[Congressional Record Volume 142, Number 129 (Wednesday, September 18, 1996)]
[Senate]
[Pages S10862-S10865]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     ECONOMIC ESPIONAGE ACT OF 1996

                                 ______
                                 

                 SPECTER (AND KOHL) AMENDMENT NO. 5384

  Mr. STEVENS (for Mr. Specter for himself and Mr. Kohl) proposed an 
amendment to the bill (H.R. 3723) to amend title 18, United States 
Code, to protect proprietary economic information, and for other 
purposes; as follows:
       Strike all after the enacting clause and insert the 
     following:

     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

[[Page S10863]]

     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 FOREIGN 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

[[Page S10864]]

     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:''.
                                 ______
                                 

                 GRASSLEY (AND KYL) AMENDMENT NO. 5835

  Mr. STEVENS (for Mr. Grassley, for himself and Mr. Kyl) proposed an 
amendment to amendment No. 5384 to the bill, H.R. 3723, supra; as 
follows:

       At the appropriate place, add the following new section:
       Sec. 6. (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.''
                                 ______
                                 

                        HATCH AMENDMENT NO. 5386

  Mr. STEVENS (for Mr. Hatch) proposed an amendment to amendment No. 
5384 to the bill, H.R. 3723, supra; as follows:

       At the appropriate place in the bill, add the following:

     SEC. ____. 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

[[Page S10865]]

     this section and the amendments made by this section shall 
     not be affected thereby.
                                 ______
                                 

                  HATCH (AND KOHL) AMENDMENT NO. 5387

  Mr. STEVENS (for Mr. Hatch, for himself and Mr. Kohl) proposed an 
amendment to amendment No. 5384 proposed by Mr. Specter to the bill, 
H.R. 3723, supra; as follows:

       At the appropriate place in the bill, add the following:

     SEC. ____. 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.

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