nished and involving the extension of credit to, or review or collection of an account of, the consumer; or

(B) intends to use the information for employment purposes; or

(C) intends to use the information in connection with the underwriting of insurance involving the consumer; or

(D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or

(E) otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.

§ 1681g. Disclosures to consumers

(a) Every consumer reporting agency shall, upon request and proper identification of any consumer, clearly and accurately disclose to the consumer:

(1) The nature and substance of all information (except medical information) in its files on the consumer at the time of the request.

(2) The sources of the information: except that the sources of information acquired solely for use in preparing an investigative consumer report and actually used for no other purpose need not be disclosed: Provided, that in the event an action is brought under this title [15 USCS §§ 1681 et seq.], such sources shall be available to the plaintiff under appropriate discovery procedures in the court in which the action is brought.

(3) The recipients of any consumer report on the consumer which it has furnished

(A) for employment purposes within the two-year period preceding the request, and

(B) for any other purpose within the six-month period preceding the request.

(b) The requirements of subsection (a) respecting the disclosure of sources of information and the recipients of consumer reports to not apply to information received or consumer reports furnished prior to the effective date of this title [180 days following Oct. 26, 1970; see effective date note to 15 USCS § 1681] except to the extent that the matter involved is contained in the files of the consumer reporting agency on that date.

11. AMENDMENT TO THE ELECTRONIC COMMUNICATIONS PRIVACY ACT OF 1986 (18 U.S.C. 2709) (to permit FBI access to subscriber information of persons with unlisted numbers who are called by "foreign powers" or "agents of foreign powers")

Section 2709 of title 18, United States Code, is amended by striking subsection (b) and inserting in lieu thereof the following:

"(b) Required certification. The Director of the Federal Bureau of Investigation (or an individual within the Federal Bureau of Investigation designated for this purpose by the Director) may:

(1) request such information and records if the Director (or the Director's designee) certifies in writing to the wire or electronic communication service provider to which the request is made that

(A) the information sought is relevant to an authorized foreign counterintelligence investigation; and

(B) there are specific and articulable facts giving reason to believe that the person or entity to whom the information sought pertains is a foreign power or an agent of a foreign power as defined in Section 101 of the Foreign Surveillance Act of 1978 (50 U.S.C. 1801); and

(2) request subscriber information regarding a person or entity if the Director certifies in writing to the wire or electronic communications service provider to which the request is made that

(A) the information sought is relevant to an authorized foreign counterintelligence investigation; and

(B) that information available to the Federal Bureau of Investigation indicates there is reason to believe that communications facilities registered in the name of the person or entity have been used, through the services of such provider, in communication with a foreign power or an agent of a foreign power as defined by Section 101 of the Foreign Intelligence Act of 1978 (50 U.S.C. 1801).

EXPLANATION: The problem to be addressed here is the failure of the existing statute (18 U.S.C. 2709), as interpreted by the Justice Department, to permit the FBI to obtain identifying data from the telephone company on persons with unlisted

telephone numbers who are called by foreign powers (e.g. diplomatic establishments) or agents of foreign powers (e.g. spies). The FBI can obtain toll records and other information on foreign powers and agents of foreign powers under the Act, but under the Justice Department interpretation, is precluded from ascertaining the identity of persons who are called whose numbers are unlisted. This amendment would provide the FBI with the authority to get "subscriber information" only-not the toll records-of such persons. The FBI would have to rely on other information to which it had access before proceeding with further investigative inquiries of the person who called in, once identified.

Subsection (1) is essentially a slight non-substantive revision of existing law.
Subsection (2) contains the new authority referred to above.

A copy of the section being amended is attached.

§ 2709. Counterintelligence access to telephone toll and transactional records (a) DUTY TO PROVIDE.-A wire or electronic communications service provider shall comply with a request for subscriber information and toll billing records information, or electronic communication transactional records in its custody or possession made by the Director of the Federal Bureau of Investigation under subsection (b) of this section.

(b) Required CERTIFICATION.-The Director of the Federal Bureau of Investigation (or an individual within the Federal Bureau of Investigation designated for this purpose by the Director) may request such information and records if the Director (or the Director's designee) certifies in writing to the wire or electronic communication service provider to which the request is made that

(1) the information sought is relevant to an authorized foreign counterintelligence investigation; and

(2) there are specific and articulable facts giving reason to believe that the person or entity to whom the information sought pertains 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); and

(c) PROHIBITION OF CERTAIN DISCLOSURE.-No wire or electronic communication provider, or officer, employee, or agent thereof, shall disclose to any person that the Federal Bureau of Investigation has sought or obtained access to information or records under this section.

(d) DISSEMINATION BY BUREAU.-The Federal Bureau of Investigation may disseminate information and records obtained under this section only as provided in guidelines approved by the Attorney General for foreign intelligence collection and foreign counterintelligence investigations conducted by the Federal Bureau of Investigation, and, with respect to dissemination to an agency of the United States, only if such information is clearly relevant to the authorized responsibilities of such agency.

(e) REQUIREMENT THAT CERTAIN CONGRESSIONAL BODIES BE INFORMED.-On a semiannual basis the Director of the Federal Bureau of Investigation shall fully inform the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate concerning all requests made under subsection (b) of this section.

12. AMENDMENT TO CHAPTER 204 OF TITLE 18 (to provide for rewards for information concerning espionage)

Chapter 204 of title 18, United States Code, is amended:

(1) by inserting at the end of the title of the chapter "and Espionage;"

(2) by designating all the language of section 3071 after the title of the section as subsection (1) and renumbering subsections (1), (2), and (3) as subsections (A), (B), and (C), respectively; and by inserting a new subsection (2) as follows: "(2) With respect to acts of espionage involving or directed at U.S. information classified in the interests of national security, the Attorney General may reward any individual who furnishes information

(1) leading to the arrest or conviction, in any country, of any individual or individuals for commission of an act of espionage against the United States; (2) leading to the arrest or conviction, in any country, of any individual or individuals for conspiring or attempting to commit an act of espionage against the United States; or

(3) leading to the prevention or frustration of an act of espionage against the United States."

(3) by striking "$500,000" in section 3072, and inserting in lieu thereof "$1,000,000"; and

(4) by inserting at the end of section 3077 the following new subsections:

"(8) 'act of espionage' means an activity that is a violation of section 794 or section 798 of this title; and

(9) 'U.S. information classified in the interests of national security' means information originated by or on behalf of the United States Government concerning the national defense and foreign relations of the United States that has been determined pursuant to law or Executive order to require protection against unauthorized disclosure and that has been so designated."

EXPLANATION: This amendment would provide discretionary authority.for the Attorney General to pay rewards for information leading to the arrest or conviction of an individual for espionage, or to the prevention of espionage, similar to authority that exists for the Attorney General to pay rewards for information leading to arrests or convictions for acts of terrorism. Indeed, the proposed amendment would modify the chapter in Title 18 that authorizes such rewards, incorporating the same conditions and safeguards as the reward system for reports on terrorism. A copy of chapter 204 is attached.

§ 3071. Information for which rewards authorized

With respect to acts of terrorism primarily within the territorial jurisdiction of the United States, the Attorney General may reward any individual who furnishes information

(1) leading to the arrest or conviction, in any country, of any individual or individuals for the commission of an act of terrorism against a Unites States person or United States property; or

(2) leading to the arrest or conviction, in any country, of any individual or individuals for conspiring or attempting to commit an act of terrorism against a United States person or property; or

(3) leading to the prevention, frustration, or favorable resolution of an act of terrorism against a United States person or property.

§ 3072. Determination of entitlement; maximum amount; Presidential approval; conclusiveness

The Attorney General shall determine whether an individual furnishing information described in section 3017 [18 USCS § 3071] is entitled to a reward and the amount to be paid. A reward under this section may be in an amount not to exceed $500,000. A reward of $100,000 or more may not be made without the approval of the President or the Attorney General personally. A determination made by the Attorney General or the President under this chapter [18 USCS §§ 3071 et seq.] shall be final and conclusive, and no court shall have power or jurisdiction to review it. § 3073. Protection of identity

Any reward granted under this chapter [18 USCS §§ 3071 et seq.] shall be certified for payment by the Attorney General. If it is determined that the identity of the recipient of a reward or of the members of the recipients immediate family must be protected, the Attorney General may take such measures in connection with the payment of the reward as deemed necessary to effect such protection.

§ 3074. Exception of governmental officials

No officer or employee of any governmental entity who, while in the performance of his or her official duties, furnishes the information described in section 3071 [18 USCS 3071] shall be eligible for any monetary reward under this chapter [18 §§ 3071 et seq.].

§ 3075. Authorization for appropriations

There are authorized to be appropriated, without fiscal year limitation, $5,000,000 for the purpose of the chapter [18 USCS §§ 3071 et seq.).

§3076. Eligibility for witness security program

Any individual (and the immediate family of such individual) who furnishes information which could justify a reward by the Attorney General under this chapter or by the Secretary of State under section 36 of the State Department Basic Authorities Act of 1956 may, in the discretion of the Attorney General, participate in the Attorney General's witness security program authorized under chapter 224 of this title.

§ 3077. Definitions

As used in this chapter [18 USCS §§ 3071 et seq.], the term(1) "act of terrorism" means an activity that

(A) involves a violent act or an act dangerous to human life that is a violation of the criminal laws of the United States or of any State, or that

would be a criminal violation if committed within the jurisdiction of the United States or of any State; and

(B) appears to be intended

(i) to intimidate/or coerce a civilian population;

(ii) to influence the policy of a government by intimidation or coercion; or

(iii) to affect the conduct of a government by assassination or kidnaping.

(2) "United States person" means

(A) a national of the United States as defined in section 101(a)(22) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(22) [8 USCS §§ 1101(a)(22)];

(B) an alien lawfully admitted for permanent residence in the United States as defined in section 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. § 1101(a)(22) [8 USCS §§ 1101(a)(22)];

(C) any person within the United States;

(D) any employee or contractor of the United States Government, regardless of nationality, who is the victim or intended victim of an act of terrorism by virtue of that employment;

(E) a sole proprietorship, partnership, company, or association composed principally of nationals or permanent resident aliens of the United States; and

(F) a corporation organized under the laws of the United States, any State, the District of Columbia, or any territory or possession of the United States, and a foreign subsidiary of such corporation.

(3) "United States property" means any real or personal property which is within the United States or, if outside the United States, the actual or beneficial ownership of which rests in a United States person or any Federal or State governmental entity of the United States.

(4) "United States," when used in a geographical sense, includes Puerto Rica and all territories and possessions of the United States.

(5) "State" includes any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other possession or territory of the United States.

(6) "governmental entity" includes the Government of the United States, any State or political subdivision thereof, any foreign country, and any state, provincial, municipal, or other political subdivision of a foreign country.

(7) "Attorney General" means the Attorney General of the United States or that official designated as the Attorney General to perform the Attorney General's responsibilities under this chapter [18 USCS §§ 3071 et seq.].

13. AMENDMENTS TO FOREIGN INTELLIGENCE SURVEILLANCE ACT (50 U.S.C. 1801) (to provide for a court order process for physical searches similar to that for electronic surveillance)

The Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq) is amended as follows:

1. The Table of Contents in Title I is amended by inserting "AND SEARCH" after "ELECTRONIC SURVEILLANCE".

2. The title of Title I is amended by inserting "AND PHYSICAL SEARCH" after "ELECTRONIC SURVEILLANCE."

3. Section 101(h) is amended by

(a) inserting in the introductory clause after "surveillance" the words "or physical searches"; and

(b) by inserting in subsection (1) after "surveillance" the words "or search". 4. Section 101(k) is amended by striking the text and inserting in lieu thereof the following: "Aggrieved person means a person who is the target of electronic surveillance or physical search or any other person whose communications, activities or property were subject to electronic surveillance or physical search."

5. Section 101 is amended by inserting at the end thereof the following new subsection:

(p) "Physical search" means any physical intrusion into the premises or property (including examination of the interior of property by technical means) or any seizure, reproduction or alteration of information, material or property, under circumstances in which a person has a reasonable expectation of privacy and a warrant would be required for law enforcement purposes.

6. Section 102 is amended by:

(a) inserting after "Electronic Surveillance" in the title of the section "or Physical Search"; and

(b) inserting in subsection (b) after the words “electronic surveillance" (at the first place they appear in the text), or physical search".

7. Section 103(a) is amended by inserting "or physical searches" after the words "electronic surveillance", at each place they appear in the text.

8. Section 104 is amended by:

(a) inserting in the first sentence of subsection (a) after "electronic surveillance" the words "or physical searches";

(b) inserting in subsection (a) (3) after "electronic surveillance" the words "or physical search";

(c) inserting in subsection (a)(4)(A) after “electronic surveillance" the words "or physical search";

(d) inserting in subsection (a)(4)(B) after “directed", "or a physical search is conducted,";

(e) inserting at the end of subsection (a) (4) “and” and inserting a new subsection as follows:

"(C) where approval is sought for a physical search, the facility, place, or property to be searched is owned, used,- -or possessed by, or is in transit to, a-foreign power or agent of a foreign power."

(f) inserting in subsection (a) (6) after “surveillance", the words "or search"; (g) inserting before the text of subsection (a) (8) "where approval for electronic surveillance is sought.";

(h) inserting before the text of subsection (a) (10) "where approval for electronic surveillance is sought,";

(i) inserting at the end of subsection (a) a new subsection (12) as follows: "(12) where approval for more than one physical search is sought, a statement of the number of physical searches to be conducted, and the period of time required for such searches."; and

(j) inserting in subsection 104(b) after "electronic surveillance", "or physical search".

9. Section 105 is amended by:

(a) inserting in subsection (a) after each use of "electronic surveillance" the words "or physical search"; and

(b) inserting after subsection (a)(3)(B) the following new subsection:

"(C) where authority for a physical search is sought, each facility, place, or item of property to be searched is owned, used, or possessed by, or is in transit to, a foreign power or agent of a foreign power."

(c) inserting in the introductory clause of subsection 105(b) and in subsections 105(b) (1)(A)-(E) after "surveillance", wherever it may appear, the words "or physical search".

(d) inserting in subsection 105(b)(1)(F) after “whenever", the words "electronic surveillance is authorized and";

(e) striking "and" at the end of subsection-105(b)(1)(F) and inserting the following new subsection:

"(G) whenever more than one physical search is authorized under the order, the authorized scope of each search and what minimization procedures shall apply to the information acquired by each search; and,

(f) inserting in subsections 105(c) and (d) (1) after "surveillance", wherever it may appear, the words "or physical search";

(g) inserting at the end of subsection (d) (1) the following new sentence: "Any order issued under this section authorizing a physical search shall constitute a search warrant authorized by law for purposes of any other law.”

(h) striking "a" before the word "surveillance" in subsection 105(d) (2), and inserting in lieu thereof "an electronic";

(i) inserting in subsections 105(d)(3) and (e), after each use of "surveillance", the words "or physical search"; and

10. Sections 106, 107, 108, 109, 110 and 111 are amended by inserting "or physical search" after each appearance of the word "surveillance" wherever it appears.

EXPLANATION: These amendments would expand the coverage of the Foreign Intelligence Surveillance Act of 1978 to physical searches for national security purposes that are now conducted in the United States without a court order, pursuant to approval of the Attorney General, who has been delegated such authority by the President. There is no judicial involvement in this process as there is with electronic surveillance as a safeguard to government overreaching. Further, it is clear that, as a practical matter, investigators do not appear comfortable acting under a claim of inherent Presidential authority to justify such searches if they should be chal