[Congressional Record Volume 144, Number 141 (Friday, October 9, 1998)]
[House]
[Pages H10302-H10309]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      INTERNATIONAL ANTI-BRIBERY AND FAIR COMPETITION ACT OF 1998

  Mr. BLILEY. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4353) to amend the Securities Exchange Act of 1934 and the 
Foreign Corrupt Practices Act of 1977 to improve the competitiveness of 
American business and promote foreign commerce, and for other purposes, 
as amended.
  The Clerk read as follows:

                               H.R. 4353

       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 ``International Anti-Bribery 
     and Fair Competition Act of 1998''.

     SEC. 2. AMENDMENTS TO THE FOREIGN CORRUPT PRACTICES ACT 
                   GOVERNING ISSUERS.

       (a) Prohibited Conduct.--Section 30A(a) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78dd-1(a)) is amended--
       (1) by amending subparagraph (A) of paragraph (1) to read 
     as follows:
       ``(A)(i) influencing any act or decision of such foreign 
     official in his official capacity, (ii) inducing such foreign 
     official to do or omit to do any act in violation of the 
     lawful duty of such official, or (iii) securing any improper 
     advantage; or'';
       (2) by amending subparagraph (A) of paragraph (2) to read 
     as follows:
       ``(A)(i) influencing any act or decision of such party, 
     official, or candidate in its or his official capacity, (ii) 
     inducing such party, official, or candidate to do or omit to 
     do an act in violation of the lawful duty of such party, 
     official, or candidate, or (iii) securing any improper 
     advantage; or''; and
       (3) by amending subparagraph (A) of paragraph (3) to read 
     as follows:
       ``(A)(i) influencing any act or decision of such foreign 
     official, political party, party official, or candidate in 
     his or its official capacity, (ii) inducing such foreign 
     official, political party, party official, or candidate to do 
     or omit to do any act in violation of the lawful duty of such 
     foreign official, political party, party official, or 
     candidate, or (iii) securing any improper advantage; or''.
       (b) Officials of International Organizations.--Paragraph 
     (1) of section 30A(f) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78dd-1(f)(1)) is amended to read as follows:
       ``(1)(A) The term `foreign official' means any officer or 
     employee of a foreign government or any department, agency, 
     or instrumentality thereof, or of a public international 
     organization, or any person acting in an official capacity 
     for or on behalf of any such government or department, 
     agency, or instrumentality, or for or on behalf of any such 
     public international organization.
       ``(B) For purposes of subparagraph (A), the term `public 
     international organization' means--
       ``(i) an organization that is designated by Executive order 
     pursuant to section 1 of the International Organizations 
     Immunities Act (22 U.S.C. 288); or
       ``(ii) any other international organization that is 
     designated by the President by Executive order for the 
     purposes of this section, effective as of the date of 
     publication of such order in the Federal Register.''.
       (c) Alternative Jurisdiction Over Acts Outside the United 
     States.--Section 30A of the Securities Exchange Act of 1934 
     (15 U.S.C. 78dd-1) is amended--
       (1) by adding at the end the following:
       ``(g) Alternative Jurisdiction.--
       ``(1) It shall also be unlawful for any issuer organized 
     under the laws of the United States, or a State, territory, 
     possession, or commonwealth of the United States or a 
     political subdivision thereof and which has a class of 
     securities registered pursuant to section 12 of this title or 
     which is required to file reports under section 15(d) of this 
     title, or for any United States person that is an officer, 
     director, employee, or agent of such issuer or a stockholder 
     thereof acting on behalf of such issuer, to corruptly do any 
     act outside the United States in furtherance of an offer, 
     payment, promise to pay, or authorization of the payment of 
     any money, or offer, gift, promise to give, or authorization 
     of the giving of anything of value to any of the persons or 
     entities set forth in paragraphs (1), (2), and (3) of 
     subsection (a) of this section for the purposes set forth 
     therein, irrespective of whether such issuer or such officer, 
     director, employee, agent, or stockholder makes use of the 
     mails or any means or instrumentality of interstate commerce 
     in furtherance of such offer, gift, payment, promise, or 
     authorization.
       ``(2) As used in this subsection, the term `United States 
     person' means a national of the United States (as defined in 
     section 101 of the Immigration and Nationality Act (8 U.S.C. 
     1101)) or any corporation, partnership, association, joint-
     stock company, business trust, unincorporated organization, 
     or sole proprietorship organized under the laws of the United 
     States or any State, territory, possession, or commonwealth 
     of the United States, or any political subdivision 
     thereof.'';
       (2) in subsection (b), by striking ``Subsection (a)'' and 
     inserting ``Subsections (a) and (g)''; and
       (3) in subsection (c), by striking ``subsection (a)'' and 
     inserting ``subsection (a) or (g)''.
       (d) Penalties.--Section 32(c) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78ff(c)) is amended--
       (1) in paragraph (1)(A), by striking ``section 30A(a)'' and 
     inserting ``subsection (a) or (g) of section 30A'';
       (2) in paragraph (1)(B), by striking ``section 30A(a)'' and 
     inserting ``subsection (a) or (g) of section 30A''; and
       (3) by amending paragraph (2) to read as follows:
       ``(2)(A) Any officer, director, employee, or agent of an 
     issuer, or stockholder acting on behalf of such issuer, who 
     willfully violates subsection (a) or (g) of section 30A of 
     this title shall be fined not more than $100,000, or 
     imprisoned not more than 5 years, or both.
       ``(B) Any officer, director, employee, or agent of an 
     issuer, or stockholder acting on behalf of such issuer, who 
     violates subsection (a) or (g) of section 30A of this title 
     shall be subject to a civil penalty of not more than $10,000 
     imposed in an action brought by the Commission.''.

     SEC. 3. AMENDMENTS TO THE FOREIGN CORRUPT PRACTICES ACT 
                   GOVERNING DOMESTIC CONCERNS.

       (a) Prohibited Conduct.--Section 104(a) of the Foreign 
     Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2(a)) is 
     amended--
       (1) by amending subparagraph (A) of paragraph (1) to read 
     as follows:
       ``(A)(i) influencing any act or decision of such foreign 
     official in his official capacity, (ii) inducing such foreign 
     official to do or omit to do any act in violation of the 
     lawful duty of such official, or (iii) securing any improper 
     advantage; or'';
       (2) by amending subparagraph (A) of paragraph (2) to read 
     as follows:
       ``(A)(i) influencing any act or decision of such party, 
     official, or candidate in its or his official capacity, (ii) 
     inducing such party, official, or candidate to do or omit to 
     do an act in violation of the lawful duty of such party, 
     official, or candidate, or (iii) securing any improper 
     advantage; or''; and
       (3) by amending subparagraph (A) of paragraph (3) to read 
     as follows:
       ``(A)(i) influencing any act or decision of such foreign 
     official, political party, party official, or candidate in 
     his or its official capacity, (ii) inducing such foreign 
     official, political party, party official, or candidate to do 
     or omit to do any act in violation of the lawful duty of such 
     foreign official, political party, party official, or 
     candidate, or (iii) securing any improper advantage; or''.
       (b) Penalties.--Section 104(g) of the Foreign Corrupt 
     Practices Act of 1977 (15 U.S.C. 78dd-2(g)) is amended--
       (1) by amending subsection (g)(1) to read as follows:
       ``(g)(1)(A) Penalties.--Any domestic concern that is not a 
     natural person and that violates subsection (a) or (i) of 
     this section shall be fined not more than $2,000,000.
       ``(B) Any domestic concern that is not a natural person and 
     that violates subsection (a) or (i) of this section shall be 
     subject to a civil penalty of not more than $10,000 imposed 
     in an action brought by the Attorney General.''; and
       (2) by amending paragraph (2) to read as follows:
       ``(2)(A) Any natural person that is an officer, director, 
     employee, or agent of a domestic concern, or stockholder 
     acting on behalf of such domestic concern, who willfully 
     violates subsection (a) or (i) of this section shall be fined 
     not more than $100,000 or imprisoned not more than 5 years, 
     or both.
       ``(B) Any natural person that is an officer, director, 
     employee, or agent of a domestic concern, or stockholder 
     acting on behalf of such domestic concern, who violates 
     subsection (a) or (i) of this section shall be subject to a 
     civil penalty of not more than $10,000 imposed in an action 
     brought by the Attorney General.''.
       (c) Officials of International Organizations.--Paragraph 
     (2) of section 104(h) of the Foreign Corrupt Practices Act of 
     1977 (15 U.S.C. 78dd-2(h)) is amended to read as follows:

[[Page H10303]]

       ``(2)(A) The term `foreign official' means any officer or 
     employee of a foreign government or any department, agency, 
     or instrumentality thereof, or of a public international 
     organization, or any person acting in an official capacity 
     for or on behalf of any such government or department, 
     agency, or instrumentality, or for or on behalf of any such 
     public international organization.
       ``(B) For purposes of subparagraph (A), the term `public 
     international organization' means--
       ``(i) an organization that is designated by Executive order 
     pursuant to section 1 of the International Organizations 
     Immunities Act (22 U.S.C. 288); or
       ``(ii) any other international organization that is 
     designated by the President by Executive order for the 
     purposes of this section, effective as of the date of 
     publication of such order in the Federal Register.''.
       (d) Alternative Jurisdiction Over Acts Outside the United 
     States.--Section 104 of the Foreign Corrupt Practices Act of 
     1977 (15 U.S.C. 78dd-2) is further amended--
       (1) by adding at the end the following:
       ``(i) Alternative Jurisdiction.--
       ``(1) It shall also be unlawful for any United States 
     person to corruptly do any act outside the United States in 
     furtherance of an offer, payment, promise to pay, or 
     authorization of the payment of any money, or offer, gift, 
     promise to give, or authorization of the giving of anything 
     of value to any of the persons or entities set forth in 
     paragraphs (1), (2), and (3) of subsection (a), for the 
     purposes set forth therein, irrespective of whether such 
     United States person makes use of the mails or any means or 
     instrumentality of interstate commerce in furtherance of such 
     offer, gift, payment, promise, or authorization.
       ``(2) As used in this subsection, the term `United States 
     person' means a national of the United States (as defined in 
     section 101 of the Immigration and Nationality Act (8 U.S.C. 
     1101)) or any corporation, partnership, association, joint-
     stock company, business trust, unincorporated organization, 
     or sole proprietorship organized under the laws of the United 
     States or any State, territory, possession, or commonwealth 
     of the United States, or any political subdivision 
     thereof.'';
       (2) in subsection (b), by striking ``Subsection (a)'' and 
     inserting ``Subsections (a) and (i)'';
       (3) in subsection (c), by striking ``subsection (a)'' and 
     inserting ``subsection (a) or (i)''; and
       (4) in subsection (d)(1), by striking ``subsection (a)'' 
     and inserting ``subsection (a) or (i)''.
       (e) Technical Amendment.--Section 104(h)(4)(A) of the 
     Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-
     2(h)(4)(A)) is amended by striking ``For purposes of 
     paragraph (1), the'' and inserting ``The''.

     SEC. 4. AMENDMENTS TO THE FOREIGN CORRUPT PRACTICES ACT 
                   GOVERNING OTHER PERSONS.

       Title I of the Foreign Corrupt Practices Act of 1977 is 
     amended by inserting after section 104 (15 U.S.C. 78dd-2) the 
     following new section:

     ``SEC. 104A. PROHIBITED FOREIGN TRADE PRACTICES BY PERSONS 
                   OTHER THAN ISSUERS OR DOMESTIC CONCERNS.

       ``(a) Prohibition.--It shall be unlawful for any person 
     other than an issuer that is subject to section 30A of the 
     Securities Exchange Act of 1934 or a domestic concern (as 
     defined in section 104 of this Act), or for any officer, 
     director, employee, or agent of such person or any 
     stockholder thereof acting on behalf of such person, while in 
     the territory of the United States, corruptly to make use of 
     the mails or any means or instrumentality of interstate 
     commerce or to do any other act in furtherance of an offer, 
     payment, promise to pay, or authorization of the payment of 
     any money, or offer, gift, promise to give, or authorization 
     of the giving of anything of value to--
       ``(1) any foreign official for purposes of--
       ``(A)(i) influencing any act or decision of such foreign 
     official in his official capacity, (ii) inducing such foreign 
     official to do or omit to do any act in violation of the 
     lawful duty of such official, or (iii) securing any improper 
     advantage; or
       ``(B) inducing such foreign official to use his influence 
     with a foreign government or instrumentality thereof to 
     affect or influence any act or decision of such government or 
     instrumentality,

     in order to assist such person in obtaining or retaining 
     business for or with, or directing business to, any person;
       ``(2) any foreign political party or official thereof or 
     any candidate for foreign political office for purposes of--
       ``(A)(i) influencing any act or decision of such party, 
     official, or candidate in its or his official capacity, (ii) 
     inducing such party, official, or candidate to do or omit to 
     do an act in violation of the lawful duty of such party, 
     official, or candidate, or (iii) securing any improper 
     advantage; or
       ``(B) inducing such party, official, or candidate to use 
     its or his influence with a foreign government or 
     instrumentality thereof to affect or influence any act or 
     decision of such government or instrumentality,

     in order to assist such person in obtaining or retaining 
     business for or with, or directing business to, any person; 
     or
       ``(3) any person, while knowing that all or a portion of 
     such money or thing of value will be offered, given, or 
     promised, directly or indirectly, to any foreign official, to 
     any foreign political party or official thereof, or to any 
     candidate for foreign political office, for purposes of--
       ``(A)(i) influencing any act or decision of such foreign 
     official, political party, party official, or candidate in 
     his or its official capacity, (ii) inducing such foreign 
     official, political party, party official, or candidate to do 
     or omit to do any act in violation of the lawful duty of such 
     foreign official, political party, party official, or 
     candidate, or (iii) securing any improper advantage; or
       ``(B) inducing such foreign official, political party, 
     party official, or candidate to use his or its influence with 
     a foreign government or instrumentality thereof to affect or 
     influence any act or decision of such government or 
     instrumentality,

     in order to assist such person in obtaining or retaining 
     business for or with, or directing business to, any person.
       ``(b) Exception for Routine Governmental Action.--
     Subsection (a) of this section shall not apply to any 
     facilitating or expediting payment to a foreign 
     official, political party, or party official the purpose 
     of which is to expedite or to secure the performance of a 
     routine governmental action by a foreign official, 
     political party, or party official.
       ``(c) Affirmative Defenses.--It shall be an affirmative 
     defense to actions under subsection (a) of this section 
     that--
       ``(1) the payment, gift, offer, or promise of anything of 
     value that was made, was lawful under the written laws and 
     regulations of the foreign official's, political party's, 
     party official's, or candidate's country; or
       ``(2) the payment, gift, offer, or promise of anything of 
     value that was made, was a reasonable and bona fide 
     expenditure, such as travel and lodging expenses, incurred by 
     or on behalf of a foreign official, party, party official, or 
     candidate and was directly related to--
       ``(A) the promotion, demonstration, or explanation of 
     products or services; or
       ``(B) the execution or performance of a contract with a 
     foreign government or agency thereof.
       ``(d) Injunctive Relief.--
       ``(1) When it appears to the Attorney General that any 
     person to which this section applies, or officer, director, 
     employee, agent, or stockholder thereof, is engaged, or about 
     to engage, in any act or practice constituting a violation of 
     subsection (a) of this section, the Attorney General may, in 
     his discretion, bring a civil action in an appropriate 
     district court of the United States to enjoin such act or 
     practice, and upon a proper showing, a permanent injunction 
     or a temporary restraining order shall be granted without 
     bond.
       ``(2) For the purpose of any civil investigation which, in 
     the opinion of the Attorney General, is necessary and proper 
     to enforce this section, the Attorney General or his designee 
     are empowered to administer oaths and affirmations, subpoena 
     witnesses, take evidence, and require the production of any 
     books, papers, or other documents which the Attorney General 
     deems relevant or material to such investigation. The 
     attendance of witnesses and the production of documentary 
     evidence may be required from any place in the United States, 
     or any territory, possession, or commonwealth of the United 
     States, at any designated place of hearing.
       ``(3) In case of contumacy by, or refusal to obey a 
     subpoena issued to, any person, the Attorney General may 
     invoke the aid of any court of the United States within the 
     jurisdiction of which such investigation or proceeding is 
     carried on, or where such person resides or carries on 
     business, in requiring the attendance and testimony of 
     witnesses and the production of books, papers, or other 
     documents. Any such court may issue an order requiring such 
     person to appear before the Attorney General or his designee, 
     there to produce records, if so ordered, or to give testimony 
     touching the matter under investigation. Any failure to obey 
     such order of the court may be punished by such court as a 
     contempt thereof.
       ``(4) All process in any such case may be served in the 
     judicial district in which such person resides or may be 
     found. The Attorney General may make such rules relating to 
     civil investigations as may be necessary or appropriate to 
     implement the provisions of this subsection.
       ``(e) Penalties.--
       ``(1)(A) Any juridical person that violates subsection (a) 
     of this section shall be fined not more than $2,000,000.
       ``(B) Any juridical person that violates subsection (a) of 
     this section shall be subject to a civil penalty of not more 
     than $10,000 imposed in an action brought by the Attorney 
     General.
       ``(2)(A) Any natural person who willfully violates 
     subsection (a) of this section shall be fined not more than 
     $100,000 or imprisoned not more than 5 years, or both.
       ``(B) Any natural person who violates subsection (a) of 
     this section shall be subject to a civil penalty of not more 
     than $10,000 imposed in an action brought by the Attorney 
     General.
       ``(3) Whenever a fine is imposed under paragraph (2) upon 
     any officer, director, employee, agent, or stockholder of a 
     person, such fine may not be paid, directly or indirectly, by 
     such person.
       ``(f) Definitions.--For purposes of this section:
       ``(1) The term `person', when referring to an offender, 
     means any natural person other

[[Page H10304]]

     than a national of the United States (as defined in section 
     101 of the Immigration and Nationality Act (8 U.S.C. 1101) or 
     any corporation, partnership, association, joint-stock 
     company, business trust, unincorporated organization, or sole 
     proprietorship organized under the law of a foreign nation or 
     a political subdivision thereof.
       ``(2)(A) The term `foreign official' means any officer or 
     employee of a foreign government or any department, agency, 
     or instrumentality thereof, or of a public international 
     organization, or any person acting in an official capacity 
     for or on behalf of any such government or department, 
     agency, or instrumentality, or for or on behalf of any such 
     public international organization.
       ``(B) For purposes of subparagraph (A), the term `public 
     international organization' means--
       ``(i) an organization that is designated by Executive order 
     pursuant to section 1 of the International Organizations 
     Immunities Act (22 U.S.C. 288); or
       ``(ii) any other international organization that is 
     designated by the President by Executive order for the 
     purposes of this section, effective as of the date of 
     publication of such order in the Federal Register.
       ``(3)(A) A person's state of mind is knowing, with respect 
     to conduct, a circumstance or a result if--
       ``(i) such person is aware that such person is engaging in 
     such conduct, that such circumstance exists, or that such 
     result is substantially certain to occur; or
       ``(ii) such person has a firm belief that such circumstance 
     exists or that such result is substantially certain to occur.
       ``(B) When knowledge of the existence of a particular 
     circumstance is required for an offense, such knowledge is 
     established if a person is aware of a high probability of the 
     existence of such circumstance, unless the person actually 
     believes that such circumstance does not exist.
       ``(4)(A) The term `routine governmental action' means only 
     an action which is ordinarily and commonly performed by a 
     foreign official in--
       ``(i) obtaining permits, licenses, or other official 
     documents to qualify a person to do business in a foreign 
     country;
       ``(ii) processing governmental papers, such as visas and 
     work orders;
       ``(iii) providing police protection, mail pick-up and 
     delivery, or scheduling inspections associated with contract 
     performance or inspections related to transit of goods across 
     country;
       ``(iv) providing phone service, power and water supply, 
     loading and unloading cargo, or protecting perishable 
     products or commodities from deterioration; or
       ``(v) actions of a similar nature.
       ``(B) The term `routine governmental action' does not 
     include any decision by a foreign official whether, or on 
     what terms, to award new business to or to continue business 
     with a particular party, or any action taken by a foreign 
     official involved in the decision-making process to encourage 
     a decision to award new business to or continue business with 
     a particular party.
       ``(5) The term `interstate commerce' means trade, commerce, 
     transportation, or communication among the several States, or 
     between any foreign country and any State or between any 
     State and any place or ship outside thereof, and such term 
     includes the intrastate use of--
       ``(A) a telephone or other interstate means of 
     communication, or
       ``(B) any other interstate instrumentality.''.

     SEC. 5. TREATMENT OF INTERNATIONAL ORGANIZATIONS PROVIDING 
                   COMMERCIAL COMMUNICATIONS SERVICES.

       (a) Definition.--For purposes of this section:
       (1) International organization providing commercial 
     communications services.--The term ``international 
     organization providing commercial communications services'' 
     means--
       (A) the International Telecommunications Satellite 
     Organization established pursuant to the Agreement Relating 
     to the International Telecommunications Satellite 
     Organization; and
       (B) the International Mobile Satellite Organization 
     established pursuant to the Convention on the International 
     Maritime Satellite Organization.
       (2) Pro-Competitive privatization.--The term ``pro-
     competitive privatization'' means a privatization that the 
     President determines to be consistent with the United States 
     policy of obtaining full and open competition to such 
     organizations (or their successors), and nondiscriminatory 
     market access, in the provision of satellite services.
       (b) Treatment as Public International Organizations.--
       (1) Treatment.--An international organization providing 
     commercial communications services shall be treated as a 
     public international organization for purposes of section 30A 
     of the Securities Exchange Act of 1934 (15 U.S.C. 78dd-1) and 
     sections 104 and 104A of the Foreign Corrupt Practices Act of 
     1977 (15 U.S.C. 78dd-2) until such time as the President 
     certifies to the Committee on Commerce of the House of 
     Representatives and the Committees on Banking, Housing and 
     Urban Affairs and Commerce, Science, and Transportation that 
     such international organization providing commercial 
     communications services has achieved a pro-competitive 
     privatization.
       (2) Limitation on effect of treatment.--The requirement for 
     a certification under paragraph (1), and any certification 
     made under such paragraph, shall not be construed to affect 
     the administration by the Federal Communications Commission 
     of the Communications Act of 1934 in authorizing the 
     provision of services to, from, or within the United States 
     over space segment of the international satellite 
     organizations, or the privatized affiliates or successors 
     thereof.
       (c) Extension of Legal Process.--
       (1) In general.--Except as specifically and expressly 
     required by mandatory obligations in international agreements 
     to which the United States is a party, an international 
     organization providing commercial communications services, 
     its officials and employees, and its records shall not be 
     accorded immunity from suit or legal process for any act or 
     omission taken in connection with such organization's 
     capacity as a provider, directly or indirectly, of commercial 
     telecommunications services to, from, or within the United 
     States.
       (2) No effect on personal liability.--Paragraph (1) shall 
     not affect any immunity from personal liability of any 
     individual who is an official or employee of an international 
     organization providing commercial communications services.
       (d) Elimination or Limitation of Exceptions.--The President 
     and the Federal Communications Commission shall, in a manner 
     that is consistent with specific and express requirements in 
     mandatory obligations in international agreements to which 
     the United States is a party--
       (1) expeditiously take all actions necessary to eliminate 
     or to limit substantially any privileges or immunities 
     accorded to an international organization providing 
     commercial communications services, its officials, its 
     employees, or its records from suit or legal process for any 
     act or omission taken in connection with such organization's 
     capacity as a provider, directly or indirectly, of commercial 
     telecommunications services to, from, or within the United 
     States, that are not eliminated by subsection (c);
       (2) expeditiously take all appropriate actions necessary to 
     eliminate or to reduce substantially all privileges and 
     immunities not eliminated pursuant to paragraph (1); and
       (3) report to the Committee on Commerce of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate on any remaining privileges and 
     immunities of an international organization providing 
     commercial communications services within 90 days of the 
     effective date of this act and semiannually thereafter.
       (e) Preservation of Law Enforcement and Intelligence 
     Functions.--Nothing in subsection (c) or (d) of this section 
     shall affect any immunity from suit or legal process of an 
     international organization providing commercial 
     communications services, or the privatized affiliates or 
     successors thereof, for acts or omissions--
       (1) under chapters 119, 121, 206, or 601 of title 18, 
     United States Code, the Foreign Intelligence Surveillance Act 
     of 1978 (50 U.S.C. 1801 et seq.), section 514 of the 
     Comprehensive Drug Abuse Prevention and Control Act of 1970 
     (21 U.S.C. 884), or Rules 104, 501, or 608 of the Federal 
     Rules of Evidence;
       (2) under similar State laws providing protection to 
     service providers cooperating with law enforcement agencies 
     pursuant to State electronic surveillance or evidence laws, 
     rules, regulations, or procedures; or
       (3) pursuant to a court order.
       (f) Rules of Construction.--
       (1) Negotiations.--Nothing in this section shall affect the 
     President's existing constitutional authority regarding the 
     time, scope, and objectives of international negotiations.
       (2) Privatization.--Nothing in this section shall be 
     construed as legislative authorization for the privatization 
     of INTELSAT or Inmarsat, nor to increase the President's 
     authority with respect to negotiations concerning such 
     privatization.

     SEC. 6. ENFORCEMENT AND MONITORING.

       (a) Reports Required.--Not later than July 1 of 1999 and 
     each of the 5 succeeding years, the Secretary of Commerce 
     shall submit to the House of Representatives and the Senate a 
     report that contains the following information with respect 
     to implementation of the Convention:
       (1) Ratification.--A list of the countries that have 
     ratified the Convention, the dates of ratification by such 
     countries, and the entry into force for each such country.
       (2) Domestic legislation.--A description of domestic laws 
     enacted by each party to the Convention that implement 
     commitments under the Convention, and assessment of the 
     compatibility of such laws with the Convention.
       (3) Enforcement.--As assessment of the measures taken by 
     each party to the Convention during the previous year to 
     fulfill its obligations under the Convention and achieve its 
     object and purpose including--
       (A) an assessment of the enforcement of the domestic laws 
     described in paragraph (2);
       (B) an assessment of the efforts by each such party to 
     promote public awareness of such domestic laws and the 
     achievement of such object and purpose; and
       (C) an assessment of the effectiveness, transparency, and 
     viability of the monitoring process for the Convention, 
     including its inclusion of input from the private sector and 
     non-governmental organizations.

[[Page H10305]]

       (4) Laws prohibiting tax deduction of bribes.--An 
     explanation of the domestic laws enacted by each party to the 
     Convention that would prohibit the deduction of bribes in the 
     computation of domestic taxes.
       (5) New signatories.--A description of efforts to expand 
     international participation in the Convention by adding new 
     signatories to the Convention and by assuring that all 
     countries which are or become members of the Organization for 
     Economic Cooperation and Development are also parties to the 
     Convention.
       (6) Subsequent efforts.--An assessment of the status of 
     efforts to strengthen the Convention by extending the 
     prohibitions contained in the Convention to cover bribes to 
     political parties, party officials, and candidates for 
     political office.
       (7) Advantages.--Advantages, in terms of immunities, market 
     access, or otherwise, in the countries or regions served by 
     the organizations described in section 5(a), the reason for 
     such advantages, and an assessment of progress toward 
     fulfilling the policy described in that section.
       (8) Bribery and transparency.--An assessment of anti-
     bribery programs and transparency with respect to each of the 
     international organizations covered by this Act.
       (9) Private sector review.--A description of the steps 
     taken to ensure full involvement of United States private 
     sector participants and representatives of nongovernmental 
     organizations in the monitoring and implementation of the 
     Convention.
       (10) Additional information.--In consultation with the 
     private sector participants and representatives of 
     nongovernmental organizations described in paragraph (9), a 
     list of additional means for enlarging the scope of the 
     Convention and otherwise increasing its effectiveness. Such 
     additional means shall include, but not be limited to, 
     improved recordkeeping provisions and the desirability of 
     expanding the applicability of the Convention to additional 
     individuals and organizations and the impact on United States 
     business of section 30A of the Securities Exchange Act of 
     1934 and sections 104 and 104A of the Foreign Corrupt 
     Practices Act of 1977.
       (b) Definition.--For purposes of this section, the term 
     ``Convention'' means the Convention on Combating Bribery of 
     Foreign Public Officials in International Business 
     Transactions adopted on November 21, 1997, and signed on 
     December 17, 1997, by the United States and 32 other nations.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Virginia (Mr. Bliley) and the gentleman from Massachusetts (Mr. Markey) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Virginia (Mr. Bliley).


                             General Leave

  Mr. BLILEY. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous material on this legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Virginia?
  There was no objection.
  Mr. BLILEY. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, I rise in support of H.R. 4353, the International Anti-
Bribery and Fair Competition Act of 1998. We have before us today an 
important piece of legislation that is good policy, good for business, 
good for workers all at the same time.
  I would like to thank the gentleman from Ohio (Mr. Oxley) in 
particular for cosponsoring this important legislation with me and for 
moving it through the committee last month by voice vote. This is 
another example of his leadership on international issues.
  I would also like to thank the gentleman from Michigan (Mr. Dingell) 
for his input on this legislation. His input has helped to make a good 
bill even better.
  I would like to thank as well the ranking minority member on the 
subcommittee, the gentleman from New York (Mr. Manton) for his 
cosponsorship and assistance in moving this bill forward and for his 
fine service on our committee.
  Finally, I wish to thank the gentleman from Massachusetts (Mr. 
Markey), who was the first cosponsor joining the gentleman from Ohio 
(Mr. Oxley) and myself in moving this bill forward.
  Our legislation is designed to create a level playing field for 
Americans. This bill helps bring about a more equitable and transparent 
business environment while reducing both foreign bribery and unfair 
privileges and immunities.
  The International Anti-Bribery and Fair Competition Act of 1998 
contains the changes to our domestic laws necessary to implement the 
OECD convention on combating bribery of foreign public officials. The 
United States has one of the world's strictest anti-bribery laws called 
the Foreign Corrupt Practices Act, or FCPA. American business believes 
this law puts them at a disadvantage since most of our trading partners 
do not have similarly strong laws against bribery of foreign officials. 
Some of our competitors have even made bribery tax-deductible.
  I believe contracts should go to the best competitor, not the biggest 
briber. Our workers and companies are the most competitive and 
productive in the world and thus have the most to gain from fair and 
open competition. Our bill seeks to help develop a fairer, more open 
business environment worldwide.
  The convention has no binding mechanism to make other nations 
actually adopt their own anti-bribery laws in accordance with its 
requirements. To help address this potential problem, the gentleman 
from Ohio (Mr. Oxley) and myself have added a reporting requirement to 
the legislation. The gentleman from Massachusetts (Mr. Markey) made 
some additions to this provision which enhanced its scope and depth, 
and for that I thank him very much. I would also like to thank the 
chairman of the Committee on International Relations, the gentleman 
from New York (Mr. Gilman), for his additions to this section.
  Our bill will require the administration to report annually beginning 
on July 1 of next year on other countries' enforcement implementation 
measures. This will give us the information we need to determine 
whether other nations are living up to their end of the agreement and 
will put pressure on them to do so.
  The gentleman from Ohio (Mr. Oxley) and myself also added a section 
which helps level the playing field with respect to the 
intergovernmental satellite organizations, INTELSAT and Inmarsat. 
Bribery of officials in these organizations should not escape from the 
coverage of the FCPA through an anticompetitive privatization. The 
beneficiaries will not only be competing private American satellite 
companies and their workers, but also consumers who will see the lower 
prices that increased competition brings.
  I urge Members to support our bill, send it to the Senate with a big 
margin of support.
  Mr. Speaker, I reserve the balance of my time, and I ask unanimous 
consent to turn control over the balance of the time to the gentleman 
from Ohio (Mr. Oxley), chairman of the subcommittee.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Virginia?
  There was no objection.
  Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 4353, the International 
Anti-Bribery and Fair Competition Act of 1998. I want to begin by 
thanking the gentleman from Ohio (Mr. Oxley) of the subcommittee who 
handled this bill magnificently along with the chairman of the full 
committee, the gentleman from Virginia (Mr. Bliley), who, in an 
evenhanded way, working with the gentleman from Michigan (Mr. Dingell) 
and myself and the ranking member of the subcommittee, the gentleman 
from New York (Mr. Manton) over the last several months has helped to 
craft, I think, a very important forward-looking piece of legislation, 
and I am very proud to have been a cosponsor with them on this bill.
  Back in the 1970s there were a series of widely reported scandals and 
investigations by the Securities and Exchange Commission into bribes 
and other illicit payments to foreign officials and illegal domestic 
political contributions by American corporations. Hundreds of United 
States corporations were found to have made such payments to foreign 
government officials including more than 25 percent of our Fortune 500 
companies. Clearly the widespread corrupt practices that were taking 
place during this period were fundamentally inconsistent with the 
principles of free and fair markets and, I believe, ultimately harmful 
to the interests of the United States because they damage the interests 
of shareholders of these United States companies.
  In response to these practices, Congress enacted the Federal Corrupt 
Practices Act to establish an explicit bar against bribing foreign 
government officials and creating requirements for

[[Page H10306]]

accurate books and records and devising and maintaining a system of 
internal accounting controls. When Congress enacted this legislation, 
it was hoped that by taking the lead to curb bribery by our 
corporations, America would put pressure on other developed and 
developing industrialized nations to adopt similar laws inside their 
own countries.

                              {time}  1600

  Today, this Congress, pursuant to the leadership of the gentleman 
from Ohio (Mr. Oxley) and the gentleman from Virginia (Mr. Bliley) is 
taking up legislation which is the fruit of our earlier legislative 
efforts in the original Foreign Corrupt Practices Act and in the 1988 
amendments to this Act to put pressure on foreign governments to adopt 
strong laws against bribing foreign government officials.
  After many years of difficult negotiations, the United States 
succeeded last year in securing the agreement of 33 countries, 
including almost all of the OECD States and several other nations, to a 
Convention which is closely modeled after the Foreign Corrupt Practices 
Act.
  In order to implement the terms of the Convention, H.R. 4353 
strengthens U.S. law by extending its coverage to cover foreign persons 
and corporations, bribes paid to officials of international 
organizations, and clarifying that the law's prohibitions should be 
construed to cover any payments made to secure any improper advantage.
  This is the right formula for the future of the world. We have to add 
more integrity to the global marketplace. Consumers and investors 
across the planet have to know that, wherever business is being done, 
it is being done by a set of rules. That is agreed by every single 
industrialized nation so that all are given full protection.
  I want to congratulate again the gentleman from Ohio (Mr. Oxley) and 
the gentleman from Virginia (Mr. Bliley). They worked closely with the 
gentleman from Michigan (Mr. Dingell), the gentleman from New York (Mr. 
Manton), and I. We are proud to be cosponsors of this seminal piece of 
legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of this legislation, the 
International Anti-Bribery and Fair Competition Act of 1998.
  Bribery distorts the free market system and provides unfair 
advantages. It does so at the expense of those unwilling or unable to 
use similar tactics. Those companies or governments that participate in 
bribery take away an opportunity from someone willing or required to 
play by the rules. But what happens when there are no rules or the 
existing laws are murky or poorly enforced? In such an environment, 
bribery is allowed to flourish.
  The United States, our Anti-Bribery law is the Foreign Corrupt 
Practices Act, also known as the FCPA, one of the strongest anti-
bribery laws worldwide. Unfortunately, many foreign nations do not have 
similar laws as we do in the United States or certainly enforce them. 
As a result, American companies and American workers suffer a 
significant competitive disadvantage. They are bound by the provisions 
of the FCPA while others are not. H.R. 4353 will help rectify this 
serious problem.
  As a matter of fact, there has been evidence that American 
corporations lose upwards to $30 billion per year against unfair 
competition where foreign countries, companies bribe the public 
officials and in many cases actually have those bribes deducted from 
their tax liability.
  This implements the recently completed OECD Convention on Combating 
Bribery of Foreign Officials in International Business Transactions. 
Concluded last December, this Convention will go a long way to raising 
the bar regarding anti-bribery legislation.
  The first step that must be done to make the Convention a success is 
bring the Parties into compliance with the Convention. This bill makes 
the necessary changes to the FCPA to bring the U.S. into compliance. We 
will be the first country to do so. These changes are small, but they 
are significant and very important.
  The administration has made a case that the U.S. must take a strong 
lead in implementing the Convention, and we do that today.
  Moreover, H.R. 4353 contains strong reporting requirements which we 
added to the bill in order to help ensure other nations are 
implementing and enforcing their commitments under the Convention. For 
that, I thank my good friend, the gentleman from Massachusetts (Mr. 
Markey) for his vigilance and hard work for providing those reporting 
requirements. We plan to be vigilant to ensure the next steps, 
international compliance and enforcement, are completed.
  This bill will also reduce and eliminate unfair privileges and 
immunities of the intergovernmental satellite organizations, INTELSAT 
and Inmarsat, and makes it quite clear that these organizations are 
covered under the anti-bribery Convention as well as the statute. Doing 
so will help bring us closer to the point where no satellite competitor 
is above the law.
  It is clear that the American business groups support this bill. They 
want to compete on a level ground with their international 
counterparts. Furthermore, the bill has been enforced by the American 
business community, including the Business Roundtable, the Emergency 
Committee for American Trade, the National Association of 
Manufacturers, the National Foreign Trade Council, Transparency 
International, and the United States Council for International 
Business.
  Let me say, Mr. Speaker, that without the hard work of the Commerce 
Department, Secretary Daley, we also would not be here today, and we 
want to thank them for their fine efforts.
  The Senate has already passed a similar version of this bill. I am 
hopeful that the other body will quickly approve the improvements we 
made to the bill so we can quickly send this legislation to the 
President for his signature.
  Let me finally take this opportunity to thank the gentleman from 
Virginia (Chairman Bliley) for steering this important initiative 
forward. I, too, want to thank the gentleman from Michigan (Mr. 
Dingell), the ranking minority member of the full committee, the 
gentleman from New York (Mr. Manton), the ranking minority member on my 
subcommittee, who is retiring this year, and also of course our good 
friend the gentleman from Massachusetts (Mr. Markey) for his work in 
this effort.
  During the committee process, we worked with interested parties, 
including the administration, to approve specific language of the bill. 
The bill H.R. 4353 passed in the Committee on Commerce with no 
opposition. The bill before us today has brought bipartisan support and 
deserves the support of the entire House.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, we have no other requests for time on this 
side of the aisle.
  Mr. Speaker, I yield back the balance of our time.
  Mr. OXLEY. Mr. Speaker, I know we have no further speakers on this 
side.
  Mr. Speaker, we too, yield back the balance of our time.
  The SPEAKER pro tempore (Mr. Sununu). The question is on the motion 
offered by the gentleman from Virginia (Mr. Bliley) that the House 
suspend the rules and pass the bill, H.R. 4353, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.
  Mr. OXLEY. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the Senate bill (S. 2375) to amend the Securities 
Exchange Act of 1934 and the Foreign Corrupt Practices Act of 1977, to 
strengthen prohibitions on international bribery and other corrupt 
practices, and for other purposes, and ask for its immediate 
consideration in the House.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  The Clerk read the Senate bill, as follows:

                                S. 2375

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

[[Page H10307]]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``International Anti-Bribery 
     Act of 1998''.

     SEC. 2. AMENDMENTS RELATING TO ISSUERS OF SECURITIES.

       (a) Prohibited Conduct.--Section 30A(a) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78dd-1(a)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``(B)'' and inserting ``(D)''; and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) influencing any act or decision of such foreign 
     official in his official capacity;
       ``(B) inducing such foreign official to do or omit to do 
     any act in violation of the lawful duty of such official;
       ``(C) securing any improper advantage; or'';
       (2) in paragraph (2)--
       (A) by striking ``(B)'' and inserting ``(D)''; and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) influencing any act or decision of such party, 
     official, or candidate in its or his official capacity;
       ``(B) inducing such party, official, or candidate to do or 
     omit to do an act in violation of the lawful duty of such 
     party, official, or candidate;
       ``(C) securing any improper advantage; or''; and
       (3) in paragraph (3)--
       (A) by striking ``(B)'' and inserting ``(D)''; and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) influencing any act or decision of such foreign 
     official, political party, party official, or candidate in 
     its or his official capacity;
       ``(B) inducing such foreign official, political party, 
     party official, or candidate to do or omit to do any act in 
     violation of the lawful duty of such foreign official, 
     political party, party official, or candidate;
       ``(C) securing any improper advantage; or''.
       (b) Officials of International Organizations.--Section 
     30A(f) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78dd-1(f)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) The term--
       ``(A) `foreign official' means any officer or employee of a 
     foreign government or any department, agency, or 
     instrumentality thereof, or of a public international 
     organization, or any person acting in an official capacity 
     for or on behalf of any such government, department, agency, 
     or instrumentality, or for or on behalf of any such public 
     international organization; and
       ``(B) `public international organization' means an 
     organization that has been so designated by Executive order 
     pursuant to section 1 of the International Organizations 
     Immunities Act (22 U.S.C. 288).''; and
       (2) in paragraph (3)(A)(v), by inserting before the period 
     ``to those referred to in clauses (i) through (iv)''.
       (c) Alternative Jurisdiction Over Acts Outside of the 
     United States.--Section 30A of the Securities Exchange Act of 
     1934 (15 U.S.C. 78dd-1) is amended--
       (1) by redesignating subsection (f) as subsection (g);
       (2) by inserting after subsection (e) the following:
       ``(f) Alternative Jurisdiction.--
       ``(1) In general.--It shall be unlawful for an issuer, or 
     for any United States person that is an officer, director, 
     employee, or agent of such issuer or any stockholder thereof, 
     acting on behalf of that issuer, to corruptly do any act 
     outside of the United States in furtherance of an offer, 
     payment, promise to pay, or authorization of the payment of 
     any money, or offer, gift, promise to give, or authorization 
     of the giving of any thing of value to any of the persons or 
     entities referred to in paragraphs (1), (2), and (3) of 
     subsection (a), for the purposes set forth therein, whether 
     or not that issuer (or that officer, director, employee, 
     agent, or stockholder) makes use of the mails or any means or 
     instrumentality of interstate commerce in furtherance of the 
     offer, gift, payment, promise, or authorization.
       ``(2) Applicability.--This subsection applies only to an 
     issuer that--
       ``(A) is organized under the laws of the United States, or 
     a State, territory, possession, or commonwealth of the United 
     States or a political subdivision thereof; and
       ``(B) has a class of securities registered pursuant to 
     section 12 or that is required to file reports under section 
     15(d).
       ``(3) United states person.--In this subsection, the term 
     `United States person' means--
       ``(A) a national of the United States (as defined in 
     section 101 of the Immigration and Nationality Act (8 U.S.C. 
     1101)); and
       ``(B) any corporation, partnership, association, joint-
     stock company, business trust, unincorporated organization, 
     or sole proprietorship organized under the laws of the United 
     States or any State, territory, possession, or commonwealth 
     of the United States, or any political subdivision 
     thereof.'';
       (3) in subsection (b), by striking ``Subsection (a)'' and 
     inserting ``Subsections (a) and (f)''; and
       (4) in subsection (c), by striking ``subsection (a)'' and 
     inserting ``subsections (a) and (f)''.
       (d) Penalties.--Section 32(c) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78ff(c)) is amended--
       (1) by striking ``section 30A(a) of this title'' each place 
     that term appears and inserting ``subsection (a) or (f) of 
     section 30A''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking ``or director'' and 
     inserting ``, director, employee, or agent'';
       (B) by striking subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B).

     SEC. 3. AMENDMENTS RELATING TO DOMESTIC CONCERNS.

       (a) Prohibited Conduct.--Section 104(a) of the Foreign 
     Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2(a)) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``(B)'' and inserting ``(D)''; and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) influencing any act or decision of such foreign 
     official in his official capacity;
       ``(B) inducing such foreign official to do or omit to do 
     any act in violation of the lawful duty of such official;
       ``(C) securing any improper advantage; or'';
       (2) in paragraph (2)--
       (A) by striking ``(B)'' and inserting ``(D)''; and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) influencing any act or decision of such party, 
     official, or candidate in its or his official capacity;
       ``(B) inducing such party, official, or candidate to do or 
     omit to do an act in violation of the lawful duty of such 
     party, official, or candidate;
       ``(C) securing any improper advantage; or''; and
       (3) in paragraph (3)--
       (A) by striking ``(B)'' and inserting ``(D)''; and
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) influencing any act or decision of such foreign 
     official, political party, party official, or candidate in 
     its or his official capacity;
       ``(B) inducing such foreign official, political party, 
     party official, or candidate to do or omit to do any act in 
     violation of the lawful duty of such foreign official, 
     political party, party official, or candidate;
       ``(C) securing any improper advantage; or''.
       (b) Officials of International Organizations.--Section 
     104(h) of the Foreign Corrupt Practices Act of 1977 (15 
     U.S.C. 78dd-2(h)) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) The term--
       ``(A) `foreign official' means any officer or employee of a 
     foreign government or any department, agency, or 
     instrumentality thereof, or of a public international 
     organization, or any person acting in an official capacity 
     for or on behalf of any such government, department, agency, 
     or instrumentality, or for or on behalf of any such public 
     international organization; and
       ``(B) `public international organization' means an 
     organization that has been so designated by Executive order 
     pursuant to section 1 of the International Organizations 
     Immunities Act (22 U.S.C. 288).''; and
       (2) in paragraph (4)(A)(v), by inserting before the period 
     ``to those referred to in clauses (i) through (iv)''.
       (c) Alternative Jurisdiction Over Acts Outside of the 
     United States.--Section 104 of the Foreign Corrupt Practices 
     Act of 1977 (15 U.S.C. 78dd-2) is amended--
       (1) by redesignating subsection (h) as subsection (i);
       (2) by inserting after subsection (g) the following:
       ``(h) Alternative Jurisdiction.--
       ``(1) In general.--It shall be unlawful for a United States 
     person to corruptly do any act outside of the United States 
     in furtherance of an offer, payment, promise to pay, or 
     authorization of the payment of any money, or offer, gift, 
     promise to give, or authorization of the giving of any thing 
     of value to any of the persons or entities referred to in 
     paragraphs (1), (2), and (3) of subsection (a), for the 
     purposes set forth therein, whether or not that United States 
     person makes use of the mails or any means or instrumentality 
     of interstate commerce in furtherance of the offer, gift, 
     payment, promise, or authorization.
       ``(2) Definition.--In this subsection, the term `United 
     States person' means--
       ``(A) a national of the United States (as defined in 
     section 101 of the Immigration and Nationality Act (8 U.S.C. 
     1101)); and
       ``(B) any corporation, partnership, association, joint-
     stock company, business trust, unincorporated organization, 
     or sole proprietorship organized under the laws of the United 
     States or any State, territory, possession, or commonwealth 
     of the United States, or any political subdivision 
     thereof.'';
       (3) in subsection (b), by striking ``Subsection (a)'' and 
     inserting ``Subsections (a) and (h)'';
       (4) in subsection (c), by striking ``subsection (a)'' and 
     inserting ``subsections (a) and (h)''; and
       (5) in subsection (d), by striking ``subsection (a) of this 
     section'' and inserting ``subsection (a) or (h)''.
       (d) Penalties.--Section 104(g) of the Foreign Corrupt 
     Practices Act of 1977 (15 U.S.C. 78dd-2(g)) is amended--
       (1) by striking ``subsection (a)'' each place that term 
     appears and inserting ``subsection (a) or (h)'';

[[Page H10308]]

       (2) in paragraph (1), by inserting ``that is not a natural 
     person'' after ``domestic concern'' each place that term 
     appears; and
       (3) in paragraph (2)--
       (A) by striking ``Any officer'' each place that term 
     appears and inserting ``Any natural person that is an 
     officer'';
       (B) in subparagraph (A), by striking ``or director'' and 
     inserting ``, director, employee, or agent'';
       (C) by striking subparagraph (B); and
       (D) by redesignating subparagraph (C) as subparagraph (B).
       (e) Technical Amendment.--Section 104(i)(4)(A) of the 
     Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-
     2(h)(4)(A)), as redesignated by subsection (c) of this 
     section, is amended by striking ``For purposes of paragraph 
     (1), the'' and inserting ``The''.

     SEC. 4. AMENDMENT RELATING TO OTHER PERSONS.

       The Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd 
     et seq.) is amended by inserting after section 104 the 
     following new section:

     ``SEC. 104A. PROHIBITED FOREIGN TRADE PRACTICES BY PERSONS 
                   OTHER THAN ISSUERS OR DOMESTIC CONCERNS.

       ``(a) Prohibited Conduct.--It shall be unlawful for any 
     covered person, or for any officer, director, employee, or 
     agent of such covered person or any stockholder thereof, 
     acting on behalf of such covered person, while in the 
     territory of the United States, corruptly to make use of the 
     mails or any means or instrumentality of interstate commerce 
     or to do any other act in furtherance of an offer, payment, 
     promise to pay, or authorization of the payment of any money, 
     or offer, gift, promise to give, or authorization of the 
     giving of anything of value to--
       ``(1) any foreign official for purposes of--
       ``(A) influencing any act or decision of such foreign 
     official in the official capacity of the foreign official;
       ``(B) inducing such foreign official to do or omit to do 
     any act in violation of the lawful duty of such official;
       ``(C) securing any improper advantage; or
       ``(D) inducing such foreign official to use the influence 
     of that official with a foreign government or instrumentality 
     thereof to affect or influence any act or decision of such 
     government or instrumentality,

     in order to assist such covered person in obtaining or 
     retaining business for or with, or directing business to, any 
     person;
       ``(2) any foreign political party or official thereof or 
     any candidate for foreign political office for purposes of--
       ``(A) influencing any act or decision of such party, 
     official, or candidate in its or his official capacity;
       ``(B) inducing such party, official, or candidate to do or 
     omit to do an act in violation of the lawful duty of such 
     party, official, or candidate;
       ``(C) securing any improper advantage; or
       ``(D) inducing such party, official, or candidate to use 
     its or his influence with a foreign government or 
     instrumentality thereof to affect or influence any act or 
     decision of such government or instrumentality,

     in order to assist such covered person in obtaining or 
     retaining business for or with, or directing business to, any 
     person; or
       ``(3) any person, while knowing that all or a portion of 
     such money or thing of value will be offered, given, or 
     promised, directly or indirectly, to any foreign official, to 
     any foreign political party or official thereof, or to any 
     candidate for foreign political office, for purposes of--
       ``(A) influencing any act or decision of such foreign 
     official, political party, party official, or candidate in 
     its or his official capacity;
       ``(B) inducing such foreign official, political party, 
     party official, or candidate to do or omit to do any act in 
     violation of the lawful duty of such foreign official, 
     political party, party official, or candidate;
       ``(C) securing any improper advantage; or
       ``(D) inducing such foreign official, political party, 
     party official, or candidate to use its or his influence with 
     a foreign government or instrumentality thereof to affect or 
     influence any act or decision of such government or 
     instrumentality,
     in order to assist such covered person in obtaining or 
     retaining business for or with, or directing business to, any 
     person.
       ``(b) Exception for Routine Governmental Action.--
     Subsection (a) shall not apply to any facilitating or 
     expediting payment to a foreign official, political party, or 
     party official, the purpose of which is to expedite or to 
     secure the performance of a routine governmental action by a 
     foreign official, political party, or party official.
       ``(c) Affirmative Defenses.--It shall be an affirmative 
     defense to actions under subsection (a) that--
       ``(1) the payment, gift, offer, or promise of anything of 
     value that was made, was lawful under the written laws and 
     regulations of the country of the foreign official, political 
     party, party official, or candidate; or
       ``(2) the payment, gift, offer, or promise of anything of 
     value that was made was a reasonable and bona fide 
     expenditure, such as travel and lodging expenses, incurred by 
     or on behalf of a foreign official, party, party official, or 
     candidate, and was directly related to--
       ``(A) the promotion, demonstration, or explanation of 
     products or services; or
       ``(B) the execution or performance of a contract with a 
     foreign government or agency thereof.
       ``(d) Injunctive Relief.--
       ``(1) In general.--When it appears to the Attorney General 
     that any covered person, or officer, director, employee, 
     agent, or stockholder of a covered person, is engaged, or 
     about to engage, in any act or practice constituting a 
     violation of subsection (a), the Attorney General may, in the 
     discretion of the Attorney General, bring a civil action in 
     an appropriate district court of the United States to enjoin 
     such act or practice, and upon a proper showing, a permanent 
     injunction or a temporary restraining order shall be granted 
     without bond.
       ``(2) Civil investigations.--For the purpose of any civil 
     investigation that, in the opinion of the Attorney General, 
     is necessary and proper to enforce this section, the Attorney 
     General, or a designee thereof, may administer oaths and 
     affirmations, subpoena witnesses, take evidence, and require 
     the production of any books, papers, or other documents that 
     the Attorney General deems relevant or material to such 
     investigation. The attendance of witnesses and the production 
     of documentary evidence may be required from any place in the 
     United States, or any territory, possession, or commonwealth 
     of the United States, at any designated place of hearing.
       ``(3) Subpoenas.--In the case of contumacy by, or refusal 
     to obey a subpoena issued to, any person, the Attorney 
     General may invoke the aid of any court of the United States 
     within the jurisdiction of which such investigation or 
     proceeding is carried on, or in which such person resides or 
     carries on business, in requiring the attendance and 
     testimony of witnesses and the production of books, papers, 
     or other documents. Any such court may issue an order 
     requiring such person to appear before the Attorney General, 
     or a designee thereof, there to produce records, if so 
     ordered, or to give testimony touching the matter under 
     investigation. Any failure to obey such order of the court 
     may be punished by such court as a contempt thereof.
       ``(4) Process.--All process in any action referred to in 
     this subsection may be served in the judicial district in 
     which such person resides or may be found.
       ``(5) Rules.--The Attorney General may make such rules 
     relating to civil investigations as may be necessary or 
     appropriate to implement this subsection.
       ``(e) Penalties.--
       ``(1) Juridical persons.--Any covered person that is a 
     juridical person that violates subsection (a)--
       ``(A) shall be fined not more than $2,000,000; and
       ``(B) shall be subject to a civil penalty of not more than 
     $10,000, imposed in an action brought by the Attorney 
     General.
       ``(2) Natural person.--Any covered person who is a natural 
     person and who--
       ``(A) willfully violates subsection (a) shall be fined not 
     more than $100,000, or imprisoned not more than 5 years, or 
     both;
       ``(B) violates subsection (a) shall be subject to a civil 
     penalty of not more than $10,000, imposed in an action 
     brought by the Attorney General.
       ``(3) Payment of fines.--Whenever a fine is imposed under 
     paragraph (2) upon any officer, director, employee, agent, or 
     stockholder of a covered person, such fine may not be paid, 
     directly or indirectly, by that covered person.
       ``(f) Applicability; Other Laws.--This section does not 
     apply--
       ``(1) to any issuer of securities to which section 30A of 
     the Securities Exchange Act of 1934 applies; or
       ``(2) to any domestic concern to which section 104 of this 
     Act applies.
       ``(g) Definitions.--For purposes of this section--
       ``(1) the term--
       ``(A) `foreign official' means any officer or employee of a 
     foreign government or any department, agency, or 
     instrumentality thereof, or of a public international 
     organization, or any person acting in an official capacity 
     for or on behalf of any such government or department, 
     agency, or instrumentality, or for or on behalf of any such 
     public international organization; and
       ``(B) `public international organization' means an 
     organization that has been designated by Executive order 
     pursuant to section 1 of the International Organizations 
     Immunities Act (22 U.S.C. 288);
       ``(2) the state of mind of a covered person is `knowing' 
     with respect to conduct, a circumstance, or a result if--
       ``(A) such covered person is aware that such covered person 
     is engaging in such conduct, that such circumstance exists, 
     or that such result is substantially certain to occur; or
       ``(B) such covered person has a firm belief that such 
     circumstance exists or that such result is substantially 
     certain to occur;
       ``(3) if knowledge of the existence of a particular 
     circumstance is required for an offense, such knowledge is 
     established if a covered person is aware of a high 
     probability of the existence of such circumstance, unless the 
     covered person actually believes that such circumstance does 
     not exist;
       ``(4) the term `covered person' means--
       ``(A) any natural person, other than a national of the 
     United States (as defined in section 101(a) of the 
     Immigration and Nationality Act); and
       ``(B) any corporation, partnership, association, joint-
     stock company, business trust, unincorporated organization, 
     or sole proprietorship that is organized under the law of a 
     foreign nation or a political subdivision thereof; and

[[Page H10309]]

       ``(5) the term `routine governmental action'--
       ``(A) means only an action that is ordinarily and commonly 
     performed by a foreign official--
       ``(i) in obtaining permits, licenses, or other official 
     documents to qualify a person to do business in a foreign 
     country;
       ``(ii) in processing governmental papers, such as visas and 
     work orders;
       ``(iii) in providing police protection, mail pickup and 
     delivery, or scheduling inspections associated with contract 
     performance or inspections related to transit of goods across 
     country;
       ``(iv) in providing phone service, power and water supply, 
     loading and unloading cargo, or protecting perishable 
     products or commodities from deterioration; or
       ``(v) in actions of a similar nature to those referred to 
     in clauses (i) through (iv); and
       ``(B) does not include any decision by a foreign official 
     regarding whether, or on what terms, to award new business to 
     or to continue business with a particular party, or any 
     action taken by a foreign official involved in the 
     decisionmaking process to encourage a decision to award new 
     business to or continue business with a particular party.''.

                      Motion Offered By Mr. Oxley

  Mr. OXLEY. Mr. Speaker, I offer a motion.
  The Clerk read as follows:

       Mr. Oxley moves to strike out all after the enacting clause 
     of S. 2375 and insert in lieu thereof the text of H.R. 4353 
     as passed by the House.

  The motion was agreed to.
  The Senate bill was ordered to be read a third time, was read the 
third time, and passed.
  The title of the Senate bill was amended so as to read: ``To amend 
the Securities Exchange Act of 1934 and the Foreign Corrupt Practices 
Act of 1977 to improve the competitiveness of American business and 
promote foreign commerce, and for other purposes.''.
  A motion to reconsider was laid on the table.
  A similar House bill, (H.R. 4354) was laid on the table.

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