Statement for the Record

Louis J. Freeh, Director

Federal Bureau of Investigation

before the

Senate Committee on Appropriations

Subcommittee for the Departments of Commerce, Justice,

and State, the Judiciary, and Related Agencies

March 7, 2000

Good morning, Mr. Chairman and members of the Subcommittee. Once again, I am pleased to discuss the Fiscal Year (FY) 2001 budget request for the Federal Bureau of Investigation (FBI). It is a privilege to be joined by Donnie Marshall, the Acting Administrator for the Drug Enforcement Administration, and Doris Meissner, the Commissioner for the Immigration and Naturalization Service.

The work of the FBI, whether it is catching criminals, drug traffickers, terrorists, and spies; providing training, investigative assistance, and forensic and identification services to our law enforcement partners; or developing new crime-fighting technologies and techniques, is made possible by the strong support of this Subcommittee. On behalf of the men and women of the FBI, I thank you.

Overview of FY 2001 Budget Request

For FY 2001, the FBI is requesting a total of $3,280,749,000 and 25,635 permanent positions (10,752 agents) for its Salaries and Expenses and Construction appropriations. This request includes direct program increases totaling 360 new positions, including 65 new agents, and $165,692,000 for eight budget initiatives: Counterintelligence; Information Collection, Management, and Analysis; Training; Investigative Support; Counterterrorism; Violent Crimes; Technology/Cyber Crimes; and Law Enforcement Services.

In addition to direct funded resources, the FY 2001 budget request assumes a total of 3,586 reimbursable positions (1,076 agents)and 3,453 workyears. For FY 2001, the Administration is proposing to implement a user fee to pay for the costs of operating the National Instant Criminal Background Check System (NICS). The FBI estimates that the NICS program will require a total of 642 positions and workyears to operate, at a cost of $71,552,000, which would be provided by fees. This amount includes funding to implement a program of notifying appropriate State or local law enforcement when an ineligible person attempts to purchase a firearm. Under the auspices of the Interagency Crime and Drug Enforcement (ICDE) program, the FBI would be reimbursed for a total of 981 positions (592 agents) and $112,468,000 for FBI drug and gang-related task force investigations and operations. Pursuant to the Health Care Insurance Portability and Accountability Act of 1996, the FBI will receive $88,000,000 in FY 2001 to fund 776 positions (445 agents) for health care fraud enforcement.

Counterintelligence

Despite the fall of the Iron Curtain and the emergence of democracy in many of the countries formerly under the rule of communism, the threat posed to U.S. national, military, and economic security from foreign countries remains significant. Investigations in this area have become more complex as the focus of foreign intelligence services have expanded from traditional Cold War traditional military-related targets to new areas, including technology, intellectual property, and economic activity. The FBI continues to work closely with the intelligence community to identify and reduce the presence of hostile intelligence services in the U.S. To keep pace with the changing counterintelligence threat to the U.S., the FBI is proposing a counterintelligence initiative that would provide an additional $19,115,000 and 138 positions (63 agents) for this mission-critical area.

Information Collection, Management, and Analysis

To be successful, the FBI must have the capacity for collecting, storing, managing, analyzing, and disseminating case and intelligence information on a timely basis to its own investigative personnel, as well as other federal, State, and local law enforcement and the intelligence community. Existing systems and capacities must be upgraded to meet increased investigative demands. New technologies also present opportunities for making for effective and timely use of case information and intelligence currently being collected. For FY 2001, the FBI is requesting a total of $74,227,000 and 74 positions to enhance its information collection, management, and analysis capacities.

Digital Collection Systems. Since 1968, the Congress has provided the FBI and other federal law enforcement agencies with authorities that can be used under certain conditions during investigations of criminal activities to conduct electronic surveillance, including the interception of voice and data communications. Authorities governing the conduct of electronic surveillance in national security investigations were passed by the Congress in the Foreign Intelligence Surveillance Act. These authorities carefully balance each citizen's Fourth Amendment rights under the Constitution with law enforcement's mission to protect national security and maintain public safety.

For FY 2001, the FBI is requesting an increase of $25,300,000 and four positions to begin a multi-year project for replacing existing analog-based collection systems in each of its 56 field offices with new digital collection systems. The new digital systems will use both off-the-shelf commercial and specially-developed technology. Digital technology presents the means for obtaining higher quality and clearer recordings, which, in turn, will allow the FBI to improve the processing, translation, dissemination, and analysis of materials. New digital systems would also be compliant with digital-based solutions being implemented by the telecommunications industry under the Communications Assistance for Law Enforcement Act (CALEA) of 1994. Within a few years, analog access to conduct court-authorized intercepts of communications will disappear.

Additionally, the FY 2001 budget proposes an allocation of $10,000,000 from the Department of Justice Assets Forfeiture Fund Super Surplus, if available, for a multi-year initiative for storing, archiving, and managing lawfully collected electronic surveillance intelligence and evidentiary materials. This database would facilitate integration of electronic surveillance data with the FBI's Information Sharing Initiative.

Information Sharing Initiative. The underlying information technology infrastructure of the FBI is not adequate to meet either the present-day or near-term information technology needs and capacities of the FBI's criminal investigative and national security programs. To establish the requisite information technology infrastructure and develop the data processing, analysis, and dissemination capacities considered essential to satisfy criminal investigative and national security requirements, the Information Sharing Initiative strategy was developed.

To date, Congress has supported the FBI by making $80,000,000 available for investment in the Information Sharing Initiative strategy, including $20,000,000 in FY 2000 and $60,000,000 in FY 1999. Consistent with Congressional instructions, none of these funds have not been obligated. The FBI continues to consult with the Congress to obtain the necessary concurrence for the Information Sharing Initiative strategy. The FY 2001 budget proposes an investment of $60,000,000 for the Information Sharing Initiative, consisting of $20,000,000 in base funding and $40,000,000 in new funding. Additionally, $838,000 is requested to hire 15 new computer specialists to support equipment installation and operations.

Language Services. FBI investigations are increasingly affected by international criminal activities and emerging criminal enterprises and alliances that transcend national boundaries. The FBI's success in preventing international crime groups from establishing criminal operations in the U.S., as well as investigating those criminal activities that do occur, depends upon the capability to translate both foreign language conversations recorded during court-authorized electronic surveillance and records, documents, and other materials obtained during the course of an investigation.

In addition to employing a cadre of translators, the FBI uses the services of contract linguists for short-term, mission-critical criminal and national security investigations. Contract services are especially critical for supporting an increasing number of FBI cases involving less commonly spoken languages. The FBI has not been able to translate all of the recorded audio conversations and documents it has obtained during investigations. To provide more timely translation services for investigations, the FY 2001 budget proposes an increase of $5,000,000 for contract translation services.

Intelligence Analysts. The FBI Strategic Plan recognizes the key role and importance of intelligence in each of its criminal investigative and national security programs. To maximize the use of existing intelligence resources and to develop the necessary integrated intelligence capacity needed for the future, the FBI recently consolidated criminal and national security intelligence analysts under the management of the Investigative Services Division at FBI Headquarters. An aggressive initiative to enhance FBI analytical capabilities, the Intelligence Capabilities for the Millennium (ICAP-2000), is being undertaken to establish standardized core skills and competencies and to develop a training curriculum for analysts. In addition to enhancing the capabilities of existing analysts, there is a need for additional analysts to support investigators at the field level with case, or tactical, intelligence and national program managers at FBI Headquarters with strategic intelligence.

To improve its analytical capabilities, the FY 2001 budget proposes an increase of $3,089,000 to hire 55 new Intelligence Research Specialists (IRS) for national security investigations. Twenty eight (28) IRSs would be allocated to FBI field offices to assist case agents through the development of tactical analysis and 27 IRSs would be assigned to FBI Headquarters to support national program managers through the development of strategic analysis.

Training

The FBI's ability to respond to the difficult and complex challenges from crime, threats of terrorism, and hostile intelligence services, requires a well-trained workforce that possesses the skill sets needed to be effective in their jobs. The importance of training in today's law enforcement environment is further heightened by the rapid pace of technological change and the changing scope of the FBI's investigative mission. In April 1999, the FBI adopted a comprehensive policy for the continuing development and training of FBI employees that emphasizes the importance of training and continuous learning. Under this new policy, all FBI Agents and support employees are now required to obtain the equivalent of no fewer than 10 hours of developmental training annually, and over a 3-year period, not less than 50 hours of developmental training. The FBI will use traditional "classroom" training at the FBI Academy, distance learning, specialized training from vendors, and computer-based, interactive technology to assist employees in satisfying this requirement. For FY 2001, the FBI proposes increases totaling $8,395,000 for training programs, technology, and firearms range modernization.

FBI Academy Training. The FBI's primary training venue is the FBI Academy, located at Quantico, Virginia. With the recent opening of the Justice Training Center, the FBI has regained approximately 20 percent of the Academy's dormitory capacity that was previously allocated for the Drug Enforcement Administration. This equates to being able to provide one-week of training to an additional 7,000 FBI employees. To make full use of the training and dormitory capacity of the FBI Academy, an additional $2,800,000 is required to pay for the travel of 7,000 additional FBI students. Without this additional funding, the FBI will not be able to use the FBI Academy at its full capacity level.

Interactive Multi-media Courses. Not all FBI training requirements can be satisfied with one approach to training. Rather, a combination of classroom, distance-learning, and computer-based, multi-media instruction packages are needed to meet the varying needs and schedules of both training programs and individual students. Technology-based training methods provide an opportunity to deliver training to employees with a high degree of effectiveness, yet at a substantial cost savings over traditional "on-site" training.

The FBI believes interactive, multi-media technology offers the potential for meeting training needs in several areas, particularly through self-paced courses on core topics such as informant development, interviewing and interrogation, and case management. An initial CD-rom based multi-media course, "Interview and Interrogation," has proven very successful and has been incorporated into the New Agent training curriculum. The course is also used by more experienced field agents to refresh their knowledge and skills. The FBI has made copies of the course available to all federal, state, and local law enforcement. Funding totaling $1,500,000 is requested to prepare four additional interactive, multi-media courses on the topics of Informant Development, Basic Criminal Investigation, Leadership and Management, and Ethics.

Development of Analytical Capabilities. The FBI cannot achieve the goals of its strategic plan without a substantial improvement in the skills and expertise of its existing analytical cadre. All investigative program managers have cited weaknesses in analytical capability as a key shortfall in their ability to undertake proactive investigations and identify emerging groups and crime trends. To correct these shortfalls and assure quality analysis, all FBI analysts must achieve a high standard of professional skill and expertise.

In recognition of this situation, the FBI has begun a multi-year initiative, the Intelligence Capabilities for the Millennium (ICAP-2000), to overhaul the existing analytical infrastructure. The development and implementation of a comprehensive, standardized training program is a central component of this effort. For FY 2001, an increase of $1,000,000 is requested for analytical training programs. This funding will allow the FBI to provide analysts with basic training in FBI investigative programs and techniques, analytical thinking, briefing techniques, report writing, and critical analytical technologies, such as telephone analysis. Additionally, analysts would be afforded advanced training in specialized areas and substantive issues, such as money laundering, narcotics trafficking, denial and deception techniques, and foreign area studies, that will enhance individual areas of expertise and knowledge.

Specialized Training. FBI criminal and national security investigations often depend upon the use of sophisticated technical equipment, systems, and techniques that gather evidence of illegal activities and/or intelligence information on planned activities. Each FBI field office requires specially trained personnel -- Technically Trained Agents and Electronic Technicians -- who support the use of these systems and techniques during investigations and surveillances.

The current complement of Technically Trained Agents is being stretched thin by both increasing operational requirements and the loss of experience due to recent retirements, reassignments, and promotions. Additionally, due to the fast-pace of changes in technology, both Technically Trained Agents and Electronic Technicians require an on-going program of technical instruction. This specialized instruction is provided at both the Engineering Research Facility located at the FBI Academy and through commercial sources. An increase of four positions and $1,195,000 is requested in FY 2001 for FBI Technically Trained Agents and Electronic Technicians training programs.

FBI Academy Firearms Range Modernization. With the support of the Congress, the FBI has undertaken a plan to modernize the FBI Academy Firearms Ranges. The existing ranges need modernization to increase capacity, minimize environmental impact, and improve the safety of FBI and Drug Enforcement Administration firearms training. With funding previously provided, the FBI has completed an environmental assessment, developed a master plan for the project, and completed architectural engineering and design. Remaining funding available will also allow us to compete a contract for construction of three 25-yard all-weather ranges, a stress obstacle course, and lead abatement.

For FY 2001, an increase of $1,900,000 is requested to continue the FBI Academy Firearms Range Modernization project. This funding would allow the FBI to continue lead abatement and construct an ammunition storage facility. This facility would replace two existing, makeshift storage facilities that do not comply with existing Department of Defense safety standards, which is a requirement due to the location of the ranges at the U.S. Marine Corps Base, Quantico.

Investigative Support

The Investigative Support budget initiative address increased funding requirements for the daily basic operational requirements of field investigators and FBI Headquarters. The FY 2001 budget proposes increases totaling $20,534,000 for four key items: telecommunications services, criminal case operations funds, digital body recorders, and program management support for implementation of the Communications Assistance for Law Enforcement Act (CALEA) of 1994.

Telecommunications Services/ATM Circuits. The FBI operates a telecommunications infrastructure that was designed in 1991 to support the Systems Network Architecture (SNA)/token ring network. This network currently serves over 600 separate FBI locations and has been maintained with few changes. This design is ill-suited to supporting electronic case files that, under the proposed Information Sharing Initiative (ISI), will include imaged documents, video/voice segments, and intelligence analyses. To satisfy the requirement for increased bandwidth for transmitting images, video, and voice, the FBI is migrating to the Asynchronous Transmission Mode (ATM) adopted by the Department's Justice Consolidated Network (J-CON).

For FY 2001, the FBI is requesting an increase of $14,334,000 to begin the acquisition of ATM circuits to support its telecommunications network. For FY 2001, the FBI intends to provide ATM circuits for key network concentration sites, large field offices, FBI Headquarters, the FBI Academy, the Clarksburg, West Virginia, fingerprint card processing center, and larger resident agencies. The migration to ATM circuits is being staged with the implementation plan for the ISI project.

Criminal Case Funds. The FBI Strategic Plan recognizes the importance of gathering, analyzing, and disseminating intelligence and of focusing investigative efforts against criminal activities with a regional, national, or international nexus. Information supplied by informants and cooperating witnesses often serves as the predicate for these types of major, long-term investigations. Criminal organizations of the type, scope, and complexity investigated by the FBI have both the illicit wealth and intense loyalty (maintained by fear of violent reprisal) that frustrate traditional law enforcement investigative efforts. To counter this challenge, the FBI requires funding for a range of case operational costs, such as the lease of telephone lines to conduct court-authorized interceptions of communications, the rental of off-site space, lease of covert vehicles, witness protection expenses, and covert travel by undercover agents, informants, and cooperating witnesses.

For FY 2001, the FBI requests an increase of $2,100,000 for criminal case operating funds and the purchase of information.

Digital Body Recorders. Audio recordings of conversations between or among subjects of a criminal investigation and informants, undercover agents, or cooperating witnesses often provide clear evidence of an individual's involvement in illegal activities. These recordings are made in strict compliance with existing guidelines and statutes. The evidence obtained from consensual-monitoring is used extensively in court to demonstrate the complicity of a person in a criminal activity. The investigative environment in which this investigative technique is used presents a high risk to the personal safety of the person wearing a recording device. New digital technology allows for much smaller and less conspicuous devices, as well as improvements in recording clarity and capacity. Additionally, digital devices are less susceptible to commercially-available countermeasures technology used by criminals to detect the presence of these devices.

The FBI is requesting an increase of $2,000,000 to replace existing analog body recorder devices with newer digital devices.

CALEA Implementation Support. The Attorney General has delegated to the FBI responsibility for managing the implementation of the CALEA. The FBI has adopted a three-phase approach toward achieving CALEA compliance. Phase One consists of working with telecommunications manufacturers and carriers to describe law enforcement's technical capability and capacity-related electronic surveillance needs. Phase Two consists of resolving and finalizing the legal and regulatory issues regarding implementation. Phase Three consists of ensuring CALEA compliance by working with carriers as solutions are deployed, assisting carriers as Systems Security and Integrity rules and procedures are adopted, and seeking enforcement against carriers for noncompliance. These phases remain consistent regardless of the specific telecommunications technology being pursued. The FBI's current focus is on achieving the deployment of CALEA solutions for wireline, cellular and broadband Personal Communications Systems (PCS) technology.

By FY 2001, emerging technologies service providers of Enhanced Specialized Mobile Radio, two-way paging, and Mobile Satellite Service will have grown and possibly exceed the number of cellular and PCS carriers today. These technologies fall within the scope of the CALEA and require adherence to law enforcement technical and capacity requirements. The FY 2001 budget request includes an enhancement totaling $2,100,000 for CALEA implementation support activities, including support for the Law Enforcement Technical Forum, facilities operations, and travel related to consultation, standards, regulatory, and solution development activities.

Counterterrorism

The United States continues to face a serious, credible threat from terrorists both abroad and at home. The number of groups and individuals capable of carrying out a terrorist act has increased over the past several years. Of particular concern to the FBI are groups and individuals for which political or religious beliefs constitute sufficient motivation for carrying out a devastating terrorist act.

To deal effectively with domestic and international terrorism, the FBI must concentrate on both prevention and response. The FBI's counterterrorism strategy is focused upon five inter-related elements to build and maintain an operational capacity for identifying, preventing, deterring, and investigating terrorist activities. First, the FBI must have the capacity to respond to acts of terrorism committed in the U.S. and abroad when those acts are directed against the U.S. government or its interests. Second, the FBI must have the capacity to receive, react to, and disseminate counterterrorism information. Third, the FBI must develop its internal capacities to support proactive counterterrorism programs and initiatives. Fourth, the FBI must have the capacity to establish and maintain sound and productive relationships with other domestic and foreign law enforcement and intelligence counterparts. Fifth, the FBI must have the capacity to use all of the necessary assets and capabilities of the FBI and other U.S. government agencies to support and initiate complex investigations and operations against domestic and international terrorists and terrorist organizations. For FY 2001, the FBI is requesting increases totaling $13,100,000 to improve and enhance existing counterterrorism initiatives.

Weapons of Mass Destruction Preparedness. At the forefront of U.S. government counterterrorism planning and preparation efforts is the threat of chemical and biological terrorism. Internationally, there is credible intelligence that terrorist organizations are attempting to acquire a capability for weapons of mass destruction. Domestically, a growing number of individuals acting alone and splinter elements within extremist groups have obtained or attempted to develop and employ chemical, biological, or radiological materials. Within the spectrum of terrorist threats, the FBI continues to believe the actual threat of a chemical or biological terrorist attack to be low; however, the consequences of such an act could be devastating. To continue on going efforts to prepare for a terrorist event using weapons of mass destruction, the FBI is requesting an increase of $3,500,000.

The National Domestic Preparedness Office (NDPO) was established to serve as the focal point for federal efforts in support of the State and local emergency responder community. The NDPO, which is managed by the FBI and is staffed by representatives from other federal agencies and State and local detailees, is organized around six program areas: planning, training, exercises, equipment/research and development, information sharing and outreach, and public health and medical services. For FY 2001, an increase of $563,000 is requested by the FBI for NDPO principal stakeholder and functional area conferences.

Funding is proposed in the FY 2001 budget for the Department of Justice to assume responsibility for several activities currently being performed by the Department of Defense under the auspices of the Domestic Preparedness Program. The budget proposes that the NDPO assume responsibility for the Chemical and Biological Helpline which provides emergency responders and planners across the United States with information on a non-emergency basis to plan, mitigate, and prepare for the effects of a chemical or biological terrorist incident. The cost of assuming helpline operations is $731,000. Additionally, the Weapons of Mass Destruction Operations Unit within the Counterterrorism Division at FBI Headquarters would assume responsibility for the Chemical and Biological Hotline operated by the National Response Center. The hotline receives incident information and provides technical assistance during a suspected or actual chemical or biological incident. The cost of assuming hotline operations is $2,206,000.

2002 Winter Olympics Preparation. The 2002 Winter Olympic Games have been designated a National Special Security Event. Consistent with responsibilities for intelligence collection and crisis management contained in PDD-39 and PDD-62, the FBI is working with the United State Secret Service and other federal, State, and local law enforcement and consequence management agencies to plan for security and public safety issues for the 2002 Winter Olympic Games that will be hosted by Salt Lake City, Utah.

For FY 2001, the FBI requests increases totaling $1,100,000 for 2002 Winter Olympic Games preparation. This funding will support planned interagency training exercises, the acquisition of telecommunications and related equipment for a joint interagency operations/intelligence center, and specialized cold weather equipment.

Hazardous Devices School. The Hazardous Devices School is the only formal domestic training school for State and local law enforcement to learn render safe and bomb disposal operations. Located at Redstone Arsenal, Huntsville, Alabama, the school is managed by the FBI Laboratory. The Hazardous Devices School is the only location where bomb technicians receive basic training and certification in accordance with standards established by the National Bomb Squad Commanders' Advisory Board. After receiving initial certification, technicians are required to be recertified every three years.

For FY 2001, there is a need to train 1,335 students at the Hazardous Devices School. To provide that level of training, the FBI requires an increase of $2,900,000.

Counterterrorism Research and Development. In FY 1998, the Congress made available $10,500,000 to the FBI under the Attorney General's Counterterrorism Fund to initiate several research and development activities, including $5,000,000 for explosives detection and counterterrorism projects, $2,500,000 for data exploitation projects, $1,000,000 for cyber training curriculum development and training at the FBI Academy, and $2,000,000 to establish a partnership with the Southwest Surety Institute.

For FY 2001, the FBI requests an increase of $5,000,000 to continue and expand counterterrorism research and development projects initiated with FY 1998 funding.

Violent Crimes

The focus of the Violent Crimes budget initiative for FY 2001 is on improving federal law enforcement services in Indian Country. Native Americans and others living in Indian Country are not sharing in the decline in violent crimes that is occurring in countless other American communities. The homicide rate in Indian Country remains three times greater than the national average. Crimes against children, including sexual and physical assaults, continue to plague Indian Country. Youth gangs present a threat to public safety. Drug trafficking is becoming a major problem. Thirty-two FBI field offices have some degree of investigative responsibility in Indian Country, ranging from exclusive jurisdiction -- 19 field offices -- to concurrent federal and state jurisdiction. For FY 2001, the FBI is requesting an increase of $4,639,000 and 31 Victim/Witness Specialists to improve its services to Indian Country.

Safe Trails Task Forces. The FBI has adapted its successful Safe Streets Task Force concept to maximize the use of limited FBI, local, tribal, and Bureau of Indian Affairs staffing to address significant violent crime problems in Indian Country. The first Safe Trails Task Force was established in 1995 by the Phoenix Field Office to work on the Navajo Nation in Arizona. Presently, the FBI sponsors 10 Safe Trails Task Forces in Gallup, New Mexico; Carson City, Nevada; Green Bay, Wisconsin; Flagstaff, Arizona; Monticello, Utah; Riverton, Wyoming; Rapid City, South Dakota; Tucson, Arizona; Phoenix, Arizona; and Glasgow, Utah. These task forces are staffed by 31 FBI Agents, 2 Bureau of Indian Affairs criminal investigators, 49 tribal police officers, and 19 local police officers.

In some areas, an obstacle to full-time participation by a local or tribal law enforcement agency is a lack of funding for overtime and related costs. For FY 2001, the FBI requests an increase of $634,000 for the overtime costs of State and local law enforcement participation on FBI-sponsored Safe Trails Task Forces.

Indian Country Forensic Examinations. The investigation and successful prosecution of crimes committed in Indian Country depends, first, upon investigators identifying and collecting evidence at crime scenes and, second, the timely examination and analysis of evidence. To address a growing workload of forensic examinations resulting from Indian Country investigations, and to improve the timeliness of results of forensic examinations to investigators and prosecutors, the FBI entered into a contract with the Arizona Department of Public Safety Laboratory for the examination of evidence collected at Indian Country crime scenes by agents assigned to our Phoenix Field Office. This arrangement has proven highly effective and successful.

For FY 2001, the FBI proposes to expand this program to include three additional field offices -- Salt Lake City, which covers Utah, Idaho, and Montana; Minneapolis, which covers Minnesota, South Dakota, and North Dakota; and Albuquerque, which covers New Mexico. The estimated annual cost for these three additional contracts is $1,405,000.

Indian Country Victim/Witness Services. Among the most significant obstacles for the FBI and other law enforcement investigating crimes in Indian Country is overcoming the reluctance of Native American victims and witnesses to cooperate in the criminal justice system. Cooperating with the criminal justice process can often present a hardship to Native American victims living in Indian Country. Victims and witnesses of violent crimes in the Indian Country often live long distances from the offices and courtrooms of government attorneys, magistrates, and judges, where they must appear as participants in the judicial process. For example, a resident of the Turtle Mountain Indian Reservation must travel 600 miles round-trip to testify before a Federal Grand Jury in Minot, North Dakota. A child sexually abused on the Fort Peck Reservation in Montana must be transported 350 miles to Billings for a medical examination and evaluation. Victim/witness services, such as assistance with transportation, overnight lodging, and preparation of impact statements for sentencing, which are readily available to many citizens in urban, suburban, and rural communities are not accessible to those living in Indian Country.

Through its Victim/Witness Assistance Program, the FBI is working to build confidence and cooperation in Indian Country. Presently, the FBI employs four Victim/Witness Specialists who are assigned to resident agencies covering Indian Country. While few in number, these individuals are contributing in a positive way. An FBI Victim/Witness Specialist in Billings, Montana, has helped the U.S. Probation Office implement an adult and juvenile sex offender treatment program on three area Indian reservations. She is also assisting the Crow Sex Offender Registration committee draft tribal legislation to register all sex offenders on the reservation. Victim/witness specialists assist FBI Agents by assisting in arranging for medical treatment, trial preparation, transportation to/from trials and other proceedings, and securing services to which they are entitled. For FY 2001, the FBI requests an increase of $2,600,000 to hire 31 additional Victim/Witness Specialists for assignment to FBI Resident Agencies serving Indian Country.

Technology/Cyber Crimes

In recent years, technological advances have fundamentally changed the way of life in this country. Computers and networks allow millions of individuals to access on a daily basis a broad range of information services, databases, commerce, and communications capabilities that were previously unavailable. A combination of reduced cost for computer technology and increased storage capacity allows the accumulation, storage, and management of large amounts of information by individuals on personal computers and peripheral devices. Most FBI investigations, especially those in organized crime, drug trafficking, crimes against children, white-collar crime, counterintelligence, and counterterrorism are encountering the use of computer technology to facilitate illegal activities. As a result, the FBI must develop the investigative and forensic capacities and capabilities to deal with the use of computer technology by criminals and others to commit crimes or undermine national security.

For FY 2001, the FBI's Technology/Cyber Crimes budget initiative proposes increases totaling 108 positions (2 agents) and $18,983,000 to enhance existing capabilities in three cybercrime fighting areas: data forensics, counterencryption, and Intellectual Property Rights investigations.

Data Forensics. One of the fastest growing demands from investigators and prosecutors is for assistance by the FBI Laboratory Computer Analysis and Response Team (CART) program for forensic examination of evidence obtained from computers and computer storage media. The data forensic process has three distinct phases: (1) acquisition, which involves recognizing and seizing electronic data of an evidentiary value from a computer, computer storage media, or computer network; (2) examination, which is the process of documenting the evidence, then locating, identifying, and extracting the pertinent data; and (3) presentation, which requires the formatting of relevant and technical evidence for use by investigators and prosecutors.

The FBI's capacity for performing CART examinations is not keeping pace with the demand for CART assistance. In FY 1999, the FBI was only able to satisfy 1,900, or 54 percent of the 3,500 requested CART examinations, resulting in a backlog of 10.1 months. By FY 2001, the FBI projects the demand for assistance will increase to 6,000 requests. Compounding the growth in the number of requests for assistance is a significant increase in the amount of data to be examined. Recently, hard disk drives have nearly doubled in storage capacity annually, from 4.3 gigabytes in 1997 to 8.4 gigabytes in 1998 to 17 gigabytes in 1999. It is expected that hard disk drives of between 60 and 80 gigabytes will be available by the end of 2000. As the capacity of storage media grows, the amount of time needed to perform forensic examinations also increases. Without additional CART examiners and data forensics examination tools, the FBI will be unable to provide support to field investigators and prosecutors.

Building a CART program capacity that will be able to deal with the demand for data forensics will require a commitment that includes hiring, training, and equipping additional examiners. To initiate such a commitment in FY 2001, the FBI is requesting $8,571,000 to hire, train, and equip 100 new CART examiners for assignment to field offices (83 positions) and the FBI Laboratory (17 positions).

Additionally, the FBI is requesting an increase of $2,800,000 to continue the development of the Automated Computer Examination System (ACES). ACES is used by CART examiners to automatically scan and review personal computer files for their format and type. Computer operating systems and applications software are continually upgraded and modified by industry. Similarly, the FBI must be able to upgrade ACES to keep pace with these changes, otherwise, ACES will lose its value as a forensic technique. The FBI intends to provide ACES to all FBI field offices, as well as other federal, State, and local law enforcement as part of an effort to build data forensics capacities at all levels of law enforcement.

Counterencryption. The widespread use of digitally-based technologies and the expansion of computer networks incorporating privacy features and capabilities through the use of cryptography presents a significant challenge to the continued ability of law enforcement to use existing electronic surveillance authorities. The FBI is already encountering strong encryption in criminal and national security investigations. In 1999, 53 new investigations encountered encryption. The need for a law enforcement cryptanalytic capability is well documented in several studies, including the National Research Council's 1996 report entitled, "Cryptography's Role in Securing the Information Society." The report recommends high priority be given to the development of technical capabilities, such as signal analysis and decryption, to assist law enforcement in coping with technological challenges.

The Administration supports the enhancement of a centralized law enforcement capability within the FBI for engineering, processing, and decrypting lawfully intercepted digital communications and electronically stored information. For FY 2001, the FBI requests an increase of $7,000,000 to further develop an initial operating capability that will allow law enforcement to obtain plain text and meet the public safety challenges posed by the criminal use of encryption. With this funding, the FBI intends to work with existing national laboratories and other government agencies to ensure all existing resources are used in executing processing functions. This approach will prevent duplication of effort. Additionally, the FBI plans to acquire necessary computer hardware, software tools, technical expertise, and services to develop capacities in four counterencryption program areas: (1) analytical engineering;

(2) signal analysis research; (3) counterencryption deployment; and (4) industry-assisted technology transfer.

Intellectual Property Rights. Currently, the U.S. is the world leader in the development of creative, technical, and intellectual property. The U.S. economy is increasingly dependent on the production and distribution of intellectual property. Intellectual property right infringement includes both violations of the Economic Espionage Act as well as traditional copyright and trademark violations. A growing percentage of intellectual property right violations now have an Internet element. Web sites can be accessed that allow individuals to distribute and download pirated materials, resulting in substantial losses to U.S. companies that invest millions of dollars in product development.

For FY 2001, the FBI is requesting an increase of 8 positions (2 agents) and $612,000 to help staff an interagency Intellectual Property Rights Center. The center, which is expected to become operational in 2000, was conceived by the FBI, Department of Justice, and United States Customs Service, to improve the coordination of intellectual property rights investigations and to enhance the exchange and analysis of intelligence on these types of activities. All government agencies having responsibility for intellectual property rights matters, including the Office of the U.S. Trade Representative, the Patent and Trademark Office, and the Copyright Office, will be invited to participate.

Law Enforcement Services

For FY 2001, the FBI is requesting an increase of 5 positions and $6,699,000 for its Law Enforcement Services budget initiative.

Federal Convicted DNA Offender Database. All 50 states have enacted legislation that requires blood samples to be taken from felons convicted of various qualifying offenses. DNA profiles from these blood samples are entered into the Combined DNA Identification System (CODIS). Presently, individuals convicted of comparable offenses in federal courts, military courts, and the District of Columbia are not required to submit blood samples. Consequently, these populations of violent criminals who may be released back into our communities, including those convicted of sexual assaults against children, are not in the CODIS. As a result, when a law enforcement agency compares DNA recovered at a crime scene against CODIS, the database will not contain samples from persons who may be logical suspects because DNA profiles from federal, military, and District of Columbia offenders are not available.

Funding totaling $5,335,000 and 5 positions are requested to implement the Federal Convicted Offenders DNA Database, which was authorized by the Anti-Terrorism and Effective Death Penalty Act of 1996. Implementation of this database requires clarifying legislative authority, which has been submitted to the Congress by the Department of Justice. This funding would allow the collection and processing of DNA samples from an estimated 20,000 individuals currently incarcerated after being convicted in federal, military, and District of Columbia courts of qualifying offenses.

National Integrated Ballistics Identification Network (NIBIN). In December 1999, the FBI and the Bureau of Alcohol, Tobacco, and Firearms (BATF) entered into a Memorandum of Understanding for joint agency implementation of the NIBIN, a single federal ballistics imaging system. NIBIN will combine the best features of the BATF Integrated Bullet Identification System and the FBI DRUGFIRE system. Under the provisions of the agreement, the FBI is responsible for the nationwide NIBIN communications network and connectivity between system sites and the national network. BATF is responsible for NIBIN hardware and software development and installation, training, security, maintenance, user protocols and support, and quality control. This joint, integrated approach to ballistic imaging will benefit all federal, state, and local law enforcement agencies by ending the competition between systems and providing law enforcement with enhanced crime-fighting technology from the FBI and BATF.

Under the agreement, BATF will replace existing DRUGFIRE systems, subject to the availability of funds. BATF plans to replace 10 DRUGFIRE units in 2000, 73 in 2001, and 68 in 2002. During the transition period, the FBI will continue to support DRUGFIRE systems not yet replaced and NIBIN communications requirements. For FY 2001, the FBI requests an increase of $1,364,000 for NIBIN connectivity. The FBI is using its existing nationwide Criminal Justice Information Services - Wide Area Network (CJIS-WAN) as the communications backbone for NIBIN.

Related Departmental Funding Requests

Mr. Chairman, I would like to highlight several requests for funding included within other Department of Justice programs that are considered important to FBI initiatives and programs.

Telecommunications Carrier Compliance Fund. Within the General Administration appropriation, a total of $120,000,000 is proposed for the Telecommunications Carrier Compliance Fund (TCCF). These funds, along with another $120,000,000 proposed by the Administration under the Department of Defense, will support ongoing efforts to implement the Communications Assistance for Law Enforcement Act of 1994 (CALEA).

In September 1999, the FBI, Department of Justice, Ameritech Services, Inc., and Nortel Networks, Inc. entered into the first software right-to-use license agreement covering one wireline switching platform. Additionally, a license fee for three other switching platforms was agreed to by Nortel Networks. Under the right-to-use agreement, Nortel Networks will grant a CALEA software license to other carriers at no charge for all switches of the same platform type installed or deployed before January 1, 1995. The FBI and the Department of Justice have reached an informal agreement, subject to the availability of funds, with AG Communications, Lucent Technologies, Motorola, and Siemens relative to nationwide right-to-use licenses. When considered cumulatively, the switching platforms of these five manufacturers account for approximately 90 percent of the historic lawfully-authorized electronic surveillance activity conducted by federal, state, and local law enforcement.

State and Local Bomb Technician Equipment. Within the funding proposed for the Office of Justice Programs (OJP), $10,000,000 is included to continue an FBI Laboratory-managed program of equipping State and local bomb technicians. Congress provided a similar amount for this program in the FY 2000 appropriation. In FY 1999, the Department of Justice provided $25,000,000 from the Working Capital Fund for the effort. Continuation of funding for this program will ensure State and local bomb squads are properly equipped to deal traditional improvised and explosive devices, as well as the initial response to devices that may be used by terrorists or others to release chemical or biological agents. This initiative compliments the State and local bomb technician training and accreditation program that the FBI Laboratory provides at the Hazardous Devices School, Redstone Arsenal, Alabama.

Grants for NIBIN, DNA Backlog Reduction, and Regional Data Forensic Laboratories. Also, requested under Community Oriented Policing Services (COPS) program is $10,000,000 for grants to reduce the backlog of ballistic evidence in state and local agencies for entry into the NIBIN system, $15,000,000 for grants to reduce the backlog of DNA profiles for entry into the FBI's national CODIS database, and $6,000,000 for grants to establish regional data forensic laboratories. These proposals are related to several on-going FBI Laboratory initiatives for improving State and local crime-fighting and forensic capabilities.

Legislative Proposals

Mr. Chairman, the FY 2001 budget requests includes two general provisions proposed by the FBI, including: danger pay authority and foreign cooperative agreement authority.

Danger Pay. Section 109 would extend to the FBI the same authority that the Drug Enforcement Administration (DEA) currently enjoys for authorizing danger pay for personnel assigned to high risk overseas locations. For the FBI, this is both a pay equity issue for FBI Agent assigned to DEA Country Offices and a recognition of the increased threat facing FBI personnel performing extraterritorial investigations in foreign locations due to our counterterrorism responsibilities. At times, FBI personnel are deployed to overseas locations where, due to the nature of our work, they face a threat or hostile environment that does not always extend to all members of the United States diplomatic team in a particular country. This authority would allow me to address those situations. This authority has been requested by the Administration in each of the past three budgets.

Foreign Cooperative Agreements. Section 110 would allow the FBI to credit to its appropriation funding that is received from friendly foreign governments for that country's share of joint, cooperative projects with the FBI. This authority would facilitate projects with friendly foreign governments, especially in support of our national security mission. The authority was first proposed by the Administration last year, was adopted by the House, but did not make its way into the final Conference bill.

Summary

Mr. Chairman, the budget proposed for the FBI for FY 2001 addresses several of the critical resource needs identified through our Strategic Planning process. These important investments will allow the FBI to meet the investigative and technological challenges we face as the FBI enters the 21st Century. These investments will also enable us to develop the core competencies that will allow us to be successful in investigating crimes, protecting national security, developing and sharing technical and forensic expertise, and working better with our State, local, and international law enforcement partners.

Congress, and this Subcommittee in particular, has been extremely generous of its financial support for the FBI over the past several years. Our successes in the field, whether they be preventing pedophiles from luring children over the Internet, to bringing terrorists from foreign lands back to the U.S. to stand trial for their actions, to protecting our nation's critical infrastructure from cyber attacks, to fostering greater cooperation with foreign law enforcement through new Legal Attach Offices, were made possible because of your support for the FBI. As we look forward to FY 2001, I am hopeful that we can continue to depend upon your support.

Again, I thank you for this opportunity to appear before the Subcommittee.