[Congressional Record Volume 157, Number 26 (Thursday, February 17, 2011)]
[Senate]
[Pages S904-S906]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY (for himself and Mr. Cornyn):
  S. 401. A bill to help Federal prosecutors and investigators combat 
public corruption by strengthening and clarifying the law; to the 
Committee on the Judiciary.
  Mr. LEAHY. Mr. President, I am pleased to join with Senator Cornyn 
once again to introduce the Public Corruption Prosecution Improvements 
Act of 2011, a bill that will strengthen and clarify key aspects of 
Federal criminal law and provide new tools to help investigators and 
prosecutors attack public corruption nationwide.
  As we have seen in recent years, public corruption can erode the 
trust the American people have in those who are given the privilege of 
public service, and, too often, loopholes in existing laws have meant 
that corrupt conduct can go unchecked. Make no mistake: The stain of 
corruption has spread to all levels of government. This is a problem 
that victimizes every American by chipping away at the foundations of 
our democracy. Rooting out the kinds of public corruption that have 
resulted in convictions of members of Congress, judges, governors, and 
many others, requires us to give prosecutors the tools they need to 
investigate and prosecute criminal public corruption offenses.
  The bill Senator Cornyn and I introduce today will increase sentences 
for serious corruption offenses and will provide investigators and 
prosecutors more time to pursue public corruption cases. The bill 
raises the statutory maximum penalties for several laws dealing with 
official misconduct, including bribery and theft of government 
property, to ensure that those who violate the public trust are held 
accountable. These increases reflect the serious and corrosive nature 
of these crimes, and would harmonize the punishment for these crimes 
with other similar statutes.
  The bill extends the statute of limitations from 5 to 6 years for the 
most serious public corruption offenses. Bank fraud, arson, and 
passport fraud, among other offenses, all have 10-year statutes of 
limitations. We recently increased the statute of limitations for 
securities fraud to 6 years. Public corruption offenses cut to the 
heart of our democracy and are among the most difficult and time-
consuming cases to investigate. This modest increase to the statute of 
limitations is a reasonable step to help our corruption investigators 
and prosecutors do their jobs.
  This bill also amends several key statutes to broaden their 
application in corruption contexts and to prevent corrupt public 
officials and their accomplices from evading or defeating prosecution 
based on existing legal ambiguities. It includes a fix to the 
gratuities statute that makes clear that public officials may not 
accept anything of value, other than what is permitted by existing 
rules and regulations, given to them because of their official 
position. This important provision contains appropriate safeguards to 
ensure that only corrupt conduct is prosecuted, but it will help to 
ensure that the work of public officials cannot be bought, and it will 
put teeth behind key ethics reforms enacted by Congress in 2007.
  The bill also appropriately clarifies the definition of what it means 
for a

[[Page S905]]

public official to perform an ``official act'' for the purposes of the 
bribery statute and closes several other gaps in current law. It adds 
two corruption-related crimes as predicates for the Federal wiretap and 
racketeering statutes, lowers the transactional amount required for 
Federal prosecution of bribery involving federally-funded state 
programs, and expands the venue for perjury and obstruction of justice 
prosecutions.
  Senator Cornyn and I have added two new modest fixes into this year's 
bill. The first allows information sharing that will make it easier for 
law enforcement to investigate possible criminal activity by Federal 
judges. The second further clarifies and strengthens the federal 
program bribery statute.
  I remain committed to ensuring sufficient funding for public 
corruption enforcement. Since September 11, 2001, Federal Bureau of 
Investigation resources have been shifted away from the pursuit of 
white collar crime to counterterrorism. Director Mueller has 
consistently affirmed that public corruption is among the FBI's top 
investigative priorities, but reports in the past decade indicated that 
this shift in resources sometimes meant a reduction in the number of 
public corruption investigations and at times made pursuing key 
corruption cases more difficult. The Justice Department and the FBI 
have been working to reverse this trend, but we must make sure that law 
enforcement has all the tools and the resources it needs to strongly 
confront these serious and corrosive crimes.
  In recognition of the difficult budget situation in which we find 
ourselves and in an effort to maintain maximum bipartisan support for 
this important legislation, I have agreed to remove from this year's 
bill a modest authorization for anti-corruption investigators and 
prosecutors that we included in past versions. Nonetheless, given the 
vital importance of this work, I hope that Senator Cornyn and others 
will join me in calling on appropriators and the Justice Department and 
FBI to ensure that significant resources are allocated to investigating 
and prosecuting public corruption.
  Since we last introduced this bill, our country has unfortunately 
taken a step backward in its efforts to fight fraud and corruption. 
Last year, in the case of Skilling v. United States, the Supreme Court 
sided with a former executive from Enron, whose collapse had such 
devastating effects on the economy early in the last decade, and 
greatly narrowed the honest services fraud statute, a law that plays an 
important role in combating public corruption, corporate fraud, and 
self-dealing.
  The Court's decision leaves corrupt and fraudulent conduct which 
prosecutors in the past addressed under the honest services fraud 
statute to go unchecked. Most notably, the Court's decision excluded 
undisclosed ``self-dealing'' by state and federal public officials, and 
corporate officers and directors, which is when those officials or 
executives secretly act in their own financial self-interest, rather 
than in the interest of the public or, in private sector cases, their 
shareholders and employees.
  I introduced legislation in the last Congress, the Honest Services 
Restoration Act, to close this crucial gap and restore the government's 
ability to prosecute key categories of corruption cases. I have heard 
from Democrats and Republicans in the Senate and the House who are 
eager to fix this problem. I hope to continue working with Senator 
Cornyn and others to find a bipartisan solution to fixing honest 
services fraud and perhaps to incorporate a fix into this comprehensive 
anti-corruption bill at some point in the future.
  If we are serious about addressing the kinds of egregious misconduct 
that we have witnessed in recent years in high-profile public 
corruption cases, Congress should enact meaningful legislation to give 
investigators and prosecutors the tools they need to enforce our laws. 
It is time to strengthen the criminal law to bring those who undermine 
the public trust to justice. I hope that all Senators will support this 
bipartisan bill and take firm action to stamp out intolerable 
corruption.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 401

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Public Corruption 
     Prosecution Improvements Act''.

     SEC. 2. EXTENSION OF STATUTE OF LIMITATIONS FOR SERIOUS 
                   PUBLIC CORRUPTION OFFENSES.

       (a) In General.--Chapter 213 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 3299A. Corruption offenses

       ``Unless an indictment is returned or the information is 
     filed against a person within 6 years after the commission of 
     the offense, a person may not be prosecuted, tried, or 
     punished for a violation of, or a conspiracy or an attempt to 
     violate the offense in--
       ``(1) section 201 or 666;
       ``(2) section 1341 or 1343, when charged in conjunction 
     with section 1346 and where the offense involves a scheme or 
     artifice to deprive another of the intangible right of honest 
     services of a public official;
       ``(3) section 1951, if the offense involves extortion under 
     color of official right;
       ``(4) section 1952, to the extent that the unlawful 
     activity involves bribery; or
       ``(5) section 1962, to the extent that the racketeering 
     activity involves bribery chargeable under State law, 
     involves a violation of section 201 or 666, section 1341 or 
     1343, when charged in conjunction with section 1346 and where 
     the offense involves a scheme or artifice to deprive another 
     of the intangible right of honest services of a public 
     official, or section 1951, if the offense involves extortion 
     under color of official right.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 213 of title 18, United States Code, is 
     amended by adding at the end the following:
``3299A. Corruption offenses.''.
       (c) Application of Amendment.--The amendments made by this 
     section shall not apply to any offense committed before the 
     date of enactment of this Act.

     SEC. 3. APPLICATION OF MAIL AND WIRE FRAUD STATUTES TO 
                   LICENCES AND OTHER INTANGIBLE RIGHTS.

       Sections 1341 and 1343 of title 18, United States Code, are 
     each amended by striking ``money or property'' and inserting 
     ``money, property, or any other thing of value''.

     SEC. 4. VENUE FOR FEDERAL OFFENSES.

       (a) In General.--The second undesignated paragraph of 
     section 3237(a) of title 18, United States Code, is amended 
     by adding before the period at the end the following: ``or in 
     any district in which an act in furtherance of the offense is 
     committed''.
       (b) Section Heading.--The heading for section 3237 of title 
     18, United States Code, is amended to read as follows:

     ``Sec. 3237. Offense taking place in more than one 
       district''.

       (c) Table of Sections.--The table of sections at the 
     beginning of chapter 211 of title 18, United States Code, is 
     amended so that the item relating to section 3237 reads as 
     follows:
``3237. Offense taking place in more than one district.''.

     SEC. 5. THEFT OR BRIBERY CONCERNING PROGRAMS RECEIVING 
                   FEDERAL FINANCIAL ASSISTANCE.

       Section 666 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(B), by--
       (i) striking ``anything of value'' and inserting ``any 
     thing or things of value''; and
       (ii) striking ``of $5,000 or more'' and inserting ``of 
     $1,000 or more'';
       (B) by amending paragraph (2) to read as follows:
       ``(2) corruptly gives, offers, or agrees to give any thing 
     or things of value to any person, with intent to influence or 
     reward an agent of an organization or of a State, local or 
     Indian tribal government, or any agency thereof, in 
     connection with any business, transaction, or series of 
     transactions of such organization, government, or agency 
     involving anything of value of $1,000 or more;''; and
       (C) in the matter following paragraph (2), by striking 
     ``ten years'' and inserting ``15 years''; and
       (2) in subsection (c)--
       (A) by striking ``This section does not apply to''; and
       (B) by inserting before ``bona fide salary'' the following: 
     ``The term `anything of value' that is corruptly solicited, 
     demanded, accepted or agreed to be accepted in subsection 
     (a)(1)(B) or corruptly given, offered, or agreed to be given 
     in subsection (a)(2) shall not include''.

     SEC. 6. PENALTY FOR SECTION 641 VIOLATIONS.

       Section 641 of title 18, United States Code, is amended by 
     striking ``ten years'' and inserting ``15 years''.

     SEC. 7. PENALTY FOR SECTION 201(B) VIOLATIONS.

       Section 201(b) of title 18, United States Code, is amended 
     by striking ``fifteen years'' and inserting ``20 years''.

     SEC. 8. INCREASE OF MAXIMUM PENALTIES FOR CERTAIN PUBLIC 
                   CORRUPTION RELATED OFFENSES.

       (a) Solicitation of Political Contributions.--Section 
     602(a) of title 18, United States Code, is amended by 
     striking ``three years'' and inserting ``10 years''.
       (b) Promise of Employment for Political Activity.--Section 
     600 of title 18, United States Code, is amended by striking 
     ``one year'' and inserting ``10 years''.

[[Page S906]]

       (c) Deprivation of Employment for Political Activity.--
     Section 601(a) of title 18, United States Code, is amended by 
     striking ``one year'' and inserting ``10 years''.
       (d) Intimidation To Secure Political Contributions.--
     Section 606 of title 18, United States Code, is amended by 
     striking ``three years'' and inserting ``10 years''.
       (e) Solicitation and Acceptance of Contributions in Federal 
     Offices.--Section 607(a)(2) of title 18, United States Code, 
     is amended by striking ``3 years'' and inserting ``10 
     years''.
       (f) Coercion of Political Activity by Federal Employees.--
     Section 610 of title 18, United States Code, is amended by 
     striking ``three years'' and inserting ``10 years''.

     SEC. 9. ADDITION OF DISTRICT OF COLUMBIA TO THEFT OF PUBLIC 
                   MONEY OFFENSE.

       Section 641 of title 18, United States Code, is amended by 
     inserting ``the District of Columbia or'' before ``the United 
     States'' each place that term appears.

     SEC. 10. ADDITIONAL RICO PREDICATES.

       (a) In General.--Section 1961(1) of title 18, United States 
     Code, is amended--
       (1) by inserting ``section 641 (relating to embezzlement or 
     theft of public money, property, or records),'' after ``473 
     (relating to counterfeiting),''; and
       (2) by inserting ``section 666 (relating to theft or 
     bribery concerning programs receiving Federal funds),'' after 
     ``section 664 (relating to embezzlement from pension and 
     welfare funds),''.
       (b) Conforming Amendments.--Section 1956(c)(7)(D) of title 
     18, United States Code, is amended--
       (1) by striking ``section 641 (relating to public money, 
     property, or records),''; and
       (2) by striking ``section 666 (relating to theft or bribery 
     concerning programs receiving Federal funds),''.

     SEC. 11. ADDITIONAL WIRETAP PREDICATES.

       Section 2516(1)(c) of title 18, United States Code, is 
     amended by inserting ``section 641 (relating to embezzlement 
     or theft of public money, property, or records), section 666 
     (relating to theft or bribery concerning programs receiving 
     Federal funds),'' after ``section 224 (bribery in sporting 
     contests),''.

     SEC. 12. CLARIFICATION OF CRIME OF ILLEGAL GRATUITIES.

       (a) Definition.--Section 201(a) of title 18, United states 
     Code, is amended--
       (1) in paragraph (2), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (3), by striking the period and inserting 
     ``; and''; and
       (3) by inserting at the end the following:
       ``(4) the term `rule or regulation' means a federal 
     regulation or a rule of the House of Representatives and the 
     Senate, including those rules and regulations governing the 
     acceptance of campaign contributions.''.
       (b) Clarification.--Section 201(c)(1) of title 18, United 
     States Code, is amended--
       (1) by striking the matter before subparagraph (A) and 
     inserting ``otherwise than as provided by law for the proper 
     discharge of official duty, or by rule or regulation--'';
       (2) in subparagraph (A), by inserting after ``, or person 
     selected to be a public official,'' the following: ``for or 
     because of the official's or person's official position, or 
     for or because of any official act performed or to be 
     performed by such public official, former public official, or 
     person selected to be a public official''; and
       (3) in subparagraph (B)--
       (A) by striking ``otherwise than as provided by law for the 
     proper discharge of official duty,''; and
       (B) by striking all after ``anything of value personally'' 
     and inserting ``for or because of the official's or person's 
     official position, or for or because of any official act 
     performed or to be performed by such official or person;''.

     SEC. 13. CLARIFICATION OF DEFINITION OF OFFICIAL ACT.

       Section 201(a)(3) of title 18, United States Code, is 
     amended to read as follows:
       ``(3) the term `official act' means any action within the 
     range of official duty, and any decision or action on any 
     question, matter, cause, suit, proceeding or controversy, 
     which may at any time be pending, or which may by law be 
     brought before any public official, in such public official's 
     official capacity or in such official's place of trust or 
     profit. An official act can be a single act, more than one 
     act, or a course of conduct.''.

     SEC. 14. CLARIFICATION OF COURSE OF CONDUCT BRIBERY.

       Section 201 of title 18, United States Code, is amended--
       (1) in subsection (b), by striking ``anything of value'' 
     each place it appears and inserting ``any thing or things of 
     value''; and
       (2) in subsection (c), by striking ``anything of value'' 
     each place it appears and inserting ``any thing or things of 
     value''.

     SEC. 15. EXPANDING VENUE FOR PERJURY AND OBSTRUCTION OF 
                   JUSTICE PROCEEDINGS.

       (a) In General.--Section 1512(i) of title 18, United States 
     Code, is amended to read as follows:
       ``(i) A prosecution under section 1503, 1504, 1505, 1508, 
     1509, 1510, or this section may be brought in the district in 
     which the conduct constituting the alleged offense occurred 
     or in which the official proceeding (whether or not pending 
     or about to be instituted) was intended to be affected.''.
       (b) Perjury.--
       (1) In general.--Chapter 79 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1624. Venue

       ``A prosecution under section 1621(1), 1622 (in regard to 
     subornation of perjury under 1621(1)), or 1623 of this title 
     may be brought in the district in which the oath, 
     declaration, certificate, verification, or statement under 
     penalty of perjury is made or in which a proceeding takes 
     place in connection with the oath, declaration, certificate, 
     verification, or statement.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 79 of title 18, United States Code, is 
     amended by adding at the end the following:
``1624. Venue.''.

     SEC. 16. AMENDMENT OF THE SENTENCING GUIDELINES RELATING TO 
                   CERTAIN CRIMES.

       (a) Directive to Sentencing Commission.--Pursuant to its 
     authority under section 994(p) of title 28, United States 
     Code, and in accordance with this section, the United States 
     Sentencing Commission shall review and amend its guidelines 
     and its policy statements applicable to persons convicted of 
     an offense under sections 201, 641, and 666 of title 18, 
     United States Code, in order to reflect the intent of 
     Congress that such penalties be increased in comparison to 
     those currently provided by the guidelines and policy 
     statements.
       (b) Requirements.--In carrying out this section, the 
     Commission shall--
       (1) ensure that the sentencing guidelines and policy 
     statements reflect Congress' intent that the guidelines and 
     policy statements reflect the serious nature of the offenses 
     described in subsection (a), the incidence of such offenses, 
     and the need for an effective deterrent and appropriate 
     punishment to prevent such offenses;
       (2) consider the extent to which the guidelines may or may 
     not appropriately account for--
       (A) the potential and actual harm to the public and the 
     amount of any loss resulting from the offense;
       (B) the level of sophistication and planning involved in 
     the offense;
       (C) whether the offense was committed for purposes of 
     commercial advantage or private financial benefit;
       (D) whether the defendant acted with intent to cause either 
     physical or property harm in committing the offense;
       (E) the extent to which the offense represented an abuse of 
     trust by the offender and was committed in a manner that 
     undermined public confidence in the Federal, State, or local 
     government; and
       (F) whether the violation was intended to or had the effect 
     of creating a threat to public health or safety, injury to 
     any person or even death;
       (3) assure reasonable consistency with other relevant 
     directives and with other sentencing guidelines;
       (4) account for any additional aggravating or mitigating 
     circumstances that might justify exceptions to the generally 
     applicable sentencing ranges;
       (5) make any necessary conforming changes to the sentencing 
     guidelines; and
       (6) assure that the guidelines adequately meet the purposes 
     of sentencing as set forth in section 3553(a)(2) of title 18, 
     United States Code.

     SEC. 17. PERMITTING THE DISCLOSURE OF INFORMATION REGARDING 
                   POTENTIAL CRIMINAL ACTIVITY TO APPROPRIATE LAW 
                   ENFORCEMENT AUTHORITIES.

       Section 360(a) of title 28, United States Code, is 
     amended--
       (1) in paragraph (2), by striking ``or'' after the 
     semicolon;
       (2) in paragraph (3), by striking the period and inserting 
     ``; or''; and
       (3) by inserting after paragraph (3) the following:
       ``(4) disclosure of information regarding a potential 
     criminal offense may be made to the United States Department 
     of Justice, a Federal, State, or local grand jury, or 
     Federal, State, or local law enforcement agents.''.
                                 ______