I am a cosponsor of S. 2089, the Counterintelligence Reform Act of 2000. I support this legislation as a constructive step towards improving the coordination and effectiveness of our counterintelligence efforts. I thank Senator Specter for his leadership in crafting this legislation and I was pleased that, we could join together on this bill.

Section 6 of the substitute amendment reflects part of an amendment I proposed, and I thank the sponsors of the amendment for including it in the substitute. This section would accomplish two worthy things:

• increase the authorized funding for a Justice Department component that processes FISA applications; and
• require the Attorney General to report to the Judiciary Committees on steps she has taken to address recommendations in a July 1999 report of the Department’s Inspector General on the handling of intelligence and national security information.

I am disappointed that my proposed amendment in its entirety was not incorporated into the substitute amendment for consideration by the Committee today. The part of my amendment dealing with authorizing increased funds for enforcement of our computer crime and intellectual property laws was removed from the bill at the last minute. In addition, the part of my amendment that was removed would require that information about intellectual property crimes committed over the Internet be included in a report that the Department is already required submit

No substantive objections or concerns have been voiced to me or my staff about this provision, which is endorsed by the Business Software Alliance, the Recording Industry Association of America and the Motion Picture Association of America. Apparently, however, I understand that the Chairman refused to consider this bill if my entire amendment remained in the bill. That part dealing with enforcement of our intellectual property was therefore taken out.

A draft Committee Report for this bill has been circulated. This is an excellent practice and one this Committee used to follow. I, for one, appreciate and compliment Senator Specter and his staff for preparing the draft report containing a detailed analysis that we can consider before we vote on the bill.

The draft report discusses the need for this legislation, noting that

“information systems are used blatantly to violate intellectual property rights, resulting in lost income to the creators of software, recordings, films, books and other copyrighted works.” Moreover, the draft report explains that “it is imperative that the U.S. Government agencies charged with investigating and prosecuting these violations [referring to both espionage and intellectual property violations] be given every possible means to succeed while at the same time ensuring the civil rights and liberties of U.S. persons are scrupulously protected.”

I concur with both of these statements, and believe my amendment in its entirety would have helped the bill fulfill its promise of helping our government agencies do a better job of protecting both our national security and important intellectual property rights. Let me provide additional detail to explain why.

First, the part of my amendment incorporated into section 6 of the substitute would authorize an increase in personnel and technology resources at the Office of Intelligence and Policy Review (OIPR), which has the responsibility within the Justice Department of Justice for processing FISA applications. The number of FISA applications processed by OIPR have increased by over seventy percent, growing at a steady rate of about 12 percent per year. Yet, since 1997, the number of FTE positions assigned to OIPR has remained capped at 29 and direct funding for the OIPR has remained constant at about $4,000,000.

Moreover, in order to make the processing of FISA applications within OIPR more efficient and to expedite secure communications between OIPR and the FBI and other intelligence agencies, a secure and integrated communications and electronic approval system is needed. Apparently, OIPR still has to use special couriers to carry classified paper back and forth to the FBI. To meet both these personnel and secure technology needs, my amendment would authorize an increase in the budget for OIPR from its current funding level of $4,084,000 to $7,000,000 for FY 2001, with increases up to $8,000,000 over the following two years.

Second, the amendment would direct the Attorney General to submit a report within 120 days to the Judiciary Committees detailing the actions the Department has already taken or plans to take to enhance the coordination of national security and foreign intelligence information within the Department. The Department’s Inspector General issued a report last year that made a number of recommendations on the Department’s handling of intelligence information. As part of our oversight duties, we should find out what changes the Department has made in response to those recommendations.

Unfortunately, the part of my amendment removed from the substitute would have authorized $4,000,000 in FY 2001 to provide federal prosecutors with training and a clearly defined mandate to prosecute cyberpiracy and counterfeiting cases. The theft of digital works has been growing along with the popularity of the Internet. As the draft report for this bill notes, the Internet provides vast new opportunities for easily distributing software, music and other copyrighted works. This part of my amendment was intended to help our federal law enforcement prosecutors and agents with the training and resources they need to protect our intellectual property rights online. In addition, it would have supplemented the information that the Attorney General is required to provide in an annual report on its intellectual property prosecutions by providing information on the number and types of offenses that involved the criminal use of the Internet.

The refusal by the Chairman to allow incorporation of my amendment into the substitute bill we will approve today is puzzling, but he is entitled to object for good reasons or no reason at all.

Nevertheless, I thank Senator Specter for his support of my amendment and incorporating part of it into his substitute amendment. I also thank the other cosponsors who have offered their support. I look forward to offering the remainder of my amendment on the floor of the Senate when S. 2089 is considered.