membership is composed of any unit of
foreign government; and,
(d) any agent or representative of any such unit or
or such organization while acting as such.".
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
UNAUTHORIZED DISCLOSURE OF INTELLIGENCE
INFORMATION
Section 901: Amends the National Security Act of 1947 (50
U.S.C. 401 et seq.), by adding at the end thereof the
following new sections:
SEC. 901. Unauthorized Disclosure of Classified
Information
(a) Whoever, being or having been an officer or
employee of the United States or a person
having or having had authorized access to
classified information, willfully discloses,
or attempts to disclose, any classified
information to a person who is not an
officer or employee of the United States
and who does not have authorized access to
classified information, shall be fined
not more than $25,000, or imprisoned not
more than five years, or both.
(b) Whoever, being or having been an officer of
employee of the United States or a person
having or having had authorized access to
classified information, willfully aids or
abets the violation of subsection (a), shall
be fined not more than $25,000, or imprisoned
not more than five years, or both.
(c) As used in this section --
(i) the term "classified information" means
any information or material that has
been determined by the United States
Government pursuant to an Executive
Order, statute or regulation to require
protection against unauthorized
disclosure for reasons of national
security;
(ii) the term "disclose" or "discloses" means
to communicate, furnish, deliver,
transfer, impart, provide, publish,
convey, or otherwise make available;
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
(iii) the term "authorized access" means
having authority, right, or
permission to receive classified
information or material within the
scope of authorized government
activities or pursuant to the
provisions of a statute, Executive
Order, directive of the head of any
department or agency who is empowered
to classify information, order of
any United States court, or provisions
of any Rule of the House of
Representatives or resolution of the
Senate which governs the handling of
classified information by the
respective House of Congress.
(d) Nothing in this section shall be construed
to establish criminal liability for disclosure
of classified information in accordance with
applicable law to:
(i) any court of the United States, or judge
or justice thereof; or
(ii) the Senate or House of Representatives,
or any committee, subcommittee or joint
committee thereof.
(e) It is an affirmative defense to a prosecution
under this section that:
(i) before the defendant's disclosure, the
information that provides the basis for
prosecution under this section officially
had been disclosed publicly; or
(ii) the defendant did not obtain the classified
information that provides the basis for
prosecution under this section as a result
of his duties as an officer or employee of
the United States, or as a result of
authorized access to classified information;
or
(iii) the defendant has submitted the information
that provides the basis for prosecution
under this section to a department or agency
of the United States for prepublication
review, whether under a contract which
provides for such review or otherwise, or
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
for declassification review pursuant to the
provision of an Executive order, and
(a)
the
United
States
informed defendant
that
it
did not
object
to disclosure, or
(b)
the
United
States
objected to such
disclosure, or denied declassification
and such objection or denial was overruled
in a final opinion or ruling of a court
of the United States.
(f) Prosecution under this section shall be barred
unless, prior to the return of
an
indictment
or
the filing of any information,
the
Attorney
General and the head of the department or agency
responsible for the classified information
jointly certify in writing that, at the time of
the disclosure, the information constituted
properly classified information. Such
certification shall be conclusive as to the
propriety of the classification except that,
if a defendant demonstrates that the information
that provides the basis for prosecution under this
section was available from public sources or
makes a prime facie showing that the information
does not meet the substantive criteria for
classification under applicable law, the
prosecution may proceed if the United States
establishes that the information, at the time
of the disclosure, was properly classified
because the particular disclosure reasonably
could be expected to damage the national
security. The court, based upon submissions
of defendant and the United States, shall
determine the information was properly
classified. Upon request of the United
States, the court's determination of the
issue shall be in camera, ex parte. Any
determination by the court on the propriety
of the classification shall be de novo and
a matter of law, and shall be conclusive
except as provided in subsection (g) below.
(g) As interlocutory appeal by the United States
shall lie to a court of appeals from a
decision or order of the court with respect
to the propriety of the classification of
the information that provides the basis for
prosecution under this section.
(h) There is jurisdiction under this section over
an offense committed outside the United States.
90
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
TITLE X
GENERAL PROVISIONS
Section 1001. No substantive change.
Section 1002. No substantive change.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
INTELLIGENCE AUTHORIZATION ACT
FOR FISCAL YEAR 1987
Section 101: Fiscal Year 1987 authorizations are contained
in the Classified Schedule of Authorizations.
Section 102: Cost analysis not applicable.
Section 103: Cost contingent upon exercise of permissive
authority.
TITLE II
INTELLIGENCE COMMUNITY STAFF
Section 201: The fiscal year 1987 authorization is
Section 202: Cost analysis not applicable.
Section 203: Cost analysis not applicable.
CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY SYSTEM
Section 301: The fiscal year 1987 authorization is
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
ADMINISTRATIVE PROVISIONS RELATED
TO INTELLIGENCE AGENCIES
Section 401: Cost analysis not applicable.
Section 402: Cost analysis not applicable.
Section 403: To be supplied by OP/CIA.
Section 404: Cost analysis not applicable.
Section 405: Cost analysis not applicable.
Section 501: Enactment of this legislation should not
result in any additional cost to the Department of Defense or
the Federal Government.
TITLE VI - ENHANCED FBI COUNTERINTELLIGENCE
CAPABILITIES
Section 601: Cost analysis not applicable.
Section 602: Cost analysis not applicable.
Section 603: Cost analysis not applicable.
Section 604: To be supplied by FBI.
Section 605: To be supplied by FBI.
TITLE VII - DOD ADMINISTRATIVE PERSONNEL
IMPROVEMENTS
Section 701: Since the military departments plan to use
existing personnel offices to administer any programs developed
after enactment, no additional civilian or military manpower
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332R001100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
requirements are anticipated. Accordingly, it is estimated
that any additional costs resulting from enactment of these
provisions will be relatively small.
Section 702: Cost analysis not applicable.
Section 703: Since the military departments plan to use
existing personnel offices to administer any programs developed
after enactment, no additional civilian or military manpower
requirements are anticipated. Accordingly, it is estimated
that any additional costs resulting from enactment of these
provisions will be relatively small. Such costs will be
absorbed within authorized appropriation levels. It is hoped
that such costs will be offset by efficiencies to be realized
under new, less cumbersome procedures.
Section 704: Cost analysis not applicable.
Section 705: Cost contingent upon necessity to use
prescribed authority.
Section 706: Would result in a maximum cost of $140,000
per fiscal year if seven eligible Department of Defense
organizations nominated the maximum number (4) of service
members for awards each year and the recipients all received
the maximum amount payable ($5000).
TITLE VIII - RESTRICTIONS ON ASSISTANCE TO
FOREIGN POWERS EY FORMER INTELLIGENCE OFFICERS
OR EMPLOYEES
Section 801-08: Since the implementation of this title
will be undertaken by existing offices of the Intelligence
Community, no additional manpower requirements are
anticipated. Accordingly, it is estimated that any additional
costs resulting from enactment of these provisions will be
relatively small.
TITLE IX
UNAUTHORIZED DISCLOSURES OF INTELLIGENCE INFORMATION
Section 901: Cost analysis not applicable.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9
Section 1001: Cost analysis not applicable.
Section 1002: Cost contingent upon necessity to use
prescribed authority.
Declassified in Part - Sanitized Copy Approved for Release 2012/01/26: CIA-RDP88G01332RO01100120017-9