§ 1957. Engaging in monetary transactions in property derived from specified unlawful activity

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1986

   Money Laundering Control Act of 1986

   Pub. L. 99–570 title I § 1352(a) · 100 Stat. 3207

   Enacted · 18 U.S.C. § 1957

   Added Pub. L. 99–570, title I, § 1352(a), Oct. 27, 1986, 100 Stat. 3207–21

   Source evidence

   Code source credit
   Added Pub. L. 99–570, title I, § 1352(a), Oct. 27, 1986, 100 Stat. 3207–21

   Enacted provision · exact public law section
   (a) Chapter 95 of title 18, United States Code, is amended by adding at the end thereof the following: “§ 1956. Laundering of monetary instruments “(a) (1) Whoever, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity— “(A) with the intent to promote the carrying on of specified unlawful activity; or “(B) knowing that the transaction is designed in whole or in part— “(i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity; or “(ii) to avoid a transaction reporting requirement under State or Federal law, shall be sentenced to a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater, or imprisonment for not more than twenty years, or both. “(2) Whoever transports or attempts to transport a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States— “(A) with the intent to promote the carrying on of specified unlawful activity; or “(B) knowing that the monetary instrument or funds involved in the transportation represent the proceeds of some form of unlawful activity and knowing that such transportation is designed in whole or in part— “(i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity; or “(ii) to avoid a transaction reporting requirement under State or Federal law, shall be sentenced to a fine of $500,000 or twice the value of the monetary instrument or funds involved in the transportation, whichever is greater, or imprisonment for not more than twenty years, or both. “(b) Whoever conducts or attempts to conduct a transaction described in subsection (a)(1), or a transportation described in subsection (a)(2), is liable to the United States for a civil penalty of not more than the greater of— “(1) the value of the property, funds, or monetary instruments involved in the transaction; or “(2) $10,000. “(c) As used in this section— “(1) the term ‘knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity’ means that the person knew the property involved in the transaction represented proceeds from some form, though not necessarily which form, of activity that constitutes a felony under State or Federal law, regardless of whether or not such activity is specified in paragraph (7); “(2) the term ‘conducts’ includes initiating, concluding, or participating in initiating, or concluding a transaction; “(3) the term ‘transaction’ includes a purchase, sale, loan, pledge, gift, transfer, delivery, or other disposition, and with respect to a financial institution includes a deposit, withdrawal, transfer between accounts, exchange of currency, loan, extension of credit, purchase or sale of any stock, bond, certificate of deposit, or other monetary instrument, or any other payment, transfer, or delivery by, through, or to a financial institution, by whatever means effected; “(4) the term ‘financial transaction’ means a transaction involving the movement of funds by wire or other means or involving one or more monetary instruments, which in any way or degree affects interstate or foreign commerce, or a transaction involving the use of a financial institution which is engaged in, or the activities of which affect, interstate or foreign commerce in any way or degree; “(5) the term ‘monetary instruments’ means coin or currency of the United States or of any other country, travelers’ checks, personal checks, bank checks, money orders, investment securities in bearer form or otherwise in such form that title thereto passes upon delivery, and negotiable instruments in bearer form or otherwise in such form that title thereto passes upon delivery; “(6) the term ‘financial institution’ has the definition given that term in section 5312(a)(2) of title 31, United States Code, and the regulations promulgated thereunder; “(7) the term ‘specified unlawful activity’ means— “(A) any act or activity constituting an offense listed in section 1961(1) of this title except an act which is indictable 18 USC 1961. under the Currency and Foreign Transactions Reporting Act; 84 Stat. 1118. 31 USC 5311 note. “(B) with respect to a financial transaction occurring in whole or in part in the United States, an offense against a foreign nation involving the manufacture, importation, sale, or distribution of a controlled substance (as such term is defined for the purposes of the Controlled Substances Act); 21 USC 801 note. “(C) any act or acts constituting a continuing criminal enterprise, as that term is defined in section 408 of the Controlled Substances Act (21 U.S.C. 848); or “(D) an offense under section 152 (relating to concealment 18 USC 152. of assets; false oaths and claims; bribery), section 215 (relating to commissions or gifts for procuring loans), any of sections 500 through 503 (relating to certain counterfeiting offenses), section 511 (relating to securities of States and private entities), section 543 (relating to smuggling goods into the United States), section 641 (relating to public money, property, or records), section 656 (relating to theft, embezzlement, or misapplication by bank officer or employee), section 666 (relating to theft or bribery concerning programs receiving Federal funds), section 793, 794, or 798 (relating to espionage), section 875 (relating to interstate communications), section 1201 (relating to kidnaping), section 1203 (relating to hostage taking), section 1344 (relating to bank fraud), or section 2113 or 2114 (relating to bank and postal robbery and theft) of this title, section 38 of the Arms Export Control Act (22 U.S.C. 2778), section 2 (relating to criminal penalties) of the Export Administration Act of 1979 (50 U.S.C. App. 2401), section 203 (relating to criminal sanctions) of the International Emergency Economic Powers Act (50 U.S.C. 1702), or section 3 (relating to criminal violations) of the Trading with the Enemy Act (50 U.S.C. App. 3). “(d) Nothing in this section shall supersede any provision of Federal, State, or other law imposing criminal penalties or affording civil remedies in addition to those provided for in this section. “(e) Violations of this section may be investigated by such components of the Department of Justice as the Attorney General may direct, and by such components of the Department of the Treasury as the Secretary of the Treasury may direct, as appropriate. Such authority of the Secretary of the Treasury shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury and the Attorney General. “(f) There is extraterritorial jurisdiction over the conduct prohibited by this section if— “(1) the conduct is by a United States citizen or, in the case of a non-United States citizen, the conduct occurs in part in the United States; and “(2) the transaction or series of related transactions involves funds or monetary instruments of a value exceeding $10,000. “§ 1957. Engaging in monetary transactions in property derived from specified unlawful activity “(a) Whoever, in any of the circumstances set forth in subsection (d), knowingly engages or attempts to engage in a monetary transaction in criminally derived property of a value greater than $10,000 and is derived from specified unlawful activity, shall be punished as provided in subsection (b). “(b) (1) Except as provided in paragraph (2), the punishment for an offense under this section is a fine under title 18, United States Code, or imprisonment for not more than ten years, or both. “(2) The court may impose an alternate fine to that imposable under paragraph (1) of not more than twice the amount of the criminally derived property involved in the transaction. “(c) In a prosecution for an offense under this section, the Government is not required to prove the defendant knew that the offense from which the criminally derived property was derived was specified unlawful activity. “(d) The circumstances referred to in subsection (a) are— “(1) that the offense under this section takes place in the United States or in the special maritime and territorial jurisdiction of the United States; or “(2) that the offense under this section takes place outside the United States and such special jurisdiction, but the defendant is 18 USC 3077. a United States person (as defined in section 3077 of this title, but excluding the class described in paragraph (2)(D) of such section). “(e) Violations of this section may be investigated by such components of the Department of Justice as the Attorney General may direct, and by such components of the Department of the Treasury as the Secretary of the Treasury may direct, as appropriate. Such authority of the Secretary of the Treasury shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury and the Attorney General. “(f) As used in this section— “(1) the term ‘monetary transaction’ means the deposit, withdrawal, transfer, or exchange, in or affecting interstate or foreign commerce, of funds or a monetary instrument (as defined 31 USC 5311 et seq. for the purposes of subchapter II of chapter 53 of title 31) by, through, or to a financial institution (as defined in section 5312 of title 31); “(2) the term ‘criminally derived property’ means any property constituting, or derived from, proceeds obtained from a criminal offense; and “(3) the term ‘specified unlawful activity’ has the meaning 18 USC 1956. given that term in section 1956 of this title..

2. 1988

   Anti-Drug Abuse Amendments Act of 1988

   Pub. L. 100–690 § 6469(a)(2) · 102 Stat. 4181

   Substituted · 18 U.S.C. § 1957(e)

   Pub. L. 100–690, § 6469(a)(2), substituted “and, with respect to offenses over which the United States Postal Service has jurisdiction, by the Postal Service. Such authority of the Secretary of the Treasury and the Postal Service shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury, the Postal Service, and the Attorney General.” for “. Such authority of the Secretary of the Treasury shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury and the Attorney General.”

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 100–690, § 6469(a)(2), substituted “and, with respect to offenses over which the United States Postal Service has jurisdiction, by the Postal Service. Such authority of the Secretary of the Treasury and the Postal Service shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury, the Postal Service, and the Attorney General.” for “. Such authority of the Secretary of the Treasury shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury and the Attorney General.”

   Enacted provision · exact public law section
   (2) Section 1957 of title 18, United States Code, is amended by striking all that follows “appropriate” in subsection (e) and inserting the following: “and, with respect to offenses over which the United States Postal Service has jurisdiction, by the Postal Service. Such authority of the Secretary of the Treasury and the Postal Service shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury, the Postal Service, and the Attorney General.”.

3. 1988

   Anti-Drug Abuse Amendments Act of 1988

   Pub. L. 100–690 title VI · 102 Stat. 4181

   1. Substituted · 18 U.S.C. § 1957(f)(1)

      Pub. L. 100–690, §§ 6182, 6184, substituted “in section 1956(c)(5) of this title” for “for the purposes of subchapter II of chapter 53 of title 31”

   2. Inserted · 18 U.S.C. § 1957(f)(1)

      Pub. L. 100–690, §§ 6182, 6184, inserted “, but such term does not include any transaction necessary to preserve a person’s right to representation as guaranteed by the sixth amendment to the Constitution”

   Source evidence

   Code amendment note
   Subsec. (f)(1). Pub. L. 100–690, §§ 6182, 6184, substituted “in section 1956(c)(5) of this title” for “for the purposes of subchapter II of chapter 53 of title 31” and inserted “, but such term does not include any transaction necessary to preserve a person’s right to representation as guaranteed by the sixth amendment to the Constitution”.

   Enacted provision · exact public law
   TITLE VI— ANTI-DRUG ABUSE AMENDMENTS ACT OF 1988 SEC. 6001. SHORT TITLE. This title may be cited as the “Anti-Drug Abuse Amendments Act of 1988”. Subtitle A— Chemical Diversion and Trafficking SEC. 6051. SHORT TITLE. This subtitle may be cited as the “Chemical Diversion and Trafficking Act of 1988”. SEC. 6052. REGULATION OF LISTED CHEMICALS AND CERTAIN MACHINES. (a) In General.— Section 310 of the Controlled Substances Act (21 U.S.C. 830) is amended to read as follows: “Sec. 310. “regulation of listed chemicals and certain machines (a) (1) Each regulated person who engages in a regulated Records. 21 USC 830. transaction involving a listed chemical, a tableting machine, or an encapsulating machine shall keep a record of the transaction— “(A) for 4 years after the date of the transaction, if the listed chemical is a precursor chemical or if the transaction involves a tableting machine or an encapsulating machine; and “(B) for 2 years after the date of the transaction, if the listed chemical is an essential chemical. “(2) A record under this subsection shall be retrievable and shall include the date of the regulated transaction, the identity of each party to the regulated transaction, a statement of the quantity and form of the listed chemical, a description of the tableting machine or encapsulating machine, and a description of the method of transfer. Such record shall be available for inspection and copying by the Attorney General. “(3) It is the duty of each regulated person who engages in a regulated transaction to identify each other party to the transaction. It is the duty of such other party to present proof of identity to the regulated person. The Attorney General shall specify by regulation the types of documents and other evidence that constitute proof of identity for purposes of this paragraph. “(b) Each regulated person shall report to the Attorney General, Reports. in such form and manner as the Attorney General shall prescribe by regulation— “(1) any regulated transaction involving an extraordinary quantity of a listed chemical, an uncommon method of payment or delivery, or any other circumstance that the regulated person believes may indicate that the listed chemical will be used in violation of this title; “(2) any proposed regulated transaction with a person whose description or other identifying characteristic the Attorney General furnishes in advance to the regulated person; “(3) any unusual or excessive loss or disappearance of a listed chemical under the control of the regulated person; and “(4) any regulated transaction in a tableting machine or an encapsulating machine. Each report under paragraph (1) shall be made at the earliest practicable opportunity after the regulated person becomes aware of the circumstance involved. A regulated person may not complete a transaction with a person whose description or identifying characteristic is furnished to the regulated person under paragraph (2) unless the transaction is approved by the Attorney General. The Attorney General shall make available to regulated persons guidance documents describing transactions and circumstances for which reports are required under paragraph (1) and paragraph (3). “(c) (1) Except as provided in paragraph (2), any information obtained by the Attorney General under this section which is exempt from disclosure under section 552(a) of title 5, United States Code, by reason of section 552(b)(4) of such title, is confidential and may not be disclosed to any person. “(2) Information referred to in paragraph (1’) may be disclosed only— “(A) to an officer or employee of the United States engaged in carrying out this title, title III, or the customs laws; “(B) when relevant in any investigation or proceeding for the enforcement of this title, title III, or the customs laws; “(C) when necessary to comply with an obligation of the United States under a treaty or other international agreement; or “(D) to a State or local official or employee in conjunction with the enforcement of controlled substances laws or precursor chemical laws. “(3) The Attorney General shall— “(A) take such action as may be necessary to prevent unauthorized disclosure of information by any person to whom such information is disclosed under paragraph (2); and “(B) issue guidelines that limit, to the maximum extent feasible, the disclosure of proprietary business information, including the names or identities of United States exporters of listed chemicals, to any person to whom such information is disclosed under paragraph (2). “(4) Any person who is aggrieved by a disclosure of information in violation of this section may bring a civil action against the violator for appropriate relief. “(5) Notwithstanding paragraph (4), a civil action may not be brought under such paragraph against investigative or law enforcement personnel of the Drug Enforcement Administration.”. (b) Clerical Amendment.— The table of contents of the Comprehensive Drug Abuse Prevention and Control Act of 1970 is amended by striking out the item relating to section 310 and inserting in lieu thereof the following: “310. Regulation of listed chemicals and certain machines.”. SEC. 6053. NOTIFICATION, SUSPENSION OF SHIPMENT, AND PENALTIES WITH RESPECT TO IMPORTATION AND EXPORTATION OF LISTED CHEMICALS. (a) In General.— Part A of the Controlled Substances Import and Export Act (21 U.S.C. 951 et seq.) is amended by adding at the end the following new section: “Sec. 1018. “notification, suspension of shipment, and penalties with respect to importation and exportation of listed chemicals (a) 21 USC 971. Each regulated person who imports or exports a listed chemical shall notify the Attorney General of the importation or exportation not later than 15 days before the transaction is to take place. “(b) (1) Regulations. The Attorney General shall provide by regulation for circumstances in which the requirement of subsection (a) does not apply to a transaction between a regulated person and a regular customer or regular supplier of the regulated person. At the time of any importation or exportation constituting a transaction referred to in the preceding sentence, the regulated person shall notify the Attorney General of the transaction. “(2) The regulations under this subsection shall provide that the initial notification under subsection (a) with respect to a customer or supplier of a regulated person shall, upon the expiration of the 15-day period, qualify the customer as a regular customer or regular supplier, unless the Attorney General otherwise notifies the regulated person in writing. “(c) (1) The Attorney General may order the suspension of any Commerce and trade. importation or exportation of a listed chemical (other than a regulated transaction to which the requirement of subsection (a) does not apply by reason of subsection (b)) or may disqualify any regular customer or regular supplier on the ground that the chemical may be diverted to the clandestine manufacture of a controlled substance. From and after the time when the Attorney General provides written notice of the order (including a statement of the legal and factual basis for the order) to the regulated person, the regulated person may not carry out the transaction. “(2) Upon written request to the Attorney General, a regulated person to whom an order applies under paragraph (1) is entitled to an agency hearing on the record in accordance with subchapter II of chapter 5 of title 5, United States Code. The hearing shall be held on an expedited basis and not later than 45 days after the request is made, except that the hearing may be held at a later time, if so requested by the regulated person.”. (b) Effective Dates and Special Rules.— (1) Not later than 45 21 USC 971 note. days after the date of the enactment of this Act, the Attorney General shall forward to the Director of the Office of Management and Budget proposed regulations required by the amendment made by subsection (a). (2) Not later than 55 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall— (A) review such proposed regulations of the Attorney General; and (B) forward any comments and recommendations for modifications to the Attorney General. (3) Not later than 60 days after the date of the enactment of this Act, the Attorney General shall publish the proposed final regulations required by the amendment made by subsection (a). (4) Not later than 120 days after the date of the enactment of this Regulations. Act, the Attorney General shall promulgate final regulations required by the amendment made by subsection (a). (5) Subsection (a) of section 1018 of the Controlled Substances Import and Export Act, as added by subsection (a) of this section, shall take effect 90 days after the promulgation of the final regulations under paragraph (4). (6) Each regulated person shall provide to the Attorney General the identity of any regular customer or regular supplier of the regulated person not later than 30 days after the promulgation of the final regulations under paragraph (4). Not later than 60 days after the end of such 30-day period, each regular customer and regular supplier so identified shall be a regular customer or regular supplier for purposes of any applicable exception from the requirement of subsection (a) of such section 1018, unless the the Attorney General otherwise notifies the regulated person in writing. (c) Penalty for Importation or Exportation.— Section 1010 of the Controlled Substances Import and Export Act (21 U.S.C. 960) is amended by adding at the end the following new subsection: “(d) Any person who knowingly or intentionally— “(1) imports or exports a listed chemical with intent to manufacture a controlled substance in violation of this title or, in the case of an exportation, in violation of the law of the country to which the chemical is exported; or “(2) imports or exports a listed chemical knowing, or having reasonable cause to believe, that the listed chemical will be used to manufacture a controlled substance in violation of this title or, in the case of an exportation, in violation of the law of the country to which the chemical is exported; shall be fined in accordance with title 18, United States Code, or imprisoned not more than 10 years, or both.”. (d) Penalty for Failure to Notify.— Section 1011 of the Controlled Substances Import and Export Act (21 U.S.C. 961) is amended in the matter before paragraph (1) by inserting after “section 1004” the following: “or fails to notify the Attorney General of an importation or exportation under section 1018”. (e) Clerical Amendment.— The table of contents of the Comprehensive Drug Abuse Prevention and Control Act of 1970 is amended by adding at the end of the items relating to part A of title III the following new item: “Sec. 1018. Notification, suspension of shipment, and penalties with respect to importation and exportation of listed chemicals.”. SEC. 6054. DEFINITIONS. Section 102 of the Controlled Substances Act (21 U.S.C. 802) is amended— (1) in paragraph (8), by inserting “or a listed chemical” after “a controlled substance”; (2) in paragraph (11), by inserting “or a listed chemical” after “a controlled substance” both places it appears; and (3) by adding at the end the following new paragraphs: “(33) The term ‘listed chemical’ means any listed precursor chemical or listed essential chemical. “(34) The term ‘listed precursor chemical’ means a chemical specified by regulation of the Attorney General as a chemical that is used in manufacturing a controlled substance in violation of this title and is critical to the creation of the controlled substances, and such term includes (until otherwise specified by regulation of the Attorney General, as considered appropriate by the Attorney General or upon petition to the Attorney General by any person) the following: “(A) Anthranilic acid and its salts. “(B) Benzyl cyanide. “(C) Ephedrine, its salts, optical isomers, and salts of optical isomers. “(D) Ergonovine and its salts. “(E) Ergotamine and its salts. “(F) N-Acetylanthranilic acid and its salts. “(G) Norpseudoephedrine, its salts, optical isomers, and salts of optical isomers. “(H) Phenylacetic acid and its salts. “(I) Phenylpropanolamine, its salts, optical isomers, and salts of optical isomers. “(J) Piperidine and its salts. “(K) Pseudoephedrine, its salts, optical isomers, and salts of optical isomers. “(L) 3,4-Methylenedioxyphenyl-2-propanone. “(35) The term ‘listed essential chemical means a chemical specified by regulation of the Attorney General as a chemical that is used as a solvent, reagent, or catalyst in manufacturing a controlled substance in violation of this title, and such term includes (until otherwise specified by regulation of the Attorney General, as considered appropriate by the Attorney General or upon petition to the Attorney General by any person) the following chemicals: “(A) Acetic anhydride. “(B) Acetone. “(C) Benzyl chloride. “(D) Ethyl ether. “(E) Hydriodic acid. “(F) Potassium permanganate. “(G) 2-Butanone. “(H) Toluene. “(36) The term ‘regular customer’ means, with respect to a regulated person, a customer with whom the regulated person has an established business relationship that is reported to the Attorney General. “(37) The term ‘regular supplier’ means, with respect to a regulated person, a supplier with whom the regulated person has an established business relationship that is reported to the Attorney General. “(38) The term ‘regulated person’ means a person who manufactures, distributes, imports, or exports a listed chemical, a tableting machine, or an encapsulating machine. “(39) The term ‘regulated transaction’ means— “(A) a distribution, receipt, sale, importation or exportation of a threshold amount, including a cumulative threshold amount for multiple transactions (as determined by the Attorney General, in consultation with the chemical industry and taking into consideration the quantities normally used for lawful purposes), of a listed chemical, except that such term does not include— “(i) a domestic lawful distribution in the usual course of business between agents or employees of a single regulated person; “(ii) a delivery of a listed chemical to or by a common or contract carrier for carriage in the lawful and usual course of the business of the common or contract carrier, or to or by a warehouseman for storage in the lawful and usual course of the business of the warehouseman, except that if the carriage or storage is in connection with the distribution, importation, or exportation of a listed chemical to a third person, this clause does not relieve a distributor, importer, or exporter from compliance with section 310; “(iii) any category of transaction specified by regulation of the Attorney General as excluded from this definition as unnecessary for enforcement of this title or title III; “(iv) any transaction in a listed chemical that is contained in a drug that may be marketed or distributed lawfully in the United States under the Federal Food, Drug, and Cosmetic Act; or “(v) any transaction in a chemical mixture; and “(B) a distribution, importation, or exportation of a tableting machine or encapsulating machine. “(40) The term ‘chemical mixture’ means a combination of two or more chemical substances, at least one of which is not a listed precursor chemical or a listed essential chemical, except that such term does not include any combination of a listed precursor chemi-cal or a listed essential chemical with another chemical that is present solely as an impurity.”. SEC. 6055. AMENDMENTS TO SECTION 401 OF THE CONTROLLED SUBSTANCES ACT. (a) Additional Offenses.— Section 401(d) of the Controlled Substances Act (21 U.S.C. 841(d)) is amended to read as follows: “(d) Any person who knowingly or intentionally— “(1) possesses a listed chemical with intent to manufacture a controlled substance except as authorized by this title; “(2) possesses or distributes a listed chemical knowing, or having reasonable cause to believe, that the listed chemical will be used to manufacture a controlled substance except as authorized by this title; or “(3) with the intent of causing the evasion of the recordkeeping or reporting requirements of section 310, or the regulations issued under that section, receives or distributes a reportable amount of any listed chemical in units small enough so that the making of records or filing of reports under that section is not required; shall be fined in accordance with title 18, United States Code, or imprisoned not more than 10 years, or both.”. (b) Additional Penalty and Offenses.— Section 401 of the Controlled Substances Act (21 U.S.C. 841) is amended by adding at the end the following new subsections: “(f) In addition to any other applicable penalty, any person convicted of a felony violation of this section relating to the receipt, distribution, or importation of a listed chemical may be enjoined from engaging in any regulated transaction involving a listed chemical for not more than ten years. “(g) (1) Whoever knowingly distributes a listed chemical in violation of this title (other than in violation of a recordkeeping or reporting requirement of section 310) shall be fined under title 18, United States Code, or imprisoned not more than 5 years, or both. “(2) Whoever possesses any listed chemical, with knowledge that the recordkeeping or reporting requirements of section 310 have not been adhered to, if, after such knowledge is acquired, such person does not take immediate steps to remedy the violation shall be fined under title 18, United States Code, or imprisoned not more than one year, or both.”. SEC. 6056. AMENDMENTS TO SECTION 402 OF THE CONTROLLED SUBSTANCES ACT. (a) Confidential Information Amendment.— Section 402(a)(8) of the Controlled Substances Act (21 U.S.C. 842(a)(8)) is amended by inserting after “protection” the following: “, or to use to his own advantage or reveal (other than as authorized by section 310) any information that is confidential under such section”. (b) Identification Amendment.— Section 402(a)(9) of the Controlled Substances Act (21 U.S.C. 842(a)(9)) is amended to read as follows: “(9) who is a regulated person to engage in a regulated transaction without obtaining the identification required by 310(a)(3).”. (c) Technical Amendment.— Section 402(c)(2) of the Controlled Substances Act (21 U.S.C. 842(c)(2)) is amended by striking out subparagraph (C). (d) Records Violations.— Section 402(a) of the Controlled Substances Act (21 U.S.C. 842(a)) is amended— (1) in paragraph (8), as amended by subsection (a) of this section, by striking out “or” at the end of the paragraph; (2) in paragraph (9), as amended by subsection (b) of this section, by striking out the period at the end of the paragraph and inserting in lieu thereof “; or”; and (3) by adding at the end the following new paragraph: “(10) to fail to keep a record or make a report under section 310.”. SEC. 6057. AMENDMENTS TO SECTION 403 OF THE CONTROLLED SUBSTANCES ACT. (a) Additional Offenses.— Section 403(a) of the Controlled Substances Act (21 U.S.C. 843(a)) is amended— (1) in paragraph (4)(B), by striking out “piperidine” and inserting in lieu thereof “a listed chemical”; (2) in paragraph (4)(B), by striking out “or” after the semicolon; (3) in paragraph (5), by striking out the period at the end and inserting in lieu thereof a semicolon; and (4) by adding after paragraph (5) the following new paragraphs: “(6) to possess any three-neck round-bottom flask, tableting machine, encapsulating machine, gelatin capsule, or equipment specially designed or modified to manufacture a controlled substance, with intent to manufacture a controlled substance except as authorized by this title; “(7) to manufacture, distribute, or import any three-neck round-bottom flask, tableting machine, encapsulating machine, gelatin capsule, or equipment specially designed or modified to manufacture a controlled substance, knowing that it will be used to manufacture a controlled substance except as authorized by this title; or “(8) to create a chemical mixture for the purpose of evading a requirement of section 310 or to receive a chemical mixture created for that purpose.”. (b) Additional Penalty.— Section 403 of the Controlled Substances Act (21 U.S.C. 843), is amended by adding at the end the following new subsection: “(d) In addition to any other applicable penalty, any person convicted of a felony violation of this section relating to the receipt, distribution, or importation of a listed chemical may be enjoined from engaging in any regulated transaction involving a listed chemical for not more than ten years.”. SEC. 6058. SUBPOENA POWER. The first sentence of section 506(a) of the (Controlled Substances Act (21 U.S.C. 876(a)) is amended by inserting “listed chemicals, tableting machines, or encapsulating machines,” after “with respect to controlled substances,”. SEC. 6059. FORFEITURE. (a) In General.— Section 511(a) of the Controlled Substances Act (21 U.S.C. 881) is amended by adding at the end the following new paragraph: “(9) All listed chemicals, all drug manufacturing equipment, all tableting machines, all encapsulating machines, and all gelatin capsules, which have been imported, exported, manufactured, possessed, distributed, or intended to be distributed, imported, or exported, in violation of a felony provision of this title or title III.”. (b) Technical Amendment.— Paragraph (3) and paragraph (4) of section 511(a) of the Controlled Substances Act (21 U.S.C. 881 (a) and (4)) are each amended by striking out “paragraph (1) or (2)” and inserting in lieu thereof “paragraph (1), (2), or (9)”. SEC. 6060. CHEMICAL DIVERSION CONTROL PROGRAM. Section 502 of the Controlled Substances Act (21 U.S.C. 872) is amended by adding at the end the following new subsection: “(f) The Attorney General shall maintain an active program, both domestic and international, to curtail the diversion of precursor chemicals and essential chemicals used in the illicit manufacture of controlled substances.”. SEC. 6061. EFFECTIVE DATE. Except as otherwise provided in this subtitle, this subtitle shall take effect 120 days after the enactment of this Act. Subtitle B— Asset Forfeiture Amendments SEC. 6071. SHORT TITLE. This subtitle may be cited as the “Asset Forfeiture Amendments Act of 1988”. SEC. 6072. DEPARTMENT OF JUSTICE ASSETS FORFEITURE FUND. Section 524(c) of title 28, United States Code, is amended to read as follows: “(c) (1) There is established in the United States Treasury a special fund to be known as the Department of Justice Assets Forfeiture Fund (hereafter in this subsection referred to as the ‘Fund’) which shall be available to the Attorney General without fiscal year limitation for the following purposes of the Department of Justice— “(A) the payment, at the discretion of the Attorney General, of any expenses necessary to seize, detain, inventory, safeguard, maintain, advertise, or sell property under seizure, detention, or forfeited pursuant to any law enforced or administered by the Department of Justice, or of any other necessary expenses incident to the seizure, detention, or forfeiture of such property; such payments may include— “(i) payments for contract services, the employment of outside contractors to operate and manage properties or provide other specialized services as necessary to dispose of such properties in an effort to maximize the return from such properties, and payments to reimburse any Federal, State, or local agency for any expenditures made to perform the foregoing functions; and “(ii) payments made pursuant to regulations promulgated by the Attorney General, that are necessary and direct program-related expenses for the purchase or lease of automatic data processing equipment (not less than a majority of which use will be program related), training, printing, contracting for services directly related to the identification of forfeitable assets processing of and accounting for forfeitures, and the storage, protection, and destruction of controlled substances; “(B) the payment of awards for information or assistance directly relating to violations of the criminal drug laws of the United States; “(C) the payment of awards for information or assistance leading to a civil or criminal forfeiture under the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 800 et seq.) or a criminal forfeiture under the Racketeer Influenced and Corrupt Organizations statute (18 U.S.C. 1961 et seq.), at the discretion of the Attorney General; “(D) the compromise and payment of valid liens and mortgages against property that has been forfeited pursuant to any law enforced or administered by the Department of Justice, subject to the discretion of the Attorney General to determine the validity of any such lien or mortgage and the amount of payment to be made, and the employment of attorneys and other personnel skilled in State real estate law as necessary; “(E) disbursements authorized in connection with remission or mitigation procedures relating to property forfeited under any law enforced or administered by the Department of Justice; “(F) for equipping for drug law enforcement functions any government-owned or leased vessels, vehicles, and aircraft available for official use by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Immigration and Naturalization Service, or the United States Marshals Service; “(G) for purchase of evidence of any violation of the Controlled Substances Act, the Controlled Substances Import and Export Act, chapter 96 of title 18, or sections 1956 and 1957 of title 18; and “(H) after all reimbursements and program-related expenses have been met at the end of fiscal year 1989, the Attorney General may transfer deposits from the Fund to the building and facilities account of the Federal prison system for the construction of correctional institutions. Amounts for paying the expenses authorized by subparagraphs (A)(ii), (B), (C), (F), and (G) shall be specified in appropriations acts. Amounts for other authorized expenditures and payments from the Fund, including equitable sharing payments, are not required to be specified in appropriations acts. The Attorney General may exempt the procurement of contract services under subparagraph (A) under the fund from section 3709 of the Revised Statutes of the United States (41 U.S.C. 5), title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 and following), and other provisions of law as may be necessary to maintain the security and confidentiality of related criminal investigations. “(2) Any award paid from the Fund for information, as provided in paragraph (1) (B) or (C), shall be paid at the discretion of the Attorney General or his delegate, under existing departmental delegation policies for the payment of awards, except that the authority to pay an award of $250,000 or more shall not be delegated to any person other than the Deputy Attorney General, the Associate Attorney General, the Director of the Federal Bureau of Investigation, or the Administrator of the Drug Enforcement Administration. Any award for information pursuant to paragraph (1)(B) shall not exceed $250,000. Any award for information pursuant to paragraph (1)(C) shall not exceed the lesser of $250,000 or one-fourth of the amount realized by the United States from the property forfeited. “(3) Any amount under subparagraph (F) of paragraph (1) shall be paid at the discretion of the Attorney General or his delegate, except that the authority to pay $100,000 or more may be delegated only to the respective head of the agency involved. “(4) There shall be deposited in the Fund all amounts from the forfeiture of property under any law enforced or administered by the Department of Justice, except all proceeds of forfeitures available for use by the Secretary of the Treasury or the Secretary of the Interior pursuant to section 11(d) of the Endangered Species Act (16 U.S.C. 1540(d)) or section 6(d) of the Lacey Act Amendments of 1981 (16 U.S.C. 3375(d)) or the Postmaster General of the United States pursuant to section 2003(b)(7) of title 39. “(5) Amounts in the Fund which are not currently needed for the purpose of this section shall be kept on deposit or invested in obligations of, or guaranteed by, the United States and all earnings on such investments shall be deposited in the Fund. “(6) Reports. The Attorney General shall transmit to the Congress, not later than 4 months after the end of each fiscal year, two detailed reports as follows: “(A) a report on— “(i) the estimated total value of property forfeited under any law enforced or administered by the Department of Justice with respect to which funds were not deposited in the Fund; and “(ii) the estimated total value of all such property transferred to any State or local law enforcement agency; and “(B) a report on— “(i) the Fund’s beginning balance; “(ii) sources of receipts (seized cash, conveyances, and others); “(iii) liens and mortgages paid and amount of money shared with State and local law enforcement agencies; “(iv) the net amount realized from the year’s operations, amount of seized cash being held as evidence, and the amount of money legally allowed to be carried over to next year; “(v) any defendant’s equity in property valued at $1,000,000 or more; and “(vi) year-end Fund balance. “(7) The Fund shall be subject to annual audit by the Comptroller General. “(8) The provisions of this subsection relating to deposits in the Fund shall apply to all property in the custody of the Department of Justice on or after the effective date of the Comprehensive Forfeiture Act of 1983. “(9) There are authorized to be appropriated such sums as necessary for the purposes described in subparagraphs (A)(ii), (B), (C), (F), and (G) of paragraph (1). At the end of each of fiscal years 1990, 1991, and 1992, unobligated amounts not to exceed $150,000,000 remaining in the Fund shall be deposited in the Special Forfeiture Fund, except that an amount not to exceed $15,000,000 or, if determined necessary by the Attorney General to meet asset specific expenses, an amount equal to one-twelfth of the previous year’s expenditures may be carried forward and remain available for appropriation in the next fiscal year. “(10) For the purposes of this subsection, property is forfeited pursuant to a law enforced or administered by the Department of Justice if it is forfeited pursuant to— “(A) any criminal forfeiture proceeding; “(B) any civil judicial forfeiture proceeding; or “(C) any civil administrative forfeiture proceeding conducted by the Department of Justice, except to the extent that the seizure was effected by a Customs officer or that custody was maintained by the United States Customs Service in which case the provisions of section 613A of the Tariff Act of 1930 (19 U.S.C. 1613a) shall apply.”. SEC. 6073. ESTABLISHMENT OF SPECIAL FORFEITURE FUND. (a) In General.— There is established in the Treasury of the United States the Special Forfeiture Fund (hereafter referred to in this section as the “Fund”) which shall be available to the Director of the National Drug Control Policy without fiscal year limitation in such amounts as may be specified in appropriations acts. (b) Deposits.— Beginning in fiscal year 1990, there shall be deposited in the Fund not to exceed $150,000,000 in unobligated amounts remaining at the end of each fiscal year from the Department of Justice Assets Forfeiture Fund (28 U.S.C. 524(c)) except that amounts specified in section 524(c)(9) of title 28, United States Code, may be carried forward and remain available for appropriation in the next fiscal year. (c) Investment of Fund.— Amounts in the Fund which are not currently needed for the purposes of this section shall be kept on deposit or invested in obligations of, or guaranteed by, the United States and all earnings on such investments shall be deposited in the Fund. (d) President’s Budget.— The President shall, in consultation with the Director for National Drug Control Policy, include, as part of the budget submitted to the Congress under section 1105(a) of title 31, United States Code, a separate and detailed request for the use of the amounts in the Fund. This request shall reflect the priorities of the National Drug Control strategy. (e) Funds Provided Supplemental.— Funds disbursed under this subsection shall not be used to supplant existing funds, but shall be used to supplement the amount of funds that would be otherwise available. (f) Annual Report.— No later than 4 months after the end of each fiscal year, the President shall submit to both Houses of Congress a detailed report on the amounts deposited in the Fund and a description of expenditures made under this subsection. SEC. 6074. TRANSFER BY THE ATTORNEY GENERAL OF FOREIGN PROPERTY. Section 511(e)(1) of the Controlled Substances Act (21 U.S.C. 881(e)) is amended by— (1) striking “or” after the semicolon in subparagraph (C); (2) striking the period at the end of subparagraph (D) and inserting “; or”; and (3) adding at the end thereof the following: “(E) transfer the forfeited personal property or the proceeds of the sale of any forfeited personal or real property to any foreign country which participated directly or indirectly in the seizure or forfeiture of the property, if such a transfer— “(i) has been agreed to by the Secretary of State; “(ii) is authorized in an international agreement between the United States and the foreign country; and “(iii) is made to a country which, if applicable, has been certified under section 481(h) of the Foreign Assistance Act of 1961.”. SEC. 6075. ADDITIONAL EXCEPTION TO PROVISION RELATING TO FORFEITURE OF CONVEYANCES. Paragraph (4) of section 511(a) of the Controlled Substances Act (21 U.S.C. 881(a)(4)) is amended— (1) in subparagraph (A), by striking out “and” after the semicolon; (2) in subparagraph (B), by striking out the period at the end and inserting in lieu thereof “; and”; and (3) by adding at the end the following new subparagraph: “(C) no conveyance shall be forfeited under this paragraph to the extent of an interest of an owner, by reason of any act or omission established by that owner to have been committed or omitted without the knowledge, consent, or willful blindness of the owner.”. SEC. 6076. FORFEITURES OF CONVEYANCES. (a) Amendment to Act of August 9, 1939.— Section 2 of the Act of August 9, 1939 (chapter 618, 53 Stat. 1291; 49 U.S.C. App. 782), is amended by adding at the end the following: “No vessel, vehicle, or aircraft shall be forfeited under this section to the extent of an interest of an owner for a drug-related offense established by that owner to have been committed or omitted without the knowledge, consent, or willful blindness of the owner.”. (b) Amendments to Tariff Act of 1930.— Section 594(b) of the Tariff Act of 1930 (19 U.S.C. 1594(b)) is amended— (1) by inserting “(1)” after “(b)”; (2) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively; and (3) by adding at the end the following: “(2) Except as provided in paragraph (1) or subsection (c), no vessel, vehicle, or aircraft is subject to forfeiture to the extent of an interest of an owner for a drug-related offense established by that owner to have been committed or omitted without the knowledge, consent, or willful blindness of the owner.”. SEC. 6077. RESTORATION OF EQUITABLE SHARING PRINCIPLE RELATING TO TRANSFER OF FORFEITED ASSETS TO STATE AND LOCAL AGENCIES UNDER THE CONTROLLED SUBSTANCES ACT. (a) In General.— Section 511(e) of the Controlled Substances Act (21 U.S.C. 881(e)) is amended by adding at the end the following new paragraph: “(3) The Attorney General shall assure that any property transferred to a State or local law enforcement agency under paragraph (1)(A)— “(A) has a value that bears a reasonable relationship to the degree of direct participation of the State or local agency in the law enforcement effort resulting in the forfeiture, taking into account the total value of all property forfeited and the total law enforcement effort with respect to the violation of law on which the forfeiture is based; and “(B) is not so transferred to circumvent any requirement of State law that prohibits forfeiture or limits use or disposition of property forfeited to State or local agencies.”. (b) Technical Amendment.— Section 511(e)(1)(A) of the Controlled Substances Act (21 U.S.C. 881(e)(1)(A)) is amended to read as follows: “(A) retain the property for official use or, in the manner provided with respect to transfers under section 616 of the Tariff Act of 1930, transfer the property to any Federal agency or to any State or local law enforcement agency which participated directly in the seizure or forfeiture of the property;”. (c) Effective Date.— Section 551(e)(3)(B) of the Controlled Substances 21 USC 881 note. Act, as enacted by subsection (a), shall apply with respect to fiscal years beginning after September 30, 1989. SEC. 6078. COORDINATION OF POST-SEIZURE PROCEDURES. (a) In General.— Part E of the Controlled Substances Act (21 U.S.C. 871 et seq.) is amended by adding at the end the following new section: “Sec. 517. “coordination and consolidation of post-seizure administration The Attorney General and the Secretary of the Treasury 21 USC 887. shall take such action as may be necessary to develop and maintain a joint plan to coordinate and consolidate post-seizure administration of property seized under this title, title III, or provisions of the customs laws relating to controlled substances.”. (b) Clerical Amendment.— The table of contents of the Comprehensive Drug Abuse Prevention and Control Act of 1970 is amended by inserting after the item relating to section 516 the following new item: “517. Coordination and consolidation of post-seizure administration.”. SEC. 6079. REGULATIONS TO PROVIDE FORFEITURE PROCEDURES. (a) In General.— Not later than 90 days after the date of enactment of this Act, the Attorney General and the Secretary of the Treasury shall consult, and after providing a 30-day public comment period, shall prescribe regulations for expedited administrative procedures for seizures under section 511(a) (4), (6), and (7) of the Controlled Substances Act (21 U.S.C. 881(a) (4), (6), and (7)); section 596 of the Tariff Act of 1930 (19 U.S.C. 1595a(a)); and section 2 of the Act of August 9, 1939 (53 Stat. 1291; 49 U.S.C. App. 782) for violations involving the possession of personal use quantities of a controlled substance. (b) Specifications.— The regulations prescribed pursuant to subsection (a) shall— (1) minimize the adverse impact caused by prolonged detention, and (2) provide for a final administrative determination of the case within 21 days of seizure, or provide a procedure by which the defendant can obtain release of the property pending a final determination of the case. Such regulations shall provide that the appropriate agency official rendering a final determination shall immediately return the property if the following conditions are established: (A) the owner or interested party did not know of or consent to the violation; (B) the owner establishes a valid, good faith interest in the seized property as owner or otherwise; and (C) (1) the owner establishes that the owner at no time had any knowledge or reason to believe that the property in which the owner claims an interest was being or would be used in a violation of the law; and (2) if the owner at any time had, or should have had, knowledge or reason to believe that the property in which the owner claims an interest was being or would be used in a violation of the law, that the owner did what reasonably could be expected to prevent the violation. An owner shall not have the seized property returned under this subsection if the owner had not acted in a normal and customary manner to ascertain how the property would be used. (c) Notice.— At the time of seizure or upon issuance of a summons to appear under subsection (d), the officer making the seizure shall furnish to any person in possession of the conveyance a written notice specifying the procedures under this section. At the earliest practicable opportunity after determining ownership of the seized conveyance, the head of the department or agency that seizes the conveyance shall furnish a written notice to the owner and other interested parties (including lienholders) of the legal and factual basis of the seizure. (d) Summons in Lieu of Seizure of Commercial Fishing Industry Vessels.— Not later than 90 days after the enactment of this Act, the Attorney General, the Secretary of the Treasury, and the Secretary of Transportation shall prescribe joint regulations, after a public comment period of at least 30 days, providing for issuance of a summons to appear in lieu of seizure of a commercial fishing industry vessel as defined in section 2101 (11a), (11b), and (11c) of title 46, United States Code, for violations involving the possession of personal use quantities of a controlled substance. These regulations shall apply when the violation is committed on a commercial fishing industry vessel that is proceeding to or from a fishing area or intermediate port of call, or is actively engaged in fishing operations. The authority provided under this section shall not affect existing authority to arrest an individual for drug-related offenses or to release that individual into the custody of the vessel’s master. Upon answering a summons to appear, the procedures set forth in subsections (a), (b), and (c) of this section shall apply. The jurisdiction of the district court for any forfeiture incurred shall not be affected by the use of a summons under this section. (e) Personal Use Quantities of a Controlled Substance.— For the purposes of this section, personal use quantities of a controlled substance shall not include sweepings or other evidence of nonpersonal use amounts. SEC. 6080. EXPEDITED PROCEDURES FOR SEIZED CONVEYANCES. (a) In General.— The Controlled Substances Act (21 U.S.C. 801 et seq.) is amended by inserting after section 511 the following new section: “Sec. 511A. expedited procedures for seized conveyances (a) (1) The owner of a conveyance may petition the Attorney General for an expedited decision with respect to the conveyance, if the conveyance is seized for a drug-related offense and the owner has filed the requisite claim and cost bond in the manner provided in section 608 of the Tariff Act of 1930. The Attorney General shall make a determination on a petition under this section expeditiously, including a determination of any rights or defenses available to the petitioner. If the Attorney General does not grant or deny a petition under this section within 20 days after the date on which the petition is filed, the conveyance shall be returned to the owner pending further forfeiture proceedings. “(2) With respect to a petition under this section, the Attorney General may— “(A) deny the petition and retain possession of the conveyance; “(B) grant the petition, move to dismiss the forfeiture action, if filed, and promptly release the conveyance to the owner; or “(C) advise the petitioner that there is not adequate information available to determine the petition and promptly release the conveyance to the owner. “(3) Release of a conveyance under subsection (a)(1) or (a)(2)(C) does not affect any forfeiture action with respect to the conveyance. “(4) The Attorney General shall prescribe regulations to carry out Regulations. this section. “(b) At the time of seizure, the officer making the seizure shall furnish to any person in possession of the conveyance a written notice specifying the procedures under this section. At the earliest practicable opportunity after determining ownership of the seized conveyance, the head of the department or agency that seizes the conveyance shall furnish a written notice to the owner and other interested parties (including lienholders) of the legal and factual basis of the seizure. “(c) Not later than 60 days after a claim and cost bond have been filed under section 608 of the Tariff Act of 1930 regarding a conveyance seized for a drug-related offense, the Attorney General shall file a complaint for forfeiture in the appropriate district court, except that the court may extend the period for filing for good cause shown or on agreement of the parties. If the Attorney General does not file a complaint as specified in the preceding sentence, the court shall order the return of the conveyance to the owner and the forfeiture may not take place. “(d) Any owner of a conveyance seized for a drug-related offense may obtain release of the conveyance by providing security in the form of a bond to the Attorney General in an amount equal to the value of the conveyance unless the Attorney General determines the conveyance should be retained (1) as contraband, (2) as evidence of a violation of law, or (3) because, by reason of design or other characteristic, the conveyance is particularly suited for use in illegal activities.”. (b) Clerical Amendment.— The table of contents of the Comprehensive Drug Abuse Prevention and Control Act of 1970 is amended by inserting after the item relating to section 511 the following new item: “511A. Expedited procedures for seized conveyances.” Subtitle C— State and Local Narcotics Control and Justice Assistance Improvements PART 1— STATE AND LOCAL NARCOTICS CONTROL AND JUSTICE ASSISTANCE IMPROVEMENTS SEC. 6091. BUREAU OF JUSTICE ASSISTANCE AND UNIFIED GRANT PROGRAMS. (a) In General.— Title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3711 et seq.) is amended by striking parts D and E (42 U.S.C. 3741–3766) and inserting the following: “Part D— Establishment of Bureau of Justice Assistance “Sec. 401. “establishment of bureau of justice assistance (a) 42 USC 3741. There is established within the Department of Justice, under the general authority of the Attorney General, a Bureau of Justice Assistance (hereafter in this part referred to as the ‘Bureau’). “(b) The Bureau shall be headed by a Director (hereafter in this part referred to as the ‘Director’) who shall be appointed by the President, by and with the advice and consent of the Senate. The Director shall report to the Attorney General through the Assistant Grants. Contracts. Attorney General. The Director shall have final authority for all grants, cooperative agreements, and contracts awarded by the Bureau. The Director shall not engage in any employment other than that of serving as the Director, nor shall the Director hold any office in, or act in any capacity for, any organization, agency, or institution with which the Bureau makes any contract or other arrangement under this title. “Sec. 402. “duties and functions of the director The Director shall have the following duties: “(1) Providing funds to eligible States, units of local government, and nonprofit organizations pursuant to part E. “(2) Establishing programs in accordance with subpart 2 of part E and, following public announcement of such programs, awarding and allocating funds and technical assistance in accordance with the criteria of subpart 2, and on terms and conditions determined by the Director to be consistent with subpart 2. “(3) Cooperating with and providing technical assistance to States, units of local government, and other public and private organizations or international agencies involved in criminal justice activities. “(4) Providing for the development of technical assistance and training programs for State and local criminal justice agencies and fostering local participation in such activities. “(5) Encouraging the targeting of State and local resources on efforts to reduce the incidence of drug abuse and crime and on programs relating to the apprehension and prosecution of drug offenders. “(6) Establishing and carrying on a specific and continuing program of cooperation with the States and units of local government designed to encourage and promote consultation and coordination concerning decisions made by the Bureau affecting State and local drug control and criminal justice priorities. “(7) Preparing recommendations on the State and local drug enforcement component of the National Drug Control Strategy which shall be submitted to the Associate Director of the Office on National Drug Control Policy. In making such recommendations, the Director shall review the statewide strategies submitted by such States under part E, and shall obtain input from State and local drug enforcement officials. The recommendations made under this paragraph shall be provided at such time and in such form as the Director of National Drug Control Policy shall require. “(8) Exercising such other powers and functions as may be vested in the Director pursuant to this title or by delegation of the Attorney General or Assistant Attorney General. “Part E— Bureau of Justice Assistance Grant Programs “Sec. 500. “name of programs The grant programs established under this part shall be 42 USC 3750. known as the ‘Edward Byrne Memorial State and Local Law Enforcement Assistance Programs’. “Subpart 1— Drug Control and System Improvement Grant Program “Sec. 501. “description of the drug control and system improvement grant program (a) It is the purpose of this subpart to assist States and 42 USC 3751. units of local government in carrying out specific programs which offer a high probability of improving the functioning of the criminal justice system, with special emphasis on a nationwide and multilevel drug control strategy by developing programs and projects to assist multijurisdictional and multi-State organizations in the drug control problem and to support national drug control priorities. “(b) The Director of the Bureau of Justice Assistance (hereafter in this part referred to as the ‘Director’) is authorized to make grants to States, for the use by States and units of local government in the States, for the purpose of enforcing State and local laws that establish offenses similar to offenses established in the Controlled Substances Act (21 U.S.C. 801 et seq.) and to improve the functioning of the criminal justice system with emphasis on violent crime and serious offenders. Such grants shall provide additional personnel, equipment, training, technical assistance, and information systems for the more widespread apprehension, prosecution, adjudication, and detention and rehabilitation of persons who violate these laws, and to assist the victims of such crimes (other than compensation), including— “(1) demand reduction education programs in which law enforcement officers participate; “(2) multijurisdictional task force programs that integrate Federal, State, and local drug law enforcement agencies and prosecutors for the purpose of enhancing interagency coordination, intelligence, and facilitating multijurisdictional investigations; “(3) programs designed to target the domestic sources of controlled and illegal substances, such as precursor chemicals, diverted pharmaceuticals, clandestine laboratories, and cannabis cultivations; “(4) providing community and neighborhood programs that assist citizens in preventing and controlling crime, including special programs that address the problems of crimes committed against the elderly and special programs for rural jurisdictions; “(5) disrupting illicit commerce in stolen goods and property; “(6) improving the investigation and prosecution of white-collar crime, organized crime, public corruption crimes, and fraud against the government with priority attention to cases involving drug-related official corruption; “(7) (A) improving the operational effectiveness of law enforcement through the use of crime analysis techniques, street sales enforcement, schoolyard violator programs, gang-related and low-income housing drug control programs; “(B) developing and implementing antiterrorism plans for deep draft ports, international airports, and other important facilities; “(8) career criminal prosecution programs including the development of proposed model drug control legislation; “(9) financial investigative programs that target the identification of money laundering operations and assets obtained through illegal drug trafficking, including the development of proposed model legislation, financial investigative training, and financial information sharing systems; “(10) improving the operational effectiveness of the court process through programs such as court delay reduction programs and enhancement programs; “(11) programs designed to provide additional public correctional resources and improve the corrections system, including treatment in prisons and jails, intensive supervision programs, and long-range corrections and sentencing strategies; “(12) providing prison industry projects designed to place inmates in a realistic working and training environment which will enable them to acquire marketable skills and to make financial payments for restitution to their victims, for support of their own families, and for support of themselves in the institution; “(13) providing programs which identify and meet the treatment needs of adult and juvenile drug-dependent and alcohol-dependent offenders; “(14) developing and implementing programs which provide assistance to jurors and witnesses, and assistance (other than compensation) to victims of crimes; “(15) (A) developing programs to improve drug control technology, such as pretrial drug testing programs, programs which provide for the identification, assessment, referral to treatment, case management and monitoring of drug dependent offenders, enhancement of State and local forensic laboratories, and “(B) criminal and justice information systems to assist law enforcement, prosecution, courts, and corrections organization (including automated fingerprint identification systems); “(16) innovative programs that demonstrate new and different approaches to enforcement, prosecution, and adjudication of drug offenses and other serious crimes; “(17) improving the criminal and juvenile justice system’s Aged persons. response to domestic and family violence, including spouse abuse, child abuse, and abuse of the elderly; “(18) drug control evaluation programs which the State and local units of government may utilize to evaluate programs and projects directed at State drug control activities; “(19) providing alternatives to prevent detention, jail, and prison for persons who pose no danger to the community; and “(20) programs of which the primary goal is to strengthen urban enforcement and prosecution efforts targeted at street drug sales. “(c) Each program funded under this section shall contain an evaluation component, developed pursuant to guidelines established by the National Institute of Justice, in consultation with the Bureau of Justice Assistance. The Director of the Bureau of Justice Assistance may waive this requirement when in the opinion of the Director— “(1) the program is not of sufficient size to justify a full evaluation report; or “(2) the program is designed primarily to provide material resources and supplies, such as laboratory equipment, that would not justify a full evaluation report. “Sec. 502. “eligibility The Bureau is authorized to make financial assistance 42 USC 3752. under this subpart available to a State to enable it to carry out all or a substantial part of a program or project submitted and approved in accordance with the provisions of this subpart. “Sec. 503. “state applications (a) To request a grant under this subpart, the chief 42 USC 3753. executive officer of a State shall submit an application within 60 days after the Bureau has promulgated regulations under this section, and for each subsequent year, within 60 days after the date that appropriations for this part are enacted, in such form as the Director may require. Such application shall include the following: “(1) A statewide strategy for drug and violent crime control programs which improve the functioning of the criminal justice system, with an emphasis on drug trafficking, violent crime, and serious offenders. The strategy shall be prepared after consultation with State and local officials with emphasis on those whose duty it is to enforce drug and criminal laws and direct the administration of justice and shall contain— “(A) a definition and analysis of the drug and violent crime problem in the State, and an analysis of the problems in each of the counties and municipalities with major drug and violent crime problems; “(B) an assessment of the criminal justice resources being devoted to crime and drug control programs at the time of the application; “(C) coordination requirements; “(D) resource needs; “(E) the establishment of statewide priorities for crime and drug control activities and programs; “(F) an analysis of the relationship of the proposed State efforts to the national drug control strategy; and “(G) a plan for coordinating the programs to be funded under this part with other federally funded programs, including State and local drug abuse education, treatment, and prevention programs. “(2) A certification that Federal funds made available under the formula grant of this subpart will not be used to supplant State or local funds, but will be used to increase the amounts of such funds that would, in the absence of Federal funds, be made available for law enforcement activities. “(3) A certification that funds required to pay the non-Federal portion of the cost of each program and project for which such grant is made shall be in addition to funds that would otherwise be made available for law enforcement by the recipients of grant funds. “(4) An assurance that the State application described in this section, and any amendment to such application, has been submitted for review to the State legislature or its designated body (for purposes of this section, such application or amendment shall be deemed to be reviewed if the State legislature or such body does not review such application or amendment within the 30-day period beginning on the date such application or amendment is so submitted). “(5) An assurance that the State application and any amendment thereto was made public before submission to the Bureau and, to the extent provided under State law or established procedure, an opportunity to comment thereon was provided to citizens and to neighborhood and community groups. “(6) An assurance that following the first fiscal year covered by an application and for each fiscal year thereafter, a performance evaluation and assessment report concerning the activities carried out pursuant to this section will be submitted to the Bureau. “(7) A provision for fund accounting, auditing, monitoring, and such evaluation procedures as may be necessary to keep such records that the Bureau shall prescribe to assure fiscal control, proper management, and efficient disbursement of funds reviewed under this section. “(8) An assurance that the applicant shall maintain such data and information and submit such reports in such form, at such times, and containing such data and information as the Bureau may reasonably require to administer other provisions of this subpart. “(9) A certification that its programs meet all the requirements of this section, that all the information contained in the application is correct, that there has been appropriate coordination with affected agencies, and that the applicant will comply with all provisions of this subpart and all other applicable Federal laws. Such certification shall be made in a form accept-able to the Bureau and shall be executed by the chief executive or such other officer of the applicant qualified under regulations promulgated by the Office. “(10) A certification that the State is undertaking initiatives to reduce, through the enactment of innovative penalties or increasing law enforcement efforts, the demand for controlled substances by holding accountable those who unlawfully possess or use such substances. “(b) Within 30 days after the date of enactment of this part, the Regulations. Director shall promulgate regulations to implement this section (including the information that must be included and the requirements that the States must meet) in submitting the applications required under this section. “Sec. 504. grant limitations (a) A grant made under this subpart may not— 42 USC 3754. “(1) for fiscal year 1989 appropriations be expended for more than 75 per centum; and “(2) for any subsequent fiscal year appropriations be expended Indians. for more than 50 per centum; of the cost of the identified uses for which such grant is received to carry out any purpose specified in section 502, except that in the case of funds distributed to an Indian tribe which performs law enforcement functions (as determined by the Secretary of the Interior) for any such program or project, the amount of such grant shall be equal to 100 percent of such cost. The non-Federal portion of the expenditures for such uses shall be paid in cash. “(b) Not more than 10 percent of a grant made to an eligible State under section 506 may be used for costs incurred to administer such grant. “(c) States and units of local government or combinations thereof are authorized to use a grant made under section 506 for the expenses associated with participation in the State and Local Task Force Program established by the Drug Enforcement Administration. “(d) States and local units of government are authorized to use a grant made under section 506 for the expenses associated with conducting the evaluations required under section 501(c) of this part. “(e) The non-Federal portion of the cost of such program or project shall be in cash. State and local units of government may use cash received under the equitable sharing program to cover the non-Federal portion of the costs of programs funded under section 506. “(f) No funds may be awarded under this subpart to a grant recipient for a program or project for which funds have been awarded under this title for 4 years (in the aggregate), including any period occurring before the effective date of this subsection. “Sec. 505. review of state applications (a) The Bureau shall provide financial assistance to 42 USC 3755. each State applicant under this subpart to carry out the programs or projects submitted by such applicant upon determining that— “(1) the application or amendment thereto is consistent with the requirements of this subpart; and “(2) before the approval of the application and any amendment thereto the Bureau has made an affirmative finding in writing that the program or project has been reviewed in accordance with this subpart. “(b) Each application or amendment made and submitted for approval to the Bureau pursuant to section 503 shall be deemed approved, in whole or in part, by the Bureau not later than 45 days after first received unless the Bureau informs the applicant of specific reasons for disapproval. “(c) Grant funds awarded under this subpart shall not be used for land acquisition or construction projects, other than penal and correctional institutions. “(d) The Bureau shall not finally disapprove any application, or any amendment thereto, submitted to the Director under this section without first affording the applicant reasonable notice and opportunity for reconsideration. “Sec. 506. “allocation and distribution of funds under formula grants (a) Of the total amount appropriated for this part in any fiscal year, the amount remaining after setting aside the amount required to be reserved to carry out section 511 of this title shall be set aside for section 502 and allocated to States as follows: “(1) $500,000 shall be allocated to each of the participating States; and “(2) of the total funds remaining after the allocation under paragraph (1), there shall be allocated to each State an amount which bears the same ratio to the amount of remaining funds described in this paragraph as the population of such State bears to the population of all the States. “(b) (1) Each State which receives funds under subsection (a) of this section in a fiscal year shall distribute among units of local government, or combinations of units of local government, in such State for the purposes specified in section 501(b) that portion of such funds which bears the same ratio to the aggregate amount of such funds as the amount of funds expended by all units of local government for criminal justice in the preceding fiscal year bears to the aggregate amount of funds expended by the State and all units of local government in such State for criminal justice in such preceding fiscal year. “(2) In distributing funds received under this part among urban, rural, and suburban units of local government and combinations thereof, the State shall give priority to those jurisdictions with the greatest need. “(3) Any funds not distributed to units of local government under paragraph (2) shall be available for expenditure by the State involved. “(4) For purposes of determining the distribution of funds under paragraphs (1) and (2), the most accurate and complete data available for the fiscal year involved shall be used. If data for such fiscal year are not available, then the most accurate and complete data available for the most recent fiscal year preceding such fiscal year shall be used. “(c) No funds allocated to a State under subsection (a) or received by a State for distribution under subsections (b) and (c) may be distributed by the Director or by the State involved for any program other than a program contained in an approved application. “(d) If the Director determines, on the basis of information available during any fiscal year, that a portion of the funds allocated to a State for that fiscal year will not be required or that a State will be unable to qualify or receive funds under section 502, or that a State chooses not to participate in the program established under such section, then such portion shall be awarded by the Director to urban, rural, and suburban units of local government or combinations thereof within such State giving priority to those jurisdictions with greatest need. “(e) Any funds allocated under subsection (a) or (e) that are not distributed under this section shall be available for obligation under subpart 2. “Sec. 507. “state office (a) The chief executive of each participating State shall 42 USC 3757. designate a State office for purposes of— “(1) preparing an application to obtain funds under section 503; “(2) administering funds received under such section from the Director, including receipt, review, processing, monitoring, progress and financial report review, technical assistance, grant adjustments, accounting, auditing and fund disbursements; and “(3) coordinating the distribution of funds provided under this Research and development. part with State agencies receiving Federal funds for drug abuse education, prevention, treatment, and research activities and programs. “(b) An office or agency performing other functions within the executive branch of a State may be designated to carry out the functions specified in subsection (a). “Sec. 508. “distribution of grants to local government (a) Each application made by a local unit of government, 42 USC 3758. or a combination of units of local government, to a State for funds under this subchapter shall be deemed approved, in whole or in part, by the State not later than 45 days after first received unless the State informs the applicant in writing of specific reasons for disapproval. The State shall not finally disapprove any application submitted to the State without first affording the applicant reasonable notice and opportunity for reconsideration. “(b) Each State which receives funds under section 506 in a fiscal year shall make such funds available to local units of government, or combinations thereof, whose application has been submitted to, approved and awarded by the State, within 45 days after the Bureau has approved the State application and has made funds available to such State. The Director shall have the authority to waive the 45-day requirement in this section upon a finding that the State cannot satisfy that requirement consistent with State statutes. “Subpart 2— Discretionary Grants “Sec. 510. “purposes (a) The purpose of this subpart is to provide additional 42 USC 3760. Federal financial assistance to public or private agencies and private nonprofit organizations for purposes of— “(1) undertaking educational and training programs for criminal justice personnel; “(2) providing technical assistance to States and local units of government; “(3) undertaking projects which are national or multijurisdictional in scope and which address the purposes specified in section 502; and “(4) providing financial assistance to public agencies and private nonprofit organizations for demonstration programs which, in view of previous research or experience, are likely to be a success in more than one jurisdiction. “(b) In carrying out this subpart, the Director is authorized to make grants to, or enter into contracts with public or private agencies, institutions, or organizations or individuals to carry out any purpose specified in section 501(b). The Director shall have final authority over all funds awarded under this subpart. “Sec. 511. “allocation of funds for discretionary grants Of the total amount appropriated for this part in any fiscal year, 20 percent or $50,000,000, whichever is less, shall be reserved and set aside for this section in a special discretionary fund for use by the Director in carrying out the purposes specified in section 503. Grants under this section may be made for amounts up to 100 percent of the costs of the programs or projects contained in the approved application. “Sec. 512. “limitation on use of discretionary grant funds Grant funds awarded under section 511 shall not be used for land acquisition or construction projects. “Sec. 513. “application requirements (a) No grant may be made under this subpart unless an application has been submitted to the Director in which the applicant— “(1) sets forth a program or project which is eligible for funding pursuant to section 511; “(2) describes the services to be provided, performance goals, and the manner in which the program is to be carried out; “(3) describes the method to be used to evaluate the program or project in order to determine its impact and effectiveness in achieving the stated goals; and “(4) agrees to conduct such evaluation according to the procedures and terms established by the Bureau. “(b) Each applicant for funds under this subpart shall certify that its program or project meets all the requirements of this section, that all the information contained in the application is correct, and that the applicant will comply with all the provisions of this subpart and all other applicable Federal laws. Such certification shall be made in a form acceptable to the Director. “Sec. 514. “period of award The Bureau may provide financial aid and assistance to programs or projects under this subpart for a period of not to exceed 4 years. Grants made pursuant to this subpart may be extended or renewed by the Bureau for an additional period of up to 2 years if— “(1) an evaluation of the program or project indicates that it has been effective in achieving the stated goals or offers the potential for improving the functioning of the criminal justice system; and “(2) the public agency or private nonprofit organization within which the program or project has been conducted agrees to provide at least one-half of the total cost of such program or project from any source of funds, including Federal grants, available to the eligible jurisdiction. “Subpart 3— Administrative Provisions “Sec. 520. “evaluation (a) To increase the efficiency and effectiveness of programs 42 USC 3766. funded under this part, the National Institute of Justice shall— “(1) develop guidelines, in cooperation with the Bureau of Justice Assistance, to assist State and local units of government to conduct the program evaluations as required by section 501(c) of this part; and “(2) conduct a reasonable number of comprehensive evaluations of programs funded under section 506 (formula grants) and section 511 (discretionary grants) of this part. “(b) In selecting programs for review, the Director of the National Institute of Justice should consider— “(1) whether the program establishes or demonstrates a new and innovative approach to drug or crime control; “(2) the cost of the program to be evaluated and the number of similar programs funded under section 506 (formula grants) and section 511 (discretionary grants); “(3) whether the program has a high potential to be replicated in other jurisdictions; and “(4) whether there is substantial public awareness and community involvement in the program. Routine auditing, monitoring, and internal assessment of a State and local drug control program’s progress shall be the sole responsibility of the Bureau of Justice Assistance. “(c) The Director of the National Institute of Justice shall annually Reports. report to the President, the Attorney General, and the Congress on the nature and findings of the evaluation and research and development activities funded under this section. “Sec. 521. “general provisions (a) The Bureau shall prepare both a ‘Program Brief’ 42 USC 3766a. and ‘Implementation Guide’ document for proven programs and projects to be funded under this part. “(b) The functions, powers, and duties specified in this part to be carried out by the Bureau shall not be transferred elsewhere in the Department of Justice unless specifically hereafter authorized by the Congress by law. “Sec. 522. “reports (a) Each State which receives a grant under section 506 42 USC 3766b. shall submit to the Director, for each year in which any part of such grant is expended by a State or unit of local government, a report which contains— “(1) a summary of the activities carried out with such grant and an assessment of the impact of such activities on meeting the needs identified in the State strategy submitted under section 503; “(2) a summary of the activities carried out in such year with any grant received under subpart 2 by such State; “(3) the evaluation result of programs and projects; “(4) an explanation of how the Federal funds provided under this part were coordinated with State agencies receiving Federal funds for drug abuse education, prevention, treatment, and research activities; and “(5) such other information as the Director may require by rule. Such report shall be submitted in such form and by such time as the Director may require by rule. “(b) Not later than 180 days after the end of each fiscal year for which grants are made under this part, the Director shall submit to the Speaker of the House of Representatives and the President pro tempore of the Senate a report that includes with respect to each State— “(1) the aggregate amount of grants made under subpart 1 and subpart 2 to such State for such fiscal year; “(2) the amount of such grants awarded for each of the purposes specified in subpart 1; “(3) a summary of the information provided in compliance with paragraphs (1) and (2) of subsection (a); “(4) an explanation of how Federal funds provided under this part have been coordinated with Federal funds provided to States for drug abuse education, prevention, treatment, and research activities; and “(5) evaluation results of programs and projects and State strategy implementation.”. (b) Amendment to Table of Contents.— The table of contents of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3711 et seq.) is amended by striking the items relating to parts D and E and inserting the following: “Part D— Establishment of Bureau of Justice Assistance “Sec. 401. Establishment of Bureau of Justice Assistance. “Sec. 402. Duties and functions of the Director. “Part E— Bureau of Justice Assistance Grant Programs “Sec. 500. Name of programs. “subpart 1— drug control and system improvement grant program “Sec. 501. Description of the Drug Control and System Improvement Grant program. “Sec. 502. Eligibility. “Sec. 503. State applications. “Sec. 504. Grant limitations. “Sec. 505. Review of State applications. “Sec. 506. Allocation and distribution of funds under formula grants. “Sec. 507. State office. “Sec. 508. Distribution of grants to local government. “subpart 2— discretionary grants “Sec. 510. Purpose. “Sec. 511. Allocation of funds for discretionary grants. “Sec. 512. Limitation on use of discretionary grant funds. “Sec. 513. Application requirements. “Sec. 514. Period of award. “subpart 3— administrative provisions “Sec. 520. Evaluation. “Sec. 521. General provisions. “Sec. 522. Reports.”. SEC. 6092. DUTIES AND FUNCTIONS OF THE DIRECTOR OF THE BUREAU OF JUSTICE STATISTICS. (a) In General.— Section 302 of part C of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. section 3732) is amended in subsection (c) by redesignating paragraphs (16), (17), (18) and (19) as paragraphs (20), (21), (22) and (23), respectively, and inserting the following new paragraphs: “(16) provide for the collection, compilation, analysis, publication and dissemination of information and statistics about the prevalence, incidence, rates, extent, distribution and attributes of drug offenses, drug related offenses and drug dependent offenders and further provide for the establishment of a national clearinghouse to maintain and update a comprehensive and timely data base on all criminal justice aspects of the drug crisis and to disseminate such information; “(17) provide for the collection, analysis, dissemination and publication of statistics on the condition and progress of drug control activities at the Federal, State and local levels with particular attention to programs and intervention efforts demonstrated to be of value in the overall national anti-drug strategy and to provide for the establishment of a national clearinghouse for the gathering of data generated by Federal, State, and local criminal justice agencies on their drug enforcement activities; “(18) provide for the development and enhancement of State and local criminal justice information systems, and the standardization of data reporting relating to the collection, analysis or dissemination of data and statistics about drug offenses, drug related offenses, or drug dependent offenders; “(19) provide for research and improvements in the accuracy, Research and development. completeness, and inclusiveness of criminal history record information, information systems, arrest warrant, and stolen vehicle record information and information systems and support research concerning the accuracy, completeness, and inclusiveness of other criminal justice record information.”. (b) Technical Amendment.— Section 901(a)(2) of the Omnibus Crime Control and Safe Streets Act of 1968 is amended by striking 42 USC 3791. “407(a)” and inserting “506(a)”. SEC. 6093. JUSTICE ASSISTANCE ACT REAUTHORIZATION. Section 1001 of part J of title I of the Omnibus Crime Control and Safe Streets Act of 1968 is amended to read as follows: 42 USC 3793. “Sec. 1001. “authorization of appropriations (a) (1) There is authorized to be appropriated $30,000,000 for each of the fiscal years 1989, 1990, 1991, and 1992 to carry out the functions of the Bureau of Justice Statistics. “(2) There is authorized to be appropriated $30,000,000 for each of the fiscal years 1989, 1990, 1991, and 1992 to carry out the functions of the National Institute of Justice. “(3) There are authorized to be appropriated $25,500,000 for fiscal year 1989 and such sums as may be necessary for each of the fiscal years 1990, 1991, and 1992 to carry out the remaining functions of the Office of Justice Programs and the Bureau of Justice Assistance, other than functions under parts D, E, F, G, L, and M. “(4) There are authorized to be appropriated for each fiscal year such sums as may be necessary to carry out part L of this title. “(5) There are authorized to be appropriated $275,000,000 for fiscal year 1989; $350,000,000 for fiscal year 1990; $400,000,000 for fiscal year 1991; and such sums as may be necessary for fiscal year 1992 to carry out the programs under parts D and E of this title. “(6) There are authorized to be appropriated $15,000,000 for fiscal year 1989 and such sums as may be necessary for each of the fiscal years 1990, 1991, and 1992 to carry out the programs under part M of this title. “(b) Funds appropriated for any fiscal year may remain available for obligation until expended. “(c) Notwithstanding any other provision of law, no funds appropriated under this section for part E of this title may be transferred or reprogrammed for carrying out any activity which is not authorized under such parts.”. PART 2— REGIONAL INFORMATION SHARING SYSTEMS GRANTS SEC. 6101. REGIONAL INFORMATION SHARING SYSTEMS GRANTS. (a) Grant Authorized.— Title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3711 et seq.) is amended by striking part M and inserting the following: “PART M— REGIONAL INFORMATION SHARING SYSTEMS GRANTS “SEC. 1301. REGIONAL INFORMATION SHARING SYSTEMS GRANTS. “(a) The Director of the Bureau of Justice Assistance is authorized to make grants and enter into contracts with State and local criminal justice agencies and nonprofit organizations for the purposes of identifying, targeting, and removing criminal conspiracies and activities spanning jurisdictional boundaries. “(b) Grants and contracts awarded under this part shall be made for— “(1) maintaining and operating information sharing systems that are responsive to the needs of participating enforcement agencies in addressing multijurisdictional offenses and conspiracies, and that are capable of providing controlling input, dissemination, rapid retrieval, and systematized updating of information to authorized agencies; “(2) establishing and operating an analytical component to assist participating agencies and projects in the compilation, interpretation, and presentation of information provided to a project; “(3) establishing and maintaining a telecommunication of the information sharing and analytical programs in clauses (1) and (2); and “(4) other programs designated by the Director that are designed Regulations. to further the purposes of this part. “(c) The Director is authorized to promulgate such rules and regulations as are necessary to carry out the purposes of this section, including rules and regulations for submitting and reviewing applications.” (b) Technical Amendments.— The table of contents of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3711 et seq.) is amended by striking out the items relating to part N and section 1401, and inserting in lieu thereof the following new items: “Part M— Regional Information Sharing Systems Grants “Sec. 1301. Regional information sharing systems grants. “Part N— Transition; Effective Date; Repealer “Sec. 1401. Continuation of rules, authorities, and proceedings.” PART 3— PUBLIC SAFETY OFFICERS’ DEATH BENEFITS IMPROVEMENT SEC. 6105. PUBLIC SAFETY OFFICERS’ DEATH BENEFITS IMPROVEMENT. (a) Basic Level of Death Benefit Payable.— Section 1201(a) of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796) is amended by striking out “$50,000” and inserting in lieu thereof “$100,000, adjusted in accordance with subsection (g)”. (b) Annual Adjustment of Benefit Level.— Section 1201 of title I of the Omnibus Crime Control Act of 1968 (42 U.S.C. 3796) is amended by adding at the end thereof the following new subsections: “(g) On October 1 of each fiscal year beginning after the effective date of this subsection, the Bureau shall adjust the level of the benefit payable immediately before such October 1 under subsection (a), to reflect the annual percentage change in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics, occurring in the 1-year period ending on June 1 immediately preceding such October 1. “(h) The amount payable under subsection (a) with respect to the death of a public safety officer shall be the amount payable under subsection (a) as of the date of death of such officer.”. (c) Parents as Beneficiaries.— Section 1201(a)(4) of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796(a)(4)) is amended by striking out “dependent”. (d) Technical Amendment.— Section 1203 of title I of the Omnibus Crime Control Act of 1968 (42 U.S.C. 3796b) is amended by striking out paragraph (2) and redesignating paragraphs (3), (4), (5), (6), and (7), as paragraphs (2), (3), (4), (5), and (6), respectively. (e) Effective Date.— The amendments made by this section shall 42 USC 3796 note. take effect on June 1, 1988. SEC. 6106. NATIONAL PROGRAMS FOR FAMILIES OF PUBLIC SAFETY OFFICERS WHO HAVE DIED IN THE LINE OF DUTY. (a) Program Authorization.— Part L of title I of the Omnibus Crime Control and Safe Streets Act (42 U.S.C. 3796a) is amended by— (1) redesignating sections 1203 and 1204 as sections 1204 and 1205, respectively; and 42 USC 3796b, 3796c. (2) adding after section 1202 the following new section: “Sec. 1203. “national programs for families of public safety officers who have died in the June of duty The Director is authorized and directed to use up to $150,000 of the funds appropriated for this part to establish national programs to assist the families of public safety officers who have died in the line of duty.”. (b) Technical Amendment.— The table of contents for title I of the Omnibus Crime Control and Safe Streets Act of 1968 is amended by— (1) redesignating the items for section 1203 and 1204 as sections 1204 and 1205, respectively; and (2) inserting after section 1203 the following: “Sec. 1203. National program for families of public safety officers who have died in the line of duty.”. Subtitle D— Authorizations of Appropriations for the Department of Justice, Prisons, and Related Law Enforcement Purposes SEC. 6151. IMMIGRATION AND NATURALIZATION SERVICE PERSONNEL ENHANCEMENT. (a) Salaries and Expenses.— There is authorized to be appropriated for salaries and expenses for the Immigration and Naturalization Service for fiscal year 1989, $12,300,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That of such additional appropriations authorized in this section, $4,100,000 shall be used to increase the number of inspectors of the Immigration and Naturalization Service by no fewer than 70 over such personnel levels on board at the Service as of September 30, 1988, and for related equipment. (b) Organized Crime Drug Enforcement Task Force Pilot Project and Report.— (1) That of such additional appropriation authorized in this section, $8,200,000 shall be used to increase the commitment of Immigration and Naturalization Service personnel to the Organized Crime Drug Enforcement Task Forces (OCDETF) for additional special agent and support positions; and for associated training and equipment; and for costs incurred during INS agent participation in OCDETF operations with other Federal, State, and local law enforcement agencies. (2) The positions described in paragraph (1) shall, under the supervision of a director for the pilot project, be used exclusively to assist Federal and local law enforcement agencies in combating illegal alien involvement in drug trafficking and crimes of violence. (3) The Director of the pilot project shall report to the Assistant Commissioner—Investigations and will have the authority to— (A) hire a limited number of non-Federal law enforcement officers with substantive experience in narcotics investigations should insufficient senior Federal agents be available. Non-Federal law enforcement officers hired under this provision may be over the age of 35, but in that event would only be eligible for nonlaw enforcement retirement benefits; and (B) grant extensions of stay and other discretionary immigration Aliens. benefits and waivers to witnesses, informants, and others whose presence in the United States is essential to the investigation and prosecution of criminal aliens involved in drug trafficking and crimes of violence. (4) After the first year of the establishment of this pilot project the Attorney General will provide for an evaluation of its effectiveness, including an assessment by Federal, State, and local prosecutors and enforcement agencies. (c) Local Office Capabilities Improvement Pilot Project.— From the sums appropriated to carry out this section, the Attorney General, through the Investigative Division of the Immigration and Naturalization Service, shall provide a pilot program in 4 cities to establish or improve the capabilities of the local offices of the Service and of local law enforcement agencies to respond to inquiries concerning aliens who have been arrested or convicted for, or are the subject criminal investigation relating to, a violation of any law relating to controlled substances. The Attorney General shall select cities in a manner that provides special consideration for cities located near the land borders of the United States and for large cities which have major concentrations of aliens. Some of the sums made available under the pilot program shall be used to increase the personnel level of the Investigative Division. SEC. 6152. BUREAU OF ALCOHOL, TOBACCO, AND FIREARMS ARMED CAREER CRIMINAL APPREHENSION PROGRAM PERSONNEL ENHANCEMENT. There is authorized to be appropriated for salaries and expenses of the Bureau of Alcohol, Tobacco, and Firearms for fiscal year 1989, $10,660,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That such additional appropriations shall be used to increase the number of Armed Career Criminal Apprehension enforcement personnel and other personnel responsible for criminal enforcement of section 924 of title 18, United States Code, by no fewer than 244 full-time equivalent positions over such personnel levels onboard at the Bureau as of September 30, 1988, and for related equipment: Provided further, That of the amount authorized to be appropriated by this section, $615,000 shall be available for— (1) the equipping of any vessel, vehicle, equipment, or aircraft available for official use by a State or local law enforcement agency if the conveyance will be used in drug-related joint law enforcement operations with the Bureau of Alcohol, Tobacco, and Firearms; and (2) the payment of overtime salaries, travel, fuel, training, equipment, and other similar costs of State and local law enforcement officers that are incurred in joint operations with the Bureau of Alcohol, Tobacco, and Firearms. SEC. 6153. DRUG ENFORCEMENT ADMINISTRATION PERSONNEL ENHANCEMENT. (a) In General.— There is authorized to be appropriated for salaries and expenses of the Drug Enforcement Administration for fiscal year 1989, $60,000,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That $4,920,000 of such additional appropriation authorized in this section shall be used to increase Drug Enforcement Administration operations against criminals involved in youth gang-related organized crime: Provided further, That $10,000,000 of such additional amount authorized to be appropriated in this section shall be used to implement the Chemical Diversion and Trafficking Act of 1988: Provided further, That $15,000,000 of such additional amount authorized to be appropriated in this section shall be used for the Foreign Cooperative Investigations program: Provided further, That $5,000,000 of such additional amount authorized to be appropriated in this section shall be used for the Diversion Control program: Provided further, That $3,280,000 of such additional amount authorized to be appropriated in this section shall be used for additional analysts and equipment for the enhancement of the El Paso Intelligence Center (EPIC). (b) DEA Drug Education Program.— There is authorized to be appropriated, out of any funds made available by this or any other Act for the Drug Enforcement Administration, for the fiscal year ending September 30, 1989, such sums as may be necessary to establish and maintain a Drug Enforcement Administration Drug Education Program. (c) Compensation of Deputy Director.— The Deputy Administrator of the Drug Enforcement Administration shall receive compensation at the rate now or hereafter prescribed by law for positions of Level IV of the Executive Schedule Pay Rate (5 U.S.C. 5315). SEC. 6154. FEDERAL BUREAU OF INVESTIGATION DRUG ENFORCEMENT PERSONNEL ENHANCEMENT. There is authorized to be appropriated for salaries and expenses of the Federal Bureau of Investigation for fiscal year 1989, $30,000,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989. SEC. 6155. UNITED STATES MARSHALS SERVICE DRUG ENFORCEMENT PERSONNEL ENHANCEMENT. There is authorized to be appropriated for salaries and expenses of the U.S. Marshals Service for the fiscal year 1989, $21,500,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That such additional appropriation shall be used as follows: (1) for asset seizure and forfeiture activities; (2) for criminal justice support activities, including prisoner production and transportation; (3) for protection of the Federal judiciary and court facilities resulting from increased drug-related trials; (4) for increased workloads of the Marshals Service Witness Security Program; and (5) for payment of rewards for assistance in the capture or information leading to the capture of a Federal fugitive. SEC. 6156. SUPPORT OF UNITED STATES PRISONERS. There is authorized to be appropriated for fiscal year 1989, for support of United States prisoners in non-Federal institutions, $21,500,000 to remain available until expended, of which not to exceed $4,100,000 shall be available under the Cooperative Agree-ment Program for the purpose of renovating, constructing, and equipping State and local correctional facilities: Provided, That the appropriation authorized under this section shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That amounts made available for constructing any local correctional facility shall not exceed the cost of constructing space for the average Federal prisoner population to be housed in the facility, or in other facilities in the same correctional system, as projected by the Attorney General; Provided further, That following agreement on or completion of any federally assisted correctional facility construction, the availability of the space required for Federal prisoners with authorized Federal funds shall be assured and the per diem rate charged for housing Federal prisoners in the assured space shall not exceed operating costs for the period of time specified in the cooperative agreement. SEC. 6157. FEDERAL PRISON SYSTEM. There is authorized to be appropriated in fiscal year 1989 to the buildings and facilities account, Federal Prison System, Department of Justice, $200,000,000 for planning; acquisition of sites, construction of new facilities; purchase and acquisition of existing facilities and remodeling and equipping of such facilities for penal and correctional use, to alleviate overcrowding in existing prisons and to meet the increased demand for prison space resulting from drug-related offenses: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989. There is authorized to be appropriated in fiscal year 1989 for the salaries and expenses account, Federal Prison System, Department of Justice, $13,000,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989. SEC. 6158. UNITED STATES ATTORNEYS DRUG ENFORCEMENT PERSONNEL ENHANCEMENT. There is authorized to be appropriated for salaries and expenses of the United States Attorneys, Department of Justice for fiscal year 1989, $36,080,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989. SEC. 6159. FEDERAL JUDICIARY. (a) In General.— There is authorized to be appropriated to the Federal courts for salaries and expenses of the Courts of Appeals, District Courts, and other Judicial Services, $43,132,000 to remain available until expended: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989; Provided further, That the additional funds authorized to be appropriated under this section, shall be made available for the following: (1) $30,340,000 for probation and pretrial services, including pretrial social services; (2) $1,640,000 for additional deputy clerks; (3) $656,000 for additional law clerks and clerical support staff: (4) $4,100,000 for additional renovation of court facilities; and (5) $4,756,000 for additional United States magistrates. (b) Judicial Conference.— (1) The Judicial Conference of the United States shall prepare a report evaluating the impact of drug-related criminal activity on the Federal Judiciary. The Judicial Conference shall make its recommendations on the basis of the drug-related resource needs of the district courts. The report shall further contain a complete explanation of the specific criteria used in making its recommendations, including the officials and sources consulted on the impact of drug-related cases in specific judicial district courts. The report shall further contain a complete explanation of the specific criteria used in making its recommendations, including the officials and sources consulted on the impact of drug-related cases in specific judicial districts. (2) The report required by paragraph (1) shall be transmitted to the United States House of Representatives and the Committee on the Judiciary of the United States Senate not later than 120 days after the date of enactment of this section. (c) Federal Public Defender and Community Defender.— There is authorized to be appropriated for the operation of Federal Public Defender and Community Defender organizations, the compensation and reimbursement of expenses of attorneys appointed to represent persons under the Criminal Justice Act of 1964, as amended, the compensation and reimbursement of expenses of persons furnishing investigative, expert and other services under the Criminal Justice Act, the compensation (in accordance with Criminal Justice Act maximums) and reimbursement of expenses of attorneys appointed to assist the court in criminal cases where the defendant has waived representation by counsel, $28,700,000 to remain available until expended: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989. (d) Jurors Fees and Expenses.— There is authorized to be appropriated to the Federal courts for fees and expenses of jurors and compensation of jury commissioners, $2,378,000 to remain available until expended: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989. (e) Security Equipment.— There is authorized to be appropriated to the Federal courts for necessary expenses, not otherwise provided for, incident to the procurement, installation, and maintenance of security equipment and protective services for the United States courts in courtrooms and adjacent areas, including building ingress-egress control, inspection of packages, directed security patrols, and other similar activities, $4,920,000 to remain available until expended: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989. SEC. 6160. THE NATIONAL ADVISORY COMMISSION ON LAW ENFORCEMENT. (a) Definitions.— As used in this section— (1) the term “Commission” means the National Advisory Commission on Law Enforcement; (2) the term “Commissioner” means a member of the National Advisory Commission on Law Enforcement; and (3) the term “law enforcement officer” has the same meaning as provided in section 8401(17) of title 5, United States Code. (b) Establishment.— There is established a National Advisory Commission on Law Enforcement, which shall consist of the following members: (1) four members of the United States Senate, 2 of whom shall be selected by the Majority Leader and 2 of whom shall be selected by the Minority Leader; (2) four members of the United States House of Representatives, 2 of whom shall be selected by the Speaker and 2 of whom shall be selected by the Minority Leader; (3) the Comptroller General of the United States, who shall also serve as Chairman of the Commission; (4) the Director of the Office of Personnel Management; (5) the Attorney General of the United States and three other officials of the Department of Justice who shall be designated by the Attorney General; (6) the Secretary of the Treasury and 2 other officials of the Department of the Treasury who shall be designated by the Secretary of the Treasury; (7) the Inspector Generals of 3 departments or agencies of the executive branch of the United States who shall be designated by the President of the United States; and (8) three representatives from Federal employee groups to be selected by the Office of Personnel Management after consultation with the Speaker of the House and the Majority Leader of the Senate. (c) Study.— The Commission shall study the methods and rates of compensation, including salary, overtime pay, retirement policies, and other benefits of law enforcement officers in all Federal agencies, as well as the methods and rates of compensation of State and local law enforcement officers in a representative number of areas where Federal law enforcement officers are assigned, in order to determine— (1) the differences which exist among Federal agencies with regard to the methods and rates of compensation for law enforcement officers; (2) the rational basis, if any, for such differences, considering the nature of the responsibilities of the law enforcement officers in each agency; the qualifications and training required to perform such responsibilities; the degree of personal risk to which the law enforcement officers in each agency are normally exposed in the performance of their duties; and such other factors as the Commission deems relevant in evaluating the differences in compensation among the various agencies; (3) the extent to which inequities appear to exist among Federal agencies with regard to the methods and rates of compensation of law enforcement officers, based on consideration of the factors mentioned in paragraph (2) of this subsection; (4) the feasibility of devising a uniform system of overtime compensation for law enforcement officers in all or most Federal agencies, with due regard for both the special needs of law enforcement officers and the relative cost effectiveness to the Government of such a system compared to those currently in use; (5) how the salaries paid to Federal law enforcement officers compare to those of State and local officers in the same geographical area, especially those in “high cost-of-living” areas; (6) the impact of the rates of compensation paid by various Federal agencies on the lifestyle, morale, and general well-being of law enforcement officers, including their ability to subsist; (7) the recruiting and retention problems experienced by Federal agencies due to: inequities in compensation among such agencies; the differences between rates of compensation paid to Federal law enforcement officers and State and local officers in the same geographical areas; and other factors related to compensation; (8) the extent to which Federal legislation and administrative regulations may be necessary or appropriate to rectify inequities among Federal agencies in the methods and rates of compensation for law enforcement officers; to address the lack of uniformity among agencies with regard to overtime pay; to provide premiums or special rates of pay for Federal law enforcement officers in high cost-of-living areas; to ensure that the levels of compensation paid to Federal law enforcement officers will be competitive with those paid to State and local officers in the same geographical areas; and to address such other matters related to the determinations made under this subsection as the Commission deems appropriate in the interests of enhancing the ability of Federal agencies to recruit and retain the most qualified and capable law enforcement officers; and (9) the average retirement age of the Federal agencies and the retirement and benefits policies of Federal agencies. (d) Powers of the Commission.— The Commission shall have the power to— (1) utilize, with their consent, the services, equipment, personnel, information, and facilities of other Federal, State, local, and private agencies and instrumentalities with or without reimbursement therefor; (2) enter into and perform, without regard to section 3324 of title 31, United States Code, such contracts, leases, cooperative agreements, and other transactions as may be necessary in the conduct of the functions of the Commission, with any public agency, or with any person, firm, association, corporation, educational institution, or nonprofit organization; (3) request such information, data, and reports from any Federal agency or instrumentality as the Commission may from time to time require and as may be produced consistent with other law; and (4) hold hearings and call witnesses that might assist the Commission in the exercise of its powers or duties. The Commission shall have such other powers as may be necessary to carry out its functions under this Act and may delegate to any member or designated person such powers as may be appropriate in the conduct of its functions. (e) Resources.— (1) Upon the request of the Commission, each Federal agency is authorized and directed to make its resources, services, equipment, personnel, facilities, and information available to the greatest practicable extent to the Commission in the execution of its functions. (2) Each Commissioner may utilize the resources, services, equipment, personnel, information, and facilities of his or her Federal agency or, in the case of the Commissioners who are Members of Congress, his or her congressional office, as may be necessary in the conduct of the Commissioner’s respective functions as a member of the Commission. (f) Quorum.— A simple majority of the Commissioners then serving shall constitute a quorum for the conduct of business by the Commission, and the Commission may exercise its powers and fulfill its duties by the vote of a simple majority of the Commissioners present. (g) Meeting.— The Chairman of the Commission shall call and preside at meetings of the Commission, but the Chairman may delegate to any other Commissioner the authority to preside at meetings of the Commission. (h) Report and Dissolution of Commission.— (1) Within 6 months following the date of enactment of this Act, the Commission shall prepare and deliver to the President of the United States, the President of the Senate, and the Speaker of the House of Representatives, a written report setting forth— (A) the findings and determinations made by the Commission pursuant to section 176(b); and (B) specific proposals for such legislation and administrative regulations as the Commission has determined to be necessary or appropriate pursuant to section 176(b)(8). (2) The Commission shall be terminated 60 days following submission of the report mandated by this section. SEC. 6161. BORDER PATROL DRUG INTERDICTION ASSET ENHANCEMENT. There is authorized to be appropriated for salaries and expenses of the Border Patrol within the Department of Justice for fiscal year 1989, $16,400,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That such additional appropriation shall be used only for the procurement of drug interdiction-related equipment for Border Patrol drug enforcement personnel, including spare parts for helicopters; 4-wheel drive law enforcement vehicles; and initial procurement of mobile sensor response system and electronic intrusion detection, and for related operation and maintenance expenses. SEC. 6162. IMMIGRATION AND NATURALIZATION SERVICE/BORDER PATROL DRUG INTERDICTION PERSONNEL ENHANCEMENT. (a) Salaries and Expenses.— There is authorized to be appropriated for salaries and expenses of the Border Patrol within the Department of Justice for fiscal year 1989, $16,400,000: Provided, That such appropriation shall be in addition to any appropriations appropriated in any regular appropriations Acts or continuing resolutions for the fiscal year ending on September 30, 1989: Provided further, That such additional appropriation shall be used to increase officers of the Border Patrol by no fewer than 435 full-time equivalent positions over the level of such personnel onboard at the Border Patrol as of September 30, 1988, and for related equipment. (b) San Clemente Border Patrol Station.— There is authorized to be appropriated, out of any funds made available by section 6161, for the fiscal year ending September 30, 1989, $2,706,000 for the design of improvements for the Immigration and Naturalization Service border patrol station at San Clemente, California. (c) Drug Education Officers Program.— There is authorized to be appropriated, out of any funds made available by this Act, for the fiscal year ending September 30, 1989, such sums as may be necessary to establish and maintain an Immigration and Naturalization Service Drug Education Officers program, featuring the demonstration of drug detection canine unit capabilities along the southwest border region of the United States. (d) Salaries and Expenses.— There is authorized to be appropriated for salaries and expenses of the Border Patrol for fiscal year 1989, $16,400,000. Any amounts appropriated pursuant to this subsection shall be in addition to any amounts appropriated in regular appropriations Acts for such fiscal year. Such additional appropriations shall be used to increase the number of officers of the Border Patrol by not fewer than 435 full-time equivalent officer positions beyond the number of such positions at the Border Patrol on September 30, 1988. SEC. 6163. USE OF EXISTING FEDERAL RESEARCH AND DEVELOPMENT FACILITIES FOR CIVILIAN LAW ENFORCEMENT. (a) Comprehensive Plan.— The President of the United States shall direct the Office of National Drug Control Policy, established in title I of this Act, to develop a comprehensive plan for utilizing no fewer than eight existing facilities of the Department of Defense, the Department of Justice, the Department of Energy, National Security Agency, and the Central Intelligence Agency, to develop technologies for application to Federal law enforcement agency missions, and to provide research, development, technology, and evaluation support to the law enforcement agencies of the Federal Government. Such plan shall be prepared and submitted to the Congress by no later than 90 days from the date of enactment of this Act. (b) Existing Facilities To Be Examined.— The following existing United States Government facilities shall be examined in developing the comprehensive plan mandated in subsection (a): (1) for night vision research and development—Department of Defense, Army Materiel Command, Night Vision Laboratory at Fort Belvoir, Virginia; (2) for ground sensor research and development—Department of Defense, Army Materiel Command, Communications Electronic Command, Fort Monmouth, New Jersey; (3) for physical/electronic security research and development—Department of Defense, Air Force Systems Command, Electronic Systems Division, Hanscom Field, Massachusetts; (4) for imaging/electronic surveillance research and development—Central Intelligence Agency and National Security Agency, Washington, DC; (5) for chemical/biosensor research and development—Department of Defense, Army Materiel Command, Chemical Research Development and Engineering Center, Aberdeen, Maryland; (6) for chemical/molecular detector research and development—Department of Energy, Sandia National Laboratories, Albuquerque, New Mexico; (7) for physical/electronic surveillance and tracking, research and development—Department of Justice, Federal Bureau of Investigation and Drug Enforcement Administration, Washington, DC; and (8) for explosives ordnance detection research and development—Department of Defense, Naval Ordnance Station, Indian Head, Maryland. (c) Participation.— In developing the plan mandated in subsection (a), the Director of National Drug Control Policy shall ensure that representatives of the Federal law enforcement agencies are provided an opportunity to participate in the formulation of the comprehensive plan and that their views and recommendations are integrated into the planning process. (d) Comptroller General Oversight.— The Comptroller General of the United States shall monitor the development of the plan mandated in subsection (a) and report periodically to the appropriate Committees of the Congress on the progress of the development of this research and development program. SEC. 6164. FEDERAL LAW ENFORCEMENT TRAINING CENTER IMPROVEMENT. (a) Authorization of Appropriations for the Federal Law Enforcement Training Center.— (1) There is authorized to be appropriated for salaries and expenses of the Federal Law Enforcement Training Center for fiscal year 1989, $5,740,000; Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That $4,100,000 of such additional appropriation shall be used by the Federal Law Enforcement Training Center only to accommodate the advanced in-service training requirements of the Drug Enforcement Administration that cannot otherwise be met at the Department of Justice training facilities: Provided further, That $1,640,000 of such additional appropriation shall be used by the Center to increase the level of drug enforcement training, including basic and advanced training, for Federal, State, and local law enforcement officers: Provided further, That the Center shall hire 44 additional direct full-time equivalent positions and maintain an average of not less than 469 direct full-time equivalent positions by the end of fiscal year 1990. Provided further, That, on a space available, cost reimbursable basis, the Center shall, to the extent practical, increase the level of training for drug enforcement officers from foreign countries that are cooperating with the law enforcement agencies of the United States Government. (2) There are authorized to be appropriated for salaries and expenses of the Federal Law Enforcement Training Center, $45,000,000 for the fiscal year ending September 30, 1990, and $50,000,000 for the fiscal year ending September 30, 1991: Provided, That in each fiscal year addressed in this paragraph, support for the State and local law enforcement training program and the training programs for drug enforcement officers from foreign countries shall be maintained at no less than the level of support in the fiscal year ending September 30, 1989. (b) Expanded Training.— The Secretary of the Treasury is directed to expand the advanced training programs for Federal law enforcement agencies at the Marana, Arizona, satellite facility of the Federal Law Enforcement Training Center, within the total amount of appropriations authorized for fiscal years 1989, 1990, and 1991. (c) Report.— The Secretary of the Treasury is directed to report in writing to the appropriate committees of the Congress by no later than 90 days from the date of enactment of this Act with his preliminary plans for the increased training activities at the Federal Law Enforcement Training Center facilities to be funded with the additional appropriations authorized in subsection (a)(1) of this section, and the authorized level of appropriations contained in subsection (a)(2). SEC. 6165. FEDERAL LAW ENFORCEMENT LANGUAGE TRAINING IMPROVEMENT. (a) Department of Defense.— The Department of Defense is authorized to provide, on a cost reimbursable basis, foreign language training at the Defense Language Institute to special agents of Federal civilian agencies involved in drug law enforcement. (b) Department of State.— The Department of State is authorized to provide, on a cost reimbursable basis, foreign language training at the Foreign Service Institute to special agents of Federal civilian agencies involved in drug law enforcement. (c) Drug Enforcement Administration.— The Drug Enforcement Administration is authorized to— (1) detail special agent personnel for foreign language training to the Defense Language Institute or the Foreign Service Institute; and (2) reimburse, from appropriated funds, the Departments of Defense and State for the cost of training provided. (d) Customs Service.— The Customs Service is authorized to— (1) detail special agent personnel for foreign language training to the Defense Language Institute or the Foreign Service Institute, or both; and (2) reimburse, from appropriated funds, the Departments of Defense and State for the cost of training provided. (e) INS.— The Immigration and Naturalization Service is authorized to— (1) detail investigative personnel for foreign language training to the Defense Language Institute or the Foreign Service Institute; and (2) reimburse, from appropriated funds, the Departments of Defense and State for the cost of training provided. (f) Authorization of Appropriations.— The following amounts are authorized to be appropriated to implement the provisions of this section: (1) to the Commissioner of Customs, only for obligation for special agent foreign language training, $273,000; (2) to the Administrator of the Drug Enforcement Administration, only for obligation for special agent foreign language training, $273,000; and (3) to the Commissioner of the Immigration and Naturalization Service, only for obligation for special agent foreign language training, $273,000. (g) Rules Applicable to Appropriations.— Moneys appropriated pursuant to this section shall— (1) remain available until expended; and (2) shall be made available by the United States Customs Service, the Immigration and Naturalization Service, and the Drug Enforcement Administration out of the total amount of additional funds authorized to be appropriated in this Act. SEC. 6166. INTERDICTION TASK FORCE PROGRAMS. (a) Authorization of Appropriations.— There is authorized to be appropriated for salaries and expenses of the Drug Enforcement Administration for fiscal year 1989, $4,920,000: Provided, That such appropriation shall be in addition to any appropriations provided in regular appropriations Acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That such appropriations shall be made available for the United States-Bahamas Drug Interdiction Task Force established by section 3301 of subtitle E of title III of the Antidrug Abuse Act of 1986 (21 U.S.C. 801 note) and related activities: Provided further, That of these amounts made available for the United States-Bahamas Drug Interdiction Task Force under this section, the Drug Enforcement Administration is authorized to provide grants or other financial assistance to the Commonwealth of the Bahamas in the establishment of a Bahamian Enforcement Strike Team that will conduct unilateral Bahamian Government drug interdiction operations in the southern Bahamian Islands: Provided further, That the appropriations authorized under this section shall only be made available for United States-Bahamian drug interdiction operations upon receipt of a $410,000 contribution toward such joint operations by the Commonwealth of the Bahamas in fiscal year 1989. (b) Sense of Congress.— It is the sense of the Congress that— Nigel Bowe. (1) the Commonwealth of the Bahamas should aggressively pursue the extradition of Nigel Bowe and the consummation of the pending extradition treaty with the United States by the end of 1988; (2) the Government of the United States should cooperate fully with the Commonwealth of the Bahamas in providing information to the Bahamas regarding allegations of corruption and cooperate in responding to requests from the Commonwealth of the Bahamas for the extradition of United States citizens who have been indicted for drug-related offenses in the Bahamas; and (3) agents of the Drug Enforcement Agency should be physically present when confiscated or seized illegal drug contraband is destroyed by personnel of the Commonwealth of the Bahamas. SEC. 6167. INTERPOL—UNITED STATES NATIONAL CENTRAL BUREAU. There is authorized to be appropriated for the United States National Central Bureau for fiscal year 1989 $820,000: Provided, That such appropriation shall be in addition to any appropriations requested by the President in his fiscal year 1989 budget as presented to Congress on February 18, 1988, or provided in regular appropriations acts or continuing resolutions for the fiscal year ending September 30, 1989: Provided further, That such appropriation shall be used to increase personnel by no fewer than 23 full-time equivalent positions over personnel levels as of September 30, 1988 for the purpose of maintaining no fewer than 24-hour operations and for upgrading telecommunications equipment. SEC. 6168. DRUG ENFORCEMENT ADMINISTRATION AIR WING FACILITY. The Administrator of the Drug Enforcement Administration shall take such action (including site acquisition, purchase of equipment and fixtures, and relocation from any former facility) as may be necessary to establish, maintain, and operate a special purpose facility for the use of the Drug Enforcement Administration Air Wing, to be located at a site having direct aircraft access to public aviation facilities. To carry out this section, there is authorized to be appropriated for the Department of Justice for the Drug Enforcement Administration, $10,800,000. Subtitle E— Money Laundering SEC. 6181. SHORT TITLE. This subtitle may be cited as the “Money Laundering Prosecution Improvements Act of 1988”. SEC. 6182. APPLICATION OF SECTION 1957 TO ATTORNEYS FEES. Section 1957(f)(1) of title 18, United States Code, is amended by inserting after “title 31)” the second place it appears the following: “, but such term does not include any transaction necessary to preserve a person’s right to representation as guaranteed by the sixth amendment to the Constitution”. SEC. 6183. CROSS-REFERENCE TECHNICAL CORRECTIONS. Section 1956(c)(7)(D) of title 18, United States Code, is amended by striking out “section 38 of the Arms Export Control Act” and all that follows through “(50 U.S.C. App. 3)” and inserting in lieu thereof “section 38(c) (relating to criminal violations) of the Arms Export Control Act, section 11 (relating to violations) of the Export Administration Act of 1979, section 206 (relating to penalties) of the International Emergency Economic Powers Act, or section 16 (relating to offenses and punishment) of the Trading with the Enemy Act.”. SEC. 6184. DEFINITION OF MONETARY INSTRUMENT FOR MONEY LAUNDERING OFFENSES. Section 1957 of title 18, United States Code, is amended by striking out “for the purposes of subchapter II of chapter 53 of title 31” and inserting “in section 1956(c)(5) of this title” in lieu thereof. SEC. 6185. BANK SECRECY ACT AMENDMENTS. (a) Business Similar to Financial Institutions.— Section 5312(a)(2) of title 31, United States Code, is amended by striking subparagraphs (T) and (U) and inserting the following: “(T) a business engaged in vehicle sales, including automobile, airplane, and boat sales; “(U) persons involved in real estate closings and settlements; “(V) the United States Postal Service; “(W) an agency of the United States Government or of a State or local government carrying out a duty or power of a business described in this paragraph; “(X) any business or agency which engages in any activity which the Secretary of the Treasury determines, by regulation, to be an activity which is similar to, related to, or a substitute for any activity in which any business described in this paragraph is authorized to engage; or “(Y) any other business designated by the Secretary whose cash transactions have a high degree of usefulness in criminal, tax, or regulatory matters.”. (b) Identification Required To Purchase Certain Monetary Instruments of $3,000 or More.— Subchapter II of chapter 53 of title 31, United States Code, is amended by adding at the end thereof the following new section: “§ 5325. Identification required to purchase certain monetary instruments “(a) In General.— No financial institution may issue or sell a bank check, cashier’s check, traveler’s check, or money order to any individual in connection with a transaction or group of such contemporaneous transactions which involves United States coins or currency (or such other monetary instruments as the Secretary may prescribe) in amounts or denominations of $3,000 or more unless— “(1) the individual has a transaction account with such financial institution and the financial institution— “(A) verifies that fact through a signature card or other information maintained by such institution in connection with the account of such individual; and “(B) records the method of verification in accordance with Regulations. regulations which the Secretary of the Treasury shall prescribe; or “(2) the individual furnishes the financial institution with Regulations. such forms of identification as the Secretary of the Treasury may require in regulations which the Secretary shall prescribe and the financial institution verifies and records such information in accordance with regulations which such Secretary shall prescribe. “(b) Report to Secretary Upon Request.— Any information required to be recorded by any financial institution under paragraph (1) or (2) of subsection (a) shall be reported by such institution to the Secretary of the Treasury at the request of such Secretary. “(c) Transaction Account Defined.— For purposes of this section, the term ‘transaction account’ has the meaning given to such term in section 19(b)(1)(C) of the Federal Reserve Act.”. (c) Secretary Authorized to Require Recordkeeping for Domestic Coin and Currency Transactions.— Subchapter II of chapter 53 of title 31, United States Code, is amended by inserting after section 5325 (as added by subsection (b) of this section) the following new section: “§ 5326. Records of certain domestic coin and currency transactions “(a) In General.— If the Secretary of the Treasury finds, upon the Secretary’s own initiative or at the request of an appropriate Federal or State law enforcement official, that reasonable grounds exist for concluding that additional recordkeeping and reporting requirements are necessary to carry out the purposes of this subtitle and prevent evasions thereof, the Secretary may issue an order requiring any domestic financial institution or group of domestic financial institutions in a geographic area— “(1) to obtain such information as the Secretary may describe in such order concerning— “(A) any transaction in which such financial institution is involved for the payment, receipt, or transfer of United States coins or currency (or such other monetary instruments as the Secretary may describe in such order) the total amounts or denominations of which are equal to or greater than an amount which the Secretary may prescribe; and “(B) any other person participating in such transaction; “(2) to maintain a record of such information for such period of time as the Secretary may require; and “(3) to file a report with respect to any transaction described in paragraph (1)(A) in the manner and to the extent specified in the order. “(b) Maximum Effective Period for Order.— No order issued under subsection (a) shall be effective for more than 60 days unless renewed pursuant to the requirements of subsection (a).”. (d) Regulations and Penalties.— (1) Insured banks.— Section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b) is amended by adding at the end thereof the following new subsection: “(j) Civil Penalties.— “(1) Penalty imposed.— Any insured bank and any director, officer, or employee of an insured bank who willfully or through gross negligence violates any regulation prescribed under subsection (b) shall be liable to the United States for a civil penalty of not more than $10,000. “(2) Treatment of continuing violation.— A separate violation of any regulation prescribed under subsection (b) of this section occurs for each day the violation continues and at each office, branch, or place of business at which such violation occurs. “(3) Assessment.— Any penalty imposed under paragraph (1) shall be assessed, mitigated, and collected in the manner provided in subsections (b) and (c) of section 5321 of title 31, United States Code.”. (2) Insured institutions.— Section 411 of the National Housing Act (12 U.S.C. 1730d) is amended— (A) by striking out “The Secretary” and inserting in lieu thereof “(a) Regulations.—The Secretary”; and (B) by adding at the end thereof the following new subsection: “(b) Civil Penalties.— “(1) Penalty imposed.— Any insured institution and any director, officer, or employee of an insured institution who willfully or through gross negligence violates any regulation prescribed under subsection (a) of this section shall be liable to the United States for a civil penalty of not more than $10,000. “(2) Treatment of continuing violation.— A separate violation of any regulation prescribed under subsection (a) of this section occurs for each day the violation continues and at each office, branch, or place of business at which such violation occurs. “(3) Assessment.— Any penalty imposed under paragraph (1) shall be assessed, mitigated, and collected in the manner provided in subsections (b) and (c) of section 5321 of title 31, United States Code.”. (3) Other financial institutions.— (A) Institutions subject to recordkeeping requirement.— Section 123(b) of Public Law 91–508 (12 U.S.C. 1953(b)) is amended to read as follows: “(b) Institutions Subject to Recordkeeping Requirements.— The authority of the Secretary of the Treasury under subsection (a) extends to any financial institution (as defined in section 5312(a)(2) of title 31, United States Code), other than any insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act) and any insured institution (as defined in section 401(a) of the National Housing Act), and any partner, officer, director, or employee of any such financial institution.”. (B) Civil penalties.— Section 125(a) of Public Law 91–508 (12 U.S.C. 1955(a)) is amended— (i) by striking out “$1,000” and inserting in lieu thereof “$10,000”; (ii) by inserting “or grossly negligent” after “willful”; and “(iii) by inserting “or through gross negligence” after “willfully”. (e) Delegation of Enforcement Power to Postal Service.— Section 5318(a)(1) of title 31, United States Code, is amended by inserting “and the Postal Service” after “appropriate supervising agency”. (f) Clerical Amendment.— The table of sections for chapter 53 of title 31, United States Code, is amended by adding at the end thereof the following new items: “5325. Identification required to purchase certain monetary instruments. “5326. Records of certain domestic coin and currency transactions.”. (g) Technical Corrections.— (1) Section 5312(a)(5) of title 31, United States Code, is amended— (A) by inserting a comma after “Puerto Rico”; and (B) by striking the second comma after “Pacific Islands”. (2) The first sentence of section 5321(a)(1) of title 31, United States Code, is amended by inserting “(if any)” after “transaction”. SEC. 6186. RIGHT TO FINANCIAL PRIVACY ACT AMENDMENTS. (a) Clarification of Right of Financial Institutions to Report Suspected Violations.— Section 1103(c) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3403(c)) is amended by inserting “, corporation,” after “individual”. (b) Transfer by Government Agency of Records to Attorney General for Criminal Investigation.— Section 1112 of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3412) is amended by adding at the end thereof the following new subsection: “(f) Transfer to Attorney General.— “(1) In general.— Nothing in this title shall apply when financial records obtained by an agency or department of the United States are disclosed or transferred to the Attorney General upon the certification by a supervisory level official of the transferring agency or department that— “(A) there is reason to believe that the records may be relevant to a violation of Federal criminal law; and “(B) the records were obtained in the exercise of the agency’s or department’s supervisory or regulatory functions. “(2) Limitation on use.— Records so transferred shall be used only for criminal investigative or prosecutive purposes by the Department of Justice and shall, upon completion of the investigation or prosecution (including any appeal), be returned only to the transferring agency or department.”. (c) Financial Records of Insiders.— Section 1113 of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3413) is amended by adding at the end thereof the following new subsection: “(l) Crimes Against Financial Institutions by Insiders.— Nothing in this title shall apply when any financial institution or supervisory agency provides any financial record of any officer, director, employee, or controlling shareholder (within the meaning of subparagraph (A) or (B) of section 2(a)(2) of the Bank Holding Company Act of 1956 or subparagraph (A) or (B) of section 408(a)(2) of the National Housing Act) of such institution, or of any major borrower from such institution who there is reason to believe may be acting in concert with any such officer, director, employee, or controlling shareholder, to the Attorney General of the United States, to a State law enforcement agency, or, in the case of a possible violation of subchapter II of chapter 53 of title 31, United States Code, to the Secretary of the Treasury if there is reason to believe that such record is relevant to a possible violation by such person of— “(1) any law relating to crimes against financial institutions or supervisory agencies by directors, officers, employees, or controlling shareholders of, or by borrowers from, financial institutions; or “(2) any provision of subchapter II of chapter 53 of title 31, United States Code.”. (d) Good Faith as a Defense From Liability for Disclosure of Financial Records of Insiders.— Section 1117(c) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3417(c)) is amended— (1) by inserting “or pursuant to the provisions of section 1113(1)” after “certificate by any Government authority”; and (2) by inserting before the period at the end thereof the following: “under this title, the constitution of any State, or any law or regulation of any State or any political subdivision of any State”. (e) Exception to Requirement of Actual Presentation of Financial Records to Grand Jury.— Section 1120(1) of the Right to 12 USC 3420. Financial Privacy Act of 1978 (12 U.S.C. 1120(1)) is amended by inserting before the semicolon “unless the volume of such records makes such return and actual presentation impractical in which case the grand jury shall be provided with a description of the contents of the records.”. SEC. 6187. STUDY OF WITHDRAWAL OF LEGAL TENDER STATUS OF $100 FEDERAL RESERVE NOTES. (a) Study Required.— The Secretary of the Treasury, in consultation with appropriate law enforcement agencies, shall conduct a study of the feasibility of withdrawing the legal tender status of $100 Federal Reserve notes. (b) Factors To Be Considered.— The study conducted pursuant to subsection (a) by the Secretary of the Treasury shall include an analysis of the following factors: (1) Whether $100 Federal Reserve notes are being used predominately for illegal activities, especially drug-related transactions. (2) Whether withdrawing the legal tender status of $100 Federal Reserve notes would help deter such illegal activities. (3) Whether withdrawing the legal tender status of $100 Federal Reserve notes would impair legitimate business transactions. (4) Whether withdrawing the legal tender status of $50 Federal Reserve notes (in addition to the $100 notes) would result in even greater deterrence of illegal activities. (c) Report Required.— Before the end of the 180-day period beginning on the date of the enactment of this Act, the Secretary of the Treasury shall submit a report to the Congress on the study conducted pursuant to subsection (a). Subtitle F— Sense of Congress That Proposals To Legalize Illicit Drugs Should Be Rejected SEC. 6201. SENSE OF CONGRESS THAT PROPOSALS TO LEGALIZE ILLICIT DRUGS SHOULD BE REJECTED. It is the sense of Congress that— (1) proposals to combat sale and use of illicit drugs by legalization should be rejected; and (2) consideration should be given only to proposals to attack directly the supply of, and demand for, illicit drugs, such as proposals to strengthen and expand penalties for sale and use, proposals to encourage greater multinational cooperation in eradication and interdiction, and proposals to promote educational awareness programs for young people. Subtitle G— Firearms Provisions SEC. 6211. INTERDICTION OF SUPPLY OF FIREARMS TO DRUG TRAFFICKERS. Section 924 of title 18, United States Code, is amended by adding at the end the following: “(f) Whoever, with the intent to engage in conduct which— “(1) constitutes an offense listed in section 1961(1), “(2) is punishable under the Controlled Substances Act (21 U.S.C. 802 et seq.), the Controlled Substances Import and Export Act (21 U.S.C. 951 et seq.), or the Maritime Drug Law Enforcement Act (46 U.S.C. App. 1901 et seq.), “(3) violates any State law relating to any controlled substance (as defined in section 102(6) of the Controlled Substances Act (21 U.S.C. 802(6))), or “(4) constitutes a crime of violence (as defined in subsection (c)(3)), travels from any State or foreign country into any other State and acquires, transfers, or attempts to acquire or transfer, a firearm in such other State in furtherance of such purpose, shall be imprisoned not more than 10 years, fined in accordance with this title, or both. “(g) Whoever knowingly transfers a firearm, knowing that such firearm will be used to commit a crime of violence (as defined in subsection (c)(3)) or drug trafficking crime (as defined in subsection (c)(2)) shall be imprisoned not more than 10 years, fined in accordance with this title, or both.”. SEC. 6212. CLARIFICATION OF DEFINITION OF DRUG TRAFFICKING CRIMES IN WHICH USE OR CARRYING OF FIREARMS AND ARMOR PIERCING AMMUNITION IS PROHIBITED. Paragraph (2) of section 924(c) of title 18, United States Code, and paragraph (2) of section 929(a) of title 18, United States Code, are each amended to read as follows: “(2) For purposes of this subsection, the term ‘drug trafficking crime’ means any felony punishable under the Controlled Substances Act (21 U.S.C. 801 et seq.), the Controlled Substances Import and Export Act (21 U.S.C. 951 et seq.), or the Maritime Drug Law Enforcement Act (46 U.S.C. App. 1901 et seq.).”. SEC. 6213. IDENTIFICATION OF FELONS AND OTHER PERSONS INELIGIBLE TO PURCHASE HANDGUNS. (a) Identification of Felons Ineligible To Purchase Handguns.— The Attorney General shall develop a system for immediate and accurate identification of felons who attempt to purchase 1 or more firearms but are ineligible to purchase firearms by reason of section 922(g)(1) of title 18, United States Code. The system shall be accessible to dealers but only for the purpose of determining whether a potential purchaser is a convicted felon. The Attorney General shall establish a plan (including a cost analysis of the proposed system) for implementation of the system. In developing the system, the Attorney General shall consult with the Secretary of the Treasury, other Federal, State, and local law enforcement officials with expertise in the area, and other experts. The Attorney General shall begin implementation of the system 30 days after the report to the Congress as provided in subsection (b). (b) Report to Congress.— Not later than 1 year after the date of the enactment of this Act, the Attorney General shall report to the Congress a description of the system referred to in subsection (a) and a plan (including a cost analysis of the proposed system) for implementation of the system. Such report may include, if appropriate, recommendations for modifications of the system and legislation necessary in order to fully implement such system. (c) Additional Study of Other Persons Ineligible To Purchase Firearms.— The Attorney General in consultation with the Secretary of the Treasury shall conduct a study to determine if an effective method for immediate and accurate identification of other persons who attempt to purchase 1 or more firearms but are ineligible to purchase firearms by reason of section 922(g) of title 18, United States Code. In conducting the study, the Attorney General shall consult with the Secretary of the Treasury, other Federal, State, and local law enforcement officials with expertise in the area, and other experts. Such study shall be completed within 18 months after the date of the enactment of this Act and shall be submitted to the Congress and made available to the public. Such study may include, if appropriate, recommendations for legislation. (d) Definitions.— As used in this section, the terms “firearm” and “dealer” shall have the meanings given such terms in section 921(a) of title 18, United States Code. SEC. 6214. REVOCATION OF PROBATION. Section 3565 of title 18, United States Code, is amended— (1) by redesignating subsection (b) as subsection (c); and (2) by inserting after subsection (a) the following new subsection: “(b) Mandatory Revocation for Possession of a Firearm.— If the defendant is in actual possession of a firearm, as that term is defined in section 921 of this title, at any time prior to the expiration or termination of the term of probation, the court shall, after a hearing pursuant to Rule 32.1 of the Federal Rules of Criminal Procedure, revoke the sentence of probation and impose any other sentence that was available under subchapter A at the time of the initial sentencing.”. SEC. 6215. PROHIBITION AGAINST FIREARMS AND DANGEROUS WEAPONS IN FEDERAL FACILITIES. (a) In General.— Chapter 44 of title 18, United States Code, is amended by adding at the end the following new section: “§ 930. Possession of firearms and dangerous weapons in Federal facilities “(a) Except as provided in subsection (c), whoever knowingly possesses or causes to be present a firearm or other dangerous weapon in a Federal facility, or attempts to do so, shall be fined under this title or imprisoned not more than 1 year, or both. “(b) Whoever, with intent that a firearm or other dangerous weapon be used in the commission of a crime, knowingly possesses or causes to be present such firearm or dangerous weapon in a Federal facility, or attempts to do so, shall be fined under this title or imprisoned not more than 5 years, or both. “(c) Subsection (a) shall not apply to— “(1) the lawful performance of official duties by an officer, agent, or employee of the United States, a State, or a political subdivision thereof, who is authorized by law to engage in or supervise the prevention, detection, investigation, or prosecution of any violation of law; “(2) the possession of a firearm or other dangerous weapon by a Federal official or a member of the Armed Forces if such possession is authorized by law; or “(3) the lawful carrying of firearms or other dangerous weapons in a Federal facility incident to hunting or other lawful purposes. “(d) Nothing in this section limits the power of a court of the United States to punish for contempt or to promulgate rules or orders regulating, restricting, or prohibiting the possession of weapons within any building housing such court or any of its proceedings, or upon any grounds appurtenant to such building. “(e) As used in this section: “(1) The term ‘Federal facility’ means a building or part thereof owned or leased by the Federal Government, where Federal employees are regularly present for the purpose of performing their official duties. “(2) The term ‘dangerous weapon’ means a weapon, device, instrument, material, or substance, animate or inanimate, that is used for, or is readily capable of, causing death or serious bodily injury, except that such term does not include a pocket knife with a blade of less than 2½. inches in length. “(f) Notice of the provisions of subsections (a) and (b) shall be posted conspicuously at each public entrance to each Federal facility, and no person shall be convicted of an offense under subsection (a) with respect to a Federal facility if such notice is not so posted at such facility, unless such person had actual notice of subsection (a).”. (b) Clerical Amendment.— The table of sections for chapter 44 of title 18, United States Code, is amended by adding at the end the following new item: “930. Possession of firearms and dangerous weapons in Federal facilities.”. Subtitle H— Investigative Powers of Postal Service Personnel and National Forest System Drug Control SEC. 6251. INVESTIGATIVE POWERS OF POSTAL SERVICE PERSONNEL. (a) In General.— Section 3061 of title 18, United States Code, is amended to read as follows: “§ 3061. Investigative powers of Postal Service personnel “(a) Subject to subsection (b) of this section, Postal Inspectors and other agents of the United States Postal Service designated by the Board of Governors to investigate criminal matters related to the Postal Service and the mails may— “(1) serve warrants and subpoenas issued under the authority of the United States; “(2) make arrests without warrant for offenses against the United States committed in their presence; “(3) make arrests without warrant for felonies cognizable under the laws of the United States if they have reasonable grounds to believe that the person to be arrested has committed or is committing such a felony; “(4) carry firearms; and “(5) make seizures of property as provided by law. “(b) The powers granted by subsection (a) of this section shall be exercised only— “(1) in the enforcement of laws regarding property in the custody of the Postal Service, property of the Postal Service, the use of the mails, and other postal offenses; and “(2) to the extent authorized by the Attorney General pursuant to agreement between the Attorney General and the Postal Service, in the enforcement of other laws of the United States, if the Attorney General determines that violations of such laws have a detrimental effect upon the operations of the Postal Service.”. (b) Clerical Amendment.— The item relating to section 3061 in the table of sections of chapter 203 of title 18, United States Code, is amended to read as follows: “3061. Investigative powers of Postal Service personnel.”. SEC. 6252. POSTAL SERVICE FUND AMENDMENTS. Section 2003(b)(7) of title 39, United States Code, is amended— (1) by striking out “administrative”; and (2) by striking out “under title 18”. SEC. 6253. CIVIL FORFEITURE AUTHORITY OF THE POSTAL SERVICE UNDER THE CONTROLLED SUBSTANCES ACT. (a) In General.— Section 511 of the Controlled Substances Act (21 U.S.C. 881), as amended by section 6159, is further amended by adding at the end the following new subsection: “(l) The functions of the Attorney General under this section shall be carried out by the Postal Service pursuant to such agreement as may be entered into between the Attorney General and the Postal Service.”. (b) Deposits of Proceeds in Postal Service Fund.— Section 511(e)(2)(B) of the Controlled Substances Act (21 U.S.C. 881(e)(2)(B)) is amended by striking out the period at the end and inserting in lieu thereof the following: “, except that, with respect to forfeitures conducted by the Postal Service, the Postal Service shall deposit in the Postal Service Fund, under section 2003(b)(7) of title 39, United States Code, such moneys and proceeds.”. SEC. 6254. NATIONAL FOREST SYSTEM, NATIONAL PARK SYSTEM, AND BUREAU OF LAND MANAGEMENT PUBLIC LANDS SAFETY. (a) Findings.— Congress finds that— 16 USC 559b note. (1) National Forest System lands continue to be a haven for the unlawful production of marijuana and other controlled substances, which— (A) endangers the public in its use of National Forest System lands; (B) interferes with the ability of the Forest Service to effectively manage the natural resources and activities within the National Forest System; and (C) causes damage and destruction of the natural resources and facilities managed by the Forest Service; (2) the unlawful production of marijuana and other controlled substances often— (A) is generally harmful to the environment and public health and safety; (B) pollutes the air, soil, and water; and (C) is harmful to wildlife; (3) the Forest Service needs additional authority to adequately deal with the problem of controlled substance production that affects the administration of the National Forest System; (4) the Forest Service needs to be able to exercise its investigative authorities outside the boundaries of the National Forest System for drug-related crimes arising from within the National Forest System in order to be effective in deterring such crime; (5) the authority and powers of the Forest Service are not intended to be in conflict or interfere with the statutory authority, powers, or responsibilities of any State or political subdivision thereof; and (6) the Forest Service, in the exercise of its law enforcement powers, should cooperate to every extent possible with any other Federal, State, or local law enforcement authority having jurisdiction in areas where national forests are located, particularly where coordinated investigative and enforcement actions can be effective to control crime which affects multiple agencies. (b) Powers.— Section 15003 of the National Forest System Drug Control Act of 1986 (16 U.S.C. 559c) is amended— (1) in the matter preceding paragraph (1)— (A) by striking out “500 officers and employees” and inserting in lieu thereof “1,000 special agents and law enforcement officers”; and (B) by striking out “within the boundaries of the National Forest System”; (2) in paragraph (2)— (A) by inserting after “conduct” the following: “, within the exterior boundaries of the National Forest System,”; and (B) by inserting before the semicolon at the end thereof the following: “and to conduct such investigations and enforcement of such laws outside the exterior boundaries of the National Forest System for offenses committed within the National Forest System or which affect the administration of the National Forest System (including the pursuit of persons suspected of such offenses who flee the National Forest System to avoid arrest)”; and (3) in paragraph (3), by inserting before the semicolon at the end thereof the following: “, for offenses committed within the National Forest System or which affect the administration of the National Forest System;”. (c) Cooperation.— Section 15004 of the National Forest System Drug Control Act of 1986 (16 U.S.C. 559d) is amended— (1) in paragraph (1), by striking out “and” at the end thereof; (2) in paragraph (2), by striking out “, within the boundaries of the National Forest System.” and inserting in lieu thereof “for offenses committed within the National Forest System or which affect the administration of the National Forest System.”; and (3) by adding at the end thereof the following new paragraphs: “(3) the Forest Service shall cooperate with the Attorney General in carrying out the seizure and forfeiture provisions of section 511 of the Controlled Substances Act (21 U.S.C. 881) for violations of the Controlled Substances Act relating to offenses committed within the National Forest System, or which affect the administration of the National Forest System; “(4) the Secretary is authorized to designate law enforcement officers of any other Federal agency, when the Secretary determines such designation to be economical and in the public interest, and with the concurrence of that agency, to exercise the powers and authorities of the Forest Service while assisting the Forest Service in the National Forest System, or for activities administered by the Forest Service; and “(5) the Forest Service is authorized to accept law enforcement designation from any other Federal agency or agency of a State or political subdivision thereof for the purpose of cooperating in a multi-agency law enforcement task force investigation of violations of the Controlled Substances Act and other offenses committed in the course of or in connection with such violations.”. (d) Authorization of Appropriations.— (1) National forest system.— Section 15006 of title XV of the Anti-Drug Abuse Act of 1986 (16 U.S.C. 559e) is amended to read as follows: “SEC. 15006. FOREST SERVICE AUTHORIZATION. “In order to improve Federal law enforcement activities relating to the use and production of narcotics and controlled substances on lands administered by the Forest Service, from amounts appropriated there shall be made available to the Secretary, in addition to sums made available under other authority of law, $10,000,000 for fiscal year 1989, and for each fiscal year thereafter, to be used for employment and training of additional and existing Forest Service law enforcement personnel, for expenses related to such employment, training, equipment, and facilities, and for cooperative programs with State and local law enforcement agencies.”. (2) National park service police.— Section 5052 of title V of the Anti-Drug Abuse Act of 1986 (16 U.S.C. 1 note) is amended to read as follows: “SEC. 5052. NATIONAL PARK AUTHORIZATION. “In order to improve Federal law enforcement activities relating to the use and production of narcotics and controlled substances in National Park System units, from amounts appropriated there shall be made available to the Secretary of the Interior, in addition to sums made available under other authority of law, $3,000,000 for fiscal year 1989, and for each fiscal year thereafter, to be used for the employment and training of officers or employees of the Department of the Interior designated pursuant to section 10(b) of the Act of August 18, 1970 (16 U.S.C. 1a–6), for equipment and facilities to be used by such personnel, and for expenses related to such employment, training, equipment, and facilities.”. (3) Bureau of Land Management.— Title V of the Anti-Drug Abuse Act of 1986 is amended by adding at the end thereof the following new subtitle: “Subtitle C— Bureau of Land Management Program “SEC. 5061. SHORT TITLE. “This subtitle may be cited as the ‘Bureau of Land Management Drug Enforcement Supplemental Authority Act’. “SEC. 5062. BUREAU OF LAND MANAGEMENT AUTHORIZATION. “In order to improve Federal law enforcement activities relating to the use and production of narcotics and controlled substances on Bureau of Land Management public lands, from amounts appropriated there are made available to the Secretary of the Interior, in addition to sums made available under other authority of law, $1,500,000 for fiscal year 1989, and for each fiscal year thereafter, to be used for the employment and training of additional and existing personnel, for equipment and facilities to be used by such personnel, and for expenses related to such employment, training, equipment, and facilities.”. (e) Designation of Authority.— The National Forest System Drug Control Act of 1986 is amended by inserting after section 15007 (16 U.S.C. 559f) the following new section: “SEC. 15008. DESIGNATION AUTHORITY OF SECRETARY OF AGRICULTURE. “(a) Purpose.— It is the purpose of this section to authorize the Secretary of Agriculture to make law enforcement operations more efficient in connection with the administration and use of the National Forest System. “(b) Officers of Other Agencies.— The Secretary is authorized to designate law enforcement officers of any other Federal agency, when the Secretary determines such designation to be economical and in the public interest, and with the concurrence of that agency, to exercise the powers and authorities of the Forest Service while assisting the Forest Service in the National Forest System, or for activities administered by the Forest Service. “(c) Acceptance by Forest Service.— The Forest Service is authorized to accept law enforcement designation from any other Federal agency or agency of a State or political subdivision thereof for the purpose of cooperating in the investigation and enforcement of any Federal or State law or ordinance and regulation of any such agency, when such investigation or enforcement is mutually beneficial to the National Forest System and the cooperating agency or jurisdiction, upon entering into a memorandum of understanding or cooperative agreement with such agency or jurisdiction.”. (f) Criminal Penalty for Placing Hazardous or Injurious Devices on Federal Lands.— Chapter 91 of title 18, United States Code, is amended by adding at the end the following new section: “§ 1864. Hazardous or injurious devices on Federal lands “(a) Whoever— “(1) with the intent to violate the Controlled Substances Act, “(2) with the intent to obstruct or harass the harvesting of timber, or “(3) with reckless disregard to the risk that another person will be placed in danger of death or bodily injury and under circumstances manifesting extreme indifference to such risk, uses a hazardous or injurious device on Federal land, on an Indian reservation, or on an Indian allotment while the title to such allotment is held in trust by the United States or while such allotment remains inalienable by the allottee without the consent of the United States shall be punished under subsection (b). “(b) An individual who violates subsection (a) shall— “(1) if death of an individual results, be fined under this title or imprisoned for any term of years or for life, or both; “(2) if serious bodily injury to any individual results, be fined under this title or imprisoned for not more than twenty years, or both; “(3) if bodily injury to any individual results, be fined under this title or imprisoned for not more than ten years, or both; “(4) if damage exceeding $10,000 to the property of any individual results, be fined under this title or imprisoned for not more than ten years, or both; and “(5) in any other case, be fined under this title or imprisoned for not more than one year. “(c) Any individual who is punished under subsection (b)(3), (4), or (5) after one or more prior convictions under any such subsection shall be fined under this title or imprisoned for not more than ten years, or both. “(d) As used in this section— “(1) the term ‘serious bodily injury’ means bodily injury which involves— “(A) a substantial risk of death; “(B) extreme physical pain; “(C) protracted and obvious disfigurement; and (D) protracted loss or impairment of the function of bodily member, organ, or mental faculty; and “(2) the term ‘bodily injury’ means— “(A) a cut, abrasion, bruise, burn, or disfigurement; “(B) physical pain; “(C) illness; “(D) impairment of the function of a bodily member, organ, or mental faculty; or “(E) any other injury to the body, no matter how temporary. “(3) the term ‘hazardous or injurious device’ means a device, which when assembled or placed, is capable of causing bodily injury, or damage to property, by the action of any person making contact with such device subsequent to the assembly or placement. Such term includes guns attached to trip wires or other triggering mechanisms, ammunition attached to trip wires or other triggering mechanisms, or explosive devices attached to trip wires or other triggering mechanisms, sharpened stakes, lines or wires, lines or wires with hooks attached, nails placed so that the sharpened ends are positioned in an upright manner, or tree spiking devices including spikes, nails, or other objects hammered, driven, fastened, or otherwise placed into or on any timber, whether or not severed from the stump.”. (g) Clerical Amendment.— The table of sections for chapter 91 of title 18, United States Code, is amended by adding at the end the following new item: “1864. Hazardous or injurious devices on Federal lands.”. (h) Criminal Penalty for Polluting Federal Lands.— Section 401(b) of the Controlled Substances Act (21 U.S.C. 841(b)) is amended by adding at the end the following new paragraph: “(6) Any person who violates subsection (a), or attempts to do so, and knowingly or intentionally uses a poison, chemical, or other hazardous substance on Federal land, and, by such use— “(A) creates a serious hazard to humans, wildlife, or domestic animals, “(B) degrades or harms the environment or natural resources, or “(C) pollutes an aquifer, spring, stream, river, or body of water, shall be fined in accordance with title 18, United States Code, or imprisoned not more than five years, or both.”. (i) Drug Pollution Fund.— Section 516 of the Controlled Substances Act (21 U.S.C. 886) is amended by adding at the end the following new subsection: “(d) (1) There is established in the Treasury a trust fund to be known as the ‘Drug Pollution Fund’ (hereinafter referred to in this subsection as the ‘Fund’), consisting of amounts appropriated or credited to such Fund under section 401(b)(6). “(2) There are hereby appropriated to the Fund amounts equivalent to the fines imposed under section 401(b)(6). “(3) Amounts in the Fund shall be available, as provided in appropriations Acts, for the purpose of making payments in accordance with paragraph (4) for the clean up of certain pollution resulting from the actions referred to in section 401(b)(6). “(4) (A) The Secretary of the Treasury, after consultation with the Attorney General, shall make payments under paragraph (3), in such amounts as the Secretary determines appropriate, to the heads of executive agencies or departments that meet the requirements of subparagraph (B). “(B) In order to receive a payment under paragraph (3), the head of an executive agency or department shall submit an application in such form and containing such information as the Secretary of the Treasury shall by regulation require. Such application shall contain a description of the fine imposed under section 401(b)(6), the circumstances surrounding the imposition of such fine, and the type and severity of pollution that resulted from the actions to which such fine applies. “(5) For purposes of subchapter B of chapter 98 of the Internal Revenue Code of 1986, the Fund established under this paragraph shall be treated in the same manner as a trust fund established under subchapter A of such chapter.”. (j) Arson Involving Timber.— The first undesignated paragraph of section 1855 of title 18, United States Code, is amended by striking out “not more than $5,000” and inserting in lieu thereof “under this title”. (k) Report.— Not later than 180 days after the date of the enactment of this Act, the Attorney General and the Secretary of Agriculture shall each prepare and submit, to the Committee on Agriculture, the Committee on Interior and Insular Affairs, and the Committee on the Judiciary of the House of Representatives, and to the Committee on Agriculture, Nutrition, and Forestry, the Committee on Energy and Natural Resources, and the Committee on the Judiciary of the Senate, a report concerning the activities of the Attorney General and the Secretary of Agriculture in expediting investigations referred to in section 15003(2) of the National Forest Systems Drug Control Act of 1986 (16 U.S.C. 559c(2)). Subtitle I— Travel Expenses and Health Care of Department of Justice Personnel Serving Abroad SEC. 6281. AUTHORIZATION OF APPROPRIATIONS FOR TRAVEL AND RELATED EXPENSES AND FOR HEALTH CARE OF DEPARTMENT OF JUSTICE PERSONNEL SERVING ABROAD. (a) In General.— Chapter 31 of title 28, United States Code, is amended by adding at the end the following new section: “§ 530A. Authorization of appropriations for travel and related expenses and for health care of personnel serving abroad “There are authorized to be appropriated, for any fiscal year, for the Department of Justice, such sums as may be necessary— “(1) for travel and related expenses of employees of the Department of Justice serving abroad and their families, to be payable in the same manner as applicable with respect to the Foreign Service under paragraphs (3), (5), (6), (8), (9), (11), and (15) of section 901 of the Foreign Service Act of 1980, and under the regulations issued by the Secretary of State; and “(2) for health care for such employees and families, to be provided under section 904 of that Act.”. (b) Clerical Amendment.— The table of section for chapter 31 of title 28, United States Code, is amended by adding at the end the following new item: “530A. Authorization of appropriations for travel and related expenses and for health care of personnel serving abroad.”. Subtitle J— Program-Related and Study Provisions SEC. 6291. ENHANCEMENT OF THE DRUG AFTERCARE PROGRAM OF THE ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS. Section 4(a) of the Contract Services for Drug Dependent Federal Offenders Act of 1978 (18 U.S.C. 4255 note) is amended by— (1) striking out “$14,000,000” and inserting “$24,000,000” in lieu thereof, and (2) striking out “$16,000,000” and inserting “$26,000,000” in lieu thereof. SEC. 6292. NATIONAL TRAINING CENTER FOR PRISON DRUG REHABILITATION PROGRAM PERSONNEL. (a) In General.— The Director of the National Institute of Corrections, in consultation with persons with expertise in the field of community-based drug rehabilitation, shall establish and operate, at any suitable location, a national training center (hereinafter in this section referred to as the “center”) for training Federal, State, and local prison or jail officials to conduct drug rehabilitation programs for criminals convicted of drug-related crimes and for drug-dependent criminals. Programs conducted at the center shall include training for correctional officers, administrative staff, and correctional mental health professionals (including subcontracting agency personnel). (b) Design and Construction of Facilities.— The Director of the National Institute of Corrections shall design and construct facilities for the center. (c) Authorization of Appropriations.— In addition to amounts otherwise authorized to be appropriated with respect to the National Institute of Corrections, there are authorized to be appropriated to the Director of the National Institute of Corrections— (1) for establishment and operation of the center, for curriculum development for the center, and for salaries and expenses of personnel at the center, not more than $4,000,000 for each of fiscal years 1989, 1990, and 1991; and (2) for design and construction of facilities for the center, not more than $10,000,000 for fiscal years 1989, 1990, and 1991. SEC. 6293. STUDY OF ALTERNATIVE JUDICIAL SYSTEM. The Attorney General shall study the feasibility of prosecuting Federal drug-related offenses in a manner alternative or supplemental to the current criminal justice system. The Attorney General shall report the results of such study to Congress not later than 180 days after the date of the enactment of this Act. Subtitle K— Manufacturing Offenses SEC. 6301. CRIMINAL PENALTY FOR ENDANGERING HUMAN LIFE WHILE ILLEGALLY MANUFACTURING A CONTROLLED SUBSTANCE. (a) In General.— Part D of the Controlled Substances Act is amended by adding at the end the following new section: “Sec. 417. “endangering human life while illegally manufacturing a controlled substance Whoever, while manufacturing a controlled substance in violation of this title, or attempting to do so, or transporting or causing to be transported materials, including chemicals, to do so, creates a substantial risk of harm to human life shall be fined in accordance with title 18, United States Code, or imprisoned not more than 10 years, or both.”. (b) Clerical Amendment.— The table of contents of the Comprehensive Drug Abuse Prevention and Control Act of 1970 is amended by adding at the end of the items relating to part D of title II the following new items: “416. Establishment of manufacturing operations. “417. Endangering human life while illegally manufacturing a controlled substance.”. Subtitle L— Serious Crack Possession Offenses SEC. 6371. INCREASED PENALTIES FOR CERTAIN SERIOUS CRACK POSSESSION OFFENSES. Section 404(a) of the Controlled Substances Act (21 U.S.C. 844(a)) is amended by inserting after the second sentence the following new sentence: “Notwithstanding the preceding sentence, a person convicted under this subsection for the possession of a mixture or substance which contains cocaine base shall be fined under title 18, United States Code, or imprisoned not less than 5 years and not more than 20 years, or both, if the conviction is a first conviction under this subsection and the amount of the mixture or substance exceeds 5 grams, if the conviction is after a prior conviction for the possession of such a mixture or substance under this subsection becomes final and the amount of the mixture or substance exceeds 3 grams, or if the conviction is after 2 or more prior convictions for the possession of such a mixture or substance under this subsection become final and the amount of the mixture or substance exceeds 1 gram.”. Subtitle M— Miscellaneous Drug Enforcement SEC. 6401. PAYMENT OF BONUSES FOR FOREIGN LANGUAGE CAPABILITIES. Notwithstanding any other provision of law, the Drug Enforcement Administration and the Federal Bureau of Investigation are authorized on and after October 1, 1988, to pay bonuses up to 25 percent of base pay to employees of the Drug Enforcement Administration and the Federal Bureau of Investigation who possess and make substantial use of one or more languages, other than English, in the performance of their official duties. The Administrator of the Drug Enforcement Administration and the Director of the Federal Bureau of Investigation shall develop such policies as necessary to implement the payment of these bonuses. Subtitle N— Sundry Criminal Provisions SEC. 6451. VIOLENT FELONIES BY JUVENILES. Section 924(e) of title 18, United States Code, is amended— (1) in paragraph (e)(2)(B), by inserting “, or any act of juvenile delinquency involving the use or carrying of a firearm, knife, or destructive device that would be punishable by imprisonment for such term if committed by an adult,” after “one year”; and (2) by adding at the end thereof the following: “(C) the term ‘conviction’ includes a finding that a person has committed an act of juvenile delinquency involving a violent felony,”. SEC. 6452. LIFE IN PRISON FOR THREE-TIME DRUG OFFENDER. (a) Penalty for Third Offense.— Section 401(b)(1)(A) of the Controlled Substances Act (21 U.S.C. 841(b)(1)(A)) is amended— (1) in the sentence beginning “If any person commits” by striking “one or more prior convictions” through “have become final” and inserting “a prior conviction for a felony drug offense has become final”; and (2) adding after such sentence the following: “If any person commits a violation of this subparagraph or of section 405, 405A, or 405B after two or more prior convictions for a felony drug offense have become final, such person shall be sentenced to a mandatory term of life imprisonment without release and fined in accordance with the preceding sentence. For purposes of this subparagraph, the term ‘felony drug offense’ means an offense that is a felony under any provision of this title or any other Federal law that prohibits or restricts conduct relating to narcotic drugs, marihuana, or depressant or stimulant substances or a felony under any law of a State or a foreign country that prohibits or restricts conduct relating to narcotic drugs, marihuana, or depressant or stimulant substances.”. (b) Conforming Amendments.— (1) Sections 405(b), 405A(b) and 405B(c) of the Controlled Substances Act (21 U.S.C. 845(b), 845a(b), and 845b(c)) are amended— (A) by striking “a prior conviction or convictions” and inserting “a prior conviction”, and (B) by inserting at the end thereof the following: “Penalties for third and subsequent convictions shall be governed by section 401(b)(1)(A).”. (2) Section 405(b) of the Controlled Substances Act (21 U.S.C. 845(b)) is amended by striking “or subsequent” from the caption. SEC. 6453. PENALTIES FOR IMPORTATION BY AIRCRAFT AND OTHER VESSELS. (a) In General.— Pursuant to its authority under section 994(p) of title 28, United States Code, and section 21 of the Sentencing Act of 1987, the United States Sentencing Commission shall promulgate guidelines, or shall amend existing guidelines, to provide that a defendant convicted of violating section 1010(a) of the Controlled Substances Import and Export Act (21 U.S.C. 960(a)) under circumstances in which— (1) an aircraft other than a regularly scheduled commercial air carrier was used to import the controlled substance; or (2) the defendant acted as a pilot, copilot, captain, navigator, flight officer, or any other operation officer aboard any craft or vessel carrying a controlled substance, shall be assigned an offense level under chapter 2 of the sentencing guidelines that is— (A) two levels greater than the level that would have been assigned had the offense not been committed under circumstances set forth in (A) or (B) above; and (B) in no event less than level 26. (b) Effect of Amendment.— If the sentencing guidelines are amended after the effective date of this section, the Sentencing Commission shall implement the instruction set forth in subsection (a) so as to achieve a comparable result. SEC. 6454. ENHANCED PENALTIES FOR OFFENSES INVOLVING CHILDREN. (a) In General.— Pursuant to its authority under section 994(p) of title 28, United States Code, and section 21 of the Sentencing Act of 1987, the United States Sentencing Commission shall promulgate guidelines, or shall amend existing guidelines, to provide that a defendant convicted of violating sections 405, 405A, or 405B of the Controlled Substances Act (21 U.S.C. 845, 845a or 845b) involving a person under 18 years of age shall be assigned an offense level under chapter 2 of the sentencing guidelines that is— (1) two levels greater than the level that would have been assigned for the underlying controlled substance offense; and (2) in no event less than level 26. (b) Effects of Amendment.— If the sentencing guidelines are amended after the effective date of this section, the Sentencing Commission shall implement the instruction set forth in subsection (a) so as to achieve a comparable result. (c) Multiple Enhancements.— The guidelines referred to in subsection (a), as promulgated or amended under such subsection, shall provide that an offense that could be subject to multiple enhancements pursuant to such subsection is subject to not more than one such enhancement. SEC. 6455. EXCEPTION TO MANDATORY MINIMUM PENALTY FOR FIRST OFFENSE. Section 405(a) of the Controlled Substances Act (21 U.S.C. 845(a)) is amended by inserting at the end the following: “The mandatory minimum sentencing provisions of this subsection shall not apply to offenses involving 5 grams or less of marihuana.”. SEC. 6456. ELIMINATION OF EXCEPTION TO MANDATORY MINIMUM FOR SECOND OFFENSES. Section 405(b) of the Controlled Substances Act (21 U.S.C. 845(b)) is amended by striking “The mandatory minimum sentencing provisions of this paragraph shall not apply to offenses involving 5 grams or less of marihuana.”. SEC. 6457. POSSESSION WITH INTENT TO DISTRIBUTE WITHIN 1,000 FEET OF A SCHOOLYARD. Sections 405A (a) and (b) of the Controlled Substances Act (21 U.S.C. 845a (a) and (b)) are amended by inserting “, possessing with intent to distribute,” after “distributing”. SEC. 6458. PLAYGROUNDS, YOUTH CENTERS, SWIMMING POOLS AND VIDEO ARCADES. (a) Sections 405A (a) and (b) of the Controlled Substances Act (21 U.S.C. 845a (a) and (b)) are amended by inserting “, or within 100 feet of a playground, public or private youth center, public swimming pool, or video arcade facility,” after “university”. (b) Section 405A of the Controlled Substances Act (21 U.S.C. 845a) is amended by adding at the end thereof the following subsection: “(d) For the purposes of this section— “(1) The term ‘playground’ means any outdoor facility (including any parking lot appurtenant thereto) intended for recreation, open to the public, and with any portion thereof containing three or more separate apparatus intended for the recreation of children including, but not limited to, sliding boards, swingsets, and teeterboards. “(2) The term ‘youth center’ means any recreational facility and/or gymnasium (including any parking lot appurtenant thereto), intended primarily for use by persons under 18 years of age, which regularly provides athletic, civic, or cultural activities. “(3) The term ‘video arcade facility’ means any facility, legally accessible to persons under 18 years of age, intended primarily for the use of pinball and video machines for amusement containing a minimum of ten pinball and/or video machines. “(4) The term ‘swimming pool’ includes any parking lot appurtenant thereto.”. SEC. 6459. APPLICATION OF MANDATORY MINIMUM PENALTIES TO PURCHASE OF CONTROLLED SUBSTANCES FROM MINORS. Section 405b(a) of the Controlled Substances Act (21 U.S.C. 845b(a)) is amended by— (1) striking “or” after the semicolon in paragraph (1); (2) striking the period at the end of paragraph (2) and inserting “; or”; and (3) adding at the end thereof the following: “(3) receive a controlled substance from a person under 18 years of age, other than an immediate family member, in violation of this title or title III.”. SEC. 6460. ENHANCED PENALTIES FOR USE OF CERTAIN WEAPONS IN CONNECTION WITH A CRIME OF VIOLENCE OR DRUG TRAFFICKING CRIME. Subsection (c)(1) of section 924 of title 18, United States Code, is amended— (1) in the first sentence, by striking “ten years” and inserting “thirty years”; and (2) in the second sentence— (A) by striking “ten years” and inserting “twenty years”; and (B) by striking “20 years” and inserting “life imprisonment without release”. SEC. 6461. INCLUSION OF FEDERAL FIREARMS VIOLATIONS AS PREDICATE WIRETAP OFFENSES. Section 2516(1) of title 18, United States Code, is amended by adding at the end thereof the following: “(m) any felony violation of sections 922 and 924 of title 18, United States Code (relating to firearms); and “(n) any violation of section 5861 of the Internal Revenue Code of 1986 (relating to firearms).”. SEC. 6462. INCREASED PENALTIES FOR CERTAIN FIREARMS OFFENSES. Section 924(a) of title 18, United States Code, is amended by— (1) inserting “or 3” after “paragraph 2” in paragraph (1); (2) striking out “(g), (i), (j),” in subparagraph (a)(1)(B); (3) redesignating subsection (a)(2) as subsection (a)(3); and (4) inserting a new subsection (a)(2) to read as follows: “(2) Whoever knowingly violates subsections (d), (g), (h), (i), (j), or (o) of section 922 shall be fined as provided in this title, imprisoned not more than 10 years or both.”. SEC. 6463. MONEY LAUNDERING FORFEITURES. (a) Civil Forfeiture.— Section 981(a)(1) of title 18, United States Code, is amended— (1) by striking out subparagraph (A) and inserting in lieu thereof the following: “(A) Any property, real or personal, involved in a transaction or attempted transaction in violation of section 5313(a) or 5324 of title 31, or of section 1956 or 1957 of this title, or any property traceable to such property. However, no property shall be seized or forfeited in the case of a violation of section 5313(a) of title 31 by a domestic financial institution examined by a Federal bank supervisory agency or a financial institution regulated by the Securities and Exchange Commission or a partner, director, or employee thereof.”; and (2) by striking out subparagraph (C). (b) Conforming Amendment.— Section 981(b) of title 18, United States Code, is amended by striking out “involved in a violation of section 1956 or 1957 of this title investigated by the Secretary of the Treasury, and any property subject to forfeiture under subsection (a)(1)(C) of this section” and inserting in lieu thereof “involved in a violation of section 5313(a) or 5324 of title 31 or of section 1956 or 1957 of this title investigated by the Secretary of the Treasury”. (c) Criminal Forfeiture.— Section 982(a) of title 18, United States Code, is amended to read as follows: “(a) The court, in imposing sentence on a person convicted of an offense in violation of section 5313(a) or 5324 of title 31, or of section 1956 or 1957 of this title, shall order that the person forfeit to the United States any property, real or personal, involved in such offense, or any property traceable to such property. However, no property shall be seized or forfeited in the case of a violation of section 5313(a) of title 31 by a domestic financial institution examined by a Federal bank supervisory agency or a financial institution regulated by the Securities and Exchange Commission or a partner, director, or employee thereof.”. SEC. 6464. FORFEITURE OF SUBSTITUTE ASSETS FOR MONEY LAUNDERING OFFENSE. Section 982(b) of title 18, United States Code, is amended— (1) by striking “(o)” both places it appears, and inserting “(p)” in lieu thereof; and (2) by adding at the end the following: “However, the substitution of assets provisions of subsection 413(p) shall not be used to order a defendant to forfeit assets in place of the actual property laundered where such defendant acted merely as an intermediary who handled but did not retain the property in the course of the money laundering offense.”. SEC. 6465. UNDERCOVER “STING” OPERATIONS IN MONEY LAUNDERING CASES. Section 1956(a) of title 18, United States Code, is amended by inserting after paragraph (a)(2) the following new paragraph: “(3) Whoever, with the intent— “(A) to promote the carrying on of specified unlawful activity; “(B) to conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity; or “(C) to avoid a transaction reporting requirement under State or Federal law, conducts or attempts to conduct a financial transaction involving property represented by a law enforcement officer to be the proceeds of specified unlawful activity, or property used to conduct or facilitate specified unlawful activity, shall be fined under this title or imprisoned for not more than 20 years, or both. For purposes of this Paragraph, the term ‘represented’ means any representation made by a law enforcement officer or by another person at the direction of, or with the approval of, a Federal official authorized to investigate or prosecute violations of this section.”. SEC. 6466. SPECIFIED UNLAWFUL ACTIVITY. Section 1956(c)(7)(D) of title 18, United States Code, is amended by— (1) inserting “section 542 (relating to entry of goods by means of false statements),” after “securities of States and private entities),”; (2) inserting “section 549 (relating to removing goods from Customs custody),” after “smuggling goods into the United States),”; and (3) inserting “section 2319 (relating to copyright infringement), section 310 of the Controlled Substances Act (21 U.S.C. 830) (relating to precursor and essential chemicals), section 590 of the Tariff Act of 1930 (19 U.S.C. 1590) (relating to aviation smuggling), section 1822 of the Mail Order Drug Paraphernalia Control Act (100 Stat. 3207–51; 21 U.S.C. 857) (relating to transportation of drug paraphenalia),” after “postal robbery and theft) of this title,”. SEC. 6467. MINORS CONVICTED OF DRUG TRAFFICKING. (a) Delinquency Proceedings.— Section 5032 of title 18, United States Code, is amended— (1) in the first undesignated paragraph, by striking out “section 841, 952(a), 955, or 959 of title 21,” and inserting in lieu thereof “section 401 of the Controlled Substances Act (21 U.S.C 841), or section 1002(a), 1003, 1005, 1009, or 1010(b) (1), (2), or (3) of the Controlled Substances Import and Export Act (21 U.S.C. 952(a), 953, 955, 959, 960(b) (1), (2), (3)), or section 922(p) of this title,”; and (2) in the fourth undesignated paragraph— (A) by striking out “section 841, 952(a), 955, or 959 of title 21,” and inserting in lieu thereof “section 401 of the Controlled Substances Act (21 U.S.C. 841), or section 1002(a), 1005, or 1009 of the Controlled Substances Import and Export Act (21 U.S.C. 952(a), 955, 959),”; and (B) by inserting after “2275 of this title,” the following: “subsection (b)(1) (A), (B), or (C), (d), or (e) of section 401 of the Controlled Substances Act, or section 1002(a), 1003, 1009, or 1010(b) (1), (2), or (3) of the Controlled Substances Import and Export Act (21 U.S.C. 952(a), 953, 959, 960(b) (1), (2), (3)),”. (b) Surrender to State Authorities.— The first undesignated paragraph of section 5001 of title 18, United States Code, is amended by inserting before the period at the end thereof the following: “, unless such surrender is precluded under section 5032 of this title”. SEC. 6468. DRUG OFFENSES WITHIN FEDERAL PRISONS. (a) Twenty Year Maximum Penalty.— Section 1791(b) of title 18, United States Code, is amended— (1) by redesignating paragraphs (1) through (4) as (2) through (5), respectively; (2) by inserting before paragraph (2), as so redesignated, the following new paragraph (1): “(1) imprisonment for not more than 20 years, or both, if the object is specified in subsection (d)(1)(C) of this section;”; and (3) in paragraph (3), as so redesignated, by striking “or (c)(1)(C)”. (b) Consecutive Sentences.— Section 1791 of title 18, United States Code, is further amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection (c): “(c) Any punishment imposed under subsection (b) for a violation of this section by an inmate of a prison shall be consecutive to the sentence being served by such inmate at the time the inmate commits such violation.”. (c) Pursuant to its authority under section 994(p) of title 28, United States Code, and section 21 of the Sentencing Act of 1987, the United States Sentencing Commission shall promulgate guidelines, or shall amend existing guidelines, to provide that a defendant convicted of violating section 1791(a)(1) of title 18, United States Code, and punishable under section 1791(b)(1) of that title as so redesignated, shall be assigned an offense level under chapter 2 of the sentencing guidelines that is— (1) two levels greater than the level that would have been assigned had the offense not been committed in prison; and (2) in no event less than level 26. (d) If the sentencing guidelines are amended after the effective date of this section, the Sentencing Commission shall implement the instruction set forth in subsection (c) so as to achieve a comparable result. SEC. 6469. AUTHORIZATION OF POSTAL SERVICE TO INVESTIGATE MONEY LAUNDERING. (a) Jurisdiction.— (1) Section 1956 of title 18, United States Code, is amended by striking all that follows “appropriate” in subsection (e) and inserting the following: “and, with respect to offenses over which the United States Postal Service has jurisdiction, by the Postal Service. Such authority of the Secretary of the Treasury and the Postal Service shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury, the Postal Service, and the Attorney General.” (2) Section 1957 of title 18, United States Code, is amended by striking all that follows “appropriate” in subsection (e) and inserting the following: “and, with respect to offenses over which the United States Postal Service has jurisdiction, by the Postal Service. Such authority of the Secretary of the Treasury and the Postal Service shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury, the Postal Service, and the Attorney General.”. (b) Conforming Amendments.— Section 981 of title 18, United States Code, is amended by— (1) inserting “or the Postal Service” in subsection (b) following “Secretary of the Treasury” the first two times it appears; (2) striking “the Attorney General or the Secretary of the Treasury” in subsections (b)(2) and (c) through (e) and inserting “the Attorney General, the Secretary of the Treasury, or the Postal Service”; (3) adding at the end of subsection (d) the following: “The Attorney General shall have sole responsibility for disposing of petitions for remission or mitigation with respect to property involved in a judicial forfeiture proceeding”; and (4) adding at the end of subsection (e) the following: “The authority granted to the Secretary of the Treasury and the Postal Service pursuant to this subsection shall apply only to property that has been administratively forfeited.”. (c) Powers of the Secretary.— Section 5318(a)(1) of title 31, United States Code, is amended by inserting “or the Postal Inspection Service” after “supervising agency”. SEC. 6470. CONTROLLED SUBSTANCES AND RELATED AMENDMENTS. (a) Attempt and Conspiracy Amendments.— Section 406 of the Controlled Substance Act (21 U.S.C. 846) and section 1013 of the Controlled Substances Import and Export Act (21 US.C. 963) are amended by striking “is punishable” and all that follows through “punishment” and inserting “shall be subject to the same penalties as those”. (b) Clarifying Amendments Relating to Forfeiture of Proceeds of a Foreign Drug Offense.— Subparagraph (B) of section 981(a)(1) of title 18, United States Code, is amended by— (1) inserting “, real or personal,” after “property”; (2) striking “which represents the proceeds of” and inserting “constituting, derived from, or traceable to, any proceeds obtained directly or indirectly from”; (3) striking “or activity” the first place it appears; (4) inserting “under the laws of the United States” after “punishable” the second place it appears; and (5) inserting “constituting the offense against the foreign nation” after “such act or activity”. (c) Clarification of Controlled Substance Analogue Provision.— Section 203 of the Controlled Substances Act (21 U.S.C. 813) is amended by striking “this title and title III” and inserting “any Federal law”. (d) Correction of Reference Relating to Mandatory Prison Terms for Juvenile Drug Trafficking.— Section 405B(e) of the Controlled Substances Act (21 U.S.C. 845b(e)) is amended by striking “required by section 401(b)”. (e) Correction of Typographical Error.— Section 981(a)(2) of title 18, United States Code, is amended by striking “emission” and inserting “omission”. (f) Correction of Reference to Subsection.— Section 981(i)(1) of title 18, United States Code, is amended by striking “subchapter” and inserting “subsection”. (g) Mandatory Minimum Penalty for Trafficking in Substantial Quantity of Methamphetamine.— Subparagraph (A) of section 401(b)(1) of the Controlled Substances Act (21 U.S.C. 841(b)(1)) is amended— (1) by striking “or” at the end of clause (vi); (2) by inserting “or” at the end of clause (vii); and (3) by adding a new clause (viii), as follows: “(viii) 100 grams or more of methamphetamine, its salts, isomers, and salts of its isomers or 100 grams or more of a mixture or substance containing a detectable amount of methamphetamine, its salts, isomers, or salts of its isomers;”. (h) Conforming Amendment.— Subparagraph (B) of section 401(b)(1) of the Controlled Substances Act (21 U.S.C. 841(b)(1)) is amended— (1) by striking “or” at the end of clause (vi); (2) by inserting “or” at the end of clause (vii); and (3) by adding a new clause (viii), as follows: “(viii) 10 grams or more of methamphetamine, its salts, isomers, and salts of its isomers or 100 grams or more of a mixture or substance containing a detectable amount of methamphetamine, its salts, isomers, or salts of its isomers;”. SEC. 6471. MONEY LAUNDERING AMENDMENTS. (a) Insertion of Income Tax Predicate for Money Laundering Offense.— Section 1956(a)(1)(A) of title 18, United States Code, is amended to read as follows: “(A) (i) with the intent to promote the carrying on of specified unlawful activity; or “(ii) with intent to engage in conduct constituting a violation of section 7201 or 7206 of the Internal Revenue Code of 1986; or”. (b) Transmission or Transfer.— Section 1956(a)(2) of title 18, United States Code, is amended by striking “transports or attempts to transport” and inserting “transports, transmits, or transfers, or attempts to transport, transmit, or transfer”. (c) Clarification of Scope of Stay of Civil Forfeiture.— Section 981(g) of title 18, United States Code, is amended by inserting “, Federal, State or local,” after “law”. SEC. 6472. BALLISTIC KNIFE ACT JURISDICTIONAL CLARIFICATIONS. The Ballistic Knife Prohibition Act of 1986 (15 U.S.C. 1245) is amended— (1) by striking “knowingly possesses, manufactures, sells, or imports” and inserting “in or affecting interstate commerce, within any Territory or possession of the United States, within Indian country (as defined in section 1151 of title 18), or within the special maritime and territorial jurisdiction of the United States (as defined in section 7 of title 18), knowingly possesses, manufactures, sells, or imports”; and (2) by striking “or State” before “crime of violence”. SEC. 6473. COMMON CARRIER OPERATION AMENDMENTS. (a) Definitional Refinement.— Section 342 of title 18, United States Code, is amended by striking “drugs” and inserting “any controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802))”. (b) Conformance of Fine Level.— Section 342 of title 18, United States Code, is amended by striking “fined not more than $10,000,” and inserting “fined under this title,”. (c) Limitation and Clarification of Presumptions.— Section 343 of title 18, United States Code, is amended— (1) in paragraph (1) by striking “.10” and inserting “.10 percent” and by striking “conclusively”; and (2) in paragraph (2) by striking “conclusively”. SEC. 6474. EXPLOSIVES OFFENSES AMENDMENTS. (a) Expansion of Offense to Certain Airports and Strengthening of Penalty.— Section 844(g) of title 18, United States Code, is amended— (1) by striking “Whoever” and inserting “(1) Except as provided in paragraph (2), whoever”; (2) by inserting “in an airport that is subject to the regulatory authority of the Federal Aviation Administration, or” after “possesses an explosive”; (3) by inserting “or airport” after “such building”; (4) by striking “not more than one year, or fined not more than $1,000, or both” and inserting “not more than five years, or fined under this title, or both”; and (5) by adding at the end thereof the following: “(2) The provisions of this subsection shall not be applicable to— “(A) the possession of ammunition (as that term is defined in regulations issued pursuant to this chapter) in an airport that is subject to the regulatory authority of the Federal Aviation Administration if such ammunition is either in checked baggage or in a closed container; or “(B) the possession of an explosive in an airport if the packaging and transportation of such explosive is exempt from, or subject to and in accordance with, regulations of the Research and Special Projects Administration for the handling of hazardous materials pursuant to the Hazardous Materials Transportation Act (49 App. U.S.C. 1801, et seq.).”. (b) Strengthening Offense of Using or Carrying an Explosive in Commission of a Federal Felony.— Section 844(h) of title 18, United States Code, is amended— (1) by striking “unlawfully” in paragraph (2); and (2) by striking “shall be sentenced” through the remainder of the subsection and inserting the following: “including a felony which provides for an enhanced punishment if committed by the use of a deadly or dangerous weapon or device shall, in addition to the punishment provided for such felony, be sentenced to imprisonment for five years. In the case of a second or subsequent conviction under this subsection, such person shall be sentenced to imprisonment for ten years. Notwithstanding any other provision of law, the court shall not place on probation or suspend the sentence of any person convicted of a violation of this subsection, nor shall the term of imprisonment imposed under this subsection run concurrently with any other term of imprisonment including that imposed for the felony in which the explosive was used or carried.”. (c) Conforming Definitional Change.— Section 842(d)(5) of title 18, United States Code, is amended to read as follows: “(5) is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)).”. (d) Conforming Definitional Change.— Section 842(i)(3) of title 18, United States Code, is amended to read as follows: “(3) who is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)).”. SEC. 6475. CLARIFICATION OF PROHIBITION OF POSSESSION WITH INTENT TO DISTRIBUTE CONTROLLED SUBSTANCES ON AIRCRAFT. Section 1010(a)(3) of the Controlled Substances Import and Export Act (21 U.S.C. 960(a)(3)) is amended by striking “manufactures or distributes a controlled substance” and inserting “manufactures, possesses with intent to distribute, or distributes a controlled substance”. SEC. 6476. RESTARTING OF SPEEDY TRIAL ACT TIME PERIOD FOR DEFENDANTS WHO ABSCOND ON EVE OF TRIAL. Section 3161 of title 18, United States Code, is amended by adding at the end the following: “(k) (1) If the defendant is absent (as defined by subsection (h)(3)) on the day set for trial, and the defendant’s subsequent appearance before the court on a bench warrant or other process or surrender to the court occurs more than 21 days after the day set for trial, the defendant shall be deemed to have first appeared before a judicial officer of the court in which the information or indictment is pending within the meaning of subsection (c) on the date of the defendant’s subsequent appearance before the court. “(2) If the defendant is absent (as defined by subsection (h)(3)) on the day set for trial, and the defendant’s subsequent appearance before the court on a bench warrant or other process or surrender to the court occurs not more than 21 days after the day set for trial, the time limit required by subsection (c), as extended by subsection (h), shall be further extended by 21 days.”. SEC. 6477. ASSIMILATIVE CRIMES ACT AMENDMENTS. (a) Penalties for Operating a Motor Vehicle While Under the Influence of Drugs or Alcohol.— Section 13 of title 18, United States Code, is amended— (1) by inserting “(a)” before “Whoever”; and (2) by adding at the end the following: “(b) For purposes of subsection (a) of this section, that which may or shall be imposed through judicial or administrative action under the law of a State, territory, possession, or district, for a conviction for operating a motor vehicle under the influence of a drug or alcohol, shall be considered to be a punishment provided by that law. Any limitation on the right or privilege to operate a motor vehicle imposed under this subsection shall apply only to the special maritime and territorial jurisdiction of the United States.”. (b) Implied Consent for Certain Tests.— (1) Chapter 205 of title 18, United States Code, is amended by adding at the end the following: “§ 3117. Implied consent for certain tests “(a) Consent.— Whoever operates a motor vehicle in the special Motor vehicles. maritime and territorial jurisdiction of the United States consents thereby to a chemical test or tests of such person’s blood, breath, or urine, if arrested for any offense arising from such person’s driving while under the influence of a drug or alcohol in such jurisdiction. The test or tests shall be administered upon the request of a police officer having reasonable grounds to believe the person arrested to have been driving a motor vehicle upon the special maritime and territorial jurisdiction of the United States while under the influence of drugs or alcohol in violation of the laws of a State, territory, possession, or district. “(b) Effect of Refusal.— Whoever, having consented to a test or tests by reason of subsection (a), refuses to submit to such a test or tests, after having first been advised of the consequences of such a refusal, shall be denied the privilege of operating a motor vehicle upon the special maritime and territorial jurisdiction of the United States during the period of a year commencing on the date of arrest upon which such test or tests was refused, and such refusal may be admitted into evidence in any case arising from such person’s driving while under the influence of a drug or alcohol in such jurisdiction. Any person who operates a motor vehicle in the special maritime and territorial jurisdiction of the United States after having been denied such privilege under this subsection shall be treated for the purposes of any civil or criminal proceedings arising out of such operation as operating such vehicle without a license to do so.”. (2) The table of sections at the beginning of chapter 205 of title 18, United States Code, is amended by adding at the end the following: “3117. Implied consent for certain tests.”. SEC. 6478. PROTECTION OF FOREIGN OFFICIALS. Section 112(b)(3) of title 18, United States Code, is amended by striking “but outside the District of Columbia”. SEC. 6479. MARIHUANA PLANTS. Section 401(b)(1) of the Controlled Substances Act (21 U.S.C. 841(b)(1)) is amended— (1) in paragraph (A)(vii), by inserting “, or 1,000 or more marihuana plants regardless of weight” after “containing a detectable amount of marihuana”; (2) in paragraph (B)(vii), by inserting “, or 100 or more marihuana plants regardless of weight” after “containing a detectable amount of marihuana”; and (3) in paragraph (D) by striking out “100 or more marihuana plants” and inserting in lieu thereof “50 or more marihuana plants”. SEC. 6480. FINES FOR SIMPLE POSSESSION. Section 404(a) of the Controlled Substances Act (21 U.S.C. 844(a)) is amended— (1) in the second sentence— (A) by striking out “but not more than $5,000”; (B) by striking out “but not more than $10,000”; and (C) by striking out “but not more than $25,000”. SEC. 6481. CONTINUING CRIMINAL ENTERPRISE. (a) Increased Penalties.— Section 408(a) of the Controlled Substances 21 USC 848. Act is amended by— (1) striking “10 years” and inserting “20 years”; and (2) striking “20 years” and inserting “30 years”. (b) Redesignation.— Subsections (d) and (e) of section 408 of the Controlled Substances Act are redesignated as (c) and (d). SEC. 6482. COMMON CARRIER OPERATION UNDER THE INFLUENCE OF ALCOHOL OR DRUGS. (a) Locomotives.— Section 341 of title 18, United States Code, is amended by adding after “means a” the following: “locomotive, a”. (b) Maximum Penalty.— Section 342 of title 18, United States Code, is amended by striking “five” and inserting “fifteen”. (c) Sentencing Guidelines.— (1) Pursuant to its authority under section 994(p) of title 28, United States Code, and section 21 of the Sentencing Act of 1987, the United States Sentencing Commission shall promulgate guidelines, or shall amend existing guidelines, to provide that— (A) a defendant convicted of violating section 342 of title 18, United States Code, under circumstances in which death results, shall be assigned an offense level under chapter 2 of the sentencing guidelines that is not less than level 26; and (B) a defendant convicted of violating section 342 of title 18, United States Code, under circumstances in which serious bodily injury results, shall be assigned an offense level under chapter 2 of the sentencing guidelines that is not less than level 21. (2) If the sentencing guidelines are amended after the effective date of this section, the Sentencing Commission shall implement the instruction set forth in paragraph (1) so as to achieve a comparable result. SEC. 6483. AMENDMENT TO THE FEDERAL RULES OF CRIMINAL PROCEDURE. The Federal Rules of Criminal Procedure are amended by adding after Rule 12.2 the following: “(a) Notice by Defendant; Government Response; Disclosure of Witnesses.— “(1) Defendant’s notice and government’s response.— A defendant intending to claim a defense of actual or believed exercise of public authority on behalf of a law enforcement or Federal intelligence agency at the time of the alleged offense shall, within the time provided for the filing of pretrial motions or at such later time as the court may direct, serve upon the attorney for the Government a written notice of such intention and file a copy of such notice with the clerk. Such notice shall identify the law enforcement or Federal intelligence agency and any member of such agency on behalf of which and the period of time in which the defendant claims the actual or believed exercise of public authority occurred. If the notice identifies a Federal intelligence agency, the copy filed with the clerk shall be under seal. Within ten days after receiving the defendant’s notice, but in no event less than twenty days before the trial, the attorney for the Government shall serve upon the defendant or the defendant’s attorney a written response which shall admit or deny that the defendant exercised the public authority identified in the defendant’s notice. “(2) Disclosure of witnesses.— At the time that the Government serves its response to the notice or thereafter, but in no event less than twenty days before the trial, the attorney for the Government may serve upon the defendant or the defendant’s attorney a written demand for the names and addresses of the witnesses, if any, upon whom the defendant intends to rely in establishing the defense identified in the notice. Within seven days after receiving the Government’s demand, the defendant shall serve upon the attorney for the Government a written statement of the names and addresses of any such witnesses. Within seven days after receiving the defendant’s written statement, the attorney for the Government shall serve upon the defendant or the defendant’s attorney a written statement of the names and addresses of the witnesses, if any, upon whom the Government intends to rely in opposing the defense identified in the notice. “(3) Additional time.— If good cause is shown, the court may allow a party additional time to comply with any obligation imposed by this rule. “(b) Continuing Duty to Disclose.— If, prior to or during trial, a party learns of any additional witness whose identity, if known, should have been included in the written statement furnished under subdivision (a)(2) of this rule, that party shall promptly notify in writing the other party or the other party’s attorney of the name and address of any such witness. “(c) Failure to Comply.— If a party fails to comply with the requirements of this rule, the court may exclude the testimony of any undisclosed witness offered in support of or in opposition to the defense, or enter such other order as it deems just under the circumstances. This rule shall not limit the right of the defendant to testify. “(d) Protective Procedures Unaffected.— This rule shall be in addition to and shall not supersede the authority of the court to issue appropriate protective orders, or the authority of the court to order that any pleading be filed under seal. “(e) Inadmissibility of Withdrawn Defense Based Upon Public Authority.— Evidence of an intention as to which notice was given under subdivision (a), later withdrawn, is not, in any civil or criminal proceeding, admissible against the person who gave notice of the intention.”. SEC. 6484. WITNESS SERVING SENTENCE ABROAD. (a) In General.— Chapter 223 of title 18, United States Code, is amended by adding at the end thereof the following new section: “§ 3508. Custody and return of foreign witnesses “(a) When the testimony of a person who is serving a sentence, is in pretrial detention, or is otherwise being held in custody, in a foreign country, is needed in a State or Federal criminal proceeding, the Attorney General shall, when he deems it appropriate in the exercise of his discretion, have the authority to request the temporary transfer of that person to the United States for the purposes of giving such testimony, to transport such person to the United States in custody, to maintain the custody of such person while he is in the United States, and to return such person to the foreign country. “(b) Where the transfer to the United States of a person in custody for the purposes of giving testimony is provided for by treaty or convention, by this section, or both, that person shall be returned to the foreign country from which he is transferred. In no event shall the return of such person require any request for extradition or extradition proceedings, or proceedings under the immigration laws. “(c) Where there is a treaty or convention between the United States and the foreign country in which the witness is being held in custody which provides for the transfer, custody and return of such witnesses, the terms and conditions of that treaty shall apply. Where there is no such treaty or convention, the Attorney General may exercise the authority described in paragraph (a) if both the foreign country and the witness give their consent.”. (b) Table of Contents.— The table of contents for chapter 223 of title 18, United States Code, is amended by adding at the end thereof the following new item: “3508. Custody and return of foreign witnesses.”. SEC. 6485. CLARIFICATIONS REGARDING DRUG PARAPHERNALIA. Section 1822 of the Anti-Drug Abuse Act of 1986 (Public Law 99–570; 21 U.S.C. 857) is amended— (1) in subsection (d), by striking out “in violation of the Controlled Substances Act” and inserting “, possession of which is unlawful under the Controlled Substances Act”; and (2) in subsection (f)(2) by striking out “primarily intended for use with” and inserting “traditionally intended for use with”. SEC. 6486. CIVIL PENALTY FOR POSSESSION OF SMALL AMOUNTS OF CERTAIN CONTROLLED SUBSTANCES. (a) In General.— Any individual who knowingly possesses a controlled substance that is listed in section 401(b)(1)(A) of the Controlled Substances Act (21 U.S.C. 841(b)(1)(A)) in violation of section 404 of that Act (21 U.S.C. 841(b)(1)(A)) in an amount that, as specified by regulation of the Attorney General, is a personal use amount shall be liable to the United States for a civil penalty in an amount not to exceed $10,000 for each such violation. (b) Income and Net Assets.— The income and net assets of an individual shall not be relevant to the determination whether to assess a civil penalty under this section or to prosecute the individual criminally. However, in determining the amount of a penalty under this section, the income and net assets of an individual shall be considered. (c) Prior Conviction.— A civil penalty may not be assessed under this section if the individual previously was convicted of a Federal or State offense relating to a controlled substance as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802). (d) Limitation on Number of Assessments.— A civil penalty may not be assessed on an individual under this section on more than two separate occasions. (e) Assessment.— A civil penalty under this section may be assessed by the Attorney General only by an order made on the record after opportunity for a hearing in accordance with section 554 of title 5, United States Code. The Attorney General shall provide written notice to the individual who is the subject of the proposed order informing the individual of the opportunity to receive such a hearing with respect to the proposed order. The hearing may be held only if the individual makes a request for the hearing before the expiration of the 30-day period beginning on the date such notice is issued. (f) Compromise.— The Attorney General may compromise, modify, or remit, with or without conditions, any civil penalty imposed under this section. (g) Judicial Review.— If the Attorney General issues an order pursuant to subsection (e) after a hearing described in such subsection, the individual who is the subject of the order may, before the expiration of the 30-day period beginning on the date the order is issued, bring a civil action in the appropriate district court of the United States. In such action, the law and the facts of the violation and the assessment of the civil penalty shall be determined de novo, and shall include the right of a trial by jury, the right to counsel, and the right to confront witnesses. The facts of the violation shall be proved beyond a reasonable doubt. (h) Civil Action.— If an individual does not request a hearing pursuant to subsection (e) and the Attorney General issues an order pursuant to such subsection, or if an individual does not under subsection (g) seek judicial review of such an order, the Attorney General may commence a civil action in any appropriate district court of the United States for the purpose of recovering the amount assessed and an amount representing interest at a rate computed in accordance with section 1961 of title 28, United States Code. Such interest shall accrue from the expiration of the 30-day period described in subsection (g). In such an action, the decision of the Attorney General to issue the order, and the amount of the penalty assessed by the Attorney General, shall not be subject to review. (i) Limitation.— The Attorney General may not under this subsection commence proceeding against an individual after the expiration of the 5-year period beginning on the date on which the individual allegedly violated subsection (a). (j) Expungement Procedures.— The Attorney General shall dismiss the proceedings under this section against an individual upon application of such individual at any time after the expiration of 3 years if— (1) the individual has not previously been assessed a civil penalty under this section; (2) the individual has paid the assessment; (3) the individual has complied with any conditions imposed by the Attorney General; (4) the individual has not been convicted of a Federal or State offense relating to a controlled substance as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802); and (5) the individual agrees to submit to a drug test, and such test shows the individual to be drug free. Records. Classified information. A nonpublic record of a disposition under this subsection shall be Classified retained by the Department of Justice solely for the purpose of information. determining in any subsequent proceeding whether the person qualified for a civil penalty or expungement under this section. If a record is expunged under this subsection, an individual concerning whom such an expungement has been made shall not be held thereafter under any provision of law to be guilty of perjury, false swearing, or making a false statement by reason of his failure to recite or acknowledge a proceeding under this section or the results thereof in response to an inquiry made of him for any purpose. SEC. 6487. PROTECTION OF FORMER FEDERAL OFFICIALS AND MEMBERS OF THE FAMILY OF FORMER FEDERAL OFFICIALS. (a) Former Federal Officials.— Section 111 of title 18, United States Code, is amended to read as follows: “§ 111. Assaulting, resisting, or impeding certain officers or employees “(a) In General.— Whoever— “(1) forcibly assaults, resists, opposes, impedes, intimidates, or interferes with any person designated in section 1114 of this title while engaged in or on account of the performance of official duties; or “(2) forcibly assaults or intimidates any person who formerly served as a person designated in section 1114 on account of the performance of official duties during such person’s term of service, shall be fined under this title or imprisoned not more than three years, or both. “(b) Enhanced Penalty.— Whoever, in the commission of any acts described in subsection (a), uses a deadly or dangerous weapon, shall be fined under this title or imprisoned not more than ten years, or both.”. (f) Family Members of Former Federal Officials.— Section 115(a) of title 18, United States Code, is amended to read as follows: “(a) (1) Whoever— “(A) assaults, kidnaps, or murders, or attempts to kidnap or murder, or threatens to assault, kidnap or murder a member of the immediate family of a United States official, a United States judge, a Federal law enforcement officer, or an official whose killing would be a crime under section 1114 of this title; or “(B) threatens to assault, kidnap, or murder, a United States official, a United States judge, a Federal law enforcement officer, or an official whose killing would be a crime under such section. with intent to impede, intimidate, or interfere with such official, judge, or law enforcement officer while engaged in the performance of official duties, or with intent to retaliate against such official, judge, or law enforcement officer on account of the performance of official duties, shall be punished as provided in subsection (b). “(2) Whoever assaults, kidnaps, or murders, or attempts to kidnap or murder a member of the immediate family of any person who formerly served as a person designated in paragraph (1), with intent to retaliate against such person on account of the performance of official duties during the term of service of such person, shall be punished as provided in subsection (b).

4. 1992

   AnnunzioWylie Anti-Money Laundering Act

   Pub. L. 102–550 title XV · 106 Stat. 3672

   1. Substituted · 18 U.S.C. § 1957(f)(1)

      Pub. L. 102–550 substituted “section 1956 of this title” for “section 5312 of title 31”

   2. Inserted · 18 U.S.C. § 1957(f)(1)

      Pub. L. 102–550 inserted “, including any transaction that would be a financial transaction under section 1956(c)(4)(B) of this title,” before “but such term does not include”

   Source evidence

   Code amendment note
   Subsec. (f)(1). Pub. L. 102–550 substituted “section 1956 of this title” for “section 5312 of title 31” and inserted “, including any transaction that would be a financial transaction under section 1956(c)(4)(B) of this title,” before “but such term does not include”.

   Enacted provision · exact public law
   TITLE XV— ANNUNZIOWYLIE ANTI- MONEY LAUNDERING ACT SEC. 1500. SHORT TITLE. This title may be cited as the “AnnunzioWylie Anti-Money Laundering Act”. Subtitle A— Termination of Charters, Insurance, and Offices SEC. 1501. AUTHORITY TO APPOINT CONSERVATOR FOR DEPOSITORY INSTITUTIONS CONVICTED OF MONEY LAUNDERING. (a) Insured Depository Institutions.— Section 11(c)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1821(c)(5)) is amended by adding at the end the following new subparagraph: “(M) Money laundering offense.— The Attorney General notifies the appropriate Federal banking agency or the Corporation in writing that the insured depository institution has been found guilty of a criminal offense under section 1956 or 1957 of title 18, United States Code, or section 5322 of title 31, United States Code.”. (b) Insured Credit Unions.— Section 2Q(h)(1) of the Federal Credit Union Act (12 U.S.C. 1786(h)(1)) is amended— (1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and (2) by inserting after subparagraph (B) the following new subparagraph: “(C) the Attorney General notifies the Board in writing that an insured credit union has been found guilty of a criminal offense under section 1956 or 1957 of title 18, United States Code, or section 5322 of title 31, United States Code;”. (c) Effective Date.— The amendments made by this section 12 USC 1786 note. shall take effect on December 20, 1992. SEC. 1502. REVOKING CHARTER OF FEDERAL DEPOSITORY INSTITUTIONS CONVICTED OF MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES. (a) National Banks.— Section 5239 of the Revised Statutes (12 U.S.C. 93) is amended by adding at the end the following: “(c) Forfeiture of Franchise for Money Laundering or Cash Transaction Reporting Offenses.— “(1) In general.— “(A) Conviction of title is offenses.— “(i) Duty to notify.— If a national bank, a Federal branch, or Federal agency has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Comptroller of the Currency a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision. “(ii) Notice of termination; pretermination hearing.— After receiving written notification from the Attorney General of such a conviction, the Comptroller of the Currency shall issue to the national bank, Federal branch, or Federal agency a notice of the Comptroller’s intention to terminate all rights, privileges, and franchises of the bank, Federal branch, or Federal agency and schedule a pretermination hearing. “(B) Conviction of title 3i offenses.— If a national bank, a Federal branch, or a Federal agency is convicted of any criminal offense under section 5322 of title 31, United States Code, after receiving written notification from the Attorney General, the Comptroller of the Currency may issue to the national bank, Federal branch, or Federal agency a notice of the Comptroller’s intention to terminate all rights, privileges, and franchises of the bank, Federal branch, or Federal agency and schedule a pretermination hearing. “(C) Judicial review.— Section 8(h) of the Federal Deposit Insurance Act shall apply to any proceeding under this subsection. “(2) Factors to be considered.— In determining whether a franchise shall be forfeited under paragraph (1), the Comptroller of the Currency shall take into account the following factors: “(A) The extent to which directors or senior executive officers of the national bank, Federal branch, or Federal agency knew of, or were involved in, the commission of the money laundering offense of which the bank, Federal branch, or Federal agency was found guilty. “(B) The extent to which the offense occurred despite the existence of policies and procedures within the national bank, Federal branch, or Federal agency which were designed to prevent the occurrence of any such offense. “(C) The extent to which the national bank, Federal branch, or Federal agency has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the bank, Federal branch, or Federal agency was found guilty. “(D) The extent to which the national bank, Federal branch, or Federal agency has implemented additional internal controls (since the commission of the offense of which the bank, Federal branch, or Federal agency was found guilty) to prevent the occurrence of any other money laundering offense. “(E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the forfeiture of the franchise. “(3) Successor liability.— This subsection shall not apply to a successor to the interests of, or a person who acquires, a bank, a Federal branch, or a Federal agency that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection. “(4) Definition.— The term ‘senior executive officer’ has the same meaning as in regulations prescribed under section 32(f) of the Federal Deposit Insurance Act.”. (b) Federal Savings Associations.— Section 6 of the Home Owners’ Loan Act (12 U.S.C. 1464) is amended by adding at the end the following: “(w) Forfeiture of Franchise for Money Laundering or Cash Transaction Reporting Offenses.— “(1) In general.— “(A) Conviction of title is offense.— “(I) Duty to notify.— If a Federal savings association has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Director a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision. “(II) Notice of termination; pretermination hearing.— After receiving written notification from the Attorney General of such a conviction, the Director shall issue to the savings association a notice of the Director’s intention to terminate all rights, privileges, and franchises of the savings association and schedule a pretermination hearing. “(B) Conviction of title 31 offenses.— If a Federal savings association is convicted of any criminal offense under section 5322 of title 31, United States Code, after receiving written notification from the Attorney General, the Director may issue to the sayings association a notice of the Director’s intention to terminate all rights, privileges, and franchises of the savings association and schedule a pretermination hearing. “(C) Judicial review.— Subsection (d)(1)(B)(vii) shall apply to any proceeding under this subsection. “(2) Factors to be considered.— In determining whether a franchise shall be forfeited under paragraph (1), the Director shall take into account the following factors: “(A) The extent to which directors or senior executive officers of the savings association knew of, were involved in, the commission of the money laundering offense of which the association was found guilty. “(B) The extent to which the offense occurred despite the existence of policies and procedures within the savings association which were designed to prevent the occurrence of any such offense. “(C) The extent to which the savings association has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the association was found guilty. “(D) The extent to which the savings association has implemented additional internal controls (since the commission of the offense of which the savings association was found guilty) to prevent the occurrence of any other money laundering offense. “(E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the forfeiture of the franchise. “(3) Successor liability.— This subsection shall not apply to a successor to the interests of, or a person who acquires, a savings association that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection. “(4) Definition.— The term ‘senior executive officer’ has the same meaning as in regulations prescribed under section 32(f) of the Federal Deposit Insurance Act.”. (c) Federal Credit Unions.— Title I of the Federal Credit Union Act (12 U.S.C. 1752 et seq.) is amended by adding at the and the following new section: ‘SEC. 131. FORFEITURE OF ORGANIZATION CERTIFICATE FOR MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES. “(a) Forfeiture of Franchise for Money Laundering or Dash Transaction Reporting Offenses.— “(1) Conviction of title is offenses.— “(A) Duty to notify.— If a credit union has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Board a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision. “(B) Notice of termination; pretermination hearing.— After receiving written notification from the Attorney General of such a conviction, the Board shall issue to such credit union a notice of its intention to terminate all rights, privileges, and franchises of the credit union and schedule a pretermination hearing. “(2) Conviction of title 31 offenses.— If a credit union is convicted of any criminal offense under section 5322 of title 31, United States Code, after receiving written notification from the Attorney General, the Board may issue to such credit union a notice of its intention to terminate all rights, privileges, and franchises of the credit union and schedule a pretermination hearing. “(3) Judicial review.— Section 206(j) shall apply to any proceeding under this section. “(b) Factors To Be Considered.— In determining whether a franchise shall be forfeited under subsection (a), the Board shall take into account the following factors: “(1) The extent to which directors, committee members, or senior executive officers (as defined by the Board in regulations which the Board shall prescribe) of the credit union knew of, or were involved in, the commission of the money laundering offense of which the credit union was found guilty. “(2) The extent to which the offense occurred despite the existence of policies and procedures within the credit union which were designed to prevent the occurrence of any such offense. “(3) The extent to which the credit union has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the credit union was found guilty. “(4) The extent to which the credit union has implemented additional internal controls (since the commission of the offense of which the credit union was found guilty) to prevent the occurrence of any other money laundering offense. “(5) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the forfeiture of the franchise. “(c) Successor Liability.— This section shall not apply to a successor to the interests of, or a person who acquires, a credit union that violated a provision of law described in subsection (a), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this section or regulations prescribed under this section.”. SEC. 1503. TERMINATING INSURANCE OF STATE DEPOSITORY INSTITUTIONS CONVICTED OF MONEY LAUNDERING OR CASH TRANSACTION REPORTING OFFENSES. (a) State Banks and Savings Associations.— (1) In general.— Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end the following new subsection: “(w) Termination of Insurance for Money Laundering or Cash Transaction Reporting Offenses.— “(1) In general.— “(A) Conviction of title is offenses.— “(i) Duty to notify.— If an insured State depository institution has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Corporation a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision. “(ii) Notice of termination; pretermination hearing.— After receipt of written notification from the Attorney General by the Corporation of such a conviction, the Board of Directors shall issue to the insured depository institution a notice of its intention to terminate the insured status of the insured depository institution and schedule a hearing on the matter, which shall be conducted in all respects as a termination hearing pursuant to paragraphs (3) through (5) of subsection (a). “(B) Conviction of title 31 offenses.— If an insured State depository institution is convicted of any criminal offense under section 5322 of title 31, United States Code, after receipt of written notification from the Attorney General by the Corporation, the Board of Directors may initiate proceedings to terminate the insured status of the insured depository institution in the manner described in subparagraph (A). “(C) Notice to state supervisor.— The Corporation shall simultaneously transmit a copy of any notice issued under this paragraph to the appropriate State financial institutions supervisor. “(2) Factors to be considered.— In determining whether to terminate insurance under paragraph (1), the Board of Directors shall take into account the following factors: “(A) The extent to which directors or senior executive officers of the depository institution knew of, or were involved in, the commission of the money laundering offense of which the institution was found guilty. “(B) The extent to which the offense occurred despite the existence of policies and procedures within the depository institution which were designed to prevent the occurrence of any such offense. “(C) The extent to which the depository institution has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the institution was found guilty. “(D) The extent to which the depository institution has implemented additional internal controls (since the commission of the offense of which the depository institution was found guilty) to prevent the occurrence of any other money laundering offense. “(E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the termination of insurance. “(3) Notice to state banking supervisor and public.— When the order to terminate insured status initiated pursuant to this subsection is final, the Board of Directors shall— “(A) notify the State banking supervisor of any State depository institution described in paragraph (1) and the Office of Thrift Supervision, where appropriate, at least 10 days prior to the effective date of the order of termination of the insured status of such depository institution, including a State branch of a foreign bank; and “(B) publish notice of the termination of the insured Federal Register, publication. status of the depository institution in the Federal Register. “(4) Temporary insurance of previously insured deposits.— Upon termination of the insured status of any State depository institution pursuant to paragraph (1), the deposits of such depository institution shall be treated in accordance with subsection (a)(7). “(5) Successor liability.— This subsection shall not apply to a successor to the interests of, or a person who acquires, an insured depository institution that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection. “(6) Definition.— The term ‘senior executive officer’ has the same meaning as in regulations prescribed under section 32(f) of this Act.”. (2) Technical amendment.— Section 8(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1818(a)(3)) is amended by inserting “of this subsection or subsection (w) ” after “subparagraph (B)”. (b) State Credit Unions.— Section 206 of the Federal Credit Union Act (12 U.S.C. 1786) is amended by adding at the end the following new subsection: “(v) Termination of Insurance for Money Laundering or Cash Transaction Reporting Offenses.— “(1) In general.— “(A) Conviction of title is offenses.— “(i) Duty to notify.— If an insured State credit union has been convicted of any criminal offense under section 1956 or 1957 of title 18, United States Code, the Attorney General shall provide to the Board a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision. “(ii) Notice of termination.— After written notification from the Attorney General to the Board of such a conviction, the Board shall issue to such Insured credit union a notice of its intention to terminate the insured status of the insured credit union and schedule a hearing on the matter, which shall be conducted as a termination hearing pursuant to subsection (b) of this section, except that no period for correction shall apply to a notice issued under this subparagraph. “(B) Conviction of title 31 offenses.— If a credit union is convicted of any criminal offense under section 5322 of title 31, United States Code, after prior written notification from the Attorney General, the Board may initiate proceedings to terminate the insured status of such credit union in the manner described in subparagraph (A). “(C) Notice to state supervisor.— The Board shall simultaneously transmit a copy of any notice under this paragraph to the appropriate State financial institutions supervisor. “(2) Factors to be considered.— In determining whether to terminate insurance under paragraph (1), the Board shall take into account the following factors: “(A) The extent to which directors, committee members, or senior executive officers (as defined by the Board in regulations which the Board shall prescribe) of the credit union knew of, or were involved in, the commission of the money laundering offense of which the credit union was found guilty. “(B) The extent to which the offense occurred despite the existence of policies and procedures within the credit union which were designed to prevent the occurrence of any such offense. “(C) The extent to which the credit union has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the credit union was found guilty. “(D) The extent to which the credit union has implemented additional internal controls (since the commission of the offense of which the credit union was found guilty) to prevent the occurrence of any other money laundering offense. “(E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the termination of insurance. “(3) Notice to state credit union supervisor and public.— When the order to terminate insured status initiated pursuant to this subsection is final, the Board shall— “(A) notify the commission, board, or authority (if any) having supervision of the credit union described in paragraph (1) at least 10 days prior to the effective date of the order of the termination of the insured status of such credit union; and “(B) publish notice of the termination of the insured status of the credit union. “(4) Temporary insurance of previously insured deposits.— Upon termination of the insured status of any State credit union pursuant to paragraph (1), the deposits of such credit union shall be treated in accordance with section 2O6(d)(2). “(5) Successor liability.— This subsection shall not apply to a successor to the interests of, or a person who acquires, an insured credit union that violated a provision of law described in paragraph (1), if the successor succeeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regulations prescribed under this subsection.”. SEC. 1504. REMOVING PARTIES INVOLVED IN CURRENCY REPORTING VIOLATIONS. (a) FDIC-Insured Institutions.— (1) Violation of reporting requirements.— Section 8(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(2)) is amended to read as follows: “(2) Specific violations.— “(A) In general.— Whenever the appropriate Federal banking agency determines that— “(i) an institution-affiliated party has committed a violation of any provision of subchapter II of chapter 53 of title 31, United States Code, and such violation was not inadvertent or unintentional; “(ii) an officer or director of an insured depository institution has knowledge that an institution-affiliated party of the insured depository institution has violated any such provision or any provision of law referred to in subsection (g)(1)(A)(ii); or “(iii) an officer or director of an insured depository institution has committed any violation of the Depository Institution Management Interlocks Act, the agency may serve upon such party, officer, or director a written notice of the agency’s intention to remove such party from office. “(B) Factors to be considered.— In determining whether an officer or director should be removed as a result of the application of subparagraph (A)(ii), the agency shall consider whether the officer or director took appropriate action to stop, or to prevent the recurrence of, a violation described in such subparagraph.”. (2) Certain felony charges.— Section 8(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(g)(1)) is amended to read as follows: “(1) Suspension or prohibition.— “(A) In general.— Whenever any institution-affiliated party is charged in any information, indictment, or com-plaint, with the commission of or participation in— “(i) a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under State or Federal law, or “(ii) a criminal violation of section 1956, 1957, or 1960 of title 18, United States Code, or section 5322 of title 31, United States Code, the appropriate Federal banking agency may, if continued service or participation by such party may pose a threat to the interests of the depository institution’s depositors or may threaten to impair public confidence in the depository institution, by written notice served upon such party, suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of the depository institution. “(B) Provisions applicable to notice.— “(i) Copy.— A copy of any notice under subparagraph (A) shall also be served upon the depository institution. “(ii) Effective period.— A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in such subparagraph is finally disposed of or until terminated by the agency. “(C) Removal or prohibition.— “(i) In general.— If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against an institution-affiliated party in connection with a crime described in subparagraph (A)(i), at such time as such judgment is not subject to further appellate review, the appropriate Federal banking agency may, if continued serv-ice or participation by such party may pose a threat to the interests of the depository institution’s depositors or may threaten to impair public confidence in the depository institution, issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the depository institution without the prior written consent of the appropriate agency. “(ii) Required for certain offenses.— In the case of a judgment of conviction or agreement against an institution-affiliated party in connection with a violation described in subparagraph (A)(ii), the appropriate Federal banking agency shall issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the depository institution without the prior written consent of the appropriate agency. “(D) Provisions applicable to order.— “(i) Copy.— A copy of any order under subparagraph (C) shall also be served upon the depository institution, whereupon the institution-affiliated party who is subject to the order (if a director or an officer) shall cease to be a director or officer of such depository institution. “(ii) Effect of acquittal.— A finding of not guilty or other disposition of the charge shall not preclude the agency from instituting proceedings after such finding or disposition to remove such party from office or to prohibit further participation in depository institution affairs, pursuant to paragraph (1), (2), or (3) of subsection (e) of this section. “(iii) Effective period.— Any notice of suspension or order of removal issued under this paragraph shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (3) unless terminated by the agency.”. (b) Credit Unions.— (1) Violation of reporting requirements.— Section 206(g)(2) of the Federal Credit Union Act (12 U.S.C. 1786(g)(2)) is amended to read as follows: “(2) Specific violations.— “(A) In general.— Whenever the Board determines that— “(i) an institution-affiliated party has committed a violation of any provision of subchapter II of chapter 53 of title 31, United States Code, unless such violation was inadvertent or unintentional; “(ii) an officer or director of an insured credit union has knowledge that an institution-affiliated party of the insured credit union has violated any such provision or any provision of law referred to in subsection (l)(1)(A)(C); or “(iii) an officer or director of an insured credit union has committed any violation of the Depository Institution Management Interlocks Act, the Board may serve upon such party, officer, or director a written notice of the Board’s intention to remove such officer or director from office. “(B) Factors to be considered.— In determining whether an officer or director should be removed as a result of the application of subparagraph (A)(h), the Board shall consider whether the officer or director took appropriate action to stop, or to prevent the recurrence of, a violation described in such subparagraph.”. (2) Certain felony charges.— Section 206(i))(1) of the Federal Credit Union Act (12 U.S.C. 1786(i))(1) is amended to read as follows: “(1) Suspension or prohibition authorized.— “(A) In general.— Whenever any institution-affiliated party is charged in any information, indictment, or com-plaint, with the commission of or participation in— “(i) a crime involving dishonesty or breach of trust which is punishable by imprisonment for a term exceeding one year under State or Federal law, or “(ii) a criminal violation of section 1956, 1957, or 1960 of title 18, United States Code, or section 5322 of title 31, United States Code, the Board may, if continued service or participation by such party may pose a threat to the interests of the credit unions members or may threaten to impair public confidence in the credit union, by written notice served upon such party, suspend such party from office or prohibit such party from further participation in any manner in the conduct of the affairs of the credit union. “(B) Provisions applicable to notice.— “(i) Copy.— A copy of any notice under subparagraph (A) shall also be served upon the credit union. “(ii) Effective period.— A suspension or prohibition under subparagraph (A) shall remain in effect until the information, indictment, or complaint referred to in such subparagraph is finally disposed of or until terminated by the Board. “(C) Removal or prohibition.— “(i) In general.— If a judgment of conviction or an agreement to enter a pretrial diversion or other similar program is entered against an institution-affiliated party in connection with a crime described in subparagraph (A(i), at such time as such judgment is not subject to farther appellate review, we Board may, if continued service or participation by such party may pose a threat to the interests of the credit union–s members or may threaten to impair public confidence in the credit union, issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the credit union without the prior written consent of the Board. “(ii) Required for certain offenses.— In the case of a judgment of conviction or agreement against an institution-affiliated party in connection with a violation described in subparagraph (A)(ii), the Board shall issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the credit union without the prior written consent of the Board. “(D) Provisions applicable to order.— “(i) Copy.— A copy of any order under subparagraph (C) shall also be served upon such credit union, whereupon such party (if a director or an officer) shall cease to be a director or officer of such credit union. “(ii) Effect of acquittal.— A finding of not guilty or other disposition of the charge shall not preclude the Board from instituting proceedings after such finding or disposition to remove such party from office or to prohibit further participation in credit union affairs, pursuant to paragraph (1), (2), or (3) of sub-section (g) of this section. “(iii) Effective period.— Any notice of suspension or order of removal issued under this paragraph shall remain effective and outstanding until the completion of any hearing or appeal authorized under paragraph (3) unless terminated by the Board,”. (c) Attorney General Notice Requirement.— Section 1956 of title 18, United States Code, is amended by adding at the end the following new subsection: “(g) Notice of Conviction of Financial Institutions.— If any financial institution or any officer, director, or employee of any financial institution has been found guilty of an offense under this section, section 1957 or 1960 of this title, or section 5322 of title 31, the Attorney General shall provide written notice of such fact to the appropriate regulatory agency for the financial institution.”. (d) Technical Corrections to Provisions Relating to Money Laundering Enforcement Activities.— (1) Section 5318(a)(1) of title 31, United States Code, is amended— (A) by striking “or the Postal Inspection Service”; and (B) by inserting “United States” before “Postal Service”. (2) Section 5322(a) of title 31, United States Code, is amended by striking “imprisonment” and inserting “imprisoned for”. SEC. 1505. UNAUTHORIZED PARTICIPATION. Section 19(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1829(a)(1) is amended by inserting “or money laundering” after “breach of trust”. SEC. 1506. ACCESS BY STATE FINANCIAL INSTITUTION SUPERVISORS TO CURRENCY TRANSACTIONS REPORTS. Section 5319 of title 31, United States Code, is amended— (1) in the first sentence, by striking “to an agency” and inserting “to an agency, including any State financial institutions supervisory agency,”; and (2) by inserting after the second sentence the following new sentence: “The Secretary may only require reports on the use of such information by any State financial institutions supervisory agency for other than supervisory purposes.”. SEC. 1507. RESTRICTING STATE BRANCHES AND AGENCIES OF FOREIGN RANKS CONVICTED OF MONEY LAUNDERING OFFENSES. Section 7 of the International Banking Act of 1978 (12 U.S.C, 3105) is amended by inserting after subsection (h) the following new subsection: “(i) Proceedings Related to Conviction for Money Laundering Offenses.— “(1) Notice of intention to issue order.— If the Board finds or receives written notice from the Attorney General that— “(A) any foreign bank which operates a State agency, a State branch which is not an insured branch, or a State commercial lending company subsidiary; “(B) any State agency; “(C) any State branch which is not an insured branch; or “(D) any State commercial lending subsidiary^ has been found guilty of any money laundering offense, the Board shall issue a notice to the agency, branch, or subsidiary of the Board’s intention to commence a termination proceeding under subsection (e). “(2) Definitions.— For purposes of this subsection— “(A) Insured branch.— The term ‘insured branch’ has the meaning given such term in section 3(s) of the Federal Deposit Insurance Act. “(B) Money laundering offense defined.— The term ‘money laundering offense’ means any criminal offense under section 1956 or 1957 of title 18, United States Code, or under section 5322 of title 31, United States Code.”. Subtitle B— Nonbank Financial Institutions and General Provisions SEC. 1511. IDENTIFICATION OF FINANCIAL INSTITUTIONS. (a) In General.— Subchapter II of chapter 53 of title 31, United States Code, is amended by inserting after section 5326 the following new section: “§ 5327. Identification of financial institutions “(a) Regulations Required.— The Secretary of the Treasury shall prescribe regulations requiring each depository institution to identify any customer (of the depository institution) which— “(1) is a financial institution described in— “(A) any subparagraph of section 5312(a)(2) other than subparagraphs (A) through (G); or “(B) any regulation under any such subparagraph; and “(2) has any account with the depository institution. “(b) Reports Required.— Each depository institution shall report the names of and other information about financial institution customers required to be identified under subsection (a) to the Secretary at such times and in such manner as the Secretary shall prescribe by regulation. “(c) Reporting Offenses.— No person shall cause or attempt to cause any depository institution to fail to file a report required by this section or to file a report containing a material omission or misstatement of fact. “(d) Availability of Reports.— The Secretary shall provide reports filed under subsection (b) to appropriate State financial institution supervisory agencies for supervisory purposes. “(e) Depository Institution Defined.— For purposes of this section, the term ‘depository institution’ means any financial institution described in subparagraph (A), (B), (C), (D), (E), or (F) of section 5312(a)(2).”. (b) Technical and Conforming Amendment.— Section 5321(a) of title 31, United States Code, is amended by adding at the end the following new paragraph: “(7) Financial institution identification violations.— “(A) Penalty authorized.— The Secretary may impose a civil money penalty on any person who willfully violates any provision of section 5327 or any regulation prescribed under such section. “(B) Maximum amount limitation.— The amount of any civil money penalty imposed under subparagraph (A) shall not exceed $10,000 per day for each day during which a report remains unfiled or a report containing a material omission or misstatement of fact remains uncorrected.”. “(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 5326 the following new item: “5327. Identification of financial institutions.”. (d) Effective Date of Regulations.— The initial final regulations 31 USC 5327 note. prescribed pursuant to section 5327 of title 31, United States Code (as added by subsection (a) of this section) shall take effect before January 1, 1994. SEC. 1512. PROHIBITION OF ILLEGAL MONEY TRANSMITTING BUSINESSES. (a) In General.— Chapter 95 of title 18, United States Code, is amended by adding at the end the following section: “§1960. Prohibition of illegal money transmitting businesses “(a) Whoever conducts, controls, manages, supervises, directs, or owns all or part of a business, knowing the business is an illegal 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 ‘illegal money transmitting business’ means a money transmitting business that affects interstate or foreign commerce in any manner or degree and which is knowingly operated in a State— “(A) without the appropriate money transmitting State license; and “(B) where such operation is punishable as a misdemeanor or a felony under State law; “(2) the term ‘money transmitting’ includes but is not limited to 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, the Northern Mariana Islands, and any commonwealth, territory, or possession of the United States.”. (b) Clerical Amendment.— The table of sections for chapter 95 of title 18, United States Code, is amended by adding at the end the following item: “1960. Prohibition of illegal money transmitting busineesses.”. (c) Criminal Forfeiture.— Section 982(a)(1) of title 18, United States Code, is amended by striking “or 1957” and inserting “, 1957, or 1960”. SEC. 1513. COMPLIANCE PROCEDURES. Section 5318(a)(2) of title 31, United States Code, is amended by inserting “or to guard against money laundering” before the semicolon. SEC. 1514. NONDISCLOSURE OF ORDERS. Section 5326 of title 31, United States Code, is amended by adding at the end the following: “(c) Nondisclosure of Orders.— No financial institution or officer, director, employee or agent of a financial institution subject to an order under this section may disclose the existence of, or terms of, the order to any person except as prescribed by the Secretary.”. SEC. 1515. PROVISIONS RELATING TO RECORDKEEPING WITH RESPECT TO CERTAIN FUNDS TRANSFERS. (a) Recordkeeping Regulations Required.— Section 21(b) of the Federal Deposit Insurance Act (12 U.S.C. 1829b(b)) is amended— (1) by striking “(b) Where” and inserting “(b) Record-keeping Regulations .— “(1) In general.— Where”; and (2) by adding at the end the following new paragraphs: “(2) Domestic funds transfers.— Whenever the Secretary and the Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’) determine that the maintenance of records, by insured depository institutions, of payment orders which direct transfers of funds over wholesale funds transfer systems has a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, the Secretary and the Board shall jointly prescribe regulations to carry out the purposes of this section with respect to the maintenance of such records. “(3) International funds transfers.— “(A) In general.— The Secretary and the Board shall jointly prescribe, after consultation with State banking supervisors, final regulations requiring that insured depository institutions, businesses that provide check cashing services, money transmitting businesses, and businesses that issue or redeem money orders, travelers’ checks or other similar instruments maintain such records of payment orders which— “(i) involve international transactions; and “(ii) direct transfers of funds over wholesale funds transfer systems or on the books of any insured depository institution, or on the books of any business that provides check cashing services, any money transmit-ting business, and any business that issues or redeems money orders, travelers’ checks or similar instruments, that will have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. “(B) Factors for consideration.— In prescribing the regulations required under subparagraph (A), the Secretary and the Board shall consider— “(i) the usefulness in criminal, tax, or regulatory investigations or proceedings of any record required to be maintained pursuant to the proposed regulations; and “(ii) the effect the recordkeeping required pursuant to such proposed regulations will have on the cost and efficiency of the payment system. “(C) Availability of records.— Any records required to be maintained pursuant to the regulations prescribed under subparagraph (A) shall be submitted or made available to the Secretary or the Board upon request.”. (b) Technical and Conforming Amendments.— Section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b) is amended— (1) in subsection (c), by striking “Each insured” and inserting “Subject to the requirements of any regulations prescribed jointly by the Secretary and the Board under paragraph (2) or (3) of subsection (b), each insured”; (2) in subsection (e), by striking “Whenever any” and inserting “Subject to the requirements of any regulations prescribed jointly by the Secretary and the Board under paragraph (2) or (3) of subsection (b), whenever any”; and (3) in subsection (f), by striking “In addition to” and inserting “Subject to the requirements of any regulations prescribed jointly by the Secretary and the Board under paragraph (2) or (3) of subsection (b) and in addition to”. (c) Effective Date of Regulations.— The initial final regulations 12 USC 1829b note. prescribed pursuant to section 21(b)(3) of the Federal Deposit Insurance Act (as added by subsection (a)(2) of this section) shall take effect before January 1, 1994. SEC. 1516. USE OF CERTAIN RECORDS. Section 1112(0 of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3412(f)) is amended— (1) in paragraph (1), by inserting “or the Secretary of the Treasury” after ‘‘the Attorney General”; and (2) in paragraph (2), by inserting “and only for criminal investigative purposes relating to money laundering and other financial crimes by the Department of the Treasury” after “the Department of Justice”. SEC. 1517. SUSPICIOUS TRANSACTIONS AND FINANCIAL INSTITUTION ANTI-MONEY LAUNDERING PROGRAMS. (a) Reporting Requirement.— Section 5324 of title 31, United States Code, is amended by inserting “or section 5325 or regulations prescribed under such section 5325” after “section 5313(a)” each place such term appears. (b) Suspicious Transactions and Enforcement Programs.— Section 5314 of title 31, United States Code, is amended by adding at the end the following new subsections: “(g) Reporting of Suspicious Transactions.— “(1) In general.— The Secretary may require any financial institution, and any director, officer, employee, or agent of any financial institution, to report any suspicious transaction relevant to a possible violation of law or regulation. “(2) Notification prohibited.— A financial institution, and a director, officer, employee, or agent of any financial institution, who voluntarily reports a suspicious transaction, or that reports a suspicious transaction pursuant to this section or any other authority, may not notify any person involved in the transaction that the transaction has been reported. “(3) Liability for disclosures.— Any financial institution that makes a disclosure of any possible violation of law or regulation or a disclosure pursuant to this subsection or any other authority, and any director, officer, employee, or agent of such institution, shall not be liable to any person under any law or regulation of the United States or any constitution, law, or regulation of any State or political subdivision thereof, for such disclosure or for any failure to notify the person involved in the transaction or any other person of such disclosure. “(h) Anti-Money Laundering Programs.— “(1) In general.— In order to guard against money laundering through financial institutions, the Secretary may require financial institutions to carry out anti-money laundering pro-grams, 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 may prescribe minimum standards for programs established under paragraph (1).”. SEC. 1518. ANTI-MONEY LAUNDERING TRAINING TEAM. The Secretary of the Treasury and the Attorney General shall jointly establish a team of experts to assist and provide training to foreign governments and agencies thereof in developing and expanding their capabilities for investigating and prosecuting violations of money laundering and related laws. SEC. 1519. INTERNATIONAL MONEY LAUNDERING REPORTS. (a) United States Objectives.— Section 481(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2291(a)(1) is amended— (1) by striking out “and” at the end of subparagraph (D); (2) by redesignating subparagraph (E) as subparagraph (F); and (3) by inserting after subparagraph (D) the following new subparagraph: “(E) the objective of the United States in dealing with the problem of international money laundering should be to ensure that countries adopt comprehensive domestic measures against money laundering and cooperative with each other in narcotics money laundering investigations, prosecutions, and related forfeiture actions; and” (b) Annual Reports.— Section 481(e) of that Act (22 U.S.C. 2291(e)) is amended— (1) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively; and (2) by inserting after paragraph (6) the following new paragraph (7): (7) (A) Each report pursuant to this subsection shall include a report on major money laundering countries. This report shall specify— “(i) which countries are major money laundering countries; “(ii) which countries identified pursuant to clause (i) have financial institutions engaging in currency transactions involving international narcotics trafficking proceeds that include significant amounts of United States currency or currency derived from illegal drug sales in the United States or that otherwise significantly affect the United States; “(iii) which countries identified pursuant to clause (ii) have not reached agreement with the United States authorities on a mechanism for exchanging adequate records in connection with narcotics investigations and proceedings; “(iv) which countries identified pursuant to clause (iii)— “(I) are negotiating in good faith with the United States to establish such a record-exchange mechanism, or “(II) have adopted laws or regulations that ensure the availability to appropriate United States Government personnel and those of other governments of adequate records in connection with narcotics investigations and proceedings; and “(v) which countries identified pursuant to clause (i)— “(I) have ratified the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and are taking steps to implement that Convention and other applicable agreements and conventions such as the recommendations of the Financial Action Task Force, the policy directive of the European Community, the legislative guidelines of the Organization of American States, and other similar declarations, and “(II) have entered into bilateral agreements for the exchange of information on money-laundering with countries other than the United States, “(B) In addition, for each major money laundering country, the report shall include findings on the country’s adoption of law and regulations considered essential to prevent narcotics-related money laundering. Such findings shall include whether a country has— “(i) criminalized narcotics money laundering; “(ii) required banks and other financial institutions to know and record the identity of customers engaging in significant transactions, including the recording of large currency trans-actions at thresholds appropriate to that country’s economic situation; “(iii) required banks and other financial institutions to maintain, for an adequate time, records necessary to reconstruct significant transactions through financial institutions in order to be able to respond quickly to information requests from appropriate government authorities in narcotics-related money laundering cases; “(iv) required or allowed financial institutions to report suspicious transactions; “(v) established systems for identifying, tracing, freezing, seizing, and forfeiting narcotics-related assets; “(vi) enacted laws for the sharing of seized narcotics assets with other governments; “(vii) cooperated, when requested, with appropriate law enforcement agencies of other governments investigating financial crimes related to narcotics- and “(viii) addressed the problem on international transportation of illegal-source currency and monetary instruments. The report shall also detail instances of refusals to cooperate with foreign governments, and any actions taken by the United States Government and any international organization to address such obstacles, including the imposition of sanctions or penalties. “(C) The report shall also include information on multilateral and bilateral strategies pursued by the Department of State, the Department of Justice, the Department of the Treasury, and other relevant United States Government agencies, either collectively or individually, to ensure the cooperation of foreign governments with respect to narcotics-related money laundering. “(D) The report shall include specific detail to demonstrate that all United States Government agencies are pursuing a common strategy with respect to achieving international cooperation against money laundering and are pursuing a common strategy with respect to major money laundering countries, including a summary of United States objectives on a country-by-country basis. “(E) As used in this paragraph, the term ‘major money laundering country’ means a country whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking.”. (c) Definition of Major Drug-Transit Country.— Section 481(i)(5) of that Act (22 U.S.C. 2291(i)(6)) is amended— (1) by inserting “or” at the end of subparagraph (A); (2) by striking out “or” at the end of subparagraph (B) and inserting in lieu thereof a period; and (3) by striking out subparagraph (C). Subtitle C— Money Laundering Enforcement Improvements SEC. 1521. JURISDICTION IN CIVIL FORFEITURE CASES. Section 1355 of title 28, United States Code, is amended— (1) by inserting “(a)” before “The district”; and (2) by adding at the end the following new subsections: “(b) (1) A forfeiture action or proceeding may be brought in— “(A) the district court for the district in which any of the acts or omissions giving rise to the forfeiture occurred, or “(B) any other district where venue for the forfeiture action or proceeding is specifically provided for in section 1395 of this title or any other statute. “(2) Whenever property subject to forfeiture under the laws of the United States is located in a foreign country, or has been detained or seized pursuant to legal process or competent authority of a foreign government, an action or proceeding for forfeiture may be brought as provided in paragraph (1), or in the United States District court for the District of Columbia. “(c) in a civil forfeiture action or proceeding is appealed, removal of the property by the prevailing party shall not deprive the court of jurisdiction. Upon motion of the appealing party, the district court or the court of appeals shall issue any order necessary to preserve the right of the appealing party to the full value of the property at issue, including a stay of the judgment of the district court pending appeal or requiring the prevailing party to post an appeal bond. “(d) Any court with jurisdiction over a forfeiture action pursuant to subsection (b) may issue and cause to be served in any other district such process as may be required to bring before the court the property that is the subject of the forfeiture action.” SEC. 1522. CIVIL FORFEITURE OF FUNGIBLE PROPERTY. (a) In general.— Chapter 46 of title 18, United States Code, is amended by adding at the end the following new section: “§ 984. Civil forfeiture of fungible property “(a) This section shall apply to any action for forfeiture brought by the Government in connection with any offense under section 1956, 1957, or 1960 of this title or section 5322 of title 31, United States Code. “(b) (1) In any forfeiture action in rem in which the subject property is cash, monetary instruments in bearer form, funds deposited in an account in a financial institution (as defined in section 20 of this title), or other fungible property— “(A) it shall not be necessary for the Government to identify the specific property involved in the offense that is the basis for the forfeiture; and “(B) it shall not be a defense that the property involved in such an offense has been removed and replaced by identical property. “(2) Except as provided in subsection (c), any identical property found in the same place or account as the property involved in the offense that is the basis for the forfeiture shall be subject to forfeiture under this section. “(c) No action pursuant to this section to forfeit property not traceable directly to the offense that is the basis for the forfeiture may be commenced more than 1 year from the date of the offense. “(d) (1) No action pursuant to this section to forfeit property not traceable directly to the offense that is the basis for the forfeiture may be taken against funds held by a financial institution in an interbank account, unless the financial institution holding the account knowingly engaged in the offense. “(2) As used in this section, the term ‘interbank account’ means an account held by one financial institution at another financial institution primarily for the purpose of facilitating customer trans-actions”. (b) Conforming Amendment.— The chapter analysis for chapter 46 of title 18, United States Code, is amended by adding at the end the following: “984. Civil forfeiture of fungible property.”. SEC. 1523. PROCEDURE FOR SUBPOENAING BANK RECORDS. (a) In General.— Chapter 46 of title 18, United States Code, is amended by adding at the end the following new section: “§ 986. Subpoenas for bank records “(a) At any time after the commencement of any action for forfeiture in rem brought by the United States under section 1956, 1957, or 1960 of this title, section 5322 of title 31, United States Code, or the Controlled Substances Act, any party may request the Clerk of the Court in the district in which the proceeding is pending to issue a subpoena duces tecum to any financial institution, as defined in section 5312(a) of title 31, United States Code, to produce books, records and any other documents at any place designated by the requesting party. All parties to the proceeding shall be notified of the issuance of any such subpoena. The procedures and limitations set forth in section 985 of this title shall apply to subpoenas issued under this section. “(b) Service of a subpoena issued pursuant to this section shall be by certified mail. Records produced in response to such a subpoena may be produced in person or by mail, common carrier, or such other method as may be agreed upon by the party requesting the subpoena and the custodian of records. The party requesting the subpoena may require the custodian of records to submit an affidavit certifying the authenticity and completeness of the records and explaining the omission of any record called for in the subpoena. “(c) Nothing in this section shall preclude any party from pursuing any form of discovery pursuant to the Federal Rules of Civil Procedure”. (b) Conforming Amendment.— The chapter analysis for chapter 46 of title 18, United States Code, is amended by adding at the end the following: “986. Subpoenas for bank records.”. SEC. 1824. DELETION OF REDUNDANT AND INADVERTENTLY LIMITING PROVISION LN 18 U.S.C. 1958. Section 1956(c)(7)(D) of title 18, United States Code, is amended— (1) by striking “section 1341 (relating to mail fraud) or section 1343 (relating to wire fraud) affecting a financial institution, section 1344 (relating to bank fraud),”; and (2) by striking “section 1822 of the Mail Order Drug Paraphernalia Control Act (100 Stat. 3207–51; 21 U.S.C. 857)” and inserting “section 422 of the Controlled Substances Act”. SEC. 1525. STRUCTURING TRANSACTIONS TO EVADE CMIR REQUIREMENT. (a) In General.— Section 5324 of title 31, United States Code, is amended— (1) by inserting “(a) Domestic Coin and Currency Trans-actions.—” before “No person”; and (2) by adding at the end the following: “(b) International Monetary Instrument Transactions.— No person shall, for the purpose of evading the reporting requirements of section 5316— (1) fail to file a report required by section 5316, or cause or attempt to cause a person to fail to file such a report; (2) file or cause or attempt to cause a person to file a report required under section 5316 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 importation or exportation of monetary instruments.”. (b) Conforming Amendment.— Section 532i(a)(4)(C) of title 31, United States Code, is amended by striking “under section 5317(d)”. (c) Forfeiture.— (1) Title 18.— Section 981(a)(1)(A) of title 18, United States Code, is amended by striking “5324” and inserting “5324(a)”. (2) Title 31.— Section 5317(c) of title 31, United States Code, is amended by inserting after the first sentence “Any property, real or personal, involved in a transaction or attempted transaction in violation of section 5324(b), or any property traceable to such property, may be seized and forfeited to the United States Government”, SEC. 1526. CLARIFICATION OF DEFINITION OF FINANCIAL INSTITUTION. (a) Section 1956.— Section 1956(c)(6) of title 18, United States Code, is amended by striking “and the regulations” and inserting “or the regulations”. (b) Section 1957.— Section 1957(f)(1) of title 18, United States Code, is amended by striking “financial institution (as defined in section 5312 of title 31)” and inserting “financial institution (as defined in section 1956 of this title)”. SEC. 1527. DEFINITION OF FINANCIAL TRANSACTION. (a) Section 1956.— Section 1956(c) of title 18, United States Code, is amended— (1) in paragraph (4)(A)— (A) by inserting “or (¡ii) involving the transfer of title to any real property, vehicle, vessel, or aircraft,” after “monetary instruments,”; (B) by striking “which in any way or degree affects interstate or foreign commerce,”; and (C) by inserting “which in any way or degree affects interstate or foreign commerce” after “(A) a transaction”; and (2) in paragraph (3), by inserting “use of a safe deposit box,” before “or any other payment”. (b) Section 1957.— Section 1957(f)(1) of title 18, United States Code, is amended by inserting “, including any transaction that would be a financial transaction under section 1956(c)(4)(B) of this title,” before “but such term does not include”. SEC. 1528. OBSTRUCTING A MONEY LAUNDERING INVESTIGATION. Section 15(K)(b)(3)(B)(i) of title 18, United States Code, is amended by striking “or 1344” and inserting “1344, 1956, 1957, or chapter 53 of title 31”. SEC. 1529. AWARDS IN MONEY LAUNDERING CASES. Section 524(c)(1))(B) of title 28, United States Code, is amended by inserting “or of sections 1956 and 1957 of title 18, sections 5313 and 5324 of title 31, and section 60501 of the Internal Revenue Code of 1986” after “criminal drug laws of the United States”. SEC. 1530. PENALTY FOB MONEY LAUNDERING CONSPIRACIES. Section 1956 of title 18, United States Code, is amended by inserting at the end the following new subsection: “(g) Any person who conspires to commit any offense defined in this section or section 1957 shall be subject to the same penalties as those prescribed for the offense the commission of which was the object of the conspiracy.” SEC. 1531. TECHNICAL AND CONFORMING AMENDMENTS TO MONEY LAUNDERING PROVISION. (a) Transportation.— Subsections (a)(2) and (b) of section 1956 of title 18, United States Code, are amended by striking “transportation” each time such term appears and inserting “transportation, transmission, or transfer.” (b) Technical Correction.— Section 1956(a)(3) of title 18, United States Code, is amended by striking “represented by a law enforcement officer” and inserting “represented”. SEC. 1532. PRECLUSION OF NOTICE TO POSSIBLE SUSPECTS OF EXISTENCE OF A GRAND JURY SUBPOENA FOB BANK RECORDS IN MONEY LAUNDERING AND CONTROLLED SUBSTANCE INVESTIGATIONS. Section 1120(b)(1)(A) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3420(b)(1)(A)) is amended by inserting before the semicolon “or crime involving a violation of the Controlled Substance Act, the Controlled Substances Import and Export Act, section 1956 or 1957 of title 18, sections 5313, 5316 and 5324 of title 31, or section 60501 of the Internal Revenue Code of 1986”. SEC. 1533. ELIMINATION OF RESTRICTION ON DISPOSAL OF FORFEITED PROPERTY BY THE DEPARTMENT OF THE TREASURY AND THE POSTAL SERVICE. Section 981(e) of title 18, United States Code, is amended by striking “The authority granted to the Secretary of the Treasury and the Postal Service pursuant to this subsection shall apply only to property that has been administratively forfeited”. SEC. 1534. NEW MONEY LAUNDERING PREDICATE OFFENSES. Section 1956(c)(7)(D) of title 18, United States Code, is amended— (1) by striking “or” before “section 16”; (2) by inserting “section 1708 (theft from the mail),” before “section 2113”; and (3) by inserting before the semicolon; “, any felony violation of section 9(c) of the Food Stamp Act of 1977 (relating to food stamp fraud) involving a quantity of coupons having a value of not less than $5,000, or any felony violation of the Foreign Corrupt Practices Act”. SEC. 1535. AMENDMENTS TO THE BANK SECRECY ACT. (a) Title 31.— Title 31, United States Code, is amended— (1) in section 5324, by inserting “, section 5325, or the regulations issued thereunder” after “section 5313(a)” each place such term appears; and (2) in section 5321(a)(5)(A), by inserting “or any person willfully causing” after “willfully violates”. (b) Federal Deposit Insurance Act.— Section 21(j)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1829b(j)(1)) is amended by inserting “, or any person who willfully causes such a violation,” after “gross negligence violates”. (c) Recordkeeping.— Public Law 91–608 (12 U.S.C. 1961 et seq.) is amended— (1) in section 125(a), by inserting “or any person willfully 12 USC 1955. causing a violation of the regulation,” after “appliesand (2) in section 127, by inserting “, or willfully causes a 12 USC 1957. violation of after “Whoever willfully violates”. SEC. 1536. EXPANSION OF MONEY LAUNDERING LAW TO COVER PROCEEDS OF CERTAIN FOREIGN CRIMES. Section 1956(c)(7)(B) of title 18, United States Code, is amended— (1) by striking “involving the manufacture” and inserting the following: “involving— “(i) the manufacture”; and (2) by adding at the end the following: “(ii) kidnaping, robbery, or extortion; or “(iii) fraud, or any scheme or attempt to defraud, by or against a foreign bank (as defined in paragraph 7 of section 1(b) of the International Banking Act of 1978;”. Subtitle D— Reports and Miscellaneous SEC. 1541. STUDY AND REPORT ON REIMBURSING FINANCIAL INSTITUTIONS AND OTHERS FOR PROVIDING FINANCIAL RECORDS. (a) Study Required.— The Attorney General, in consultation with the Secretary of the Treasury and the Board of Governors of the Federal Reserve System and other appropriate banking regulatory agencies, shall conduct a study of the effect of amending the Right to Financial Privacy Act of 1978 by allowing reimbursement to financial institutions for assembling or providing financial records on corporations and other entities not currently covered under section 1115(a) of such Act The study shall also include analysis of the effect of allowing nondepositor licensed transmitters of funds to be reimbursed to the same extent as financial institutions under that section. (b) Report.— Before the end of the 180-day period beginning on the date of enactment of this Act, the Attorney General shall submit a report to the Congress on the results of the study conducted pursuant to subsection (a). SEC. 1542. REPORTS OF INFORMATION REGARDING SAFETY AND SOUNDNESS OF DEPOSITORY INSTITUTIONS. (a) Reports to Appropriate Federal Banking Agencies.— (1) In general.— The Attorney General, the Secretary of the Treasury, and the head of any other agency or instrumentality of the United States shall, unless otherwise prohibited by law, disclose to the appropriate Federal banking agency any information that the Attorney General, the Secretary of the Treasury, or such agency head believes raises significant concerns regarding the safety or soundness of any depository institution doing business in the United States. (2) Exceptions.— (A) Intelligence information.— (i) In general.— The Director of Centra) Intelligence shall disclose to the Attorney General or the Secretary of the Treasury any intelligence information that would otherwise be reported to an appropriate Federal banking agency pursuant to paragraph (1). After consultation with the Director of Central Intelligence, the Attorney General or the Secretary of the Treasury, shall disclose the intelligence information to the appropriate Federal banking agency. (ii) Procedures for receipt of intelligence information.— Each appropriate Federal banking agency, in consultation with the Director of Central Intelligence, shall establish procedures for receipt of intelligence information that are adequate to protect the intelligence information. (B) Criminal investigations, safety of government investigators, informants, and witnesses.— If the Attorney General, the Secretary of the Treasury or their respective designees determines that the disclosure of information pursuant to paragraph (1) may jeopardize a pending civil investigation or litigation, or a pending criminal investigation or prosecution, may result in serious bodily injury or death to Government employees, informants, witnesses or their respective families, or may disclose sensitive investigative techniques and methods, the Attorney General or the Secretary of the Treasury shall— (i) provide the appropriate Federal banking agency a description of the information that is as specific as possible without jeopardizing the investigation, litigation, or prosecution, threatening serious bodily injury or death to Government employees, informants, or witnesses or their respective families, or disclosing sensitive investigation techniques and methods; and (ii) permit a full review of the information by the Federal banking agency at a location and under procedures that the Attorney General determines will ensure the effective protection of the information while permit-ting the Federal banking agency to ensure the safety and soundness of any depository institution. (C) Grand jury investigations; criminal procedure.— Paragraph (1) shall not— (i) apply to the receipt of information by an agency or instrumentality in connection with a pending grand jury investigation; or (ii) be construed to require disclosure of information prohibited by rule 6 of the Federal Rules of Criminal Procedure. (b) Procedures for Receipt of Disclosure Reports.— (1) In general.— Within 90 days after the date of enactment of this Act, each appropriate Federal banking agency shall establish procedures for receipt of a disclosure report by an agency or instrumentality made in accordance with sub-section (a)(1). The procedures established in accordance with this subsection shall ensure adequate protection of information disclosed, including access control and information accountability. (2) Procedures related to each disclosure report.— Upon receipt of a report in accordance with subsection (a)(1), the appropriate Federal banking agency shall— (A) consult with the agency or instrumentality that made the disclosure regarding the adequacy of the procedures established pursuant to paragraph (1), and (B) adjust the procedures to ensure adequate protection of the information disclosed. (c) Effect on Agencies.— This section does not impose an affirmative duty on the Attorney General, the Secretary of the Treasury, or the head of any agency or instrumentality of the United States to collect new or to review existing information. (d) Definitions.— For purposes of this section, the terms “appropriate Federal banking agency” and “depository institution” have the same meanings as in section 8 of the Federal Deposit Insurance Act. (e) Report.— The Attorney General and the Secretary of the Treasury shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives, not later than 90 days after the end of each calendar year on their utilization of the exceptions provided in subsection (a)(1)(B). SEC. 1543. IMMUNITY. Section 6001(1) of title 18, United States Code, is amended by inserting “the Board of Governors of the Federal Reserve System,” after “the Atomic Energy Commission,”. SEC. 1544. INTERAGENCY INFORMATION SHARING, Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended by adding at the end the following new subsection: “(t) Agencies May Share Information Without Waiving Privilege.— “(1) In general.— A covered agency shall not be deemed to have waived any privilege applicable to any information by transferring that information to or permitting that information to be used by— “(A) any other covered agency, in any capacity; or “(B) any other agency of the Federal Government (as defined in section 6 of title 18, United States Code). “(2) Definitions.— For purposes of this subsection: “(A) Covered agency.— The term ‘covered agency’ means any of the following: “(i) Any appropriate Federal banking agency. “(ii) The Resolution Trust Corporation. “(iii) The Farm Credit Administration. “(iv) The Farm Credit System Insurance Corporation. “(v) The National Credit Union Administration. “(B) Privilege.— The term ‘privilege’ includes any work-product, attorney-client, or other privilege recognized under Federal or State law. (3) Rule of construction.— Paragraph (1) shall not be construed as implying that any person waives any privilege applicable to any information because paragraph (1) does not apply to the transfer or use of that information.”. Subtitle E— Counterfeit Deterrence SEC. 1551. SHORT TITLE. This subtitle may be cited as the “Counterfeit Deterrence Act of 1992”. SEC. 1552. INCREASE IN PENALTIES. Section 474 of title 18, United States Code, is amended— (1) by inserting “(a)” before “Whoever” the first time it appears: (2) by striking “United States; or” at the end of the sixth undesignated paragraph and inserting “United States—”; (3) by striking the seventh undesignated paragraph; (4) by amending the last undesignated paragraph to read as follows: “Is guilty of a class C felony.”; and (5) by adding at the end thereof the following: “(b) For purposes of this section, the terms ‘plate’, ‘stone’, ‘thing’, or ‘other thing’ includes any electronic method used for the acquisition, recording, retrieval, transmission, or reproduction of any obligation or other security, unless such use is authorized by the Secretary of the Treasury. The Secretary shall establish a system (pursuant to section 504) to ensure that the legitimate use of such electronic methods and retention of such reproductions by businesses, hobbyists, press and others shall not be unduly restricted.”. SEC. 1553. DETERRENTS TO COUNTERFEITING. (a) In General.— Chapter 25 of title 18, United States Code, is amended by inserting after section 474 the following new section: “§474A. Deterrents to counterfeiting of obligations and securities “(a) Whoever has in his control or possession, after a distinctive paper has been adopted by the Secretary of the Treasury for the obligations and other securities of the United States, any similar paper adapted to the making of any such obligation or other security, except under the authority of the Secretary of the Treasury, is guilty of a class C felony. “(b) Whoever has in his control or possession, after a distinctive counterfeit deterrent has been adopted by the Secretary of the Treasury for the obligations and other securities of the United States by publication in the Federal Register, any essentially identical feature or device adapted to the making of any such obligation or security, except under the authority of the Secretary of the Treasury, is guilty of a class C felony. “(c) As used in this section— “(1) the term ‘distinctive paper’ includes any distinctive medium of which currency is made, whether of wood pulp, rag, plastic substrate, or other natural or artificial fibers or materials: and “(2) the term ‘distinctive counterfeit deterrent’ includes any ink, watermark, seal, security thread, optically variable device, or other feature or device; “(A) in which the United States has an exclusive property interest; or “(B) which is not otherwise in commercial use or in the public domain and which the Secretary designates as being necessary in preventing the counterfeiting of obligations or other securities of the United States.”. (b) Chapter Analysis.— The chapter analysis for chapter 25 of title 18, United States Code, is amended by adding after the item for section 474 the following: “474A. Deterrents to counterfeiting of obligations and securities.”. SEC. 1554. REPRODUCTIONS OF CURRENCY. Section 504 of title 18, United States Code, is amended— (1) in paragraph (1)(D), by striking the comma at the end thereof and inserting a period; (2) in paragraph (1)— (A) by striking “for philatelic” from the text following subparagraph (D) and all that follows through “albums).”; and (B) by adding at the end the following new sentence: “The Secretary of the Treasury hall prescribe regulations to Regulations. permit color illustrations of such currency of the United States as the Secretary determines may be appropriate for such purposes”. (3) by redesignating paragraph (2) as paragraph (3) and inserting after paragraph (1) the following new paragraph: “(2) The provisions of this section shall not permit the reproduction of illustrations of obligations or other securities, by or through electronic methods used for the acquisition, recording, retrieval, transmission, or reproduction of any obligation or other security, unless such use is authorized by the Secretary of the Treasury. The Secretary shall establish a system to ensure that the legitimate use of such electronic methods and retention of such reproductions by businesses, hobbyists, press or others shall not be unduly restricted.”; and (4) in paragraph (3), as redesignated by paragraph (3) of this subsection, by striking “but not for advertising purposes except philatelic advertising,”. Subtitle F— Miscellaneous Provisions SEC. 1561. CIVIL MONEY PENALTIES. (a) In General.— Section 5321(a)(6) of title 31, United States Code, is amended to read as follows: “(6) Negligence.— “(A) In general.— The Secretary of the Treasury may impose a civil money penalty of not more than $500 on any financial institution which negligently violates any provision of this subchapter or any regulation prescribed under this subchapter. “(B) Pattern of negligent activity.— If any financial institution engages in a pattern of negligent violations of any provision of this subchapter or any regulation prescribed under this subchapter, the Secretary of the Treasury may, in addition to any penalty imposed under subparagraph (A) with respect to any such violation, impose a civil money penalty of not more than $50,000 on the financial institution.”. (b) Effective Date.— The amendment made by subsection (a) shall apply with respect to violations committed after the date of the enactment of this Act. SEC. 1562. AUTHORITY TO ORDER DEPOSITORY INSTITUTIONS TO OBTAIN COPIES OF CTRS FROM CUSTOMERS WHICH ARE UNREGULATED BUSINESSES. Section 5326 of title 31, United States Code, is amended— (1) by redesignating subsection (b) as subsection (d); and (2) by inserting after subsection (a) the following new sub-section: “(b) Authority To Order Depository Institutions To Obtain Reports From Customers.— “(1) In general.— The Secretary of the Treasury may, by regulation or order, require any depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act)— “(A) to request any financial institution (other than a depository institution) which engages in any reportable transaction with the depository institution to provide the depository institution with a copy of any report filed by the financial institution under this subtitle with respect to any prior transaction (between such financial institution and any other person) which involved any portion of the coins or currency (or monetary instruments) which are involved in the reportable transaction with the depository institution; and “(B) if no copy of any report described in subparagraph (A) is received by the depository institution in connection with any reportable transaction to which such subparagraph applies, to submit (in addition to any report required under tins subtitle with respect to the reportable trans-action) a written notice to the Secretary that the financial institution failed to provide any copy of such report. “(2) Reportable transaction defined.— For purposes of this subsection, the term ‘reportable transaction’ means any transaction involving coins or currency (or such other monetary instruments as the Secretary may describe in the regulation or order) the total amounts or denominations of which are equal to or greater than an amount which the Secretary may prescribe.”. SEC. 1563. WHISTLEBLOWER PROTECTION FOR EMPLOYEES OF FINANCIAL INSTITUTIONS OTHER THAN DEPOSITORY INSTITUTIONS. (a) In General.— Subchapter II of chapter 53 of title 31, United States Code, is amended by inserting after section 5327 (as added by section 1511(a) of this title) the following new section: “ 5328. Whistleblower protections “(a) Prohibition Against Discrimination.— No financial institution may discharge or otherwise discriminate against any employee with respect to compensation, terms, conditions, or privileges of employment because the employee (or any person acting pursuant to the request of the employee) provided information to the Secretary of the Treasury, the Attorney General, or any Federal supervisory agency regarding a possible violation of any provision of this subchapter or section 1956, 1957, or 1960 of title 18, or any regulation under any such provision, by the financial institution or any director, officer, or employee of the financial institution. “(b) Enforcement.— Any employee or former employee who believes that such employee has been discharged or discriminated against in violation of subsection (a) may file a civil action in the appropriate United States district court before the end of the 2-year period beginning on the date of such discharge or discrimination. “(c) Remedies.— If the district court determines that a violation has occurred, the court may order the financial institution which committed the violation to— “(1) reinstate the employee to the employee’s former position; “(2) pay compensatory damages; or “(3) take other appropriate actions to remedy any past discrimination. “(d) Limitation.— The protections of this section shall not apply to any employee who— “(1) deliberately causes or participates in the alleged violation of law or regulation; or “(2) knowingly or recklessly provides substantially false information to the Secretary, the Attorney General, or any Federal supervisory agency. “(e) Coordination With Other Provisions of Law.— This section shall not apply with respect to any financial institution which is subject to section 33 of the Federal Deposit Insurance Act, section 213 of the Federal Credit Union Act, or section 21A(q) of the Home Owners’ Loan Act (as added by section 261(c) of the Federal Deposit Insurance Corporation Improvement Act of 1991).” (b) 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 5327 (as added by section 1511(c) of this Act) the following new item: “5328. Whistleblower protections.”. SEC. 1564. ADVISORY GROUP ON REPORTING REQUIREMENTS. (a) Establishment.— Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall establish a Bank Secrecy Act Advisory Group consisting of representatives of the Department of the Treasury, the Department of Justice, and the Office of National Drug Control Policy and of other interested persons and financial institutions subject to the reporting requirements of subchapter II of chapter 63 of title 31, United States Code, or section 60601 of the Internal Revenue Code of 1986. (b) Purposes.— The Advisory Group shall provide a means by which the Secretary— (1) informs private sector representatives, on a regular basis, of the ways in which the reports submitted pursuant to the requirements referred to in subsection (a) have been used; (2) informs private sector representatives, on a regular basis, of how information regarding suspicious financial trans-actions provided voluntarily by financial institutions has been used; and (3) receives advice on the manner in which the reporting requirements referred to in subsection (a) should be modified to enhance the ability of law enforcement agencies to use the information provided for law enforcement purposes. (c) Inapplicability of Federal Advisory Committee Act.— The Federal Advisory Committee Act shall not apply to the Bank Secrecy Act Advisory Group established pursuant to subsection (a). SEC. 1565. GAO FEASIBILITY STUDY OF THE FINANCIAL CRIMES ENFORCEMENT NETWORK. (a) Study Required.— The Comptroller General of the United States shall conduct a feasibility study of the Financial Crimes Enforcement Network (popularly referred to as “Fincen”) established by the Secretary of the Treasury in cooperation with other agencies and departments of the United States and appropriate Federal banking agencies. (b) Specific Requirements.— In conducting the study required under subsection (a), the Comptroller General shall examine and evaluate— (1) the extent to which Federal, State, and local govern-mental and nongovernmental organizations are voluntarily providing information which is necessary for the system to be useful for law enforcement purposes; (2) the extent to which the operational guidelines established for the system provide for the coordinated and efficient entry of information into, and withdrawal of information from, the system; (3) the extent to which the operating procedures established for the system provide appropriate standards or guidelines for determining— (A) who is to be given access to the information in the system; (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 system; and (4) the extent to which the operating procedures established for the system provide for the prompt verification of the accuracy and completeness of information entered into the system and the prompt deletion or correction of inaccurate or incomplete information. (c) Report to Congress.— Before the end of the 1-year period, beginning on the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to the Congress containing the findings and conclusions of the Comptroller General in connection with the study conducted pursuant to subsection (a), together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.

5. 1994

   Violent Crime Control and Law Enforcement Act of 1994

   Pub. L. 103–322 § 330020 · 108 Stat. 1796

   1. Amended · 18 U.S.C. § 1957(f)(1)

      Pub. L. 103–322, § 330020, and Pub. L. 103–325, § 413(c)(2), amended par. (1) identically

   2. Struck · 18 U.S.C. § 1957(f)(1)

      Pub. L. 103–322, § 330020, and Pub. L. 103–325, § 413(c)(2), striking out second comma after “(as defined in section 1956 of this title)”

   Source evidence

   Code amendment note
   Subsec. (f)(1). Pub. L. 103–322, § 330020, and Pub. L. 103–325, § 413(c)(2), amended par. (1) identically, striking out second comma after “(as defined in section 1956 of this title)”.

   Enacted provision · exact public law section
   SEC. 330020. TECHNICAL ERROR. Section 1957(f)(1) of title 18, United States Code, is amended by striking the comma that follows a comma.

6. 2006

   Combating Terrorism Financing Act of 2005

   Pub. L. 109–177 title IV § 403(c)(2) · 120 Stat. 192

   Amended · 18 U.S.C. § 1957(e)

   Pub. L. 109–177 amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “Violations of this section may be investigated by such components of the Department of Justice as the Attorney General may direct, and by such components of the Department of the Treasury as the Secretary of the Treasury may direct, as appropriate and, with respect to offenses over which the United States Postal Service has jurisdiction, by the Postal Service. Such authority of the Secretary of the Treasury and the Postal Service shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury, the Postal Service, and the Attorney General.”

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 109–177 amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “Violations of this section may be investigated by such components of the Department of Justice as the Attorney General may direct, and by such components of the Department of the Treasury as the Secretary of the Treasury may direct, as appropriate and, with respect to offenses over which the United States Postal Service has jurisdiction, by the Postal Service. Such authority of the Secretary of the Treasury and the Postal Service shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury, the Postal Service, and the Attorney General.”

   Enacted provision · exact public law section
   (2) Section 1957(e) of title 18, United States Code, is amended to read as follows: “(e) Violations of this section may be investigated by such components of the Department of Justice as the Attorney General may direct, and by such components of the Department of the Treasury as the Secretary of the Treasury may direct, as appropriate, and, with respect to offenses over which the Department of Homeland Security has jurisdiction, by such components of the Department of Homeland Security as the Secretary of Homeland Security may direct, and, with respect to offenses over which the United States Postal Service has jurisdiction, by the Postal Service. Such authority Agreement of the Secretary of the Treasury, the Secretary of Homeland Security, and the Postal Service shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury, the Secretary of Homeland Security, the Postal Service, and the Attorney General.” .

7. 2009

   Fraud Enforcement and Recovery Act of 2009

   Pub. L. 111–21 § 2(f)(2) · 123 Stat. 1617

   1. Added · 18 U.S.C. § 1957(f)(3)

      Pub. L. 111–21 added par. (3)

   2. Struck · 18 U.S.C. § 1957(f)(3)

      Pub. L. 111–21 struck out former par. (3) which read as follows: “the term ‘specified unlawful activity’ has the meaning given that term in section 1956 of this title.”

   Source evidence

   Code amendment note
   Subsec. (f)(3). Pub. L. 111–21 added par. (3) and struck out former par. (3) which read as follows: “the term ‘specified unlawful activity’ has the meaning given that term in section 1956 of this title.”

   Enacted provision · exact public law section
   (2) Monetary transactions.— Section 1957(f) of title 18, United States Code, is amended by striking paragraph (3) and inserting the following: “(3) the terms ‘specified unlawful activity’ and ‘proceeds’ shall have the meaning given those terms in section 1956 of this title.” .

8. 2012

   Strengthening and Focusing Enforcement to Deter Organized Stealing and Enhance Safety Act of 2012

   Pub. L. 112–186 § 4(b)(2) · 126 Stat. 1427

   Inserted · 18 U.S.C. § 1957(b)(1)

   Pub. L. 112–186 inserted at end “If the offense involves a pre-retail medical product (as defined in section 670) the punishment for the offense shall be the same as the punishment for an offense under section 670 unless the punishment under this subsection is greater.”

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 112–186 inserted at end “If the offense involves a pre-retail medical product (as defined in section 670) the punishment for the offense shall be the same as the punishment for an offense under section 670 unless the punishment under this subsection is greater.”

   Enacted provision · exact public law section
   (2) Money laundering.— Section 1957(b)(1) of title 18, United States Code, is amended by adding at the end the following: “If the offense involves a pre-retail medical product (as defined in section 670) the punishment for the offense shall be the same as the punishment for an offense under section 670 unless the punishment under this subsection is greater.”.

8 of 12 references resolved to an enrolled provision · 4 partial