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                               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.

[[Page H7160]]

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.
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

[[Page H7161]]

     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
     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

[[Page H7162]]

     information. Within a reasonable time after 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''.

     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

[[Page H7163]]

       (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.'';
       (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.''.

[[Page H7164]]

       (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
       (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--

[[Page H7165]]

       (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,'';
       (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

[[Page H7166]]

     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;
       (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

[[Page H7167]]

     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.--
       ``(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.

[[Page H7168]]

       ``(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.
       ``(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.--

[[Page H7169]]

       ``(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;
       ``(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

[[Page H7170]]

     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 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.),

[[Page H7171]]

     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.

       ``(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

[[Page H7172]]

     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.''.

     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

[[Page H7173]]

     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.

    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

[[Page H7174]]

     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 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.

[[Page H7175]]

     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;
       (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

[[Page H7176]]

     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;
       ``(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

[[Page H7177]]

     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;
       ``(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

[[Page H7178]]

     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:

     ``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,

[[Page H7179]]

     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
       (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

[[Page H7180]]

     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 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;

[[Page H7181]]

       ``(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

       (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.--

[[Page H7182]]

       ``(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.
       ``(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)).

[[Page H7183]]

       (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 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

[[Page H7184]]

     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 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.

[[Page H7185]]

       (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.
       (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

[[Page H7186]]

     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 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

[[Page H7187]]

     Justice Assistance shall authorize payment to qualified
     beneficiaries, said payment to be made not later than 30 days
     after receipt of 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 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:

[[Page H7188]]

       ``(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'';
       (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

[[Page H7189]]

       ``(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 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

[[Page H7190]]

     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, 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

[[Page H7191]]

     (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)).
       ``(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

[[Page H7192]]

       (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 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

[[Page H7193]]

     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;
       (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

[[Page H7194]]

     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:

     ``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--

[[Page H7195]]

       (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:
       ``(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

[[Page H7196]]

     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.