II 

Calendar No. 167 

110TH CONGRESS 

1ST SESSION S. 863 

[Report No. 110–69] 

To amend title 18, United States Code, with respect to fraud in connection 

with major disaster or emergency funds. 

IN THE SENATE OF THE UNITED STATES 

MARCH 13, 2007 

Mr. SESSIONS (for himself, Ms. LANDRIEU, Mr. VITTER, Mr. CORNYN, Mr. 

GRASSLEY, and Mr. MCCAIN) introduced the following bill; which was 

read twice and referred to the Committee on the Judiciary 

MAY 22, 2007 

Reported by Mr. LEAHY, without amendment 

A BILL 

To amend title 18, United States Code, with respect to 

fraud in connection with major disaster or emergency funds. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Emergency and Dis5 aster Assistance Fraud Penalty Enhancement Act of 

6 2007’’. 

2 

S 863 RS

1 SEC. 2. FRAUD IN CONNECTION WITH MAJOR DISASTER OR 

2 EMERGENCY BENEFITS. 

3 (a) IN GENERAL.—Chapter 47 of title 18, United 

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘§ 1040. Fraud in connection with major disaster or 

7 emergency benefits 

8 ‘‘(a) Whoever, in a circumstance described in sub9 section (b) of this section, knowingly— 

10 ‘‘(1) falsifies, conceals, or covers up by any 

11 trick, scheme, or device any material fact; or 

12 ‘‘(2) makes any materially false, fictitious, or 

13 fraudulent statement or representation, or makes or 

14 uses any false writing or document knowing the 

15 same to contain any materially false, fictitious, or 

16 fraudulent statement or representation, 

17 in any matter involving any benefit authorized, trans18 ported, transmitted, transferred, disbursed, or paid in con19 nection with a major disaster declaration under section 

20 401 of the Robert T. Stafford Disaster Relief and Emer21 gency Assistance Act (42 U.S.C. 5170) or an emergency 

22 declaration under section 501 of the Robert T. Stafford 

23 Disaster Relief and Emergency Assistance Act (42 U.S.C. 

24 5191), or in connection with any procurement of property 

25 or services related to any emergency or major disaster dec26 laration as a prime contractor with the United States or 

3 

S 863 RS

1 as a subcontractor or supplier on a contract in which there 

2 is a prime contract with the United States, shall be fined 

3 under this title, imprisoned not more than 30 years, or 

4 both. 

5 ‘‘(b) A circumstance described in this subsection is 

6 any instance where— 

7 ‘‘(1) the authorization, transportation, trans8 mission, transfer, disbursement, or payment of the 

9 benefit is in or affects interstate or foreign com10 merce; 

11 ‘‘(2) the benefit is transported in the mail at 

12 any point in the authorization, transportation, trans13 mission, transfer, disbursement, or payment of that 

14 benefit; or 

15 ‘‘(3) the benefit is a record, voucher, payment, 

16 money, or thing of value of the United States, or of 

17 any department or agency thereof. 

18 ‘‘(c) In this section, the term ‘benefit’ means any 

19 record, voucher, payment, money or thing of value, good, 

20 service, right, or privilege provided by the United States, 

21 a State or local government, or other entity.’’. 

22 (b) CLERICAL AMENDMENT.—The table of sections 

23 for chapter 47 of title 18, United States Code, is amended 

24 by adding at the end the following new item: 

‘‘1040. Fraud in connection with major disaster or emergency benefits.’’. 

4 

S 863 RS

1 SEC. 3. INCREASED CRIMINAL PENALTIES FOR ENGAGING 

2 IN WIRE, RADIO, AND TELEVISION FRAUD 

3 DURING AND RELATION TO A PRESI4 DENTIALLY DECLARED MAJOR DISASTER OR 

5 EMERGENCY. 

6 Section 1343 of title 18, United States Code, is 

7 amended by inserting: ‘‘occurs in relation to, or involving 

8 any benefit authorized, transported, transmitted, trans9 ferred, disbursed, or paid in connection with, a presi10 dentially declared major disaster or emergency (as those 

11 terms are defined in section 102 of the Robert T. Stafford 

12 Disaster Relief and Emergency Assistance Act (42 U.S.C. 

13 5122)), or’’ after ‘‘If the violation’’. 

14 SEC. 4. INCREASED CRIMINAL PENALTIES FOR ENGAGING 

15 IN MAIL FRAUD DURING AND RELATION TO A 

16 PRESIDENTIALLY DECLARED MAJOR DIS17 ASTER OR EMERGENCY. 

18 Section 1341 of title 18, United States Code, is 

19 amended by inserting: ‘‘occurs in relation to, or involving 

20 any benefit authorized, transported, transmitted, trans21 ferred, disbursed, or paid in connection with, a presi22 dentially declared major disaster or emergency (as those 

23 terms are defined in section 102 of the Robert T. Stafford 

24 Disaster Relief and Emergency Assistance Act (42 U.S.C. 

25 5122)), or’’ after ‘‘If the violation’’. 

5 

S 863 RS

1 SEC. 5. DIRECTIVE TO SENTENCING COMMISSION. 

2 (a) IN GENERAL.—Pursuant to its authority under 

3 section 994(p) of title 28, United States Code, and in ac4 cordance with this section, the United States Sentencing 

5 Commission forthwith shall— 

6 (1) promulgate sentencing guidelines or amend 

7 existing sentencing guidelines to provide for in8 creased penalties for persons convicted of fraud or 

9 theft offenses in connection with a major disaster 

10 declaration under section 401 of the Robert T. Staf11 ford Disaster Relief and Emergency Assistance Act 

12 (42 U.S.C. 5170) or an emergency declaration under 

13 section 501 of the Robert T. Stafford Disaster Relief 

14 and Emergency Assistance Act (42 U.S.C. 5191); 

15 and 

16 (2) submit to the Committee on the Judiciary 

17 of the Senate and the Committee on the Judiciary 

18 of the House of Representatives an explanation of 

19 actions taken by the Commission pursuant to para20 graph (1) and any additional policy recommenda21 tions the Commission may have for combating of22 fenses described in that paragraph. 

23 (b) REQUIREMENTS.—In carrying out this section, 

24 the Sentencing Commission shall— 

25 (1) ensure that the sentencing guidelines and 

26 policy statements reflect the serious nature of the ofVerDate Aug 31 2005 02:08 May 23, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S863.RS S863
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1 fenses described in subsection (a) and the need for 

2 aggressive and appropriate law enforcement action 

3 to prevent such offenses; 

4 (2) assure reasonable consistency with other 

5 relevant directives and with other guidelines; 

6 (3) account for any aggravating or mitigating 

7 circumstances that might justify exceptions, includ8 ing circumstances for which the sentencing guide9 lines currently provide sentencing enhancements; 

10 (4) make any necessary conforming changes to 

11 the sentencing guidelines; and 

12 (5) assure that the guidelines adequately meet 

13 the purposes of sentencing as set forth in section 

14 3553(a)(2) of title 18, United States Code. 

15 (c) EMERGENCY AUTHORITY AND DEADLINE FOR

16 COMMISSION ACTION.—The Commission shall promulgate 

17 the guidelines or amendments provided for under this sec18 tion as soon as practicable, and in any event not later than 

19 the 30 days after the date of enactment of this Act, in 

20 accordance with the procedures set forth in section 21(a) 

21 of the Sentencing Reform Act of 1987, as though the au22 thority under that Act had not expired. 

Calendar No. 167 

110TH CONGRESS 

1ST SESSION S. 863 

[Report No. 110–69] 

A BILL 

To amend title 18, United States Code, with reor emergency funds. spect to fraud in connection with major disaster 

MAY 22, 2007 

Reported without amendment