[Congressional Record (Bound Edition), Volume 147 (2001), Part 14]
[House]
[Pages 20400-20450]
[From the U.S. Government Publishing Office, www.gpo.gov]



   UNITING AND STRENGTHENING AMERICA BY PROVIDING APPROPRIATE TOOLS 
 REQUIRED TO INTERCEPT AND OBSTRUCT TERRORISM (USA PATRIOT) ACT OF 2001

  Mr. SENSENBRENNER. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 3162) to deter and punish terrorist acts in the United 
States and around the world, to enhance law enforcement investigatory 
tools, and for other purposes.
  The Clerk read as follows:

                               H.R. 3162

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Uniting 
     and Strengthening America Act by Providing Appropriate Tools 
     Required to Intercept and Obstruct Terrorism (USA PATRIOT) 
     Act of 2001''.
       (b) Table of Contents.-- The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Construction; severability.

         TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM

Sec. 101. Counterterrorism fund.
Sec. 102. Sense of Congress condemning discrimination against Arab and 
              Muslim Americans.
Sec. 103. Increased funding for the technical support center at the 
              Federal Bureau of Investigation.
Sec. 104. Requests for military assistance to enforce prohibition in 
              certain emergencies.
Sec. 105. Expansion of National Electronic Crime Task Force Initiative.
Sec. 106. Presidential authority.

               TITLE II--ENHANCED SURVEILLANCE PROCEDURES

Sec. 201. Authority to intercept wire, oral, and electronic 
              communications relating to terrorism.
Sec. 202. Authority to intercept wire, oral, and electronic 
              communications relating to computer fraud and abuse 
              offenses.
Sec. 203. Authority to share criminal investigative information.
Sec. 204. Clarification of intelligence exceptions from limitations on 
              interception and disclosure of wire, oral, and electronic 
              communications.
Sec. 205. Employment of translators by the Federal Bureau of 
              Investigation.
Sec. 206. Roving surveillance authority under the Foreign Intelligence 
              Surveillance Act of 1978.
Sec. 207. Duration of FISA surveillance of non-United States persons 
              who are agents of a foreign power.
Sec. 208. Designation of judges.
Sec. 209. Seizure of voice-mail messages pursuant to warrants.
Sec. 210. Scope of subpoenas for records of electronic communications.
Sec. 211. Clarification of scope.
Sec. 212. Emergency disclosure of electronic communications to protect 
              life and limb.
Sec. 213. Authority for delaying notice of the execution of a warrant.
Sec. 214. Pen register and trap and trace authority under FISA.
Sec. 215. Access to records and other items under the Foreign 
              Intelligence Surveillance Act.
Sec. 216. Modification of authorities relating to use of pen registers 
              and trap and trace devices.
Sec. 217. Interception of computer trespasser communications.
Sec. 218. Foreign intelligence information.
Sec. 219. Single-jurisdiction search warrants for terrorism.
Sec. 220. Nationwide service of search warrants for electronic 
              evidence.
Sec. 221. Trade sanctions.
Sec. 222. Assistance to law enforcement agencies.
Sec. 223. Civil liability for certain unauthorized disclosures.
Sec. 224. Sunset.
Sec. 225. Immunity for compliance with FISA wiretap.

TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST 
                         FINANCING ACT OF 2001

Sec. 301. Short title.
Sec. 302. Findings and purposes.
Sec. 303. 4-year congressional review; expedited consideration.

Subtitle A--International Counter Money Laundering and Related Measures

Sec. 311. Special measures for jurisdictions, financial institutions, 
              or international transactions of primary money laundering 
              concern.
Sec. 312. Special due diligence for correspondent accounts and private 
              banking accounts.
Sec. 313. Prohibition on United States correspondent accounts with 
              foreign shell banks.
Sec. 314. Cooperative efforts to deter money laundering.
Sec. 315. Inclusion of foreign corruption offenses as money laundering 
              crimes.
Sec. 316. Anti-terrorist forfeiture protection.
Sec. 317. Long-arm jurisdiction over foreign money launderers.
Sec. 318. Laundering money through a foreign bank.
Sec. 319. Forfeiture of funds in United States interbank accounts.
Sec. 320. Proceeds of foreign crimes.
Sec. 321. Financial institutions specified in subchapter II of chapter 
              53 of title 31, United States code.
Sec. 322. Corporation represented by a fugitive.
Sec. 323. Enforcement of foreign judgments.
Sec. 324. Report and recommendation.
Sec. 325. Concentration accounts at financial institutions.
Sec. 326. Verification of identification.
Sec. 327. Consideration of anti-money laundering record.
Sec. 328. International cooperation on identification of originators of 
              wire transfers.
Sec. 329. Criminal penalties.
Sec. 330. International cooperation in investigations of money 
              laundering, financial crimes, and the finances of 
              terrorist groups.

    Subtitle B--Bank Secrecy Act Amendments and Related Improvements

Sec. 351. Amendments relating to reporting of suspicious activities.
Sec. 352. Anti-money laundering programs.
Sec. 353. Penalties for violations of geographic targeting orders and 
              certain recordkeeping requirements, and lengthening 
              effective period of geographic targeting orders.
Sec. 354. Anti-money laundering strategy.
Sec. 355. Authorization to include suspicions of illegal activity in 
              written employment references.
Sec. 356. Reporting of suspicious activities by securities brokers and 
              dealers; investment company study.
Sec. 357. Special report on administration of bank secrecy provisions.
Sec. 358. Bank secrecy provisions and activities of United States 
              intelligence agencies to fight international terrorism.
Sec. 359. Reporting of suspicious activities by underground banking 
              systems.
Sec. 360. Use of authority of United States Executive Directors.
Sec. 361. Financial crimes enforcement network.
Sec. 362. Establishment of highly secure network.
Sec. 363. Increase in civil and criminal penalties for money 
              laundering.

[[Page 20401]]

Sec. 364. Uniform protection authority for Federal Reserve facilities.
Sec. 365. Reports relating to coins and currency received in 
              nonfinancial trade or business.
Sec. 366. Efficient use of currency transaction report system.

               Subtitle C--Currency Crimes and Protection

Sec. 371. Bulk cash smuggling into or out of the United States.
Sec. 372. Forfeiture in currency reporting cases.
Sec. 373. Illegal money transmitting businesses.
Sec. 374. Counterfeiting domestic currency and obligations.
Sec. 375. Counterfeiting foreign currency and obligations.
Sec. 376. Laundering the proceeds of terrorism.
Sec. 377. Extraterritorial jurisdiction.

                    TITLE IV--PROTECTING THE BORDER

               Subtitle A--Protecting the Northern Border

Sec. 401. Ensuring adequate personnel on the northern border.
Sec. 402. Northern border personnel.
Sec. 403. Access by the Department of State and the INS to certain 
              identifying information in the criminal history records 
              of visa applicants and applicants for admission to the 
              United States.
Sec. 404. Limited authority to pay overtime.
Sec. 405. Report on the integrated automated fingerprint identification 
              system for ports of entry and overseas consular posts.

              Subtitle B--Enhanced Immigration Provisions

Sec. 411. Definitions relating to terrorism.
Sec. 412. Mandatory detention of suspected terrorists; habeas corpus; 
              judicial review.
Sec. 413. Multilateral cooperation against terrorists.
Sec. 414. Visa integrity and security.
Sec. 415. Participation of Office of Homeland Security on Entry-Exit 
              Task Force.
Sec. 416. Foreign student monitoring program.
Sec. 417. Machine readable passports.
Sec. 418. Prevention of consulate shopping.

    Subtitle C--Preservation of Immigration Benefits for Victims of 
                               Terrorism

Sec. 421. Special immigrant status.
Sec. 422. Extension of filing or reentry deadlines.
Sec. 423. Humanitarian relief for certain surviving spouses and 
              children.
Sec. 424. ``Age-out'' protection for children.
Sec. 425. Temporary administrative relief.
Sec. 426. Evidence of death, disability, or loss of employment.
Sec. 427. No benefits to terrorists or family members of terrorists.
Sec. 428. Definitions.

         TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM

Sec. 501. Attorney General's authority to pay rewards to combat 
              terrorism.
Sec. 502. Secretary of State's authority to pay rewards.
Sec. 503. DNA identification of terrorists and other violent offenders.
Sec. 504. Coordination with law enforcement.
Sec. 505. Miscellaneous national security authorities.
Sec. 506. Extension of Secret Service jurisdiction.
Sec. 507. Disclosure of educational records.
Sec. 508. Disclosure of information from NCES surveys.

 TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS, 
                           AND THEIR FAMILIES

         Subtitle A--Aid to Families of Public Safety Officers

Sec. 611. Expedited payment for public safety officers involved in the 
              prevention, investigation, rescue, or recovery efforts 
              related to a terrorist attack.
Sec. 612. Technical correction with respect to expedited payments for 
              heroic public safety officers.
Sec. 613. Public safety officers benefit program payment increase.
Sec. 614. Office of Justice programs.

       Subtitle B--Amendments to the Victims of Crime Act of 1984

Sec. 621. Crime victims fund.
Sec. 622. Crime victim compensation.
Sec. 623. Crime victim assistance.
Sec. 624. Victims of terrorism.

 TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE 
                               PROTECTION

Sec. 711. Expansion of regional information sharing system to 
              facilitate Federal-State-local law enforcement response 
              related to terrorist attacks.

     TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM

Sec. 801. Terrorist attacks and other acts of violence against mass 
              transportation systems.
Sec. 802. Definition of domestic terrorism.
Sec. 803. Prohibition against harboring terrorists.
Sec. 804. Jurisdiction over crimes committed at U.S. facilities abroad.
Sec. 805. Material support for terrorism.
Sec. 806. Assets of terrorist organizations.
Sec. 807. Technical clarification relating to provision of material 
              support to terrorism.
Sec. 808. Definition of Federal crime of terrorism.
Sec. 809. No statute of limitation for certain terrorism offenses.
Sec. 810. Alternate maximum penalties for terrorism offenses.
Sec. 811. Penalties for terrorist conspiracies.
Sec. 812. Post-release supervision of terrorists.
Sec. 813. Inclusion of acts of terrorism as racketeering activity.
Sec. 814. Deterrence and prevention of cyberterrorism.
Sec. 815. Additional defense to civil actions relating to preserving 
              records in response to Government requests.
Sec. 816. Development and support of cybersecurity forensic 
              capabilities.
Sec. 817. Expansion of the biological weapons statute.

                    TITLE IX--IMPROVED INTELLIGENCE

Sec. 901. Responsibilities of Director of Central Intelligence 
              regarding foreign intelligence collected under Foreign 
              Intelligence Surveillance Act of 1978.
Sec. 902. Inclusion of international terrorist activities within scope 
              of foreign intelligence under National Security Act of 
              1947.
Sec. 903. Sense of Congress on the establishment and maintenance of 
              intelligence relationships to acquire information on 
              terrorists and terrorist organizations.
Sec. 904. Temporary authority to defer submittal to Congress of reports 
              on intelligence and intelligence-related matters.
Sec. 905. Disclosure to Director of Central Intelligence of foreign 
              intelligence-related information with respect to criminal 
              investigations.
Sec. 906. Foreign terrorist asset tracking center.
Sec. 907. National Virtual Translation Center.
Sec. 908. Training of government officials regarding identification and 
              use of foreign intelligence.

                         TITLE X--MISCELLANEOUS

Sec. 1001. Review of the department of justice.
Sec. 1002. Sense of congress.
Sec. 1003. Definition of ``electronic surveillance''.
Sec. 1004. Venue in money laundering cases.
Sec. 1005. First responders assistance act.
Sec. 1006. Inadmissibility of aliens engaged in money laundering.
Sec. 1007. Authorization of funds for dea police training in south and 
              central asia.
Sec. 1008. Feasibility study on use of biometric identifier scanning 
              system with access to the fbi integrated automated 
              fingerprint identification system at overseas consular 
              posts and points of entry to the United States.
Sec. 1009. Study of access.
Sec. 1010. Temporary authority to contract with local and State 
              governments for performance of security functions at 
              United States military installations.
Sec. 1011. Crimes against charitable americans.
Sec. 1012. Limitation on issuance of hazmat licenses.
Sec. 1013. Expressing the sense of the senate concerning the provision 
              of funding for bioterrorism preparedness and response.
Sec. 1014. Grant program for State and local domestic preparedness 
              support.
Sec. 1015. Expansion and reauthorization of the crime identification 
              technology act for antiterrorism grants to States and 
              localities.
Sec. 1016. Critical infrastructures protection.

     SEC. 2. CONSTRUCTION; SEVERABILITY.

       Any provision of this Act held to be invalid or 
     unenforceable by its terms, or as applied to any person or 
     circumstance, shall be construed so as to give it the maximum 
     effect permitted by law, unless such holding shall be one of 
     utter invalidity or unenforceability, in which event such 
     provision shall be deemed severable from this Act and shall 
     not affect the remainder thereof or the application of such 
     provision to other persons not similarly situated or to 
     other, dissimilar circumstances.

         TITLE I--ENHANCING DOMESTIC SECURITY AGAINST TERRORISM

     SEC. 101. COUNTERTERRORISM FUND.

       (a) Establishment; Availability.--There is hereby 
     established in the Treasury of the United States a separate 
     fund to be known as the ``Counterterrorism Fund'', amounts in

[[Page 20402]]

     which shall remain available without fiscal year limitation--
       (1) to reimburse any Department of Justice component for 
     any costs incurred in connection with--
       (A) reestablishing the operational capability of an office 
     or facility that has been damaged or destroyed as the result 
     of any domestic or international terrorism incident;
       (B) providing support to counter, investigate, or prosecute 
     domestic or international terrorism, including, without 
     limitation, paying rewards in connection with these 
     activities; and
       (C) conducting terrorism threat assessments of Federal 
     agencies and their facilities; and
       (2) to reimburse any department or agency of the Federal 
     Government for any costs incurred in connection with 
     detaining in foreign countries individuals accused of acts of 
     terrorism that violate the laws of the United States.
       (b) No Effect on Prior Appropriations.--Subsection (a) 
     shall not be construed to affect the amount or availability 
     of any appropriation to the Counterterrorism Fund made before 
     the date of the enactment of this Act.

     SEC. 102. SENSE OF CONGRESS CONDEMNING DISCRIMINATION AGAINST 
                   ARAB AND MUSLIM AMERICANS.

       (a) Findings.--Congress makes the following findings:
       (1) Arab Americans, Muslim Americans, and Americans from 
     South Asia play a vital role in our Nation and are entitled 
     to nothing less than the full rights of every American.
       (2) The acts of violence that have been taken against Arab 
     and Muslim Americans since the September 11, 2001, attacks 
     against the United States should be and are condemned by all 
     Americans who value freedom.
       (3) The concept of individual responsibility for wrongdoing 
     is sacrosanct in American society, and applies equally to all 
     religious, racial, and ethnic groups.
       (4) When American citizens commit acts of violence against 
     those who are, or are perceived to be, of Arab or Muslim 
     descent, they should be punished to the full extent of the 
     law.
       (5) Muslim Americans have become so fearful of harassment 
     that many Muslim women are changing the way they dress to 
     avoid becoming targets.
       (6) Many Arab Americans and Muslim Americans have acted 
     heroically during the attacks on the United States, including 
     Mohammed Salman Hamdani, a 23-year-old New Yorker of 
     Pakistani descent, who is believed to have gone to the World 
     Trade Center to offer rescue assistance and is now missing.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the civil rights and civil liberties of all Americans, 
     including Arab Americans, Muslim Americans, and Americans 
     from South Asia, must be protected, and that every effort 
     must be taken to preserve their safety;
       (2) any acts of violence or discrimination against any 
     Americans be condemned; and
       (3) the Nation is called upon to recognize the patriotism 
     of fellow citizens from all ethnic, racial, and religious 
     backgrounds.

     SEC. 103. INCREASED FUNDING FOR THE TECHNICAL SUPPORT CENTER 
                   AT THE FEDERAL BUREAU OF INVESTIGATION.

       There are authorized to be appropriated for the Technical 
     Support Center established in section 811 of the 
     Antiterrorism and Effective Death Penalty Act of 1996 (Public 
     Law 104-132) to help meet the demands for activities to 
     combat terrorism and support and enhance the technical 
     support and tactical operations of the FBI, $200,000,000 for 
     each of the fiscal years 2002, 2003, and 2004.

     SEC. 104. REQUESTS FOR MILITARY ASSISTANCE TO ENFORCE 
                   PROHIBITION IN CERTAIN EMERGENCIES.

       Section 2332e of title 18, United States Code, is amended--
       (1) by striking ``2332c'' and inserting ``2332a''; and
       (2) by striking ``chemical''.

     SEC. 105. EXPANSION OF NATIONAL ELECTRONIC CRIME TASK FORCE 
                   INITIATIVE.

       The Director of the United States Secret Service shall take 
     appropriate actions to develop a national network of 
     electronic crime task forces, based on the New York 
     Electronic Crimes Task Force model, throughout the United 
     States, for the purpose of preventing, detecting, and 
     investigating various forms of electronic crimes, including 
     potential terrorist attacks against critical infrastructure 
     and financial payment systems.

     SEC. 106. PRESIDENTIAL AUTHORITY.

       Section 203 of the International Emergency Powers Act (50 
     U.S.C. 1702) is amended--
       (1) in subsection (a)(1)--
       (A) at the end of subparagraph (A) (flush to that 
     subparagraph), by striking ``; and'' and inserting a comma 
     and the following:

     ``by any person, or with respect to any property, subject to 
     the jurisdiction of the United States;'';
       (B) in subparagraph (B)--
       (i) by inserting ``, block during the pendency of an 
     investigation'' after ``investigate''; and
       (ii) by striking ``interest;'' and inserting ``interest by 
     any person, or with respect to any property, subject to the 
     jurisdiction of the United States; and'';
       (C) by striking ``by any person, or with respect to any 
     property, subject to the jurisdiction of the United States`; 
     and
       (D) by inserting at the end the following:
       ``(C) when the United States is engaged in armed 
     hostilities or has been attacked by a foreign country or 
     foreign nationals, confiscate any property, subject to the 
     jurisdiction of the United States, of any foreign person, 
     foreign organization, or foreign country that he determines 
     has planned, authorized, aided, or engaged in such 
     hostilities or attacks against the United States; and all 
     right, title, and interest in any property so confiscated 
     shall vest, when, as, and upon the terms directed by the 
     President, in such agency or person as the President may 
     designate from time to time, and upon such terms and 
     conditions as the President may prescribe, such interest or 
     property shall be held, used, administered, liquidated, sold, 
     or otherwise dealt with in the interest of and for the 
     benefit of the United States, and such designated agency or 
     person may perform any and all acts incident to the 
     accomplishment or furtherance of these purposes.''; and
       (2) by inserting at the end the following:
       ``(c) Classified Information.--In any judicial review of a 
     determination made under this section, if the determination 
     was based on classified information (as defined in section 
     1(a) of the Classified Information Procedures Act) such 
     information may be submitted to the reviewing court ex parte 
     and in camera. This subsection does not confer or imply any 
     right to judicial review.''.

               TITLE II--ENHANCED SURVEILLANCE PROCEDURES

     SEC. 201. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC 
                   COMMUNICATIONS RELATING TO TERRORISM.

       Section 2516(1) of title 18, United States Code, is 
     amended--
       (1) by redesignating paragraph (p), as so redesignated by 
     section 434(2) of the Antiterrorism and Effective Death 
     Penalty Act of 1996 (Public Law 104-132; 110 Stat. 1274), as 
     paragraph (r); and
       (2) by inserting after paragraph (p), as so redesignated by 
     section 201(3) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (division C of Public 
     Law 104-208; 110 Stat. 3009-565), the following new 
     paragraph:
       ``(q) any criminal violation of section 229 (relating to 
     chemical weapons); or sections 2332, 2332a, 2332b, 2332d, 
     2339A, or 2339B of this title (relating to terrorism); or''.

     SEC. 202. AUTHORITY TO INTERCEPT WIRE, ORAL, AND ELECTRONIC 
                   COMMUNICATIONS RELATING TO COMPUTER FRAUD AND 
                   ABUSE OFFENSES.

       Section 2516(1)(c) of title 18, United States Code, is 
     amended by striking ``and section 1341 (relating to mail 
     fraud),'' and inserting ``section 1341 (relating to mail 
     fraud), a felony violation of section 1030 (relating to 
     computer fraud and abuse),''.

     SEC. 203. AUTHORITY TO SHARE CRIMINAL INVESTIGATIVE 
                   INFORMATION.

       (a) Authority To Share Grand Jury Information.--
       (1) In general.--Rule 6(e)(3)(C) of the Federal Rules of 
     Criminal Procedure is amended to read as follows:
       ``(C)(i) Disclosure otherwise prohibited by this rule of 
     matters occurring before the grand jury may also be made--
       ``(I) when so directed by a court preliminarily to or in 
     connection with a judicial proceeding;
       ``(II) when permitted by a court at the request of the 
     defendant, upon a showing that grounds may exist for a motion 
     to dismiss the indictment because of matters occurring before 
     the grand jury;
       ``(III) when the disclosure is made by an attorney for the 
     government to another Federal grand jury;
       ``(IV) when permitted by a court at the request of an 
     attorney for the government, upon a showing that such matters 
     may disclose a violation of state criminal law, to an 
     appropriate official of a state or subdivision of a state for 
     the purpose of enforcing such law; or
       ``(V) when the matters involve foreign intelligence or 
     counterintelligence (as defined in section 3 of the National 
     Security Act of 1947 (50 U.S.C. 401a)), or foreign 
     intelligence information (as defined in clause (iv) of this 
     subparagraph), to any Federal law enforcement, intelligence, 
     protective, immigration, national defense, or national 
     security official in order to assist the official receiving 
     that information in the performance of his official duties.
       ``(ii) If the court orders disclosure of matters occurring 
     before the grand jury, the disclosure shall be made in such 
     manner, at such time, and under such conditions as the court 
     may direct.
       ``(iii) Any Federal official to whom information is 
     disclosed pursuant to clause (i)(V) of this subparagraph may 
     use that information only as necessary in the conduct of that 
     person's official duties subject to any limitations on the 
     unauthorized disclosure of such information. Within a 
     reasonable time after

[[Page 20403]]

     such disclosure, an attorney for the government shall file 
     under seal a notice with the court stating the fact that such 
     information was disclosed and the departments, agencies, or 
     entities to which the disclosure was made.
       ``(iv) In clause (i)(V) of this subparagraph, the term 
     `foreign intelligence information' means--
       ``(I) information, whether or not concerning a United 
     States person, that relates to the ability of the United 
     States to protect against--

       ``(aa) actual or potential attack or other grave hostile 
     acts of-a foreign power or an agent of a foreign power;
       ``(bb) sabotage or international terrorism by a foreign 
     power or an agent of a foreign power; or
       ``(cc) clandestine intelligence activities by an 
     intelligence service or network of a foreign power or by an 
     agent of foreign power; or

       ``(II) information, whether or not concerning a United 
     States person, with respect to a foreign power or foreign 
     territory that relates to--

       ``(aa) the national defense or the security of the United 
     States; or
       ``(bb) the conduct of the foreign affairs of the United 
     States.''.

       (2) Conforming amendment.--Rule 6(e)(3)(D) of the Federal 
     Rules of Criminal Procedure is amended by striking 
     ``(e)(3)(C)(i)'' and inserting ``(e)(3)(C)(i)(I)''.
       (b) Authority To Share Electronic, Wire, and Oral 
     Interception Information.--
       (1) Law enforcement.--Section 2517 of title 18, United 
     States Code, is amended by inserting at the end the 
     following:
       ``(6) Any investigative or law enforcement officer, or 
     attorney for the Government, who by any means authorized by 
     this chapter, has obtained knowledge of the contents of any 
     wire, oral, or electronic communication, or evidence derived 
     therefrom, may disclose such contents to any other Federal 
     law enforcement, intelligence, protective, immigration, 
     national defense, or national security official to the extent 
     that such contents include foreign intelligence or 
     counterintelligence (as defined in section 3 of the National 
     Security Act of 1947 (50 U.S.C. 401a)), or foreign 
     intelligence information (as defined in subsection (19) of 
     section 2510 of this title), to assist the official who is to 
     receive that information in the performance of his official 
     duties. Any Federal official who receives information 
     pursuant to this provision may use that information only as 
     necessary in the conduct of that person's official duties 
     subject to any limitations on the unauthorized disclosure of 
     such information.''.
       (2) Definition.--Section 2510 of title 18, United States 
     Code, is amended by--
       (A) in paragraph (17), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (18), by striking the period and inserting 
     ``; and''; and
       (C) by inserting at the end the following:
       ``(19) `foreign intelligence information' means--
       ``(A) information, whether or not concerning a United 
     States person, that relates to the ability of the United 
     States to protect against--
       ``(i) actual or potential attack or other grave hostile 
     acts of a foreign power or an agent of a foreign power;
       ``(ii) sabotage or international terrorism by a foreign 
     power or an agent of a foreign power; or
       ``(iii) clandestine intelligence activities by an 
     intelligence service or network of a foreign power or by an 
     agent of a foreign power; or
       ``(B) information, whether or not concerning a United 
     States person, with respect to a foreign power or foreign 
     territory that relates to--
       ``(i) the national defense or the security of the United 
     States; or
       ``(ii) the conduct of the foreign affairs of the United 
     States.''.
       (c) Procedures.--The Attorney General shall establish 
     procedures for the disclosure of information pursuant to 
     section 2517(6) and Rule 6(e)(3)(C)(i)(V) of the Federal 
     Rules of Criminal Procedure that identifies a United States 
     person, as defined in section 101 of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1801)).
       (d) Foreign Intelligence Information.--
       (1) In general.--Notwithstanding any other provision of 
     law, it shall be lawful for foreign intelligence or 
     counterintelligence (as defined in section 3 of the National 
     Security Act of 1947 (50 U.S.C. 401a)) or foreign 
     intelligence information obtained as part of a criminal 
     investigation to be disclosed to any Federal law enforcement, 
     intelligence, protective, immigration, national defense, or 
     national security official in order to assist the official 
     receiving that information in the performance of his official 
     duties. Any Federal official who receives information 
     pursuant to this provision may use that information only as 
     necessary in the conduct of that person's official duties 
     subject to any limitations on the unauthorized disclosure of 
     such information.
       (2) Definition.--In this subsection, the term ``foreign 
     intelligence information'' means--
       (A) information, whether or not concerning a United States 
     person, that relates to the ability of the United States to 
     protect against--
       (i) actual or potential attack or other grave hostile acts 
     of a foreign power or an agent of a foreign power;
       (ii) sabotage or international terrorism by a foreign power 
     or an agent of a foreign power; or
       (iii) clandestine intelligence activities by an 
     intelligence service or network of a foreign power or by an 
     agent of a foreign power; or
       (B) information, whether or not concerning a United States 
     person, with respect to a foreign power or foreign territory 
     that relates to--
       (i) the national defense or the security of the United 
     States; or
       (ii) the conduct of the foreign affairs of the United 
     States.

     SEC. 204. CLARIFICATION OF INTELLIGENCE EXCEPTIONS FROM 
                   LIMITATIONS ON INTERCEPTION AND DISCLOSURE OF 
                   WIRE, ORAL, AND ELECTRONIC COMMUNICATIONS.

       Section 2511(2)(f) of title 18, United States Code, is 
     amended--
       (1) by striking ``this chapter or chapter 121'' and 
     inserting ``this chapter or chapter 121 or 206 of this 
     title''; and
       (2) by striking ``wire and oral'' and inserting ``wire, 
     oral, and electronic''.

     SEC. 205. EMPLOYMENT OF TRANSLATORS BY THE FEDERAL BUREAU OF 
                   INVESTIGATION.

       (a) Authority.--The Director of the Federal Bureau of 
     Investigation is authorized to expedite the employment of 
     personnel as translators to support counterterrorism 
     investigations and operations without regard to applicable 
     Federal personnel requirements and limitations.
       (b) Security Requirements.--The Director of the Federal 
     Bureau of Investigation shall establish such security 
     requirements as are necessary for the personnel employed as 
     translators under subsection (a).
       (c) Report.--The Attorney General shall report to the 
     Committees on the Judiciary of the House of Representatives 
     and the Senate on--
       (1) the number of translators employed by the FBI and other 
     components of the Department of Justice;
       (2) any legal or practical impediments to using translators 
     employed by other Federal, State, or local agencies, on a 
     full, part-time, or shared basis; and
       (3) the needs of the FBI for specific translation services 
     in certain languages, and recommendations for meeting those 
     needs.

     SEC. 206. ROVING SURVEILLANCE AUTHORITY UNDER THE FOREIGN 
                   INTELLIGENCE SURVEILLANCE ACT OF 1978.

       Section 105(c)(2)(B) of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1805(c)(2)(B)) is amended 
     by inserting ``, or in circumstances where the Court finds 
     that the actions of the target of the application may have 
     the effect of thwarting the identification of a specified 
     person, such other persons,'' after ``specified person''.

     SEC. 207. DURATION OF FISA SURVEILLANCE OF NON-UNITED STATES 
                   PERSONS WHO ARE AGENTS OF A FOREIGN POWER.

       (a) Duration .--
       (1) Surveillance.--Section 105(e)(1) of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(e)(1)) 
     is amended by--
       (A) inserting ``(A)'' after ``except that''; and
       (B) inserting before the period the following: ``, and (B) 
     an order under this Act for a surveillance targeted against 
     an agent of a foreign power, as defined in section 
     101(b)(1)(A) may be for the period specified in the 
     application or for 120 days, whichever is less''.
       (2) Physical Search.--Section 304(d)(1) of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(1)) 
     is amended by--
       (A) striking ``forty-five'' and inserting ``90'';
       (B) inserting ``(A)'' after ``except that''; and
       (C) inserting before the period the following: ``, and (B) 
     an order under this section for a physical search targeted 
     against an agent of a foreign power as defined in section 
     101(b)(1)(A) may be for the period specified in the 
     application or for 120 days, whichever is less''.
       (b) Extension.--
       (1) In general.--Section 105(d)(2) of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1805(d)(2)) 
     is amended by--
       (A) inserting ``(A)'' after ``except that''; and
       (B) inserting before the period the following: ``, and (B) 
     an extension of an order under this Act for a surveillance 
     targeted against an agent of a foreign power as defined in 
     section 101(b)(1)(A) may be for a period not to exceed 1 
     year''.
       (2) Defined term.--Section 304(d)(2) of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1824(d)(2) 
     is amended by inserting after ``not a United States person,'' 
     the following: ``or against an agent of a foreign power as 
     defined in section 101(b)(1)(A),''.

     SEC. 208. DESIGNATION OF JUDGES.

       Section 103(a) of the Foreign Intelligence Surveillance Act 
     of 1978 (50 U.S.C. 1803(a)) is amended by--
       (1) striking ``seven district court judges'' and inserting 
     ``11 district court judges''; and
       (2) inserting ``of whom no fewer than 3 shall reside within 
     20 miles of the District of Columbia'' after ``circuits''.

[[Page 20404]]



     SEC. 209. SEIZURE OF VOICE-MAIL MESSAGES PURSUANT TO 
                   WARRANTS.

       Title 18, United States Code, is amended--
       (1) in section 2510--
       (A) in paragraph (1), by striking beginning with ``and 
     such'' and all that follows through ``communication''; and
       (B) in paragraph (14), by inserting ``wire or'' after 
     ``transmission of''; and
       (2) in subsections (a) and (b) of section 2703--
       (A) by striking ``Contents of electronic'' and inserting 
     ``Contents of wire or electronic'' each place it appears;
       (B) by striking ``contents of an electronic'' and inserting 
     ``contents of a wire or electronic'' each place it appears; 
     and
       (C) by striking ``any electronic'' and inserting ``any wire 
     or electronic'' each place it appears.

     SEC. 210. SCOPE OF SUBPOENAS FOR RECORDS OF ELECTRONIC 
                   COMMUNICATIONS.

       Section 2703(c)(2) of title 18, United States Code, as 
     redesignated by section 212, is amended--
       (1) by striking ``entity the name, address, local and long 
     distance telephone toll billing records, telephone number or 
     other subscriber number or identity, and length of service of 
     a subscriber'' and inserting the following: ``entity the--
       ``(A) name;
       ``(B) address;
       ``(C) local and long distance telephone connection records, 
     or records of session times and durations;
       ``(D) length of service (including start date) and types of 
     service utilized;
       ``(E) telephone or instrument number or other subscriber 
     number or identity, including any temporarily assigned 
     network address; and
       ``(F) means and source of payment for such service 
     (including any credit card or bank account number),
     of a subscriber''; and
       (2) by striking ``and the types of services the subscriber 
     or customer utilized,''.

     SEC. 211. CLARIFICATION OF SCOPE.

       Section 631 of the Communications Act of 1934 (47 U.S.C. 
     551) is amended--
       (1) in subsection (c)(2)--
       (A) in subparagraph (B), by striking ``or'';
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (C) by inserting at the end the following:
       ``(D) to a government entity as authorized under chapters 
     119, 121, or 206 of title 18, United States Code, except that 
     such disclosure shall not include records revealing cable 
     subscriber selection of video programming from a cable 
     operator.''; and
       (2) in subsection (h), by striking ``A governmental 
     entity'' and inserting ``Except as provided in subsection 
     (c)(2)(D), a governmental entity''.

     SEC. 212. EMERGENCY DISCLOSURE OF ELECTRONIC COMMUNICATIONS 
                   TO PROTECT LIFE AND LIMB.

       (a) Disclosure of Contents.--
       (1) In general.--Section 2702 of title 18, United States 
     Code, is amended--
       (A) by striking the section heading and inserting the 
     following:

     ``Sec. 2702. Voluntary disclosure of customer communications 
       or records'';

       (B) in subsection (a)--
       (i) in paragraph (2)(A), by striking ``and'' at the end;
       (ii) in paragraph (2)(B), by striking the period and 
     inserting ``; and''; and
       (iii) by inserting after paragraph (2) the following:
       ``(3) a provider of remote computing service or electronic 
     communication service to the public shall not knowingly 
     divulge a record or other information pertaining to a 
     subscriber to or customer of such service (not including the 
     contents of communications covered by paragraph (1) or (2)) 
     to any governmental entity.'';
       (C) in subsection (b), by striking ``Exceptions.--A person 
     or entity'' and inserting ``Exceptions for disclosure of 
     communications.-- A provider described in subsection (a)'';
       (D) in subsection (b)(6)--
       (i) in subparagraph (A)(ii), by striking ``or'';
       (ii) in subparagraph (B), by striking the period and 
     inserting ``; or''; and
       (iii) by adding after subparagraph (B) the following:
       ``(C) if the provider reasonably believes that an emergency 
     involving immediate danger of death or serious physical 
     injury to any person requires disclosure of the information 
     without delay.''; and
       (E) by inserting after subsection (b) the following:
       ``(c) Exceptions for Disclosure of Customer Records.--A 
     provider described in subsection (a) may divulge a record or 
     other information pertaining to a subscriber to or customer 
     of such service (not including the contents of communications 
     covered by subsection (a)(1) or (a)(2))--
       ``(1) as otherwise authorized in section 2703;
       ``(2) with the lawful consent of the customer or 
     subscriber;
       ``(3) as may be necessarily incident to the rendition of 
     the service or to the protection of the rights or property of 
     the provider of that service;
       ``(4) to a governmental entity, if the provider reasonably 
     believes that an emergency involving immediate danger of 
     death or serious physical injury to any person justifies 
     disclosure of the information; or
       ``(5) to any person other than a governmental entity.''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 121 of title 18, United States Code, is 
     amended by striking the item relating to section 2702 and 
     inserting the following:

``2702. Voluntary disclosure of customer communications or records.''.

       (b) Requirements for Government Access.--
       (1) In general.--Section 2703 of title 18, United States 
     Code, is amended--
       (A) by striking the section heading and inserting the 
     following:

     ``Sec. 2703. Required disclosure of customer communications 
       or records'';

       (B) in subsection (c) by redesignating paragraph (2) as 
     paragraph (3);
       (C) in subsection (c)(1)--
       (i) by striking ``(A) Except as provided in subparagraph 
     (B), a provider of electronic communication service or remote 
     computing service may'' and inserting ``A governmental entity 
     may require a provider of electronic communication service or 
     remote computing service to'';
       (ii) by striking ``covered by subsection (a) or (b) of this 
     section) to any person other than a governmental entity.
       ``(B) A provider of electronic communication service or 
     remote computing service shall disclose a record or other 
     information pertaining to a subscriber to or customer of such 
     service (not including the contents of communications covered 
     by subsection (a) or (b) of this section) to a governmental 
     entity'' and inserting ``)'';
       (iii) by redesignating subparagraph (C) as paragraph (2);
       (iv) by redesignating clauses (i), (ii), (iii), and (iv) as 
     subparagraphs (A), (B), (C), and (D), respectively;
       (v) in subparagraph (D) (as redesignated) by striking the 
     period and inserting ``; or''; and
       (vi) by inserting after subparagraph (D) (as redesignated) 
     the following:
       ``(E) seeks information under paragraph (2).''; and
       (D) in paragraph (2) (as redesignated) by striking 
     ``subparagraph (B)'' and insert ``paragraph (1)''.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 121 of title 18, United States Code, is 
     amended by striking the item relating to section 2703 and 
     inserting the following:

``2703. Required disclosure of customer communications or records.''.

     SEC. 213. AUTHORITY FOR DELAYING NOTICE OF THE EXECUTION OF A 
                   WARRANT.

       Section 3103a of title 18, United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``In 
     addition''; and
       (2) by adding at the end the following:
       ``(b) Delay.--With respect to the issuance of any warrant 
     or court order under this section, or any other rule of law, 
     to search for and seize any property or material that 
     constitutes evidence of a criminal offense in violation of 
     the laws of the United States, any notice required, or that 
     may be required, to be given may be delayed if--
       ``(1) the court finds reasonable cause to believe that 
     providing immediate notification of the execution of the 
     warrant may have an adverse result (as defined in section 
     2705);
       ``(2) the warrant prohibits the seizure of any tangible 
     property, any wire or electronic communication (as defined in 
     section 2510), or, except as expressly provided in chapter 
     121, any stored wire or electronic information, except where 
     the court finds reasonable necessity for the seizure; and
       ``(3) the warrant provides for the giving of such notice 
     within a reasonable period of its execution, which period may 
     thereafter be extended by the court for good cause shown.''.

     SEC. 214. PEN REGISTER AND TRAP AND TRACE AUTHORITY UNDER 
                   FISA.

       (a) Applications and Orders.--Section 402 of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1842) is 
     amended--
       (1) in subsection (a)(1), by striking ``for any 
     investigation to gather foreign intelligence information or 
     information concerning international terrorism'' and 
     inserting ``for any investigation to obtain foreign 
     intelligence information not concerning a United States 
     person or to protect against international terrorism or 
     clandestine intelligence activities, provided that such 
     investigation of a United States person is not conducted 
     solely upon the basis of activities protected by the first 
     amendment to the Constitution'';
       (2) by amending subsection (c)(2) to read as follows:
       ``(2) a certification by the applicant that the information 
     likely to be obtained is foreign intelligence information not 
     concerning a United States person or is relevant to an 
     ongoing investigation to protect against international 
     terrorism or clandestine intelligence activities, provided 
     that such investigation of a United States person is not 
     conducted solely upon the basis of activities protected by 
     the first amendment to the Constitution.'';

[[Page 20405]]

       (3) by striking subsection (c)(3); and
       (4) by amending subsection (d)(2)(A) to read as follows:
       ``(A) shall specify--
       ``(i) the identity, if known, of the person who is the 
     subject of the investigation;
       ``(ii) the identity, if known, of the person to whom is 
     leased or in whose name is listed the telephone line or other 
     facility to which the pen register or trap and trace device 
     is to be attached or applied;
       ``(iii) the attributes of the communications to which the 
     order applies, such as the number or other identifier, and, 
     if known, the location of the telephone line or other 
     facility to which the pen register or trap and trace device 
     is to be attached or applied and, in the case of a trap and 
     trace device, the geographic limits of the trap and trace 
     order.''.
       (b) Authorization During Emergencies.--Section 403 of the 
     Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
     1843) is amended--
       (1) in subsection (a), by striking ``foreign intelligence 
     information or information concerning international 
     terrorism'' and inserting ``foreign intelligence information 
     not concerning a United States person or information to 
     protect against international terrorism or clandestine 
     intelligence activities, provided that such investigation of 
     a United States person is not conducted solely upon the basis 
     of activities protected by the first amendment to the 
     Constitution''; and
       (2) in subsection (b)(1), by striking ``foreign 
     intelligence information or information concerning 
     international terrorism'' and inserting ``foreign 
     intelligence information not concerning a United States 
     person or information to protect against international 
     terrorism or clandestine intelligence activities, provided 
     that such investigation of a United States person is not 
     conducted solely upon the basis of activities protected by 
     the first amendment to the Constitution''.

     SEC. 215. ACCESS TO RECORDS AND OTHER ITEMS UNDER THE FOREIGN 
                   INTELLIGENCE SURVEILLANCE ACT.

       Title V of the Foreign Intelligence Surveillance Act of 
     1978 (50 U.S.C. 1861 et seq.) is amended by striking sections 
     501 through 503 and inserting the following:

     ``SEC. 501. ACCESS TO CERTAIN BUSINESS RECORDS FOR FOREIGN 
                   INTELLIGENCE AND INTERNATIONAL TERRORISM 
                   INVESTIGATIONS.

       ``(a)(1) The Director of the Federal Bureau of 
     Investigation or a designee of the Director (whose rank shall 
     be no lower than Assistant Special Agent in Charge) may make 
     an application for an order requiring the production of any 
     tangible things (including books, records, papers, documents, 
     and other items) for an investigation to protect against 
     international terrorism or clandestine intelligence 
     activities, provided that such investigation of a United 
     States person is not conducted solely upon the basis of 
     activities protected by the first amendment to the 
     Constitution.
       ``(2) An investigation conducted under this section shall--
       ``(A) be conducted under guidelines approved by the 
     Attorney General under Executive Order 12333 (or a successor 
     order); and
       ``(B) not be conducted of a United States person solely 
     upon the basis of activities protected by the first amendment 
     to the Constitution of the United States.
       ``(b) Each application under this section--
       ``(1) shall be made to--
       ``(A) a judge of the court established by section 103(a); 
     or
       ``(B) a United States Magistrate Judge under chapter 43 of 
     title 28, United States Code, who is publicly designated by 
     the Chief Justice of the United States to have the power to 
     hear applications and grant orders for the production of 
     tangible things under this section on behalf of a judge of 
     that court; and
       ``(2) shall specify that the records concerned are sought 
     for an authorized investigation conducted in accordance with 
     subsection (a)(2) to protect against international terrorism 
     or clandestine intelligence activities.
       ``(c)(1) Upon an application made pursuant to this section, 
     the judge shall enter an ex parte order as requested, or as 
     modified, approving the release of records if the judge finds 
     that the application meets the requirements of this section.
       ``(2) An order under this subsection shall not disclose 
     that it is issued for purposes of an investigation described 
     in subsection (a).
       ``(d) No person shall disclose to any other person (other 
     than those persons necessary to produce the tangible things 
     under this section) that the Federal Bureau of Investigation 
     has sought or obtained tangible things under this section.
       ``(e) A person who, in good faith, produces tangible things 
     under an order pursuant to this section shall not be liable 
     to any other person for such production. Such production 
     shall not be deemed to constitute a waiver of any privilege 
     in any other proceeding or context.

     ``SEC. 502. CONGRESSIONAL OVERSIGHT.

       ``(a) On a semiannual basis, the Attorney General shall 
     fully inform the Permanent Select Committee on Intelligence 
     of the House of Representatives and the Select Committee on 
     Intelligence of the Senate concerning all requests for the 
     production of tangible things under section 402.
       ``(b) On a semiannual basis, the Attorney General shall 
     provide to the Committees on the Judiciary of the House of 
     Representatives and the Senate a report setting forth with 
     respect to the preceding 6-month period--
       ``(1) the total number of applications made for orders 
     approving requests for the production of tangible things 
     under section 402; and
       ``(2) the total number of such orders either granted, 
     modified, or denied.''.

     SEC. 216. MODIFICATION OF AUTHORITIES RELATING TO USE OF PEN 
                   REGISTERS AND TRAP AND TRACE DEVICES.

       (a) General Limitations.--Section 3121(c) of title 18, 
     United States Code, is amended--
       (1) by inserting ``or trap and trace device'' after ``pen 
     register'';
       (2) by inserting ``, routing, addressing,'' after 
     ``dialing''; and
       (3) by striking ``call processing'' and inserting ``the 
     processing and transmitting of wire or electronic 
     communications so as not to include the contents of any wire 
     or electronic communications''.
       (b) Issuance of Orders.--
       (1) In general.--Section 3123(a) of title 18, United States 
     Code, is amended to read as follows:
       ``(a) In General.--
       ``(1) Attorney for the government.--Upon an application 
     made under section 3122(a)(1), the court shall enter an ex 
     parte order authorizing the installation and use of a pen 
     register or trap and trace device anywhere within the United 
     States, if the court finds that the attorney for the 
     Government has certified to the court that the information 
     likely to be obtained by such installation and use is 
     relevant to an ongoing criminal investigation. The order, 
     upon service of that order, shall apply to any person or 
     entity providing wire or electronic communication service in 
     the United States whose assistance may facilitate the 
     execution of the order. Whenever such an order is served on 
     any person or entity not specifically named in the order, 
     upon request of such person or entity, the attorney for the 
     Government or law enforcement or investigative officer that 
     is serving the order shall provide written or electronic 
     certification that the order applies to the person or entity 
     being served.
       ``(2) State investigative or law enforcement officer.--Upon 
     an application made under section 3122(a)(2), the court shall 
     enter an ex parte order authorizing the installation and use 
     of a pen register or trap and trace device within the 
     jurisdiction of the court, if the court finds that the State 
     law enforcement or investigative officer has certified to the 
     court that the information likely to be obtained by such 
     installation and use is relevant to an ongoing criminal 
     investigation.
       ``(3)(A) Where the law enforcement agency implementing an 
     ex parte order under this subsection seeks to do so by 
     installing and using its own pen register or trap and trace 
     device on a packet-switched data network of a provider of 
     electronic communication service to the public, the agency 
     shall ensure that a record will be maintained which will 
     identify--
       ``(i) any officer or officers who installed the device and 
     any officer or officers who accessed the device to obtain 
     information from the network;
       ``(ii) the date and time the device was installed, the date 
     and time the device was uninstalled, and the date, time, and 
     duration of each time the device is accessed to obtain 
     information;
       ``(iii) the configuration of the device at the time of its 
     installation and any subsequent modification thereof; and
       ``(iv) any information which has been collected by the 
     device.
     To the extent that the pen register or trap and trace device 
     can be set automatically to record this information 
     electronically, the record shall be maintained electronically 
     throughout the installation and use of such device.
       ``(B) The record maintained under subparagraph (A) shall be 
     provided ex parte and under seal to the court which entered 
     the ex parte order authorizing the installation and use of 
     the device within 30 days after termination of the order 
     (including any extensions thereof).''.
       (2) Contents of order.--Section 3123(b)(1) of title 18, 
     United States Code, is amended--
       (A) in subparagraph (A)--
       (i) by inserting ``or other facility'' after ``telephone 
     line''; and
       (ii) by inserting before the semicolon at the end ``or 
     applied''; and
       (B) by striking subparagraph (C) and inserting the 
     following:
       ``(C) the attributes of the communications to which the 
     order applies, including the number or other identifier and, 
     if known, the location of the telephone line or other 
     facility to which the pen register or trap and trace device 
     is to be attached or applied, and, in the case of an order 
     authorizing installation and use of a trap and trace device 
     under subsection (a)(2), the geographic limits of the order; 
     and''.
       (3) Nondisclosure requirements.--Section 3123(d)(2) of 
     title 18, United States Code, is amended--
       (A) by inserting ``or other facility'' after ``the line''; 
     and

[[Page 20406]]

       (B) by striking ``, or who has been ordered by the court'' 
     and inserting ``or applied, or who is obligated by the 
     order''.
       (c) Definitions.--
       (1) Court of competent jurisdiction.--Section 3127(2) of 
     title 18, United States Code, is amended by striking 
     subparagraph (A) and inserting the following:
       ``(A) any district court of the United States (including a 
     magistrate judge of such a court) or any United States court 
     of appeals having jurisdiction over the offense being 
     investigated; or''.
       (2) Pen register.--Section 3127(3) of title 18, United 
     States Code, is amended--
       (A) by striking ``electronic or other impulses'' and all 
     that follows through ``is attached'' and inserting ``dialing, 
     routing, addressing, or signaling information transmitted by 
     an instrument or facility from which a wire or electronic 
     communication is transmitted, provided, however, that such 
     information shall not include the contents of any 
     communication''; and
       (B) by inserting ``or process'' after ``device'' each place 
     it appears.
       (3) Trap and trace device.--Section 3127(4) of title 18, 
     United States Code, is amended--
       (A) by striking ``of an instrument'' and all that follows 
     through the semicolon and inserting ``or other dialing, 
     routing, addressing, and signaling information reasonably 
     likely to identify the source of a wire or electronic 
     communication, provided, however, that such information shall 
     not include the contents of any communication;''; and
       (B) by inserting ``or process'' after ``a device''.
       (4) Conforming amendment.--Section 3127(1) of title 18, 
     United States Code, is amended--
       (A) by striking ``and''; and
       (B) by inserting ``, and `contents' '' after ``electronic 
     communication service''.
       (5) Technical amendment.--Section 3124(d) of title 18, 
     United States Code, is amended by striking ``the terms of''.
       (6) Conforming amendment.--Section 3124(b) of title 18, 
     United States Code, is amended by inserting ``or other 
     facility'' after ``the appropriate line''.

     SEC. 217. INTERCEPTION OF COMPUTER TRESPASSER COMMUNICATIONS.

       Chapter 119 of title 18, United States Code, is amended--
       (1) in section 2510--
       (A) in paragraph (18), by striking ``and'' at the end;
       (B) in paragraph (19), by striking the period and inserting 
     a semicolon; and
       (C) by inserting after paragraph (19) the following:
       ``(20) `protected computer' has the meaning set forth in 
     section 1030; and
       ``(21) `computer trespasser'--
       ``(A) means a person who accesses a protected computer 
     without authorization and thus has no reasonable expectation 
     of privacy in any communication transmitted to, through, or 
     from the protected computer; and
       ``(B) does not include a person known by the owner or 
     operator of the protected computer to have an existing 
     contractual relationship with the owner or operator of the 
     protected computer for access to all or part of the protected 
     computer.''; and
       (2) in section 2511(2), by inserting at the end the 
     following:
       ``(i) It shall not be unlawful under this chapter for a 
     person acting under color of law to intercept the wire or 
     electronic communications of a computer trespasser 
     transmitted to, through, or from the protected computer, if--
       ``(I) the owner or operator of the protected computer 
     authorizes the interception of the computer trespasser's 
     communications on the protected computer;
       ``(II) the person acting under color of law is lawfully 
     engaged in an investigation;
       ``(III) the person acting under color of law has reasonable 
     grounds to believe that the contents of the computer 
     trespasser's communications will be relevant to the 
     investigation; and
       ``(IV) such interception does not acquire communications 
     other than those transmitted to or from the computer 
     trespasser.''.

     SEC. 218. FOREIGN INTELLIGENCE INFORMATION.

       Sections 104(a)(7)(B) and section 303(a)(7)(B) (50 U.S.C. 
     1804(a)(7)(B) and 1823(a)(7)(B)) of the Foreign Intelligence 
     Surveillance Act of 1978 are each amended by striking ``the 
     purpose'' and inserting ``a significant purpose''.

     SEC. 219. SINGLE-JURISDICTION SEARCH WARRANTS FOR TERRORISM.

       Rule 41(a) of the Federal Rules of Criminal Procedure is 
     amended by inserting after ``executed'' the following: ``and 
     (3) in an investigation of domestic terrorism or 
     international terrorism (as defined in section 2331 of title 
     18, United States Code), by a Federal magistrate judge in any 
     district in which activities related to the terrorism may 
     have occurred, for a search of property or for a person 
     within or outside the district''.

     SEC. 220. NATIONWIDE SERVICE OF SEARCH WARRANTS FOR 
                   ELECTRONIC EVIDENCE.

       (a) In General.--Chapter 121 of title 18, United States 
     Code, is amended--
       (1) in section 2703, by striking ``under the Federal Rules 
     of Criminal Procedure'' every place it appears and inserting 
     ``using the procedures described in the Federal Rules of 
     Criminal Procedure by a court with jurisdiction over the 
     offense under investigation''; and
       (2) in section 2711--
       (A) in paragraph (1), by striking ``and'';
       (B) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (C) by inserting at the end the following:
       ``(3) the term `court of competent jurisdiction' has the 
     meaning assigned by section 3127, and includes any Federal 
     court within that definition, without geographic 
     limitation.''.
       (b) Conforming Amendment.--Section 2703(d) of title 18, 
     United States Code, is amended by striking ``described in 
     section 3127(2)(A)''.

     SEC. 221. TRADE SANCTIONS.

       (a) In general.--The Trade Sanctions Reform and Export 
     Enhancement Act of 2000 (Public Law 106-387; 114 Stat. 1549A-
     67) is amended--
       (1) by amending section 904(2)(C) to read as follows:
       ``(C) used to facilitate the design, development, or 
     production of chemical or biological weapons, missiles, or 
     weapons of mass destruction.'';
       (2) in section 906(a)(1)--
       (A) by inserting ``, the Taliban or the territory of 
     Afghanistan controlled by the Taliban,'' after ``Cuba''; and
       (B) by inserting ``, or in the territory of Afghanistan 
     controlled by the Taliban,'' after ``within such country''; 
     and
       (3) in section 906(a)(2), by inserting ``, or to any other 
     entity in Syria or North Korea'' after ``Korea''.
       (b) Application of the Trade Sanctions Reform and Export 
     Enhancement Act.--Nothing in the Trade Sanctions Reform and 
     Export Enhancement Act of 2000 shall limit the application or 
     scope of any law establishing criminal or civil penalties, 
     including any executive order or regulation promulgated 
     pursuant to such laws (or similar or successor laws), for the 
     unlawful export of any agricultural commodity, medicine, or 
     medical device to--
       (1) a foreign organization, group, or person designated 
     pursuant to Executive Order 12947 of January 23, 1995, as 
     amended;
       (2) a Foreign Terrorist Organization pursuant to the 
     Antiterrorism and Effective Death Penalty Act of 1996 (Public 
     Law 104-132);
       (3) a foreign organization, group, or person designated 
     pursuant to Executive Order 13224 (September 23, 2001);
       (4) any narcotics trafficking entity designated pursuant to 
     Executive Order 12978 (October 21, 1995) or the Foreign 
     Narcotics Kingpin Designation Act (Public Law 106-120); or
       (5) any foreign organization, group, or persons subject to 
     any restriction for its involvement in weapons of mass 
     destruction or missile proliferation.

     SEC. 222. ASSISTANCE TO LAW ENFORCEMENT AGENCIES.

       Nothing in this Act shall impose any additional technical 
     obligation or requirement on a provider of a wire or 
     electronic communication service or other person to furnish 
     facilities or technical assistance. A provider of a wire or 
     electronic communication service, landlord, custodian, or 
     other person who furnishes facilities or technical assistance 
     pursuant to section 216 shall be reasonably compensated for 
     such reasonable expenditures incurred in providing such 
     facilities or assistance.

     SEC. 223. CIVIL LIABILITY FOR CERTAIN UNAUTHORIZED 
                   DISCLOSURES.

       (a) Section 2520 of title 18, United States Code, is 
     amended--
       (1) in subsection (a), after ``entity'', by inserting ``, 
     other than the United States,'';
       (2) by adding at the end the following:
       ``(f) Administrative Discipline.--If a court or appropriate 
     department or agency determines that the United States or any 
     of its departments or agencies has violated any provision of 
     this chapter, and the court or appropriate department or 
     agency finds that the circumstances surrounding the violation 
     raise serious questions about whether or not an officer or 
     employee of the United States acted willfully or 
     intentionally with respect to the violation, the department 
     or agency shall, upon receipt of a true and correct copy of 
     the decision and findings of the court or appropriate 
     department or agency promptly initiate a proceeding to 
     determine whether disciplinary action against the officer or 
     employee is warranted. If the head of the department or 
     agency involved determines that disciplinary action is not 
     warranted, he or she shall notify the Inspector General with 
     jurisdiction over the department or agency concerned and 
     shall provide the Inspector General with the reasons for such 
     determination.''; and
       (3) by adding a new subsection (g), as follows:
       ``(g) Improper Disclosure Is Violation.--Any willful 
     disclosure or use by an investigative or law enforcement 
     officer or governmental entity of information beyond the 
     extent permitted by section 2517 is a violation of this 
     chapter for purposes of section 2520(a).
       (b) Section 2707 of title 18, United States Code, is 
     amended--
       (1) in subsection (a), after ``entity'', by inserting ``, 
     other than the United States,'';

[[Page 20407]]

       (2) by striking subsection (d) and inserting the following:
       ``(d) Administrative Discipline.--If a court or appropriate 
     department or agency determines that the United States or any 
     of its departments or agencies has violated any provision of 
     this chapter, and the court or appropriate department or 
     agency finds that the circumstances surrounding the violation 
     raise serious questions about whether or not an officer or 
     employee of the United States acted willfully or 
     intentionally with respect to the violation, the department 
     or agency shall, upon receipt of a true and correct copy of 
     the decision and findings of the court or appropriate 
     department or agency promptly initiate a proceeding to 
     determine whether disciplinary action against the officer or 
     employee is warranted. If the head of the department or 
     agency involved determines that disciplinary action is not 
     warranted, he or she shall notify the Inspector General with 
     jurisdiction over the department or agency concerned and 
     shall provide the Inspector General with the reasons for such 
     determination.''; and
       (3) by adding a new subsection (g), as follows:
       ``(g) Improper Disclosure.--Any willful disclosure of a 
     `record', as that term is defined in section 552a(a) of title 
     5, United States Code, obtained by an investigative or law 
     enforcement officer, or a governmental entity, pursuant to 
     section 2703 of this title, or from a device installed 
     pursuant to section 3123 or 3125 of this title, that is not a 
     disclosure made in the proper performance of the official 
     functions of the officer or governmental entity making the 
     disclosure, is a violation of this chapter. This provision 
     shall not apply to information previously lawfully disclosed 
     (prior to the commencement of any civil or administrative 
     proceeding under this chapter) to the public by a Federal, 
     State, or local governmental entity or by the plaintiff in a 
     civil action under this chapter.''.
       (c)(1) Chapter 121 of title 18, United States Code, is 
     amended by adding at the end the following:

     ``Sec. 2712. Civil actions against the United States

       ``(a) In General.--Any person who is aggrieved by any 
     willful violation of this chapter or of chapter 119 of this 
     title or of sections 106(a), 305(a), or 405(a) of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et 
     seq.) may commence an action in United States District Court 
     against the United States to recover money damages. In any 
     such action, if a person who is aggrieved successfully 
     establishes such a violation of this chapter or of chapter 
     119 of this title or of the above specific provisions of 
     title 50, the Court may assess as damages--
       ``(1) actual damages, but not less than $10,000, whichever 
     amount is greater; and
       ``(2) litigation costs, reasonably incurred.
       ``(b) Procedures.--(1) Any action against the United States 
     under this section may be commenced only after a claim is 
     presented to the appropriate department or agency under the 
     procedures of the Federal Tort Claims Act, as set forth in 
     title 28, United States Code.
       ``(2) Any action against the United States under this 
     section shall be forever barred unless it is presented in 
     writing to the appropriate Federal agency within 2 years 
     after such claim accrues or unless action is begun within 6 
     months after the date of mailing, by certified or registered 
     mail, of notice of final denial of the claim by the agency to 
     which it was presented. The claim shall accrue on the date 
     upon which the claimant first has a reasonable opportunity to 
     discover the violation.''.
       ``(3) Any action under this section shall be tried to the 
     court without a jury.
       ``(4) Notwithstanding any other provision of law, the 
     procedures set forth in section 106(f), 305(g), or 405(f) of 
     the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
     1801 et seq.) shall be the exclusive means by which materials 
     governed by those sections may be reviewed.
       ``(5) An amount equal to any award against the United 
     States under this section shall be reimbursed by the 
     department or agency concerned to the fund described in 
     section 1304 of title 31, United States Code, out of any 
     appropriation, fund, or other account (excluding any part of 
     such appropriation, fund, or account that is available for 
     the enforcement of any Federal law) that is available for the 
     operating expenses of the department or agency concerned.
       ``(c) Administrative Discipline.--If a court or appropriate 
     department or agency determines that the United States or any 
     of its departments or agencies has violated any provision of 
     this chapter, and the court or appropriate department or 
     agency finds that the circumstances surrounding the violation 
     raise serious questions about whether or not an officer or 
     employee of the United States acted willfully or 
     intentionally with respect to the possible violation, the 
     department or agency shall, upon receipt of a true and 
     correct copy of the decision and findings of the court or 
     appropriate department or agency promptly initiate a 
     proceeding to determine whether disciplinary action against 
     the officer or employee is warranted. If the head of the 
     department or agency involved determines that disciplinary 
     action is not warranted, he or she shall notify the Inspector 
     General with jurisdiction over the department or agency 
     concerned and shall provide the Inspector General with the 
     reasons for such determination.
       ``(d) Exclusive Remedy.--Any action against the United 
     States under this subsection shall be the exclusive remedy 
     against the United States for any claims within the purview 
     of this section.
       ``(e) Stay of Proceedings.--(1) Upon the motion of the 
     United States, the court shall stay any action commenced 
     under this section if the court determines that civil 
     discovery will adversely affect the ability of the Government 
     to conduct a related investigation or the prosecution of a 
     related criminal case. Such a stay shall toll the limitations 
     periods of paragraph (2) of subsection (b).
       ``(2) In this subsection, the terms `related criminal case' 
     and `related investigation' mean an actual prosecution or 
     investigation in progress at the time at which the request 
     for the stay or any subsequent motion to lift the stay is 
     made. In determining whether an investigation or a criminal 
     case is related to an action commenced under this section, 
     the court shall consider the degree of similarity between the 
     parties, witnesses, facts, and circumstances involved in the 
     2 proceedings, without requiring that any one or more factors 
     be identical.
       ``(3) In requesting a stay under paragraph (1), the 
     Government may, in appropriate cases, submit evidence ex 
     parte in order to avoid disclosing any matter that may 
     adversely affect a related investigation or a related 
     criminal case. If the Government makes such an ex parte 
     submission, the plaintiff shall be given an opportunity to 
     make a submission to the court, not ex parte, and the court 
     may, in its discretion, request further information from 
     either party.''.
       (2) The table of sections at the beginning of chapter 121 
     is amended to read as follows:

``2712. Civil action against the United States.''.

     SEC. 224. SUNSET.

       (a) In General.--Except as provided in subsection (b), this 
     title and the amendments made by this title (other than 
     sections 203(a), 203(c), 205, 208, 210, 211, 213, 216, 219, 
     221, and 222, and the amendments made by those sections) 
     shall cease to have effect on December 31, 2005.
       (b) Exception.--With respect to any particular foreign 
     intelligence investigation that began before the date on 
     which the provisions referred to in subsection (a) cease to 
     have effect, or with respect to any particular offense or 
     potential offense that began or occurred before the date on 
     which such provisions cease to have effect, such provisions 
     shall continue in effect.

     SEC. 225. IMMUNITY FOR COMPLIANCE WITH FISA WIRETAP.

       Section 105 of the Foreign Intelligence Surveillance Act of 
     1978 (50 U.S.C. 1805) is amended by inserting after 
     subsection (g) the following:
       ``(h) No cause of action shall lie in any court against any 
     provider of a wire or electronic communication service, 
     landlord, custodian, or other person (including any officer, 
     employee, agent, or other specified person thereof) that 
     furnishes any information, facilities, or technical 
     assistance in accordance with a court order or request for 
     emergency assistance under this Act.''.

TITLE III--INTERNATIONAL MONEY LAUNDERING ABATEMENT AND ANTI-TERRORIST 
                         FINANCING ACT OF 2001

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``International Money 
     Laundering Abatement and Financial Anti-Terrorism Act of 
     2001''.

     SEC. 302. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) money laundering, estimated by the International 
     Monetary Fund to amount to between 2 and 5 percent of global 
     gross domestic product, which is at least $600,000,000,000 
     annually, provides the financial fuel that permits 
     transnational criminal enterprises to conduct and expand 
     their operations to the detriment of the safety and security 
     of American citizens;
       (2) money laundering, and the defects in financial 
     transparency on which money launderers rely, are critical to 
     the financing of global terrorism and the provision of funds 
     for terrorist attacks;
       (3) money launderers subvert legitimate financial 
     mechanisms and banking relationships by using them as 
     protective covering for the movement of criminal proceeds and 
     the financing of crime and terrorism, and, by so doing, can 
     threaten the safety of United States citizens and undermine 
     the integrity of United States financial institutions and of 
     the global financial and trading systems upon which 
     prosperity and growth depend;
       (4) certain jurisdictions outside of the United States that 
     offer ``offshore'' banking and related facilities designed to 
     provide anonymity, coupled with weak financial supervisory 
     and enforcement regimes, provide essential tools to disguise 
     ownership and movement of criminal funds, derived from, or 
     used to commit, offenses ranging from narcotics trafficking, 
     terrorism, arms smuggling, and trafficking in human beings, 
     to financial frauds that prey on law-abiding citizens;

[[Page 20408]]

       (5) transactions involving such offshore jurisdictions make 
     it difficult for law enforcement officials and regulators to 
     follow the trail of money earned by criminals, organized 
     international criminal enterprises, and global terrorist 
     organizations;
       (6) correspondent banking facilities are one of the banking 
     mechanisms susceptible in some circumstances to manipulation 
     by foreign banks to permit the laundering of funds by hiding 
     the identity of real parties in interest to financial 
     transactions;
       (7) private banking services can be susceptible to 
     manipulation by money launderers, for example corrupt foreign 
     government officials, particularly if those services include 
     the creation of offshore accounts and facilities for large 
     personal funds transfers to channel funds into accounts 
     around the globe;
       (8) United States anti-money laundering efforts are impeded 
     by outmoded and inadequate statutory provisions that make 
     investigations, prosecutions, and forfeitures more difficult, 
     particularly in cases in which money laundering involves 
     foreign persons, foreign banks, or foreign countries;
       (9) the ability to mount effective counter-measures to 
     international money launderers requires national, as well as 
     bilateral and multilateral action, using tools specially 
     designed for that effort; and
       (10) the Basle Committee on Banking Regulation and 
     Supervisory Practices and the Financial Action Task Force on 
     Money Laundering, of both of which the United States is a 
     member, have each adopted international anti-money laundering 
     principles and recommendations.
       (b) Purposes.--The purposes of this title are--
       (1) to increase the strength of United States measures to 
     prevent, detect, and prosecute international money laundering 
     and the financing of terrorism;
       (2) to ensure that--
       (A) banking transactions and financial relationships and 
     the conduct of such transactions and relationships, do not 
     contravene the purposes of subchapter II of chapter 53 of 
     title 31, United States Code, section 21 of the Federal 
     Deposit Insurance Act, or chapter 2 of title I of Public Law 
     91-508 (84 Stat. 1116), or facilitate the evasion of any such 
     provision; and
       (B) the purposes of such provisions of law continue to be 
     fulfilled, and such provisions of law are effectively and 
     efficiently administered;
       (3) to strengthen the provisions put into place by the 
     Money Laundering Control Act of 1986 (18 U.S.C. 981 note), 
     especially with respect to crimes by non-United States 
     nationals and foreign financial institutions;
       (4) to provide a clear national mandate for subjecting to 
     special scrutiny those foreign jurisdictions, financial 
     institutions operating outside of the United States, and 
     classes of international transactions or types of accounts 
     that pose particular, identifiable opportunities for criminal 
     abuse;
       (5) to provide the Secretary of the Treasury (in this title 
     referred to as the ``Secretary'') with broad discretion, 
     subject to the safeguards provided by the Administrative 
     Procedure Act under title 5, United States Code, to take 
     measures tailored to the particular money laundering problems 
     presented by specific foreign jurisdictions, financial 
     institutions operating outside of the United States, and 
     classes of international transactions or types of accounts;
       (6) to ensure that the employment of such measures by the 
     Secretary permits appropriate opportunity for comment by 
     affected financial institutions;
       (7) to provide guidance to domestic financial institutions 
     on particular foreign jurisdictions, financial institutions 
     operating outside of the United States, and classes of 
     international transactions that are of primary money 
     laundering concern to the United States Government;
       (8) to ensure that the forfeiture of any assets in 
     connection with the anti-terrorist efforts of the United 
     States permits for adequate challenge consistent with 
     providing due process rights;
       (9) to clarify the terms of the safe harbor from civil 
     liability for filing suspicious activity reports;
       (10) to strengthen the authority of the Secretary to issue 
     and administer geographic targeting orders, and to clarify 
     that violations of such orders or any other requirement 
     imposed under the authority contained in chapter 2 of title I 
     of Public Law 91-508 and subchapters II and III of chapter 53 
     of title 31, United States Code, may result in criminal and 
     civil penalties;
       (11) to ensure that all appropriate elements of the 
     financial services industry are subject to appropriate 
     requirements to report potential money laundering 
     transactions to proper authorities, and that jurisdictional 
     disputes do not hinder examination of compliance by financial 
     institutions with relevant reporting requirements;
       (12) to strengthen the ability of financial institutions to 
     maintain the integrity of their employee population; and
       (13) to strengthen measures to prevent the use of the 
     United States financial system for personal gain by corrupt 
     foreign officials and to facilitate the repatriation of any 
     stolen assets to the citizens of countries to whom such 
     assets belong.

     SEC. 303. 4-YEAR CONGRESSIONAL REVIEW; EXPEDITED 
                   CONSIDERATION.

       (a) In General.--Effective on and after the first day of 
     fiscal year 2005, the provisions of this title and the 
     amendments made by this title shall terminate if the Congress 
     enacts a joint resolution, the text after the resolving 
     clause of which is as follows: ``That provisions of the 
     International Money Laundering Abatement and Anti-Terrorist 
     Financing Act of 2001, and the amendments made thereby, shall 
     no longer have the force of law.''.
       (b) Expedited Consideration.--Any joint resolution 
     submitted pursuant to this section should be considered by 
     the Congress expeditiously. In particular, it shall be 
     considered in the Senate in accordance with the provisions of 
     section 601(b) of the International Security Assistance and 
     Arms Control Act of 1976.

Subtitle A--International Counter Money Laundering and Related Measures

     SEC. 311. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL 
                   INSTITUTIONS, OR INTERNATIONAL TRANSACTIONS OF 
                   PRIMARY MONEY LAUNDERING CONCERN.

       (a) In General.--Subchapter II of chapter 53 of title 31, 
     United States Code, is amended by inserting after section 
     5318 the following new section:

     ``Sec. 5318A. Special measures for jurisdictions, financial 
       institutions, or international transactions of primary 
       money laundering concern

       ``(a) International Counter-Money Laundering 
     Requirements.--
       ``(1) In general.--The Secretary of the Treasury may 
     require domestic financial institutions and domestic 
     financial agencies to take 1 or more of the special measures 
     described in subsection (b) if the Secretary finds that 
     reasonable grounds exist for concluding that a jurisdiction 
     outside of the United States, 1 or more financial 
     institutions operating outside of the United States, 1 or 
     more classes of transactions within, or involving, a 
     jurisdiction outside of the United States, or 1 or more types 
     of accounts is of primary money laundering concern, in 
     accordance with subsection (c).
       ``(2) Form of requirement.--The special measures described 
     in--
       ``(A) subsection (b) may be imposed in such sequence or 
     combination as the Secretary shall determine;
       ``(B) paragraphs (1) through (4) of subsection (b) may be 
     imposed by regulation, order, or otherwise as permitted by 
     law; and
       ``(C) subsection (b)(5) may be imposed only by regulation.
       ``(3) Duration of orders; rulemaking.--Any order by which a 
     special measure described in paragraphs (1) through (4) of 
     subsection (b) is imposed (other than an order described in 
     section 5326)--
       ``(A) shall be issued together with a notice of proposed 
     rulemaking relating to the imposition of such special 
     measure; and
       ``(B) may not remain in effect for more than 120 days, 
     except pursuant to a rule promulgated on or before the end of 
     the 120-day period beginning on the date of issuance of such 
     order.
       ``(4) Process for selecting special measures.--In selecting 
     which special measure or measures to take under this 
     subsection, the Secretary of the Treasury--
       ``(A) shall consult with the Chairman of the Board of 
     Governors of the Federal Reserve System, any other 
     appropriate Federal banking agency, as defined in section 3 
     of the Federal Deposit Insurance Act, the Secretary of State, 
     the Securities and Exchange Commission, the Commodity Futures 
     Trading Commission, the National Credit Union Administration 
     Board, and in the sole discretion of the Secretary, such 
     other agencies and interested parties as the Secretary may 
     find to be appropriate; and
       ``(B) shall consider--
       ``(i) whether similar action has been or is being taken by 
     other nations or multilateral groups;
       ``(ii) whether the imposition of any particular special 
     measure would create a significant competitive disadvantage, 
     including any undue cost or burden associated with 
     compliance, for financial institutions organized or licensed 
     in the United States;
       ``(iii) the extent to which the action or the timing of the 
     action would have a significant adverse systemic impact on 
     the international payment, clearance, and settlement system, 
     or on legitimate business activities involving the particular 
     jurisdiction, institution, or class of transactions; and
       ``(iv) the effect of the action on United States national 
     security and foreign policy.
       ``(5) No limitation on other authority.--This section shall 
     not be construed as superseding or otherwise restricting any 
     other authority granted to the Secretary, or to any other 
     agency, by this subchapter or otherwise.
       ``(b) Special Measures.--The special measures referred to 
     in subsection (a), with respect to a jurisdiction outside of 
     the United States, financial institution operating outside of 
     the United States, class of transaction within, or involving, 
     a jurisdiction outside of the United States, or 1 or more 
     types of accounts are as follows:
       ``(1) Recordkeeping and reporting of certain financial 
     transactions.--

[[Page 20409]]

       ``(A) In general.--The Secretary of the Treasury may 
     require any domestic financial institution or domestic 
     financial agency to maintain records, file reports, or both, 
     concerning the aggregate amount of transactions, or 
     concerning each transaction, with respect to a jurisdiction 
     outside of the United States, 1 or more financial 
     institutions operating outside of the United States, 1 or 
     more classes of transactions within, or involving, a 
     jurisdiction outside of the United States, or 1 or more types 
     of accounts if the Secretary finds any such jurisdiction, 
     institution, or class of transactions to be of primary money 
     laundering concern.
       ``(B) Form of records and reports.--Such records and 
     reports shall be made and retained at such time, in such 
     manner, and for such period of time, as the Secretary shall 
     determine, and shall include such information as the 
     Secretary may determine, including--
       ``(i) the identity and address of the participants in a 
     transaction or relationship, including the identity of the 
     originator of any funds transfer;
       ``(ii) the legal capacity in which a participant in any 
     transaction is acting;
       ``(iii) the identity of the beneficial owner of the funds 
     involved in any transaction, in accordance with such 
     procedures as the Secretary determines to be reasonable and 
     practicable to obtain and retain the information; and
       ``(iv) a description of any transaction.
       ``(2) Information relating to beneficial ownership.--In 
     addition to any other requirement under any other provision 
     of law, the Secretary may require any domestic financial 
     institution or domestic financial agency to take such steps 
     as the Secretary may determine to be reasonable and 
     practicable to obtain and retain information concerning the 
     beneficial ownership of any account opened or maintained in 
     the United States by a foreign person (other than a foreign 
     entity whose shares are subject to public reporting 
     requirements or are listed and traded on a regulated exchange 
     or trading market), or a representative of such a foreign 
     person, that involves a jurisdiction outside of the United 
     States, 1 or more financial institutions operating outside of 
     the United States, 1 or more classes of transactions within, 
     or involving, a jurisdiction outside of the United States, or 
     1 or more types of accounts if the Secretary finds any such 
     jurisdiction, institution, or transaction or type of account 
     to be of primary money laundering concern.
       ``(3) Information relating to certain payable-through 
     accounts.--If the Secretary finds a jurisdiction outside of 
     the United States, 1 or more financial institutions operating 
     outside of the United States, or 1 or more classes of 
     transactions within, or involving, a jurisdiction outside of 
     the United States to be of primary money laundering concern, 
     the Secretary may require any domestic financial institution 
     or domestic financial agency that opens or maintains a 
     payable-through account in the United States for a foreign 
     financial institution involving any such jurisdiction or any 
     such financial institution operating outside of the United 
     States, or a payable through account through which any such 
     transaction may be conducted, as a condition of opening or 
     maintaining such account--
       ``(A) to identify each customer (and representative of such 
     customer) of such financial institution who is permitted to 
     use, or whose transactions are routed through, such payable-
     through account; and
       ``(B) to obtain, with respect to each such customer (and 
     each such representative), information that is substantially 
     comparable to that which the depository institution obtains 
     in the ordinary course of business with respect to its 
     customers residing in the United States.
       ``(4) Information relating to certain correspondent 
     accounts.--If the Secretary finds a jurisdiction outside of 
     the United States, 1 or more financial institutions operating 
     outside of the United States, or 1 or more classes of 
     transactions within, or involving, a jurisdiction outside of 
     the United States to be of primary money laundering concern, 
     the Secretary may require any domestic financial institution 
     or domestic financial agency that opens or maintains a 
     correspondent account in the United States for a foreign 
     financial institution involving any such jurisdiction or any 
     such financial institution operating outside of the United 
     States, or a correspondent account through which any such 
     transaction may be conducted, as a condition of opening or 
     maintaining such account--
       ``(A) to identify each customer (and representative of such 
     customer) of any such financial institution who is permitted 
     to use, or whose transactions are routed through, such 
     correspondent account; and
       ``(B) to obtain, with respect to each such customer (and 
     each such representative), information that is substantially 
     comparable to that which the depository institution obtains 
     in the ordinary course of business with respect to its 
     customers residing in the United States.
       ``(5) Prohibitions or conditions on opening or maintaining 
     certain correspondent or payable-through accounts.--If the 
     Secretary finds a jurisdiction outside of the United States, 
     1 or more financial institutions operating outside of the 
     United States, or 1 or more classes of transactions within, 
     or involving, a jurisdiction outside of the United States to 
     be of primary money laundering concern, the Secretary, in 
     consultation with the Secretary of State, the Attorney 
     General, and the Chairman of the Board of Governors of the 
     Federal Reserve System, may prohibit, or impose conditions 
     upon, the opening or maintaining in the United States of a 
     correspondent account or payable- through account by any 
     domestic financial institution or domestic financial agency 
     for or on behalf of a foreign banking institution, if such 
     correspondent account or payable-through account involves any 
     such jurisdiction or institution, or if any such transaction 
     may be conducted through such correspondent account or 
     payable-through account.
       ``(c) Consultations and Information To Be Considered in 
     Finding Jurisdictions, Institutions, Types of Accounts, or 
     Transactions To Be of Primary Money Laundering Concern.--
       ``(1) In general.--In making a finding that reasonable 
     grounds exist for concluding that a jurisdiction outside of 
     the United States, 1 or more financial institutions operating 
     outside of the United States, 1 or more classes of 
     transactions within, or involving, a jurisdiction outside of 
     the United States, or 1 or more types of accounts is of 
     primary money laundering concern so as to authorize the 
     Secretary of the Treasury to take 1 or more of the special 
     measures described in subsection (b), the Secretary shall 
     consult with the Secretary of State and the Attorney General.
       ``(2) Additional considerations.--In making a finding 
     described in paragraph (1), the Secretary shall consider in 
     addition such information as the Secretary determines to be 
     relevant, including the following potentially relevant 
     factors:
       ``(A) Jurisdictional factors.--In the case of a particular 
     jurisdiction--
       ``(i) evidence that organized criminal groups, 
     international terrorists, or both, have transacted business 
     in that jurisdiction;
       ``(ii) the extent to which that jurisdiction or financial 
     institutions operating in that jurisdiction offer bank 
     secrecy or special regulatory advantages to nonresidents or 
     nondomiciliaries of that jurisdiction;
       ``(iii) the substance and quality of administration of the 
     bank supervisory and counter-money laundering laws of that 
     jurisdiction;
       ``(iv) the relationship between the volume of financial 
     transactions occurring in that jurisdiction and the size of 
     the economy of the jurisdiction;
       ``(v) the extent to which that jurisdiction is 
     characterized as an offshore banking or secrecy haven by 
     credible international organizations or multilateral expert 
     groups;
       ``(vi) whether the United States has a mutual legal 
     assistance treaty with that jurisdiction, and the experience 
     of United States law enforcement officials and regulatory 
     officials in obtaining information about transactions 
     originating in or routed through or to such jurisdiction; and
       ``(vii) the extent to which that jurisdiction is 
     characterized by high levels of official or institutional 
     corruption.
       ``(B) Institutional factors.--In the case of a decision to 
     apply 1 or more of the special measures described in 
     subsection (b) only to a financial institution or 
     institutions, or to a transaction or class of transactions, 
     or to a type of account, or to all 3, within or involving a 
     particular jurisdiction--
       ``(i) the extent to which such financial institutions, 
     transactions, or types of accounts are used to facilitate or 
     promote money laundering in or through the jurisdiction;
       ``(ii) the extent to which such institutions, transactions, 
     or types of accounts are used for legitimate business 
     purposes in the jurisdiction; and
       ``(iii) the extent to which such action is sufficient to 
     ensure, with respect to transactions involving the 
     jurisdiction and institutions operating in the jurisdiction, 
     that the purposes of this subchapter continue to be 
     fulfilled, and to guard against international money 
     laundering and other financial crimes.
       ``(d) Notification of Special Measures Invoked by the 
     Secretary.--Not later than 10 days after the date of any 
     action taken by the Secretary of the Treasury under 
     subsection (a)(1), the Secretary shall notify, in writing, 
     the Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate of any such action.
       ``(e) Definitions.--Notwithstanding any other provision of 
     this subchapter, for purposes of this section and subsections 
     (i) and (j) of section 5318, the following definitions shall 
     apply:
       ``(1) Bank definitions.--The following definitions shall 
     apply with respect to a bank:
       ``(A) Account.--The term `account'--
       ``(i) means a formal banking or business relationship 
     established to provide regular services, dealings, and other 
     financial transactions; and
       ``(ii) includes a demand deposit, savings deposit, or other 
     transaction or asset account and a credit account or other 
     extension of credit.

[[Page 20410]]

       ``(B) Correspondent account.--The term `correspondent 
     account' means an account established to receive deposits 
     from, make payments on behalf of a foreign financial 
     institution, or handle other financial transactions related 
     to such institution.
       ``(C) Payable-through account.--The term `payable-through 
     account' means an account, including a transaction account 
     (as defined in section 19(b)(1)(C) of the Federal Reserve 
     Act), opened at a depository institution by a foreign 
     financial institution by means of which the foreign financial 
     institution permits its customers to engage, either directly 
     or through a subaccount, in banking activities usual in 
     connection with the business of banking in the United States.
       ``(2) Definitions applicable to institutions other than 
     banks.--With respect to any financial institution other than 
     a bank, the Secretary shall, after consultation with the 
     appropriate Federal functional regulators (as defined in 
     section 509 of the Gramm-Leach-Bliley Act), define by 
     regulation the term `account', and shall include within the 
     meaning of that term, to the extent, if any, that the 
     Secretary deems appropriate, arrangements similar to payable-
     through and correspondent accounts.
       ``(3) Regulatory definition of beneficial ownership.--The 
     Secretary shall promulgate regulations defining beneficial 
     ownership of an account for purposes of this section and 
     subsections (i) and (j) of section 5318. Such regulations 
     shall address issues related to an individual's authority to 
     fund, direct, or manage the account (including, without 
     limitation, the power to direct payments into or out of the 
     account), and an individual's material interest in the income 
     or corpus of the account, and shall ensure that the 
     identification of individuals under this section does not 
     extend to any individual whose beneficial interest in the 
     income or corpus of the account is immaterial.''.
       ``(4) Other terms.--The Secretary may, by regulation, 
     further define the terms in paragraphs (1), (2), and (3), and 
     define other terms for the purposes of this section, as the 
     Secretary deems appropriate.''.
       (b) Clerical Amendment.--The table of sections for 
     subchapter II of chapter 53 of title 31, United States Code, 
     is amended by inserting after the item relating to section 
     5318 the following new item:

``5318A. Special measures for jurisdictions, financial institutions, or 
              international transactions of primary money laundering 
              concern.''.

     SEC. 312. SPECIAL DUE DILIGENCE FOR CORRESPONDENT ACCOUNTS 
                   AND PRIVATE BANKING ACCOUNTS.

       (a) In General.--Section 5318 of title 31, United States 
     Code, is amended by adding at the end the following:
       ``(i) Due Diligence for United States Private Banking and 
     Correspondent Bank Accounts Involving Foreign Persons.--
       ``(1) In general.--Each financial institution that 
     establishes, maintains, administers, or manages a private 
     banking account or a correspondent account in the United 
     States for a non-United States person, including a foreign 
     individual visiting the United States, or a representative of 
     a non-United States person shall establish appropriate, 
     specific, and, where necessary, enhanced, due diligence 
     policies, procedures, and controls that are reasonably 
     designed to detect and report instances of money laundering 
     through those accounts.
       ``(2) Additional standards for certain correspondent 
     accounts.--
       ``(A) In general.--Subparagraph (B) shall apply if a 
     correspondent account is requested or maintained by, or on 
     behalf of, a foreign bank operating--
       ``(i) under an offshore banking license; or
       ``(ii) under a banking license issued by a foreign country 
     that has been designated--

       ``(I) as noncooperative with international anti-money 
     laundering principles or procedures by an intergovernmental 
     group or organization of which the United States is a member, 
     with which designation the United States representative to 
     the group or organization concurs; or
       ``(II) by the Secretary of the Treasury as warranting 
     special measures due to money laundering concerns.

       ``(B) Policies, procedures, and controls.--The enhanced due 
     diligence policies, procedures, and controls required under 
     paragraph (1) shall, at a minimum, ensure that the financial 
     institution in the United States takes reasonable steps--
       ``(i) to ascertain for any such foreign bank, the shares of 
     which are not publicly traded, the identity of each of the 
     owners of the foreign bank, and the nature and extent of the 
     ownership interest of each such owner;
       ``(ii) to conduct enhanced scrutiny of such account to 
     guard against money laundering and report any suspicious 
     transactions under subsection (g); and
       ``(iii) to ascertain whether such foreign bank provides 
     correspondent accounts to other foreign banks and, if so, the 
     identity of those foreign banks and related due diligence 
     information, as appropriate under paragraph (1).
       ``(3) Minimum standards for private banking accounts.--If a 
     private banking account is requested or maintained by, or on 
     behalf of, a non-United States person, then the due diligence 
     policies, procedures, and controls required under paragraph 
     (1) shall, at a minimum, ensure that the financial 
     institution takes reasonable steps--
       ``(A) to ascertain the identity of the nominal and 
     beneficial owners of, and the source of funds deposited into, 
     such account as needed to guard against money laundering and 
     report any suspicious transactions under subsection (g); and
       ``(B) to conduct enhanced scrutiny of any such account that 
     is requested or maintained by, or on behalf of, a senior 
     foreign political figure, or any immediate family member or 
     close associate of a senior foreign political figure that is 
     reasonably designed to detect and report transactions that 
     may involve the proceeds of foreign corruption.
       ``(4) Definition.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Offshore banking license.--The term `offshore banking 
     license' means a license to conduct banking activities which, 
     as a condition of the license, prohibits the licensed entity 
     from conducting banking activities with the citizens of, or 
     with the local currency of, the country which issued the 
     license.''.
       ``(B) Private banking account.--The term `private banking 
     account' means an account (or any combination of accounts) 
     that--
       ``(i) requires a minimum aggregate deposits of funds or 
     other assets of not less than $1,000,000;
       ``(ii) is established on behalf of 1 or more individuals 
     who have a direct or beneficial ownership interest in the 
     account; and
       ``(iii) is assigned to, or is administered or managed by, 
     in whole or in part, an officer, employee, or agent of a 
     financial institution acting as a liaison between the 
     financial institution and the direct or beneficial owner of 
     the account.''.
       (b) Regulatory Authority and Effective Date.--
       (1) Regulatory authority.--Not later than 180 days after 
     the date of enactment of this Act, the Secretary, in 
     consultation with the appropriate Federal functional 
     regulators (as defined in section 509 of the Gramm-Leach-
     Bliley Act) of the affected financial institutions, shall 
     further delineate, by regulation, the due diligence policies, 
     procedures, and controls required under section 5318(i)(1) of 
     title 31, United States Code, as added by this section.
       (2) Effective date.--Section 5318(i) of title 31, United 
     States Code, as added by this section, shall take effect 270 
     days after the date of enactment of this Act, whether or not 
     final regulations are issued under paragraph (1), and the 
     failure to issue such regulations shall in no way affect the 
     enforceability of this section or the amendments made by this 
     section. Section 5318(i) of title 31, United States Code, as 
     added by this section, shall apply with respect to accounts 
     covered by that section 5318(i), that are opened before, on, 
     or after the date of enactment of this Act.

     SEC. 313. PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS 
                   WITH FOREIGN SHELL BANKS.

       (a) In General.--Section 5318 of title 31, United States 
     Code, as amended by this title, is amended by adding at the 
     end the following:
       ``(j) Prohibition on United States Correspondent Accounts 
     With Foreign Shell Banks.--
       ``(1) In general.--A financial institution described in 
     subparagraphs (A) through (G) of section 5312(a)(2) (in this 
     subsection referred to as a `covered financial institution') 
     shall not establish, maintain, administer, or manage a 
     correspondent account in the United States for, or on behalf 
     of, a foreign bank that does not have a physical presence in 
     any country.
       ``(2) Prevention of indirect service to foreign shell 
     banks.--A covered financial institution shall take reasonable 
     steps to ensure that any correspondent account established, 
     maintained, administered, or managed by that covered 
     financial institution in the United States for a foreign bank 
     is not being used by that foreign bank to indirectly provide 
     banking services to another foreign bank that does not have a 
     physical presence in any country. The Secretary of the 
     Treasury shall, by regulation, delineate the reasonable steps 
     necessary to comply with this paragraph.
       ``(3) Exception.--Paragraphs (1) and (2) do not prohibit a 
     covered financial institution from providing a correspondent 
     account to a foreign bank, if the foreign bank--
       ``(A) is an affiliate of a depository institution, credit 
     union, or foreign bank that maintains a physical presence in 
     the United States or a foreign country, as applicable; and
       ``(B) is subject to supervision by a banking authority in 
     the country regulating the affiliated depository institution, 
     credit union, or foreign bank described in subparagraph (A), 
     as applicable.
       ``(4) Definitions.--For purposes of this subsection--
       ``(A) the term `affiliate' means a foreign bank that is 
     controlled by or is under common control with a depository 
     institution, credit union, or foreign bank; and
       ``(B) the term `physical presence' means a place of 
     business that--
       ``(i) is maintained by a foreign bank;

[[Page 20411]]

       ``(ii) is located at a fixed address (other than solely an 
     electronic address) in a country in which the foreign bank is 
     authorized to conduct banking activities, at which location 
     the foreign bank--

       ``(I) employs 1 or more individuals on a full-time basis; 
     and
       ``(II) maintains operating records related to its banking 
     activities; and

       ``(iii) is subject to inspection by the banking authority 
     which licensed the foreign bank to conduct banking 
     activities.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect at the end of the 60-day period beginning 
     on the date of enactment of this Act.

     SEC. 314. COOPERATIVE EFFORTS TO DETER MONEY LAUNDERING.

       (a) Cooperation Among Financial Institutions, Regulatory 
     Authorities, and Law Enforcement Authorities.--
       (1) Regulations.--The Secretary shall, within 120 days 
     after the date of enactment of this Act, adopt regulations to 
     encourage further cooperation among financial institutions, 
     their regulatory authorities, and law enforcement 
     authorities, with the specific purpose of encouraging 
     regulatory authorities and law enforcement authorities to 
     share with financial institutions information regarding 
     individuals, entities, and organizations engaged in or 
     reasonably suspected based on credible evidence of engaging 
     in terrorist acts or money laundering activities.
       (2) Cooperation and information sharing procedures.--The 
     regulations adopted under paragraph (1) may include or create 
     procedures for cooperation and information sharing focusing 
     on--
       (A) matters specifically related to the finances of 
     terrorist groups, the means by which terrorist groups 
     transfer funds around the world and within the United States, 
     including through the use of charitable organizations, 
     nonprofit organizations, and nongovernmental organizations, 
     and the extent to which financial institutions in the United 
     States are unwittingly involved in such finances and the 
     extent to which such institutions are at risk as a result;
       (B) the relationship, particularly the financial 
     relationship, between international narcotics traffickers and 
     foreign terrorist organizations, the extent to which their 
     memberships overlap and engage in joint activities, and the 
     extent to which they cooperate with each other in raising and 
     transferring funds for their respective purposes; and
       (C) means of facilitating the identification of accounts 
     and transactions involving terrorist groups and facilitating 
     the exchange of information concerning such accounts and 
     transactions between financial institutions and law 
     enforcement organizations.
       (3) Contents.--The regulations adopted pursuant to 
     paragraph (1) may--
       (A) require that each financial institution designate 1 or 
     more persons to receive information concerning, and to 
     monitor accounts of individuals, entities, and organizations 
     identified, pursuant to paragraph (1); and
       (B) further establish procedures for the protection of the 
     shared information, consistent with the capacity, size, and 
     nature of the institution to which the particular procedures 
     apply.
       (4) Rule of construction.--The receipt of information by a 
     financial institution pursuant to this section shall not 
     relieve or otherwise modify the obligations of the financial 
     institution with respect to any other person or account.
       (5) Use of information.--Information received by a 
     financial institution pursuant to this section shall not be 
     used for any purpose other than identifying and reporting on 
     activities that may involve terrorist acts or money 
     laundering activities.
       (b) Cooperation Among Financial Institutions.--Upon notice 
     provided to the Secretary, 2 or more financial institutions 
     and any association of financial institutions may share 
     information with one another regarding individuals, entities, 
     organizations, and countries suspected of possible terrorist 
     or money laundering activities. A financial institution or 
     association that transmits, receives, or shares such 
     information for the purposes of identifying and reporting 
     activities that may involve terrorist acts or money 
     laundering activities shall not be liable to any person under 
     any law or regulation of the United States, any constitution, 
     law, or regulation of any State or political subdivision 
     thereof, or under any contract or other legally enforceable 
     agreement (including any arbitration agreement), for such 
     disclosure or for any failure to provide notice of such 
     disclosure to the person who is the subject of such 
     disclosure, or any other person identified in the disclosure, 
     except where such transmission, receipt, or sharing violates 
     this section or regulations promulgated pursuant to this 
     section.
       (c) Rule of Construction.--Compliance with the provisions 
     of this title requiring or allowing financial institutions 
     and any association of financial institutions to disclose or 
     share information regarding individuals, entities, and 
     organizations engaged in or suspected of engaging in 
     terrorist acts or money laundering activities shall not 
     constitute a violation of the provisions of title V of the 
     Gramm-Leach-Bliley Act (Public Law 106-102).
       (d) Reports to the Financial Services Industry on 
     Suspicious Financial Activities.--At least semiannually, the 
     Secretary shall--
       (1) publish a report containing a detailed analysis 
     identifying patterns of suspicious activity and other 
     investigative insights derived from suspicious activity 
     reports and investigations conducted by Federal, State, and 
     local law enforcement agencies to the extent appropriate; and
       (2) distribute such report to financial institutions (as 
     defined in section 5312 of title 31, United States Code).

     SEC. 315. INCLUSION OF FOREIGN CORRUPTION OFFENSES AS MONEY 
                   LAUNDERING CRIMES.

       Section 1956(c)(7) of title 18, United States Code, is 
     amended--
       (1) in subparagraph (B)--
       (A) in clause (ii), by striking ``or destruction of 
     property by means of explosive or fire'' and inserting 
     ``destruction of property by means of explosive or fire, or a 
     crime of violence (as defined in section 16)'';
       (B) in clause (iii), by striking ``1978'' and inserting 
     ``1978)''; and
       (C) by adding at the end the following:
       ``(iv) bribery of a public official, or the 
     misappropriation, theft, or embezzlement of public funds by 
     or for the benefit of a public official;
       ``(v) smuggling or export control violations involving--

       ``(I) an item controlled on the United States Munitions 
     List established under section 38 of the Arms Export Control 
     Act (22 U.S.C. 2778); or
       ``(II) an item controlled under regulations under the 
     Export Administration Regulations (15 C.F.R. Parts 730-774); 
     or

       ``(vi) an offense with respect to which the United States 
     would be obligated by a multilateral treaty, either to 
     extradite the alleged offender or to submit the case for 
     prosecution, if the offender were found within the territory 
     of the United States;''; and
       (2) in subparagraph (D)--
       (A) by inserting ``section 541 (relating to goods falsely 
     classified),'' before ``section 542'';
       (B) by inserting ``section 922(1) (relating to the unlawful 
     importation of firearms), section 924(n) (relating to 
     firearms trafficking),'' before ``section 956'';
       (C) by inserting ``section 1030 (relating to computer fraud 
     and abuse),'' before ``1032''; and
       (D) by inserting ``any felony violation of the Foreign 
     Agents Registration Act of 1938,'' before ``or any felony 
     violation of the Foreign Corrupt Practices Act''.

     SEC. 316. ANTI-TERRORIST FORFEITURE PROTECTION.

       (a) Right to Contest.--An owner of property that is 
     confiscated under any provision of law relating to the 
     confiscation of assets of suspected international terrorists, 
     may contest that confiscation by filing a claim in the manner 
     set forth in the Federal Rules of Civil Procedure 
     (Supplemental Rules for Certain Admiralty and Maritime 
     Claims), and asserting as an affirmative defense that--
       (1) the property is not subject to confiscation under such 
     provision of law; or
       (2) the innocent owner provisions of section 983(d) of 
     title 18, United States Code, apply to the case.
       (b) Evidence.--In considering a claim filed under this 
     section, a court may admit evidence that is otherwise 
     inadmissible under the Federal Rules of Evidence, if the 
     court determines that the evidence is reliable, and that 
     compliance with the Federal Rules of Evidence may jeopardize 
     the national security interests of the United States.
       (c) Clarifications.--
       (1) Protection of rights.--The exclusion of certain 
     provisions of Federal law from the definition of the term 
     ``civil forfeiture statute'' in section 983(i) of title 18, 
     United States Code, shall not be construed to deny an owner 
     of property the right to contest the confiscation of assets 
     of suspected international terrorists under--
       (A) subsection (a) of this section;
       (B) the Constitution; or
       (C) subchapter II of chapter 5 of title 5, United States 
     Code (commonly known as the ``Administrative Procedure 
     Act'').
       (2) Savings clause.--Nothing in this section shall limit or 
     otherwise affect any other remedies that may be available to 
     an owner of property under section 983 of title 18, United 
     States Code, or any other provision of law.
       (d) Technical Correction.--Section 983(i)(2)(D) of title 
     18, United States Code, is amended by inserting ``or the 
     International Emergency Economic Powers Act (IEEPA) (50 
     U.S.C. 1701 et seq.)'' before the semicolon.

     SEC. 317. LONG-ARM JURISDICTION OVER FOREIGN MONEY 
                   LAUNDERERS.

       Section 1956(b) of title 18, United States Code, is 
     amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and moving the 
     margins 2 ems to the right;
       (2) by inserting after ``(b)'' the following: 
     ``Penalties.--
       ``(1) In general.--'';
       (3) by inserting ``, or section 1957'' after ``or (a)(3)''; 
     and
       (4) by adding at the end the following:
       ``(2) Jurisdiction over foreign persons.--For purposes of 
     adjudicating an action filed or enforcing a penalty ordered 
     under this

[[Page 20412]]

     section, the district courts shall have jurisdiction over any 
     foreign person, including any financial institution 
     authorized under the laws of a foreign country, against whom 
     the action is brought, if service of process upon the foreign 
     person is made under the Federal Rules of Civil Procedure or 
     the laws of the country in which the foreign person is found, 
     and--
       ``(A) the foreign person commits an offense under 
     subsection (a) involving a financial transaction that occurs 
     in whole or in part in the United States;
       ``(B) the foreign person converts, to his or her own use, 
     property in which the United States has an ownership interest 
     by virtue of the entry of an order of forfeiture by a court 
     of the United States; or
       ``(C) the foreign person is a financial institution that 
     maintains a bank account at a financial institution in the 
     United States.
       ``(3) Court authority over assets.--A court described in 
     paragraph (2) may issue a pretrial restraining order or take 
     any other action necessary to ensure that any bank account or 
     other property held by the defendant in the United States is 
     available to satisfy a judgment under this section.
       ``(4) Federal receiver.--
       ``(A) In general.--A court described in paragraph (2) may 
     appoint a Federal Receiver, in accordance with subparagraph 
     (B) of this paragraph, to collect, marshal, and take custody, 
     control, and possession of all assets of the defendant, 
     wherever located, to satisfy a civil judgment under this 
     subsection, a forfeiture judgment under section 981 or 982, 
     or a criminal sentence under section 1957 or subsection (a) 
     of this section, including an order of restitution to any 
     victim of a specified unlawful activity.
       ``(B) Appointment and authority.--A Federal Receiver 
     described in subparagraph (A)--
       ``(i) may be appointed upon application of a Federal 
     prosecutor or a Federal or State regulator, by the court 
     having jurisdiction over the defendant in the case;
       ``(ii) shall be an officer of the court, and the powers of 
     the Federal Receiver shall include the powers set out in 
     section 754 of title 28, United States Code; and
       ``(iii) shall have standing equivalent to that of a Federal 
     prosecutor for the purpose of submitting requests to obtain 
     information regarding the assets of the defendant--

       ``(I) from the Financial Crimes Enforcement Network of the 
     Department of the Treasury; or
       ``(II) from a foreign country pursuant to a mutual legal 
     assistance treaty, multilateral agreement, or other 
     arrangement for international law enforcement assistance, 
     provided that such requests are in accordance with the 
     policies and procedures of the Attorney General.''.

     SEC. 318. LAUNDERING MONEY THROUGH A FOREIGN BANK.

       Section 1956(c) of title 18, United States Code, is amended 
     by striking paragraph (6) and inserting the following:
       ``(6) the term `financial institution' includes--
       ``(A) any financial institution, as defined in section 
     5312(a)(2) of title 31, United States Code, or the 
     regulations promulgated thereunder; and
       ``(B) any foreign bank, as defined in section 1 of the 
     International Banking Act of 1978 (12 U.S.C. 3101).''.

     SEC. 319. FORFEITURE OF FUNDS IN UNITED STATES INTERBANK 
                   ACCOUNTS.

       (a) Forfeiture From United States Interbank Account.--
     Section 981 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(k) Interbank Accounts.--
       ``(1) In general.--
       ``(A) In general.--For the purpose of a forfeiture under 
     this section or under the Controlled Substances Act (21 
     U.S.C. 801 et seq.), if funds are deposited into an account 
     at a foreign bank, and that foreign bank has an interbank 
     account in the United States with a covered financial 
     institution (as defined in section 5318(j)(1) of title 31), 
     the funds shall be deemed to have been deposited into the 
     interbank account in the United States, and any restraining 
     order, seizure warrant, or arrest warrant in rem regarding 
     the funds may be served on the covered financial institution, 
     and funds in the interbank account, up to the value of the 
     funds deposited into the account at the foreign bank, may be 
     restrained, seized, or arrested.
       ``(B) Authority to suspend.--The Attorney General, in 
     consultation with the Secretary of the Treasury, may suspend 
     or terminate a forfeiture under this section if the Attorney 
     General determines that a conflict of law exists between the 
     laws of the jurisdiction in which the foreign bank is located 
     and the laws of the United States with respect to liabilities 
     arising from the restraint, seizure, or arrest of such funds, 
     and that such suspension or termination would be in the 
     interest of justice and would not harm the national interests 
     of the United States.
       ``(2) No requirement for government to trace funds.--If a 
     forfeiture action is brought against funds that are 
     restrained, seized, or arrested under paragraph (1), it shall 
     not be necessary for the Government to establish that the 
     funds are directly traceable to the funds that were deposited 
     into the foreign bank, nor shall it be necessary for the 
     Government to rely on the application of section 984.
       ``(3) Claims brought by owner of the funds.--If a 
     forfeiture action is instituted against funds restrained, 
     seized, or arrested under paragraph (1), the owner of the 
     funds deposited into the account at the foreign bank may 
     contest the forfeiture by filing a claim under section 983.
       ``(4) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Interbank account.--The term `interbank account' has 
     the same meaning as in section 984(c)(2)(B).
       ``(B) Owner.--
       ``(i) In general.--Except as provided in clause (ii), the 
     term `owner'--

       ``(I) means the person who was the owner, as that term is 
     defined in section 983(d)(6), of the funds that were 
     deposited into the foreign bank at the time such funds were 
     deposited; and
       ``(II) does not include either the foreign bank or any 
     financial institution acting as an intermediary in the 
     transfer of the funds into the interbank account.

       ``(ii) Exception.--The foreign bank may be considered the 
     `owner' of the funds (and no other person shall qualify as 
     the owner of such funds) only if--

       ``(I) the basis for the forfeiture action is wrongdoing 
     committed by the foreign bank; or
       ``(II) the foreign bank establishes, by a preponderance of 
     the evidence, that prior to the restraint, seizure, or arrest 
     of the funds, the foreign bank had discharged all or part of 
     its obligation to the prior owner of the funds, in which case 
     the foreign bank shall be deemed the owner of the funds to 
     the extent of such discharged obligation.''.

       (b) Bank Records.--Section 5318 of title 31, United States 
     Code, as amended by this title, is amended by adding at the 
     end the following:
       ``(k) Bank Records Related to Anti-Money Laundering 
     Programs.--
       ``(1) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Appropriate federal banking agency.--The term 
     `appropriate Federal banking agency' has the same meaning as 
     in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
     1813).
       ``(B) Incorporated term.--The term `correspondent account' 
     has the same meaning as in section 5318A(f)(1)(B).
       ``(2) 120-hour rule.--Not later than 120 hours after 
     receiving a request by an appropriate Federal banking agency 
     for information related to anti-money laundering compliance 
     by a covered financial institution or a customer of such 
     institution, a covered financial institution shall provide to 
     the appropriate Federal banking agency, or make available at 
     a location specified by the representative of the appropriate 
     Federal banking agency, information and account documentation 
     for any account opened, maintained, administered or managed 
     in the United States by the covered financial institution.
       ``(3) Foreign bank records.--
       ``(A) Summons or subpoena of records.--
       ``(i) In general.--The Secretary of the Treasury or the 
     Attorney General may issue a summons or subpoena to any 
     foreign bank that maintains a correspondent account in the 
     United States and request records related to such 
     correspondent account, including records maintained outside 
     of the United States relating to the deposit of funds into 
     the foreign bank.
       ``(ii) Service of summons or subpoena.--A summons or 
     subpoena referred to in clause (i) may be served on the 
     foreign bank in the United States if the foreign bank has a 
     representative in the United States, or in a foreign country 
     pursuant to any mutual legal assistance treaty, multilateral 
     agreement, or other request for international law enforcement 
     assistance.
       ``(B) Acceptance of service.--
       ``(i) Maintaining records in the united states.--Any 
     covered financial institution which maintains a correspondent 
     account in the United States for a foreign bank shall 
     maintain records in the United States identifying the owners 
     of such foreign bank and the name and address of a person who 
     resides in the United States and is authorized to accept 
     service of legal process for records regarding the 
     correspondent account.
       ``(ii) Law enforcement request.--Upon receipt of a written 
     request from a Federal law enforcement officer for 
     information required to be maintained under this paragraph, 
     the covered financial institution shall provide the 
     information to the requesting officer not later than 7 days 
     after receipt of the request.
       ``(C) Termination of correspondent relationship.--
       ``(i) Termination upon receipt of notice.--A covered 
     financial institution shall terminate any correspondent 
     relationship with a foreign bank not later than 10 business 
     days after receipt of written notice from the Secretary or 
     the Attorney General (in each case, after consultation with 
     the other) that the foreign bank has failed--

       ``(I) to comply with a summons or subpoena issued under 
     subparagraph (A); or
       ``(II) to initiate proceedings in a United States court 
     contesting such summons or subpoena.

[[Page 20413]]

       ``(ii) Limitation on liability.--A covered financial 
     institution shall not be liable to any person in any court or 
     arbitration proceeding for terminating a correspondent 
     relationship in accordance with this subsection.
       ``(iii) Failure to terminate relationship.--Failure to 
     terminate a correspondent relationship in accordance with 
     this subsection shall render the covered financial 
     institution liable for a civil penalty of up to $10,000 per 
     day until the correspondent relationship is so terminated.''.
       (c) Grace Period.--Financial institutions shall have 60 
     days from the date of enactment of this Act to comply with 
     the provisions of section 5318(k) of title 31, United States 
     Code, as added by this section.
       (d) Authority To Order Convicted Criminal To Return 
     Property Located Abroad.--
       (1) Forfeiture of substitute property.--Section 413(p) of 
     the Controlled Substances Act (21 U.S.C. 853) is amended to 
     read as follows:
       ``(p) Forfeiture of Substitute Property.--
       ``(1) In general.--Paragraph (2) of this subsection shall 
     apply, if any property described in subsection (a), as a 
     result of any act or omission of the defendant--
       ``(A) cannot be located upon the exercise of due diligence;
       ``(B) has been transferred or sold to, or deposited with, a 
     third party;
       ``(C) has been placed beyond the jurisdiction of the court;
       ``(D) has been substantially diminished in value; or
       ``(E) has been commingled with other property which cannot 
     be divided without difficulty.
       ``(2) Substitute property.--In any case described in any of 
     subparagraphs (A) through (E) of paragraph (1), the court 
     shall order the forfeiture of any other property of the 
     defendant, up to the value of any property described in 
     subparagraphs (A) through (E) of paragraph (1), as 
     applicable.
       ``(3) Return of property to jurisdiction.--In the case of 
     property described in paragraph (1)(C), the court may, in 
     addition to any other action authorized by this subsection, 
     order the defendant to return the property to the 
     jurisdiction of the court so that the property may be seized 
     and forfeited.''.
       (2) Protective orders.--Section 413(e) of the Controlled 
     Substances Act (21 U.S.C. 853(e)) is amended by adding at the 
     end the following:
       ``(4) Order to repatriate and deposit.--
       ``(A) In general.--Pursuant to its authority to enter a 
     pretrial restraining order under this section, the court may 
     order a defendant to repatriate any property that may be 
     seized and forfeited, and to deposit that property pending 
     trial in the registry of the court, or with the United States 
     Marshals Service or the Secretary of the Treasury, in an 
     interest-bearing account, if appropriate.
       ``(B) Failure to comply.--Failure to comply with an order 
     under this subsection, or an order to repatriate property 
     under subsection (p), shall be punishable as a civil or 
     criminal contempt of court, and may also result in an 
     enhancement of the sentence of the defendant under the 
     obstruction of justice provision of the Federal Sentencing 
     Guidelines.''.

     SEC. 320. PROCEEDS OF FOREIGN CRIMES.

       Section 981(a)(1)(B) of title 18, United States Code, is 
     amended to read as follows:
       ``(B) Any property, real or personal, within the 
     jurisdiction of the United States, constituting, derived 
     from, or traceable to, any proceeds obtained directly or 
     indirectly from an offense against a foreign nation, or any 
     property used to facilitate such an offense, if the offense--
       ``(i) involves the manufacture, importation, sale, or 
     distribution of a controlled substance (as that term is 
     defined for purposes of the Controlled Substances Act), or 
     any other conduct described in section 1956(c)(7)(B);
       ``(ii) would be punishable within the jurisdiction of the 
     foreign nation by death or imprisonment for a term exceeding 
     1 year; and
       ``(iii) would be punishable under the laws of the United 
     States by imprisonment for a term exceeding 1 year, if the 
     act or activity constituting the offense had occurred within 
     the jurisdiction of the United States.''.

     SEC. 321. FINANCIAL INSTITUTIONS SPECIFIED IN SUBCHAPTER II 
                   OF CHAPTER 53 OF TITLE 31, UNITED STATES CODE.

       (a) Credit Unions.--Subparagraph (E) of section 5312(2) of 
     title 31, United States Code, is amended to read as follows:
       ``(E) any credit union;''.
       (b) Futures Commission Merchant; Commodity Trading Advisor; 
     Commodity Pool Operator.--Section 5312 of title 31, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(c) Additional Definitions.--For purposes of this 
     subchapter, the following definitions shall apply:
       ``(1) Certain institutions included in definition.--The 
     term `financial institution' (as defined in subsection (a)) 
     includes the following:
       ``(A) Any futures commission merchant, commodity trading 
     advisor, or commodity pool operator registered, or required 
     to register, under the Commodity Exchange Act.''.
       (c) CFTC Included.--For purposes of this Act and any 
     amendment made by this Act to any other provision of law, the 
     term ``Federal functional regulator'' includes the Commodity 
     Futures Trading Commission.

     SEC. 322. CORPORATION REPRESENTED BY A FUGITIVE.

       Section 2466 of title 18, United States Code, is amended by 
     designating the present matter as subsection (a), and adding 
     at the end the following:
       ``(b) Subsection (a) may be applied to a claim filed by a 
     corporation if any majority shareholder, or individual filing 
     the claim on behalf of the corporation is a person to whom 
     subsection (a) applies.''.

     SEC. 323. ENFORCEMENT OF FOREIGN JUDGMENTS.

       Section 2467 of title 28, United States Code, is amended--
       (1) in subsection (d), by adding the following after 
     paragraph (2):
       ``(3) Preservation of property.--
       ``(A) In general.--To preserve the availability of property 
     subject to a foreign forfeiture or confiscation judgment, the 
     Government may apply for, and the court may issue, a 
     restraining order pursuant to section 983(j) of title 18, at 
     any time before or after an application is filed pursuant to 
     subsection (c)(1) of this section.
       ``(B) Evidence.--The court, in issuing a restraining order 
     under subparagraph (A)--
       ``(i) may rely on information set forth in an affidavit 
     describing the nature of the proceeding or investigation 
     underway in the foreign country, and setting forth a 
     reasonable basis to believe that the property to be 
     restrained will be named in a judgment of forfeiture at the 
     conclusion of such proceeding; or
       ``(ii) may register and enforce a restraining order that 
     has been issued by a court of competent jurisdiction in the 
     foreign country and certified by the Attorney General 
     pursuant to subsection (b)(2).
       ``(C) Limit on grounds for objection.--No person may object 
     to a restraining order under subparagraph (A) on any ground 
     that is the subject of parallel litigation involving the same 
     property that is pending in a foreign court.'';
       (2) in subsection (b)(1)(C), by striking ``establishing 
     that the defendant received notice of the proceedings in 
     sufficient time to enable the defendant'' and inserting 
     ``establishing that the foreign nation took steps, in 
     accordance with the principles of due process, to give notice 
     of the proceedings to all persons with an interest in the 
     property in sufficient time to enable such persons'';
       (3) in subsection (d)(1)(D), by striking ``the defendant in 
     the proceedings in the foreign court did not receive notice'' 
     and inserting ``the foreign nation did not take steps, in 
     accordance with the principles of due process, to give notice 
     of the proceedings to a person with an interest in the 
     property''; and
       (4) in subsection (a)(2)(A), by inserting ``, any violation 
     of foreign law that would constitute a violation or an 
     offense for which property could be forfeited under Federal 
     law if the offense were committed in the United States'' 
     after ``United Nations Convention''.

     SEC. 324. REPORT AND RECOMMENDATION.

       Not later than 30 months after the date of enactment of 
     this Act, the Secretary, in consultation with the Attorney 
     General, the Federal banking agencies (as defined at section 
     3 of the Federal Deposit Insurance Act), the National Credit 
     Union Administration Board, the Securities and Exchange 
     Commission, and such other agencies as the Secretary may 
     determine, at the discretion of the Secretary, shall evaluate 
     the operations of the provisions of this subtitle and make 
     recommendations to Congress as to any legislative action with 
     respect to this subtitle as the Secretary may determine to be 
     necessary or advisable.

     SEC. 325. CONCENTRATION ACCOUNTS AT FINANCIAL INSTITUTIONS.

       Section 5318(h) of title 31, United States Code, as amended 
     by section 202 of this title, is amended by adding at the end 
     the following:
       ``(3) Concentration accounts.--The Secretary may prescribe 
     regulations under this subsection that govern maintenance of 
     concentration accounts by financial institutions, in order to 
     ensure that such accounts are not used to prevent association 
     of the identity of an individual customer with the movement 
     of funds of which the customer is the direct or beneficial 
     owner, which regulations shall, at a minimum--
       ``(A) prohibit financial institutions from allowing clients 
     to direct transactions that move their funds into, out of, or 
     through the concentration accounts of the financial 
     institution;
       ``(B) prohibit financial institutions and their employees 
     from informing customers of the existence of, or the means of 
     identifying, the concentration accounts of the institution; 
     and
       ``(C) require each financial institution to establish 
     written procedures governing the documentation of all 
     transactions involving a concentration account, which 
     procedures shall ensure that, any time a transaction 
     involving a concentration account commingles funds belonging 
     to 1 or more customers, the identity of, and specific amount 
     belonging to, each customer is documented.''.

[[Page 20414]]



     SEC. 326. VERIFICATION OF IDENTIFICATION.

       (a) In General.--Section 5318 of title 31, United States 
     Code, as amended by this title, is amended by adding at the 
     end the following:
       ``(l) Identification and Verification of Accountholders.--
       ``(1) In general.--Subject to the requirements of this 
     subsection, the Secretary of the Treasury shall prescribe 
     regulations setting forth the minimum standards for financial 
     institutions and their customers regarding the identity of 
     the customer that shall apply in connection with the opening 
     of an account at a financial institution.
       ``(2) Minimum requirements.--The regulations shall, at a 
     minimum, require financial institutions to implement, and 
     customers (after being given adequate notice) to comply with, 
     reasonable procedures for--
       ``(A) verifying the identity of any person seeking to open 
     an account to the extent reasonable and practicable;
       ``(B) maintaining records of the information used to verify 
     a person's identity, including name, address, and other 
     identifying information; and
       ``(C) consulting lists of known or suspected terrorists or 
     terrorist organizations provided to the financial institution 
     by any government agency to determine whether a person 
     seeking to open an account appears on any such list.
       ``(3) Factors to be considered.--In prescribing regulations 
     under this subsection, the Secretary shall take into 
     consideration the various types of accounts maintained by 
     various types of financial institutions, the various methods 
     of opening accounts, and the various types of identifying 
     information available.
       ``(4) Certain financial institutions.--In the case of any 
     financial institution the business of which is engaging in 
     financial activities described in section 4(k) of the Bank 
     Holding Company Act of 1956 (including financial activities 
     subject to the jurisdiction of the Commodity Futures Trading 
     Commission), the regulations prescribed by the Secretary 
     under paragraph (1) shall be prescribed jointly with each 
     Federal functional regulator (as defined in section 509 of 
     the Gramm-Leach-Bliley Act, including the Commodity Futures 
     Trading Commission) appropriate for such financial 
     institution.
       ``(5) Exemptions.--The Secretary (and, in the case of any 
     financial institution described in paragraph (4), any Federal 
     agency described in such paragraph) may, by regulation or 
     order, exempt any financial institution or type of account 
     from the requirements of any regulation prescribed under this 
     subsection in accordance with such standards and procedures 
     as the Secretary may prescribe.
       ``(6) Effective date.--Final regulations prescribed under 
     this subsection shall take effect before the end of the 1-
     year period beginning on the date of enactment of the 
     International Money Laundering Abatement and Financial Anti-
     Terrorism Act of 2001.''.
       (b) Study and Report Required.--Within 6 months after the 
     date of enactment of this Act, the Secretary, in consultation 
     with the Federal functional regulators (as defined in section 
     509 of the Gramm-Leach-Bliley Act) and other appropriate 
     Government agencies, shall submit a report to the Congress 
     containing recommendations for--
       (1) determining the most timely and effective way to 
     require foreign nationals to provide domestic financial 
     institutions and agencies with appropriate and accurate 
     information, comparable to that which is required of United 
     States nationals, concerning the identity, address, and other 
     related information about such foreign nationals necessary to 
     enable such institutions and agencies to comply with the 
     requirements of this section;
       (2) requiring foreign nationals to apply for and obtain, 
     before opening an account with a domestic financial 
     institution, an identification number which would function 
     similarly to a Social Security number or tax identification 
     number; and
       (3) establishing a system for domestic financial 
     institutions and agencies to review information maintained by 
     relevant Government agencies for purposes of verifying the 
     identities of foreign nationals seeking to open accounts at 
     those institutions and agencies.

     SEC. 327. CONSIDERATION OF ANTI-MONEY LAUNDERING RECORD.

       (a) Bank Holding Company Act of 1956.--
       (1) In general.--Section 3(c) of the Bank Holding Company 
     Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the 
     end the following new paragraph:
       ``(6) Money laundering.--In every case, the Board shall 
     take into consideration the effectiveness of the company or 
     companies in combatting money laundering activities, 
     including in overseas branches.''.
       (2) Scope of application.--The amendment made by paragraph 
     (1) shall apply with respect to any application submitted to 
     the Board of Governors of the Federal Reserve System under 
     section 3 of the Bank Holding Company Act of 1956 after 
     December 31, 2001, which has not been approved by the Board 
     before the date of enactment of this Act.
       (b) Mergers Subject to Review Under Federal Deposit 
     Insurance Act.--
       (1) In general.--Section 18(c) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(c)) is amended--
       (A) by redesignating paragraph (11) as paragraph (12); and
       (B) by inserting after paragraph (10), the following new 
     paragraph:
       ``(11) Money laundering.--In every case, the responsible 
     agency, shall take into consideration the effectiveness of 
     any insured depository institution involved in the proposed 
     merger transaction in combatting money laundering activities, 
     including in overseas branches.''.
       (2) Scope of application.--The amendment made by paragraph 
     (1) shall apply with respect to any application submitted to 
     the responsible agency under section 18(c) of the Federal 
     Deposit Insurance Act after December 31, 2001, which has not 
     been approved by all appropriate responsible agencies before 
     the date of enactment of this Act.

     SEC. 328. INTERNATIONAL COOPERATION ON IDENTIFICATION OF 
                   ORIGINATORS OF WIRE TRANSFERS.

       The Secretary shall--
       (1) in consultation with the Attorney General and the 
     Secretary of State, take all reasonable steps to encourage 
     foreign governments to require the inclusion of the name of 
     the originator in wire transfer instructions sent to the 
     United States and other countries, with the information to 
     remain with the transfer from its origination until the point 
     of disbursement; and
       (2) report annually to the Committee on Financial Services 
     of the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate on--
       (A) progress toward the goal enumerated in paragraph (1), 
     as well as impediments to implementation and an estimated 
     compliance rate; and
       (B) impediments to instituting a regime in which all 
     appropriate identification, as defined by the Secretary, 
     about wire transfer recipients shall be included with wire 
     transfers from their point of origination until disbursement.

     SEC. 329. CRIMINAL PENALTIES.

       Any person who is an official or employee of any 
     department, agency, bureau, office, commission, or other 
     entity of the Federal Government, and any other person who is 
     acting for or on behalf of any such entity, who, directly or 
     indirectly, in connection with the administration of this 
     title, corruptly demands, seeks, receives, accepts, or agrees 
     to receive or accept anything of value personally or for any 
     other person or entity in return for--
       (1) being influenced in the performance of any official 
     act;
       (2) being influenced to commit or aid in the committing, or 
     to collude in, or allow, any fraud, or make opportunity for 
     the commission of any fraud, on the United States; or
       (3) being induced to do or omit to do any act in violation 
     of the official duty of such official or person,

     shall be fined in an amount not more than 3 times the 
     monetary equivalent of the thing of value, or imprisoned for 
     not more than 15 years, or both. A violation of this section 
     shall be subject to chapter 227 of title 18, United States 
     Code, and the provisions of the United States Sentencing 
     Guidelines.

     SEC. 330. INTERNATIONAL COOPERATION IN INVESTIGATIONS OF 
                   MONEY LAUNDERING, FINANCIAL CRIMES, AND THE 
                   FINANCES OF TERRORIST GROUPS.

       (a) Negotiations.--It is the sense of the Congress that the 
     President should direct the Secretary of State, the Attorney 
     General, or the Secretary of the Treasury, as appropriate, 
     and in consultation with the Board of Governors of the 
     Federal Reserve System, to seek to enter into negotiations 
     with the appropriate financial supervisory agencies and other 
     officials of any foreign country the financial institutions 
     of which do business with United States financial 
     institutions or which may be utilized by any foreign 
     terrorist organization (as designated under section 219 of 
     the Immigration and Nationality Act), any person who is a 
     member or representative of any such organization, or any 
     person engaged in money laundering or financial or other 
     crimes.
       (b) Purposes of Negotiations.--It is the sense of the 
     Congress that, in carrying out any negotiations described in 
     paragraph (1), the President should direct the Secretary of 
     State, the Attorney General, or the Secretary of the 
     Treasury, as appropriate, to seek to enter into and further 
     cooperative efforts, voluntary information exchanges, the use 
     of letters rogatory, mutual legal assistance treaties, and 
     international agreements to--
       (1) ensure that foreign banks and other financial 
     institutions maintain adequate records of transaction and 
     account information relating to any foreign terrorist 
     organization (as designated under section 219 of the 
     Immigration and Nationality Act), any person who is a member 
     or representative of any such organization, or any person 
     engaged in money laundering or financial or other crimes; and
       (2) establish a mechanism whereby such records may be made 
     available to United States law enforcement officials and 
     domestic financial institution supervisors, when appropriate.

[[Page 20415]]



    Subtitle B--Bank Secrecy Act Amendments and Related Improvements

     SEC. 351. AMENDMENTS RELATING TO REPORTING OF SUSPICIOUS 
                   ACTIVITIES.

       (a) Amendment Relating to Civil Liability Immunity for 
     Disclosures.--Section 5318(g)(3) of title 31, United States 
     Code, is amended to read as follows:
       ``(3) Liability for disclosures.--
       ``(A) In general.--Any financial institution that makes a 
     voluntary disclosure of any possible violation of law or 
     regulation to a government agency or makes a disclosure 
     pursuant to this subsection or any other authority, and any 
     director, officer, employee, or agent of such institution who 
     makes, or requires another to make any such disclosure, shall 
     not be liable to any person under any law or regulation of 
     the United States, any constitution, law, or regulation of 
     any State or political subdivision of any State, or under any 
     contract or other legally enforceable agreement (including 
     any arbitration agreement), for such disclosure or for any 
     failure to provide notice of such disclosure to the person 
     who is the subject of such disclosure or any other person 
     identified in the disclosure.
       ``(B) Rule of construction.--Subparagraph (A) shall not be 
     construed as creating--
       ``(i) any inference that the term `person', as used in such 
     subparagraph, may be construed more broadly than its ordinary 
     usage so as to include any government or agency of 
     government; or
       ``(ii) any immunity against, or otherwise affecting, any 
     civil or criminal action brought by any government or agency 
     of government to enforce any constitution, law, or regulation 
     of such government or agency.''.
       (b) Prohibition on Notification of Disclosures.--Section 
     5318(g)(2) of title 31, United States Code, is amended to 
     read as follows:
       ``(2) Notification prohibited.--
       ``(A) In general.--If a financial institution or any 
     director, officer, employee, or agent of any financial 
     institution, voluntarily or pursuant to this section or any 
     other authority, reports a suspicious transaction to a 
     government agency--
       ``(i) the financial institution, director, officer, 
     employee, or agent may not notify any person involved in the 
     transaction that the transaction has been reported; and
       ``(ii) no officer or employee of the Federal Government or 
     of any State, local, tribal, or territorial government within 
     the United States, who has any knowledge that such report was 
     made may disclose to any person involved in the transaction 
     that the transaction has been reported, other than as 
     necessary to fulfill the official duties of such officer or 
     employee.
       ``(B) Disclosures in certain employment references.--
       ``(i) Rule of construction.--Notwithstanding the 
     application of subparagraph (A) in any other context, 
     subparagraph (A) shall not be construed as prohibiting any 
     financial institution, or any director, officer, employee, or 
     agent of such institution, from including information that 
     was included in a report to which subparagraph (A) applies--

       ``(I) in a written employment reference that is provided in 
     accordance with section 18(w) of the Federal Deposit 
     Insurance Act in response to a request from another financial 
     institution; or
       ``(II) in a written termination notice or employment 
     reference that is provided in accordance with the rules of a 
     self-regulatory organization registered with the Securities 
     and Exchange Commission or the Commodity Futures Trading 
     Commission,

     except that such written reference or notice may not disclose 
     that such information was also included in any such report, 
     or that such report was made.
       ``(ii) Information not required.--Clause (i) shall not be 
     construed, by itself, to create any affirmative duty to 
     include any information described in clause (i) in any 
     employment reference or termination notice referred to in 
     clause (i).''.

     SEC. 352. ANTI-MONEY LAUNDERING PROGRAMS.

       (a) In General.--Section 5318(h) of title 31, United States 
     Code, is amended to read as follows:
       ``(h) Anti-money Laundering Programs.--
       ``(1) In general.--In order to guard against money 
     laundering through financial institutions, each financial 
     institution shall establish anti-money laundering programs, 
     including, at a minimum--
       ``(A) the development of internal policies, procedures, and 
     controls;
       ``(B) the designation of a compliance officer;
       ``(C) an ongoing employee training program; and
       ``(D) an independent audit function to test programs.
       ``(2) Regulations.--The Secretary of the Treasury, after 
     consultation with the appropriate Federal functional 
     regulator (as defined in section 509 of the Gramm-Leach-
     Bliley Act), may prescribe minimum standards for programs 
     established under paragraph (1), and may exempt from the 
     application of those standards any financial institution that 
     is not subject to the provisions of the rules contained in 
     part 103 of title 31, of the Code of Federal Regulations, or 
     any successor rule thereto, for so long as such financial 
     institution is not subject to the provisions of such 
     rules.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect at the end of the 180-day period beginning 
     on the date of enactment of this Act.
       (c) Date of Application of Regulations; Factors to Be Taken 
     Into Account.--Before the end of the 180-day period beginning 
     on the date of enactment of this Act, the Secretary shall 
     prescribe regulations that consider the extent to which the 
     requirements imposed under this section are commensurate with 
     the size, location, and activities of the financial 
     institutions to which such regulations apply.

     SEC. 353. PENALTIES FOR VIOLATIONS OF GEOGRAPHIC TARGETING 
                   ORDERS AND CERTAIN RECORDKEEPING REQUIREMENTS, 
                   AND LENGTHENING EFFECTIVE PERIOD OF GEOGRAPHIC 
                   TARGETING ORDERS.

       (a) Civil Penalty for Violation of Targeting Order.--
     Section 5321(a)(1) of title 31, United States Code, is 
     amended--
       (1) by inserting ``or order issued'' after ``subchapter or 
     a regulation prescribed''; and
       (2) by inserting ``, or willfully violating a regulation 
     prescribed under section 21 of the Federal Deposit Insurance 
     Act or section 123 of Public Law 91-508,'' after ``sections 
     5314 and 5315)''.
       (b) Criminal Penalties for Violation of Targeting Order.--
     Section 5322 of title 31, United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``or order issued'' after ``willfully 
     violating this subchapter or a regulation prescribed''; and
       (B) by inserting ``, or willfully violating a regulation 
     prescribed under section 21 of the Federal Deposit Insurance 
     Act or section 123 of Public Law 91-508,'' after ``under 
     section 5315 or 5324)''; and
       (2) in subsection (b)--
       (A) by inserting ``or order issued'' after ``willfully 
     violating this subchapter or a regulation prescribed''; and
       (B) by inserting ``or willfully violating a regulation 
     prescribed under section 21 of the Federal Deposit Insurance 
     Act or section 123 of Public Law 91-508,'' after ``under 
     section 5315 or 5324),''.
       (c) Structuring Transactions To Evade Targeting Order or 
     Certain Recordkeeping Requirements.--Section 5324(a) of title 
     31, United States Code, is amended--
       (1) by inserting a comma after ``shall'';
       (2) by striking ``section--'' and inserting ``section, the 
     reporting or recordkeeping requirements imposed by any order 
     issued under section 5326, or the recordkeeping requirements 
     imposed by any regulation prescribed under section 21 of the 
     Federal Deposit Insurance Act or section 123 of Public Law 
     91-508--'';
       (3) in paragraph (1), by inserting ``, to file a report or 
     to maintain a record required by an order issued under 
     section 5326, or to maintain a record required pursuant to 
     any regulation prescribed under section 21 of the Federal 
     Deposit Insurance Act or section 123 of Public Law 91-508'' 
     after ``regulation prescribed under any such section''; and
       (4) in paragraph (2), by inserting ``, to file a report or 
     to maintain a record required by any order issued under 
     section 5326, or to maintain a record required pursuant to 
     any regulation prescribed under section 5326, or to maintain 
     a record required pursuant to any regulation prescribed under 
     section 21 of the Federal Deposit Insurance Act or section 
     123 of Public Law 91-508,'' after ``regulation prescribed 
     under any such section''.
       (d) Lengthening Effective Period of Geographic Targeting 
     Orders.--Section 5326(d) of title 31, United States Code, is 
     amended by striking ``more than 60'' and inserting ``more 
     than 180''.

     SEC. 354. ANTI-MONEY LAUNDERING STRATEGY.

       Section 5341(b) of title 31, United States Code, is amended 
     by adding at the end the following:
       ``(12) Data regarding funding of terrorism.--Data 
     concerning money laundering efforts related to the funding of 
     acts of international terrorism, and efforts directed at the 
     prevention, detection, and prosecution of such funding.''.

     SEC. 355. AUTHORIZATION TO INCLUDE SUSPICIONS OF ILLEGAL 
                   ACTIVITY IN WRITTEN EMPLOYMENT REFERENCES.

       Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 
     1828) is amended by adding at the end the following:
       ``(w) Written Employment References May Contain Suspicions 
     of Involvement in Illegal Activity.--
       ``(1) Authority to disclose information.--Notwithstanding 
     any other provision of law, any insured depository 
     institution, and any director, officer, employee, or agent of 
     such institution, may disclose in any written employment 
     reference relating to a current or former institution-
     affiliated party of such institution which is provided to 
     another insured depository institution in response to a 
     request from such other institution, information concerning 
     the possible involvement of such institution-affiliated party 
     in potentially unlawful activity.
       ``(2) Information not required.--Nothing in paragraph (1) 
     shall be construed, by itself, to create any affirmative duty 
     to include any information described in paragraph (1) in

[[Page 20416]]

     any employment reference referred to in paragraph (1).
       ``(3) Malicious intent.--Notwithstanding any other 
     provision of this subsection, voluntary disclosure made by an 
     insured depository institution, and any director, officer, 
     employee, or agent of such institution under this subsection 
     concerning potentially unlawful activity that is made with 
     malicious intent, shall not be shielded from liability from 
     the person identified in the disclosure.
       ``(4) Definition.--For purposes of this subsection, the 
     term `insured depository institution' includes any uninsured 
     branch or agency of a foreign bank.''.

     SEC. 356. REPORTING OF SUSPICIOUS ACTIVITIES BY SECURITIES 
                   BROKERS AND DEALERS; INVESTMENT COMPANY STUDY.

       (a) Deadline for Suspicious Activity Reporting Requirements 
     for Registered Brokers and Dealers.--The Secretary, after 
     consultation with the Securities and Exchange Commission and 
     the Board of Governors of the Federal Reserve System, shall 
     publish proposed regulations in the Federal Register before 
     January 1, 2002, requiring brokers and dealers registered 
     with the Securities and Exchange Commission under the 
     Securities Exchange Act of 1934 to submit suspicious activity 
     reports under section 5318(g) of title 31, United States 
     Code. Such regulations shall be published in final form not 
     later than July 1, 2002.
       (b) Suspicious Activity Reporting Requirements For Futures 
     Commission Merchants, Commodity Trading Advisors, and 
     Commodity Pool Operators.--The Secretary, in consultation 
     with the Commodity Futures Trading Commission, may prescribe 
     regulations requiring futures commission merchants, commodity 
     trading advisors, and commodity pool operators registered 
     under the Commodity Exchange Act to submit suspicious 
     activity reports under section 5318(g) of title 31, United 
     States Code.
       (c) Report on Investment Companies.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary, the Board of Governors 
     of the Federal Reserve System, and the Securities and 
     Exchange Commission shall jointly submit a report to the 
     Congress on recommendations for effective regulations to 
     apply the requirements of subchapter II of chapter 53 of 
     title 31, United States Code, to investment companies 
     pursuant to section 5312(a)(2)(I) of title 31, United States 
     Code.
       (2) Definition.--For purposes of this subsection, the term 
     ``investment company''--
       (A) has the same meaning as in section 3 of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-3); and
       (B) includes any person that, but for the exceptions 
     provided for in paragraph (1) or (7) of section 3(c) of the 
     Investment Company Act of 1940 (15 U.S.C. 80a-3(c)), would be 
     an investment company.
       (3) Additional recommendations.--The report required by 
     paragraph (1) may make different recommendations for 
     different types of entities covered by this subsection.
       (4) Beneficial ownership of personal holding companies.--
     The report described in paragraph (1) shall also include 
     recommendations as to whether the Secretary should promulgate 
     regulations to treat any corporation or business or other 
     grantor trust whose assets are predominantly securities, bank 
     certificates of deposit, or other securities or investment 
     instruments (other than such as relate to operating 
     subsidiaries of such corporation or trust) and that has 5 or 
     fewer common shareholders or holders of beneficial or other 
     equity interest, as a financial institution within the 
     meaning of that phrase in section 5312(a)(2)(I) and whether 
     to require such corporations or trusts to disclose their 
     beneficial owners when opening accounts or initiating funds 
     transfers at any domestic financial institution.

     SEC. 357. SPECIAL REPORT ON ADMINISTRATION OF BANK SECRECY 
                   PROVISIONS.

       (a) Report Required.--Not later than 6 months after the 
     date of enactment of this Act, the Secretary shall submit a 
     report to the Congress relating to the role of the Internal 
     Revenue Service in the administration of subchapter II of 
     chapter 53 of title 31, United States Code (commonly known as 
     the ``Bank Secrecy Act'').
       (b) Contents.--The report required by subsection (a)--
       (1) shall specifically address, and contain recommendations 
     concerning--
       (A) whether it is advisable to shift the processing of 
     information reporting to the Department of the Treasury under 
     the Bank Secrecy Act provisions to facilities other than 
     those managed by the Internal Revenue Service; and
       (B) whether it remains reasonable and efficient, in light 
     of the objective of both anti-money-laundering programs and 
     Federal tax administration, for the Internal Revenue Service 
     to retain authority and responsibility for audit and 
     examination of the compliance of money services businesses 
     and gaming institutions with those Bank Secrecy Act 
     provisions; and
       (2) shall, if the Secretary determines that the information 
     processing responsibility or the audit and examination 
     responsibility of the Internal Revenue Service, or both, with 
     respect to those Bank Secrecy Act provisions should be 
     transferred to other agencies, include the specific 
     recommendations of the Secretary regarding the agency or 
     agencies to which any such function should be transferred, 
     complete with a budgetary and resources plan for 
     expeditiously accomplishing the transfer.

     SEC. 358. BANK SECRECY PROVISIONS AND ACTIVITIES OF UNITED 
                   STATES INTELLIGENCE AGENCIES TO FIGHT 
                   INTERNATIONAL TERRORISM.

       (a) Amendment Relating to the Purposes of Chapter 53 of 
     Title 31, United States Code.--Section 5311 of title 31, 
     United States Code, is amended by inserting before the period 
     at the end the following: ``, or in the conduct of 
     intelligence or counterintelligence activities, including 
     analysis, to protect against international terrorism''.
       (b) Amendment Relating to Reporting of Suspicious 
     Activities.--Section 5318(g)(4)(B) of title 31, United States 
     Code, is amended by striking ``or supervisory agency'' and 
     inserting ``, supervisory agency, or United States 
     intelligence agency for use in the conduct of intelligence or 
     counterintelligence activities, including analysis, to 
     protect against international terrorism''.
       (c) Amendment Relating to Availability of Reports.--Section 
     5319 of title 31, United States Code, is amended to read as 
     follows:

     ``Sec. 5319. Availability of reports

       ``The Secretary of the Treasury shall make information in a 
     report filed under this subchapter available to an agency, 
     including any State financial institutions supervisory 
     agency, United States intelligence agency or self-regulatory 
     organization registered with the Securities and Exchange 
     Commission or the Commodity Futures Trading Commission, upon 
     request of the head of the agency or organization. The report 
     shall be available for a purpose that is consistent with this 
     subchapter. The Secretary may only require reports on the use 
     of such information by any State financial institutions 
     supervisory agency for other than supervisory purposes or by 
     United States intelligence agencies. However, a report and 
     records of reports are exempt from disclosure under section 
     552 of title 5.''.
       (d) Amendment Relating to the Purposes of the Bank Secrecy 
     Act Provisions.--Section 21(a) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1829b(a)) is amended to read as 
     follows:
       ``(a) Congressional Findings and Declaration of Purpose.--
       ``(1) Findings.--Congress finds that--
       ``(A) adequate records maintained by insured depository 
     institutions have a high degree of usefulness in criminal, 
     tax, and regulatory investigations or proceedings, and that, 
     given the threat posed to the security of the Nation on and 
     after the terrorist attacks against the United States on 
     September 11, 2001, such records may also have a high degree 
     of usefulness in the conduct of intelligence or 
     counterintelligence activities, including analysis, to 
     protect against domestic and international terrorism; and
       ``(B) microfilm or other reproductions and other records 
     made by insured depository institutions of checks, as well as 
     records kept by such institutions, of the identity of persons 
     maintaining or authorized to act with respect to accounts 
     therein, have been of particular value in proceedings 
     described in subparagraph (A).
       ``(2) Purpose.--It is the purpose of this section to 
     require the maintenance of appropriate types of records by 
     insured depository institutions in the United States where 
     such records have a high degree of usefulness in criminal, 
     tax, or regulatory investigations or proceedings, recognizes 
     that, given the threat posed to the security of the Nation on 
     and after the terrorist attacks against the United States on 
     September 11, 2001, such records may also have a high degree 
     of usefulness in the conduct of intelligence or 
     counterintelligence activities, including analysis, to 
     protect against international terrorism.''.
       (e) Amendment Relating to the Purposes of the Bank Secrecy 
     Act.--Section 123(a) of Public Law 91-508 (12 U.S.C. 1953(a)) 
     is amended to read as follows:
       ``(a) Regulations.--If the Secretary determines that the 
     maintenance of appropriate records and procedures by any 
     uninsured bank or uninsured institution, or any person 
     engaging in the business of carrying on in the United States 
     any of the functions referred to in subsection (b), has a 
     high degree of usefulness in criminal, tax, or regulatory 
     investigations or proceedings, and that, given the threat 
     posed to the security of the Nation on and after the 
     terrorist attacks against the United States on September 11, 
     2001, such records may also have a high degree of usefulness 
     in the conduct of intelligence or counterintelligence 
     activities, including analysis, to protect against 
     international terrorism, he may by regulation require such 
     bank, institution, or person.''.
       (f) Amendments to the Right to Financial Privacy Act.--The 
     Right to Financial Privacy Act of 1978 is amended--
       (1) in section 1112(a) (12 U.S.C. 3412(a)), by inserting 
     ``, or intelligence or counterintelligence activity, 
     investigation or analysis related to international 
     terrorism'' after ``legitimate law enforcement inquiry'';
       (2) in section 1114(a)(1) (12 U.S.C. 3414(a)(1))--
       (A) in subparagraph (A), by striking ``or'' at the end;

[[Page 20417]]

       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(C) a Government authority authorized to conduct 
     investigations of, or intelligence or counterintelligence 
     analyses related to, international terrorism for the purpose 
     of conducting such investigations or analyses.''; and
       (3) in section 1120(a)(2) (12 U.S.C. 3420(a)(2)), by 
     inserting ``, or for a purpose authorized by section 
     1112(a)'' before the semicolon at the end.
       (g) Amendment to the Fair Credit Reporting Act.--
       (1) In general.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.) is amended--
       (A) by redesignating the second of the 2 sections 
     designated as section 624 (15 U.S.C. 1681u) (relating to 
     disclosure to FBI for counterintelligence purposes) as 
     section 625; and
       (B) by adding at the end the following new section:

     ``Sec. 626. Disclosures to governmental agencies for 
       counterterrorism purposes

       ``(a) Disclosure.--Notwithstanding section 604 or any other 
     provision of this title, a consumer reporting agency shall 
     furnish a consumer report of a consumer and all other 
     information in a consumer's file to a government agency 
     authorized to conduct investigations of, or intelligence or 
     counterintelligence activities or analysis related to, 
     international terrorism when presented with a written 
     certification by such government agency that such information 
     is necessary for the agency's conduct or such investigation, 
     activity or analysis.
       ``(b)  Form of Certification.--The certification described 
     in subsection (a) shall be signed by a supervisory official 
     designated by the head of a Federal agency or an officer of a 
     Federal agency whose appointment to office is required to be 
     made by the President, by and with the advice and consent of 
     the Senate.
       ``(c) Confidentiality.--No consumer reporting agency, or 
     officer, employee, or agent of such consumer reporting 
     agency, shall disclose to any person, or specify in any 
     consumer report, that a government agency has sought or 
     obtained access to information under subsection (a).
       ``(d) Rule of Construction.--Nothing in section 625 shall 
     be construed to limit the authority of the Director of the 
     Federal Bureau of Investigation under this section.
       ``(e) Safe Harbor.--Notwithstanding any other provision of 
     this title, any consumer reporting agency or agent or 
     employee thereof making disclosure of consumer reports or 
     other information pursuant to this section in good-faith 
     reliance upon a certification of a governmental agency 
     pursuant to the provisions of this section shall not be 
     liable to any person for such disclosure under this 
     subchapter, the constitution of any State, or any law or 
     regulation of any State or any political subdivision of any 
     State.''.
       (2) Clerical amendments.--The table of sections for the 
     Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) is 
     amended--
       (A) by redesignating the second of the 2 items designated 
     as section 624 as section 625; and
       (B) by inserting after the item relating to section 625 (as 
     so redesignated) the following new item:

``626. Disclosures to governmental agencies for counterterrorism 
              purposes.''.

       (h) Application of Amendments.--The amendments made by this 
     section shall apply with respect to reports filed or records 
     maintained on, before, or after the date of enactment of this 
     Act.

     SEC. 359. REPORTING OF SUSPICIOUS ACTIVITIES BY UNDERGROUND 
                   BANKING SYSTEMS.

       (a) Definition for Subchapter.--Section 5312(a)(2)(R) of 
     title 31, United States Code, is amended to read as follows:
       ``(R) a licensed sender of money or any other person who 
     engages as a business in the transmission of funds, including 
     any person who engages as a business in an informal money 
     transfer system or any network of people who engage as a 
     business in facilitating the transfer of money domestically 
     or internationally outside of the conventional financial 
     institutions system;''.
       (b) Money Transmitting Business.--Section 5330(d)(1)(A) of 
     title 31, United States Code, is amended by inserting before 
     the semicolon the following: ``or any other person who 
     engages as a business in the transmission of funds, including 
     any person who engages as a business in an informal money 
     transfer system or any network of people who engage as a 
     business in facilitating the transfer of money domestically 
     or internationally outside of the conventional financial 
     institutions system;''.
       (c) Applicability of Rules.--Section 5318 of title 31, 
     United States Code, as amended by this title, is amended by 
     adding at the end the following:
       ``(l) Applicability of Rules.--Any rules promulgated 
     pursuant to the authority contained in section 21 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1829b) shall apply, 
     in addition to any other financial institution to which such 
     rules apply, to any person that engages as a business in the 
     transmission of funds, including any person who engages as a 
     business in an informal money transfer system or any network 
     of people who engage as a business in facilitating the 
     transfer of money domestically or internationally outside of 
     the conventional financial institutions system.''.
       (d) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of the Treasury shall 
     report to Congress on the need for any additional legislation 
     relating to persons who engage as a business in an informal 
     money transfer system or any network of people who engage as 
     a business in facilitating the transfer of money domestically 
     or internationally outside of the conventional financial 
     institutions system, counter money laundering and regulatory 
     controls relating to underground money movement and banking 
     systems, including whether the threshold for the filing of 
     suspicious activity reports under section 5318(g) of title 
     31, United States Code should be lowered in the case of such 
     systems.

     SEC. 360. USE OF AUTHORITY OF UNITED STATES EXECUTIVE 
                   DIRECTORS.

       (a) Action by the President.--If the President determines 
     that a particular foreign country has taken or has committed 
     to take actions that contribute to efforts of the United 
     States to respond to, deter, or prevent acts of international 
     terrorism, the Secretary may, consistent with other 
     applicable provisions of law, instruct the United States 
     Executive Director of each international financial 
     institution to use the voice and vote of the Executive 
     Director to support any loan or other utilization of the 
     funds of respective institutions for such country, or any 
     public or private entity within such country.
       (b) Use of Voice and Vote.--The Secretary may instruct the 
     United States Executive Director of each international 
     financial institution to aggressively use the voice and vote 
     of the Executive Director to require an auditing of 
     disbursements at such institutions to ensure that no funds 
     are paid to persons who commit, threaten to commit, or 
     support terrorism.
       (c) Definition.--For purposes of this section, the term 
     ``international financial institution'' means an institution 
     described in section 1701(c)(2) of the International 
     Financial Institutions Act (22 U.S.C. 262r(c)(2)).

     SEC. 361. FINANCIAL CRIMES ENFORCEMENT NETWORK.

       (a) In General.--Subchapter I of chapter 3 of title 31, 
     United States Code, is amended--
       (1) by redesignating section 310 as section 311; and
       (2) by inserting after section 309 the following new 
     section:

     ``Sec. 310. Financial Crimes Enforcement Network

       ``(a) In General.--The Financial Crimes Enforcement Network 
     established by order of the Secretary of the Treasury 
     (Treasury Order Numbered 105-08, in this section referred to 
     as `FinCEN') on April 25, 1990, shall be a bureau in the 
     Department of the Treasury.
       ``(b) Director.--
       ``(1) Appointment.--The head of FinCEN shall be the 
     Director, who shall be appointed by the Secretary of the 
     Treasury.
       ``(2) Duties and powers.--The duties and powers of the 
     Director are as follows:
       ``(A) Advise and make recommendations on matters relating 
     to financial intelligence, financial criminal activities, and 
     other financial activities to the Under Secretary of the 
     Treasury for Enforcement.
       ``(B) Maintain a government-wide data access service, with 
     access, in accordance with applicable legal requirements, to 
     the following:
       ``(i) Information collected by the Department of the 
     Treasury, including report information filed under subchapter 
     II of chapter 53 of this title (such as reports on cash 
     transactions, foreign financial agency transactions and 
     relationships, foreign currency transactions, exporting and 
     importing monetary instruments, and suspicious activities), 
     chapter 2 of title I of Public Law 91-508, and section 21 of 
     the Federal Deposit Insurance Act.
       ``(ii) Information regarding national and international 
     currency flows.
       ``(iii) Other records and data maintained by other Federal, 
     State, local, and foreign agencies, including financial and 
     other records developed in specific cases.
       ``(iv) Other privately and publicly available information.
       ``(C) Analyze and disseminate the available data in 
     accordance with applicable legal requirements and policies 
     and guidelines established by the Secretary of the Treasury 
     and the Under Secretary of the Treasury for Enforcement to--
       ``(i) identify possible criminal activity to appropriate 
     Federal, State, local, and foreign law enforcement agencies;
       ``(ii) support ongoing criminal financial investigations 
     and prosecutions and related proceedings, including civil and 
     criminal tax and forfeiture proceedings;
       ``(iii) identify possible instances of noncompliance with 
     subchapter II of chapter 53 of this title, chapter 2 of title 
     I of Public Law 91-508, and section 21 of the Federal Deposit 
     Insurance Act to Federal agencies with statutory 
     responsibility for enforcing compliance with such provisions 
     and other appropriate Federal regulatory agencies;

[[Page 20418]]

       ``(iv) evaluate and recommend possible uses of special 
     currency reporting requirements under section 5326;
       ``(v) determine emerging trends and methods in money 
     laundering and other financial crimes;
       ``(vi) support the conduct of intelligence or 
     counterintelligence activities, including analysis, to 
     protect against international terrorism; and
       ``(vii) support government initiatives against money 
     laundering.
       ``(D) Establish and maintain a financial crimes 
     communications center to furnish law enforcement authorities 
     with intelligence information related to emerging or ongoing 
     investigations and undercover operations.
       ``(E) Furnish research, analytical, and informational 
     services to financial institutions, appropriate Federal 
     regulatory agencies with regard to financial institutions, 
     and appropriate Federal, State, local, and foreign law 
     enforcement authorities, in accordance with policies and 
     guidelines established by the Secretary of the Treasury or 
     the Under Secretary of the Treasury for Enforcement, in the 
     interest of detection, prevention, and prosecution of 
     terrorism, organized crime, money laundering, and other 
     financial crimes.
       ``(F) Assist Federal, State, local, and foreign law 
     enforcement and regulatory authorities in combatting the use 
     of informal, nonbank networks and payment and barter system 
     mechanisms that permit the transfer of funds or the 
     equivalent of funds without records and without compliance 
     with criminal and tax laws.
       ``(G) Provide computer and data support and data analysis 
     to the Secretary of the Treasury for tracking and controlling 
     foreign assets.
       ``(H) Coordinate with financial intelligence units in other 
     countries on anti-terrorism and anti-money laundering 
     initiatives, and similar efforts.
       ``(I) Administer the requirements of subchapter II of 
     chapter 53 of this title, chapter 2 of title I of Public Law 
     91-508, and section 21 of the Federal Deposit Insurance Act, 
     to the extent delegated such authority by the Secretary of 
     the Treasury.
       ``(J) Such other duties and powers as the Secretary of the 
     Treasury may delegate or prescribe.
       ``(c) Requirements Relating to Maintenance and Use of Data 
     Banks.--The Secretary of the Treasury shall establish and 
     maintain operating procedures with respect to the government-
     wide data access service and the financial crimes 
     communications center maintained by FinCEN which provide--
       ``(1) for the coordinated and efficient transmittal of 
     information to, entry of information into, and withdrawal of 
     information from, the data maintenance system maintained by 
     the Network, including--
       ``(A) the submission of reports through the Internet or 
     other secure network, whenever possible;
       ``(B) the cataloguing of information in a manner that 
     facilitates rapid retrieval by law enforcement personnel of 
     meaningful data; and
       ``(C) a procedure that provides for a prompt initial review 
     of suspicious activity reports and other reports, or such 
     other means as the Secretary may provide, to identify 
     information that warrants immediate action; and
       ``(2) in accordance with section 552a of title 5 and the 
     Right to Financial Privacy Act of 1978, appropriate standards 
     and guidelines for determining--
       ``(A) who is to be given access to the information 
     maintained by the Network;
       ``(B) what limits are to be imposed on the use of such 
     information; and
       ``(C) how information about activities or relationships 
     which involve or are closely associated with the exercise of 
     constitutional rights is to be screened out of the data 
     maintenance system.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated for FinCEN such sums as may be 
     necessary for fiscal years 2002, 2003, 2004, and 2005.''.
       (b) Compliance With Reporting Requirements.--The Secretary 
     of the Treasury shall study methods for improving compliance 
     with the reporting requirements established in section 5314 
     of title 31, United States Code, and shall submit a report on 
     such study to the Congress by the end of the 6-month period 
     beginning on the date of enactment of this Act and each 1-
     year period thereafter. The initial report shall include 
     historical data on compliance with such reporting 
     requirements.
       (c) Clerical Amendment.--The table of sections for 
     subchapter I of chapter 3 of title 31, United States Code, is 
     amended--
       (1) by redesignating the item relating to section 310 as 
     section 311; and
       (2) by inserting after the item relating to section 309 the 
     following new item:

``310. Financial Crimes Enforcement Network.''.

     SEC. 362. ESTABLISHMENT OF HIGHLY SECURE NETWORK.

       (a) In General.--The Secretary shall establish a highly 
     secure network in the Financial Crimes Enforcement Network 
     that--
       (1) allows financial institutions to file reports required 
     under subchapter II or III of chapter 53 of title 31, United 
     States Code, chapter 2 of Public Law 91-508, or section 21 of 
     the Federal Deposit Insurance Act through the secure network; 
     and
       (2) provides financial institutions with alerts and other 
     information regarding suspicious activities that warrant 
     immediate and enhanced scrutiny.
       (b) Expedited Development.--The Secretary shall take such 
     action as may be necessary to ensure that the secure network 
     required under subsection (a) is fully operational before the 
     end of the 9-month period beginning on the date of enactment 
     of this Act.

     SEC. 363. INCREASE IN CIVIL AND CRIMINAL PENALTIES FOR MONEY 
                   LAUNDERING.

       (a) Civil Penalties.--Section 5321(a) of title 31, United 
     States Code, is amended by adding at the end the following:
       ``(7) Penalties for international counter money laundering 
     violations.--The Secretary may impose a civil money penalty 
     in an amount equal to not less than 2 times the amount of the 
     transaction, but not more than $1,000,000, on any financial 
     institution or agency that violates any provision of 
     subsection (i) or (j) of section 5318 or any special measures 
     imposed under section 5318A.''.
       (b) Criminal Penalties.--Section 5322 of title 31, United 
     States Code, is amended by adding at the end the following:
       ``(d) A financial institution or agency that violates any 
     provision of subsection (i) or (j) of section 5318, or any 
     special measures imposed under section 5318A, or any 
     regulation prescribed under subsection (i) or (j) of section 
     5318 or section 5318A, shall be fined in an amount equal to 
     not less than 2 times the amount of the transaction, but not 
     more than $1,000,000.''.

     SEC. 364. UNIFORM PROTECTION AUTHORITY FOR FEDERAL RESERVE 
                   FACILITIES.

       Section 11 of the Federal Reserve Act (12 U.S.C. 248) is 
     amended by adding at the end the following:
       ``(q) Uniform Protection Authority for Federal Reserve 
     Facilities.--
       ``(1) Notwithstanding any other provision of law, to 
     authorize personnel to act as law enforcement officers to 
     protect and safeguard the premises, grounds, property, 
     personnel, including members of the Board, of the Board, or 
     any Federal reserve bank, and operations conducted by or on 
     behalf of the Board or a reserve bank.
       ``(2) The Board may, subject to the regulations prescribed 
     under paragraph (5), delegate authority to a Federal reserve 
     bank to authorize personnel to act as law enforcement 
     officers to protect and safeguard the bank's premises, 
     grounds, property, personnel, and operations conducted by or 
     on behalf of the bank.
       ``(3) Law enforcement officers designated or authorized by 
     the Board or a reserve bank under paragraph (1) or (2) are 
     authorized while on duty to carry firearms and make arrests 
     without warrants for any offense against the United States 
     committed in their presence, or for any felony cognizable 
     under the laws of the United States committed or being 
     committed within the buildings and grounds of the Board or a 
     reserve bank if they have reasonable grounds to believe that 
     the person to be arrested has committed or is committing such 
     a felony. Such officers shall have access to law enforcement 
     information that may be necessary for the protection of the 
     property or personnel of the Board or a reserve bank.
       ``(4) For purposes of this subsection, the term `law 
     enforcement officers' means personnel who have successfully 
     completed law enforcement training and are authorized to 
     carry firearms and make arrests pursuant to this subsection.
       ``(5) The law enforcement authorities provided for in this 
     subsection may be exercised only pursuant to regulations 
     prescribed by the Board and approved by the Attorney 
     General.''.

     SEC. 365. REPORTS RELATING TO COINS AND CURRENCY RECEIVED IN 
                   NONFINANCIAL TRADE OR BUSINESS.

       (a) Reports Required.--Subchapter II of chapter 53 of title 
     31, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 5331. Reports relating to coins and currency received 
       in nonfinancial trade or business

       ``(a) Coin and Currency Receipts of More Than $10,000.--Any 
     person--
       ``(1) who is engaged in a trade or business; and
       ``(2) who, in the course of such trade or business, 
     receives more than $10,000 in coins or currency in 1 
     transaction (or 2 or more related transactions),

     shall file a report described in subsection (b) with respect 
     to such transaction (or related transactions) with the 
     Financial Crimes Enforcement Network at such time and in such 
     manner as the Secretary may, by regulation, prescribe.
       ``(b) Form and Manner of Reports.--A report is described in 
     this subsection if such report--
       ``(1) is in such form as the Secretary may prescribe;
       ``(2) contains--
       ``(A) the name and address, and such other identification 
     information as the Secretary may require, of the person from 
     whom the coins or currency was received;

[[Page 20419]]

       ``(B) the amount of coins or currency received;
       ``(C) the date and nature of the transaction; and
       ``(D) such other information, including the identification 
     of the person filing the report, as the Secretary may 
     prescribe.
       ``(c) Exceptions.--
       ``(1) Amounts received by financial institutions.--
     Subsection (a) shall not apply to amounts received in a 
     transaction reported under section 5313 and regulations 
     prescribed under such section.
       ``(2) Transactions occurring outside the united states.--
     Except to the extent provided in regulations prescribed by 
     the Secretary, subsection (a) shall not apply to any 
     transaction if the entire transaction occurs outside the 
     United States.
       ``(d) Currency Includes Foreign Currency and Certain 
     Monetary Instruments.--
       ``(1) In general.--For purposes of this section, the term 
     `currency' includes--
       ``(A) foreign currency; and
       ``(B) to the extent provided in regulations prescribed by 
     the Secretary, any monetary instrument (whether or not in 
     bearer form) with a face amount of not more than $10,000.
       ``(2) Scope of application.--Paragraph (1)(B) shall not 
     apply to any check drawn on the account of the writer in a 
     financial institution referred to in subparagraph (A), (B), 
     (C), (D), (E), (F), (G), (J), (K), (R), or (S) of section 
     5312(a)(2).''.
       (b) Prohibition on Structuring Transactions.--
       (1) In general.--Section 5324 of title 31, United States 
     Code, is amended--
       (A) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (B) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Domestic Coin and Currency Transactions Involving 
     Nonfinancial Trades or Businesses.--No person shall, for the 
     purpose of evading the report requirements of section 5333 or 
     any regulation prescribed under such section--
       ``(1) cause or attempt to cause a nonfinancial trade or 
     business to fail to file a report required under section 5333 
     or any regulation prescribed under such section;
       ``(2) cause or attempt to cause a nonfinancial trade or 
     business to file a report required under section 5333 or any 
     regulation prescribed under such section that contains a 
     material omission or misstatement of fact; or
       ``(3) structure or assist in structuring, or attempt to 
     structure or assist in structuring, any transaction with 1 or 
     more nonfinancial trades or businesses.'.
       (2) Technical and conforming amendments.--
       (A) The heading for subsection (a) of section 5324 of title 
     31, United States Code, is amended by inserting ``Involving 
     Financial Institutions'' after ``Transactions'.
       (B) Section 5317(c) of title 31, United States Code, is 
     amended by striking ``5324(b)'' and inserting ``5324(c)''.
       (c) Definition of Nonfinancial Trade or Business.--
       (1) In general.--Section 5312(a) of title 31, United States 
     Code, is amended--
       (A) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (B) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Nonfinancial trade or business.--The term 
     `nonfinancial trade or business' means any trade or business 
     other than a financial institution that is subject to the 
     reporting requirements of section 5313 and regulations 
     prescribed under such section.''.
       (2) Technical and conforming amendments.--
       (A) Section 5312(a)(3)(C) of title 31, United States Code, 
     is amended by striking ``section 5316,'' and inserting 
     ``sections 5333 and 5316,''.
       (B) Subsections (a) through (f) of section 5318 of title 
     31, United States Code, and sections 5321, 5326, and 5328 of 
     such title are each amended--
       (i) by inserting ``or nonfinancial trade or business'' 
     after ``financial institution'' each place such term appears; 
     and
       (ii) by inserting ``or nonfinancial trades or businesses'' 
     after ``financial institutions'' each place such term 
     appears.
       (c) Clerical Amendment.--The table of sections for chapter 
     53 of title 31, United States Code, is amended by inserting 
     after the item relating to section 5332 (as added by section 
     112 of this title) the following new item:

``5331. Reports relating to coins and currency received in nonfinancial 
              trade or business.''.

       (f) Regulations.--Regulations which the Secretary 
     determines are necessary to implement this section shall be 
     published in final form before the end of the 6-month period 
     beginning on the date of enactment of this Act.

     SEC. 366. EFFICIENT USE OF CURRENCY TRANSACTION REPORT 
                   SYSTEM.

       (a) Findings.--The Congress finds the following:
       (1) The Congress established the currency transaction 
     reporting requirements in 1970 because the Congress found 
     then that such reports have a high degree of usefulness in 
     criminal, tax, and regulatory investigations and proceedings 
     and the usefulness of such reports has only increased in the 
     years since the requirements were established.
       (2) In 1994, in response to reports and testimony that 
     excess amounts of currency transaction reports were 
     interfering with effective law enforcement, the Congress 
     reformed the currency transaction report exemption 
     requirements to provide--
       (A) mandatory exemptions for certain reports that had 
     little usefulness for law enforcement, such as cash transfers 
     between depository institutions and cash deposits from 
     government agencies; and
       (B) discretionary authority for the Secretary of the 
     Treasury to provide exemptions, subject to criteria and 
     guidelines established by the Secretary, for financial 
     institutions with regard to regular business customers that 
     maintain accounts at an institution into which frequent cash 
     deposits are made.
       (3) Today there is evidence that some financial 
     institutions are not utilizing the exemption system, or are 
     filing reports even if there is an exemption in effect, with 
     the result that the volume of currency transaction reports is 
     once again interfering with effective law enforcement.
       (b) Study and Report.--
       (1) Study required.--The Secretary shall conduct a study 
     of--
       (A) the possible expansion of the statutory exemption 
     system in effect under section 5313 of title 31, United 
     States Code; and
       (B) methods for improving financial institution utilization 
     of the statutory exemption provisions as a way of reducing 
     the submission of currency transaction reports that have 
     little or no value for law enforcement purposes, including 
     improvements in the systems in effect at financial 
     institutions for regular review of the exemption procedures 
     used at the institution and the training of personnel in its 
     effective use.
       (2) Report required.--The Secretary of the Treasury shall 
     submit a report to the Congress before the end of the 1-year 
     period beginning on the date of enactment of this Act 
     containing the findings and conclusions of the Secretary with 
     regard to the study required under subsection (a), and such 
     recommendations for legislative or administrative action as 
     the Secretary determines to be appropriate.

               Subtitle C--Currency Crimes and Protection

     SEC. 371. BULK CASH SMUGGLING INTO OR OUT OF THE UNITED 
                   STATES.

       (a) Findings.--The Congress finds the following:
       (1) Effective enforcement of the currency reporting 
     requirements of subchapter II of chapter 53 of title 31, 
     United States Code, and the regulations prescribed under such 
     subchapter, has forced drug dealers and other criminals 
     engaged in cash-based businesses to avoid using traditional 
     financial institutions.
       (2) In their effort to avoid using traditional financial 
     institutions, drug dealers and other criminals are forced to 
     move large quantities of currency in bulk form to and through 
     the airports, border crossings, and other ports of entry 
     where the currency can be smuggled out of the United States 
     and placed in a foreign financial institution or sold on the 
     black market.
       (3) The transportation and smuggling of cash in bulk form 
     may now be the most common form of money laundering, and the 
     movement of large sums of cash is one of the most reliable 
     warning signs of drug trafficking, terrorism, money 
     laundering, racketeering, tax evasion and similar crimes.
       (4) The intentional transportation into or out of the 
     United States of large amounts of currency or monetary 
     instruments, in a manner designed to circumvent the mandatory 
     reporting provisions of subchapter II of chapter 53 of title 
     31, United States Code,, is the equivalent of, and creates 
     the same harm as, the smuggling of goods.
       (5) The arrest and prosecution of bulk cash smugglers are 
     important parts of law enforcement's effort to stop the 
     laundering of criminal proceeds, but the couriers who attempt 
     to smuggle the cash out of the United States are typically 
     low-level employees of large criminal organizations, and thus 
     are easily replaced. Accordingly, only the confiscation of 
     the smuggled bulk cash can effectively break the cycle of 
     criminal activity of which the laundering of the bulk cash is 
     a critical part.
       (6) The current penalties for violations of the currency 
     reporting requirements are insufficient to provide a 
     deterrent to the laundering of criminal proceeds. In 
     particular, in cases where the only criminal violation under 
     current law is a reporting offense, the law does not 
     adequately provide for the confiscation of smuggled currency. 
     In contrast, if the smuggling of bulk cash were itself an 
     offense, the cash could be confiscated as the corpus delicti 
     of the smuggling offense.
       (b) Purposes.--The purposes of this section are--
       (1) to make the act of smuggling bulk cash itself a 
     criminal offense;
       (2) to authorize forfeiture of any cash or instruments of 
     the smuggling offense; and
       (3) to emphasize the seriousness of the act of bulk cash 
     smuggling.
       (c) Enactment of Bulk Cash Smuggling Offense.--Subchapter 
     II of chapter 53 of title 31, United States Code, is amended 
     by adding at the end the following:

[[Page 20420]]



     ``Sec. 5332. Bulk cash smuggling into or out of the United 
       States

       ``(a) Criminal Offense.--
       ``(1) In general.--Whoever, with the intent to evade a 
     currency reporting requirement under section 5316, knowingly 
     conceals more than $10,000 in currency or other monetary 
     instruments on the person of such individual or in any 
     conveyance, article of luggage, merchandise, or other 
     container, and transports or transfers or attempts to 
     transport or transfer such currency or monetary instruments 
     from a place within the United States to a place outside of 
     the United States, or from a place outside the United States 
     to a place within the United States, shall be guilty of a 
     currency smuggling offense and subject to punishment pursuant 
     to subsection (b).
       ``(2) Concealment on person.--For purposes of this section, 
     the concealment of currency on the person of any individual 
     includes concealment in any article of clothing worn by the 
     individual or in any luggage, backpack, or other container 
     worn or carried by such individual.
       ``(b) Penalty.--
       ``(1) Term of imprisonment.--A person convicted of a 
     currency smuggling offense under subsection (a), or a 
     conspiracy to commit such offense, shall be imprisoned for 
     not more than 5 years.
       ``(2) Forfeiture.--In addition, the court, in imposing 
     sentence under paragraph (1), shall order that the defendant 
     forfeit to the United States, any property, real or personal, 
     involved in the offense, and any property traceable to such 
     property, subject to subsection (d) of this section.
       ``(3) Procedure.--The seizure, restraint, and forfeiture of 
     property under this section shall be governed by section 413 
     of the Controlled Substances Act.
       ``(4) Personal money judgment.--If the property subject to 
     forfeiture under paragraph (2) is unavailable, and the 
     defendant has insufficient substitute property that may be 
     forfeited pursuant to section 413(p) of the Controlled 
     Substances Act, the court shall enter a personal money 
     judgment against the defendant for the amount that would be 
     subject to forfeiture.
       ``(c) Civil Forfeiture.--
       ``(1) In general.--Any property involved in a violation of 
     subsection (a), or a conspiracy to commit such violation, and 
     any property traceable to such violation or conspiracy, may 
     be seized and, subject to subsection (d) of this section, 
     forfeited to the United States.
       ``(2) Procedure.--The seizure and forfeiture shall be 
     governed by the procedures governing civil forfeitures in 
     money laundering cases pursuant to section 981(a)(1)(A) of 
     title 18, United States Code.
       ``(3) Treatment of certain property as involved in the 
     offense.--For purposes of this subsection and subsection (b), 
     any currency or other monetary instrument that is concealed 
     or intended to be concealed in violation of subsection (a) or 
     a conspiracy to commit such violation, any article, 
     container, or conveyance used, or intended to be used, to 
     conceal or transport the currency or other monetary 
     instrument, and any other property used, or intended to be 
     used, to facilitate the offense, shall be considered property 
     involved in the offense.''.
       (c) Clerical Amendment.--The table of sections for 
     subchapter II of chapter 53 of title 31, United States Code, 
     is amended by inserting after the item relating to section 
     5331, as added by this Act, the following new item:

``5332. Bulk cash smuggling into or out of the United States.''.

     SEC. 372. FORFEITURE IN CURRENCY REPORTING CASES.

       (a) In General.--Subsection (c) of section 5317 of title 
     31, United States Code, is amended to read as follows:
       ``(c) Forfeiture.--
       ``(1) Criminal forfeiture.--
       ``(A) In general.--The court in imposing sentence for any 
     violation of section 5313, 5316, or 5324 of this title, or 
     any conspiracy to commit such violation, shall order the 
     defendant to forfeit all property, real or personal, involved 
     in the offense and any property traceable thereto.
       ``(B) Procedure.--Forfeitures under this paragraph shall be 
     governed by the procedures established in section 413 of the 
     Controlled Substances Act.
       ``(2) Civil forfeiture.--Any property involved in a 
     violation of section 5313, 5316, or 5324 of this title, or 
     any conspiracy to commit any such violation, and any property 
     traceable to any such violation or conspiracy, may be seized 
     and forfeited to the United States in accordance with the 
     procedures governing civil forfeitures in money laundering 
     cases pursuant to section 981(a)(1)(A) of title 18, United 
     States Code.''.
       (b) Conforming Amendments.--
       (1) Section 981(a)(1)(A) of title 18, United States Code, 
     is amended--
       (A) by striking ``of section 5313(a) or 5324(a) of title 
     31, or''; and
       (B) by striking ``However'' and all that follows through 
     the end of the subparagraph.
       (2) Section 982(a)(1) of title 18, United States Code, is 
     amended--
       (A) by striking ``of section 5313(a), 5316, or 5324 of 
     title 31, or''; and
       (B) by striking ``However'' and all that follows through 
     the end of the paragraph.

     SEC. 373. ILLEGAL MONEY TRANSMITTING BUSINESSES.

       (a) Scienter Requirement for Section 1960 Violation.--
     Section 1960 of title 18, United States Code, is amended to 
     read as follows:

     ``Sec. 1960. Prohibition of unlicensed money transmitting 
       businesses

       ``(a) Whoever knowingly conducts, controls, manages, 
     supervises, directs, or owns all or part of an unlicensed 
     money transmitting business, shall be fined in accordance 
     with this title or imprisoned not more than 5 years, or both.
       ``(b) As used in this section--
       ``(1) the term `unlicensed money transmitting business' 
     means a money transmitting business which affects interstate 
     or foreign commerce in any manner or degree and--
       ``(A) is operated without an appropriate money transmitting 
     license in a State where such operation is punishable as a 
     misdemeanor or a felony under State law, whether or not the 
     defendant knew that the operation was required to be licensed 
     or that the operation was so punishable;
       ``(B) fails to comply with the money transmitting business 
     registration requirements under section 5330 of title 31, 
     United States Code, or regulations prescribed under such 
     section; or
       ``(C) otherwise involves the transportation or transmission 
     of funds that are known to the defendant to have been derived 
     from a criminal offense or are intended to be used to be used 
     to promote or support unlawful activity;
       ``(2) the term `money transmitting' includes transferring 
     funds on behalf of the public by any and all means including 
     but not limited to transfers within this country or to 
     locations abroad by wire, check, draft, facsimile, or 
     courier; and
       ``(3) the term `State' means any State of the United 
     States, the District of Columbia, the Northern Mariana 
     Islands, and any commonwealth, territory, or possession of 
     the United States.''.
       (b) Seizure of Illegally Transmitted Funds.--Section 
     981(a)(1)(A) of title 18, United States Code, is amended by 
     striking ``or 1957'' and inserting ``, 1957 or 1960''.
       (c) Clerical Amendment.--The table of sections for chapter 
     95 of title 18, United States Code, is amended in the item 
     relating to section 1960 by striking ``illegal'' and 
     inserting ``unlicensed''.

     SEC. 374. COUNTERFEITING DOMESTIC CURRENCY AND OBLIGATIONS.

       (a) Counterfeit Acts Committed Outside the United States.--
     Section 470 of title 18, United States Code, is amended--
       (1) in paragraph (2), by inserting ``analog, digital, or 
     electronic image,'' after ``plate, stone,''; and
       (2) by striking ``shall be fined under this title, 
     imprisoned not more than 20 years, or both'' and inserting 
     ``shall be punished as is provided for the like offense 
     within the United States''.
       (b) Obligations or securities of the United States.--
     Section 471 of title 18, United States Code, is amended by 
     striking ``fifteen years'' and inserting ``20 years''.
       (c) Uttering Counterfeit Obligations or Securities.--
     Section 472 of title 18, United States Code, is amended by 
     striking ``fifteen years'' and inserting ``20 years''.
       (d) Dealing in Counterfeit Obligations or Securities.--
     Section 473 of title 18, United States Code, is amended by 
     striking ``ten years'' and inserting ``20 years''.
       (e) Plates, Stones, or Analog, Digital, or Electronic 
     Images For Counterfeiting Obligations or Securities.--
       (1) In general.--Section 474(a) of title 18, United States 
     Code, is amended by inserting after the second paragraph the 
     following new paragraph:
       ``Whoever, with intent to defraud, makes, executes, 
     acquires, scans, captures, records, receives, transmits, 
     reproduces, sells, or has in such person's control, custody, 
     or possession, an analog, digital, or electronic image of any 
     obligation or other security of the United States; or''.
       (2) Amendment to definition.--Section 474(b) of title 18, 
     United States Code, is amended by striking the first sentence 
     and inserting the following new sentence: ``For purposes of 
     this section, the term `analog, digital, or electronic image' 
     includes any analog, digital, or electronic method used for 
     the making, execution, acquisition, scanning, capturing, 
     recording, retrieval, transmission, or reproduction of any 
     obligation or security, unless such use is authorized by the 
     Secretary of the Treasury.''.
       (3) Technical and conforming amendment.--The heading for 
     section 474 of title 18, United States Code, is amended by 
     striking ``or stones'' and inserting ``, stones, or analog, 
     digital, or electronic images''.
       (4) Clerical amendment.--The table of sections for chapter 
     25 of title 18, United States Code, is amended in the item 
     relating to section 474 by striking ``or stones'' and 
     inserting ``, stones, or analog, digital, or electronic 
     images''.
       (f) Taking Impressions of Tools Used for Obligations or 
     Securities.--Section 476 of title 18, United States Code, is 
     amended--
       (1) by inserting ``analog, digital, or electronic image,'' 
     after ``impression, stamp,''; and

[[Page 20421]]

       (2) by striking ``ten years'' and inserting ``25 years''.
       (g) Possessing or Selling Impressions of Tools Used for 
     Obligations or Securities.--Section 477 of title 18, United 
     States Code, is amended--
       (1) in the first paragraph, by inserting ``analog, digital, 
     or electronic image,'' after ``imprint, stamp,'';
       (2) in the second paragraph, by inserting ``analog, 
     digital, or electronic image,'' after ``imprint, stamp,''; 
     and
       (3) in the third paragraph, by striking ``ten years'' and 
     inserting ``25 years''.
       (h) Connecting Parts of Different Notes.--Section 484 of 
     title 18, United States Code, is amended by striking ``five 
     years'' and inserting ``10 years''.
       (i) Bonds and Obligations of Certain Lending Agencies.--The 
     first and second paragraphs of section 493 of title 18, 
     United States Code, are each amended by striking ``five 
     years'' and inserting ``10 years''.

     SEC. 375. COUNTERFEITING FOREIGN CURRENCY AND OBLIGATIONS.

       (a) Foreign Obligations or Securities.--Section 478 of 
     title 18, United States Code, is amended by striking ``five 
     years'' and inserting ``20 years''.
       (b) Uttering Counterfeit Foreign Obligations or 
     Securities.--Section 479 of title 18, United States Code, is 
     amended by striking ``three years'' and inserting ``20 
     years''.
       (c) Possessing Counterfeit Foreign Obligations or 
     Securities.--Section 480 of title 18, United States Code, is 
     amended by striking ``one year'' and inserting ``20 years''.
       (d) Plates, Stones, or Analog, Digital, or Electronic 
     Images for Counterfeiting Foreign Obligations or 
     Securities.--
       (1) In general.--Section 481 of title 18, United States 
     Code, is amended by inserting after the second paragraph the 
     following new paragraph:
       ``Whoever, with intent to defraud, makes, executes, 
     acquires, scans, captures, records, receives, transmits, 
     reproduces, sells, or has in such person's control, custody, 
     or possession, an analog, digital, or electronic image of any 
     bond, certificate, obligation, or other security of any 
     foreign government, or of any treasury note, bill, or promise 
     to pay, lawfully issued by such foreign government and 
     intended to circulate as money; or''.
       (2) Increased sentence.--The last paragraph of section 481 
     of title 18, United States Code, is amended by striking 
     ``five years'' and inserting ``25 years''.
       (3) Technical and conforming amendment.--The heading for 
     section 481 of title 18, United States Code, is amended by 
     striking ``or stones'' and inserting ``, stones, or analog, 
     digital, or electronic images''.
       (4) Clerical amendment.--The table of sections for chapter 
     25 of title 18, United States Code, is amended in the item 
     relating to section 481 by striking ``or stones'' and 
     inserting ``, stones, or analog, digital, or electronic 
     images''.
       (e) Foreign Bank Notes.--Section 482 of title 18, United 
     States Code, is amended by striking ``two years'' and 
     inserting ``20 years''.
       (f) Uttering Counterfeit Foreign Bank Notes.--Section 483 
     of title 18, United States Code, is amended by striking ``one 
     year'' and inserting ``20 years''.

     SEC. 376. LAUNDERING THE PROCEEDS OF TERRORISM.

       Section 1956(c)(7)(D) of title 18, United States Code, is 
     amended by inserting ``or 2339B'' after ``2339A''.

     SEC. 377. EXTRATERRITORIAL JURISDICTION.

       Section 1029 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(h) Any person who, outside the jurisdiction of the 
     United States, engages in any act that, if committed within 
     the jurisdiction of the United States, would constitute an 
     offense under subsection (a) or (b) of this section, shall be 
     subject to the fines, penalties, imprisonment, and forfeiture 
     provided in this title if--
       ``(1) the offense involves an access device issued, owned, 
     managed, or controlled by a financial institution, account 
     issuer, credit card system member, or other entity within the 
     jurisdiction of the United States; and
       ``(2) the person transports, delivers, conveys, transfers 
     to or through, or otherwise stores, secrets, or holds within 
     the jurisdiction of the United States, any article used to 
     assist in the commission of the offense or the proceeds of 
     such offense or property derived therefrom.''.

                    TITLE IV--PROTECTING THE BORDER

               Subtitle A--Protecting the Northern Border

     SEC. 401. ENSURING ADEQUATE PERSONNEL ON THE NORTHERN BORDER.

       The Attorney General is authorized to waive any FTE cap on 
     personnel assigned to the Immigration and Naturalization 
     Service on the Northern border.

     SEC. 402. NORTHERN BORDER PERSONNEL.

       There are authorized to be appropriated--
       (1) such sums as may be necessary to triple the number of 
     Border Patrol personnel (from the number authorized under 
     current law), and the necessary personnel and facilities to 
     support such personnel, in each State along the Northern 
     Border;
       (2) such sums as may be necessary to triple the number of 
     Customs Service personnel (from the number authorized under 
     current law), and the necessary personnel and facilities to 
     support such personnel, at ports of entry in each State along 
     the Northern Border;
       (3) such sums as may be necessary to triple the number of 
     INS inspectors (from the number authorized on the date of the 
     enactment of this Act), and the necessary personnel and 
     facilities to support such personnel, at ports of entry in 
     each State along the Northern Border; and
       (4) an additional $50,000,000 each to the Immigration and 
     Naturalization Service and the United States Customs Service 
     for purposes of making improvements in technology for 
     monitoring the Northern Border and acquiring additional 
     equipment at the Northern Border.

     SEC. 403. ACCESS BY THE DEPARTMENT OF STATE AND THE INS TO 
                   CERTAIN IDENTIFYING INFORMATION IN THE CRIMINAL 
                   HISTORY RECORDS OF VISA APPLICANTS AND 
                   APPLICANTS FOR ADMISSION TO THE UNITED STATES.

       (a) Amendment of the Immigration and Nationality Act.--
     Section 105 of the Immigration and Nationality Act (8 U.S.C. 
     1105) is amended--
       (1) in the section heading, by inserting ``; data 
     exchange'' after ``security officers'';
       (2) by inserting ``(a)'' after ``Sec. 105.'';
       (3) in subsection (a), by inserting ``and border'' after 
     ``internal'' the second place it appears; and
       (4) by adding at the end the following:
       ``(b)(1) The Attorney General and the Director of the 
     Federal Bureau of Investigation shall provide the Department 
     of State and the Service access to the criminal history 
     record information contained in the National Crime 
     Information Center's Interstate Identification Index (NCIC-
     III), Wanted Persons File, and to any other files maintained 
     by the National Crime Information Center that may be mutually 
     agreed upon by the Attorney General and the agency receiving 
     the access, for the purpose of determining whether or not a 
     visa applicant or applicant for admission has a criminal 
     history record indexed in any such file.
       ``(2) Such access shall be provided by means of extracts of 
     the records for placement in the automated visa lookout or 
     other appropriate database, and shall be provided without any 
     fee or charge.
       ``(3) The Federal Bureau of Investigation shall provide 
     periodic updates of the extracts at intervals mutually agreed 
     upon with the agency receiving the access. Upon receipt of 
     such updated extracts, the receiving agency shall make 
     corresponding updates to its database and destroy previously 
     provided extracts.
       ``(4) Access to an extract does not entitle the Department 
     of State to obtain the full content of the corresponding 
     automated criminal history record. To obtain the full content 
     of a criminal history record, the Department of State shall 
     submit the applicant's fingerprints and any appropriate 
     fingerprint processing fee authorized by law to the Criminal 
     Justice Information Services Division of the Federal Bureau 
     of Investigation.
       ``(c) The provision of the extracts described in subsection 
     (b) may be reconsidered by the Attorney General and the 
     receiving agency upon the development and deployment of a 
     more cost-effective and efficient means of sharing the 
     information.
       ``(d) For purposes of administering this section, the 
     Department of State shall, prior to receiving access to NCIC 
     data but not later than 4 months after the date of enactment 
     of this subsection, promulgate final regulations--
       ``(1) to implement procedures for the taking of 
     fingerprints; and
       ``(2) to establish the conditions for the use of the 
     information received from the Federal Bureau of 
     Investigation, in order--
       ``(A) to limit the redissemination of such information;



       ``(B) to ensure that such information is used solely to 
     determine whether or not to issue a visa to an alien or to 
     admit an alien to the United States;
       ``(C) to ensure the security, confidentiality, and 
     destruction of such information; and
       ``(D) to protect any privacy rights of individuals who are 
     subjects of such information.''.
       (b) Reporting Requirement.--Not later than 2 years after 
     the date of enactment of this Act, the Attorney General and 
     the Secretary of State jointly shall report to Congress on 
     the implementation of the amendments made by this section.
       (c) Technology Standard to Confirm Identity.--
       (1) In General.--The Attorney General and the Secretary of 
     State jointly, through the National Institute of Standards 
     and Technology (NIST), and in consultation with the Secretary 
     of the Treasury and other Federal law enforcement and 
     intelligence agencies the Attorney General or Secretary of 
     State deems appropriate and in consultation with Congress, 
     shall within 2 years after the date of the enactment of this 
     section, develop and certify a technology standard that can 
     be used to verify the identity of persons applying for a 
     United States visa or such persons seeking to enter the 
     United States pursuant to a visa for the purposes of 
     conducting background checks, confirming identity, and 
     ensuring that a person has not received a

[[Page 20422]]

     visa under a different name or such person seeking to enter 
     the United States pursuant to a visa.
       (2) Integrated.--The technology standard developed pursuant 
     to paragraph (1), shall be the technological basis for a 
     cross-agency, cross-platform electronic system that is a 
     cost-effective, efficient, fully integrated means to share 
     law enforcement and intelligence information necessary to 
     confirm the identity of such persons applying for a United 
     States visa or such person seeking to enter the United States 
     pursuant to a visa.
       (3) Accessible.--The electronic system described in 
     paragraph (2), once implemented, shall be readily and easily 
     accessible to--
       (A) all consular officers responsible for the issuance of 
     visas;
       (B) all Federal inspection agents at all United States 
     border inspection points; and
       (C) all law enforcement and intelligence officers as 
     determined by regulation to be responsible for investigation 
     or identification of aliens admitted to the United States 
     pursuant to a visa.
       (4) Report.--Not later than 18 months after the date of the 
     enactment of this Act, and every 2 years thereafter, the 
     Attorney General and the Secretary of State shall jointly, in 
     consultation with the Secretary of Treasury, report to 
     Congress describing the development, implementation, 
     efficacy, and privacy implications of the technology standard 
     and electronic database system described in this subsection.
       (5) Funding.--There is authorized to be appropriated to the 
     Secretary of State, the Attorney General, and the Director of 
     the National Institute of Standards and Technology such sums 
     as may be necessary to carry out the provisions of this 
     subsection.
       (d) Statutory Construction.--Nothing in this section, or in 
     any other law, shall be construed to limit the authority of 
     the Attorney General or the Director of the Federal Bureau of 
     Investigation to provide access to the criminal history 
     record information contained in the National Crime 
     Information Center's (NCIC) Interstate Identification Index 
     (NCIC-III), or to any other information maintained by the 
     NCIC, to any Federal agency or officer authorized to enforce 
     or administer the immigration laws of the United States, for 
     the purpose of such enforcement or administration, upon terms 
     that are consistent with the National Crime Prevention and 
     Privacy Compact Act of 1998 (subtitle A of title II of Public 
     Law 105-251; 42 U.S.C. 14611-16) and section 552a of title 5, 
     United States Code.

     SEC. 404. LIMITED AUTHORITY TO PAY OVERTIME.

       The matter under the headings ``Immigration And 
     Naturalization Service: Salaries and Expenses, Enforcement 
     And Border Affairs'' and ``Immigration And Naturalization 
     Service: Salaries and Expenses, Citizenship And Benefits, 
     Immigration And Program Direction'' in the Department of 
     Justice Appropriations Act, 2001 (as enacted into law by 
     Appendix B (H.R. 5548) of Public Law 106-553 (114 Stat. 
     2762A-58 to 2762A-59)) is amended by striking the following 
     each place it occurs: ``Provided, That none of the funds 
     available to the Immigration and Naturalization Service shall 
     be available to pay any employee overtime pay in an amount in 
     excess of $30,000 during the calendar year beginning January 
     1, 2001:''.

     SEC. 405. REPORT ON THE INTEGRATED AUTOMATED FINGERPRINT 
                   IDENTIFICATION SYSTEM FOR PORTS OF ENTRY AND 
                   OVERSEAS CONSULAR POSTS.

       (a) In General.--The Attorney General, in consultation with 
     the appropriate heads of other Federal agencies, including 
     the Secretary of State, Secretary of the Treasury, and the 
     Secretary of Transportation, shall report to Congress on the 
     feasibility of enhancing the Integrated Automated Fingerprint 
     Identification System (IAFIS) of the Federal Bureau of 
     Investigation and other identification systems in order to 
     better identify a person who holds a foreign passport or a 
     visa and may be wanted in connection with a criminal 
     investigation in the United States or abroad, before the 
     issuance of a visa to that person or the entry or exit from 
     the United States by that person.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated not less than $2,000,000 to carry out this 
     section.

              Subtitle B--Enhanced Immigration Provisions

     SEC. 411. DEFINITIONS RELATING TO TERRORISM.

       (a) Grounds of Inadmissibility.--Section 212(a)(3) of the 
     Immigration and Nationality Act (8 U.S.C. 1182(a)(3)) is 
     amended--
       (1) in subparagraph (B)--
       (A) in clause (i)--
       (i) by amending subclause (IV) to read as follows:

       ``(IV) is a representative (as defined in clause (v)) of--

       ``(aa) a foreign terrorist organization, as designated by 
     the Secretary of State under section 219, or
       ``(bb) a political, social or other similar group whose 
     public endorsement of acts of terrorist activity the 
     Secretary of State has determined undermines United States 
     efforts to reduce or eliminate terrorist activities,'';
       (ii) in subclause (V), by inserting ``or'' after ``section 
     219,''; and
       (iii) by adding at the end the following new subclauses:

       ``(VI) has used the alien's position of prominence within 
     any country to endorse or espouse terrorist activity, or to 
     persuade others to support terrorist activity or a terrorist 
     organization, in a way that the Secretary of State has 
     determined undermines United States efforts to reduce or 
     eliminate terrorist activities, or
       ``(VII) is the spouse or child of an alien who is 
     inadmissible under this section, if the activity causing the 
     alien to be found inadmissible occurred within the last 5 
     years,'';

       (B) by redesignating clauses (ii), (iii), and (iv) as 
     clauses (iii), (iv), and (v), respectively;
       (C) in clause (i)(II), by striking ``clause (iii)'' and 
     inserting ``clause (iv)'';
       (D) by inserting after clause (i) the following:
       ``(ii) Exception.--Subclause (VII) of clause (i) does not 
     apply to a spouse or child--

       ``(I) who did not know or should not reasonably have known 
     of the activity causing the alien to be found inadmissible 
     under this section; or
       ``(II) whom the consular officer or Attorney General has 
     reasonable grounds to believe has renounced the activity 
     causing the alien to be found inadmissible under this 
     section.'';

       (E) in clause (iii) (as redesignated by subparagraph (B))--
       (i) by inserting ``it had been'' before ``committed in the 
     United States''; and
       (ii) in subclause (V)(b), by striking ``or firearm'' and 
     inserting ``, firearm, or other weapon or dangerous device'';
       (F) by amending clause (iv) (as redesignated by 
     subparagraph (B)) to read as follows:
       ``(iv) Engage in terrorist activity defined.--As used in 
     this chapter, the term `engage in terrorist activity' means, 
     in an individual capacity or as a member of an organization--

       ``(I) to commit or to incite to commit, under circumstances 
     indicating an intention to cause death or serious bodily 
     injury, a terrorist activity;
       ``(II) to prepare or plan a terrorist activity;
       ``(III) to gather information on potential targets for 
     terrorist activity;
       ``(IV) to solicit funds or other things of value for--

       ``(aa) a terrorist activity;
       ``(bb) a terrorist organization described in clause (vi)(I) 
     or (vi)(II); or
       ``(cc) a terrorist organization described in clause 
     (vi)(III), unless the solicitor can demonstrate that he did 
     not know, and should not reasonably have known, that the 
     solicitation would further the organization's terrorist 
     activity;

       ``(V) to solicit any individual--

       ``(aa) to engage in conduct otherwise described in this 
     clause;
       ``(bb) for membership in a terrorist organization described 
     in clause (vi)(I) or (vi)(II); or
       ``(cc) for membership in a terrorist organization described 
     in clause (vi)(III), unless the solicitor can demonstrate 
     that he did not know, and should not reasonably have known, 
     that the solicitation would further the organization's 
     terrorist activity; or

       ``(VI) to commit an act that the actor knows, or reasonably 
     should know, affords material support, including a safe 
     house, transportation, communications, funds, transfer of 
     funds or other material financial benefit, false 
     documentation or identification, weapons (including chemical, 
     biological, or radiological weapons), explosives, or 
     training--

       ``(aa) for the commission of a terrorist activity;
       ``(bb) to any individual who the actor knows, or reasonably 
     should know, has committed or plans to commit a terrorist 
     activity;
       ``(cc) to a terrorist organization described in clause 
     (vi)(I) or (vi)(II); or
       ``(dd) to a terrorist organization described in clause 
     (vi)(III), unless the actor can demonstrate that he did not 
     know, and should not reasonably have known, that the act 
     would further the organization's terrorist activity.

     This clause shall not apply to any material support the alien 
     afforded to an organization or individual that has committed 
     terrorist activity, if the Secretary of State, after 
     consultation with the Attorney General, or the Attorney 
     General, after consultation with the Secretary of State, 
     concludes in his sole unreviewable discretion, that this 
     clause should not apply.''; and

       (G) by adding at the end the following new clause:
       ``(vi) Terrorist organization defined.--As used in clause 
     (i)(VI) and clause (iv), the term `terrorist organization' 
     means an organization--

       ``(I) designated under section 219;
       ``(II) otherwise designated, upon publication in the 
     Federal Register, by the Secretary of State in consultation 
     with or upon the request of the Attorney General, as a 
     terrorist organization, after finding that the organization 
     engages in the activities described in subclause (I), (II), 
     or (III) of clause (iv), or that the organization provides 
     material support to further terrorist activity; or
       ``(III) that is a group of two or more individuals, whether 
     organized or not, which engages in the activities described 
     in subclause (I), (II), or (III) of clause (iv).''; and

[[Page 20423]]

       (2) by adding at the end the following new subparagraph:
       ``(F) Association with terrorist organizations.--Any alien 
     who the Secretary of State, after consultation with the 
     Attorney General, or the Attorney General, after consultation 
     with the Secretary of State, determines has been associated 
     with a terrorist organization and intends while in the United 
     States to engage solely, principally, or incidentally in 
     activities that could endanger the welfare, safety, or 
     security of the United States is inadmissible.''.
       (b) Conforming Amendments.--
       (1) Section 237(a)(4)(B) of the Immigration and Nationality 
     Act (8 U.S.C. 1227(a)(4)(B)) is amended by striking ``section 
     212(a)(3)(B)(iii)'' and inserting ``section 
     212(a)(3)(B)(iv)''.
       (2) Section 208(b)(2)(A)(v) of the Immigration and 
     Nationality Act (8 U.S.C. 1158(b)(2)(A)(v)) is amended by 
     striking ``or (IV)'' and inserting ``(IV), or (VI)''.
       (c) Retroactive Application of Amendments.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall take 
     effect on the date of the enactment of this Act and shall 
     apply to--
       (A) actions taken by an alien before, on, or after such 
     date; and
       (B) all aliens, without regard to the date of entry or 
     attempted entry into the United States--
       (i) in removal proceedings on or after such date (except 
     for proceedings in which there has been a final 
     administrative decision before such date); or
       (ii) seeking admission to the United States on or after 
     such date.
       (2) Special rule for aliens in exclusion or deportation 
     proceedings.--Notwithstanding any other provision of law, 
     sections 212(a)(3)(B) and 237(a)(4)(B) of the Immigration and 
     Nationality Act, as amended by this Act, shall apply to all 
     aliens in exclusion or deportation proceedings on or after 
     the date of the enactment of this Act (except for proceedings 
     in which there has been a final administrative decision 
     before such date) as if such proceedings were removal 
     proceedings.
       (3) Special rule for section 219 organizations and 
     organizations designated under section 
     212(a)(3)(B)(vi)(II).--
       (A) In general.--Notwithstanding paragraphs (1) and (2), no 
     alien shall be considered inadmissible under section 
     212(a)(3) of the Immigration and Nationality Act (8 U.S.C. 
     1182(a)(3)), or deportable under section 237(a)(4)(B) of such 
     Act (8 U.S.C. 1227(a)(4)(B)), by reason of the amendments 
     made by subsection (a), on the ground that the alien engaged 
     in a terrorist activity described in subclause (IV)(bb), 
     (V)(bb), or (VI)(cc) of section 212(a)(3)(B)(iv) of such Act 
     (as so amended) with respect to a group at any time when the 
     group was not a terrorist organization designated by the 
     Secretary of State under section 219 of such Act (8 U.S.C. 
     1189) or otherwise designated under section 
     212(a)(3)(B)(vi)(II) of such Act (as so amended).
       (B) Statutory construction.--Subparagraph (A) shall not be 
     construed to prevent an alien from being considered 
     inadmissible or deportable for having engaged in a terrorist 
     activity--
       (i) described in subclause (IV)(bb), (V)(bb), or (VI)(cc) 
     of section 212(a)(3)(B)(iv) of such Act (as so amended) with 
     respect to a terrorist organization at any time when such 
     organization was designated by the Secretary of State under 
     section 219 of such Act or otherwise designated under section 
     212(a)(3)(B)(vi)(II) of such Act (as so amended); or
       (ii) described in subclause (IV)(cc), (V)(cc), or (VI)(dd) 
     of section 212(a)(3)(B)(iv) of such Act (as so amended) with 
     respect to a terrorist organization described in section 
     212(a)(3)(B)(vi)(III) of such Act (as so amended).
       (4) Exception.--The Secretary of State, in consultation 
     with the Attorney General, may determine that the amendments 
     made by this section shall not apply with respect to actions 
     by an alien taken outside the United States before the date 
     of the enactment of this Act upon the recommendation of a 
     consular officer who has concluded that there is not 
     reasonable ground to believe that the alien knew or 
     reasonably should have known that the actions would further a 
     terrorist activity.
       (c) Designation of Foreign Terrorist Organizations.--
     Section 219(a) of the Immigration and Nationality Act (8 
     U.S.C. 1189(a)) is amended--
       (1) in paragraph (1)(B), by inserting ``or terrorism (as 
     defined in section 140(d)(2) of the Foreign Relations 
     Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
     2656f(d)(2)), or retains the capability and intent to engage 
     in terrorist activity or terrorism'' after ``212(a)(3)(B)'';
       (2) in paragraph (1)(C), by inserting ``or terrorism'' 
     after ``terrorist activity'';
       (3) by amending paragraph (2)(A) to read as follows:
       ``(A) Notice.--
       ``(i) To congressional leaders.--Seven days before making a 
     designation under this subsection, the Secretary shall, by 
     classified communication, notify the Speaker and Minority 
     Leader of the House of Representatives, the President pro 
     tempore, Majority Leader, and Minority Leader of the Senate, 
     and the members of the relevant committees of the House of 
     Representatives and the Senate, in writing, of the intent to 
     designate an organization under this subsection, together 
     with the findings made under paragraph (1) with respect to 
     that organization, and the factual basis therefor.
       ``(ii) Publication in federal register.--The Secretary 
     shall publish the designation in the Federal Register seven 
     days after providing the notification under clause (i).'';
       (4) in paragraph (2)(B)(i), by striking ``subparagraph 
     (A)'' and inserting ``subparagraph (A)(ii)'';
       (5) in paragraph (2)(C), by striking ``paragraph (2)'' and 
     inserting ``paragraph (2)(A)(i)'';
       (6) in paragraph (3)(B), by striking ``subsection (c)'' and 
     inserting ``subsection (b)'';
       (7) in paragraph (4)(B), by inserting after the first 
     sentence the following: ``The Secretary also may redesignate 
     such organization at the end of any 2-year redesignation 
     period (but not sooner than 60 days prior to the termination 
     of such period) for an additional 2-year period upon a 
     finding that the relevant circumstances described in 
     paragraph (1) still exist. Any redesignation shall be 
     effective immediately following the end of the prior 2-year 
     designation or redesignation period unless a different 
     effective date is provided in such redesignation.'';
       (8) in paragraph (6)(A)--
       (A) by inserting ``or a redesignation made under paragraph 
     (4)(B)'' after ``paragraph (1)'';
       (B) in clause (i)--
       (i) by inserting ``or redesignation'' after ``designation'' 
     the first place it appears; and
       (ii) by striking ``of the designation''; and
       (C) in clause (ii), by striking ``of the designation'';
       (9) in paragraph (6)(B)--
       (A) by striking ``through (4)'' and inserting ``and (3)''; 
     and
       (B) by inserting at the end the following new sentence: 
     ``Any revocation shall take effect on the date specified in 
     the revocation or upon publication in the Federal Register if 
     no effective date is specified.'';
       (10) in paragraph (7), by inserting ``, or the revocation 
     of a redesignation under paragraph (6),'' after ``paragraph 
     (5) or (6)''; and
       (11) in paragraph (8)--
       (A) by striking ``paragraph (1)(B)'' and inserting 
     ``paragraph (2)(B), or if a redesignation under this 
     subsection has become effective under paragraph (4)(B)'';
       (B) by inserting ``or an alien in a removal proceeding'' 
     after ``criminal action''; and
       (C) by inserting ``or redesignation'' before ``as a 
     defense''.

     SEC. 412. MANDATORY DETENTION OF SUSPECTED TERRORISTS; HABEAS 
                   CORPUS; JUDICIAL REVIEW.

       (a) In General.--The Immigration and Nationality Act (8 
     U.S.C. 1101 et seq.) is amended by inserting after section 
     236 the following:


``MANDATORY DETENTION OF SUSPECTED TERRORISTS; HABEAS CORPUS; JUDICIAL 
                                 REVIEW

       ``Sec. 236A. (a) Detention of Terrorist Aliens.--
       ``(1) Custody.--The Attorney General shall take into 
     custody any alien who is certified under paragraph (3).
       ``(2) Release.--Except as provided in paragraphs (5) and 
     (6), the Attorney General shall maintain custody of such an 
     alien until the alien is removed from the United States. 
     Except as provided in paragraph (6), such custody shall be 
     maintained irrespective of any relief from removal for which 
     the alien may be eligible, or any relief from removal granted 
     the alien, until the Attorney General determines that the 
     alien is no longer an alien who may be certified under 
     paragraph (3). If the alien is finally determined not to be 
     removable, detention pursuant to this subsection shall 
     terminate.
       ``(3) Certification.--The Attorney General may certify an 
     alien under this paragraph if the Attorney General has 
     reasonable grounds to believe that the alien--
       ``(A) is described in section 212(a)(3)(A)(i), 
     212(a)(3)(A)(iii), 212(a)(3)(B), 237(a)(4)(A)(i), 
     237(a)(4)(A)(iii), or 237(a)(4)(B); or
       ``(B) is engaged in any other activity that endangers the 
     national security of the United States.
       ``(4) Nondelegation.--The Attorney General may delegate the 
     authority provided under paragraph (3) only to the Deputy 
     Attorney General. The Deputy Attorney General may not 
     delegate such authority.
       ``(5) Commencement of proceedings.--The Attorney General 
     shall place an alien detained under paragraph (1) in removal 
     proceedings, or shall charge the alien with a criminal 
     offense, not later than 7 days after the commencement of such 
     detention. If the requirement of the preceding sentence is 
     not satisfied, the Attorney General shall release the alien.
       ``(6) Limitation on indefinite detention.--An alien 
     detained solely under paragraph (1) who has not been removed 
     under section 241(a)(1)(A), and whose removal is unlikely in 
     the reasonably foreseeable future, may be detained for 
     additional periods of up to six months only if the release of 
     the alien will threaten the national security of the United 
     States or the safety of the community or any person.

[[Page 20424]]

       ``(7) Review of certification.--The Attorney General shall 
     review the certification made under paragraph (3) every 6 
     months. If the Attorney General determines, in the Attorney 
     General's discretion, that the certification should be 
     revoked, the alien may be released on such conditions as the 
     Attorney General deems appropriate, unless such release is 
     otherwise prohibited by law. The alien may request each 6 
     months in writing that the Attorney General reconsider the 
     certification and may submit documents or other evidence in 
     support of that request.
       ``(b) Habeas Corpus and Judicial Review.--
       ``(1) In general.--Judicial review of any action or 
     decision relating to this section (including judicial review 
     of the merits of a determination made under subsection (a)(3) 
     or (a)(6)) is available exclusively in habeas corpus 
     proceedings consistent with this subsection. Except as 
     provided in the preceding sentence, no court shall have 
     jurisdiction to review, by habeas corpus petition or 
     otherwise, any such action or decision.
       ``(2) Application.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, including section 2241(a) of title 28, United States 
     Code, habeas corpus proceedings described in paragraph (1) 
     may be initiated only by an application filed with--
       ``(i) the Supreme Court;
       ``(ii) any justice of the Supreme Court;
       ``(iii) any circuit judge of the United States Court of 
     Appeals for the District of Columbia Circuit; or
       ``(iv) any district court otherwise having jurisdiction to 
     entertain it.
       ``(B) Application transfer.--Section 2241(b) of title 28, 
     United States Code, shall apply to an application for a writ 
     of habeas corpus described in subparagraph (A).
       ``(3) Appeals.--Notwithstanding any other provision of law, 
     including section 2253 of title 28, in habeas corpus 
     proceedings described in paragraph (1) before a circuit or 
     district judge, the final order shall be subject to review, 
     on appeal, by the United States Court of Appeals for the 
     District of Columbia Circuit. There shall be no right of 
     appeal in such proceedings to any other circuit court of 
     appeals.
       ``(4) Rule of decision.--The law applied by the Supreme 
     Court and the United States Court of Appeals for the District 
     of Columbia Circuit shall be regarded as the rule of decision 
     in habeas corpus proceedings described in paragraph (1).
       ``(c) Statutory Construction.--The provisions of this 
     section shall not be applicable to any other provision of 
     this Act.''.
       (b) Clerical Amendment.--The table of contents of the 
     Immigration and Nationality Act is amended by inserting after 
     the item relating to section 236 the following:

``Sec. 236A. Mandatory detention of suspected terrorist; habeas corpus; 
              judicial review.''.
       (c) Reports.--Not later than 6 months after the date of the 
     enactment of this Act, and every 6 months thereafter, the 
     Attorney General shall submit a report to the Committee on 
     the Judiciary of the House of Representatives and the 
     Committee on the Judiciary of the Senate, with respect to the 
     reporting period, on--
       (1) the number of aliens certified under section 236A(a)(3) 
     of the Immigration and Nationality Act, as added by 
     subsection (a);
       (2) the grounds for such certifications;
       (3) the nationalities of the aliens so certified;
       (4) the length of the detention for each alien so 
     certified; and
       (5) the number of aliens so certified who--
       (A) were granted any form of relief from removal;
       (B) were removed;
       (C) the Attorney General has determined are no longer 
     aliens who may be so certified; or
       (D) were released from detention.

     SEC. 413. MULTILATERAL COOPERATION AGAINST TERRORISTS.

       Section 222(f) of the Immigration and Nationality Act (8 
     U.S.C. 1202(f)) is amended--
       (1) by striking ``except that in the discretion of'' and 
     inserting the following: ``except that--
       ``(1) in the discretion of''; and
       (2) by adding at the end the following:
       ``(2) the Secretary of State, in the Secretary's discretion 
     and on the basis of reciprocity, may provide to a foreign 
     government information in the Department of State's 
     computerized visa lookout database and, when necessary and 
     appropriate, other records covered by this section related to 
     information in the database--
       ``(A) with regard to individual aliens, at any time on a 
     case-by-case basis for the purpose of preventing, 
     investigating, or punishing acts that would constitute a 
     crime in the United States, including, but not limited to, 
     terrorism or trafficking in controlled substances, persons, 
     or illicit weapons; or
       ``(B) with regard to any or all aliens in the database, 
     pursuant to such conditions as the Secretary of State shall 
     establish in an agreement with the foreign government in 
     which that government agrees to use such information and 
     records for the purposes described in subparagraph (A) or to 
     deny visas to persons who would be inadmissible to the United 
     States.''.

     SEC. 414. VISA INTEGRITY AND SECURITY.

       (a) Sense of Congress Regarding the Need To Expedite 
     Implementation of Integrated Entry and Exit Data System.--
       (1) Sense of congress.--In light of the terrorist attacks 
     perpetrated against the United States on September 11, 2001, 
     it is the sense of the Congress that--
       (A) the Attorney General, in consultation with the 
     Secretary of State, should fully implement the integrated 
     entry and exit data system for airports, seaports, and land 
     border ports of entry, as specified in section 110 of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996 (8 U.S.C. 1365a), with all deliberate speed and as 
     expeditiously as practicable; and
       (B) the Attorney General, in consultation with the 
     Secretary of State, the Secretary of Commerce, the Secretary 
     of the Treasury, and the Office of Homeland Security, should 
     immediately begin establishing the Integrated Entry and Exit 
     Data System Task Force, as described in section 3 of the 
     Immigration and Naturalization Service Data Management 
     Improvement Act of 2000 (Public Law 106-215).
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to fully 
     implement the system described in paragraph (1)(A).
       (b) Development of the System.--In the development of the 
     integrated entry and exit data system under section 110 of 
     the Illegal Immigration Reform and Immigrant Responsibility 
     Act of 1996 (8 U.S.C. 1365a), the Attorney General and the 
     Secretary of State shall particularly focus on--
       (1) the utilization of biometric technology; and
       (2) the development of tamper-resistant documents readable 
     at ports of entry.
       (c) Interface With Law Enforcement Databases.--The entry 
     and exit data system described in this section shall be able 
     to interface with law enforcement databases for use by 
     Federal law enforcement to identify and detain individuals 
     who pose a threat to the national security of the United 
     States.
       (d) Report on Screening Information.--Not later than 12 
     months after the date of enactment of this Act, the Office of 
     Homeland Security shall submit a report to Congress on the 
     information that is needed from any United States agency to 
     effectively screen visa applicants and applicants for 
     admission to the United States to identify those affiliated 
     with terrorist organizations or those that pose any threat to 
     the safety or security of the United States, including the 
     type of information currently received by United States 
     agencies and the regularity with which such information is 
     transmitted to the Secretary of State and the Attorney 
     General.

     SEC. 415. PARTICIPATION OF OFFICE OF HOMELAND SECURITY ON 
                   ENTRY-EXIT TASK FORCE.

       Section 3 of the Immigration and Naturalization Service 
     Data Management Improvement Act of 2000 (Public Law 106-215) 
     is amended by striking ``and the Secretary of the Treasury,'' 
     and inserting ``the Secretary of the Treasury, and the Office 
     of Homeland Security''.

     SEC. 416. FOREIGN STUDENT MONITORING PROGRAM.

       (a) Full Implementation and Expansion of Foreign Student 
     Visa Monitoring Program Required.--The Attorney General, in 
     consultation with the Secretary of State, shall fully 
     implement and expand the program established by section 
     641(a) of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1372(a)).
       (b) Integration With Port of Entry Information.--For each 
     alien with respect to whom information is collected under 
     section 641 of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996 (8 U.S.C. 1372), the Attorney 
     General, in consultation with the Secretary of State, shall 
     include information on the date of entry and port of entry.
       (c) Expansion of System To Include Other Approved 
     Educational Institutions.--Section 641 of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996 
     (8 U.S.C.1372) is amended--
       (1) in subsection (a)(1), subsection (c)(4)(A), and 
     subsection (d)(1) (in the text above subparagraph (A)), by 
     inserting ``, other approved educational institutions,'' 
     after ``higher education'' each place it appears;
       (2) in subsections (c)(1)(C), (c)(1)(D), and (d)(1)(A), by 
     inserting ``, or other approved educational institution,'' 
     after ``higher education'' each place it appears;
       (3) in subsections (d)(2), (e)(1), and (e)(2), by inserting 
     ``, other approved educational institution,'' after ``higher 
     education'' each place it appears; and
       (4) in subsection (h), by adding at the end the following 
     new paragraph:
       ``(3) Other approved educational institution.--The term 
     `other approved educational institution' includes any air 
     flight school, language training school, or vocational 
     school, approved by the Attorney General, in consultation 
     with the Secretary of Education and the Secretary of State, 
     under subparagraph (F), (J), or (M) of section 101(a)(15) of 
     the Immigration and Nationality Act.''.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Department of Justice $36,800,000 
     for the period beginning on the date of enactment of

[[Page 20425]]

     this Act and ending on January 1, 2003, to fully implement 
     and expand prior to January 1, 2003, the program established 
     by section 641(a) of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996 (8 U.S.C. 1372(a)).

     SEC. 417. MACHINE READABLE PASSPORTS.

       (a) Audits.--The Secretary of State shall, each fiscal year 
     until September 30, 2007--
       (1) perform annual audits of the implementation of section 
     217(c)(2)(B) of the Immigration and Nationality Act (8 U.S.C. 
     1187(c)(2)(B));
       (2) check for the implementation of precautionary measures 
     to prevent the counterfeiting and theft of passports; and
       (3) ascertain that countries designated under the visa 
     waiver program have established a program to develop tamper-
     resistant passports.
       (b) Periodic Reports.--Beginning one year after the date of 
     enactment of this Act, and every year thereafter until 2007, 
     the Secretary of State shall submit a report to Congress 
     setting forth the findings of the most recent audit conducted 
     under subsection (a)(1).
       (c) Advancing Deadline for Satisfaction of Requirement.--
     Section 217(a)(3) of the Immigration and Nationality Act (8 
     U.S.C. 1187(a)(3)) is amended by striking ``2007'' and 
     inserting ``2003''.
       (d) Waiver.--Section 217(a)(3) of the Immigration and 
     Nationality Act (8 U.S.C. 1187(a)(3)) is amended--
       (1) by striking ``On or after'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     on or after''; and
       (2) by adding at the end the following:
       ``(B) Limited waiver authority.--For the period beginning 
     October 1, 2003, and ending September 30, 2007, the Secretary 
     of State may waive the requirement of subparagraph (A) with 
     respect to nationals of a program country (as designated 
     under subsection (c)), if the Secretary of State finds that 
     the program country--
       ``(i) is making progress toward ensuring that passports 
     meeting the requirement of subparagraph (A) are generally 
     available to its nationals; and
       ``(ii) has taken appropriate measures to protect against 
     misuse of passports the country has issued that do not meet 
     the requirement of subparagraph (A).''.

     SEC. 418. PREVENTION OF CONSULATE SHOPPING.

       (a) Review.--The Secretary of State shall review how 
     consular officers issue visas to determine if consular 
     shopping is a problem.
       (b) Actions to be Taken.--If the Secretary of State 
     determines under subsection (a) that consular shopping is a 
     problem, the Secretary shall take steps to address the 
     problem and shall submit a report to Congress describing what 
     action was taken.

    Subtitle C--Preservation of Immigration Benefits for Victims of 
                               Terrorism

     SEC. 421. SPECIAL IMMIGRANT STATUS.

       (a) In General.--For purposes of the Immigration and 
     Nationality Act (8 U.S.C. 1101 et seq.), the Attorney General 
     may provide an alien described in subsection (b) with the 
     status of a special immigrant under section 101(a)(27) of 
     such Act (8 U.S.C. 1101(a(27)), if the alien--
       (1) files with the Attorney General a petition under 
     section 204 of such Act (8 U.S.C. 1154) for classification 
     under section 203(b)(4) of such Act (8 U.S.C. 1153(b)(4)); 
     and
       (2) is otherwise eligible to receive an immigrant visa and 
     is otherwise admissible to the United States for permanent 
     residence, except in determining such admissibility, the 
     grounds for inadmissibility specified in section 212(a)(4) of 
     such Act (8 U.S.C. 1182(a)(4)) shall not apply.
       (b) Aliens Described.--
       (1) Principal aliens.--An alien is described in this 
     subsection if--
       (A) the alien was the beneficiary of--
       (i) a petition that was filed with the Attorney General on 
     or before September 11, 2001--

       (I) under section 204 of the Immigration and Nationality 
     Act (8 U.S.C. 1154) to classify the alien as a family-
     sponsored immigrant under section 203(a) of such Act (8 
     U.S.C. 1153(a)) or as an employment-based immigrant under 
     section 203(b) of such Act (8 U.S.C. 1153(b)); or
       (II) under section 214(d) (8 U.S.C. 1184(d)) of such Act to 
     authorize the issuance of a nonimmigrant visa to the alien 
     under section 101(a)(15)(K) of such Act (8 U.S.C. 
     1101(a)(15)(K)); or

       (ii) an application for labor certification under section 
     212(a)(5)(A) of such Act (8 U.S.C. 1182(a)(5)(A)) that was 
     filed under regulations of the Secretary of Labor on or 
     before such date; and
       (B) such petition or application was revoked or terminated 
     (or otherwise rendered null), either before or after its 
     approval, due to a specified terrorist activity that directly 
     resulted in--
       (i) the death or disability of the petitioner, applicant, 
     or alien beneficiary; or
       (ii) loss of employment due to physical damage to, or 
     destruction of, the business of the petitioner or applicant.
       (2) Spouses and children.--
       (A) In general.--An alien is described in this subsection 
     if--
       (i) the alien was, on September 10, 2001, the spouse or 
     child of a principal alien described in paragraph (1); and
       (ii) the alien--

       (I) is accompanying such principal alien; or
       (II) is following to join such principal alien not later 
     than September 11, 2003.

       (B) Construction.--For purposes of construing the terms 
     ``accompanying'' and ``following to join'' in subparagraph 
     (A)(ii), any death of a principal alien that is described in 
     paragraph (1)(B)(i) shall be disregarded.
       (3) Grandparents of orphans.--An alien is described in this 
     subsection if the alien is a grandparent of a child, both of 
     whose parents died as a direct result of a specified 
     terrorist activity, if either of such deceased parents was, 
     on September 10, 2001, a citizen or national of the United 
     States or an alien lawfully admitted for permanent residence 
     in the United States.
       (c) Priority Date.--Immigrant visas made available under 
     this section shall be issued to aliens in the order in which 
     a petition on behalf of each such alien is filed with the 
     Attorney General under subsection (a)(1), except that if an 
     alien was assigned a priority date with respect to a petition 
     described in subsection (b)(1)(A)(i), the alien may maintain 
     that priority date.
       (d) Numerical Limitations.--For purposes of the application 
     of sections 201 through 203 of the Immigration and 
     Nationality Act (8 U.S.C. 1151-1153) in any fiscal year, 
     aliens eligible to be provided status under this section 
     shall be treated as special immigrants described in section 
     101(a)(27) of such Act (8 U.S.C. 1101(a)(27)) who are not 
     described in subparagraph (A), (B), (C), or (K) of such 
     section.

     SEC. 422. EXTENSION OF FILING OR REENTRY DEADLINES.

       (a) Automatic Extension of Nonimmigrant Status.--
       (1) In general.--Notwithstanding section 214 of the 
     Immigration and Nationality Act (8 U.S.C. 1184), in the case 
     of an alien described in paragraph (2) who was lawfully 
     present in the United States as a nonimmigrant on September 
     10, 2001, the alien may remain lawfully in the United States 
     in the same nonimmigrant status until the later of--
       (A) the date such lawful nonimmigrant status otherwise 
     would have terminated if this subsection had not been 
     enacted; or
       (B) 1 year after the death or onset of disability described 
     in paragraph (2).
       (2) Aliens described.--
       (A) Principal aliens.--An alien is described in this 
     paragraph if the alien was disabled as a direct result of a 
     specified terrorist activity.
       (B) Spouses and children.--An alien is described in this 
     paragraph if the alien was, on September 10, 2001, the spouse 
     or child of--
       (i) a principal alien described in subparagraph (A); or
       (ii) an alien who died as a direct result of a specified 
     terrorist activity.
       (3) Authorized employment.--During the period in which a 
     principal alien or alien spouse is in lawful nonimmigrant 
     status under paragraph (1), the alien shall be provided an 
     ``employment authorized'' endorsement or other appropriate 
     document signifying authorization of employment not later 
     than 30 days after the alien requests such authorization.
       (b) New Deadlines for Extension or Change of Nonimmigrant 
     Status.--
       (1) Filing delays.--In the case of an alien who was 
     lawfully present in the United States as a nonimmigrant on 
     September 10, 2001, if the alien was prevented from filing a 
     timely application for an extension or change of nonimmigrant 
     status as a direct result of a specified terrorist activity, 
     the alien's application shall be considered timely filed if 
     it is filed not later than 60 days after it otherwise would 
     have been due.
       (2) Departure delays.--In the case of an alien who was 
     lawfully present in the United States as a nonimmigrant on 
     September 10, 2001, if the alien is unable timely to depart 
     the United States as a direct result of a specified terrorist 
     activity, the alien shall not be considered to have been 
     unlawfully present in the United States during the period 
     beginning on September 11, 2001, and ending on the date of 
     the alien's departure, if such departure occurs on or before 
     November 11, 2001.
       (3) Special rule for aliens unable to return from abroad.--
       (A) Principal aliens.--In the case of an alien who was in a 
     lawful nonimmigrant status on September 10, 2001, but who was 
     not present in the United States on such date, if the alien 
     was prevented from returning to the United States in order to 
     file a timely application for an extension of nonimmigrant 
     status as a direct result of a specified terrorist activity--
       (i) the alien's application shall be considered timely 
     filed if it is filed not later than 60 days after it 
     otherwise would have been due; and
       (ii) the alien's lawful nonimmigrant status shall be 
     considered to continue until the later of--

       (I) the date such status otherwise would have terminated if 
     this subparagraph had not been enacted; or
       (II) the date that is 60 days after the date on which the 
     application described in clause (i) otherwise would have been 
     due.

       (B) Spouses and children.--In the case of an alien who is 
     the spouse or child of a principal alien described in 
     subparagraph (A), if

[[Page 20426]]

     the spouse or child was in a lawful nonimmigrant status on 
     September 10, 2001, the spouse or child may remain lawfully 
     in the United States in the same nonimmigrant status until 
     the later of--
       (i) the date such lawful nonimmigrant status otherwise 
     would have terminated if this subparagraph had not been 
     enacted; or
       (ii) the date that is 60 days after the date on which the 
     application described in subparagraph (A) otherwise would 
     have been due.
       (4) Circumstances preventing timely action.--
       (A) Filing delays.--For purposes of paragraph (1), 
     circumstances preventing an alien from timely acting are--
       (i) office closures;
       (ii) mail or courier service cessations or delays; and
       (iii) other closures, cessations, or delays affecting case 
     processing or travel necessary to satisfy legal requirements.
       (B) Departure and return delays.--For purposes of 
     paragraphs (2) and (3), circumstances preventing an alien 
     from timely acting are--
       (i) office closures;
       (ii) airline flight cessations or delays; and
       (iii) other closures, cessations, or delays affecting case 
     processing or travel necessary to satisfy legal requirements.
       (c) Diversity Immigrants.--
       (1) Waiver of fiscal year limitation.--Notwithstanding 
     section 203(e)(2) of the Immigration and Nationality Act (8 
     U.S.C. 1153(e)(2)), an immigrant visa number issued to an 
     alien under section 203(c) of such Act for fiscal year 2001 
     may be used by the alien during the period beginning on 
     October 1, 2001, and ending on April 1, 2002, if the alien 
     establishes that the alien was prevented from using it during 
     fiscal year 2001 as a direct result of a specified terrorist 
     activity.
       (2) Worldwide level.--In the case of an alien entering the 
     United States as a lawful permanent resident, or adjusting to 
     that status, under paragraph (1) or (3), the alien shall be 
     counted as a diversity immigrant for fiscal year 2001 for 
     purposes of section 201(e) of the Immigration and Nationality 
     Act (8 U.S.C. 1151(e)), unless the worldwide level under such 
     section for such year has been exceeded, in which case the 
     alien shall be counted as a diversity immigrant for fiscal 
     year 2002.
       (3) Treatment of family members of certain aliens.--In the 
     case of a principal alien issued an immigrant visa number 
     under section 203(c) of the Immigration and Nationality Act 
     (8 U.S.C. 1153(c)) for fiscal year 2001, if such principal 
     alien died as a direct result of a specified terrorist 
     activity, the aliens who were, on September 10, 2001, the 
     spouse and children of such principal alien shall, until June 
     30, 2002, if not otherwise entitled to an immigrant status 
     and the immediate issuance of a visa under subsection (a), 
     (b), or (c) of section 203 of such Act, be entitled to the 
     same status, and the same order of consideration, that would 
     have been provided to such alien spouse or child under 
     section 203(d) of such Act as if the principal alien were not 
     deceased and as if the spouse or child's visa application had 
     been adjudicated by September 30, 2001.
       (4) Circumstances preventing timely action.--For purposes 
     of paragraph (1), circumstances preventing an alien from 
     using an immigrant visa number during fiscal year 2001 are--
       (A) office closures;
       (B) mail or courier service cessations or delays;
       (C) airline flight cessations or delays; and
       (D) other closures, cessations, or delays affecting case 
     processing or travel necessary to satisfy legal requirements.
       (d) Extension of Expiration of Immigrant Visas.--
       (1) In general.--Notwithstanding the limitations under 
     section 221(c) of the Immigration and Nationality Act (8 
     U.S.C. 1201(c)), in the case of any immigrant visa issued to 
     an alien that expires or expired before December 31, 2001, if 
     the alien was unable to effect entry into the United States 
     as a direct result of a specified terrorist activity, then 
     the period of validity of the visa is extended until December 
     31, 2001, unless a longer period of validity is otherwise 
     provided under this subtitle.
       (2) Circumstances preventing entry.--For purposes of this 
     subsection, circumstances preventing an alien from effecting 
     entry into the United States are--
       (A) office closures;
       (B) airline flight cessations or delays; and
       (C) other closures, cessations, or delays affecting case 
     processing or travel necessary to satisfy legal requirements.
       (e) Grants of Parole Extended.--
       (1) In general.--In the case of any parole granted by the 
     Attorney General under section 212(d)(5) of the Immigration 
     and Nationality Act (8 U.S.C. 1182(d)(5)) that expires on a 
     date on or after September 11, 2001, if the alien beneficiary 
     of the parole was unable to return to the United States prior 
     to the expiration date as a direct result of a specified 
     terrorist activity, the parole is deemed extended for an 
     additional 90 days.
       (2) Circumstances preventing return.--For purposes of this 
     subsection, circumstances preventing an alien from timely 
     returning to the United States are--
       (A) office closures;
       (B) airline flight cessations or delays; and
       (C) other closures, cessations, or delays affecting case 
     processing or travel necessary to satisfy legal requirements.
       (f) Voluntary Departure.--Notwithstanding section 240B of 
     the Immigration and Nationality Act (8 U.S.C. 1229c), if a 
     period for voluntary departure under such section expired 
     during the period beginning on September 11, 2001, and ending 
     on October 11, 2001, such voluntary departure period is 
     deemed extended for an additional 30 days.

     SEC. 423. HUMANITARIAN RELIEF FOR CERTAIN SURVIVING SPOUSES 
                   AND CHILDREN.

       (a) Treatment as Immediate Relatives.--
       (1) Spouses.--Notwithstanding the second sentence of 
     section 201(b)(2)(A)(i) of the Immigration and Nationality 
     Act (8 U.S.C. 1151(b)(2)(A)(i)), in the case of an alien who 
     was the spouse of a citizen of the United States at the time 
     of the citizen's death and was not legally separated from the 
     citizen at the time of the citizen's death, if the citizen 
     died as a direct result of a specified terrorist activity, 
     the alien (and each child of the alien) shall be considered, 
     for purposes of section 201(b) of such Act, to remain an 
     immediate relative after the date of the citizen's death, but 
     only if the alien files a petition under section 
     204(a)(1)(A)(ii) of such Act within 2 years after such date 
     and only until the date the alien remarries. For purposes of 
     such section 204(a)(1)(A)(ii), an alien granted relief under 
     the preceding sentence shall be considered an alien spouse 
     described in the second sentence of section 201(b)(2)(A)(i) 
     of such Act.
       (2) Children.--
       (A) In general.--In the case of an alien who was the child 
     of a citizen of the United States at the time of the 
     citizen's death, if the citizen died as a direct result of a 
     specified terrorist activity, the alien shall be considered, 
     for purposes of section 201(b) of the Immigration and 
     Nationality Act (8 U.S.C. 1151(b)), to remain an immediate 
     relative after the date of the citizen's death (regardless of 
     changes in age or marital status thereafter), but only if the 
     alien files a petition under subparagraph (B) within 2 years 
     after such date.
       (B) Petitions.--An alien described in subparagraph (A) may 
     file a petition with the Attorney General for classification 
     of the alien under section 201(b)(2)(A)(i) of the Immigration 
     and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)). For purposes 
     of such Act, such a petition shall be considered a petition 
     filed under section 204(a)(1)(A) of such Act (8 U.S.C. 
     1154(a)(1)(A)).
       (b) Spouses, Children, Unmarried Sons and Daughters of 
     Lawful Permanent Resident Aliens.--
       (1) In general.--Any spouse, child, or unmarried son or 
     daughter of an alien described in paragraph (3) who is 
     included in a petition for classification as a family-
     sponsored immigrant under section 203(a)(2) of the 
     Immigration and Nationality Act (8 U.S.C. 1153(a)(2)) that 
     was filed by such alien before September 11, 2001, shall be 
     considered (if the spouse, child, son, or daughter has not 
     been admitted or approved for lawful permanent residence by 
     such date) a valid petitioner for preference status under 
     such section with the same priority date as that assigned 
     prior to the death described in paragraph (3)(A). No new 
     petition shall be required to be filed. Such spouse, child, 
     son, or daughter may be eligible for deferred action and work 
     authorization.
       (2) Self-petitions.--Any spouse, child, or unmarried son or 
     daughter of an alien described in paragraph (3) who is not a 
     beneficiary of a petition for classification as a family-
     sponsored immigrant under section 203(a)(2) of the 
     Immigration and Nationality Act may file a petition for such 
     classification with the Attorney General, if the spouse, 
     child, son, or daughter was present in the United States on 
     September 11, 2001. Such spouse, child, son, or daughter may 
     be eligible for deferred action and work authorization.
       (3) Aliens described.--An alien is described in this 
     paragraph if the alien--
       (A) died as a direct result of a specified terrorist 
     activity; and
       (B) on the day of such death, was lawfully admitted for 
     permanent residence in the United States.
       (c) Applications for Adjustment of Status by Surviving 
     Spouses and Children of Employment-Based Immigrants.--
       (1) In general.--Any alien who was, on September 10, 2001, 
     the spouse or child of an alien described in paragraph (2), 
     and who applied for adjustment of status prior to the death 
     described in paragraph (2)(A), may have such application 
     adjudicated as if such death had not occurred.
       (2) Aliens described.--An alien is described in this 
     paragraph if the alien--
       (A) died as a direct result of a specified terrorist 
     activity; and
       (B) on the day before such death, was--
       (i) an alien lawfully admitted for permanent residence in 
     the United States by reason of having been allotted a visa 
     under section 203(b) of the Immigration and Nationality Act 
     (8 U.S.C. 1153(b)); or
       (ii) an applicant for adjustment of status to that of an 
     alien described in clause (i), and admissible to the United 
     States for permanent residence.

[[Page 20427]]

       (d) Waiver of Public Charge Grounds.--In determining the 
     admissibility of any alien accorded an immigration benefit 
     under this section, the grounds for inadmissibility specified 
     in section 212(a)(4) of the Immigration and Nationality Act 
     (8 U.S.C. 1182(a)(4)) shall not apply.

     SEC. 424. ``AGE-OUT'' PROTECTION FOR CHILDREN.

       For purposes of the administration of the Immigration and 
     Nationality Act (8 U.S.C. 1101 et seq.), in the case of an 
     alien--
       (1) whose 21st birthday occurs in September 2001, and who 
     is the beneficiary of a petition or application filed under 
     such Act on or before September 11, 2001, the alien shall be 
     considered to be a child for 90 days after the alien's 21st 
     birthday for purposes of adjudicating such petition or 
     application; and
       (2) whose 21st birthday occurs after September 2001, and 
     who is the beneficiary of a petition or application filed 
     under such Act on or before September 11, 2001, the alien 
     shall be considered to be a child for 45 days after the 
     alien's 21st birthday for purposes of adjudicating such 
     petition or application.

     SEC. 425. TEMPORARY ADMINISTRATIVE RELIEF.

       The Attorney General, for humanitarian purposes or to 
     ensure family unity, may provide temporary administrative 
     relief to any alien who--
       (1) was lawfully present in the United States on September 
     10, 2001;
       (2) was on such date the spouse, parent, or child of an 
     individual who died or was disabled as a direct result of a 
     specified terrorist activity; and
       (3) is not otherwise entitled to relief under any other 
     provision of this subtitle.

     SEC. 426. EVIDENCE OF DEATH, DISABILITY, OR LOSS OF 
                   EMPLOYMENT.

       (a) In General.--The Attorney General shall establish 
     appropriate standards for evidence demonstrating, for 
     purposes of this subtitle, that any of the following occurred 
     as a direct result of a specified terrorist activity:
       (1) Death.
       (2) Disability.
       (3) Loss of employment due to physical damage to, or 
     destruction of, a business.
       (b) Waiver of Regulations.--The Attorney General shall 
     carry out subsection (a) as expeditiously as possible. The 
     Attorney General is not required to promulgate regulations 
     prior to implementing this subtitle.

     SEC. 427. NO BENEFITS TO TERRORISTS OR FAMILY MEMBERS OF 
                   TERRORISTS.

       Notwithstanding any other provision of this subtitle, 
     nothing in this subtitle shall be construed to provide any 
     benefit or relief to--
       (1) any individual culpable for a specified terrorist 
     activity; or
       (2) any family member of any individual described in 
     paragraph (1).

     SEC. 428. DEFINITIONS.

       (a) Application of Immigration and Nationality Act 
     Provisions.--Except as otherwise specifically provided in 
     this subtitle, the definitions used in the Immigration and 
     Nationality Act (excluding the definitions applicable 
     exclusively to title III of such Act) shall apply in the 
     administration of this subtitle.
       (b) Specified Terrorist Activity.--For purposes of this 
     subtitle, the term ``specified terrorist activity'' means any 
     terrorist activity conducted against the Government or the 
     people of the United States on September 11, 2001.

         TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM

     SEC. 501. ATTORNEY GENERAL'S AUTHORITY TO PAY REWARDS TO 
                   COMBAT TERRORISM.

       (a) Payment of Rewards To Combat Terrorism.--Funds 
     available to the Attorney General may be used for the payment 
     of rewards pursuant to public advertisements for assistance 
     to the Department of Justice to combat terrorism and defend 
     the Nation against terrorist acts, in accordance with 
     procedures and regulations established or issued by the 
     Attorney General.
       (b) Conditions.--In making rewards under this section--
       (1) no such reward of $250,000 or more may be made or 
     offered without the personal approval of either the Attorney 
     General or the President;
       (2) the Attorney General shall give written notice to the 
     Chairmen and ranking minority members of the Committees on 
     Appropriations and the Judiciary of the Senate and of the 
     House of Representatives not later than 30 days after the 
     approval of a reward under paragraph (1);
       (3) any executive agency or military department (as 
     defined, respectively, in sections 105 and 102 of title 5, 
     United States Code) may provide the Attorney General with 
     funds for the payment of rewards;
       (4) neither the failure of the Attorney General to 
     authorize a payment nor the amount authorized shall be 
     subject to judicial review; and
       (5) no such reward shall be subject to any per- or 
     aggregate reward spending limitation established by law, 
     unless that law expressly refers to this section, and no 
     reward paid pursuant to any such offer shall count toward any 
     such aggregate reward spending limitation.

     SEC. 502. SECRETARY OF STATE'S AUTHORITY TO PAY REWARDS.

       Section 36 of the State Department Basic Authorities Act of 
     1956 (Public Law 885, August 1, 1956; 22 U.S.C. 2708) is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (4), by striking ``or'' at the end;
       (B) in paragraph (5), by striking the period at the end and 
     inserting ``, including by dismantling an organization in 
     whole or significant part; or''; and
       (C) by adding at the end the following:
       ``(6) the identification or location of an individual who 
     holds a key leadership position in a terrorist 
     organization.'';
       (2) in subsection (d), by striking paragraphs (2) and (3) 
     and redesignating paragraph (4) as paragraph (2); and
       (3) in subsection (e)(1), by inserting ``, except as 
     personally authorized by the Secretary of State if he 
     determines that offer or payment of an award of a larger 
     amount is necessary to combat terrorism or defend the Nation 
     against terrorist acts.'' after ``$5,000,000''.

     SEC. 503. DNA IDENTIFICATION OF TERRORISTS AND OTHER VIOLENT 
                   OFFENDERS.

       Section 3(d)(2) of the DNA Analysis Backlog Elimination Act 
     of 2000 (42 U.S.C. 14135a(d)(2)) is amended to read as 
     follows:
       ``(2) In addition to the offenses described in paragraph 
     (1), the following offenses shall be treated for purposes of 
     this section as qualifying Federal offenses, as determined by 
     the Attorney General:
       ``(A) Any offense listed in section 2332b(g)(5)(B) of title 
     18, United States Code.
       ``(B) Any crime of violence (as defined in section 16 of 
     title 18, United States Code).
       ``(C) Any attempt or conspiracy to commit any of the above 
     offenses.''.

     SEC. 504. COORDINATION WITH LAW ENFORCEMENT.

       (a) Information Acquired From an Electronic Surveillance.--
     Section 106 of the Foreign Intelligence Surveillance Act of 
     1978 (50 U.S.C. 1806), is amended by adding at the end the 
     following:
       ``(k)(1) Federal officers who conduct electronic 
     surveillance to acquire foreign intelligence information 
     under this title may consult with Federal law enforcement 
     officers to coordinate efforts to investigate or protect 
     against--
       ``(A) actual or potential attack or other grave hostile 
     acts of a foreign power or an agent of a foreign power;
       ``(B) sabotage or international terrorism by a foreign 
     power or an agent of a foreign power; or
       ``(C) clandestine intelligence activities by an 
     intelligence service or network of a foreign power or by an 
     agent of a foreign power.
       ``(2) Coordination authorized under paragraph (1) shall not 
     preclude the certification required by section 104(a)(7)(B) 
     or the entry of an order under section 105.''.
       (b) Information Acquired From a Physical Search.--Section 
     305 of the Foreign Intelligence Surveillance Act of 1978 (50 
     U.S.C. 1825) is amended by adding at the end the following:
       ``(k)(1) Federal officers who conduct physical searches to 
     acquire foreign intelligence information under this title may 
     consult with Federal law enforcement officers to coordinate 
     efforts to investigate or protect against--
       ``(A) actual or potential attack or other grave hostile 
     acts of a foreign power or an agent of a foreign power;
       ``(B) sabotage or international terrorism by a foreign 
     power or an agent of a foreign power; or
       ``(C) clandestine intelligence activities by an 
     intelligence service or network of a foreign power or by an 
     agent of a foreign power.
       ``(2) Coordination authorized under paragraph (1) shall not 
     preclude the certification required by section 303(a)(7) or 
     the entry of an order under section 304.''.

     SEC. 505. MISCELLANEOUS NATIONAL SECURITY AUTHORITIES.

       (a) Telephone Toll and Transactional Records.--Section 
     2709(b) of title 18, United States Code, is amended--
       (1) in the matter preceding paragraph (1), by inserting 
     ``at Bureau headquarters or a Special Agent in Charge in a 
     Bureau field office designated by the Director'' after 
     ``Assistant Director'';
       (2) in paragraph (1)--
       (A) by striking ``in a position not lower than Deputy 
     Assistant Director''; and
       (B) by striking ``made that'' and all that follows and 
     inserting the following: ``made that the name, address, 
     length of service, and toll billing records sought are 
     relevant to an authorized investigation to protect against 
     international terrorism or clandestine intelligence 
     activities, provided that such an investigation of a United 
     States person is not conducted solely on the basis of 
     activities protected by the first amendment to the 
     Constitution of the United States; and''; and
       (3) in paragraph (2)--
       (A) by striking ``in a position not lower than Deputy 
     Assistant Director''; and
       (B) by striking ``made that'' and all that follows and 
     inserting the following: ``made that the information sought 
     is relevant to an authorized investigation to protect against 
     international terrorism or clandestine intelligence 
     activities, provided that such an investigation of a United 
     States person is not

[[Page 20428]]

     conducted solely upon the basis of activities protected by 
     the first amendment to the Constitution of the United 
     States.''.
       (b) Financial Records.--Section 1114(a)(5)(A) of the Right 
     to Financial Privacy Act of 1978 (12 U.S.C. 3414(a)(5)(A)) is 
     amended--
       (1) by inserting ``in a position not lower than Deputy 
     Assistant Director at Bureau headquarters or a Special Agent 
     in Charge in a Bureau field office designated by the 
     Director'' after ``designee''; and
       (2) by striking ``sought'' and all that follows and 
     inserting ``sought for foreign counter intelligence purposes 
     to protect against international terrorism or clandestine 
     intelligence activities, provided that such an investigation 
     of a United States person is not conducted solely upon the 
     basis of activities protected by the first amendment to the 
     Constitution of the United States.''.
       (c) Consumer Reports.--Section 624 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681u) is amended--
       (1) in subsection (a)--
       (A) by inserting ``in a position not lower than Deputy 
     Assistant Director at Bureau headquarters or a Special Agent 
     in Charge of a Bureau field office designated by the 
     Director'' after ``designee'' the first place it appears; and
       (B) by striking ``in writing that'' and all that follows 
     through the end and inserting the following: ``in writing, 
     that such information is sought for the conduct of an 
     authorized investigation to protect against international 
     terrorism or clandestine intelligence activities, provided 
     that such an investigation of a United States person is not 
     conducted solely upon the basis of activities protected by 
     the first amendment to the Constitution of the United 
     States.'';
       (2) in subsection (b)--
       (A) by inserting ``in a position not lower than Deputy 
     Assistant Director at Bureau headquarters or a Special Agent 
     in Charge of a Bureau field office designated by the 
     Director'' after ``designee'' the first place it appears; and
       (B) by striking ``in writing that'' and all that follows 
     through the end and inserting the following: ``in writing 
     that such information is sought for the conduct of an 
     authorized investigation to protect against international 
     terrorism or clandestine intelligence activities, provided 
     that such an investigation of a United States person is not 
     conducted solely upon the basis of activities protected by 
     the first amendment to the Constitution of the United 
     States.''; and
       (3) in subsection (c)--
       (A) by inserting ``in a position not lower than Deputy 
     Assistant Director at Bureau headquarters or a Special Agent 
     in Charge in a Bureau field office designated by the 
     Director'' after ``designee of the Director''; and
       (B) by striking ``in camera that'' and all that follows 
     through ``States.'' and inserting the following: ``in camera 
     that the consumer report is sought for the conduct of an 
     authorized investigation to protect against international 
     terrorism or clandestine intelligence activities, provided 
     that such an investigation of a United States person is not 
     conducted solely upon the basis of activities protected by 
     the first amendment to the Constitution of the United 
     States.''.

     SEC. 506. EXTENSION OF SECRET SERVICE JURISDICTION.

       (a) Concurrent Jurisdiction Under 18 U.S.C. 1030.--Section 
     1030(d) of title 18, United States Code, is amended to read 
     as follows:
       ``(d)(1) The United States Secret Service shall, in 
     addition to any other agency having such authority, have the 
     authority to investigate offenses under this section.
       ``(2) The Federal Bureau of Investigation shall have 
     primary authority to investigate offenses under subsection 
     (a)(1) for any cases involving espionage, foreign 
     counterintelligence, information protected against 
     unauthorized disclosure for reasons of national defense or 
     foreign relations, or Restricted Data (as that term is 
     defined in section 11y of the Atomic Energy Act of 1954 (42 
     U.S.C. 2014(y)), except for offenses affecting the duties of 
     the United States Secret Service pursuant to section 3056(a) 
     of this title.
       ``(3) Such authority shall be exercised in accordance with 
     an agreement which shall be entered into by the Secretary of 
     the Treasury and the Attorney General.''.
       (b) Reauthorization of Jurisdiction under 18 U.S.C. 1344.--
     Section 3056(b)(3) of title 18, United States Code, is 
     amended by striking ``credit and debit card frauds, and false 
     identification documents or devices'' and inserting ``access 
     device frauds, false identification documents or devices, and 
     any fraud or other criminal or unlawful activity in or 
     against any federally insured financial institution''.

     SEC. 507. DISCLOSURE OF EDUCATIONAL RECORDS.

       Section 444 of the General Education Provisions Act (20 
     U.S.C. 1232g), is amended by adding after subsection (i) a 
     new subsection (j) to read as follows:
       ``(j) Investigation and Prosecution of Terrorism.--
       ``(1) In general.--Notwithstanding subsections (a) through 
     (i) or any provision of State law, the Attorney General (or 
     any Federal officer or employee, in a position not lower than 
     an Assistant Attorney General, designated by the Attorney 
     General) may submit a written application to a court of 
     competent jurisdiction for an ex parte order requiring an 
     educational agency or institution to permit the Attorney 
     General (or his designee) to--
       ``(A) collect education records in the possession of the 
     educational agency or institution that are relevant to an 
     authorized investigation or prosecution of an offense listed 
     in section 2332b(g)(5)(B) of title 18 United States Code, or 
     an act of domestic or international terrorism as defined in 
     section 2331 of that title; and
       ``(B) for official purposes related to the investigation or 
     prosecution of an offense described in paragraph (1)(A), 
     retain, disseminate, and use (including as evidence at trial 
     or in other administrative or judicial proceedings) such 
     records, consistent with such guidelines as the Attorney 
     General, after consultation with the Secretary, shall issue 
     to protect confidentiality.
       ``(2) Application and approval.--
       ``(A) In general.--An application under paragraph (1) shall 
     certify that there are specific and articulable facts giving 
     reason to believe that the education records are likely to 
     contain information described in paragraph (1)(A).
       ``(B) The court shall issue an order described in paragraph 
     (1) if the court finds that the application for the order 
     includes the certification described in subparagraph (A).
       ``(3) Protection of educational agency or institution.--An 
     educational agency or institution that, in good faith, 
     produces education records in accordance with an order issued 
     under this subsection shall not be liable to any person for 
     that production.
       ``(4) Record-keeping.--Subsection (b)(4) does not apply to 
     education records subject to a court order under this 
     subsection.''.

     SEC. 508. DISCLOSURE OF INFORMATION FROM NCES SURVEYS.

       Section 408 of the National Education Statistics Act of 
     1994 (20 U.S.C. 9007), is amended by adding after subsection 
     (b) a new subsection (c) to read as follows:
       ``(c) Investigation and Prosecution of Terrorism.--
       ``(1) In General.--Notwithstanding subsections (a) and (b), 
     the Attorney General (or any Federal officer or employee, in 
     a position not lower than an Assistant Attorney General, 
     designated by the Attorney General) may submit a written 
     application to a court of competent jurisdiction for an ex 
     parte order requiring the Secretary to permit the Attorney 
     General (or his designee) to--
       ``(A) collect reports, records, and information (including 
     individually identifiable information) in the possession of 
     the center that are relevant to an authorized investigation 
     or prosecution of an offense listed in section 2332b(g)(5)(B) 
     of title 18, United States Code, or an act of domestic or 
     international terrorism as defined in section 2331 of that 
     title; and
       ``(B) for official purposes related to the investigation or 
     prosecution of an offense described in paragraph (1)(A), 
     retain, disseminate, and use (including as evidence at trial 
     or in other administrative or judicial proceedings) such 
     information, consistent with such guidelines as the Attorney 
     General, after consultation with the Secretary, shall issue 
     to protect confidentiality.
       ``(2) Application and approval.--
       ``(A) In general.--An application under paragraph (1) shall 
     certify that there are specific and articulable facts giving 
     reason to believe that the information sought is described in 
     paragraph (1)(A).
       ``(B) The court shall issue an order described in paragraph 
     (1) if the court finds that the application for the order 
     includes the certification described in subparagraph (A).
       ``(3) Protection.--An officer or employee of the Department 
     who, in good faith, produces information in accordance with 
     an order issued under this subsection does not violate 
     subsection (b)(2) and shall not be liable to any person for 
     that production.''.

 TITLE VI--PROVIDING FOR VICTIMS OF TERRORISM, PUBLIC SAFETY OFFICERS, 
                           AND THEIR FAMILIES

         Subtitle A--Aid to Families of Public Safety Officers

     SEC. 611. EXPEDITED PAYMENT FOR PUBLIC SAFETY OFFICERS 
                   INVOLVED IN THE PREVENTION, INVESTIGATION, 
                   RESCUE, OR RECOVERY EFFORTS RELATED TO A 
                   TERRORIST ATTACK.

       (a) In General.--Notwithstanding the limitations of 
     subsection (b) of section 1201 or the provisions of 
     subsections (c), (d), and (e) of such section or section 1202 
     of title I of the Omnibus Crime Control and Safe Streets Act 
     of 1968 (42 U.S.C. 3796, 3796a), upon certification 
     (containing identification of all eligible payees of benefits 
     pursuant to section 1201 of such Act) by a public agency that 
     a public safety officer employed by such agency was killed or 
     suffered a catastrophic injury producing permanent and total 
     disability as a direct and proximate result of a personal 
     injury sustained in the line of duty as described in section 
     1201 of such Act in connection with prevention, 
     investigation, rescue, or recovery efforts related to a 
     terrorist attack, the Director of the Bureau of Justice 
     Assistance shall authorize payment to qualified 
     beneficiaries, said payment to be made not later than 30 days 
     after receipt of

[[Page 20429]]

     such certification, benefits described under subpart 1 of 
     part L of such Act (42 U.S.C. 3796 et seq.).
       (b) Definitions.--For purposes of this section, the terms 
     ``catastrophic injury'', ``public agency'', and ``public 
     safety officer'' have the same meanings given such terms in 
     section 1204 of title I of the Omnibus Crime Control and Safe 
     Streets Act of 1968 (42 U.S.C. 3796b).

     SEC. 612. TECHNICAL CORRECTION WITH RESPECT TO EXPEDITED 
                   PAYMENTS FOR HEROIC PUBLIC SAFETY OFFICERS.

       Section 1 of Public Law 107-37 (an Act to provide for the 
     expedited payment of certain benefits for a public safety 
     officer who was killed or suffered a catastrophic injury as a 
     direct and proximate result of a personal injury sustained in 
     the line of duty in connection with the terrorist attacks of 
     September 11, 2001) is amended by--
       (1) inserting before ``by a'' the following: ``(containing 
     identification of all eligible payees of benefits pursuant to 
     section 1201)'';
       (2) inserting ``producing permanent and total disability'' 
     after ``suffered a catastrophic injury''; and
       (3) striking ``1201(a)'' and inserting ``1201''.

     SEC. 613. PUBLIC SAFETY OFFICERS BENEFIT PROGRAM PAYMENT 
                   INCREASE.

       (a) Payments.--Section 1201(a) of the Omnibus Crime Control 
     and Safe Streets Act of 1968 (42 U.S.C. 3796) is amended by 
     striking ``$100,000'' and inserting ``$250,000''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to any death or disability occurring on or after 
     January 1, 2001.

     SEC. 614. OFFICE OF JUSTICE PROGRAMS.

       Section 112 of title I of section 101(b) of division A of 
     Public Law 105-277 and section 108(a) of appendix A of Public 
     Law 106-113 (113 Stat. 1501A-20) are amended--
       (1) after ``that Office'', each place it occurs, by 
     inserting ``(including, notwithstanding any contrary 
     provision of law (unless the same should expressly refer to 
     this section), any organization that administers any program 
     established in title 1 of Public Law 90-351)''; and
       (2) by inserting ``functions, including any'' after 
     ``all''.

       Subtitle B--Amendments to the Victims of Crime Act of 1984

     SEC. 621. CRIME VICTIMS FUND.

       (a) Deposit of Gifts in the Fund.--Section 1402(b) of the 
     Victims of Crime Act of 1984 (42 U.S.C. 10601(b)) is 
     amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(5) any gifts, bequests, or donations to the Fund from 
     private entities or individuals.''.
       (b) Formula for Fund Distributions.--Section 1402(c) of the 
     Victims of Crime Act of 1984 (42 U.S.C. 10601(c)) is amended 
     to read as follows:
       ``(c) Fund Distribution; Retention of Sums in Fund; 
     Availability for Expenditure Without Fiscal Year 
     Limitation.--
       ``(1) Subject to the availability of money in the Fund, in 
     each fiscal year, beginning with fiscal year 2003, the 
     Director shall distribute not less than 90 percent nor more 
     than 110 percent of the amount distributed from the Fund in 
     the previous fiscal year, except the Director may distribute 
     up to 120 percent of the amount distributed in the previous 
     fiscal year in any fiscal year that the total amount 
     available in the Fund is more than 2 times the amount 
     distributed in the previous fiscal year.
       ``(2) In each fiscal year, the Director shall distribute 
     amounts from the Fund in accordance with subsection (d). All 
     sums not distributed during a fiscal year shall remain in 
     reserve in the Fund to be distributed during a subsequent 
     fiscal year. Notwithstanding any other provision of law, all 
     sums deposited in the Fund that are not distributed shall 
     remain in reserve in the Fund for obligation in future fiscal 
     years, without fiscal year limitation.''.
       (c) Allocation of Funds for Costs and Grants.--Section 
     1402(d)(4) of the Victims of Crime Act of 1984 (42 U.S.C. 
     10601(d)(4)) is amended--
       (1) by striking ``deposited in'' and inserting ``to be 
     distributed from'';
       (2) in subparagraph (A), by striking ``48.5'' and inserting 
     ``47.5'';
       (3) in subparagraph (B), by striking ``48.5'' and inserting 
     ``47.5''; and
       (4) in subparagraph (C), by striking ``3'' and inserting 
     ``5''.
       (d) Antiterrorism Emergency Reserve.--Section 1402(d)(5) of 
     the Victims of Crime Act of 1984 (42 U.S.C. 10601(d)(5)) is 
     amended to read as follows:
       ``(5)(A) In addition to the amounts distributed under 
     paragraphs (2), (3), and (4), the Director may set aside up 
     to $50,000,000 from the amounts transferred to the Fund in 
     response to the airplane hijackings and terrorist acts that 
     occurred on September 11, 2001, as an antiterrorism emergency 
     reserve. The Director may replenish any amounts expended from 
     such reserve in subsequent fiscal years by setting aside up 
     to 5 percent of the amounts remaining in the Fund in any 
     fiscal year after distributing amounts under paragraphs (2), 
     (3) and (4). Such reserve shall not exceed $50,000,000.
       ``(B) The antiterrorism emergency reserve referred to in 
     subparagraph (A) may be used for supplemental grants under 
     section 1404B and to provide compensation to victims of 
     international terrorism under section 1404C.
       ``(C) Amounts in the antiterrorism emergency reserve 
     established pursuant to subparagraph (A) may be carried over 
     from fiscal year to fiscal year. Notwithstanding subsection 
     (c) and section 619 of the Departments of Commerce, Justice, 
     and State, the Judiciary, and Related Agencies Appropriations 
     Act, 2001 (and any similar limitation on Fund obligations in 
     any future Act, unless the same should expressly refer to 
     this section), any such amounts carried over shall not be 
     subject to any limitation on obligations from amounts 
     deposited to or available in the Fund.''.
       (e) Victims of September 11, 2001.--Amounts transferred to 
     the Crime Victims Fund for use in responding to the airplane 
     hijackings and terrorist acts (including any related search, 
     rescue, relief, assistance, or other similar activities) that 
     occurred on September 11, 2001, shall not be subject to any 
     limitation on obligations from amounts deposited to or 
     available in the Fund, notwithstanding--
       (1) section 619 of the Departments of Commerce, Justice, 
     and State, the Judiciary, and Related Agencies Appropriations 
     Act, 2001, and any similar limitation on Fund obligations in 
     such Act for Fiscal Year 2002; and
       (2) subsections (c) and (d) of section 1402 of the Victims 
     of Crime Act of 1984 (42 U.S.C. 10601).

     SEC. 622. CRIME VICTIM COMPENSATION.

       (a) Allocation of Funds for Compensation and Assistance.--
     Paragraphs (1) and (2) of section 1403(a) of the Victims of 
     Crime Act of 1984 (42 U.S.C. 10602(a)) are amended by 
     inserting ``in fiscal year 2002 and of 60 percent in 
     subsequent fiscal years'' after ``40 percent''.
       (b) Location of Compensable Crime.--Section 1403(b)(6)(B) 
     of the Victims of Crime Act of 1984 (42 U.S.C. 
     10602(b)(6)(B)) is amended by striking ``are outside the 
     United States (if the compensable crime is terrorism, as 
     defined in section 2331 of title 18), or''.
       (c) Relationship of Crime Victim Compensation to Means-
     Tested Federal Benefit Programs.--Section 1403 of the Victims 
     of Crime Act of 1984 (42 U.S.C. 10602) is amended by striking 
     subsection (c) and inserting the following:
       ``(c) Exclusion From Income, Resources, and Assets for 
     Purposes of Means Tests.--Notwithstanding any other law 
     (other than title IV of Public Law 107-42), for the purpose 
     of any maximum allowed income, resource, or asset eligibility 
     requirement in any Federal, State, or local government 
     program using Federal funds that provides medical or other 
     assistance (or payment or reimbursement of the cost of such 
     assistance), any amount of crime victim compensation that the 
     applicant receives through a crime victim compensation 
     program under this section shall not be included in the 
     income, resources, or assets of the applicant, nor shall that 
     amount reduce the amount of the assistance available to the 
     applicant from Federal, State, or local government programs 
     using Federal funds, unless the total amount of assistance 
     that the applicant receives from all such programs is 
     sufficient to fully compensate the applicant for losses 
     suffered as a result of the crime.''.
       (d) Definitions of ``Compensable Crime'' and ``State''.--
     Section 1403(d) of the Victims of Crime Act of 1984 (42 
     U.S.C. 10602(d)) is amended--
       (1) in paragraph (3), by striking ``crimes involving 
     terrorism,''; and
       (2) in paragraph (4), by inserting ``the United States 
     Virgin Islands,'' after ``the Commonwealth of Puerto Rico,''.
       (e) Relationship of Eligible Crime Victim Compensation 
     Programs to the September 11th Victim Compensation Fund.--
       (1) In general.--Section 1403(e) of the Victims of Crime 
     Act of 1984 (42 U.S.C. 10602(e)) is amended by inserting 
     ``including the program established under title IV of Public 
     Law 107-42,'' after ``Federal program,''.
       (2) Compensation.--With respect to any compensation payable 
     under title IV of Public Law 107-42, the failure of a crime 
     victim compensation program, after the effective date of 
     final regulations issued pursuant to section 407 of Public 
     Law 107-42, to provide compensation otherwise required 
     pursuant to section 1403 of the Victims of Crime Act of 1984 
     (42 U.S.C. 10602) shall not render that program ineligible 
     for future grants under the Victims of Crime Act of 1984.

     SEC. 623. CRIME VICTIM ASSISTANCE.

       (a) Assistance for Victims in the District of Columbia, 
     Puerto Rico, and Other Territories and Possessions.--Section 
     1404(a) of the Victims of Crime Act of 1984 (42 U.S.C. 
     10603(a)) is amended by adding at the end the following:
       ``(6) An agency of the Federal Government performing local 
     law enforcement functions in and on behalf of the District of 
     Columbia, the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, or any other territory or possession of the 
     United States may qualify as an eligible crime victim 
     assistance program for the purpose of grants under this 
     subsection, or for the purpose of grants under subsection 
     (c)(1).''.
       (b) Prohibition on Discrimination Against Certain 
     Victims.--Section 1404(b)(1) of the

[[Page 20430]]

     Victims of Crime Act of 1984 (42 U.S.C. 10603(b)(1)) is 
     amended--
       (1) in subparagraph (D), by striking ``and'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) does not discriminate against victims because they 
     disagree with the way the State is prosecuting the criminal 
     case.''.
       (c) Grants for Program Evaluation and Compliance Efforts.--
     Section 1404(c)(1)(A) of the Victims of Crime Act of 1984 (42 
     U.S.C. 10603(c)(1)(A)) is amended by inserting ``, program 
     evaluation, compliance efforts,'' after ``demonstration 
     projects''.
       (d) Allocation of Discretionary Grants.--Section 1404(c)(2) 
     of the Victims of Crime Act of 1984 (42 U.S.C. 10603(c)(2)) 
     is amended--
       (1) in subparagraph (A), by striking ``not more than'' and 
     inserting ``not less than''; and
       (2) in subparagraph (B), by striking ``not less than'' and 
     inserting ``not more than''.
       (e) Fellowships and Clinical Internships.--Section 
     1404(c)(3) of the Victims of Crime Act of 1984 (42 U.S.C. 
     10603(c)(3)) is amended--
       (1) in subparagraph (C), by striking ``and'' at the end;
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(E) use funds made available to the Director under this 
     subsection--
       ``(i) for fellowships and clinical internships; and
       ``(ii) to carry out programs of training and special 
     workshops for the presentation and dissemination of 
     information resulting from demonstrations, surveys, and 
     special projects.''.

     SEC. 624. VICTIMS OF TERRORISM.

       (a) Compensation and Assistance to Victims of Domestic 
     Terrorism.--Section 1404B(b) of the Victims of Crime Act of 
     1984 (42 U.S.C. 10603b(b)) is amended to read as follows:
       ``(b) Victims of Terrorism Within the United States.--The 
     Director may make supplemental grants as provided in section 
     1402(d)(5) to States for eligible crime victim compensation 
     and assistance programs, and to victim service organizations, 
     public agencies (including Federal, State, or local 
     governments) and nongovernmental organizations that provide 
     assistance to victims of crime, which shall be used to 
     provide emergency relief, including crisis response efforts, 
     assistance, compensation, training and technical assistance, 
     and ongoing assistance, including during any investigation or 
     prosecution, to victims of terrorist acts or mass violence 
     occurring within the United States.''.
       (b) Assistance to Victims of International Terrorism.--
     Section 1404B(a)(1) of the Victims of Crime Act of 1984 (42 
     U.S.C. 10603b(a)(1)) is amended by striking ``who are not 
     persons eligible for compensation under title VIII of the 
     Omnibus Diplomatic Security and Antiterrorism Act of 1986''.
       (c) Compensation to Victims of International Terrorism.--
     Section 1404C(b) of the Victims of Crime of 1984 (42 U.S.C. 
     10603c(b)) is amended by adding at the end the following: 
     ``The amount of compensation awarded to a victim under this 
     subsection shall be reduced by any amount that the victim 
     received in connection with the same act of international 
     terrorism under title VIII of the Omnibus Diplomatic Security 
     and Antiterrorism Act of 1986.''.

 TITLE VII--INCREASED INFORMATION SHARING FOR CRITICAL INFRASTRUCTURE 
                               PROTECTION

     SEC. 701. EXPANSION OF REGIONAL INFORMATION SHARING SYSTEM TO 
                   FACILITATE FEDERAL-STATE-LOCAL LAW ENFORCEMENT 
                   RESPONSE RELATED TO TERRORIST ATTACKS.

       Section 1301 of title I of the Omnibus Crime Control and 
     Safe Streets Act of 1968 (42 U.S.C. 3796h) is amended--
       (1) in subsection (a), by inserting ``and terrorist 
     conspiracies and activities'' after ``activities'';
       (2) in subsection (b)--
       (A) in paragraph (3), by striking ``and'' after the 
     semicolon;
       (B) by redesignating paragraph (4) as paragraph (5);
       (C) by inserting after paragraph (3) the following:
       ``(4) establishing and operating secure information sharing 
     systems to enhance the investigation and prosecution 
     abilities of participating enforcement agencies in addressing 
     multi-jurisdictional terrorist conspiracies and activities; 
     and (5)''; and
       (3) by inserting at the end the following:
       ``(d) Authorization of Appropriation to the Bureau of 
     Justice Assistance.--There are authorized to be appropriated 
     to the Bureau of Justice Assistance to carry out this section 
     $50,000,000 for fiscal year 2002 and $100,000,000 for fiscal 
     year 2003.''.

     TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM

     SEC. 801. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE 
                   AGAINST MASS TRANSPORTATION SYSTEMS.

       Chapter 97 of title 18, United States Code, is amended by 
     adding at the end the following:

     ``Sec. 1993. Terrorist attacks and other acts of violence 
       against mass transportation systems

       ``(a) General Prohibitions.--Whoever willfully--
       ``(1) wrecks, derails, sets fire to, or disables a mass 
     transportation vehicle or ferry;
       ``(2) places or causes to be placed any biological agent or 
     toxin for use as a weapon, destructive substance, or 
     destructive device in, upon, or near a mass transportation 
     vehicle or ferry, without previously obtaining the permission 
     of the mass transportation provider, and with intent to 
     endanger the safety of any passenger or employee of the mass 
     transportation provider, or with a reckless disregard for the 
     safety of human life;
       ``(3) sets fire to, or places any biological agent or toxin 
     for use as a weapon, destructive substance, or destructive 
     device in, upon, or near any garage, terminal, structure, 
     supply, or facility used in the operation of, or in support 
     of the operation of, a mass transportation vehicle or ferry, 
     without previously obtaining the permission of the mass 
     transportation provider, and knowing or having reason to know 
     such activity would likely derail, disable, or wreck a mass 
     transportation vehicle or ferry used, operated, or employed 
     by the mass transportation provider;
       ``(4) removes appurtenances from, damages, or otherwise 
     impairs the operation of a mass transportation signal system, 
     including a train control system, centralized dispatching 
     system, or rail grade crossing warning signal without 
     authorization from the mass transportation provider;
       ``(5) interferes with, disables, or incapacitates any 
     dispatcher, driver, captain, or person while they are 
     employed in dispatching, operating, or maintaining a mass 
     transportation vehicle or ferry, with intent to endanger the 
     safety of any passenger or employee of the mass 
     transportation provider, or with a reckless disregard for the 
     safety of human life;
       ``(6) commits an act, including the use of a dangerous 
     weapon, with the intent to cause death or serious bodily 
     injury to an employee or passenger of a mass transportation 
     provider or any other person while any of the foregoing are 
     on the property of a mass transportation provider;
       ``(7) conveys or causes to be conveyed false information, 
     knowing the information to be false, concerning an attempt or 
     alleged attempt being made or to be made, to do any act which 
     would be a crime prohibited by this subsection; or
       ``(8) attempts, threatens, or conspires to do any of the 
     aforesaid acts,

     shall be fined under this title or imprisoned not more than 
     twenty years, or both, if such act is committed, or in the 
     case of a threat or conspiracy such act would be committed, 
     on, against, or affecting a mass transportation provider 
     engaged in or affecting interstate or foreign commerce, or if 
     in the course of committing such act, that person travels or 
     communicates across a State line in order to commit such act, 
     or transports materials across a State line in aid of the 
     commission of such act.
       ``(b) Aggravated Offense.--Whoever commits an offense under 
     subsection (a) in a circumstance in which--
       ``(1) the mass transportation vehicle or ferry was carrying 
     a passenger at the time of the offense; or
       ``(2) the offense has resulted in the death of any person,

     shall be guilty of an aggravated form of the offense and 
     shall be fined under this title or imprisoned for a term of 
     years or for life, or both.
       ``(c) Definitions.--In this section--
       ``(1) the term `biological agent' has the meaning given to 
     that term in section 178(1) of this title;
       ``(2) the term `dangerous weapon' has the meaning given to 
     that term in section 930 of this title;
       ``(3) the term `destructive device' has the meaning given 
     to that term in section 921(a)(4) of this title;
       ``(4) the term `destructive substance' has the meaning 
     given to that term in section 31 of this title;
       ``(5) the term `mass transportation' has the meaning given 
     to that term in section 5302(a)(7) of title 49, United States 
     Code, except that the term shall include schoolbus, charter, 
     and sightseeing transportation;
       ``(6) the term `serious bodily injury' has the meaning 
     given to that term in section 1365 of this title;
       ``(7) the term `State' has the meaning given to that term 
     in section 2266 of this title; and
       ``(8) the term `toxin' has the meaning given to that term 
     in section 178(2) of this title.''.
       (f) Conforming Amendment.--The analysis of chapter 97 of 
     title 18, United States Code, is amended by adding at the 
     end:

``1993. Terrorist attacks and other acts of violence against mass 
              transportation systems.''.

     SEC. 802. DEFINITION OF DOMESTIC TERRORISM.

       (a) Domestic Terrorism Defined.--Section 2331 of title 18, 
     United States Code, is amended--
       (1) in paragraph (1)(B)(iii), by striking ``by 
     assassination or kidnapping'' and inserting ``by mass 
     destruction, assassination, or kidnapping'';

[[Page 20431]]

       (2) in paragraph (3), by striking ``and'';
       (3) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(5) the term `domestic terrorism' means activities that--
       ``(A) involve acts dangerous to human life that are a 
     violation of the criminal laws of the United States or of any 
     State;
       ``(B) appear to be intended--
       ``(i) to intimidate or coerce a civilian population;
       ``(ii) to influence the policy of a government by 
     intimidation or coercion; or
       ``(iii) to affect the conduct of a government by mass 
     destruction, assassination, or kidnapping; and
       ``(C) occur primarily within the territorial jurisdiction 
     of the United States.''.
       (b) Conforming Amendment.--Section 3077(1) of title 18, 
     United States Code, is amended to read as follows:
       ``(1) `act of terrorism' means an act of domestic or 
     international terrorism as defined in section 2331;''.

     SEC. 803. PROHIBITION AGAINST HARBORING TERRORISTS.

       (a) In General.--Chapter 113B of title 18, United States 
     Code, is amended by adding after section 2338 the following 
     new section:

     ``Sec. 2339. Harboring or concealing terrorists

       ``(a) Whoever harbors or conceals any person who he knows, 
     or has reasonable grounds to believe, has committed, or is 
     about to commit, an offense under section 32 (relating to 
     destruction of aircraft or aircraft facilities), section 175 
     (relating to biological weapons), section 229 (relating to 
     chemical weapons), section 831 (relating to nuclear 
     materials), paragraph (2) or (3) of section 844(f) (relating 
     to arson and bombing of government property risking or 
     causing injury or death), section 1366(a) (relating to the 
     destruction of an energy facility), section 2280 (relating to 
     violence against maritime navigation), section 2332a 
     (relating to weapons of mass destruction), or section 2332b 
     (relating to acts of terrorism transcending national 
     boundaries) of this title, section 236(a) (relating to 
     sabotage of nuclear facilities or fuel) of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2284(a)), or section 46502 (relating 
     to aircraft piracy) of title 49, shall be fined under this 
     title or imprisoned not more than ten years, or both.''.
       ``(b) A violation of this section may be prosecuted in any 
     Federal judicial district in which the underlying offense was 
     committed, or in any other Federal judicial district as 
     provided by law.''.
       (b) Technical Amendment.--The chapter analysis for chapter 
     113B of title 18, United States Code, is amended by inserting 
     after the item for section 2338 the following:

``2339. Harboring or concealing terrorists.''.

     SEC. 804. JURISDICTION OVER CRIMES COMMITTED AT U.S. 
                   FACILITIES ABROAD.

       Section 7 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(9) With respect to offenses committed by or against a 
     national of the United States as that term is used in section 
     101 of the Immigration and Nationality Act--
       ``(A) the premises of United States diplomatic, consular, 
     military or other United States Government missions or 
     entities in foreign States, including the buildings, parts of 
     buildings, and land appurtenant or ancillary thereto or used 
     for purposes of those missions or entities, irrespective of 
     ownership; and
       ``(B) residences in foreign States and the land appurtenant 
     or ancillary thereto, irrespective of ownership, used for 
     purposes of those missions or entities or used by United 
     States personnel assigned to those missions or entities.

     Nothing in this paragraph shall be deemed to supersede any 
     treaty or international agreement with which this paragraph 
     conflicts. This paragraph does not apply with respect to an 
     offense committed by a person described in section 3261(a) of 
     this title.''.

     SEC. 805. MATERIAL SUPPORT FOR TERRORISM.

       (a) In General.--Section 2339A of title 18, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``, within the United States,'';
       (B) by inserting ``229,'' after ``175,'';
       (C) by inserting ``1993,'' after ``1992,'';
       (D) by inserting ``, section 236 of the Atomic Energy Act 
     of 1954 (42 U.S.C. 2284),'' after ``of this title'';
       (E) by inserting ``or 60123(b)'' after ``46502''; and
       (F) by inserting at the end the following: ``A violation of 
     this section may be prosecuted in any Federal judicial 
     district in which the underlying offense was committed, or in 
     any other Federal judicial district as provided by law.''; 
     and
       (2) in subsection (b)--
       (A) by striking ``or other financial securities'' and 
     inserting ``or monetary instruments or financial 
     securities''; and
       (B) by inserting ``expert advice or assistance,'' after 
     ``training,''.
       (b) Technical Amendment.--Section 1956(c)(7)(D) of title 
     18, United States Code, is amended by inserting ``or 2339B'' 
     after ``2339A''.

     SEC. 806. ASSETS OF TERRORIST ORGANIZATIONS.

       Section 981(a)(1) of title 18, United States Code, is 
     amended by inserting at the end the following:
       ``(G) All assets, foreign or domestic--
       ``(i) of any individual, entity, or organization engaged in 
     planning or perpetrating any act of domestic or international 
     terrorism (as defined in section 2331) against the United 
     States, citizens or residents of the United States, or their 
     property, and all assets, foreign or domestic, affording any 
     person a source of influence over any such entity or 
     organization;
       ``(ii) acquired or maintained by any person with the intent 
     and for the purpose of supporting, planning, conducting, or 
     concealing an act of domestic or international terrorism (as 
     defined in section 2331) against the United States, citizens 
     or residents of the United States, or their property; or
       ``(iii) derived from, involved in, or used or intended to 
     be used to commit any act of domestic or international 
     terrorism (as defined in section 2331) against the United 
     States, citizens or residents of the United States, or their 
     property.''.

     SEC. 807. TECHNICAL CLARIFICATION RELATING TO PROVISION OF 
                   MATERIAL SUPPORT TO TERRORISM.

       No provision of the Trade Sanctions Reform and Export 
     Enhancement Act of 2000 (title IX of Public Law 106-387) 
     shall be construed to limit or otherwise affect section 2339A 
     or 2339B of title 18, United States Code.

     SEC. 808. DEFINITION OF FEDERAL CRIME OF TERRORISM.

       Section 2332b of title 18, United States Code, is amended--
       (1) in subsection (f), by inserting ``and any violation of 
     section 351(e), 844(e), 844(f)(1), 956(b), 1361, 1366(b), 
     1366(c), 1751(e), 2152, or 2156 of this title,'' before ``and 
     the Secretary''; and
       (2) in subsection (g)(5)(B), by striking clauses (i) 
     through (iii) and inserting the following:
       ``(i) section 32 (relating to destruction of aircraft or 
     aircraft facilities), 37 (relating to violence at 
     international airports), 81 (relating to arson within special 
     maritime and territorial jurisdiction), 175 or 175b (relating 
     to biological weapons), 229 (relating to chemical weapons), 
     subsection (a), (b), (c), or (d) of section 351 (relating to 
     congressional, cabinet, and Supreme Court assassination and 
     kidnaping), 831 (relating to nuclear materials), 842(m) or 
     (n) (relating to plastic explosives), 844(f)(2) or (3) 
     (relating to arson and bombing of Government property risking 
     or causing death), 844(i) (relating to arson and bombing of 
     property used in interstate commerce), 930(c) (relating to 
     killing or attempted killing during an attack on a Federal 
     facility with a dangerous weapon), 956(a)(1) (relating to 
     conspiracy to murder, kidnap, or maim persons abroad), 
     1030(a)(1) (relating to protection of computers), 
     1030(a)(5)(A)(i) resulting in damage as defined in 
     1030(a)(5)(B)(ii) through (v) (relating to protection of 
     computers), 1114 (relating to killing or attempted killing of 
     officers and employees of the United States), 1116 (relating 
     to murder or manslaughter of foreign officials, official 
     guests, or internationally protected persons), 1203 (relating 
     to hostage taking), 1362 (relating to destruction of 
     communication lines, stations, or systems), 1363 (relating to 
     injury to buildings or property within special maritime and 
     territorial jurisdiction of the United States), 1366(a) 
     (relating to destruction of an energy facility), 1751(a), 
     (b), (c), or (d) (relating to Presidential and Presidential 
     staff assassination and kidnaping), 1992 (relating to 
     wrecking trains), 1993 (relating to terrorist attacks and 
     other acts of violence against mass transportation systems), 
     2155 (relating to destruction of national defense materials, 
     premises, or utilities), 2280 (relating to violence against 
     maritime navigation), 2281 (relating to violence against 
     maritime fixed platforms), 2332 (relating to certain 
     homicides and other violence against United States nationals 
     occurring outside of the United States), 2332a (relating to 
     use of weapons of mass destruction), 2332b (relating to acts 
     of terrorism transcending national boundaries), 2339 
     (relating to harboring terrorists), 2339A (relating to 
     providing material support to terrorists), 2339B (relating to 
     providing material support to terrorist organizations), or 
     2340A (relating to torture) of this title;
       ``(ii) section 236 (relating to sabotage of nuclear 
     facilities or fuel) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2284); or
       ``(iii) section 46502 (relating to aircraft piracy), the 
     second sentence of section 46504 (relating to assault on a 
     flight crew with a dangerous weapon), section 46505(b)(3) or 
     (c) (relating to explosive or incendiary devices, or 
     endangerment of human life by means of weapons, on aircraft), 
     section 46506 if homicide or attempted homicide is involved 
     (relating to application of certain criminal laws to acts on 
     aircraft), or section 60123(b) (relating to destruction of 
     interstate gas or hazardous liquid pipeline facility) of 
     title 49.''.

     SEC. 809. NO STATUTE OF LIMITATION FOR CERTAIN TERRORISM 
                   OFFENSES.

       (a) In General.--Section 3286 of title 18, United States 
     Code, is amended to read as follows:

     ``Sec. 3286. Extension of statute of limitation for certain 
       terrorism offenses

       ``(a) Eight-Year Limitation.--Notwithstanding section 3282, 
     no person shall be

[[Page 20432]]

     prosecuted, tried, or punished for any noncapital offense 
     involving a violation of any provision listed in section 
     2332b(g)(5)(B), or a violation of section 112, 351(e), 1361, 
     or 1751(e) of this title, or section 46504, 46505, or 46506 
     of title 49, unless the indictment is found or the 
     information is instituted within 8 years after the offense 
     was committed. Notwithstanding the preceding sentence, 
     offenses listed in section 3295 are subject to the statute of 
     limitations set forth in that section.
       ``(b) No Limitation.--Notwithstanding any other law, an 
     indictment may be found or an information instituted at any 
     time without limitation for any offense listed in section 
     2332b(g)(5)(B), if the commission of such offense resulted 
     in, or created a forseeable risk of, death or serious bodily 
     injury to another person.''.
       (b) Application.--The amendments made by this section shall 
     apply to the prosecution of any offense committed before, on, 
     or after the date of the enactment of this section.

     SEC. 810. ALTERNATE MAXIMUM PENALTIES FOR TERRORISM OFFENSES.

       (a) Arson.--Section 81 of title 18, United States Code, is 
     amended in the second undesignated paragraph by striking 
     ``not more than twenty years'' and inserting ``for any term 
     of years or for life''.
       (b) Destruction of an Energy Facility.--Section 1366 of 
     title 18, United States Code, is amended--
       (1) in subsection (a), by striking ``ten'' and inserting 
     ``20''; and
       (2) by adding at the end the following:
       ``(d) Whoever is convicted of a violation of subsection (a) 
     or (b) that has resulted in the death of any person shall be 
     subject to imprisonment for any term of years or life.''.
       (c) Material Support to Terrorists.--Section 2339A(a) of 
     title 18, United States Code, is amended--
       (1) by striking ``10'' and inserting ``15''; and
       (2) by striking the period and inserting ``, and, if the 
     death of any person results, shall be imprisoned for any term 
     of years or for life.''.
       (d) Material Support to Designated Foreign Terrorist 
     Organizations.--Section 2339B(a)(1) of title 18, United 
     States Code, is amended--
       (1) by striking ``10'' and inserting ``15''; and
       (2) by striking the period after ``or both'' and inserting 
     ``, and, if the death of any person results, shall be 
     imprisoned for any term of years or for life.''.
       (e) Destruction of National-Defense Materials.--Section 
     2155(a) of title 18, United States Code, is amended--
       (1) by striking ``ten'' and inserting ``20''; and
       (2) by striking the period at the end and inserting ``, 
     and, if death results to any person, shall be imprisoned for 
     any term of years or for life.''.
       (f) Sabotage of Nuclear Facilities or Fuel.--Section 236 of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2284), is amended--
       (1) by striking ``ten'' each place it appears and inserting 
     ``20'';
       (2) in subsection (a), by striking the period at the end 
     and inserting ``, and, if death results to any person, shall 
     be imprisoned for any term of years or for life.''; and
       (3) in subsection (b), by striking the period at the end 
     and inserting ``, and, if death results to any person, shall 
     be imprisoned for any term of years or for life.''.
       (g) Special Aircraft Jurisdiction of the United States.--
     Section 46505(c) of title 49, United States Code, is 
     amended--
       (1) by striking ``15'' and inserting ``20''; and
       (2) by striking the period at the end and inserting ``, 
     and, if death results to any person, shall be imprisoned for 
     any term of years or for life.''.
       (h) Damaging or Destroying an Interstate Gas or Hazardous 
     Liquid Pipeline Facility.--Section 60123(b) of title 49, 
     United States Code, is amended--
       (1) by striking ``15'' and inserting ``20''; and
       (2) by striking the period at the end and inserting ``, 
     and, if death results to any person, shall be imprisoned for 
     any term of years or for life.''.

     SEC. 811. PENALTIES FOR TERRORIST CONSPIRACIES.

       (a) Arson.--Section 81 of title 18, United States Code, is 
     amended in the first undesignated paragraph--
       (1) by striking ``, or attempts to set fire to or burn''; 
     and
       (2) by inserting ``or attempts or conspires to do such an 
     act,'' before ``shall be imprisoned''.
       (b) Killings in Federal Facilities.--Section 930(c) of 
     title 18, United States Code, is amended--
       (1) by striking ``or attempts to kill'';
       (2) by inserting ``or attempts or conspires to do such an 
     act,'' before ``shall be punished''; and
       (3) by striking ``and 1113'' and inserting ``1113, and 
     1117''.
       (c) Communications Lines, Stations, or Systems.--Section 
     1362 of title 18, United States Code, is amended in the first 
     undesignated paragraph--
       (1) by striking ``or attempts willfully or maliciously to 
     injure or destroy''; and
       (2) by inserting ``or attempts or conspires to do such an 
     act,'' before ``shall be fined''.
       (d) Buildings or Property Within Special Maritime and 
     Territorial Jurisdiction.--Section 1363 of title 18, United 
     States Code, is amended--
       (1) by striking ``or attempts to destroy or injure''; and
       (2) by inserting ``or attempts or conspires to do such an 
     act,'' before ``shall be fined'' the first place it appears.
       (e) Wrecking Trains.--Section 1992 of title 18, United 
     States Code, is amended by adding at the end the following:
       ``(c) A person who conspires to commit any offense defined 
     in this section shall be subject to the same penalties (other 
     than the penalty of death) as the penalties prescribed for 
     the offense, the commission of which was the object of the 
     conspiracy.''.
       (f) Material Support to Terrorists.--Section 2339A of title 
     18, United States Code, is amended by inserting ``or attempts 
     or conspires to do such an act,'' before ``shall be fined''.
       (g) Torture.--Section 2340A of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(c) Conspiracy.--A person who conspires to commit an 
     offense under this section shall be subject to the same 
     penalties (other than the penalty of death) as the penalties 
     prescribed for the offense, the commission of which was the 
     object of the conspiracy.''.
       (h) Sabotage of Nuclear Facilities or Fuel.--Section 236 of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2284), is amended--
       (1) in subsection (a)--
       (A) by striking ``, or who intentionally and willfully 
     attempts to destroy or cause physical damage to'';
       (B) in paragraph (4), by striking the period at the end and 
     inserting a comma; and
       (C) by inserting ``or attempts or conspires to do such an 
     act,'' before ``shall be fined''; and
       (2) in subsection (b)--
       (A) by striking ``or attempts to cause''; and
       (B) by inserting ``or attempts or conspires to do such an 
     act,'' before ``shall be fined''.
       (i) Interference with Flight Crew Members and Attendants.--
     Section 46504 of title 49, United States Code, is amended by 
     inserting ``or attempts or conspires to do such an act,'' 
     before ``shall be fined''.
       (j) Special Aircraft Jurisdiction of the United States.--
     Section 46505 of title 49, United States Code, is amended by 
     adding at the end the following:
       ``(e) Conspiracy.--If two or more persons conspire to 
     violate subsection (b) or (c), and one or more of such 
     persons do any act to effect the object of the conspiracy, 
     each of the parties to such conspiracy shall be punished as 
     provided in such subsection.''.
       (k) Damaging or Destroying an Interstate Gas or Hazardous 
     Liquid Pipeline Facility.--Section 60123(b) of title 49, 
     United States Code, is amended--
       (1) by striking ``, or attempting to damage or destroy,''; 
     and
       (2) by inserting ``, or attempting or conspiring to do such 
     an act,'' before ``shall be fined''.

     SEC. 812. POST-RELEASE SUPERVISION OF TERRORISTS.

       Section 3583 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(j) Supervised Release Terms for Terrorism Predicates.--
     Notwithstanding subsection (b), the authorized term of 
     supervised release for any offense listed in section 
     2332b(g)(5)(B), the commission of which resulted in, or 
     created a foreseeable risk of, death or serious bodily injury 
     to another person, is any term of years or life.''.

     SEC. 813. INCLUSION OF ACTS OF TERRORISM AS RACKETEERING 
                   ACTIVITY.

       Section 1961(1) of title 18, United States Code, is 
     amended--
       (1) by striking ``or (F)'' and inserting ``(F)''; and
       (2) by inserting before the semicolon at the end the 
     following: ``, or (G) any act that is indictable under any 
     provision listed in section 2332b(g)(5)(B)''.

     SEC. 814. DETERRENCE AND PREVENTION OF CYBERTERRORISM.

       (a) Clarification of Protection of Protected Computers.--
     Section 1030(a)(5) of title 18, United States Code, is 
     amended--
       (1) by inserting ``(i)'' after ``(A)'';
       (2) by redesignating subparagraphs (B) and (C) as clauses 
     (ii) and (iii), respectively;
       (3) by adding ``and'' at the end of clause (iii), as so 
     redesignated; and
       (4) by adding at the end the following:
       ``(B) by conduct described in clause (i), (ii), or (iii) of 
     subparagraph (A), caused (or, in the case of an attempted 
     offense, would, if completed, have caused)--
       ``(i) loss to 1 or more persons during any 1-year period 
     (and, for purposes of an investigation, prosecution, or other 
     proceeding brought by the United States only, loss resulting 
     from a related course of conduct affecting 1 or more other 
     protected computers) aggregating at least $5,000 in value;
       ``(ii) the modification or impairment, or potential 
     modification or impairment, of the medical examination, 
     diagnosis, treatment, or care of 1 or more individuals;
       ``(iii) physical injury to any person;
       ``(iv) a threat to public health or safety; or
       ``(v) damage affecting a computer system used by or for a 
     government entity in furtherance of the administration of 
     justice, national defense, or national security;''.
       (b) Protection From Extortion.--Section 1030(a)(7) of title 
     18, United States Code, is amended by striking ``, firm, 
     association,

[[Page 20433]]

     educational institution, financial institution, government 
     entity, or other legal entity,''.
       (c) Penalties.--Section 1030(c) of title 18, United States 
     Code, is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (A) --
       (i) by inserting ``except as provided in subparagraph 
     (B),'' before ``a fine'';
       (ii) by striking ``(a)(5)(C)'' and inserting 
     ``(a)(5)(A)(iii)''; and
       (iii) by striking ``and' at the end;
       (B) in subparagraph (B), by inserting ``or an attempt to 
     commit an offense punishable under this subparagraph,'' after 
     ``subsection (a)(2),'' in the matter preceding clause (i); 
     and
       (C) in subparagraph (C), by striking ``and'' at the end;
       (2) in paragraph (3)--
       (A) by striking ``, (a)(5)(A), (a)(5)(B),'' both places it 
     appears; and
       (B) by striking ``(a)(5)(C)'' and inserting 
     ``(a)(5)(A)(iii)''; and
       (3) by adding at the end the following:
       ``(4)(A) a fine under this title, imprisonment for not more 
     than 10 years, or both, in the case of an offense under 
     subsection (a)(5)(A)(i), or an attempt to commit an offense 
     punishable under that subsection;
       ``(B) a fine under this title, imprisonment for not more 
     than 5 years, or both, in the case of an offense under 
     subsection (a)(5)(A)(ii), or an attempt to commit an offense 
     punishable under that subsection;
       ``(C) a fine under this title, imprisonment for not more 
     than 20 years, or both, in the case of an offense under 
     subsection (a)(5)(A)(i) or (a)(5)(A)(ii), or an attempt to 
     commit an offense punishable under either subsection, that 
     occurs after a conviction for another offense under this 
     section.''.
       (d) Definitions.--Section 1030(e) of title 18, United 
     States Code is amended--
       (1) in paragraph (2)(B), by inserting ``, including a 
     computer located outside the United States that is used in a 
     manner that affects interstate or foreign commerce or 
     communication of the United States'' before the semicolon;
       (2) in paragraph (7), by striking ``and'' at the end;
       (3) by striking paragraph (8) and inserting the following:
       ``(8) the term `damage' means any impairment to the 
     integrity or availability of data, a program, a system, or 
     information;'';
       (4) in paragraph (9), by striking the period at the end and 
     inserting a semicolon; and
       (5) by adding at the end the following:
       ``(10) the term `conviction' shall include a conviction 
     under the law of any State for a crime punishable by 
     imprisonment for more than 1 year, an element of which is 
     unauthorized access, or exceeding authorized access, to a 
     computer;
       ``(11) the term `loss' means any reasonable cost to any 
     victim, including the cost of responding to an offense, 
     conducting a damage assessment, and restoring the data, 
     program, system, or information to its condition prior to the 
     offense, and any revenue lost, cost incurred, or other 
     consequential damages incurred because of interruption of 
     service; and
       ``(12) the term `person' means any individual, firm, 
     corporation, educational institution, financial institution, 
     governmental entity, or legal or other entity.''.
       (e) Damages in Civil Actions.--Section 1030(g) of title 18, 
     United States Code is amended--
       (1) by striking the second sentence and inserting the 
     following: ``A civil action for a violation of this section 
     may be brought only if the conduct involves 1 of the factors 
     set forth in clause (i), (ii), (iii), (iv), or (v) of 
     subsection (a)(5)(B). Damages for a violation involving only 
     conduct described in subsection (a)(5)(B)(i) are limited to 
     economic damages.''; and
       (2) by adding at the end the following: ``No action may be 
     brought under this subsection for the negligent design or 
     manufacture of computer hardware, computer software, or 
     firmware.''.
       (f) Amendment of Sentencing Guidelines Relating to Certain 
     Computer Fraud and Abuse.--Pursuant to its authority under 
     section 994(p) of title 28, United States Code, the United 
     States Sentencing Commission shall amend the Federal 
     sentencing guidelines to ensure that any individual convicted 
     of a violation of section 1030 of title 18, United States 
     Code, can be subjected to appropriate penalties, without 
     regard to any mandatory minimum term of imprisonment.

     SEC. 815. ADDITIONAL DEFENSE TO CIVIL ACTIONS RELATING TO 
                   PRESERVING RECORDS IN RESPONSE TO GOVERNMENT 
                   REQUESTS.

       Section 2707(e)(1) of title 18, United States Code, is 
     amended by inserting after ``or statutory authorization'' the 
     following: ``(including a request of a governmental entity 
     under section 2703(f) of this title)''.

     SEC. 816. DEVELOPMENT AND SUPPORT OF CYBERSECURITY FORENSIC 
                   CAPABILITIES.

       (a) In General.--The Attorney General shall establish such 
     regional computer forensic laboratories as the Attorney 
     General considers appropriate, and provide support to 
     existing computer forensic laboratories, in order that all 
     such computer forensic laboratories have the capability--
       (1) to provide forensic examinations with respect to seized 
     or intercepted computer evidence relating to criminal 
     activity (including cyberterrorism);
       (2) to provide training and education for Federal, State, 
     and local law enforcement personnel and prosecutors regarding 
     investigations, forensic analyses, and prosecutions of 
     computer-related crime (including cyberterrorism);
       (3) to assist Federal, State, and local law enforcement in 
     enforcing Federal, State, and local criminal laws relating to 
     computer-related crime;
       (4) to facilitate and promote the sharing of Federal law 
     enforcement expertise and information about the 
     investigation, analysis, and prosecution of computer-related 
     crime with State and local law enforcement personnel and 
     prosecutors, including the use of multijurisdictional task 
     forces; and
       (5) to carry out such other activities as the Attorney 
     General considers appropriate.
       (b) Authorization of Appropriations.--
       (1) Authorization.--There is hereby authorized to be 
     appropriated in each fiscal year $50,000,000 for purposes of 
     carrying out this section.
       (2) Availability.--Amounts appropriated pursuant to the 
     authorization of appropriations in paragraph (1) shall remain 
     available until expended.

     SEC. 817. EXPANSION OF THE BIOLOGICAL WEAPONS STATUTE.

       Chapter 10 of title 18, United States Code, is amended--
       (1) in section 175--
       (A) in subsection (b)--
       (i) by striking ``does not include'' and inserting 
     ``includes'';
       (ii) by inserting ``other than'' after ``system for''; and
       (iii) by inserting ``bona fide research'' after 
     ``protective'';
       (B) by redesignating subsection (b) as subsection (c); and
       (C) by inserting after subsection (a) the following:
       ``(b) Additional Offense.--Whoever knowingly possesses any 
     biological agent, toxin, or delivery system of a type or in a 
     quantity that, under the circumstances, is not reasonably 
     justified by a prophylactic, protective, bona fide research, 
     or other peaceful purpose, shall be fined under this title, 
     imprisoned not more than 10 years, or both. In this 
     subsection, the terms `biological agent' and `toxin' do not 
     encompass any biological agent or toxin that is in its 
     naturally occurring environment, if the biological agent or 
     toxin has not been cultivated, collected, or otherwise 
     extracted from its natural source.'';
       (2) by inserting after section 175a the following:

     ``SEC. 175B. POSSESSION BY RESTRICTED PERSONS.

       ``(a) No restricted person described in subsection (b) 
     shall ship or transport interstate or foreign commerce, or 
     possess in or affecting commerce, any biological agent or 
     toxin, or receive any biological agent or toxin that has been 
     shipped or transported in interstate or foreign commerce, if 
     the biological agent or toxin is listed as a select agent in 
     subsection (j) of section 72.6 of title 42, Code of Federal 
     Regulations, pursuant to section 511(d)(l) of the 
     Antiterrorism and Effective Death Penalty Act of 1996 (Public 
     Law 104-132), and is not exempted under subsection (h) of 
     such section 72.6, or appendix A of part 72 of the Code of 
     Regulations.
       ``(b) In this section:
       ``(1) The term `select agent' does not include any such 
     biological agent or toxin that is in its naturally-occurring 
     environment, if the biological agent or toxin has not been 
     cultivated, collected, or otherwise extracted from its 
     natural source.
       ``(2) The term `restricted person' means an individual 
     who--
       ``(A) is under indictment for a crime punishable by 
     imprisonment for a term exceeding 1 year;
       ``(B) has been convicted in any court of a crime punishable 
     by imprisonment for a term exceeding 1 year;
       ``(C) is a fugitive from justice;
       ``(D) is an unlawful user of any controlled substance (as 
     defined in section 102 of the Controlled Substances Act (21 
     U.S.C. 802));
       ``(E) is an alien illegally or unlawfully in the United 
     States;
       ``(F) has been adjudicated as a mental defective or has 
     been committed to any mental institution;
       ``(G) is an alien (other than an alien lawfully admitted 
     for permanent residence) who is a national of a country as to 
     which the Secretary of State, pursuant to section 6(j) of the 
     Export Administration Act of 1979 (50 U.S.C. App. 2405(j)), 
     section 620A of chapter 1 of part M of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2371), or section 40(d) of chapter 3 
     of the Arms Export Control Act (22 U.S.C. 2780(d)), has made 
     a determination (that remains in effect) that such country 
     has repeatedly provided support for acts of international 
     terrorism; or
       ``(H) has been discharged from the Armed Services of the 
     United States under dishonorable conditions.
       ``(3) The term `alien' has the same meaning as in section 
     1010(a)(3) of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(3)).
       ``(4) The term `lawfully admitted for permanent residence' 
     has the same meaning as in section 101(a)(20) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(20)).

[[Page 20434]]

       ``(c) Whoever knowingly violates this section shall be 
     fined as provided in this title, imprisoned not more than 10 
     years, or both, but the prohibition contained in this section 
     shall not apply with respect to any duly authorized United 
     States governmental activity.''; and
       (3) in the chapter analysis, by inserting after the item 
     relating to section 175a the following:

``175b. Possession by restricted persons.''.

                    TITLE IX--IMPROVED INTELLIGENCE

     SEC. 901. RESPONSIBILITIES OF DIRECTOR OF CENTRAL 
                   INTELLIGENCE REGARDING FOREIGN INTELLIGENCE 
                   COLLECTED UNDER FOREIGN INTELLIGENCE 
                   SURVEILLANCE ACT OF 1978.

       Section 103(c) of the National Security Act of 1947 (50 
     U.S.C. 403-3(c)) is amended--
       (1) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (2) by inserting after paragraph (5) the following new 
     paragraph (6):
       ``(6) establish requirements and priorities for foreign 
     intelligence information to be collected under the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et 
     seq.), and provide assistance to the Attorney General to 
     ensure that information derived from electronic surveillance 
     or physical searches under that Act is disseminated so it may 
     be used efficiently and effectively for foreign intelligence 
     purposes, except that the Director shall have no authority to 
     direct, manage, or undertake electronic surveillance or 
     physical search operations pursuant to that Act unless 
     otherwise authorized by statute or executive order;''.

     SEC. 902. INCLUSION OF INTERNATIONAL TERRORIST ACTIVITIES 
                   WITHIN SCOPE OF FOREIGN INTELLIGENCE UNDER 
                   NATIONAL SECURITY ACT OF 1947.

       Section 3 of the National Security Act of 1947 (50 U.S.C. 
     401a) is amended--
       (1) in paragraph (2), by inserting before the period the 
     following: ``, or international terrorist activities''; and
       (2) in paragraph (3), by striking ``and activities 
     conducted'' and inserting ``, and activities conducted,''.

     SEC. 903. SENSE OF CONGRESS ON THE ESTABLISHMENT AND 
                   MAINTENANCE OF INTELLIGENCE RELATIONSHIPS TO 
                   ACQUIRE INFORMATION ON TERRORISTS AND TERRORIST 
                   ORGANIZATIONS.

       It is the sense of Congress that officers and employees of 
     the intelligence community of the Federal Government, acting 
     within the course of their official duties, should be 
     encouraged, and should make every effort, to establish and 
     maintain intelligence relationships with any person, entity, 
     or group for the purpose of engaging in lawful intelligence 
     activities, including the acquisition of information on the 
     identity, location, finances, affiliations, capabilities, 
     plans, or intentions of a terrorist or terrorist 
     organization, or information on any other person, entity, or 
     group (including a foreign government) engaged in harboring, 
     comforting, financing, aiding, or assisting a terrorist or 
     terrorist organization.

     SEC. 904. TEMPORARY AUTHORITY TO DEFER SUBMITTAL TO CONGRESS 
                   OF REPORTS ON INTELLIGENCE AND INTELLIGENCE-
                   RELATED MATTERS.

       (a) Authority To Defer.--The Secretary of Defense, Attorney 
     General, and Director of Central Intelligence each may, 
     during the effective period of this section, defer the date 
     of submittal to Congress of any covered intelligence report 
     under the jurisdiction of such official until February 1, 
     2002.
       (b) Covered Intelligence Report.--Except as provided in 
     subsection (c), for purposes of subsection (a), a covered 
     intelligence report is as follows:
       (1) Any report on intelligence or intelligence-related 
     activities of the United States Government that is required 
     to be submitted to Congress by an element of the intelligence 
     community during the effective period of this section.
       (2) Any report or other matter that is required to be 
     submitted to the Select Committee on Intelligence of the 
     Senate and Permanent Select Committee on Intelligence of the 
     House of Representatives by the Department of Defense or the 
     Department of Justice during the effective period of this 
     section.
       (c) Exception for Certain Reports.--For purposes of 
     subsection (a), any report required by section 502 or 503 of 
     the National Security Act of 1947 (50 U.S.C. 413a, 413b) is 
     not a covered intelligence report.
       (d) Notice to Congress.--Upon deferring the date of 
     submittal to Congress of a covered intelligence report under 
     subsection (a), the official deferring the date of submittal 
     of the covered intelligence report shall submit to Congress 
     notice of the deferral. Notice of deferral of a report shall 
     specify the provision of law, if any, under which the report 
     would otherwise be submitted to Congress.
       (e) Extension of Deferral.--(1) Each official specified in 
     subsection (a) may defer the date of submittal to Congress of 
     a covered intelligence report under the jurisdiction of such 
     official to a date after February 1, 2002, if such official 
     submits to the committees of Congress specified in subsection 
     (b)(2) before February 1, 2002, a certification that 
     preparation and submittal of the covered intelligence report 
     on February 1, 2002, will impede the work of officers or 
     employees who are engaged in counterterrorism activities.
       (2) A certification under paragraph (1) with respect to a 
     covered intelligence report shall specify the date on which 
     the covered intelligence report will be submitted to 
     Congress.
       (f) Effective Period.--The effective period of this section 
     is the period beginning on the date of the enactment of this 
     Act and ending on February 1, 2002.
       (g) Element of the Intelligence Community Defined.--In this 
     section, the term ``element of the intelligence community'' 
     means any element of the intelligence community specified or 
     designated under section 3(4) of the National Security Act of 
     1947 (50 U.S.C. 401a(4)).

     SEC. 905. DISCLOSURE TO DIRECTOR OF CENTRAL INTELLIGENCE OF 
                   FOREIGN INTELLIGENCE-RELATED INFORMATION WITH 
                   RESPECT TO CRIMINAL INVESTIGATIONS.

       (a) In General.--Title I of the National Security Act of 
     1947 (50 U.S.C. 402 et seq.) is amended--
       (1) by redesignating subsection 105B as section 105C; and
       (2) by inserting after section 105A the following new 
     section 105B:


       ``disclosure of foreign intelligence acquired in criminal 
     investigations; notice of criminal investigations of foreign 
                          intelligence sources

       ``Sec. 105B. (a) Disclosure of Foreign Intelligence.--(1) 
     Except as otherwise provided by law and subject to paragraph 
     (2), the Attorney General, or the head of any other 
     department or agency of the Federal Government with law 
     enforcement responsibilities, shall expeditiously disclose to 
     the Director of Central Intelligence, pursuant to guidelines 
     developed by the Attorney General in consultation with the 
     Director, foreign intelligence acquired by an element of the 
     Department of Justice or an element of such department or 
     agency, as the case may be, in the course of a criminal 
     investigation.
       ``(2) The Attorney General by regulation and in 
     consultation with the Director of Central Intelligence may 
     provide for exceptions to the applicability of paragraph (1) 
     for one or more classes of foreign intelligence, or foreign 
     intelligence with respect to one or more targets or matters, 
     if the Attorney General determines that disclosure of such 
     foreign intelligence under that paragraph would jeopardize an 
     ongoing law enforcement investigation or impair other 
     significant law enforcement interests.
       ``(b) Procedures for Notice of Criminal Investigations.--
     Not later than 180 days after the date of enactment of this 
     section, the Attorney General, in consultation with the 
     Director of Central Intelligence, shall develop guidelines to 
     ensure that after receipt of a report from an element of the 
     intelligence community of activity of a foreign intelligence 
     source or potential foreign intelligence source that may 
     warrant investigation as criminal activity, the Attorney 
     General provides notice to the Director of Central 
     Intelligence, within a reasonable period of time, of his 
     intention to commence, or decline to commence, a criminal 
     investigation of such activity.
       ``(c) Procedures.--The Attorney General shall develop 
     procedures for the administration of this section, including 
     the disclosure of foreign intelligence by elements of the 
     Department of Justice, and elements of other departments and 
     agencies of the Federal Government, under subsection (a) and 
     the provision of notice with respect to criminal 
     investigations under subsection (b).''.
       (b) Clerical Amendment.--The table of contents in the first 
     section of that Act is amended by striking the item relating 
     to section 105B and inserting the following new items:

``Sec. 105B. Disclosure of foreign intelligence acquired in criminal 
              investigations; notice of criminal investigations of 
              foreign intelligence sources.
``Sec. 105C. Protection of the operational files of the National 
              Imagery and Mapping Agency.''.

     SEC. 906. FOREIGN TERRORIST ASSET TRACKING CENTER.

       (a) Report on Reconfiguration.--Not later than February 1, 
     2002, the Attorney General, the Director of Central 
     Intelligence, and the Secretary of the Treasury shall jointly 
     submit to Congress a report on the feasibility and 
     desirability of reconfiguring the Foreign Terrorist Asset 
     Tracking Center and the Office of Foreign Assets Control of 
     the Department of the Treasury in order to establish a 
     capability to provide for the effective and efficient 
     analysis and dissemination of foreign intelligence relating 
     to the financial capabilities and resources of international 
     terrorist organizations.
       (b) Report Requirements.--(1) In preparing the report under 
     subsection (a), the Attorney General, the Secretary, and the 
     Director shall consider whether, and to what extent, the 
     capacities and resources of the Financial Crimes Enforcement 
     Center of the Department of the Treasury may be integrated 
     into the capability contemplated by the report.
       (2) If the Attorney General, Secretary, and the Director 
     determine that it is feasible and desirable to undertake the 
     reconfiguration

[[Page 20435]]

     described in subsection (a) in order to establish the 
     capability described in that subsection, the Attorney 
     General, the Secretary, and the Director shall include with 
     the report under that subsection a detailed proposal for 
     legislation to achieve the reconfiguration.

     SEC. 907. NATIONAL VIRTUAL TRANSLATION CENTER.

       (a) Report on Establishment.--(1) Not later than February 
     1, 2002, the Director of Central Intelligence shall, in 
     consultation with the Director of the Federal Bureau of 
     Investigation, submit to the appropriate committees of 
     Congress a report on the establishment and maintenance within 
     the intelligence community of an element for purposes of 
     providing timely and accurate translations of foreign 
     intelligence for all other elements of the intelligence 
     community. In the report, the element shall be referred to as 
     the ``National Virtual Translation Center''.
       (2) The report on the element described in paragraph (1) 
     shall discuss the use of state-of-the-art communications 
     technology, the integration of existing translation 
     capabilities in the intelligence community, and the 
     utilization of remote-connection capacities so as to minimize 
     the need for a central physical facility for the element.
       (b) Resources.--The report on the element required by 
     subsection (a) shall address the following:
       (1) The assignment to the element of a staff of individuals 
     possessing a broad range of linguistic and translation skills 
     appropriate for the purposes of the element.
       (2) The provision to the element of communications 
     capabilities and systems that are commensurate with the most 
     current and sophisticated communications capabilities and 
     systems available to other elements of intelligence 
     community.
       (3) The assurance, to the maximum extent practicable, that 
     the communications capabilities and systems provided to the 
     element will be compatible with communications capabilities 
     and systems utilized by the Federal Bureau of Investigation 
     in securing timely and accurate translations of foreign 
     language materials for law enforcement investigations.
       (4) The development of a communications infrastructure to 
     ensure the efficient and secure use of the translation 
     capabilities of the element.
       (c) Secure Communications.--The report shall include a 
     discussion of the creation of secure electronic 
     communications between the element described by subsection 
     (a) and the other elements of the intelligence community.
       (d) Definitions.--In this section:
       (1) Foreign intelligence.--The term ``foreign 
     intelligence'' has the meaning given that term in section 
     3(2) of the National Security Act of 1947 (50 U.S.C. 
     401a(2)).
       (2) Element of the intelligence community.--The term 
     ``element of the intelligence community'' means any element 
     of the intelligence community specified or designated under 
     section 3(4) of the National Security Act of 1947 (50 U.S.C. 
     401a(4)).

     SEC. 908. TRAINING OF GOVERNMENT OFFICIALS REGARDING 
                   IDENTIFICATION AND USE OF FOREIGN INTELLIGENCE.

       (a) Program Required.--The Attorney General shall, in 
     consultation with the Director of Central Intelligence, carry 
     out a program to provide appropriate training to officials 
     described in subsection (b) in order to assist such officials 
     in--
       (1) identifying foreign intelligence information in the 
     course of their duties; and
       (2) utilizing foreign intelligence information in the 
     course of their duties, to the extent that the utilization of 
     such information is appropriate for such duties.
       (b) Officials.--The officials provided training under 
     subsection (a) are, at the discretion of the Attorney General 
     and the Director, the following:
       (1) Officials of the Federal Government who are not 
     ordinarily engaged in the collection, dissemination, and use 
     of foreign intelligence in the performance of their duties.
       (2) Officials of State and local governments who encounter, 
     or may encounter in the course of a terrorist event, foreign 
     intelligence in the performance of their duties.
       (c) Authorization of Appropriations.--There is hereby 
     authorized to be appropriated for the Department of Justice 
     such sums as may be necessary for purposes of carrying out 
     the program required by subsection (a).

                         TITLE X--MISCELLANEOUS

     SEC. 1001. REVIEW OF THE DEPARTMENT OF JUSTICE.

       The Inspector General of the Department of Justice shall 
     designate one official who shall--
       (1) review information and receive complaints alleging 
     abuses of civil rights and civil liberties by employees and 
     officials of the Department of Justice;
       (2) make public through the Internet, radio, television, 
     and newspaper advertisements information on the 
     responsibilities and functions of, and how to contact, the 
     official; and
       (3) submit to the Committee on the Judiciary of the House 
     of Representatives and the Committee on the Judiciary of the 
     Senate on a semi-annual basis a report on the implementation 
     of this subsection and detailing any abuses described in 
     paragraph (1), including a description of the use of funds 
     appropriations used to carry out this subsection.

     SEC. 1002. SENSE OF CONGRESS.

       (a) Findings.--Congress finds that--
       (1) all Americans are united in condemning, in the 
     strongest possible terms, the terrorists who planned and 
     carried out the attacks against the United States on 
     September 11, 2001, and in pursuing all those responsible for 
     those attacks and their sponsors until they are brought to 
     justice;
       (2) Sikh-Americans form a vibrant, peaceful, and law-
     abiding part of America's people;
       (3) approximately 500,000 Sikhs reside in the United States 
     and are a vital part of the Nation;
       (4) Sikh-Americans stand resolutely in support of the 
     commitment of our Government to bring the terrorists and 
     those that harbor them to justice;
       (5) the Sikh faith is a distinct religion with a distinct 
     religious and ethnic identity that has its own places of 
     worship and a distinct holy text and religious tenets;
       (6) many Sikh-Americans, who are easily recognizable by 
     their turbans and beards, which are required articles of 
     their faith, have suffered both verbal and physical assaults 
     as a result of misguided anger toward Arab-Americans and 
     Muslim-Americans in the wake of the September 11, 2001 
     terrorist attack;
       (7) Sikh-Americans, as do all Americans, condemn acts of 
     prejudice against any American; and
       (8) Congress is seriously concerned by the number of crimes 
     against Sikh-Americans and other Americans all across the 
     Nation that have been reported in the wake of the tragic 
     events that unfolded on September 11, 2001.
       (b) Sense of Congress.--Congress--
       (1) declares that, in the quest to identify, locate, and 
     bring to justice the perpetrators and sponsors of the 
     terrorist attacks on the United States on September 11, 2001, 
     the civil rights and civil liberties of all Americans, 
     including Sikh-Americans, should be protected;
       (2) condemns bigotry and any acts of violence or 
     discrimination against any Americans, including Sikh-
     Americans;
       (3) calls upon local and Federal law enforcement 
     authorities to work to prevent crimes against all Americans, 
     including Sikh-Americans; and
       (4) calls upon local and Federal law enforcement 
     authorities to prosecute to the fullest extent of the law all 
     those who commit crimes.

     SEC. 1003. DEFINITION OF ``ELECTRONIC SURVEILLANCE''.

       Section 101(f)(2) of the Foreign Intelligence Surveillance 
     Act (50 U.S.C. 1801(f)(2)) is amended by adding at the end 
     before the semicolon the following: ``, but does not include 
     the acquisition of those communications of computer 
     trespassers that would be permissible under section 
     2511(2)(i) of title 18, United States Code''.

     SEC. 1004. VENUE IN MONEY LAUNDERING CASES.

       Section 1956 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(i) Venue.--(1) Except as provided in paragraph (2), a 
     prosecution for an offense under this section or section 1957 
     may be brought in--
       ``(A) any district in which the financial or monetary 
     transaction is conducted; or
       ``(B) any district where a prosecution for the underlying 
     specified unlawful activity could be brought, if the 
     defendant participated in the transfer of the proceeds of the 
     specified unlawful activity from that district to the 
     district where the financial or monetary transaction is 
     conducted.
       ``(2) A prosecution for an attempt or conspiracy offense 
     under this section or section 1957 may be brought in the 
     district where venue would lie for the completed offense 
     under paragraph (1), or in any other district where an act in 
     furtherance of the attempt or conspiracy took place.
       ``(3) For purposes of this section, a transfer of funds 
     from 1 place to another, by wire or any other means, shall 
     constitute a single, continuing transaction. Any person who 
     conducts (as that term is defined in subsection (c)(2)) any 
     portion of the transaction may be charged in any district in 
     which the transaction takes place.''.

     SEC. 1005. FIRST RESPONDERS ASSISTANCE ACT.

       (a) Grant Authorization.--The Attorney General shall make 
     grants described in subsections (b) and (c) to States and 
     units of local government to improve the ability of State and 
     local law enforcement, fire department and first responders 
     to respond to and prevent acts of terrorism.
       (b) Terrorism Prevention Grants.--Terrorism prevention 
     grants under this subsection may be used for programs, 
     projects, and other activities to--
       (1) hire additional law enforcement personnel dedicated to 
     intelligence gathering and analysis functions, including the 
     formation of full-time intelligence and analysis units;
       (2) purchase technology and equipment for intelligence 
     gathering and analysis functions, including wire-tap, pen 
     links, cameras, and computer hardware and software;

[[Page 20436]]

       (3) purchase equipment for responding to a critical 
     incident, including protective equipment for patrol officers 
     such as quick masks;
       (4) purchase equipment for managing a critical incident, 
     such as communications equipment for improved 
     interoperability among surrounding jurisdictions and mobile 
     command posts for overall scene management; and
       (5) fund technical assistance programs that emphasize 
     coordination among neighboring law enforcement agencies for 
     sharing resources, and resources coordination among law 
     enforcement agencies for combining intelligence gathering and 
     analysis functions, and the development of policy, 
     procedures, memorandums of understanding, and other best 
     practices.
       (c) Antiterrorism Training Grants.--Antiterrorism training 
     grants under this subsection may be used for programs, 
     projects, and other activities to address--
       (1) intelligence gathering and analysis techniques;
       (2) community engagement and outreach;
       (3) critical incident management for all forms of terrorist 
     attack;
       (4) threat assessment capabilities;
       (5) conducting followup investigations; and
       (6) stabilizing a community after a terrorist incident.
       (d) Application.--
       (1) In general.--Each eligible entity that desires to 
     receive a grant under this section shall submit an 
     application to the Attorney General, at such time, in such 
     manner, and accompanied by such additional information as the 
     Attorney General may reasonably require.
       (2) Contents.--Each application submitted pursuant to 
     paragraph (1) shall--
       (A) describe the activities for which assistance under this 
     section is sought; and
       (B) provide such additional assurances as the Attorney 
     General determines to be essential to ensure compliance with 
     the requirements of this section.
       (e) Minimum Amount.--If all applications submitted by a 
     State or units of local government within that State have not 
     been funded under this section in any fiscal year, that 
     State, if it qualifies, and the units of local government 
     within that State, shall receive in that fiscal year not less 
     than 0.5 percent of the total amount appropriated in that 
     fiscal year for grants under this section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated $25,000,000 for each of the fiscal years 
     2003 through 2007.

     SEC. 1006. INADMISSIBILITY OF ALIENS ENGAGED IN MONEY 
                   LAUNDERING.

       (a) Amendment to Immigration and Nationality Act.--Section 
     212(a)(2) of the Immigration and Nationality Act (8 U.S.C. 
     1182(a)(2)) is amended by adding at the end the following:
       ``(I) Money laundering.--Any alien--
       ``(i) who a consular officer or the Attorney General knows, 
     or has reason to believe, has engaged, is engaging, or seeks 
     to enter the United States to engage, in an offense which is 
     described in section 1956 or 1957 of title 18, United States 
     Code (relating to laundering of monetary instruments); or
       ``(ii) who a consular officer or the Attorney General knows 
     is, or has been, a knowing aider, abettor, assister, 
     conspirator, or colluder with others in an offense which is 
     described in such section;
     is inadmissible.''.
       (b) Money Laundering Watchlist.--Not later than 90 days 
     after the date of the enactment of this Act, the Secretary of 
     State shall develop, implement, and certify to the Congress 
     that there has been established a money laundering watchlist, 
     which identifies individuals worldwide who are known or 
     suspected of money laundering, which is readily accessible 
     to, and shall be checked by, a consular or other Federal 
     official prior to the issuance of a visa or admission to the 
     United States. The Secretary of State shall develop and 
     continually update the watchlist in cooperation with the 
     Attorney General, the Secretary of the Treasury, and the 
     Director of Central Intelligence.

     SEC. 1007. AUTHORIZATION OF FUNDS FOR DEA POLICE TRAINING IN 
                   SOUTH AND CENTRAL ASIA.

       In addition to amounts otherwise available to carry out 
     section 481 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2291), there is authorized to be appropriated to the 
     President not less than $5,000,000 for fiscal year 2002 for 
     regional antidrug training in the Republic of Turkey by the 
     Drug Enforcement Administration for police, as well as 
     increased precursor chemical control efforts in the South and 
     Central Asia region.

     SEC. 1008. FEASIBILITY STUDY ON USE OF BIOMETRIC IDENTIFIER 
                   SCANNING SYSTEM WITH ACCESS TO THE FBI 
                   INTEGRATED AUTOMATED FINGERPRINT IDENTIFICATION 
                   SYSTEM AT OVERSEAS CONSULAR POSTS AND POINTS OF 
                   ENTRY TO THE UNITED STATES.

       (a) In General.--The Attorney General, in consultation with 
     the Secretary of State and the Secretary of Transportation, 
     shall conduct a study on the feasibility of utilizing a 
     biometric identifier (fingerprint) scanning system, with 
     access to the database of the Federal Bureau of Investigation 
     Integrated Automated Fingerprint Identification System, at 
     consular offices abroad and at points of entry into the 
     United States to enhance the ability of State Department and 
     immigration officials to identify aliens who may be wanted in 
     connection with criminal or terrorist investigations in the 
     United States or abroad prior to the issuance of visas or 
     entry into the United States.
       (b) Report to Congress.--Not later than 90 days after the 
     date of the enactment of this Act, the Attorney General shall 
     submit a report summarizing the findings of the study 
     authorized under subsection (a) to the Committee on 
     International Relations and the Committee on the Judiciary of 
     the House of Representatives and the Committee on Foreign 
     Relations and the Committee on the Judiciary of the Senate.

     SEC. 1009. STUDY OF ACCESS.

       (a) In General.--Not later than 120 days after enactment of 
     this Act, the Federal Bureau of Investigation shall study and 
     report to Congress on the feasibility of providing to 
     airlines access via computer to the names of passengers who 
     are suspected of terrorist activity by Federal officials.
       (b) Authorization.--There are authorized to be appropriated 
     not more than $250,000 to carry out subsection (a).

     SEC. 1010. TEMPORARY AUTHORITY TO CONTRACT WITH LOCAL AND 
                   STATE GOVERNMENTS FOR PERFORMANCE OF SECURITY 
                   FUNCTIONS AT UNITED STATES MILITARY 
                   INSTALLATIONS.

       (a) In General.--Notwithstanding section 2465 of title 10, 
     United States Code, during the period of time that United 
     States armed forces are engaged in Operation Enduring 
     Freedom, and for the period of 180 days thereafter, funds 
     appropriated to the Department of Defense may be obligated 
     and expended for the purpose of entering into contracts or 
     other agreements for the performance of security functions at 
     any military installation or facility in the United States 
     with a proximately located local or State government, or 
     combination of such governments, whether or not any such 
     government is obligated to provide such services to the 
     general public without compensation.
       (b) Training.--Any contract or agreement entered into under 
     this section shall prescribe standards for the training and 
     other qualifications of local government law enforcement 
     personnel who perform security functions under this section 
     in accordance with criteria established by the Secretary of 
     the service concerned.
       (c) Report.--One year after the date of enactment of this 
     section, the Secretary of Defense shall submit a report to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives describing the use of the authority 
     granted under this section and the use by the Department of 
     Defense of other means to improve the performance of security 
     functions on military installations and facilities located 
     within the United States.

     SEC. 1011. CRIMES AGAINST CHARITABLE AMERICANS.

       (a) Short Title.--This section may be cited as the ``Crimes 
     Against Charitable Americans Act of 2001''.
       (b) Telemarketing and Consumer Fraud Abuse.--The 
     Telemarketing and Consumer Fraud and Abuse Prevention Act (15 
     U.S.C. 6101 et seq.) is amended--
       (1) in section 3(a)(2), by inserting after ``practices'' 
     the second place it appears the following: ``which shall 
     include fraudulent charitable solicitations, and'';
       (2) in section 3(a)(3)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(D) a requirement that any person engaged in 
     telemarketing for the solicitation of charitable 
     contributions, donations, or gifts of money or any other 
     thing of value, shall promptly and clearly disclose to the 
     person receiving the call that the purpose of the call is to 
     solicit charitable contributions, donations, or gifts, and 
     make such other disclosures as the Commission considers 
     appropriate, including the name and mailing address of the 
     charitable organization on behalf of which the solicitation 
     is made.''; and
       (3) in section 7(4), by inserting ``, or a charitable 
     contribution, donation, or gift of money or any other thing 
     of value,'' after ``services''.
       (c) Red Cross Members or Agents.--Section 917 of title 18, 
     United States Code, is amended by striking ``one year'' and 
     inserting ``5 years''.
       (d) Telemarketing Fraud.--Section 2325(1) of title 18, 
     United States Code, is amended--
       (1) in subparagraph (A), by striking ``or'' at the end;
       (2) in subparagraph (B), by striking the comma at the end 
     and inserting ``; or'';
       (3) by inserting after subparagraph (B) the following:
       ``(C) a charitable contribution, donation, or gift of money 
     or any other thing of value,''; and
       (4) in the flush language, by inserting ``or charitable 
     contributor, or donor'' after ``participant''.

     SEC. 1012. LIMITATION ON ISSUANCE OF HAZMAT LICENSES.

       (a) Limitation.--
       (1) In general.--Chapter 51 of title 49, United States 
     Code, is amended by inserting after section 5103 the 
     following new section:

[[Page 20437]]



     ``Sec. 5103a. Limitation on issuance of hazmat licenses

       ``(a) Limitation.--
       ``(1) Issuance of licenses.--A State may not issue to any 
     individual a license to operate a motor vehicle transporting 
     in commerce a hazardous material unless the Secretary of 
     Transportation has first determined, upon receipt of a 
     notification under subsection (c)(1)(B), that the individual 
     does not pose a security risk warranting denial of the 
     license.
       ``(2) Renewals included.--For the purposes of this section, 
     the term `issue', with respect to a license, includes renewal 
     of the license.
       ``(b) Hazardous Materials Described.--The limitation in 
     subsection (a) shall apply with respect to--
       ``(1) any material defined as a hazardous material by the 
     Secretary of Transportation; and
       ``(2) any chemical or biological material or agent 
     determined by the Secretary of Health and Human Services or 
     the Attorney General as being a threat to the national 
     security of the United States.
       ``(c) Background Records Check.--
       ``(1) In general.--Upon the request of a State regarding 
     issuance of a license described in subsection (a)(1) to an 
     individual, the Attorney General--
       ``(A) shall carry out a background records check regarding 
     the individual; and
       ``(B) upon completing the background records check, shall 
     notify the Secretary of Transportation of the completion and 
     results of the background records check.
       ``(2) Scope.--A background records check regarding an 
     individual under this subsection shall consist of the 
     following:
       ``(A) A check of the relevant criminal history data bases.
       ``(B) In the case of an alien, a check of the relevant data 
     bases to determine the status of the alien under the 
     immigration laws of the United States.
       ``(C) As appropriate, a check of the relevant international 
     data bases through Interpol-U.S. National Central Bureau or 
     other appropriate means.
       ``(d) Reporting Requirement.--Each State shall submit to 
     the Secretary of Transportation, at such time and in such 
     manner as the Secretary may prescribe, the name, address, and 
     such other information as the Secretary may require, 
     concerning--
       ``(1) each alien to whom the State issues a license 
     described in subsection (a); and
       ``(2) each other individual to whom such a license is 
     issued, as the Secretary may require.
       ``(e) Alien Defined.--In this section, the term `alien' has 
     the meaning given the term in section 101(a)(3) of the 
     Immigration and Nationality Act.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 5103 the following new item:

``5103a. Limitation on issuance of hazmat licenses.''.
       (b) Regulation of Driver Fitness.--Section 31305(a)(5) of 
     title 49, United States Code, is amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by inserting ``and'' at the end of subparagraph (B); 
     and
       (3) by adding at the end the following new subparagraph:
       ``(C) is licensed by a State to operate the vehicle after 
     having first been determined under section 5103a of this 
     title as not posing a security risk warranting denial of the 
     license.''.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated for the Department of Transportation and 
     the Department of Justice such amounts as may be necessary to 
     carry out section 5103a of title 49, United States Code, as 
     added by subsection (a).

     SEC. 1013. EXPRESSING THE SENSE OF THE SENATE CONCERNING THE 
                   PROVISION OF FUNDING FOR BIOTERRORISM 
                   PREPAREDNESS AND RESPONSE.

       (a) Findings.--The Senate finds the following:
       (1) Additional steps must be taken to better prepare the 
     United States to respond to potential bioterrorism attacks.
       (2) The threat of a bioterrorist attack is still remote, 
     but is increasing for a variety of reasons, including--
       (A) public pronouncements by Osama bin Laden that it is his 
     religious duty to acquire weapons of mass destruction, 
     including chemical and biological weapons;
       (B) the callous disregard for innocent human life as 
     demonstrated by the terrorists' attacks of September 11, 
     2001;
       (C) the resources and motivation of known terrorists and 
     their sponsors and supporters to use biological warfare;
       (D) recent scientific and technological advances in agent 
     delivery technology such as aerosolization that have made 
     weaponization of certain germs much easier; and
       (E) the increasing access to the technologies and expertise 
     necessary to construct and deploy chemical and biological 
     weapons of mass destruction.
       (3) Coordination of Federal, State, and local terrorism 
     research, preparedness, and response programs must be 
     improved.
       (4) States, local areas, and public health officials must 
     have enhanced resources and expertise in order to respond to 
     a potential bioterrorist attack.
       (5) National, State, and local communication capacities 
     must be enhanced to combat the spread of chemical and 
     biological illness.
       (6) Greater resources must be provided to increase the 
     capacity of hospitals and local health care workers to 
     respond to public health threats.
       (7) Health care professionals must be better trained to 
     recognize, diagnose, and treat illnesses arising from 
     biochemical attacks.
       (8) Additional supplies may be essential to increase the 
     readiness of the United States to respond to a bio-attack.
       (9) Improvements must be made in assuring the safety of the 
     food supply.
       (10) New vaccines and treatments are needed to assure that 
     we have an adequate response to a biochemical attack.
       (11) Government research, preparedness, and response 
     programs need to utilize private sector expertise and 
     resources.
       (12) Now is the time to strengthen our public health system 
     and ensure that the United States is adequately prepared to 
     respond to potential bioterrorist attacks, natural infectious 
     disease outbreaks, and other challenges and potential threats 
     to the public health.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the United States should make a substantial new 
     investment this year toward the following:
       (1) Improving State and local preparedness capabilities by 
     upgrading State and local surveillance epidemiology, 
     assisting in the development of response plans, assuring 
     adequate staffing and training of health professionals to 
     diagnose and care for victims of bioterrorism, extending the 
     electronics communications networks and training personnel, 
     and improving public health laboratories.
       (2) Improving hospital response capabilities by assisting 
     hospitals in developing plans for a bioterrorist attack and 
     improving the surge capacity of hospitals.
       (3) Upgrading the bioterrorism capabilities of the Centers 
     for Disease Control and Prevention through improving rapid 
     identification and health early warning systems.
       (4) Improving disaster response medical systems, such as 
     the National Disaster Medical System and the Metropolitan 
     Medical Response System and Epidemic Intelligence Service.
       (5) Targeting research to assist with the development of 
     appropriate therapeutics and vaccines for likely bioterrorist 
     agents and assisting with expedited drug and device review 
     through the Food and Drug Administration.
       (6) Improving the National Pharmaceutical Stockpile program 
     by increasing the amount of necessary therapies (including 
     smallpox vaccines and other post-exposure vaccines) and 
     ensuring the appropriate deployment of stockpiles.
       (7) Targeting activities to increase food safety at the 
     Food and Drug Administration.
       (8) Increasing international cooperation to secure 
     dangerous biological agents, increase surveillance, and 
     retrain biological warfare specialists.

     SEC. 1014. GRANT PROGRAM FOR STATE AND LOCAL DOMESTIC 
                   PREPAREDNESS SUPPORT.

       (a) In General.--The Office for State and Local Domestic 
     Preparedness Support of the Office of Justice Programs shall 
     make a grant to each State, which shall be used by the State, 
     in conjunction with units of local government, to enhance the 
     capability of State and local jurisdictions to prepare for 
     and respond to terrorist acts including events of terrorism 
     involving weapons of mass destruction and biological, 
     nuclear, radiological, incendiary, chemical, and explosive 
     devices.
       (b) Use of Grant Amounts.--Grants under this section may be 
     used to purchase needed equipment and to provide training and 
     technical assistance to State and local first responders.
       (c) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section such sums as necessary for each of 
     fiscal years 2002 through 2007.
       (2) Limitations.--Of the amount made available to carry out 
     this section in any fiscal year not more than 3 percent may 
     be used by the Attorney General for salaries and 
     administrative expenses.
       (3) Minimum amount.--Each State shall be allocated in each 
     fiscal year under this section not less than 0.75 percent of 
     the total amount appropriated in the fiscal year for grants 
     pursuant to this section, except that the United States 
     Virgin Islands, America Samoa, Guam, and the Northern Mariana 
     Islands each shall be allocated 0.25 percent.

     SEC. 1015. EXPANSION AND REAUTHORIZATION OF THE CRIME 
                   IDENTIFICATION TECHNOLOGY ACT FOR ANTITERRORISM 
                   GRANTS TO STATES AND LOCALITIES.

       Section 102 of the Crime Identification Technology Act of 
     1998 (42 U.S.C. 14601) is amended--
       (1) in subsection (b)--
       (A) in paragraph (16), by striking ``and'' at the end;
       (B) in paragraph (17), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:

[[Page 20438]]

       ``(18) notwithstanding subsection (c), antiterrorism 
     purposes as they relate to any other uses under this section 
     or for other antiterrorism programs.''; and
       (2) in subsection (e)(1), by striking ``this section'' and 
     all that follows and inserting ``this section $250,000,000 
     for each of fiscal years 2002 through 2007.''.

     SEC. 1016. CRITICAL INFRASTRUCTURES PROTECTION.

       (a) Short Title.--This section may be cited as the 
     ``Critical Infrastructures Protection Act of 2001''.
       (b) Findings.--Congress makes the following findings:
       (1) The information revolution has transformed the conduct 
     of business and the operations of government as well as the 
     infrastructure relied upon for the defense and national 
     security of the United States.
       (2) Private business, government, and the national security 
     apparatus increasingly depend on an interdependent network of 
     critical physical and information infrastructures, including 
     telecommunications, energy, financial services, water, and 
     transportation sectors.
       (3) A continuous national effort is required to ensure the 
     reliable provision of cyber and physical infrastructure 
     services critical to maintaining the national defense, 
     continuity of government, economic prosperity, and quality of 
     life in the United States.
       (4) This national effort requires extensive modeling and 
     analytic capabilities for purposes of evaluating appropriate 
     mechanisms to ensure the stability of these complex and 
     interdependent systems, and to underpin policy 
     recommendations, so as to achieve the continuous viability 
     and adequate protection of the critical infrastructure of the 
     Nation.
       (c) Policy of the United States.--It is the policy of the 
     United States--
       (1) that any physical or virtual disruption of the 
     operation of the critical infrastructures of the United 
     States be rare, brief, geographically limited in effect, 
     manageable, and minimally detrimental to the economy, human 
     and government services, and national security of the United 
     States;
       (2) that actions necessary to achieve the policy stated in 
     paragraph (1) be carried out in a public-private partnership 
     involving corporate and non-governmental organizations; and
       (3) to have in place a comprehensive and effective program 
     to ensure the continuity of essential Federal Government 
     functions under all circumstances.
       (d) Establishment of National Competence for Critical 
     Infrastructure Protection.--
       (1) Support of critical infrastructure protection and 
     continuity by national infrastructure simulation and analysis 
     center.--There shall be established the National 
     Infrastructure Simulation and Analysis Center (NISAC) to 
     serve as a source of national competence to address critical 
     infrastructure protection and continuity through support for 
     activities related to counterterrorism, threat assessment, 
     and risk mitigation.
       (2) Particular support.--The support provided under 
     paragraph (1) shall include the following:
       (A) Modeling, simulation, and analysis of the systems 
     comprising critical infrastructures, including cyber 
     infrastructure, telecommunications infrastructure, and 
     physical infrastructure, in order to enhance understanding of 
     the large-scale complexity of such systems and to facilitate 
     modification of such systems to mitigate the threats to such 
     systems and to critical infrastructures generally.
       (B) Acquisition from State and local governments and the 
     private sector of data necessary to create and maintain 
     models of such systems and of critical infrastructures 
     generally.
       (C) Utilization of modeling, simulation, and analysis under 
     subparagraph (A) to provide education and training to 
     policymakers on matters relating to--
       (i) the analysis conducted under that subparagraph;
       (ii) the implications of unintended or unintentional 
     disturbances to critical infrastructures; and
       (iii) responses to incidents or crises involving critical 
     infrastructures, including the continuity of government and 
     private sector activities through and after such incidents or 
     crises.
       (D) Utilization of modeling, simulation, and analysis under 
     subparagraph (A) to provide recommendations to policymakers, 
     and to departments and agencies of the Federal Government and 
     private sector persons and entities upon request, regarding 
     means of enhancing the stability of, and preserving, critical 
     infrastructures.
       (3) Recipient of certain support.--Modeling, simulation, 
     and analysis provided under this subsection shall be 
     provided, in particular, to relevant Federal, State, and 
     local entities responsible for critical infrastructure 
     protection and policy.
       (e) Critical Infrastructure Defined.--In this section, the 
     term ``critical infrastructure'' means systems and assets, 
     whether physical or virtual, so vital to the United States 
     that the incapacity or destruction of such systems and assets 
     would have a debilitating impact on security, national 
     economic security, national public health or safety, or any 
     combination of those matters.
       (f) Authorization of Appropriations.--There is hereby 
     authorized for the Department of Defense for fiscal year 
     2002, $20,000,000 for the Defense Threat Reduction Agency for 
     activities of the National Infrastructure Simulation and 
     Analysis Center under this section in that fiscal year.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Wisconsin (Mr. Sensenbrenner) and the gentleman from Michigan (Mr. 
Conyers) each will control 20 minutes.
  The Chair recognizes the gentleman from Wisconsin (Mr. 
Sensenbrenner).
  Mr. SENSENBRENNER. Mr. Speaker, I ask unanimous consent that debate 
on this motion be extended by an additional 20 minutes, equally divided 
and controlled by the chairman and ranking minority member of the 
Committee on Financial Services.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Wisconsin?
  There was no objection.


                             General Leave

  Mr. SENSENBRENNER. 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 H.R. 3162, the bill 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Wisconsin?
  There was no objection.
  Mr. SENSENBRENNER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, today we have the duty and privilege to pass this 
historic legislation, the USA-PATRIOT Act of 2001, which was born of 
adversity and violent attack. This landmark legislation will provide 
law enforcement and intelligence agencies additional tools that are 
needed to address the threat of terrorism and to find and prosecute 
terrorist criminals.
  This legislation authorizes the sharing of information between 
criminal investigators and those engaged in foreign intelligence-
gathering. It provides for enhanced wiretap and surveillance authority. 
It brings the basic building blocks of a criminal investigation, pen 
registers and trap and trace provisions, into the 21st century to deal 
with e-mails and Internet communications.
  Mr. Speaker, this legislation is the result of bipartisan 
consultation and review. A version of this legislation was passed by 
the House Committee on the Judiciary 36 to nothing. The House then 
passed H.R. 2975 by a vote of 337 to 79. The House and Senate Judiciary 
Committees and the bipartisan leadership began a process last week to 
reconcile the differences between the House and Senate bills. This bill 
is the result of that process and was completed despite the closure of 
House and Senate offices due to the anthrax attack on the Capitol.
  The changes to the bill are few, but significant. First, the sunset 
provision in the House bill was modified to sunset in 4 years. 
Provisions of the original version expired in 5 years, and the Senate 
did not have a sunset provision at all. Also, the Senate bill contained 
revisions to the so-called McDade law. This compromise version does not 
contain those changes, and I agreed to review this subject in a 
different context.
  This bill also contains comprehensive money laundering provisions 
that will be discussed by my colleagues from the Committee on Financial 
Services. The House bill did not contain such provisions, although the 
House subsequently passed a separate bill.
  Regarding the information-sharing provisions, the Senate bill 
permitted law enforcement to share grand jury material with 
intelligence agencies without notice to a court. The House bill 
permitted such sharing only after prior authorization to the court. 
This bill allows the sharing of grand jury material, but the Department 
of Justice must give notice to the court after the disclosure.
  The legislation also contains a provision found in neither the House 
nor the Senate version, but directs the Department of Justice to file 
an ex parte and in camera notice with the court when the Government 
installs on an Internet Service Provider a device pursuant to a

[[Page 20439]]

lawful pen register or trap and trace order. This provision's author is 
the esteemed majority leader, the gentleman from Texas (Mr. Armey).
  This legislation also contains a number of provisions, including 
three authored by the gentleman from Illinois (Mr. Hyde) and one by the 
gentleman from Florida (Mr. Keller), which were in the House Committee 
on the Judiciary version of the bill, but not in the version passed on 
the floor. This bill also contains a number of provisions that have 
been worked out on both sides of the aisle in the other body.
  Regarding the bill's immigration provisions, the compromise 
legislation allows the Attorney General to delegate only to the Deputy 
Attorney General the ability to certify an alien as a terrorist. The 
House Committee on the Judiciary version of this bill contained this 
provision, but the Senate-passed bill did not, but allows such 
delegation to the Commissioner of the Immigration and Naturalization 
Service. In addition, the compromise requires the Attorney General to 
revisit every 6 months the detention of an alien who has been certified 
as an alien terrorist. The compromise also adds a provision authorizing 
the appropriation of over $36 million to implement as quickly as 
possible the foreign student tracking system that was created in 1996. 
Finally, this legislation contains important humanitarian relief 
originally contained in the House bill, but not the Senate version, for 
the families of immigrants killed in the terrorist attacks of September 
11.
  Mr. Speaker, this legislation is not perfect, and the process is not 
one that all will embrace. However, these are difficult times that 
require steadfast leadership and an expeditious response. The 
legislation is desperately needed, and the President has called on 
Congress to pass it now. I urge all Members to support this important 
antiterrorism legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CONYERS. Mr. Speaker, I yield myself 2 minutes.
  Mr. Speaker, I wanted to begin by pointing out that this is perhaps 
one of the most important measures that we will determine from the 
Committee on the Judiciary's point of view, because it is antiterrorist 
legislation that expands the law in many directions; and from our point 
of view, we have been trying to put safeguards around these expansions. 
We have dropped the two worst provisions from the administration 
proposal, the illegal use of foreign evidence and the pretrial 
restraint provision. I commend the gentleman from Wisconsin (Mr. 
Sensenbrenner), my chairman, who has worked night and day on this 
matter; and I think that in the overall, we have had good cooperation.
  The measure before us corrects unconstitutional immigration 
provisions. We have corrected the immigration provision that allows 
indefinite detention without evidence. We have modified or narrowed any 
number of other controversial provisions, more than a couple dozen. We 
have added a 4-year sunset provision for most of the surveillance 
operations. We have added a new Inspector General for Civil Liberties 
and Civil Rights inside the Department of Justice. We have new Federal 
tort relief for improper government release of wiretap information. We 
have added new resources to ease the delays in patrolling and 
protecting the northern border, and we have immigration relief for 
persons being sponsored by the victims of those in the September 11 
attack.
  Mr. Speaker, I will include for the Record at this point a section-
by-section analysis of the bill.

                      Section-by-Section Analysis

                  TITLE I--ENHANCING DOMESTIC SECURITY

       Section 101: Counterterrorism fund.--Establishes a 
     counterterrorism fund to rebuild any Justice Department 
     component that has been damaged or destroyed as a result of a 
     terrorism incident; provide support for investigations and to 
     pay terrorism-related rewards; and conduct terrorism threat 
     assessments. Not in Administration proposal
       Section 102: Sense of Congress condemning discrimination 
     against Arab and Muslim Americans.--Not in Administration 
     proposal
       Section 103: Increased funding for the FBI's technical 
     support center.--Authorizes $200 million for each of FY 2002, 
     2003, and 2004 for the technical support center. Not in 
     Administration proposal
       Section 104: Requests for military assistance to enforce 
     prohibition in certain emergencies.--Allows military to 
     assist state and local law enforcement with domestic chemical 
     weapons emergencies. Not in Administration proposal
       Section 105: Expansion of National Electronic Crime Task 
     Force Initiative.--Directs the Secret Service to develop a 
     national network with electronic crime task forces based on 
     the New York Electronic Crime Task Force model. Not in 
     Administration proposal
       Section 106: Presidential Authority.--Expands International 
     Economic Emergency Powers Act to allow the President to 
     confiscate and vest properties of an enemy when United States 
     is engaged in military hostilities or has been subject to an 
     attack by that enemy. It allows classified information, used 
     to make a determination regarding national security or 
     terrorism cases, to be submitted ex parte and in camera to 
     the reviewing court of such determinations. Same as 
     Administration Proposal.

               TITLE II--ENHANCED SURVEILLANCE PROCEDURES

       Section 201: Authority To Intercept Wire, Oral, and 
     Electronic Communications Relating to Terrorism.--Adds 
     terrorism offenses to the list of predicates for obtaining 
     title III wiretaps. Not in Administration proposal.
       Section 202: Authority To Intercept Wire, Oral, and 
     Electronic Communications Relating to Computer Fraud and 
     Abuse Offenses.--Adds computer fraud and abuse offenses to 
     the list of predicates for obtaining title III wiretaps. Not 
     in Administration proposal.
       Section 203: Authority To Share Criminal Investigative 
     Information.--Allows intelligence information obtained in 
     grand jury proceedings to be shared with any law enforcement, 
     intelligence, immigration, or national security personnel as 
     long as notice is given to the court after the disclosure. 
     Recipient can only use information in conduct of their duties 
     subject to disclosure limitations in current law. 
     Intelligence information obtained from wiretaps can be shared 
     with law enforcement, intelligence, immigration, or national 
     security personnel. Recipients can use the information only 
     in the conduct of their duties and are subject to the 
     limitations in current law of unauthorized disclosure of 
     wiretap information. Attorney General must establish 
     procedures for the release of this information in the case of 
     a U.S. person. Intelligence information obtained in 
     intelligence operations can be disclosed to intelligence 
     personnel in performance of their duties. Narrowed 
     Administration proposal to limit scope of personnel eligible 
     to receive information and other limitations noted above. In 
     case of grand jury information, limited proposal to require 
     notification to court after disclosure.
       Section 204: Clarification of Intelligence Exceptions From 
     Limitations on Interception and Disclosure of Wire, Oral, and 
     Electronic Communications.--Explicitly carves out foreign 
     intelligence surveillance operations from the protections of 
     ECPA. Same as Administration proposal.
       Section 205: Employment of Translators by the FBI.--
     Authorizes the FBI to expedite employment of translators. Not 
     in Administration proposal.
       Section 206: Roving Surveillance Authority Under FISA.--
     Expands FISA court orders to allow ``roving'' surveillance in 
     manner similar to Title III wiretaps. Same as Administration 
     proposal.
       Section 207: Duration of FISA Surveillance of Non-United 
     States Persons Who Are Agents of a Foreign Power.--Currently, 
     the duration for a FISA surveillance may initially be ordered 
     for no longer than 90 days but later can be extended to one 
     year. This section changes the initial period for electronic 
     surveillance from 90 to 120 days and extensions from 90 days 
     to one year; and for searches from 45 to 90 days. Narrower 
     than Administration proposal which sought to eliminate the 
     initial 90-day limitation and authorize surveillance for up 
     to one year from the outset.
       Section 208: Designation of Judges.--Increases number of 
     FISA judges from 7 to 11 and requires that at least 3 judges 
     reside within 20 miles of the District of Columbia. Not in 
     Administration proposal.
       Section 209: Seizure of Voice Mail Pursuant to Warrants.--
     Provides that voice mails can be accessed by the government 
     with a court order in the same way e-mails currently can be 
     accessed and authorizes nationwide service with a single 
     search warrant for voice mails. Same as Administration 
     proposal.
       Section 210: Scope of Subpoenas for Records of Electronic 
     Communications.--Broadens the types of records that law 
     enforcement can subpoena from electronic communications 
     service providers by requiring providers to disclose the 
     means and source of payment, including any bank account or 
     credit card numbers, pursuant to a subpoena. Same as 
     Administration proposal.
       Section 211: Clarification of Scope.--Broadens the scope of 
     the subscriber records disclosure statutes to treat cable 
     companies that provide Internet service the same as other 
     Internet Service Providers and telephone companies. Modified 
     Administration

[[Page 20440]]

     proposal to specify that targets do not receive advance 
     notice of wiretap and amends title 47 to accomplish same 
     purpose as administration proposal.
       Section 212: Emergency Disclosure of Electronic 
     Communications.--Permits Internet Service Providers to 
     disclosure voluntarily stored electronic communications of 
     subscribers in the event immediate danger or death or serious 
     bodily injury to a person requires such disclosure. Also 
     otherwise allows law enforcement to compel disclosure to 
     third parties using a court order or a search warrant. Same 
     as Administration proposal.
       Section 213: Authority for Delaying Notice of Execution or 
     a Warrant.--Broadens authority of law enforcement to delay 
     notification of search warrants in criminal investigation if 
     prior notification would have an adverse result and if 
     notification is given a reasonable period after the search. 
     Based on codification of Second Circuit decision. Narrower 
     than Administration proposal, which would have permitted 
     delay as law enforcement saw fit.
       Section 214: Pen Register and Trap and Trace Authority 
     under FISA.--Currently, when the Attorney General or a 
     designated attorney for the government applies for a pen 
     register or trap and trace device under FISA, the application 
     must include a certification by the applicant that (1) the 
     information obtained would be relevant to an on-going 
     intelligence investigation, and (2) the information 
     demonstrates that the phone covered was used in communication 
     with someone involved in terrorism or intelligence activities 
     that may violate U.S. criminal law or with a foreign power or 
     its agent whose communication is believed to concern 
     terrorism or intelligence activities that could violate U.S. 
     criminal laws. The conference report deletes second prong, 
     but limits the use of these tools to protection against 
     international terrorism or clandestine intelligence 
     activities and provide that the use of these tools may not be 
     based solely on First Amendment activities. Narrower than 
     Administration proposal, which would have simply removed 
     second prong.
       215: Access to Records and Other Items under FISA.--(1) 
     requires a FISA court order to obtain business records; (2) 
     limits the use of this authority to investigations to protect 
     against international terrorism or clandestine intelligence 
     activities; and (3) provides that investigations of U.S. 
     persons may not be based solely on First Amendment 
     activities. Administration had sought to substitute an 
     administrative subpoena requirement.
       216: Authorities Relating to the Use of Pen Register and 
     Trap and Trace Devices.--Extends the pen/trap provisions so 
     they apply not just to telephone communications but also to 
     Internet traffic, so long as they exclude ``content.'' 
     Excludes ISP's from liability, gives Federal courts the 
     authority to grant orders that are valid anywhere in the 
     United States instead of just their own jurisdictions, and 
     provides for a report to Congress on this ``Carnivore'' 
     device. Makes a number of improvements over Administration 
     proposal, including exclusion of content, exclusion of ISP 
     liability, and Carnivore report.
       217: Interception of Computer Trespasser Communications.--
     Allows persons ``acting under color of law'' to intercept 
     communications if the owner of a computer authorizes it, and 
     the person acting under color of law is acting pursuant to a 
     lawful investigation. Section 815 also excludes service 
     provider subscribers from definition of trespasser, limits 
     interception authority to only those communications through 
     the computer in question. None of the limitations described 
     in second sentence were included in Administration proposal.
       Section 218: Foreign Intelligence Information.--Permits 
     FISA surveillance and search requests if they are for a 
     ``significant'' intelligence gathering purpose (rather than 
     ``the'' purpose under current law). Narrower than 
     Administration proposal, which would have allowed FISA 
     surveillance if intelligence gathering was merely ``a'' 
     purpose.
       Section 219: Single Jurisdiction Search Warrants for 
     Terrorism.--Permits Federal judges to issue search warrants 
     having nationwide effect for investigations involving 
     terrorism. Same as Administration proposal.
       Section 220: Nationwide Service of Search Warrants for 
     Electronic Evidence.--Permits a single court having 
     jurisdiction over the offense to issue a search warrant for 
     e-mail that would be valid in anywhere in the United States. 
     Narrower than Administration proposal in that it limits forum 
     shopping problem by limiting to courts with jurisdiction over 
     the offense.
       Section 221: Trade Sanctions (IR Committee).--Adds Taliban 
     to list of entities potentially subject to sanctions and 
     retains congressional oversight in current law. Far narrower 
     than Administration proposal which would have undermined the 
     congressional approval requirement, conferring upon the 
     President control of agricultural and medical exports ``to 
     all designated terrorists and narcotics entities wherever 
     they are located.''
       Section 222: Assistance to Law Enforcement Agencies.--
     Prohibits technology mandates on entities to comply with this 
     Act. Provides for cost reimbursement of entities assisting 
     law enforcement with title III pen trap orders. This 
     safeguard was not in Administration Proposal.
       Section 223: Civil Liability for Certain Unauthorized 
     Disclosures.--Increases civil liability for unauthorized 
     disclosure of pen trap, wiretap, stored communications or 
     FISA information. Also requires administrative discipline of 
     officials who engage in such unauthorized disclosures. Rep. 
     Frank added this civil liberties safeguard pursuant to an 
     amendment.
       Section 224: Sunset.--201, 202, 203(b), 204, 206, 207, 209, 
     212, 214, 215, 217, 218, 220, will sunset in four years--at 
     the end December 31, 2005. Conference agreement to narrow 
     those investigations that survive sunset to particular 
     investigations based on offenses occurring prior to sunset. 
     No sunset provided in Administration proposal or Senate bill. 
     The four-year sunset is an improvement over the five-year 
     sunset in the House bill.
       Section 225: Immunity for Compliance with FISA Wiretap.--
     Provides immunity for civil liability from subscribers, 
     tenants, etc. for entities that comply with FISA wiretap 
     orders. Not in Administration proposal.
       Dropped Administration proposal allowing FBI to use wiretap 
     information on U.S. citizens it obtained overseas in 
     violation of the Fourth Amendment.

                  TITLE III--FINANCIAL INFRASTRUCTURE

       Other provisions to be supplied by Financial Services 
     conference. Provisions below from House Judiciary Committee 
     bill.
       Section 301: Laundering The Proceeds of Terrorism.--Expands 
     the scope of predicate offenses for laundering the proceeds 
     of terrorism to include ``providing material support or 
     resources to terrorist organizations,'' as that crime is 
     defined in 18 U.S.C. Sec. 2339B of the criminal code. Same as 
     Administration proposal.
       Section 302: Extraterritorial Jurisdiction [International 
     Relations Committee].--Applies the financial crimes 
     prohibitions to conduct committed abroad in situations where 
     the tools or proceeds of the offense pass through or are in 
     the United States. Same as Administration proposal.
       Dropped Administration proposal to allow broad disclosure 
     of tax information to Justice and Treasury Departments.
       Dropped Administration proposal allowing pre-trial 
     restraint in all criminal forfeiture cases.
       Dropped provision carving out tobacco companies from RICO 
     liability for foreign excise taxes.
       Dropped provision making it a criminal offense to 
     misrepresent your identification when opening bank account.

                    TITLE II--PROTECTING THE BORDER


               subtitle a--protecting the northern border

       Section 401: Ensuring Adequate Personnel on the Northern 
     Border.--Authorizes the waiver of any FTE cap on personnel 
     assigned to the INS to address the national security on the 
     Northern Border. This provision was added at the request of 
     Senator Leahy and Congressman Conyers to ensure the 
     protection of the U.S.-Canadian border.
       Section 402: Northern Border Personnel.--Authorizes the 
     appropriation of funds necessary to triple the number of 
     Border Patrol, INS and Customs Service personnel in each 
     state along the northern border. The bill also authorizes $50 
     million each to the INS and Customs Services for purposes of 
     making improvements in technology for monitoring the northern 
     border and acquiring additional equipment at the northern 
     border. This provision was added at the request of Senator 
     Leahy and Congressman Conyers to ensure the protection of the 
     U.S.-Canadian bordeer.
       Section 403: Requiring Sharing by the Federal Bureau of 
     Investigation of Certain Criminal Record Extracts with Other 
     Federal Agencies in Order to Enhance Border Security.--
     Requires the Justice Department and FBI to provide the State 
     Department and INS information contained in its National 
     Crime Information Center files to permit INS and State to 
     better determine whether a visa applicant has a criminal 
     history record. The bill retains the Administration's 
     proposal.
       Section 404: Limited Authority to Pay Overtime.--Strikes 
     certain prohibitions on the paying of overtime to INS 
     employees. This provision was added at the request of Senator 
     Leahy and Congressman Conyers to ensure the protection of the 
     U.S.-Canadian border.
       Section 405: Report on the Integrated Automated Fingerprint 
     Identification System for Points of Entry and Overseas 
     Consular Posts.--Requires the Justice Department to report to 
     Congress on the feasibility of enhancing the FBI's Integrated 
     Automated Fingerprint Identification System and other 
     identification systems. The bill retains the Administration's 
     proposal.


              subtitle b--enhanced immigration provisions

       Section 411: Definitions Relating to Terrorism.--Broadens 
     the terrorism ground of inadmissibility to include (a) any 
     representative of a political or social group that publicly 
     endorses terrorist activity in the United States, (b) a 
     person who uses his position of prominence within a country 
     to endorse terrorist activity, or persuade others to support 
     terrorist activity, (c) the spouses and children of persons 
     engaged in terrorism,

[[Page 20441]]

     and (d) any other person the Secretary of State or Attorney 
     General determines has been associated with a terrorist 
     organization and who intends to engage in activities that 
     could endanger the welfare, safety, or security of the United 
     States.
       This bill broadens the definition of ``terrorist activity'' 
     to include the use, not only of explosives and firearms, but 
     other dangerous devices as well. Further, it broadens the 
     definition of a terrorist ``engaging in a terrorist 
     activity'' to include anyone who affords material support to 
     an organization that the individual knows or should know is a 
     terrorist organization, regardless of whether or not the 
     purported purpose for the support is related to terrorism. It 
     also broadens the types of organizations that may be 
     designated or redesignated a foreign terrorist organization 
     by the Secretary of State to comport with definitions of 
     terrorism found elsewhere in the law.
       The bill limits the Administration's proposal on the 
     inadmissibility and deportability grounds for providing 
     material support, which are critical to protect people (such 
     as supporters of the IRA or ANC) who give or solicit funds 
     currently or in the past for humanitarian purposes without 
     any knowledge or intent that the funds be used for terrorist 
     activities. The bill makes it an inadmissible and deportable 
     offense for contributing funds or material support to, or 
     soliciting funds for or membership in, an organization that 
     has been designated as a terrorist organization by the 
     Secretary of state pursuant to 8 U.S.C. 1189 or by 
     publication in the Federal Register. In the case of non-
     designated terrorist organization, however, a limitation was 
     added whereby an alien is not inadmissible or deportable if 
     he demonstrates that he did not know or reasonably should not 
     have known that the funds, material support or solicitation 
     would further terrorist activity. Additionally, either the 
     Secretary of State or the Attorney General can waive this 
     ground of inadmissibility or deportability. The bill also 
     limits the retroactive application of this provision in that 
     a person who provides material support to a designated 
     organization prior to the time of its designation as a 
     terrorist organization shall be treated as if any material 
     support was provided to a non-designated organization.
       The bill also adds a waiver provision that permits the 
     Attorney General or consular officer to waive the bar to 
     admission for spouses and children if the person did not know 
     or should not reasonably have known that the principal alien 
     was engaged in terrorism or if the spouse or child has 
     renounced the activity causing the alien to be inadmissible.
       Section 412: Changes in Designation of Foreign Terrorist 
     Organizations.--Expands the ability of the Attorney General 
     to mandatorily detain those aliens that he certifies may pose 
     a threat to national security, pending the outcome of 
     criminal or removal proceedings. The bill completely revises 
     the Administration's proposal to better balance the law 
     enforcement needs of the Attorney General with the protection 
     of aliens' civil liberties.
       The Attorney General may detain a person he certifies as 
     suspected of involvement in terrorism. The standard of 
     certification that the Attorney General needs to meet is 
     increased to a showing of ``reasonable grounds to believe'' 
     that the alien is deportable or inadmissible as provided in 
     the terrorism provisions. Only the Attorney General or the 
     Deputy Attorney General has the authority to make a 
     certification under this provision. It is otherwise non-
     delegable to any other official (the original proposal 
     permitted the delegation of this new authority to numerous 
     Justice Department and INS officials).
       The Attorney General is now required to bring removal or 
     criminal charges against anyone detained under this section 
     within 7 days, eliminating the indefinite language in the 
     Administration's proposal. If an alien is not charged within 
     7 days he must be released. During removal or criminal 
     proceedings, the Attorney General must review the 
     appropriateness of the certification every 6 months.
       After criminal or removal proceedings are completed, an 
     alien must be removed from the country or released. In the 
     limited number of cases where a person is removable but 
     cannot be removed, the Attorney General must review every 6 
     months whether the person must be detained on the basis of 
     being a threat to the national security or the community. An 
     alien can only be detained for additional 6 month periods if 
     the release would threaten the national security or the 
     safety of the community.
       The bill strengthens the habeas corpus procedures to ensure 
     that the merits of the Attorney General's certification and 
     the criminal and removal proceedings are subject to judicial 
     review. The bill also ensures that judicial review is 
     conducted in proximity to where the alien is being held to 
     ensure adequate legal representation. Habeas corpus petitions 
     can be filed and heard in the Federal district court where 
     the alien is detained with any appeal to the D.C. Circuit 
     Court of Appeals.
       Section 413: Multilateral Cooperation Against Terrorists.--
     Enhances the Government's ability to combat terrorism and 
     crime worldwide by providing new exceptions to the laws 
     regarding disclosure of information from visa records. The 
     bill grants the Secretary of State discretion to provide such 
     information to foreign officials on a case-by-case basis for 
     the purpose of fighting international terrorism or other 
     crimes. It also allows the Secretary to provide countries 
     with which he negotiates specific agreements to have more 
     general access to information from the State Department's 
     lookout databases where the country will use such information 
     only to deny visas to persons seeking to enter its territory. 
     The bill retains the Administration's proposal.
       Section 414a: Visa Integrity and Security.--Includes a 
     sense of the Congress that in light of the terrorist attacks, 
     the Attorney General must expedite the implementation of the 
     integrated entry and exit data system authorized by Congress 
     in 1996. Not in Administration's proposal.
       Section 415: Participation of Office of Homeland Security 
     on Entry Task Force.--Includes the Office of Homeland 
     Security in the development and implementation of the 
     integrated entry and exit data system authorized by Congress 
     in 1996. Not in Administration's proposal.
       Section 416: Foreign Student Monitoring Program.--Requires 
     the Attorney General to fully implement and expand foreign 
     student monitoring program authorized by Congress in 1996. 
     Not in Administration's proposal.
       Section 417: Machine Readable Passports.--Requires the 
     Secretary of State to perform annual audits and report to 
     Congress on the implementation of the machine-readable 
     passport program. Not in Administration's proposal.
       Section 418: Prevention of Consulate Shopping.--Requires 
     the Secretary of State to review how consular officers issue 
     visas to determine if consular shopping is a problem. Not in 
     Administration's proposal.


    subtitle c--preservation of immigration benefits for victims of 
                               terrorism

       Adds new subtitle (sections 421-428) to the 
     Administration's proposal to preserve the immigration 
     benefits of the victims of the September 11th terrorist 
     attacks and their family members. For some families, spouses 
     and children may lose their immigration status due to the 
     death or serious injury of a family member. These family 
     members are facing deportation because they are out of 
     status: they no longer qualify for their current immigration 
     status or are no longer eligible to complete the application 
     process because their loved one was killed or injured in the 
     September 11 terrorist attack. Others are threatened with the 
     loss of their immigration status, through no fault of their 
     own, due to the disruption of communications and 
     transportation that has resulted directly from the terrorist 
     attacks. Because of these disruptions, people have been and 
     will be unable to meet important deadlines, which will mean 
     the loss of eligibility for certain benefits and the 
     inability to maintain lawful status, unless the law is 
     changed. The bill:
       Creates a new special immigrant status for people who were 
     in the process of securing permanent residence through a 
     family member who died, was disabled, or lost employment as a 
     result of the terrorist activities of September 11, 2001;
       Provides a temporary extension of status to people who are 
     present in the United States on a ``derivative status'' (the 
     spouse or minor child) of a non-immigrant who was killed or 
     injured on September 11, 2001;
       Provides remedies for people who will be adversely affected 
     or will lose their right to apply for benefits because of 
     their inability to meet certain deadlines through no fault of 
     their own and as a result of the September 11, 2001 terrorist 
     attack (visa waiver, diversity lottery, advance parole and 
     voluntary departure);
       Provides immigration relief to the widows/widowers and 
     orphan children of citizens and legal permanent residents who 
     were killed in the September 11 attacks by allowing 
     applications for permanent resident status to be adjudicated;
       Prevents children from aging out of eligibility for 
     immigration benefits where the delay was the result of the 
     September 11 attacks;
       Provides for temporary administrative relief to allow the 
     family of people who were killed or seriously injured in the 
     terrorist attacks who are not otherwise covered by this 
     subtitle; and
       Prohibits any benefits from being provided to anyone 
     culpable for the terrorist attacks on September 11 or any 
     family member of such person.
       These provisions were added at the request of Congressman 
     Conyers and Senator Kennedy.

         TITLE V--REMOVING OBSTACLES TO INVESTIGATING TERRORISM

       Section 501: Attorney General's Authority to Pay Rewards.--
     Ensures non-terrorism rewards are subject to budgetary caps. 
     From Leahy DOJ reauthorization bill, not in Administration's 
     proposal.
       Section 502: Secretary of State Rewards (IR Committee).--
     Amends the Department of State's reward authority so that 
     rewards may be offered for the identification or location of 
     the leaders of a terrorist organization, increases the 
     maximum amount of an

[[Page 20442]]

     award from $5 million to $10 million, and allows the 
     Secretary to further increase a reward up to $25 million if 
     the Secretary determines that offering the payment of such 
     additional amount is important to the national interest. Also 
     provides a sense of congress that the Secretary should offer 
     a $25 million award for Osama bin Laden and other leaders of 
     the September 11th attack. Broadens the AG's authority to 
     offer rewards without caps for information related to 
     terrorism. Based on Administration's proposal.
       Section 503: DNA Identification of Terrorists.--Requires 
     persons convicted of terrorism offenses also to submit to DNA 
     samples. Same as Administration proposal (modified to include 
     other crimes of violence).
       Section 504: Coordination with Law Enforcement.--Allows 
     Federal law enforcement conducting electronic surveillance or 
     physical searches to consult with other Federal law 
     enforcement officers to protect against hostile acts, 
     terrorism, or intelligence activities. Not in Administration 
     proposal.
       Section 505: Miscellaneous National-Security Authorities.--
     In counterintelligence investigations, the Director of the 
     FBI or his designee, not lower than the Deputy Assistant 
     Director, may request telephone, financial, or credit records 
     of an individual if he certifies that the information sought 
     is (1) relevant to an authorized foreign counterintelligence 
     investigation, and (2) that there are ``specific and 
     articulable'' facts finding that the person/entity from whom 
     the information is sought is a foreign power or its agent. 
     Based on Administration's proposal, but limited to telephone 
     records, financial and consumer reports.
       Section 506: Extension of Secret Service to coordinate with 
     Justice Department to investigate offenses against U.S. 
     government computers. Not in Administration proposal.
       Section 507: Disclosure of Educational Records (Education 
     and Workforce).--Allows the release of student education 
     records if it is determined by the Attorney General or 
     Secretary of Education (or their designee) that doing so 
     could reasonably be expected to assist in investigating or 
     preventing a federal terrorism offense or domestic or 
     international terrorism. Based on Administration's proposal, 
     but Ed and Workforce agreed that AAG must get court order to 
     obtain records and limited to terrorism cases.
       Section 508: Disclosure of NCES Information.--Same as 507, 
     but covers surveys conducted by the Education Department. 
     Based on Administration's proposal.

       TITLE VI--PROVIDING FOR VICTIMS AND PUBLIC SAFETY OFFICERS


         subtitle a--aid to families of public safety officers

       Section 611: Expedited Payment for Public School Officers 
     Involved in the Prevention Investigation, Rescue, or Recovery 
     Efforts Related to a Terrorist Attack.--Expedites payment of 
     benefits to victims, their families, and public safety 
     officers. Not in Administration proposal, added at the 
     request of Representative Nadler.
       Section 612: Technical Correction with Respect to Expedited 
     Payments for Heroic Public Safety Officers.--Makes technical 
     correction to Nadler bill, which passed into law in mid-
     September 2001. Not in Administration proposal, added at the 
     request of Representative Nadler.
       Section 613: Public Safety Officer Benefit Program Payment 
     Increase.--Increases public safety officer benefits from 
     $100,00 to $250,000. Not in Administration proposal.
       Section 614: Office of Justice Programs.--Adds to the list 
     of programs within OJP. Not in Administration proposal.


       subtitle b--amendments to the victims of crime act of 1984

       This subtitle makes changes to the administration of--and 
     authorizes additional funding for--the crime victims fund. 
     Not in Administration proposal.

                TITLE VI--INCREASED INFORMATION SHARING

       This Subtitle expands regional information sharing to 
     facilitate Federal-state-local law enforcement responses to 
     terrorism. Not in Administration's proposal.

     TITLE VIII--STRENGTHENING THE CRIMINAL LAWS AGAINST TERRORISM

       Section 801: Terrorist Attacks and Other Acts of Violence 
     Against Mass Transportation Systems.--Establishes a new 
     Federal offense for attacking a mass transportation system. 
     Not in Administration proposal.
       Section 802: Definition of Domestic Terrorism.--Creates a 
     definition for ``domestic terrorism'' for the limited purpose 
     of providing investigative authorities (i.e., court orders, 
     warrants, etc.) for acts of terrorism within the territorial 
     jurisdiction of the United States. Such offenses are those 
     that are ``(1) dangerous to human life and violate the 
     criminal laws of the United States or any state; and (2) 
     appear to be intended (or have the effect)--to intimate a 
     civilian population; influence government policy intimidation 
     or coercion; or affect government conduct by mass 
     destruction, assassination, or kidnapping (or a threat of).'' 
     Same as Administration proposal.
       Section 803: Prohibition Against Harboring Terrorists.--
     Makes it an offense when someone harbors or conceals another 
     they know or should have known had engaged in or was about to 
     engage in federal terrorism offenses. Based on 
     Administration's proposal except that the final bill removes 
     the suspicion prong that made it an offense to harbor someone 
     merely suspected of engaging in terrorism.
       Section 804: Jurisdiction over Crimes Committed at U.S. 
     Facilities Abroad.--Extends the special and maritime criminal 
     jurisdiction of the United States to offenses committed 
     abroad by or against U.S. nationals. Same as Administration 
     proposal except those actions involving military personnel 
     are excluded per Representative Scott's amendment.
       Section 805: Material Support for Terrorism.--Permits 
     prosecution under current crime of material support for 
     terrorism to occur in ``any Federal judicial district in 
     which the underlying offense was committed, or in any other 
     Federal judicial district as provided by law,'' and includes 
     the provision of ``monetary instruments'' as ``material 
     support.'' Same as Administration's proposal.
       Section 806: Assets of Terrorist Organizations.--Extends 
     forfeiture and confiscation authority to ``all assets, 
     foreign or domestic'' that are owned or controlled by ``any 
     person, entity or organization engaged in planning or 
     perpetuating any act of domestic terrorism or international 
     terrorism against the United States, citizens or residents . 
     . . or their property.'' Same as Administration proposal.
       Section 807: Technical Clarification Relating to Provision 
     of Material Support to Terrorism.--Makes clear that whoever 
     provides material support or resources to terrorists or 
     foreign terrorists organizations may be subject to criminal 
     liability under Sec. 2339A or Sec. 2339B. Moreover, proposed 
     section 407 of the Administration's legislation seemed to gut 
     the congressional approval requirement and confer upon the 
     President the independent power to impose agricultural and 
     medical sanctions on terrorists ``wherever they are 
     located.'' Same as Administration proposal.
       Section 808: Definition of Federal Crime of Terrorism.--
     Adds new highly egregious offenses to existing definition of 
     ``Federal crime of terrorism,'' thereby ensuring that 
     ``coercing government'' is an element of the offense along 
     with other predicates. Also, added predicates are narrowed to 
     those being the most egregious. Significantly narrower than 
     Administration's proposal, which would have added more 
     predicates and eliminated the requirements that the 
     government prove the crime was committed to influence 
     government. Final bill also eliminates freedom of press issue 
     that could have made press disclosure of covert agents a 
     terrorist offense.
       Section 809: No Statute of Limitation for Prosecuting 
     Terrorism Offense.--Provides that terrorism offenses may be 
     prosecuted without time limitations, however, more focused 
     list of offenses will continue to carry an 8-year statute of 
     limitations except where they resulted in, or created a risk 
     of, death or serious bodily injury. Administration proposal 
     did not include more focused list subject to 8-year statute 
     of limitation.
       Section 810: Alternative Maximum Penalties for Terrorism 
     Crimes.--Provides alternative maximum prison terms for 
     terrorism crimes, including imprisonment for any term of 
     years or for life. Based on Administration's proposal, except 
     modified to provide more measured increases in maximum 
     penalties where appropriate, including life imprisonment or 
     supervision only in cases in which the offense resulted in 
     death.
       Section 811: Penalties for Terrorist Conspiracies.--Adds a 
     new section to the terrorism chapter of the criminal code to 
     provide that the maximum penalties for conspiracies to commit 
     terrorism are equal to the maximum penalties authorized for 
     the objects of such conspiracies (similar approach is found 
     in the criminal code with respect to drug crimes). Based on 
     Administration proposal, except narrowed to add conspiracy 
     provisions only to a few criminal statutes where appropriate, 
     and to provide that the penalties for such conspiracies may 
     not include death.
       Section 812: Post-Release Supervision of Terrorists.--
     Authorizes longer supervision periods, including lifetime 
     supervision, for persons convicted of terrorism crimes (a 
     similar approach is found in the drug crimes statute, which 
     imposes a term of supervised release of at least 10 years, 
     instead of 5 years, in cases where there is a prior 
     conviction). Narrower than the Administration's proposal 
     because it contains more measured increases in maximum 
     penalties where appropriate, including life imprisonment or 
     supervision in cases in which the offense resulted in death.
       Section 813: Inclusion of Acts of Terrorism Crimes as 
     Racketeering Activity.--Provides that any terrorism-related 
     crimes can be RICO predicates. Same as Administration 
     proposal.
       Section 814: Deterrence and Prevention of Cyberterrorism.--
     Alters damage and civil liability triggers for computer 
     hacking offenses. Also eliminates mandatory minimums in 
     current law for computer hacking offenses. Not in 
     Administration proposal.
       Section 815: Additional Defense to Civil Actions Relating 
     to Preserving Records in Response to Government Requests.--
     Eliminates any ISP liability to customers for turning 
     customer records over to law enforcement pursuant to any 
     statutory authorization. Not in Administration proposal.

[[Page 20443]]

       Section 816: Development and support of Cybersecurity 
     Forensic Capabilities.--Requires the Attorney General to 
     establish regional computer forensic laboratories. Not in 
     Administration proposal.
       Section 817: Biological Weapons.--Makes it an offense for a 
     person to possess a biological weapon that is not reasonably 
     justified, under the circumstances, by a prophylactic, 
     protective, bona fide research, or other peaceful purpose. 
     Similar to Administration proposal except that provision 
     stating that government does not have to establish mens rea 
     of defendant has been removed in the conference report.

                    TITLE IX--IMPROVED INTELLIGENCE

       Not in Administration proposal:
       Section 901: Responsibilities of Director of Central 
     Intelligence Regarding Foreign Intelligence Collected under 
     FISA.--Authorizes the Director of the CIA to establish 
     requirements and priorities for collecting foreign 
     intelligence, and to provide assistance to the Attorney 
     General in ensuring that information derived from electronic 
     surveillance or physical searches is properly disseminated. 
     The DCI cannot direct, manage, or undertake electronic 
     surveillance or physical search operations unless otherwise 
     authorized by statute or executive order.
       Section 902: Inclusion of International Terrorist 
     Activities within Scope of Foreign Intelligence under the 
     National Security Act.--Includes international terrorist 
     activities within the scope of foreign intelligence under the 
     National Security Act.
       Section 903: Sense of Congress.--Sense of Congress on the 
     establishment of intelligence relationships to acquire 
     information on terrorists.
       Section 904: Temporary Authority to Defer Submittal to 
     Congress of Reports on Intelligence and Intelligence-Related 
     Matters.--Grants DCI temporary authority to delay submittal 
     of reports to Congress on intelligence matters.
       Section 905: Disclosure to Director of Central Intelligence 
     of Foreign Intelligence-Related information with Respect to 
     Criminal Investigations.--Requires the Attorney General to 
     disclose to the CIA Director foreign intelligence acquired by 
     the Justice Department in the course of a criminal 
     investigation, except when disclosing such information would 
     jeopardize an ongoing investigation.
       Section 906: Foreign Terrorist Asset Tracking Center.--
     Requires the DCI, the AG, and the Secretary of the Treasury 
     to report to Congress by February 1, 2002, on the 
     desirability of a Foreign Asset Tracking Center to track 
     terrorist assets.
       Section 907: National Virtual Translation Center.--Requires 
     the DCI and the FBI to report to Congress on the 
     establishment of a National Virtual Translation Center.
       Section 908: Training of Government Officials Regarding 
     Identification and Use of Foreign Intelligence.--Requires DCI 
     and AG to establish program to train officials to handle 
     foreign intelligence information.

                         TTLE X--MISCELLANEOUS

       Not in Administration proposal:
       Section 1001: Review of the Department of Justice.--
     Requires DOJ Inspector General to designate one official to 
     receive complaints of civil liberties and civil rights abuses 
     and to report such abuses to Congress semi-annually. Added at 
     Mr. Conyers' request.
  Mr. Speaker, I yield 4 minutes to the gentleman from Virginia (Mr. 
Scott), a member of the Committee on the Judiciary who has worked 
ceaselessly on this matter.
  Mr. SCOTT. Mr. Speaker, I thank the gentleman for yielding.
  First of all, I think it is appropriate to comment on the process by 
which the bill is coming to us. This is not the bill that was reported 
and deliberated on in the Committee on the Judiciary. It came to us 
late on the floor. No one has really had an opportunity to look at the 
bill to see what is in it since we have been out of our offices. The 
report has just come to us. It would be helpful if we would wait for 
some period of time so that we can at least review what we are voting 
on, but I guess that is not going to stop us, so here we are.
  First of all, this has limited to do with terrorism. This bill is 
general search warrant and wiretap law. It is not just limited to 
terrorism. Had it been limited to terrorism, this bill could have 
passed 3 or 4 weeks ago without much discussion, but we are talking 
about wiretapping law.
  Now, the present law under wiretap provides that you cannot wiretap 
until you have probable cause that a crime has been committed. Then you 
can get a wiretap order from a judge. There is an exception for Federal 
intelligence. It is a much lower standard, but you can only use the 
wiretap information, what you gain, in foreign intelligence. So law 
enforcement officials have no incentive to try to push the envelope 
using the foreign intelligence idea as a pretext excuse for getting 
wiretap orders, because if they find anything, under criminal law, they 
cannot use it anyway.
  This bill makes three significant changes. One, it reduces standards 
for getting a foreign intelligence wiretap from one where it is a 
primary, the reason you are getting it, to: it is a significant reason 
for getting the wiretap. Much less. Well, we wonder, if it is not the 
primary reason, why are you getting the wiretap?
  Second, it allows the roving wiretap, so once you find a target, if 
he is using cell phones, for example, you can go and find him wherever 
he is. Third, you can use the information in a criminal investigation. 
The combination gives us the situation where there is very little 
standard and one can essentially conduct a criminal investigation 
without probable cause.

                              {time}  1930

  If one has, for example, a target who is using cell phones and we get 
the wiretap, if he uses a pay phone, we can listen to anybody using a 
pay phone. If he is in a club or an organization, a business, one can 
go and tap the phones there. If he is visiting the Democratic National 
Headquarters, maybe one could tap all the phones there.
  I had an amendment that was not accepted that would have required the 
police, when they are listening in on these conversations, to stop 
listening when the target is not using the phone. When the target 
leaves the organization or leaves the building, stop listening.
  This amendment was not accepted, so we have a situation where we now 
have an incentive to plant these bugs all over the place, and one can 
use that information.
  If that bothers Members, if they mind the Federal Government 
listening in on private conversations, if one thinks there is something 
inherently wrong with the government listening in to innocent 
conversations, and now remember, for foreign intelligence one does not 
even need a crime to start the thing, it can be foreign intelligence, a 
trade deal or anything else, and one is listening to everybody's 
private conversations.
  There are other problems with the bill. There are provisions that 
allow detention under certain circumstances that may be indefinite.
  We expand the ability of the government to conduct secret searches, 
so-called sneak and peak, where we do not tell people we even 
investigated. One could start targeting domestic organizations, 
designate domestic groups as terrorist groups, and one could start 
getting the CIA into designating these groups as targets for criminal 
investigations.
  Mr. Speaker, there is a lot in this bill that we have not 
appropriately considered. That is why we need more time to think of it, 
because it goes way past terrorism. This is the way we are going to be 
conducting criminal investigations, and therefore, the bill ought to be 
defeated under suspension of the rules.
  The SPEAKER pro tempore (Mr. Sweeney). The gentleman from Ohio (Mr. 
Oxley) is recognized for 10 minutes.
  Mr. OXLEY. Mr. Speaker, I yield myself 4 minutes.
  Mr. Speaker, I rise in support of the legislation, particularly the 
provisions in title III which would represent the most comprehensive 
anti-money laundering legislation which the House has considered in 
more than a decade. The legislation gives the administration important 
new tools with which to wage a global financial war on terrorism, and 
to starve Osama bin Laden and others like him of the funding needed to 
commit their acts of evil.
  The bill that passed the House last week by a 412 to 1 vote has in my 
view been improved in conference with the other body. The legislation 
targets the specific channels used by terrorists to finance their 
operations in this country and globally, including bulk cash smuggling, 
international wire transfers to and from foreign banks, and using 
informal black market banking systems, such as the ancient network 
known as hawala.
  The bill also establishes a framework for an unprecedented public-
private

[[Page 20444]]

partnership that will have as its primary objective the identification, 
reporting, and disruption of financial transactions related to money 
laundering generally and terrorist activity specifically.
  Finally, the legislation gives the Secretary of the Treasury, in 
consultation with other government agencies, the power to impose 
countermeasures aimed at combatting overseas money laundering threats, 
particularly those emanating from so-called offshore secrecy havens.
  It has often been said that an effective international regime for 
thwarting money laundering and disrupting terrorist financing is only 
as strong as its weakest link. As long as there are jurisdictions that 
offer no-questions-asked banking and exert little or no regulatory 
oversight of their financial services sectors, international efforts to 
impede the flow of dirty money will never fully succeed.
  With this legislation, we take a critical step toward smoking 
terrorists and other criminal organizations out of the offshore 
financial bunkers that for too long have offered them safe haven.
  The money laundering portion of this legislation was introduced in 
the House on October 3, marked up by the Committee on Financial 
Services on October 11, and passed by the House on October 17.
  Obviously, to move such complex and far-reaching legislation through 
the process so quickly requires an extraordinary level of bipartisan 
cooperation. In that regard, I want to pay special tribute to the 
committee's ranking member, the gentleman from New York (Mr. LaFalce), 
and commend him for his tireless work in committee and in our dealings 
with the other body to get the strongest possible bill.
  I also want to thank Chairman Sarbanes, my counterpart in the Senate, 
and his staff, both for their good faith efforts to reconcile the House 
and Senate bills in negotiation late last week, and for their 
hospitality in hosting the House delegation in Senator Sarbanes' 
hideaway in the Capitol at a time when most of the Capitol complex was 
closed. While both the House and Senate were shut out of our office 
buildings, both bodies continued to work under less-than-ideal 
circumstances to get this critical piece of legislation to the 
President's desk this week.
  I also want to pay tribute to the gentleman from Wisconsin (Chairman 
Sensenbrenner) and the Committee on the Judiciary for their fine work 
on the antiterrorism legislation.
  Finally, let me also thank the administration for working closely 
with the committee to ensure that the new legal authorities that the 
executive branch will receive under this legislation are carefully 
tailored to meet the nature of the threat that our Nation now 
confronts.
  The bill that Members will have an opportunity to vote on later 
tomorrow is balanced, comprehensive, and bipartisan. It sends the 
strongest signal we can send to the terrorists and to those countries 
that offer them aid and comfort that the war against terrorism will be 
fought in the financial theater as aggressively as the war now being 
waged by our brave men and women in uniform.
  Mr. Speaker, I reserve the balance of my time.
  The SPEAKER pro tempore. The gentleman from New York (Mr. LaFalce) is 
recognized for 10 minutes.
  Mr. LaFalce. Mr. Speaker, I yield myself 5 minutes.
  Mr. LaFALCE. Mr. Speaker, the war against terrorism will not be won 
unless we cut off al-Qaeda and all terrorist groups from the funds that 
sustain their attacks against civilized humanity. We can do that.
  Title III of the PATRIOT Act provides the United States absolutely 
essential weapons in our fight to disrupt terrorist funding. Title III 
provides a comprehensive set of tough new anti-money laundering laws 
and strengthens existing anti-money laundering laws.
  The bill incorporates the legislation that I introduced in the last 
Congress and early in this Congress giving the Secretary of the 
Treasury increased authority to block transfers of funds into the 
United States financial system from foreign banking systems that are 
easily exploited by terrorists and criminal organizations because those 
foreign jurisdictions have weak or nonexistent anti-money laundering 
regimes.
  We have evidence indicating that bin Laden took advantage of weak 
regulatory systems overseas to funnel money through U.S. banks to his 
associates in the United States, money that was used to finance the 
September 11 attacks. We cannot allow the world's bank secrecy havens 
to become the port of entry into the United States banking system for 
terrorist funds.
  But, so long as some foreign banks are allowed to hide the identity 
of terrorists and narco lords, the legitimate global banking system 
will be vulnerable to exploitation by these groups. Our legislation, 
incorporated now in the PATRIOT Act, increases the power of the 
government to track terrorist and criminal money kept in offshore 
secrecy havens.
  We cannot succeed alone. All nations must have strong antiterrorist 
and anti-money laundering laws. The provisions of our bill give the 
United States new tools and leverage in our efforts to raise global 
anti-money laundering standards.
  The PATRIOT Act also takes aim at hawalas, the underground banking 
system that is used by international terrorists like al-Qaeda. Informal 
global money transmitting systems allow terrorists to send money around 
the world with little or no paper trail. Our PATRIOT Act reins in the 
operation of hawalas by requiring hawalas to register with our 
government or face criminal prosecution. Hence, we make unlicensed 
hawalas de facto illegal and de facto criminal.
  The bill also stiffens the penalty for smuggling cash in and out of 
the United States, which is something that a hawala operator will 
ultimately engage in at some point.
  Mr. Speaker, bin Laden has bragged that he knows how to exploit the 
gaps in the Western financial system. The PATRIOT Act is strong 
legislation that will enable us to close those gaps and enhance our 
fight against terrorists and criminals. It deserves everyone's support.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SENSENBRENNER. Mr. Speaker, I yield 2 minutes to the gentleman 
from Alabama (Mr. Bachus), who is a member of both the Committee on the 
Judiciary and Committee on Financial Services.
  Mr. BACHUS. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, we learned something 6 weeks ago. It was a very painful 
lesson. We learned that legislation was needed to provide law 
enforcement and intelligence additional tools that they needed to 
address the threat of terrorism and terrorists.
  Mr. Speaker, we may not have understood and appreciated the word 
``terrorism'' and what terrorists were before September 11, but we 
certainly do today. We know who they are, we know what they are capable 
of. We may not have appreciated the need for this legislation before 
September 11, but surely today we appreciate the need for this 
legislation and the urgency of such legislation.
  Mr. Speaker, we may not have thought too much about giving law 
enforcement stronger tools for combatting international terrorism 
before September 11, but today we think a lot about that. We realize 
that that needs to be done. We did not investigate terrorists and 
identify them on a real-time basis before September 11. We sometimes 
overlooked the urgency. We know that urgency today.
  Finally, Mr. Speaker, we now know that we need to cooperate not only 
between agencies, law enforcement agencies, but between countries and 
between the private sector and government to track terrorists, to track 
their assets, to monitor their activities. If we did not realize that 
before September 11, surely we know now the price we pay when they 
exploit our vulnerabilities. They exploited our vulnerabilities, our 
free society, and the losses were great. It is time to close those 
vulnerabilities.

[[Page 20445]]


  Mr. CONYERS. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Texas (Ms. Jackson-Lee), a distinguished member of the Committee on the 
Judiciary.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the ranking member for 
yielding time to me.
  Mr. Speaker, I think Americans know very well that character is 
judged not so much on how a man or woman acts in the good times, but 
how we act in the face of adversity. This country certainly has faced 
adversity over these last couple of weeks, and I am proud of what 
America has stood for.
  That is why I rise today with caution and concern regarding the new 
proposed Uniting and Strengthening America, the U.S.A. Act, not because 
I do not believe there should not be additional tools to help us fight 
against the horrific acts of terrorism, but because I believe in the 
face of adversity America should lift up its virtues of equality, 
justice, freedom, and the Bill of Rights.
  I am certainly glad to realize that some of the work of the Committee 
on the Judiciary, which I supported and which we voted out early on a 
legislative initiative that was voted 36 to 0, that in this new 
initiative we can see some of that work.
  I do believe that in making our country safe against terrorism, that 
we do not necessarily need to do away with due process, and that we 
should not target innocent people unfairly because of their race, 
color, sexual orientation, creed, gender, or religion.
  I support some of the provisions in this legislation and I hope to 
consider them overnight, because unfortunately, the process that 
brought this bill to the floor disturbs me.
  I offered an amendment that would allow detention cases to be brought 
in local courts, rather than just the District of Columbia. I am very 
gratified to know that it is in this bill. It means that people who 
have and need resources of their lawyers and need to have family 
members and witnesses do not have to travel to the District of 
Columbia.
  I am relieved that there is an immigration relief for persons being 
sponsored by victims who died on September 11, so those who were being 
sponsored, if their sponsor died, they can still access legalization.
  The bill also clarifies that the AG's new detention authority is 
limited to cases of terrorism, and detention cases must be reviewed 
every 6 months. That is a positive side.
  It is also good to know that the sunset provision has now been 
established not as an extended, unending 5-year period with the 
authority resting in the administration, but it is cut off at 4 years, 
so America knows that we are using these tools to help us fight 
terrorists but not fight Americans.
  But I am concerned, Mr. Speaker. I am concerned that the legislation 
still permits the Attorney General indefinitely to incarcerate or 
detain noncitizens based on mere suspicion, and to deny readmission to 
the United States of such noncitizens.
  I am also concerned that the AG and the Secretary of State has the 
power to incarcerate members of domestic organizations as terrorists. 
One might simply be paying dues and be declared part of a terrorist 
organization.
  It allows widespread investigation of Americans just on the basis of 
intelligence purposes. It allows searches of highly personal financial 
records. It allows student records to be searched.
  I would say this, Mr. Speaker: Let us show America's character and 
bring forth a bill that all of us will find a good balance on. We will 
review this bill, but I hope we will find an opportunity to vote on a 
good bill and provide the leadership that we need to lead.

                              {time}  1945

  Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from New 
Jersey (Mrs. Roukema), the vice chair of the committee.
  Mrs. ROUKEMA. Mr. Speaker, I thank the gentleman from Ohio (Mr. 
Oxley) for yielding the time. I rise in strong support of this 
legislation today.
  Many of us in this Chamber have worked for a number of years to 
provide the law enforcement tools that we need to fight the drug trade, 
money launderers, and terrorists; and in the wake of September 11, the 
terrorist attacks, this has never been more important. And indeed, we 
may soon learn that the anthrax attacks are financed by the same money 
sources. We do not know that yet.
  The point is that, as has already been outlined, particularly by the 
gentleman from New York (Mr. LaFalce), I want to commend him for 
stating some of the specifics of this legislation. He has been a 
leader, and we have worked together on this, and whether we are talking 
about the bill prohibiting correspondent banking privileges for 
offshore shell banks and authorizes the Secretary of the Treasury to 
take special measures if a foreign country or bank is deemed to present 
a money laundering threat, the gentleman from New York (Mr. LaFalce) 
went into great detail on that, and I want to associate myself with his 
remarks.
  The bill is not perfect. I am sorry that, for example, we excluded 
making it a crime to smuggle over $10,000 interstate. We included it 
for overseas, but it was not included for interstate. Nevertheless, 
this is an excellent bill.
  I would like to say to some of the nay sayers that complain about the 
provisions, as to whether or not they deny due process or whatever, the 
question has been asked are we endangering the rights and privacy of 
innocent Americans. The answer is no, but it does give our law 
enforcement officials the requirements that they need for their careful 
investigation. It gives our regulators and law enforcement officials 
what they need to get the job done.
  May I say that in this brave new world of terrorists, we must cripple 
this demonic network. Let me just have a couple of additional seconds 
to say that unless we have this strong provision in the bill, it would 
make a mockery of the legislation; and it is an absolutely essential 
core of anti-terrorist legislation.
  Mr. LAFALCE. Mr. Speaker, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. Frank) to discuss the anti-money laundering 
provisions.
  Mr. FRANK. Mr. Speaker, as a member of both committees, who has sat 
through both markups, I get to make two different sets of remarks, and 
I will have comments about the procedures later. But I want to 
congratulate the gentleman from New York (Mr. LaFalce) and the 
gentleman from Ohio (Mr. Oxley), as well as Members of the other body, 
for their persistence in bringing this bill before us.
  We have talked a lot about the changes in perception people have 
undergone since the terrible mass murders of September 11. This is one 
of the most profound. This needs to crack down on those Nations which 
allow their banking systems to be used as cover for a variety of 
illegal activities, whether it is drugs or tax evasion or terrorism. 
That was long overdue, and it was opposed by the administration and 
some others. And I welcome the recognition now that cracking down on 
this misuse of money is very important.
  There was a great disconnect between people denouncing the terrorism 
and not wanting to end its financing, and I must say I was struck and I 
am pleased that the administration has come around now to be supportive 
of the bill. When the Secretary of the Treasury testified and the 
gentleman from New York (Mr. LaFalce), who was a main sponsor and 
author of this bill, asked if he was for money laundering a couple of 
weeks after the terrorism, he said only if it gets added some good due 
process provisions.
  My initial reaction was to hope he would run into the Attorney 
General that day and tell him about the value of due process 
provisions, because we had a period there where it seemed to me that 
the administration thought that due process existed for bank accounts 
but not necessarily for people. What we are getting is a kind of 
convergence, and I think that is very important.
  This is why I wanted to stress this bill in particular, this money 
laundering section, which is so important

[[Page 20446]]

that has been so sought by law enforcement officials at all levels. I 
was with the district attorney of New York County yesterday, Mr. Moore, 
who said, again, that is all on this subject, it has to be enforced 
well.
  This is not self-executing, and the bill will become law and the 
Secretary of the Treasury and his aides will have a great weapon that 
can be used. It should be used sensitively and sensibly, but it can and 
must be used. And I hope that the initial reluctance to get this passed 
will not get in the way of its effective enforcement.
  Mr. SENSENBRENNER. Mr. Speaker, I yield 2 minutes to the gentleman 
from California (Mr. Dreier), the distinguished chairman of the 
Committee on Rules.
  Mr. DREIER. Mr. Speaker, I rise in strong support of this legislation 
and want to congratulate the leadership of both the Committee on the 
Judiciary and the Committee on Financial Services for bringing this 
forward. I support the provisions that have come from both committees. 
I think they have done a fine job.
  Obviously, everyone has said it, September 11 changed our lives. And 
in past wars when we have talked about men and women in uniform, we 
have talked about men and women who are in the military; and today, we 
have to refer to men and women in uniform right here in the United 
States who are in law enforcement, who are in the midst of this war.
  That is why I believe that the steps taken in this legislation will 
go a long way towards empowering them to deal with the very tragic 
situation that we face. We all know one of the provisions, I think, 
that is very, very important to note is that the technological changes 
that we have observed over the past couple of decades have clearly 
provided an impetus for the changes that are being made in this 
measure. And in the past, our own surveillance structure has been used 
against us whereby people could continue to move with the new 
technology, with cellular telephones, et al, and they could not be 
traced.
  Under this bill, an individual will be able to be targeted; and 
regardless of what mode of communication will be utilized by this 
individual, the ability to follow them will be there. It is important 
to note that the content of conversations will not be taken, but in 
fact, the numbers will.
  I think this is a very, very helpful and positive step forward. I 
also happen to be a proponent of the sunset provisions. I am concerned 
about civil liberties for everyone, and I believe that it is important 
to note that some of these provisions may, may be unnecessary at 
another time in our Nation's history. So I believe that the agreement 
for the 4-year sunset provision is an appropriate one, and I 
congratulate my colleagues for coming to this compromise on it.
  I believe that this measure should, as is evidenced here, enjoy 
strong bipartisan support; and I thank my friend, the gentleman from 
Wisconsin (Mr. Sensenbrenner) for the time.
  Mr. CONYERS. Mr. Speaker, I am pleased to yield 2 minutes and 40 
seconds to the gentlewoman from California (Ms. Lofgren), a 
distinguished member of the Committee on the Judiciary.
  Ms. LOFGREN. Mr. Speaker, having had a chance to review the bill 
before us, I find that I must support the measure. I will say this is 
not a perfect bill. It is not as thoughtful as the Committee on the 
Judiciary product, although there is much that we did work on in the 
bill; but it is better than what the House passed last week.
  I have been an admirer of the committee chairman's insistence on 
regular order in the House, and I think that had he been successful in 
his quest for regular order on this bill, we would have an even better 
product than we do.
  I would also like to note, however, that there has been a lot of 
loose language among people who oppose this bill. And people are 
perfectly free to disagree with it, but it is important that we not be 
incorrect about what is actually in the bill.
  I actually heard someone say that the bill would provide for 
indefinite incarceration on a mere suspicion by the Attorney General. 
That is simply not the case. The Attorney General may detain persons, 
but he has to certify, and he has to have reasonable grounds to believe 
that the individual is involved in terrorism, and that decision is 
reviewable by a court. So that is real. To say it is mere suspicion and 
indefinite is certainly not the case; and of course, there is a 7-day 
limit where a court would take a look at the case.
  There are a couple of other issues I wanted to raise. Section 403 and 
405 do wonderful things in terms of upgrading technology and 
integrating law enforcement information with the INS and with the 
consular officers. However, I think it is important for us to 
understand that the problem in this arena is not primarily a 
legislative one. It is a managerial one, and the immigration service 
has not been successful in implementing the computer efforts that the 
Congress has already directed them to do. So I am hopeful that the 
committee can really assert ourselves in our oversight jurisdiction to 
make sure that the agency actually performs these necessary tasks.


  Section 814 reiterates a flawed approach to computer hacking; but it 
is no worse, I think, than current law. And I would point out that the 
burden of proof on deportation has been shifted in a way that conflicts 
with the most recent Supreme Court case on that point. Thank goodness 
we have a severability clause because that provision is likely 
unconstitutional. These matters could have been corrected had we 
engaged in regular order.
  Nevertheless, the gentleman from Texas (Mr. Armey) is fond of saying 
let us not let the perfect be the enemy of the good; and I think that 
is good advice.
  Mr. OXLEY. Mr. Speaker, I am pleased to yield 3 minutes to the 
gentlewoman from New York (Mrs. Kelly).
  Mrs. KELLY. Mr. Speaker, I rise in strong support of the conference 
report for the PATRIOT Act, in particular, title III of the Anti-Money 
Laundering Act.
  This legislation takes substantive steps to halt the transfer of 
illegal funds which are used to perpetrate cowardly acts of terrorism 
against Americans and support the illegal drug trade. We have a duty 
and a responsibility to do all in our power to stop these illegal 
activities. The legislation takes this fight to a new level by creating 
new public-private partnerships that will enable government and 
businesses to work together to stop these illicit funds.
  In addition, the legislation will make progress to stop hawalas, an 
ancient system of trading value from one place to another in an attempt 
to avoid taxes, tariffs, and detection. The bill will combat hawalas by 
ensuring that the law which requires money transfer businesses to be 
licensed can be used to prosecute these illusive operations.
  This legislation will also ensure that financial institutions of all 
sizes implement programs to combat their vulnerabilities to those who 
would seek to use them to transfer or launder illegal funds. The 
Treasury is required to review the new law and publish rules to ensure 
that the size, location, and activities of these businesses are taken 
into account.
  I would like to enter into a brief colloquy with the gentleman from 
Ohio (Mr. Oxley).
  I understand this legislation is intended to impart greater authority 
and flexibility to the Secretary of the Treasury, particularly 
regarding the due diligence provisions in paragraphs 1, 2, and 3 in 
section 312(b) of the bill. Is this the understanding of the gentleman 
from Ohio?
  Mr. OXLEY. Mr. Speaker, will the gentlewoman yield?
  Mrs. KELLY. I yield to the gentleman from Ohio.
  Mr. OXLEY. Mr. Speaker, that is my understanding.
  Mr. LaFALCE. Mr. Speaker, will the gentlewoman yield?
  Mr. Speaker, that is not the language we agreed upon that is in the 
bill. The Secretary does not have discretion.
  Mrs. KELLY. Reclaiming my time, the Congress has come together to

[[Page 20447]]

strengthen our financial laws to combat those who seek to harm our 
Nation. I ask my colleagues on both sides of the aisle to support this 
Act. Let us make America financially safe and strong.
  Mr. LaFALCE. Mr. Speaker, I yield myself such time as I may consume.
  I think this was an attempt that we just witnessed to try to give 
improper, incorrect legislative intent to the language that we did 
craft. The language that we crafted said specifically that there is a 
finding by an international organization, in which the United States 
concurs, that if there is an inappropriate regulatory regime in a 
country, then the Secretary must enforce heightened due diligence. 
There is no discretion at that point. Those three provisions were 
debated, an amendment was offered, it was defeated; and we ought not to 
attempt to rewrite it now by legislative intent.

                              {time}  2000

  Mr. FRANK. Mr. Speaker, will the gentleman yield?
  Mr. LaFALCE. I yield to the gentleman from Massachusetts.
  Mr. FRANK. Mr. Speaker, I thank my ranking member for yielding me 
this time, because I participated in this and he is absolutely right.
  There were two points at which there could have been this issue. As 
originally presented, the bill did say that a decision by an 
international organization that made that finding was binding on the 
United States and due diligence resulted. The gentleman from Louisiana 
(Mr. Baker) offered an amendment to say no because he did not want the 
American Government to be precluded by a decision with which it might 
have disagreed.
  We then worked out an amendment and the amendment split the 
difference, and it said the decision would not be binding on the U.S. 
unless the U.S. was a member of the organization that made it and 
concurred in the decision. But as the gentleman from New York pointed 
out, once the United States has concurred in the decision that a 
particular country is that sort of a haven, then the due diligence is 
automatic. In other words, the time to reject is when you say, okay, 
they are not really that kind of a haven.
  But the amendment clearly said and the debate clearly said that once 
the United States concurs in the finding of the international 
organization that this is a money laundering haven, then all of the due 
diligence must be applied.
  Mrs. KELLY. Mr. Speaker, will the gentleman yield?
  Mr. LaFALCE. I yield to the gentlewoman from New York.
  Mrs. KELLY. With all due respect to the ranking member, I believe 
that he may be referring to a different part of the bill. The part I 
was referring to was paragraphs 1, 2 and 3 of section 312(b) of the 
bill.
  I think if the gentleman will refer to that, he will see that there 
has been no change other than what we have agreed to.
  Mr. LaFALCE. Reclaiming my time, Mr. Speaker, there would then be no 
need for interpretation or additional legislative intent.
  What I was concerned about is there were three specific provisions 
that were attempted to be deleted by amendment, which we defeated. In 
fact, the amendment was withdrawn. Subsequent to that, the gentleman 
from Louisiana (Mr. Baker) offered an amendment which would have given 
discretion to the Secretary of the Treasury as to whether or not 
heightened due diligence would be called for. We defeated that. 
Heightened due diligence is called for automatically upon the finding.
  So long as the gentlewoman is not dealing with those sections, fine. 
But my fear was that the gentlewoman was dealing with those particular 
sections that we had considerable debate about.
  Mrs. KELLY. If the gentleman will continue to yield, I was dealing 
with section 312, not section 311.
  Mr. LaFALCE. The gentlewoman mentioned three specific points in 
there, and I was concerned they were the three that had been attempted 
to be deleted during committee debate.
  Mrs. KELLY. As a member of the committee, I was there for those votes 
and there for that discussion, and I believe that that was section 311, 
not 312. I was referring in my discussion with the chairman of the 
committee to section 312.
  Mr. LaFALCE. Mr. Speaker, I reserve the balance of my time.
  Mr. SENSENBRENNER. Mr. Speaker, I yield 1 minute to the gentleman 
from Illinois (Mr. LaHood).
  Mr. LaHOOD. Mr. Speaker, I thank the gentleman for yielding me this 
time, and I rise today to explain that I will be voting in favor of the 
Patriot Act of 2001.
  Previously, I was one of three Republicans to cast a ``no'' vote on 
the bill, but I believe that the addition of the money laundering 
provisions of this bill are a great addition to the bill and certainly 
enhance the ability of law enforcement to do what they need to do. 
Also, the provision of sunset for 4 years, which the Senate includes no 
sunset, but the 4-year provision is a good provision.
  I intend to vote for the bill and I appreciate the kind of provisions 
that have been added to make this a much better bill. I thank the 
chairman for the opportunity to express my support.
  Mr. CONYERS. Mr. Speaker, I yield 3\1/4\ minutes to the gentleman 
from North Carolina (Mr. Watt), who is on both committees, and I 
understand the gentleman from New York (Mr. LaFalce) will yield the 
balance of his time.
  Mr. LaFALCE. Mr. Speaker, I yield the balance of my time to the 
gentleman from North Carolina (Mr. Watt).
  Mr. WATT of North Carolina. Mr. Speaker, may I inquire as to how much 
time I have been yielded in total?
  The SPEAKER pro tempore (Mr. Sweeney). The gentleman from North 
Carolina (Mr. Watt) has 3\3/4\ minutes, with the 30 seconds yielded by 
the gentleman from New York (Mr. LaFalce).
  Mr. CONYERS. Mr. Speaker, what is the time remaining for all sides?
  The SPEAKER pro tempore. The gentleman from Wisconsin (Mr. 
Sensenbrenner) has 10 minutes remaining, the gentleman from Michigan 
(Mr. Conyers) has 8\1/2\ minutes remaining, before yielding, the 
gentleman from Ohio (Mr. Oxley) has 1\1/2\ minutes remaining, and the 
gentleman from New York (Mr. LaFalce) has 30 seconds remaining.
  Mr. CONYERS. Mr. Speaker, I yield 4\1/4\ minutes to the gentleman 
from North Carolina (Mr. Watt).
  The SPEAKER pro tempore. The gentleman from North Carolina (Mr. Watt) 
is recognized for 4\1/4\ minutes.
  Mr. WATT of North Carolina. Mr. Speaker, I yield to the ranking 
member of the committee, the gentleman from Michigan (Mr. Conyers).
  Mr. CONYERS. Mr. Speaker, I thank the gentleman. I would like to make 
it clear, Members of the House, that I am very proud of the results 
that have come out with reference to money laundering because we 
dropped the administration proposal that would have eliminated due 
process safeguards that would have prevented RICO liability for tobacco 
companies, and I am very proud of that. My reservations that continue 
as we end tonight's debate is on the bill and the issues that came out 
of the House Committee on the Judiciary.
  And I thank my colleague for yielding.
  Mr. WATT of North Carolina. Mr. Speaker, reclaiming my time, I thank 
both gentlemen for yielding me this time.
  I voted for the Committee on the Judiciary's version of the anti-
terrorism bill. I voted against the bill that came to the floor because 
it was a far cry from the Committee on the Judiciary's bill. I voted in 
the Committee on Financial Services for the money laundering provisions 
of the bill. And I feel like I am in a really, really difficult 
position with these bills, now having been put together, because the 
money laundering provisions which were reported out of the Committee on 
Banking and Financial Services, I think, are worthwhile and needed 
provisions and strike a good balance in terms of protecting the rights 
of individuals in our country.

[[Page 20448]]

  I would have thought that if any committee would have been 
overstepping due process bounds, it might have been the Committee on 
Financial Services, not the Committee on the Judiciary. So I find 
myself in the same position that the gentleman from Michigan (Mr. 
Conyers) has expressed. Were the money laundering provisions a 
freestanding bill, I would certainly support them. But I think the 
Committee on the Judiciary part of this bill goes too far.
  And let me be blunt. Some of us, who have a different history in 
America, with delegation of authority to the Government and the abuse 
of that authority, proceed a lot differently than others when we talk 
about giving authority to the Government that can be abused. And I 
think that is why we are having so much trouble in this debate. We 
cannot just come in in the middle of a terrorism episode and forget all 
of the history that has occurred in our country.
  Some groups in our country have had their rights violated, trampled 
on by the law enforcement authorities in this country; and so we do not 
have the luxury of being able to just sit back and give more authority 
than is warranted, the authority possibly to abuse due process through 
law enforcement, even in the context of what we are going through now. 
This is a very difficult time. I acknowledge that it is. But I think we 
are giving the Government and law enforcement too much authority in 
this bill.
  We drew a very, very delicate, fine balance in the Committee on the 
Judiciary. Unfortunately, we took several giant steps backwards when we 
passed the House version of the bill; and now we have taken a couple of 
steps forward, more toward the Judiciary bill. But I cannot justify 
voting for this bill only because it is better than what the House 
previously passed. It still does not measure up, and I encourage my 
colleagues to vote against it.
  Mr. OXLEY. Mr. Speaker, I have 1\1/2\ minutes remaining; is that 
correct?
  The SPEAKER pro tempore. That is correct.
  Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume to 
close for our side.
  Mr. Speaker, this has been a legislative process at its best, the 
Congress coming together, recognizing a very, very serious problem: the 
fact that our law enforcement people, the Secretary of the Treasury, 
currently do not have the powers and the tools necessary to deal with 
this horrible threat known as terrorism, this new kind of war. The 
Congress came together, both Republicans and Democrats from both sides 
of the Capitol, to craft this legislation.
  This is going to pass by an overwhelming margin. I think we all 
understand that. Because the Members recognize, a, that the committees 
have done their work, have made the compromises, have made the 
necessary changes to get a piece of legislation that can pass, be sent 
to the President, and can indeed solve this very, very difficult 
problem. Nothing could be more important in our careers here in the 
Congress, no matter how long we stay, than to protect the American 
people and to make certain that the people who seek to terrorize us and 
to kill our citizens are brought to justice, and, indeed, even more 
importantly stop these individuals before they commit these heinous 
acts.
  So from my perspective, this is one of the proudest moments of my 20 
years here in the Congress, to participate in this wonderful exercise 
of democracy and positive legislation. For that, I think all of us 
deserve a great deal of credit.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SENSENBRENNER. Mr. Speaker, I yield 4 minutes to the very 
distinguished gentleman from the Commonwealth of Massachusetts (Mr. 
Delahunt).
  Mr. DELAHUNT. Mr. Speaker, I thank the chairman for yielding me this 
time, and let me respond for a moment to the gentleman from North 
Carolina. There is no one for whom I have such profound respect as I do 
the gentleman from North Carolina (Mr. Watt), and I listen carefully to 
what he says, because what he says always rings true.
  In this particular case, however, I do have a disagreement, because 
we hear much about roving wiretaps, we hear much about expanded powers; 
but I think it is absolutely essential to note that the expansion of 
powers do not go to the criminal side of the bill that is before us. In 
other words, the safeguards that are inculcated in our jurisprudence 
through the fourth amendment of the Constitution are still there. All 
those checks and balances are still there.
  Clearly, there is an unease; and I share some of these concerns. I do 
not think that there was any doubt in the aftermath of September 11 
that it was clear that the administration was going to come to the 
Congress to seek additional authorities to deal with the terrorist 
attacks on our Nation. And while all of us were ready to and willing to 
grant them, what was appropriate, many, including myself, also braced 
for a frontal assault on civil liberties. In that regard, even the 
administration proposal was most notable, in my opinion, for what it 
did not contain: no new death penalty provisions, no new mandatory 
sentences.
  On the other hand, the proposal did contain a number of profoundly 
disturbing features, including provisions that would have authorized 
the indefinite detention of nonresident aliens, the use in evidence in 
a criminal prosecution of information illegally obtained by foreign 
intelligence services operating abroad in criminal prosecutions in the 
United States, and the use of wiretap authority under the so-called 
FISA Act, even when the real purpose of the wiretap had little or 
nothing to do with intelligence gathering.
  Now, we all know what happened here on the floor of the House when 
the committee bill came before the body.

                              {time}  2015

  Much was accomplished in that committee. It has been mentioned time 
and time again that it was a unanimous vote, and both the chairman and 
the staffs on both side and the gentleman from Michigan (Mr. Conyers) 
really do deserve our gratitude.
  However, in the aftermath of what happened here, many of us could not 
support the bill. I was one of those who voted against it. But the good 
news is that there were subsequent negotiations with the Senate, and it 
has resulted in a better bill. Among other things, and it has been 
mentioned again and again, that there is a sunset provision.
  The sunset provision obviously will give us a second look and correct 
the problems that we hope will not arise, but many of us fear. At this 
point in time I want to commend the gentleman from Massachusetts (Mr. 
Frank) because he participated in those negotiations and really did 
improve the bill that left the floor of this House.
  Having said that, I still harbor reservations about some aspects of 
the bill. For example, it allows disclosure of secret grand jury 
information to intelligence and national security officials without a 
court order. This is a serious departure from our criminal 
jurisprudence, and I cannot understand why it is included because 
securing a court order is a simple procedure. It would not hinder an 
investigation. However, notwithstanding such reservations, I have to 
acknowledge we have come a long way and I will support the bill.
  Mr. CONYERS. Mr. Speaker, I yield 1 minute to the gentleman from New 
Mexico (Mr. Udall).
  Mr. UDALL of New Mexico. Mr. Speaker, I supported the bipartisan bill 
that came out of the Committee on the Judiciary; and sadly, that is not 
before us today and it is not the bill that we would have been able to 
support and that I could have supported with enthusiasm.
  The bill that passed the House was improved upon by the conference. 
Court supervision was added to the grand jury provisions. Money 
laundering provisions are now in the bill; and as we know, the first 
shot that was fired by this administration was one using the freezing 
of assets and monetary measures. Probably the saving

[[Page 20449]]

grace here is that the sunset provision forces us to come back and to 
look at these issues again when heads are cooler and when we are not in 
the heat of battle.
  Mr. CONYERS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. Frank).
  Mr. FRANK. Mr. Speaker, I do not know how I am going to vote on this 
bill yet because I have a notion that a bill of this weight, I ought to 
read it.
  What I want to talk about now is my deep disappointment in the 
procedure. The gentleman from Wisconsin (Mr. Sensenbrenner), the 
chairman of the committee, has fought hard for a fair chance for the 
Members to look at things; but on the whole, his efforts have not been 
honored.
  We now, for the second time, are debating on the floor a bill of very 
profound significance for the constitutional structure and security of 
our country. In neither case has any Member been allowed to offer a 
single amendment. At no point in the debate in this very profound set 
of issues have we had a procedure whereby the most democratic 
institution in our government, the House of Representatives, engages in 
democracy.
  Who decided that to defend democracy we had to degrade it? Who 
decided that the very openness and participation and debate and 
weighing of issues, who decided that was a defect at a time of crisis? 
This is a chance for us to show the world that democracy is a source of 
strength; that with our military strength and our determination and our 
unity of purpose goes a continued respect for the profound way in which 
a democracy functions.
  This bill, ironically, which has been given all of these high-flying 
acronyms, it is the PATRIOT bill, it is the U.S.A. bill, it is the 
stand up and sing the Star Spangled Banner bill, has been debated in 
the most undemocratic way possible, and it is not worthy of this 
institution.
  There is no reason why we could not have had this open to amendment 
tonight. This bill should not be debated now. Was it really necessary 
to debate one of the most profound pieces of legislation and its impact 
on our society that we have had, was it really necessary to debate it 
at night after all of the Members who have been working all day were 
told to go home? Why could this not have been a full-fledged debate 
with some amendments? I think because leadership of the House thought 
Members might have voted for a 3-year sunset. They might have voted not 
to have the burden of proof be on someone to prove his innocence in a 
criminal trial.
  Mr. Speaker, the House has not been well served by a procedure which 
degrades democracy in the name of defending it.
  Mr. CONYERS. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, no one has appreciated the attempts at fairness more 
than the ranking member of the Committee on the Judiciary. The members 
of the Committee on the Judiciary had a free and open debate; and we 
came to a bill that even though imperfect, was unanimously agreed on. 
That was removed from us, and we are now debating at this hour of 
night, with only two copies of the bill that we are being asked to vote 
on available to Members on this side of the aisle. I am hoping on the 
other side of the aisle they at least have two copies.
  Mr. Speaker, there is something wrong with that process. The 
gentleman from Wisconsin (Mr. Obey) first put his finger on it in the 
debate in which 79 Members were not able to go along with the bill, is 
that a legislative body that does not debate is being railroaded 
whether they know it or not, whether they want to accede to it or not.
  Although I like the money laundering provisions in the bill, I detest 
the work product that bears the name of my committee on it that has now 
been joined with this bill. For those reasons as we close this debate, 
my inclination is not to support the bill. I hate to say that to 
Members because a number have asked me what I was going to do, and I 
have said up to now I was not sure.
  Mr. Speaker, why should I put my name down in history for all time 
that I went for this ridiculous procedure which has been outlined? I do 
not feel inclined to support it tonight or tomorrow morning either.
  Mr. SENSENBRENNER. Mr. Speaker, I yield myself the balance of my 
time.
  Mr. Speaker, this is the latest step in a long process to attempt to 
pass a bill and send to the President a bill that is vitally needed. It 
is vitally needed by our law enforcement officials who are fighting the 
battle at home. We do not know how this battle will be fought. We do 
not know what tactics the enemy will take. We do not know what agents 
the enemy will use.
  What we need is we need to get the intelligence necessary to protect 
the people of the United States of America from whatever the enemy has 
up its sleeve.
  The Committee on the Judiciary did marvelous work. The gentleman from 
Michigan (Mr. Conyers) was a joy to work with, as were all of the other 
members of the committee when we reported the bill out 36 to nothing. 
The other body did not have committee consideration. They took their 
bill directly to the floor and passed it 96 to one.
  What we have before us here today is the result of a preconference 
that had bipartisan and bicameral participation. Wednesday of last week 
there was a meeting presided over by our distinguish Speaker, the 
gentleman from Illinois (Mr. Hastert). In attendance were the gentleman 
from Texas (Mr. Armey), the gentleman from Missouri (Mr. Gephardt), the 
gentleman from Massachusetts (Mr. Frank) representing the gentleman 
from Michigan (Mr. Conyers), myself on the House side, and Senators 
Daschle, Lott, Leahy, and Hatch representing the Senate leadership and 
the chairman and ranking minority membership of the Committee on the 
Judiciary.
  The issues and disagreement between the House and the Senate were 
thrashed out thoroughly. I can tell the membership tonight that the 
bill that is before us tonight is better than the bill which was passed 
on October 12 by a vote of 337 to 79. We were able to get a shorter 
sunset. We were able to include money laundering provisions which were 
not in our bill because of jurisdictional problems, but which were in 
the bill passed by the other body and language was passed by us last 
week as a result of the efforts of the chairman and ranking member of 
the Committee on Financial Services, the gentleman from Ohio (Mr. 
Oxley) and the gentleman from New York (Mr. LaFalce).
  Mr. Speaker, this is not a perfect bill. I do not think we can get a 
perfect bill given the conflicting issues that are before us; but none 
of the changes are new in the legislation that is before us compared to 
either the Committee on Financial Services bill of last week and the 
Committee on the Judiciary bill of October 12. There is no surprise in 
any of these issues. This is a bill that is vitally needed. The 
President has called for it. The Attorney General has called for it, 
and we should not delay in passing it.
  Mr. CONYERS. Mr. Speaker, will the gentleman yield?
  Mr. SENSENBRENNER. I yield to the gentleman from Michigan.
  Mr. CONYERS. Mr. Speaker, is the gentleman from Wisconsin in any 
position to assure Members of the House that there will be a conference 
on this measure?
  Mr. SENSENBRENNER. Mr. Speaker, it would be my hope that because this 
is the result of a preconference, the body would pass this bill 
unamended and send it to the Senate. The issues that would have been 
debated in the conference were debated in the preconference with the 
participants that I just mentioned. There was compromise that took 
place between what the Senate passed and what the House passed.
  I think that this bill again is better than the bill that we passed 
on October 12, and I believe that it is deserving of the support of all 
Members of the House of Representatives.
  Mr. CONYERS. Mr. Speaker, if the gentleman would continue to yield, 
we had a preconference before we had a

[[Page 20450]]

bill and before there was a conference; and now we are not going to 
have a conference.
  Mr. SENSENBRENNER. Mr. Speaker, reclaiming my time, I think the 
urgency of getting this job done is very, very great. If there were 
issues that were not discussed between this body and the other body, I 
think the gentleman's representation would be correct. But all of these 
issues were discussed.
  I think a conference would merely delay passing powers that law 
enforcement vitally needs. We have done a good job in balancing the 
need for stronger law enforcement powers and civil liberties. I would 
urge support of this bill.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Sweeney). The question is on the motion 
offered by the gentleman from Wisconsin (Mr. Sensenbrenner) that the 
House suspend the rules and pass the bill, H.R. 3162.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. CONYERS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed until tomorrow.

                          ____________________
                              {time}  2030