[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3723 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                    September 18, 1996.
      Resolved, That the bill from the House of Representatives (H.R. 
3723) entitled ``An Act to amend title 18, United States Code, to 
protect proprietary economic information, and for other purposes.'', do 
pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Espionage Act of 1996''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) sustaining a healthy and competitive national economy 
        is imperative;
            (2) the development and production of proprietary economic 
        information involves every aspect of interstate commerce and 
        business;
            (3) the development, production, protection, and lawful 
        exchange, sale, and transfer of proprietary economic 
        information is essential to maintaining the health and 
        competitiveness of interstate commerce and the national 
        economy;
            (4) much proprietary economic information moves in 
        interstate and foreign commerce and proprietary economic 
        information that does not move in interstate or foreign 
        commerce directly and substantially affects proprietary 
        economic information that does;
            (5) the theft, wrongful destruction or alteration, 
        misappropriation, and wrongful conversion of proprietary 
        economic information substantially affects and harms interstate 
        commerce, costing United States firms, businesses, industries, 
        and consumers millions of dollars each year; and
            (6) enforcement of existing State laws protecting 
        proprietary economic information is frustrated by the ease with 
        which stolen or wrongfully appropriated proprietary economic 
        information is transferred across State and national 
        boundaries.
    (b) Purpose.--The purpose of this Act is--
            (1) to promote the development and lawful utilization of 
        United States proprietary economic information produced for, or 
        placed in, interstate and foreign commerce by protecting it 
        from theft, wrongful destruction or alteration, 
        misappropriation, and conversion; and
            (2) to secure to authors and inventors the exclusive right 
        to their respective writings and discoveries.

SEC. 3. PREVENTION OF ECONOMIC ESPIONAGE AND PROTECTION OF PROPRIETARY 
              ECONOMIC INFORMATION IN INTERSTATE AND FOREIGN COMMERCE.

    (a) In General.--Title 18, United States Code, is amended by 
inserting after chapter 89 the following new chapter:

      ``CHAPTER 90--PROTECTION OF PROPRIETARY ECONOMIC INFORMATION

``Sec.
``1831. Definitions.
``1832. Criminal activities affecting proprietary economic information.
``1833. Criminal forfeiture.
``1834. Civil remedies.
``1835. Extraterritoriality.
``1836. Construction with other laws.
``1837. Preservation of confidentiality.
``1838. Prior authorization requirement.
``1839. Law enforcement and intelligence activities.
``Sec. 1831. Definitions
    ``As used in this chapter:
            ``(1) The term `person' means a natural person, 
        corporation, agency, association, institution, or any other 
        legal, commercial, or business entity.
            ``(2) The term `proprietary economic information' means all 
        forms and types of financial, business, scientific, technical, 
        economic, or engineering information, including data, plans, 
        tools, mechanisms, compounds, formulas, designs, prototypes, 
        processes, procedures, programs, codes, or commercial 
        strategies, whether tangible or intangible, and whether stored, 
        compiled, or memorialized physically, electronically, 
        graphically, photographically, or in writing that--
                    ``(A) the owner thereof has taken reasonable 
                measures, under the circumstances, to keep such 
                information confidential; and
                    ``(B) the information derives independent economic 
                value, actual or potential, from not being generally 
                known to, and not being readily ascertainable, 
                acquired, or developed by legal means by the public.
        The term does not include any general knowledge, experience, 
        training, or skill that a person lawfully has acquired due to 
        his work as an employee of or as an independent contractor for 
        any person.
            ``(3) The term `owner' means the person or persons in whom, 
        or government component, department, or agency in which, 
        rightful legal, or equitable title to, or license in, 
        proprietary economic information is reposed.
            ``(4) The term `without authorization' means not permitted, 
        expressly or implicitly, by the owner.
``Sec. 1832. Criminal activities affecting proprietary economic 
              information
    ``(a) Any person, with intent to, or reason to believe that it 
will, injure any owner of proprietary economic information and with 
intent to convert it to his or her own use or benefit or the use or 
benefit of another, who knowingly--
            ``(1) steals, or without authorization appropriates, takes, 
        carries away, or conceals, or by fraud, artifice, or deception 
        obtains such information;
            ``(2) without authorization copies, duplicates, sketches, 
        draws, photographs, downloads, uploads, alters, destroys, 
        photocopies, replicates, transmits, delivers, sends, mails, 
        communicates, or conveys such information;
            ``(3) receives, buys, or possesses such information, 
        knowing the same to have been stolen or appropriated, obtained, 
        or converted without authorization;
            ``(4) attempts to commit any offense described in 
        paragraphs (1) through (3);
            ``(5) solicits another to commit any offense described in 
        paragraphs (1) through (3); or
            ``(6) conspires with one or more other persons to commit 
        any offense described in paragraphs (1) through (3), and one or 
        more of such persons do any act to effect the object of the 
        conspiracy,
shall, except as provided in subsection (b), be fined up to $250,000, 
or twice the value of the proprietary economic information, whichever 
is greater, or imprisoned not more than 10 years, or both.
    ``(b) Any organization that commits any offense described in 
subsection (a) shall be fined up to $10,000,000, or twice the value of 
the proprietary economic information, whichever is greater.
    ``(c) This section does not prohibit the reporting of any suspected 
criminal activity or regulatory violation to any appropriate agency or 
instrumentality of the United States, a State, a political subdivision 
of a State, or to Congress.
``Sec. 1833. Criminal forfeiture
    ``(a) Notwithstanding any provision of State law, any person or 
organization convicted of a violation under this chapter shall forfeit 
to the United States--
            ``(1) any property constituting or derived from, any 
        proceeds the person or organization obtained, directly or 
        indirectly, as the result of such violation; and
            ``(2) any of the person's or organization's property used, 
        or intended to be used, in any manner or part to commit or 
        facilitate the commission of such violation.
    ``(b) The court, in imposing a sentence on such person or 
organization, shall order, in addition to any other sentence imposed 
pursuant to this chapter, that the person or organization forfeit to 
the United States all property described in this section.
    ``(c) Property subject to forfeiture under this section, any 
seizure and disposition thereof, and any administrative or judicial 
proceeding in relation thereto, shall be governed by section 413 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 
853), except for subsection 413(d) which shall not apply to forfeitures 
under this section.
    ``(d) Notwithstanding section 524(c) of title 28, there shall be 
deposited in the Crime Victims Fund established under section 1402 of 
the Victims of Crime Act of 1984 (42 U.S.C. 10601) all amounts from the 
forfeiture of property under this section remaining after the payment 
of expenses and sale authorized by law.
``Sec. 1834. Civil remedies
    ``(a) The district courts of the United States shall have 
jurisdiction to prevent and restrain violations of sections 1832 of 
this chapter by issuing appropriate orders.
    ``(b) The Attorney General may institute proceedings under this 
section. Pending final determination thereof, the court may at any time 
enter such restraining orders or prohibitions, or take such other 
actions, including the acceptance of satisfactory performance bonds, as 
it shall deem proper.
    ``(c) A final judgment or decree rendered in favor of the United 
States in any criminal proceeding brought by the United States under 
this chapter shall estop the defendant from denying the essential 
allegations of the criminal offense in any subsequent civil proceeding 
brought by the United States.
``Sec. 1835. Extraterritoriality
    ``(a) This chapter applies to conduct occurring within the United 
States.
    ``(b) This chapter also applies to conduct occurring outside the 
United States if--
            ``(1) the offender is a natural person who is a citizen or 
        permanent resident alien of the United States, or an 
        organization organized under the laws of the United States or a 
        State or political subdivision thereof; or
            ``(2) an act in furtherance of the offense was committed in 
        the United States.
``Sec. 1836. Construction with other laws
    ``This chapter shall not be construed to preempt or displace any 
other Federal or State remedies, whether civil or criminal, for the 
misappropriation of proprietary economic information, or to affect the 
otherwise lawful disclosure of information by any government employee 
under section 552 of title 5 (commonly known as the Freedom of 
Information Act).
``Sec. 1837. Preservation of confidentiality
    ``In any prosecution or other proceeding under this chapter, the 
court shall enter such orders and take such other action as may be 
necessary and appropriate to preserve the confidentiality of 
proprietary economic information, consistent with rule 16 of the 
Federal Rules of Criminal Procedure, the Federal Rules of Evidence, and 
other applicable laws. An interlocutory appeal by the United States 
shall lie from a decision or order of a district court authorizing or 
directing the disclosure of proprietary economic information.
``Sec. 1838. Prior authorization requirement
    ``The United States may not file a charge under this chapter or use 
a violation of this chapter as a predicate offense under any other law 
without the personal approval of the Attorney General, the Deputy 
Attorney General, or the Assistant Attorney General for the Criminal 
Division of the Department of Justice or the Acting Attorney General, 
the Acting Deputy Attorney General, or the Acting Assistant Attorney 
General for the Criminal Division of the Department of Justice.
``Sec. 1839. Law enforcement and intelligence activities
    ``This chapter does not prohibit any and shall not impair otherwise 
lawful activity conducted by an agency or instrumentality of the United 
States, a State, or a political subdivision of a State.''.
    (b) Technical Amendment.--The table of chapters for title 18, 
United States Code, is amended by inserting after the item relating to 
chapter 89 the following new item:

``90. Protection of Proprietary Economic Information........    1831''.
    (c) Report.--Not later than 2 years and 4 years after the date of 
enactment of this Act, the Attorney General shall report to Congress on 
the amounts received and distributed from forfeitures of property 
deposited as provided in section 1833(d) of title 18, United States 
Code, as added by subsection (a) of this section.

SEC. 4. WIRE AND ELECTRONIC COMMUNICATIONS INTERCEPTION AND 
              INTERCEPTION OF ORAL COMMUNICATIONS.

    Section 2516(1)(a) of title 18, United States Code, is amended by 
inserting ``chapter 90 (relating to economic espionage and protection 
of proprietary economic information in interstate and foreign 
commerce),'' after ``title:''.

SEC. 5. PREVENTION OF ECONOMIC ESPIONAGE.

    (a) In General.--Part I of title 18, United States Code, is amended 
by inserting after chapter 27 the following new chapter:

                    ``CHAPTER 28--ECONOMIC ESPIONAGE

``Sec.
``571. Definitions.
``572. Economic espionage.
``573. Criminal forfeiture.
``574. Civil remedies.
``575. Prior authorization requirement.
``576. Construction with other laws.
``577. Preservation of confidentiality.
``578. Law enforcement and intelligence activities.
``Sec. 571. Definitions
    ``For purposes of this chapter, the following definitions shall 
apply:
            ``(1) Foreign agent.--The term `foreign agent' means any 
        officer, employee, proxy, servant, delegate, or representative 
        of a foreign government.
            ``(2) Foreign instrumentality.--The term `foreign 
        instrumentality' means any agency, bureau, ministry, component, 
        institution, association, or any legal, commercial, or business 
        organization, corporation, firm, or entity that is 
        substantially owned, controlled, sponsored, commanded, managed, 
        or dominated by a foreign government or subdivision thereof.
            ``(3) Owner.--The term `owner' means the person or persons 
        in whom, or the government component, department, or agency in 
        which, rightful legal, or equitable title to, or license in, 
        proprietary economic information is reposed.
            ``(4) Proprietary economic information.--The term 
        `proprietary economic information' means all forms and types of 
        financial, business, scientific, technical, economic, or 
        engineering information (including data, plans, tools, 
        mechanisms, compounds, formulas, designs, prototypes, 
        processes, procedures, programs, codes, or commercial 
        strategies) whether tangible or intangible, and whether stored, 
        compiled, or memorialized physically, electronically, 
        graphically, photographically, or in writing, if--
                    ``(A) the owner thereof has taken reasonable 
                measures to keep such information confidential; and
                    ``(B) the information derives independent economic 
                value, actual or potential, from not being generally 
                known to, and not being readily ascertainable through 
                legal means by, the public.
            ``(5) Without authorization.--The term `without 
        authorization' means not permitted, expressly or implicitly, by 
        the owner.
``Sec. 572. Economic espionage
    ``(a) In General.--Any person who, with knowledge or reason to 
believe that he or she is acting on behalf of, or with the intent to 
benefit, any foreign government, instrumentality, or agent, knowingly--
            ``(1) steals, or without authorization appropriates, takes, 
        carries away, or conceals, or by fraud, artifice, or deception 
        obtains proprietary economic information;
            ``(2) without authorization copies, duplicates, sketches, 
        draws, photographs, downloads, uploads, alters, destroys, 
        photocopies, replicates, transmits, delivers, sends, mails, 
        communicates, or conveys proprietary economic information;
            ``(3) receives, buys, or possesses proprietary economic 
        information, knowing the same to have been stolen or 
        appropriated, obtained, or converted without authorization;
            ``(4) attempts to commit any offense described in any of 
        paragraphs (1) through (3);
            ``(5) solicits another to commit any offense described in 
        any of paragraphs (1) through (4); or
            ``(6) conspires with one or more other persons to commit 
        any offense described in any of paragraphs (1) through (4), and 
        one or more of such persons do any act to effect the object of 
        the conspiracy,
shall, except as provided in subsection (b), be fined not more than 
$500,000, or twice the value of the proprietary economic information, 
whichever is greater, or imprisoned not more than 25 years, or both.
    ``(b) Organizations.--Any organization that commits any offense 
described in subsection (a) shall be fined not more than $10,000,000, 
or twice the value of the proprietary economic information, whichever 
is greater.
    ``(c) Exception.--It shall not be a violation of this section to 
disclose proprietary economic information in the case of--
            ``(1) appropriate disclosures to Congress; or
            ``(2) disclosures to an authorized official of an executive 
        agency that are deemed essential to reporting a violation of 
        United States law.
``Sec. 573. Criminal forfeiture
    ``(a) In General.--Notwithstanding any provision of State law to 
the contrary, any person or organization convicted of a violation under 
this chapter shall forfeit to the United States--
            ``(1) any property constituting, or derived from, any 
        proceeds the person or organization obtained, directly or 
        indirectly, as the result of such violation; and
            ``(2) any of the property of that person or organization 
        used, or intended to be used, in any manner or part, to commit 
        or facilitate the commission of such violation.
    ``(b) Court Action.--The court, in imposing sentence on such 
person, shall order, in addition to any other sentence imposed pursuant 
to this chapter, that the person forfeit to the United States all 
property described in this section.
    ``(c) Applicability of Other Law.--Property subject to forfeiture 
under this section, any seizure and disposition thereof, and any 
administrative or judicial proceeding in relation thereto, shall be 
governed by the provisions of section 413 of the Comprehensive Drug 
Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), other than 
subsection (d) of that section.
``Sec. 574. Scope of extraterritorial jurisdiction
    ``(a) This chapter applies to conduct occurring within the United 
States.
    ``(b) This chapter also applies to conduct occurring outside the 
United States if--
            ``(1) the offender is a natural person who is a citizen or 
        permanent resident alien of the United States, or an 
        organization organized under the laws of the United States or a 
        State or political subdivision thereof; or
            ``(2) an act in furtherance of the offense was committed in 
        the United States.
``Sec. 575. Civil remedies
    ``(a) The district courts of the United States shall have 
jurisdiction to prevent and restrain violations of section 572 of this 
chapter by issuing appropriate orders.
    ``(b) The Attorney General may institute proceedings under this 
section. Pending final determination thereof, the court may at any time 
enter such restraining orders or prohibitions, or take such other 
actions, including the acceptance of satisfactory performance bonds, as 
it shall deem proper.
    ``(c) A final judgment or decree rendered in favor of the United 
States in any criminal proceeding brought by the United States under 
this chapter shall estop the defendant from denying the essential 
allegations of the criminal offense in any subsequent civil proceeding 
brought by the United States.
``Sec. 576. Prior authorization requirement
    ``The United States may not file a charge under this chapter or use 
a violation of this chapter as a predicate offense under any other law 
without the personal approval of the Attorney General, the Deputy 
Attorney General, or the Assistant Attorney General for the Criminal 
Division of the Department of Justice or the Acting Attorney General, 
the Acting Deputy Attorney General, or the Acting Assistant Attorney 
General for the Criminal Division of the Department of Justice.
``Sec. 577. Construction with other laws
    ``This chapter shall not be construed to preempt or displace any 
other remedies, whether civil or criminal, provided by Federal, State, 
commonwealth, possession, or territorial laws that are applicable to 
the misappropriation of proprietary economic information.
``Sec. 578. Preservation of confidentiality
    ``In any prosecution or other proceeding under this chapter, the 
court shall enter such orders and take such other action as may be 
necessary and appropriate to preserve the confidentiality of 
proprietary economic information, consistent with the requirements of 
the Federal Rules of Criminal Procedure, the Federal Rules of Civil 
Procedure, the Federal Rules of Evidence, and all other applicable 
laws. An interlocutory appeal by the United States shall lie from a 
decision or order of a district court authorizing or directing the 
disclosure of proprietary economic information.
``Sec. 579. Law enforcement and intelligence activities
    ``This chapter does not prohibit, and shall not impair, otherwise 
lawful activity conducted by an agency of the United States, a State, 
or a political subdivision of a State, or an intelligence agency of the 
United States.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
part I of title 18, United States Code, is amended by inserting after 
the item relating to chapter 27 the following new item:

``28. Economic Espionage....................................     571''.
    (c) Conforming Amendment.--Section 2516(1)(a) of title 18, United 
States Code, is amended by inserting ``chapter 28 (relating to economic 
espionage),'' after ``or under the following chapters of this title:''.

SEC. 6. WIRE AND COMPUTER FRAUD.

    (a) Wire and Computer Fraud.--Section 1343 of title 18, United 
States Code, is amended--
            (1) by adding at the end the following new subsection:
    ``(b) Secret Service Jurisdiction.--The Secretary of the Treasury 
and the Attorney General are authorized to enter into an agreement 
under which the United States Secret Service may investigate certain 
offenses under this section.''.
    (b) Use of Certain Technology to Facilitate Criminal Conduct.--
            (1) Information.--The Administrative Office of the United 
        States Courts shall establish policies and procedures for the 
        inclusion in all Presentence Reports of information that 
        specifically identifies and describes any use of encryption or 
        scrambling technology that would be relevant to an enhancement 
        under section 3C1.1 (dealing with Obstructing or Impeding the 
        Administration of Justice) of the Sentencing Guidelines or to 
        offense conduct under the Sentencing Guidelines.
            (2) Compiling and report.--The United States Sentencing 
        Commission shall--
                    (A) compile and analyze any information contained 
                in documentation described in paragraph (1) relating to 
                the use of encryption or scrambling technology to 
                facilitate or conceal criminal conduct; and
                    (B) based on the information compiled and analyzed 
                under subparagraph (A), annually report to the Congress 
                on the nature and extent of the use of encryption or 
                scrambling technology to facilitate or conceal criminal 
                conduct.
    (c) Section 1029 of title 18, United States Code, is amended--by 
striking the (a)(5) in the second place it appears and replacing it 
with (a)(8); by striking the (a)(6) the second place it appears and 
replacing it with (a)(9); and by adding the following new section:
    ``(a)(10) knowingly and with intent to defraud uses, produces, 
traffics in, or possesses any device containing electronically stored 
monetary value.''.

SEC. 7. TRANSFER OF PERSONS FOUND NOT GUILTY BY REASON OF INSANITY.

    (a) Amendment of Section 4243 of Title 18.--Section 4243 of title 
18, United States Code, is amended by adding at the end the following 
new subsection:
    ``(i) Certain Persons Found Not Guilty by Reason of Insanity in the 
District of Columbia.--
            ``(1) Transfer to custody of the attorney general.--
        Notwithstanding section 301(h) of title 24 of the District of 
        Columbia Code, and notwithstanding subsection 4247(j) of this 
        title, all persons who have been committed to a hospital for 
        the mentally ill pursuant to section 301(d)(1) of title 24 of 
        the District of Columbia Code, and for whom the United States 
        has continuing financial responsibility, may be transferred to 
        the custody of the Attorney General, who shall hospitalize the 
        person for treatment in a suitable facility.
            ``(2) Application.--
                    ``(A) In general.--The Attorney General may 
                establish custody over such persons by filing an 
                application in the United States District Court for the 
                District of Columbia, demonstrating that the person to 
                be transferred is a person described in this 
                subsection.
                    ``(B) Notice.--The Attorney General shall, by any 
                means reasonably designed to do so, provide written 
                notice of the proposed transfer of custody to such 
                person or such person's guardian, legal representative, 
                or other lawful agent. The person to be transferred 
                shall be afforded an opportunity, not to exceed 15 
                days, to respond to the proposed transfer of custody, 
                and may, at the court's discretion, be afforded a 
                hearing on the proposed transfer of custody. Such 
                hearing, if granted, shall be limited to a 
                determination of whether the constitutional rights of 
                such person would be violated by the proposed transfer 
                of custody.
                    ``(C) Order.--Upon application of the Attorney 
                General, the court shall order the person transferred 
                to the custody of the Attorney General, unless, 
                pursuant to a hearing under this paragraph, the court 
                finds that the proposed transfer would violate a right 
                of such person under the United States Constitution.
                    ``(D) Effect.--Nothing in this paragraph shall be 
                construed to--
                            ``(i) create in any person a liberty 
                        interest in being granted a hearing or notice 
                        on any matter;
                            ``(ii) create in favor of any person a 
                        cause of action against the United States or 
                        any officer or employee of the United States; 
                        or
                            ``(iii) limit in any manner or degree the 
                        ability of the Attorney General to move, 
                        transfer, or otherwise manage any person 
                        committed to the custody of the Attorney 
                        General.
            ``(3) Construction with other sections.--Subsections (f) 
        and (g) and section 4247 shall apply to any person transferred 
        to the custody of the Attorney General pursuant to this 
        subsection.''.
    (b) Transfer of Records.--Notwithstanding any provision of the 
District of Columbia Code or any other provision of law, the District 
of Columbia and St. Elizabeth's Hospital--
            (1) not later than 30 days after the date of enactment of 
        this Act, shall provide to the Attorney General copies of all 
        records in the custody or control of the District or the 
        Hospital on such date of enactment pertaining to persons 
        described in section 4243(i) of title 18, United States Code 
        (as added by subsection (a));
            (2) not later than 30 days after the creation of any 
        records by employees, agents, or contractors of the District of 
        Columbia or of St. Elizabeth's Hospital pertaining to persons 
        described in section 4243(i) of title 18, United States Code, 
        provide to the Attorney General copies of all such records 
        created after the date of enactment of this Act;
            (3) shall not prevent or impede any employee, agent, or 
        contractor of the District of Columbia or of St. Elizabeth's 
        Hospital who has obtained knowledge of the persons described in 
        section 4243(i) of title 18, United States Code, in the 
        employee's professional capacity from providing that knowledge 
        to the Attorney General, nor shall civil or criminal liability 
        attach to such employees, agents, or contractors who provide 
        such knowledge; and
            (4) shall not prevent or impede interviews of persons 
        described in section 4243(i) of title 18, United States Code, 
        by representatives of the Attorney General, if such persons 
        voluntarily consent to such interviews.
    (c) Clarification of Effect on Certain Testimonial Privileges.--The 
amendments made by this section shall not be construed to affect in any 
manner any doctor-patient or psychotherapist-patient testimonial 
privilege that may be otherwise applicable to persons found not guilty 
by reason of insanity and affected by this section.
    (d) Severability.--If any provision of this section, an amendment 
made by this section, or the application of such provision or amendment 
to any person or circumstance is held to be unconstitutional, the 
remainder of this section and the amendments made by this section shall 
not be affected thereby.

SEC. 8. ESTABLISHING BOYS AND GIRLS CLUBS.

    (a) Findings and Purpose.--
            (1) Findings.--The Congress finds that--
                    (A) the Boys and Girls Clubs of America, chartered 
                by an Act of Congress on December 10, 1991, during its 
                90-year history as a national organization, has proven 
                itself as a positive force in the communities it 
                serves;
                    (B) there are 1,810 Boys and Girls Clubs facilities 
                throughout the United States, Puerto Rico, and the 
                United States Virgin Islands, serving 2,420,000 youths 
                nationwide;
                    (C) 71 percent of the young people who benefit from 
                Boys and Girls Clubs programs live in our inner cities 
                and urban areas;
                    (D) Boys and Girls Clubs are locally run and have 
                been exceptionally successful in balancing public funds 
                with private sector donations and maximizing community 
                involvement;
                    (E) Boys and Girls Clubs are located in 289 public 
                housing sites across the Nation;
                    (F) public housing projects in which there is an 
                active Boys and Girls Club have experienced a 25 
                percent reduction in the presence of crack cocaine, a 
                22 percent reduction in overall drug activity, and a 13 
                percent reduction in juvenile crime;
                    (G) these results have been achieved in the face of 
                national trends in which overall drug use by youth has 
                increased 105 percent since 1992 and 10.9 percent of 
                the Nation's young people use drugs on a monthly basis; 
                and
                    (H) many public housing projects and other 
                distressed areas are still underserved by Boys and 
                Girls Clubs.
            (2) Purpose.--It is the purpose of this section to provide 
        adequate resources in the form of seed money for the Boys and 
        Girls Clubs of America to establish 1,000 additional local Boys 
        and Girls Clubs in public housing projects and other distressed 
        areas by 2001.
    (b) Definitions.--For purposes of this section--
            (1) the terms ``public housing'' and ``project'' have the 
        same meanings as in section 3(b) of the United States Housing 
        Act of 1937; and
            (2) the term ``distressed area'' means an urban, suburban, 
        or rural area with a high percentage of high risk youth as 
        defined in section 509A of the Public Health Service Act (42 
        U.S.C. 290aa-8(f)).
    (c) Establishment.--
            (1) In general.--For each of the fiscal years 1997, 1998, 
        1999, 2000, and 2001, the Director of the Bureau of Justice 
        Assistance of the Department of Justice shall provide a grant 
        to the Boys and Girls Clubs of America for the purpose of 
        establishing Boys and Girls Clubs in public housing projects 
        and other distressed areas.
            (2) Contracting authority.--Where appropriate, the 
        Secretary of Housing and Urban Development, in consultation 
        with the Attorney General, shall enter into contracts with the 
        Boys and Girls Clubs of America to establish clubs pursuant to 
        the grants under paragraph (1).
    (d) Report.--Not later than May 1 of each fiscal year for which 
amounts are made available to carry out this Act, the Attorney General 
shall submit to the Committees on the Judiciary of the Senate and the 
House of Representatives a report that details the progress made under 
this Act in establishing Boys and Girls Clubs in public housing 
projects and other distressed areas, and the effectiveness of the 
programs in reducing drug abuse and juvenile crime.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section--
                    (A) $20,000,000 for fiscal year 1997;
                    (B) $20,000,000 for fiscal year 1998;
                    (C) $20,000,000 for fiscal year 1999;
                    (D) $20,000,000 for fiscal year 2000; and
                    (E) $20,000,000 for fiscal year 2001.
            (2) Violent crime reduction trust fund.--The sums 
        authorized to be appropriated by this subsection may be made 
        from the Violent Crime Reduction Trust Fund.
            Attest:

                                                             Secretary.
104th CONGRESS

  2d Session

                               H. R. 3723

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                               AMENDMENT

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