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104th Congress                                            Rept. 104-620
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 2
_______________________________________________________________________

 
                      INTELLIGENCE COMMUNITY ACT
                               __________

                              R E P O R T

                                 of the

                     COMMITTEE ON NATIONAL SECURITY
                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 3237

                 July 23, 1996.--Ordered to be printed

*****


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

SEC. 2. GENERAL PERSONNEL AUTHORITIES.

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

SEC. 3. PROTECTION OF IDENTITIES OF EMPLOYEES.

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

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

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

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

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

SEC. 10. LANGUAGE TRAINING FOR CRYPTOLOGIC PERSONNEL.

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

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

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

SEC. 12. SENIOR CRYPTOLOGIC EXECUTIVE SERVICE.

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

SEC. 13. GRANTS FOR CRYPTOLOGIC RESEARCH.

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

SEC. 14. AVAILABILITY OF CERTAIN APPROPRIATIONS.

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

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

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

SEC. 16. RECRUITMENT OF QUALIFIED PERSONNEL.

  (a) Purpose.--The purpose of this section is to establish an 
undergraduate training program, which may lead to the 
baccalaureate degree, to facilitate the recruitment of 
individuals, particularly minority high school students, with a 
demonstrated capability to develop skills critical to the 
mission of the National Security Agency, including mathematics, 
computer science, engineering, and foreign languages.
  (b) Assignment of Civilian Employees.--The Secretary of 
Defense may, in the Secretary's discretion, assign civilian 
employees of the National Security Agency as students at 
accredited professional, technical, and other institutions of 
higher learning for training at the undergraduate level in 
skills critical to effective performance of the mission of the 
Agency.
  (c) Limitation to Appropriated Funds.--The National Security 
Agency may pay, directly or by reimbursement to employees, 
expenses incident to assignments under subsection (b), in any 
fiscal year only to the extent that appropriated funds are 
available for such purpose.
  (d) Employee Agreement.--(1) To be eligible for assignment 
under subsection (b), an employee of the Agency must agree in 
writing to the following:
          (A) To continue in the service of the Agency for the 
        period of the assignment and to complete the 
        educational course of training for which the employee 
        is assigned.
          (B) To continue in the service of the Agency 
        following completion of the assignment for a period of 
        one-and-a-half years for each year of the assignment or 
        part thereof.
          (C) To reimburse the United States for the total cost 
        of education (excluding the employee's pay and 
        allowances) provided under this section to the employee 
        if, before the employee's completing the educational 
        course of training for which the employee is assigned, 
        the assignment or the employee's employment with the 
        Agency is terminated either by the Agency due to 
        misconduct by the employee or by the employee 
        voluntarily.
          (D) To reimburse the United States if, after 
        completing the educational course of training for which 
        the employee is assigned, the employee's employment 
        with the Agency is terminated either by the Agency due 
        to misconduct by the employee or by the employee 
        voluntarily, before the employee's completion of the 
        service obligation period described in subparagraph 
        (B), in an amount that bears the same ratio to the 
        total cost of the education (excluding the employee's 
        pay and allowances) provided to the employee as the 
        unserved portion of the service obligation period 
        described in subparagraph (B) bears to the total period 
        of the service obligation described in subparagraph 
        (B).
  (2) Subject to paragraph (3), the obligation to reimburse the 
United States under an agreement described in paragraph (1), 
including interest due on such obligation, is for all purposes 
a debt owing the United States.
  (3)(A) A discharge in bankruptcy under title 11, United 
States Code, shall not release a person from an obligation to 
reimburse the United States required under an agreement 
described in paragraph (1) if the final decree of the discharge 
in bankruptcy is issued within five years after the last day of 
the combined period of service obligation described in 
subparagraphs (A) and (B) of paragraph (1).
  (B) The Secretary of Defense may release a person, in whole 
or in part, from the obligation to reimburse the United States 
under an agreement described in paragraph (1) when, in the 
Secretary's discretion, the Secretary determines that equity or 
the interests of the United States so require.
  (C) The Secretary of Defense shall permit an employee 
assigned under this section who, before commencing a second 
academic year of such assignment, voluntarily terminates the 
assignment or the employee's employment with the Agency, to 
satisfy his obligation under an agreement described in 
paragraph (1) to reimburse the United States by reimbursement 
according to a schedule of monthly payments which results in 
completion of reimbursement by a date five years after the date 
of termination of the assignment or employment or earlier at 
the option of the employee.
  (e) Disclosure to Educational Institution of Agency 
Affiliation of Employee.--(1) When an employee is assigned 
under this section to an institution, the Agency shall disclose 
to the institution to which the employee is assigned that the 
Agency employs the employee and that the Agency funds the 
employee's education.
  (2) Agency efforts to recruit individuals at educational 
institutions for participation in the undergraduate training 
program established by this section shall be made openly and 
according to the common practices of universities and employers 
recruiting at such institutions.
  (f) Inapplicability of Certain Laws.--Chapter 41 of title 5 
and subsections (a) and (b) of section 3324 of title 31, United 
States Code, shall not apply with respect to this section.
  (g) Regulations.--The Secretary of Defense may prescribe such 
regulations as may be necessary to implement this section.

SEC. 17. AUTHORITY TO PAY CERTAIN EXPENSES FOR EMPLOYEES DYING WHILE ON 
                    ROTATIONAL TOUR OF DUTY IN THE UNITED STATES.

  (a) Authority.--The Secretary of Defense may pay the expenses 
referred to in section 5742(b) of title 5, United States Code, 
in the case of any employee of the National Security Agency who 
dies while on a rotational tour of duty within the United 
States or while in transit to or from such tour of duty.
  (b) Definition.--For the purposes of this section, the term 
``rotational tour of duty'', with respect to an employee, means 
a permanent change of station involving the transfer of the 
employee from the National Security Agency headquarters to 
another post of duty for a fixed period established by 
regulation to be followed at the end of such period by a 
permanent change of station involving a transfer of the 
employee back to such headquarters.
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