An act to authorize appropriations for fiscal year 1981 for the intelligence and intelligence-related activities of the United States Government, for the Intelligence Community Staff, and for the Central Intelligence Agency Retirement and Disability System, and for other purposes.

(Conference report filed in House, H. Rept. 96-1350)

Intelligence Authorization Act for Fiscal Year 1981 - =Title I: Intelligence Activities= - Authorizes appropriations for fiscal year 1981 for the conduct of intelligence and intelligence-related activities in specified departments and agencies of the United States Government. Authorizes the appropriation of a specified sum for fiscal year 1981 for activities of the Federal Bureau of Investigation to counter terrorism in the United States.

=Title II: Intelligence Community Staff= - Authorizes appropriations for the Intelligence Community Staff for fiscal year 1981.

Establishes an end strength ceiling of 245 full-time Intelligence Community Staff employees.

=Title III: Central Intelligence Agency Retirement and Disability System= - Authorizes appropriations for fiscal year 1981 for the Central Intelligence Agency Retirement and Disability Fund.

=Title IV: General Provisions= - Authorizes the Secretary of Defense to use intelligence and communications funds for arrangements with foreign countries for cryptologic support.

Amends the National Security Agency Act of 1959 (as entitled by this Act) to authorize funds of the National Security Agency, with respect to a special limited class of its civilian and military personnel assigned outside the United States, to provide allowances and other benefits comparable to those authorized for officers and employees of the Foreign Service.

Authorizes the Director of the National Security Agency to: (1) rent or lease, for periods not to exceed ten years, buildings and grounds outside the United States for the use of the Agency; and (2) use such buildings and grounds to furnish personnel of such Agency with living quarters, heat, light, and household equipment, without cost to such personnel.

Authorizes the Director of the Agency to provide travel, transportation, and subsistence allowances and other benefits to personnel assigned to training overseas for one year or longer. Relieves employees of liability for overpayments of such expenses received before October 1, 1980.

Directs the Administrator of General Services, upon request from the Director of the National Security Agency, to detail special policemen to provide protection for installations and grounds used by or under control of the Agency.

Authorizes the Director of Central Intelligence to pay a gratuity to surviving dependents of any officer or employee of the CIA who dies as a result of injuries (other than from disease) sustained outside the United States and in connection with terrorists or intelligence activities. Makes this authority effective for such deaths occurring after June 30, 1974.

Authorizes the Secretary of Defense to pay a gratuity to surviving dependents of any officer or employee of the Department of Defense or any member of the Armed Forces who dies in the performance of duties involving clandestine intelligence activities.

Authorizes the Director of the Central Intelligence Agency to accept, hold, administer, and utilize for artistic or general employee or dependent welfare, educational, or like purposes, gifts, bequests, or devises of money securities, or other property of whatsoever character that would be in the interest of the United States. Prohibits the acceptance of a gift which is expressly conditioned upon any expenditure not to be met therefrom or from income thereof unless such expenditure has been authorized by law. Creates a fund in the Treasury Department for the deposits of earnings and proceeds from such gifts.

Authorizes the Director, during fiscal year 1981, to remedy unjustified personnel actions based on allegations concerning loyalty to the United States. Makes any action taken by the Director non-reviewable in any other forum or court.

Authorizes the Commandant of the Defense Intelligence School to confer the degree of master of science of strategic intelligence upon graduates who have fulfilled the appropriate requirements.

Amends the Foreign Assistance Act of 1961 to repeal the reporting requirement of the Hughes-Ryan Amendment of 1974, which conditions expenditures for Central Intelligence Agency (CIA) covert operations on the timely reporting by the President to the appropriate congressional committees. Retains the current requirement with respect to Presidential findings. Deems each covert operation a "significant anticipated intelligence activity" for the purposes of the new congressional oversight provisions established by this Act.

Amends the National Security Act of 1947 to add a new title V, "Accountability for Intelligence Activities." Requires the Director of Central Intelligence and the heads of all Federal entities involved in intelligence activities to keep the congressional intelligence committees fully and currently informed of intelligence activities, including any significant anticipated intelligence activity. Stipulates that this notice does not mean prior approval of such committees is required for initiation of intelligence activity. Permits such notice to be limited to designated Members if the President determines it is essential to meet extraordinary circumstances affecting vital U.S. interests.

Requires the Director and heads of Federal entities to: (1) furnish information requested by the Select Committees on Intelligence; and (2) report in a timely fashion to such committees any illegal intelligence failures. Directs the President to fully inform the Select Committees in a timely fashion of intelligence operations in foreign countries, other than those intended solely for obtaining intelligence, for which prior notice was not given.

Requires the President and the Select Committees to establish procedures for carrying out these requirements. Directs the House of Representatives and the Senate, in consultation with the Director of Central Intelligence, to establish procedures to protect classified and intelligence information from unauthorized disclosure. Prohibits withholding information from the intelligence committees on the grounds such information would constitute unauthorized disclosure.

Provides for increased authorizations for salary and benefits for Federal employees, should such increases be necessary.