II 

115TH CONGRESS 

1ST SESSION S. 1781 

To reauthorize grant programs to improve the prevention, investigation, and 

prosecution of economic, high technology, Internet, and other white collar 

crime. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 7, 2017 

Mr. CORNYN (for himself, Mr. COONS, Mr. HATCH, Ms. KLOBUCHAR, Mr. 

TILLIS, Mr. MANCHIN, Mr. KENNEDY, Mr. WARNER, and Mr. GRASSLEY) 

introduced the following bill; which was read twice and referred to the 

Committee on the Judiciary 

A BILL 

To reauthorize grant programs to improve the prevention, 

investigation, and prosecution of economic, high technology, Internet, and other white collar crime. 

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 ‘‘National White Collar 

5 Crime Control Act of 2017’’. 


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1 SEC. 2. PREVENTION, INVESTIGATION, AND PROSECUTION 

2 OF ECONOMIC, HIGH TECHNOLOGY, INTER3 NET, AND OTHER WHITE COLLAR CRIME. 

4 Section 401 of the Prioritizing Resources and Orga5 nization for Intellectual Property Act of 2008 (42 U.S.C. 

6 3713a) is amended by striking subsection (b) and insert7 ing the following: 

8 ‘‘(b) GRANTS.— 

9 ‘‘(1) AUTHORIZATION.—The Director of the 

10 Bureau of Justice Assistance is authorized to enter 

11 into a cooperative agreement with or make a grant 

12 to an eligible entity for the purpose of improving the 

13 identification, investigation, and prosecution of white 

14 collar crime (including each category of such crimes 

15 set forth in subparagraphs (A) through (C) of para16 graph (2)) by providing comprehensive, direct, and 

17 practical training and technical assistance to law en18 forcement officers, investigators, auditors and pros19 ecutors in States and units of local government. 

20 ‘‘(2) WHITE COLLAR CRIME DEFINED.—For 

21 purposes of this subsection, the term ‘white collar 

22 crime’ includes— 

23 ‘‘(A) high-tech crime, including cyber and 

24 electronic crime and related threats; 

25 ‘‘(B) economic crime, including financial 

26 fraud and mortgage fraud; and 


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1 ‘‘(C) Internet-based crime against children 

2 and child pornography. 

3 ‘‘(3) PURPOSES.—The purposes of this sub4 section include the following: 

5 ‘‘(A) To ensure that training is available 

6 for State, local, tribal and territorial law en7 forcement agencies and officers nationwide to 

8 support local efforts to identify, prevent, inves9 tigate, and prosecute cyber and financial 

10 crimes, including those crimes facilitated via 

11 computer networks and other electronic means, 

12 and crimes involving financial and economic im13 pacts such as intellectual property crimes. 

14 ‘‘(B) To deliver training to State, local, 

15 tribal, and territorial law enforcement officers, 

16 and other criminal justice professionals con17 cerning the use of proven methodologies to— 

18 ‘‘(i) prevent, detect, and respond to 

19 white collar crimes; 

20 ‘‘(ii) recognize emerging issues; 

21 ‘‘(iii) manage electronic and financial 

22 crime evidence; and 

23 ‘‘(iv) improve local criminal justice 

24 agency responses to such threats. 


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1 ‘‘(C) To provide operational and technical 

2 assistance and training concerning tools, prod3 ucts, resources, guidelines, and procedures to— 

4 ‘‘(i) aid and enhance criminal intel5 ligence analysis; and 

6 ‘‘(ii) conduct white collar crime inves7 tigations and related justice information 

8 sharing at the local and State levels. 

9 ‘‘(D) To provide appropriate training on 

10 protections for privacy, civil rights, and civil lib11 erties in the conduct of criminal intelligence 

12 analysis and cyber and electronic crime and fi13 nancial crime investigations, including in the 

14 development of policies, guidelines, and proce15 dures by State, local, tribal, and territorial law 

16 enforcement agencies to protect and enhance 

17 privacy, civil rights, and civil liberties protec18 tions and identify weaknesses and gaps in the 

19 protection of privacy, civil rights, and civil lib20 erties. 

21 ‘‘(4) AUTHORIZED PROGRAMS.—A grant or co22 operative agreement awarded under this subsection 

23 may be made only for the following programs, with 

24 respect to the prevention, investigation, and prosecu25 tion of certain criminal activities: 


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1 ‘‘(A) Programs to provide a nationwide 

2 support system for State and local criminal jus3 tice agencies. 

4 ‘‘(B) Programs to assist State and local 

5 criminal justice agencies to develop, establish, 

6 and maintain intelligence-focused policing strat7 egies and related information sharing. 

8 ‘‘(C) Programs to provide training and in9 vestigative support services to State and local 

10 criminal justice agencies to provide such agen11 cies with skills and resources needed to inves12 tigate and prosecute white collar criminal activi13 ties and related criminal activities. 

14 ‘‘(D) Programs to provide research sup15 port, to establish partnerships, and to provide 

16 other resources to aid State and local criminal 

17 justice agencies to prevent, investigate, and 

18 prosecute white collar criminal activities and re19 lated problems. 

20 ‘‘(E) Programs to provide information and 

21 research to the general public to facilitate the 

22 prevention of white collar criminal activities. 

23 ‘‘(F) Programs to establish or support na24 tional training and research centers regionally 


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1 to provide training and research services for 

2 State and local criminal justice agencies. 

3 ‘‘(G) Programs to provide training and 

4 oversight to State and local criminal justice 

5 agencies to develop and comply with applicable 

6 privacy, civil rights, and civil liberties related 

7 policies, procedures, rules, laws, and guidelines. 

8 ‘‘(H) Any other programs specified by the 

9 Attorney General as furthering the purposes of 

10 this subsection. 

11 ‘‘(5) APPLICATION.—To be eligible for an 

12 award of a grant or cooperative agreement under 

13 this subsection, an entity shall submit to the Direc14 tor of the Bureau of Justice Assistance an applica15 tion in such form and manner, and containing such 

16 information, as required by the Director of the Bu17 reau of Justice Assistance. 

18 ‘‘(6) ELIGIBILITY.—States, units of local gov19 ernment, not-for-profit entities, and institutions of 

20 higher education with demonstrated capacity and ex21 perience in delivering training, technical assistance 

22 and other resources including direct, practical lab23 oratory training to law enforcement officers, inves24 tigators, auditors and prosecutors in States and 


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1 units of local government and over the Internet shall 

2 be eligible to receive an award under this subsection. 

3 ‘‘(7) RULES AND REGULATIONS.—The Director 

4 of the Bureau of Justice Assistance shall promulgate 

5 such rules and regulations as are necessary to carry 

6 out this subsection, including rules and regulations 

7 for submitting and reviewing applications under 

8 paragraph (5). 

9 ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.— 

10 There are authorized to be appropriated 

11 $13,000,000 for each of fiscal years 2018 through 

12 2022 to carry out this subsection. 

13 ‘‘(c) ACCOUNTABILITY.—All grants awarded by the 

14 Director of the Bureau of Justice Assistance under this 

15 section shall be subject to the following accountability pro16 visions: 

17 ‘‘(1) AUDIT REQUIREMENT.— 

18 ‘‘(A) DEFINITION.—In this paragraph, the 

19 term ‘unresolved audit finding’ means a finding 

20 in the final audit report of the Inspector Gen21 eral of the Department of Justice that the au22 dited grantee has utilized grant funds for an 

23 unauthorized expenditure or otherwise unallow24 able cost that is not closed or resolved within 


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1 12 months from the date when the final audit 

2 report is issued. 

3 ‘‘(B) AUDITS.—Beginning in the first fis4 cal year beginning after the date of enactment 

5 of this subsection, and in each fiscal year there6 after, the Inspector General of the Department 

7 of Justice shall conduct audits of recipients of 

8 grants under this section to prevent waste, 

9 fraud, and abuse of funds by grantees. The In10 spector General shall determine the appropriate 

11 number of grantees to be audited each year. 

12 ‘‘(C) MANDATORY EXCLUSION.—A recipi13 ent of grant funds under this section that is 

14 found to have an unresolved audit finding shall 

15 not be eligible to receive grant funds under this 

16 section during the first 2 fiscal years beginning 

17 after the end of the 12-month period described 

18 in subparagraph (A). 

19 ‘‘(D) PRIORITY.—In awarding grants 

20 under this section, the Director of the Bureau 

21 of Justice Assistance shall give priority to eligi22 ble applicants that did not have an unresolved 

23 audit finding during the 3 fiscal years before 

24 submitting an application for a grant under this 

25 section. 


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1 ‘‘(E) REIMBURSEMENT.—If an entity is 

2 awarded grant funds under this section during 

3 the 2-fiscal-year period during which the entity 

4 is barred from receiving grants under subpara5 graph (C), the Director of the Bureau of Jus6 tice Assistance shall— 

7 ‘‘(i) deposit an amount equal to the 

8 amount of the grant funds that were im9 properly awarded to the grantee into the 

10 General Fund of the Treasury; and 

11 ‘‘(ii) seek to recoup the costs of the 

12 repayment to the fund from the grant re13 cipient that was erroneously awarded grant 

14 funds. 

15 ‘‘(2) NONPROFIT ORGANIZATION REQUIRE16 MENTS.— 

17 ‘‘(A) DEFINITION.—For purposes of this 

18 paragraph and the grant programs under this 

19 part, the term ‘nonprofit organization’ means 

20 an organization that is described in section 

21 501(c)(3) of the Internal Revenue Code of 1986 

22 and is exempt from taxation under section 

23 501(a) of such Code. 

24 ‘‘(B) PROHIBITION.—The Director of the 

25 Bureau of Justice Assistance may not award a 


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1 grant under this section to a nonprofit organi2 zation that holds money in offshore accounts 

3 for the purpose of avoiding paying the tax de4 scribed in section 511(a) of the Internal Rev5 enue Code of 1986. 

6 ‘‘(C) DISCLOSURE.—Each nonprofit orga7 nization that is awarded a grant under this sec8 tion and uses the procedures prescribed in regu9 lations to create a rebuttable presumption of 

10 reasonableness for the compensation of its offi11 cers, directors, trustees, and key employees, 

12 shall disclose to the Director of the Bureau of 

13 Justice Assistance, in the application for the 

14 grant, the process for determining such com15 pensation, including the independent persons 

16 involved in reviewing and approving such com17 pensation, the comparability data used, and 

18 contemporaneous substantiation of the delibera19 tion and decision. Upon request, the Director of 

20 the Bureau of Justice Assistance shall make the 

21 information disclosed under this subparagraph 

22 available for public inspection. 

23 ‘‘(3) CONFERENCE EXPENDITURES.— 

24 ‘‘(A) LIMITATION.—No amounts made 

25 available to the Department of Justice under 


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1 this section may be used by the Attorney Gen2 eral, or by any individual or entity awarded dis3 cretionary funds through a cooperative agree4 ment under this section, to host or support any 

5 expenditure for conferences that uses more than 

6 $20,000 in funds made available by the Depart7 ment of Justice, unless the head of the relevant 

8 agency or department provides prior written au9 thorization that the funds may be expended to 

10 host the conference. 

11 ‘‘(B) WRITTEN APPROVAL.—Written ap12 proval under subparagraph (A) shall include a 

13 written estimate of all costs associated with the 

14 conference, including the cost of all food, bev15 erages, audio-visual equipment, honoraria for 

16 speakers, and entertainment. 

17 ‘‘(C) REPORT.—The Deputy Attorney Gen18 eral shall submit an annual report to the Com19 mittee on the Judiciary of the Senate and the 

20 Committee on the Judiciary of the House of 

21 Representatives on all conference expenditures 

22 approved under this paragraph. 

23 ‘‘(4) ANNUAL CERTIFICATION.—Beginning in 

24 the first fiscal year beginning after the date of en25 actment of this subsection, the Attorney General 


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1 shall submit, to the Committee on the Judiciary and 

2 the Committee on Appropriations of the Senate and 

3 the Committee on the Judiciary and the Committee 

4 on Appropriations of the House of Representatives, 

5 an annual certification— 

6 ‘‘(A) indicating whether— 

7 ‘‘(i) all audits issued by the Office of 

8 the Inspector General under paragraph (1) 

9 have been completed and reviewed by the 

10 appropriate Assistant Attorney General or 

11 Director; 

12 ‘‘(ii) all mandatory exclusions required 

13 under paragraph (1)(C) have been issued; 

14 and 

15 ‘‘(iii) all reimbursements required 

16 under paragraph (1)(E) have been made; 

17 and 

18 ‘‘(B) that includes a list of any grant re19 cipients excluded under paragraph (1) from the 

20 previous year. 

21 ‘‘(d) PREVENTING DUPLICATIVE GRANTS.— 

22 ‘‘(1) IN GENERAL.—Before the Director of the 

23 Bureau of Justice Assistance awards a grant to an 

24 applicant under this section, the Director of the Bu25 reau of Justice Assistance shall compare potential 


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1 grant awards with other grants awarded under this 

2 section to determine if duplicate grant awards are 

3 awarded for the same purpose. 

4 ‘‘(2) REPORT.—If the Director of the Bureau 

5 of Justice Assistance awards duplicate grants to the 

6 same applicant for the same purpose the Director of 

7 the Bureau of Justice Assistance shall submit to the 

8 Committee on the Judiciary of the Senate and the 

9 Committee on the Judiciary of the House of Rep10 resentatives a report that includes— 

11 ‘‘(A) a list of all duplicate grants awarded, 

12 including the total dollar amount of any dupli13 cate grants awarded; and 

14 ‘‘(B) the reason the Director of the Bu15 reau of Justice Assistance awarded the dupli16 cate grants.’’. 

Æ 


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