[Congressional Record Volume 143, Number 157 (Sunday, November 9, 1997)]
[Senate]
[Pages S12311-S12312]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LAUTENBERG (for himself, Mr. D'Amato, Mr. Moynihan, and 
        Mr. Torricelli):
  S. 1512. A bill to amend section 659 of title 18, United States Code; 
to the Committee on the Judiciary.
  Mr. LAUTENBERG. Mr. President, I rise to introduce legislation with 
Senators D'Amato, Moynihan, and Torricelli that addresses the growing 
problem of cargo theft. This crime, which covers the interstate theft 
of cargo from ports, airports, rails, and roads, causes losses as high 
as $10 billion a year in the United States. The ``Cargo Theft 
Deterrence Act of 1997'' increases the incentive for prosecutors to 
pursue this crime and for defendants to cooperate with law enforcement. 
Furthermore, this legislation clarifies what is covered by existing 
law.
  Cargo theft continues unabated as criminals discover that the risks 
of getting caught and prosecuted are far lower than for comparably 
lucrative crimes. This tends to be an under-reported crime that has 
received a relatively small amount of attention by Congress. I believe 
this must change. Mr. President, let me cite a few statistics that 
should demonstrate to my colleagues the seriousness of this crime and 
why we should act. In 1994, the dollar value in goods stolen from a 
single tractor-trailer rig in New Jersey was higher than all of the 
bank robberies combined in my state for that year.
  While certain regions of the United States, such as New Jersey/New 
York, Southern California, and South Florida, sustain higher cargo 
theft losses than others, consumers nationwide are affected. For 
example, one industry group estimated that computers cost an average of 
$150 more because of cargo theft, and that approximately $3.5 billion 
of computers, chips, and software are stolen annually. The risk 
management director for one computer company said that ``it's a rare 
company that hasn't ever lost a truck.'' Most people do not realize 
that the value of computer chips per pound is higher than gold. And, 
unfortunately, the resale value of stolen items is much higher than 
what one might believe. Many of these goods end up overseas while 
others are sold in the same city.
  Mr. President, virtually no product is safe from this crime. While 
theft of computers and computer products, fragrances, and designer 
clothes are not uncommon, items ranging from frozen seafood, pineapple 
pulp, cough drops, refried beans, and insulation have been reported 
stolen.
  The industry maxim of ``cargo at rest is cargo at risk'' is no longer 
a truism--all cargo is a risk--and contrary to the belief that this is 
a victimless crime, an alarming number of tractor trailers have been 
hijacked. This occurred just several weeks ago in New Jersey, when a 
truck was hijacked right after leaving a port. Fortunately the driver 
was unharmed though one million dollars' worth of clothes were stolen. 
Tighter measures taken by port authorities and manufacturers at their 
plants have caused such hijackings to increase.
  Mr. President, the need for this legislation is not a criticism of 
our law enforcement. The Port Authority of New York & New Jersey, for 
example, has made significant strides at curbing this crime in the New 
Jersey/New York region. Unfortunately, existing law does not provide an 
adequate deterrent because the penalties are not sufficiently severe 
nor is there an incentive for defendants to cooperate with prosecutors.
  Let me explain, Mr. President, what my legislation will do. It will 
bring efforts to fight this crime into the next century. Enacted in its 
earliest form in 1913, the statute that my bill modifies covers such 
older modes of transportation and distribution of cargo as wagons, 
depots, and steamboats. My bill recognizes the advances we have made in 
intermodal connections and transportation by adding such terms as 
``trailer,'' ``air cargo container,'' and ``freight consolidation 
facility.'' The days of cargo theft from wagons are gone. Furthermore, 
the Cargo Theft Deterrence Act broadens the statute's coverage to 
clarify that cargo is moving as an interstate or foreign shipment at 
all points between the point of origin and the final destination. 
Merely because a container is temporarily at rest awaiting transport to 
its final destination should not prevent law enforcement from 
prosecuting a defendant under this statute. Existing law currently 
covers cargo moving as a part of interstate or foreign commerce.
  My legislation increases the penalties for convictions under this 
statute. Current law provides that those convicted of this provision 
shall be fined or imprisoned not more than one year, or both. My bill 
increases this maximum prison term to three. This statute, as currently 
written, requires the government to prove that not only did a defendant 
embezzle, steal, or unlawfully take the cargo, it must show that he did 
so with the intent to convert to his own use. This seems duplicative at 
best and is an unnecessary hurdle for the prosecutor to demonstrate. 
The Cargo Theft Deterrence Act eliminates the term, ``with intent to 
convert to his own use'' from this statute. Since we have removed this 
intent language, we have created the affirmative defense that the 
defendant bought, received, or possessed the cargo with the sole intent 
of reporting the matter to either law enforcement or the owner of the 
cargo.
  The Sentencing Commission is directed to provide a sentencing 
enhancement of two levels for this crime similar to enhancements made 
for offenses involving organized schemes to steal vehicles or if the 
offense involved more than minimal planning. This Act also requires the 
Attorney General to report annually to Congress on the progress made by 
law enforcement investigating and prosecuting this crime. Additionally, 
upon motion by the Attorney General, a court may reduce the penalties 
if a defendant cooperates with law enforcement. Use of informants is 
essential in reducing this crime and this provision creates an 
appropriate incentive.

  Finally, Mr. President, my legislation creates a Cargo Theft Advisory 
Committee that will study and make recommendations about the 
establishment of a national data base of information about this crime. 
A constant complaint by industry and law enforcement is that there is a 
lack of good data about cargo theft. Industry tends to under-report it 
and law enforcement frequently classifies it in such categories as 
theft, robbery, hijacking, and burglary. This Committee, which shall 
exist for one year and report its findings and recommendations to 
Congress and the President, will also review the desirability of 
creating a centralized office within the federal government to oversee 
efforts designed to curb cargo theft and to increase coordination with 
the private sector, and state and local law enforcement.
  Mr. President, I thought an advisory committee was the most prudent 
course because legitimate questions have been raised about whether this 
data base should be maintained by the public or private sector, who 
should be able to access it, and what information should be collected, 
yet remain confidential. Moreover, there are several logical agencies 
that could house an office on cargo security so I thought it is 
appropriate to have cargo security experts in both the public and 
private sector make this recommendation.
  Mr. President, I look forward to the Judiciary Committee's 
consideration of this legislation and urge my colleagues to support 
this first step in addressing this crime that affects all Americans. I 
ask unanimous consent that the text of the bill be printed in the 
Record.

[[Page S12312]]

  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1512

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Cargo Theft Deterrence Act 
     of 1997''.

     SEC. 2. INTERSTATE OR FOREIGN SHIPMENTS BY CARRIER.

       (a) In General.--Section 659 of title 18, United States 
     Code, is amended--
       (1) by striking ``with intent to convert to his own use'' 
     each place that term appears;
       (2) in the first undesignated paragraph--
       (A) by inserting ``trailer,'' after ``motortruck,'';
       (B) by inserting ``air cargo container,'' after 
     ``aircraft,''; and
       (C) by inserting ``, or from any intermodal container, 
     trailer, container freight station, warehouse, or freight 
     consolidation facility,'' after ``air navigation facility'';
       (3) in the fifth undesignated paragraph--
       (A) by striking ``one year'' and inserting ``3 years''; and
       (B) by adding at the end the following: ``Notwithstanding 
     the preceding sentence, the court may, upon motion of the 
     Attorney General, reduce any penalty imposed under this 
     paragraph with respect to any defendant who provides 
     information leading to the arrest and conviction of any 
     dealer or wholesaler of stolen goods or chattels moving as or 
     which are a part of or which constitute an interstate or 
     foreign shipment.'';
       (4) in the penultimate undesignated paragraph, by inserting 
     after the first sentence the following: ``For purposes of 
     this section, goods and chattel shall be construed to be 
     moving as an interstate or foreign shipment at all points 
     between the point of origin and the final destination (as 
     evidence by the waybill or other shipping document of the 
     shipment), regardless of any temporary stop while awaiting 
     transshipment or otherwise.''; and
       (5) by adding at the end the following:
       ``It shall be an affirmative defense (on which the 
     defendant bears the burden of persuasion by a preponderance 
     of the evidence) to an offense under this section that the 
     defendant bought, received, or possessed the goods, chattels, 
     money, or baggage at issue with the sole intent to report the 
     matter to an appropriate law enforcement officer or to the 
     owner of the goods, chattels, money, or baggage.''.
       (b) Federal Sentencing Guidelines.--Pursuant to section 994 
     of title 28, United States Code, the United States Sentencing 
     Commission shall amend the Federal sentencing guidelines to 
     provide a sentencing enhancement of not less than 2 levels 
     for any offense under section 659 of title 18, United States 
     Code, as amended by this section.
       (c) Report to Congress.--The Attorney General shall 
     annually submit to Congress a report, which shall include an 
     evaluation of law enforcement activities relating to the 
     investigation and prosecution of offenses under section 659 
     of title 18, United States Code, as amended by this section.

     SEC. 3. ADVISORY COMMITTEE ON CARGO THEFT.

       (a) Establishment.--
       (1) In general.--There is established a Committee to be 
     known as the Advisory Committee on Cargo Theft (in this 
     section referred to as the ``Committee'').
       (2) Membership.--
       (A) Composition.--The Committee shall be composed of 6 
     members, who shall be appointed by the President, of whom--
       (i) 1 shall be an officer or employee of the Department of 
     Justice;
       (ii) 1 shall be an officer or employee of the Department of 
     Transportation;
       (iii) 1 shall be an officer or employee of the Department 
     of the Treasury; and
       (iv) 3 shall be individuals from the private sector who are 
     experts in cargo security.
       (B) Date.--The appointments of the initial members of the 
     Committee shall be made not later than 3 days after the date 
     of enactment of this Act.
       (3) Period of appointment; vacancies.--Each member of the 
     Committee shall be appointed for the life of the Committee. 
     Any vacancy in the Committee shall not affect its powers, but 
     shall be filled in the same manner as the original 
     appointment.
       (4) Initial meeting.--Not later than 15 days after the date 
     on which all initial members of the Committee have been 
     appointed, the Committee shall hold its first meeting.
       (5) Meetings.--The Committee shall meet, not less 
     frequently than quarterly, at the call of the Chairperson.
       (6) Quorum.--A majority of the members of the Committee 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (7) Chairperson.--The President shall select 1 member of 
     the Committee to serve as the Chairperson of the Committee.
       (b) Duties.--
       (1) Study.--The Committee shall conduct a thorough study 
     of, and develop recommendations with respect to, all matters 
     relating to--
       (A) the establishment of a national computer database for 
     the collection and dissemination of information relating to 
     violations of section 659 of title 18, United States Code 
     (as added by this Act); and
       (B) the establishment of an office within the Federal 
     Government to promote cargo security and to increase 
     coordination between the Federal Government and the private 
     sector with respect to cargo security.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Committee shall submit to the 
     President and to Congress a report, which shall contain a 
     detailed statement of results of the study and the 
     recommendations of the Committee under paragraph (1).
       (c) Powers.--
       (1) Hearings.--The Committee may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Committee considers advisable to 
     carry out the purposes of this section.
       (2) Information from federal agencies.--The Committee may 
     secure directly from any Federal department or agency such 
     information as the Committee considers necessary to carry out 
     the provisions of this section. Upon request of the 
     Chairperson of the Committee, the head of such department or 
     agency shall furnish such information to the Committee.
       (3) Postal services.--The Committee may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (4) Gifts.--The Committee may accept, use, and dispose of 
     gifts or donations of services or property.
       (d) Personnel Matters.--
       (1) Compensation of members.--
       (A) Non-federal members.--Each member of the Committee who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Committee.
       (B) Federal members.--Each member of the Committee who is 
     an officer or employee of the United States shall serve 
     without compensation in addition to that received for their 
     service as an officer or employee of the United States.
       (2) Travel expenses.--The members of the Committee shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Committee.
       (3) Staff.--
       (A) In general.--The Chairperson of the Committee may, 
     without regard to the civil service laws and regulations, 
     appoint and terminate an executive director and such other 
     additional personnel as may be necessary to enable the 
     Committee to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     Committee.
       (B) Compensation.--The Chairperson of the Committee may fix 
     the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director and other personnel may not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     such title.
       (4) Detail of government employees.--Any Federal Government 
     employee may be detailed to the Committee without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (5) Procurement of temporary and intermittent services.--
     The Chairperson of the Committee may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.
       (e) Termination.--The Committee shall terminate 90 days 
     after the date on which the Committee submits the report 
     under subsection (b)(2).
       (f) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated 
     such sums as may be necessary to the Committee to carry out 
     the purposes of this section.
       (2) Availability.--Any sums appropriated under the 
     authorization contained in this section shall remain 
     available, without fiscal year limitation, until expended.

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