Congressional Record: October 23, 2001 (House)
Page H7159-H7207
UNITING AND STRENGTHENING AMERICA BY PROVIDING APPROPRIATE TOOLS
REQUIRED TO INTERCEPT AND OBSTRUCT TERRORISM (USA PATRIOT) ACT OF 2001
Mr. SENSENBRENNER. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 3162) to deter and punish terrorist acts in the United
States and around the world, to enhance law enforcement investigatory
tools, and for other purposes.
The Clerk read as follows:
H.R. 3162
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the "Uniting
and Strengthening America Act by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT)
Act of 2001".
(b) Table of Contents.-- The table of contents for this Act
is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Construction; severability.
TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
Sec. 101. Counterterrorism fund.
Sec. 102. Sense of Congress condemning discrimination against Arab and
Muslim Americans.
Sec. 103. Increased funding for the technical support center at the
Federal Bureau of Investigation.
Sec. 104. Requests for military assistance to enforce prohibition in
certain emergencies.
Sec. 105. Expansion of National Electronic Crime Task Force Initiative.
Sec. 106. Presidential authority.
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
Sec. 201. Authority to intercept wire, oral, and electronic
communications relating to terrorism.
Sec. 202. Authority to intercept wire, oral, and electronic
communications relating to computer fraud and abuse
offenses.
Sec. 203. Authority to share criminal investigative information.
Sec. 204. Clarification of intelligence exceptions from limitations on
interception and disclosure of wire, oral, and electronic
communications.
Sec. 205. Employment of translators by the Federal Bureau of
Investigation.
Sec. 206. Roving surveillance authority under the Foreign Intelligence
Surveillance Act of 1978.
Sec. 207. Duration of FISA surveillance of non-United States persons
who are agents of a foreign power.
Sec. 208. Designation of judges.
Sec. 209. Seizure of voice-mail messages pursuant to warrants.
Sec. 210. Scope of subpoenas for records of electronic communications.
Sec. 211. Clarification of scope.
Sec. 212. Emergency disclosure of electronic communications to protect
life and limb.
Sec. 213. Authority for delaying notice of the execution of a warrant.
Sec. 214. Pen register and trap and trace authority under FISA.
Sec. 215. Access to records and other items under the Foreign
Intelligence Surveillance Act.
Sec. 216. Modification of authorities relating to use of pen registers
and trap and trace devices.
Sec. 217. Interception of computer trespasser communications.
Sec. 218. Foreign intelligence information.
Sec. 219. Single-jurisdiction search warrants for terrorism.
Sec. 220. Nationwide service of search warrants for electronic
evidence.
Sec. 221. Trade sanctions.
Sec. 222. Assistance to law enforcement agencies.
Sec. 223. Civil liability for certain unauthorized disclosures.
Sec. 224. Sunset.
Sec. 225. Immunity for compliance with FISA wiretap.
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
Sec. 301. Short title.
Sec. 302. Findings and purposes.
Sec. 303. 4-year congressional review; expedited consideration.
Subtitle A--International Counter Money Laundering and Related Measures
Sec. 311. Special measures for jurisdictions, financial institutions,
or international transactions of primary money laundering
concern.
Sec. 312. Special due diligence for correspondent accounts and private
banking accounts.
Sec. 313. Prohibition on United States correspondent accounts with
foreign shell banks.
Sec. 314. Cooperative efforts to deter money laundering.
Sec. 315. Inclusion of foreign corruption offenses as money laundering
crimes.
Sec. 316. Anti-terrorist forfeiture protection.
Sec. 317. Long-arm jurisdiction over foreign money launderers.
Sec. 318. Laundering money through a foreign bank.
Sec. 319. Forfeiture of funds in United States interbank accounts.
Sec. 320. Proceeds of foreign crimes.
Sec. 321. Financial institutions specified in subchapter II of chapter
53 of title 31, United States code.
Sec. 322. Corporation represented by a fugitive.
Sec. 323. Enforcement of foreign judgments.
Sec. 324. Report and recommendation.
Sec. 325. Concentration accounts at financial institutions.
Sec. 326. Verification of identification.
Sec. 327. Consideration of anti-money laundering record.
Sec. 328. International cooperation on identification of originators of
wire transfers.
Sec. 329. Criminal penalties.
Sec. 330. International cooperation in investigations of money
laundering, financial crimes, and the finances of
terrorist groups.
Subtitle B--Bank Secrecy Act Amendments and Related Improvements
Sec. 351. Amendments relating to reporting of suspicious activities.
[[Page H7160]]
Sec. 352. Anti-money laundering programs.
Sec. 353. Penalties for violations of geographic targeting orders and
certain recordkeeping requirements, and lengthening
effective period of geographic targeting orders.
Sec. 354. Anti-money laundering strategy.
Sec. 355. Authorization to include suspicions of illegal activity in
written employment references.
Sec. 356. Reporting of suspicious activities by securities brokers and
dealers; investment company study.
Sec. 357. Special report on administration of bank secrecy provisions.
Sec. 358. Bank secrecy provisions and activities of United States
intelligence agencies to fight international terrorism.
Sec. 359. Reporting of suspicious activities by underground banking
systems.
Sec. 360. Use of authority of United States Executive Directors.
Sec. 361. Financial crimes enforcement network.
Sec. 362. Establishment of highly secure network.
Sec. 363. Increase in civil and criminal penalties for money
laundering.
Sec. 364. Uniform protection authority for Federal Reserve facilities.
Sec. 365. Reports relating to coins and currency received in
nonfinancial trade or business.
Sec. 366. Efficient use of currency transaction report system.
Subtitle C--Currency Crimes and Protection
Sec. 371. Bulk cash smuggling into or out of the United States.
Sec. 372. Forfeiture in currency reporting cases.
Sec. 373. Illegal money transmitting businesses.
Sec. 374. Counterfeiting domestic currency and obligations.
Sec. 375. Counterfeiting foreign currency and obligations.
Sec. 376. Laundering the proceeds of terrorism.
Sec. 377. Extraterritorial jurisdiction.
TITLE IV--PROTECTING THE BORDER
Subtitle A--Protecting the Northern Border
Sec. 401. Ensuring adequate personnel on the northern border.
Sec. 402. Northern border personnel.
Sec. 403. Access by the Department of State and the INS to certain
identifying information in the criminal history records
of visa applicants and applicants for admission to the
United States.
Sec. 404. Limited authority to pay overtime.
Sec. 405. Report on the integrated automated fingerprint identification
system for ports of entry and overseas consular posts.
Subtitle B--Enhanced Immigration Provisions
Sec. 411. Definitions relating to terrorism.
Sec. 412. Mandatory detention of suspected terrorists; habeas corpus;
judicial review.
Sec. 413. Multilateral cooperation against terrorists.
Sec. 414. Visa integrity and security.
Sec. 415. Participation of Office of Homeland Security on Entry-Exit
Task Force.
Sec. 416. Foreign student monitoring program.
Sec. 417. Machine readable passports.
Sec. 418. Prevention of consulate shopping.
Subtitle C--Preservation of Immigration Benefits for Victims of
Terrorism
Sec. 421. Special immigrant status.
Sec. 422. Extension of filing or reentry deadlines.
Sec. 423. Humanitarian relief for certain surviving spouses and
children.
Sec. 424. "Age-out" protection for children.
Sec. 425. Temporary administrative relief.
Sec. 426. Evidence of death, disability, or loss of employment.
Sec. 427. No benefits to terrorists or family members of terrorists.
Sec. 428. Definitions.
TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM
Sec. 501. Attorney General's authority to pay rewards to combat
terrorism.
Sec. 502. Secretary of State's authority to pay rewards.
Sec. 503. DNA identification of terrorists and other violent offenders.
Sec. 504. Coordination with law enforcement.
Sec. 505. Miscellaneous national security authorities.
Sec. 506. Extension of Secret Service jurisdiction.
Sec. 507. Disclosure of educational records.
Sec. 508. Disclosure of information from NCES surveys.
TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS,
AND THEIR FAMILIES
Subtitle A--Aid to Families of Public Safety Officers
Sec. 611. Expedited payment for public safety officers involved in the
prevention, investigation, rescue, or recovery efforts
related to a terrorist attack.
Sec. 612. Technical correction with respect to expedited payments for
heroic public safety officers.
Sec. 613. Public safety officers benefit program payment increase.
Sec. 614. Office of Justice programs.
Subtitle B--Amendments to the Victims of Crime Act of 1984
Sec. 621. Crime victims fund.
Sec. 622. Crime victim compensation.
Sec. 623. Crime victim assistance.
Sec. 624. Victims of terrorism.
TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE
PROTECTION
Sec. 711. Expansion of regional information sharing system to
facilitate Federal-State-local law enforcement response
related to terrorist attacks.
TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM
Sec. 801. Terrorist attacks and other acts of violence against mass
transportation systems.
Sec. 802. Definition of domestic terrorism.
Sec. 803. Prohibition against harboring terrorists.
Sec. 804. Jurisdiction over crimes committed at U.S. facilities abroad.
Sec. 805. Material support for terrorism.
Sec. 806. Assets of terrorist organizations.
Sec. 807. Technical clarification relating to provision of material
support to terrorism.
Sec. 808. Definition of Federal crime of terrorism.
Sec. 809. No statute of limitation for certain terrorism offenses.
Sec. 810. Alternate maximum penalties for terrorism offenses.
Sec. 811. Penalties for terrorist conspiracies.
Sec. 812. Post-release supervision of terrorists.
Sec. 813. Inclusion of acts of terrorism as racketeering activity.
Sec. 814. Deterrence and prevention of cyberterrorism.
Sec. 815. Additional defense to civil actions relating to preserving
records in response to Government requests.
Sec. 816. Development and support of cybersecurity forensic
capabilities.
Sec. 817. Expansion of the biological weapons statute.
TITLE IX--IMPROVED INTELLIGENCE
Sec. 901. Responsibilities of Director of Central Intelligence
regarding foreign intelligence collected under Foreign
Intelligence Surveillance Act of 1978.
Sec. 902. Inclusion of international terrorist activities within scope
of foreign intelligence under National Security Act of
1947.
Sec. 903. Sense of Congress on the establishment and maintenance of
intelligence relationships to acquire information on
terrorists and terrorist organizations.
Sec. 904. Temporary authority to defer submittal to Congress of reports
on intelligence and intelligence-related matters.
Sec. 905. Disclosure to Director of Central Intelligence of foreign
intelligence-related information with respect to criminal
investigations.
Sec. 906. Foreign terrorist asset tracking center.
Sec. 907. National Virtual Translation Center.
Sec. 908. Training of government officials regarding identification and
use of foreign intelligence.
TITLE X--MISCELLANEOUS
Sec. 1001. Review of the department of justice.
Sec. 1002. Sense of congress.
Sec. 1003. Definition of "electronic surveillance".
Sec. 1004. Venue in money laundering cases.
Sec. 1005. First responders assistance act.
Sec. 1006. Inadmissibility of aliens engaged in money laundering.
Sec. 1007. Authorization of funds for dea police training in south and
central asia.
Sec. 1008. Feasibility study on use of biometric identifier scanning
system with access to the fbi integrated automated
fingerprint identification system at overseas consular
posts and points of entry to the United States.
Sec. 1009. Study of access.
Sec. 1010. Temporary authority to contract with local and State
governments for performance of security functions at
United States military installations.
Sec. 1011. Crimes against charitable americans.
Sec. 1012. Limitation on issuance of hazmat licenses.
Sec. 1013. Expressing the sense of the senate concerning the provision
of funding for bioterrorism preparedness and response.
Sec. 1014. Grant program for State and local domestic preparedness
support.
Sec. 1015. Expansion and reauthorization of the crime identification
technology act for antiterrorism grants to States and
localities.
Sec. 1016. Critical infrastructures protection.
SEC. 2. CONSTRUCTION; SEVERABILITY.
Any provision of this Act held to be invalid or
unenforceable by its terms, or as applied
[[Page H7161]]
to any person or circumstance, shall be construed so as to
give it the maximum effect permitted by law, unless such
holding shall be one of utter invalidity or unenforceability,
in which event such provision shall be deemed severable from
this Act and shall not affect the remainder thereof or the
application of such provision to other persons not similarly
situated or to other, dissimilar circumstances.
TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM
SEC. 101. COUNTERTERRORISM FUND.
(a) Establishment; Availability.--There is hereby
established in the Treasury of the United States a separate
fund to be known as the "Counterterrorism Fund", amounts in
which shall remain available without fiscal year limitation--
(1) to reimburse any Department of Justice component for
any costs incurred in connection with--
(A) reestablishing the operational capability of an office
or facility that has been damaged or destroyed as the result
of any domestic or international terrorism incident;
(B) providing support to counter, investigate, or prosecute
domestic or international terrorism, including, without
limitation, paying rewards in connection with these
activities; and
(C) conducting terrorism threat assessments of Federal
agencies and their facilities; and
(2) to reimburse any department or agency of the Federal
Government for any costs incurred in connection with
detaining in foreign countries individuals accused of acts of
terrorism that violate the laws of the United States.
(b) No Effect on Prior Appropriations.--Subsection (a)
shall not be construed to affect the amount or availability
of any appropriation to the Counterterrorism Fund made before
the date of the enactment of this Act.
SEC. 102. SENSE OF CONGRESS CONDEMNING DISCRIMINATION AGAINST
ARAB AND MUSLIM AMERICANS.
(a) Findings.--Congress makes the following findings:
(1) Arab Americans, Muslim Americans, and Americans from
South Asia play a vital role in our Nation and are entitled
to nothing less than the full rights of every American.
(2) The acts of violence that have been taken against Arab
and Muslim Americans since the September 11, 2001, attacks
against the United States should be and are condemned by all
Americans who value freedom.
(3) The concept of individual responsibility for wrongdoing
is sacrosanct in American society, and applies equally to all
religious, racial, and ethnic groups.
(4) When American citizens commit acts of violence against
those who are, or are perceived to be, of Arab or Muslim
descent, they should be punished to the full extent of the
law.
(5) Muslim Americans have become so fearful of harassment
that many Muslim women are changing the way they dress to
avoid becoming targets.
(6) Many Arab Americans and Muslim Americans have acted
heroically during the attacks on the United States, including
Mohammed Salman Hamdani, a 23-year-old New Yorker of
Pakistani descent, who is believed to have gone to the World
Trade Center to offer rescue assistance and is now missing.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the civil rights and civil liberties of all Americans,
including Arab Americans, Muslim Americans, and Americans
from South Asia, must be protected, and that every effort
must be taken to preserve their safety;
(2) any acts of violence or discrimination against any
Americans be condemned; and
(3) the Nation is called upon to recognize the patriotism
of fellow citizens from all ethnic, racial, and religious
backgrounds.
SEC. 103. INCREASED FUNDING FOR THE TECHNICAL SUPPORT CENTER
AT THE FEDERAL BUREAU OF INVESTIGATION.
There are authorized to be appropriated for the Technical
Support Center established in section 811 of the
Antiterrorism and Effective Death Penalty Act of 1996 (Public
Law 104-132) to help meet the demands for activities to
combat terrorism and support and enhance the technical
support and tactical operations of the FBI, $200,000,000 for
each of the fiscal years 2002, 2003, and 2004.
SEC. 104. REQUESTS FOR MILITARY ASSISTANCE TO ENFORCE
PROHIBITION IN CERTAIN EMERGENCIES.
Section 2332e of title 18, United States Code, is amended--
(1) by striking "2332c" and inserting "2332a"; and
(2) by striking "chemical".
SEC. 105. EXPANSION OF NATIONAL ELECTRONIC CRIME TASK FORCE
INITIATIVE.
The Director of the United States Secret Service shall take
appropriate actions to develop a national network of
electronic crime task forces, based on the New York
Electronic Crimes Task Force model, throughout the United
States, for the purpose of preventing, detecting, and
investigating various forms of electronic crimes, including
potential terrorist attacks against critical infrastructure
and financial payment systems.
SEC. 106. PRESIDENTIAL AUTHORITY.
Section 203 of the International Emergency Powers Act (50
U.S.C. 1702) is amended--
(1) in subsection (a)(1)--
(A) at the end of subparagraph (A) (flush to that
subparagraph), by striking "; and" and inserting a comma
and the following:
"by any person, or with respect to any property, subject to
the jurisdiction of the United States;";
(B) in subparagraph (B)--
(i) by inserting ", block during the pendency of an
investigation" after "investigate"; and
(ii) by striking "interest;" and inserting "interest by
any person, or with respect to any property, subject to the
jurisdiction of the United States; and";
(C) by striking "by any person, or with respect to any
property, subject to the jurisdiction of the United States`;
and
(D) by inserting at the end the following:
"(C) when the United States is engaged in armed
hostilities or has been attacked by a foreign country or
foreign nationals, confiscate any property, subject to the
jurisdiction of the United States, of any foreign person,
foreign organization, or foreign country that he determines
has planned, authorized, aided, or engaged in such
hostilities or attacks against the United States; and all
right, title, and interest in any property so confiscated
shall vest, when, as, and upon the terms directed by the
President, in such agency or person as the President may
designate from time to time, and upon such terms and
conditions as the President may prescribe, such interest or
property shall be held, used, administered, liquidated, sold,
or otherwise dealt with in the interest of and for the
benefit of the United States, and such designated agency or
person may perform any and all acts incident to the
accomplishment or furtherance of these purposes."; and
(2) by inserting at the end the following:
"(c) Classified Information.--In any judicial review of a
determination made under this section, if the determination
was based on classified information (as defined in section
1(a) of the Classified Information Procedures Act) such
information may be submitted to the reviewing court ex parte
and in camera. This subsection does not confer or imply any
right to judicial review.".
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
SEC. 201. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC
COMMUNICATIONS RELATING TO TERRORISM.
Section 2516(1) of title 18, United States Code, is
amended--
(1) by redesignating paragraph (p), as so redesignated by
section 434(2) of the Antiterrorism and Effective Death
Penalty Act of 1996 (Public Law 104-132; 110 Stat. 1274), as
paragraph (r); and
(2) by inserting after paragraph (p), as so redesignated by
section 201(3) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (division C of Public
Law 104-208; 110 Stat. 3009-565), the following new
paragraph:
"(q) any criminal violation of section 229 (relating to
chemical weapons); or sections 2332, 2332a, 2332b, 2332d,
2339A, or 2339B of this title (relating to terrorism); or".
SEC. 202. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC
COMMUNICATIONS RELATING TO COMPUTER FRAUD AND
ABUSE OFFENSES.
Section 2516(1)(c) of title 18, United States Code, is
amended by striking "and section 1341 (relating to mail
fraud)," and inserting "section 1341 (relating to mail
fraud), a felony violation of section 1030 (relating to
computer fraud and abuse),".
SEC. 203. AUTHORITY TO SHARE CRIMINAL INVESTIGATIVE
INFORMATION.
(a) Authority To Share Grand Jury Information.--
(1) In general.--Rule 6(e)(3)(C) of the Federal Rules of
Criminal Procedure is amended to read as follows:
"(C)(i) Disclosure otherwise prohibited by this rule of
matters occurring before the grand jury may also be made--
"(I) when so directed by a court preliminarily to or in
connection with a judicial proceeding;
"(II) when permitted by a court at the request of the
defendant, upon a showing that grounds may exist for a motion
to dismiss the indictment because of matters occurring before
the grand jury;
"(III) when the disclosure is made by an attorney for the
government to another Federal grand jury;
"(IV) when permitted by a court at the request of an
attorney for the government, upon a showing that such matters
may disclose a violation of state criminal law, to an
appropriate official of a state or subdivision of a state for
the purpose of enforcing such law; or
"(V) when the matters involve foreign intelligence or
counterintelligence (as defined in section 3 of the National
Security Act of 1947 (50 U.S.C. 401a)), or foreign
intelligence information (as defined in clause (iv) of this
subparagraph), to any Federal law enforcement, intelligence,
protective, immigration, national defense, or national
security official in order to assist the official receiving
that information in the performance of his official duties.
"(ii) If the court orders disclosure of matters occurring
before the grand jury, the disclosure shall be made in such
manner, at such time, and under such conditions as the court
may direct.
"(iii) Any Federal official to whom information is
disclosed pursuant to clause (i)(V) of this subparagraph may
use that information only as necessary in the conduct of that
person's official duties subject to any limitations on the
unauthorized disclosure of such
[[Page H7162]]
information. Within a reasonable time after such disclosure,
an attorney for the government shall file under seal a notice
with the court stating the fact that such information was
disclosed and the departments, agencies, or entities to which
the disclosure was made.
"(iv) In clause (i)(V) of this subparagraph, the term
`foreign intelligence information' means--
"(I) information, whether or not concerning a United
States person, that relates to the ability of the United
States to protect against--
"(aa) actual or potential attack or other grave hostile
acts of-a foreign power or an agent of a foreign power;
"(bb) sabotage or international terrorism by a foreign
power or an agent of a foreign power; or
"(cc) clandestine intelligence activities by an
intelligence service or network of a foreign power or by an
agent of foreign power; or
"(II) information, whether or not concerning a United
States person, with respect to a foreign power or foreign
territory that relates to--
"(aa) the national defense or the security of the United
States; or
"(bb) the conduct of the foreign affairs of the United
States.".
(2) Conforming amendment.--Rule 6(e)(3)(D) of the Federal
Rules of Criminal Procedure is amended by striking
"(e)(3)(C)(i)" and inserting "(e)(3)(C)(i)(I)".
(b) Authority To Share Electronic, Wire, and Oral
Interception Information.--
(1) Law enforcement.--Section 2517 of title 18, United
States Code, is amended by inserting at the end the
following:
"(6) Any investigative or law enforcement officer, or
attorney for the Government, who by any means authorized by
this chapter, has obtained knowledge of the contents of any
wire, oral, or electronic communication, or evidence derived
therefrom, may disclose such contents to any other Federal
law enforcement, intelligence, protective, immigration,
national defense, or national security official to the extent
that such contents include foreign intelligence or
counterintelligence (as defined in section 3 of the National
Security Act of 1947 (50 U.S.C. 401a)), or foreign
intelligence information (as defined in subsection (19) of
section 2510 of this title), to assist the official who is to
receive that information in the performance of his official
duties. Any Federal official who receives information
pursuant to this provision may use that information only as
necessary in the conduct of that person's official duties
subject to any limitations on the unauthorized disclosure of
such information.".
(2) Definition.--Section 2510 of title 18, United States
Code, is amended by--
(A) in paragraph (17), by striking "and" after the
semicolon;
(B) in paragraph (18), by striking the period and inserting
"; and"; and
(C) by inserting at the end the following:
"(19) `foreign intelligence information' means--
"(A) information, whether or not concerning a United
States person, that relates to the ability of the United
States to protect against--
"(i) actual or potential attack or other grave hostile
acts of a foreign power or an agent of a foreign power;
"(ii) sabotage or international terrorism by a foreign
power or an agent of a foreign power; or
"(iii) clandestine intelligence activities by an
intelligence service or network of a foreign power or by an
agent of a foreign power; or
"(B) information, whether or not concerning a United
States person, with respect to a foreign power or foreign
territory that relates to--
"(i) the national defense or the security of the United
States; or
"(ii) the conduct of the foreign affairs of the United
States.".
(c) Procedures.--The Attorney General shall establish
procedures for the disclosure of information pursuant to
section 2517(6) and Rule 6(e)(3)(C)(i)(V) of the Federal
Rules of Criminal Procedure that identifies a United States
person, as defined in section 101 of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1801)).
(d) Foreign Intelligence Information.--
(1) In general.--Notwithstanding any other provision of
law, it shall be lawful for foreign intelligence or
counterintelligence (as defined in section 3 of the National
Security Act of 1947 (50 U.S.C. 401a)) or foreign
intelligence information obtained as part of a criminal
investigation to be disclosed to any Federal law enforcement,
intelligence, protective, immigration, national defense, or
national security official in order to assist the official
receiving that information in the performance of his official
duties. Any Federal official who receives information
pursuant to this provision may use that information only as
necessary in the conduct of that person's official duties
subject to any limitations on the unauthorized disclosure of
such information.
(2) Definition.--In this subsection, the term "foreign
intelligence information" means--
(A) information, whether or not concerning a United States
person, that relates to the ability of the United States to
protect against--
(i) actual or potential attack or other grave hostile acts
of a foreign power or an agent of a foreign power;
(ii) sabotage or international terrorism by a foreign power
or an agent of a foreign power; or
(iii) clandestine intelligence activities by an
intelligence service or network of a foreign power or by an
agent of a foreign power; or
(B) information, whether or not concerning a United States
person, with respect to a foreign power or foreign territory
that relates to--
(i) the national defense or the security of the United
States; or
(ii) the conduct of the foreign affairs of the United
States.
SEC. 204. CLARIFICATION OF INTELLIGENCE EXCEPTIONS FROM
LIMITATIONS ON INTERCEPTION AND DISCLOSURE OF
WIRE, ORAL, AND ELECTRONIC COMMUNICATIONS.
Section 2511(2)(f) of title 18, United States Code, is
amended--
(1) by striking "this chapter or chapter 121" and
inserting "this chapter or chapter 121 or 206 of this
title"; and
(2) by striking "wire and oral" and inserting "wire,
oral, and electronic".
SEC. 205. EMPLOYMENT OF TRANSLATORS BY THE FEDERAL BUREAU OF
INVESTIGATION.
(a) Authority.--The Director of the Federal Bureau of
Investigation is authorized to expedite the employment of
personnel as translators to support counterterrorism
investigations and operations without regard to applicable
Federal personnel requirements and limitations.
(b) Security Requirements.--The Director of the Federal
Bureau of Investigation shall establish such security
requirements as are necessary for the personnel employed as
translators under subsection (a).
(c) Report.--The Attorney General shall report to the
Committees on the Judiciary of the House of Representatives
and the Senate on--
(1) the number of translators employed by the FBI and other
components of the Department of Justice;
(2) any legal or practical impediments to using translators
employed by other Federal, State, or local agencies, on a
full, part-time, or shared basis; and
(3) the needs of the FBI for specific translation services
in certain languages, and recommendations for meeting those
needs.
SEC. 206. ROVING SURVEILLANCE AUTHORITY UNDER THE FOREIGN
INTELLIGENCE SURVEILLANCE ACT OF 1978.
Section 105(c)(2)(B) of the Foreign Intelligence
Surveillance Act of 1978 (50 U.S.C. 1805(c)(2)(B)) is amended
by inserting ", or in circumstances where the Court finds
that the actions of the target of the application may have
the effect of thwarting the identification of a specified
person, such other persons," after "specified person".
SEC. 207. DURATION OF FISA SURVEILLANCE OF NON-UNITED STATES
PERSONS WHO ARE AGENTS OF A FOREIGN POWER.
(a) Duration .--
(1) Surveillance.--Section 105(e)(1) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(e)(1))
is amended by--
(A) inserting "(A)" after "except that"; and
(B) inserting before the period the following: ", and (B)
an order under this Act for a surveillance targeted against
an agent of a foreign power, as defined in section
101(b)(1)(A) may be for the period specified in the
application or for 120 days, whichever is less".
(2) Physical Search.--Section 304(d)(1) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(1))
is amended by--
(A) striking "forty-five" and inserting "90";
(B) inserting "(A)" after "except that"; and
(C) inserting before the period the following: ", and (B)
an order under this section for a physical search targeted
against an agent of a foreign power as defined in section
101(b)(1)(A) may be for the period specified in the
application or for 120 days, whichever is less".
(b) Extension.--
(1) In general.--Section 105(d)(2) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(d)(2))
is amended by--
(A) inserting "(A)" after "except that"; and
(B) inserting before the period the following: ", and (B)
an extension of an order under this Act for a surveillance
targeted against an agent of a foreign power as defined in
section 101(b)(1)(A) may be for a period not to exceed 1
year".
(2) Defined term.--Section 304(d)(2) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(2)
is amended by inserting after "not a United States person,"
the following: "or against an agent of a foreign power as
defined in section 101(b)(1)(A),".
SEC. 208. DESIGNATION OF JUDGES.
Section 103(a) of the Foreign Intelligence Surveillance Act
of 1978 (50 U.S.C. 1803(a)) is amended by--
(1) striking "seven district court judges" and inserting
"11 district court judges"; and
(2) inserting "of whom no fewer than 3 shall reside within
20 miles of the District of Columbia" after "circuits".
SEC. 209. SEIZURE OF VOICE-MAIL MESSAGES PURSUANT TO
WARRANTS.
Title 18, United States Code, is amended--
(1) in section 2510--
(A) in paragraph (1), by striking beginning with "and
such" and all that follows through "communication"; and
(B) in paragraph (14), by inserting "wire or" after
"transmission of"; and
[[Page H7163]]
(2) in subsections (a) and (b) of section 2703--
(A) by striking "Contents of electronic" and inserting
"Contents of wire or electronic" each place it appears;
(B) by striking "contents of an electronic" and inserting
"contents of a wire or electronic" each place it appears;
and
(C) by striking "any electronic" and inserting "any wire
or electronic" each place it appears.
SEC. 210. SCOPE OF SUBPOENAS FOR RECORDS OF ELECTRONIC
COMMUNICATIONS.
Section 2703(c)(2) of title 18, United States Code, as
redesignated by section 212, is amended--
(1) by striking "entity the name, address, local and long
distance telephone toll billing records, telephone number or
other subscriber number or identity, and length of service of
a subscriber" and inserting the following: "entity the--
"(A) name;
"(B) address;
"(C) local and long distance telephone connection records,
or records of session times and durations;
"(D) length of service (including start date) and types of
service utilized;
"(E) telephone or instrument number or other subscriber
number or identity, including any temporarily assigned
network address; and
"(F) means and source of payment for such service
(including any credit card or bank account number),
of a subscriber"; and
(2) by striking "and the types of services the subscriber
or customer utilized,".
SEC. 211. CLARIFICATION OF SCOPE.
Section 631 of the Communications Act of 1934 (47 U.S.C.
551) is amended--
(1) in subsection (c)(2)--
(A) in subparagraph (B), by striking "or";
(B) in subparagraph (C), by striking the period at the end
and inserting "; or"; and
(C) by inserting at the end the following:
"(D) to a government entity as authorized under chapters
119, 121, or 206 of title 18, United States Code, except that
such disclosure shall not include records revealing cable
subscriber selection of video programming from a cable
operator."; and
(2) in subsection (h), by striking "A governmental
entity" and inserting "Except as provided in subsection
(c)(2)(D), a governmental entity".
SEC. 212. EMERGENCY DISCLOSURE OF ELECTRONIC COMMUNICATIONS
TO PROTECT LIFE AND LIMB.
(a) Disclosure of Contents.--
(1) In general.--Section 2702 of title 18, United States
Code, is amended--
(A) by striking the section heading and inserting the
following:
"Sec. 2702. Voluntary disclosure of customer communications
or records";
(B) in subsection (a)--
(i) in paragraph (2)(A), by striking "and" at the end;
(ii) in paragraph (2)(B), by striking the period and
inserting "; and"; and
(iii) by inserting after paragraph (2) the following:
"(3) a provider of remote computing service or electronic
communication service to the public shall not knowingly
divulge a record or other information pertaining to a
subscriber to or customer of such service (not including the
contents of communications covered by paragraph (1) or (2))
to any governmental entity.";
(C) in subsection (b), by striking "Exceptions.--A person
or entity" and inserting "Exceptions for disclosure of
communications.-- A provider described in subsection (a)";
(D) in subsection (b)(6)--
(i) in subparagraph (A)(ii), by striking "or";
(ii) in subparagraph (B), by striking the period and
inserting "; or"; and
(iii) by adding after subparagraph (B) the following:
"(C) if the provider reasonably believes that an emergency
involving immediate danger of death or serious physical
injury to any person requires disclosure of the information
without delay."; and
(E) by inserting after subsection (b) the following:
"(c) Exceptions for Disclosure of Customer Records.--A
provider described in subsection (a) may divulge a record or
other information pertaining to a subscriber to or customer
of such service (not including the contents of communications
covered by subsection (a)(1) or (a)(2))--
"(1) as otherwise authorized in section 2703;
"(2) with the lawful consent of the customer or
subscriber;
"(3) as may be necessarily incident to the rendition of
the service or to the protection of the rights or property of
the provider of that service;
"(4) to a governmental entity, if the provider reasonably
believes that an emergency involving immediate danger of
death or serious physical injury to any person justifies
disclosure of the information; or
"(5) to any person other than a governmental entity.".
(2) Technical and conforming amendment.--The table of
sections for chapter 121 of title 18, United States Code, is
amended by striking the item relating to section 2702 and
inserting the following:
"2702. Voluntary disclosure of customer communications or records.".
(b) Requirements for Government Access.--
(1) In general.--Section 2703 of title 18, United States
Code, is amended--
(A) by striking the section heading and inserting the
following:
"Sec. 2703. Required disclosure of customer communications
or records";
(B) in subsection (c) by redesignating paragraph (2) as
paragraph (3);
(C) in subsection (c)(1)--
(i) by striking "(A) Except as provided in subparagraph
(B), a provider of electronic communication service or remote
computing service may" and inserting "A governmental entity
may require a provider of electronic communication service or
remote computing service to";
(ii) by striking "covered by subsection (a) or (b) of this
section) to any person other than a governmental entity.
"(B) A provider of electronic communication service or
remote computing service shall disclose a record or other
information pertaining to a subscriber to or customer of such
service (not including the contents of communications covered
by subsection (a) or (b) of this section) to a governmental
entity" and inserting ")";
(iii) by redesignating subparagraph (C) as paragraph (2);
(iv) by redesignating clauses (i), (ii), (iii), and (iv) as
subparagraphs (A), (B), (C), and (D), respectively;
(v) in subparagraph (D) (as redesignated) by striking the
period and inserting "; or"; and
(vi) by inserting after subparagraph (D) (as redesignated)
the following:
"(E) seeks information under paragraph (2)."; and
(D) in paragraph (2) (as redesignated) by striking
"subparagraph (B)" and insert "paragraph (1)".
(2) Technical and conforming amendment.--The table of
sections for chapter 121 of title 18, United States Code, is
amended by striking the item relating to section 2703 and
inserting the following:
"2703. Required disclosure of customer communications or records.".
SEC. 213. AUTHORITY FOR DELAYING NOTICE OF THE EXECUTION OF A
WARRANT.
Section 3103a of title 18, United States Code, is amended--
(1) by inserting "(a) In General.--" before "In
addition"; and
(2) by adding at the end the following:
"(b) Delay.--With respect to the issuance of any warrant
or court order under this section, or any other rule of law,
to search for and seize any property or material that
constitutes evidence of a criminal offense in violation of
the laws of the United States, any notice required, or that
may be required, to be given may be delayed if--
"(1) the court finds reasonable cause to believe that
providing immediate notification of the execution of the
warrant may have an adverse result (as defined in section
2705);
"(2) the warrant prohibits the seizure of any tangible
property, any wire or electronic communication (as defined in
section 2510), or, except as expressly provided in chapter
121, any stored wire or electronic information, except where
the court finds reasonable necessity for the seizure; and
"(3) the warrant provides for the giving of such notice
within a reasonable period of its execution, which period may
thereafter be extended by the court for good cause shown.".
SEC. 214. PEN REGISTER AND TRAP AND TRACE AUTHORITY UNDER
FISA.
(a) Applications and Orders.--Section 402 of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1842) is
amended--
(1) in subsection (a)(1), by striking "for any
investigation to gather foreign intelligence information or
information concerning international terrorism" and
inserting "for any investigation to obtain foreign
intelligence information not concerning a United States
person or to protect against international terrorism or
clandestine intelligence activities, provided that such
investigation of a United States person is not conducted
solely upon the basis of activities protected by the first
amendment to the Constitution";
(2) by amending subsection (c)(2) to read as follows:
"(2) a certification by the applicant that the information
likely to be obtained is foreign intelligence information not
concerning a United States person or is relevant to an
ongoing investigation to protect against international
terrorism or clandestine intelligence activities, provided
that such investigation of a United States person is not
conducted solely upon the basis of activities protected by
the first amendment to the Constitution.";
(3) by striking subsection (c)(3); and
(4) by amending subsection (d)(2)(A) to read as follows:
"(A) shall specify--
"(i) the identity, if known, of the person who is the
subject of the investigation;
"(ii) the identity, if known, of the person to whom is
leased or in whose name is listed the telephone line or other
facility to which the pen register or trap and trace device
is to be attached or applied;
"(iii) the attributes of the communications to which the
order applies, such as the number or other identifier, and,
if known, the location of the telephone line or other
facility to which the pen register or trap and trace device
is to be attached or applied and, in the case of a trap and
trace device, the geographic limits of the trap and trace
order.".
[[Page H7164]]
(b) Authorization During Emergencies.--Section 403 of the
Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1843) is amended--
(1) in subsection (a), by striking "foreign intelligence
information or information concerning international
terrorism" and inserting "foreign intelligence information
not concerning a United States person or information to
protect against international terrorism or clandestine
intelligence activities, provided that such investigation of
a United States person is not conducted solely upon the basis
of activities protected by the first amendment to the
Constitution"; and
(2) in subsection (b)(1), by striking "foreign
intelligence information or information concerning
international terrorism" and inserting "foreign
intelligence information not concerning a United States
person or information to protect against international
terrorism or clandestine intelligence activities, provided
that such investigation of a United States person is not
conducted solely upon the basis of activities protected by
the first amendment to the Constitution".
SEC. 215. ACCESS TO RECORDS AND OTHER ITEMS UNDER THE FOREIGN
INTELLIGENCE SURVEILLANCE ACT.
Title V of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1861 et seq.) is amended by striking sections
501 through 503 and inserting the following:
"SEC. 501. ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN
INTELLIGENCE AND INTERNATIONAL TERRORISM
INVESTIGATIONS.
"(a)(1) The Director of the Federal Bureau of
Investigation or a designee of the Director (whose rank shall
be no lower than Assistant Special Agent in Charge) may make
an application for an order requiring the production of any
tangible things (including books, records, papers, documents,
and other items) for an investigation to protect against
international terrorism or clandestine intelligence
activities, provided that such investigation of a United
States person is not conducted solely upon the basis of
activities protected by the first amendment to the
Constitution.
"(2) An investigation conducted under this section shall--
"(A) be conducted under guidelines approved by the
Attorney General under Executive Order 12333 (or a successor
order); and
"(B) not be conducted of a United States person solely
upon the basis of activities protected by the first amendment
to the Constitution of the United States.
"(b) Each application under this section--
"(1) shall be made to--
"(A) a judge of the court established by section 103(a);
or
"(B) a United States Magistrate Judge under chapter 43 of
title 28, United States Code, who is publicly designated by
the Chief Justice of the United States to have the power to
hear applications and grant orders for the production of
tangible things under this section on behalf of a judge of
that court; and
"(2) shall specify that the records concerned are sought
for an authorized investigation conducted in accordance with
subsection (a)(2) to protect against international terrorism
or clandestine intelligence activities.
"(c)(1) Upon an application made pursuant to this section,
the judge shall enter an ex parte order as requested, or as
modified, approving the release of records if the judge finds
that the application meets the requirements of this section.
"(2) An order under this subsection shall not disclose
that it is issued for purposes of an investigation described
in subsection (a).
"(d) No person shall disclose to any other person (other
than those persons necessary to produce the tangible things
under this section) that the Federal Bureau of Investigation
has sought or obtained tangible things under this section.
"(e) A person who, in good faith, produces tangible things
under an order pursuant to this section shall not be liable
to any other person for such production. Such production
shall not be deemed to constitute a waiver of any privilege
in any other proceeding or context.
"SEC. 502. CONGRESSIONAL OVERSIGHT.
"(a) On a semiannual basis, the Attorney General 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 for the
production of tangible things under section 402.
"(b) On a semiannual basis, the Attorney General shall
provide to the Committees on the Judiciary of the House of
Representatives and the Senate a report setting forth with
respect to the preceding 6-month period--
"(1) the total number of applications made for orders
approving requests for the production of tangible things
under section 402; and
"(2) the total number of such orders either granted,
modified, or denied.".
SEC. 216. MODIFICATION OF AUTHORITIES RELATING TO USE OF PEN
REGISTERS AND TRAP AND TRACE DEVICES.
(a) General Limitations.--Section 3121(c) of title 18,
United States Code, is amended--
(1) by inserting "or trap and trace device" after "pen
register";
(2) by inserting ", routing, addressing," after
"dialing"; and
(3) by striking "call processing" and inserting "the
processing and transmitting of wire or electronic
communications so as not to include the contents of any wire
or electronic communications".
(b) Issuance of Orders.--
(1) In general.--Section 3123(a) of title 18, United States
Code, is amended to read as follows:
"(a) In General.--
"(1) Attorney for the government.--Upon an application
made under section 3122(a)(1), the court shall enter an ex
parte order authorizing the installation and use of a pen
register or trap and trace device anywhere within the United
States, if the court finds that the attorney for the
Government has certified to the court that the information
likely to be obtained by such installation and use is
relevant to an ongoing criminal investigation. The order,
upon service of that order, shall apply to any person or
entity providing wire or electronic communication service in
the United States whose assistance may facilitate the
execution of the order. Whenever such an order is served on
any person or entity not specifically named in the order,
upon request of such person or entity, the attorney for the
Government or law enforcement or investigative officer that
is serving the order shall provide written or electronic
certification that the order applies to the person or entity
being served.
"(2) State investigative or law enforcement officer.--Upon
an application made under section 3122(a)(2), the court shall
enter an ex parte order authorizing the installation and use
of a pen register or trap and trace device within the
jurisdiction of the court, if the court finds that the State
law enforcement or investigative officer has certified to the
court that the information likely to be obtained by such
installation and use is relevant to an ongoing criminal
investigation.
"(3)(A) Where the law enforcement agency implementing an
ex parte order under this subsection seeks to do so by
installing and using its own pen register or trap and trace
device on a packet-switched data network of a provider of
electronic communication service to the public, the agency
shall ensure that a record will be maintained which will
identify--
"(i) any officer or officers who installed the device and
any officer or officers who accessed the device to obtain
information from the network;
"(ii) the date and time the device was installed, the date
and time the device was uninstalled, and the date, time, and
duration of each time the device is accessed to obtain
information;
"(iii) the configuration of the device at the time of its
installation and any subsequent modification thereof; and
"(iv) any information which has been collected by the
device.
To the extent that the pen register or trap and trace device
can be set automatically to record this information
electronically, the record shall be maintained electronically
throughout the installation and use of such device.
"(B) The record maintained under subparagraph (A) shall be
provided ex parte and under seal to the court which entered
the ex parte order authorizing the installation and use of
the device within 30 days after termination of the order
(including any extensions thereof).".
(2) Contents of order.--Section 3123(b)(1) of title 18,
United States Code, is amended--
(A) in subparagraph (A)--
(i) by inserting "or other facility" after "telephone
line"; and
(ii) by inserting before the semicolon at the end "or
applied"; and
(B) by striking subparagraph (C) and inserting the
following:
"(C) the attributes of the communications to which the
order applies, including the number or other identifier and,
if known, the location of the telephone line or other
facility to which the pen register or trap and trace device
is to be attached or applied, and, in the case of an order
authorizing installation and use of a trap and trace device
under subsection (a)(2), the geographic limits of the order;
and".
(3) Nondisclosure requirements.--Section 3123(d)(2) of
title 18, United States Code, is amended--
(A) by inserting "or other facility" after "the line";
and
(B) by striking ", or who has been ordered by the court"
and inserting "or applied, or who is obligated by the
order".
(c) Definitions.--
(1) Court of competent jurisdiction.--Section 3127(2) of
title 18, United States Code, is amended by striking
subparagraph (A) and inserting the following:
"(A) any district court of the United States (including a
magistrate judge of such a court) or any United States court
of appeals having jurisdiction over the offense being
investigated; or".
(2) Pen register.--Section 3127(3) of title 18, United
States Code, is amended--
(A) by striking "electronic or other impulses" and all
that follows through "is attached" and inserting "dialing,
routing, addressing, or signaling information transmitted by
an instrument or facility from which a wire or electronic
communication is transmitted, provided, however, that such
information shall not include the contents of any
communication"; and
(B) by inserting "or process" after "device" each place
it appears.
(3) Trap and trace device.--Section 3127(4) of title 18,
United States Code, is amended--
[[Page H7165]]
(A) by striking "of an instrument" and all that follows
through the semicolon and inserting "or other dialing,
routing, addressing, and signaling information reasonably
likely to identify the source of a wire or electronic
communication, provided, however, that such information shall
not include the contents of any communication;"; and
(B) by inserting "or process" after "a device".
(4) Conforming amendment.--Section 3127(1) of title 18,
United States Code, is amended--
(A) by striking "and"; and
(B) by inserting ", and `contents' " after "electronic
communication service".
(5) Technical amendment.--Section 3124(d) of title 18,
United States Code, is amended by striking "the terms of".
(6) Conforming amendment.--Section 3124(b) of title 18,
United States Code, is amended by inserting "or other
facility" after "the appropriate line".
SEC. 217. INTERCEPTION OF COMPUTER TRESPASSER COMMUNICATIONS.
Chapter 119 of title 18, United States Code, is amended--
(1) in section 2510--
(A) in paragraph (18), by striking "and" at the end;
(B) in paragraph (19), by striking the period and inserting
a semicolon; and
(C) by inserting after paragraph (19) the following:
"(20) `protected computer' has the meaning set forth in
section 1030; and
"(21) `computer trespasser'--
"(A) means a person who accesses a protected computer
without authorization and thus has no reasonable expectation
of privacy in any communication transmitted to, through, or
from the protected computer; and
"(B) does not include a person known by the owner or
operator of the protected computer to have an existing
contractual relationship with the owner or operator of the
protected computer for access to all or part of the protected
computer."; and
(2) in section 2511(2), by inserting at the end the
following:
"(i) It shall not be unlawful under this chapter for a
person acting under color of law to intercept the wire or
electronic communications of a computer trespasser
transmitted to, through, or from the protected computer, if--
"(I) the owner or operator of the protected computer
authorizes the interception of the computer trespasser's
communications on the protected computer;
"(II) the person acting under color of law is lawfully
engaged in an investigation;
"(III) the person acting under color of law has reasonable
grounds to believe that the contents of the computer
trespasser's communications will be relevant to the
investigation; and
"(IV) such interception does not acquire communications
other than those transmitted to or from the computer
trespasser.".
SEC. 218. FOREIGN INTELLIGENCE INFORMATION.
Sections 104(a)(7)(B) and section 303(a)(7)(B) (50 U.S.C.
1804(a)(7)(B) and 1823(a)(7)(B)) of the Foreign Intelligence
Surveillance Act of 1978 are each amended by striking "the
purpose" and inserting "a significant purpose".
SEC. 219. SINGLE-JURISDICTION SEARCH WARRANTS FOR TERRORISM.
Rule 41(a) of the Federal Rules of Criminal Procedure is
amended by inserting after "executed" the following: "and
(3) in an investigation of domestic terrorism or
international terrorism (as defined in section 2331 of title
18, United States Code), by a Federal magistrate judge in any
district in which activities related to the terrorism may
have occurred, for a search of property or for a person
within or outside the district".
SEC. 220. NATIONWIDE SERVICE OF SEARCH WARRANTS FOR
ELECTRONIC EVIDENCE.
(a) In General.--Chapter 121 of title 18, United States
Code, is amended--
(1) in section 2703, by striking "under the Federal Rules
of Criminal Procedure" every place it appears and inserting
"using the procedures described in the Federal Rules of
Criminal Procedure by a court with jurisdiction over the
offense under investigation"; and
(2) in section 2711--
(A) in paragraph (1), by striking "and";
(B) in paragraph (2), by striking the period and inserting
"; and"; and
(C) by inserting at the end the following:
"(3) the term `court of competent jurisdiction' has the
meaning assigned by section 3127, and includes any Federal
court within that definition, without geographic
limitation.".
(b) Conforming Amendment.--Section 2703(d) of title 18,
United States Code, is amended by striking "described in
section 3127(2)(A)".
SEC. 221. TRADE SANCTIONS.
(a) In general.--The Trade Sanctions Reform and Export
Enhancement Act of 2000 (Public Law 106-387; 114 Stat. 1549A-
67) is amended--
(1) by amending section 904(2)(C) to read as follows:
"(C) used to facilitate the design, development, or
production of chemical or biological weapons, missiles, or
weapons of mass destruction.";
(2) in section 906(a)(1)--
(A) by inserting ", the Taliban or the territory of
Afghanistan controlled by the Taliban," after "Cuba"; and
(B) by inserting ", or in the territory of Afghanistan
controlled by the Taliban," after "within such country";
and
(3) in section 906(a)(2), by inserting ", or to any other
entity in Syria or North Korea" after "Korea".
(b) Application of the Trade Sanctions Reform and Export
Enhancement Act.--Nothing in the Trade Sanctions Reform and
Export Enhancement Act of 2000 shall limit the application or
scope of any law establishing criminal or civil penalties,
including any executive order or regulation promulgated
pursuant to such laws (or similar or successor laws), for the
unlawful export of any agricultural commodity, medicine, or
medical device to--
(1) a foreign organization, group, or person designated
pursuant to Executive Order 12947 of January 23, 1995, as
amended;
(2) a Foreign Terrorist Organization pursuant to the
Antiterrorism and Effective Death Penalty Act of 1996 (Public
Law 104-132);
(3) a foreign organization, group, or person designated
pursuant to Executive Order 13224 (September 23, 2001);
(4) any narcotics trafficking entity designated pursuant to
Executive Order 12978 (October 21, 1995) or the Foreign
Narcotics Kingpin Designation Act (Public Law 106-120); or
(5) any foreign organization, group, or persons subject to
any restriction for its involvement in weapons of mass
destruction or missile proliferation.
SEC. 222. ASSISTANCE TO LAW ENFORCEMENT AGENCIES.
Nothing in this Act shall impose any additional technical
obligation or requirement on a provider of a wire or
electronic communication service or other person to furnish
facilities or technical assistance. A provider of a wire or
electronic communication service, landlord, custodian, or
other person who furnishes facilities or technical assistance
pursuant to section 216 shall be reasonably compensated for
such reasonable expenditures incurred in providing such
facilities or assistance.
SEC. 223. CIVIL LIABILITY FOR CERTAIN UNAUTHORIZED
DISCLOSURES.
(a) Section 2520 of title 18, United States Code, is
amended--
(1) in subsection (a), after "entity", by inserting ",
other than the United States,";
(2) by adding at the end the following:
"(f) Administrative Discipline.--If a court or appropriate
department or agency determines that the United States or any
of its departments or agencies has violated any provision of
this chapter, and the court or appropriate department or
agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or
employee of the United States acted willfully or
intentionally with respect to the violation, the department
or agency shall, upon receipt of a true and correct copy of
the decision and findings of the court or appropriate
department or agency promptly initiate a proceeding to
determine whether disciplinary action against the officer or
employee is warranted. If the head of the department or
agency involved determines that disciplinary action is not
warranted, he or she shall notify the Inspector General with
jurisdiction over the department or agency concerned and
shall provide the Inspector General with the reasons for such
determination."; and
(3) by adding a new subsection (g), as follows:
"(g) Improper Disclosure Is Violation.--Any willful
disclosure or use by an investigative or law enforcement
officer or governmental entity of information beyond the
extent permitted by section 2517 is a violation of this
chapter for purposes of section 2520(a).
(b) Section 2707 of title 18, United States Code, is
amended--
(1) in subsection (a), after "entity", by inserting ",
other than the United States,";
(2) by striking subsection (d) and inserting the following:
"(d) Administrative Discipline.--If a court or appropriate
department or agency determines that the United States or any
of its departments or agencies has violated any provision of
this chapter, and the court or appropriate department or
agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or
employee of the United States acted willfully or
intentionally with respect to the violation, the department
or agency shall, upon receipt of a true and correct copy of
the decision and findings of the court or appropriate
department or agency promptly initiate a proceeding to
determine whether disciplinary action against the officer or
employee is warranted. If the head of the department or
agency involved determines that disciplinary action is not
warranted, he or she shall notify the Inspector General with
jurisdiction over the department or agency concerned and
shall provide the Inspector General with the reasons for such
determination."; and
(3) by adding a new subsection (g), as follows:
"(g) Improper Disclosure.--Any willful disclosure of a
`record', as that term is defined in section 552a(a) of title
5, United States Code, obtained by an investigative or law
enforcement officer, or a governmental entity, pursuant to
section 2703 of this title, or from a device installed
pursuant to section 3123 or 3125 of this title, that is not a
disclosure made in the proper performance of the official
functions of the officer or governmental entity making the
disclosure, is a
[[Page H7166]]
violation of this chapter. This provision shall not apply to
information previously lawfully disclosed (prior to the
commencement of any civil or administrative proceeding under
this chapter) to the public by a Federal, State, or local
governmental entity or by the plaintiff in a civil action
under this chapter.".
(c)(1) Chapter 121 of title 18, United States Code, is
amended by adding at the end the following:
"Sec. 2712. Civil actions against the United States
"(a) In General.--Any person who is aggrieved by any
willful violation of this chapter or of chapter 119 of this
title or of sections 106(a), 305(a), or 405(a) of the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et
seq.) may commence an action in United States District Court
against the United States to recover money damages. In any
such action, if a person who is aggrieved successfully
establishes such a violation of this chapter or of chapter
119 of this title or of the above specific provisions of
title 50, the Court may assess as damages--
"(1) actual damages, but not less than $10,000, whichever
amount is greater; and
"(2) litigation costs, reasonably incurred.
"(b) Procedures.--(1) Any action against the United States
under this section may be commenced only after a claim is
presented to the appropriate department or agency under the
procedures of the Federal Tort Claims Act, as set forth in
title 28, United States Code.
"(2) Any action against the United States under this
section shall be forever barred unless it is presented in
writing to the appropriate Federal agency within 2 years
after such claim accrues or unless action is begun within 6
months after the date of mailing, by certified or registered
mail, of notice of final denial of the claim by the agency to
which it was presented. The claim shall accrue on the date
upon which the claimant first has a reasonable opportunity to
discover the violation.".
"(3) Any action under this section shall be tried to the
court without a jury.
"(4) Notwithstanding any other provision of law, the
procedures set forth in section 106(f), 305(g), or 405(f) of
the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.
1801 et seq.) shall be the exclusive means by which materials
governed by those sections may be reviewed.
"(5) An amount equal to any award against the United
States under this section shall be reimbursed by the
department or agency concerned to the fund described in
section 1304 of title 31, United States Code, out of any
appropriation, fund, or other account (excluding any part of
such appropriation, fund, or account that is available for
the enforcement of any Federal law) that is available for the
operating expenses of the department or agency concerned.
"(c) Administrative Discipline.--If a court or appropriate
department or agency determines that the United States or any
of its departments or agencies has violated any provision of
this chapter, and the court or appropriate department or
agency finds that the circumstances surrounding the violation
raise serious questions about whether or not an officer or
employee of the United States acted willfully or
intentionally with respect to the possible violation, the
department or agency shall, upon receipt of a true and
correct copy of the decision and findings of the court or
appropriate department or agency promptly initiate a
proceeding to determine whether disciplinary action against
the officer or employee is warranted. If the head of the
department or agency involved determines that disciplinary
action is not warranted, he or she shall notify the Inspector
General with jurisdiction over the department or agency
concerned and shall provide the Inspector General with the
reasons for such determination.
"(d) Exclusive Remedy.--Any action against the United
States under this subsection shall be the exclusive remedy
against the United States for any claims within the purview
of this section.
"(e) Stay of Proceedings.--(1) Upon the motion of the
United States, the court shall stay any action commenced
under this section if the court determines that civil
discovery will adversely affect the ability of the Government
to conduct a related investigation or the prosecution of a
related criminal case. Such a stay shall toll the limitations
periods of paragraph (2) of subsection (b).
"(2) In this subsection, the terms `related criminal case'
and `related investigation' mean an actual prosecution or
investigation in progress at the time at which the request
for the stay or any subsequent motion to lift the stay is
made. In determining whether an investigation or a criminal
case is related to an action commenced under this section,
the court shall consider the degree of similarity between the
parties, witnesses, facts, and circumstances involved in the
2 proceedings, without requiring that any one or more factors
be identical.
"(3) In requesting a stay under paragraph (1), the
Government may, in appropriate cases, submit evidence ex
parte in order to avoid disclosing any matter that may
adversely affect a related investigation or a related
criminal case. If the Government makes such an ex parte
submission, the plaintiff shall be given an opportunity to
make a submission to the court, not ex parte, and the court
may, in its discretion, request further information from
either party.".
(2) The table of sections at the beginning of chapter 121
is amended to read as follows:
"2712. Civil action against the United States.".
SEC. 224. SUNSET.
(a) In General.--Except as provided in subsection (b), this
title and the amendments made by this title (other than
sections 203(a), 203(c), 205, 208, 210, 211, 213, 216, 219,
221, and 222, and the amendments made by those sections)
shall cease to have effect on December 31, 2005.
(b) Exception.--With respect to any particular foreign
intelligence investigation that began before the date on
which the provisions referred to in subsection (a) cease to
have effect, or with respect to any particular offense or
potential offense that began or occurred before the date on
which such provisions cease to have effect, such provisions
shall continue in effect.
SEC. 225. IMMUNITY FOR COMPLIANCE WITH FISA WIRETAP.
Section 105 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1805) is amended by inserting after
subsection (g) the following:
"(h) No cause of action shall lie in any court against any
provider of a wire or electronic communication service,
landlord, custodian, or other person (including any officer,
employee, agent, or other specified person thereof) that
furnishes any information, facilities, or technical
assistance in accordance with a court order or request for
emergency assistance under this Act.".
TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST
FINANCING ACT OF 2001
SEC. 301. SHORT TITLE.
This title may be cited as the "International Money
Laundering Abatement and Financial Anti-Terrorism Act of
2001".
SEC. 302. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) money laundering, estimated by the International
Monetary Fund to amount to between 2 and 5 percent of global
gross domestic product, which is at least $600,000,000,000
annually, provides the financial fuel that permits
transnational criminal enterprises to conduct and expand
their operations to the detriment of the safety and security
of American citizens;
(2) money laundering, and the defects in financial
transparency on which money launderers rely, are critical to
the financing of global terrorism and the provision of funds
for terrorist attacks;
(3) money launderers subvert legitimate financial
mechanisms and banking relationships by using them as
protective covering for the movement of criminal proceeds and
the financing of crime and terrorism, and, by so doing, can
threaten the safety of United States citizens and undermine
the integrity of United States financial institutions and of
the global financial and trading systems upon which
prosperity and growth depend;
(4) certain jurisdictions outside of the United States that
offer "offshore" banking and related facilities designed to
provide anonymity, coupled with weak financial supervisory
and enforcement regimes, provide essential tools to disguise
ownership and movement of criminal funds, derived from, or
used to commit, offenses ranging from narcotics trafficking,
terrorism, arms smuggling, and trafficking in human beings,
to financial frauds that prey on law-abiding citizens;
(5) transactions involving such offshore jurisdictions make
it difficult for law enforcement officials and regulators to
follow the trail of money earned by criminals, organized
international criminal enterprises, and global terrorist
organizations;
(6) correspondent banking facilities are one of the banking
mechanisms susceptible in some circumstances to manipulation
by foreign banks to permit the laundering of funds by hiding
the identity of real parties in interest to financial
transactions;
(7) private banking services can be susceptible to
manipulation by money launderers, for example corrupt foreign
government officials, particularly if those services include
the creation of offshore accounts and facilities for large
personal funds transfers to channel funds into accounts
around the globe;
(8) United States anti-money laundering efforts are impeded
by outmoded and inadequate statutory provisions that make
investigations, prosecutions, and forfeitures more difficult,
particularly in cases in which money laundering involves
foreign persons, foreign banks, or foreign countries;
(9) the ability to mount effective counter-measures to
international money launderers requires national, as well as
bilateral and multilateral action, using tools specially
designed for that effort; and
(10) the Basle Committee on Banking Regulation and
Supervisory Practices and the Financial Action Task Force on
Money Laundering, of both of which the United States is a
member, have each adopted international anti-money laundering
principles and recommendations.
(b) Purposes.--The purposes of this title are--
(1) to increase the strength of United States measures to
prevent, detect, and prosecute international money laundering
and the financing of terrorism;
(2) to ensure that--
(A) banking transactions and financial relationships and
the conduct of such transactions and relationships, do not
contravene the purposes of subchapter II of chapter 53 of
[[Page H7167]]
title 31, United States Code, section 21 of the Federal
Deposit Insurance Act, or chapter 2 of title I of Public Law
91-508 (84 Stat. 1116), or facilitate the evasion of any such
provision; and
(B) the purposes of such provisions of law continue to be
fulfilled, and such provisions of law are effectively and
efficiently administered;
(3) to strengthen the provisions put into place by the
Money Laundering Control Act of 1986 (18 U.S.C. 981 note),
especially with respect to crimes by non-United States
nationals and foreign financial institutions;
(4) to provide a clear national mandate for subjecting to
special scrutiny those foreign jurisdictions, financial
institutions operating outside of the United States, and
classes of international transactions or types of accounts
that pose particular, identifiable opportunities for criminal
abuse;
(5) to provide the Secretary of the Treasury (in this title
referred to as the "Secretary") with broad discretion,
subject to the safeguards provided by the Administrative
Procedure Act under title 5, United States Code, to take
measures tailored to the particular money laundering problems
presented by specific foreign jurisdictions, financial
institutions operating outside of the United States, and
classes of international transactions or types of accounts;
(6) to ensure that the employment of such measures by the
Secretary permits appropriate opportunity for comment by
affected financial institutions;
(7) to provide guidance to domestic financial institutions
on particular foreign jurisdictions, financial institutions
operating outside of the United States, and classes of
international transactions that are of primary money
laundering concern to the United States Government;
(8) to ensure that the forfeiture of any assets in
connection with the anti-terrorist efforts of the United
States permits for adequate challenge consistent with
providing due process rights;
(9) to clarify the terms of the safe harbor from civil
liability for filing suspicious activity reports;
(10) to strengthen the authority of the Secretary to issue
and administer geographic targeting orders, and to clarify
that violations of such orders or any other requirement
imposed under the authority contained in chapter 2 of title I
of Public Law 91-508 and subchapters II and III of chapter 53
of title 31, United States Code, may result in criminal and
civil penalties;
(11) to ensure that all appropriate elements of the
financial services industry are subject to appropriate
requirements to report potential money laundering
transactions to proper authorities, and that jurisdictional
disputes do not hinder examination of compliance by financial
institutions with relevant reporting requirements;
(12) to strengthen the ability of financial institutions to
maintain the integrity of their employee population; and
(13) to strengthen measures to prevent the use of the
United States financial system for personal gain by corrupt
foreign officials and to facilitate the repatriation of any
stolen assets to the citizens of countries to whom such
assets belong.
SEC. 303. 4-YEAR CONGRESSIONAL REVIEW; EXPEDITED
CONSIDERATION.
(a) In General.--Effective on and after the first day of
fiscal year 2005, the provisions of this title and the
amendments made by this title shall terminate if the Congress
enacts a joint resolution, the text after the resolving
clause of which is as follows: "That provisions of the
International Money Laundering Abatement and Anti-Terrorist
Financing Act of 2001, and the amendments made thereby, shall
no longer have the force of law.".
(b) Expedited Consideration.--Any joint resolution
submitted pursuant to this section should be considered by
the Congress expeditiously. In particular, it shall be
considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and
Arms Control Act of 1976.
Subtitle A--International Counter Money Laundering and Related Measures
SEC. 311. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL
INSTITUTIONS, OR INTERNATIONAL TRANSACTIONS OF
PRIMARY MONEY LAUNDERING CONCERN.
(a) In General.--Subchapter II of chapter 53 of title 31,
United States Code, is amended by inserting after section
5318 the following new section:
"Sec. 5318A. Special measures for jurisdictions, financial
institutions, or international transactions of primary
money laundering concern
"(a) International Counter-Money Laundering
Requirements.--
"(1) In general.--The Secretary of the Treasury may
require domestic financial institutions and domestic
financial agencies to take 1 or more of the special measures
described in subsection (b) if the Secretary finds that
reasonable grounds exist for concluding that a jurisdiction
outside of the United States, 1 or more financial
institutions operating outside of the United States, 1 or
more classes of transactions within, or involving, a
jurisdiction outside of the United States, or 1 or more types
of accounts is of primary money laundering concern, in
accordance with subsection (c).
"(2) Form of requirement.--The special measures described
in--
"(A) subsection (b) may be imposed in such sequence or
combination as the Secretary shall determine;
"(B) paragraphs (1) through (4) of subsection (b) may be
imposed by regulation, order, or otherwise as permitted by
law; and
"(C) subsection (b)(5) may be imposed only by regulation.
"(3) Duration of orders; rulemaking.--Any order by which a
special measure described in paragraphs (1) through (4) of
subsection (b) is imposed (other than an order described in
section 5326)--
"(A) shall be issued together with a notice of proposed
rulemaking relating to the imposition of such special
measure; and
"(B) may not remain in effect for more than 120 days,
except pursuant to a rule promulgated on or before the end of
the 120-day period beginning on the date of issuance of such
order.
"(4) Process for selecting special measures.--In selecting
which special measure or measures to take under this
subsection, the Secretary of the Treasury--
"(A) shall consult with the Chairman of the Board of
Governors of the Federal Reserve System, any other
appropriate Federal banking agency, as defined in section 3
of the Federal Deposit Insurance Act, the Secretary of State,
the Securities and Exchange Commission, the Commodity Futures
Trading Commission, the National Credit Union Administration
Board, and in the sole discretion of the Secretary, such
other agencies and interested parties as the Secretary may
find to be appropriate; and
"(B) shall consider--
"(i) whether similar action has been or is being taken by
other nations or multilateral groups;
"(ii) whether the imposition of any particular special
measure would create a significant competitive disadvantage,
including any undue cost or burden associated with
compliance, for financial institutions organized or licensed
in the United States;
"(iii) the extent to which the action or the timing of the
action would have a significant adverse systemic impact on
the international payment, clearance, and settlement system,
or on legitimate business activities involving the particular
jurisdiction, institution, or class of transactions; and
"(iv) the effect of the action on United States national
security and foreign policy.
"(5) No limitation on other authority.--This section shall
not be construed as superseding or otherwise restricting any
other authority granted to the Secretary, or to any other
agency, by this subchapter or otherwise.
"(b) Special Measures.--The special measures referred to
in subsection (a), with respect to a jurisdiction outside of
the United States, financial institution operating outside of
the United States, class of transaction within, or involving,
a jurisdiction outside of the United States, or 1 or more
types of accounts are as follows:
"(1) Recordkeeping and reporting of certain financial
transactions.--
"(A) In general.--The Secretary of the Treasury may
require any domestic financial institution or domestic
financial agency to maintain records, file reports, or both,
concerning the aggregate amount of transactions, or
concerning each transaction, with respect to a jurisdiction
outside of the United States, 1 or more financial
institutions operating outside of the United States, 1 or
more classes of transactions within, or involving, a
jurisdiction outside of the United States, or 1 or more types
of accounts if the Secretary finds any such jurisdiction,
institution, or class of transactions to be of primary money
laundering concern.
"(B) Form of records and reports.--Such records and
reports shall be made and retained at such time, in such
manner, and for such period of time, as the Secretary shall
determine, and shall include such information as the
Secretary may determine, including--
"(i) the identity and address of the participants in a
transaction or relationship, including the identity of the
originator of any funds transfer;
"(ii) the legal capacity in which a participant in any
transaction is acting;
"(iii) the identity of the beneficial owner of the funds
involved in any transaction, in accordance with such
procedures as the Secretary determines to be reasonable and
practicable to obtain and retain the information; and
"(iv) a description of any transaction.
"(2) Information relating to beneficial ownership.--In
addition to any other requirement under any other provision
of law, the Secretary may require any domestic financial
institution or domestic financial agency to take such steps
as the Secretary may determine to be reasonable and
practicable to obtain and retain information concerning the
beneficial ownership of any account opened or maintained in
the United States by a foreign person (other than a foreign
entity whose shares are subject to public reporting
requirements or are listed and traded on a regulated exchange
or trading market), or a representative of such a foreign
person, that involves a jurisdiction outside of the United
States, 1 or more financial institutions operating outside of
the United States, 1 or more classes of transactions within,
or involving, a jurisdiction outside of the United States, or
1 or more types of accounts if the Secretary finds any such
jurisdiction, institution, or transaction or type of account
to be of primary money laundering concern.
[[Page H7168]]
"(3) Information relating to certain payable-through
accounts.--If the Secretary finds a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States to be of primary money laundering concern,
the Secretary may require any domestic financial institution
or domestic financial agency that opens or maintains a
payable-through account in the United States for a foreign
financial institution involving any such jurisdiction or any
such financial institution operating outside of the United
States, or a payable through account through which any such
transaction may be conducted, as a condition of opening or
maintaining such account--
"(A) to identify each customer (and representative of such
customer) of such financial institution who is permitted to
use, or whose transactions are routed through, such payable-
through account; and
"(B) to obtain, with respect to each such customer (and
each such representative), information that is substantially
comparable to that which the depository institution obtains
in the ordinary course of business with respect to its
customers residing in the United States.
"(4) Information relating to certain correspondent
accounts.--If the Secretary finds a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States to be of primary money laundering concern,
the Secretary may require any domestic financial institution
or domestic financial agency that opens or maintains a
correspondent account in the United States for a foreign
financial institution involving any such jurisdiction or any
such financial institution operating outside of the United
States, or a correspondent account through which any such
transaction may be conducted, as a condition of opening or
maintaining such account--
"(A) to identify each customer (and representative of such
customer) of any such financial institution who is permitted
to use, or whose transactions are routed through, such
correspondent account; and
"(B) to obtain, with respect to each such customer (and
each such representative), information that is substantially
comparable to that which the depository institution obtains
in the ordinary course of business with respect to its
customers residing in the United States.
"(5) Prohibitions or conditions on opening or maintaining
certain correspondent or payable-through accounts.--If the
Secretary finds a jurisdiction outside of the United States,
1 or more financial institutions operating outside of the
United States, or 1 or more classes of transactions within,
or involving, a jurisdiction outside of the United States to
be of primary money laundering concern, the Secretary, in
consultation with the Secretary of State, the Attorney
General, and the Chairman of the Board of Governors of the
Federal Reserve System, may prohibit, or impose conditions
upon, the opening or maintaining in the United States of a
correspondent account or payable- through account by any
domestic financial institution or domestic financial agency
for or on behalf of a foreign banking institution, if such
correspondent account or payable-through account involves any
such jurisdiction or institution, or if any such transaction
may be conducted through such correspondent account or
payable-through account.
"(c) Consultations and Information To Be Considered in
Finding Jurisdictions, Institutions, Types of Accounts, or
Transactions To Be of Primary Money Laundering Concern.--
"(1) In general.--In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside of
the United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts is of
primary money laundering concern so as to authorize the
Secretary of the Treasury to take 1 or more of the special
measures described in subsection (b), the Secretary shall
consult with the Secretary of State and the Attorney General.
"(2) Additional considerations.--In making a finding
described in paragraph (1), the Secretary shall consider in
addition such information as the Secretary determines to be
relevant, including the following potentially relevant
factors:
"(A) Jurisdictional factors.--In the case of a particular
jurisdiction--
"(i) evidence that organized criminal groups,
international terrorists, or both, have transacted business
in that jurisdiction;
"(ii) the extent to which that jurisdiction or financial
institutions operating in that jurisdiction offer bank
secrecy or special regulatory advantages to nonresidents or
nondomiciliaries of that jurisdiction;
"(iii) the substance and quality of administration of the
bank supervisory and counter-money laundering laws of that
jurisdiction;
"(iv) the relationship between the volume of financial
transactions occurring in that jurisdiction and the size of
the economy of the jurisdiction;
"(v) the extent to which that jurisdiction is
characterized as an offshore banking or secrecy haven by
credible international organizations or multilateral expert
groups;
"(vi) whether the United States has a mutual legal
assistance treaty with that jurisdiction, and the experience
of United States law enforcement officials and regulatory
officials in obtaining information about transactions
originating in or routed through or to such jurisdiction; and
"(vii) the extent to which that jurisdiction is
characterized by high levels of official or institutional
corruption.
"(B) Institutional factors.--In the case of a decision to
apply 1 or more of the special measures described in
subsection (b) only to a financial institution or
institutions, or to a transaction or class of transactions,
or to a type of account, or to all 3, within or involving a
particular jurisdiction--
"(i) the extent to which such financial institutions,
transactions, or types of accounts are used to facilitate or
promote money laundering in or through the jurisdiction;
"(ii) the extent to which such institutions, transactions,
or types of accounts are used for legitimate business
purposes in the jurisdiction; and
"(iii) the extent to which such action is sufficient to
ensure, with respect to transactions involving the
jurisdiction and institutions operating in the jurisdiction,
that the purposes of this subchapter continue to be
fulfilled, and to guard against international money
laundering and other financial crimes.
"(d) Notification of Special Measures Invoked by the
Secretary.--Not later than 10 days after the date of any
action taken by the Secretary of the Treasury under
subsection (a)(1), the Secretary shall notify, in writing,
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate of any such action.
"(e) Definitions.--Notwithstanding any other provision of
this subchapter, for purposes of this section and subsections
(i) and (j) of section 5318, the following definitions shall
apply:
"(1) Bank definitions.--The following definitions shall
apply with respect to a bank:
"(A) Account.--The term `account'--
"(i) means a formal banking or business relationship
established to provide regular services, dealings, and other
financial transactions; and
"(ii) includes a demand deposit, savings deposit, or other
transaction or asset account and a credit account or other
extension of credit.
"(B) Correspondent account.--The term `correspondent
account' means an account established to receive deposits
from, make payments on behalf of a foreign financial
institution, or handle other financial transactions related
to such institution.
"(C) Payable-through account.--The term `payable-through
account' means an account, including a transaction account
(as defined in section 19(b)(1)(C) of the Federal Reserve
Act), opened at a depository institution by a foreign
financial institution by means of which the foreign financial
institution permits its customers to engage, either directly
or through a subaccount, in banking activities usual in
connection with the business of banking in the United States.
"(2) Definitions applicable to institutions other than
banks.--With respect to any financial institution other than
a bank, the Secretary shall, after consultation with the
appropriate Federal functional regulators (as defined in
section 509 of the Gramm-Leach-Bliley Act), define by
regulation the term `account', and shall include within the
meaning of that term, to the extent, if any, that the
Secretary deems appropriate, arrangements similar to payable-
through and correspondent accounts.
"(3) Regulatory definition of beneficial ownership.--The
Secretary shall promulgate regulations defining beneficial
ownership of an account for purposes of this section and
subsections (i) and (j) of section 5318. Such regulations
shall address issues related to an individual's authority to
fund, direct, or manage the account (including, without
limitation, the power to direct payments into or out of the
account), and an individual's material interest in the income
or corpus of the account, and shall ensure that the
identification of individuals under this section does not
extend to any individual whose beneficial interest in the
income or corpus of the account is immaterial.".
"(4) Other terms.--The Secretary may, by regulation,
further define the terms in paragraphs (1), (2), and (3), and
define other terms for the purposes of this section, as the
Secretary deems appropriate.".
(b) Clerical Amendment.--The table of sections for
subchapter II of chapter 53 of title 31, United States Code,
is amended by inserting after the item relating to section
5318 the following new item:
"5318A. Special measures for jurisdictions, financial institutions, or
international transactions of primary money laundering
concern.".
SEC. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS
AND PRIVATE BANKING ACCOUNTS.
(a) In General.--Section 5318 of title 31, United States
Code, is amended by adding at the end the following:
"(i) Due Diligence for United States Private Banking and
Correspondent Bank Accounts Involving Foreign Persons.--
[[Page H7169]]
"(1) In general.--Each financial institution that
establishes, maintains, administers, or manages a private
banking account or a correspondent account in the United
States for a non-United States person, including a foreign
individual visiting the United States, or a representative of
a non-United States person shall establish appropriate,
specific, and, where necessary, enhanced, due diligence
policies, procedures, and controls that are reasonably
designed to detect and report instances of money laundering
through those accounts.
"(2) Additional standards for certain correspondent
accounts.--
"(A) In general.--Subparagraph (B) shall apply if a
correspondent account is requested or maintained by, or on
behalf of, a foreign bank operating--
"(i) under an offshore banking license; or
"(ii) under a banking license issued by a foreign country
that has been designated--
"(I) as noncooperative with international anti-money
laundering principles or procedures by an intergovernmental
group or organization of which the United States is a member,
with which designation the United States representative to
the group or organization concurs; or
"(II) by the Secretary of the Treasury as warranting
special measures due to money laundering concerns.
"(B) Policies, procedures, and controls.--The enhanced due
diligence policies, procedures, and controls required under
paragraph (1) shall, at a minimum, ensure that the financial
institution in the United States takes reasonable steps--
"(i) to ascertain for any such foreign bank, the shares of
which are not publicly traded, the identity of each of the
owners of the foreign bank, and the nature and extent of the
ownership interest of each such owner;
"(ii) to conduct enhanced scrutiny of such account to
guard against money laundering and report any suspicious
transactions under subsection (g); and
"(iii) to ascertain whether such foreign bank provides
correspondent accounts to other foreign banks and, if so, the
identity of those foreign banks and related due diligence
information, as appropriate under paragraph (1).
"(3) Minimum standards for private banking accounts.--If a
private banking account is requested or maintained by, or on
behalf of, a non-United States person, then the due diligence
policies, procedures, and controls required under paragraph
(1) shall, at a minimum, ensure that the financial
institution takes reasonable steps--
"(A) to ascertain the identity of the nominal and
beneficial owners of, and the source of funds deposited into,
such account as needed to guard against money laundering and
report any suspicious transactions under subsection (g); and
"(B) to conduct enhanced scrutiny of any such account that
is requested or maintained by, or on behalf of, a senior
foreign political figure, or any immediate family member or
close associate of a senior foreign political figure that is
reasonably designed to detect and report transactions that
may involve the proceeds of foreign corruption.
"(4) Definition.--For purposes of this subsection, the
following definitions shall apply:
"(A) Offshore banking license.--The term `offshore banking
license' means a license to conduct banking activities which,
as a condition of the license, prohibits the licensed entity
from conducting banking activities with the citizens of, or
with the local currency of, the country which issued the
license.".
"(B) Private banking account.--The term `private banking
account' means an account (or any combination of accounts)
that--
"(i) requires a minimum aggregate deposits of funds or
other assets of not less than $1,000,000;
"(ii) is established on behalf of 1 or more individuals
who have a direct or beneficial ownership interest in the
account; and
"(iii) is assigned to, or is administered or managed by,
in whole or in part, an officer, employee, or agent of a
financial institution acting as a liaison between the
financial institution and the direct or beneficial owner of
the account.".
(b) Regulatory Authority and Effective Date.--
(1) Regulatory authority.--Not later than 180 days after
the date of enactment of this Act, the Secretary, in
consultation with the appropriate Federal functional
regulators (as defined in section 509 of the Gramm-Leach-
Bliley Act) of the affected financial institutions, shall
further delineate, by regulation, the due diligence policies,
procedures, and controls required under section 5318(i)(1) of
title 31, United States Code, as added by this section.
(2) Effective date.--Section 5318(i) of title 31, United
States Code, as added by this section, shall take effect 270
days after the date of enactment of this Act, whether or not
final regulations are issued under paragraph (1), and the
failure to issue such regulations shall in no way affect the
enforceability of this section or the amendments made by this
section. Section 5318(i) of title 31, United States Code, as
added by this section, shall apply with respect to accounts
covered by that section 5318(i), that are opened before, on,
or after the date of enactment of this Act.
SEC. 313. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS
WITH FOREIGN SHELL BANKS.
(a) In General.--Section 5318 of title 31, United States
Code, as amended by this title, is amended by adding at the
end the following:
"(j) Prohibition on United States Correspondent Accounts
With Foreign Shell Banks.--
"(1) In general.--A financial institution described in
subparagraphs (A) through (G) of section 5312(a)(2) (in this
subsection referred to as a `covered financial institution')
shall not establish, maintain, administer, or manage a
correspondent account in the United States for, or on behalf
of, a foreign bank that does not have a physical presence in
any country.
"(2) Prevention of indirect service to foreign shell
banks.--A covered financial institution shall take reasonable
steps to ensure that any correspondent account established,
maintained, administered, or managed by that covered
financial institution in the United States for a foreign bank
is not being used by that foreign bank to indirectly provide
banking services to another foreign bank that does not have a
physical presence in any country. The Secretary of the
Treasury shall, by regulation, delineate the reasonable steps
necessary to comply with this paragraph.
"(3) Exception.--Paragraphs (1) and (2) do not prohibit a
covered financial institution from providing a correspondent
account to a foreign bank, if the foreign bank--
"(A) is an affiliate of a depository institution, credit
union, or foreign bank that maintains a physical presence in
the United States or a foreign country, as applicable; and
"(B) is subject to supervision by a banking authority in
the country regulating the affiliated depository institution,
credit union, or foreign bank described in subparagraph (A),
as applicable.
"(4) Definitions.--For purposes of this subsection--
"(A) the term `affiliate' means a foreign bank that is
controlled by or is under common control with a depository
institution, credit union, or foreign bank; and
"(B) the term `physical presence' means a place of
business that--
"(i) is maintained by a foreign bank;
"(ii) is located at a fixed address (other than solely an
electronic address) in a country in which the foreign bank is
authorized to conduct banking activities, at which location
the foreign bank--
"(I) employs 1 or more individuals on a full-time basis;
and
"(II) maintains operating records related to its banking
activities; and
"(iii) is subject to inspection by the banking authority
which licensed the foreign bank to conduct banking
activities.".
(b) Effective Date.--The amendment made by subsection (a)
shall take effect at the end of the 60-day period beginning
on the date of enactment of this Act.
SEC. 314. COOPERATIVE EFFORTS TO DETER MONEY LAUNDERING.
(a) Cooperation Among Financial Institutions, Regulatory
Authorities, and Law Enforcement Authorities.--
(1) Regulations.--The Secretary shall, within 120 days
after the date of enactment of this Act, adopt regulations to
encourage further cooperation among financial institutions,
their regulatory authorities, and law enforcement
authorities, with the specific purpose of encouraging
regulatory authorities and law enforcement authorities to
share with financial institutions information regarding
individuals, entities, and organizations engaged in or
reasonably suspected based on credible evidence of engaging
in terrorist acts or money laundering activities.
(2) Cooperation and information sharing procedures.--The
regulations adopted under paragraph (1) may include or create
procedures for cooperation and information sharing focusing
on--
(A) matters specifically related to the finances of
terrorist groups, the means by which terrorist groups
transfer funds around the world and within the United States,
including through the use of charitable organizations,
nonprofit organizations, and nongovernmental organizations,
and the extent to which financial institutions in the United
States are unwittingly involved in such finances and the
extent to which such institutions are at risk as a result;
(B) the relationship, particularly the financial
relationship, between international narcotics traffickers and
foreign terrorist organizations, the extent to which their
memberships overlap and engage in joint activities, and the
extent to which they cooperate with each other in raising and
transferring funds for their respective purposes; and
(C) means of facilitating the identification of accounts
and transactions involving terrorist groups and facilitating
the exchange of information concerning such accounts and
transactions between financial institutions and law
enforcement organizations.
(3) Contents.--The regulations adopted pursuant to
paragraph (1) may--
(A) require that each financial institution designate 1 or
more persons to receive information concerning, and to
monitor accounts of individuals, entities, and organizations
identified, pursuant to paragraph (1); and
(B) further establish procedures for the protection of the
shared information, consistent with the capacity, size, and
nature of the institution to which the particular procedures
apply.
(4) Rule of construction.--The receipt of information by a
financial institution pursuant to this section shall not
relieve or otherwise modify the obligations of the financial
[[Page H7170]]
institution with respect to any other person or account.
(5) Use of information.--Information received by a
financial institution pursuant to this section shall not be
used for any purpose other than identifying and reporting on
activities that may involve terrorist acts or money
laundering activities.
(b) Cooperation Among Financial Institutions.--Upon notice
provided to the Secretary, 2 or more financial institutions
and any association of financial institutions may share
information with one another regarding individuals, entities,
organizations, and countries suspected of possible terrorist
or money laundering activities. A financial institution or
association that transmits, receives, or shares such
information for the purposes of identifying and reporting
activities that may involve terrorist acts or money
laundering activities shall not be liable to any person under
any law or regulation of the United States, any constitution,
law, or regulation of any State or political subdivision
thereof, or under any contract or other legally enforceable
agreement (including any arbitration agreement), for such
disclosure or for any failure to provide notice of such
disclosure to the person who is the subject of such
disclosure, or any other person identified in the disclosure,
except where such transmission, receipt, or sharing violates
this section or regulations promulgated pursuant to this
section.
(c) Rule of Construction.--Compliance with the provisions
of this title requiring or allowing financial institutions
and any association of financial institutions to disclose or
share information regarding individuals, entities, and
organizations engaged in or suspected of engaging in
terrorist acts or money laundering activities shall not
constitute a violation of the provisions of title V of the
Gramm-Leach-Bliley Act (Public Law 106-102).
(d) Reports to the Financial Services Industry on
Suspicious Financial Activities.--At least semiannually, the
Secretary shall--
(1) publish a report containing a detailed analysis
identifying patterns of suspicious activity and other
investigative insights derived from suspicious activity
reports and investigations conducted by Federal, State, and
local law enforcement agencies to the extent appropriate; and
(2) distribute such report to financial institutions (as
defined in section 5312 of title 31, United States Code).
SEC. 315. INCLUSION OF FOREIGN CORRUPTION OFFENSES AS MONEY
LAUNDERING CRIMES.
Section 1956(c)(7) of title 18, United States Code, is
amended--
(1) in subparagraph (B)--
(A) in clause (ii), by striking "or destruction of
property by means of explosive or fire" and inserting
"destruction of property by means of explosive or fire, or a
crime of violence (as defined in section 16)";
(B) in clause (iii), by striking "1978" and inserting
"1978)"; and
(C) by adding at the end the following:
"(iv) bribery of a public official, or the
misappropriation, theft, or embezzlement of public funds by
or for the benefit of a public official;
"(v) smuggling or export control violations involving--
"(I) an item controlled on the United States Munitions
List established under section 38 of the Arms Export Control
Act (22 U.S.C. 2778); or
"(II) an item controlled under regulations under the
Export Administration Regulations (15 C.F.R. Parts 730-774);
or
"(vi) an offense with respect to which the United States
would be obligated by a multilateral treaty, either to
extradite the alleged offender or to submit the case for
prosecution, if the offender were found within the territory
of the United States;"; and
(2) in subparagraph (D)--
(A) by inserting "section 541 (relating to goods falsely
classified)," before "section 542";
(B) by inserting "section 922(1) (relating to the unlawful
importation of firearms), section 924(n) (relating to
firearms trafficking)," before "section 956";
(C) by inserting "section 1030 (relating to computer fraud
and abuse)," before "1032"; and
(D) by inserting "any felony violation of the Foreign
Agents Registration Act of 1938," before "or any felony
violation of the Foreign Corrupt Practices Act".
SEC. 316. ANTI-TERRORIST FORFEITURE PROTECTION.
(a) Right to Contest.--An owner of property that is
confiscated under any provision of law relating to the
confiscation of assets of suspected international terrorists,
may contest that confiscation by filing a claim in the manner
set forth in the Federal Rules of Civil Procedure
(Supplemental Rules for Certain Admiralty and Maritime
Claims), and asserting as an affirmative defense that--
(1) the property is not subject to confiscation under such
provision of law; or
(2) the innocent owner provisions of section 983(d) of
title 18, United States Code, apply to the case.
(b) Evidence.--In considering a claim filed under this
section, a court may admit evidence that is otherwise
inadmissible under the Federal Rules of Evidence, if the
court determines that the evidence is reliable, and that
compliance with the Federal Rules of Evidence may jeopardize
the national security interests of the United States.
(c) Clarifications.--
(1) Protection of rights.--The exclusion of certain
provisions of Federal law from the definition of the term
"civil forfeiture statute" in section 983(i) of title 18,
United States Code, shall not be construed to deny an owner
of property the right to contest the confiscation of assets
of suspected international terrorists under--
(A) subsection (a) of this section;
(B) the Constitution; or
(C) subchapter II of chapter 5 of title 5, United States
Code (commonly known as the "Administrative Procedure
Act").
(2) Savings clause.--Nothing in this section shall limit or
otherwise affect any other remedies that may be available to
an owner of property under section 983 of title 18, United
States Code, or any other provision of law.
(d) Technical Correction.--Section 983(i)(2)(D) of title
18, United States Code, is amended by inserting "or the
International Emergency Economic Powers Act (IEEPA) (50
U.S.C. 1701 et seq.)" before the semicolon.
SEC. 317. LONG-ARM JURISDICTION OVER FOREIGN MONEY
LAUNDERERS.
Section 1956(b) of title 18, United States Code, is
amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving the
margins 2 ems to the right;
(2) by inserting after "(b)" the following:
"Penalties.--
"(1) In general.--";
(3) by inserting ", or section 1957" after "or (a)(3)";
and
(4) by adding at the end the following:
"(2) Jurisdiction over foreign persons.--For purposes of
adjudicating an action filed or enforcing a penalty ordered
under this section, the district courts shall have
jurisdiction over any foreign person, including any financial
institution authorized under the laws of a foreign country,
against whom the action is brought, if service of process
upon the foreign person is made under the Federal Rules of
Civil Procedure or the laws of the country in which the
foreign person is found, and--
"(A) the foreign person commits an offense under
subsection (a) involving a financial transaction that occurs
in whole or in part in the United States;
"(B) the foreign person converts, to his or her own use,
property in which the United States has an ownership interest
by virtue of the entry of an order of forfeiture by a court
of the United States; or
"(C) the foreign person is a financial institution that
maintains a bank account at a financial institution in the
United States.
"(3) Court authority over assets.--A court described in
paragraph (2) may issue a pretrial restraining order or take
any other action necessary to ensure that any bank account or
other property held by the defendant in the United States is
available to satisfy a judgment under this section.
"(4) Federal receiver.--
"(A) In general.--A court described in paragraph (2) may
appoint a Federal Receiver, in accordance with subparagraph
(B) of this paragraph, to collect, marshal, and take custody,
control, and possession of all assets of the defendant,
wherever located, to satisfy a civil judgment under this
subsection, a forfeiture judgment under section 981 or 982,
or a criminal sentence under section 1957 or subsection (a)
of this section, including an order of restitution to any
victim of a specified unlawful activity.
"(B) Appointment and authority.--A Federal Receiver
described in subparagraph (A)--
"(i) may be appointed upon application of a Federal
prosecutor or a Federal or State regulator, by the court
having jurisdiction over the defendant in the case;
"(ii) shall be an officer of the court, and the powers of
the Federal Receiver shall include the powers set out in
section 754 of title 28, United States Code; and
"(iii) shall have standing equivalent to that of a Federal
prosecutor for the purpose of submitting requests to obtain
information regarding the assets of the defendant--
"(I) from the Financial Crimes Enforcement Network of the
Department of the Treasury; or
"(II) from a foreign country pursuant to a mutual legal
assistance treaty, multilateral agreement, or other
arrangement for international law enforcement assistance,
provided that such requests are in accordance with the
policies and procedures of the Attorney General.".
SEC. 318. LAUNDERING MONEY THROUGH A FOREIGN BANK.
Section 1956(c) of title 18, United States Code, is amended
by striking paragraph (6) and inserting the following:
"(6) the term `financial institution' includes--
"(A) any financial institution, as defined in section
5312(a)(2) of title 31, United States Code, or the
regulations promulgated thereunder; and
"(B) any foreign bank, as defined in section 1 of the
International Banking Act of 1978 (12 U.S.C. 3101).".
SEC. 319. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK
ACCOUNTS.
(a) Forfeiture From United States Interbank Account.--
Section 981 of title 18, United States Code, is amended by
adding at the end the following:
"(k) Interbank Accounts.--
"(1) In general.--
"(A) In general.--For the purpose of a forfeiture under
this section or under the Controlled Substances Act (21
U.S.C. 801 et seq.),
[[Page H7171]]
if funds are deposited into an account at a foreign bank, and
that foreign bank has an interbank account in the United
States with a covered financial institution (as defined in
section 5318(j)(1) of title 31), the funds shall be deemed to
have been deposited into the interbank account in the United
States, and any restraining order, seizure warrant, or arrest
warrant in rem regarding the funds may be served on the
covered financial institution, and funds in the interbank
account, up to the value of the funds deposited into the
account at the foreign bank, may be restrained, seized, or
arrested.
"(B) Authority to suspend.--The Attorney General, in
consultation with the Secretary of the Treasury, may suspend
or terminate a forfeiture under this section if the Attorney
General determines that a conflict of law exists between the
laws of the jurisdiction in which the foreign bank is located
and the laws of the United States with respect to liabilities
arising from the restraint, seizure, or arrest of such funds,
and that such suspension or termination would be in the
interest of justice and would not harm the national interests
of the United States.
"(2) No requirement for government to trace funds.--If a
forfeiture action is brought against funds that are
restrained, seized, or arrested under paragraph (1), it shall
not be necessary for the Government to establish that the
funds are directly traceable to the funds that were deposited
into the foreign bank, nor shall it be necessary for the
Government to rely on the application of section 984.
"(3) Claims brought by owner of the funds.--If a
forfeiture action is instituted against funds restrained,
seized, or arrested under paragraph (1), the owner of the
funds deposited into the account at the foreign bank may
contest the forfeiture by filing a claim under section 983.
"(4) Definitions.--For purposes of this subsection, the
following definitions shall apply:
"(A) Interbank account.--The term `interbank account' has
the same meaning as in section 984(c)(2)(B).
"(B) Owner.--
"(i) In general.--Except as provided in clause (ii), the
term `owner'--
"(I) means the person who was the owner, as that term is
defined in section 983(d)(6), of the funds that were
deposited into the foreign bank at the time such funds were
deposited; and
"(II) does not include either the foreign bank or any
financial institution acting as an intermediary in the
transfer of the funds into the interbank account.
"(ii) Exception.--The foreign bank may be considered the
`owner' of the funds (and no other person shall qualify as
the owner of such funds) only if--
"(I) the basis for the forfeiture action is wrongdoing
committed by the foreign bank; or
"(II) the foreign bank establishes, by a preponderance of
the evidence, that prior to the restraint, seizure, or arrest
of the funds, the foreign bank had discharged all or part of
its obligation to the prior owner of the funds, in which case
the foreign bank shall be deemed the owner of the funds to
the extent of such discharged obligation.".
(b) Bank Records.--Section 5318 of title 31, United States
Code, as amended by this title, is amended by adding at the
end the following:
"(k) Bank Records Related to Anti-Money Laundering
Programs.--
"(1) Definitions.--For purposes of this subsection, the
following definitions shall apply:
"(A) Appropriate federal banking agency.--The term
`appropriate Federal banking agency' has the same meaning as
in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
"(B) Incorporated term.--The term `correspondent account'
has the same meaning as in section 5318A(f)(1)(B).
"(2) 120-hour rule.--Not later than 120 hours after
receiving a request by an appropriate Federal banking agency
for information related to anti-money laundering compliance
by a covered financial institution or a customer of such
institution, a covered financial institution shall provide to
the appropriate Federal banking agency, or make available at
a location specified by the representative of the appropriate
Federal banking agency, information and account documentation
for any account opened, maintained, administered or managed
in the United States by the covered financial institution.
"(3) Foreign bank records.--
"(A) Summons or subpoena of records.--
"(i) In general.--The Secretary of the Treasury or the
Attorney General may issue a summons or subpoena to any
foreign bank that maintains a correspondent account in the
United States and request records related to such
correspondent account, including records maintained outside
of the United States relating to the deposit of funds into
the foreign bank.
"(ii) Service of summons or subpoena.--A summons or
subpoena referred to in clause (i) may be served on the
foreign bank in the United States if the foreign bank has a
representative in the United States, or in a foreign country
pursuant to any mutual legal assistance treaty, multilateral
agreement, or other request for international law enforcement
assistance.
"(B) Acceptance of service.--
"(i) Maintaining records in the united states.--Any
covered financial institution which maintains a correspondent
account in the United States for a foreign bank shall
maintain records in the United States identifying the owners
of such foreign bank and the name and address of a person who
resides in the United States and is authorized to accept
service of legal process for records regarding the
correspondent account.
"(ii) Law enforcement request.--Upon receipt of a written
request from a Federal law enforcement officer for
information required to be maintained under this paragraph,
the covered financial institution shall provide the
information to the requesting officer not later than 7 days
after receipt of the request.
"(C) Termination of correspondent relationship.--
"(i) Termination upon receipt of notice.--A covered
financial institution shall terminate any correspondent
relationship with a foreign bank not later than 10 business
days after receipt of written notice from the Secretary or
the Attorney General (in each case, after consultation with
the other) that the foreign bank has failed--
"(I) to comply with a summons or subpoena issued under
subparagraph (A); or
"(II) to initiate proceedings in a United States court
contesting such summons or subpoena.
"(ii) Limitation on liability.--A covered financial
institution shall not be liable to any person in any court or
arbitration proceeding for terminating a correspondent
relationship in accordance with this subsection.
"(iii) Failure to terminate relationship.--Failure to
terminate a correspondent relationship in accordance with
this subsection shall render the covered financial
institution liable for a civil penalty of up to $10,000 per
day until the correspondent relationship is so terminated.".
(c) Grace Period.--Financial institutions shall have 60
days from the date of enactment of this Act to comply with
the provisions of section 5318(k) of title 31, United States
Code, as added by this section.
(d) Authority To Order Convicted Criminal To Return
Property Located Abroad.--
(1) Forfeiture of substitute property.--Section 413(p) of
the Controlled Substances Act (21 U.S.C. 853) is amended to
read as follows:
"(p) Forfeiture of Substitute Property.--
"(1) In general.--Paragraph (2) of this subsection shall
apply, if any property described in subsection (a), as a
result of any act or omission of the defendant--
"(A) cannot be located upon the exercise of due diligence;
"(B) has been transferred or sold to, or deposited with, a
third party;
"(C) has been placed beyond the jurisdiction of the court;
"(D) has been substantially diminished in value; or
"(E) has been commingled with other property which cannot
be divided without difficulty.
"(2) Substitute property.--In any case described in any of
subparagraphs (A) through (E) of paragraph (1), the court
shall order the forfeiture of any other property of the
defendant, up to the value of any property described in
subparagraphs (A) through (E) of paragraph (1), as
applicable.
"(3) Return of property to jurisdiction.--In the case of
property described in paragraph (1)(C), the court may, in
addition to any other action authorized by this subsection,
order the defendant to return the property to the
jurisdiction of the court so that the property may be seized
and forfeited.".
(2) Protective orders.--Section 413(e) of the Controlled
Substances Act (21 U.S.C. 853(e)) is amended by adding at the
end the following:
"(4) Order to repatriate and deposit.--
"(A) In general.--Pursuant to its authority to enter a
pretrial restraining order under this section, the court may
order a defendant to repatriate any property that may be
seized and forfeited, and to deposit that property pending
trial in the registry of the court, or with the United States
Marshals Service or the Secretary of the Treasury, in an
interest-bearing account, if appropriate.
"(B) Failure to comply.--Failure to comply with an order
under this subsection, or an order to repatriate property
under subsection (p), shall be punishable as a civil or
criminal contempt of court, and may also result in an
enhancement of the sentence of the defendant under the
obstruction of justice provision of the Federal Sentencing
Guidelines.".
SEC. 320. PROCEEDS OF FOREIGN CRIMES.
Section 981(a)(1)(B) of title 18, United States Code, is
amended to read as follows:
"(B) Any property, real or personal, within the
jurisdiction of the United States, constituting, derived
from, or traceable to, any proceeds obtained directly or
indirectly from an offense against a foreign nation, or any
property used to facilitate such an offense, if the offense--
"(i) involves the manufacture, importation, sale, or
distribution of a controlled substance (as that term is
defined for purposes of the Controlled Substances Act), or
any other conduct described in section 1956(c)(7)(B);
"(ii) would be punishable within the jurisdiction of the
foreign nation by death or imprisonment for a term exceeding
1 year; and
"(iii) would be punishable under the laws of the United
States by imprisonment for a term exceeding 1 year, if the
act or activity
[[Page H7172]]
constituting the offense had occurred within the jurisdiction
of the United States.".
SEC. 321. FINANCIAL INSTITUTIONS SPECIFIED IN SUBCHAPTER II
OF CHAPTER 53 OF TITLE 31, UNITED STATES CODE.
(a) Credit Unions.--Subparagraph (E) of section 5312(2) of
title 31, United States Code, is amended to read as follows:
"(E) any credit union;".
(b) Futures Commission Merchant; Commodity Trading Advisor;
Commodity Pool Operator.--Section 5312 of title 31, United
States Code, is amended by adding at the end the following
new subsection:
"(c) Additional Definitions.--For purposes of this
subchapter, the following definitions shall apply:
"(1) Certain institutions included in definition.--The
term `financial institution' (as defined in subsection (a))
includes the following:
"(A) Any futures commission merchant, commodity trading
advisor, or commodity pool operator registered, or required
to register, under the Commodity Exchange Act.".
(c) CFTC Included.--For purposes of this Act and any
amendment made by this Act to any other provision of law, the
term "Federal functional regulator" includes the Commodity
Futures Trading Commission.
SEC. 322. CORPORATION REPRESENTED BY A FUGITIVE.
Section 2466 of title 18, United States Code, is amended by
designating the present matter as subsection (a), and adding
at the end the following:
"(b) Subsection (a) may be applied to a claim filed by a
corporation if any majority shareholder, or individual filing
the claim on behalf of the corporation is a person to whom
subsection (a) applies.".
SEC. 323. ENFORCEMENT OF FOREIGN JUDGMENTS.
Section 2467 of title 28, United States Code, is amended--
(1) in subsection (d), by adding the following after
paragraph (2):
"(3) Preservation of property.--
"(A) In general.--To preserve the availability of property
subject to a foreign forfeiture or confiscation judgment, the
Government may apply for, and the court may issue, a
restraining order pursuant to section 983(j) of title 18, at
any time before or after an application is filed pursuant to
subsection (c)(1) of this section.
"(B) Evidence.--The court, in issuing a restraining order
under subparagraph (A)--
"(i) may rely on information set forth in an affidavit
describing the nature of the proceeding or investigation
underway in the foreign country, and setting forth a
reasonable basis to believe that the property to be
restrained will be named in a judgment of forfeiture at the
conclusion of such proceeding; or
"(ii) may register and enforce a restraining order that
has been issued by a court of competent jurisdiction in the
foreign country and certified by the Attorney General
pursuant to subsection (b)(2).
"(C) Limit on grounds for objection.--No person may object
to a restraining order under subparagraph (A) on any ground
that is the subject of parallel litigation involving the same
property that is pending in a foreign court.";
(2) in subsection (b)(1)(C), by striking "establishing
that the defendant received notice of the proceedings in
sufficient time to enable the defendant" and inserting
"establishing that the foreign nation took steps, in
accordance with the principles of due process, to give notice
of the proceedings to all persons with an interest in the
property in sufficient time to enable such persons";
(3) in subsection (d)(1)(D), by striking "the defendant in
the proceedings in the foreign court did not receive notice"
and inserting "the foreign nation did not take steps, in
accordance with the principles of due process, to give notice
of the proceedings to a person with an interest in the
property"; and
(4) in subsection (a)(2)(A), by inserting ", any violation
of foreign law that would constitute a violation or an
offense for which property could be forfeited under Federal
law if the offense were committed in the United States"
after "United Nations Convention".
SEC. 324. REPORT AND RECOMMENDATION.
Not later than 30 months after the date of enactment of
this Act, the Secretary, in consultation with the Attorney
General, the Federal banking agencies (as defined at section
3 of the Federal Deposit Insurance Act), the National Credit
Union Administration Board, the Securities and Exchange
Commission, and such other agencies as the Secretary may
determine, at the discretion of the Secretary, shall evaluate
the operations of the provisions of this subtitle and make
recommendations to Congress as to any legislative action with
respect to this subtitle as the Secretary may determine to be
necessary or advisable.
SEC. 325. CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS.
Section 5318(h) of title 31, United States Code, as amended
by section 202 of this title, is amended by adding at the end
the following:
"(3) Concentration accounts.--The Secretary may prescribe
regulations under this subsection that govern maintenance of
concentration accounts by financial institutions, in order to
ensure that such accounts are not used to prevent association
of the identity of an individual customer with the movement
of funds of which the customer is the direct or beneficial
owner, which regulations shall, at a minimum--
"(A) prohibit financial institutions from allowing clients
to direct transactions that move their funds into, out of, or
through the concentration accounts of the financial
institution;
"(B) prohibit financial institutions and their employees
from informing customers of the existence of, or the means of
identifying, the concentration accounts of the institution;
and
"(C) require each financial institution to establish
written procedures governing the documentation of all
transactions involving a concentration account, which
procedures shall ensure that, any time a transaction
involving a concentration account commingles funds belonging
to 1 or more customers, the identity of, and specific amount
belonging to, each customer is documented.".
SEC. 326. VERIFICATION OF IDENTIFICATION.
(a) In General.--Section 5318 of title 31, United States
Code, as amended by this title, is amended by adding at the
end the following:
"(l) Identification and Verification of Accountholders.--
"(1) In general.--Subject to the requirements of this
subsection, the Secretary of the Treasury shall prescribe
regulations setting forth the minimum standards for financial
institutions and their customers regarding the identity of
the customer that shall apply in connection with the opening
of an account at a financial institution.
"(2) Minimum requirements.--The regulations shall, at a
minimum, require financial institutions to implement, and
customers (after being given adequate notice) to comply with,
reasonable procedures for--
"(A) verifying the identity of any person seeking to open
an account to the extent reasonable and practicable;
"(B) maintaining records of the information used to verify
a person's identity, including name, address, and other
identifying information; and
"(C) consulting lists of known or suspected terrorists or
terrorist organizations provided to the financial institution
by any government agency to determine whether a person
seeking to open an account appears on any such list.
"(3) Factors to be considered.--In prescribing regulations
under this subsection, the Secretary shall take into
consideration the various types of accounts maintained by
various types of financial institutions, the various methods
of opening accounts, and the various types of identifying
information available.
"(4) Certain financial institutions.--In the case of any
financial institution the business of which is engaging in
financial activities described in section 4(k) of the Bank
Holding Company Act of 1956 (including financial activities
subject to the jurisdiction of the Commodity Futures Trading
Commission), the regulations prescribed by the Secretary
under paragraph (1) shall be prescribed jointly with each
Federal functional regulator (as defined in section 509 of
the Gramm-Leach-Bliley Act, including the Commodity Futures
Trading Commission) appropriate for such financial
institution.
"(5) Exemptions.--The Secretary (and, in the case of any
financial institution described in paragraph (4), any Federal
agency described in such paragraph) may, by regulation or
order, exempt any financial institution or type of account
from the requirements of any regulation prescribed under this
subsection in accordance with such standards and procedures
as the Secretary may prescribe.
"(6) Effective date.--Final regulations prescribed under
this subsection shall take effect before the end of the 1-
year period beginning on the date of enactment of the
International Money Laundering Abatement and Financial Anti-
Terrorism Act of 2001.".
(b) Study and Report Required.--Within 6 months after the
date of enactment of this Act, the Secretary, in consultation
with the Federal functional regulators (as defined in section
509 of the Gramm-Leach-Bliley Act) and other appropriate
Government agencies, shall submit a report to the Congress
containing recommendations for--
(1) determining the most timely and effective way to
require foreign nationals to provide domestic financial
institutions and agencies with appropriate and accurate
information, comparable to that which is required of United
States nationals, concerning the identity, address, and other
related information about such foreign nationals necessary to
enable such institutions and agencies to comply with the
requirements of this section;
(2) requiring foreign nationals to apply for and obtain,
before opening an account with a domestic financial
institution, an identification number which would function
similarly to a Social Security number or tax identification
number; and
(3) establishing a system for domestic financial
institutions and agencies to review information maintained by
relevant Government agencies for purposes of verifying the
identities of foreign nationals seeking to open accounts at
those institutions and agencies.
SEC. 327. CONSIDERATION OF ANTI-MONEY LAUNDERING RECORD.
(a) Bank Holding Company Act of 1956.--
(1) In general.--Section 3(c) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the
end the following new paragraph:
"(6) Money laundering.--In every case, the Board shall
take into consideration the effectiveness of the company or
companies in
[[Page H7173]]
combatting money laundering activities, including in overseas
branches.".
(2) Scope of application.--The amendment made by paragraph
(1) shall apply with respect to any application submitted to
the Board of Governors of the Federal Reserve System under
section 3 of the Bank Holding Company Act of 1956 after
December 31, 2001, which has not been approved by the Board
before the date of enactment of this Act.
(b) Mergers Subject to Review Under Federal Deposit
Insurance Act.--
(1) In general.--Section 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)) is amended--
(A) by redesignating paragraph (11) as paragraph (12); and
(B) by inserting after paragraph (10), the following new
paragraph:
"(11) Money laundering.--In every case, the responsible
agency, shall take into consideration the effectiveness of
any insured depository institution involved in the proposed
merger transaction in combatting money laundering activities,
including in overseas branches.".
(2) Scope of application.--The amendment made by paragraph
(1) shall apply with respect to any application submitted to
the responsible agency under section 18(c) of the Federal
Deposit Insurance Act after December 31, 2001, which has not
been approved by all appropriate responsible agencies before
the date of enactment of this Act.
SEC. 328. INTERNATIONAL COOPERATION ON IDENTIFICATION OF
ORIGINATORS OF WIRE TRANSFERS.
The Secretary shall--
(1) in consultation with the Attorney General and the
Secretary of State, take all reasonable steps to encourage
foreign governments to require the inclusion of the name of
the originator in wire transfer instructions sent to the
United States and other countries, with the information to
remain with the transfer from its origination until the point
of disbursement; and
(2) report annually to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on--
(A) progress toward the goal enumerated in paragraph (1),
as well as impediments to implementation and an estimated
compliance rate; and
(B) impediments to instituting a regime in which all
appropriate identification, as defined by the Secretary,
about wire transfer recipients shall be included with wire
transfers from their point of origination until disbursement.
SEC. 329. CRIMINAL PENALTIES.
Any person who is an official or employee of any
department, agency, bureau, office, commission, or other
entity of the Federal Government, and any other person who is
acting for or on behalf of any such entity, who, directly or
indirectly, in connection with the administration of this
title, corruptly demands, seeks, receives, accepts, or agrees
to receive or accept anything of value personally or for any
other person or entity in return for--
(1) being influenced in the performance of any official
act;
(2) being influenced to commit or aid in the committing, or
to collude in, or allow, any fraud, or make opportunity for
the commission of any fraud, on the United States; or
(3) being induced to do or omit to do any act in violation
of the official duty of such official or person,
shall be fined in an amount not more than 3 times the
monetary equivalent of the thing of value, or imprisoned for
not more than 15 years, or both. A violation of this section
shall be subject to chapter 227 of title 18, United States
Code, and the provisions of the United States Sentencing
Guidelines.
SEC. 330. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF
MONEY LAUNDERING, FINANCIAL CRIMES, AND THE
FINANCES OF TERRORIST GROUPS.
(a) Negotiations.--It is the sense of the Congress that the
President should direct the Secretary of State, the Attorney
General, or the Secretary of the Treasury, as appropriate,
and in consultation with the Board of Governors of the
Federal Reserve System, to seek to enter into negotiations
with the appropriate financial supervisory agencies and other
officials of any foreign country the financial institutions
of which do business with United States financial
institutions or which may be utilized by any foreign
terrorist organization (as designated under section 219 of
the Immigration and Nationality Act), any person who is a
member or representative of any such organization, or any
person engaged in money laundering or financial or other
crimes.
(b) Purposes of Negotiations.--It is the sense of the
Congress that, in carrying out any negotiations described in
paragraph (1), the President should direct the Secretary of
State, the Attorney General, or the Secretary of the
Treasury, as appropriate, to seek to enter into and further
cooperative efforts, voluntary information exchanges, the use
of letters rogatory, mutual legal assistance treaties, and
international agreements to--
(1) ensure that foreign banks and other financial
institutions maintain adequate records of transaction and
account information relating to any foreign terrorist
organization (as designated under section 219 of the
Immigration and Nationality Act), any person who is a member
or representative of any such organization, or any person
engaged in money laundering or financial or other crimes; and
(2) establish a mechanism whereby such records may be made
available to United States law enforcement officials and
domestic financial institution supervisors, when appropriate.
Subtitle B--Bank Secrecy Act Amendments and Related Improvements
SEC. 351. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS
ACTIVITIES.
(a) Amendment Relating to Civil Liability Immunity for
Disclosures.--Section 5318(g)(3) of title 31, United States
Code, is amended to read as follows:
"(3) Liability for disclosures.--
"(A) In general.--Any financial institution that makes a
voluntary disclosure of any possible violation of law or
regulation to a government agency or makes a disclosure
pursuant to this subsection or any other authority, and any
director, officer, employee, or agent of such institution who
makes, or requires another to make any such disclosure, shall
not be liable to any person under any law or regulation of
the United States, any constitution, law, or regulation of
any State or political subdivision of any State, or under any
contract or other legally enforceable agreement (including
any arbitration agreement), for such disclosure or for any
failure to provide notice of such disclosure to the person
who is the subject of such disclosure or any other person
identified in the disclosure.
"(B) Rule of construction.--Subparagraph (A) shall not be
construed as creating--
"(i) any inference that the term `person', as used in such
subparagraph, may be construed more broadly than its ordinary
usage so as to include any government or agency of
government; or
"(ii) any immunity against, or otherwise affecting, any
civil or criminal action brought by any government or agency
of government to enforce any constitution, law, or regulation
of such government or agency.".
(b) Prohibition on Notification of Disclosures.--Section
5318(g)(2) of title 31, United States Code, is amended to
read as follows:
"(2) Notification prohibited.--
"(A) In general.--If a financial institution or any
director, officer, employee, or agent of any financial
institution, voluntarily or pursuant to this section or any
other authority, reports a suspicious transaction to a
government agency--
"(i) the financial institution, director, officer,
employee, or agent may not notify any person involved in the
transaction that the transaction has been reported; and
"(ii) no officer or employee of the Federal Government or
of any State, local, tribal, or territorial government within
the United States, who has any knowledge that such report was
made may disclose to any person involved in the transaction
that the transaction has been reported, other than as
necessary to fulfill the official duties of such officer or
employee.
"(B) Disclosures in certain employment references.--
"(i) Rule of construction.--Notwithstanding the
application of subparagraph (A) in any other context,
subparagraph (A) shall not be construed as prohibiting any
financial institution, or any director, officer, employee, or
agent of such institution, from including information that
was included in a report to which subparagraph (A) applies--
"(I) in a written employment reference that is provided in
accordance with section 18(w) of the Federal Deposit
Insurance Act in response to a request from another financial
institution; or
"(II) in a written termination notice or employment
reference that is provided in accordance with the rules of a
self-regulatory organization registered with the Securities
and Exchange Commission or the Commodity Futures Trading
Commission,
except that such written reference or notice may not disclose
that such information was also included in any such report,
or that such report was made.
"(ii) Information not required.--Clause (i) shall not be
construed, by itself, to create any affirmative duty to
include any information described in clause (i) in any
employment reference or termination notice referred to in
clause (i).".
SEC. 352. ANTI-MONEY LAUNDERING PROGRAMS.
(a) In General.--Section 5318(h) of title 31, United States
Code, is amended to read as follows:
"(h) Anti-money Laundering Programs.--
"(1) In general.--In order to guard against money
laundering through financial institutions, each financial
institution shall establish anti-money laundering programs,
including, at a minimum--
"(A) the development of internal policies, procedures, and
controls;
"(B) the designation of a compliance officer;
"(C) an ongoing employee training program; and
"(D) an independent audit function to test programs.
"(2) Regulations.--The Secretary of the Treasury, after
consultation with the appropriate Federal functional
regulator (as defined in section 509 of the Gramm-Leach-
Bliley Act), may prescribe minimum standards for programs
established under paragraph (1), and may exempt from the
application of
[[Page H7174]]
those standards any financial institution that is not subject
to the provisions of the rules contained in part 103 of title
31, of the Code of Federal Regulations, or any successor rule
thereto, for so long as such financial institution is not
subject to the provisions of such rules.".
(b) Effective Date.--The amendment made by subsection (a)
shall take effect at the end of the 180-day period beginning
on the date of enactment of this Act.
(c) Date of Application of Regulations; Factors to Be Taken
Into Account.--Before the end of the 180-day period beginning
on the date of enactment of this Act, the Secretary shall
prescribe regulations that consider the extent to which the
requirements imposed under this section are commensurate with
the size, location, and activities of the financial
institutions to which such regulations apply.
SEC. 353. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING
ORDERS AND CERTAIN RECORDKEEPING REQUIREMENTS,
AND LENGTHENING EFFECTIVE PERIOD OF GEOGRAPHIC
TARGETING ORDERS.
(a) Civil Penalty for Violation of Targeting Order.--
Section 5321(a)(1) of title 31, United States Code, is
amended--
(1) by inserting "or order issued" after "subchapter or
a regulation prescribed"; and
(2) by inserting ", or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508," after "sections
5314 and 5315)".
(b) Criminal Penalties for Violation of Targeting Order.--
Section 5322 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) by inserting "or order issued" after "willfully
violating this subchapter or a regulation prescribed"; and
(B) by inserting ", or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508," after "under
section 5315 or 5324)"; and
(2) in subsection (b)--
(A) by inserting "or order issued" after "willfully
violating this subchapter or a regulation prescribed"; and
(B) by inserting "or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance
Act or section 123 of Public Law 91-508," after "under
section 5315 or 5324),".
(c) Structuring Transactions To Evade Targeting Order or
Certain Recordkeeping Requirements.--Section 5324(a) of title
31, United States Code, is amended--
(1) by inserting a comma after "shall";
(2) by striking "section--" and inserting "section, the
reporting or recordkeeping requirements imposed by any order
issued under section 5326, or the recordkeeping requirements
imposed by any regulation prescribed under section 21 of the
Federal Deposit Insurance Act or section 123 of Public Law
91-508--";
(3) in paragraph (1), by inserting ", to file a report or
to maintain a record required by an order issued under
section 5326, or to maintain a record required pursuant to
any regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-508"
after "regulation prescribed under any such section"; and
(4) in paragraph (2), by inserting ", to file a report or
to maintain a record required by any order issued under
section 5326, or to maintain a record required pursuant to
any regulation prescribed under section 5326, or to maintain
a record required pursuant to any regulation prescribed under
section 21 of the Federal Deposit Insurance Act or section
123 of Public Law 91-508," after "regulation prescribed
under any such section".
(d) Lengthening Effective Period of Geographic Targeting
Orders.--Section 5326(d) of title 31, United States Code, is
amended by striking "more than 60" and inserting "more
than 180".
SEC. 354. ANTI-MONEY LAUNDERING STRATEGY.
Section 5341(b) of title 31, United States Code, is amended
by adding at the end the following:
"(12) Data regarding funding of terrorism.--Data
concerning money laundering efforts related to the funding of
acts of international terrorism, and efforts directed at the
prevention, detection, and prosecution of such funding.".
SEC. 355. AUTHORIZATION TO INCLUDE SUSPICIONS OF ILLEGAL
ACTIVITY IN WRITTEN EMPLOYMENT REFERENCES.
Section 18 of the Federal Deposit Insurance Act (12 U.S.C.
1828) is amended by adding at the end the following:
"(w) Written Employment References May Contain Suspicions
of Involvement in Illegal Activity.--
"(1) Authority to disclose information.--Notwithstanding
any other provision of law, any insured depository
institution, and any director, officer, employee, or agent of
such institution, may disclose in any written employment
reference relating to a current or former institution-
affiliated party of such institution which is provided to
another insured depository institution in response to a
request from such other institution, information concerning
the possible involvement of such institution-affiliated party
in potentially unlawful activity.
"(2) Information not required.--Nothing in paragraph (1)
shall be construed, by itself, to create any affirmative duty
to include any information described in paragraph (1) in any
employment reference referred to in paragraph (1).
"(3) Malicious intent.--Notwithstanding any other
provision of this subsection, voluntary disclosure made by an
insured depository institution, and any director, officer,
employee, or agent of such institution under this subsection
concerning potentially unlawful activity that is made with
malicious intent, shall not be shielded from liability from
the person identified in the disclosure.
"(4) Definition.--For purposes of this subsection, the
term `insured depository institution' includes any uninsured
branch or agency of a foreign bank.".
SEC. 356. REPORTING OF SUSPICIOUS ACTIVITIES BY SECURITIES
BROKERS AND DEALERS; INVESTMENT COMPANY STUDY.
(a) Deadline for Suspicious Activity Reporting Requirements
for Registered Brokers and Dealers.--The Secretary, after
consultation with the Securities and Exchange Commission and
the Board of Governors of the Federal Reserve System, shall
publish proposed regulations in the Federal Register before
January 1, 2002, requiring brokers and dealers registered
with the Securities and Exchange Commission under the
Securities Exchange Act of 1934 to submit suspicious activity
reports under section 5318(g) of title 31, United States
Code. Such regulations shall be published in final form not
later than July 1, 2002.
(b) Suspicious Activity Reporting Requirements For Futures
Commission Merchants, Commodity Trading Advisors, and
Commodity Pool Operators.--The Secretary, in consultation
with the Commodity Futures Trading Commission, may prescribe
regulations requiring futures commission merchants, commodity
trading advisors, and commodity pool operators registered
under the Commodity Exchange Act to submit suspicious
activity reports under section 5318(g) of title 31, United
States Code.
(c) Report on Investment Companies.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary, the Board of Governors
of the Federal Reserve System, and the Securities and
Exchange Commission shall jointly submit a report to the
Congress on recommendations for effective regulations to
apply the requirements of subchapter II of chapter 53 of
title 31, United States Code, to investment companies
pursuant to section 5312(a)(2)(I) of title 31, United States
Code.
(2) Definition.--For purposes of this subsection, the term
"investment company"--
(A) has the same meaning as in section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a-3); and
(B) includes any person that, but for the exceptions
provided for in paragraph (1) or (7) of section 3(c) of the
Investment Company Act of 1940 (15 U.S.C. 80a-3(c)), would be
an investment company.
(3) Additional recommendations.--The report required by
paragraph (1) may make different recommendations for
different types of entities covered by this subsection.
(4) Beneficial ownership of personal holding companies.--
The report described in paragraph (1) shall also include
recommendations as to whether the Secretary should promulgate
regulations to treat any corporation or business or other
grantor trust whose assets are predominantly securities, bank
certificates of deposit, or other securities or investment
instruments (other than such as relate to operating
subsidiaries of such corporation or trust) and that has 5 or
fewer common shareholders or holders of beneficial or other
equity interest, as a financial institution within the
meaning of that phrase in section 5312(a)(2)(I) and whether
to require such corporations or trusts to disclose their
beneficial owners when opening accounts or initiating funds
transfers at any domestic financial institution.
SEC. 357. SPECIAL REPORT ON ADMINISTRATION OF BANK SECRECY
PROVISIONS.
(a) Report Required.--Not later than 6 months after the
date of enactment of this Act, the Secretary shall submit a
report to the Congress relating to the role of the Internal
Revenue Service in the administration of subchapter II of
chapter 53 of title 31, United States Code (commonly known as
the "Bank Secrecy Act").
(b) Contents.--The report required by subsection (a)--
(1) shall specifically address, and contain recommendations
concerning--
(A) whether it is advisable to shift the processing of
information reporting to the Department of the Treasury under
the Bank Secrecy Act provisions to facilities other than
those managed by the Internal Revenue Service; and
(B) whether it remains reasonable and efficient, in light
of the objective of both anti-money-laundering programs and
Federal tax administration, for the Internal Revenue Service
to retain authority and responsibility for audit and
examination of the compliance of money services businesses
and gaming institutions with those Bank Secrecy Act
provisions; and
(2) shall, if the Secretary determines that the information
processing responsibility or the audit and examination
responsibility of the Internal Revenue Service, or both, with
respect to those Bank Secrecy Act provisions should be
transferred to other agencies, include the specific
recommendations of the Secretary regarding the agency or
agencies to which any such function should be transferred,
complete with a budgetary and resources plan for
expeditiously accomplishing the transfer.
[[Page H7175]]
SEC. 358. BANK SECRECY PROVISIONS AND ACTIVITIES OF UNITED
STATES INTELLIGENCE AGENCIES TO FIGHT
INTERNATIONAL TERRORISM.
(a) Amendment Relating to the Purposes of Chapter 53 of
Title 31, United States Code.--Section 5311 of title 31,
United States Code, is amended by inserting before the period
at the end the following: ", or in the conduct of
intelligence or counterintelligence activities, including
analysis, to protect against international terrorism".
(b) Amendment Relating to Reporting of Suspicious
Activities.--Section 5318(g)(4)(B) of title 31, United States
Code, is amended by striking "or supervisory agency" and
inserting ", supervisory agency, or United States
intelligence agency for use in the conduct of intelligence or
counterintelligence activities, including analysis, to
protect against international terrorism".
(c) Amendment Relating to Availability of Reports.--Section
5319 of title 31, United States Code, is amended to read as
follows:
"Sec. 5319. Availability of reports
"The Secretary of the Treasury shall make information in a
report filed under this subchapter available to an agency,
including any State financial institutions supervisory
agency, United States intelligence agency or self-regulatory
organization registered with the Securities and Exchange
Commission or the Commodity Futures Trading Commission, upon
request of the head of the agency or organization. The report
shall be available for a purpose that is consistent with this
subchapter. The Secretary may only require reports on the use
of such information by any State financial institutions
supervisory agency for other than supervisory purposes or by
United States intelligence agencies. However, a report and
records of reports are exempt from disclosure under section
552 of title 5.".
(d) Amendment Relating to the Purposes of the Bank Secrecy
Act Provisions.--Section 21(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1829b(a)) is amended to read as
follows:
"(a) Congressional Findings and Declaration of Purpose.--
"(1) Findings.--Congress finds that--
"(A) adequate records maintained by insured depository
institutions have a high degree of usefulness in criminal,
tax, and regulatory investigations or proceedings, and that,
given the threat posed to the security of the Nation on and
after the terrorist attacks against the United States on
September 11, 2001, such records may also have a high degree
of usefulness in the conduct of intelligence or
counterintelligence activities, including analysis, to
protect against domestic and international terrorism; and
"(B) microfilm or other reproductions and other records
made by insured depository institutions of checks, as well as
records kept by such institutions, of the identity of persons
maintaining or authorized to act with respect to accounts
therein, have been of particular value in proceedings
described in subparagraph (A).
"(2) Purpose.--It is the purpose of this section to
require the maintenance of appropriate types of records by
insured depository institutions in the United States where
such records have a high degree of usefulness in criminal,
tax, or regulatory investigations or proceedings, recognizes
that, given the threat posed to the security of the Nation on
and after the terrorist attacks against the United States on
September 11, 2001, such records may also have a high degree
of usefulness in the conduct of intelligence or
counterintelligence activities, including analysis, to
protect against international terrorism.".
(e) Amendment Relating to the Purposes of the Bank Secrecy
Act.--Section 123(a) of Public Law 91-508 (12 U.S.C. 1953(a))
is amended to read as follows:
"(a) Regulations.--If the Secretary determines that the
maintenance of appropriate records and procedures by any
uninsured bank or uninsured institution, or any person
engaging in the business of carrying on in the United States
any of the functions referred to in subsection (b), has a
high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings, and that, given the threat
posed to the security of the Nation on and after the
terrorist attacks against the United States on September 11,
2001, such records may also have a high degree of usefulness
in the conduct of intelligence or counterintelligence
activities, including analysis, to protect against
international terrorism, he may by regulation require such
bank, institution, or person.".
(f) Amendments to the Right to Financial Privacy Act.--The
Right to Financial Privacy Act of 1978 is amended--
(1) in section 1112(a) (12 U.S.C. 3412(a)), by inserting
", or intelligence or counterintelligence activity,
investigation or analysis related to international
terrorism" after "legitimate law enforcement inquiry";
(2) in section 1114(a)(1) (12 U.S.C. 3414(a)(1))--
(A) in subparagraph (A), by striking "or" at the end;
(B) in subparagraph (B), by striking the period at the end
and inserting "; or"; and
(C) by adding at the end the following:
"(C) a Government authority authorized to conduct
investigations of, or intelligence or counterintelligence
analyses related to, international terrorism for the purpose
of conducting such investigations or analyses."; and
(3) in section 1120(a)(2) (12 U.S.C. 3420(a)(2)), by
inserting ", or for a purpose authorized by section
1112(a)" before the semicolon at the end.
(g) Amendment to the Fair Credit Reporting Act.--
(1) In general.--The Fair Credit Reporting Act (15 U.S.C.
1681 et seq.) is amended--
(A) by redesignating the second of the 2 sections
designated as section 624 (15 U.S.C. 1681u) (relating to
disclosure to FBI for counterintelligence purposes) as
section 625; and
(B) by adding at the end the following new section:
"Sec. 626. Disclosures to governmental agencies for
counterterrorism purposes
"(a) Disclosure.--Notwithstanding section 604 or any other
provision of this title, a consumer reporting agency shall
furnish a consumer report of a consumer and all other
information in a consumer's file to a government agency
authorized to conduct investigations of, or intelligence or
counterintelligence activities or analysis related to,
international terrorism when presented with a written
certification by such government agency that such information
is necessary for the agency's conduct or such investigation,
activity or analysis.
"(b) Form of Certification.--The certification described
in subsection (a) shall be signed by a supervisory official
designated by the head of a Federal agency or an officer of a
Federal agency whose appointment to office is required to be
made by the President, by and with the advice and consent of
the Senate.
"(c) Confidentiality.--No consumer reporting agency, or
officer, employee, or agent of such consumer reporting
agency, shall disclose to any person, or specify in any
consumer report, that a government agency has sought or
obtained access to information under subsection (a).
"(d) Rule of Construction.--Nothing in section 625 shall
be construed to limit the authority of the Director of the
Federal Bureau of Investigation under this section.
"(e) Safe Harbor.--Notwithstanding any other provision of
this title, any consumer reporting agency or agent or
employee thereof making disclosure of consumer reports or
other information pursuant to this section in good-faith
reliance upon a certification of a governmental agency
pursuant to the provisions of this section shall not be
liable to any person for such disclosure under this
subchapter, the constitution of any State, or any law or
regulation of any State or any political subdivision of any
State.".
(2) Clerical amendments.--The table of sections for the
Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is
amended--
(A) by redesignating the second of the 2 items designated
as section 624 as section 625; and
(B) by inserting after the item relating to section 625 (as
so redesignated) the following new item:
"626. Disclosures to governmental agencies for counterterrorism
purposes.".
(h) Application of Amendments.--The amendments made by this
section shall apply with respect to reports filed or records
maintained on, before, or after the date of enactment of this
Act.
SEC. 359. REPORTING OF SUSPICIOUS ACTIVITIES BY UNDERGROUND
BANKING SYSTEMS.
(a) Definition for Subchapter.--Section 5312(a)(2)(R) of
title 31, United States Code, is amended to read as follows:
"(R) a licensed sender of money or any other person who
engages as a business in the transmission of funds, including
any person who engages as a business in an informal money
transfer system or any network of people who engage as a
business in facilitating the transfer of money domestically
or internationally outside of the conventional financial
institutions system;".
(b) Money Transmitting Business.--Section 5330(d)(1)(A) of
title 31, United States Code, is amended by inserting before
the semicolon the following: "or any other person who
engages as a business in the transmission of funds, including
any person who engages as a business in an informal money
transfer system or any network of people who engage as a
business in facilitating the transfer of money domestically
or internationally outside of the conventional financial
institutions system;".
(c) Applicability of Rules.--Section 5318 of title 31,
United States Code, as amended by this title, is amended by
adding at the end the following:
"(l) Applicability of Rules.--Any rules promulgated
pursuant to the authority contained in section 21 of the
Federal Deposit Insurance Act (12 U.S.C. 1829b) shall apply,
in addition to any other financial institution to which such
rules apply, to any person that engages as a business in the
transmission of funds, including any person who engages as a
business in an informal money transfer system or any network
of people who engage as a business in facilitating the
transfer of money domestically or internationally outside of
the conventional financial institutions system.".
(d) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Treasury shall
report to Congress on the need for any additional legislation
relating to persons who engage as a business in an informal
money transfer system or any network of people who engage as
a business in facilitating the transfer of money domestically
or internationally outside of the conventional financial
institutions system, counter money laundering and
[[Page H7176]]
regulatory controls relating to underground money movement
and banking systems, including whether the threshold for the
filing of suspicious activity reports under section 5318(g)
of title 31, United States Code should be lowered in the case
of such systems.
SEC. 360. USE OF AUTHORITY OF UNITED STATES EXECUTIVE
DIRECTORS.
(a) Action by the President.--If the President determines
that a particular foreign country has taken or has committed
to take actions that contribute to efforts of the United
States to respond to, deter, or prevent acts of international
terrorism, the Secretary may, consistent with other
applicable provisions of law, instruct the United States
Executive Director of each international financial
institution to use the voice and vote of the Executive
Director to support any loan or other utilization of the
funds of respective institutions for such country, or any
public or private entity within such country.
(b) Use of Voice and Vote.--The Secretary may instruct the
United States Executive Director of each international
financial institution to aggressively use the voice and vote
of the Executive Director to require an auditing of
disbursements at such institutions to ensure that no funds
are paid to persons who commit, threaten to commit, or
support terrorism.
(c) Definition.--For purposes of this section, the term
"international financial institution" means an institution
described in section 1701(c)(2) of the International
Financial Institutions Act (22 U.S.C. 262r(c)(2)).
SEC. 361. FINANCIAL CRIMES ENFORCEMENT NETWORK.
(a) In General.--Subchapter I of chapter 3 of title 31,
United States Code, is amended--
(1) by redesignating section 310 as section 311; and
(2) by inserting after section 309 the following new
section:
"Sec. 310. Financial Crimes Enforcement Network
"(a) In General.--The Financial Crimes Enforcement Network
established by order of the Secretary of the Treasury
(Treasury Order Numbered 105-08, in this section referred to
as `FinCEN') on April 25, 1990, shall be a bureau in the
Department of the Treasury.
"(b) Director.--
"(1) Appointment.--The head of FinCEN shall be the
Director, who shall be appointed by the Secretary of the
Treasury.
"(2) Duties and powers.--The duties and powers of the
Director are as follows:
"(A) Advise and make recommendations on matters relating
to financial intelligence, financial criminal activities, and
other financial activities to the Under Secretary of the
Treasury for Enforcement.
"(B) Maintain a government-wide data access service, with
access, in accordance with applicable legal requirements, to
the following:
"(i) Information collected by the Department of the
Treasury, including report information filed under subchapter
II of chapter 53 of this title (such as reports on cash
transactions, foreign financial agency transactions and
relationships, foreign currency transactions, exporting and
importing monetary instruments, and suspicious activities),
chapter 2 of title I of Public Law 91-508, and section 21 of
the Federal Deposit Insurance Act.
"(ii) Information regarding national and international
currency flows.
"(iii) Other records and data maintained by other Federal,
State, local, and foreign agencies, including financial and
other records developed in specific cases.
"(iv) Other privately and publicly available information.
"(C) Analyze and disseminate the available data in
accordance with applicable legal requirements and policies
and guidelines established by the Secretary of the Treasury
and the Under Secretary of the Treasury for Enforcement to--
"(i) identify possible criminal activity to appropriate
Federal, State, local, and foreign law enforcement agencies;
"(ii) support ongoing criminal financial investigations
and prosecutions and related proceedings, including civil and
criminal tax and forfeiture proceedings;
"(iii) identify possible instances of noncompliance with
subchapter II of chapter 53 of this title, chapter 2 of title
I of Public Law 91-508, and section 21 of the Federal Deposit
Insurance Act to Federal agencies with statutory
responsibility for enforcing compliance with such provisions
and other appropriate Federal regulatory agencies;
"(iv) evaluate and recommend possible uses of special
currency reporting requirements under section 5326;
"(v) determine emerging trends and methods in money
laundering and other financial crimes;
"(vi) support the conduct of intelligence or
counterintelligence activities, including analysis, to
protect against international terrorism; and
"(vii) support government initiatives against money
laundering.
"(D) Establish and maintain a financial crimes
communications center to furnish law enforcement authorities
with intelligence information related to emerging or ongoing
investigations and undercover operations.
"(E) Furnish research, analytical, and informational
services to financial institutions, appropriate Federal
regulatory agencies with regard to financial institutions,
and appropriate Federal, State, local, and foreign law
enforcement authorities, in accordance with policies and
guidelines established by the Secretary of the Treasury or
the Under Secretary of the Treasury for Enforcement, in the
interest of detection, prevention, and prosecution of
terrorism, organized crime, money laundering, and other
financial crimes.
"(F) Assist Federal, State, local, and foreign law
enforcement and regulatory authorities in combatting the use
of informal, nonbank networks and payment and barter system
mechanisms that permit the transfer of funds or the
equivalent of funds without records and without compliance
with criminal and tax laws.
"(G) Provide computer and data support and data analysis
to the Secretary of the Treasury for tracking and controlling
foreign assets.
"(H) Coordinate with financial intelligence units in other
countries on anti-terrorism and anti-money laundering
initiatives, and similar efforts.
"(I) Administer the requirements of subchapter II of
chapter 53 of this title, chapter 2 of title I of Public Law
91-508, and section 21 of the Federal Deposit Insurance Act,
to the extent delegated such authority by the Secretary of
the Treasury.
"(J) Such other duties and powers as the Secretary of the
Treasury may delegate or prescribe.
"(c) Requirements Relating to Maintenance and Use of Data
Banks.--The Secretary of the Treasury shall establish and
maintain operating procedures with respect to the government-
wide data access service and the financial crimes
communications center maintained by FinCEN which provide--
"(1) for the coordinated and efficient transmittal of
information to, entry of information into, and withdrawal of
information from, the data maintenance system maintained by
the Network, including--
"(A) the submission of reports through the Internet or
other secure network, whenever possible;
"(B) the cataloguing of information in a manner that
facilitates rapid retrieval by law enforcement personnel of
meaningful data; and
"(C) a procedure that provides for a prompt initial review
of suspicious activity reports and other reports, or such
other means as the Secretary may provide, to identify
information that warrants immediate action; and
"(2) in accordance with section 552a of title 5 and the
Right to Financial Privacy Act of 1978, appropriate standards
and guidelines for determining--
"(A) who is to be given access to the information
maintained by the Network;
"(B) what limits are to be imposed on the use of such
information; and
"(C) how information about activities or relationships
which involve or are closely associated with the exercise of
constitutional rights is to be screened out of the data
maintenance system.
"(d) Authorization of Appropriations.--There are
authorized to be appropriated for FinCEN such sums as may be
necessary for fiscal years 2002, 2003, 2004, and 2005.".
(b) Compliance With Reporting Requirements.--The Secretary
of the Treasury shall study methods for improving compliance
with the reporting requirements established in section 5314
of title 31, United States Code, and shall submit a report on
such study to the Congress by the end of the 6-month period
beginning on the date of enactment of this Act and each 1-
year period thereafter. The initial report shall include
historical data on compliance with such reporting
requirements.
(c) Clerical Amendment.--The table of sections for
subchapter I of chapter 3 of title 31, United States Code, is
amended--
(1) by redesignating the item relating to section 310 as
section 311; and
(2) by inserting after the item relating to section 309 the
following new item:
"310. Financial Crimes Enforcement Network.".
SEC. 362. ESTABLISHMENT OF HIGHLY SECURE NETWORK.
(a) In General.--The Secretary shall establish a highly
secure network in the Financial Crimes Enforcement Network
that--
(1) allows financial institutions to file reports required
under subchapter II or III of chapter 53 of title 31, United
States Code, chapter 2 of Public Law 91-508, or section 21 of
the Federal Deposit Insurance Act through the secure network;
and
(2) provides financial institutions with alerts and other
information regarding suspicious activities that warrant
immediate and enhanced scrutiny.
(b) Expedited Development.--The Secretary shall take such
action as may be necessary to ensure that the secure network
required under subsection (a) is fully operational before the
end of the 9-month period beginning on the date of enactment
of this Act.
SEC. 363. INCREASE IN CIVIL AND CRIMINAL PENALTIES FOR MONEY
LAUNDERING.
(a) Civil Penalties.--Section 5321(a) of title 31, United
States Code, is amended by adding at the end the following:
"(7) Penalties for international counter money laundering
violations.--The Secretary may impose a civil money penalty
in an amount equal to not less than 2 times the amount of the
transaction, but not more than $1,000,000, on any financial
institution or agency that violates any provision of
subsection (i) or (j) of section 5318 or
[[Page H7177]]
any special measures imposed under section 5318A.".
(b) Criminal Penalties.--Section 5322 of title 31, United
States Code, is amended by adding at the end the following:
"(d) A financial institution or agency that violates any
provision of subsection (i) or (j) of section 5318, or any
special measures imposed under section 5318A, or any
regulation prescribed under subsection (i) or (j) of section
5318 or section 5318A, shall be fined in an amount equal to
not less than 2 times the amount of the transaction, but not
more than $1,000,000.".
SEC. 364. UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE
FACILITIES.
Section 11 of the Federal Reserve Act (12 U.S.C. 248) is
amended by adding at the end the following:
"(q) Uniform Protection Authority for Federal Reserve
Facilities.--
"(1) Notwithstanding any other provision of law, to
authorize personnel to act as law enforcement officers to
protect and safeguard the premises, grounds, property,
personnel, including members of the Board, of the Board, or
any Federal reserve bank, and operations conducted by or on
behalf of the Board or a reserve bank.
"(2) The Board may, subject to the regulations prescribed
under paragraph (5), delegate authority to a Federal reserve
bank to authorize personnel to act as law enforcement
officers to protect and safeguard the bank's premises,
grounds, property, personnel, and operations conducted by or
on behalf of the bank.
"(3) Law enforcement officers designated or authorized by
the Board or a reserve bank under paragraph (1) or (2) are
authorized while on duty to carry firearms and make arrests
without warrants for any offense against the United States
committed in their presence, or for any felony cognizable
under the laws of the United States committed or being
committed within the buildings and grounds of the Board or a
reserve bank if they have reasonable grounds to believe that
the person to be arrested has committed or is committing such
a felony. Such officers shall have access to law enforcement
information that may be necessary for the protection of the
property or personnel of the Board or a reserve bank.
"(4) For purposes of this subsection, the term `law
enforcement officers' means personnel who have successfully
completed law enforcement training and are authorized to
carry firearms and make arrests pursuant to this subsection.
"(5) The law enforcement authorities provided for in this
subsection may be exercised only pursuant to regulations
prescribed by the Board and approved by the Attorney
General.".
SEC. 365. REPORTS RELATING TO COINS AND CURRENCY RECEIVED IN
NONFINANCIAL TRADE OR BUSINESS.
(a) Reports Required.--Subchapter II of chapter 53 of title
31, United States Code, is amended by adding at the end the
following new section:
"Sec. 5331. Reports relating to coins and currency received
in nonfinancial trade or business
"(a) Coin and Currency Receipts of More Than $10,000.--Any
person--
"(1) who is engaged in a trade or business; and
"(2) who, in the course of such trade or business,
receives more than $10,000 in coins or currency in 1
transaction (or 2 or more related transactions),
shall file a report described in subsection (b) with respect
to such transaction (or related transactions) with the
Financial Crimes Enforcement Network at such time and in such
manner as the Secretary may, by regulation, prescribe.
"(b) Form and Manner of Reports.--A report is described in
this subsection if such report--
"(1) is in such form as the Secretary may prescribe;
"(2) contains--
"(A) the name and address, and such other identification
information as the Secretary may require, of the person from
whom the coins or currency was received;
"(B) the amount of coins or currency received;
"(C) the date and nature of the transaction; and
"(D) such other information, including the identification
of the person filing the report, as the Secretary may
prescribe.
"(c) Exceptions.--
"(1) Amounts received by financial institutions.--
Subsection (a) shall not apply to amounts received in a
transaction reported under section 5313 and regulations
prescribed under such section.
"(2) Transactions occurring outside the united states.--
Except to the extent provided in regulations prescribed by
the Secretary, subsection (a) shall not apply to any
transaction if the entire transaction occurs outside the
United States.
"(d) Currency Includes Foreign Currency and Certain
Monetary Instruments.--
"(1) In general.--For purposes of this section, the term
`currency' includes--
"(A) foreign currency; and
"(B) to the extent provided in regulations prescribed by
the Secretary, any monetary instrument (whether or not in
bearer form) with a face amount of not more than $10,000.
"(2) Scope of application.--Paragraph (1)(B) shall not
apply to any check drawn on the account of the writer in a
financial institution referred to in subparagraph (A), (B),
(C), (D), (E), (F), (G), (J), (K), (R), or (S) of section
5312(a)(2).".
(b) Prohibition on Structuring Transactions.--
(1) In general.--Section 5324 of title 31, United States
Code, is amended--
(A) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(B) by inserting after subsection (a) the following new
subsection:
"(b) Domestic Coin and Currency Transactions Involving
Nonfinancial Trades or Businesses.--No person shall, for the
purpose of evading the report requirements of section 5333 or
any regulation prescribed under such section--
"(1) cause or attempt to cause a nonfinancial trade or
business to fail to file a report required under section 5333
or any regulation prescribed under such section;
"(2) cause or attempt to cause a nonfinancial trade or
business to file a report required under section 5333 or any
regulation prescribed under such section that contains a
material omission or misstatement of fact; or
"(3) structure or assist in structuring, or attempt to
structure or assist in structuring, any transaction with 1 or
more nonfinancial trades or businesses.'.
(2) Technical and conforming amendments.--
(A) The heading for subsection (a) of section 5324 of title
31, United States Code, is amended by inserting "Involving
Financial Institutions" after "Transactions'.
(B) Section 5317(c) of title 31, United States Code, is
amended by striking "5324(b)" and inserting "5324(c)".
(c) Definition of Nonfinancial Trade or Business.--
(1) In general.--Section 5312(a) of title 31, United States
Code, is amended--
(A) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(B) by inserting after paragraph (3) the following new
paragraph:
"(4) Nonfinancial trade or business.--The term
`nonfinancial trade or business' means any trade or business
other than a financial institution that is subject to the
reporting requirements of section 5313 and regulations
prescribed under such section.".
(2) Technical and conforming amendments.--
(A) Section 5312(a)(3)(C) of title 31, United States Code,
is amended by striking "section 5316," and inserting
"sections 5333 and 5316,".
(B) Subsections (a) through (f) of section 5318 of title
31, United States Code, and sections 5321, 5326, and 5328 of
such title are each amended--
(i) by inserting "or nonfinancial trade or business"
after "financial institution" each place such term appears;
and
(ii) by inserting "or nonfinancial trades or businesses"
after "financial institutions" each place such term
appears.
(c) Clerical Amendment.--The table of sections for chapter
53 of title 31, United States Code, is amended by inserting
after the item relating to section 5332 (as added by section
112 of this title) the following new item:
"5331. Reports relating to coins and currency received in nonfinancial
trade or business.".
(f) Regulations.--Regulations which the Secretary
determines are necessary to implement this section shall be
published in final form before the end of the 6-month period
beginning on the date of enactment of this Act.
SEC. 366. EFFICIENT USE OF CURRENCY TRANSACTION REPORT
SYSTEM.
(a) Findings.--The Congress finds the following:
(1) The Congress established the currency transaction
reporting requirements in 1970 because the Congress found
then that such reports have a high degree of usefulness in
criminal, tax, and regulatory investigations and proceedings
and the usefulness of such reports has only increased in the
years since the requirements were established.
(2) In 1994, in response to reports and testimony that
excess amounts of currency transaction reports were
interfering with effective law enforcement, the Congress
reformed the currency transaction report exemption
requirements to provide--
(A) mandatory exemptions for certain reports that had
little usefulness for law enforcement, such as cash transfers
between depository institutions and cash deposits from
government agencies; and
(B) discretionary authority for the Secretary of the
Treasury to provide exemptions, subject to criteria and
guidelines established by the Secretary, for financial
institutions with regard to regular business customers that
maintain accounts at an institution into which frequent cash
deposits are made.
(3) Today there is evidence that some financial
institutions are not utilizing the exemption system, or are
filing reports even if there is an exemption in effect, with
the result that the volume of currency transaction reports is
once again interfering with effective law enforcement.
(b) Study and Report.--
(1) Study required.--The Secretary shall conduct a study
of--
(A) the possible expansion of the statutory exemption
system in effect under section 5313 of title 31, United
States Code; and
(B) methods for improving financial institution utilization
of the statutory exemption provisions as a way of reducing
the submission of currency transaction reports that
[[Page H7178]]
have little or no value for law enforcement purposes,
including improvements in the systems in effect at financial
institutions for regular review of the exemption procedures
used at the institution and the training of personnel in its
effective use.
(2) Report required.--The Secretary of the Treasury shall
submit a report to the Congress before the end of the 1-year
period beginning on the date of enactment of this Act
containing the findings and conclusions of the Secretary with
regard to the study required under subsection (a), and such
recommendations for legislative or administrative action as
the Secretary determines to be appropriate.
Subtitle C--Currency Crimes and Protection
SEC. 371. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED
STATES.
(a) Findings.--The Congress finds the following:
(1) Effective enforcement of the currency reporting
requirements of subchapter II of chapter 53 of title 31,
United States Code, and the regulations prescribed under such
subchapter, has forced drug dealers and other criminals
engaged in cash-based businesses to avoid using traditional
financial institutions.
(2) In their effort to avoid using traditional financial
institutions, drug dealers and other criminals are forced to
move large quantities of currency in bulk form to and through
the airports, border crossings, and other ports of entry
where the currency can be smuggled out of the United States
and placed in a foreign financial institution or sold on the
black market.
(3) The transportation and smuggling of cash in bulk form
may now be the most common form of money laundering, and the
movement of large sums of cash is one of the most reliable
warning signs of drug trafficking, terrorism, money
laundering, racketeering, tax evasion and similar crimes.
(4) The intentional transportation into or out of the
United States of large amounts of currency or monetary
instruments, in a manner designed to circumvent the mandatory
reporting provisions of subchapter II of chapter 53 of title
31, United States Code,, is the equivalent of, and creates
the same harm as, the smuggling of goods.
(5) The arrest and prosecution of bulk cash smugglers are
important parts of law enforcement's effort to stop the
laundering of criminal proceeds, but the couriers who attempt
to smuggle the cash out of the United States are typically
low-level employees of large criminal organizations, and thus
are easily replaced. Accordingly, only the confiscation of
the smuggled bulk cash can effectively break the cycle of
criminal activity of which the laundering of the bulk cash is
a critical part.
(6) The current penalties for violations of the currency
reporting requirements are insufficient to provide a
deterrent to the laundering of criminal proceeds. In
particular, in cases where the only criminal violation under
current law is a reporting offense, the law does not
adequately provide for the confiscation of smuggled currency.
In contrast, if the smuggling of bulk cash were itself an
offense, the cash could be confiscated as the corpus delicti
of the smuggling offense.
(b) Purposes.--The purposes of this section are--
(1) to make the act of smuggling bulk cash itself a
criminal offense;
(2) to authorize forfeiture of any cash or instruments of
the smuggling offense; and
(3) to emphasize the seriousness of the act of bulk cash
smuggling.
(c) Enactment of Bulk Cash Smuggling Offense.--Subchapter
II of chapter 53 of title 31, United States Code, is amended
by adding at the end the following:
"Sec. 5332. Bulk cash smuggling into or out of the United
States
"(a) Criminal Offense.--
"(1) In general.--Whoever, with the intent to evade a
currency reporting requirement under section 5316, knowingly
conceals more than $10,000 in currency or other monetary
instruments on the person of such individual or in any
conveyance, article of luggage, merchandise, or other
container, and transports or transfers or attempts to
transport or transfer such currency or monetary instruments
from a place within the United States to a place outside of
the United States, or from a place outside the United States
to a place within the United States, shall be guilty of a
currency smuggling offense and subject to punishment pursuant
to subsection (b).
"(2) Concealment on person.--For purposes of this section,
the concealment of currency on the person of any individual
includes concealment in any article of clothing worn by the
individual or in any luggage, backpack, or other container
worn or carried by such individual.
"(b) Penalty.--
"(1) Term of imprisonment.--A person convicted of a
currency smuggling offense under subsection (a), or a
conspiracy to commit such offense, shall be imprisoned for
not more than 5 years.
"(2) Forfeiture.--In addition, the court, in imposing
sentence under paragraph (1), shall order that the defendant
forfeit to the United States, any property, real or personal,
involved in the offense, and any property traceable to such
property, subject to subsection (d) of this section.
"(3) Procedure.--The seizure, restraint, and forfeiture of
property under this section shall be governed by section 413
of the Controlled Substances Act.
"(4) Personal money judgment.--If the property subject to
forfeiture under paragraph (2) is unavailable, and the
defendant has insufficient substitute property that may be
forfeited pursuant to section 413(p) of the Controlled
Substances Act, the court shall enter a personal money
judgment against the defendant for the amount that would be
subject to forfeiture.
"(c) Civil Forfeiture.--
"(1) In general.--Any property involved in a violation of
subsection (a), or a conspiracy to commit such violation, and
any property traceable to such violation or conspiracy, may
be seized and, subject to subsection (d) of this section,
forfeited to the United States.
"(2) Procedure.--The seizure and forfeiture shall be
governed by the procedures governing civil forfeitures in
money laundering cases pursuant to section 981(a)(1)(A) of
title 18, United States Code.
"(3) Treatment of certain property as involved in the
offense.--For purposes of this subsection and subsection (b),
any currency or other monetary instrument that is concealed
or intended to be concealed in violation of subsection (a) or
a conspiracy to commit such violation, any article,
container, or conveyance used, or intended to be used, to
conceal or transport the currency or other monetary
instrument, and any other property used, or intended to be
used, to facilitate the offense, shall be considered property
involved in the offense.".
(c) Clerical Amendment.--The table of sections for
subchapter II of chapter 53 of title 31, United States Code,
is amended by inserting after the item relating to section
5331, as added by this Act, the following new item:
"5332. Bulk cash smuggling into or out of the United States.".
SEC. 372. FORFEITURE IN CURRENCY REPORTING CASES.
(a) In General.--Subsection (c) of section 5317 of title
31, United States Code, is amended to read as follows:
"(c) Forfeiture.--
"(1) Criminal forfeiture.--
"(A) In general.--The court in imposing sentence for any
violation of section 5313, 5316, or 5324 of this title, or
any conspiracy to commit such violation, shall order the
defendant to forfeit all property, real or personal, involved
in the offense and any property traceable thereto.
"(B) Procedure.--Forfeitures under this paragraph shall be
governed by the procedures established in section 413 of the
Controlled Substances Act.
"(2) Civil forfeiture.--Any property involved in a
violation of section 5313, 5316, or 5324 of this title, or
any conspiracy to commit any such violation, and any property
traceable to any such violation or conspiracy, may be seized
and forfeited to the United States in accordance with the
procedures governing civil forfeitures in money laundering
cases pursuant to section 981(a)(1)(A) of title 18, United
States Code.".
(b) Conforming Amendments.--
(1) Section 981(a)(1)(A) of title 18, United States Code,
is amended--
(A) by striking "of section 5313(a) or 5324(a) of title
31, or"; and
(B) by striking "However" and all that follows through
the end of the subparagraph.
(2) Section 982(a)(1) of title 18, United States Code, is
amended--
(A) by striking "of section 5313(a), 5316, or 5324 of
title 31, or"; and
(B) by striking "However" and all that follows through
the end of the paragraph.
SEC. 373. ILLEGAL MONEY TRANSMITTING BUSINESSES.
(a) Scienter Requirement for Section 1960 Violation.--
Section 1960 of title 18, United States Code, is amended to
read as follows:
"Sec. 1960. Prohibition of unlicensed money transmitting
businesses
"(a) Whoever knowingly conducts, controls, manages,
supervises, directs, or owns all or part of an unlicensed
money transmitting business, shall be fined in accordance
with this title or imprisoned not more than 5 years, or both.
"(b) As used in this section--
"(1) the term `unlicensed money transmitting business'
means a money transmitting business which affects interstate
or foreign commerce in any manner or degree and--
"(A) is operated without an appropriate money transmitting
license in a State where such operation is punishable as a
misdemeanor or a felony under State law, whether or not the
defendant knew that the operation was required to be licensed
or that the operation was so punishable;
"(B) fails to comply with the money transmitting business
registration requirements under section 5330 of title 31,
United States Code, or regulations prescribed under such
section; or
"(C) otherwise involves the transportation or transmission
of funds that are known to the defendant to have been derived
from a criminal offense or are intended to be used to be used
to promote or support unlawful activity;
"(2) the term `money transmitting' includes transferring
funds on behalf of the public by any and all means including
but not limited to transfers within this country or to
locations abroad by wire, check, draft, facsimile, or
courier; and
"(3) the term `State' means any State of the United
States, the District of Columbia,
[[Page H7179]]
the Northern Mariana Islands, and any commonwealth,
territory, or possession of the United States.".
(b) Seizure of Illegally Transmitted Funds.--Section
981(a)(1)(A) of title 18, United States Code, is amended by
striking "or 1957" and inserting ", 1957 or 1960".
(c) Clerical Amendment.--The table of sections for chapter
95 of title 18, United States Code, is amended in the item
relating to section 1960 by striking "illegal" and
inserting "unlicensed".
SEC. 374. COUNTERFEITING DOMESTIC CURRENCY AND OBLIGATIONS.
(a) Counterfeit Acts Committed Outside the United States.--
Section 470 of title 18, United States Code, is amended--
(1) in paragraph (2), by inserting "analog, digital, or
electronic image," after "plate, stone,"; and
(2) by striking "shall be fined under this title,
imprisoned not more than 20 years, or both" and inserting
"shall be punished as is provided for the like offense
within the United States".
(b) Obligations or securities of the United States.--
Section 471 of title 18, United States Code, is amended by
striking "fifteen years" and inserting "20 years".
(c) Uttering Counterfeit Obligations or Securities.--
Section 472 of title 18, United States Code, is amended by
striking "fifteen years" and inserting "20 years".
(d) Dealing in Counterfeit Obligations or Securities.--
Section 473 of title 18, United States Code, is amended by
striking "ten years" and inserting "20 years".
(e) Plates, Stones, or Analog, Digital, or Electronic
Images For Counterfeiting Obligations or Securities.--
(1) In general.--Section 474(a) of title 18, United States
Code, is amended by inserting after the second paragraph the
following new paragraph:
"Whoever, with intent to defraud, makes, executes,
acquires, scans, captures, records, receives, transmits,
reproduces, sells, or has in such person's control, custody,
or possession, an analog, digital, or electronic image of any
obligation or other security of the United States; or".
(2) Amendment to definition.--Section 474(b) of title 18,
United States Code, is amended by striking the first sentence
and inserting the following new sentence: "For purposes of
this section, the term `analog, digital, or electronic image'
includes any analog, digital, or electronic method used for
the making, execution, acquisition, scanning, capturing,
recording, retrieval, transmission, or reproduction of any
obligation or security, unless such use is authorized by the
Secretary of the Treasury.".
(3) Technical and conforming amendment.--The heading for
section 474 of title 18, United States Code, is amended by
striking "or stones" and inserting ", stones, or analog,
digital, or electronic images".
(4) Clerical amendment.--The table of sections for chapter
25 of title 18, United States Code, is amended in the item
relating to section 474 by striking "or stones" and
inserting ", stones, or analog, digital, or electronic
images".
(f) Taking Impressions of Tools Used for Obligations or
Securities.--Section 476 of title 18, United States Code, is
amended--
(1) by inserting "analog, digital, or electronic image,"
after "impression, stamp,"; and
(2) by striking "ten years" and inserting "25 years".
(g) Possessing or Selling Impressions of Tools Used for
Obligations or Securities.--Section 477 of title 18, United
States Code, is amended--
(1) in the first paragraph, by inserting "analog, digital,
or electronic image," after "imprint, stamp,";
(2) in the second paragraph, by inserting "analog,
digital, or electronic image," after "imprint, stamp,";
and
(3) in the third paragraph, by striking "ten years" and
inserting "25 years".
(h) Connecting Parts of Different Notes.--Section 484 of
title 18, United States Code, is amended by striking "five
years" and inserting "10 years".
(i) Bonds and Obligations of Certain Lending Agencies.--The
first and second paragraphs of section 493 of title 18,
United States Code, are each amended by striking "five
years" and inserting "10 years".
SEC. 375. COUNTERFEITING FOREIGN CURRENCY AND OBLIGATIONS.
(a) Foreign Obligations or Securities.--Section 478 of
title 18, United States Code, is amended by striking "five
years" and inserting "20 years".
(b) Uttering Counterfeit Foreign Obligations or
Securities.--Section 479 of title 18, United States Code, is
amended by striking "three years" and inserting "20
years".
(c) Possessing Counterfeit Foreign Obligations or
Securities.--Section 480 of title 18, United States Code, is
amended by striking "one year" and inserting "20 years".
(d) Plates, Stones, or Analog, Digital, or Electronic
Images for Counterfeiting Foreign Obligations or
Securities.--
(1) In general.--Section 481 of title 18, United States
Code, is amended by inserting after the second paragraph the
following new paragraph:
"Whoever, with intent to defraud, makes, executes,
acquires, scans, captures, records, receives, transmits,
reproduces, sells, or has in such person's control, custody,
or possession, an analog, digital, or electronic image of any
bond, certificate, obligation, or other security of any
foreign government, or of any treasury note, bill, or promise
to pay, lawfully issued by such foreign government and
intended to circulate as money; or".
(2) Increased sentence.--The last paragraph of section 481
of title 18, United States Code, is amended by striking
"five years" and inserting "25 years".
(3) Technical and conforming amendment.--The heading for
section 481 of title 18, United States Code, is amended by
striking "or stones" and inserting ", stones, or analog,
digital, or electronic images".
(4) Clerical amendment.--The table of sections for chapter
25 of title 18, United States Code, is amended in the item
relating to section 481 by striking "or stones" and
inserting ", stones, or analog, digital, or electronic
images".
(e) Foreign Bank Notes.--Section 482 of title 18, United
States Code, is amended by striking "two years" and
inserting "20 years".
(f) Uttering Counterfeit Foreign Bank Notes.--Section 483
of title 18, United States Code, is amended by striking "one
year" and inserting "20 years".
SEC. 376. LAUNDERING THE PROCEEDS OF TERRORISM.
Section 1956(c)(7)(D) of title 18, United States Code, is
amended by inserting "or 2339B" after "2339A".
SEC. 377. EXTRATERRITORIAL JURISDICTION.
Section 1029 of title 18, United States Code, is amended by
adding at the end the following:
"(h) Any person who, outside the jurisdiction of the
United States, engages in any act that, if committed within
the jurisdiction of the United States, would constitute an
offense under subsection (a) or (b) of this section, shall be
subject to the fines, penalties, imprisonment, and forfeiture
provided in this title if--
"(1) the offense involves an access device issued, owned,
managed, or controlled by a financial institution, account
issuer, credit card system member, or other entity within the
jurisdiction of the United States; and
"(2) the person transports, delivers, conveys, transfers
to or through, or otherwise stores, secrets, or holds within
the jurisdiction of the United States, any article used to
assist in the commission of the offense or the proceeds of
such offense or property derived therefrom.".
TITLE IV--PROTECTING THE BORDER
Subtitle A--Protecting the Northern Border
SEC. 401. ENSURING ADEQUATE PERSONNEL ON THE NORTHERN BORDER.
The Attorney General is authorized to waive any FTE cap on
personnel assigned to the Immigration and Naturalization
Service on the Northern border.
SEC. 402. NORTHERN BORDER PERSONNEL.
There are authorized to be appropriated--
(1) such sums as may be necessary to triple the number of
Border Patrol personnel (from the number authorized under
current law), and the necessary personnel and facilities to
support such personnel, in each State along the Northern
Border;
(2) such sums as may be necessary to triple the number of
Customs Service personnel (from the number authorized under
current law), and the necessary personnel and facilities to
support such personnel, at ports of entry in each State along
the Northern Border;
(3) such sums as may be necessary to triple the number of
INS inspectors (from the number authorized on the date of the
enactment of this Act), and the necessary personnel and
facilities to support such personnel, at ports of entry in
each State along the Northern Border; and
(4) an additional $50,000,000 each to the Immigration and
Naturalization Service and the United States Customs Service
for purposes of making improvements in technology for
monitoring the Northern Border and acquiring additional
equipment at the Northern Border.
SEC. 403. ACCESS BY THE DEPARTMENT OF STATE AND THE INS TO
CERTAIN IDENTIFYING INFORMATION IN THE CRIMINAL
HISTORY RECORDS OF VISA APPLICANTS AND
APPLICANTS FOR ADMISSION TO THE UNITED STATES.
(a) Amendment of the Immigration and Nationality Act.--
Section 105 of the Immigration and Nationality Act (8 U.S.C.
1105) is amended--
(1) in the section heading, by inserting "; data
exchange" after "security officers";
(2) by inserting "(a)" after "Sec. 105.";
(3) in subsection (a), by inserting "and border" after
"internal" the second place it appears; and
(4) by adding at the end the following:
"(b)(1) The Attorney General and the Director of the
Federal Bureau of Investigation shall provide the Department
of State and the Service access to the criminal history
record information contained in the National Crime
Information Center's Interstate Identification Index (NCIC-
III), Wanted Persons File, and to any other files maintained
by the National Crime Information Center that may be mutually
agreed upon by the Attorney General and the agency receiving
the access, for the purpose of determining whether or not a
visa applicant or applicant for admission has a criminal
history record indexed in any such file.
"(2) Such access shall be provided by means of extracts of
the records for placement in the automated visa lookout or
other appropriate database, and shall be provided without any
fee or charge.
"(3) The Federal Bureau of Investigation shall provide
periodic updates of the extracts
[[Page H7180]]
at intervals mutually agreed upon with the agency receiving
the access. Upon receipt of such updated extracts, the
receiving agency shall make corresponding updates to its
database and destroy previously provided extracts.
"(4) Access to an extract does not entitle the Department
of State to obtain the full content of the corresponding
automated criminal history record. To obtain the full content
of a criminal history record, the Department of State shall
submit the applicant's fingerprints and any appropriate
fingerprint processing fee authorized by law to the Criminal
Justice Information Services Division of the Federal Bureau
of Investigation.
"(c) The provision of the extracts described in subsection
(b) may be reconsidered by the Attorney General and the
receiving agency upon the development and deployment of a
more cost-effective and efficient means of sharing the
information.
"(d) For purposes of administering this section, the
Department of State shall, prior to receiving access to NCIC
data but not later than 4 months after the date of enactment
of this subsection, promulgate final regulations--
"(1) to implement procedures for the taking of
fingerprints; and
"(2) to establish the conditions for the use of the
information received from the Federal Bureau of
Investigation, in order--
"(A) to limit the redissemination of such information;
"(B) to ensure that such information is used solely to
determine whether or not to issue a visa to an alien or to
admit an alien to the United States;
"(C) to ensure the security, confidentiality, and
destruction of such information; and
"(D) to protect any privacy rights of individuals who are
subjects of such information.".
(b) Reporting Requirement.--Not later than 2 years after
the date of enactment of this Act, the Attorney General and
the Secretary of State jointly shall report to Congress on
the implementation of the amendments made by this section.
(c) Technology Standard to Confirm Identity.--
(1) In General.--The Attorney General and the Secretary of
State jointly, through the National Institute of Standards
and Technology (NIST), and in consultation with the Secretary
of the Treasury and other Federal law enforcement and
intelligence agencies the Attorney General or Secretary of
State deems appropriate and in consultation with Congress,
shall within 2 years after the date of the enactment of this
section, develop and certify a technology standard that can
be used to verify the identity of persons applying for a
United States visa or such persons seeking to enter the
United States pursuant to a visa for the purposes of
conducting background checks, confirming identity, and
ensuring that a person has not received a visa under a
different name or such person seeking to enter the United
States pursuant to a visa.
(2) Integrated.--The technology standard developed pursuant
to paragraph (1), shall be the technological basis for a
cross-agency, cross-platform electronic system that is a
cost-effective, efficient, fully integrated means to share
law enforcement and intelligence information necessary to
confirm the identity of such persons applying for a United
States visa or such person seeking to enter the United States
pursuant to a visa.
(3) Accessible.--The electronic system described in
paragraph (2), once implemented, shall be readily and easily
accessible to--
(A) all consular officers responsible for the issuance of
visas;
(B) all Federal inspection agents at all United States
border inspection points; and
(C) all law enforcement and intelligence officers as
determined by regulation to be responsible for investigation
or identification of aliens admitted to the United States
pursuant to a visa.
(4) Report.--Not later than 18 months after the date of the
enactment of this Act, and every 2 years thereafter, the
Attorney General and the Secretary of State shall jointly, in
consultation with the Secretary of Treasury, report to
Congress describing the development, implementation,
efficacy, and privacy implications of the technology standard
and electronic database system described in this subsection.
(5) Funding.--There is authorized to be appropriated to the
Secretary of State, the Attorney General, and the Director of
the National Institute of Standards and Technology such sums
as may be necessary to carry out the provisions of this
subsection.
(d) Statutory Construction.--Nothing in this section, or in
any other law, shall be construed to limit the authority of
the Attorney General or the Director of the Federal Bureau of
Investigation to provide access to the criminal history
record information contained in the National Crime
Information Center's (NCIC) Interstate Identification Index
(NCIC-III), or to any other information maintained by the
NCIC, to any Federal agency or officer authorized to enforce
or administer the immigration laws of the United States, for
the purpose of such enforcement or administration, upon terms
that are consistent with the National Crime Prevention and
Privacy Compact Act of 1998 (subtitle A of title II of Public
Law 105-251; 42 U.S.C. 14611-16) and section 552a of title 5,
United States Code.
SEC. 404. LIMITED AUTHORITY TO PAY OVERTIME.
The matter under the headings "Immigration And
Naturalization Service: Salaries and Expenses, Enforcement
And Border Affairs" and "Immigration And Naturalization
Service: Salaries and Expenses, Citizenship And Benefits,
Immigration And Program Direction" in the Department of
Justice Appropriations Act, 2001 (as enacted into law by
Appendix B (H.R. 5548) of Public Law 106-553 (114 Stat.
2762A-58 to 2762A-59)) is amended by striking the following
each place it occurs: "Provided, That none of the funds
available to the Immigration and Naturalization Service shall
be available to pay any employee overtime pay in an amount in
excess of $30,000 during the calendar year beginning January
1, 2001:".
SEC. 405. REPORT ON THE INTEGRATED AUTOMATED FINGERPRINT
IDENTIFICATION SYSTEM FOR PORTS OF ENTRY AND
OVERSEAS CONSULAR POSTS.
(a) In General.--The Attorney General, in consultation with
the appropriate heads of other Federal agencies, including
the Secretary of State, Secretary of the Treasury, and the
Secretary of Transportation, shall report to Congress on the
feasibility of enhancing the Integrated Automated Fingerprint
Identification System (IAFIS) of the Federal Bureau of
Investigation and other identification systems in order to
better identify a person who holds a foreign passport or a
visa and may be wanted in connection with a criminal
investigation in the United States or abroad, before the
issuance of a visa to that person or the entry or exit from
the United States by that person.
(b) Authorization of Appropriations.--There is authorized
to be appropriated not less than $2,000,000 to carry out this
section.
Subtitle B--Enhanced Immigration Provisions
SEC. 411. DEFINITIONS RELATING TO TERRORISM.
(a) Grounds of Inadmissibility.--Section 212(a)(3) of the
Immigration and Nationality Act (8 U.S.C. 1182(a)(3)) is
amended--
(1) in subparagraph (B)--
(A) in clause (i)--
(i) by amending subclause (IV) to read as follows:
"(IV) is a representative (as defined in clause (v)) of--
"(aa) a foreign terrorist organization, as designated by
the Secretary of State under section 219, or
"(bb) a political, social or other similar group whose
public endorsement of acts of terrorist activity the
Secretary of State has determined undermines United States
efforts to reduce or eliminate terrorist activities,";
(ii) in subclause (V), by inserting "or" after "section
219,"; and
(iii) by adding at the end the following new subclauses:
"(VI) has used the alien's position of prominence within
any country to endorse or espouse terrorist activity, or to
persuade others to support terrorist activity or a terrorist
organization, in a way that the Secretary of State has
determined undermines United States efforts to reduce or
eliminate terrorist activities, or
"(VII) is the spouse or child of an alien who is
inadmissible under this section, if the activity causing the
alien to be found inadmissible occurred within the last 5
years,";
(B) by redesignating clauses (ii), (iii), and (iv) as
clauses (iii), (iv), and (v), respectively;
(C) in clause (i)(II), by striking "clause (iii)" and
inserting "clause (iv)";
(D) by inserting after clause (i) the following:
"(ii) Exception.--Subclause (VII) of clause (i) does not
apply to a spouse or child--
"(I) who did not know or should not reasonably have known
of the activity causing the alien to be found inadmissible
under this section; or
"(II) whom the consular officer or Attorney General has
reasonable grounds to believe has renounced the activity
causing the alien to be found inadmissible under this
section.";
(E) in clause (iii) (as redesignated by subparagraph (B))--
(i) by inserting "it had been" before "committed in the
United States"; and
(ii) in subclause (V)(b), by striking "or firearm" and
inserting ", firearm, or other weapon or dangerous device";
(F) by amending clause (iv) (as redesignated by
subparagraph (B)) to read as follows:
"(iv) Engage in terrorist activity defined.--As used in
this chapter, the term `engage in terrorist activity' means,
in an individual capacity or as a member of an organization--
"(I) to commit or to incite to commit, under circumstances
indicating an intention to cause death or serious bodily
injury, a terrorist activity;
"(II) to prepare or plan a terrorist activity;
"(III) to gather information on potential targets for
terrorist activity;
"(IV) to solicit funds or other things of value for--
"(aa) a terrorist activity;
"(bb) a terrorist organization described in clause (vi)(I)
or (vi)(II); or
"(cc) a terrorist organization described in clause
(vi)(III), unless the solicitor can demonstrate that he did
not know, and should not reasonably have known, that the
solicitation would further the organization's terrorist
activity;
[[Page H7181]]
"(V) to solicit any individual--
"(aa) to engage in conduct otherwise described in this
clause;
"(bb) for membership in a terrorist organization described
in clause (vi)(I) or (vi)(II); or
"(cc) for membership in a terrorist organization described
in clause (vi)(III), unless the solicitor can demonstrate
that he did not know, and should not reasonably have known,
that the solicitation would further the organization's
terrorist activity; or
"(VI) to commit an act that the actor knows, or reasonably
should know, affords material support, including a safe
house, transportation, communications, funds, transfer of
funds or other material financial benefit, false
documentation or identification, weapons (including chemical,
biological, or radiological weapons), explosives, or
training--
"(aa) for the commission of a terrorist activity;
"(bb) to any individual who the actor knows, or reasonably
should know, has committed or plans to commit a terrorist
activity;
"(cc) to a terrorist organization described in clause
(vi)(I) or (vi)(II); or
"(dd) to a terrorist organization described in clause
(vi)(III), unless the actor can demonstrate that he did not
know, and should not reasonably have known, that the act
would further the organization's terrorist activity.
This clause shall not apply to any material support the alien
afforded to an organization or individual that has committed
terrorist activity, if the Secretary of State, after
consultation with the Attorney General, or the Attorney
General, after consultation with the Secretary of State,
concludes in his sole unreviewable discretion, that this
clause should not apply."; and
(G) by adding at the end the following new clause:
"(vi) Terrorist organization defined.--As used in clause
(i)(VI) and clause (iv), the term `terrorist organization'
means an organization--
"(I) designated under section 219;
"(II) otherwise designated, upon publication in the
Federal Register, by the Secretary of State in consultation
with or upon the request of the Attorney General, as a
terrorist organization, after finding that the organization
engages in the activities described in subclause (I), (II),
or (III) of clause (iv), or that the organization provides
material support to further terrorist activity; or
"(III) that is a group of two or more individuals, whether
organized or not, which engages in the activities described
in subclause (I), (II), or (III) of clause (iv)."; and
(2) by adding at the end the following new subparagraph:
"(F) Association with terrorist organizations.--Any alien
who the Secretary of State, after consultation with the
Attorney General, or the Attorney General, after consultation
with the Secretary of State, determines has been associated
with a terrorist organization and intends while in the United
States to engage solely, principally, or incidentally in
activities that could endanger the welfare, safety, or
security of the United States is inadmissible.".
(b) Conforming Amendments.--
(1) Section 237(a)(4)(B) of the Immigration and Nationality
Act (8 U.S.C. 1227(a)(4)(B)) is amended by striking "section
212(a)(3)(B)(iii)" and inserting "section
212(a)(3)(B)(iv)".
(2) Section 208(b)(2)(A)(v) of the Immigration and
Nationality Act (8 U.S.C. 1158(b)(2)(A)(v)) is amended by
striking "or (IV)" and inserting "(IV), or (VI)".
(c) Retroactive Application of Amendments.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act and shall
apply to--
(A) actions taken by an alien before, on, or after such
date; and
(B) all aliens, without regard to the date of entry or
attempted entry into the United States--
(i) in removal proceedings on or after such date (except
for proceedings in which there has been a final
administrative decision before such date); or
(ii) seeking admission to the United States on or after
such date.
(2) Special rule for aliens in exclusion or deportation
proceedings.--Notwithstanding any other provision of law,
sections 212(a)(3)(B) and 237(a)(4)(B) of the Immigration and
Nationality Act, as amended by this Act, shall apply to all
aliens in exclusion or deportation proceedings on or after
the date of the enactment of this Act (except for proceedings
in which there has been a final administrative decision
before such date) as if such proceedings were removal
proceedings.
(3) Special rule for section 219 organizations and
organizations designated under section
212(a)(3)(B)(vi)(II).--
(A) In general.--Notwithstanding paragraphs (1) and (2), no
alien shall be considered inadmissible under section
212(a)(3) of the Immigration and Nationality Act (8 U.S.C.
1182(a)(3)), or deportable under section 237(a)(4)(B) of such
Act (8 U.S.C. 1227(a)(4)(B)), by reason of the amendments
made by subsection (a), on the ground that the alien engaged
in a terrorist activity described in subclause (IV)(bb),
(V)(bb), or (VI)(cc) of section 212(a)(3)(B)(iv) of such Act
(as so amended) with respect to a group at any time when the
group was not a terrorist organization designated by the
Secretary of State under section 219 of such Act (8 U.S.C.
1189) or otherwise designated under section
212(a)(3)(B)(vi)(II) of such Act (as so amended).
(B) Statutory construction.--Subparagraph (A) shall not be
construed to prevent an alien from being considered
inadmissible or deportable for having engaged in a terrorist
activity--
(i) described in subclause (IV)(bb), (V)(bb), or (VI)(cc)
of section 212(a)(3)(B)(iv) of such Act (as so amended) with
respect to a terrorist organization at any time when such
organization was designated by the Secretary of State under
section 219 of such Act or otherwise designated under section
212(a)(3)(B)(vi)(II) of such Act (as so amended); or
(ii) described in subclause (IV)(cc), (V)(cc), or (VI)(dd)
of section 212(a)(3)(B)(iv) of such Act (as so amended) with
respect to a terrorist organization described in section
212(a)(3)(B)(vi)(III) of such Act (as so amended).
(4) Exception.--The Secretary of State, in consultation
with the Attorney General, may determine that the amendments
made by this section shall not apply with respect to actions
by an alien taken outside the United States before the date
of the enactment of this Act upon the recommendation of a
consular officer who has concluded that there is not
reasonable ground to believe that the alien knew or
reasonably should have known that the actions would further a
terrorist activity.
(c) Designation of Foreign Terrorist Organizations.--
Section 219(a) of the Immigration and Nationality Act (8
U.S.C. 1189(a)) is amended--
(1) in paragraph (1)(B), by inserting "or terrorism (as
defined in section 140(d)(2) of the Foreign Relations
Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C.
2656f(d)(2)), or retains the capability and intent to engage
in terrorist activity or terrorism" after "212(a)(3)(B)";
(2) in paragraph (1)(C), by inserting "or terrorism"
after "terrorist activity";
(3) by amending paragraph (2)(A) to read as follows:
"(A) Notice.--
"(i) To congressional leaders.--Seven days before making a
designation under this subsection, the Secretary shall, by
classified communication, notify the Speaker and Minority
Leader of the House of Representatives, the President pro
tempore, Majority Leader, and Minority Leader of the Senate,
and the members of the relevant committees of the House of
Representatives and the Senate, in writing, of the intent to
designate an organization under this subsection, together
with the findings made under paragraph (1) with respect to
that organization, and the factual basis therefor.
"(ii) Publication in federal register.--The Secretary
shall publish the designation in the Federal Register seven
days after providing the notification under clause (i).";
(4) in paragraph (2)(B)(i), by striking "subparagraph
(A)" and inserting "subparagraph (A)(ii)";
(5) in paragraph (2)(C), by striking "paragraph (2)" and
inserting "paragraph (2)(A)(i)";
(6) in paragraph (3)(B), by striking "subsection (c)" and
inserting "subsection (b)";
(7) in paragraph (4)(B), by inserting after the first
sentence the following: "The Secretary also may redesignate
such organization at the end of any 2-year redesignation
period (but not sooner than 60 days prior to the termination
of such period) for an additional 2-year period upon a
finding that the relevant circumstances described in
paragraph (1) still exist. Any redesignation shall be
effective immediately following the end of the prior 2-year
designation or redesignation period unless a different
effective date is provided in such redesignation.";
(8) in paragraph (6)(A)--
(A) by inserting "or a redesignation made under paragraph
(4)(B)" after "paragraph (1)";
(B) in clause (i)--
(i) by inserting "or redesignation" after "designation"
the first place it appears; and
(ii) by striking "of the designation"; and
(C) in clause (ii), by striking "of the designation";
(9) in paragraph (6)(B)--
(A) by striking "through (4)" and inserting "and (3)";
and
(B) by inserting at the end the following new sentence:
"Any revocation shall take effect on the date specified in
the revocation or upon publication in the Federal Register if
no effective date is specified.";
(10) in paragraph (7), by inserting ", or the revocation
of a redesignation under paragraph (6)," after "paragraph
(5) or (6)"; and
(11) in paragraph (8)--
(A) by striking "paragraph (1)(B)" and inserting
"paragraph (2)(B), or if a redesignation under this
subsection has become effective under paragraph (4)(B)";
(B) by inserting "or an alien in a removal proceeding"
after "criminal action"; and
(C) by inserting "or redesignation" before "as a
defense".
SEC. 412. MANDATORY DETENTION OF SUSPECTED TERRORISTS; HABEAS
CORPUS; JUDICIAL REVIEW.
(a) In General.--The Immigration and Nationality Act (8
U.S.C. 1101 et seq.) is amended by inserting after section
236 the following:
"MANDATORY DETENTION OF SUSPECTED TERRORISTS; HABEAS CORPUS; JUDICIAL
REVIEW
"Sec. 236A. (a) Detention of Terrorist Aliens.--
[[Page H7182]]
"(1) Custody.--The Attorney General shall take into
custody any alien who is certified under paragraph (3).
"(2) Release.--Except as provided in paragraphs (5) and
(6), the Attorney General shall maintain custody of such an
alien until the alien is removed from the United States.
Except as provided in paragraph (6), such custody shall be
maintained irrespective of any relief from removal for which
the alien may be eligible, or any relief from removal granted
the alien, until the Attorney General determines that the
alien is no longer an alien who may be certified under
paragraph (3). If the alien is finally determined not to be
removable, detention pursuant to this subsection shall
terminate.
"(3) Certification.--The Attorney General may certify an
alien under this paragraph if the Attorney General has
reasonable grounds to believe that the alien--
"(A) is described in section 212(a)(3)(A)(i),
212(a)(3)(A)(iii), 212(a)(3)(B), 237(a)(4)(A)(i),
237(a)(4)(A)(iii), or 237(a)(4)(B); or
"(B) is engaged in any other activity that endangers the
national security of the United States.
"(4) Nondelegation.--The Attorney General may delegate the
authority provided under paragraph (3) only to the Deputy
Attorney General. The Deputy Attorney General may not
delegate such authority.
"(5) Commencement of proceedings.--The Attorney General
shall place an alien detained under paragraph (1) in removal
proceedings, or shall charge the alien with a criminal
offense, not later than 7 days after the commencement of such
detention. If the requirement of the preceding sentence is
not satisfied, the Attorney General shall release the alien.
"(6) Limitation on indefinite detention.--An alien
detained solely under paragraph (1) who has not been removed
under section 241(a)(1)(A), and whose removal is unlikely in
the reasonably foreseeable future, may be detained for
additional periods of up to six months only if the release of
the alien will threaten the national security of the United
States or the safety of the community or any person.
"(7) Review of certification.--The Attorney General shall
review the certification made under paragraph (3) every 6
months. If the Attorney General determines, in the Attorney
General's discretion, that the certification should be
revoked, the alien may be released on such conditions as the
Attorney General deems appropriate, unless such release is
otherwise prohibited by law. The alien may request each 6
months in writing that the Attorney General reconsider the
certification and may submit documents or other evidence in
support of that request.
"(b) Habeas Corpus and Judicial Review.--
"(1) In general.--Judicial review of any action or
decision relating to this section (including judicial review
of the merits of a determination made under subsection (a)(3)
or (a)(6)) is available exclusively in habeas corpus
proceedings consistent with this subsection. Except as
provided in the preceding sentence, no court shall have
jurisdiction to review, by habeas corpus petition or
otherwise, any such action or decision.
"(2) Application.--
"(A) In general.--Notwithstanding any other provision of
law, including section 2241(a) of title 28, United States
Code, habeas corpus proceedings described in paragraph (1)
may be initiated only by an application filed with--
"(i) the Supreme Court;
"(ii) any justice of the Supreme Court;
"(iii) any circuit judge of the United States Court of
Appeals for the District of Columbia Circuit; or
"(iv) any district court otherwise having jurisdiction to
entertain it.
"(B) Application transfer.--Section 2241(b) of title 28,
United States Code, shall apply to an application for a writ
of habeas corpus described in subparagraph (A).
"(3) Appeals.--Notwithstanding any other provision of law,
including section 2253 of title 28, in habeas corpus
proceedings described in paragraph (1) before a circuit or
district judge, the final order shall be subject to review,
on appeal, by the United States Court of Appeals for the
District of Columbia Circuit. There shall be no right of
appeal in such proceedings to any other circuit court of
appeals.
"(4) Rule of decision.--The law applied by the Supreme
Court and the United States Court of Appeals for the District
of Columbia Circuit shall be regarded as the rule of decision
in habeas corpus proceedings described in paragraph (1).
"(c) Statutory Construction.--The provisions of this
section shall not be applicable to any other provision of
this Act.".
(b) Clerical Amendment.--The table of contents of the
Immigration and Nationality Act is amended by inserting after
the item relating to section 236 the following:
"Sec. 236A. Mandatory detention of suspected terrorist; habeas corpus;
judicial review.".
(c) Reports.--Not later than 6 months after the date of the
enactment of this Act, and every 6 months thereafter, the
Attorney General shall submit a report to the Committee on
the Judiciary of the House of Representatives and the
Committee on the Judiciary of the Senate, with respect to the
reporting period, on--
(1) the number of aliens certified under section 236A(a)(3)
of the Immigration and Nationality Act, as added by
subsection (a);
(2) the grounds for such certifications;
(3) the nationalities of the aliens so certified;
(4) the length of the detention for each alien so
certified; and
(5) the number of aliens so certified who--
(A) were granted any form of relief from removal;
(B) were removed;
(C) the Attorney General has determined are no longer
aliens who may be so certified; or
(D) were released from detention.
SEC. 413. MULTILATERAL COOPERATION AGAINST TERRORISTS.
Section 222(f) of the Immigration and Nationality Act (8
U.S.C. 1202(f)) is amended--
(1) by striking "except that in the discretion of" and
inserting the following: "except that--
"(1) in the discretion of"; and
(2) by adding at the end the following:
"(2) the Secretary of State, in the Secretary's discretion
and on the basis of reciprocity, may provide to a foreign
government information in the Department of State's
computerized visa lookout database and, when necessary and
appropriate, other records covered by this section related to
information in the database--
"(A) with regard to individual aliens, at any time on a
case-by-case basis for the purpose of preventing,
investigating, or punishing acts that would constitute a
crime in the United States, including, but not limited to,
terrorism or trafficking in controlled substances, persons,
or illicit weapons; or
"(B) with regard to any or all aliens in the database,
pursuant to such conditions as the Secretary of State shall
establish in an agreement with the foreign government in
which that government agrees to use such information and
records for the purposes described in subparagraph (A) or to
deny visas to persons who would be inadmissible to the United
States.".
SEC. 414. VISA INTEGRITY AND SECURITY.
(a) Sense of Congress Regarding the Need To Expedite
Implementation of Integrated Entry and Exit Data System.--
(1) Sense of congress.--In light of the terrorist attacks
perpetrated against the United States on September 11, 2001,
it is the sense of the Congress that--
(A) the Attorney General, in consultation with the
Secretary of State, should fully implement the integrated
entry and exit data system for airports, seaports, and land
border ports of entry, as specified in section 110 of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1365a), with all deliberate speed and as
expeditiously as practicable; and
(B) the Attorney General, in consultation with the
Secretary of State, the Secretary of Commerce, the Secretary
of the Treasury, and the Office of Homeland Security, should
immediately begin establishing the Integrated Entry and Exit
Data System Task Force, as described in section 3 of the
Immigration and Naturalization Service Data Management
Improvement Act of 2000 (Public Law 106-215).
(2) Authorization of appropriations.--There is authorized
to be appropriated such sums as may be necessary to fully
implement the system described in paragraph (1)(A).
(b) Development of the System.--In the development of the
integrated entry and exit data system under section 110 of
the Illegal Immigration Reform and Immigrant Responsibility
Act of 1996 (8 U.S.C. 1365a), the Attorney General and the
Secretary of State shall particularly focus on--
(1) the utilization of biometric technology; and
(2) the development of tamper-resistant documents readable
at ports of entry.
(c) Interface With Law Enforcement Databases.--The entry
and exit data system described in this section shall be able
to interface with law enforcement databases for use by
Federal law enforcement to identify and detain individuals
who pose a threat to the national security of the United
States.
(d) Report on Screening Information.--Not later than 12
months after the date of enactment of this Act, the Office of
Homeland Security shall submit a report to Congress on the
information that is needed from any United States agency to
effectively screen visa applicants and applicants for
admission to the United States to identify those affiliated
with terrorist organizations or those that pose any threat to
the safety or security of the United States, including the
type of information currently received by United States
agencies and the regularity with which such information is
transmitted to the Secretary of State and the Attorney
General.
SEC. 415. PARTICIPATION OF OFFICE OF HOMELAND SECURITY ON
ENTRY-EXIT TASK FORCE.
Section 3 of the Immigration and Naturalization Service
Data Management Improvement Act of 2000 (Public Law 106-215)
is amended by striking "and the Secretary of the Treasury,"
and inserting "the Secretary of the Treasury, and the Office
of Homeland Security".
SEC. 416. FOREIGN STUDENT MONITORING PROGRAM.
(a) Full Implementation and Expansion of Foreign Student
Visa Monitoring Program Required.--The Attorney General, in
consultation with the Secretary of State, shall fully
implement and expand the program established by section
641(a) of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1372(a)).
[[Page H7183]]
(b) Integration With Port of Entry Information.--For each
alien with respect to whom information is collected under
section 641 of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1372), the Attorney
General, in consultation with the Secretary of State, shall
include information on the date of entry and port of entry.
(c) Expansion of System To Include Other Approved
Educational Institutions.--Section 641 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(8 U.S.C.1372) is amended--
(1) in subsection (a)(1), subsection (c)(4)(A), and
subsection (d)(1) (in the text above subparagraph (A)), by
inserting ", other approved educational institutions,"
after "higher education" each place it appears;
(2) in subsections (c)(1)(C), (c)(1)(D), and (d)(1)(A), by
inserting ", or other approved educational institution,"
after "higher education" each place it appears;
(3) in subsections (d)(2), (e)(1), and (e)(2), by inserting
", other approved educational institution," after "higher
education" each place it appears; and
(4) in subsection (h), by adding at the end the following
new paragraph:
"(3) Other approved educational institution.--The term
`other approved educational institution' includes any air
flight school, language training school, or vocational
school, approved by the Attorney General, in consultation
with the Secretary of Education and the Secretary of State,
under subparagraph (F), (J), or (M) of section 101(a)(15) of
the Immigration and Nationality Act.".
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Department of Justice $36,800,000
for the period beginning on the date of enactment of this Act
and ending on January 1, 2003, to fully implement and expand
prior to January 1, 2003, the program established by section
641(a) of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1372(a)).
SEC. 417. MACHINE READABLE PASSPORTS.
(a) Audits.--The Secretary of State shall, each fiscal year
until September 30, 2007--
(1) perform annual audits of the implementation of section
217(c)(2)(B) of the Immigration and Nationality Act (8 U.S.C.
1187(c)(2)(B));
(2) check for the implementation of precautionary measures
to prevent the counterfeiting and theft of passports; and
(3) ascertain that countries designated under the visa
waiver program have established a program to develop tamper-
resistant passports.
(b) Periodic Reports.--Beginning one year after the date of
enactment of this Act, and every year thereafter until 2007,
the Secretary of State shall submit a report to Congress
setting forth the findings of the most recent audit conducted
under subsection (a)(1).
(c) Advancing Deadline for Satisfaction of Requirement.--
Section 217(a)(3) of the Immigration and Nationality Act (8
U.S.C. 1187(a)(3)) is amended by striking "2007" and
inserting "2003".
(d) Waiver.--Section 217(a)(3) of the Immigration and
Nationality Act (8 U.S.C. 1187(a)(3)) is amended--
(1) by striking "On or after" and inserting the
following:
"(A) In general.--Except as provided in subparagraph (B),
on or after"; and
(2) by adding at the end the following:
"(B) Limited waiver authority.--For the period beginning
October 1, 2003, and ending September 30, 2007, the Secretary
of State may waive the requirement of subparagraph (A) with
respect to nationals of a program country (as designated
under subsection (c)), if the Secretary of State finds that
the program country--
"(i) is making progress toward ensuring that passports
meeting the requirement of subparagraph (A) are generally
available to its nationals; and
"(ii) has taken appropriate measures to protect against
misuse of passports the country has issued that do not meet
the requirement of subparagraph (A).".
SEC. 418. PREVENTION OF CONSULATE SHOPPING.
(a) Review.--The Secretary of State shall review how
consular officers issue visas to determine if consular
shopping is a problem.
(b) Actions to be Taken.--If the Secretary of State
determines under subsection (a) that consular shopping is a
problem, the Secretary shall take steps to address the
problem and shall submit a report to Congress describing what
action was taken.
Subtitle C--Preservation of Immigration Benefits for Victims of
Terrorism
SEC. 421. SPECIAL IMMIGRANT STATUS.
(a) In General.--For purposes of the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.), the Attorney General
may provide an alien described in subsection (b) with the
status of a special immigrant under section 101(a)(27) of
such Act (8 U.S.C. 1101(a(27)), if the alien--
(1) files with the Attorney General a petition under
section 204 of such Act (8 U.S.C. 1154) for classification
under section 203(b)(4) of such Act (8 U.S.C. 1153(b)(4));
and
(2) is otherwise eligible to receive an immigrant visa and
is otherwise admissible to the United States for permanent
residence, except in determining such admissibility, the
grounds for inadmissibility specified in section 212(a)(4) of
such Act (8 U.S.C. 1182(a)(4)) shall not apply.
(b) Aliens Described.--
(1) Principal aliens.--An alien is described in this
subsection if--
(A) the alien was the beneficiary of--
(i) a petition that was filed with the Attorney General on
or before September 11, 2001--
(I) under section 204 of the Immigration and Nationality
Act (8 U.S.C. 1154) to classify the alien as a family-
sponsored immigrant under section 203(a) of such Act (8
U.S.C. 1153(a)) or as an employment-based immigrant under
section 203(b) of such Act (8 U.S.C. 1153(b)); or
(II) under section 214(d) (8 U.S.C. 1184(d)) of such Act to
authorize the issuance of a nonimmigrant visa to the alien
under section 101(a)(15)(K) of such Act (8 U.S.C.
1101(a)(15)(K)); or
(ii) an application for labor certification under section
212(a)(5)(A) of such Act (8 U.S.C. 1182(a)(5)(A)) that was
filed under regulations of the Secretary of Labor on or
before such date; and
(B) such petition or application was revoked or terminated
(or otherwise rendered null), either before or after its
approval, due to a specified terrorist activity that directly
resulted in--
(i) the death or disability of the petitioner, applicant,
or alien beneficiary; or
(ii) loss of employment due to physical damage to, or
destruction of, the business of the petitioner or applicant.
(2) Spouses and children.--
(A) In general.--An alien is described in this subsection
if--
(i) the alien was, on September 10, 2001, the spouse or
child of a principal alien described in paragraph (1); and
(ii) the alien--
(I) is accompanying such principal alien; or
(II) is following to join such principal alien not later
than September 11, 2003.
(B) Construction.--For purposes of construing the terms
"accompanying" and "following to join" in subparagraph
(A)(ii), any death of a principal alien that is described in
paragraph (1)(B)(i) shall be disregarded.
(3) Grandparents of orphans.--An alien is described in this
subsection if the alien is a grandparent of a child, both of
whose parents died as a direct result of a specified
terrorist activity, if either of such deceased parents was,
on September 10, 2001, a citizen or national of the United
States or an alien lawfully admitted for permanent residence
in the United States.
(c) Priority Date.--Immigrant visas made available under
this section shall be issued to aliens in the order in which
a petition on behalf of each such alien is filed with the
Attorney General under subsection (a)(1), except that if an
alien was assigned a priority date with respect to a petition
described in subsection (b)(1)(A)(i), the alien may maintain
that priority date.
(d) Numerical Limitations.--For purposes of the application
of sections 201 through 203 of the Immigration and
Nationality Act (8 U.S.C. 1151-1153) in any fiscal year,
aliens eligible to be provided status under this section
shall be treated as special immigrants described in section
101(a)(27) of such Act (8 U.S.C. 1101(a)(27)) who are not
described in subparagraph (A), (B), (C), or (K) of such
section.
SEC. 422. EXTENSION OF FILING OR REENTRY DEADLINES.
(a) Automatic Extension of Nonimmigrant Status.--
(1) In general.--Notwithstanding section 214 of the
Immigration and Nationality Act (8 U.S.C. 1184), in the case
of an alien described in paragraph (2) who was lawfully
present in the United States as a nonimmigrant on September
10, 2001, the alien may remain lawfully in the United States
in the same nonimmigrant status until the later of--
(A) the date such lawful nonimmigrant status otherwise
would have terminated if this subsection had not been
enacted; or
(B) 1 year after the death or onset of disability described
in paragraph (2).
(2) Aliens described.--
(A) Principal aliens.--An alien is described in this
paragraph if the alien was disabled as a direct result of a
specified terrorist activity.
(B) Spouses and children.--An alien is described in this
paragraph if the alien was, on September 10, 2001, the spouse
or child of--
(i) a principal alien described in subparagraph (A); or
(ii) an alien who died as a direct result of a specified
terrorist activity.
(3) Authorized employment.--During the period in which a
principal alien or alien spouse is in lawful nonimmigrant
status under paragraph (1), the alien shall be provided an
"employment authorized" endorsement or other appropriate
document signifying authorization of employment not later
than 30 days after the alien requests such authorization.
(b) New Deadlines for Extension or Change of Nonimmigrant
Status.--
(1) Filing delays.--In the case of an alien who was
lawfully present in the United States as a nonimmigrant on
September 10, 2001, if the alien was prevented from filing a
timely application for an extension or change of nonimmigrant
status as a direct result of a specified terrorist activity,
the alien's application shall be considered timely filed if
it is filed not later than 60 days after it otherwise would
have been due.
(2) Departure delays.--In the case of an alien who was
lawfully present in the United States as a nonimmigrant on
September 10, 2001, if the alien is unable timely to depart
the United States as a direct result of a specified terrorist
activity, the alien shall not be
[[Page H7184]]
considered to have been unlawfully present in the United
States during the period beginning on September 11, 2001, and
ending on the date of the alien's departure, if such
departure occurs on or before November 11, 2001.
(3) Special rule for aliens unable to return from abroad.--
(A) Principal aliens.--In the case of an alien who was in a
lawful nonimmigrant status on September 10, 2001, but who was
not present in the United States on such date, if the alien
was prevented from returning to the United States in order to
file a timely application for an extension of nonimmigrant
status as a direct result of a specified terrorist activity--
(i) the alien's application shall be considered timely
filed if it is filed not later than 60 days after it
otherwise would have been due; and
(ii) the alien's lawful nonimmigrant status shall be
considered to continue until the later of--
(I) the date such status otherwise would have terminated if
this subparagraph had not been enacted; or
(II) the date that is 60 days after the date on which the
application described in clause (i) otherwise would have been
due.
(B) Spouses and children.--In the case of an alien who is
the spouse or child of a principal alien described in
subparagraph (A), if the spouse or child was in a lawful
nonimmigrant status on September 10, 2001, the spouse or
child may remain lawfully in the United States in the same
nonimmigrant status until the later of--
(i) the date such lawful nonimmigrant status otherwise
would have terminated if this subparagraph had not been
enacted; or
(ii) the date that is 60 days after the date on which the
application described in subparagraph (A) otherwise would
have been due.
(4) Circumstances preventing timely action.--
(A) Filing delays.--For purposes of paragraph (1),
circumstances preventing an alien from timely acting are--
(i) office closures;
(ii) mail or courier service cessations or delays; and
(iii) other closures, cessations, or delays affecting case
processing or travel necessary to satisfy legal requirements.
(B) Departure and return delays.--For purposes of
paragraphs (2) and (3), circumstances preventing an alien
from timely acting are--
(i) office closures;
(ii) airline flight cessations or delays; and
(iii) other closures, cessations, or delays affecting case
processing or travel necessary to satisfy legal requirements.
(c) Diversity Immigrants.--
(1) Waiver of fiscal year limitation.--Notwithstanding
section 203(e)(2) of the Immigration and Nationality Act (8
U.S.C. 1153(e)(2)), an immigrant visa number issued to an
alien under section 203(c) of such Act for fiscal year 2001
may be used by the alien during the period beginning on
October 1, 2001, and ending on April 1, 2002, if the alien
establishes that the alien was prevented from using it during
fiscal year 2001 as a direct result of a specified terrorist
activity.
(2) Worldwide level.--In the case of an alien entering the
United States as a lawful permanent resident, or adjusting to
that status, under paragraph (1) or (3), the alien shall be
counted as a diversity immigrant for fiscal year 2001 for
purposes of section 201(e) of the Immigration and Nationality
Act (8 U.S.C. 1151(e)), unless the worldwide level under such
section for such year has been exceeded, in which case the
alien shall be counted as a diversity immigrant for fiscal
year 2002.
(3) Treatment of family members of certain aliens.--In the
case of a principal alien issued an immigrant visa number
under section 203(c) of the Immigration and Nationality Act
(8 U.S.C. 1153(c)) for fiscal year 2001, if such principal
alien died as a direct result of a specified terrorist
activity, the aliens who were, on September 10, 2001, the
spouse and children of such principal alien shall, until June
30, 2002, if not otherwise entitled to an immigrant status
and the immediate issuance of a visa under subsection (a),
(b), or (c) of section 203 of such Act, be entitled to the
same status, and the same order of consideration, that would
have been provided to such alien spouse or child under
section 203(d) of such Act as if the principal alien were not
deceased and as if the spouse or child's visa application had
been adjudicated by September 30, 2001.
(4) Circumstances preventing timely action.--For purposes
of paragraph (1), circumstances preventing an alien from
using an immigrant visa number during fiscal year 2001 are--
(A) office closures;
(B) mail or courier service cessations or delays;
(C) airline flight cessations or delays; and
(D) other closures, cessations, or delays affecting case
processing or travel necessary to satisfy legal requirements.
(d) Extension of Expiration of Immigrant Visas.--
(1) In general.--Notwithstanding the limitations under
section 221(c) of the Immigration and Nationality Act (8
U.S.C. 1201(c)), in the case of any immigrant visa issued to
an alien that expires or expired before December 31, 2001, if
the alien was unable to effect entry into the United States
as a direct result of a specified terrorist activity, then
the period of validity of the visa is extended until December
31, 2001, unless a longer period of validity is otherwise
provided under this subtitle.
(2) Circumstances preventing entry.--For purposes of this
subsection, circumstances preventing an alien from effecting
entry into the United States are--
(A) office closures;
(B) airline flight cessations or delays; and
(C) other closures, cessations, or delays affecting case
processing or travel necessary to satisfy legal requirements.
(e) Grants of Parole Extended.--
(1) In general.--In the case of any parole granted by the
Attorney General under section 212(d)(5) of the Immigration
and Nationality Act (8 U.S.C. 1182(d)(5)) that expires on a
date on or after September 11, 2001, if the alien beneficiary
of the parole was unable to return to the United States prior
to the expiration date as a direct result of a specified
terrorist activity, the parole is deemed extended for an
additional 90 days.
(2) Circumstances preventing return.--For purposes of this
subsection, circumstances preventing an alien from timely
returning to the United States are--
(A) office closures;
(B) airline flight cessations or delays; and
(C) other closures, cessations, or delays affecting case
processing or travel necessary to satisfy legal requirements.
(f) Voluntary Departure.--Notwithstanding section 240B of
the Immigration and Nationality Act (8 U.S.C. 1229c), if a
period for voluntary departure under such section expired
during the period beginning on September 11, 2001, and ending
on October 11, 2001, such voluntary departure period is
deemed extended for an additional 30 days.
SEC. 423. HUMANITARIAN RELIEF FOR CERTAIN SURVIVING SPOUSES
AND CHILDREN.
(a) Treatment as Immediate Relatives.--
(1) Spouses.--Notwithstanding the second sentence of
section 201(b)(2)(A)(i) of the Immigration and Nationality
Act (8 U.S.C. 1151(b)(2)(A)(i)), in the case of an alien who
was the spouse of a citizen of the United States at the time
of the citizen's death and was not legally separated from the
citizen at the time of the citizen's death, if the citizen
died as a direct result of a specified terrorist activity,
the alien (and each child of the alien) shall be considered,
for purposes of section 201(b) of such Act, to remain an
immediate relative after the date of the citizen's death, but
only if the alien files a petition under section
204(a)(1)(A)(ii) of such Act within 2 years after such date
and only until the date the alien remarries. For purposes of
such section 204(a)(1)(A)(ii), an alien granted relief under
the preceding sentence shall be considered an alien spouse
described in the second sentence of section 201(b)(2)(A)(i)
of such Act.
(2) Children.--
(A) In general.--In the case of an alien who was the child
of a citizen of the United States at the time of the
citizen's death, if the citizen died as a direct result of a
specified terrorist activity, the alien shall be considered,
for purposes of section 201(b) of the Immigration and
Nationality Act (8 U.S.C. 1151(b)), to remain an immediate
relative after the date of the citizen's death (regardless of
changes in age or marital status thereafter), but only if the
alien files a petition under subparagraph (B) within 2 years
after such date.
(B) Petitions.--An alien described in subparagraph (A) may
file a petition with the Attorney General for classification
of the alien under section 201(b)(2)(A)(i) of the Immigration
and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)). For purposes
of such Act, such a petition shall be considered a petition
filed under section 204(a)(1)(A) of such Act (8 U.S.C.
1154(a)(1)(A)).
(b) Spouses, Children, Unmarried Sons and Daughters of
Lawful Permanent Resident Aliens.--
(1) In general.--Any spouse, child, or unmarried son or
daughter of an alien described in paragraph (3) who is
included in a petition for classification as a family-
sponsored immigrant under section 203(a)(2) of the
Immigration and Nationality Act (8 U.S.C. 1153(a)(2)) that
was filed by such alien before September 11, 2001, shall be
considered (if the spouse, child, son, or daughter has not
been admitted or approved for lawful permanent residence by
such date) a valid petitioner for preference status under
such section with the same priority date as that assigned
prior to the death described in paragraph (3)(A). No new
petition shall be required to be filed. Such spouse, child,
son, or daughter may be eligible for deferred action and work
authorization.
(2) Self-petitions.--Any spouse, child, or unmarried son or
daughter of an alien described in paragraph (3) who is not a
beneficiary of a petition for classification as a family-
sponsored immigrant under section 203(a)(2) of the
Immigration and Nationality Act may file a petition for such
classification with the Attorney General, if the spouse,
child, son, or daughter was present in the United States on
September 11, 2001. Such spouse, child, son, or daughter may
be eligible for deferred action and work authorization.
(3) Aliens described.--An alien is described in this
paragraph if the alien--
(A) died as a direct result of a specified terrorist
activity; and
(B) on the day of such death, was lawfully admitted for
permanent residence in the United States.
[[Page H7185]]
(c) Applications for Adjustment of Status by Surviving
Spouses and Children of Employment-Based Immigrants.--
(1) In general.--Any alien who was, on September 10, 2001,
the spouse or child of an alien described in paragraph (2),
and who applied for adjustment of status prior to the death
described in paragraph (2)(A), may have such application
adjudicated as if such death had not occurred.
(2) Aliens described.--An alien is described in this
paragraph if the alien--
(A) died as a direct result of a specified terrorist
activity; and
(B) on the day before such death, was--
(i) an alien lawfully admitted for permanent residence in
the United States by reason of having been allotted a visa
under section 203(b) of the Immigration and Nationality Act
(8 U.S.C. 1153(b)); or
(ii) an applicant for adjustment of status to that of an
alien described in clause (i), and admissible to the United
States for permanent residence.
(d) Waiver of Public Charge Grounds.--In determining the
admissibility of any alien accorded an immigration benefit
under this section, the grounds for inadmissibility specified
in section 212(a)(4) of the Immigration and Nationality Act
(8 U.S.C. 1182(a)(4)) shall not apply.
SEC. 424. "AGE-OUT" PROTECTION FOR CHILDREN.
For purposes of the administration of the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.), in the case of an
alien--
(1) whose 21st birthday occurs in September 2001, and who
is the beneficiary of a petition or application filed under
such Act on or before September 11, 2001, the alien shall be
considered to be a child for 90 days after the alien's 21st
birthday for purposes of adjudicating such petition or
application; and
(2) whose 21st birthday occurs after September 2001, and
who is the beneficiary of a petition or application filed
under such Act on or before September 11, 2001, the alien
shall be considered to be a child for 45 days after the
alien's 21st birthday for purposes of adjudicating such
petition or application.
SEC. 425. TEMPORARY ADMINISTRATIVE RELIEF.
The Attorney General, for humanitarian purposes or to
ensure family unity, may provide temporary administrative
relief to any alien who--
(1) was lawfully present in the United States on September
10, 2001;
(2) was on such date the spouse, parent, or child of an
individual who died or was disabled as a direct result of a
specified terrorist activity; and
(3) is not otherwise entitled to relief under any other
provision of this subtitle.
SEC. 426. EVIDENCE OF DEATH, DISABILITY, OR LOSS OF
EMPLOYMENT.
(a) In General.--The Attorney General shall establish
appropriate standards for evidence demonstrating, for
purposes of this subtitle, that any of the following occurred
as a direct result of a specified terrorist activity:
(1) Death.
(2) Disability.
(3) Loss of employment due to physical damage to, or
destruction of, a business.
(b) Waiver of Regulations.--The Attorney General shall
carry out subsection (a) as expeditiously as possible. The
Attorney General is not required to promulgate regulations
prior to implementing this subtitle.
SEC. 427. NO BENEFITS TO TERRORISTS OR FAMILY MEMBERS OF
TERRORISTS.
Notwithstanding any other provision of this subtitle,
nothing in this subtitle shall be construed to provide any
benefit or relief to--
(1) any individual culpable for a specified terrorist
activity; or
(2) any family member of any individual described in
paragraph (1).
SEC. 428. DEFINITIONS.
(a) Application of Immigration and Nationality Act
Provisions.--Except as otherwise specifically provided in
this subtitle, the definitions used in the Immigration and
Nationality Act (excluding the definitions applicable
exclusively to title III of such Act) shall apply in the
administration of this subtitle.
(b) Specified Terrorist Activity.--For purposes of this
subtitle, the term "specified terrorist activity" means any
terrorist activity conducted against the Government or the
people of the United States on September 11, 2001.
TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM
SEC. 501. ATTORNEY GENERAL'S AUTHORITY TO PAY REWARDS TO
COMBAT TERRORISM.
(a) Payment of Rewards To Combat Terrorism.--Funds
available to the Attorney General may be used for the payment
of rewards pursuant to public advertisements for assistance
to the Department of Justice to combat terrorism and defend
the Nation against terrorist acts, in accordance with
procedures and regulations established or issued by the
Attorney General.
(b) Conditions.--In making rewards under this section--
(1) no such reward of $250,000 or more may be made or
offered without the personal approval of either the Attorney
General or the President;
(2) the Attorney General shall give written notice to the
Chairmen and ranking minority members of the Committees on
Appropriations and the Judiciary of the Senate and of the
House of Representatives not later than 30 days after the
approval of a reward under paragraph (1);
(3) any executive agency or military department (as
defined, respectively, in sections 105 and 102 of title 5,
United States Code) may provide the Attorney General with
funds for the payment of rewards;
(4) neither the failure of the Attorney General to
authorize a payment nor the amount authorized shall be
subject to judicial review; and
(5) no such reward shall be subject to any per- or
aggregate reward spending limitation established by law,
unless that law expressly refers to this section, and no
reward paid pursuant to any such offer shall count toward any
such aggregate reward spending limitation.
SEC. 502. SECRETARY OF STATE'S AUTHORITY TO PAY REWARDS.
Section 36 of the State Department Basic Authorities Act of
1956 (Public Law 885, August 1, 1956; 22 U.S.C. 2708) is
amended--
(1) in subsection (b)--
(A) in paragraph (4), by striking "or" at the end;
(B) in paragraph (5), by striking the period at the end and
inserting ", including by dismantling an organization in
whole or significant part; or"; and
(C) by adding at the end the following:
"(6) the identification or location of an individual who
holds a key leadership position in a terrorist
organization.";
(2) in subsection (d), by striking paragraphs (2) and (3)
and redesignating paragraph (4) as paragraph (2); and
(3) in subsection (e)(1), by inserting ", except as
personally authorized by the Secretary of State if he
determines that offer or payment of an award of a larger
amount is necessary to combat terrorism or defend the Nation
against terrorist acts." after "$5,000,000".
SEC. 503. DNA IDENTIFICATION OF TERRORISTS AND OTHER VIOLENT
OFFENDERS.
Section 3(d)(2) of the DNA Analysis Backlog Elimination Act
of 2000 (42 U.S.C. 14135a(d)(2)) is amended to read as
follows:
"(2) In addition to the offenses described in paragraph
(1), the following offenses shall be treated for purposes of
this section as qualifying Federal offenses, as determined by
the Attorney General:
"(A) Any offense listed in section 2332b(g)(5)(B) of title
18, United States Code.
"(B) Any crime of violence (as defined in section 16 of
title 18, United States Code).
"(C) Any attempt or conspiracy to commit any of the above
offenses.".
SEC. 504. COORDINATION WITH LAW ENFORCEMENT.
(a) Information Acquired From an Electronic Surveillance.--
Section 106 of the Foreign Intelligence Surveillance Act of
1978 (50 U.S.C. 1806), is amended by adding at the end the
following:
"(k)(1) Federal officers who conduct electronic
surveillance to acquire foreign intelligence information
under this title may consult with Federal law enforcement
officers to coordinate efforts to investigate or protect
against--
"(A) actual or potential attack or other grave hostile
acts of a foreign power or an agent of a foreign power;
"(B) sabotage or international terrorism by a foreign
power or an agent of a foreign power; or
"(C) clandestine intelligence activities by an
intelligence service or network of a foreign power or by an
agent of a foreign power.
"(2) Coordination authorized under paragraph (1) shall not
preclude the certification required by section 104(a)(7)(B)
or the entry of an order under section 105.".
(b) Information Acquired From a Physical Search.--Section
305 of the Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1825) is amended by adding at the end the following:
"(k)(1) Federal officers who conduct physical searches to
acquire foreign intelligence information under this title may
consult with Federal law enforcement officers to coordinate
efforts to investigate or protect against--
"(A) actual or potential attack or other grave hostile
acts of a foreign power or an agent of a foreign power;
"(B) sabotage or international terrorism by a foreign
power or an agent of a foreign power; or
"(C) clandestine intelligence activities by an
intelligence service or network of a foreign power or by an
agent of a foreign power.
"(2) Coordination authorized under paragraph (1) shall not
preclude the certification required by section 303(a)(7) or
the entry of an order under section 304.".
SEC. 505. MISCELLANEOUS NATIONAL SECURITY AUTHORITIES.
(a) Telephone Toll and Transactional Records.--Section
2709(b) of title 18, United States Code, is amended--
(1) in the matter preceding paragraph (1), by inserting
"at Bureau headquarters or a Special Agent in Charge in a
Bureau field office designated by the Director" after
"Assistant Director";
(2) in paragraph (1)--
(A) by striking "in a position not lower than Deputy
Assistant Director"; and
(B) by striking "made that" and all that follows and
inserting the following: "made that the name, address,
length of service, and toll billing records sought are
relevant to an authorized investigation to protect against
international terrorism or clandestine intelligence
activities, provided that such an investigation of a United
States person is not conducted solely on the basis of
[[Page H7186]]
activities protected by the first amendment to the
Constitution of the United States; and"; and
(3) in paragraph (2)--
(A) by striking "in a position not lower than Deputy
Assistant Director"; and
(B) by striking "made that" and all that follows and
inserting the following: "made that the information sought
is relevant to an authorized investigation to protect against
international terrorism or clandestine intelligence
activities, provided that such an investigation of a United
States person is not conducted solely upon the basis of
activities protected by the first amendment to the
Constitution of the United States.".
(b) Financial Records.--Section 1114(a)(5)(A) of the Right
to Financial Privacy Act of 1978 (12 U.S.C. 3414(a)(5)(A)) is
amended--
(1) by inserting "in a position not lower than Deputy
Assistant Director at Bureau headquarters or a Special Agent
in Charge in a Bureau field office designated by the
Director" after "designee"; and
(2) by striking "sought" and all that follows and
inserting "sought for foreign counter intelligence purposes
to protect against international terrorism or clandestine
intelligence activities, provided that such an investigation
of a United States person is not conducted solely upon the
basis of activities protected by the first amendment to the
Constitution of the United States.".
(c) Consumer Reports.--Section 624 of the Fair Credit
Reporting Act (15 U.S.C. 1681u) is amended--
(1) in subsection (a)--
(A) by inserting "in a position not lower than Deputy
Assistant Director at Bureau headquarters or a Special Agent
in Charge of a Bureau field office designated by the
Director" after "designee" the first place it appears; and
(B) by striking "in writing that" and all that follows
through the end and inserting the following: "in writing,
that such information is sought for the conduct of an
authorized investigation to protect against international
terrorism or clandestine intelligence activities, provided
that such an investigation of a United States person is not
conducted solely upon the basis of activities protected by
the first amendment to the Constitution of the United
States.";
(2) in subsection (b)--
(A) by inserting "in a position not lower than Deputy
Assistant Director at Bureau headquarters or a Special Agent
in Charge of a Bureau field office designated by the
Director" after "designee" the first place it appears; and
(B) by striking "in writing that" and all that follows
through the end and inserting the following: "in writing
that such information is sought for the conduct of an
authorized investigation to protect against international
terrorism or clandestine intelligence activities, provided
that such an investigation of a United States person is not
conducted solely upon the basis of activities protected by
the first amendment to the Constitution of the United
States."; and
(3) in subsection (c)--
(A) by inserting "in a position not lower than Deputy
Assistant Director at Bureau headquarters or a Special Agent
in Charge in a Bureau field office designated by the
Director" after "designee of the Director"; and
(B) by striking "in camera that" and all that follows
through "States." and inserting the following: "in camera
that the consumer report is sought for the conduct of an
authorized investigation to protect against international
terrorism or clandestine intelligence activities, provided
that such an investigation of a United States person is not
conducted solely upon the basis of activities protected by
the first amendment to the Constitution of the United
States.".
SEC. 506. EXTENSION OF SECRET SERVICE JURISDICTION.
(a) Concurrent Jurisdiction Under 18 U.S.C. 1030.--Section
1030(d) of title 18, United States Code, is amended to read
as follows:
"(d)(1) The United States Secret Service shall, in
addition to any other agency having such authority, have the
authority to investigate offenses under this section.
"(2) The Federal Bureau of Investigation shall have
primary authority to investigate offenses under subsection
(a)(1) for any cases involving espionage, foreign
counterintelligence, information protected against
unauthorized disclosure for reasons of national defense or
foreign relations, or Restricted Data (as that term is
defined in section 11y of the Atomic Energy Act of 1954 (42
U.S.C. 2014(y)), except for offenses affecting the duties of
the United States Secret Service pursuant to section 3056(a)
of this title.
"(3) Such authority shall be exercised in accordance with
an agreement which shall be entered into by the Secretary of
the Treasury and the Attorney General.".
(b) Reauthorization of Jurisdiction under 18 U.S.C. 1344.--
Section 3056(b)(3) of title 18, United States Code, is
amended by striking "credit and debit card frauds, and false
identification documents or devices" and inserting "access
device frauds, false identification documents or devices, and
any fraud or other criminal or unlawful activity in or
against any federally insured financial institution".
SEC. 507. DISCLOSURE OF EDUCATIONAL RECORDS.
Section 444 of the General Education Provisions Act (20
U.S.C. 1232g), is amended by adding after subsection (i) a
new subsection (j) to read as follows:
"(j) Investigation and Prosecution of Terrorism.--
"(1) In general.--Notwithstanding subsections (a) through
(i) or any provision of State law, the Attorney General (or
any Federal officer or employee, in a position not lower than
an Assistant Attorney General, designated by the Attorney
General) may submit a written application to a court of
competent jurisdiction for an ex parte order requiring an
educational agency or institution to permit the Attorney
General (or his designee) to--
"(A) collect education records in the possession of the
educational agency or institution that are relevant to an
authorized investigation or prosecution of an offense listed
in section 2332b(g)(5)(B) of title 18 United States Code, or
an act of domestic or international terrorism as defined in
section 2331 of that title; and
"(B) for official purposes related to the investigation or
prosecution of an offense described in paragraph (1)(A),
retain, disseminate, and use (including as evidence at trial
or in other administrative or judicial proceedings) such
records, consistent with such guidelines as the Attorney
General, after consultation with the Secretary, shall issue
to protect confidentiality.
"(2) Application and approval.--
"(A) In general.--An application under paragraph (1) shall
certify that there are specific and articulable facts giving
reason to believe that the education records are likely to
contain information described in paragraph (1)(A).
"(B) The court shall issue an order described in paragraph
(1) if the court finds that the application for the order
includes the certification described in subparagraph (A).
"(3) Protection of educational agency or institution.--An
educational agency or institution that, in good faith,
produces education records in accordance with an order issued
under this subsection shall not be liable to any person for
that production.
"(4) Record-keeping.--Subsection (b)(4) does not apply to
education records subject to a court order under this
subsection.".
SEC. 508. DISCLOSURE OF INFORMATION FROM NCES SURVEYS.
Section 408 of the National Education Statistics Act of
1994 (20 U.S.C. 9007), is amended by adding after subsection
(b) a new subsection (c) to read as follows:
"(c) Investigation and Prosecution of Terrorism.--
"(1) In General.--Notwithstanding subsections (a) and (b),
the Attorney General (or any Federal officer or employee, in
a position not lower than an Assistant Attorney General,
designated by the Attorney General) may submit a written
application to a court of competent jurisdiction for an ex
parte order requiring the Secretary to permit the Attorney
General (or his designee) to--
"(A) collect reports, records, and information (including
individually identifiable information) in the possession of
the center that are relevant to an authorized investigation
or prosecution of an offense listed in section 2332b(g)(5)(B)
of title 18, United States Code, or an act of domestic or
international terrorism as defined in section 2331 of that
title; and
"(B) for official purposes related to the investigation or
prosecution of an offense described in paragraph (1)(A),
retain, disseminate, and use (including as evidence at trial
or in other administrative or judicial proceedings) such
information, consistent with such guidelines as the Attorney
General, after consultation with the Secretary, shall issue
to protect confidentiality.
"(2) Application and approval.--
"(A) In general.--An application under paragraph (1) shall
certify that there are specific and articulable facts giving
reason to believe that the information sought is described in
paragraph (1)(A).
"(B) The court shall issue an order described in paragraph
(1) if the court finds that the application for the order
includes the certification described in subparagraph (A).
"(3) Protection.--An officer or employee of the Department
who, in good faith, produces information in accordance with
an order issued under this subsection does not violate
subsection (b)(2) and shall not be liable to any person for
that production.".
TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS,
AND THEIR FAMILIES
Subtitle A--Aid to Families of Public Safety Officers
SEC. 611. EXPEDITED PAYMENT FOR PUBLIC SAFETY OFFICERS
INVOLVED IN THE PREVENTION, INVESTIGATION,
RESCUE, OR RECOVERY EFFORTS RELATED TO A
TERRORIST ATTACK.
(a) In General.--Notwithstanding the limitations of
subsection (b) of section 1201 or the provisions of
subsections (c), (d), and (e) of such section or section 1202
of title I of the Omnibus Crime Control and Safe Streets Act
of 1968 (42 U.S.C. 3796, 3796a), upon certification
(containing identification of all eligible payees of benefits
pursuant to section 1201 of such Act) by a public agency that
a public safety officer employed by such agency was killed or
suffered a catastrophic injury producing permanent and total
disability as a direct and proximate result of a personal
injury sustained in the line of duty as described in section
1201 of such Act in connection with prevention,
investigation, rescue, or recovery efforts related to a
terrorist attack, the Director of the Bureau of
[[Page H7187]]
Justice Assistance shall authorize payment to qualified
beneficiaries, said payment to be made not later than 30 days
after receipt of such certification, benefits described under
subpart 1 of part L of such Act (42 U.S.C. 3796 et seq.).
(b) Definitions.--For purposes of this section, the terms
"catastrophic injury", "public agency", and "public
safety officer" have the same meanings given such terms in
section 1204 of title I of the Omnibus Crime Control and Safe
Streets Act of 1968 (42 U.S.C. 3796b).
SEC. 612. TECHNICAL CORRECTION WITH RESPECT TO EXPEDITED
PAYMENTS FOR HEROIC PUBLIC SAFETY OFFICERS.
Section 1 of Public Law 107-37 (an Act to provide for the
expedited payment of certain benefits for a public safety
officer who was killed or suffered a catastrophic injury as a
direct and proximate result of a personal injury sustained in
the line of duty in connection with the terrorist attacks of
September 11, 2001) is amended by--
(1) inserting before "by a" the following: "(containing
identification of all eligible payees of benefits pursuant to
section 1201)";
(2) inserting "producing permanent and total disability"
after "suffered a catastrophic injury"; and
(3) striking "1201(a)" and inserting "1201".
SEC. 613. PUBLIC SAFETY OFFICERS BENEFIT PROGRAM PAYMENT
INCREASE.
(a) Payments.--Section 1201(a) of the Omnibus Crime Control
and Safe Streets Act of 1968 (42 U.S.C. 3796) is amended by
striking "$100,000" and inserting "$250,000".
(b) Applicability.--The amendment made by subsection (a)
shall apply to any death or disability occurring on or after
January 1, 2001.
SEC. 614. OFFICE OF JUSTICE PROGRAMS.
Section 112 of title I of section 101(b) of division A of
Public Law 105-277 and section 108(a) of appendix A of Public
Law 106-113 (113 Stat. 1501A-20) are amended--
(1) after "that Office", each place it occurs, by
inserting "(including, notwithstanding any contrary
provision of law (unless the same should expressly refer to
this section), any organization that administers any program
established in title 1 of Public Law 90-351)"; and
(2) by inserting "functions, including any" after
"all".
Subtitle B--Amendments to the Victims of Crime Act of 1984
SEC. 621. CRIME VICTIMS FUND.
(a) Deposit of Gifts in the Fund.--Section 1402(b) of the
Victims of Crime Act of 1984 (42 U.S.C. 10601(b)) is
amended--
(1) in paragraph (3), by striking "and" at the end;
(2) in paragraph (4), by striking the period at the end and
inserting "; and"; and
(3) by adding at the end the following:
"(5) any gifts, bequests, or donations to the Fund from
private entities or individuals.".
(b) Formula for Fund Distributions.--Section 1402(c) of the
Victims of Crime Act of 1984 (42 U.S.C. 10601(c)) is amended
to read as follows:
"(c) Fund Distribution; Retention of Sums in Fund;
Availability for Expenditure Without Fiscal Year
Limitation.--
"(1) Subject to the availability of money in the Fund, in
each fiscal year, beginning with fiscal year 2003, the
Director shall distribute not less than 90 percent nor more
than 110 percent of the amount distributed from the Fund in
the previous fiscal year, except the Director may distribute
up to 120 percent of the amount distributed in the previous
fiscal year in any fiscal year that the total amount
available in the Fund is more than 2 times the amount
distributed in the previous fiscal year.
"(2) In each fiscal year, the Director shall distribute
amounts from the Fund in accordance with subsection (d). All
sums not distributed during a fiscal year shall remain in
reserve in the Fund to be distributed during a subsequent
fiscal year. Notwithstanding any other provision of law, all
sums deposited in the Fund that are not distributed shall
remain in reserve in the Fund for obligation in future fiscal
years, without fiscal year limitation.".
(c) Allocation of Funds for Costs and Grants.--Section
1402(d)(4) of the Victims of Crime Act of 1984 (42 U.S.C.
10601(d)(4)) is amended--
(1) by striking "deposited in" and inserting "to be
distributed from";
(2) in subparagraph (A), by striking "48.5" and inserting
"47.5";
(3) in subparagraph (B), by striking "48.5" and inserting
"47.5"; and
(4) in subparagraph (C), by striking "3" and inserting
"5".
(d) Antiterrorism Emergency Reserve.--Section 1402(d)(5) of
the Victims of Crime Act of 1984 (42 U.S.C. 10601(d)(5)) is
amended to read as follows:
"(5)(A) In addition to the amounts distributed under
paragraphs (2), (3), and (4), the Director may set aside up
to $50,000,000 from the amounts transferred to the Fund in
response to the airplane hijackings and terrorist acts that
occurred on September 11, 2001, as an antiterrorism emergency
reserve. The Director may replenish any amounts expended from
such reserve in subsequent fiscal years by setting aside up
to 5 percent of the amounts remaining in the Fund in any
fiscal year after distributing amounts under paragraphs (2),
(3) and (4). Such reserve shall not exceed $50,000,000.
"(B) The antiterrorism emergency reserve referred to in
subparagraph (A) may be used for supplemental grants under
section 1404B and to provide compensation to victims of
international terrorism under section 1404C.
"(C) Amounts in the antiterrorism emergency reserve
established pursuant to subparagraph (A) may be carried over
from fiscal year to fiscal year. Notwithstanding subsection
(c) and section 619 of the Departments of Commerce, Justice,
and State, the Judiciary, and Related Agencies Appropriations
Act, 2001 (and any similar limitation on Fund obligations in
any future Act, unless the same should expressly refer to
this section), any such amounts carried over shall not be
subject to any limitation on obligations from amounts
deposited to or available in the Fund.".
(e) Victims of September 11, 2001.--Amounts transferred to
the Crime Victims Fund for use in responding to the airplane
hijackings and terrorist acts (including any related search,
rescue, relief, assistance, or other similar activities) that
occurred on September 11, 2001, shall not be subject to any
limitation on obligations from amounts deposited to or
available in the Fund, notwithstanding--
(1) section 619 of the Departments of Commerce, Justice,
and State, the Judiciary, and Related Agencies Appropriations
Act, 2001, and any similar limitation on Fund obligations in
such Act for Fiscal Year 2002; and
(2) subsections (c) and (d) of section 1402 of the Victims
of Crime Act of 1984 (42 U.S.C. 10601).
SEC. 622. CRIME VICTIM COMPENSATION.
(a) Allocation of Funds for Compensation and Assistance.--
Paragraphs (1) and (2) of section 1403(a) of the Victims of
Crime Act of 1984 (42 U.S.C. 10602(a)) are amended by
inserting "in fiscal year 2002 and of 60 percent in
subsequent fiscal years" after "40 percent".
(b) Location of Compensable Crime.--Section 1403(b)(6)(B)
of the Victims of Crime Act of 1984 (42 U.S.C.
10602(b)(6)(B)) is amended by striking "are outside the
United States (if the compensable crime is terrorism, as
defined in section 2331 of title 18), or".
(c) Relationship of Crime Victim Compensation to Means-
Tested Federal Benefit Programs.--Section 1403 of the Victims
of Crime Act of 1984 (42 U.S.C. 10602) is amended by striking
subsection (c) and inserting the following:
"(c) Exclusion From Income, Resources, and Assets for
Purposes of Means Tests.--Notwithstanding any other law
(other than title IV of Public Law 107-42), for the purpose
of any maximum allowed income, resource, or asset eligibility
requirement in any Federal, State, or local government
program using Federal funds that provides medical or other
assistance (or payment or reimbursement of the cost of such
assistance), any amount of crime victim compensation that the
applicant receives through a crime victim compensation
program under this section shall not be included in the
income, resources, or assets of the applicant, nor shall that
amount reduce the amount of the assistance available to the
applicant from Federal, State, or local government programs
using Federal funds, unless the total amount of assistance
that the applicant receives from all such programs is
sufficient to fully compensate the applicant for losses
suffered as a result of the crime.".
(d) Definitions of "Compensable Crime" and "State".--
Section 1403(d) of the Victims of Crime Act of 1984 (42
U.S.C. 10602(d)) is amended--
(1) in paragraph (3), by striking "crimes involving
terrorism,"; and
(2) in paragraph (4), by inserting "the United States
Virgin Islands," after "the Commonwealth of Puerto Rico,".
(e) Relationship of Eligible Crime Victim Compensation
Programs to the September 11th Victim Compensation Fund.--
(1) In general.--Section 1403(e) of the Victims of Crime
Act of 1984 (42 U.S.C. 10602(e)) is amended by inserting
"including the program established under title IV of Public
Law 107-42," after "Federal program,".
(2) Compensation.--With respect to any compensation payable
under title IV of Public Law 107-42, the failure of a crime
victim compensation program, after the effective date of
final regulations issued pursuant to section 407 of Public
Law 107-42, to provide compensation otherwise required
pursuant to section 1403 of the Victims of Crime Act of 1984
(42 U.S.C. 10602) shall not render that program ineligible
for future grants under the Victims of Crime Act of 1984.
SEC. 623. CRIME VICTIM ASSISTANCE.
(a) Assistance for Victims in the District of Columbia,
Puerto Rico, and Other Territories and Possessions.--Section
1404(a) of the Victims of Crime Act of 1984 (42 U.S.C.
10603(a)) is amended by adding at the end the following:
"(6) An agency of the Federal Government performing local
law enforcement functions in and on behalf of the District of
Columbia, the Commonwealth of Puerto Rico, the United States
Virgin Islands, or any other territory or possession of the
United States may qualify as an eligible crime victim
assistance program for the purpose of grants under this
subsection, or for the purpose of grants under subsection
(c)(1).".
(b) Prohibition on Discrimination Against Certain
Victims.--Section 1404(b)(1) of the Victims of Crime Act of
1984 (42 U.S.C. 10603(b)(1)) is amended--
(1) in subparagraph (D), by striking "and" at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting "; and"; and
(3) by adding at the end the following:
[[Page H7188]]
"(F) does not discriminate against victims because they
disagree with the way the State is prosecuting the criminal
case.".
(c) Grants for Program Evaluation and Compliance Efforts.--
Section 1404(c)(1)(A) of the Victims of Crime Act of 1984 (42
U.S.C. 10603(c)(1)(A)) is amended by inserting ", program
evaluation, compliance efforts," after "demonstration
projects".
(d) Allocation of Discretionary Grants.--Section 1404(c)(2)
of the Victims of Crime Act of 1984 (42 U.S.C. 10603(c)(2))
is amended--
(1) in subparagraph (A), by striking "not more than" and
inserting "not less than"; and
(2) in subparagraph (B), by striking "not less than" and
inserting "not more than".
(e) Fellowships and Clinical Internships.--Section
1404(c)(3) of the Victims of Crime Act of 1984 (42 U.S.C.
10603(c)(3)) is amended--
(1) in subparagraph (C), by striking "and" at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting "; and"; and
(3) by adding at the end the following:
"(E) use funds made available to the Director under this
subsection--
"(i) for fellowships and clinical internships; and
"(ii) to carry out programs of training and special
workshops for the presentation and dissemination of
information resulting from demonstrations, surveys, and
special projects.".
SEC. 624. VICTIMS OF TERRORISM.
(a) Compensation and Assistance to Victims of Domestic
Terrorism.--Section 1404B(b) of the Victims of Crime Act of
1984 (42 U.S.C. 10603b(b)) is amended to read as follows:
"(b) Victims of Terrorism Within the United States.--The
Director may make supplemental grants as provided in section
1402(d)(5) to States for eligible crime victim compensation
and assistance programs, and to victim service organizations,
public agencies (including Federal, State, or local
governments) and nongovernmental organizations that provide
assistance to victims of crime, which shall be used to
provide emergency relief, including crisis response efforts,
assistance, compensation, training and technical assistance,
and ongoing assistance, including during any investigation or
prosecution, to victims of terrorist acts or mass violence
occurring within the United States.".
(b) Assistance to Victims of International Terrorism.--
Section 1404B(a)(1) of the Victims of Crime Act of 1984 (42
U.S.C. 10603b(a)(1)) is amended by striking "who are not
persons eligible for compensation under title VIII of the
Omnibus Diplomatic Security and Antiterrorism Act of 1986".
(c) Compensation to Victims of International Terrorism.--
Section 1404C(b) of the Victims of Crime of 1984 (42 U.S.C.
10603c(b)) is amended by adding at the end the following:
"The amount of compensation awarded to a victim under this
subsection shall be reduced by any amount that the victim
received in connection with the same act of international
terrorism under title VIII of the Omnibus Diplomatic Security
and Antiterrorism Act of 1986.".
TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE
PROTECTION
SEC. 701. EXPANSION OF REGIONAL INFORMATION SHARING SYSTEM TO
FACILITATE FEDERAL-STATE-LOCAL LAW ENFORCEMENT
RESPONSE RELATED TO TERRORIST ATTACKS.
Section 1301 of title I of the Omnibus Crime Control and
Safe Streets Act of 1968 (42 U.S.C. 3796h) is amended--
(1) in subsection (a), by inserting "and terrorist
conspiracies and activities" after "activities";
(2) in subsection (b)--
(A) in paragraph (3), by striking "and" after the
semicolon;
(B) by redesignating paragraph (4) as paragraph (5);
(C) by inserting after paragraph (3) the following:
"(4) establishing and operating secure information sharing
systems to enhance the investigation and prosecution
abilities of participating enforcement agencies in addressing
multi-jurisdictional terrorist conspiracies and activities;
and (5)"; and
(3) by inserting at the end the following:
"(d) Authorization of Appropriation to the Bureau of
Justice Assistance.--There are authorized to be appropriated
to the Bureau of Justice Assistance to carry out this section
$50,000,000 for fiscal year 2002 and $100,000,000 for fiscal
year 2003.".
TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM
SEC. 801. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE
AGAINST MASS TRANSPORTATION SYSTEMS.
Chapter 97 of title 18, United States Code, is amended by
adding at the end the following:
"Sec. 1993. Terrorist attacks and other acts of violence
against mass transportation systems
"(a) General Prohibitions.--Whoever willfully--
"(1) wrecks, derails, sets fire to, or disables a mass
transportation vehicle or ferry;
"(2) places or causes to be placed any biological agent or
toxin for use as a weapon, destructive substance, or
destructive device in, upon, or near a mass transportation
vehicle or ferry, without previously obtaining the permission
of the mass transportation provider, and with intent to
endanger the safety of any passenger or employee of the mass
transportation provider, or with a reckless disregard for the
safety of human life;
"(3) sets fire to, or places any biological agent or toxin
for use as a weapon, destructive substance, or destructive
device in, upon, or near any garage, terminal, structure,
supply, or facility used in the operation of, or in support
of the operation of, a mass transportation vehicle or ferry,
without previously obtaining the permission of the mass
transportation provider, and knowing or having reason to know
such activity would likely derail, disable, or wreck a mass
transportation vehicle or ferry used, operated, or employed
by the mass transportation provider;
"(4) removes appurtenances from, damages, or otherwise
impairs the operation of a mass transportation signal system,
including a train control system, centralized dispatching
system, or rail grade crossing warning signal without
authorization from the mass transportation provider;
"(5) interferes with, disables, or incapacitates any
dispatcher, driver, captain, or person while they are
employed in dispatching, operating, or maintaining a mass
transportation vehicle or ferry, with intent to endanger the
safety of any passenger or employee of the mass
transportation provider, or with a reckless disregard for the
safety of human life;
"(6) commits an act, including the use of a dangerous
weapon, with the intent to cause death or serious bodily
injury to an employee or passenger of a mass transportation
provider or any other person while any of the foregoing are
on the property of a mass transportation provider;
"(7) conveys or causes to be conveyed false information,
knowing the information to be false, concerning an attempt or
alleged attempt being made or to be made, to do any act which
would be a crime prohibited by this subsection; or
"(8) attempts, threatens, or conspires to do any of the
aforesaid acts,
shall be fined under this title or imprisoned not more than
twenty years, or both, if such act is committed, or in the
case of a threat or conspiracy such act would be committed,
on, against, or affecting a mass transportation provider
engaged in or affecting interstate or foreign commerce, or if
in the course of committing such act, that person travels or
communicates across a State line in order to commit such act,
or transports materials across a State line in aid of the
commission of such act.
"(b) Aggravated Offense.--Whoever commits an offense under
subsection (a) in a circumstance in which--
"(1) the mass transportation vehicle or ferry was carrying
a passenger at the time of the offense; or
"(2) the offense has resulted in the death of any person,
shall be guilty of an aggravated form of the offense and
shall be fined under this title or imprisoned for a term of
years or for life, or both.
"(c) Definitions.--In this section--
"(1) the term `biological agent' has the meaning given to
that term in section 178(1) of this title;
"(2) the term `dangerous weapon' has the meaning given to
that term in section 930 of this title;
"(3) the term `destructive device' has the meaning given
to that term in section 921(a)(4) of this title;
"(4) the term `destructive substance' has the meaning
given to that term in section 31 of this title;
"(5) the term `mass transportation' has the meaning given
to that term in section 5302(a)(7) of title 49, United States
Code, except that the term shall include schoolbus, charter,
and sightseeing transportation;
"(6) the term `serious bodily injury' has the meaning
given to that term in section 1365 of this title;
"(7) the term `State' has the meaning given to that term
in section 2266 of this title; and
"(8) the term `toxin' has the meaning given to that term
in section 178(2) of this title.".
(f) Conforming Amendment.--The analysis of chapter 97 of
title 18, United States Code, is amended by adding at the
end:
"1993. Terrorist attacks and other acts of violence against mass
transportation systems.".
SEC. 802. DEFINITION OF DOMESTIC TERRORISM.
(a) Domestic Terrorism Defined.--Section 2331 of title 18,
United States Code, is amended--
(1) in paragraph (1)(B)(iii), by striking "by
assassination or kidnapping" and inserting "by mass
destruction, assassination, or kidnapping";
(2) in paragraph (3), by striking "and";
(3) in paragraph (4), by striking the period at the end and
inserting "; and"; and
(4) by adding at the end the following:
"(5) the term `domestic terrorism' means activities that--
"(A) involve acts dangerous to human life that are a
violation of the criminal laws of the United States or of any
State;
"(B) appear 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 mass
destruction, assassination, or kidnapping; and
[[Page H7189]]
"(C) occur primarily within the territorial jurisdiction
of the United States.".
(b) Conforming Amendment.--Section 3077(1) of title 18,
United States Code, is amended to read as follows:
"(1) `act of terrorism' means an act of domestic or
international terrorism as defined in section 2331;".
SEC. 803. PROHIBITION AGAINST HARBORING TERRORISTS.
(a) In General.--Chapter 113B of title 18, United States
Code, is amended by adding after section 2338 the following
new section:
"Sec. 2339. Harboring or concealing terrorists
"(a) Whoever harbors or conceals any person who he knows,
or has reasonable grounds to believe, has committed, or is
about to commit, an offense under section 32 (relating to
destruction of aircraft or aircraft facilities), section 175
(relating to biological weapons), section 229 (relating to
chemical weapons), section 831 (relating to nuclear
materials), paragraph (2) or (3) of section 844(f) (relating
to arson and bombing of government property risking or
causing injury or death), section 1366(a) (relating to the
destruction of an energy facility), section 2280 (relating to
violence against maritime navigation), section 2332a
(relating to weapons of mass destruction), or section 2332b
(relating to acts of terrorism transcending national
boundaries) of this title, section 236(a) (relating to
sabotage of nuclear facilities or fuel) of the Atomic Energy
Act of 1954 (42 U.S.C. 2284(a)), or section 46502 (relating
to aircraft piracy) of title 49, shall be fined under this
title or imprisoned not more than ten years, or both.".
"(b) A violation of this section may be prosecuted in any
Federal judicial district in which the underlying offense was
committed, or in any other Federal judicial district as
provided by law.".
(b) Technical Amendment.--The chapter analysis for chapter
113B of title 18, United States Code, is amended by inserting
after the item for section 2338 the following:
"2339. Harboring or concealing terrorists.".
SEC. 804. JURISDICTION OVER CRIMES COMMITTED AT U.S.
FACILITIES ABROAD.
Section 7 of title 18, United States Code, is amended by
adding at the end the following:
"(9) With respect to offenses committed by or against a
national of the United States as that term is used in section
101 of the Immigration and Nationality Act--
"(A) the premises of United States diplomatic, consular,
military or other United States Government missions or
entities in foreign States, including the buildings, parts of
buildings, and land appurtenant or ancillary thereto or used
for purposes of those missions or entities, irrespective of
ownership; and
"(B) residences in foreign States and the land appurtenant
or ancillary thereto, irrespective of ownership, used for
purposes of those missions or entities or used by United
States personnel assigned to those missions or entities.
Nothing in this paragraph shall be deemed to supersede any
treaty or international agreement with which this paragraph
conflicts. This paragraph does not apply with respect to an
offense committed by a person described in section 3261(a) of
this title.".
SEC. 805. MATERIAL SUPPORT FOR TERRORISM.
(a) In General.--Section 2339A of title 18, United States
Code, is amended--
(1) in subsection (a)--
(A) by striking ", within the United States,";
(B) by inserting "229," after "175,";
(C) by inserting "1993," after "1992,";
(D) by inserting ", section 236 of the Atomic Energy Act
of 1954 (42 U.S.C. 2284)," after "of this title";
(E) by inserting "or 60123(b)" after "46502"; and
(F) by inserting at the end the following: "A violation of
this section may be prosecuted in any Federal judicial
district in which the underlying offense was committed, or in
any other Federal judicial district as provided by law.";
and
(2) in subsection (b)--
(A) by striking "or other financial securities" and
inserting "or monetary instruments or financial
securities"; and
(B) by inserting "expert advice or assistance," after
"training,".
(b) Technical Amendment.--Section 1956(c)(7)(D) of title
18, United States Code, is amended by inserting "or 2339B"
after "2339A".
SEC. 806. ASSETS OF TERRORIST ORGANIZATIONS.
Section 981(a)(1) of title 18, United States Code, is
amended by inserting at the end the following:
"(G) All assets, foreign or domestic--
"(i) of any individual, entity, or organization engaged in
planning or perpetrating any act of domestic or international
terrorism (as defined in section 2331) against the United
States, citizens or residents of the United States, or their
property, and all assets, foreign or domestic, affording any
person a source of influence over any such entity or
organization;
"(ii) acquired or maintained by any person with the intent
and for the purpose of supporting, planning, conducting, or
concealing an act of domestic or international terrorism (as
defined in section 2331) against the United States, citizens
or residents of the United States, or their property; or
"(iii) derived from, involved in, or used or intended to
be used to commit any act of domestic or international
terrorism (as defined in section 2331) against the United
States, citizens or residents of the United States, or their
property.".
SEC. 807. TECHNICAL CLARIFICATION RELATING TO PROVISION OF
MATERIAL SUPPORT TO TERRORISM.
No provision of the Trade Sanctions Reform and Export
Enhancement Act of 2000 (title IX of Public Law 106-387)
shall be construed to limit or otherwise affect section 2339A
or 2339B of title 18, United States Code.
SEC. 808. DEFINITION OF FEDERAL CRIME OF TERRORISM.
Section 2332b of title 18, United States Code, is amended--
(1) in subsection (f), by inserting "and any violation of
section 351(e), 844(e), 844(f)(1), 956(b), 1361, 1366(b),
1366(c), 1751(e), 2152, or 2156 of this title," before "and
the Secretary"; and
(2) in subsection (g)(5)(B), by striking clauses (i)
through (iii) and inserting the following:
"(i) section 32 (relating to destruction of aircraft or
aircraft facilities), 37 (relating to violence at
international airports), 81 (relating to arson within special
maritime and territorial jurisdiction), 175 or 175b (relating
to biological weapons), 229 (relating to chemical weapons),
subsection (a), (b), (c), or (d) of section 351 (relating to
congressional, cabinet, and Supreme Court assassination and
kidnaping), 831 (relating to nuclear materials), 842(m) or
(n) (relating to plastic explosives), 844(f)(2) or (3)
(relating to arson and bombing of Government property risking
or causing death), 844(i) (relating to arson and bombing of
property used in interstate commerce), 930(c) (relating to
killing or attempted killing during an attack on a Federal
facility with a dangerous weapon), 956(a)(1) (relating to
conspiracy to murder, kidnap, or maim persons abroad),
1030(a)(1) (relating to protection of computers),
1030(a)(5)(A)(i) resulting in damage as defined in
1030(a)(5)(B)(ii) through (v) (relating to protection of
computers), 1114 (relating to killing or attempted killing of
officers and employees of the United States), 1116 (relating
to murder or manslaughter of foreign officials, official
guests, or internationally protected persons), 1203 (relating
to hostage taking), 1362 (relating to destruction of
communication lines, stations, or systems), 1363 (relating to
injury to buildings or property within special maritime and
territorial jurisdiction of the United States), 1366(a)
(relating to destruction of an energy facility), 1751(a),
(b), (c), or (d) (relating to Presidential and Presidential
staff assassination and kidnaping), 1992 (relating to
wrecking trains), 1993 (relating to terrorist attacks and
other acts of violence against mass transportation systems),
2155 (relating to destruction of national defense materials,
premises, or utilities), 2280 (relating to violence against
maritime navigation), 2281 (relating to violence against
maritime fixed platforms), 2332 (relating to certain
homicides and other violence against United States nationals
occurring outside of the United States), 2332a (relating to
use of weapons of mass destruction), 2332b (relating to acts
of terrorism transcending national boundaries), 2339
(relating to harboring terrorists), 2339A (relating to
providing material support to terrorists), 2339B (relating to
providing material support to terrorist organizations), or
2340A (relating to torture) of this title;
"(ii) section 236 (relating to sabotage of nuclear
facilities or fuel) of the Atomic Energy Act of 1954 (42
U.S.C. 2284); or
"(iii) section 46502 (relating to aircraft piracy), the
second sentence of section 46504 (relating to assault on a
flight crew with a dangerous weapon), section 46505(b)(3) or
(c) (relating to explosive or incendiary devices, or
endangerment of human life by means of weapons, on aircraft),
section 46506 if homicide or attempted homicide is involved
(relating to application of certain criminal laws to acts on
aircraft), or section 60123(b) (relating to destruction of
interstate gas or hazardous liquid pipeline facility) of
title 49.".
SEC. 809. NO STATUTE OF LIMITATION FOR CERTAIN TERRORISM
OFFENSES.
(a) In General.--Section 3286 of title 18, United States
Code, is amended to read as follows:
"Sec. 3286. Extension of statute of limitation for certain
terrorism offenses
"(a) Eight-Year Limitation.--Notwithstanding section 3282,
no person shall be prosecuted, tried, or punished for any
noncapital offense involving a violation of any provision
listed in section 2332b(g)(5)(B), or a violation of section
112, 351(e), 1361, or 1751(e) of this title, or section
46504, 46505, or 46506 of title 49, unless the indictment is
found or the information is instituted within 8 years after
the offense was committed. Notwithstanding the preceding
sentence, offenses listed in section 3295 are subject to the
statute of limitations set forth in that section.
"(b) No Limitation.--Notwithstanding any other law, an
indictment may be found or an information instituted at any
time without limitation for any offense listed in section
2332b(g)(5)(B), if the commission of such offense resulted
in, or created a forseeable risk of, death or serious bodily
injury to another person.".
(b) Application.--The amendments made by this section shall
apply to the prosecution of any offense committed before, on,
or after the date of the enactment of this section.
SEC. 810. ALTERNATE MAXIMUM PENALTIES FOR TERRORISM OFFENSES.
(a) Arson.--Section 81 of title 18, United States Code, is
amended in the second undesignated paragraph by striking
"not more
[[Page H7190]]
than twenty years" and inserting "for any term of years or
for life".
(b) Destruction of an Energy Facility.--Section 1366 of
title 18, United States Code, is amended--
(1) in subsection (a), by striking "ten" and inserting
"20"; and
(2) by adding at the end the following:
"(d) Whoever is convicted of a violation of subsection (a)
or (b) that has resulted in the death of any person shall be
subject to imprisonment for any term of years or life.".
(c) Material Support to Terrorists.--Section 2339A(a) of
title 18, United States Code, is amended--
(1) by striking "10" and inserting "15"; and
(2) by striking the period and inserting ", and, if the
death of any person results, shall be imprisoned for any term
of years or for life.".
(d) Material Support to Designated Foreign Terrorist
Organizations.--Section 2339B(a)(1) of title 18, United
States Code, is amended--
(1) by striking "10" and inserting "15"; and
(2) by striking the period after "or both" and inserting
", and, if the death of any person results, shall be
imprisoned for any term of years or for life.".
(e) Destruction of National-Defense Materials.--Section
2155(a) of title 18, United States Code, is amended--
(1) by striking "ten" and inserting "20"; and
(2) by striking the period at the end and inserting ",
and, if death results to any person, shall be imprisoned for
any term of years or for life.".
(f) Sabotage of Nuclear Facilities or Fuel.--Section 236 of
the Atomic Energy Act of 1954 (42 U.S.C. 2284), is amended--
(1) by striking "ten" each place it appears and inserting
"20";
(2) in subsection (a), by striking the period at the end
and inserting ", and, if death results to any person, shall
be imprisoned for any term of years or for life."; and
(3) in subsection (b), by striking the period at the end
and inserting ", and, if death results to any person, shall
be imprisoned for any term of years or for life.".
(g) Special Aircraft Jurisdiction of the United States.--
Section 46505(c) of title 49, United States Code, is
amended--
(1) by striking "15" and inserting "20"; and
(2) by striking the period at the end and inserting ",
and, if death results to any person, shall be imprisoned for
any term of years or for life.".
(h) Damaging or Destroying an Interstate Gas or Hazardous
Liquid Pipeline Facility.--Section 60123(b) of title 49,
United States Code, is amended--
(1) by striking "15" and inserting "20"; and
(2) by striking the period at the end and inserting ",
and, if death results to any person, shall be imprisoned for
any term of years or for life.".
SEC. 811. PENALTIES FOR TERRORIST CONSPIRACIES.
(a) Arson.--Section 81 of title 18, United States Code, is
amended in the first undesignated paragraph--
(1) by striking ", or attempts to set fire to or burn";
and
(2) by inserting "or attempts or conspires to do such an
act," before "shall be imprisoned".
(b) Killings in Federal Facilities.--Section 930(c) of
title 18, United States Code, is amended--
(1) by striking "or attempts to kill";
(2) by inserting "or attempts or conspires to do such an
act," before "shall be punished"; and
(3) by striking "and 1113" and inserting "1113, and
1117".
(c) Communications Lines, Stations, or Systems.--Section
1362 of title 18, United States Code, is amended in the first
undesignated paragraph--
(1) by striking "or attempts willfully or maliciously to
injure or destroy"; and
(2) by inserting "or attempts or conspires to do such an
act," before "shall be fined".
(d) Buildings or Property Within Special Maritime and
Territorial Jurisdiction.--Section 1363 of title 18, United
States Code, is amended--
(1) by striking "or attempts to destroy or injure"; and
(2) by inserting "or attempts or conspires to do such an
act," before "shall be fined" the first place it appears.
(e) Wrecking Trains.--Section 1992 of title 18, United
States Code, is amended by adding at the end the following:
"(c) A person who conspires to commit any offense defined
in this section shall be subject to the same penalties (other
than the penalty of death) as the penalties prescribed for
the offense, the commission of which was the object of the
conspiracy.".
(f) Material Support to Terrorists.--Section 2339A of title
18, United States Code, is amended by inserting "or attempts
or conspires to do such an act," before "shall be fined".
(g) Torture.--Section 2340A of title 18, United States
Code, is amended by adding at the end the following:
"(c) Conspiracy.--A person who conspires to commit an
offense under this section shall be subject to the same
penalties (other than the penalty of death) as the penalties
prescribed for the offense, the commission of which was the
object of the conspiracy.".
(h) Sabotage of Nuclear Facilities or Fuel.--Section 236 of
the Atomic Energy Act of 1954 (42 U.S.C. 2284), is amended--
(1) in subsection (a)--
(A) by striking ", or who intentionally and willfully
attempts to destroy or cause physical damage to";
(B) in paragraph (4), by striking the period at the end and
inserting a comma; and
(C) by inserting "or attempts or conspires to do such an
act," before "shall be fined"; and
(2) in subsection (b)--
(A) by striking "or attempts to cause"; and
(B) by inserting "or attempts or conspires to do such an
act," before "shall be fined".
(i) Interference with Flight Crew Members and Attendants.--
Section 46504 of title 49, United States Code, is amended by
inserting "or attempts or conspires to do such an act,"
before "shall be fined".
(j) Special Aircraft Jurisdiction of the United States.--
Section 46505 of title 49, United States Code, is amended by
adding at the end the following:
"(e) Conspiracy.--If two or more persons conspire to
violate subsection (b) or (c), and one or more of such
persons do any act to effect the object of the conspiracy,
each of the parties to such conspiracy shall be punished as
provided in such subsection.".
(k) Damaging or Destroying an Interstate Gas or Hazardous
Liquid Pipeline Facility.--Section 60123(b) of title 49,
United States Code, is amended--
(1) by striking ", or attempting to damage or destroy,";
and
(2) by inserting ", or attempting or conspiring to do such
an act," before "shall be fined".
SEC. 812. POST-RELEASE SUPERVISION OF TERRORISTS.
Section 3583 of title 18, United States Code, is amended by
adding at the end the following:
"(j) Supervised Release Terms for Terrorism Predicates.--
Notwithstanding subsection (b), the authorized term of
supervised release for any offense listed in section
2332b(g)(5)(B), the commission of which resulted in, or
created a foreseeable risk of, death or serious bodily injury
to another person, is any term of years or life.".
SEC. 813. INCLUSION OF ACTS OF TERRORISM AS RACKETEERING
ACTIVITY.
Section 1961(1) of title 18, United States Code, is
amended--
(1) by striking "or (F)" and inserting "(F)"; and
(2) by inserting before the semicolon at the end the
following: ", or (G) any act that is indictable under any
provision listed in section 2332b(g)(5)(B)".
SEC. 814. DETERRENCE AND PREVENTION OF CYBERTERRORISM.
(a) Clarification of Protection of Protected Computers.--
Section 1030(a)(5) of title 18, United States Code, is
amended--
(1) by inserting "(i)" after "(A)";
(2) by redesignating subparagraphs (B) and (C) as clauses
(ii) and (iii), respectively;
(3) by adding "and" at the end of clause (iii), as so
redesignated; and
(4) by adding at the end the following:
"(B) by conduct described in clause (i), (ii), or (iii) of
subparagraph (A), caused (or, in the case of an attempted
offense, would, if completed, have caused)--
"(i) loss to 1 or more persons during any 1-year period
(and, for purposes of an investigation, prosecution, or other
proceeding brought by the United States only, loss resulting
from a related course of conduct affecting 1 or more other
protected computers) aggregating at least $5,000 in value;
"(ii) the modification or impairment, or potential
modification or impairment, of the medical examination,
diagnosis, treatment, or care of 1 or more individuals;
"(iii) physical injury to any person;
"(iv) a threat to public health or safety; or
"(v) damage affecting a computer system used by or for a
government entity in furtherance of the administration of
justice, national defense, or national security;".
(b) Protection From Extortion.--Section 1030(a)(7) of title
18, United States Code, is amended by striking ", firm,
association, educational institution, financial institution,
government entity, or other legal entity,".
(c) Penalties.--Section 1030(c) of title 18, United States
Code, is amended--
(1) in paragraph (2)--
(A) in subparagraph (A) --
(i) by inserting "except as provided in subparagraph
(B)," before "a fine";
(ii) by striking "(a)(5)(C)" and inserting
"(a)(5)(A)(iii)"; and
(iii) by striking "and' at the end;
(B) in subparagraph (B), by inserting "or an attempt to
commit an offense punishable under this subparagraph," after
"subsection (a)(2)," in the matter preceding clause (i);
and
(C) in subparagraph (C), by striking "and" at the end;
(2) in paragraph (3)--
(A) by striking ", (a)(5)(A), (a)(5)(B)," both places it
appears; and
(B) by striking "(a)(5)(C)" and inserting
"(a)(5)(A)(iii)"; and
(3) by adding at the end the following:
"(4)(A) a fine under this title, imprisonment for not more
than 10 years, or both, in the case of an offense under
subsection (a)(5)(A)(i), or an attempt to commit an offense
punishable under that subsection;
"(B) a fine under this title, imprisonment for not more
than 5 years, or both, in the case of an offense under
subsection (a)(5)(A)(ii), or an attempt to commit an offense
punishable under that subsection;
"(C) a fine under this title, imprisonment for not more
than 20 years, or both, in the case of an offense under
subsection
[[Page H7191]]
(a)(5)(A)(i) or (a)(5)(A)(ii), or an attempt to commit an
offense punishable under either subsection, that occurs after
a conviction for another offense under this section.".
(d) Definitions.--Section 1030(e) of title 18, United
States Code is amended--
(1) in paragraph (2)(B), by inserting ", including a
computer located outside the United States that is used in a
manner that affects interstate or foreign commerce or
communication of the United States" before the semicolon;
(2) in paragraph (7), by striking "and" at the end;
(3) by striking paragraph (8) and inserting the following:
"(8) the term `damage' means any impairment to the
integrity or availability of data, a program, a system, or
information;";
(4) in paragraph (9), by striking the period at the end and
inserting a semicolon; and
(5) by adding at the end the following:
"(10) the term `conviction' shall include a conviction
under the law of any State for a crime punishable by
imprisonment for more than 1 year, an element of which is
unauthorized access, or exceeding authorized access, to a
computer;
"(11) the term `loss' means any reasonable cost to any
victim, including the cost of responding to an offense,
conducting a damage assessment, and restoring the data,
program, system, or information to its condition prior to the
offense, and any revenue lost, cost incurred, or other
consequential damages incurred because of interruption of
service; and
"(12) the term `person' means any individual, firm,
corporation, educational institution, financial institution,
governmental entity, or legal or other entity.".
(e) Damages in Civil Actions.--Section 1030(g) of title 18,
United States Code is amended--
(1) by striking the second sentence and inserting the
following: "A civil action for a violation of this section
may be brought only if the conduct involves 1 of the factors
set forth in clause (i), (ii), (iii), (iv), or (v) of
subsection (a)(5)(B). Damages for a violation involving only
conduct described in subsection (a)(5)(B)(i) are limited to
economic damages."; and
(2) by adding at the end the following: "No action may be
brought under this subsection for the negligent design or
manufacture of computer hardware, computer software, or
firmware.".
(f) Amendment of Sentencing Guidelines Relating to Certain
Computer Fraud and Abuse.--Pursuant to its authority under
section 994(p) of title 28, United States Code, the United
States Sentencing Commission shall amend the Federal
sentencing guidelines to ensure that any individual convicted
of a violation of section 1030 of title 18, United States
Code, can be subjected to appropriate penalties, without
regard to any mandatory minimum term of imprisonment.
SEC. 815. ADDITIONAL DEFENSE TO CIVIL ACTIONS RELATING TO
PRESERVING RECORDS IN RESPONSE TO GOVERNMENT
REQUESTS.
Section 2707(e)(1) of title 18, United States Code, is
amended by inserting after "or statutory authorization" the
following: "(including a request of a governmental entity
under section 2703(f) of this title)".
SEC. 816. DEVELOPMENT AND SUPPORT OF CYBERSECURITY FORENSIC
CAPABILITIES.
(a) In General.--The Attorney General shall establish such
regional computer forensic laboratories as the Attorney
General considers appropriate, and provide support to
existing computer forensic laboratories, in order that all
such computer forensic laboratories have the capability--
(1) to provide forensic examinations with respect to seized
or intercepted computer evidence relating to criminal
activity (including cyberterrorism);
(2) to provide training and education for Federal, State,
and local law enforcement personnel and prosecutors regarding
investigations, forensic analyses, and prosecutions of
computer-related crime (including cyberterrorism);
(3) to assist Federal, State, and local law enforcement in
enforcing Federal, State, and local criminal laws relating to
computer-related crime;
(4) to facilitate and promote the sharing of Federal law
enforcement expertise and information about the
investigation, analysis, and prosecution of computer-related
crime with State and local law enforcement personnel and
prosecutors, including the use of multijurisdictional task
forces; and
(5) to carry out such other activities as the Attorney
General considers appropriate.
(b) Authorization of Appropriations.--
(1) Authorization.--There is hereby authorized to be
appropriated in each fiscal year $50,000,000 for purposes of
carrying out this section.
(2) Availability.--Amounts appropriated pursuant to the
authorization of appropriations in paragraph (1) shall remain
available until expended.
SEC. 817. EXPANSION OF THE BIOLOGICAL WEAPONS STATUTE.
Chapter 10 of title 18, United States Code, is amended--
(1) in section 175--
(A) in subsection (b)--
(i) by striking "does not include" and inserting
"includes";
(ii) by inserting "other than" after "system for"; and
(iii) by inserting "bona fide research" after
"protective";
(B) by redesignating subsection (b) as subsection (c); and
(C) by inserting after subsection (a) the following:
"(b) Additional Offense.--Whoever knowingly possesses any
biological agent, toxin, or delivery system of a type or in a
quantity that, under the circumstances, is not reasonably
justified by a prophylactic, protective, bona fide research,
or other peaceful purpose, shall be fined under this title,
imprisoned not more than 10 years, or both. In this
subsection, the terms `biological agent' and `toxin' do not
encompass any biological agent or toxin that is in its
naturally occurring environment, if the biological agent or
toxin has not been cultivated, collected, or otherwise
extracted from its natural source.";
(2) by inserting after section 175a the following:
"SEC. 175B. POSSESSION BY RESTRICTED PERSONS.
"(a) No restricted person described in subsection (b)
shall ship or transport interstate or foreign commerce, or
possess in or affecting commerce, any biological agent or
toxin, or receive any biological agent or toxin that has been
shipped or transported in interstate or foreign commerce, if
the biological agent or toxin is listed as a select agent in
subsection (j) of section 72.6 of title 42, Code of Federal
Regulations, pursuant to section 511(d)(l) of the
Antiterrorism and Effective Death Penalty Act of 1996 (Public
Law 104-132), and is not exempted under subsection (h) of
such section 72.6, or appendix A of part 72 of the Code of
Regulations.
"(b) In this section:
"(1) The term `select agent' does not include any such
biological agent or toxin that is in its naturally-occurring
environment, if the biological agent or toxin has not been
cultivated, collected, or otherwise extracted from its
natural source.
"(2) The term `restricted person' means an individual
who--
"(A) is under indictment for a crime punishable by
imprisonment for a term exceeding 1 year;
"(B) has been convicted in any court of a crime punishable
by imprisonment for a term exceeding 1 year;
"(C) is a fugitive from justice;
"(D) is an unlawful user of any controlled substance (as
defined in section 102 of the Controlled Substances Act (21
U.S.C. 802));
"(E) is an alien illegally or unlawfully in the United
States;
"(F) has been adjudicated as a mental defective or has
been committed to any mental institution;
"(G) is an alien (other than an alien lawfully admitted
for permanent residence) who is a national of a country as to
which the Secretary of State, pursuant to section 6(j) of the
Export Administration Act of 1979 (50 U.S.C. App. 2405(j)),
section 620A of chapter 1 of part M of the Foreign Assistance
Act of 1961 (22 U.S.C. 2371), or section 40(d) of chapter 3
of the Arms Export Control Act (22 U.S.C. 2780(d)), has made
a determination (that remains in effect) that such country
has repeatedly provided support for acts of international
terrorism; or
"(H) has been discharged from the Armed Services of the
United States under dishonorable conditions.
"(3) The term `alien' has the same meaning as in section
1010(a)(3) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(3)).
"(4) The term `lawfully admitted for permanent residence'
has the same meaning as in section 101(a)(20) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(20)).
"(c) Whoever knowingly violates this section shall be
fined as provided in this title, imprisoned not more than 10
years, or both, but the prohibition contained in this section
shall not apply with respect to any duly authorized United
States governmental activity."; and
(3) in the chapter analysis, by inserting after the item
relating to section 175a the following:
"175b. Possession by restricted persons.".
TITLE IX--IMPROVED INTELLIGENCE
SEC. 901. RESPONSIBILITIES OF DIRECTOR OF CENTRAL
INTELLIGENCE REGARDING FOREIGN INTELLIGENCE
COLLECTED UNDER FOREIGN INTELLIGENCE
SURVEILLANCE ACT OF 1978.
Section 103(c) of the National Security Act of 1947 (50
U.S.C. 403-3(c)) is amended--
(1) by redesignating paragraphs (6) and (7) as paragraphs
(7) and (8), respectively; and
(2) by inserting after paragraph (5) the following new
paragraph (6):
"(6) establish requirements and priorities for foreign
intelligence information to be collected under the Foreign
Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et
seq.), and provide assistance to the Attorney General to
ensure that information derived from electronic surveillance
or physical searches under that Act is disseminated so it may
be used efficiently and effectively for foreign intelligence
purposes, except that the Director shall have no authority to
direct, manage, or undertake electronic surveillance or
physical search operations pursuant to that Act unless
otherwise authorized by statute or executive order;".
SEC. 902. INCLUSION OF INTERNATIONAL TERRORIST ACTIVITIES
WITHIN SCOPE OF FOREIGN INTELLIGENCE UNDER
NATIONAL SECURITY ACT OF 1947.
Section 3 of the National Security Act of 1947 (50 U.S.C.
401a) is amended--
(1) in paragraph (2), by inserting before the period the
following: ", or international terrorist activities"; and
[[Page H7192]]
(2) in paragraph (3), by striking "and activities
conducted" and inserting ", and activities conducted,".
SEC. 903. SENSE OF CONGRESS ON THE ESTABLISHMENT AND
MAINTENANCE OF INTELLIGENCE RELATIONSHIPS TO
ACQUIRE INFORMATION ON TERRORISTS AND TERRORIST
ORGANIZATIONS.
It is the sense of Congress that officers and employees of
the intelligence community of the Federal Government, acting
within the course of their official duties, should be
encouraged, and should make every effort, to establish and
maintain intelligence relationships with any person, entity,
or group for the purpose of engaging in lawful intelligence
activities, including the acquisition of information on the
identity, location, finances, affiliations, capabilities,
plans, or intentions of a terrorist or terrorist
organization, or information on any other person, entity, or
group (including a foreign government) engaged in harboring,
comforting, financing, aiding, or assisting a terrorist or
terrorist organization.
SEC. 904. TEMPORARY AUTHORITY TO DEFER SUBMITTAL TO CONGRESS
OF REPORTS ON INTELLIGENCE AND INTELLIGENCE-
RELATED MATTERS.
(a) Authority To Defer.--The Secretary of Defense, Attorney
General, and Director of Central Intelligence each may,
during the effective period of this section, defer the date
of submittal to Congress of any covered intelligence report
under the jurisdiction of such official until February 1,
2002.
(b) Covered Intelligence Report.--Except as provided in
subsection (c), for purposes of subsection (a), a covered
intelligence report is as follows:
(1) Any report on intelligence or intelligence-related
activities of the United States Government that is required
to be submitted to Congress by an element of the intelligence
community during the effective period of this section.
(2) Any report or other matter that is required to be
submitted to the Select Committee on Intelligence of the
Senate and Permanent Select Committee on Intelligence of the
House of Representatives by the Department of Defense or the
Department of Justice during the effective period of this
section.
(c) Exception for Certain Reports.--For purposes of
subsection (a), any report required by section 502 or 503 of
the National Security Act of 1947 (50 U.S.C. 413a, 413b) is
not a covered intelligence report.
(d) Notice to Congress.--Upon deferring the date of
submittal to Congress of a covered intelligence report under
subsection (a), the official deferring the date of submittal
of the covered intelligence report shall submit to Congress
notice of the deferral. Notice of deferral of a report shall
specify the provision of law, if any, under which the report
would otherwise be submitted to Congress.
(e) Extension of Deferral.--(1) Each official specified in
subsection (a) may defer the date of submittal to Congress of
a covered intelligence report under the jurisdiction of such
official to a date after February 1, 2002, if such official
submits to the committees of Congress specified in subsection
(b)(2) before February 1, 2002, a certification that
preparation and submittal of the covered intelligence report
on February 1, 2002, will impede the work of officers or
employees who are engaged in counterterrorism activities.
(2) A certification under paragraph (1) with respect to a
covered intelligence report shall specify the date on which
the covered intelligence report will be submitted to
Congress.
(f) Effective Period.--The effective period of this section
is the period beginning on the date of the enactment of this
Act and ending on February 1, 2002.
(g) Element of the Intelligence Community Defined.--In this
section, the term "element of the intelligence community"
means any element of the intelligence community specified or
designated under section 3(4) of the National Security Act of
1947 (50 U.S.C. 401a(4)).
SEC. 905. DISCLOSURE TO DIRECTOR OF CENTRAL INTELLIGENCE OF
FOREIGN INTELLIGENCE-RELATED INFORMATION WITH
RESPECT TO CRIMINAL INVESTIGATIONS.
(a) In General.--Title I of the National Security Act of
1947 (50 U.S.C. 402 et seq.) is amended--
(1) by redesignating subsection 105B as section 105C; and
(2) by inserting after section 105A the following new
section 105B:
"disclosure of foreign intelligence acquired in criminal
investigations; notice of criminal investigations of foreign
intelligence sources
"Sec. 105B. (a) Disclosure of Foreign Intelligence.--(1)
Except as otherwise provided by law and subject to paragraph
(2), the Attorney General, or the head of any other
department or agency of the Federal Government with law
enforcement responsibilities, shall expeditiously disclose to
the Director of Central Intelligence, pursuant to guidelines
developed by the Attorney General in consultation with the
Director, foreign intelligence acquired by an element of the
Department of Justice or an element of such department or
agency, as the case may be, in the course of a criminal
investigation.
"(2) The Attorney General by regulation and in
consultation with the Director of Central Intelligence may
provide for exceptions to the applicability of paragraph (1)
for one or more classes of foreign intelligence, or foreign
intelligence with respect to one or more targets or matters,
if the Attorney General determines that disclosure of such
foreign intelligence under that paragraph would jeopardize an
ongoing law enforcement investigation or impair other
significant law enforcement interests.
"(b) Procedures for Notice of Criminal Investigations.--
Not later than 180 days after the date of enactment of this
section, the Attorney General, in consultation with the
Director of Central Intelligence, shall develop guidelines to
ensure that after receipt of a report from an element of the
intelligence community of activity of a foreign intelligence
source or potential foreign intelligence source that may
warrant investigation as criminal activity, the Attorney
General provides notice to the Director of Central
Intelligence, within a reasonable period of time, of his
intention to commence, or decline to commence, a criminal
investigation of such activity.
"(c) Procedures.--The Attorney General shall develop
procedures for the administration of this section, including
the disclosure of foreign intelligence by elements of the
Department of Justice, and elements of other departments and
agencies of the Federal Government, under subsection (a) and
the provision of notice with respect to criminal
investigations under subsection (b).".
(b) Clerical Amendment.--The table of contents in the first
section of that Act is amended by striking the item relating
to section 105B and inserting the following new items:
"Sec. 105B. Disclosure of foreign intelligence acquired in criminal
investigations; notice of criminal investigations of
foreign intelligence sources.
"Sec. 105C. Protection of the operational files of the National
Imagery and Mapping Agency.".
SEC. 906. FOREIGN TERRORIST ASSET TRACKING CENTER.
(a) Report on Reconfiguration.--Not later than February 1,
2002, the Attorney General, the Director of Central
Intelligence, and the Secretary of the Treasury shall jointly
submit to Congress a report on the feasibility and
desirability of reconfiguring the Foreign Terrorist Asset
Tracking Center and the Office of Foreign Assets Control of
the Department of the Treasury in order to establish a
capability to provide for the effective and efficient
analysis and dissemination of foreign intelligence relating
to the financial capabilities and resources of international
terrorist organizations.
(b) Report Requirements.--(1) In preparing the report under
subsection (a), the Attorney General, the Secretary, and the
Director shall consider whether, and to what extent, the
capacities and resources of the Financial Crimes Enforcement
Center of the Department of the Treasury may be integrated
into the capability contemplated by the report.
(2) If the Attorney General, Secretary, and the Director
determine that it is feasible and desirable to undertake the
reconfiguration described in subsection (a) in order to
establish the capability described in that subsection, the
Attorney General, the Secretary, and the Director shall
include with the report under that subsection a detailed
proposal for legislation to achieve the reconfiguration.
SEC. 907. NATIONAL VIRTUAL TRANSLATION CENTER.
(a) Report on Establishment.--(1) Not later than February
1, 2002, the Director of Central Intelligence shall, in
consultation with the Director of the Federal Bureau of
Investigation, submit to the appropriate committees of
Congress a report on the establishment and maintenance within
the intelligence community of an element for purposes of
providing timely and accurate translations of foreign
intelligence for all other elements of the intelligence
community. In the report, the element shall be referred to as
the "National Virtual Translation Center".
(2) The report on the element described in paragraph (1)
shall discuss the use of state-of-the-art communications
technology, the integration of existing translation
capabilities in the intelligence community, and the
utilization of remote-connection capacities so as to minimize
the need for a central physical facility for the element.
(b) Resources.--The report on the element required by
subsection (a) shall address the following:
(1) The assignment to the element of a staff of individuals
possessing a broad range of linguistic and translation skills
appropriate for the purposes of the element.
(2) The provision to the element of communications
capabilities and systems that are commensurate with the most
current and sophisticated communications capabilities and
systems available to other elements of intelligence
community.
(3) The assurance, to the maximum extent practicable, that
the communications capabilities and systems provided to the
element will be compatible with communications capabilities
and systems utilized by the Federal Bureau of Investigation
in securing timely and accurate translations of foreign
language materials for law enforcement investigations.
(4) The development of a communications infrastructure to
ensure the efficient and secure use of the translation
capabilities of the element.
(c) Secure Communications.--The report shall include a
discussion of the creation of secure electronic
communications between
[[Page H7193]]
the element described by subsection (a) and the other
elements of the intelligence community.
(d) Definitions.--In this section:
(1) Foreign intelligence.--The term "foreign
intelligence" has the meaning given that term in section
3(2) of the National Security Act of 1947 (50 U.S.C.
401a(2)).
(2) Element of the intelligence community.--The term
"element of the intelligence community" means any element
of the intelligence community specified or designated under
section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)).
SEC. 908. TRAINING OF GOVERNMENT OFFICIALS REGARDING
IDENTIFICATION AND USE OF FOREIGN INTELLIGENCE.
(a) Program Required.--The Attorney General shall, in
consultation with the Director of Central Intelligence, carry
out a program to provide appropriate training to officials
described in subsection (b) in order to assist such officials
in--
(1) identifying foreign intelligence information in the
course of their duties; and
(2) utilizing foreign intelligence information in the
course of their duties, to the extent that the utilization of
such information is appropriate for such duties.
(b) Officials.--The officials provided training under
subsection (a) are, at the discretion of the Attorney General
and the Director, the following:
(1) Officials of the Federal Government who are not
ordinarily engaged in the collection, dissemination, and use
of foreign intelligence in the performance of their duties.
(2) Officials of State and local governments who encounter,
or may encounter in the course of a terrorist event, foreign
intelligence in the performance of their duties.
(c) Authorization of Appropriations.--There is hereby
authorized to be appropriated for the Department of Justice
such sums as may be necessary for purposes of carrying out
the program required by subsection (a).
TITLE X--MISCELLANEOUS
SEC. 1001. REVIEW OF THE DEPARTMENT OF JUSTICE.
The Inspector General of the Department of Justice shall
designate one official who shall--
(1) review information and receive complaints alleging
abuses of civil rights and civil liberties by employees and
officials of the Department of Justice;
(2) make public through the Internet, radio, television,
and newspaper advertisements information on the
responsibilities and functions of, and how to contact, the
official; and
(3) submit to the Committee on the Judiciary of the House
of Representatives and the Committee on the Judiciary of the
Senate on a semi-annual basis a report on the implementation
of this subsection and detailing any abuses described in
paragraph (1), including a description of the use of funds
appropriations used to carry out this subsection.
SEC. 1002. SENSE OF CONGRESS.
(a) Findings.--Congress finds that--
(1) all Americans are united in condemning, in the
strongest possible terms, the terrorists who planned and
carried out the attacks against the United States on
September 11, 2001, and in pursuing all those responsible for
those attacks and their sponsors until they are brought to
justice;
(2) Sikh-Americans form a vibrant, peaceful, and law-
abiding part of America's people;
(3) approximately 500,000 Sikhs reside in the United States
and are a vital part of the Nation;
(4) Sikh-Americans stand resolutely in support of the
commitment of our Government to bring the terrorists and
those that harbor them to justice;
(5) the Sikh faith is a distinct religion with a distinct
religious and ethnic identity that has its own places of
worship and a distinct holy text and religious tenets;
(6) many Sikh-Americans, who are easily recognizable by
their turbans and beards, which are required articles of
their faith, have suffered both verbal and physical assaults
as a result of misguided anger toward Arab-Americans and
Muslim-Americans in the wake of the September 11, 2001
terrorist attack;
(7) Sikh-Americans, as do all Americans, condemn acts of
prejudice against any American; and
(8) Congress is seriously concerned by the number of crimes
against Sikh-Americans and other Americans all across the
Nation that have been reported in the wake of the tragic
events that unfolded on September 11, 2001.
(b) Sense of Congress.--Congress--
(1) declares that, in the quest to identify, locate, and
bring to justice the perpetrators and sponsors of the
terrorist attacks on the United States on September 11, 2001,
the civil rights and civil liberties of all Americans,
including Sikh-Americans, should be protected;
(2) condemns bigotry and any acts of violence or
discrimination against any Americans, including Sikh-
Americans;
(3) calls upon local and Federal law enforcement
authorities to work to prevent crimes against all Americans,
including Sikh-Americans; and
(4) calls upon local and Federal law enforcement
authorities to prosecute to the fullest extent of the law all
those who commit crimes.
SEC. 1003. DEFINITION OF "ELECTRONIC SURVEILLANCE".
Section 101(f)(2) of the Foreign Intelligence Surveillance
Act (50 U.S.C. 1801(f)(2)) is amended by adding at the end
before the semicolon the following: ", but does not include
the acquisition of those communications of computer
trespassers that would be permissible under section
2511(2)(i) of title 18, United States Code".
SEC. 1004. VENUE IN MONEY LAUNDERING CASES.
Section 1956 of title 18, United States Code, is amended by
adding at the end the following:
"(i) Venue.--(1) Except as provided in paragraph (2), a
prosecution for an offense under this section or section 1957
may be brought in--
"(A) any district in which the financial or monetary
transaction is conducted; or
"(B) any district where a prosecution for the underlying
specified unlawful activity could be brought, if the
defendant participated in the transfer of the proceeds of the
specified unlawful activity from that district to the
district where the financial or monetary transaction is
conducted.
"(2) A prosecution for an attempt or conspiracy offense
under this section or section 1957 may be brought in the
district where venue would lie for the completed offense
under paragraph (1), or in any other district where an act in
furtherance of the attempt or conspiracy took place.
"(3) For purposes of this section, a transfer of funds
from 1 place to another, by wire or any other means, shall
constitute a single, continuing transaction. Any person who
conducts (as that term is defined in subsection (c)(2)) any
portion of the transaction may be charged in any district in
which the transaction takes place.".
SEC. 1005. FIRST RESPONDERS ASSISTANCE ACT.
(a) Grant Authorization.--The Attorney General shall make
grants described in subsections (b) and (c) to States and
units of local government to improve the ability of State and
local law enforcement, fire department and first responders
to respond to and prevent acts of terrorism.
(b) Terrorism Prevention Grants.--Terrorism prevention
grants under this subsection may be used for programs,
projects, and other activities to--
(1) hire additional law enforcement personnel dedicated to
intelligence gathering and analysis functions, including the
formation of full-time intelligence and analysis units;
(2) purchase technology and equipment for intelligence
gathering and analysis functions, including wire-tap, pen
links, cameras, and computer hardware and software;
(3) purchase equipment for responding to a critical
incident, including protective equipment for patrol officers
such as quick masks;
(4) purchase equipment for managing a critical incident,
such as communications equipment for improved
interoperability among surrounding jurisdictions and mobile
command posts for overall scene management; and
(5) fund technical assistance programs that emphasize
coordination among neighboring law enforcement agencies for
sharing resources, and resources coordination among law
enforcement agencies for combining intelligence gathering and
analysis functions, and the development of policy,
procedures, memorandums of understanding, and other best
practices.
(c) Antiterrorism Training Grants.--Antiterrorism training
grants under this subsection may be used for programs,
projects, and other activities to address--
(1) intelligence gathering and analysis techniques;
(2) community engagement and outreach;
(3) critical incident management for all forms of terrorist
attack;
(4) threat assessment capabilities;
(5) conducting followup investigations; and
(6) stabilizing a community after a terrorist incident.
(d) Application.--
(1) In general.--Each eligible entity that desires to
receive a grant under this section shall submit an
application to the Attorney General, at such time, in such
manner, and accompanied by such additional information as the
Attorney General may reasonably require.
(2) Contents.--Each application submitted pursuant to
paragraph (1) shall--
(A) describe the activities for which assistance under this
section is sought; and
(B) provide such additional assurances as the Attorney
General determines to be essential to ensure compliance with
the requirements of this section.
(e) Minimum Amount.--If all applications submitted by a
State or units of local government within that State have not
been funded under this section in any fiscal year, that
State, if it qualifies, and the units of local government
within that State, shall receive in that fiscal year not less
than 0.5 percent of the total amount appropriated in that
fiscal year for grants under this section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated $25,000,000 for each of the fiscal years
2003 through 2007.
SEC. 1006. INADMISSIBILITY OF ALIENS ENGAGED IN MONEY
LAUNDERING.
(a) Amendment to Immigration and Nationality Act.--Section
212(a)(2) of the Immigration and Nationality Act (8 U.S.C.
1182(a)(2)) is amended by adding at the end the following:
"(I) Money laundering.--Any alien--
"(i) who a consular officer or the Attorney General knows,
or has reason to believe, has
[[Page H7194]]
engaged, is engaging, or seeks to enter the United States to
engage, in an offense which is described in section 1956 or
1957 of title 18, United States Code (relating to laundering
of monetary instruments); or
"(ii) who a consular officer or the Attorney General knows
is, or has been, a knowing aider, abettor, assister,
conspirator, or colluder with others in an offense which is
described in such section;
is inadmissible.".
(b) Money Laundering Watchlist.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of
State shall develop, implement, and certify to the Congress
that there has been established a money laundering watchlist,
which identifies individuals worldwide who are known or
suspected of money laundering, which is readily accessible
to, and shall be checked by, a consular or other Federal
official prior to the issuance of a visa or admission to the
United States. The Secretary of State shall develop and
continually update the watchlist in cooperation with the
Attorney General, the Secretary of the Treasury, and the
Director of Central Intelligence.
SEC. 1007. AUTHORIZATION OF FUNDS FOR DEA POLICE TRAINING IN
SOUTH AND CENTRAL ASIA.
In addition to amounts otherwise available to carry out
section 481 of the Foreign Assistance Act of 1961 (22 U.S.C.
2291), there is authorized to be appropriated to the
President not less than $5,000,000 for fiscal year 2002 for
regional antidrug training in the Republic of Turkey by the
Drug Enforcement Administration for police, as well as
increased precursor chemical control efforts in the South and
Central Asia region.
SEC. 1008. FEASIBILITY STUDY ON USE OF BIOMETRIC IDENTIFIER
SCANNING SYSTEM WITH ACCESS TO THE FBI
INTEGRATED AUTOMATED FINGERPRINT IDENTIFICATION
SYSTEM AT OVERSEAS CONSULAR POSTS AND POINTS OF
ENTRY TO THE UNITED STATES.
(a) In General.--The Attorney General, in consultation with
the Secretary of State and the Secretary of Transportation,
shall conduct a study on the feasibility of utilizing a
biometric identifier (fingerprint) scanning system, with
access to the database of the Federal Bureau of Investigation
Integrated Automated Fingerprint Identification System, at
consular offices abroad and at points of entry into the
United States to enhance the ability of State Department and
immigration officials to identify aliens who may be wanted in
connection with criminal or terrorist investigations in the
United States or abroad prior to the issuance of visas or
entry into the United States.
(b) Report to Congress.--Not later than 90 days after the
date of the enactment of this Act, the Attorney General shall
submit a report summarizing the findings of the study
authorized under subsection (a) to the Committee on
International Relations and the Committee on the Judiciary of
the House of Representatives and the Committee on Foreign
Relations and the Committee on the Judiciary of the Senate.
SEC. 1009. STUDY OF ACCESS.
(a) In General.--Not later than 120 days after enactment of
this Act, the Federal Bureau of Investigation shall study and
report to Congress on the feasibility of providing to
airlines access via computer to the names of passengers who
are suspected of terrorist activity by Federal officials.
(b) Authorization.--There are authorized to be appropriated
not more than $250,000 to carry out subsection (a).
SEC. 1010. TEMPORARY AUTHORITY TO CONTRACT WITH LOCAL AND
STATE GOVERNMENTS FOR PERFORMANCE OF SECURITY
FUNCTIONS AT UNITED STATES MILITARY
INSTALLATIONS.
(a) In General.--Notwithstanding section 2465 of title 10,
United States Code, during the period of time that United
States armed forces are engaged in Operation Enduring
Freedom, and for the period of 180 days thereafter, funds
appropriated to the Department of Defense may be obligated
and expended for the purpose of entering into contracts or
other agreements for the performance of security functions at
any military installation or facility in the United States
with a proximately located local or State government, or
combination of such governments, whether or not any such
government is obligated to provide such services to the
general public without compensation.
(b) Training.--Any contract or agreement entered into under
this section shall prescribe standards for the training and
other qualifications of local government law enforcement
personnel who perform security functions under this section
in accordance with criteria established by the Secretary of
the service concerned.
(c) Report.--One year after the date of enactment of this
section, the Secretary of Defense shall submit a report to
the Committees on Armed Services of the Senate and the House
of Representatives describing the use of the authority
granted under this section and the use by the Department of
Defense of other means to improve the performance of security
functions on military installations and facilities located
within the United States.
SEC. 1011. CRIMES AGAINST CHARITABLE AMERICANS.
(a) Short Title.--This section may be cited as the "Crimes
Against Charitable Americans Act of 2001".
(b) Telemarketing and Consumer Fraud Abuse.--The
Telemarketing and Consumer Fraud and Abuse Prevention Act (15
U.S.C. 6101 et seq.) is amended--
(1) in section 3(a)(2), by inserting after "practices"
the second place it appears the following: "which shall
include fraudulent charitable solicitations, and";
(2) in section 3(a)(3)--
(A) in subparagraph (B), by striking "and" at the end;
(B) in subparagraph (C), by striking the period at the end
and inserting "; and"; and
(C) by adding at the end the following:
"(D) a requirement that any person engaged in
telemarketing for the solicitation of charitable
contributions, donations, or gifts of money or any other
thing of value, shall promptly and clearly disclose to the
person receiving the call that the purpose of the call is to
solicit charitable contributions, donations, or gifts, and
make such other disclosures as the Commission considers
appropriate, including the name and mailing address of the
charitable organization on behalf of which the solicitation
is made."; and
(3) in section 7(4), by inserting ", or a charitable
contribution, donation, or gift of money or any other thing
of value," after "services".
(c) Red Cross Members or Agents.--Section 917 of title 18,
United States Code, is amended by striking "one year" and
inserting "5 years".
(d) Telemarketing Fraud.--Section 2325(1) of title 18,
United States Code, is amended--
(1) in subparagraph (A), by striking "or" at the end;
(2) in subparagraph (B), by striking the comma at the end
and inserting "; or";
(3) by inserting after subparagraph (B) the following:
"(C) a charitable contribution, donation, or gift of money
or any other thing of value,"; and
(4) in the flush language, by inserting "or charitable
contributor, or donor" after "participant".
SEC. 1012. LIMITATION ON ISSUANCE OF HAZMAT LICENSES.
(a) Limitation.--
(1) In general.--Chapter 51 of title 49, United States
Code, is amended by inserting after section 5103 the
following new section:
"Sec. 5103a. Limitation on issuance of hazmat licenses
"(a) Limitation.--
"(1) Issuance of licenses.--A State may not issue to any
individual a license to operate a motor vehicle transporting
in commerce a hazardous material unless the Secretary of
Transportation has first determined, upon receipt of a
notification under subsection (c)(1)(B), that the individual
does not pose a security risk warranting denial of the
license.
"(2) Renewals included.--For the purposes of this section,
the term `issue', with respect to a license, includes renewal
of the license.
"(b) Hazardous Materials Described.--The limitation in
subsection (a) shall apply with respect to--
"(1) any material defined as a hazardous material by the
Secretary of Transportation; and
"(2) any chemical or biological material or agent
determined by the Secretary of Health and Human Services or
the Attorney General as being a threat to the national
security of the United States.
"(c) Background Records Check.--
"(1) In general.--Upon the request of a State regarding
issuance of a license described in subsection (a)(1) to an
individual, the Attorney General--
"(A) shall carry out a background records check regarding
the individual; and
"(B) upon completing the background records check, shall
notify the Secretary of Transportation of the completion and
results of the background records check.
"(2) Scope.--A background records check regarding an
individual under this subsection shall consist of the
following:
"(A) A check of the relevant criminal history data bases.
"(B) In the case of an alien, a check of the relevant data
bases to determine the status of the alien under the
immigration laws of the United States.
"(C) As appropriate, a check of the relevant international
data bases through Interpol-U.S. National Central Bureau or
other appropriate means.
"(d) Reporting Requirement.--Each State shall submit to
the Secretary of Transportation, at such time and in such
manner as the Secretary may prescribe, the name, address, and
such other information as the Secretary may require,
concerning--
"(1) each alien to whom the State issues a license
described in subsection (a); and
"(2) each other individual to whom such a license is
issued, as the Secretary may require.
"(e) Alien Defined.--In this section, the term `alien' has
the meaning given the term in section 101(a)(3) of the
Immigration and Nationality Act.".
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 5103 the following new item:
"5103a. Limitation on issuance of hazmat licenses.".
(b) Regulation of Driver Fitness.--Section 31305(a)(5) of
title 49, United States Code, is amended--
[[Page H7195]]
(1) by striking "and" at the end of subparagraph (A);
(2) by inserting "and" at the end of subparagraph (B);
and
(3) by adding at the end the following new subparagraph:
"(C) is licensed by a State to operate the vehicle after
having first been determined under section 5103a of this
title as not posing a security risk warranting denial of the
license.".
(c) Authorization of Appropriations.--There is authorized
to be appropriated for the Department of Transportation and
the Department of Justice such amounts as may be necessary to
carry out section 5103a of title 49, United States Code, as
added by subsection (a).
SEC. 1013. EXPRESSING THE SENSE OF THE SENATE CONCERNING THE
PROVISION OF FUNDING FOR BIOTERRORISM
PREPAREDNESS AND RESPONSE.
(a) Findings.--The Senate finds the following:
(1) Additional steps must be taken to better prepare the
United States to respond to potential bioterrorism attacks.
(2) The threat of a bioterrorist attack is still remote,
but is increasing for a variety of reasons, including--
(A) public pronouncements by Osama bin Laden that it is his
religious duty to acquire weapons of mass destruction,
including chemical and biological weapons;
(B) the callous disregard for innocent human life as
demonstrated by the terrorists' attacks of September 11,
2001;
(C) the resources and motivation of known terrorists and
their sponsors and supporters to use biological warfare;
(D) recent scientific and technological advances in agent
delivery technology such as aerosolization that have made
weaponization of certain germs much easier; and
(E) the increasing access to the technologies and expertise
necessary to construct and deploy chemical and biological
weapons of mass destruction.
(3) Coordination of Federal, State, and local terrorism
research, preparedness, and response programs must be
improved.
(4) States, local areas, and public health officials must
have enhanced resources and expertise in order to respond to
a potential bioterrorist attack.
(5) National, State, and local communication capacities
must be enhanced to combat the spread of chemical and
biological illness.
(6) Greater resources must be provided to increase the
capacity of hospitals and local health care workers to
respond to public health threats.
(7) Health care professionals must be better trained to
recognize, diagnose, and treat illnesses arising from
biochemical attacks.
(8) Additional supplies may be essential to increase the
readiness of the United States to respond to a bio-attack.
(9) Improvements must be made in assuring the safety of the
food supply.
(10) New vaccines and treatments are needed to assure that
we have an adequate response to a biochemical attack.
(11) Government research, preparedness, and response
programs need to utilize private sector expertise and
resources.
(12) Now is the time to strengthen our public health system
and ensure that the United States is adequately prepared to
respond to potential bioterrorist attacks, natural infectious
disease outbreaks, and other challenges and potential threats
to the public health.
(b) Sense of the Senate.--It is the sense of the Senate
that the United States should make a substantial new
investment this year toward the following:
(1) Improving State and local preparedness capabilities by
upgrading State and local surveillance epidemiology,
assisting in the development of response plans, assuring
adequate staffing and training of health professionals to
diagnose and care for victims of bioterrorism, extending the
electronics communications networks and training personnel,
and improving public health laboratories.
(2) Improving hospital response capabilities by assisting
hospitals in developing plans for a bioterrorist attack and
improving the surge capacity of hospitals.
(3) Upgrading the bioterrorism capabilities of the Centers
for Disease Control and Prevention through improving rapid
identification and health early warning systems.
(4) Improving disaster response medical systems, such as
the National Disaster Medical System and the Metropolitan
Medical Response System and Epidemic Intelligence Service.
(5) Targeting research to assist with the development of
appropriate therapeutics and vaccines for likely bioterrorist
agents and assisting with expedited drug and device review
through the Food and Drug Administration.
(6) Improving the National Pharmaceutical Stockpile program
by increasing the amount of necessary therapies (including
smallpox vaccines and other post-exposure vaccines) and
ensuring the appropriate deployment of stockpiles.
(7) Targeting activities to increase food safety at the
Food and Drug Administration.
(8) Increasing international cooperation to secure
dangerous biological agents, increase surveillance, and
retrain biological warfare specialists.
SEC. 1014. GRANT PROGRAM FOR STATE AND LOCAL DOMESTIC
PREPAREDNESS SUPPORT.
(a) In General.--The Office for State and Local Domestic
Preparedness Support of the Office of Justice Programs shall
make a grant to each State, which shall be used by the State,
in conjunction with units of local government, to enhance the
capability of State and local jurisdictions to prepare for
and respond to terrorist acts including events of terrorism
involving weapons of mass destruction and biological,
nuclear, radiological, incendiary, chemical, and explosive
devices.
(b) Use of Grant Amounts.--Grants under this section may be
used to purchase needed equipment and to provide training and
technical assistance to State and local first responders.
(c) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section such sums as necessary for each of
fiscal years 2002 through 2007.
(2) Limitations.--Of the amount made available to carry out
this section in any fiscal year not more than 3 percent may
be used by the Attorney General for salaries and
administrative expenses.
(3) Minimum amount.--Each State shall be allocated in each
fiscal year under this section not less than 0.75 percent of
the total amount appropriated in the fiscal year for grants
pursuant to this section, except that the United States
Virgin Islands, America Samoa, Guam, and the Northern Mariana
Islands each shall be allocated 0.25 percent.
SEC. 1015. EXPANSION AND REAUTHORIZATION OF THE CRIME
IDENTIFICATION TECHNOLOGY ACT FOR ANTITERRORISM
GRANTS TO STATES AND LOCALITIES.
Section 102 of the Crime Identification Technology Act of
1998 (42 U.S.C. 14601) is amended--
(1) in subsection (b)--
(A) in paragraph (16), by striking "and" at the end;
(B) in paragraph (17), by striking the period and inserting
"; and"; and
(C) by adding at the end the following:
"(18) notwithstanding subsection (c), antiterrorism
purposes as they relate to any other uses under this section
or for other antiterrorism programs."; and
(2) in subsection (e)(1), by striking "this section" and
all that follows and inserting "this section $250,000,000
for each of fiscal years 2002 through 2007.".
SEC. 1016. CRITICAL INFRASTRUCTURES PROTECTION.
(a) Short Title.--This section may be cited as the
"Critical Infrastructures Protection Act of 2001".
(b) Findings.--Congress makes the following findings:
(1) The information revolution has transformed the conduct
of business and the operations of government as well as the
infrastructure relied upon for the defense and national
security of the United States.
(2) Private business, government, and the national security
apparatus increasingly depend on an interdependent network of
critical physical and information infrastructures, including
telecommunications, energy, financial services, water, and
transportation sectors.
(3) A continuous national effort is required to ensure the
reliable provision of cyber and physical infrastructure
services critical to maintaining the national defense,
continuity of government, economic prosperity, and quality of
life in the United States.
(4) This national effort requires extensive modeling and
analytic capabilities for purposes of evaluating appropriate
mechanisms to ensure the stability of these complex and
interdependent systems, and to underpin policy
recommendations, so as to achieve the continuous viability
and adequate protection of the critical infrastructure of the
Nation.
(c) Policy of the United States.--It is the policy of the
United States--
(1) that any physical or virtual disruption of the
operation of the critical infrastructures of the United
States be rare, brief, geographically limited in effect,
manageable, and minimally detrimental to the economy, human
and government services, and national security of the United
States;
(2) that actions necessary to achieve the policy stated in
paragraph (1) be carried out in a public-private partnership
involving corporate and non-governmental organizations; and
(3) to have in place a comprehensive and effective program
to ensure the continuity of essential Federal Government
functions under all circumstances.
(d) Establishment of National Competence for Critical
Infrastructure Protection.--
(1) Support of critical infrastructure protection and
continuity by national infrastructure simulation and analysis
center.--There shall be established the National
Infrastructure Simulation and Analysis Center (NISAC) to
serve as a source of national competence to address critical
infrastructure protection and continuity through support for
activities related to counterterrorism, threat assessment,
and risk mitigation.
(2) Particular support.--The support provided under
paragraph (1) shall include the following:
(A) Modeling, simulation, and analysis of the systems
comprising critical infrastructures, including cyber
infrastructure, telecommunications infrastructure, and
physical infrastructure, in order to enhance understanding of
the large-scale complexity of such systems and to facilitate
modification of such systems to mitigate the threats to
[[Page H7196]]
such systems and to critical infrastructures generally.
(B) Acquisition from State and local governments and the
private sector of data necessary to create and maintain
models of such systems and of critical infrastructures
generally.
(C) Utilization of modeling, simulation, and analysis under
subparagraph (A) to provide education and training to
policymakers on matters relating to--
(i) the analysis conducted under that subparagraph;
(ii) the implications of unintended or unintentional
disturbances to critical infrastructures; and
(iii) responses to incidents or crises involving critical
infrastructures, including the continuity of government and
private sector activities through and after such incidents or
crises.
(D) Utilization of modeling, simulation, and analysis under
subparagraph (A) to provide recommendations to policymakers,
and to departments and agencies of the Federal Government and
private sector persons and entities upon request, regarding
means of enhancing the stability of, and preserving, critical
infrastructures.
(3) Recipient of certain support.--Modeling, simulation,
and analysis provided under this subsection shall be
provided, in particular, to relevant Federal, State, and
local entities responsible for critical infrastructure
protection and policy.
(e) Critical Infrastructure Defined.--In this section, the
term "critical infrastructure" means systems and assets,
whether physical or virtual, so vital to the United States
that the incapacity or destruction of such systems and assets
would have a debilitating impact on security, national
economic security, national public health or safety, or any
combination of those matters.
(f) Authorization of Appropriations.--There is hereby
authorized for the Department of Defense for fiscal year
2002, $20,000,000 for the Defense Threat Reduction Agency for
activities of the National Infrastructure Simulation and
Analysis Center under this section in that fiscal year.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Wisconsin (Mr. Sensenbrenner) and the gentleman from Michigan (Mr.
Conyers) each will control 20 minutes.
The Chair recognizes the gentleman from Wisconsin (Mr.
Sensenbrenner).
Mr. SENSENBRENNER. Mr. Speaker, I ask unanimous consent that debate
on this motion be extended by an additional 20 minutes, equally divided
and controlled by the chairman and ranking minority member of the
Committee on Financial Services.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Wisconsin?
There was no objection.
General Leave
Mr. SENSENBRENNER. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days within which to revise and extend
their remarks and include extraneous material on H.R. 3162, the bill
under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Wisconsin?
There was no objection.
Mr. SENSENBRENNER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, today we have the duty and privilege to pass this
historic legislation, the USA-PATRIOT Act of 2001, which was born of
adversity and violent attack. This landmark legislation will provide
law enforcement and intelligence agencies additional tools that are
needed to address the threat of terrorism and to find and prosecute
terrorist criminals.
This legislation authorizes the sharing of information between
criminal investigators and those engaged in foreign intelligence-
gathering. It provides for enhanced wiretap and surveillance authority.
It brings the basic building blocks of a criminal investigation, pen
registers and trap and trace provisions, into the 21st century to deal
with e-mails and Internet communications.
Mr. Speaker, this legislation is the result of bipartisan
consultation and review. A version of this legislation was passed by
the House Committee on the Judiciary 36 to nothing. The House then
passed H.R. 2975 by a vote of 337 to 79. The House and Senate Judiciary
Committees and the bipartisan leadership began a process last week to
reconcile the differences between the House and Senate bills. This bill
is the result of that process and was completed despite the closure of
House and Senate offices due to the anthrax attack on the Capitol.
The changes to the bill are few, but significant. First, the sunset
provision in the House bill was modified to sunset in 4 years.
Provisions of the original version expired in 5 years, and the Senate
did not have a sunset provision at all. Also, the Senate bill contained
revisions to the so-called McDade law. This compromise version does not
contain those changes, and I agreed to review this subject in a
different context.
This bill also contains comprehensive money laundering provisions
that will be discussed by my colleagues from the Committee on Financial
Services. The House bill did not contain such provisions, although the
House subsequently passed a separate bill.
Regarding the information-sharing provisions, the Senate bill
permitted law enforcement to share grand jury material with
intelligence agencies without notice to a court. The House bill
permitted such sharing only after prior authorization to the court.
This bill allows the sharing of grand jury material, but the Department
of Justice must give notice to the court after the disclosure.
The legislation also contains a provision found in neither the House
nor the Senate version, but directs the Department of Justice to file
an ex parte and in camera notice with the court when the Government
installs on an Internet Service Provider a device pursuant to a lawful
pen register or trap and trace order. This provision's author is the
esteemed majority leader, the gentleman from Texas (Mr. Armey).
This legislation also contains a number of provisions, including
three authored by the gentleman from Illinois (Mr. Hyde) and one by the
gentleman from Florida (Mr. Keller), which were in the House Committee
on the Judiciary version of the bill, but not in the version passed on
the floor. This bill also contains a number of provisions that have
been worked out on both sides of the aisle in the other body.
Regarding the bill's immigration provisions, the compromise
legislation allows the Attorney General to delegate only to the Deputy
Attorney General the ability to certify an alien as a terrorist. The
House Committee on the Judiciary version of this bill contained this
provision, but the Senate-passed bill did not, but allows such
delegation to the Commissioner of the Immigration and Naturalization
Service. In addition, the compromise requires the Attorney General to
revisit every 6 months the detention of an alien who has been certified
as an alien terrorist. The compromise also adds a provision authorizing
the appropriation of over $36 million to implement as quickly as
possible the foreign student tracking system that was created in 1996.
Finally, this legislation contains important humanitarian relief
originally contained in the House bill, but not the Senate version, for
the families of immigrants killed in the terrorist attacks of September
11.
Mr. Speaker, this legislation is not perfect, and the process is not
one that all will embrace. However, these are difficult times that
require steadfast leadership and an expeditious response. The
legislation is desperately needed, and the President has called on
Congress to pass it now. I urge all Members to support this important
antiterrorism legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. CONYERS. Mr. Speaker, I yield myself 2 minutes.
Mr. Speaker, I wanted to begin by pointing out that this is perhaps
one of the most important measures that we will determine from the
Committee on the Judiciary's point of view, because it is antiterrorist
legislation that expands the law in many directions; and from our point
of view, we have been trying to put safeguards around these expansions.
We have dropped the two worst provisions from the administration
proposal, the illegal use of foreign evidence and the pretrial
restraint provision. I commend the gentleman from Wisconsin (Mr.
Sensenbrenner), my chairman, who has worked night and day on this
matter; and I think that in the overall, we have had good cooperation.
The measure before us corrects unconstitutional immigration
provisions. We have corrected the immigration provision that allows
indefinite detention without evidence. We have modified or narrowed any
number of other controversial provisions, more than a couple dozen. We
have added a 4-year sunset provision for most of the surveillance
operations. We have added a
[[Page H7197]]
new Inspector General for Civil Liberties and Civil Rights inside the
Department of Justice. We have new Federal tort relief for improper
government release of wiretap information. We have added new resources
to ease the delays in patrolling and protecting the northern border,
and we have immigration relief for persons being sponsored by the
victims of those in the September 11 attack.
Mr. Speaker, I will include for the Record at this point a section-
by-section analysis of the bill.
Section-by-Section Analysis
TITLE I--ENHANCING DOMESTIC SECURITY
Section 101: Counterterrorism fund.--Establishes a
counterterrorism fund to rebuild any Justice Department
component that has been damaged or destroyed as a result of a
terrorism incident; provide support for investigations and to
pay terrorism-related rewards; and conduct terrorism threat
assessments. Not in Administration proposal
Section 102: Sense of Congress condemning discrimination
against Arab and Muslim Americans.--Not in Administration
proposal
Section 103: Increased funding for the FBI's technical
support center.--Authorizes $200 million for each of FY 2002,
2003, and 2004 for the technical support center. Not in
Administration proposal
Section 104: Requests for military assistance to enforce
prohibition in certain emergencies.--Allows military to
assist state and local law enforcement with domestic chemical
weapons emergencies. Not in Administration proposal
Section 105: Expansion of National Electronic Crime Task
Force Initiative.--Directs the Secret Service to develop a
national network with electronic crime task forces based on
the New York Electronic Crime Task Force model. Not in
Administration proposal
Section 106: Presidential Authority.--Expands International
Economic Emergency Powers Act to allow the President to
confiscate and vest properties of an enemy when United States
is engaged in military hostilities or has been subject to an
attack by that enemy. It allows classified information, used
to make a determination regarding national security or
terrorism cases, to be submitted ex parte and in camera to
the reviewing court of such determinations. Same as
Administration Proposal.
TITLE II--ENHANCED SURVEILLANCE PROCEDURES
Section 201: Authority To Intercept Wire, Oral, and
Electronic Communications Relating to Terrorism.--Adds
terrorism offenses to the list of predicates for obtaining
title III wiretaps. Not in Administration proposal.
Section 202: Authority To Intercept Wire, Oral, and
Electronic Communications Relating to Computer Fraud and
Abuse Offenses.--Adds computer fraud and abuse offenses to
the list of predicates for obtaining title III wiretaps. Not
in Administration proposal.
Section 203: Authority To Share Criminal Investigative
Information.--Allows intelligence information obtained in
grand jury proceedings to be shared with any law enforcement,
intelligence, immigration, or national security personnel as
long as notice is given to the court after the disclosure.
Recipient can only use information in conduct of their
duties subject to disclosure limitations in current law.
Intelligence information obtained from wiretaps can be
shared with law enforcement, intelligence, immigration, or
national security personnel. Recipients can use the
information only in the conduct of their duties and are
subject to the limitations in current law of unauthorized
disclosure of wiretap information. Attorney General must
establish procedures for the release of this information
in the case of a U.S. person. Intelligence information
obtained in intelligence operations can be disclosed to
intelligence personnel in performance of their duties.
Narrowed Administration proposal to limit scope of
personnel eligible to receive information and other
limitations noted above. In case of grand jury
information, limited proposal to require notification to
court after disclosure.
Section 204: Clarification of Intelligence Exceptions From
Limitations on Interception and Disclosure of Wire, Oral, and
Electronic Communications.--Explicitly carves out foreign
intelligence surveillance operations from the protections of
ECPA. Same as Administration proposal.
Section 205: Employment of Translators by the FBI.--
Authorizes the FBI to expedite employment of translators. Not
in Administration proposal.
Section 206: Roving Surveillance Authority Under FISA.--
Expands FISA court orders to allow "roving" surveillance in
manner similar to Title III wiretaps. Same as Administration
proposal.
Section 207: Duration of FISA Surveillance of Non-United
States Persons Who Are Agents of a Foreign Power.--Currently,
the duration for a FISA surveillance may initially be ordered
for no longer than 90 days but later can be extended to one
year. This section changes the initial period for electronic
surveillance from 90 to 120 days and extensions from 90 days
to one year; and for searches from 45 to 90 days. Narrower
than Administration proposal which sought to eliminate the
initial 90-day limitation and authorize surveillance for up
to one year from the outset.
Section 208: Designation of Judges.--Increases number of
FISA judges from 7 to 11 and requires that at least 3 judges
reside within 20 miles of the District of Columbia. Not in
Administration proposal.
Section 209: Seizure of Voice Mail Pursuant to Warrants.--
Provides that voice mails can be accessed by the government
with a court order in the same way e-mails currently can be
accessed and authorizes nationwide service with a single
search warrant for voice mails. Same as Administration
proposal.
Section 210: Scope of Subpoenas for Records of Electronic
Communications.--Broadens the types of records that law
enforcement can subpoena from electronic communications
service providers by requiring providers to disclose the
means and source of payment, including any bank account or
credit card numbers, pursuant to a subpoena. Same as
Administration proposal.
Section 211: Clarification of Scope.--Broadens the scope of
the subscriber records disclosure statutes to treat cable
companies that provide Internet service the same as other
Internet Service Providers and telephone companies. Modified
Administration proposal to specify that targets do not
receive advance notice of wiretap and amends title 47 to
accomplish same purpose as administration proposal.
Section 212: Emergency Disclosure of Electronic
Communications.--Permits Internet Service Providers to
disclosure voluntarily stored electronic communications of
subscribers in the event immediate danger or death or serious
bodily injury to a person requires such disclosure. Also
otherwise allows law enforcement to compel disclosure to
third parties using a court order or a search warrant. Same
as Administration proposal.
Section 213: Authority for Delaying Notice of Execution or
a Warrant.--Broadens authority of law enforcement to delay
notification of search warrants in criminal investigation if
prior notification would have an adverse result and if
notification is given a reasonable period after the search.
Based on codification of Second Circuit decision. Narrower
than Administration proposal, which would have permitted
delay as law enforcement saw fit.
Section 214: Pen Register and Trap and Trace Authority
under FISA.--Currently, when the Attorney General or a
designated attorney for the government applies for a pen
register or trap and trace device under FISA, the application
must include a certification by the applicant that (1) the
information obtained would be relevant to an on-going
intelligence investigation, and (2) the information
demonstrates that the phone covered was used in communication
with someone involved in terrorism or intelligence activities
that may violate U.S. criminal law or with a foreign power or
its agent whose communication is believed to concern
terrorism or intelligence activities that could violate U.S.
criminal laws. The conference report deletes second prong,
but limits the use of these tools to protection against
international terrorism or clandestine intelligence
activities and provide that the use of these tools may not be
based solely on First Amendment activities. Narrower than
Administration proposal, which would have simply removed
second prong.
215: Access to Records and Other Items under FISA.--(1)
requires a FISA court order to obtain business records; (2)
limits the use of this authority to investigations to protect
against international terrorism or clandestine intelligence
activities; and (3) provides that investigations of U.S.
persons may not be based solely on First Amendment
activities. Administration had sought to substitute an
administrative subpoena requirement.
216: Authorities Relating to the Use of Pen Register and
Trap and Trace Devices.--Extends the pen/trap provisions so
they apply not just to telephone communications but also to
Internet traffic, so long as they exclude "content."
Excludes ISP's from liability, gives Federal courts the
authority to grant orders that are valid anywhere in the
United States instead of just their own jurisdictions, and
provides for a report to Congress on this "Carnivore"
device. Makes a number of improvements over Administration
proposal, including exclusion of content, exclusion of ISP
liability, and Carnivore report.
217: Interception of Computer Trespasser Communications.--
Allows persons "acting under color of law" to intercept
communications if the owner of a computer authorizes it, and
the person acting under color of law is acting pursuant to a
lawful investigation. Section 815 also excludes service
provider subscribers from definition of trespasser, limits
interception authority to only those communications through
the computer in question. None of the limitations
described in second sentence were included in
Administration proposal.
Section 218: Foreign Intelligence Information.--Permits
FISA surveillance and search requests if they are for a
"significant" intelligence gathering purpose (rather than
"the" purpose under current law). Narrower than
Administration proposal, which would have allowed FISA
surveillance if intelligence gathering was merely "a"
purpose.
Section 219: Single Jurisdiction Search Warrants for
Terrorism.--Permits Federal judges to issue search warrants
having nationwide effect for investigations involving
terrorism. Same as Administration proposal.
Section 220: Nationwide Service of Search Warrants for
Electronic Evidence.--Permits a single court having
jurisdiction over the offense to issue a search warrant for
e-mail
[[Page H7198]]
that would be valid in anywhere in the United States.
Narrower than Administration proposal in that it limits forum
shopping problem by limiting to courts with jurisdiction over
the offense.
Section 221: Trade Sanctions (IR Committee).--Adds Taliban
to list of entities potentially subject to sanctions and
retains congressional oversight in current law. Far narrower
than Administration proposal which would have undermined the
congressional approval requirement, conferring upon the
President control of agricultural and medical exports "to
all designated terrorists and narcotics entities wherever
they are located."
Section 222: Assistance to Law Enforcement Agencies.--
Prohibits technology mandates on entities to comply with this
Act. Provides for cost reimbursement of entities assisting
law enforcement with title III pen trap orders. This
safeguard was not in Administration Proposal.
Section 223: Civil Liability for Certain Unauthorized
Disclosures.--Increases civil liability for unauthorized
disclosure of pen trap, wiretap, stored communications or
FISA information. Also requires administrative discipline of
officials who engage in such unauthorized disclosures. Rep.
Frank added this civil liberties safeguard pursuant to an
amendment.
Section 224: Sunset.--201, 202, 203(b), 204, 206, 207, 209,
212, 214, 215, 217, 218, 220, will sunset in four years--at
the end December 31, 2005. Conference agreement to narrow
those investigations that survive sunset to particular
investigations based on offenses occurring prior to sunset.
No sunset provided in Administration proposal or Senate bill.
The four-year sunset is an improvement over the five-year
sunset in the House bill.
Section 225: Immunity for Compliance with FISA Wiretap.--
Provides immunity for civil liability from subscribers,
tenants, etc. for entities that comply with FISA wiretap
orders. Not in Administration proposal.
Dropped Administration proposal allowing FBI to use wiretap
information on U.S. citizens it obtained overseas in
violation of the Fourth Amendment.
TITLE III--FINANCIAL INFRASTRUCTURE
Other provisions to be supplied by Financial Services
conference. Provisions below from House Judiciary Committee
bill.
Section 301: Laundering The Proceeds of Terrorism.--Expands
the scope of predicate offenses for laundering the proceeds
of terrorism to include "providing material support or
resources to terrorist organizations," as that crime is
defined in 18 U.S.C. Sec. 2339B of the criminal code. Same as
Administration proposal.
Section 302: Extraterritorial Jurisdiction [International
Relations Committee].--Applies the financial crimes
prohibitions to conduct committed abroad in situations where
the tools or proceeds of the offense pass through or are in
the United States. Same as Administration proposal.
Dropped Administration proposal to allow broad disclosure
of tax information to Justice and Treasury Departments.
Dropped Administration proposal allowing pre-trial
restraint in all criminal forfeiture cases.
Dropped provision carving out tobacco companies from RICO
liability for foreign excise taxes.
Dropped provision making it a criminal offense to
misrepresent your identification when opening bank account.
TITLE II--PROTECTING THE BORDER
subtitle a--protecting the northern border
Section 401: Ensuring Adequate Personnel on the Northern
Border.--Authorizes the waiver of any FTE cap on personnel
assigned to the INS to address the national security on the
Northern Border. This provision was added at the request of
Senator Leahy and Congressman Conyers to ensure the
protection of the U.S.-Canadian border.
Section 402: Northern Border Personnel.--Authorizes the
appropriation of funds necessary to triple the number of
Border Patrol, INS and Customs Service personnel in each
state along the northern border. The bill also authorizes $50
million each to the INS and Customs Services for purposes of
making improvements in technology for monitoring the northern
border and acquiring additional equipment at the northern
border. This provision was added at the request of Senator
Leahy and Congressman Conyers to ensure the protection of the
U.S.-Canadian bordeer.
Section 403: Requiring Sharing by the Federal Bureau of
Investigation of Certain Criminal Record Extracts with Other
Federal Agencies in Order to Enhance Border Security.--
Requires the Justice Department and FBI to provide the State
Department and INS information contained in its National
Crime Information Center files to permit INS and State to
better determine whether a visa applicant has a criminal
history record. The bill retains the Administration's
proposal.
Section 404: Limited Authority to Pay Overtime.--Strikes
certain prohibitions on the paying of overtime to INS
employees. This provision was added at the request of Senator
Leahy and Congressman Conyers to ensure the protection of the
U.S.-Canadian border.
Section 405: Report on the Integrated Automated Fingerprint
Identification System for Points of Entry and Overseas
Consular Posts.--Requires the Justice Department to report to
Congress on the feasibility of enhancing the FBI's Integrated
Automated Fingerprint Identification System and other
identification systems. The bill retains the Administration's
proposal.
subtitle b--enhanced immigration provisions
Section 411: Definitions Relating to Terrorism.--Broadens
the terrorism ground of inadmissibility to include (a) any
representative of a political or social group that publicly
endorses terrorist activity in the United States, (b) a
person who uses his position of prominence within a country
to endorse terrorist activity, or persuade others to support
terrorist activity, (c) the spouses and children of persons
engaged in terrorism, and (d) any other person the Secretary
of State or Attorney General determines has been associated
with a terrorist organization and who intends to engage in
activities that could endanger the welfare, safety, or
security of the United States.
This bill broadens the definition of "terrorist activity"
to include the use, not only of explosives and firearms, but
other dangerous devices as well. Further, it broadens the
definition of a terrorist "engaging in a terrorist
activity" to include anyone who affords material support to
an organization that the individual knows or should know is a
terrorist organization, regardless of whether or not the
purported purpose for the support is related to terrorism. It
also broadens the types of organizations that may be
designated or redesignated a foreign terrorist organization
by the Secretary of State to comport with definitions of
terrorism found elsewhere in the law.
The bill limits the Administration's proposal on the
inadmissibility and deportability grounds for providing
material support, which are critical to protect people (such
as supporters of the IRA or ANC) who give or solicit funds
currently or in the past for humanitarian purposes without
any knowledge or intent that the funds be used for terrorist
activities. The bill makes it an inadmissible and deportable
offense for contributing funds or material support to, or
soliciting funds for or membership in, an organization that
has been designated as a terrorist organization by the
Secretary of state pursuant to 8 U.S.C. 1189 or by
publication in the Federal Register. In the case of non-
designated terrorist organization, however, a limitation was
added whereby an alien is not inadmissible or deportable if
he demonstrates that he did not know or reasonably should not
have known that the funds, material support or solicitation
would further terrorist activity. Additionally, either the
Secretary of State or the Attorney General can waive this
ground of inadmissibility or deportability. The bill also
limits the retroactive application of this provision in that
a person who provides material support to a designated
organization prior to the time of its designation as a
terrorist organization shall be treated as if any material
support was provided to a non-designated organization.
The bill also adds a waiver provision that permits the
Attorney General or consular officer to waive the bar to
admission for spouses and children if the person did not know
or should not reasonably have known that the principal alien
was engaged in terrorism or if the spouse or child has
renounced the activity causing the alien to be
inadmissible.
Section 412: Changes in Designation of Foreign Terrorist
Organizations.--Expands the ability of the Attorney General
to mandatorily detain those aliens that he certifies may pose
a threat to national security, pending the outcome of
criminal or removal proceedings. The bill completely revises
the Administration's proposal to better balance the law
enforcement needs of the Attorney General with the protection
of aliens' civil liberties.
The Attorney General may detain a person he certifies as
suspected of involvement in terrorism. The standard of
certification that the Attorney General needs to meet is
increased to a showing of "reasonable grounds to believe"
that the alien is deportable or inadmissible as provided in
the terrorism provisions. Only the Attorney General or the
Deputy Attorney General has the authority to make a
certification under this provision. It is otherwise non-
delegable to any other official (the original proposal
permitted the delegation of this new authority to numerous
Justice Department and INS officials).
The Attorney General is now required to bring removal or
criminal charges against anyone detained under this section
within 7 days, eliminating the indefinite language in the
Administration's proposal. If an alien is not charged within
7 days he must be released. During removal or criminal
proceedings, the Attorney General must review the
appropriateness of the certification every 6 months.
After criminal or removal proceedings are completed, an
alien must be removed from the country or released. In the
limited number of cases where a person is removable but
cannot be removed, the Attorney General must review every 6
months whether the person must be detained on the basis of
being a threat to the national security or the community. An
alien can only be detained for additional 6 month periods if
the release would threaten the national security or the
safety of the community.
The bill strengthens the habeas corpus procedures to ensure
that the merits of the Attorney General's certification and
the criminal and removal proceedings are subject to judicial
review. The bill also ensures that judicial review is
conducted in proximity to
[[Page H7199]]
where the alien is being held to ensure adequate legal
representation. Habeas corpus petitions can be filed and
heard in the Federal district court where the alien is
detained with any appeal to the D.C. Circuit Court of
Appeals.
Section 413: Multilateral Cooperation Against Terrorists.--
Enhances the Government's ability to combat terrorism and
crime worldwide by providing new exceptions to the laws
regarding disclosure of information from visa records. The
bill grants the Secretary of State discretion to provide such
information to foreign officials on a case-by-case basis for
the purpose of fighting international terrorism or other
crimes. It also allows the Secretary to provide countries
with which he negotiates specific agreements to have more
general access to information from the State Department's
lookout databases where the country will use such information
only to deny visas to persons seeking to enter its territory.
The bill retains the Administration's proposal.
Section 414a: Visa Integrity and Security.--Includes a
sense of the Congress that in light of the terrorist attacks,
the Attorney General must expedite the implementation of the
integrated entry and exit data system authorized by Congress
in 1996. Not in Administration's proposal.
Section 415: Participation of Office of Homeland Security
on Entry Task Force.--Includes the Office of Homeland
Security in the development and implementation of the
integrated entry and exit data system authorized by Congress
in 1996. Not in Administration's proposal.
Section 416: Foreign Student Monitoring Program.--Requires
the Attorney General to fully implement and expand foreign
student monitoring program authorized by Congress in 1996.
Not in Administration's proposal.
Section 417: Machine Readable Passports.--Requires the
Secretary of State to perform annual audits and report to
Congress on the implementation of the machine-readable
passport program. Not in Administration's proposal.
Section 418: Prevention of Consulate Shopping.--Requires
the Secretary of State to review how consular officers issue
visas to determine if consular shopping is a problem. Not in
Administration's proposal.
subtitle c--preservation of immigration benefits for victims of
terrorism
Adds new subtitle (sections 421-428) to the
Administration's proposal to preserve the immigration
benefits of the victims of the September 11th terrorist
attacks and their family members. For some families, spouses
and children may lose their immigration status due to the
death or serious injury of a family member. These family
members are facing deportation because they are out of
status: they no longer qualify for their current immigration
status or are no longer eligible to complete the application
process because their loved one was killed or injured in the
September 11 terrorist attack. Others are threatened with the
loss of their immigration status, through no fault of their
own, due to the disruption of communications and
transportation that has resulted directly from the terrorist
attacks. Because of these disruptions, people have been and
will be unable to meet important deadlines, which will mean
the loss of eligibility for certain benefits and the
inability to maintain lawful status, unless the law is
changed. The bill:
Creates a new special immigrant status for people who were
in the process of securing permanent residence through a
family member who died, was disabled, or lost employment as a
result of the terrorist activities of September 11, 2001;
Provides a temporary extension of status to people who are
present in the United States on a "derivative status" (the
spouse or minor child) of a non-immigrant who was killed or
injured on September 11, 2001;
Provides remedies for people who will be adversely affected
or will lose their right to apply for benefits because of
their inability to meet certain deadlines through no fault
of their own and as a result of the September 11, 2001
terrorist attack (visa waiver, diversity lottery, advance
parole and voluntary departure);
Provides immigration relief to the widows/widowers and
orphan children of citizens and legal permanent residents who
were killed in the September 11 attacks by allowing
applications for permanent resident status to be adjudicated;
Prevents children from aging out of eligibility for
immigration benefits where the delay was the result of the
September 11 attacks;
Provides for temporary administrative relief to allow the
family of people who were killed or seriously injured in the
terrorist attacks who are not otherwise covered by this
subtitle; and
Prohibits any benefits from being provided to anyone
culpable for the terrorist attacks on September 11 or any
family member of such person.
These provisions were added at the request of Congressman
Conyers and Senator Kennedy.
TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM
Section 501: Attorney General's Authority to Pay Rewards.--
Ensures non-terrorism rewards are subject to budgetary caps.
From Leahy DOJ reauthorization bill, not in Administration's
proposal.
Section 502: Secretary of State Rewards (IR Committee).--
Amends the Department of State's reward authority so that
rewards may be offered for the identification or location of
the leaders of a terrorist organization, increases the
maximum amount of an award from $5 million to $10 million,
and allows the Secretary to further increase a reward up to
$25 million if the Secretary determines that offering the
payment of such additional amount is important to the
national interest. Also provides a sense of congress that the
Secretary should offer a $25 million award for Osama bin
Laden and other leaders of the September 11th attack.
Broadens the AG's authority to offer rewards without caps for
information related to terrorism. Based on Administration's
proposal.
Section 503: DNA Identification of Terrorists.--Requires
persons convicted of terrorism offenses also to submit to DNA
samples. Same as Administration proposal (modified to include
other crimes of violence).
Section 504: Coordination with Law Enforcement.--Allows
Federal law enforcement conducting electronic surveillance or
physical searches to consult with other Federal law
enforcement officers to protect against hostile acts,
terrorism, or intelligence activities. Not in Administration
proposal.
Section 505: Miscellaneous National-Security Authorities.--
In counterintelligence investigations, the Director of the
FBI or his designee, not lower than the Deputy Assistant
Director, may request telephone, financial, or credit records
of an individual if he certifies that the information
sought is (1) relevant to an authorized foreign
counterintelligence investigation, and (2) that there are
"specific and articulable" facts finding that the
person/entity from whom the information is sought is a
foreign power or its agent. Based on Administration's
proposal, but limited to telephone records, financial and
consumer reports.
Section 506: Extension of Secret Service to coordinate with
Justice Department to investigate offenses against U.S.
government computers. Not in Administration proposal.
Section 507: Disclosure of Educational Records (Education
and Workforce).--Allows the release of student education
records if it is determined by the Attorney General or
Secretary of Education (or their designee) that doing so
could reasonably be expected to assist in investigating or
preventing a federal terrorism offense or domestic or
international terrorism. Based on Administration's proposal,
but Ed and Workforce agreed that AAG must get court order to
obtain records and limited to terrorism cases.
Section 508: Disclosure of NCES Information.--Same as 507,
but covers surveys conducted by the Education Department.
Based on Administration's proposal.
TITLE VI--PROVIDING FOR VICTIMS AND PUBLIC SAFETY OFFICERS
subtitle a--aid to families of public safety officers
Section 611: Expedited Payment for Public School Officers
Involved in the Prevention Investigation, Rescue, or Recovery
Efforts Related to a Terrorist Attack.--Expedites payment of
benefits to victims, their families, and public safety
officers. Not in Administration proposal, added at the
request of Representative Nadler.
Section 612: Technical Correction with Respect to Expedited
Payments for Heroic Public Safety Officers.--Makes technical
correction to Nadler bill, which passed into law in mid-
September 2001. Not in Administration proposal, added at the
request of Representative Nadler.
Section 613: Public Safety Officer Benefit Program Payment
Increase.--Increases public safety officer benefits from
$100,00 to $250,000. Not in Administration proposal.
Section 614: Office of Justice Programs.--Adds to the list
of programs within OJP. Not in Administration proposal.
subtitle b--amendments to the victims of crime act of 1984
This subtitle makes changes to the administration of--and
authorizes additional funding for--the crime victims fund.
Not in Administration proposal.
TITLE VI--INCREASED INFORMATION SHARING
This Subtitle expands regional information sharing to
facilitate Federal-state-local law enforcement responses to
terrorism. Not in Administration's proposal.
TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM
Section 801: Terrorist Attacks and Other Acts of Violence
Against Mass Transportation Systems.--Establishes a new
Federal offense for attacking a mass transportation system.
Not in Administration proposal.
Section 802: Definition of Domestic Terrorism.--Creates a
definition for "domestic terrorism" for the limited purpose
of providing investigative authorities (i.e., court orders,
warrants, etc.) for acts of terrorism within the territorial
jurisdiction of the United States. Such offenses are those
that are "(1) dangerous to human life and violate the
criminal laws of the United States or any state; and (2)
appear to be intended (or have the effect)--to intimate a
civilian population; influence government policy intimidation
or coercion; or affect government conduct by mass
destruction, assassination, or kidnapping (or a threat of)."
Same as Administration proposal.
Section 803: Prohibition Against Harboring Terrorists.--
Makes it an offense when someone harbors or conceals another
they know or should have known had engaged in or was about to
engage in federal terrorism offenses. Based on
Administration's proposal
[[Page H7200]]
except that the final bill removes the suspicion prong that
made it an offense to harbor someone merely suspected of
engaging in terrorism.
Section 804: Jurisdiction over Crimes Committed at U.S.
Facilities Abroad.--Extends the special and maritime criminal
jurisdiction of the United States to offenses committed
abroad by or against U.S. nationals. Same as Administration
proposal except those actions involving military personnel
are excluded per Representative Scott's amendment.
Section 805: Material Support for Terrorism.--Permits
prosecution under current crime of material support for
terrorism to occur in "any Federal judicial district in
which the underlying offense was committed, or in any other
Federal judicial district as provided by law," and includes
the provision of "monetary instruments" as "material
support." Same as Administration's proposal.
Section 806: Assets of Terrorist Organizations.--Extends
forfeiture and confiscation authority to "all assets,
foreign or domestic" that are owned or controlled by "any
person, entity or organization engaged in planning or
perpetuating any act of domestic terrorism or international
terrorism against the United States, citizens or residents .
. . or their property." Same as Administration proposal.
Section 807: Technical Clarification Relating to Provision
of Material Support to Terrorism.--Makes clear that whoever
provides material support or resources to terrorists or
foreign terrorists organizations may be subject to criminal
liability under Sec. 2339A or Sec. 2339B. Moreover, proposed
section 407 of the Administration's legislation seemed to gut
the congressional approval requirement and confer upon the
President the independent power to impose agricultural and
medical sanctions on terrorists "wherever they are
located." Same as Administration proposal.
Section 808: Definition of Federal Crime of Terrorism.--
Adds new highly egregious offenses to existing definition of
"Federal crime of terrorism," thereby ensuring that
"coercing government" is an element of the offense along
with other predicates. Also, added predicates are narrowed to
those being the most egregious. Significantly narrower than
Administration's proposal, which would have added more
predicates and eliminated the requirements that the
government prove the crime was committed to influence
government. Final bill also eliminates freedom of press issue
that could have made press disclosure of covert agents a
terrorist offense.
Section 809: No Statute of Limitation for Prosecuting
Terrorism Offense.--Provides that terrorism offenses may be
prosecuted without time limitations, however, more focused
list of offenses will continue to carry an 8-year statute of
limitations except where they resulted in, or created a risk
of, death or serious bodily injury. Administration proposal
did not include more focused list subject to 8-year statute
of limitation.
Section 810: Alternative Maximum Penalties for Terrorism
Crimes.--Provides alternative maximum prison terms for
terrorism crimes, including imprisonment for any term of
years or for life. Based on Administration's proposal, except
modified to provide more measured increases in maximum
penalties where appropriate, including life imprisonment or
supervision only in cases in which the offense resulted in
death.
Section 811: Penalties for Terrorist Conspiracies.--Adds a
new section to the terrorism chapter of the criminal code to
provide that the maximum penalties for conspiracies to commit
terrorism are equal to the maximum penalties authorized for
the objects of such conspiracies (similar approach is found
in the criminal code with respect to drug crimes). Based on
Administration proposal, except narrowed to add conspiracy
provisions only to a few criminal statutes where appropriate,
and to provide that the penalties for such conspiracies may
not include death.
Section 812: Post-Release Supervision of Terrorists.--
Authorizes longer supervision periods, including lifetime
supervision, for persons convicted of terrorism crimes (a
similar approach is found in the drug crimes statute, which
imposes a term of supervised release of at least 10 years,
instead of 5 years, in cases where there is a prior
conviction). Narrower than the Administration's proposal
because it contains more measured increases in maximum
penalties where appropriate, including life imprisonment or
supervision in cases in which the offense resulted in death.
Section 813: Inclusion of Acts of Terrorism Crimes as
Racketeering Activity.--Provides that any terrorism-related
crimes can be RICO predicates. Same as Administration
proposal.
Section 814: Deterrence and Prevention of Cyberterrorism.--
Alters damage and civil liability triggers for computer
hacking offenses. Also eliminates mandatory minimums in
current law for computer hacking offenses. Not in
Administration proposal.
Section 815: Additional Defense to Civil Actions Relating
to Preserving Records in Response to Government Requests.--
Eliminates any ISP liability to customers for turning
customer records over to law enforcement pursuant to any
statutory authorization. Not in Administration proposal.
Section 816: Development and support of Cybersecurity
Forensic Capabilities.--Requires the Attorney General to
establish regional computer forensic laboratories. Not in
Administration proposal.
Section 817: Biological Weapons.--Makes it an offense for a
person to possess a biological weapon that is not reasonably
justified, under the circumstances, by a prophylactic,
protective, bona fide research, or other peaceful purpose.
Similar to Administration proposal except that provision
stating that government does not have to establish mens rea
of defendant has been removed in the conference report.
TITLE IX--IMPROVED INTELLIGENCE
Not in Administration proposal:
Section 901: Responsibilities of Director of Central
Intelligence Regarding Foreign Intelligence Collected under
FISA.--Authorizes the Director of the CIA to establish
requirements and priorities for collecting foreign
intelligence, and to provide assistance to the Attorney
General in ensuring that information derived from electronic
surveillance or physical searches is properly disseminated.
The DCI cannot direct, manage, or undertake electronic
surveillance or physical search operations unless otherwise
authorized by statute or executive order.
Section 902: Inclusion of International Terrorist
Activities within Scope of Foreign Intelligence under the
National Security Act.--Includes international terrorist
activities within the scope of foreign intelligence under the
National Security Act.
Section 903: Sense of Congress.--Sense of Congress on the
establishment of intelligence relationships to acquire
information on terrorists.
Section 904: Temporary Authority to Defer Submittal to
Congress of Reports on Intelligence and Intelligence-Related
Matters.--Grants DCI temporary authority to delay submittal
of reports to Congress on intelligence matters.
Section 905: Disclosure to Director of Central Intelligence
of Foreign Intelligence-Related information with Respect to
Criminal Investigations.--Requires the Attorney General to
disclose to the CIA Director foreign intelligence acquired by
the Justice Department in the course of a criminal
investigation, except when disclosing such information would
jeopardize an ongoing investigation.
Section 906: Foreign Terrorist Asset Tracking Center.--
Requires the DCI, the AG, and the Secretary of the Treasury
to report to Congress by February 1, 2002, on the
desirability of a Foreign Asset Tracking Center to track
terrorist assets.
Section 907: National Virtual Translation Center.--Requires
the DCI and the FBI to report to Congress on the
establishment of a National Virtual Translation Center.
Section 908: Training of Government Officials Regarding
Identification and Use of Foreign Intelligence.--Requires DCI
and AG to establish program to train officials to handle
foreign intelligence information.
TTLE X--MISCELLANEOUS
Not in Administration proposal:
Section 1001: Review of the Department of Justice.--
Requires DOJ Inspector General to designate one official to
receive complaints of civil liberties and civil rights abuses
and to report such abuses to Congress semi-annually. Added at
Mr. Conyers' request.
Mr. Speaker, I yield 4 minutes to the gentleman from Virginia (Mr.
Scott), a member of the Committee on the Judiciary who has worked
ceaselessly on this matter.
Mr. SCOTT. Mr. Speaker, I thank the gentleman for yielding.
First of all, I think it is appropriate to comment on the process by
which the bill is coming to us. This is not the bill that was reported
and deliberated on in the Committee on the Judiciary. It came to us
late on the floor. No one has really had an opportunity to look at the
bill to see what is in it since we have been out of our offices. The
report has just come to us. It would be helpful if we would wait for
some period of time so that we can at least review what we are voting
on, but I guess that is not going to stop us, so here we are.
First of all, this has limited to do with terrorism. This bill is
general search warrant and wiretap law. It is not just limited to
terrorism. Had it been limited to terrorism, this bill could have
passed 3 or 4 weeks ago without much discussion, but we are talking
about wiretapping law.
Now, the present law under wiretap provides that you cannot wiretap
until you have probable cause that a crime has been committed. Then you
can get a wiretap order from a judge. There is an exception for Federal
intelligence. It is a much lower standard, but you can only use the
wiretap information, what you gain, in foreign intelligence. So law
enforcement officials have no incentive to try to push the envelope
using the foreign intelligence idea as a pretext excuse for getting
wiretap orders, because if they find anything, under criminal law, they
cannot use it anyway.
This bill makes three significant changes. One, it reduces standards
for getting a foreign intelligence wiretap from one where it is a
primary, the reason you are getting it, to: it is a significant reason
for getting the wiretap.
[[Page H7201]]
Much less. Well, we wonder, if it is not the primary reason, why are
you getting the wiretap?
Second, it allows the roving wiretap, so once you find a target, if
he is using cell phones, for example, you can go and find him wherever
he is. Third, you can use the information in a criminal investigation.
The combination gives us the situation where there is very little
standard and one can essentially conduct a criminal investigation
without probable cause.
{time} 1930
If one has, for example, a target who is using cell phones and we get
the wiretap, if he uses a pay phone, we can listen to anybody using a
pay phone. If he is in a club or an organization, a business, one can
go and tap the phones there. If he is visiting the Democratic National
Headquarters, maybe one could tap all the phones there.
I had an amendment that was not accepted that would have required the
police, when they are listening in on these conversations, to stop
listening when the target is not using the phone. When the target
leaves the organization or leaves the building, stop listening.
This amendment was not accepted, so we have a situation where we now
have an incentive to plant these bugs all over the place, and one can
use that information.
If that bothers Members, if they mind the Federal Government
listening in on private conversations, if one thinks there is something
inherently wrong with the government listening in to innocent
conversations, and now remember, for foreign intelligence one does not
even need a crime to start the thing, it can be foreign intelligence, a
trade deal or anything else, and one is listening to everybody's
private conversations.
There are other problems with the bill. There are provisions that
allow detention under certain circumstances that may be indefinite.
We expand the ability of the government to conduct secret searches,
so-called sneak and peak, where we do not tell people we even
investigated. One could start targeting domestic organizations,
designate domestic groups as terrorist groups, and one could start
getting the CIA into designating these groups as targets for criminal
investigations.
Mr. Speaker, there is a lot in this bill that we have not
appropriately considered. That is why we need more time to think of it,
because it goes way past terrorism. This is the way we are going to be
conducting criminal investigations, and therefore, the bill ought to be
defeated under suspension of the rules.
The SPEAKER pro tempore (Mr. Sweeney). The gentleman from Ohio (Mr.
Oxley) is recognized for 10 minutes.
Mr. OXLEY. Mr. Speaker, I yield myself 4 minutes.
Mr. Speaker, I rise in support of the legislation, particularly the
provisions in title III which would represent the most comprehensive
anti-money laundering legislation which the House has considered in
more than a decade. The legislation gives the administration important
new tools with which to wage a global financial war on terrorism, and
to starve Osama bin Laden and others like him of the funding needed to
commit their acts of evil.
The bill that passed the House last week by a 412 to 1 vote has in my
view been improved in conference with the other body. The legislation
targets the specific channels used by terrorists to finance their
operations in this country and globally, including bulk cash smuggling,
international wire transfers to and from foreign banks, and using
informal black market banking systems, such as the ancient network
known as hawala.
The bill also establishes a framework for an unprecedented public-
private partnership that will have as its primary objective the
identification, reporting, and disruption of financial transactions
related to money laundering generally and terrorist activity
specifically.
Finally, the legislation gives the Secretary of the Treasury, in
consultation with other government agencies, the power to impose
countermeasures aimed at combatting overseas money laundering threats,
particularly those emanating from so-called offshore secrecy havens.
It has often been said that an effective international regime for
thwarting money laundering and disrupting terrorist financing is only
as strong as its weakest link. As long as there are jurisdictions that
offer no-questions-asked banking and exert little or no regulatory
oversight of their financial services sectors, international efforts to
impede the flow of dirty money will never fully succeed.
With this legislation, we take a critical step toward smoking
terrorists and other criminal organizations out of the offshore
financial bunkers that for too long have offered them safe haven.
The money laundering portion of this legislation was introduced in
the House on October 3, marked up by the Committee on Financial
Services on October 11, and passed by the House on October 17.
Obviously, to move such complex and far-reaching legislation through
the process so quickly requires an extraordinary level of bipartisan
cooperation. In that regard, I want to pay special tribute to the
committee's ranking member, the gentleman from New York (Mr. LaFalce),
and commend him for his tireless work in committee and in our dealings
with the other body to get the strongest possible bill.
I also want to thank Chairman Sarbanes, my counterpart in the Senate,
and his staff, both for their good faith efforts to reconcile the House
and Senate bills in negotiation late last week, and for their
hospitality in hosting the House delegation in Senator Sarbanes'
hideaway in the Capitol at a time when most of the Capitol complex was
closed. While both the House and Senate were shut out of our office
buildings, both bodies continued to work under less-than-ideal
circumstances to get this critical piece of legislation to the
President's desk this week.
I also want to pay tribute to the gentleman from Wisconsin (Chairman
Sensenbrenner) and the Committee on the Judiciary for their fine work
on the antiterrorism legislation.
Finally, let me also thank the administration for working closely
with the committee to ensure that the new legal authorities that the
executive branch will receive under this legislation are carefully
tailored to meet the nature of the threat that our Nation now
confronts.
The bill that Members will have an opportunity to vote on later
tomorrow is balanced, comprehensive, and bipartisan. It sends the
strongest signal we can send to the terrorists and to those countries
that offer them aid and comfort that the war against terrorism will be
fought in the financial theater as aggressively as the war now being
waged by our brave men and women in uniform.
Mr. Speaker, I reserve the balance of my time.
The SPEAKER pro tempore. The gentleman from New York (Mr. LaFalce) is
recognized for 10 minutes.
Mr. LaFalce. Mr. Speaker, I yield myself 5 minutes.
(Mr. LaFALCE asked and was given permission to revise and extend his
remarks.)
Mr. LaFALCE. Mr. Speaker, the war against terrorism will not be won
unless we cut off al-Qaeda and all terrorist groups from the funds that
sustain their attacks against civilized humanity. We can do that.
Title III of the PATRIOT Act provides the United States absolutely
essential weapons in our fight to disrupt terrorist funding. Title III
provides a comprehensive set of tough new anti-money laundering laws
and strengthens existing anti-money laundering laws.
The bill incorporates the legislation that I introduced in the last
Congress and early in this Congress giving the Secretary of the
Treasury increased authority to block transfers of funds into the
United States financial system from foreign banking systems that are
easily exploited by terrorists and criminal organizations because those
foreign jurisdictions have weak or nonexistent anti-money laundering
regimes.
We have evidence indicating that bin Laden took advantage of weak
regulatory systems overseas to funnel money through U.S. banks to his
associates in the United States, money that was used to finance the
September 11 attacks. We cannot allow the world's bank secrecy havens
to become the
[[Page H7202]]
port of entry into the United States banking system for terrorist
funds.
But, so long as some foreign banks are allowed to hide the identity
of terrorists and narco lords, the legitimate global banking system
will be vulnerable to exploitation by these groups. Our legislation,
incorporated now in the PATRIOT Act, increases the power of the
government to track terrorist and criminal money kept in offshore
secrecy havens.
We cannot succeed alone. All nations must have strong antiterrorist
and anti-money laundering laws. The provisions of our bill give the
United States new tools and leverage in our efforts to raise global
anti-money laundering standards.
The PATRIOT Act also takes aim at hawalas, the underground banking
system that is used by international terrorists like al-Qaeda. Informal
global money transmitting systems allow terrorists to send money around
the world with little or no paper trail. Our PATRIOT Act reins in the
operation of hawalas by requiring hawalas to register with our
government or face criminal prosecution. Hence, we make unlicensed
hawalas de facto illegal and de facto criminal.
The bill also stiffens the penalty for smuggling cash in and out of
the United States, which is something that a hawala operator will
ultimately engage in at some point.
Mr. Speaker, bin Laden has bragged that he knows how to exploit the
gaps in the Western financial system. The PATRIOT Act is strong
legislation that will enable us to close those gaps and enhance our
fight against terrorists and criminals. It deserves everyone's support.
Mr. Speaker, I reserve the balance of my time.
Mr. SENSENBRENNER. Mr. Speaker, I yield 2 minutes to the gentleman
from Alabama (Mr. Bachus), who is a member of both the Committee on the
Judiciary and Committee on Financial Services.
Mr. BACHUS. Mr. Speaker, I thank the gentleman for yielding time to
me.
Mr. Speaker, we learned something 6 weeks ago. It was a very painful
lesson. We learned that legislation was needed to provide law
enforcement and intelligence additional tools that they needed to
address the threat of terrorism and terrorists.
Mr. Speaker, we may not have understood and appreciated the word
"terrorism" and what terrorists were before September 11, but we
certainly do today. We know who they are, we know what they are capable
of. We may not have appreciated the need for this legislation before
September 11, but surely today we appreciate the need for this
legislation and the urgency of such legislation.
Mr. Speaker, we may not have thought too much about giving law
enforcement stronger tools for combatting international terrorism
before September 11, but today we think a lot about that. We realize
that that needs to be done. We did not investigate terrorists and
identify them on a real-time basis before September 11. We sometimes
overlooked the urgency. We know that urgency today.
Finally, Mr. Speaker, we now know that we need to cooperate not only
between agencies, law enforcement agencies, but between countries and
between the private sector and government to track terrorists, to track
their assets, to monitor their activities. If we did not realize that
before September 11, surely we know now the price we pay when they
exploit our vulnerabilities. They exploited our vulnerabilities, our
free society, and the losses were great. It is time to close those
vulnerabilities.
Mr. CONYERS. Mr. Speaker, I yield 3 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee), a distinguished member of the Committee on the
Judiciary.
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the ranking member for
yielding time to me.
Mr. Speaker, I think Americans know very well that character is
judged not so much on how a man or woman acts in the good times, but
how we act in the face of adversity. This country certainly has faced
adversity over these last couple of weeks, and I am proud of what
America has stood for.
That is why I rise today with caution and concern regarding the new
proposed Uniting and Strengthening America, the U.S.A. Act, not because
I do not believe there should not be additional tools to help us fight
against the horrific acts of terrorism, but because I believe in the
face of adversity America should lift up its virtues of equality,
justice, freedom, and the Bill of Rights.
I am certainly glad to realize that some of the work of the Committee
on the Judiciary, which I supported and which we voted out early on a
legislative initiative that was voted 36 to 0, that in this new
initiative we can see some of that work.
I do believe that in making our country safe against terrorism, that
we do not necessarily need to do away with due process, and that we
should not target innocent people unfairly because of their race,
color, sexual orientation, creed, gender, or religion.
I support some of the provisions in this legislation and I hope to
consider them overnight, because unfortunately, the process that
brought this bill to the floor disturbs me.
I offered an amendment that would allow detention cases to be brought
in local courts, rather than just the District of Columbia. I am very
gratified to know that it is in this bill. It means that people who
have and need resources of their lawyers and need to have family
members and witnesses do not have to travel to the District of
Columbia.
I am relieved that there is an immigration relief for persons being
sponsored by victims who died on September 11, so those who were being
sponsored, if their sponsor died, they can still access legalization.
The bill also clarifies that the AG's new detention authority is
limited to cases of terrorism, and detention cases must be reviewed
every 6 months. That is a positive side.
It is also good to know that the sunset provision has now been
established not as an extended, unending 5-year period with the
authority resting in the administration, but it is cut off at 4 years,
so America knows that we are using these tools to help us fight
terrorists but not fight Americans.
But I am concerned, Mr. Speaker. I am concerned that the legislation
still permits the Attorney General indefinitely to incarcerate or
detain noncitizens based on mere suspicion, and to deny readmission to
the United States of such noncitizens.
I am also concerned that the AG and the Secretary of State has the
power to incarcerate members of domestic organizations as terrorists.
One might simply be paying dues and be declared part of a terrorist
organization.
It allows widespread investigation of Americans just on the basis of
intelligence purposes. It allows searches of highly personal financial
records. It allows student records to be searched.
I would say this, Mr. Speaker: Let us show America's character and
bring forth a bill that all of us will find a good balance on. We will
review this bill, but I hope we will find an opportunity to vote on a
good bill and provide the leadership that we need to lead.
{time} 1945
Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from New
Jersey (Mrs. Roukema), the vice chair of the committee.
(Mrs. ROUKEMA asked and was given permission to revise and extend her
remarks.)
Mrs. ROUKEMA. Mr. Speaker, I thank the gentleman from Ohio (Mr.
Oxley) for yielding the time. I rise in strong support of this
legislation today.
Many of us in this Chamber have worked for a number of years to
provide the law enforcement tools that we need to fight the drug trade,
money launderers, and terrorists; and in the wake of September 11, the
terrorist attacks, this has never been more important. And indeed, we
may soon learn that the anthrax attacks are financed by the same money
sources. We do not know that yet.
The point is that, as has already been outlined, particularly by the
gentleman from New York (Mr. LaFalce), I want to commend him for
stating some of the specifics of this legislation. He has been a
leader, and we have
[[Page H7203]]
worked together on this, and whether we are talking about the bill
prohibiting correspondent banking privileges for offshore shell banks
and authorizes the Secretary of the Treasury to take special measures
if a foreign country or bank is deemed to present a money laundering
threat, the gentleman from New York (Mr. LaFalce) went into great
detail on that, and I want to associate myself with his remarks.
The bill is not perfect. I am sorry that, for example, we excluded
making it a crime to smuggle over $10,000 interstate. We included it
for overseas, but it was not included for interstate. Nevertheless,
this is an excellent bill.
I would like to say to some of the nay sayers that complain about the
provisions, as to whether or not they deny due process or whatever, the
question has been asked are we endangering the rights and privacy of
innocent Americans. The answer is no, but it does give our law
enforcement officials the requirements that they need for their careful
investigation. It gives our regulators and law enforcement officials
what they need to get the job done.
May I say that in this brave new world of terrorists, we must cripple
this demonic network. Let me just have a couple of additional seconds
to say that unless we have this strong provision in the bill, it would
make a mockery of the legislation; and it is an absolutely essential
core of anti-terrorist legislation.
Mr. LAFALCE. Mr. Speaker, I yield 2 minutes to the gentleman from
Massachusetts (Mr. Frank) to discuss the anti-money laundering
provisions.
Mr. FRANK. Mr. Speaker, as a member of both committees, who has sat
through both markups, I get to make two different sets of remarks, and
I will have comments about the procedures later. But I want to
congratulate the gentleman from New York (Mr. LaFalce) and the
gentleman from Ohio (Mr. Oxley), as well as Members of the other body,
for their persistence in bringing this bill before us.
We have talked a lot about the changes in perception people have
undergone since the terrible mass murders of September 11. This is one
of the most profound. This needs to crack down on those Nations which
allow their banking systems to be used as cover for a variety of
illegal activities, whether it is drugs or tax evasion or terrorism.
That was long overdue, and it was opposed by the administration and
some others. And I welcome the recognition now that cracking down on
this misuse of money is very important.
There was a great disconnect between people denouncing the terrorism
and not wanting to end its financing, and I must say I was struck and I
am pleased that the administration has come around now to be supportive
of the bill. When the Secretary of the Treasury testified and the
gentleman from New York (Mr. LaFalce), who was a main sponsor and
author of this bill, asked if he was for money laundering a couple of
weeks after the terrorism, he said only if it gets added some good due
process provisions.
My initial reaction was to hope he would run into the Attorney
General that day and tell him about the value of due process
provisions, because we had a period there where it seemed to me that
the administration thought that due process existed for bank accounts
but not necessarily for people. What we are getting is a kind of
convergence, and I think that is very important.
This is why I wanted to stress this bill in particular, this money
laundering section, which is so important that has been so sought by
law enforcement officials at all levels. I was with the district
attorney of New York County yesterday, Mr. Moore, who said, again, that
is all on this subject, it has to be enforced well.
This is not self-executing, and the bill will become law and the
Secretary of the Treasury and his aides will have a great weapon that
can be used. It should be used sensitively and sensibly, but it can and
must be used. And I hope that the initial reluctance to get this passed
will not get in the way of its effective enforcement.
Mr. SENSENBRENNER. Mr. Speaker, I yield 2 minutes to the gentleman
from California (Mr. Dreier), the distinguished chairman of the
Committee on Rules.
(Mr. DREIER asked and was given permission to revise and extend his
remarks.)
Mr. DREIER. Mr. Speaker, I rise in strong support of this legislation
and want to congratulate the leadership of both the Committee on the
Judiciary and the Committee on Financial Services for bringing this
forward. I support the provisions that have come from both committees.
I think they have done a fine job.
Obviously, everyone has said it, September 11 changed our lives. And
in past wars when we have talked about men and women in uniform, we
have talked about men and women who are in the military; and today, we
have to refer to men and women in uniform right here in the United
States who are in law enforcement, who are in the midst of this war.
That is why I believe that the steps taken in this legislation will
go a long way towards empowering them to deal with the very tragic
situation that we face. We all know one of the provisions, I think,
that is very, very important to note is that the technological changes
that we have observed over the past couple of decades have clearly
provided an impetus for the changes that are being made in this
measure. And in the past, our own surveillance structure has been used
against us whereby people could continue to move with the new
technology, with cellular telephones, et al, and they could not be
traced.
Under this bill, an individual will be able to be targeted; and
regardless of what mode of communication will be utilized by this
individual, the ability to follow them will be there. It is important
to note that the content of conversations will not be taken, but in
fact, the numbers will.
I think this is a very, very helpful and positive step forward. I
also happen to be a proponent of the sunset provisions. I am concerned
about civil liberties for everyone, and I believe that it is important
to note that some of these provisions may, may be unnecessary at
another time in our Nation's history. So I believe that the agreement
for the 4-year sunset provision is an appropriate one, and I
congratulate my colleagues for coming to this compromise on it.
I believe that this measure should, as is evidenced here, enjoy
strong bipartisan support; and I thank my friend, the gentleman from
Wisconsin (Mr. Sensenbrenner) for the time.
Mr. CONYERS. Mr. Speaker, I am pleased to yield 2 minutes and 40
seconds to the gentlewoman from California (Ms. Lofgren), a
distinguished member of the Committee on the Judiciary.
Ms. LOFGREN. Mr. Speaker, having had a chance to review the bill
before us, I find that I must support the measure. I will say this is
not a perfect bill. It is not as thoughtful as the Committee on the
Judiciary product, although there is much that we did work on in the
bill; but it is better than what the House passed last week.
I have been an admirer of the committee chairman's insistence on
regular order in the House, and I think that had he been successful in
his quest for regular order on this bill, we would have an even better
product than we do.
I would also like to note, however, that there has been a lot of
loose language among people who oppose this bill. And people are
perfectly free to disagree with it, but it is important that we not be
incorrect about what is actually in the bill.
I actually heard someone say that the bill would provide for
indefinite incarceration on a mere suspicion by the Attorney General.
That is simply not the case. The Attorney General may detain persons,
but he has to certify, and he has to have reasonable grounds to believe
that the individual is involved in terrorism, and that decision is
reviewable by a court. So that is real. To say it is mere suspicion and
indefinite is certainly not the case; and of course, there is a 7-day
limit where a court would take a look at the case.
There are a couple of other issues I wanted to raise. Section 403 and
405 do wonderful things in terms of upgrading technology and
integrating law enforcement information with the INS and with the
consular officers. However, I think it is important for us to
understand that the problem in this arena is not primarily a
legislative
[[Page H7204]]
one. It is a managerial one, and the immigration service has not been
successful in implementing the computer efforts that the Congress has
already directed them to do. So I am hopeful that the committee can
really assert ourselves in our oversight jurisdiction to make sure that
the agency actually performs these necessary tasks.
Section 814 reiterates a flawed approach to computer hacking; but it
is no worse, I think, than current law. And I would point out that the
burden of proof on deportation has been shifted in a way that conflicts
with the most recent Supreme Court case on that point. Thank goodness
we have a severability clause because that provision is likely
unconstitutional. These matters could have been corrected had we
engaged in regular order.
Nevertheless, the gentleman from Texas (Mr. Armey) is fond of saying
let us not let the perfect be the enemy of the good; and I think that
is good advice.
Mr. OXLEY. Mr. Speaker, I am pleased to yield 3 minutes to the
gentlewoman from New York (Mrs. Kelly).
(Mrs. KELLY asked and was given permission to revise and extend her
remarks.)
Mrs. KELLY. Mr. Speaker, I rise in strong support of the conference
report for the PATRIOT Act, in particular, title III of the Anti-Money
Laundering Act.
This legislation takes substantive steps to halt the transfer of
illegal funds which are used to perpetrate cowardly acts of terrorism
against Americans and support the illegal drug trade. We have a duty
and a responsibility to do all in our power to stop these illegal
activities. The legislation takes this fight to a new level by creating
new public-private partnerships that will enable government and
businesses to work together to stop these illicit funds.
In addition, the legislation will make progress to stop hawalas, an
ancient system of trading value from one place to another in an attempt
to avoid taxes, tariffs, and detection. The bill will combat hawalas by
ensuring that the law which requires money transfer businesses to be
licensed can be used to prosecute these illusive operations.
This legislation will also ensure that financial institutions of all
sizes implement programs to combat their vulnerabilities to those who
would seek to use them to transfer or launder illegal funds. The
Treasury is required to review the new law and publish rules to ensure
that the size, location, and activities of these businesses are taken
into account.
I would like to enter into a brief colloquy with the gentleman from
Ohio (Mr. Oxley).
I understand this legislation is intended to impart greater authority
and flexibility to the Secretary of the Treasury, particularly
regarding the due diligence provisions in paragraphs 1, 2, and 3 in
section 312(b) of the bill. Is this the understanding of the gentleman
from Ohio?
Mr. OXLEY. Mr. Speaker, will the gentlewoman yield?
Mrs. KELLY. I yield to the gentleman from Ohio.
Mr. OXLEY. Mr. Speaker, that is my understanding.
Mr. LaFALCE. Mr. Speaker, will the gentlewoman yield?
Mr. Speaker, that is not the language we agreed upon that is in the
bill. The Secretary does not have discretion.
Mrs. KELLY. Reclaiming my time, the Congress has come together to
strengthen our financial laws to combat those who seek to harm our
Nation. I ask my colleagues on both sides of the aisle to support this
Act. Let us make America financially safe and strong.
Mr. LaFALCE. Mr. Speaker, I yield myself such time as I may consume.
I think this was an attempt that we just witnessed to try to give
improper, incorrect legislative intent to the language that we did
craft. The language that we crafted said specifically that there is a
finding by an international organization, in which the United States
concurs, that if there is an inappropriate regulatory regime in a
country, then the Secretary must enforce heightened due diligence.
There is no discretion at that point. Those three provisions were
debated, an amendment was offered, it was defeated; and we ought not to
attempt to rewrite it now by legislative intent.
{time} 2000
Mr. FRANK. Mr. Speaker, will the gentleman yield?
Mr. LaFALCE. I yield to the gentleman from Massachusetts.
Mr. FRANK. Mr. Speaker, I thank my ranking member for yielding me
this time, because I participated in this and he is absolutely right.
There were two points at which there could have been this issue. As
originally presented, the bill did say that a decision by an
international organization that made that finding was binding on the
United States and due diligence resulted. The gentleman from Louisiana
(Mr. Baker) offered an amendment to say no because he did not want the
American Government to be precluded by a decision with which it might
have disagreed.
We then worked out an amendment and the amendment split the
difference, and it said the decision would not be binding on the U.S.
unless the U.S. was a member of the organization that made it and
concurred in the decision. But as the gentleman from New York pointed
out, once the United States has concurred in the decision that a
particular country is that sort of a haven, then the due diligence is
automatic. In other words, the time to reject is when you say, okay,
they are not really that kind of a haven.
But the amendment clearly said and the debate clearly said that once
the United States concurs in the finding of the international
organization that this is a money laundering haven, then all of the due
diligence must be applied.
Mrs. KELLY. Mr. Speaker, will the gentleman yield?
Mr. LaFALCE. I yield to the gentlewoman from New York.
Mrs. KELLY. With all due respect to the ranking member, I believe
that he may be referring to a different part of the bill. The part I
was referring to was paragraphs 1, 2 and 3 of section 312(b) of the
bill.
I think if the gentleman will refer to that, he will see that there
has been no change other than what we have agreed to.
Mr. LaFALCE. Reclaiming my time, Mr. Speaker, there would then be no
need for interpretation or additional legislative intent.
What I was concerned about is there were three specific provisions
that were attempted to be deleted by amendment, which we defeated. In
fact, the amendment was withdrawn. Subsequent to that, the gentleman
from Louisiana (Mr. Baker) offered an amendment which would have given
discretion to the Secretary of the Treasury as to whether or not
heightened due diligence would be called for. We defeated that.
Heightened due diligence is called for automatically upon the finding.
So long as the gentlewoman is not dealing with those sections, fine.
But my fear was that the gentlewoman was dealing with those particular
sections that we had considerable debate about.
Mrs. KELLY. If the gentleman will continue to yield, I was dealing
with section 312, not section 311.
Mr. LaFALCE. The gentlewoman mentioned three specific points in
there, and I was concerned they were the three that had been attempted
to be deleted during committee debate.
Mrs. KELLY. As a member of the committee, I was there for those votes
and there for that discussion, and I believe that that was section 311,
not 312. I was referring in my discussion with the chairman of the
committee to section 312.
Mr. LaFALCE. Mr. Speaker, I reserve the balance of my time.
Mr. SENSENBRENNER. Mr. Speaker, I yield 1 minute to the gentleman
from Illinois (Mr. LaHood).
Mr. LaHOOD. Mr. Speaker, I thank the gentleman for yielding me this
time, and I rise today to explain that I will be voting in favor of the
Patriot Act of 2001.
Previously, I was one of three Republicans to cast a "no" vote on
the bill, but I believe that the addition of the money laundering
provisions of this bill are a great addition to the bill and certainly
enhance the ability of law enforcement to do what they need to do.
Also, the provision of sunset for 4 years, which the Senate includes no
sunset, but the 4-year provision is a good provision.
[[Page H7205]]
I intend to vote for the bill and I appreciate the kind of provisions
that have been added to make this a much better bill. I thank the
chairman for the opportunity to express my support.
Mr. CONYERS. Mr. Speaker, I yield 3\1/4\ minutes to the gentleman
from North Carolina (Mr. Watt), who is on both committees, and I
understand the gentleman from New York (Mr. LaFalce) will yield the
balance of his time.
Mr. LaFALCE. Mr. Speaker, I yield the balance of my time to the
gentleman from North Carolina (Mr. Watt).
Mr. WATT of North Carolina. Mr. Speaker, may I inquire as to how much
time I have been yielded in total?
The SPEAKER pro tempore (Mr. Sweeney). The gentleman from North
Carolina (Mr. Watt) has 3\3/4\ minutes, with the 30 seconds yielded by
the gentleman from New York (Mr. LaFalce).
Mr. CONYERS. Mr. Speaker, what is the time remaining for all sides?
The SPEAKER pro tempore. The gentleman from Wisconsin (Mr.
Sensenbrenner) has 10 minutes remaining, the gentleman from Michigan
(Mr. Conyers) has 8\1/2\ minutes remaining, before yielding, the
gentleman from Ohio (Mr. Oxley) has 1\1/2\ minutes remaining, and the
gentleman from New York (Mr. LaFalce) has 30 seconds remaining.
Mr. CONYERS. Mr. Speaker, I yield 4\1/4\ minutes to the gentleman
from North Carolina (Mr. Watt).
The SPEAKER pro tempore. The gentleman from North Carolina (Mr. Watt)
is recognized for 4\1/4\ minutes.
Mr. WATT of North Carolina. Mr. Speaker, I yield to the ranking
member of the committee, the gentleman from Michigan (Mr. Conyers).
Mr. CONYERS. Mr. Speaker, I thank the gentleman. I would like to make
it clear, Members of the House, that I am very proud of the results
that have come out with reference to money laundering because we
dropped the administration proposal that would have eliminated due
process safeguards that would have prevented RICO liability for tobacco
companies, and I am very proud of that. My reservations that continue
as we end tonight's debate is on the bill and the issues that came out
of the House Committee on the Judiciary.
And I thank my colleague for yielding.
Mr. WATT of North Carolina. Mr. Speaker, reclaiming my time, I thank
both gentlemen for yielding me this time.
I voted for the Committee on the Judiciary's version of the anti-
terrorism bill. I voted against the bill that came to the floor because
it was a far cry from the Committee on the Judiciary's bill. I voted in
the Committee on Financial Services for the money laundering provisions
of the bill. And I feel like I am in a really, really difficult
position with these bills, now having been put together, because the
money laundering provisions which were reported out of the Committee on
Banking and Financial Services, I think, are worthwhile and needed
provisions and strike a good balance in terms of protecting the rights
of individuals in our country.
I would have thought that if any committee would have been
overstepping due process bounds, it might have been the Committee on
Financial Services, not the Committee on the Judiciary. So I find
myself in the same position that the gentleman from Michigan (Mr.
Conyers) has expressed. Were the money laundering provisions a
freestanding bill, I would certainly support them. But I think the
Committee on the Judiciary part of this bill goes too far.
And let me be blunt. Some of us, who have a different history in
America, with delegation of authority to the Government and the abuse
of that authority, proceed a lot differently than others when we talk
about giving authority to the Government that can be abused. And I
think that is why we are having so much trouble in this debate. We
cannot just come in in the middle of a terrorism episode and forget all
of the history that has occurred in our country.
Some groups in our country have had their rights violated, trampled
on by the law enforcement authorities in this country; and so we do not
have the luxury of being able to just sit back and give more authority
than is warranted, the authority possibly to abuse due process through
law enforcement, even in the context of what we are going through now.
This is a very difficult time. I acknowledge that it is. But I think we
are giving the Government and law enforcement too much authority in
this bill.
We drew a very, very delicate, fine balance in the Committee on the
Judiciary. Unfortunately, we took several giant steps backwards when we
passed the House version of the bill; and now we have taken a couple of
steps forward, more toward the Judiciary bill. But I cannot justify
voting for this bill only because it is better than what the House
previously passed. It still does not measure up, and I encourage my
colleagues to vote against it.
Mr. OXLEY. Mr. Speaker, I have 1\1/2\ minutes remaining; is that
correct?
The SPEAKER pro tempore. That is correct.
Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume to
close for our side.
Mr. Speaker, this has been a legislative process at its best, the
Congress coming together, recognizing a very, very serious problem: the
fact that our law enforcement people, the Secretary of the Treasury,
currently do not have the powers and the tools necessary to deal with
this horrible threat known as terrorism, this new kind of war. The
Congress came together, both Republicans and Democrats from both sides
of the Capitol, to craft this legislation.
This is going to pass by an overwhelming margin. I think we all
understand that. Because the Members recognize, a, that the committees
have done their work, have made the compromises, have made the
necessary changes to get a piece of legislation that can pass, be sent
to the President, and can indeed solve this very, very difficult
problem. Nothing could be more important in our careers here in the
Congress, no matter how long we stay, than to protect the American
people and to make certain that the people who seek to terrorize us and
to kill our citizens are brought to justice, and, indeed, even more
importantly stop these individuals before they commit these heinous
acts.
So from my perspective, this is one of the proudest moments of my 20
years here in the Congress, to participate in this wonderful exercise
of democracy and positive legislation. For that, I think all of us
deserve a great deal of credit.
Mr. Speaker, I yield back the balance of my time.
Mr. SENSENBRENNER. Mr. Speaker, I yield 4 minutes to the very
distinguished gentleman from the Commonwealth of Massachusetts (Mr.
Delahunt).
Mr. DELAHUNT. Mr. Speaker, I thank the chairman for yielding me this
time, and let me respond for a moment to the gentleman from North
Carolina. There is no one for whom I have such profound respect as I do
the gentleman from North Carolina (Mr. Watt), and I listen carefully to
what he says, because what he says always rings true.
In this particular case, however, I do have a disagreement, because
we hear much about roving wiretaps, we hear much about expanded powers;
but I think it is absolutely essential to note that the expansion of
powers do not go to the criminal side of the bill that is before us. In
other words, the safeguards that are inculcated in our jurisprudence
through the fourth amendment of the Constitution are still there. All
those checks and balances are still there.
Clearly, there is an unease; and I share some of these concerns. I do
not think that there was any doubt in the aftermath of September 11
that it was clear that the administration was going to come to the
Congress to seek additional authorities to deal with the terrorist
attacks on our Nation. And while all of us were ready to and willing to
grant them, what was appropriate, many, including myself, also braced
for a frontal assault on civil liberties. In that regard, even the
administration proposal was most notable, in my opinion, for what it
did not contain: no new death penalty provisions, no new mandatory
sentences.
On the other hand, the proposal did contain a number of profoundly
disturbing features, including provisions that would have authorized
the indefinite detention of nonresident aliens,
[[Page H7206]]
the use in evidence in a criminal prosecution of information illegally
obtained by foreign intelligence services operating abroad in criminal
prosecutions in the United States, and the use of wiretap authority
under the so-called FISA Act, even when the real purpose of the wiretap
had little or nothing to do with intelligence gathering.
Now, we all know what happened here on the floor of the House when
the committee bill came before the body.
{time} 2015
Much was accomplished in that committee. It has been mentioned time
and time again that it was a unanimous vote, and both the chairman and
the staffs on both side and the gentleman from Michigan (Mr. Conyers)
really do deserve our gratitude.
However, in the aftermath of what happened here, many of us could not
support the bill. I was one of those who voted against it. But the good
news is that there were subsequent negotiations with the Senate, and it
has resulted in a better bill. Among other things, and it has been
mentioned again and again, that there is a sunset provision.
The sunset provision obviously will give us a second look and correct
the problems that we hope will not arise, but many of us fear. At this
point in time I want to commend the gentleman from Massachusetts (Mr.
Frank) because he participated in those negotiations and really did
improve the bill that left the floor of this House.
Having said that, I still harbor reservations about some aspects of
the bill. For example, it allows disclosure of secret grand jury
information to intelligence and national security officials without a
court order. This is a serious departure from our criminal
jurisprudence, and I cannot understand why it is included because
securing a court order is a simple procedure. It would not hinder an
investigation. However, notwithstanding such reservations, I have to
acknowledge we have come a long way and I will support the bill.
Mr. CONYERS. Mr. Speaker, I yield 1 minute to the gentleman from New
Mexico (Mr. Udall).
(Mr. UDALL of New Mexico asked and was given permission to revise and
extend his remarks.)
Mr. UDALL of New Mexico. Mr. Speaker, I supported the bipartisan bill
that came out of the Committee on the Judiciary; and sadly, that is not
before us today and it is not the bill that we would have been able to
support and that I could have supported with enthusiasm.
The bill that passed the House was improved upon by the conference.
Court supervision was added to the grand jury provisions. Money
laundering provisions are now in the bill; and as we know, the first
shot that was fired by this administration was one using the freezing
of assets and monetary measures. Probably the saving grace here is that
the sunset provision forces us to come back and to look at these issues
again when heads are cooler and when we are not in the heat of battle.
Mr. CONYERS. Mr. Speaker, I yield 2 minutes to the gentleman from
Massachusetts (Mr. Frank).
Mr. FRANK. Mr. Speaker, I do not know how I am going to vote on this
bill yet because I have a notion that a bill of this weight, I ought to
read it.
What I want to talk about now is my deep disappointment in the
procedure. The gentleman from Wisconsin (Mr. Sensenbrenner), the
chairman of the committee, has fought hard for a fair chance for the
Members to look at things; but on the whole, his efforts have not been
honored.
We now, for the second time, are debating on the floor a bill of very
profound significance for the constitutional structure and security of
our country. In neither case has any Member been allowed to offer a
single amendment. At no point in the debate in this very profound set
of issues have we had a procedure whereby the most democratic
institution in our government, the House of Representatives, engages in
democracy.
Who decided that to defend democracy we had to degrade it? Who
decided that the very openness and participation and debate and
weighing of issues, who decided that was a defect at a time of crisis?
This is a chance for us to show the world that democracy is a source of
strength; that with our military strength and our determination and our
unity of purpose goes a continued respect for the profound way in which
a democracy functions.
This bill, ironically, which has been given all of these high-flying
acronyms, it is the PATRIOT bill, it is the U.S.A. bill, it is the
stand up and sing the Star Spangled Banner bill, has been debated in
the most undemocratic way possible, and it is not worthy of this
institution.
There is no reason why we could not have had this open to amendment
tonight. This bill should not be debated now. Was it really necessary
to debate one of the most profound pieces of legislation and its impact
on our society that we have had, was it really necessary to debate it
at night after all of the Members who have been working all day were
told to go home? Why could this not have been a full-fledged debate
with some amendments? I think because leadership of the House thought
Members might have voted for a 3-year sunset. They might have voted not
to have the burden of proof be on someone to prove his innocence in a
criminal trial.
Mr. Speaker, the House has not been well served by a procedure which
degrades democracy in the name of defending it.
Mr. CONYERS. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, no one has appreciated the attempts at fairness more
than the ranking member of the Committee on the Judiciary. The members
of the Committee on the Judiciary had a free and open debate; and we
came to a bill that even though imperfect, was unanimously agreed on.
That was removed from us, and we are now debating at this hour of
night, with only two copies of the bill that we are being asked to vote
on available to Members on this side of the aisle. I am hoping on the
other side of the aisle they at least have two copies.
Mr. Speaker, there is something wrong with that process. The
gentleman from Wisconsin (Mr. Obey) first put his finger on it in the
debate in which 79 Members were not able to go along with the bill, is
that a legislative body that does not debate is being railroaded
whether they know it or not, whether they want to accede to it or not.
Although I like the money laundering provisions in the bill, I detest
the work product that bears the name of my committee on it that has now
been joined with this bill. For those reasons as we close this debate,
my inclination is not to support the bill. I hate to say that to
Members because a number have asked me what I was going to do, and I
have said up to now I was not sure.
Mr. Speaker, why should I put my name down in history for all time
that I went for this ridiculous procedure which has been outlined? I do
not feel inclined to support it tonight or tomorrow morning either.
Mr. SENSENBRENNER. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, this is the latest step in a long process to attempt to
pass a bill and send to the President a bill that is vitally needed. It
is vitally needed by our law enforcement officials who are fighting the
battle at home. We do not know how this battle will be fought. We do
not know what tactics the enemy will take. We do not know what agents
the enemy will use.
What we need is we need to get the intelligence necessary to protect
the people of the United States of America from whatever the enemy has
up its sleeve.
The Committee on the Judiciary did marvelous work. The gentleman from
Michigan (Mr. Conyers) was a joy to work with, as were all of the other
members of the committee when we reported the bill out 36 to nothing.
The other body did not have committee consideration. They took their
bill directly to the floor and passed it 96 to one.
What we have before us here today is the result of a preconference
that had bipartisan and bicameral participation. Wednesday of last week
there was a meeting presided over by our distinguish Speaker, the
gentleman from Illinois (Mr. Hastert). In attendance were the gentleman
from Texas (Mr. Armey), the gentleman from Missouri (Mr. Gephardt), the
gentleman from
[[Page H7207]]
Massachusetts (Mr. Frank) representing the gentleman from Michigan
(Mr. Conyers), myself on the House side, and Senators Daschle, Lott,
Leahy, and Hatch representing the Senate leadership and the chairman
and ranking minority membership of the Committee on the Judiciary.
The issues and disagreement between the House and the Senate were
thrashed out thoroughly. I can tell the membership tonight that the
bill that is before us tonight is better than the bill which was passed
on October 12 by a vote of 337 to 79. We were able to get a shorter
sunset. We were able to include money laundering provisions which were
not in our bill because of jurisdictional problems, but which were in
the bill passed by the other body and language was passed by us last
week as a result of the efforts of the chairman and ranking member of
the Committee on Financial Services, the gentleman from Ohio (Mr.
Oxley) and the gentleman from New York (Mr. LaFalce).
Mr. Speaker, this is not a perfect bill. I do not think we can get a
perfect bill given the conflicting issues that are before us; but none
of the changes are new in the legislation that is before us compared to
either the Committee on Financial Services bill of last week and the
Committee on the Judiciary bill of October 12. There is no surprise in
any of these issues. This is a bill that is vitally needed. The
President has called for it. The Attorney General has called for it,
and we should not delay in passing it.
Mr. CONYERS. Mr. Speaker, will the gentleman yield?
Mr. SENSENBRENNER. I yield to the gentleman from Michigan.
Mr. CONYERS. Mr. Speaker, is the gentleman from Wisconsin in any
position to assure Members of the House that there will be a conference
on this measure?
Mr. SENSENBRENNER. Mr. Speaker, it would be my hope that because this
is the result of a preconference, the body would pass this bill
unamended and send it to the Senate. The issues that would have been
debated in the conference were debated in the preconference with the
participants that I just mentioned. There was compromise that took
place between what the Senate passed and what the House passed.
I think that this bill again is better than the bill that we passed
on October 12, and I believe that it is deserving of the support of all
Members of the House of Representatives.
Mr. CONYERS. Mr. Speaker, if the gentleman would continue to yield,
we had a preconference before we had a bill and before there was a
conference; and now we are not going to have a conference.
Mr. SENSENBRENNER. Mr. Speaker, reclaiming my time, I think the
urgency of getting this job done is very, very great. If there were
issues that were not discussed between this body and the other body, I
think the gentleman's representation would be correct. But all of these
issues were discussed.
I think a conference would merely delay passing powers that law
enforcement vitally needs. We have done a good job in balancing the
need for stronger law enforcement powers and civil liberties. I would
urge support of this bill.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Sweeney). The question is on the motion
offered by the gentleman from Wisconsin (Mr. Sensenbrenner) that the
House suspend the rules and pass the bill, H.R. 3162.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. CONYERS. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed until tomorrow.
____________________