In the Senate of the United States,

September 18, 1996.

Resolved, That the bill from the House of Representatives (H.R. 3723) entitled ‘‘An Act to amend title 18, United

States Code, to protect proprietary economic information, and

for other purposes.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Economic Espionage

3 Act of 1996’’.

4 SEC. 2. FINDINGS AND PURPOSES.

5 (a) FINDINGS.—Congress finds that—

6 (1) sustaining a healthy and competitive na7 tional economy is imperative;

8 (2) the development and production of propri9 etary economic information involves every aspect of

10 interstate commerce and business;
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1 (3) the development, production, protection, and

2 lawful exchange, sale, and transfer of proprietary eco3 nomic information is essential to maintaining the

4 health and competitiveness of interstate commerce and

5 the national economy;

6 (4) much proprietary economic information

7 moves in interstate and foreign commerce and propri8 etary economic information that does not move in

9 interstate or foreign commerce directly and substan10 tially affects proprietary economic information that

11 does;

12 (5) the theft, wrongful destruction or alteration,

13 misappropriation, and wrongful conversion of propri14 etary economic information substantially affects and

15 harms interstate commerce, costing United States

16 firms, businesses, industries, and consumers millions

17 of dollars each year; and

18 (6) enforcement of existing State laws protecting

19 proprietary economic information is frustrated by the

20 ease with which stolen or wrongfully appropriated

21 proprietary economic information is transferred

22 across State and national boundaries.

23 (b) PURPOSE.—The purpose of this Act is—

24 (1) to promote the development and lawful utili25 zation of United States proprietary economic infor-
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1 mation produced for, or placed in, interstate and for2 eign commerce by protecting it from theft, wrongful

3 destruction or alteration, misappropriation, and con4 version; and

5 (2) to secure to authors and inventors the exclu6 sive right to their respective writings and discoveries.

7 SEC. 3. PREVENTION OF ECONOMIC ESPIONAGE AND PRO8 TECTION OF PROPRIETARY ECONOMIC IN9 FORMATION IN INTERSTATE AND FOREIGN

10 COMMERCE.

11 (a) IN GENERAL.—Title 18, United States Code, is

12 amended by inserting after chapter 89 the following new

13 chapter:

14 ‘‘CHAPTER 90—PROTECTION OF

15 PROPRIETARY ECONOMIC INFORMATION

‘‘Sec.

‘‘1831. Definitions.

‘‘1832. Criminal activities affecting proprietary economic information.

‘‘1833. Criminal forfeiture.

‘‘1834. Civil remedies.

‘‘1835. Extraterritoriality.

‘‘1836. Construction with other laws.

‘‘1837. Preservation of confidentiality.

‘‘1838. Prior authorization requirement.

‘‘1839. Law enforcement and intelligence activities.

16 ‘‘§ 1831. Definitions

17 ‘‘As used in this chapter:

18 ‘‘(1) The term ‘person’ means a natural person,

19 corporation, agency, association, institution, or any

20 other legal, commercial, or business entity.
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1 ‘‘(2) The term ‘proprietary economic informa2 tion’ means all forms and types of financial, business,

3 scientific, technical, economic, or engineering infor4 mation, including data, plans, tools, mechanisms,

5 compounds, formulas, designs, prototypes, processes,

6 procedures, programs, codes, or commercial strategies,

7 whether tangible or intangible, and whether stored,

8 compiled, or memorialized physically, electronically,

9 graphically, photographically, or in writing that—

10 ‘‘(A) the owner thereof has taken reasonable

11 measures, under the circumstances, to keep such

12 information confidential; and

13 ‘‘(B) the information derives independent

14 economic value, actual or potential, from not

15 being generally known to, and not being readily

16 ascertainable, acquired, or developed by legal

17 means by the public.

18 The term does not include any general knowledge, ex19 perience, training, or skill that a person lawfully has

20 acquired due to his work as an employee of or as an

21 independent contractor for any person.

22 ‘‘(3) The term ‘owner’ means the person or per23 sons in whom, or government component, department,

24 or agency in which, rightful legal, or equitable title
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1 to, or license in, proprietary economic information is

2 reposed.

3 ‘‘(4) The term ‘without authorization’ means not

4 permitted, expressly or implicitly, by the owner.

5 ‘‘§ 1832. Criminal activities affecting proprietary eco6 nomic information

7 ‘‘(a) Any person, with intent to, or reason to believe

8 that it will, injure any owner of proprietary economic in9 formation and with intent to convert it to his or her own

10 use or benefit or the use or benefit of another, who know11 ingly—

12 ‘‘(1) steals, or without authorization appro13 priates, takes, carries away, or conceals, or by fraud,

14 artifice, or deception obtains such information;

15 ‘‘(2) without authorization copies, duplicates,

16 sketches, draws, photographs, downloads, uploads, al17 ters, destroys, photocopies, replicates, transmits, deliv18 ers, sends, mails, communicates, or conveys such in19 formation;

20 ‘‘(3) receives, buys, or possesses such information,

21 knowing the same to have been stolen or appro22 priated, obtained, or converted without authorization;

23 ‘‘(4) attempts to commit any offense described in

24 paragraphs (1) through (3);
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1 ‘‘(5) solicits another to commit any offense de2 scribed in paragraphs (1) through (3); or

3 ‘‘(6) conspires with one or more other persons to

4 commit any offense described in paragraphs (1)

5 through (3), and one or more of such persons do any

6 act to effect the object of the conspiracy,

7 shall, except as provided in subsection (b), be fined up to

8 $250,000, or twice the value of the proprietary economic

9 information, whichever is greater, or imprisoned not more

10 than 10 years, or both.

11 ‘‘(b) Any organization that commits any offense de12 scribed in subsection (a) shall be fined up to $10,000,000,

13 or twice the value of the proprietary economic information,

14 whichever is greater.

15 ‘‘(c) This section does not prohibit the reporting of any

16 suspected criminal activity or regulatory violation to any

17 appropriate agency or instrumentality of the United States,

18 a State, a political subdivision of a State, or to Congress.

19 ‘‘§ 1833. Criminal forfeiture

20 ‘‘(a) Notwithstanding any provision of State law, any

21 person or organization convicted of a violation under this

22 chapter shall forfeit to the United States—

23 ‘‘(1) any property constituting or derived from,

24 any proceeds the person or organization obtained, di-
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1 rectly or indirectly, as the result of such violation;

2 and

3 ‘‘(2) any of the person’s or organization’s prop4 erty used, or intended to be used, in any manner or

5 part to commit or facilitate the commission of such

6 violation.

7 ‘‘(b) The court, in imposing a sentence on such person

8 or organization, shall order, in addition to any other sen9 tence imposed pursuant to this chapter, that the person or

10 organization forfeit to the United States all property de11 scribed in this section.

12 ‘‘(c) Property subject to forfeiture under this section,

13 any seizure and disposition thereof, and any administrative

14 or judicial proceeding in relation thereto, shall be governed

15 by section 413 of the Comprehensive Drug Abuse Prevention

16 and Control Act of 1970 (21 U.S.C. 853), except for sub17 section 413(d) which shall not apply to forfeitures under

18 this section.

19 ‘‘(d) Notwithstanding section 524(c) of title 28, there

20 shall be deposited in the Crime Victims Fund established

21 under section 1402 of the Victims of Crime Act of 1984 (42

22 U.S.C. 10601) all amounts from the forfeiture of property

23 under this section remaining after the payment of expenses

24 and sale authorized by law.
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1 ‘‘§ 1834. Civil remedies

2 ‘‘(a) The district courts of the United States shall have

3 jurisdiction to prevent and restrain violations of sections

4 1832 of this chapter by issuing appropriate orders.

5 ‘‘(b) The Attorney General may institute proceedings

6 under this section. Pending final determination thereof, the

7 court may at any time enter such restraining orders or pro8 hibitions, or take such other actions, including the accept9 ance of satisfactory performance bonds, as it shall deem

10 proper.

11 ‘‘(c) A final judgment or decree rendered in favor of

12 the United States in any criminal proceeding brought by

13 the United States under this chapter shall estop the defend14 ant from denying the essential allegations of the criminal

15 offense in any subsequent civil proceeding brought by the

16 United States.

17 ‘‘§ 1835. Extraterritoriality

18 ‘‘(a) This chapter applies to conduct occurring within

19 the United States.

20 ‘‘(b) This chapter also applies to conduct occurring

21 outside the United States if—

22 ‘‘(1) the offender is a natural person who is a

23 citizen or permanent resident alien of the United

24 States, or an organization organized under the laws

25 of the United States or a State or political subdivi26 sion thereof; or
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1 ‘‘(2) an act in furtherance of the offense was

2 committed in the United States.

3 ‘‘§ 1836. Construction with other laws

4 ‘‘This chapter shall not be construed to preempt or dis5 place any other Federal or State remedies, whether civil or

6 criminal, for the misappropriation of proprietary economic

7 information, or to affect the otherwise lawful disclosure of

8 information by any government employee under section 552

9 of title 5 (commonly known as the Freedom of Information

10 Act).

11 ‘‘§ 1837. Preservation of confidentiality

12 ‘‘In any prosecution or other proceeding under this

13 chapter, the court shall enter such orders and take such

14 other action as may be necessary and appropriate to pre15 serve the confidentiality of proprietary economic informa16 tion, consistent with rule 16 of the Federal Rules of Crimi17 nal Procedure, the Federal Rules of Evidence, and other ap18 plicable laws. An interlocutory appeal by the United States

19 shall lie from a decision or order of a district court author20 izing or directing the disclosure of proprietary economic in21 formation.

22 ‘‘§ 1838. Prior authorization requirement

23 ‘‘The United States may not file a charge under this

24 chapter or use a violation of this chapter as a predicate

25 offense under any other law without the personal approval
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1 of the Attorney General, the Deputy Attorney General, or

2 the Assistant Attorney General for the Criminal Division

3 of the Department of Justice or the Acting Attorney Gen4 eral, the Acting Deputy Attorney General, or the Acting As5 sistant Attorney General for the Criminal Division of the

6 Department of Justice.

7 ‘‘§ 1839. Law enforcement and intelligence activities

8 ‘‘This chapter does not prohibit any and shall not im9 pair otherwise lawful activity conducted by an agency or

10 instrumentality of the United States, a State, or a political

11 subdivision of a State.’’.

12 (b) TECHNICAL AMENDMENT.—The table of chapters

13 for title 18, United States Code, is amended by inserting

14 after the item relating to chapter 89 the following new item:

‘‘90. Protection of Proprietary Economic Information .......... 1831’’.

15 (c) REPORT.—Not later than 2 years and 4 years after

16 the date of enactment of this Act, the Attorney General shall

17 report to Congress on the amounts received and distributed

18 from forfeitures of property deposited as provided in section

19 1833(d) of title 18, United States Code, as added by sub20 section (a) of this section.

21 SEC. 4. WIRE AND ELECTRONIC COMMUNICATIONS INTER22 CEPTION AND INTERCEPTION OF ORAL COM23 MUNICATIONS.

24 Section 2516(1)(a) of title 18, United States Code, is

25 amended by inserting ‘‘chapter 90 (relating to economic es-
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1 pionage and protection of proprietary economic informa2 tion in interstate and foreign commerce),’’ after ‘‘title:’’.

3 SEC. 5. PREVENTION OF ECONOMIC ESPIONAGE.

4 (a) IN GENERAL.—Part I of title 18, United States

5 Code, is amended by inserting after chapter 27 the following

6 new chapter:

7 ‘‘CHAPTER 28—ECONOMIC ESPIONAGE

‘‘Sec.

‘‘571. Definitions.

‘‘572. Economic espionage.

‘‘573. Criminal forfeiture.

‘‘574. Civil remedies.

‘‘575. Prior authorization requirement.

‘‘576. Construction with other laws.

‘‘577. Preservation of confidentiality.

‘‘578. Law enforcement and intelligence activities.

8 ‘‘§ 571. Definitions

9 ‘‘For purposes of this chapter, the following definitions

10 shall apply:

11 ‘‘(1) FOREIGN AGENT.—The term ‘foreign agent’

12 means any officer, employee, proxy, servant, delegate,

13 or representative of a foreign government.

14 ‘‘(2) FOREIGN INSTRUMENTALITY.—The term

15 ‘foreign instrumentality’ means any agency, bureau,

16 ministry, component, institution, association, or any

17 legal, commercial, or business organization, corpora18 tion, firm, or entity that is substantially owned, con19 trolled, sponsored, commanded, managed, or domi20 nated by a foreign government or subdivision thereof.
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1 ‘‘(3) OWNER.—The term ‘owner’ means the per2 son or persons in whom, or the government compo3 nent, department, or agency in which, rightful legal,

4 or equitable title to, or license in, proprietary eco5 nomic information is reposed.

6 ‘‘(4) PROPRIETARY ECONOMIC INFORMATION.—

7 The term ‘proprietary economic information’ means

8 all forms and types of financial, business, scientific,

9 technical, economic, or engineering information (in10 cluding data, plans, tools, mechanisms, compounds,

11 formulas, designs, prototypes, processes, procedures,

12 programs, codes, or commercial strategies) whether

13 tangible or intangible, and whether stored, compiled,

14 or memorialized physically, electronically, graphi15 cally, photographically, or in writing, if—

16 ‘‘(A) the owner thereof has taken reasonable

17 measures to keep such information confidential;

18 and

19 ‘‘(B) the information derives independent

20 economic value, actual or potential, from not

21 being generally known to, and not being readily

22 ascertainable through legal means by, the public.

23 ‘‘(5) WITHOUT AUTHORIZATION.—The term

24 ‘without authorization’ means not permitted, ex25 pressly or implicitly, by the owner.
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1 ‘‘§ 572. Economic espionage

2 ‘‘(a) IN GENERAL.—Any person who, with knowledge

3 or reason to believe that he or she is acting on behalf of,

4 or with the intent to benefit, any foreign government, in5 strumentality, or agent, knowingly—

6 ‘‘(1) steals, or without authorization appro7 priates, takes, carries away, or conceals, or by fraud,

8 artifice, or deception obtains proprietary economic

9 information;

10 ‘‘(2) without authorization copies, duplicates,

11 sketches, draws, photographs, downloads, uploads, al12 ters, destroys, photocopies, replicates, transmits, deliv13 ers, sends, mails, communicates, or conveys propri14 etary economic information;

15 ‘‘(3) receives, buys, or possesses proprietary eco16 nomic information, knowing the same to have been

17 stolen or appropriated, obtained, or converted without

18 authorization;

19 ‘‘(4) attempts to commit any offense described in

20 any of paragraphs (1) through (3);

21 ‘‘(5) solicits another to commit any offense de22 scribed in any of paragraphs (1) through (4); or

23 ‘‘(6) conspires with one or more other persons to

24 commit any offense described in any of paragraphs

25 (1) through (4), and one or more of such persons do

26 any act to effect the object of the conspiracy,
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1 shall, except as provided in subsection (b), be fined not more

2 than $500,000, or twice the value of the proprietary eco3 nomic information, whichever is greater, or imprisoned not

4 more than 25 years, or both.

5 ‘‘(b) ORGANIZATIONS.—Any organization that com6 mits any offense described in subsection (a) shall be fined

7 not more than $10,000,000, or twice the value of the propri8 etary economic information, whichever is greater.

9 ‘‘(c) EXCEPTION.—It shall not be a violation of this

10 section to disclose proprietary economic information in the

11 case of—

12 ‘‘(1) appropriate disclosures to Congress; or

13 ‘‘(2) disclosures to an authorized official of an

14 executive agency that are deemed essential to report15 ing a violation of United States law.

16 ‘‘§ 573. Criminal forfeiture

17 ‘‘(a) IN GENERAL.—Notwithstanding any provision of

18 State law to the contrary, any person or organization con19 victed of a violation under this chapter shall forfeit to the

20 United States—

21 ‘‘(1) any property constituting, or derived from,

22 any proceeds the person or organization obtained, di23 rectly or indirectly, as the result of such violation;

24 and
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1 ‘‘(2) any of the property of that person or orga2 nization used, or intended to be used, in any manner

3 or part, to commit or facilitate the commission of

4 such violation.

5 ‘‘(b) COURT ACTION.—The court, in imposing sentence

6 on such person, shall order, in addition to any other sen7 tence imposed pursuant to this chapter, that the person for8 feit to the United States all property described in this sec9 tion.

10 ‘‘(c) APPLICABILITY OF OTHER LAW.—Property sub11 ject to forfeiture under this section, any seizure and disposi12 tion thereof, and any administrative or judicial proceeding

13 in relation thereto, shall be governed by the provisions of

14 section 413 of the Comprehensive Drug Abuse Prevention

15 and Control Act of 1970 (21 U.S.C. 853), other than sub16 section (d) of that section.

17 ‘‘§ 574. Scope of extraterritorial jurisdiction

18 ‘‘(a) This chapter applies to conduct occurring within

19 the United States.

20 ‘‘(b) This chapter also applies to conduct occurring

21 outside the United States if—

22 ‘‘(1) the offender is a natural person who is a

23 citizen or permanent resident alien of the United

24 States, or an organization organized under the laws
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1 of the United States or a State or political subdivi2 sion thereof; or

3 ‘‘(2) an act in furtherance of the offense was

4 committed in the United States.

5 ‘‘§ 575. Civil remedies

6 ‘‘(a) The district courts of the United States shall have

7 jurisdiction to prevent and restrain violations of section

8 572 of this chapter by issuing appropriate orders.

9 ‘‘(b) The Attorney General may institute proceedings

10 under this section. Pending final determination thereof, the

11 court may at any time enter such restraining orders or pro12 hibitions, or take such other actions, including the accept13 ance of satisfactory performance bonds, as it shall deem

14 proper.

15 ‘‘(c) A final judgment or decree rendered in favor of

16 the United States in any criminal proceeding brought by

17 the United States under this chapter shall estop the defend18 ant from denying the essential allegations of the criminal

19 offense in any subsequent civil proceeding brought by the

20 United States.

21 ‘‘§ 576. Prior authorization requirement

22 ‘‘The United States may not file a charge under this

23 chapter or use a violation of this chapter as a predicate

24 offense under any other law without the personal approval

25 of the Attorney General, the Deputy Attorney General, or
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1 the Assistant Attorney General for the Criminal Division

2 of the Department of Justice or the Acting Attorney Gen3 eral, the Acting Deputy Attorney General, or the Acting As4 sistant Attorney General for the Criminal Division of the

5 Department of Justice.

6 ‘‘§ 577. Construction with other laws

7 ‘‘This chapter shall not be construed to preempt or dis8 place any other remedies, whether civil or criminal, pro9 vided by Federal, State, commonwealth, possession, or terri10 torial laws that are applicable to the misappropriation of

11 proprietary economic information.

12 ‘‘§ 578. Preservation of confidentiality

13 ‘‘In any prosecution or other proceeding under this

14 chapter, the court shall enter such orders and take such

15 other action as may be necessary and appropriate to pre16 serve the confidentiality of proprietary economic informa17 tion, consistent with the requirements of the Federal Rules

18 of Criminal Procedure, the Federal Rules of Civil Proce19 dure, the Federal Rules of Evidence, and all other applica20 ble laws. An interlocutory appeal by the United States shall

21 lie from a decision or order of a district court authorizing

22 or directing the disclosure of proprietary economic informa23 tion.
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1 ‘‘§ 579. Law enforcement and intelligence activities

2 ‘‘This chapter does not prohibit, and shall not impair,

3 otherwise lawful activity conducted by an agency of the

4 United States, a State, or a political subdivision of a State,

5 or an intelligence agency of the United States.’’.

6 (b) CLERICAL AMENDMENT.—The table of chapters at

7 the beginning of part I of title 18, United States Code, is

8 amended by inserting after the item relating to chapter 27

9 the following new item:

‘‘28. Economic Espionage ..................................................................... 571’’.

10 (c) CONFORMING AMENDMENT.—Section 2516(1)(a) of

11 title 18, United States Code, is amended by inserting

12 ‘‘chapter 28 (relating to economic espionage),’’ after ‘‘or

13 under the following chapters of this title:’’.

14 SEC. 6. WIRE AND COMPUTER FRAUD.

15 (a) WIRE AND COMPUTER FRAUD.—Section 1343 of

16 title 18, United States Code, is amended—

17 (1) by adding at the end the following new sub18 section:

19 ‘‘(b) SECRET SERVICE JURISDICTION.—The Secretary

20 of the Treasury and the Attorney General are authorized

21 to enter into an agreement under which the United States

22 Secret Service may investigate certain offenses under this

23 section.’’.

24 (b) USE OF CERTAIN TECHNOLOGY TO FACILITATE

25 CRIMINAL CONDUCT.—
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1 (1) INFORMATION.—The Administrative Office of

2 the United States Courts shall establish policies and

3 procedures for the inclusion in all Presentence Re4 ports of information that specifically identifies and

5 describes any use of encryption or scrambling tech6 nology that would be relevant to an enhancement

7 under section 3C1.1 (dealing with Obstructing or Im8 peding the Administration of Justice) of the Sentenc9 ing Guidelines or to offense conduct under the Sen10 tencing Guidelines.

11 (2) COMPILING AND REPORT.—The United States

12 Sentencing Commission shall—

13 (A) compile and analyze any information

14 contained in documentation described in para15 graph (1) relating to the use of encryption or

16 scrambling technology to facilitate or conceal

17 criminal conduct; and

18 (B) based on the information compiled and

19 analyzed under subparagraph (A), annually re20 port to the Congress on the nature and extent of

21 the use of encryption or scrambling technology to

22 facilitate or conceal criminal conduct.

23 (c) Section 1029 of title 18, United States Code, is

24 amended—by striking the (a)(5) in the second place it ap25 pears and replacing it with (a)(8); by striking the (a)(6)
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1 the second place it appears and replacing it with (a)(9);

2 and by adding the following new section:

3 ‘‘(a)(10) knowingly and with intent to defraud uses,

4 produces, traffics in, or possesses any device containing

5 electronically stored monetary value.’’.

6 SEC. 7. TRANSFER OF PERSONS FOUND NOT GUILTY BY

7 REASON OF INSANITY.

8 (a) AMENDMENT OF SECTION 4243 OF TITLE 18.—

9 Section 4243 of title 18, United States Code, is amended

10 by adding at the end the following new subsection:

11 ‘‘(i) CERTAIN PERSONS FOUND NOT GUILTY BY REA12 SON OF INSANITY IN THE DISTRICT OF COLUMBIA.—

13 ‘‘(1) TRANSFER TO CUSTODY OF THE ATTORNEY

14 GENERAL.—Notwithstanding section 301(h) of title 24

15 of the District of Columbia Code, and notwithstand16 ing subsection 4247(j) of this title, all persons who

17 have been committed to a hospital for the mentally ill

18 pursuant to section 301(d)(1) of title 24 of the Dis19 trict of Columbia Code, and for whom the United

20 States has continuing financial responsibility, may be

21 transferred to the custody of the Attorney General,

22 who shall hospitalize the person for treatment in a

23 suitable facility.

24 ‘‘(2) APPLICATION.—
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1 ‘‘(A) IN GENERAL.—The Attorney General

2 may establish custody over such persons by filing

3 an application in the United States District

4 Court for the District of Columbia, demonstrat5 ing that the person to be transferred is a person

6 described in this subsection.

7 ‘‘(B) NOTICE.—The Attorney General shall,

8 by any means reasonably designed to do so, pro9 vide written notice of the proposed transfer of

10 custody to such person or such person’s guard11 ian, legal representative, or other lawful agent.

12 The person to be transferred shall be afforded an

13 opportunity, not to exceed 15 days, to respond to

14 the proposed transfer of custody, and may, at the

15 court’s discretion, be afforded a hearing on the

16 proposed transfer of custody. Such hearing, if

17 granted, shall be limited to a determination of

18 whether the constitutional rights of such person

19 would be violated by the proposed transfer of cus20 tody.

21 ‘‘(C) ORDER.—Upon application of the At22 torney General, the court shall order the person

23 transferred to the custody of the Attorney Gen24 eral, unless, pursuant to a hearing under this

25 paragraph, the court finds that the proposed
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1 transfer would violate a right of such person

2 under the United States Constitution.

3 ‘‘(D) EFFECT.—Nothing in this paragraph

4 shall be construed to—

5 ‘‘(i) create in any person a liberty in6 terest in being granted a hearing or notice

7 on any matter;

8 ‘‘(ii) create in favor of any person a

9 cause of action against the United States or

10 any officer or employee of the United

11 States; or

12 ‘‘(iii) limit in any manner or degree

13 the ability of the Attorney General to move,

14 transfer, or otherwise manage any person

15 committed to the custody of the Attorney

16 General.

17 ‘‘(3) CONSTRUCTION WITH OTHER SECTIONS.—

18 Subsections (f) and (g) and section 4247 shall apply

19 to any person transferred to the custody of the Attor20 ney General pursuant to this subsection.’’.

21 (b) TRANSFER OF RECORDS.—Notwithstanding any

22 provision of the District of Columbia Code or any other pro23 vision of law, the District of Columbia and St. Elizabeth’s

24 Hospital—
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1 (1) not later than 30 days after the date of en2 actment of this Act, shall provide to the Attorney

3 General copies of all records in the custody or control

4 of the District or the Hospital on such date of enact5 ment pertaining to persons described in section

6 4243(i) of title 18, United States Code (as added by

7 subsection (a));

8 (2) not later than 30 days after the creation of

9 any records by employees, agents, or contractors of the

10 District of Columbia or of St. Elizabeth’s Hospital

11 pertaining to persons described in section 4243(i) of

12 title 18, United States Code, provide to the Attorney

13 General copies of all such records created after the

14 date of enactment of this Act;

15 (3) shall not prevent or impede any employee,

16 agent, or contractor of the District of Columbia or of

17 St. Elizabeth’s Hospital who has obtained knowledge

18 of the persons described in section 4243(i) of title 18,

19 United States Code, in the employee’s professional ca20 pacity from providing that knowledge to the Attorney

21 General, nor shall civil or criminal liability attach to

22 such employees, agents, or contractors who provide

23 such knowledge; and

24 (4) shall not prevent or impede interviews of per25 sons described in section 4243(i) of title 18, United
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1 States Code, by representatives of the Attorney Gen2 eral, if such persons voluntarily consent to such inter3 views.

4 (c) CLARIFICATION OF EFFECT ON CERTAIN TESTI5 MONIAL PRIVILEGES.—The amendments made by this sec6 tion shall not be construed to affect in any manner any

7 doctor-patient or psychotherapist-patient testimonial privi8 lege that may be otherwise applicable to persons found not

9 guilty by reason of insanity and affected by this section.

10 (d) SEVERABILITY.—If any provision of this section,

11 an amendment made by this section, or the application of

12 such provision or amendment to any person or cir13 cumstance is held to be unconstitutional, the remainder of

14 this section and the amendments made by this section shall

15 not be affected thereby.

16 SEC. 8. ESTABLISHING BOYS AND GIRLS CLUBS.

17 (a) FINDINGS AND PURPOSE.—

18 (1) FINDINGS.—The Congress finds that—

19 (A) the Boys and Girls Clubs of America,

20 chartered by an Act of Congress on December 10,

21 1991, during its 90-year history as a national

22 organization, has proven itself as a positive force

23 in the communities it serves;

24 (B) there are 1,810 Boys and Girls Clubs

25 facilities throughout the United States, Puerto
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1 Rico, and the United States Virgin Islands, serv2 ing 2,420,000 youths nationwide;

3 (C) 71 percent of the young people who ben4 efit from Boys and Girls Clubs programs live in

5 our inner cities and urban areas;

6 (D) Boys and Girls Clubs are locally run

7 and have been exceptionally successful in bal8 ancing public funds with private sector dona9 tions and maximizing community involvement;

10 (E) Boys and Girls Clubs are located in

11 289 public housing sites across the Nation;

12 (F) public housing projects in which there is

13 an active Boys and Girls Club have experienced

14 a 25 percent reduction in the presence of crack

15 cocaine, a 22 percent reduction in overall drug

16 activity, and a 13 percent reduction in juvenile

17 crime;

18 (G) these results have been achieved in the

19 face of national trends in which overall drug use

20 by youth has increased 105 percent since 1992

21 and 10.9 percent of the Nation’s young people

22 use drugs on a monthly basis; and

23 (H) many public housing projects and other

24 distressed areas are still underserved by Boys

25 and Girls Clubs.
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1 (2) PURPOSE.—It is the purpose of this section

2 to provide adequate resources in the form of seed

3 money for the Boys and Girls Clubs of America to es4 tablish 1,000 additional local Boys and Girls Clubs

5 in public housing projects and other distressed areas

6 by 2001.

7 (b) DEFINITIONS.—For purposes of this section—

8 (1) the terms ‘‘public housing’’ and ‘‘project’’

9 have the same meanings as in section 3(b) of the

10 United States Housing Act of 1937; and

11 (2) the term ‘‘distressed area’’ means an urban,

12 suburban, or rural area with a high percentage of

13 high risk youth as defined in section 509A of the Pub14 lic Health Service Act (42 U.S.C. 290aa–8(f)).

15 (c) ESTABLISHMENT.—

16 (1) IN GENERAL.—For each of the fiscal years

17 1997, 1998, 1999, 2000, and 2001, the Director of the

18 Bureau of Justice Assistance of the Department of

19 Justice shall provide a grant to the Boys and Girls

20 Clubs of America for the purpose of establishing Boys

21 and Girls Clubs in public housing projects and other

22 distressed areas.

23 (2) CONTRACTING AUTHORITY.—Where appro24 priate, the Secretary of Housing and Urban Develop25 ment, in consultation with the Attorney General, shall
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1 enter into contracts with the Boys and Girls Clubs of

2 America to establish clubs pursuant to the grants

3 under paragraph (1).

4 (d) REPORT.—Not later than May 1 of each fiscal year

5 for which amounts are made available to carry out this Act,

6 the Attorney General shall submit to the Committees on the

7 Judiciary of the Senate and the House of Representatives

8 a report that details the progress made under this Act in

9 establishing Boys and Girls Clubs in public housing

10 projects and other distressed areas, and the effectiveness of

11 the programs in reducing drug abuse and juvenile crime.

12 (e) AUTHORIZATION OF APPROPRIATIONS.—

13 (1) IN GENERAL.—There are authorized to be ap14 propriated to carry out this section—

15 (A) $20,000,000 for fiscal year 1997;

16 (B) $20,000,000 for fiscal year 1998;

17 (C) $20,000,000 for fiscal year 1999;

18 (D) $20,000,000 for fiscal year 2000; and

19 (E) $20,000,000 for fiscal year 2001.

20 (2) VIOLENT CRIME REDUCTION TRUST FUND.—

21 The sums authorized to be appropriated by this sub-
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1 section may be made from the Violent Crime Reduc2 tion Trust Fund.

Attest:

Secretary.
104TH CONGRESS

2D SESSION H. R. 3723

AMENDMENT
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