USA PATRIOT Improvement and Reauthorization Act of 2005 (H.R. 3199): Section-by-Section Analysis of the Conference Bill

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USA PATRIOT Improvement and Reauthorization

Act of 2005 (H.R. 3199): Section-by-Section

Analysis of the Conference Bill

Updated February 3, 2006

Brian T. Yeh

Legislative Attorney

American Law Division

Charles Doyle

Senior Specialist

American Law Division

Congressional Research Service ˜ The Library of Congress

USA PATRIOT Improvement and Reauthorization Act

of 2005 (H.R. 3199): Section-by-Section Analysis

of the Conference Bill

Summary

The USA PATRIOT Improvement and Reauthorization Act of 2005, H.R. 3199,

as reported by the Conference Committee, H.Rept. 109-333 (2005), consists of seven

titles.

Among other things, Title I makes permanent 14 USA PATRIOT Act sections

scheduled to expire on March 10, 2006, as well as the terrorism support amendments

scheduled to expire on December 31, 2006. It amends and postpones until December

31, 2009, the expiration of the act’s sections 206 and 215 relating to Foreign

Intelligence Surveillance Act (FISA) orders for roving wiretaps and access to

business records. It extends the temporary FISA “lone wolf” provision to the same

date. It clarifies and amends the “National Security Letter” statutes in a manner

designed to ensure their constitutional viability and for other purposes. It authorizes

court orders approving wiretapping in the course of investigations of a number of

terrorism-related offenses.

As for other proposals reported out of conference, Title II revives the death

penalty as a sentencing option for air piracy murders committed between 1974 and

1994, permits certain terrorists to be sentenced to a lifetime of supervision following

their release from prison, and eliminates the redundant capital punishment procedures

found in the Controlled Substances Act. It does not include the other capital

punishment adjustments found in the bill which the House sent to conference. Title

III carries forward the anti-terrorism, anti-crime proposals found in a separate freestanding seaport protection bill. Title IV reflects in modified form House and Senate

suggestions for amending federal confiscation laws and other money laundering

adjustments.

Titles V and VI of the Conference bill contain provisions added in conference

and not previously included in either House or Senate version of H.R. 3199, some of

which — like the habeas amendments in the case of state death row inmates, the

adjustments in the role of the Office of Intelligence Policy and Review in the FISA

process, or the new Secret Service offenses — may prove controversial. Title VII,

likewise inserted by the conferees, follows the course of separate bills considered in

the House and Senate that seek to curtail illicit methamphetamine production and its

consequences through grant programs, enhanced criminal penalties, and preventing

the diversion of over-the-counter cold remedies and other sources of precursor

chemicals for use in illegal manufacturing.

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Section 1. Short Title and Table of Contents . . . . . . . . . . . . . . . . . . . . 1

Title I: USA PATRIOT Improvement and Reauthorization Act . . . . . . . . . 1

Section 101. References to, and Modification of Short Title for,

USA PATRIOT Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Section 102. USA PATRIOT Act Sunset Provisions . . . . . . . . . . . . . . 2

Section 103. Extension of Sunset Relating to Individual

Terrorists as Agents of Foreign Powers . . . . . . . . . . . . . . . . . . . . . 2

Section 104. Section 2332b and the Material Support Sections

of Title 18, U.S. Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Section 105. Duration of FISA Surveillance of Non-U.S.

Persons Under Section 207 of the USA PATRIOT Act . . . . . . . . 3

Section 106. Access to Certain Business Records Under Section

215 of the USA PATRIOT Act . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Section 106A. Audit on Access to Certain Business Records for

Foreign Intelligence Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Section 107. Enhanced Oversight of Good-Faith Emergency

Disclosures Under Section 212 of the USA PATRIOT Act . . . . . 7

Section 108. Multipoint Electronic Surveillance Under Section

206 of the USA PATRIOT Act . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Section 109. Enhanced Congressional Oversight . . . . . . . . . . . . . . . . 11

Section 110. Attacks Against Railroad Carriers and Mass

Transportation Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Section 111. Forfeiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Section 112. Section 2332b(g)(5)(B) Amendments Relating

to the Definition of Federal Crime of Terrorism . . . . . . . . . . . . . 12

Section 113. Amendments to Section 2516(1) of Title 18,

United States Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Section 114. Delayed Notice Search Warrants . . . . . . . . . . . . . . . . . . 13

Section 115. Judicial Review of National Security Letters . . . . . . . . . 15

Section 116. Confidentiality of National Security Letters . . . . . . . . . . 18

Section 117. Violations of Nondisclosure Provisions of National

Security Letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Section 118. Reports on National Security Letters . . . . . . . . . . . . . . . 18

Section 119. Audit of Use of National Security Letters . . . . . . . . . . . . 19

Section 120. Forfeiture for Acts of Terrorism . . . . . . . . . . . . . . . . . . . 19

Section 121. Cigarette Smuggling . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Section 122. Narco-Terrorism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Section 123. Interfering With the Operation of An Aircraft . . . . . . . . 22

Section 124. Investigation of Political Activities . . . . . . . . . . . . . . . . 22

Section 125. Immunity for Fire Equipment Donors . . . . . . . . . . . . . . . 22

Section 126. Federal Data Mining Report . . . . . . . . . . . . . . . . . . . . . . 22

Section 127. Victims Access Forfeiture Funds . . . . . . . . . . . . . . . . . . 23

Section 128. Information Related to FISA Pen Register . . . . . . . . . . . 23

Title I House Proposals Dropped in Conference . . . . . . . . . . . . . . . . . 25

Title II: Terrorist Death Penalty Enhancement . . . . . . . . . . . . . . . . . . . . . . 26

Section 201. Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Section 211. Pre-1994 Capital Air Piracy Cases . . . . . . . . . . . . . . . . . 26

Section 212. Life Time Supervised Release Regardless of Risks . . . . 28

Section 221. Capital Procedures in Drug Cases . . . . . . . . . . . . . . . . . . 28

Section 222. Appointment of Counsel in Capital Cases . . . . . . . . . . . 29

Title II House Proposals Dropped in Conference . . . . . . . . . . . . . . . . 29

Title III: Seaport Terrorism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Section 301. Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Section 302. Seaport Entry by False Pretenses . . . . . . . . . . . . . . . . . . 30

Section 303. Obstructing Maritime Inspections . . . . . . . . . . . . . . . . . . 32

Section 304. Interference with Maritime Commerce . . . . . . . . . . . . . . 32

Section 305. Transporting Dangerous Materials or Terrorists . . . . . . . 33

Section 306. Interference With Maritime Navigation . . . . . . . . . . . . . 34

Section 307. Theft From Maritime Commerce . . . . . . . . . . . . . . . . . . 37

Section 308. Stowaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Section 309. Port Security Bribery . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Section 310. Smuggling Goods Into the United States . . . . . . . . . . . . 38

Section 311. Smuggling Goods From the United States . . . . . . . . . . . 38

Title III House Proposals Dropped in Conference . . . . . . . . . . . . . . . . 39

Title IV: Terrorism Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Section 401. Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Section 402. International Emergency Economic Powers

Act Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Section 403. Terrorist Money Laundering . . . . . . . . . . . . . . . . . . . . . . 40

Section 404. Forfeiture for Foreign Crimes . . . . . . . . . . . . . . . . . . . . . 42

Section 405. Application of the Money Laundering Statute to

Dependent Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Sections 406-408. Technical Amendments . . . . . . . . . . . . . . . . . . . . . 44

Section 406. Civil Forfeiture Pre-trial Freezes and

Restraining Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Section 406. Conspiracy Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Section 409. Laundering the Proceeds Foreign Terrorist Training . . . 45

Section 410. Uniform Procedures for Criminal Forfeitures . . . . . . . . . 46

Title V: Miscellanea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Section 501. Justice Department Residency Requirements . . . . . . . . . 48

Section 502. Appointment of U.S. Attorneys . . . . . . . . . . . . . . . . . . . 48

Section 503. Presidential Succession: Homeland

Security Secretary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Section 504. Confirmation of the Director of BATFE . . . . . . . . . . . . . 48

Section 505. Qualifications for U.S. Marshals . . . . . . . . . . . . . . . . . . 48

Section 506. New Assistant Attorney General for

National Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Section 507. Habeas Corpus in State Capital Cases . . . . . . . . . . . . . . 52

Title VI: Secret Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Section 601. Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Protection of the President and Certain Other Federal Officials . . . . . 55

Special Events of National Significance . . . . . . . . . . . . . . . . . . . . . . . 56

Title VII: Methamphetamine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Subtitle VII A: Precursors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Subtitle VII B: International Regulation of Precursors . . . . . . . . . . . . 65

Subtitle VII C: Enhanced Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Subtitle VII D: Enhanced Cleanup Regulation . . . . . . . . . . . . . . . . . . 67

Subtitle VII E: Drug Courts and Grant Programs . . . . . . . . . . . . . . . . 68

USA PATRIOT Improvement and

Reauthorization Act of 2005 (H.R. 3199):

Section-by-Section Analysis of the

Conference Bill

Introduction

This report provides a section-by-section summary and analysis of the seven

titles of the Conference bill accompanying the USA PATRIOT Improvement and

Reauthorization Act of 2005 (H.R. 3199).1

Section 1. Short Title and Table of Contents.

The short title of the act may be cited as the “USA PATRIOT Improvement and

Reauthorization Act of 2005.”

Title I: USA PATRIOT Improvement and Reauthorization Act

Title I is in many ways the heart of the Conference bill. It makes permanent

most of the USA PATRIOT Act sections initially scheduled to expire on December

31, 2005 and extended until March 10, 2006. To several, like section 215, it adds

safeguards. It addresses issues raised by USA PATRIOT Act sections other than

those for which the sun is setting. It more clearly states the “National Security

Letter” provisions of law, in ways perhaps necessary to make them constitutionally

viable. Elsewhere it looks at the issues faced in the USA PATRIOT Act four years

after the fact. In some instances it adds to the tools available; in others it adds further

checks against abuse.

Section 101. References to, and Modification of Short Title for, USA

PATRIOT Act.

This section explains that references contained in this act are deemed to refer

to P.L. 107-56, the “Uniting and Strengthening America by Providing Appropriate

1

Related CRS Reports by the authors from which portions of this report have been drawn

include CRS Report RL33210, USA PATRIOT Improvement and Reauthorization Act of

2005 (H.R. 3199): A Side-by-Side Comparison of Existing Law, H.R. 3199 (Conference),

and H.R. 3199 (Senate Passed); CRS Report RS22348, USA PATRIOT Improvement and

Reauthorization Act of 2005(H.R. 3199): A Brief Look, both by Brian T. Yeh and Charles

Doyle; and CRS Report RL33027, USA PATRIOT Act: Background and Comparison of

House- and Senate-Approved Reauthorization and Related Legislative Action, by Charles

Doyle.

CRS-2

Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act) of

2001.”

Section 102. USA PATRIOT Act Sunset Provisions.

This section repeals section 224 of the USA PATRIOT Act that had mandated

certain sections of the act to expire on December 31, 2005.2 The section adopts a

sunset of December 31, 2009, for section 206 (regarding Foreign Intelligence

Surveillance Act (FISA) court orders for multipoint, or “roving,” wiretaps) and

section 215 (access to business records requested under FISA).

Section 103. Extension of Sunset Relating to Individual Terrorists

as Agents of Foreign Powers.

This section postpones the expiration of section 6001(b) of the Intelligence

Reform and Terrorism Prevention Act (IRTPA) from December 31, 2005 until

December 31, 2009.3 Section 6001(b) defines an “agent of a foreign power” to

include any person, other than a United States person, who “engages in international

terrorism or activities in preparation therefore.”4 Thus, so-called “lone wolf”

terrorists may be subjected to foreign intelligence surveillance despite not being an

agent of a foreign power or an international terrorist organization.5

Section 104. Section 2332b and the Material Support Sections of

Title 18, U.S. Code.

Section 6603 of the IRTPA is made permanent by repealing a sunset provision

that would have caused the section to be ineffective on December 31, 2006. Section

6603 of IRTPA amends federal law regarding material support of terrorists and

terrorist organizations, primarily in 18 U.S.C. 2339A6 and 2339B.7 Briefly,8 section

6603: (1) amends the definitions of “material support or resources,” “training,” and

2

On December 22, 2005, Congress enacted P.L. 109-160 (S. 2167), which amended section

224(a) of the USA PATRIOT Act to extend the sunset to February 3, 2006. On February

2, 2006, Congress passed H.R. 4659, which further extended the sunset to March 10, 2006.

3

H.R. 4659 also extended the original sunset of the lone wolf provision of the IRTPA to

March 10, 2006.

4

50 U.S.C. 1801(b)(1)(C).

5

For more information on the “lone wolf” amendment, see CRS Report RS22011,

Intelligence Reform and Terrorism Prevention Act of 2004: “Lone Wolf” Amendment to the

Foreign Intelligence Surveillance Act, by Elizabeth B. Bazan.

6

Section 2339A outlaws providing, attempting to provide, or conspiring to provide,

material support or resources for the commission of any of several designated federal crimes

that a terrorist might commit.

7

Section 2339B outlaws providing, attempting to provide, or conspiring to provide,

material support or resources to a designated foreign terrorist organization.

8

For more information regarding section 6603 of IRTPA, see CRS Report RL33035,

Material Support of Terrorists and Foreign Terrorist Organizations: Sunset Amendments,

by Charles Doyle.

CRS-3

“expert advice or assistance” as those terms are used in 18 U.S.C. 2339A and 2339B,

and of “personnel” as used in section 2339B; (2) adds a more explicit knowledge

requirement to section 2339B; (3) expands the extraterritorial jurisdiction reach of

section 2339B; (4) enlarges the list of federal crimes of terrorism, 18 U.S.C.

2332b(g)(5); (5) adds the enlarged list to the inventory of predicate offenses for 18

U.S.C. 2339A (material support for the commission of certain terrorist crimes) and

consequently for 18 U.S.C. 2339B (material support for designated terrorist

organizations); and (6) precludes prosecution for certain violations committed with

the approval of the Secretary of State and concurrence of the Attorney General.

Section 105. Duration of FISA Surveillance of Non-U.S. Persons

Under Section 207 of the USA PATRIOT Act.

This section extends the maximum duration of FISA surveillance and search

orders against any agent of a foreign power who is not a U.S. person (e.g., a lone

wolf terrorist), by amending section 105(e) of FISA.9 Initial orders authorizing such

searches may be for a period of up to 120 days, with renewal orders permitted to

extend the period for up to one year. In addition, this section extends the life time

for both initial and extension orders authorizing installation and use of FISA pen

registers, and trap and trace surveillance devices from a period of 90 days to one year,

in cases where the government has certified that the information likely to be obtained

is foreign intelligence information not concerning a U.S. person.

Section 106. Access to Certain Business Records Under Section

215 of the USA PATRIOT Act.

Section 215 amended the business record sections of FISA to authorize the

Director of the Federal Bureau of Investigations (FBI) or a designee of the Director,

to apply to the FISA court to issue orders granting the government access to any

tangible item (including books, records, papers, and other documents), no matter who

holds it, in foreign intelligence, international terrorism, and clandestine intelligence

cases. Section 215 authority appears to have been relatively little used. In April

2005, Justice Department officials testified to the House Judiciary Committee that,

as of March 31, 2005, only 35 orders have been issued under section 215 authority,

none of which involved library, book store, medical, or gun sale records.10 At the

same time, they argue against the creation of a safe haven in public services that

9

10

Codified at 50 U.S.C. 1805(e) and 50 U.S.C. 1824(d).

Oversight Hearing on the “Implementation of the USA PATRIOT Act: Foreign

Surveillance Intelligence Act (FISA)”: Hearings Before the Subcomm. on Crime, Terrorism,

and Homeland Security of the House Comm. on the Judiciary, 109th Cong., 1st Sess. (2005)

(statement of Kenneth L. Wainstein, U.S. Attorney for the District of Columbia), at 8,

available on Jan. 13, 2006 at [http://judiciary.house.gov/media/pdfs/wainstein042805.pdf].

CRS-4

terrorists have been known to use.11 The Conference bill contains several provisions

to guard against abuses of section 215 authority.

Enhanced Oversight. Section 106(a)(2) of the Conference bill adds 50

U.S.C. 1861(a)(3), requiring that an application for a section 215 FISA order (“215

order”) for the production of certain sensitive categories of records, such as library,

bookstore, firearm sales, tax return, educational, and medical records, must be

personally approved by one of the following three high-level officials: the FBI

Director, the FBI Deputy Director, or the Executive Assistant Director for National

Security. This provision was included as an attempt to allay concerns over federal

authorities abusing section 215 authority to obtain sensitive types of records.12

In addition, the Attorney General must submit to Congress an annual report

regarding the use of section 215 authority. This report is to be filed with the House

and Senate Committees on the Judiciary, the House Permanent Select Committee on

Intelligence, and the Senate Select Committee on Intelligence. Section 106(h)(2) of

the Conference bill amends 50 U.S.C. 1862 to require that the annual report contain

the following information regarding the preceding year:

!

!

!

the total number of applications made for 215 orders approving

requests for the production of tangible things,

the total number of such orders granted as requested, granted as

modified, or denied, and

the number of 215 orders either granted, modified, or denied for the

production of each of the following: library circulation records,

library patron lists, book sales records, or book customer lists;

firearms sales records; tax return records; educational records; and

medical records containing information that would identify a person.

Current law requires public disclosure of only the first two items above; by adding

the third reporting requirement, the Conference bill provides for a more detailed

11

Oversight Hearing on the “Implementation of the USA PATRIOT Act: Foreign

Surveillance Intelligence Act (FISA)”: Hearings Before the Subcomm. on Crime, Terrorism,

and Homeland Security of the House Comm. on the Judiciary, 109th Cong., 1st Sess. (2005)

(statement of James A. Baker, Counsel for Intelligence Policy, Office of Intelligence Policy

and Review, U.S. Dep’t of Justice), at 3, available on Jan. 13, 2006 at

[http://judiciary.house.gov/media/pdfs/baker042805.pdf] (“While section 215 has never

been used to obtain such records, last year, a member of a terrorist group closely affiliated

with al Qaeda used Internet service provided by a public library to communicate with his

confederates. Furthermore, we know that spies have used public library computers to do

research to further their espionage and to communicate with their co-conspirators ... . A

terrorist using a computer in a library should not be afforded greater privacy protection that

a terrorist using a computer in his home.”).

12

50 U.S.C. 1861(a)(2)(B) already prohibits the government from seeking a section 215

order in an investigation of a U.S. person solely upon the basis of activities protected by the

First Amendment to the U.S. Constitution. For more information about section 215 under

existing law and its potential use against libraries or their patrons, see CRS Report

RS21441, Libraries and the USA PATRIOT Act, by Charles Doyle and Brian T. Yeh.

CRS-5

account of whether and when section 215 authority has been used to request these

categories of sensitive information.

Minimization Procedures. Not later than 180 days after the date of the

enactment of the act, the Attorney General is required to promulgate specific

minimization standards that apply to the collection and dissemination of information

obtained through the use of the section 215 authority.13 These procedures are

intended to limit the retention, and regulate the dissemination, of nonpublicly

available information concerning unconsenting U.S. persons, consistent with the need

of the United States to obtain, produce, and disseminate foreign intelligence

information.14 Federal authorities are directed to observe these minimization

procedures regarding the use or disclosure of information received under a 215 order;

furthermore, they may not use or disclose such information except for lawful

purposes.15 Finally, section 106(g) of the Conference bill clarifies that otherwise

privileged information does not lose its privileged character simply because it was

acquired through a 215 order.

Application Requirements. Current law only requires that an application

for a 215 order state that the requested records are sought for an authorized

investigation. The Conference bill amends 50 U.S.C. 1861(b)(2) to clarify that such

an application must include a “statement of facts” demonstrating that there are

reasonable grounds to believe that the tangible things sought are “relevant” to an

authorized or preliminary investigation to protect against international terrorism or

espionage, or to obtain foreign intelligence information not concerning a U.S. person.

Section 106(b)(2)(A) of the Conference bill also provides that certain tangible items

are “presumptively relevant” to an investigation if the application’s statement of facts

shows that the items sought pertain to:

!

!

!

a foreign power or an agent of a foreign power,

the activities of a suspected agent of a foreign power who is the

subject of such authorized investigation, or

an individual in contact with, or known to, a suspected agent of a

foreign power who is the subject of such authorized investigation.

The “relevancy” standard set forth in the Conference bill has been criticized.16

The Senate-passed version of the USA PATRIOT Improvement and Reauthorization

13

Proposed 50 U.S.C. 1861(g)(1).

14

Proposed 50 U.S.C. 1861(g)(2)(A).

15

Proposed 50 U.S.C. 1861(h).

16

151 CONG. REC. S13475-476 (daily ed. Dec. 13, 2005) (statement of Sen. Feingold)

(“The additional item put in the conference report is the loophole, the exception, that

swallows that three-part test. It does not require the connection to the terrorist or spy, even

though this legislation, from the very outset, was supposed to be a response to what

happened on 9/11, to terrorism. This does gut the changes to section 215 that are in the

Senate bill.”).

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Act, S. 1389,17 requires that the statement of facts show that the records or things

sought are relevant to an authorized investigation and that the things sought pertain

to, or are relevant to the activities of, a foreign power or agent of foreign power, or

pertain to an individual in contact with or known to a suspected agent of a foreign

power. The Conference bill does not require such a connection.

The application for a 215 order must also include an enumeration of the

minimization procedures applicable to the retention and dissemination of the tangible

items sought.18

Approval of 215 Orders. The FISA court judge shall approve an application

for a 215 order as requested or as modified, upon a finding that the application

complies with statutory requirements.19 The order must contain a particularized

description of the items sought, provide for a reasonable time to assemble them,

notify recipients of nondisclosure requirements, and be limited to things subject to

a grand jury subpoena or order of a U.S. court for production.20 The ex parte order

shall also direct that the retention and dissemination of the tangible things obtained

under the order must adhere to the minimization procedures.

Judicial Review and Enforcement. Section 106(f) establishes a judicial

review process for recipients of 215 orders to challenge their legality with a specified

pool of FISA court judges. If the judge determines that the petition is not frivolous

after an initial review, the judge has discretion to modify or set aside a FISA order

upon a finding that it does not comply with the statute or is otherwise unlawful.21

However, if the judge does not modify or rescind the 215 order, then the judge must

immediately affirm the order and direct the recipient to comply with it.

The FISA Court of Review and the Supreme Court are granted jurisdiction to

consider appeals of the FISA court judge’s decision to affirm, modify, or set aside a

215 order.22 The Chief Justice of the United States, in consultation with the Attorney

General and the Director of National Intelligence, is directed to establish security

measures for maintaining the record of the 215 order judicial review proceedings.23

17

The Senate by unanimous consent substituted the text of S. 1389, as reported by the

Judiciary Committee, after striking all but the enacting clause from H.R. 3199, 151 CONG.

REC. S9559, S9562 (daily ed. July 29, 2005). The Record, however, reprints the

House-passed bill and identifies it as H.R. 3199 as passed by the Senate, 151 CONG. REC.

S9562-579 (daily ed. July 29, 2005). For purposes of convenience, we assume that the

Senate-passed version of H.R. 3199 is S. 1389 as reported and will refer to it as S. 1389.

18

Proposed 50 U.S.C. 1861(b)(2)(B).

19

Proposed 50 U.S.C. 1861(c)(1).

20

Proposed 50 U.S.C. 1861(c)(2).

21

Proposed 50 U.S.C. 1861(f)(1). The review of a petition challenging a 215 order shall

be conducted in camera, proposed 50 U.S.C. 1803(e)(2).

22

Proposed 50 U.S.C. 1861(f)(2).

23

Proposed 50 U.S.C. 1861(f)(3).

CRS-7

Nondisclosure Requirement. Federal law currently prohibits the recipient

of a 215 order to disclose to any other person that the FBI has sought the tangible

things described in the order, except to those persons necessary for compliance.24

The Conference bill expressly clarifies that a recipient of a 215 order may disclose

its existence to an attorney to obtain legal advice, as well as to other persons

approved by the FBI.25 Although the recipient may be required to notify the FBI of

those to whom they intend to disclose, the recipient is not required to inform the FBI

of an intent to consult with an attorney to obtain legal assistance.26

The Conference bill does not provide an express, statutory right for a recipient

of a 215 order to petition a FISA court judge to modify or quash the nondisclosure

requirement. By contrast, section 115 of the Conference bill establishes the right of

recipients of “national security letters” to challenge both the legality of the request

as well as the gag order imposed in connection with the request.27

Section 106A. Audit on Access to Certain Business Records for

Foreign Intelligence Purposes.

This section is a new provision which provides for the Inspector General of the

Department of Justice to conduct a comprehensive audit to determine the

effectiveness, and identify any abuses, concerning the use of section 215 authority,

for calendar years 2002-2006. The audit is to be performed in accordance with the

detailed requirements set forth in this section. The results of the audit are to be

submitted in an unclassified report to the House and Senate Committees on the

Judiciary and Intelligence.

Section 107. Enhanced Oversight of Good-Faith Emergency

Disclosures Under Section 212 of the USA PATRIOT Act.

Section 212 of the PATRIOT Act permits electronic communications service

providers to disclose voluntarily the contents of stored electronic communications to

a Federal, State, or local governmental entity in emergency situations involving a risk

or danger of death or serious physical injury to any person.28 Service providers are

also permitted to disclose customer records to governmental entities in emergencies

involving an immediate risk of serious physical injury or danger of death to any

person.29

To provide congressional oversight over the use of this authority, section 107(a)

of the Conference bill requires the Attorney General annually to report to the

24

50 U.S.C. 1861(d).

25

Proposed 50 U.S.C. 1861(d)(1)(B), (C).

26

Proposed 50 U.S.C. 1861(d)(2)(C).

27

Compare 50 U.S.C. 1861(f) (the section 215 FISA order judicial review provisions) with

18 U.S.C. 3511(a) and (b) (the national security letter judicial review provisions).

28

18 U.S.C. 2702(b)(8).

29

18 U.S.C. 2702(c)(4).

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Judiciary Committees of the House and Senate concerning the number of service

providers’ voluntary emergency disclosures of the contents of electronic

communications to the Department of Justice. The report must also summarize the

basis for the voluntary disclosure in circumstances where the investigation pertaining

to the disclosure was closed without the filing of criminal charges. In addition,

section 107(b) removes the immediacy requirement from the customer records

provision and defines “governmental entity” to mean a department or agency of the

United States or any State or political subdivision thereof.

Section 108. Multipoint Electronic Surveillance Under Section 206

of the USA PATRIOT Act.

Unlike a criminal wiretap order issued under Title III of the Omnibus Crime

Control and Safe Streets Act of 1968,30 which may be approved if a judge finds

probable cause for believing that an individual is committing, has committed, or is

about to commit a particular enumerated offense,31 a FISA wiretap may be issued

upon a finding of probable cause to believe that the target of the electronic

surveillance is a foreign power or agent of a foreign power.32 Section 206 of the

PATRIOT Act amended FISA to authorize the installation and use of multipoint, or

“roving,” wiretaps, for foreign intelligence investigations.33 A roving wiretap order

applies to the suspect rather than a particular phone or computer that the target might

use, and thus allows law enforcement officials to use a single wiretap order to cover

any communications device that the target uses or may use.34 Without this authority,

investigators must seek a new FISA court order each time they need to change the

name of the location to be monitored, as well as the specified person or entity that is

needed to assist in facilitating the wiretap.35

A FISA roving surveillance order must specify the identity of the target, but only

if it is known; otherwise, it is sufficient for the order to describe the target.36

Furthermore, a roving wiretap order need not identify the nature and location of the

places or facilities targeted for surveillance if they are unknown.37 Since roving

30

18 U.S.C. 2510 et seq.

31

See list of predicate offenses at 18 U.S.C. 2516(1)(a)-(r).

32

50 U.S.C. 1805(a).

33

50 U.S.C. 1805(c)(2)(B).

34

According to the Department of Justice, “This new authority has put investigators in a

better position to avoid unnecessary cat-and- mouse games with terrorists, who are trained

to thwart surveillance.” U.S. Dep’t of Justice, Report from the Field, The USA PATRIOT Act

at Work, 22 (July 2004), available on Jan. 13, 2006 at [http://www.lifeandliberty.gov/

docs/071304_report_from_the_field.pdf].

35

Oversight Hearing on “Reauthorization of the USA PATRIOT Act”: Hearings Before

the House Comm. on the Judiciary, 109th Cong., 1st Sess. (2005) (statement of James B.

Comey, Deputy Attorney General, U.S. Dep’t of Justice), at 9-10, available on Jan. 13, 2006

at [http://judiciary.house.gov/media/pdfs/comey060805.pdf].

36

50 U.S.C. 1805(c)(1)(A).

37

50 U.S.C. 1805(c)(1)(B).

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surveillance orders in foreign intelligence investigations may be approved when the

government describes, rather than specifically identifies, the target of surveillance,

critics of the PATRIOT Act question whether this kind of “John Doe” wiretap

authority may be a “recipe for abuse.”38 A Department of Justice official in

testimony before Congress responded to this criticism: “It is critical, however, to

keep in mind that the government’s description of the target must be sufficiently

specific to convince the FISA Court that there is probable cause to believe that the

target is a foreign power or agent of a foreign power.”39

Section 206 of the PATRIOT Act also permits a general command for the

assistance of third parties (for example, common carriers and Internet service

providers) for the installation and use of these multipoint wiretaps, where the target

of the surveillance has taken steps to thwart the identification of a communications

company or other person whose assistance may be needed to carry out the

surveillance. Thus, if the FISA court finds that the target’s actions may have the

effect of thwarting specific identification, section 206 temporarily authorizes FISA

orders that need not specifically identify the communications carriers, landlords or

others whose assistance the order commands.40

Critics of section 206 assert that the roving wiretap authority is too sweeping,41

places unfair burdens upon those called upon to provide assistance,42 and might raise

38

Electronic Frontier Foundation, Let the Sun Set on PATRIOT - Section 206: “Roving

Surveillance Authority Under the Foreign Intelligence Surveillance Act of 1978,” available

Jan. 13, 2006 at [http://www.eff.org/patriot/sunset/206.php].

39

Oversight Hearing on the “Implementation of the USA PATRIOT Act: Foreign

Surveillance Intelligence Act (FISA)”: Hearings Before the Subcomm. on Crime, Terrorism,

and Homeland Security of the House Comm. on the Judiciary, 109th Cong., 1st Sess. (2005)

(statement of Kenneth L. Wainstein, U.S. Attorney for the District of Columbia), at 3,

available on Jan. 13, 2006 at [http://judiciary.house.gov/media/pdfs/wainstein042805.pdf].

40

50 U.S.C. 1805(c)(2)(B).

41

See, e.g., Electronic Privacy Information Center, The USA PATRIOT Act (“EPIC

Report”), available on Jan. 13, 2006 at [http://www.epic.org/privacy/terrorism/usapatriot]

(“Such ‘generic’ orders could have a significant impact on the privacy rights of large

numbers of innocent users, particularly those who access the Internet through public

facilities such as libraries, university computer labs and cybercafes. Upon the suspicion that

an intelligence target might use such a facility, the FBI can now monitor all communications

transmitted at the facility. The problem is exacerbated by the fact that the recipient of the

assistance order (for instance, a library) would be prohibited from disclosing the fact that

monitoring is occurring.”).

42

See, e.g., John W. Whitehead & Steven H. Aden, Forfeiting “Enduring Freedom” for

“Homeland Security”: A Constitutional Analysis of the USA PATRIOT Act and the Justice

Department’s Anti-Terrorism Initiatives, 51 AM. U. L. REV. 1081, 1105 (2002) (“This

provision is problematic in that it distorts two extremely important checks in the legal

system that historically have provided a measure of accountability for the validity of a

warrant. First, the amendment allows the issuance of so-called ‘blank warrants,’ by which

the parties required to respond to the order need not be listed on the face of the document.

This places such communications providers in the position of having to accept the validity

of the warrant and its application to them virtually without question... Second, the order may

not have been issued in the responding party’s jurisdiction, creating hindrances of geography

CRS-10

constitutional concerns.43 In part to address these concerns, section 108 of the

Conference bill provides greater judicial and congressional oversight and other

procedural requirements for multipoint electronic surveillance orders. The section

amends the FISA roving surveillance authority to require that an application for an

order, as well as the wiretap order itself, describe the specific target of the electronic

surveillance if the target’s identity is not known.44 It also clarifies that the FISA court

must find that the prospect of a target thwarting surveillance is based on specific facts

in the application.45 Furthermore, if the government begins to direct surveillance at

a new facility or place, the nature and location of which were unknown at the time

the original surveillance order was issued, the government must notify the FISA court

within 10 days46 after such change, of the following information:

!

!

!

!

the nature and location of each new facility or place at which the

surveillance is directed,

the facts and circumstances relied upon by the applicant to justify the

applicant’s belief that each new facility or place is or was being

used, or is about to be used, by the target of the surveillance,

an explanation of any proposed minimization procedures that differ

from those contained in the original application or order, if such

change is necessitated by the new facility or place, and

the total number of electronic surveillances that have been or are

being conducted under the roving surveillance order.47

The Conference bill also enhances congressional oversight over the use of all

foreign intelligence electronic surveillance authority, by adding the Senate Judiciary

Committee as a recipient of the semi-annual FISA reports that the Attorney General

currently must submit to the House and Senate Intelligence committees,48 and by

modifying the FISA report requirements to include a description of the total number

of applications made for orders approving roving electronic surveillance.49

and expense for a party that desires to challenge the order in court.”).

43

See, e.g., EPIC Report (“The ‘generic’ roving wiretap orders raise significant

constitutional issues, as they do not comport with the Fourth Amendment’s requirement that

any search warrant ‘particularly describe the place to be searched.’ That deficiency

becomes even more significant where the private communications of law-abiding American

citizens might be intercepted.”).

44

Proposed 50 U.S.C. 1804(a)(3), proposed 50 U.S.C. 1805(c)(1)(A).

45

Proposed 50 U.S.C. 1805(c)(2)(B).

46

The 10 day period may be extended up to 60 days if the court finds good cause to justify

the longer period.

47

Proposed 50 U.S.C. 1805(c)(3).

48

Proposed 50 U.S.C. 1808(a)(1).

49

Proposed 50 U.S.C. 1808(a)(2).

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Section 109. Enhanced Congressional Oversight.

Section 109(a) enhances congressional oversight over the use of physical

searches under FISA, by requiring, on a semi-annual basis, the Attorney General:

!

!

to make full reports concerning all physical searches to the Senate

Judiciary Committee in addition to the House and Senate

Intelligence committees, and

to submit to the House Judiciary Committee a report with statistical

information concerning the number of emergency physical search

orders authorized or denied by the Attorney General.50

Section 109(b) requires that the report the Attorney General submits to the

House and Senate Judiciary Committees semi-annually concerning the number of

applications and orders for the FISA use of pen registers or trap and trace devices,51

must include statistical information regarding the emergency use52 of such devices.

Section 109(c) directs the Secretary of Homeland Security to report to the House

and Senate Judiciary Committees semi-annually regarding the internal affairs

operations and investigations of the U.S. Citizenship and Immigration Services. The

first such report is to be submitted no later than April 1, 2006.

Section 109(d) requires the FISA court to publish its rules and procedures and

transmit them in unclassified form to all judges on the FISA court, the FISA Court

of Review, the Chief Justice of the United States, and the House and Senate Judiciary

and Intelligence Committees.

Section 110. Attacks Against Railroad Carriers and Mass

Transportation Systems.

Section 110 of the Conference bill merges 18 U.S.C. 1992 (outlawing train

wrecking) and 18 U.S.C. 1993 (outlawing attacks on mass transportation system) into

a new 18 U.S.C. 1992 intended to provide uniform offense elements and penalties

for attacks on all transportation systems on land, on water, or through the air. In

addition, current federal law does not explicitly provide criminal punishment for the

planning of terrorist attacks and other acts of violence against railroads and mass

transportation systems, although it does make it a crime to commit them or to

attempt, threaten, or conspire to do so.53 Section 110 addresses this omission by

making it a crime to surveil, photograph, videotape, diagram, or otherwise collect

50

Proposed 50 U.S.C. 1826.

51

Proposed 50 U.S.C. 1846. These surveillance devices are used to intercept non-content

transactional information which reveals the source and destination of wire and electronic

communications, such as telephone dialing information, Internet IP addresses, and e-mail

routing and addressing. See definitions of these terms, 18 U.S.C. 3127(3), 18 U.S.C.

3127(4).

52

Proposed 50 U.S.C. 1843.

53

18 U.S.C. 1993.

CRS-12

information with the intent to plan or assist in planning, an attack against mass

transportation systems.54 Punishment for the crime is imprisonment for not more

than 20 years, but if the offense results in the death of any person, then imprisonment

of any years or for life or the death penalty, although the death penalty is not

available for inchoate forms of the offense (planning, conveying false information,

attempting, threatening, or conspiring).55 Furthermore, the new 18 U.S.C. 1992

enhances the penalties for committing these criminal acts in circumstances that

constitute an aggravated offense, by authorizing imprisonment for any term of years

or life, or where death results, the death penalty. Finally incorporating an amendment

found in section 304 of the House bill the new 18 U.S.C. 1992 defines covered

conveyances and their systems to include passenger vessels.56

Section 111. Forfeiture.

Federal law permits U.S. confiscation of property derived from certain drug

offenses committed in violation of foreign law,57 and also permits U.S. confiscation

of all assets, foreign or domestic, associated with certain terrorist offenses.58 Section

111 amends the general civil forfeiture statute to authorize seizure of property within

U.S. jurisdiction constituting, derived from, or traceable to, any proceeds obtained

in (or any property used to facilitate) an offense that involves trafficking in nuclear,

chemical, biological, or radiological weapons technology or material, if such offense

is punishable under foreign law by death or imprisonment for a term exceeding one

year or would be so punishable if committed within U.S. jurisdiction.59

Section 112. Section 2332b(g)(5)(B) Amendments Relating to the

Definition of Federal Crime of Terrorism.

Crimes designated as federal crimes of terrorism under 18 U.S.C. 2332b(g)(5)

trigger the application of other federal laws, for example, 18 U.S.C. 1961(1)(g)

(RICO predicates), 18 U.S.C. 3142 (bail), 18 U.S.C. 3286 (statute of limitations), and

18 U.S.C. 3583 (supervised release). Section 112 of the Conference bill adds two

additional offenses to the current definition of federal crimes of terrorism: receiving

military-type training from a foreign terrorist organization,60 and drug trafficking in

support of terrorism (the “narco-terrorism” provisions of Section 1010A of the

Controlled Substances Import and Export Act).61

54

Proposed 18 U.S.C. 1992(a)(8).

55

Proposed 18 U.S.C. 1992(a).

56

Proposed 18 U.S.C. 1992(d)(7). Here and hereafter “the House bill” refers to the version

of H.R. 3199 which the House sent to conference.

57

18 U.S.C. 981(a)(1)(B).

58

18 U.S.C. 981(a)(1)(G).

59

Proposed 18 U.S.C. 981(a)(1)(B)(i).

60

18 U.S.C. 2339D.

61

Proposed 21 U.S.C. 960A created in section 122 of the Conference bill.

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Section 113. Amendments to Section 2516(1) of Title 18, United

States Code.

Generally, federal law requires the government to obtain a court order

authorizing the interception of wire, oral or electronic communications in the

investigation of certain crimes (“predicate offenses”) specifically enumerated in 18

U.S.C. 2516(1). Section 113 expands the list of predicate offenses in which law

enforcement may seek wiretap orders to include crimes relating to biological

weapons, violence at international airports, nuclear and weapons of mass destruction

threats, explosive materials, receiving terrorist military training, terrorist attacks

against mass transit, arson within U.S. special maritime and territorial jurisdiction,

torture, firearm attacks in federal facilities, killing federal employees, killing certain

foreign officials, conspiracy to commit violence overseas, harboring terrorists, assault

on a flight crew member with a dangerous weapon, certain weapons offenses aboard

an aircraft, aggravated identity theft, “smurfing” (a money laundering technique

whereby a large monetary transaction is separated into smaller transactions to evade

federal reporting requirements on large transactions), and criminal violations of

certain provisions of the Sherman Antitrust Act.

Section 114. Delayed Notice Search Warrants.

A delayed notice search warrant, or “sneak and peek” warrant, is one that

authorizes law enforcement officers to secretly enter a home or business, either

physically or virtually, conduct a search, and depart without taking any tangible

evidence or leaving notice of their presence. The Department of Justice has defended

the necessity and legality of delayed notification search warrants:

This tool can be used only with a court order, in extremely narrow circumstances

when immediate notification may result in death or physical harm to an

individual, flight from prosecution, evidence tampering, witness intimidation, or

serious jeopardy to an investigation. The reasonable delay gives law

enforcement time to identify the criminal’s associates, eliminate immediate

threats to our communities, and coordinate the arrests of multiple individuals

without tipping them off beforehand. In all cases, law enforcement must give

notice that property has been searched or seized.62

Until the Patriot Act was enacted, the Federal Rules of Criminal Procedure

required contemporaneous notice in most instances.63 At the time, the courts were

divided over whether the failure to provide contemporaneous notice, in the absence

of exigent circumstances, constituted a constitutional violation or a violation of the

Rule, and over the extent of permissible delay in cases presenting exigent

circumstances.64 Section 213 of the PATRIOT Act created an express statutory

authority for delayed notice search warrants in any criminal investigation, not just

62

U.S. Dep’t of Justice, Dispelling Some of the Major Myths about the USA PATRIOT Act,

available on Jan. 13,2006 at [http://www.lifeandliberty.gov/subs/u_myths.htm].

63

64

FED. R. CRIM. P. 41(d), 18 U.S.C. App. (2000 ed.).

See United States v. Pangburn, 983 F.2d 449 (2d Cir. 1993); United States v. Freitas,

800 F.2d 1451 (9th Cir. 1986); United States v. Simmons, 206 F.3d 292 (4th Cir. 2000).

CRS-14

those involving suspected terrorist activity.65 Delayed notification of the execution

of a sneak and peek search warrant is permissible for a reasonable period of time

(with the possibility of court-approved extensions for good cause shown), if:

!

!

the court that issued the warrant finds reasonable cause to believe

that contemporaneous notice of the search may result in adverse

consequences (flight, destruction of evidence, intimidation of a

witness, danger to an individual, serious jeopardy to an

investigation, or undue trial delay), and

the warrant prohibits the seizure of any tangible property, any wire

or electronic communication, and any stored wire or electronic

information, except where the court finds reasonable necessity for

the seizure.

Responding to concerns that the “reasonable period” for delaying notification

of a search warrant is an undefined and indefinite standard under current law, section

114 of the Conference bill establishes a specific limitation on the length of the delay,

requiring notice to be given no more than 30 days after the date of the warrant’s

execution, with the possibility for 90 day extensions if the facts of a case justify.66

In addition, it removes “unduly delaying a trial” as one of the “adverse

consequences” that justifies delayed notification. Some commentators have noted

that “seriously jeopardizing an investigation,” which is retained by the Conference

bill as a ground for permitting delayed notice, is an overly broad “catch-all” provision

that law enforcement officials could abuse.67 There may also be some question of

whether it qualifies as a constitutionally acceptable exigent circumstance. However,

Justice Department officials defend this provision, observing that before the delayed

notice can be approved, a federal judge must agree with the government’s evaluation

of the circumstances that indicate that contemporaneous notice of a search might

seriously jeopardize an ongoing investigation.68

65

18 U.S.C. 3103a. Critics have expressed concerns about the constitutionality of delayed

notice search warrants as well as potential abuse of the power. See, e.g., EPIC Report (“The

expansion of this extraordinary authority to all searches constitutes a radical departure from

Fourth Amendment standards and could result in routine surreptitious entries by law

enforcement agents.”); American Civil Liberties Union (ACLU), Surveillance Under the

USA PATRIOT Act (April 3, 2003), available on Jan. 13, 2006 at

[http://www.aclu.org/safefree/general/17326res20030403.html] (“Notice is a crucial check

on the government’s power because it forces the authorities to operate in the open, and

allows the subjects of searches to protect their Fourth Amendment rights. For example, it

allows them to point out irregularities in a warrant ... Search warrants often contain limits

on what may be searched, but when the searching officers have complete and unsupervised

discretion over a search, a property owner cannot defend his or her rights.”).

66

Proposed 18 U.S.C. 3103a(b)(3).

67

See ACLU, ACLU Letter to Congress Urging A “No” Vote On the USA PATRIOT

Improvement and Reauthorization Act Conference Report (Dec. 12, 2005), available on Jan.

13, 2006 at [http://www.aclu.org/safefree/general/22394leg20051207.html].

68

Oversight Hearing on the “Implementation of the USA PATRIOT Act: Sections 201, 202,

223 of the Act that Address Criminal Wiretaps, and Section 213 of the Act that Addresses

Delayed Notice”: Hearings Before the Subcomm. on Crime, Terrorism, and Homeland

CRS-15

Finally, section 114 enhances oversight of delayed notice search warrants, by

requiring that no later than 30 days after the expiration or denial of such a warrant,

the issuing or denying judge must notify the Administrative Office of the U.S. Courts

of:

!

!

!

!

the fact that the delayed notice search warrant was applied for,

the fact that the warrant was either granted, modified, or denied,

the length of time of the delay in giving notice, and

the offense specified in the warrant or the application.69

The Director of the Administrative Office is required to transmit a detailed, annual

report to Congress that summarizes the use and number of warrants authorizing

delayed notice.

Section 115. Judicial Review of National Security Letters.

Five federal statutes, in roughly the same terms, authorize federal intelligence

investigators (generally the FBI) to request that communications providers, financial

institutions and credit bureaus provide certain customer information relating to a

national security investigation.70 A federal court in the Southern District of New

York has held that the FBI’s practices and procedure surrounding the exercise of its

authority under one of these national security letter (NSL) statutes, 18 U.S.C. 2709,

violate the Fourth and First Amendments.71 In the opinion of the court, the

constitutional problem stems from the effective absence of judicial review before or

after the issuance of an NSL under section 2709 and from the facially absolute,

permanent confidentiality restrictions (“gag order”) that the statute places on NSL

recipients.72

Section 115 of the Conference bill attempts to address these potential

constitutional deficiencies by authorizing judicial review of a NSL.73 The recipient

of a NSL request may petition a U.S. district court for an order modifying or setting

Security of the House Comm. on the Judiciary, 109th Cong., 1st Sess. (2005) (statement of

Chuck Rosenberg , Chief of Staff to Deputy Attorney General, U.S. Dep’t of Justice), at 3-4,

available Jan. 13, 2006 at [http://judiciary.house.gov/media/pdfs/rosenberg050305.pdf]

(stating that “[t]here are a variety of ways in which investigators and prosecutors should not

be precluded from obtaining a delayed notice search warrant simply because their request

does not fall into one of the other four circumstances listed in the statute”).

69

Proposed 18 U.S.C. 3103a(d)(1).

70

12 U.S.C. 3414; 15 U.S.C.1681u, 1681v; 18 U.S.C. 2709; 50 U.S.C. 436. For more

information concerning national security letters, see CRS Report RL32880, Administrative

Subpoenas and National Security Letters in Criminal and Foreign Intelligence

Investigations: Background and Proposed Adjustments, by Charles Doyle.

71

Doe v. Ashcroft, 334 F.Supp.2d 471 (S.D.N.Y. 2004); see also, Doe v. Gonzalez, 386

F.Supp.2d 66 (D.Conn. 2005)(reaching a similar conclusion on First Amendment grounds).

72

Ashcroft, 334 F.Supp.2d at 526-27.

73

Proposed 18 U.S.C. 3511.

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aside the request. The federal court may modify or quash the NSL request if

compliance would be unreasonable, oppressive, or otherwise unlawful.

In addition to providing the right to challenge the validity of the NSL request,

section 115 expressly grants NSL recipients the power to petition a federal district

court to modify or quash the nondisclosure requirement imposed in connection with

the request.74 By contrast, a recipient of a section 215 FISA order for tangible items

is not provided an explicit statutory right to challenge in court the gag order that

attaches to a 215 order. However, section 115 creates a bifurcated procedure for

handling petitions for judicial review of the nondisclosure requirement:75

1) If the petition is filed within one year of the NSL request, the U.S. district

court may modify or set aside the gag order if it finds no reason to believe that

disclosure may:

!

!

!

!

endanger the national security of the United States,

interfere with a criminal, counterterrorism, or counterintelligence

investigation,

interfere with diplomatic relations, or

endanger the life or physical safety of any person.

If, at the time of the petition, a high-ranking government official76 certifies that

disclosure may:

!

!

endanger the national security of the United States, or

interfere with diplomatic relations,

then the court must treat the government certification as conclusive unless the court

finds that the certification was made in bad faith.

2) If the petition challenging the gag order is filed one year or more after the

NSL issuance, a high-ranking government official must, within 90 days of the

petition, either terminate the gag order or re-certify that disclosure may:

!

!

!

!

endanger the national security of the United States,

interfere with a criminal, counterterrorism, or counterintelligence

investigation,

interfere with diplomatic relations, or

endanger the life or physical safety of any person.

If such recertification occurs, then a court may modify or quash the gag order

if it finds no reason to believe that disclosure may:

74

Proposed 18 U.S.C. 3511(b)(1).

75

Proposed 18 U.S.C. 3511(b)(2)-(3).

76

If the NSL is issued by the Department of Justice, this person must be the Attorney

General, Deputy AG, or the Director of the FBI; if the NSL information is requested by any

agency, department, or instrumentality other than the Justice Department, then the individual

must be its head or deputy. Proposed 18 U.S.C. 3511(b)(2).

CRS-17

!

!

!

!

endanger the national security of the United States,

interfere with a criminal, counterterrorism, or counterintelligence

investigation,

interfere with diplomatic relations, or

endanger the life or physical safety of any person.

However, if the recertification was made by the Attorney General, Deputy Attorney

General, an Assistant Attorney General, or the Director of the FBI, and if such

recertification stated that disclosure may:

!

!

endanger the national security of the United States, or

interfere with diplomatic relations

then such certification is to be treated by the court as conclusive unless it was made

in bad faith.

If court denies the petition for an order to modify the nondisclosure requirement,

the NSL recipient is precluded from filing another such petition for one year.

Although the Conference bill provides a process to challenge the nondisclosure

requirement, critics believe that this right is “illusory”: “A recipient would

technically be given a right to challenge the gag order but if the government asserted

national security, diplomatic relations or an ongoing criminal investigation the court

would be required to treat that assertion as conclusive, making the ‘right’ an

illusion.”77

Judicial Enforcement of a NSL. In addition to authorizing judicial review

of NSLs, section 115 also provides the government with the means to enforce the

NSL through court action. If a NSL recipient fails to respond to the request for

information, the Attorney General may seek a federal district court order to compel

compliance with the request.78 Disobedience of the U.S. district court’s order to

respond to a NSL is punishable as contempt of court.

Closed Proceedings. Section 115 also directs that any court proceedings

concerning NSL matters must be closed, subject to any right to an open hearing in a

contempt proceeding, to prevent unauthorized disclosure of the NSL request.79 In

addition, all petitions, filings, records, orders, and subpoenas must be kept under seal

77

ACLU, ACLU Letter to Congress Urging A “No” Vote On the USA PATRIOT

Improvement and Reauthorization Act Conference Report (Dec. 12, 2005), available Jan.

13, 2006 at [http://www.aclu.org/safefree/general/22394leg20051207.html].

78

Proposed 18 U.S.C. 3511(c). Critics of this new provision claim that it effectively

transforms NSLs into national security subpoenas. See ACLU, ACLU Letter to Congress

Urging A “No” Vote On the USA PATRIOT Improvement and Reauthorization Act

Conference Report (Dec. 12, 2005), available on Jan. 13, 2006 at

[http://www.aclu.org/safefree/general/22394leg20051207.html].

79

Proposed 18 U.S.C. 3511(d).

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to prevent unauthorized disclosure. Finally, the government may request that its

evidence be considered ex parte and in camera.80

Section 116. Confidentiality of National Security Letters.

Section 116 of the Conference bill amends all five NSL statutes to prohibit

communications service providers from disclosing to any person that the FBI has

sought or obtained access to the information sought through the NSL, if the

investigative agency has certified that disclosure may endanger any individual or the

national security of the United States, interfere with diplomatic relations, or interfere

with a criminal or intelligence investigation. However, disclosure is permitted to any

person whose assistance is needed to comply with the NSL request or to an attorney

to obtain legal advice or legal assistance concerning the NSL.81 Although a person

making or intending to make a disclosure may be required to notify the FBI of those

to whom they intend to disclose, the person is not required to inform the FBI of an

intent to consult with an attorney to obtain legal assistance.82

Section 117. Violations of Nondisclosure Provisions of National

Security Letters.

This section punishes a person who was notified of a NSL nondisclosure

requirement but nevertheless knowingly and willfully violates that directive, with

imprisonment of not more than one year, or not more than five years if committed

with the intent to obstruct an investigation or judicial proceeding.83 Current law does

not provide a felony charge for such disclosure to an unauthorized person.

Section 118. Reports on National Security Letters.

Section 118 of the Conference bill requires that any reports to a Congressional

committee regarding NSLs shall also be provided to the House and Senate Judiciary

Committees. In addition, the Attorney General must submit a report semiannually

on all NSL requests made under the Fair Credit Reporting Act, to the House and

Senate Judiciary Committees, the House and Senate Intelligence Committees, and the

House Committee on Financial Services and the Senate Committee on Banking,

Housing, and Urban Affairs.84

80

Proposed 18 U.S.C. 3511(e).

81

Proposed 18 U.S.C. 2709(c)(1); proposed 15 U.S.C. 1681u(d)(1); proposed 15 U.S.C.

1681v(c)(1); proposed 12 U.S.C. 3414(a)(3)(A); proposed 12 U.S.C. 3414(a)(5)(D)(i);

proposed 50 U.S.C. 436(b)(1).

82

Proposed 18 U.S.C. 2709(c)(4); proposed 15 U.S.C. 1681u(d)(4); proposed 15 U.S.C.

1681v(c)(4); proposed 12 U.S.C. 3414(a)(3)(D); proposed 12 U.S.C. 3414(a)(5)(D)(iv);

proposed 50 U.S.C. 436(b)(4).

83

Proposed 18 U.S.C. 1510(e).

84

Proposed 15 U.S.C. 1681v(f).

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The Attorney General is also instructed to submit to Congress an annual report

describing the total number of requests made by the Department of Justice under the

NSL statutes. This report is to be unclassified, in order to permit public scrutiny.

Section 119. Audit of Use of National Security Letters.

The Inspector General of the Department of Justice is to perform a

comprehensive audit of the effectiveness and use of NSLs, including any improper

or illegal use, for submission to the House and Senate Judiciary and Intelligence

Committees for calendar years 2003-2006. This report is to be unclassified.

Section 119 also requires the Attorney General and Director of National

Intelligence to analyze the feasibility of applying minimization procedures to NSL

to ensure the protection of the constitutional rights of U.S. persons. This feasibility

study is to be submitted to the House and Senate Judiciary and Intelligence

Committees by February 1, 2007, or upon completion of the audit of the use of NSLs

for calendar years 2003 and 2004, whichever is earlier.

Section 120. Forfeiture for Acts of Terrorism.

18 U.S.C. 981(a)(1)(G) calls for the confiscation of property of those planning

or engaged in acts of domestic or international terrorism (as defined in 18 U.S.C.

2331) against the United States or its citizens. Domestic terrorism is defined in 18

U.S.C. 2331 (section 802 of the USA PATRIOT Act ), and includes acts dangerous

to human life in violation of state or federal law committed to influence the policy

of a government or civilian population by intimidation or coercion, 18 U.S.C.

2331(5). Critics might suggest that the juxtaposition of the definition and the

confiscation provisions of section 981(a)(1)(G) could result in the confiscation of the

property of political action organizations whose members became involved in a

picket sign swinging melee with counter demonstrators.85 In contrast, 18 U.S.C.

2332b(g)(5)(B) seems less susceptible to such challenges since it defines terrorism

by reference to violations of specific federal terrorist offenses rather than the generic,

violation of state or federal law found in section 2331.

85

151 CONG. REC. H6262 (daily ed. July 21, 2005)(statement of Rep. Delahunt) (“This is

about domestic terrorism and the definition of domestic terrorism. And while it does not

create a new crime under the PATRIOT Act, the definition triggers an array of expanded

governmental authorities, including enhanced civil asset seizure powers. It is so broadly

defined that it could include acts of civil disobedience because they may involve acts that

endanger human life...”); 151 CONG. REC. H6262-263 (daily ed. July 21, 2005) (statement

of Rep. Sensenbrenner)(“There are various definitions of terrorism under Federal law. In

title XVIII there has been a confusion over a new definition created in the USA PATRIOT

Act for domestic terrorism. That provision is supposed to be used for administrative

procedures such as nationwide searches, but another part of the PATRIOT Act, section 806,

uses the reference for asset forfeiture, which is more of a penalty. This has raised concerns

about those who exercise their first amendment rights. As a result, groups from both sides

of the political spectrum have wanted to change the definition for domestic terrorism. This

amendment fixes the problem...”).

CRS-20

Section 120 replaces terrorism defined in 18 U.S.C. 2331 with terrorism defined

in 18 U.S.C. 2332b(g)(5)(B) as the ground for confiscation under section

981(a)(1)(G). It does so by amending 18 U.S.C. 981(a)(1)(G) so that it calls for the

confiscation of property of those planning or engaged acts of domestic or

international terrorism (as defined in 18 U.S.C. 2332b(g)(5)(B)) against the United

States or its citizens.

Section 121. Cigarette Smuggling.

Federal law proscribes trafficking in contraband cigarettes (i.e., trafficking in more

than 60,000 cigarettes without the required tax stamps).86 Violations are punishable

by imprisonment for up to five years,87 and constitute racketeering predicate

offenses.88

During debate on the House floor several members pointed to the fact that in at

least one instance terrorists had resorted to cigarette smuggling as a financing

mechanism.89

Section 121, modeled closely after section 123 of the House bill, recasts the

federal statute lowering the threshold definition to 10,000 cigarettes and to 500 cans

or packages of smokeless tobacco; and creates a federal cause action against violators

(other than Indian tribes or Indians in Indian country) for manufacturers, exporters,

and state and local authorities.90

Section 122. Narco-Terrorism.

Federal law prohibits drug trafficking with severe penalties calibrated according

to the kind and volume of drugs and the circumstances involved91 (e.g., trafficking

in 50 grams or more of crack cocaine is punishable by imprisonment for not less than

10 years and for not more than life; distributing a small amount of marijuana for no

remuneration is punishable by imprisonment for not more than one year)92. Drug

offenses that involved additional egregious circumstances are often subject to

86

18 U.S.C. 2341-2346

87

18 U.S.C. 2344.

88

18 U.S.C. 1961(1). Federal racketeer influenced and corrupt organization laws (RICO)

proscribe the acquisition or operation of an enterprise, whose activities affected interstate

or foreign commerce, through the patterned commission of other specifically designated

crimes (predicate offenses); offenders face imprisonment for up to 20 years and confiscation

of offense related property, 18 U.S.C. 1961-1963.

89

151 CONG. REC. H6284 (daily ed. July 21, 2005) (statements of Reps. Coble,

Sensenbrenner, Cantor, and Kildee).

90

Proposed 18 U.S.C. 2341-2346

91

21 U.S.C. 841-971.

92

21 U.S.C. 841, 844.

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multiples of the sanctions for the underlying offense.93 Providing material support

for the commission of a terrorist crime or to a designated foreign terrorist

organization is likewise a federal crime, punishable by imprisonment for not more

than 15 years.94

The Conference bill in section 122 adopts the language of section 124 of the

House bill. There were no comparable provisions in S. 1389. It outlaws drug

trafficking — for the benefit of a foreign terrorist organization as defined in the

immigration laws, 8 U.S.C. 1182(a)(3)(B), or of a person who has or is engaged in

terrorism as defined in 22 U.S.C. 2656f(d)(2) (politically motivated violence against

civilian targets) — under a wide range of jurisdictional circumstances.95 The offense

can only be committed with the knowledge of the terrorist misconduct of its

beneficiaries.96 Violators face imprisonment for not less than twice the minimum

penalty for drug trafficking under 21 U.S.C. 841(b)(1) nor more than life, and period

of supervised release of not less than five years.97 The Conference bill, unlike its

House predecessor, expressly prohibits attempts and conspiracies to violate the new

section. The difference is more a matter emphasis than substance since 21 U.S.C.

963 would have produced the same result in the absence of an express provision.

93

See, e.g., 21 U.S.C. 859 (sale of drugs to a child: twice the normal penalty); 861 (use a

child in drug trafficking: twice the normal penalty); 861(f) (sale of drugs to a pregnant

woman: twice the normal penalty).

94

18 U.S.C. 2339A, 2339B.

95

Proposed 21 U.S.C. 960A(b) (“There is jurisdiction over an offense under this section

if — (1) the prohibited drug activity or the terrorist offense is in violation of the criminal

laws of the United States; (2) the offense, the prohibited drug activity, or the terrorist

offense occurs in or affects interstate for foreign commerce; (3) an offender provides

anything of pecuniary value for a terrorist offense that causes or is designed to cause death

or serious bodily injury to a national of the United States while that national is outside the

United States, or substantial damage to the property of a legal entity organized under the

laws of the United States (including any of its States, districts, commonwealths, territories,

or possessions) while that property outside of the United States; (4) the offense or the

prohibited drug activity occurs in whole or in part outside of the United States including on

the high seas), and a perpetrator of the offense or the prohibited drug activity is a national

of the United States or a legal entity organized under the laws of the United States

(including any of its States, districts, commonwealths, territories, or possessions); or (5)

after the conduct required for the offense occurs an offender is brought into or found in the

United States, even if the conduct required for the offense occurs outside the United

States.”) In cases where neither the support, the drug offense, nor the terrorism have any

connection to the U.S. other than the later presences of the offender here, paragraph

960A(b)(5) may exceed Congress’ legislative reach unless the benefit of a treaty obligation

can be claimed. The House bill defined terrorism in part by reference to our terrorism treaty

obligations listed in 18 U.S.C. 2339C(e)(7) and thus might invoke Congress’ authority to

enact legislation to define and punish offenses against the law of nations, U.S. CONST. art.

I, §8, cl.10, a feature and benefit the Conference bill does not enjoy.

96

Proposed 21 U.S.C. 960A(c).

97

Proposed 21 U.S.C. 960A.

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Section 123. Interfering With the Operation of An Aircraft.

It is a federal crime to destroy an aircraft or its facilities under various

circumstances giving rise to federal jurisdiction or to attempt, or conspire to do so,

18 U.S.C. 32. Violations are punishable by imprisonment for not more than 20 years,

id. It is likewise a federal crime to interfere with a member of a flight crew in the

performance of their duties; this too is punishable by imprisonment for not more than

20 years (or imprisonment for any term of years or for life in the case of assault with

a dangerous weapon), 49 U.S.C. 46504.

Section 123, in the language of section 125 of the House bill before it, amends

18 U.S.C. 32 to make it a federal crime to interfere or disable the operator of an

aircraft or aircraft facility with reckless disregard for human safety or with the intent

to endanger, subject to the same sanctions that apply to other violations of the

section. By operation of section 32 the new prohibition extends to attempts and

conspiracies to engage in such conduct, 18 U.S.C. 32(a)(7)(redesignated 18 U.S.C.

32(a)(8)).

Section 124. Investigation of Political Activities.

FISA bars the use of various information collection techniques in the course of

a foreign intelligence investigation, if the investigation is based solely on the exercise

of First Amendment protected rights, 50 U.S.C. 1805(a)(3)(A), 1824(a)(1)(A),

1942(a)(1).

Section 124, like section 126 in the House bill, expresses the sense of Congress

that the federal government should not conduct criminal investigations of Americans

based solely on their membership in non-violent political organizations or their

participation in other lawful political activity.

Section 125. Immunity for Fire Equipment Donors.

Section 125, like section 131 in the House bill, grants immunity from civil

liability to the donors (other than manufacturers) of fire equipment to volunteer fire

organizations and resembles legislation introduced earlier in each house, H.R.

1088/S. 766.

Section 126. Federal Data Mining Report.

When 126 came out of the House as section 132 it directed the Attorney General

to prepare a report to Congress on all data mining activities of all federal agencies

and departments including the legal authority for such activities and their privacy and

civil liberties implications. When section 126 came out of conference it was limited

to a report on the “pattern-based” data mining activities of the Department of Justice.

The Conference bill does not define “pattern-based” nor does the conference report

CRS-23

discuss the limitations on the House bill which the conferees felt appropriate.98 The

Senate bill had no similar provision.

Section 127. Victims Access Forfeiture Funds.

Section 981 of title 18 of the United States Code describes various forms of

property that are subject to confiscation by the United States because of their

proximity to various federal crimes. The proceeds from the confiscation of crimerelated property are generally available for law enforcement purposes to the law

enforcement agencies that participate in the investigation and prosecution that results

in the forfeiture, e.g., 18 U.S.C. 981(e). The funds realized from the collection of

criminal fines are generally available for victim compensation and victim assistance

purposes, 42 U.S.C. 10601. Victims of violent federal crimes are entitled to

restitution, 18 U.S.C. 3663A, and victims of other federal crimes are eligible for

restitution, 18 U.S.C. 3663.

Section 127 of the Conference bill, like section 133 of the House bill before it,

expresses the sense of Congress that under section 981 victims of terrorists should

have access to the assets forfeited. The Senate bill had no comparable provision.

Section 128. Information Related to FISA Pen Register.

Law enforcement officials may secure an order authorizing the installation and

use of a pen register or trap and trace device to obtain information relevant to a

criminal investigation, 18 U.S.C. 3122, 3123. They are also entitled to a court order

directing a communications provider to supply certain customer information when

98

The want of definition may be significant because the terms are not hermetically sealed

legal concepts, see, e.g., Safeguarding Privacy in the Fight Against Terrorism, Report of

the Technology and Privacy Advisory Committee, 45 (March 2004)(“data mining includes

‘pattern-based’ searches . . . These [might] involve developing models of what terrorist

behavior might look like and then examining databases for similar patterns. This is similar

to commercial data mining techniques — businesses develop a pattern of attributes or

behaviors that their good customers have in common, and then search databases to find

people meeting those patterns — but potentially far more powerful given the range of data

to which the government has access and the capacity of data mining to eliminate the need

to aggregate data before searching them. As we use the term, data mining may also include

‘subject-based’ searches, which look for information about a specific individual or links to

known terrorist suspects. This has long been a basic tool of criminal investigators

everywhere: start with known suspects and, with proper authorization (in many cases, a

warrant or a subpoena), look for information about them and the people with whom they

interact. However, the power of data mining technology and the range of data to which the

government has access have contributed to blurring the line between subject- and patternbased searches. The broader the search criteria, and the more people other than actual

terrorist who will be identified by those criteria, the more pattern-like these searches

become. Even when a subject-based search starts with a known suspect, it can be

transformed into a pattern-based search as investigators target individuals for investigation

solely because of their connection with the suspect. The more tenuous the connection, the

more like a pattern-based search it becomes. Searches that lack specific focus on identified

suspects do pose greater risk for U.S. persons and should be subject to greater scrutiny and

accountability”).

CRS-24

relevant to a criminal investigation, 18 U.S.C. 2703.99 Foreign intelligence officials

are entitled to secure a FISA order for installation and use of a pen register or trap

and trace device in connection with certain foreign intelligence investigations, 50

U.S.C. 1841-1846. Under its national security letter authority the FBI may request

communications providers to supply customer name, address, length of service and

local and long distance toll billing records, 18 U.S.C. 2709. Under section 215 of the

USA PATRIOT Act, the FBI may obtain a FISA tangible item order for customer

records held by a communications provider, 50 U.S.C. 1861.

Section 128 of the Conference bill carries forward a provision found in section

6 of the Senate bill under which the FISA court may, in its pen register/trap and trace

order, direct a service provider to supply customer information relating to use of the

device, proposed 50 U.S.C. 1842(d)(2)(C).100 The information to be made available

is more extensive that what is available under 18 U.S.C. 2709, or to law enforcement

officials, but not as extensive as the scope of information under a FISA section 215

“tangible item” order, i.e.:

(i) in the case of the customer or subscriber using the service covered by the

order (for the period specified by the order) —

(I) the name of the customer or subscriber;

(II) the address of the customer or subscriber;

(III) the telephone or instrument number, or other subscriber number or

identifier, of the customer or subscriber, including any temporarily assigned

network address or associated routing or transmission information;

(IV) the length of the provision of service by such provider to the customer or

subscriber and the types of services utilized by the customer or subscriber;

(V) in the case of a provider of local or long distance telephone service, any local

or long distance telephone records of the customer or subscriber;

(VI) if applicable, any records reflecting period of usage (or sessions) by the

customer or subscriber; and

(VII) any mechanisms and sources of payment for such service, including the

number of any credit card or bank account utilized for payment for such service;

and

(i) if available, with respect to any customer or subscriber of incoming or

outgoing communications to or from the service covered by the order —

(I) the name of such customer or subscriber;

(II) the address of such customer or subscriber;

(III) the telephone or instrument number, or other subscriber number or

identifier, of the customer or subscriber, including any temporarily assigned

network address or associated routing or transmission information;

(IV) the length of the provision of service by such provider to the customer or

subscriber and the types of services utilized by the customer or subscriber,

proposed 50 U.S.C. 1842(d)(2)(C).

99

The information available under section 2703 includes “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 to or customer

of such service),” 18 U.S.C. 2703(c)(2).

100

The House bill had no comparable provision.

CRS-25

The Senate Select Committee on Intelligence observed with respect to an

identically worded section in S. 1266, “the FISA audit staff was informed that when

a federal court issues an order for criminal pen register or trap and trace device, the

court has the authority under 18 U.S.C. 2703(d) to routinely require the service

provider to supply subscriber information in its possession for the numbers or e-mail

addresses captured by the devices. The FISA pen register/trap and trace provision

has no comparable authority. Section 215 of this bill addresses this discrepancy,”

S.Rept. 109-85, at 8 (2005).

The amendment would likely simplify the process, but critics might ask why it

is necessary since information already seems to be available through use of the

national security letter authority under 18 U.S.C. 2709 or the FISA business records

“tangible item” authority when used in conjunction with the FISA pen register/trap

and trace authority.

Like the Senate bill, the conferees amended the FISA oversight reporting

requirements so that Judiciary Committees receive full reports on the use of the

FISA’s pen register and trap and trace authority every six months, proposed 50

U.S.C. 1846(a).

Title I House Proposals Dropped in Conference.

Title I of the Conference bill is a melding of modified proposals from the House

bill and S. 1389. Due to the relative expanse of its coverage and unlike its Senate

counterpart there are entire sections of the House bill which here and in other titles

disappeared in conference. In the case of Title I of the Conference bill these fall into

one of two categories. Individual sections in the House bill which the conferees

combined and sections like first responder funding and notification provisions which

they put aside.

Court Notification of Information Sharing. Section 105 of the House bill

amended a criminal wiretap section, 18 U.S.C. 2517(6) to require that the court

which authorized a wiretap be advised when the resulting information was shared

with other agencies.101 Other provisions have rendered the underlying section largely

redundant.

First Responder Funding. Section 1014 of the USA PATRIOT Act

establishes a grant program for state and local domestic preparedness support, 42

U.S.C. 3714. The 108th Congress ended before proponents for adjustment in the

grant effort were able to reach consensus,102 although the sense of Congress statement

in section 7401 of the Intelligence Reform and Terrorism Prevention Act bespeaks

a resolution to do so during the 109th Congress.103 Sections 127 through 131 of the

101

S. 1389 had no similar provision.

102

See CRS Report RL32634, First Responder Grant Formulas: A Comparison of Formula

Provisions in S. 2845 and H.R. 10, 108th Congress, by Shawn Reese.

103

“It is the sense of Congress that Congress must pass legislation in the first session of

the 109th Congress to reform the system for distributing grants to enhance State and local

government prevention of, preparedness for, and response to acts of terrorism,” 118 Stat.

CRS-26

House bill passed the House separately as H.R. 1544, 151 Cong. Rec. H3236-237

(daily ed. May 12, 2005).104 They are not included in the Conference bill.105

Mergers. Section 110 of the Conference bill encompasses the proposals found

in sections 110 and 115 of the House bill relating to attacks on mass transit. Section

113 of the Conference bill absorbs the proposals to enlarge the wiretap predicate

offense list found in sections 113 and 122 of the House bill. Finally, in section 114

the Conference bill addresses the sneak and peek proposals which the House

advanced in its sections 114 and 121.

Title II: Terrorist Death Penalty Enhancement

Title II in the House bill proposed a substantial number of adjustments in federal

death penalty law. The Senate bill had none. The conferees accepted only three of

the House proposals, one that involves air piracy cases arising before 1996, a second

that eliminates a redundant procedural mechanism in federal capital drug cases, and

a third addressed to supervised release for terrorism offenses. The conferees,

however, added a new section to Title II and another to Title V. The new section in

Title II accomplished a technical transfer of the law governing the appointment of

counsel in capital cases. The section in Title V concerns replacing the courts with

the Attorney General as a gatekeeper for state access to expedited habeas procedures

in capital cases.

Section 201. Short Title.

Section 201 styles Title II, the “Terrorist Death Penalty Enhancement Act of

2005.”

Section 211. Pre-1994 Capital Air Piracy Cases.

In the late 1960’s and early 1970’s the Supreme Court held imposition of capital

punishment under the procedures then employed by the federal government and most

of the states unconstitutional.106 In 1974, Congress established a revised procedure

for imposition of the death penalty in certain air piracy cases.107 In 1994, when

Congress made the procedural adjustments necessary to revive the death penalty as

a sentencing option for other federal capital offenses, it replaced the air piracy

procedures with those of the new regime.108 At least one court, however, held that

the new procedures could not be applied retroactively to air piracy cases occurring

3849 (2004).

104

See also H.Rept. 109-65 (2005).

105

S. 1389 had no comparable first responder funding provisions.

106

Furman v. Georgia, 408 U.S. 238 (1972).

107

P.L. 93-366, 88 Stat. 409 (1974), 49 U.S.C. 1473 (1976 ed.)

108

P.L. 103-322, 108 Stat. 1796, 1970 (1994), 18 U.S.C. 3591-3598.

CRS-27

after the 1974 fix but before the 1994 legislation, in the absence of an explicit

statutory provision.109

Section 211 adds an explicit provision to the end of the 1994 legislation.110 The

amendment provides for the application of the existing federal capital punishment

procedures, 18 U.S.C. ch.228, in addition to consideration of the mitigating and

aggravating factors in place prior to the 1994 revival.111 Section 211 also provides

for severance should any of the 1994 factors be found constitutionally invalid, and

includes a definition of “especially heinous, cruel, or depraved” used as an

aggravating factor in section 46503, to avoid the vagueness problems that might

otherwise attend the use of such an aggravating factor.112

The conference report notes that the changes apply to a relative small group of

individuals responsible for murders committed during the course of hijackings in the

mid 1980’s who would otherwise be eligible for parole within 10 years of sentencing

and could not be effectively sentenced to more than 30 years in prison.113

109

United States v. Safarini, 257 F.Supp.2d 191, 202-3 (D.D.C. 2003).

110

Proposed subsection 60003(c), amending P.L. 103-322, 108 Stat.1970 (1994).

111

P.L. 103-272, 108 Stat. 1242 (1994). Because the 1994 legislation was enacted almost

immediately after recodification of title 49, 49 U.S.C. 46503 never appeared in the official

United States Code or any of its supplements. The predecessor to 49 U.S.C. 46503 as

repealed in the 1994 capital punishment revival statute appears in 49 U.S.C. App. 1473

(1988 ed.).

112

113

See, e.g., Maynard v. Cartwright, 486 U.S. 356, 359-61 (1988).

“This provision is particularly important for several reason. In the absence of a death

penalty that could be implemented for pre-FDPA hijacking offenses resulting in death that

also occurred before the effective date of the Sentencing Guidelines on November 1, 1987,

the maximum penalty available would be life imprisonment. Under the pre-Sentencing

Guidelines structure, even prisoners sentenced to life imprisonment were eligible for a

parole hearing after serving only ten years. While there is a split in the Circuit Courts of

Appeals as to whether a sentencing judge can impose a sentence that could avert the 10-year

parole hearing requirement, the current position of the Bureau of Prisons is that a prisoner

is eligible for a parole hearing after serving ten years of a life sentence. Even if parole is

denied on that first occasion, such prisoners are eligible to have regularly scheduled parole

hearings every two years thereafter. Moreover, in addition to parole eligibility after ten

years, the old sentencing and parole laws incorporated a presumption that even persons

sentenced to life imprisonment would be released after no more than 30 years.

“In the context of the individuals responsible for the hijacking incidents described

above, most of th perpetrators were no older than in their twenties when they committed

their crimes. The imposition of a pre-Guidelines sentence of life imprisonment for these

defendants means that many, if not all of them, could be expect to be released from prison

well within their lifetime. Given the gravity of these offenses, coupled with the

longstanding Congressional intent to have a death penalty available for the offense of air

piracy resulting in death, such a result would be at odds with the clear directive of

Congress,” H.Rept. 109-333, at 101 (2005).

CRS-28

Section 212. Life Time Supervised Release Regardless of Risks.

A federal court may impose a sentence of supervised release, to be served upon

release from prison, of any term of years or life if the defendant has been convicted

of a federal crime of terrorism (18 U.S.C. 2332b(g)(5)(B)) involving the foreseeable

risk of physical injury of another, 18 U.S.C. 3583(j).114

Section 212 amends section 3583 to eliminate the requirement that the

defendant be convicted of a crime involving a foreseeable risk of injury; conviction

of any federal crime of terrorism is sufficient, proposed 18 U.S.C. 3583(j).

Section 221. Capital Procedures in Drug Cases.

Federal law provides two sets of death penalty procedures for capital drug cases,

the procedures applicable in federal capital cases generally, 18 U.S.C. 3591-3598,

and the procedures specifically applicable in federal capital drug cases, 21 U.S.C.

848. The two are virtually identical, United States v. Matthews, 246 F.Supp.2d 137,

114

The federal crimes of terrorism are violations of: 18 U.S.C. 32 (destruction of aircraft

or aircraft facilities), 37 (violence at international airports), 81 (arson within special

maritime and territorial jurisdiction), 175 or 175b (biological weapons), 175c (variola virus),

229 (chemical weapons), subsection (a), (b), (c), or (d) of section 351 (congressional,

cabinet, and Supreme Court assassination and kidnaping), 831 (nuclear materials), 842(m)

or (n) (plastic explosives), 844(f)(2) or (3) (arson and bombing of Government property

risking or causing death), 844(i) (arson and bombing of property used in interstate

commerce), 930(c) (killing or attempted killing during an attack on a Federal facility with

a dangerous weapon), 956(a)(1) (conspiracy to murder, kidnap, or maim persons abroad),

1030(a)(1) (protection of computers), 1030(a)(5)(A)(i) resulting in damage as defined in

1030(a)(5)(B) (ii) through (v) (protection of computers), 1114 (killing or attempted killing

of officers and employees of the United States), 1116 (murder or manslaughter of foreign

officials, official guests, or internationally protected persons), 1203 (hostage taking), 1361

(government property or contracts), 1362 (destruction of communication lines, stations, or

systems), 1366(a) (destruction of an energy facility), 1751(a), (b), (c), or (d) (Presidential

and Presidential staff assassination and kidnaping), 1992 (train wrecking), 1993 (terrorist

attacks and other acts of violence against mass transportation systems), 2155 (destruction

of national defense materials, premises, or utilities), 2156 (national defense material,

premises, or utilities), 2280 (violence against maritime navigation), 2281 (violence against

maritime fixed platforms), 2332 (certain homicides and other violence against United States

nationals occurring outside of the United States), 2332a (use of weapons of mass

destruction), 2332b (acts of terrorism transcending national boundaries), 2332f (bombing

of public places and facilities), 2332g (missile systems designed to destroy aircraft), 2332h

(radiological dispersal devices), 2339 (harboring terrorists), 2339A (providing material

support to terrorists), 2339B (providing material support to terrorist organizations), 2339C

(financing of terrorism), 2340A (torture); 42 U.S.C. 2122 (prohibitions governing atomic

weapons), 2284 (sabotage of nuclear facilities or fuel); 49 U.S.C. 46502 (aircraft piracy),

the second sentence of 46504 (assault on a flight crew with a dangerous weapon),

46505(b)(3) or (c) (explosive or incendiary devices, or endangerment of human life by

means of weapons, on aircraft), 46506 if homicide or attempted homicide is involved

(application of certain criminal laws to acts on aircraft), and 60123 (b) (destruction of

interstate gas or hazardous liquid pipeline facility). Section 112 of the Conference bill adds

18 U.S.C. 2339D(foreign military training) and 21 U.S.C. 1010A (narco-terrorism) to the

list, proposed 18 U.S.C. 2332b(g)(5)(B).

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141 (N.D.N.Y. 2002). Section 221 eliminates the specific drug case procedures so

that only the general procedures apply in such cases. From the perspective of the

conferees, it “eliminates duplicative death procedures under title 21 of the United

States code, and consolidates procedures governing all Federal death penalty

prosecutions in existing title 18 of the United States Code, thereby eliminating

confusing requirements that trial courts provide two separate sets of jury

instructions,” H.Rept. 109-333, at 102 (2005).

Section 222. Appointment of Counsel in Capital Cases.

The federal capital drug provisions now house provisions for the appointment

of counsel to assist indigents facing federal capital charges and indigent federal and

state death row inmates during federal habeas proceedings, 21 U.S.C. 848(q)(4)-(10).

Section 222 transfers the provisions to title 18, proposed 18 U.S.C. 3599.

Title II House Proposals Dropped in Conference.

The conferees declined to carry forward several proposals found in the House

bill. Thus, the Conference bill has no provision comparable to:

- Section 211 of the House bill which created a new federal offense which

outlawed committing a terrorist offense resulting in death and which was

punishable by death or imprisonment for any term of years or for life, proposed

18 U.S.C. 2339E. The underlying “terrorist offenses” were the commission,

attempt to commit, or conspiracy to commit (1) any federal crime of terrorism

committed for terrorist purposes as defined by 18 U.S.C. 2332b(g)(except 18

U.S.C. 1363 relating to the destruction of property in federal enclaves); or (2)

any violation of 18 U.S.C. ch. 113B (terrorism), 175 (biological weapons), 175b

(biological materials), 229 (chemical weapons) 831 (nuclear material), or 42

U.S.C. 2284 (sabotage of nuclear facilities).

- Section 212 of the House bill which authorized federal courts sentencing a

defendant for a terrorist offense, as defined in 18 U.S.C. 2339E, to a term of

federal benefit ineligibility for any term of years or for life, proposed 18 U.S.C.

2339F.

- Section 214 of the House bill would have added the new 18 U.S.C. 2339E

(“whoever, in the course of committing a terrorist offense, engages in conduct

that results in the death of a person”) to the treason/espionage category, proposed

18 U.S.C. 3591(a)(1), and created an additional aggravating factor applicable to

the category’s offenses, i.e., “the defendant committed the offense after

substantial planning,” proposed 18 U.S.C. 3592(b)(4).

- Section 231 of the House bill which changed the wording of one of the

mitigating factors in the federal capital punishment statute from, “Another

defendant or defendants, equally culpable in the crime, will not be punished by

death,” 18 U.S.C. 3592(a)(4), to “The Government could have, but has not,

sought the death penalty against another defendant or defendants, equally

culpable in the crime,” proposed 18 U.S.C. 3592 (a)(4). Then, it made three

aggravating factor changes: (a) amending the “hired the killer” factor to include

situations where the defendant merely created the expectation that the killer

would be paid, proposed 18 U.S.C. 3592(c)(7); (b) adding all other federal

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crimes of terrorism to the homicide aggravating factor that already mentions

homicide committed during the course of over a dozen crimes of terrorism as an

aggravating circumstance, proposed 18 U.S.C. 3592(c)(1); and (c) creating a new

obstruction of justice aggravating factor for those homicides committed “to

obstruct investigation or prosecution of any offense,” proposed 18 U.S.C.

3592(c)(17). Finally, it made changes in capital juries by: (a) permitting the

court to impanel a new sentencing jury if the initial panel was unable to reach

a unanimous death penalty verdict, proposed 18 U.S.C. 3593(b)(2)(E), 3594; (b)

allowing sentencing by juries of less than 12 members without the consent of the

accused when the court found good cause, proposed 18 U.S.C. 3593(b); (c)

increasing the number of regular government peremptory challenges to 9 and

permitting each side 4 additional peremptory alternate juror challenges when

either 7, 8 or 9 alternates jurors were impaneled, proposed F.R.Crim.P. 25(b)(2),

(c)(4)(C).

Title III: Seaport Terrorism

Title III of the Conference bill mirrors provisions in the House passed bill

offered the conferees; it has no counterpart in the Senate bill. But it does reflect the

provisions of S. 378, Reducing Crime and Terrorism at America’s Seaports Act of

2005. S. 378, reported by the Senate Judiciary Committee without written report

earlier this year, 151 Cong. Rec. 4108 (daily ed. April 21, 2005), dating in part from

earlier legislative proposals115 including the Clinton Administration’s proposed 21st

Century Law Enforcement and Public Safety Act, introduced as S. 2783 in the 106th

Congress and endorsed in some its particulars by the pre-9/11, Interagency

Commission on Crime and Security in U.S. Seaports.116

Section 301. Short Title.

Section 301 designates Title III the “Reducing Crime and Terrorism at

America’s Seaports Act of 2005.”

Section 302. Seaport Entry by False Pretenses.

The Maritime Transportation Security Act requires the submission to the

Department of Homeland Security of vessel and facility security plans that include

provisions for establishing and controlling secure areas, 46 U.S.C. 70103(c). The act

also calls for issuance of transportation security cards in order to regulate access to

secure areas, 46 U.S.C. 70105. The act contains no specific provisions regarding

trespassing upon security areas, but the Coast Guard and Maritime Transportation

Act amended its provisions in a manner that suggests the application of state criminal

laws as well as criminal sanctions found in the Deepwater Port Act, 33 U.S.C. 1514

(imprisonment for not more than one year); the Ports and Waterways Safety Act, 33

115

116

See, e.g., S. 899, the 21st Century Justice Act of 1999.

Report of the Interagency Commission on Crime and Security in U.S. Seaports (Fall

2000), available on Jan. 13, 2006 at [http://www.securitymanagement.com

/library/seaport1200.pdf].

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U.S.C. 1232 (imprisonment for not more than 10 years); and the act of June 15, 1917,

50 U.S.C. 192 (imprisonment for not more than 10 years).117

As a general matter, it is a federal crime to use fraud or false pretenses to enter

federal property, a vessel or aircraft of the United States, or the secured area in an

airport, 18 U.S.C. 1036. The offense is punishable by imprisonment for not more

than five years if committed with the intent to commit a felony and imprisonment for

not more six months in other cases, id. The same maximum penalty applies to

making a false statement to federal officials or in any matter within the jurisdiction

of a federal agency or department, 18 U.S.C. 1001. Possession of phony government

identification to defraud the U.S. is a one year felony absent further aggravating

circumstances under which the sanctions are increased, 18 U.S.C. 1028 (a)(4), (b)(6).

Moreover, except to the extent covered by 18 U.S.C. 1036 or 18 U.S.C. 1863

(trespassing in the national forests), unlawful entry to property (federal or otherwise)

with the intent to commit a second crime is punishable under the laws of the state in

which it occurs, cf., 18 U.S.C. 13.

Section 302 expands 18 U.S.C. 1036 to cover seaports and increases the penalty,

for violations with respect to any of the protected areas committed with the intent to

commit a felony, from imprisonment for not more than five years to imprisonment

for not more than 10 years, proposed 18 U.S.C. 1036.118 The section also provides

a definition of “seaport,” proposed 18 U.S.C. 26.119

117

46 U.S.C. 70119 expressly authorizes state and local law enforcement officers to make

arrests for violations of these Acts, and notes that the authority is in addition and should not

be construed to limit any other authority they may possess.

118

“(a)Whoever, by any fraud or false pretense, enters or attempts to enter — (1) any real

property belonging in whole or in part to, or leased by, the United States; (2) any vessel or

aircraft belonging in whole or in part to, or leased by, the United States; (3) any secured or

restricted area of any seaport, designated as secure in an approved security plan, as

required under section 70103 of title 46, United States Code, and the rules and regulations

promulgated under that section; or (4) any secure area of any airport, shall be punished as

provided in subsection (b) of this section.

“(b) The punishment for an offense under subsection (a) of this section is — (1) a fine

under this title or imprisonment for not more than [5 years] 10 years, or both, if the offense

is committed with the intent to commit a felony; or (2) a fine under this title or

imprisonment for not more than 6 months, or both, in any other case,” proposed 18 U.S.C.

1036(a),(b) (proposed changes italics - deletion in bold).

119

“As used in this title, the term ‘seaport’ means all piers, wharves, docks, and similar

structures, adjacent to any waters subject to the jurisdiction of the United States, to which

a vessel may be secured, including areas of land, water, or land and water under and in

immediate proximity to such structures, buildings on or contiguous to such structures, and

the equipment and materials on such structures or in such buildings,” proposed 18 U.S.C.

26.

The term “seaport” does not appear to have been used in any other section of title 18;

elsewhere in federal law the term “port” is more commonly used, see, e.g., 6 U.S.C. 468

(Coast Guard’s homeland security mission), 18 U.S.C. 2199(stowaways), perhaps to make

clear that ports such as those on Great Lakes are covered notwithstanding the fact they may

not ordinarily be thought of as “seaports.”

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The conference report quotes the Interagency Commission report and describes

the problems the amendments are designed to address:

According to the Report of the Interagency Commission . . . ‘[c]ontrol of access

to the seaport or sensitive areas within the seaport is often lacking.’ Such

unauthorized access is especially problematic, because inappropriate controls

may result in the theft of cargo and more dangerously, undetected admission of

terrorists. In addition to establishing appropriate physical, procedural, and

personnel security for seaports, it is important that U.S. criminal law adequately

reflect the seriousness of the offense. H.Rept. 109-333, at 103 (2005).

But, critics might point out, the section does not deal with all “unauthorized

access” only access accomplished by fraud. And even if the seriousness of such

unauthorized access to seaport restricted areas with criminal intent might warrant

imprisonment for up to 10 years, there is nothing in conference or Commission

reports to explain the necessity for the comparable penalty increase for the other

forms of trespassing upon the other areas covered under section 1036. Or so critics

might argue.

Section 303. Obstructing Maritime Inspections. Various federal laws

prohibit the failure to heave to or otherwise obstruct specific maritime inspections

under various circumstances.120

Section 303 replicates section 303 of the House bill and establishes a new,

general federal crime that outlaws, in the case of vessel subject to the jurisdiction of

the United States, the failure to heave to, or to forcibly interfere with the boarding of

the vessel by federal law enforcement or resist arrest, or to provide boarding federal

law enforcement officers with false information concerning the vessel’s cargo, origin,

destination, registration, ownership, nationality or crew, proposed 18 U.S.C. 2237.

The crime is punishable by imprisonment for not more than five years.

Section 304. Interference with Maritime Commerce. Existing federal

law prohibits violence against maritime navigation, 18 U.S.C. 2280, burning or

bombing vessels, 18 U.S.C. 2275, burning or bombing property used in or whose use

affects interstate or foreign commerce, 18 U.S.C. 844(i), destruction of property

within the special maritime and territorial jurisdiction of the United States, 18 U.S.C.

1363. None of them are punishable by life imprisonment unless death results from

their commission, id.121

Section 304, like section 305 of the House bill creates two new federal crimes,

One makes it a federal crime punishable by imprisonment for any term of years or for

life (or the death penalty if death results) to place a dangerous substance or device in

120

See, e.g., 16 U.S.C. 2435, 2438 (enforcement of the Antarctic Marine Living Resources

Convention); 16 U.S.C. 5505, 5508 (high seas fishing compliance).

121

For example, section 2280, which among other things, “prohibits destroy[ing] a ship or

caus[ing] damage to a ship or to its cargo which is likely to endanger the safe navigation of

that ship” or attempting or conspiring to do so is punishable by imprisonment for not more

than 20 years or if death results by death or imprisonment for life or any term of years, 18

U.S.C. 2280(a)(1)(C),(H).

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the navigable waters of the United States with the intent to damage a vessel or its

cargo or to interfere with maritime commerce, proposed 18 U.S.C. 2282A. Critics

may wonder why the existing penalty structure was considered insufficient.

The second of section 304’s provisions makes it a federal crime punishable by

imprisonment for not more than 20 years to tamper with any navigational aid

maintained by the Coast Guard or St. Lawrence Seaway Development Corporation

in manner likely to endanger navigation, proposed 18 U.S.C. 2282B. Opponents may

find the sanctions a bit stiff, but in the words of the conference report, “the Coast

Guard maintains over 50,000 navigational aids on more than 25,000 miles of

waterways. These aids . . are inviting targets for terrorists,” H.Rept. 109-333, at 103

(2005). There may also be some question why the new section is necessary if 18

U.S.C. 2291(a)(3) as proposed in section 306 of the Conference bill is enacted, since

that subsection states, “Whoever knowingly . . . damages, destroys, or disables . . .

any aid to navigation . . . shall be . . . imprisoned not more than 20 years;” see also,

proposed 18 U.S.C. 2291(a)(4)(“Whoever knowingly interferes by force or violence

with the operation of . . . any aid to navigation . . ., if such action is likely to endanger

the safety of any vessel in navigation”).

Section 305. Transporting Dangerous Materials or Terrorists.

Like section 306 of the House bill before it, section 305 of the Conference bill

establishes two other federal terrorism-related transportation offenses, one for

transporting dangerous materials and the other for transporting terrorists.

Transporting Dangerous Materials. It is a federal crime to possess

biological agents, chemical weapons, atomic weapons, and nuclear material, each

punishable by imprisonment for any term of years or for life.122 And although the

penalties vary, it is likewise a federal crime to commit any federal crime of

terrorism.123 Morever, it is a federal crime to provide material support, including

transportation, for commission of various terrorist crimes or for the benefit of a

designated terrorist organization, 18 U.S.C. 2339A, 2339B, or to transport explosives

in interstate or foreign commerce with the knowledge they are intended to be used

in injure an individual or damage property, 18 U.S.C. 844(d). Most of these offenses

condemn attempts and conspiracies to commit them, and accomplices and

coconspirators incur comparable liability in any event.124

Section 305 establishes a new federal offense which prohibits transporting

explosives, biological agents, chemical weapons, radioactive or nuclear material

knowing it is intended for use to commit a federal crime of terrorism — aboard a

vessel in the United States, in waters subject to U.S. jurisdiction, on the high seas,

or aboard a vessel of the United States, proposed 18 U.S.C. 2283. The crime is

punishable by imprisonment for any term of years or for life and may be punishable

by death if death results from commission of the offense, id.

122

18 U.S.C. 175, 229, 831; 42 U.S.C. 2272.

123

Each crime designated in 18 U.S.C. 2332b(g)(5)(B) carries its own penalty.

124

18 U.S.C. 2; United States v. Pinkerton, 328 U.S. 640, 647-48 (1946).

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Transporting Terrorists. While it is a crime to harbor a terrorist, 18 U.S.C.

2339, or to provide material support, including transportation, for the commission of

a terrorist offense or for the benefit of a foreign designated terrorist organization, 18

U.S.C. 2339A, 2339B, such offenses are only punishable by imprisonment for not

more than 15 years. The same perceived defect may appear to some in the penalties

for aiding and abetting commission of the various federal crimes of terrorism and in

the penalties available for committing many of them.125

Section 305 creates a new federal offense, proposed 18 U.S.C. 2284, punishable

by imprisonment for any term of years or for life for transporting an individual

knowing he intends to commit, or is fleeing from the commission of, a federal crime

of terrorism. Unlike the new 18 U.S.C. 2282A(c), created in section 304, neither of

the section 305 offenses have an explicit exception for official activities. Of course,

even though facially the new section 2284 forbids transportation terrorists for

purposes of extradition or prisoner transfer, it would never likely be read or applied

to prevent or punish such activity.

Section 306. Interference With Maritime Navigation.

Chapter 111 of title 18 of the United States Code relates to shipping and by and

large outlaws violence in various forms committed against vessels within U.S.

jurisdiction.126 Other sections of the Code proscribe the use of fire, explosives or

violence with sufficient breath of protect shipping under some circumstances. For

example, one section condemns the use fire or explosives against property used in (or

used in an activity affecting) interstate or foreign commerce, 18 U.S.C. 844(i).

Another prohibits destruction of property within the maritime jurisdiction of the

Untied States, 18 U.S.C. 1363, and a third, arson within the maritime jurisdiction, 18

U.S.C. 81. Hoaxes relating to violations of chapter 111 are punishable by

imprisonment for not more than five years (not more than 20 years if serious injury

results and if death results, by imprisonment for any term of years or for life or by

death), 18 U.S.C. 1038.

Section 306 of the Conference bill follows the lead of section 307 of the House

bill by enacting a new chapter 111A supplementing chapter 111 as well as section

1038 and consisting of four sections. Of the four sections, two are substantive,

proscribing hoaxes and the destruction of vessels or maritime facilities, proposed 18

U.S.C. 2291, 2292; and two procedural, one providing the jurisdictional base for the

125

For example, destruction of aircraft or violence at international airports in violation of

18 U.S.C. 32 and 73 respectively are punishable by imprisonment for not more than 20

years, unless a death results; and the same penalties apply to computer fraud and abuse

violations considered federal crimes of terrorism, 18 U.S.C. 1030(a)(5), (c)(4). Aiding and

abetting carries the same penalties as the underlying offense, 18 U.S.C. 2.

126

The offenses include 18 U.S.C. 2271 (conspiracy to destroy vessels), 2272 (destruction

of vessel by owner); 2273 (destruction of vessel by nonowner); 2274 (destruction or misuse

of vessel by person in charge); 2275 (firing or tampering with vessel), 2276 (breaking and

entering a vessel); 2277 (explosives or dangerous weapons aboard vessels); 2278

(explosives on vessels carrying steerage passengers); 2279 (boarding vessels before arrival);

2280 (violence against maritime navigation); and 2281 (violence against maritime fixed

platforms).

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substantive offenses, proposed 18 U.S.C. 2290, and the other barring prosecution of

certain misdemeanor or labor violations, proposed 18 U.S.C. 2993.

According to the conference report, “this section harmonizes the somewhat

outdated maritime provisions with the existing criminal sanctions for destruction or

interference with an aircraft or aircraft facilities in 18 U.S.C. 32, 34, and 35,” H.Rept.

109-333, at 104 (2005). It is not surprising therefore that the new destruction offense

mirrors the substantive provisions for the destruction of aircraft and their facilities,

18 U.S.C. 32,127 although it differs from the aircraft prohibition in several respects.

First, it has exceptions for lawful repair and salvage operations and for the lawful

transportation of hazardous waste, proposed 18 U.S.C. 2291(b). Second, in the

manner of 18 U.S.C. 1993 (attacks on mass transit), it pushes up the penalty

violations involving attacks on conveyances carrying certain hazardous materials to

life imprisonment, proposed 18 U.S.C. 2291(c). Third, it tightens the “death results”

sentencing escalator so that a sentence of death or imprisonment for life or any term

of years is only warranted if the offender intended to cause the resulting death,

proposed 18 U.S.C. 2291(d).128

127

“Whoever knowingly — (1) sets fire to, damages, destroys, disables, or wrecks any

vessel; (2) places or causes to be placed a destructive device or substance, as defined in

section 31(a)(3), or explosive, as defined in section 844(j) in, upon, or near, or otherwise

makes or causes to be made unworkable or unusable or hazardous to work or use, any vessel,

or any part or other materials used or intended to be used in connection with the operation

of a vessel; (3) sets fire to, damages, destroys, disables or places a destructive device or

substance in, upon, or near, any maritime facility, including any aid to navigation, lock,

canal, or vessel traffic service facility or equipment; (4) interferes by force or violence with

the operation of any maritime facility, including any aid to navigation, lock, canal, or vessel

traffic service facility or equipment, if such action is likely to endanger the safety of any

vessel in navigation; (5) sets fire to, damages, destroys, or disables or places a destructive

device or substance in, upon, or near, any appliance, structure, property, machine, or

apparatus, or any facility or other material used, or intended to be used, in connection with

the operation, maintenance, loading, unloading or storage of any vessel or any cargo carried

or intended to be carried on any vessel; (6) performs an act of violence against or

incapacitates any individual on any vessel, if such act of violence or incapacitation is likely

to endanger the safety of the vessel or those on board; (7) performs an act of violence

against a person that causes or is likely to cause serious bodily injury, as defined in section

1365(h)(3), in, upon, or near, any appliance, structure, property, machine, or apparatus, or

any facility or other material used, or intended to be used, in connection with the operation,

maintenance, loading, unloading or storage of any vessel or any cargo carried or intended

to be carried on any vessel; (8) communicates information, knowing the information to be

false and under circumstances in which such information may reasonably be believed,

thereby endangering the safety of any vessel in navigation; or (9) attempts or conspires to

do anything prohibited under paragraphs (1) through (8) of this subsection, shall be fined

under this title or imprisoned not more than 20 years, or both,” proposed 18 U.S.C. 2291(a).

Section 2280 carries the same basic 20 year maximum sanction; the House bill set the

maximum at 30 years, the sanction that applies to attacks on mass transit, 18 U.S.C. 1993

(proposed 18 U.S.C. 1992). The other sections cited in the report refer to the death penalty

(18 U.S.C. 34) and hoax (18 U.S.C. 35) provisions relating to violations of 18 U.S.C. 32.

128

bill.

This last difference is the work of the conferees, it did not appear in the House passed

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In addition to these, the substantive prohibitions of proposed section 2291 differ

from the otherwise comparable prohibitions of 18 U.S.C. 2280 in two major respects.

The proscriptions in section 2280 and those of section 32 generally require that the

prohibited damage adversely impact on safe operation;129 proposed section 2291 is

less likely to feature a comparable demand.

On the other hand, because it is treaty-based, section 2280 enjoys a broader

jurisdictional base than proposed section 2290 is able to provide for proposed section

2291. By virtue of proposed section 2290, a violation of proposed section 2291 is

only a federal crime if it is committed within the United States, or the offender or

victim is a U.S. national, or the vessel is a U.S. vessel, or a U.S. national is aboard

the vessel involved.130 In the case of subsection 32(b) or section 2280 there need be

no more connection to the United States than that the offender is subsequently found

or brought here, 18 U.S.C. 32(b), 2280(b)(1)(c). Like section 2280, however,

proposed section 2291 is subject to exceptions for misdemeanor offenses and labor

disputes.131

Proposed section 2292 creates a hoax offense in the image of 18 U.S.C. 35

which relates to hoaxes in an aircraft context. It sets a basic civil penalty of not more

than $5000 for hoaxes involving violations of the new proposed section 2291 or of

chapter 111, the existing shipping chapter.132 If the misconduct is committed

129

“A person who unlawfully and intentionally — (A) seizes or exercises control over a

ship by force or threat thereof or any other form of intimidation; (B) performs an act of

violence against a person on board a ship if that act is likely to endanger the safe navigation

of that ship; (C) destroys a ship or causes damage to a ship or to its cargo which is likely to

endanger the safe navigation of that ship; (D) places or causes to be placed on a ship, by any

means whatsoever, a device or substance which is likely to destroy that ship, or cause

damage to that ship or its cargo which endangers or is likely to endanger the safe navigation

of that ship; (E) destroys or seriously damages maritime navigational facilities or seriously

interferes with their operation, if such act is likely to endanger the safe navigation of a ship;

(F) communicates information, knowing the information to be false and under circumstances

in which such information may reasonably be believed, thereby endangering the safe

navigation of a ship; (G) injures or kills any person in connection with the commission or

the attempted commission of any of the offenses set forth in subparagraphs (A) through (F);

or (H) attempts or conspires to do any act prohibited under subparagraphs (A) through (G),

shall be fined under this title, imprisoned not more than 20 years, or both; and if the death

of any person results from conduct prohibited by this paragraph, shall be punished by death

or imprisoned for any term of years or for life,”18 U.S.C. 2280(a)(1).

130

The conferees added this last jurisdictional basis; it has no counterpart in the House bill.

131

“It is a bar to prosecution under this chapter if — (1) if the conduct in question occurred

within the United States in relation to a labor dispute, and such conduct is prohibited as a

felony under the law of the State in which it was committed; or (2) such conduct is

prohibited as a misdemeanor, and not a felony, under the law of the State in which it was

committed,” proposed 18 U.S.C. 2293(a). The conferees added this section; the House bill

has no such provision.

132

“Whoever imparts or conveys or causes to be imparted or 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 that would be a crime prohibited by this chapter or by chapter

111 of this title, shall be subject to a civil penalty of not more than $5,000, which shall be

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“knowingly, intentionally, maliciously, or with reckless disregard for the safety of

human life” it is punishable by imprisonment for not more than five years.133 The

conferees added a requirement that in both instances jurisdiction over the offense is

governed by the jurisdiction of the offense that is the subject to the hoax.134

In the case of hoaxes involving violations of chapter 111, the proposed new

section affords the government an alternative ground for prosecution to that offered

by 18 U.S.C. 1038.

Section 307. Theft From Maritime Commerce.

Section 307 is one area where the text of the Conference bill and the Conference

report diverge. The House bill and the Conference report describe a series of

amendments that do essentially two things: they expand or at least clarify the

application of various criminal provisions particularly in the case of maritime

commerce and they increase the maximum penalties for two of the offenses to 15

years. The text of the Conference bill carries forward the first objective but

maintains maximum penalties ceiling at 10 years.

Theft From Interstate Commerce. Federal law prohibits theft from

shipments traveling in interstate or foreign commerce; violations are punishable by

imprisonment for not more than 10 years (not more than one year if the value of the

property stolen is $1000 or less), 18 U.S.C. 659.

Section 307 increases the penalty for theft of property valued at $1000 or less

to imprisonment for not more than three years, proposed 18 U.S.C. 659. It also

makes it clear that theft from trailers, cargo containers, freight stations, and

warehouses are covered, and that the theft of goods awaiting transshipment is also

covered, proposed 18 U.S.C. 659.

Interstate or Foreign Transportation of Stolen Vessels. Interstate or

foreign transportation of a stolen vehicle or aircraft is punishable by imprisonment

for not more than 10 years, 18 U.S.C. 2312; receipt of a stolen vehicle or aircraft that

has been transported in interstate or foreign commerce carries the same penalty, 18

U.S.C. 2313.

recoverable in a civil action brought in the name of the United States,” proposed 18 U.S.C.

2292(a).

133

“Whoever knowingly, intentionally, maliciously, or with reckless disregard for the

safety of human life, imparts or conveys or causes to be imparted or 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 that would be a crime prohibited by this chapter or

by chapter 111 of this title, shall be fined under this title or imprisoned not more than 5

years,” proposed 18 U.S.C. 2292(b).

134

“Jurisdiction over an offense under this section shall be determined in accordance with

the provisions applicable to the crime prohibited by this chapter, or by chapter 111 of this

title, to which the imparted or conveyed false information relates, as applicable,” proposed

18 U.S.C. 2292(c).

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Section 307 expands the coverage of federal law to cover the interstate or

foreign transportation of a stolen vessel and receipt of a stolen vessel that has been

transported in interstate or overseas, proposed 18 U.S.C. 2311. The United States

Sentencing Commission is to review the sentencing guidelines application to

violations of 18 U.S.C. 659 and 2311. The Attorney General is to see that cargo theft

information is included in the Uniform Crime Reports and to report annually to

Congress on law enforcement activities relating to theft from interstate or foreign

shipments in violations of 18 U.S.C. 659.

Section 308. Stowaways.

Stowing away on a vessel or an aircraft is a federal crime; offenders are subject

to imprisonment for not more than one year, 18 U.S.C. 2199. Section 308 increases

the penalty for stowing away from imprisonment for not more than one year to not

more than five years (not more than 20 years if the offense is committed with the

intent to inflict serious injury upon another or if serious injury to another results; or

if death results, by death or imprisonment for any term of years or for life), proposed

18 U.S.C. 2199. Unlike the House bill, the “death results” capital punishment

provision of the Conference bill is only triggered if the offender intended to cause a

death, proposed 18 U.S.C. 2199(3).

Section 309. Port Security Bribery.

Bribery of a federal official is punishable by imprisonment for not more than 15

years, 18 U.S.C. 201; many federal crimes of terrorism carry maximum penalties of

imprisonment for not more than 20 years or more.135 Those who aid and abet or

conspire for the commission of such crimes are subject to sanctions.136

Section 309 makes it a federal crime to bribe any individual (private or public)

with respect to various activities within any secure or restricted area or seaport —

with the intent to commit international or domestic terrorism (as defined in 18 U.S.C.

2331). Offenders face imprisonment for not more than 15 years, proposed 18 U.S.C.

226 (the maximum under the House bill was 20 years).

Section 310. Smuggling Goods Into the United States.

As a general rule, smuggling is punishable by imprisonment for not more than

five years, 18 U.S.C. 545. Section 310 increases the penalty for smuggling to

imprisonment for not more than 20 years, proposed 18 U.S.C. 545.

Section 311. Smuggling Goods From the United States.

The penalty for smuggling goods into a foreign country by the owners,

operators, or crew of a U.S. vessel is imprisonment for not more than five years, 18

U.S.C. 546. The same penalty applies to smuggling goods into the United States

135

See, e.g., 18 U.S.C. 32 (destruction of aircraft, 20 years), 81 (arson, 25 years), 2332a

(weapons of mass destruction, life imprisonment).

136

18 U.S.C. 2; United States v. Pinkerton, 340 U.S. 640 (1946).

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(although the symmetry would disappear when section 310 makes smuggling into the

U.S. a 20 year felony). Other penalties apply for smuggling or unlawfully exporting

specific goods or materials out of the U.S. or into other countries.137

Section 311 creates a new federal crime which outlaws smuggling goods out of

the United States; offenders face imprisonment for not more than 10 years, proposed

18 U.S.C. 554. Once smuggling from the U.S. is made a federal offense,

corresponding changes in federal forfeiture and custom laws become a possibility.

Federal law proscribes laundering the proceeds of various federal crimes

(predicate offenses), 18 U.S.C. 1956, 1957. Smuggling goods into the U.S. in

violation of 18 U.S.C. 545 is a money laundering predicate offense, 18 U.S.C.

1956(c)(7)(D). The proceeds involved in financial transactions in violation of the

money laundering statutes are generally subject to confiscation, 18 U.S.C.

981(a)(1)(A). Section 311 adds the new overseas smuggling crime, proposed 18

U.S.C. 554, to the money laundering predicate offense list, proposed 18 U.S.C.

1956(c)(7)(D).

Federal law calls for the confiscation of goods smuggled into the United States

and of the conveyances used to smuggle them in, 19 U.S.C. 1595a. Section 311 calls

for the confiscation of goods smuggled out of the U.S. and of any property used to

facilitate the smuggling, proposed 19 U.S.C. 1595a(d).

It is a federal crime to remove property from the custody of the Customs

Service. Offenders are punishable by imprisonment for not more than two years, 18

U.S.C. 549. Section 311 increases the penalty to imprisonment for not more than 10

years, proposed 18 U.S.C. 549.

Title III House Proposals Dropped in Conference.

Two sections found in the House bill do not appear in the Conference bill.

Section 309 of the House bill that increased sanctions for failure to comply with

shipping manifest request requirements was dropped. Section 304 of the House bill

that made it clear that the prohibition on attacks on mass transit covered attacks on

passenger vessels became part of section 111 of Conference bill that rewrites 18

U.S.C. 1992 (train wrecking) and merges it with 18 U.S.C. 1993 (attacks on mass

transit).

Title IV: Terrorism Financing

The bill the Senate sent to conference had no money laundering provisions; the

bill the House sent had several which appear in the Conference bill either as amended

or as passed by the House prior to conference. The conferees inserted a new

provision, unknown to either of the bills that entered conference, that might be

construed to permit pre-trial asset freezes in certain civil forfeiture cases made part

of the property owner’s criminal trial.

137

See, e.g., 31 U.S.C. 5332 (bulk cash), 21 U.S.C. 953 (controlled substances), 18 U.S.C.

553 (stolen motor vehicles).

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Section 401. Short Title.

The short title of Title IV is the “Combating Terrorism Financing Act of 2005.”

Section 402. International Emergency Economic Powers Act

Penalties.

The International Emergency Economic Powers Act, 50 U.S.C. 1701-1707,

grants the President the power to impose economic restrictions “to deal with unusual

and extraordinary [external] threats to the national security, foreign policy, or

economy of the United States,” 50 U.S.C. 1701(a). The authority has been invoked

among other instances to block Iranian assets, Exec. Order No. 12170, 44 Fed.Reg.

65729 (Nov. 1979); to prohibit trade and certain other transactions with Libya, Exec.

Order No. 12543, 51 Fed.Reg. 875 (Jan. 7, 1986); to impose economic sanctions on

countries found to be contributing to the proliferation of weapons of mass

destruction, Exec. Order No. 12938, 59 Fed. Reg. 59099 (Nov. 14, 1994); to block

the assets and prohibit financial transactions with significant narcotics traffickers, 60

Fed.Reg. 54579 (Oct. 21, 1995); and to block the property and prohibit transactions

with persons who commit, threaten to commit, or support terrorism, Exec. Order No.

13224, 66 Fed.Reg. 49079 (Sept. 23, 2001).

Violations of presidential orders or related regulations issued under the act,

including but not limited to those that bar financial dealings with designated terrorists

and terrorist groups, are punishable by a civil penalty of not more than $10,000 and

by imprisonment for not more than 10 years, 50 U.S.C. 1705.

The Conference bill carries forward the provisions of the House bill which

increased the maximum term of imprisonment to 20 years and changed the maximum

civil penalty to $50,000, proposed 50 U.S.C. 1705.

Section 403. Terrorist Money Laundering.

RICO. The federal Racketeer Influenced and Corrupt Organizations (RICO) law

imposes severe penalties (up to 20 years imprisonment) for acquiring or operating an

enterprise through the commission of a pattern of other crimes (predicate offenses),

18 U.S.C. 1961-1965. One federal money laundering statute, prohibits, among other

things, using the funds generated by the commission of a predicate offense in a

financial transaction designed to conceal the origin of the funds or promote further

predicate offenses, 18 U.S.C. 1956. A second statute condemns financial

transactions involving more than $10,000 derived from a predicate offense, 18 U.S.C.

1957. Crimes designated RICO predicate offenses automatically qualify as money

laundering predicate offenses, 18 U.S.C. 1956(c)(7)(A), 1957(f)(3). Property

associated with either a RICO or money laundering violation is subject to

confiscation, but RICO forfeiture requires conviction of the property owner, 18

U.S.C. 1963, money laundering forfeiture does not, 18 U.S.C. 1956, 1957, 981.

It is a federal crime to operate a business that transmits money overseas either

directly or indirectly, without a license, or for a licensed business to either fail to

comply with applicable Treasury Department regulations or to transmit funds that it

knows will be used for, or were generated by, criminal activities, 18 U.S.C. 1960.

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The Conference bill, like the House bill, adds 18 U.S.C. 1960 (money

transmitters) to the RICO predicate offense list and consequently to the money

laundering predicate offense list, proposed 18 U.S.C. 1961(1). The House version

also added 8 U.S.C. 1324a (employing aliens) to the RICO list; the Conference bill

does not.

Direct Money Laundering Predicates. Nor did the conferees accept

addition of 42 U.S.C. 408 (misuse of a social security number) to the money

laundering predicate offense list as the House version had proposed. The conferee’s

handling of related House proposals is less clear. Section 403(b) of the House bill

reenacted two provisions of prior law. The Conference bill reenacts only one; the

Conference report states that the bill reenacts both.

Section 403(b) of the House bill stated, “Section 1956(c)(7)(D) of title 18,

United States Code, is amended by — (1) inserting, ‘, or section 2339C (relating to

financing of terrorism)’ before ‘of this title’; and (2) striking ‘or any felony violation

of the Foreign Corrupt Practices Act’ and inserting “any felony violation of the

Foreign Corrupt Practices Act, or any violation of 208 of the Social Security Act [42

U.S.C. 408] (relating to obtaining funds through misuse of a social security

number).”

Both the addition of section 2339C and the grammatical charge relating to the

Foreign Corrupt Practices Act (dropping the “or” before the reference) are redundant.

The Intelligence Reform and Terrorism Prevention Act made the Foreign Corrupt

Practices related grammatical fix, 118 Stat. 3774 (2004). Section 2339C is already

among the offenses found in the definition of federal crimes of terrorism, 18 U.S.C.

2332b(g)(5)(B), all of which are automatically RICO predicates and thus money

laundering predicates as well, 18 U.S.C. 1961(1)(G).

The Conference bill states, “Section 1956(c)(7)(D) of title 18, United States

Code, is amended by striking ‘or any felony violation of the Foreign Corrupt

Practices Act’ and inserting “any felony violation of the Foreign Corrupt Practices

Act,” proposed 18 U.S.C. 1956(c)(7)(D). Thus, in its text the Conference bill drops

the House proposal regarding the Social Security offense, 42 U.S.C. 408, and the

redundant terrorism offense, 18 U.S.C. 2339C, from the proposal to amend the

money laundering list but carries forward the redundant grammatical fix. The

Conference report indicates, however, that the conferees intended to carry forward

the terrorism offense as well, “Subsection (b) directly adds as money laundering

predicates the new terrorist-financing offense in 18 U.S.C. 2339C,” H.Rept. 109-333,

at 106 (2005).

Investigative Jurisdiction. The Conference bill carries forward the House

language concerning the money laundering investigative jurisdiction of various

components of the Department of Homeland Security, proposed 18 U.S.C. 1956(e),

1957(e).138 Clarification might be thought desirable for purposes of coordination, to

138

“Violations of this section may be investigated by such components of the Department

of Justice as the Attorney General may direct, and by such components of the Department

of the Treasury as the Secretary of the Treasury may direct, as appropriate and, with respect

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avoid duplication of efforts, and because investigative agencies share in the

distribution of forfeited property to the extent of their participation in the

investigation that led to confiscation, 18 U.S.C. 981(d), (e); 19 U.S.C. 1616a.

Section 404. Forfeiture for Foreign Crimes.

The property of individuals and entities that prepare for or commit acts of

international terrorism against the United States or against Americans is subject to

federal confiscation, 18 U.S.C. 981(a)(1)(G). Criminal forfeiture is confiscation that

occurs upon conviction for a crime for which forfeiture is a consequence, e.g., 18

U.S.C. 1963 (RICO). Civil forfeiture is confiscation accomplished through a civil

proceeding conducted against the “offending” property based on its relation to a

crime for which forfeiture is a consequence, e.g., 18 U.S.C. 981. Criminal forfeiture

is punitive; civil forfeiture is remedial, Calderon-Toledo v. Pearson Yacht Leasing,

416 U.S. 663, 683-88 (1974). A convicted defendant may be required to surrender

substitute assets if the property subject to criminal forfeiture is located overseas or

otherwise beyond the reach of the court, 18 U.S.C. 853(p). Civil forfeiture ordinarily

requires court jurisdiction over the property, but when forfeitable property is held

overseas in a financial institution that has a correspondent account in this country the

federal government may institute and maintain civil forfeiture proceedings against

the funds in the interbank account here, 18 U.S.C. 9871(k).

Article III, section 2 of the Constitution declares in part that, “no attainder of

treason shall work corruption of blood, or forfeiture of estate except during the life

of the person attainted,” U.S.Const. Art.III, §3, cl.2. Forfeiture of estate is the

confiscation of property simply because it is the property of the defendant, without

any other connection to the crime for which gives rise to the forfeiture. The

constitutional provision applies only in cases of treason, but due process would seem

likely to carry the ban to forfeiture of estate incurred as a result of other crimes,

particularly lesser crimes.139 The assumption must be hypothetical because with a

single Civil War exception until very recently federal law only called for the

forfeiture of property that had some nexus to the confiscation-triggering crime

to offenses over which the Department of Homeland Security has jurisdiction, by such

components of the Department of Homeland Security as the Secretary of Homeland Security

may direct, and, with respect to offenses over which the United States Postal Service has

jurisdiction, by the Postal Service. Such authority of the Secretary of the Treasury, the

Secretary of Homeland Security, and the Postal Service shall be exercised in accordance

with an agreement which shall be entered into by the Secretary of the Treasury, the

Secretary of Homeland Security, the Postal Service, and the Attorney General. Violations

of this section involving offenses described in paragraph (c)(7)(E) may be investigated by

such components of the Department of Justice as the Attorney General may direct, and the

National Enforcement Investigations Center of the Environmental Protection

Agency,”proposed 18 U.S.C. 1956(e)(language added by the Conference bill in italics);

proposed 18 U.S.C. 1957(e) has similar language.

139

United States v. Grande, 620 F.2d 1026,1038 (4th Cir. 1980)(“We would agree. . . that

if §1963 revives forfeiture of estate as that concept was expressed in the Constitution it is

almost certainly invalid because of the irrationality of a ruling that forfeiture of estate cannot

be imposed for treason but can be imposed for a pattern of lesser crimes”).

CRS-43

beyond mere ownership by the defendant.140 Subparagraph 981(a)(1)(G) calls for the

confiscation the property of individuals and entities that engage in acts of terrorism

against the United States or Americans, 18 U.S.C. 981(a)(1)(G)(i), and under

separate clauses any property derived from or used to facilitate such misconduct, 18

U.S.C. 981(a)(1)(G)(ii),(iii). As yet, there no reported cases involving 18 U.S.C.

981(a)(1)(G)(i).

The Conference bill, like the House bill, authorizes the federal government to

confiscate under civil forfeiture procedures all property of any individual or entity

planning or committing an act of international terrorism against a foreign nation or

international organization without any further required connection of the property to

the terrorist activity other than ownership.141 The section contemplates forfeiture of

property located both here and abroad; for in refers to “all assets, foreign and

domestic, but with respect to property located outside of the United States, it requires

an act in furtherance of the terrorism to “have occurred within the jurisdiction of the

United States,” proposed 18 U.S.C. 981(a)(1)(G)(iv). It is unclear whether the

jurisdiction referred to is the subject matter jurisdiction or territorial jurisdiction of

the United States or either or both. The due process shadow of Article III, section 3,

clause 2 may limit the reach of the proposal to property with some nexus other than

ownership to the terrorist act.

Section 405. Application of the Money Laundering Statute to

Dependent Transactions.

Money laundering in violation of 18 U.S.C. 1956 may take either of two forms

(1) engaging in a prohibited financial transaction involving the proceeds of a

predicate offense, 18 U.S.C. 1956(a)(1), or (2) internationally transporting,

transmitting, or transferring the proceeds of a predicate offense, 18 U.S.C.

1956(a)(2). The House bill presented to the conferees extended both the financial

transaction and the international transmission offenses to include related, parallel

transactions and transmissions, proposed 18 U.S.C. 1956(j)(1), (2). The Conference

140

Under the Confiscation Act all the property of Confederate army and naval officers was

forfeited, 12 Stat. 589 (1862), but owing to the constitutional reservations of President

Lincoln, the forfeiture statute was followed by another declaring that confiscation would

only apply during the life time of a member of the Confederate armed forces, 12 Stat. 627

(1862). The Supreme Court read the two together and as a matter statutory construction

held that a life estate in the property of the former Confederate naval officer at issue was all

that was subject to confiscation, Bigelow v. Forest, 76 U.S. 339, 350 (1869).

141

“The following property is subject to forfeiture to the United States . . . (G) All assets,

foreign or domestic . . . (iv) of any individual, entity, or organization engaged in planning

or perpetrating any act of international terrorism (as defined in section 2331) against any

international organization (as defined in section 209 of the State Department Basic

Authorities Act of 1956 (22 U.S.C. 4309(b) or against any foreign Government. Where the

property sought forfeiture is located beyond the territorial boundaries of the United States,

an act in furtherance of such planning or perpetration must have occurred within the

jurisdiction of the United States,” proposed 18 U.S.C. 981(a)(1)(G)(iv).

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bill enlarges only the financial transaction proscription, proposed 18 U.S.C.

1956(a)(1).142

As the Conference report explains, the amendment addresses a feature of the

often informal networks for transfer money overseas.

Alternative remittance systems are utilized by terrorists to move and

launder large amounts of money around the globe quickly and secretly. These

remittance systems, also referred to as “hawala” networks, are used throughout

the world, including the Middle East, Europe, North American and South Asia.

These systems are desirable to criminals and non-criminals alike because of the

anonymity, low cost, efficiency, and access to underdeveloped regions. The

United States has take steps to combat the”hawala” networks by requiring all

money transmitters, informal or form, to register as money service businesses.

Under current Federal law, a financial transaction constitutes a money laundering

offense only if the funds involved in the transaction represent the proceeds of

some criminal offense. . . There is some uncertainty, however, as to whether the

“proceeds element” is satisfied with regard to each transaction in a money

laundering scheme that involves two or more transactions conducted in parallel,

only one of which directly makes use of the proceeds from unlawful activity. For

example, consider the following transaction: A sends drug proceeds to B, who

deposits the money in Bank Account 1. Simultaneously or subsequently, B takes

an equal amount of money from Bank Account 2 and sends it to A, or to a person

designated by A. The first transaction from A to B clearly satisfies the proceeds

element of the money laundering statute, but there is some question as to whether

the second transaction — the one that involves only funds withdrawn form Bank

Account 2 does so as well. The question has become increasingly important

because such parallel transactions are the technique used to launder money

through the Black Market Peso Exchange and “hawala” network, H.Rept. 109333, at 107 (2005).

Sections 406-408. Technical Amendments.

As suggested in the bill the House sent to conference, the Conference bill

corrects a number of typographical and grammatical errors in existing law including

changing the reference in section 322 of the USA PATRIOT Act, 115 Stat. 315

(2001), from 18 U.S.C. 2466(b) to 28 U.S.C. 2466(b); changing the phrase “foreign

bank” to “foreign financial institution” in 18 U.S.C. 981(k)(relating to forfeiture and

interbank accounts); correcting a reference to the Intelligence Reform and Terrorism

Prevention Act, proposed 31 U.S.C. 5318(n)(4)(A); capitalizing a reference in the

Intelligence Reform and Terrorism Prevention Act (amending 18 U.S.C. 2339C

rather than 18 U.S.C. 2339c); and codifying the forfeiture procedure passed as

section 316 of the USA PATRIOT Act, 115 Stat. 309 (2001), proposed 18 U.S.C.

987.

142

“For purposes of this paragraph, a financial transaction shall be considered to be one

involving the proceeds of specified unlawful activity if it is party of a set of parallel or

dependent transactions, any one of which involves the proceeds of specified unlawful

activity, and all of which are part of a single plan or arrangement,” proposed 18 U.S.C.

1956(a)(1).

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Section 406. Civil Forfeiture Pre-trial Freezes and Restraining

Orders.

Federal law permits pre-trial restraining orders to freeze property sought in

criminal forfeiture cases, 21 U.S.C. 853(e), and pre-trial restraining orders or the

appointment of receivers or conservators in civil forfeiture cases, 18 U.S.C. 983(j).

In money laundering civil penalty and forfeiture cases, it also permits restraining

orders and the appointment of receivers under somewhat different, less demanding

procedures with respect to the property of foreign parties held in this country, 18

U.S.C. 1956(b). The Conference bill, like the House version of the bill before it,

removes the requirement that the property be that of a foreign party, proposed 18

U.S.C. 1956(b)(3),(4).

Section 406. Conspiracy Penalties.

It is a federal crime to destroy or attempt to destroy commercial motor vehicles

or their facilities, 18 U.S.C. 33. Offenders face imprisonment for not more than 20

years, id. It is also a federal crime to cause or to attempt to cause more than

$100,000 worth of damage to an energy facility, 18 U.S.C. 1366. Again, offenders

face imprisonment for not more than 20 years, id. As a general rule, conspiracy to

commit these or any other federal crime is punishable by imprisonment for not more

than five years, 18 U.S.C. 371, and conspirators are liable for the underlying offense

and any other offense committed by any of co-conspirators in the foreseeable

furtherance of the criminal scheme, United States v. Pinkerton, 340 U.S. 640 (1946).

For several federal crimes, instead of the general five-year penalty for

conspiracy, section 811 of the USA PATRIOT Act used the maximum penalty for the

underlying offense as the maximum penalty for conspiracy to commit the underlying

offense, 115 Stat. 381-82 (2001). House bill suggested that the same should be done

with conspiracies to violate 18 U.S.C. 33 (destruction of motor vehicles) and 18

U.S.C. 1366 (damage an energy facility), and the conferees agree, proposed 18

U.S.C. 33, 1366.

Section 409. Laundering the Proceeds Foreign Terrorist Training.

Federal law prohibits laundering the proceeds of various predicate offenses, 18

U.S.C. 1956; in addition to other criminal penalties, property associated with such

laundering is subject to confiscation, 18 U.S.C. 981(a)(1)(A). Receipt of military

training from a foreign terrorist organization is also a federal crime, 18 U.S.C.

2339D. Section 112 of the Conference bill makes 18 U.S.C. 2339D a federal crime

of terrorism under 18 U.S.C. 2332b(g)(5)(B). Federal crimes of terrorism are RICO

predicate offenses by definition, 18 U.S.C. 1961(1)(G). RICO predicate offenses are

by definition money laundering predicate offenses, 18 U.S.C. 1956(c)(7)(A). Section

409 of the Conference bill makes 18 U.S.C. 2339D a money laundering predicate

offense directly, 18 U.S.C. 1956(c)(7)(D). It is not clear why the duplication was

thought necessary.

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Section 410. Uniform Procedures for Criminal Forfeitures.

The Conference bill contains an amendment to 28 U.S.C. 2461(c), for which

there is no explanation in the conference report. Nor does the amendment appear in

either the two versions of H.R. 3199 sent to conference. Nor does the amendment

appear to have been included in other legislative proposals and thus has not

heretofore been the beneficiary of examination in committee or on the floor. The

change is captioned “uniform procedures for criminal forfeitures,” but it is not

facially apparent precisely how the procedures for various criminal forfeitures are

disparate or how the amendment makes them more uniform. Part of the difficulty

flows from the fact that both the section 2461(c) and the Conference bill amendment

are somewhat cryptic. Nevertheless, it seems crafted to make a default procedure

into an exclusive procedure.

In its present form 28 U.S.C. 2461(c) states:

If a forfeiture of property is authorized in connection with a violation of an Act

of Congress, and any person is charged in an indictment or information with such

violation but no specific statutory provision is made for criminal forfeiture upon

conviction, the Government may include the forfeiture in the indictment or

information in accordance with the Federal Rules of Criminal Procedure, and

upon conviction, the court shall order the forfeiture of the property in accordance

with the procedures set forth in section 413 of the Controlled Substances Act (21

U.S.C. 853), other than subsection (d) of that section.

The Conference bill amends the section 2461(c) to read:

If a person is charged in a criminal case with a violation of an Act of Congress

for which the civil or criminal forfeiture of property is authorized, the

Government may include notice of the forfeiture in the indictment or information

pursuant to the Federal Rules of Criminal Procedure. If the defendant is

convicted of the offense giving rise to the forfeiture, the court shall order the

forfeiture of the property as part of the sentence in the criminal case pursuant to

the Federal Rules of Criminal Procedure and section 3554 of title 18, United

States Code. The procedures in section 413 of the Controlled Substances Act (21

U.S.C. 853) apply to all stages of a criminal forfeiture proceeding, except that

subsection (d) of such section applies only in cases in which the defendant is

convicted of a violation of such Act, proposed 18 U.S.C. 2461(c).

A casual reading of the section 2461(c) might suggest that it only applies in the

case of a criminal forfeiture statute which fails to indicate what procedure should be

used to accomplish confiscation. In fact, as the conference amendment states more

clearly, section 2461(c) allows for confiscation under its criminal forfeiture

procedures where civil forfeiture is authorized by statute but criminal forfeiture

otherwise is not.143 On its face, however, it does not allow the government to merge

every civil forfeiture with the criminal prosecution of the property owner. In its

143

United States v. Razmilovic, 419 F.3d 134,136 (2d Cir. 2005)(“Section 2461(c) thus

authorizes criminal forfeiture as a punishment for any act for which civil forfeiture is

authorized, and allows the government to combine criminal conviction and criminal

forfeiture as a consolidated proceeding”).

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present form, section 2461(c) is only available if there is no other criminal forfeiture

counterpart for the civil forfeiture.144 Under the Conference bill the distinction no

longer exists.

Moreover, since section 2461(c) speaks of treating civil forfeitures as criminal

forfeitures after conviction, some courts have held that pre-trial freeze orders

available in other criminal forfeiture cases may not be invoked in the case of a

section 2461(c) “gap filler.”145 It is unclear whether the conferees intended the bill

change this result as well. On one hand, the language of conviction still remains. On

the other hand, the description of the role of 21 U.S.C. 853 (which authorizes pretrial restraining orders) may signal a different result. The current language is fairly

clear, the procedures of section 853 come into play after conviction: “upon

conviction, the court shall order the forfeiture of the property in accordance with the

procedures set forth in section 413 of the Controlled Substances Act (21 U.S.C.

853),” 28 U.S.C. 2461(c). The statement in the Conference bill is less conclusive:

“The procedures in section 413 of the Controlled Substances Act (21 U.S.C. 853)

apply to all stages of a criminal forfeiture proceeding,” proposed 28 U.S.C. 2461(c).

The change in language suggests that a change in construction may have been

intended.

Critics might suggest that a more thorough consideration or at least more

complete explanation of the full ramifications of the proposal would have been

preferable.

Title V: Miscellanea

Title V of the Conference bill contains provisions added in conference and not

previously included in either House or Senate version of H.R. 3199, some of which

— like the habeas amendments in the case of state death row inmates, or the

adjustments in the role of the Office of Intelligence Policy and Review in the FISA

process, or the new Secret Service offenses with unstated constitutional foundations

— may prove controversial.

144

18 U.S.C. 2461(c)(“If a forfeiture of property is authorized in connection with a

violation of an act of Congress, ..an act. but no specific statutory provision is made for

criminal forfeiture upon conviction . . .”); United States v. Causey, 309 F.Supp.2d 917, 920

(S.D. Tex. 2004)(“Section 981 [relating to civil forfeiture] forms the basis for criminal

forfeiture through the application of 28 U.S.C. 2461(c), which allows criminal forfeiture to

be sought anytime there is a civil forfeiture provision but no corresponding criminal

forfeiture statute”); United States v. Schlesinger, 396 F.Supp.2d 267, 275 (E.D.N.Y. 2005)

(“Constructing the statute in this manner makes §2461(c) a broad ‘gap filler’ that applies

whenever civil forfeiture is permitted. In sum, when there is no provision for criminal

forfeiture, the government may use a civil forfeiture provision if it includes such allegation

in the indictment. In instances where there is a specific criminal forfeiture provision — that

specific provision and the procedures that it sets forth — and not the civil forfeiture

provision will apply”).

145

United States v. Razmilovic, 419 F.3d 134,137 (2d Cir. 2005). Note that in some civil

forfeiture cases, the government is entitled to a pre-trial freeze order, 18 U.S.C. 983(j).

CRS-48

Section 501. Justice Department Residency Requirements.

United States Attorneys and Assistant United States Attorneys must live within

the district for which they are appointed, except in the case of the District of

Columbia and the Southern and Eastern Districts of New York, 28 U.S.C. 545. The

Attorney supervises and directs litigation in which the United States has an interest,

28 U.S.C. 516-519. He enjoys the authority to marshal, move, and direct the officers,

employees, or agencies of the Department of Justice to this end, 28 U.S.C. 509, 510,

547. The Conference bill allows the Attorney General to waive the residency

requirement wi

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USA PATRIOT Improvement and Reauthorization Act of 2005 (H.R. 3199): Section-by-Section Analysis of the Conference Bill · RL33239 | Frix