In the Senate of the United States,
September 18, 1996.
Resolved, That the bill from the House of Representa-
tives (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:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Economic Espionage
Act of 1996’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) sustaining a healthy and competitive na-
tional economy is imperative;
(2) the development and production of propri-
etary economic information involves every aspect of
interstate commerce and business;
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(3) the development, production, protection, and
lawful exchange, sale, and transfer of proprietary eco-
nomic information is essential to maintaining the
health and competitiveness of interstate commerce and
the national economy;
(4) much proprietary economic information
moves in interstate and foreign commerce and propri-
etary economic information that does not move in
interstate or foreign commerce directly and substan-
tially affects proprietary economic information that
does;
(5) the theft, wrongful destruction or alteration,
misappropriation, and wrongful conversion of propri-
etary economic information substantially affects and
harms interstate commerce, costing United States
firms, businesses, industries, and consumers millions
of dollars each year; and
(6) enforcement of existing State laws protecting
proprietary economic information is frustrated by the
ease with which stolen or wrongfully appropriated
proprietary economic information is transferred
across State and national boundaries.
(b) PURPOSE.—The purpose of this Act is—
(1) to promote the development and lawful utili-
zation of United States proprietary economic infor-
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mation produced for, or placed in, interstate and for-
eign commerce by protecting it from theft, wrongful
destruction or alteration, misappropriation, and con-
version; and
(2) to secure to authors and inventors the exclu-
sive right to their respective writings and discoveries.
SEC. 3. PREVENTION OF ECONOMIC ESPIONAGE AND PRO-
TECTION OF PROPRIETARY ECONOMIC IN-
FORMATION IN INTERSTATE AND FOREIGN
COMMERCE.
(a) IN GENERAL.—Title 18, United States Code, is
amended by inserting after chapter 89 the following new
chapter:
‘‘CHAPTER 90—PROTECTION OF
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.
‘‘§ 1831. Definitions
‘‘As used in this chapter:
‘‘(1) The term ‘person’ means a natural person,
corporation, agency, association, institution, or any
other legal, commercial, or business entity.
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‘‘(2) The term ‘proprietary economic informa-
tion’ means all forms and types of financial, business,
scientific, technical, economic, or engineering infor-
mation, including data, plans, tools, mechanisms,
compounds, formulas, designs, prototypes, processes,
procedures, programs, codes, or commercial strategies,
whether tangible or intangible, and whether stored,
compiled, or memorialized physically, electronically,
graphically, photographically, or in writing that—
‘‘(A) the owner thereof has taken reasonable
measures, under the circumstances, to keep such
information confidential; and
‘‘(B) the information derives independent
economic value, actual or potential, from not
being generally known to, and not being readily
ascertainable, acquired, or developed by legal
means by the public.
The term does not include any general knowledge, ex-
perience, training, or skill that a person lawfully has
acquired due to his work as an employee of or as an
independent contractor for any person.
‘‘(3) The term ‘owner’ means the person or per-
sons in whom, or government component, department,
or agency in which, rightful legal, or equitable title
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to, or license in, proprietary economic information is
reposed.
‘‘(4) The term ‘without authorization’ means not
permitted, expressly or implicitly, by the owner.
‘‘§ 1832. Criminal activities affecting proprietary eco-
nomic information
‘‘(a) Any person, with intent to, or reason to believe
that it will, injure any owner of proprietary economic in-
formation and with intent to convert it to his or her own
use or benefit or the use or benefit of another, who know-
ingly—
‘‘(1) steals, or without authorization appro-
priates, takes, carries away, or conceals, or by fraud,
artifice, or deception obtains such information;
‘‘(2) without authorization copies, duplicates,
sketches, draws, photographs, downloads, uploads, al-
ters, destroys, photocopies, replicates, transmits, deliv-
ers, sends, mails, communicates, or conveys such in-
formation;
‘‘(3) receives, buys, or possesses such information,
knowing the same to have been stolen or appro-
priated, obtained, or converted without authorization;
‘‘(4) attempts to commit any offense described in
paragraphs (1) through (3);
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‘‘(5) solicits another to commit any offense de-
scribed in paragraphs (1) through (3); or
‘‘(6) conspires with one or more other persons to
commit any offense described in paragraphs (1)
through (3), and one or more of such persons do any
act to effect the object of the conspiracy,
shall, except as provided in subsection (b), be fined up to
$250,000, or twice the value of the proprietary economic
information, whichever is greater, or imprisoned not more
than 10 years, or both.
‘‘(b) Any organization that commits any offense de-
scribed in subsection (a) shall be fined up to $10,000,000,
or twice the value of the proprietary economic information,
whichever is greater.
‘‘(c) This section does not prohibit the reporting of any
suspected criminal activity or regulatory violation to any
appropriate agency or instrumentality of the United States,
a State, a political subdivision of a State, or to Congress.
‘‘§ 1833. Criminal forfeiture
‘‘(a) Notwithstanding any provision of State law, any
person or organization convicted of a violation under this
chapter shall forfeit to the United States—
‘‘(1) any property constituting or derived from,
any proceeds the person or organization obtained, di-
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rectly or indirectly, as the result of such violation;
and
‘‘(2) any of the person’s or organization’s prop-
erty used, or intended to be used, in any manner or
part to commit or facilitate the commission of such
violation.
‘‘(b) The court, in imposing a sentence on such person
or organization, shall order, in addition to any other sen-
tence imposed pursuant to this chapter, that the person or
organization forfeit to the United States all property de-
scribed in this section.
‘‘(c) Property subject to forfeiture under this section,
any seizure and disposition thereof, and any administrative
or judicial proceeding in relation thereto, shall be governed
by section 413 of the Comprehensive Drug Abuse Prevention
and Control Act of 1970 (21 U.S.C. 853), except for sub-
section 413(d) which shall not apply to forfeitures under
this section.
‘‘(d) Notwithstanding section 524(c) of title 28, there
shall be deposited in the Crime Victims Fund established
under section 1402 of the Victims of Crime Act of 1984 (42
U.S.C. 10601) all amounts from the forfeiture of property
under this section remaining after the payment of expenses
and sale authorized by law.
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‘‘§ 1834. Civil remedies
‘‘(a) The district courts of the United States shall have
jurisdiction to prevent and restrain violations of sections
1832 of this chapter by issuing appropriate orders.
‘‘(b) The Attorney General may institute proceedings
under this section. Pending final determination thereof, the
court may at any time enter such restraining orders or pro-
hibitions, or take such other actions, including the accept-
ance of satisfactory performance bonds, as it shall deem
proper.
‘‘(c) A final judgment or decree rendered in favor of
the United States in any criminal proceeding brought by
the United States under this chapter shall estop the defend-
ant from denying the essential allegations of the criminal
offense in any subsequent civil proceeding brought by the
United States.
‘‘§ 1835. Extraterritoriality
‘‘(a) This chapter applies to conduct occurring within
the United States.
‘‘(b) This chapter also applies to conduct occurring
outside the United States if—
‘‘(1) the offender is a natural person who is a
citizen or permanent resident alien of the United
States, or an organization organized under the laws
of the United States or a State or political subdivi-
sion thereof; or
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‘‘(2) an act in furtherance of the offense was
committed in the United States.
‘‘§ 1836. Construction with other laws
‘‘This chapter shall not be construed to preempt or dis-
place any other Federal or State remedies, whether civil or
criminal, for the misappropriation of proprietary economic
information, or to affect the otherwise lawful disclosure of
information by any government employee under section 552
of title 5 (commonly known as the Freedom of Information
Act).
‘‘§ 1837. Preservation of confidentiality
‘‘In any prosecution or other proceeding under this
chapter, the court shall enter such orders and take such
other action as may be necessary and appropriate to pre-
serve the confidentiality of proprietary economic informa-
tion, consistent with rule 16 of the Federal Rules of Crimi-
nal Procedure, the Federal Rules of Evidence, and other ap-
plicable laws. An interlocutory appeal by the United States
shall lie from a decision or order of a district court author-
izing or directing the disclosure of proprietary economic in-
formation.
‘‘§ 1838. Prior authorization requirement
‘‘The United States may not file a charge under this
chapter or use a violation of this chapter as a predicate
offense under any other law without the personal approval
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of the Attorney General, the Deputy Attorney General, or
the Assistant Attorney General for the Criminal Division
of the Department of Justice or the Acting Attorney Gen-
eral, the Acting Deputy Attorney General, or the Acting As-
sistant Attorney General for the Criminal Division of the
Department of Justice.
‘‘§ 1839. Law enforcement and intelligence activities
‘‘This chapter does not prohibit any and shall not im-
pair otherwise lawful activity conducted by an agency or
instrumentality of the United States, a State, or a political
subdivision of a State.’’.
(b) TECHNICAL AMENDMENT.—The table of chapters
for title 18, United States Code, is amended by inserting
after the item relating to chapter 89 the following new item:
‘‘90. Protection of Proprietary Economic Information .......... 1831’’.
(c) REPORT.—Not later than 2 years and 4 years after
the date of enactment of this Act, the Attorney General shall
report to Congress on the amounts received and distributed
from forfeitures of property deposited as provided in section
1833(d) of title 18, United States Code, as added by sub-
section (a) of this section.
SEC. 4. WIRE AND ELECTRONIC COMMUNICATIONS INTER-
CEPTION AND INTERCEPTION OF ORAL COM-
MUNICATIONS.
Section 2516(1)(a) of title 18, United States Code, is
amended by inserting ‘‘chapter 90 (relating to economic es-
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pionage and protection of proprietary economic informa-
tion in interstate and foreign commerce),’’ after ‘‘title:’’.
SEC. 5. PREVENTION OF ECONOMIC ESPIONAGE.
(a) IN GENERAL.—Part I of title 18, United States
Code, is amended by inserting after chapter 27 the following
new chapter:
‘‘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.
‘‘§ 571. Definitions
‘‘For purposes of this chapter, the following definitions
shall apply:
‘‘(1) FOREIGN AGENT.—The term ‘foreign agent’
means any officer, employee, proxy, servant, delegate,
or representative of a foreign government.
‘‘(2) FOREIGN
INSTRUMENTALITY.—The term
‘foreign instrumentality’ means any agency, bureau,
ministry, component, institution, association, or any
legal, commercial, or business organization, corpora-
tion, firm, or entity that is substantially owned, con-
trolled, sponsored, commanded, managed, or domi-
nated by a foreign government or subdivision thereof.
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‘‘(3) OWNER.—The term ‘owner’ means the per-
son or persons in whom, or the government compo-
nent, department, or agency in which, rightful legal,
or equitable title to, or license in, proprietary eco-
nomic information is reposed.
‘‘(4) PROPRIETARY
ECONOMIC
INFORMATION.—
The term ‘proprietary economic information’ means
all forms and types of financial, business, scientific,
technical, economic, or engineering information (in-
cluding data, plans, tools, mechanisms, compounds,
formulas, designs, prototypes, processes, procedures,
programs, codes, or commercial strategies) whether
tangible or intangible, and whether stored, compiled,
or memorialized physically, electronically, graphi-
cally, photographically, or in writing, if—
‘‘(A) the owner thereof has taken reasonable
measures to keep such information confidential;
and
‘‘(B) the information derives independent
economic value, actual or potential, from not
being generally known to, and not being readily
ascertainable through legal means by, the public.
‘‘(5) 
WITHOUT
AUTHORIZATION.—The 
term
‘without authorization’ means not permitted, ex-
pressly or implicitly, by the owner.
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‘‘§ 572. Economic espionage
‘‘(a) IN GENERAL.—Any person who, with knowledge
or reason to believe that he or she is acting on behalf of,
or with the intent to benefit, any foreign government, in-
strumentality, or agent, knowingly—
‘‘(1) steals, or without authorization appro-
priates, takes, carries away, or conceals, or by fraud,
artifice, or deception obtains proprietary economic
information;
‘‘(2) without authorization copies, duplicates,
sketches, draws, photographs, downloads, uploads, al-
ters, destroys, photocopies, replicates, transmits, deliv-
ers, sends, mails, communicates, or conveys propri-
etary economic information;
‘‘(3) receives, buys, or possesses proprietary eco-
nomic information, knowing the same to have been
stolen or appropriated, obtained, or converted without
authorization;
‘‘(4) attempts to commit any offense described in
any of paragraphs (1) through (3);
‘‘(5) solicits another to commit any offense de-
scribed in any of paragraphs (1) through (4); or
‘‘(6) conspires with one or more other persons to
commit any offense described in any of paragraphs
(1) through (4), and one or more of such persons do
any act to effect the object of the conspiracy,
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shall, except as provided in subsection (b), be fined not more
than $500,000, or twice the value of the proprietary eco-
nomic information, whichever is greater, or imprisoned not
more than 25 years, or both.
‘‘(b) ORGANIZATIONS.—Any organization that com-
mits any offense described in subsection (a) shall be fined
not more than $10,000,000, or twice the value of the propri-
etary economic information, whichever is greater.
‘‘(c) EXCEPTION.—It shall not be a violation of this
section to disclose proprietary economic information in the
case of—
‘‘(1) appropriate disclosures to Congress; or
‘‘(2) disclosures to an authorized official of an
executive agency that are deemed essential to report-
ing a violation of United States law.
‘‘§ 573. Criminal forfeiture
‘‘(a) IN GENERAL.—Notwithstanding any provision of
State law to the contrary, any person or organization con-
victed of a violation under this chapter shall forfeit to the
United States—
‘‘(1) any property constituting, or derived from,
any proceeds the person or organization obtained, di-
rectly or indirectly, as the result of such violation;
and
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‘‘(2) any of the property of that person or orga-
nization used, or intended to be used, in any manner
or part, to commit or facilitate the commission of
such violation.
‘‘(b) COURT ACTION.—The court, in imposing sentence
on such person, shall order, in addition to any other sen-
tence imposed pursuant to this chapter, that the person for-
feit to the United States all property described in this sec-
tion.
‘‘(c) APPLICABILITY OF OTHER LAW.—Property sub-
ject to forfeiture under this section, any seizure and disposi-
tion thereof, and any administrative or judicial proceeding
in relation thereto, shall be governed by the provisions of
section 413 of the Comprehensive Drug Abuse Prevention
and Control Act of 1970 (21 U.S.C. 853), other than sub-
section (d) of that section.
‘‘§ 574. Scope of extraterritorial jurisdiction
‘‘(a) This chapter applies to conduct occurring within
the United States.
‘‘(b) This chapter also applies to conduct occurring
outside the United States if—
‘‘(1) the offender is a natural person who is a
citizen or permanent resident alien of the United
States, or an organization organized under the laws
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of the United States or a State or political subdivi-
sion thereof; or
‘‘(2) an act in furtherance of the offense was
committed in the United States.
‘‘§ 575. Civil remedies
‘‘(a) The district courts of the United States shall have
jurisdiction to prevent and restrain violations of section
572 of this chapter by issuing appropriate orders.
‘‘(b) The Attorney General may institute proceedings
under this section. Pending final determination thereof, the
court may at any time enter such restraining orders or pro-
hibitions, or take such other actions, including the accept-
ance of satisfactory performance bonds, as it shall deem
proper.
‘‘(c) A final judgment or decree rendered in favor of
the United States in any criminal proceeding brought by
the United States under this chapter shall estop the defend-
ant from denying the essential allegations of the criminal
offense in any subsequent civil proceeding brought by the
United States.
‘‘§ 576. Prior authorization requirement
‘‘The United States may not file a charge under this
chapter or use a violation of this chapter as a predicate
offense under any other law without the personal approval
of the Attorney General, the Deputy Attorney General, or
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the Assistant Attorney General for the Criminal Division
of the Department of Justice or the Acting Attorney Gen-
eral, the Acting Deputy Attorney General, or the Acting As-
sistant Attorney General for the Criminal Division of the
Department of Justice.
‘‘§ 577. Construction with other laws
‘‘This chapter shall not be construed to preempt or dis-
place any other remedies, whether civil or criminal, pro-
vided by Federal, State, commonwealth, possession, or terri-
torial laws that are applicable to the misappropriation of
proprietary economic information.
‘‘§ 578. Preservation of confidentiality
‘‘In any prosecution or other proceeding under this
chapter, the court shall enter such orders and take such
other action as may be necessary and appropriate to pre-
serve the confidentiality of proprietary economic informa-
tion, consistent with the requirements of the Federal Rules
of Criminal Procedure, the Federal Rules of Civil Proce-
dure, the Federal Rules of Evidence, and all other applica-
ble laws. An interlocutory appeal by the United States shall
lie from a decision or order of a district court authorizing
or directing the disclosure of proprietary economic informa-
tion.
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‘‘§ 579. Law enforcement and intelligence activities
‘‘This chapter does not prohibit, and shall not impair,
otherwise lawful activity conducted by an agency of the
United States, a State, or a political subdivision of a State,
or an intelligence agency of the United States.’’.
(b) CLERICAL AMENDMENT.—The table of chapters at
the beginning of part I of title 18, United States Code, is
amended by inserting after the item relating to chapter 27
the following new item:
‘‘28. Economic Espionage .....................................................................
571’’.
(c) CONFORMING AMENDMENT.—Section 2516(1)(a) of
title 18, United States Code, is amended by inserting
‘‘chapter 28 (relating to economic espionage),’’ after ‘‘or
under the following chapters of this title:’’.
SEC. 6. WIRE AND COMPUTER FRAUD.
(a) WIRE AND COMPUTER FRAUD.—Section 1343 of
title 18, United States Code, is amended—
(1) by adding at the end the following new sub-
section:
‘‘(b) SECRET SERVICE JURISDICTION.—The Secretary
of the Treasury and the Attorney General are authorized
to enter into an agreement under which the United States
Secret Service may investigate certain offenses under this
section.’’.
(b) USE OF CERTAIN TECHNOLOGY TO FACILITATE
CRIMINAL CONDUCT.—
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(1) INFORMATION.—The Administrative Office of
the United States Courts shall establish policies and
procedures for the inclusion in all Presentence Re-
ports of information that specifically identifies and
describes any use of encryption or scrambling tech-
nology that would be relevant to an enhancement
under section 3C1.1 (dealing with Obstructing or Im-
peding the Administration of Justice) of the Sentenc-
ing Guidelines or to offense conduct under the Sen-
tencing Guidelines.
(2) COMPILING AND REPORT.—The United States
Sentencing Commission shall—
(A) compile and analyze any information
contained in documentation described in para-
graph (1) relating to the use of encryption or
scrambling technology to facilitate or conceal
criminal conduct; and
(B) based on the information compiled and
analyzed under subparagraph (A), annually re-
port to the Congress on the nature and extent of
the use of encryption or scrambling technology to
facilitate or conceal criminal conduct.
(c) Section 1029 of title 18, United States Code, is
amended—by striking the (a)(5) in the second place it ap-
pears and replacing it with (a)(8); by striking the (a)(6)
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the second place it appears and replacing it with (a)(9);
and by adding the following new section:
‘‘(a)(10) knowingly and with intent to defraud uses,
produces, traffics in, or possesses any device containing
electronically stored monetary value.’’.
SEC. 7. TRANSFER OF PERSONS FOUND NOT GUILTY BY
REASON OF INSANITY.
(a) AMENDMENT OF SECTION 4243 OF TITLE 18.—
Section 4243 of title 18, United States Code, is amended
by adding at the end the following new subsection:
‘‘(i) CERTAIN PERSONS FOUND NOT GUILTY BY REA-
SON OF INSANITY IN THE DISTRICT OF COLUMBIA.—
‘‘(1) TRANSFER TO CUSTODY OF THE ATTORNEY
GENERAL.—Notwithstanding section 301(h) of title 24
of the District of Columbia Code, and notwithstand-
ing subsection 4247(j) of this title, all persons who
have been committed to a hospital for the mentally ill
pursuant to section 301(d)(1) of title 24 of the Dis-
trict of Columbia Code, and for whom the United
States has continuing financial responsibility, may be
transferred to the custody of the Attorney General,
who shall hospitalize the person for treatment in a
suitable facility.
‘‘(2) APPLICATION.—
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‘‘(A) IN GENERAL.—The Attorney General
may establish custody over such persons by filing
an application in the United States District
Court for the District of Columbia, demonstrat-
ing that the person to be transferred is a person
described in this subsection.
‘‘(B) NOTICE.—The Attorney General shall,
by any means reasonably designed to do so, pro-
vide written notice of the proposed transfer of
custody to such person or such person’s guard-
ian, legal representative, or other lawful agent.
The person to be transferred shall be afforded an
opportunity, not to exceed 15 days, to respond to
the proposed transfer of custody, and may, at the
court’s discretion, be afforded a hearing on the
proposed transfer of custody. Such hearing, if
granted, shall be limited to a determination of
whether the constitutional rights of such person
would be violated by the proposed transfer of cus-
tody.
‘‘(C) ORDER.—Upon application of the At-
torney General, the court shall order the person
transferred to the custody of the Attorney Gen-
eral, unless, pursuant to a hearing under this
paragraph, the court finds that the proposed
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transfer would violate a right of such person
under the United States Constitution.
‘‘(D) EFFECT.—Nothing in this paragraph
shall be construed to—
‘‘(i) create in any person a liberty in-
terest in being granted a hearing or notice
on any matter;
‘‘(ii) create in favor of any person a
cause of action against the United States or
any officer or employee of the United
States; or
‘‘(iii) limit in any manner or degree
the ability of the Attorney General to move,
transfer, or otherwise manage any person
committed to the custody of the Attorney
General.
‘‘(3) CONSTRUCTION WITH OTHER SECTIONS.—
Subsections (f) and (g) and section 4247 shall apply
to any person transferred to the custody of the Attor-
ney General pursuant to this subsection.’’.
(b) TRANSFER OF RECORDS.—Notwithstanding any
provision of the District of Columbia Code or any other pro-
vision of law, the District of Columbia and St. Elizabeth’s
Hospital—
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(1) not later than 30 days after the date of en-
actment of this Act, shall provide to the Attorney
General copies of all records in the custody or control
of the District or the Hospital on such date of enact-
ment pertaining to persons described in section
4243(i) of title 18, United States Code (as added by
subsection (a));
(2) not later than 30 days after the creation of
any records by employees, agents, or contractors of the
District of Columbia or of St. Elizabeth’s Hospital
pertaining to persons described in section 4243(i) of
title 18, United States Code, provide to the Attorney
General copies of all such records created after the
date of enactment of this Act;
(3) shall not prevent or impede any employee,
agent, or contractor of the District of Columbia or of
St. Elizabeth’s Hospital who has obtained knowledge
of the persons described in section 4243(i) of title 18,
United States Code, in the employee’s professional ca-
pacity from providing that knowledge to the Attorney
General, nor shall civil or criminal liability attach to
such employees, agents, or contractors who provide
such knowledge; and
(4) shall not prevent or impede interviews of per-
sons described in section 4243(i) of title 18, United
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States Code, by representatives of the Attorney Gen-
eral, if such persons voluntarily consent to such inter-
views.
(c) CLARIFICATION OF EFFECT ON CERTAIN TESTI-
MONIAL PRIVILEGES.—The amendments made by this sec-
tion shall not be construed to affect in any manner any
doctor-patient or psychotherapist-patient testimonial privi-
lege that may be otherwise applicable to persons found not
guilty by reason of insanity and affected by this section.
(d) SEVERABILITY.—If any provision of this section,
an amendment made by this section, or the application of
such provision or amendment to any person or cir-
cumstance is held to be unconstitutional, the remainder of
this section and the amendments made by this section shall
not be affected thereby.
SEC. 8. ESTABLISHING BOYS AND GIRLS CLUBS.
(a) FINDINGS AND PURPOSE.—
(1) FINDINGS.—The Congress finds that—
(A) the Boys and Girls Clubs of America,
chartered by an Act of Congress on December 10,
1991, during its 90-year history as a national
organization, has proven itself as a positive force
in the communities it serves;
(B) there are 1,810 Boys and Girls Clubs
facilities throughout the United States, Puerto
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Rico, and the United States Virgin Islands, serv-
ing 2,420,000 youths nationwide;
(C) 71 percent of the young people who ben-
efit from Boys and Girls Clubs programs live in
our inner cities and urban areas;
(D) Boys and Girls Clubs are locally run
and have been exceptionally successful in bal-
ancing public funds with private sector dona-
tions and maximizing community involvement;
(E) Boys and Girls Clubs are located in
289 public housing sites across the Nation;
(F) public housing projects in which there is
an active Boys and Girls Club have experienced
a 25 percent reduction in the presence of crack
cocaine, a 22 percent reduction in overall drug
activity, and a 13 percent reduction in juvenile
crime;
(G) these results have been achieved in the
face of national trends in which overall drug use
by youth has increased 105 percent since 1992
and 10.9 percent of the Nation’s young people
use drugs on a monthly basis; and
(H) many public housing projects and other
distressed areas are still underserved by Boys
and Girls Clubs.
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(2) PURPOSE.—It is the purpose of this section
to provide adequate resources in the form of seed
money for the Boys and Girls Clubs of America to es-
tablish 1,000 additional local Boys and Girls Clubs
in public housing projects and other distressed areas
by 2001.
(b) DEFINITIONS.—For purposes of this section—
(1) the terms ‘‘public housing’’ and ‘‘project’’
have the same meanings as in section 3(b) of the
United States Housing Act of 1937; and
(2) the term ‘‘distressed area’’ means an urban,
suburban, or rural area with a high percentage of
high risk youth as defined in section 509A of the Pub-
lic Health Service Act (42 U.S.C. 290aa–8(f)).
(c) ESTABLISHMENT.—
(1) IN GENERAL.—For each of the fiscal years
1997, 1998, 1999, 2000, and 2001, the Director of the
Bureau of Justice Assistance of the Department of
Justice shall provide a grant to the Boys and Girls
Clubs of America for the purpose of establishing Boys
and Girls Clubs in public housing projects and other
distressed areas.
(2) CONTRACTING
AUTHORITY.—Where appro-
priate, the Secretary of Housing and Urban Develop-
ment, in consultation with the Attorney General, shall