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100 STAT. 3203

NOTICE TO CONGRESS OF CERTAIN TRANSFERS OF DEFENSE ARTICLES AND DEFENSE SERVICES

SEC. 602. (a) Title V of the National Security Act of 1947, relating to accountability for intelligence activities, is amended by adding at the end thereof the following: " N O T I C E TO CONGRESS OF CERTAIN TRANSFERS OF DEFENSE ARTICLES AND DEFENSE SERVICES

"SEC. 503. (a)(1) The transfer of a defense article or defense service 50 USC 415. exceeding $1,000,000 in value by an intelligence agency to a recipient outside that agency shall be considered a significant anticipated intelligence activity for the purpose of section 501 of this Act. 50 USC 413. "(2) Paragraph (1) does not apply if— "(A) the transfer is being made to a department, agency, or other entity of the United States (so long as there will not be a subsequent retransfer of the defense articles or defense services outside the United States Government in conjunction with an intelligence or intelligence-related activity); or "(B) the transfer— "(i) is being made pursuant to authorities contained in part II of the Foreign Assistance Act of 1961, the Arms 22 USC 2301. Export Control Act, title 10 of the United States Code 22 USC 2751 (including a law enacted pursuant to section 7307(b)(l) of note. that title), or the Federal Property and Administrative Services Act of 1949, and 40 USC 471 note. "(ii) is not being made in conjunction with an intelligence or intelligence-related activity. "(3) An intelligence agency may not transfer any defense articles or defense services outside the agency in conjunction with any ' intelligence or intelligence-related activity for which funds were denied by the Congress. "(h) As used in this section— "(1) the term 'intelligence agency' means any department, agency, or other entity of the United States involved in intelligence or intelligence-related activities; "(2) the terms 'defense articles' and 'defense services' mean the items on the United States Munitions List pursuant to section 38 of the Arms Export Control Act (22 CFR part 121); 22 USC 2778. "(3) the term 'transfer' means— "(A) in the case of defense articles, the transfer of possession of those articles; and "(B) in the case of defense services, the provision of those services; and "(4) the term 'value' means— .,:;.; "(A) in the case of defense articles, the greater of^ "(i) the original acquisition cost to the United States Government, plus the cost of improvements or other modifications made by or on behalf of the Government; or "(ii) the replacement cost; and "(B) in the case of defense services, the full cost to the Government of providing the services.", (b) The table of contents at the end of the first section of such Act is amended by inserting the following after the item relating to section 502: "503. Notice to Congress of certain transfers of defense articles and defense services.".

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PUBLIC LAW 99-569—OCT. 27, 1986 COVERT AGENT DISCLOSURE FEDERAL PENSION FORFEITURE

SEC. 603. Section 8312(c)(l)(C) of title 5, United States Code is amended by striking the period at the end thereof and inserting in lieu thereof "or section 601 of the National Security Act of 1947 (50 U.S.C. 421) (relating to intelligence identities).". n « TITLE VII—PROTECTION OF UNITED STATES INTERESTS FOREIGN MISSIONS ACT AMENDMENT

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SEC. 701. Section 202(a)(4) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 4302(a)(4)) is amended to read as follows: "(4) 'foreign mission' means any mission to or agency or entity in the United States which is involved in the diplomatic, consular, or other activities of, or which is substantially owned or effectively controlled by— "(A) a foreign government, or c>,,, "(B) an organization (other than an international organization, as defined in section 209(b) of this title) representing a territory or political entity which has been r»! ": granted diplomatic or other official privileges and immunities under the laws of the United States or which enggiges in some aspect of the conduct of the international affairs of such territory or political entity, including any real property of such a mission and including the personnel of such a mission,. .ir:. SOVIET MISSION AT THE UNITED NATIONS

22 USC 287 note.

SEC. 702. (a)(1) It is the policy of the Congress that the number of nationals of the Soviet Union admitted to the United States to serve as members of the Soviet mission at the United Nations headquarters shall not substantially exceed the number of United States nationals who serve as members of the United States mission at the United Nations headquarters, unless the President determines that the admission to the United States of additional Soviet nationals to serve as members of the Soviet mission at the United Nations headquarters would be in the interest of the United States. (2) Beginning six months after the date of enactment of this section, and every six months thereafter, the Secretary of State shall prepare and transmit to the Committee on Foreign Relations and the Select Committee on Intelligence of the Senate and to the Committee on Foreign Affairs and the Permanent Select Committee on Intelligence of the House of Representatives a report setting forth the number of Soviet nationals admitted during the preceding six-month period to the United States pursuant to a determination of the President under paragraph (1) and their duties with the Soviet mission at the United Nations headquarters.

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100 STAT. 3205

(3) Nothing in this subsection may be construed as including any dependent or spouse who is not a member of a mission at the United Nations headquarters in the calculation of the number of members of a mission at the United Nations headquarters. (b) It is the sense of the Congress that the Secretary of State and the Attorney General should, not later than six months after the date of enactment of this section, prepare and transmit to the Committee on Foreign Relations and the Select Committee on Intelligence of the Senate and to the Committee on Foreign Affairs and the Permanent Select Committee on Intelligence of the House of Representatives a report setting forth a plan for ensuring that the number of Soviet nationals described in paragraph (a)(1) does not exceed the limitation described in that paragraph. (c) For purposes of this section— (1) the term "members of the Soviet mission" and "members of the United States mission" are used within the meaning of the term "members of the mission", as defined by article Kb) of the Vienna Convention on Diplomatic Relations, done April 18, 1961; and (2) the term "mission at the United Nations headquarters" of a country includes all the missions of such country to the United Nations in New York City and includes missions in New York City to specialized agencies of the United Nations, as defined in article 57 of the charter of the United Nations.

New York.

REGISTRATION OF AGENTS OF CERTAIN FOREIGN GOVERNMENTS

SEC. 703. Section 951 of title 18, United States Code, is amended by adding at the end thereof the following new subsection: "(e) Notwithstanding paragraph (d)(4), any person engaged in a legal commercial transaction shall be considered to be an agent of a foreign government for purposes of this section if— "(1) such person agrees to operate within the United States subject to the direction or control of a foreign government or official; and "(2) such person— "(A) is an agent of the Soviet Union, the German Democratic Republic, Hungary, Czechoslovakia, Poland, Bulgaria, Romania, or Cuba, unless the Attorney General, after consultation with the Secretary of State, determines and so reports to the Congress that the national security or foreign policy interests of the United States require that the provisions of this section do not apply in specific circumstances to agents of such country; or

Soviet Union. German Democratic Republic. Hungary. Czechoslovakia. Poland. Bulgaria. Romania. Cuba.

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 100 STAT. 3206

18 USC 792-799, 831, 2381. 50 USC app. 2410.

PUBLIC LAW 99-569—OCT. 27, 1986

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"(B) has been convicted of, or has entered a plea of nolo contendere with respect to, any offense under section 792 through 799, 831, or 2381 of this title or under section 11 of the Export Administration Act of 1979, except that the provisions of this subsection shall not apply to a person described in this clause for a period of more than five years beginning on the date of the conviction or the date of entry of the plea of nolo contendere, as the case may be.".

Approved October 27, 1986.

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LEGISLATIVE HISTORY—H.R. 4759 (S. 2477): HOUSE REPORTS: No. 99-690, Pt. 1 (Permanent Select Comm. on Intelligence), Pt. 2 (Comm. on Post Office and Civil Service), Pt. 3 (Comm. on Armed Services), and No. 99-952 (Comm. of Conference). SENATE REPORTS: No. 99-307 accompanying S. 2477 (Select Comm. on Intelligence). CONGRESSIONAL RECORD, Vol. 132 (1986): Sept. 16, 17, considered and passed House. Sept. 24, considered and passed Senate, amended, in lieu of S. 2477. Oct. 2, House agreed to conference report. Oct. 6, Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 22 (1986): Oct. 27, Presidential statement.

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 PUBLIC LAW 99-570—OCT. 27, 1986 99th Congress
 * PublicLaw 99-570

100 STAT. 3207

• An Act

To strengthen Federal efforts to encourage foreign cooperation in eradicating illicit drug crops and in halting international drug traffic, to improve enforcement of Federal drug laws and enhance interdiction of illicit drug shipments, to provide strong Federal leadership in establishing effective drug abuse prevention and education programs, to expand Federal support for drug abuse treatment and rehabilitation efforts, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the "Anti-Drug Abuse Act of 1986". SEC. 2. ORGANIZATION OF ACT.

This Act is organized as follows: TITLE I—ANTI-DRUG ENFORCEMENT Subtitle A—Narcotics Penalties and Enforcement Act of 1986 Subtitle B—Drug Possession Penalty Act of 1986 Subtitle C—Juvenile Drug Trafficking Act of 1986 Subtitle D—Assets Forfeiture Amendments Act of 1986 Subtitle E—Controlled Substance Analogue Enforcement Act of 1986 Subtitle F—Continuing Drug Enterprise Act of 1986 Subtitle G—Controlled Substances Import and Export Act Penalties Enhancement Act of 1986 ,.,

Subtitle H—Money Laundering Control Act of 1986 Subtitle I—Armed Career Criminals Subtitle J—Authorization of Appropriations for Drug Law Enforcement Subtitle K—State and Local Narcotics Control Assistance Subtitle L—Study on the Use of Existing Federal Buildings as Prisons Subtitle M—Narcotics Traffickers Deportation Act

Subtitle N—Freedom of Information Act Subtitle O—Prohibition on the Interstate Sale and Transportation of Drug Paraphernalia Subtitle P—Manufacturing Operations Subtitle Q—Controlled Substances Technical Amendments Subtitle R—FVecursor and Essential Chemical Review Subtitle S—White House Conference for a Drug Free America Subtitle T—Common Carrier Operation Under the Influence of Alcohol or Drugs Subtitle U—Federal Drug Law Enforcement Agent Protection Act of 1986

•Note: This is a subsequently typeset print of the hand enrollment which was signed by the President on October 27, 1986.

Oct. 27, 1986 [H.R. 5484]

Anti-Drug Abuse

Art of 1986 21 USC 80l' note.

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 100 STAT. 3207-1

PUBLIC LAW 99-570—OCT. 27, 1986 TITLE II—INTERNATIONAL NARCOTICS CONTROL

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TITLE III—INTERDICTION Subtitle A—Department of Defense Drug Interdiction Assistance r,

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Subtitle B—Customs Enforcement

Subtitle C—Maritime Drug Law Enforcement Prosecution Improvements Act of 1986 '-'•

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Subtitle D—Coast Guard

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Subtitle E—United States Bahamas Drug Interdiction Task Force Subtitle F—Command, Control, Communications, and Intelligence Centers ^

Subtitle G—Transportation Safety Subtitle H—Department of Justice Funds for Drug Interdiction Operation in Hawaii Subtitle I—Federal Communications Commission

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TITLE IV—DEMAND REDUCTION

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Subtitle A—Treatment and Rehabilitation Subtitle B—Drug-Free Schools and Communities Act of 1986 Subtitle C—Indians and Alaska Natives

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Subtitle D—Miscellaneous Provisions TITLE V—UNITED STATES INSULAR AREAS AND NATIONAL PARKS Subtitle A—Programs in United States Insular Areas Subtitle B—National Park Service Program TITLE VI—FEDERAL EMPLOYEE SUBSTANCE ABUSE EDUCATION AND TREATMENT TITLE VII—NATIONAL ANTIDRUG REORGANIZATION AND COORDINATION TITLE VIII—PRESIDENT'S MEDIA COMMISSION ON ALCOHOL AND DRUG ABUSE PREVENTION TITLE IX—DENIAL OF TRADE BENEFITS TO UNCOOPERATIVE MAJOR e.5 DRUG PRODUCING OR DRUG-TRANSIT COUNTRIES TITLE X—BALLISTIC KNIFE PROHIBITION TITLE XI—HOMELESS ELIGIBILITY CLARIFICATION ACT -iii; ii

Subtitle A—Emergency Food for the Homeless

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Subtitle B—Job Training for the Homeless Subtitle C—Entitlements Eligibility TITLE XII—COMMERCIAL MOTOR VEHICLE SAFETY ACT OF 1986 TITLE XIII—CYANIDE WRONGFUL USE TITLE XIV—SENATE POLICY CONCERNING FUNDING •

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TITLE XV—NATIONAL FOREST SYSTEM DRUG CONTROL 21 USC 801 note.

SEC. 3. COMPLIANCE WITH BUDGET ACT.

Notwithstanding any other provision of this Act, any spending authority and any credit authority provided under this Act shall be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts. For purposes of this Act, the

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100 STAT. 3207-2

term "spending authority" has the meaning provided in section 401(c)(2) of the Congressional Budget Act of 1974 and the term 2 USC 651. "credit authority" has the meaning provided in section 3(10) of the Congresssional Budget Act of 1974. 2 USC 622. TITLE I—ANTI-DRUG ENFORCEMENT Subtitle A—Narcotics Penalties and Enforcement Act of 1986

Narcotics Penalties and

SEC. 1001. SHORT TITLE.

^^^^'"^^^ A'^* of 1986. This subtitle may be cited as the "Narcotics Penalties and 21 USC 801 note. Enforcement Act of 1986". SEC. 1002. CONTROLLED SUBSTANCES ACT PENALTIES. Section 401(b)(l) of the Controlled Substances Act (21 U.S.C. 841(b)(l)) is amended— (1) by redesignating subparagraph (C) as subparagraph (D); and (2) by striking out subparagraphs (A) and (B) and inserting the following in lieu thereof: "(I)(A) In the case of a violation of subsection (a) of this section involving— "(i) 1 kilogram or more of a mixture or substance containing a detectable amount of heroin; "(ii) 5 kilograms or more of a mixture or substance containing a detectable amount of— "(I) coca leaves, except coca leaves and extracts of coca leaves from which cocaine, ecgonine, and derivatives of J:>i> ecgonine or their salts have been removed; to "(II) cocaine, its salts, optical and geometric isomers, and salts of isomers; iMii "(III) ecgonine, its derivatives, their salts, isomers, and salts of isomers; or j.5 3 "(IV) any compound, mixture, or preparation which contains any quantity of any of the substance referred to in subclauses (I) through (III);"; "(iii) 50 grams or more of a mixture or substance described in clause (ii) which contains cocaine base; "(iv) 100 grams or more of phencyclidine (PCP) or 1 kilogram or more of a mixture or substance containing a detectable amount of phencyclidine (PCP); "(v) 10 grams or more of a mixture or substance containing a detectable amount of lysergic acid diethylamide (LSD); "(vi) 400 grams or more of a mixture or substance containing a detectable amount of N-phenyl-N-[l-(2-phenylethyl>4" piperidinyl] propanamide or 100 grams or more of a mixture or substsmce containing a detectable amount of any analogue of N-phenyl-N-[l-(2-phenylethyl)-4-piperidinyl] propanamide; or i " (vii) 1000 kilograms or more of a mixture or substance containing a detectable amount of marihuana; such person shall be sentenced to a term of imprisonment which may not be less than 10 years or more than life and if death or serious bodily injury resulte from the use of such substance shall be not less than 20 years or more than life, a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $4,000,000 if the defendant is an individual or $10,000,000 if the defendant is other than an individual, or

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 100 STAT. 3207-3

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PUBLIC LAW 99-570—OCT. 27, 1986

both. If any person commits such a violation after one or more prior convictions for an offense punishable under this paragraph, or for a felony under any other provision of this title or title III or other law of a State, the United States, or a foreign country relating to narcotic drugs, marihuana, or depressant or stimulant substances, have become final, such person shall be sentenced to a term of imprisonment which may not be less than 20 years and not more than life imprisonment and if death or serious bodily injury results from the use of such substance shall be sentenced to life imprisonment, a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18, United States Code, or $8,000,000 if the defendant is an individual or $20,000,000 if the defendant is other than an individual, or both. Any sentence under this subparagraph shall, in the absence of such a prior conviction, impose a term of supervised release of at least 5 years in addition to such term of imprisonment and shall, if there was such a prior conviction, impose a term of supervised release of at least 10 years in addition to such term of imprisonment. Notwithstanding any other provision of law, the court shall not place on probation or suspend the sentence of any person sentenced under this subparagraph. No person sentenced under this subparagraph shall be eligible for parole during the term of imprisonment imposed therein. "(B) In the case of a violation of subsection (a) of this section involving— "(i) 100 grams or more of a mixture or substance containing a detectable amount of heroin; "(ii) 500 grams or more of a mixture or substance containing a detectable amount of— "(I) coca leaves, except coca leaves and extracts of coca leaves from which cocaine, ecgonine, and derivatives of ecgonine or their salts have been removed; i "(II) cocaine, its salts, optical and geometric isomers, and salts of isomers; A "(III) ecgonine, its derivatives, their salts, isomers, and f salts of isomers; or "(IV) any compound, mixture, or preparation which con,, Sj^>Hkt tains any quantity of any of the substance referred to in subclauses (I) through (III);"; iji "(iii) 5 grams or more of a mixture or substance described in i;K clause (ii) which contains cocaine base; "(iv) 10 grams or more of phencyclidine (PGP) or 100 grams or more of a mixture or substance containing a detectable amount of phencyclidine (PCP); (v) 1 gram or more of a mixture or substance containing a detectable amount of lysergic acid diethylamide (LSD); "(vi) 40 grams or more of a mixture or substance containing a detectable amount of N-phenyl-N-[l-(2-phenylethyl)-4piperidinyl] propanamide or 10 grams or more of a mixture or //^' substance containing a detectable amount of any analogue of N-phenyl-N-[l-(2-phenylethyl)-4-piperidinyl] propanamide; or "(vii) 100 kilograms or more of a mixture or substance containing a detectable amount of marihuana; such person shall be sentenced to a term of imprisonment which may not be less than 5 years and not more than 40 years and if death or serious bodily injury results from the use of such substcince shall be not less than 20 years or more than life, a fine not to exceed the greater of that authorized in accordance with the provisions of

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100 STAT. 3207-4

title 18, United States Code, or $2,000,000 if the defendant is an individual or $5,000,000 if the defendant is other than an individual, or both. If any person commits such a violation after one or more prior convictions for an offense punishable under this paragraph, or for a felony under any other provision of this title or title III or 21 USC 951. other law of a State, the United States, or a foreign country relating to narcotic drugs, marihuana, or depressant or stimulant substances, have become final, such person shall be sentenced to a term of imprisonment which may not be less than 10 years and not more than life imprisonment and if death or serious bodily injury results from the use of such substance shall be sentenced to life imprisonment, a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18, United States Code, or $4,000,000 if the defendant is an individual or $10,000,000 if the defendant is other than an individual, or both. Any sentence imposed under this subparagraph shall, in the absence of such a prior conviction, include a term of supervised release of at least 4 years in addition to such term of imprisonment and shall, if there was such a prior conviction, include a term of supervised release of at least 8 years in addition to such term of imprisonment. Notwithstanding any other provision of law, the court shall not place on probation or suspend the sentence of any person sentenced under this subparagraph. No person sentenced under this subparagraph shall be eligible for parole during the term of imprisonment imposed therein. "(C) In the case of a controlled substance in schedule I or II except as provided in subparagraphs (A), (B), and (D), such person shall be sentenced to a term of imprisonment of not more than 20 years and if death or serious bodily injury results from the use of such substance shall be sentenced to a term of imprisonment of not less than twenty years or more than life, a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $1,000,000 if the defendant is an individual or $5,000,000 if the defendant is other than an individual, or both. If any person commits such a violation after one or more prior convictions for an offense punishable under this paragraph, or for a felony under any other provision of this title or title III or other law of a State, the United States or a foreign country relating to narcotic drugs, marihuana, or depressant or stimulant substances, have become final, such person shall be sentenced to a term of imprisonment of not more than 30 years and if death or serious bodily injury results from the use of such substance shall be sentenced to life imprisonment, a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18, United States Code, or $2,000,000 if the defendant is an individual or $10,000,000 if the defendant is other than an individual, or both. Any sentence imposing a term of imprisonment under this paragraph shall, in the absence of such a prior conviction, impose a term of supervised release of at least 3 years in addition to such term of imprisonment and shall, if there was such a prior conviction, impose a term of supervised release of at least 6 years in addition to such term of imprisonment. Notwithstanding any other provision of law, the court shall not place on probation or suspend the sentence of any person sentenced under the provisions of this subparagraph which provide for a mandatory term of imprisonment if death or serious bodily injury results, nor shall a person so sentenced be eligible for parole during the term of such a sentence.".

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 100 STAT. 3207-5

PUBLIC LAW 99-570—OCT. 27, 1986

SEC. 1003. OTHER AMENDMENTS TO THE CONTROLLED SUBSTANCES ACT.

(a) Section 401 of the Controlled Substances Act (21 U.S.C. 841) is further amended as follows: (1) In subsection (b), paragraph (I)(D), as redesignated, is amended by— (A) striking out "a fine of not more than $50,000" and inserting in lieu thereof "a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $250,000 if the defendant is an individual or $1,000,000 if the defendant is other than an individual"; (B) striking out "a fine of not more than $100,000" and inserting in lieu thereof "a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18, United States Code, or $500,000 if the defendant is an individual or $2,000,000 if the defendant is other than an individual"; and i^ (C) inserting "except in the case of 100 or more mari^ huana plants regardless of weight," after "marihuana," the '^ first place it appears. (2) In subsection (b), paragraph (2) is amended by striking out "a fine of not more than $25,000" and inserting in lieu thereof "a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $250,000 if the defendant is an individual or $1,000,000 if the \ defendant is other than an individual", and by striking out "a fine of not more than $50,000" and inserting in lieu thereof "a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18, United States Code, or $500,000 if the defendant is an individual or $2,000,000 if the defendant is other than an individual". (3) In subsection (b), paragraph (3) is amended by striking out "a fine of not more than $10,000" and inserting in lieu thereof "a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $100,000 if the defendant is an individual or $250,000 if the defendant is other than an individual", and by striking out "a fine of not more than $20,000" and inserting in lieu thereof "a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18, United States Code, or $200,000 if the defendant is an individual or $500,000 if the defendant is other than an individual". (4) In subsection (b), paragraph (4) is amended by striking out "1(C)" and inserting "1(D)" in lieu thereof. (5) In subsection (b), paragraph (5) is amended to read as follows: "(5) Any person who violates subsection (a) of this section by cultivating a controlled substance on Federal property shall be imprisoned as provided in this subsection and shall be fiuaed any amount not to exceed— "(A) the amount authorized in accordance with this section; "(B) the amount authorized in accordsmce with the provisions of title 18, United States Code; "(C) $500,000 if the defendant is an individual; or "(D) $1,000,000 if the defendant is other than an individual; or both.".

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100 STAT. 3207-6

(6) Subsection (d) is amended by striking out "a fine of not more than $15,000" and inserting in lieu thereof "a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $250,000 if the defendant is an individual or $1,000,000 if the defendant is other than an individual", (b) Section 102 of the Controlled Substances Act (21 U.S.C. 802) is amended— (1) by inserting the following new paragraph after paragraph (24): "(25) The term 'serious bodily injury' means bodily injury which involves— "(A) a substantial risk of death; "(B) protracted and obvious disfigurement; or 4 * 1 "(C) protracted loss or impairment of the function of a bodily member, organ, or mental faculty."; and (2) by renumbering the following paragraphs accordingly. SEC. 1004. ELIMINATION OF SPECIAL PAROLE TERMS. (a) The Controlled Substances Act and the Controlled Substances Import and Export Act are amended by striking out "special parole term" each place it appears and inserting "term of supervised release" in lieu thereof. (b) The amendments made by this section shall take effect on the date of the taking effect of section 3583 of title 18, United States Code. SEC. 1005. AMENDMENT TO THE COMPREHENSIVE CRIME CONTROL ACT OF 1984. (a) Subsection (a) of section 224 of the Comprehensive Crime Control Act of 1984 is amended— (1) by inserting "and" after the semicolon in paragraph (4); and (2) by striking out paragraphs (1), (2), (3), and (5) and redesignating the other paragraphs accordingly. (b) Section 224 of the (Domprehensive Crime Control Act of 1984 is amended— (1) by striking out subsection (b); and (2) by redesignating subsection (c) as subsection 0)). (c) Section 225 of the Comprehensive Crime Control Act of 1984 is amended to read as follows: "SEC. 225. Section 1515 of the Controlled Substances Import and Export Act (21 U.S.C. 960) is amended by repealing subsection (c).". SEC. 1006. MISCELLANEOUS TECHNICAL AMENDMENTS. (a)(1) Subsection (a) of section 3583 of title 18, United States Code, is amended by inserting ", except that the court shall include as a part of the sentence a requirement that the defendant be placed on a term of supervised release if such a term is required by statute" after "imprisonment" the second place it appears. (2) Subsection O> of section 3583 of title 18, United States (Dode, is t) amended by striking out "The" and inserting in lieu thereof "Except as otherwise provided, the". (3) Subsection (e) of section 3583 of title 18, United States (Dode, is amended— (A) so that the catchline reads as follows: "Modification of conditions or revocation.";

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21 USC 801 note. 21 USC 951 note. 21 USC 841 note.

21 USC 841.

21 USC 845, 848. 21 USC 960, 962.

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PUBLIC LAW 99-570—OCT. 27, 1986

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18 USC app. 18 USC 3583 note.

(B) in paragraph (2) by striking out "or" after the semicolon; (C) in paragraph (3) by striking out "title." and inserting "title; or" in lieu thereof; and (D) by inserting the following new paragraph after paragraph (3): "(4) revoke a term of supervised release, and require the person to serve in prison all or part of the term of supervised release without credit for time previously served on '^; postrelease supervision, if it finds by a preponderance of the evidence that the person violated a condition of supervised release, pursuant to the provisions of the Federal Rules of Criminal Procedure that are applicable to probation revocation and to the provisions of applicable policy statements issued by the Sentencing Commission.". (4) The amendments made by this subsection shall take effect on the date of the taking effect of section 3583 of title 18, United States Code. (b) Paragraph (3) of section 994(a) of title 28, United States Code, is amended by inserting "and revocation of supervised release" after "supervised release". (c) Section 511 of title II of the Comprehensive Drug Abuse Prevention Act of 1978 (21 U.S.C. 881) is amended— (1) in subsection (f) by inserting "or 11" after "I" each place it appears; (2) by redesignating subsection (f) as subsection (f)(1); and (3) by inserting the following new paragraph after subsection (f)(1) as so redesignated: "(2) The Attorney General may direct the destruction of all controlled substances in schedule I or II seized for violation of this title under such circumstances as the Attorney General may deem necessary.". SEC. 1007. AMENDMENT TO TITLE 18 OF THE UNITED STATES CODE.
 * i

(a) Section 3553 of title 18, United States Code, is amended by adding the following at the end thereof: "(e) LIMITED AUTHORITY TO IMPOSE A SENTENCE BELOW A STATU-

Effective date. 18 USC 3553 note.

TORY MINIMUM.—Upon motion of the Government, the court shall have the authority to impose a sentence below a level established by statute as minimum sentence so as to reflect a defendant's substantial assistance in the investigation or prosecution of another person who has committed an offense. Such sentence shall be imposed in accordance with the guidelines and policy statements issued by the Sentencing Commission pursuant to section 994 of title 28, United States Code.". (b) The amendment made by this section shall take effect on the date of the taking effect of section 3553 of title 18, United States Code. SEC. 1008. AMENDMENT TO TITLE 28 OF THE UNITED STATES CODE.

Section 994 of title 28 of the United States Code is amended by— (1) inserting the following after subsection (m): "(n) The Commission shall assure that the guidelines reflect the general appropriateness of imposing a lower sentence than would otherwise be imposed, including a sentence that is lower than that established by statute as minimum sentence, to take into account a defendant's substantial assistance in the investigation or prosecution of another person who has committed an offense."; and

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(2). redesignating subsections (n), (o), (p), (q), (r), (s), (t), (u), (v), and (w) as subsections (o), (p), (q), (r), (s), (t), (u), (v), (w), and (x), respectively. SEC. 1009. AMENDMENT TO PROCEDURE.

THE

FEDERAL

RULES

OF

CRIMINAL

(a) Rule 35(b) of the Federal Rules of Criminal Procedure is iSUSC app. amended by striking out "to the extent" and all that follows through the end and inserting in lieu thereof the following: "in accordance with the guidelines and policy statements issued by the Sentencing Commission pursuant to section 994 of title 28, United States Code. The court's authority to lower a sentence under this subdivision includes the authority to lower such sentence to a level below that established by statute as a minimum sentence. (b) The amendment made by this section shall take effect on the Effective date, date of the taking effect of rule 350)) of the Federal Rules of ISUSC app. Criminal Procedure, as amended by section 215(b) of the Comprehensive Crime Control Act of 1984. Subtitle B—Drug Possession Penalty Act of 1986 SEC. 105L SHORT TITLE.

This subtitle may be cited as the "Drug Possession Penalty Act of 1986".

Drug Possession Penalty Act of 1986. 21 USC 801 note.

SEC. 1052. PENALTY FOR SIMPLE POSSESSION.

Section 404 of the Controlled Substances Act (21 U.S.C. 844) is amended to read as follows: PENALTY FOR SIMPLE POSSESSION

"SEC. 404. (a) It shall be unlawful for any person knowingly or intentionally to possess a controlled substance unless such substance was obtained directly, or pursuant to a valid prescription or order, from a practitioner, while acting in the course of his professional practice, or except as otherwise authorized by this title or title III. 21 USC 951. Any person who violates this subsection may be sentenced to a term of imprisonment of not more than 1 year, and shall be fined a minimum of $1,000 but not more than $5,000, or both, except that if he commits such offense after a prior conviction under this title or title III, or a prior conviction for any drug or narcotic offense chargeable under the law of any State, has become final, he shall be sentenced to a term of imprisonment for not less than 15 days but not more than 2 years, and shall be fined a minimum of $2,500 but not more than $10,000, except, further, that if he commits such offense after two or more prior convictions under this title or title III, or two or more prior convictions for any drug or narcotic offense chargeable under the law of any State, or a combination of two or more such offenses have become final, he shall be sentenced to a term of imprisonment for not less than 90 days but not more than 3 years, and shall be fined a minimum of $5,000 but not more than $25,000. The imposition or execution of a minimum sentence required to be imposed under this subsection shall not be suspended or deferred. Further, upon conviction, a person who violates this subsection shall be fined the reasonable costs of the investigation and prosecution of the offense, including the costs of prosecution of an offense as defined in sections 1918 and 1920 of title 28, United

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o<p;j

' /. -

 * r.t' •

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States Code, except that this sentence shall not apply and a fine under this section need not be imposed if the court determines under the provision of title 18 that the defendant lacks the ability to pay. "(b)(1) If any person who has not previously been convicted of violating subsection (a) of this section, any other provision of this subchapter or subchapter II of this chapter, or any other law of the United States relating to narcotic drugs, marihuana, or depresssint or stimulant substances, is found guilty of a violation of subsection (a) of this section after trial or upon a plea of guilty, the court may, without entering a judgment of guilty and with the consent of such person, defer further proceedings and place him on probation upon such reasonable conditions as it may require and for such period, not to exceed one year, as the court may prescribe. Upon violation of a condition of the probation, the court may enter an adjudication of guilt and proceed as otherwise provided. The court may, in its discretion, dismiss the proceedings against such person and discharge him from probation before the expiration of the maximum period prescribed for such person's probation. If during the period of his probation such person does not violate any of the conditions of the probation, then upon expiration of such period the court shall discharge such person and dismiss the proceedings against him. Discharge and dismissal under this subsection shall be without court adjudication of guilt, but a nonpublic record thereof shall be retained by the Department of Justice solely for the purpose of use by the courts in determining whether or not, in subsequent proceedings, such person qualifies under this subsection. Such discharge or dismissal shall not be deemed a conviction for purposes of disqualifications or disabilities imposed by law upon conviction of a crime (including the penalties prescribed under this part for second or subsequent convictions) or for any other purpose. Discharge and dismissal under this section may occur only once with respect to any person. "(2) Upon the discharge of such person and dismissal of the proceedings against him under paragraph (1) of this subsection, such person, if he was not over twenty-one years of age at the time of the offense, may apply to the court for an order to expunge from all official records (other than the nonpublic records to be retained by the Department of Justice under paragraph (1)) all recordation relating to his arrest, indictment or information, tried, finding of guilty, and dismissal and discharge pursuant to this section. If the court determines, after hearing, that such person was dismissed and the proceedings against him discharged and that he was not over twenty-one years of age at the time of the offense, it shall enter such order. The effect of such order shall be to restore such person, in the contemplation of the law, to the status he occupied before such arrest or indictment or information. No person as to whom such order has been entered shall be held thereafter under any provision of any law to be guilty of perjury or otherwise giving a false statement by reason of his failures to recite or acknowledge such arrest, or indictment or information, or trial in response to any inquiry made of him for any purpose. "(c) As used in this section, the term 'drug or narcotic offense' means any offense which proscribes the possession, distribution, manufacture, cultivation, sale, transfer, or the attempt or conspiracy to possess, distribute, manufacture, cultivate, sell or transfer

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any substance the possession of which is prohibited under this title.". Subtitle C—Juvenile Drug Trafficking Act of 1986 SEC. 1101. SHORT TITLE.

This subtitle may be cited as the "Juvenile Drug Trafficking Act of 1986".

Juvenile Drug Trafficking Act of 1986. 21 USC 801 note.

SEC. 1102. OFFENSE.

Part D of the Controlled Substances Act is amended by adding after section 405A a new section as follows:

Post, p. 3207-11.

EMPLOYMENT OR USE OF PERSONS UNDER 18 YEARS OF AGE IN DRUG OPERATIONS

"SEC. 405B. (a) It shall be unlawful for any person at legist eighteen years of age to knowingly and intentionally— "(1) employ, hire, use, persuade, induce, entice, or coerce, a person under eighteen years of age to violate any provision of this title or title III; or "(2) employ, hire, use, persuade, induce, entice, or coerce, a person under eighteen years of age to assist in avoiding detection or apprehension for any offense of this title or title III by any Federal, State, or local law enforcement official. "(b) Any person who violates subsection (a) is punishable by a term of imprisonment up to twice that otherwise authorized, or up to twice the fine otherwise authorized, or both, and at least twice any term of supervised release otherwise authorized for a first offense. Except to the extent a greater minimum sentence is otherwise provided, a term of imprisonment under this subsection shall not be less than one year. "(c) Any person who violates subsection (a) after a prior conviction or convictions under subsection (a) of this section have become final, is punishable by a term of imprisonment up to three times that otherwise authorized, or up to three times the fine otherwise authorized, or both, and at least three times any term of supervised release otherwise authorized for a first offense. Except to the extent a greater minimum sentence is otherwise provided, a term of imprisonment under this subsection shall not be less than one year. "(d) Any person who violates section 405B(a)(1) or (2) "(1) by knowingly providing or distributing a controlled substance or a controlled substance analogue to any person under eighteen years of age; or "(2) if the person employed, hired, or used is fourteen years of age or younger, shall be subject to a term of imprisonment for not more than five years or a fine of not more than $50,000, or both, in addition to any other punishment authorized by this section. "(e) In any case of any sentence imposed under this section, imposition or execution of such sentence shall not be suspended and probation shall not be granted. An individual convicted under this section of an offense for which a mandatory minimum term of imprisonment is applicable shall not be eligible for parole under section 4202 of title 18, United States (Dode, until the individual has served the mandatory term of imprisonment required by section 401(b) as enhanced by this section.

21 USC 845b.

21 USC 951.

Penalties.

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"(f) Except as authorized by this title, it shall be unlawful for any person to knowingly or intentionally provide or distribute any controlled substance to a pregnant individual in violation of any provision of this title. Any person who violates this subsection shall be subject to the provisions of subsections (b), (c), and (e).". SEC. 1103. TECHNICAL AMENDMENTS.

Infra; ante, p. 3207-10.

(a) Section 401(b) of the Controlled Substances Act (21 U.S.C. 841(b)) is amended by striking out "or 405A" and inserting in lieu thereof ", 405A, or 405B". (b) Section 401(c) of the Controlled Substances Act (21 U.S.C. 841(c)) is amended by striking out "405A" each place it appears and inserting in lieu thereof ", 405A, or 405B". SEC. 1104. MANUFACTURING A CONTROLLED SUBSTANCE WITHIN 1,000 FEET OF A COLLEGE.

'^' • - •

,

Supra.

(a) Section 405A of the Controlled Substances Act (21 U.S.C. 845a) is amended by inserting "or manufacturing" after "distributing" wherever it appears and by striking out "a public or private elementary or secondary school" wherever it appears and inserting in lieu thereof "a public or private elementary, vocational, or secondary school or a public or private college, junior college, or university". (b) Section 405A(a) of the Controlled Substances Act (21 U.S.C. 845a(a)) is amended by striking out "involving the same controlled (c) Section 405A(b) of the Controlled Substances Act (21 U.S.C. 845a(b)) is amended by striking out "(1) by" and all that follows through the end and inserting the following in lieu thereof: "(1) by the greater of (A) a term of imprisonment of not less than three years and not more than life imprisonment or (B) a term of imprisonment of up to three times that authorized by section 401(b) of this title for a first offense, or a fine up to three times that authorized by section 401(b) of this title for a first offense, or both, and (2) at least three times any term of supervised release authorized by section 401(b) of this title for a first offense.". SEC. 1105. IMPRISONMENTS.

(a) Section 405(a) of the Controlled Substances Act (21 U.S.C. 845(a)) is amended by adding the following at the end thereof: "Except to the extent a greater minimum sentence is otherwise provided by section 401(b), a term of imprisonment under this subsection shall be not less than one year.". Qo) Section 405(b) of the Controlled Substances Act (21 U.S.C. 845(b)) is amended by adding the following at the end thereof: "Except to the extent a greater minimum sentence is otherwise provided by section 401(b), a term of imprisonment under this subsection shall be not less than one year. The mandatory minimum sentencing provisions of this paragraph shall not apply to offenses involving 5 grams or less of marihuana.". (c) Section 405A(a) of the Controlled Substances Act (21 U.S.C. 845a(a)) is amended by adding the following at the end thereof: "Except to the extent a greater minimum sentence is otherwise provided by section 401(b), a term of imprisonment under this subsection shall be not less than one year. The mandatory minimum

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sentencing provisions of this paragraph shall not apply to offenses involving 5 grams or less of marihuana.". Subtitle D—Assets Forfeiture Amendments Act of 1986 SEC. 1151. SHORT TITLE.

This subtitle may be cited as the "Department of Justice Assets Forfeiture Fund Amendments Act of 1986",

Department of Justice Assets Forfeiture Fund Amendments Act of 1986. 28 USC 1 note.

SEC. 1152. ASSET FORFEITURE FUNDS.

(a)(1) DEPARTMENT OF JUSTICE ASSETS FORFEITURE FUND.—Subsection (c) of section 524 of title 28, United States Code, is amended— (2) by inserting at the end of subparagraph (A) of paragraph (1) the following: "such payments may also include those, made Contracts. pursuant to regulations promulgated by the Attorney General, that are necessary and direct program-related expenses for the ' purchase or lease of automatic data processing equipment (not less than 90 percent of which use will be program related), training, printing, contracting for services directly related to the processing of and accounting for forfeitures, and the storage, protection, and destruction of controlled substances;"; (3) by inserting after subparagraph (A) of paragraph (1) the following new subparagraph and renumbering the subsequent subparagraphs appropriately; "(B) the payment of awards for information or assistance directly relating to violations of the criminal drug laws of the United States;"; (4) by amending newly designated subparagraph (F) of paragraph (1) to read as follows: "(F) for equipping for drug law enforcement functions Transportation, any government-owned or lesised vessels, vehicles, and airi,j craft available for official use by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Immigration and Naturalization Service, or the United States Marshals Service; and"; (5) by striking out in paragraph (4) "remaining after payment of expenses for forfeiture and sale authorized by law" and inserting in lieu thereof ", except all proceeds of forfeitures available for use by the Secretary of the Treasury or the Secretary of the Interior pursuant to section 11(d)) of the Endangered Species Act (16 U.S.C 1540(d)) or section 6(d) of the Lacey Act Amendments of 1981 (16 U.S.C. 3375(d))"; and (6) by striking out paragraph (8) and renumbering paragraph (9) as paragraph (8). (b) CUSTOMS FORFEITURE FUND.—

(1) Section 613a of the Tariff Act of 1930 (19 U.S.C. 1613a) as added by Public Law 98-473, is amended— 98 Stat. 1837. (B) by amending paragraph (3) of subsection (a) to read as follows: "(3) for equipping for law enforcement functions any govern- Transportation, ment-owned or leased vessels, vehicles, and aircraft available for official use by the United States Customs Service; and"; and (C) by striking out subsection (h). (2) Section 613a of the Tariff Act of 1930 (19 U.S.C. 1613b) as added by Public Law 98-573, is repealed. 19 USC 1654 note.

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SEC. 1153. SUBSTITUTE ASSETS.

 * r

21 USC 853.

' • Controlled Substance Analogue Enforcement Act of 1986. 21 USC 801 note.

. - . - -.

.„.,,,

(a) Section 1963 of title 18 is amended by adding at the end thereof a new subsection, as follows: "(n) If any of the property described in subsection (a), as a result of any act of omission of the defendant— "(1) cannot be located upon the exercise of due diligence; "(2) has been transferred or sold to, or deposited with, a third party; (3) has been placed beyond the jurisdiction of the court; "(4) has been substantially diminished in value; or "(5) has been commingled with other property which cannot be divided without difficulty; the court shall order the forfeiture of any other property of the defendant up to the value of any property described in paragraphs (1) through (5).". (b) Section 413 of title II of the Comprehensive Drug Abuse Prevention and Control Act of 1975 is amended— (1) by redesignating subsection "(p)" as subsection "(q)"; and (2) by adding a new subsection (p) as follows: "(p) If any of the property described in subsection (a), as a result of any act or omission of the defendant— "(1) cannot be located upon the exercise of due diligence; "(2) has been transferred or sold to, or deposited with, a third party; "(3) has been placed beyond the jurisdiction of the court; "(4) has been substantially diminished in value; or "(5) has been commingled with other property which cannot be divided without difficulty; the court shall order the forfeiture of any other property of the defendant up to the value of any property described in paragraphs (1) through (5).". Subtitle E—Controlled Substance Analogue Enforcement Act of 1986 SEC. 1201. SHORT TITLE.

This subtitle may be cited as the "Controlled Substance Analogue Enforcement Act of 1986". SEC. 1202. TREATMENT OF CONTROLLED SUBSTANCE ANALOGUES.

Part B of the Controlled Substances Act is amended by adding at the end the following new section: dvC

21 USC 813. 21 USC 951.

' ''

^'^

c^'?

TREATMENT OF CONTROLLED SUBSTANCE ANALOGUES

"SEC. 203. A controlled substance analogue shall, to the extent intended for human consumption, be treated, for the purposes of this title and title III as a controlled substance in schedule I.". SEC. 1203. DEFINITION. Section 102 of the Controlled Substances Act (21 U.S.C. 802) is amended by adding at the end thereof the following: "(32)(A) Except as provided in subparagraph (B), the term 'controlled substance analogue' means a substance— "(i) the chemical structure of which is substantially simi*• lar to the chemical structure of a controlled substance in schedule I or II;

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itm'--K

•'-

"(ii) which has a stimulant, depressant, or hallucmogenic effect on the central nervous system that is substantially similar to or greater than the stimulent, depressant, or hallucinogenic effect on the central nervous system of a controlled substance in schedule I or II; or "(iii) with respect to a particular person, which such person represents or intends to have a stimulent, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of a controlled substance in schedule I or II. "(B) Such term does not include— "(i) a controlled substance; "(ii) any substance for which there is an approved new drug application; "(iii) with respect to a particular person any substance, if an exemption is in effect for investigational use, for that person, under section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355) to the extent conduct with respect to such substance is pursuant to such exemption; or "(iv) any substance to the extent not intended for human consumption before such an exemption takes effect with respect to that substance.".

>• »

'•-*» t / -'

SEC. 1204. CLERICAL AMENDMENT.

The table of contents of the Comprehensive Drug Abuse Prevention and Control Act of 1970 is amended by inserting after the item relating to section 202 the following new item: "Sec. 203. Treatment of controlled substance analogues.".

Subtitle F—Continuing Drug Enterprise Act of 1986 ' '' SEC. 1251. SHORT TITLE.

This subtitle may be cited as the "Continuing Drug Enterprises Act of 1986". SEC. 1252. INCREASED PENALTIES.

Section 408(a) of the Controlled Substances Act (21 U.S.C. 848(a)) is amended— (1) by striking out "to a fine of not more than $100,000," and " " inserting in lieu thereof "to a fine not to exceed the greater of ., that authorized in accordance with the provisions of title 18, t x United States Code, or $2,000,000 if the defendant is an individual or $5,000,000 if the defendant is other than an individual,"; and (2) by striking out "to a fine of not more than $200,000," and ,l ^ inserting in lieu thereof "to a fine not to exceed the greater of " twice the amount authorized in accordance with the provisions of title 18, United States Code, or $4,000,000 if the defendant is an individual or $10,000,000 if the defendant is other than an individual,". SEC. 1253. CONTINUING CRIMINAL ENTERPRISE ENHANCED PENALTIES.

Section 408 of the Controlled Substances Act (21 U.S.C. 848) is further amended— (1) by redesignating subsections (b) and (c) as subsections (d) and (e), respectively; and

71-194 0 - 89 - n

 * QL. 3 Part4

Continuing Drug Enterprises Act of 1?86. 21 USC 801 note.

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Controlled Substances

(2) by inserting the following new subsection after subsection ^ (a); "(h) Any person who engages in a continuing criminal enterprise shall be imprisoned for life and fined in accordance with subsection (a),if"(1) such person is the principal administrator, organizer, or leader of the enterprise or is one of several such principal administrators, organizers, or leaders; and "(2)(A) the violation referred to in subsection (d)(1) involved at least 300 times the quantity of a substance described in subsection 401(b)(l)(B) of this Act, or "(B) the enterprise, or any other enterprise in which the defendant was the principal or one of several principal administrators, organizers, or leaders, received $10 million dollars in gross receipts during any twelve-month period of its existence ) for the manufacture, importation, or distribution of a substance t i Subtitle G—Controlled Substances Import and Export Act Penalties Enhancement Act of 1986
 * ' described in section 401(b)(l)(B) of this Act."

Import and Ferities

^^^- *3®1- SHORT TITLE.

21 USC 841.

'"

Enhancement This subtitle may be cited as the "Controlled Substances Import 21^1180 801 note and Export Penalties Enhancement Act of 1986."., ^^.,.^., \,^ SEC. 1302. ENHANCED PENALTIES.

(a) Section 10100)) of the Controlled Substances Import and Export Act (21 U.S.C. 960(b)) is amended— (1) by redesignating paragraph (3) as paragraph (4); and (2) by striking out paragraphs (1) and (2) and inserting the ,,,, following in lieu thereof: (J "(1) In the case of a violation of subsection (a) of this section involving— .aioit.v..;..>.:. "(^) i kilogram or more of a mixture or substance containing ^ a detectable amount of heroin; "(B) 5 kilograms or more of a mixture or substance containing a detectable amount of— j,j (, "(i) coca leaves, except coca leaves and extracts of coca leaves from which cocaine, ecgonine, and derivatives of ecgonine or their salts have been removed; I ' (ii) cocaine, its salts, optical and geometric isomers, and salts or isomers; "(iii) ecgonine, its derivatives, their salts, isomers, and salts of isomers; or "(iv) any compound, mixture, or preparation which conQ„,. tains any quantity of any of the substances referred to in V clauses (i) through (iii); "(C) 50 grams or more of a mixture or substance described in subparagraph (B) which contains cocaine base; "(D) 100 grams or more of phencyclidine (PCP) or 1 kilogram or more of a mixture or substance containing a detectable amount of phencyclidine (PCP); "(E) 10 grams or more of a mixture or substance containing a detectable amount of lysergic acid diethylamide (LSD); "(F) 40 grams or more of a mixture or substance containing a detectable amount of N-phenyl-N-[l-(2-phenylethyl)-4piperidinyl] propanamide or 100 grams or more of a mixture or
 * .,j^„

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substance containing a detectable amount of any analogue of N-phenyl-N-[l-(2-phenylethyl)-4-piperidinyl] propanamide; or "(G) 1000 kilograms or more of a mixture or substance containing a detectable amount of marihuana; the person committing such violation shall be sentenced to a term of imprisonment of not less than 10 years and not more than life and if death or serious bodily injury results from the use of such substance shall be sentenced to a term of imprisonment of not less than 20 years and not more than life, a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $4,000,000 if the defendant is an individual or $10,000,000 if the defendant is other than an individual, or both. If any person commits such a violation after one or more prior convictions for an offense punishable under this subsection, or for a felony under any other provision of this title or title II or other law of a State, the United States, or a foreign country relating to narcotic drugs, marihuana, or depressant or stimulant substances, have become final, such person shall be sentenced to a term of imprisonment of not less than 20 years and not more than life imprisonment and if death or serious bodily injury results from the use of such substance shall be sentenced to life imprisonment, a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18, United States Code, or $8,000,000 if the defendant is an individual or $20,000,000 if the defendant is other than an individual, or both. Any sentence under this paragraph shall, in the absence of such a prior conviction, impose a term of supervised release of at least 5 years in addition to such term of imprisonment and shall, if there was such a prior conviction, impose a term of supervised release of at least 10 years in addition to such term of imprisonment. Notwithstanding any other provision of law, the court shall not place on probation or suspend the sentence of any person sentenced under this paragraph. No person sentenced under this paragraph shall be eligible for parole during the term of imprisonment imposed therein. "(2) In the case of a violation of subsection (a) of this section involving— "(A) 100 grams or more of a mixture or substance containing noi a detectable amount of heroin; "(B) 500 grams or more of a mixture or substance containing a detectable amount of— "(i) coca leaves, except coca leaves and extracts of coca leaves from which cocaine, ecgonine, and derivatives of ecgonine or their salts have been removed; "(ii) cocaine, its salts, optical and geometric isomers, and salts or isomers; "(iii) ecgonine, its derivatives, their salts, isomers, and "-'^ salts of isomers; or "(iv) any compound, mixture, or preparation which contains any quantity of any of the substances referred to in clauses (i) through (iii); "(C) 5 grams or more of a mixture or substance described in subparagraph (B) which contains cocaine base; "(D) 10 grams or more of phencyclidine (PCP) or 100 grams or more of a mixture or substance containing a detectable amount of phencyclidine (PCP); "(E) 1 gram or more of a mixture or substance containing a detectable amount of lysergic acid diethylamide (LSD);

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"(F) 40 grams or more of a mixture or substance containing a detectable amount of N-phenyl-N-[l-(2-phenylethyl)-4piperidinyl] propanamide or 10 grams or more of a mixture or substance containing a detectable amount of any analogue of " N-phenyl-N-[l-(2-phenylethyl)-4-piperidinyl] propanamide; or ^ '(G) 100 kilogreuns or more of a mixture or substance containing a detectable amount of marihuana; the person committing such violation shall be sentenced to a term of imprisonment of not less than 5 years and not more than 40 years and if death or serious bodily injury results from the use of such substance shall be sentenced to a term of imprisonment of not less than twenty years and not more than life, a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $2,000,000 if the defendant is an individual or $5,000,000 if the defendant is other than an individual, or both. If any person commits such a violation after one or more prior convictions for an offense punishable under this subsection, or for a felony under any other provision of this title or title II or other law of a State, the United States, or a foreign country relating to narcotic drugs, marihuana, or depressant or stimulant substances, have become final, such person shall be sentenced to a term of imprisonment of not less than 10 years and not more than life imprisonment and if death or serious bodily injury results from the use of such substance shall be sentenced to life imprisonment, a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18, United States Code, or $4,000,000 if the defendant is an individual or $10,000,000 if the defendant is other than an individual, or both. Any sentence imposed under this paragraph shall, in the absence of such a prior conviction, include a term of suspervised release of at least 4 years in addition to such term of imprisonment and shall, if there was such a prior conviction, include a term of suspervised release of at least 8 years in addition to such term of imprisonment. Notwithstanding any other provision of law, the court shall not place on probation or suspend the sentence of any person sentenced under this paragraph. No person sentenced under this paragraph shall be eligible for parole during the term of imprisonment imposed therein. "(3) In the case of a violation under subsection (a) of this section involving a controlled substance in schedule I or II, the person committing such violation shall, except as provided in paragraphs (1), (2), and (4), be sentenced to a term of imprisonment of not more than 20 years and if death or serious bodily injury results from the use of such substance shall be sentenced to a term of imprisonment of not less than twenty years and not more than life, a fine not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $1,000,000 if the defendant is an individual or $5,000,000 if the defendant is other than an individual, or both. If any person commits such a violation after one or more prior convictions for an offense punishable under this subsection, or for a felony under any other provision of this title or title II or other law of a State, the United States or a foreign country relating to narcotic drugs, marihuana, or depressant or stimulant substances, have become final, such person shall be sentenced to a term of imprisonment of not more than 30 years and if death or serious bodily injury results from the use of such substance shall be sentenced to life imprisonment, a fine not to exceed the greater of twice that authorized in accordance with the provisions of title 18,

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100 STAT. 3207-18

United States Code, or $2,000,000 if the defendant is an individual or $10,000,000 if the defendant is other than an individual, or both. Any sentence imposing a term of imprisonment under this paragraph shall, in the absence of such a prior conviction, impose a term of supervised release of at least 3 years in addition to such term of imprisonment and shall, if there was such a prior conviction, impose a term of supervised release of at least 6 years in addition to such term of imprisonment. Notwithstanding the prior sentence, and notwithstanding any other provision of law, the court shall not place on probation or suspend the sentence of any person sentenced under the provisions of this paragraph which provide for a mandatory term of imprisonment if death or serious bodily injury results, nor shall a person so sentenced be eligible for parole during the term o^ such a sentence.". (b) Section 1010(b)(4) of the Controlled Substances Import and Ante, p. 3207-15. Export Act (21 U.S.C. 960(b)(4)), as redesignated, is amended— (1) by striking out ", except as provided in paragraph (4)"; (2) by striking out "fined not more than $50,000" and inserting in lieu thereof "fined not to exceed the greater of that authorized in accordance with the provisions of title 18, United States Code, or $250,000 if the defendant is an individual or $1,000,000 if the defendant is other than an individual"; and (3) by inserting "except in the case of 100 or more marihuana plants regardless of weight," after "marihuana,". Subtitle H—Money Laundering Control Act of 1986 SEC. 1351. SHORT TITLE.

Money Laundering Control Act of 1986.

This subtitle may be cited as the "Money Laundering Control Act 18 USC 981 note. of 1986". SEC. 1352. NEW OFFENSE FOR LAUNDERING OF MONETARY INSTRUMENTS. (a) Chapter 95 of title 18, United States Code, is amended by adding at the end thereof the following: "§ 1956. Laundering of monetary instruments 18 USC 1956. "(a)(1) Whoever, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity— "(A) with the intent to promote the carrying on of specified unlawful activity; or "(B) knowing that the transaction is designed in whole or in part— "(i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of V specified unlawful activity; or « ^ "(ii) to avoid a transaction reporting requirement under State or Federal law, shall be sentenced to a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater, or imprisonment for not more than twenty years, or both. "(2) Whoever transports or attempts to transport a monetary instrument or funds from a place in the United States to or through a place outside the United States or to a place in the United States from or through a place outside the United States—

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PUBLIC LAW 99-570—OCT. 27, 1986

"(A) with the intent to promote the carrying on of specified unlawful activity; or "(B) knowing that the monetary instrument or funds involved in the transportation represent the proceeds of some form of unlawful activity and knowing that such transportation is de• signed in whole or in part— "(i) to conceal or disguise the nature, the location, the • source, the ownership, or the control of the proceeds of specified unlawful activity; or "(ii) to avoid a transaction reporting requirement under State or Federal law, shall be sentenced to a fine of $500,000 or twice the value of the monetary instrument or funds involved in the transportation, whichever is greater, or imprisonment for not more than twenty .5i-Tass q, iv years, or both. "(b) Whoever conducts or attempts to conduct a transaction described in subsection (a)(1), or a transportation described in subsection (a)(2), is liable to the United States for a civil penalty of not more than the greater of— "(1) the value of the property, funds, or monetary instruments involved in the transaction; or "(2) $10,000. "(c) As used in this section— "(1) the term 'knowing that the property involved in a financial transaction represents the proceeds of some form of unlaw' ' ful activity' means that the person knew the property involved ^.,' in the transaction represented proceeds from some form, though v., not necessarily which form, of activity that constitutes a felony -mn: «i. fj-, r under State or Federal law, regardless of whether or not such activity is specified in paragraph (7); "(2) the term 'conducts includes initiating, concluding, or participating in initiating, or concluding a transaction; "(3) the term 'transaction' includes a purchase, sale, loan, pledge, gift, transfer, delivery, or other disposition, and with respect to a financial institution includes a deposit, withdrawal, transfer between accounts, exchange of currency, loan, exten08U sion of credit, purchase or sale of any stock, bond, certificate of deposit, or other monetary instrument, or any other payment, transfer, or delivery by, through, or to a financial institution, by whatever means effected; "(4) the term 'financial transaction' means a transaction involving the movement of funds by wire or other means or involving one or more monetary instruments, which in any way or degree affects interstate or foreign commerce, or a transaction involving the use of a financial institution which is engaged in, or the activities of which affect, interstate or foreign commerce in any way or degree; "(5) the term 'monetary instruments' means coin or currency
 * -•. of the United States or of any other country, travelers' checks,

personal checks, bank checks, money orders, investment securities in bearer form or otherwise in such form that title thereto passes upon delivery, and negotiable instruments in bearer form or otherwise in such form that title thereto passes upon delivery; "(6) the term 'financial institution' has the definition given that term in section 5312(a)(2) of title 31, United States C!ode, and the regulations promulgated thereunder; ^„. ^ „.

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} •Ir;

100 STAT. 3207-20

"(7) the term 'specified unlawful activity' means— "(A) any act or activity constituting an offense listed in section 1961(1) of this title except an act which is indictable under the Currency and Foreign Transactions Reporting Act; "(B) with respect to a financial transaction occurring in whole or in part in the United States, an offense against a foreign nation involving the manufacture, importation, sale, or distribution of a controlled substance (as such term is defined for the purposes of the Controlled Substances Act);

"(C) any act or acts constituting a continuing criminal enterprise, as that term is defined in section 408 of the G. Controlled Substances Act (21 U.S.C. 848); or 5g> "(D) an offense under section 152 (relating to concealment kr^ijis i of assets; false oaths and claims; bribery), section 215 (relating to commissions or gifts for procuring loans), any of sections 500 through 503 (relating to certain counterfeiting itili r:? offenses), section 511 (relating to securities of States and •:iD-i private entities), section 543 (relating to smuggling goods into the United States), section 641 (relating to public -f money, property, or records), section 656 (relating to theft, embezzlement, or misapplication by bank officer or employee), section 666 (relating to theft or bribery concerning programs receiving Federal funds), section 793, 794, or 798 (relating to espionage), section 875 (relating to interstate communications), section 1201 (relating to kidnaping), section 1203 (relating to hostage taking), section 1344 (relating to bank fraud), or section 2113 or 2114 (relating to bank and postal robbery and theft) of this title, section 38 of the Arms ,^.4 Export Control Act (22 U.S.C. 2778), section 2 (relating to criminal penalties) of the Export Administration Act of 1979 (50 U.S.C. App. 2401), section 203 (relating to criminal ..ijj sanctions) of the International Emergency Economic 10 Powers Act (50 U.S.C. 1702), or section 3 (relating to criminal violations) of the Trading with the Enemy Act (50 U.S.C. App. 3). "(d) Nothing in this section shall supersede any provision of Federal, State, or other law imposing criminal penalties or affording civil remedies in addition to those provided for in this section. "(e) 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. Such authority of the Secretary of the Treasury shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury and the Attorney General. "(f) There is extraterritoriEd jurisdiction over the conduct prohibited by this section if— "(1) the conduct is by a United States citizen or, in the case of a non-United States citizen, the conduct occurs in part in the United States; and "(2) the transaction or series of related transactions involves funds or monetary instruments of a value exceeding $10,000.

'< 18 USC 1961. 84 Stat. 1118. ^|,<.Y^^ ^^^^ note.

21 USC 801 note.

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18 USC 152.

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PUBLIC LAW 99-570—OCT. 27, 1986

18 USC 1957.

"§ 1957. Engaging in monetary transactions in property derived from speciHed unlawful activity "(a) Whoever, in any of the circumstances set forth in subsection (d), knowingly engages or attempts to engage in a monetary trans': -j^,'_ action in criminally derived property of a value greater than $10,000 ', and is derived from specified unlawful activity, shall be punished as provided in subsection O^)"03)(1) Except as provided in paragraph (2), the punishment for an offense under this section is a fine under title 18, United States Code, or imprisonment for not more than ten years, or both. "(2) The court may impose an alternate fine to that imposable under paragraph (1) of not more than twice the amount of the criminally derived property involved in the transaction. "(c) In a prosecution for an offense under this section, the GovernSfij:>gij 8J ment is not required to prove the defendant knew that the offense from which the criminally derived property was derived was specified unlawful activity. "(d) The circumstances referred to in subsection (a) are— ? "(1) that the offense under this section takes place in the • IJ United States or in the special maritime and territorial jurisdicZ tion of the United States; or + "(2) that the offense under this section takes place outside the ' United States and such special jurisdiction, but the defendant is 18 USC 3077. a United States person (as defined in section 3077 of this title, but excluding the class described in paragraph (2)(D) of such ^ section). "(e) 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. Such authority of the Secretary of the Treasury shall be exercised in accordance with an agreement which shall be entered into by the Secretary of the Treasury and the Attorney General. "(f) As used in this section— "(1) the term 'monetary transaction' means the deposit, withdrawal, transfer, or exchange, in or affecting interstate or foreign commerce, of funds or a monetary instrument (as de31 USC 5311 et fined for the purposes of subchapter II of chapter 53 of title 31) seq. by, through, or to a financial institution (as defined in section X 5312 of title 31); "(2) the term 'criminally derived property' means any property constituting, or derived from, proceeds obtained from a criminal offense; and V "(3) the term 'specified unlawful activity' has the meaning 18 USC 1956. given that term in section 1956 of this title.'. (b) The table of sections at the beginning of chapter 95 of title 18 is amended by adding at the end the following new items: "1956. Laundering of monetary instruments. "1957. Engaging in monetary transactions in property derived from specified unlawful activity.". SEC. 1353. AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT. (a) CLARIFICATION OF RIGHT OF FINANCIAL INSTITUTIONS TO REPORT SUSPECTED VIOLATIONS.—Section 1103(c) of the Right to Financial
 * f>a ro;c

Privacy Act of 1978 (12 U.S.C. 3403(c)) is amended by adding at the end thereof the following new sentences: "Such information may

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 PUBLIC LAW 99-570—OCT. 27, 1986

100 STAT. 3207-22

include only the name or other identifying information concerning any individual or account involved in and the nature of any suspected illegal activity. Such information may be disclosed notwithstanding any constitution, law, or regulation of any State or political subdivision thereof to the contrary. Any financial institution, or officer, employee, or agent thereof, making a disclosure of information pursuant to this subsection, shall not be liable to the customer under any law or regulation of the United States or any constitution, law, or regulation of any State or political subdivision thereof, for such disclosure or for any failure to notify the customer of such disclosure.". (b) Section 1113(i) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3413(i)) is amended by inserting immediately before the period at the end thereof a comma and the following: except that a court shall have authority to order a financial institution, on which a grand jury subpoena for customer records has been served, not to notify the customer of the existence of the subpoena or information that has been furnished to the grand jury, under the circumstances and for the period specified and pursuant to the procedures established in section 1109 of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3409)". SEC. 1354. STRUCTURING TRANSACTIONS REQUIREMENTS PROHIBITED.

TO

EVADE

fn: 3H:J

REPORTING

(a) IN GENERAL.—Subchapter II of chapter 53 of title 31, United States (Dode (relating to records and reports on monetary instruments transactions) is amended by adding at the end thereof the following new section: "§ 5324. Structuring transactions to evade reporting requirement prohibited "No person shall for the purpose of evading the reporting requirements of section 5313(a) with respect to such transaction— "(1) cause or attempt to cause a domestic financial institution to fail to file a report required under section 5313(a); "(2) cause or attempt to cause a domestic financial institution to file a report required under section 5313(a) that contains a material omission or misstatement of fact; or 't "(3) structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions.". (b) (I!LERICAL AMENDMENT.—The table of sections for chapter 53 of title 31, United States C!ode, is amended by adding at the end thereof the following new item:

31 USC 5324. 31 USC 5313.

"5324. Structuring transactions to evade reporting requirement prohibited.". SEC. 1355. SEIZURE AND CIVIL FORFEITURE OF MONETARY INSTRUMENTS AND RELATED PROVISIONS. (a) CUSTOMS AuTHORiry TO CONDUCT SEARCHES AT BORDER.—Sec-

tion 5317(b) of title 31, United States Code, is amended to read as follows: "Q)) SEARCHES AT BORDER.—For purposes of ensuring compliance with the requirements of section 5316, a customs officer may stop and search, at the border and without a search warrant, any vehicle, vessel, aircraft, or other conveyance, any envelope or other container, and any person entering or departing from the United States.".

31 USC 5316.

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PUBLIC LAW 99-570—OCT. 27, 1986

(b) FAILURE TO REPORT EXPORT OR IMPORT OF MONETARY IN-

31 USC 5316.

STRUMENT.—The first sentence of section 5317(c) of title 31, United States Code (relating to seizure and forfeiture of monetary instruments in foreign commerce) is amended to read as follows: "If a report required under section 5316 with respect to any monetary instrument is not filed (or if filed, contains a material omission or misstatement of fact), the instrument and any interest in property, including a deposit in a financial institution, traceable to such instrument may be seized and forfeited to the United States Government.". SEC. 1356. COMPLIANCE AUTHORITY FOR SECRETARY OF THE TREASURY AND RELATED MATTERS.

(a) SUMMONS POWER.—Section 5318 of title 31, United States C!ode, is amended— (1) by inserting "(a) GENERAL POWERS OF SECRETARY.—"

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before "The Secretary of the Treasury"; (2) in paragraph (1), by inserting "except as provided in sul)section (b)(2)," before "delegate"; (3) by striking out "and" at the end of paragraph (2); (4) by I inserting '; after 1 paragraph (2) the following new paragraphs: "(3) examine any books, papers, records, or other data of domestic financial institutions relevant to the recordkeeping or reporting requirements of this subchapter; "(4) summon a financieil institution, an officer or employee of a financial institution (including a former officer or employee), or any person having possession, custody, or care of the reports and records required under this subchapter, to appear before the Secretary of the Treasury or his delegate at a time and place named in the summons and to produce such books, papers, records, or other data, and to give testimony, under oath, as may be relevant or material to an investigation described in subsection (b); and"; (5) by redesignating paragraph (3) as paragraph (5); and (6) by adding at the end the following new subsections:

"(b) LIMITATIONS ON SUMMONS POWER.— m.L "(1) SCOPE OF POWER.—The Secretary of the Treasury may

12 USC 1829b. 12 USC I730d.

91c take any action described in paragraph (3) or (4) of subsection (a) only in connection with investigations for the purpose of civil enforcement of violations of this subchapter, section 21 of the Federgd Deposit Insurance Act, section 411 of the National Housing Act, or chapter 2 of Public Law 91-508 (12 U.S.C. 1951 et seq.) or any regulation under any such provision. "(2) AUTHORITY TO ISSUE.—A summons may be issued under •m subsection (a)(4) only by, or with the approval of, the Secretary of the Treasury or a supervisory level delegate of the Secretary of the Treasury. "(c) ADMINISTRATIVE ASPECTS OF SUMMONS.— "(1) PRODUCTION AT DESIGNATED SITE.—A summons issued

'

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«>i: pursuant to this section may require that books, papers, records. or other data stored or maintained at any place be produced at any designated location in any State or in any territory or other place subject to the jurisdiction of the United States not more than 500 miles distant from any place where the financial institution operates or conducts business in the United States.

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100 STAT. 3207-24

"(2) FEES AND TRAVEL EXPENSES.—Persons summoned under this section shall be paid the same fees and mileage for travel in the United States that are paid witnesses in the courts of the United States. "(3) No LIABILITY FOR EXPENSES.—The United States shall not be liable for any expense, other than an expense described in paragraph (2), incurred in connection with the production of books, papers, records, or other data under this section. "(d) SERVICE OF SUMMONS.—Service of a summons issued under this section may be by registered mail or in such other manner calculated to give actual notice as the Secretary may prescribe by regulation. "(e) CONTUMACY OR REFUSAL.— "(1) REFERRAL TO ATTORNEY GENERAL.—In

case of contumacy by a person issued a summons under paragraph (3) or (4) of subsection (a) or a refusal by such person to obey such summons, the Secretary of the Treasury shall refer the matter to the Attorney General.

-:

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"(2) JURISDICTION OF COURT.—The Attorney General may

invoke the aid of any court of the United States within the jurisdiction of which— "(A) the investigation which gave rise to the summons is being or has been carried on; "(B) the person summoned is an inhabitant; or "(C) the person summoned carries on business or may be found, ' to compel compliance with the summons. "(3) COURT ORDER.—The court may issue an order requiring the person summoned to appear before the Secretary or his delegate to produce books, papers, records, and other data, to give testimony as may be necessary to explain how such mate_,,,,. rial was compiled and maintained, and to pay the costs of the proceeding. ,,, "(4) FAILURE TO COMPLY WITH ORDER.—Any failure to obey the order of the court may be punished by the court as a contempt thereof. "(5) SERVICE OF PROCESS.—All process in any case under this subsection may be served in any judicial district in which such person may be found.". (b) AMENDMENT RELATING TO EXEMPTIONS GRANTED FOR MONETARY TRANSACTION REPORTING REQUIREMENTS.—Section 5318 of title

31, United States Code, is amended by adding after subsection (e) (as added by subsection (a) of this section) the following new subsection: "(f) WRITTEN AND SIGNED STATEMENT REQUIRED.—No person shall qualify for an exemption under subsection (a)(5) unless the relevant financial institution prepares and maintains a statement which— ' "(1) describes in detail the reasons why such person is qualified for such exemption; and "(2) contains the signature of such person.". (c) CONFORMING AMENDMENTS.—

(1) Sections 5321 and 5322 of title 31, United States Code, are each amended by striking out "5318(2)" each place such term appears and inserting in lieu thereof "5318(a)(2)". Ante, p. 3207-23. (2) The heading of section 5318 of title 31, United States Code, is amended to read as follows:

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 100 STAT. 3207-25

PUBLIC LAW 99-570—OCT. 27, 1986

"§ 5318. Compliance, exemptions, and summons authority". (d) CLERICAL AMENDMENT.—The table of sections for chapter 53 of title 31, United States Code, is amended by striking out the item relating to section 5318 and inserting in lieu thereof the following: "5318. Compliance, exemptions, and summons authority.".

"

,

•,

SEC. 1357. PENALTY PROVISIONS. (a) CIVIL MONEY PENALTY FOR STRUCTURED TRANSACTION VIOLA-

TION.—Section 5321(a) of title 31, United States Code, is amended by adding at the end thereof the following new paragraph: "(4) STRUCTURED TRANSACTION VIOLATION.— "(A) PENALTY AUTHORIZED.—The Secretary of the Treasury

31 USC 5324.

may impose a civil money penalty on any person who willfully violates any provision of section 5324. "(B) MAXIMUM AMOUNT LIMITATION.—The amount of any civil money penalty imposed under subparagraph (A) shall not exceed the amount of the coins and currency (or such other monetary instruments as the Secretary may prescribe) involved in the transaction with respect to which such penalty is imposed. "(C) COORDINATION WITH FORFEITURE PROVISION.—The amount

ft

of any civil money penalty imposed by the Secretary under subparagraph (A) shall be reduced by the amount of any forfeiture to the United States under section 5317(d) in connection with the transaction with respect to which such penalty is imposed.". (b) INCREASE IN AMOUNT OF PENALTY FOR FINANCIAL INSTITU-

TIONS.—Section 5321(a)(1) of title 31, United States Code, is amended— (1) by striking out "$10,000" and inserting in lieu thereof "the greater of the amount (not to exceed $100,000) involved in the transaction or $25,000"; and (2) by striking out "section 5315" each place such term appears and inserting in lieu thereof "sections 5314 and 5315". (c) SEPARATE CIVIL MONEY PENALTY FOR VIOLATION OF SECTION

5314.—Section 5321(a) of title 31, United States Code, is amended by inserting after paragraph (4) (as added by subsection (a) of this section) the following new paragraph: "(5) FOREIGN FINANCIAL AGENCY TRANSACTION VIOLATION.— "(A) PENALTY AUTHORIZED.—The Secretary of the Treasury

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may impose a civil money penalty on any person who willfully violates any provision of section 5314. "(B) MAXIMUM AMOUNT LIMITATION.—The amount of any civil money penalty imposed under subparagraph (A) shall not exceed— "(i) in the case of violation of such section involving a fi transaction, the greater of— -it?? "(I) the amount (not to exceed $100,000) of the transaction; or "(II) $25,000; and (ii) in the case of violation of such section involving a 3;?-; failure to report the existence of an account or any identify. ing information required to be provided with respect to such account, the greater of— ,i>Ki "(I) an amount (not to exceed $100,000) equal to the balance in the account at the time of the violation; or

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 PUBLIC LAW 99-570—OCT. 27, 1986 "(II) $25,000.".

'O-' -

100 STAT. 3207-26

H
 * vd VI

(d) SEPARATE CIVIL MONEY PENALTY FOR NEGLIGENT VIOLATION OF

SUBCHAPTER.—Section 5321(a) of title 31, United States Code, is amended by inserting after paragraph (5) (as added by subsection (d) of this section) the following new paragraph: "(6) NEGLIGENCE.—The Secretary of the Treasury may impose a civil money penalty of not more than $500 on any financial institution which negligently violates any provision of this subchapter or any regulation prescribed under this subchapter.". (e) EXTENSION OF TIME LIMITATIONS FOR ASSESSMENT OF CIVIL

PENALTY.—Section 5321(b) of title 31, United States Code, is amended to read as follows: "(b) TIME LIMITATIONS FOR ASSESSMENTS AND COMMENCEMENT OF CIVIL ACTIONS.—

"(1) ASSESSMENTS.—The Secretary of the Treasury may assess a civil penalty under subsection (a) at any time before the end of the 6-year period beginning on the date of the transaction with respect to which the penalty is assessed. "(2) CIVIL ACTIONS.—The Secretary may commence a civil action to recover a civil penalty assessed under subsection (a) at any time before the end of the 2-year period beginning on the later of— .,. "(A) the date the penalty was assessed; or ..,» "(B) the date any judgment becomes final in any criminal action under section 5322 in connection with the same transaction with respect to which the penalty is assessed.".

is:,,•',

(f) CLARIFICATION OF RELATIONSHIP BETWEEN CIVIL PENALTY AND CRIMINAL PENALTY.—Section 5321 of title 31, United States Code, is

amended by adding at the end thereof the following new subsection: "(d) CRIMINAL PENALTY NOT EXCLUSIVE OF CIVIL PENALTY.—A civil money penalty may be imposed under subsection (a) with respect to any violation of this subchapter notwithstanding the fact that a criminal penalty is imposed with respect to the same violation.". (g) AMENDMENTS TO CRIMINAL PENALTY FOR CERTAIN OFFENSES.—

Section 5322(b) of title 31, United States Code, is amended— (1) by striking out "illegal activity involving transactions o f and inserting in lieu thereof "any illegal activity involving"; and (2) by striking out "5 years" and inserting in lieu thereof "10 years". (h) CONFORMING AMENDMENT.—Section 5321(c) of title 31, United States Code, is amended by striking out "section 5317(b)" and inserting in lieu thereof "subsection (c) or (d) of section 5317".

31 USC 5316.

SEC. 1358. MONETARY TRANSACTION REPORTING AMENDMENTS. (a) CLOSELY RELATED EVENTS.—Section 5316 of title 31, United

States Code, is amended by adding at the end the following new subsection: "(d) CUMULATION OF CLOSELY RELATED EVENTS.—The Secretary of

the Treasury may prescribe regulations under this section defining the term 'at one time' for purposes of subsection (a). Such regulations may permit the cumulation of closely related events in order that such events may collectively be considered to occur at one time for the purposes of subsection (a).". (h) INCHOATE OFFENSE.—Section 5316(a)(1) of title 31, United States Code, is amended— (1) by striking out "or attempts to transport or have transported,", and

"

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 100 STAT. 3207-27

PUBLIC LAW 99-570—OCT. 27, 1986

(2) by inserting ", is about to transport," after "transports", (c) TECHNICAL AND CONFORMING AMENDMENT.—Section 5316(a)(2) of title 31, United States Code, is amended by striking out "$5,000" and inserting in lieu thereof "$10,000". SEC. 1359. BANKING REGULATORY AGENCY SUPERVISION OF RECORDKEEPING SYSTEMS. (a) INSURED BANKS.—

(1) IN GENERAL.—Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is amended by adding at the end thereof the following new subsection: "(s) COMPLIANCE WITH MONETARY TRANSACTION RECORDKEEPING AND REPORT REQUIREMENTS.— "(1) COMPLIANCE PROCEDURES REQUIRED.—Each appropriate

31 USC 5311 et seq-

Federal banking agency shall prescribe regulations requiring insured banks to establish and maintain procedures reasonably designed to assure and monitor the compliance of such banks with the requirements of subchapter II of chapter 53 of title 31, United States Code. "(2) EXAMINATIONS O F BANK TO INCLUDE REVIEW OF COMPLIANCE PROCEDURES.—

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"(A) IN GENERAL.—Each examination of an insured bank by the appropriate Federal banking agency shall include a review of the procedures required to be established and maintained under paragraph (1).

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"(B) EXAM REPORT REQUIREMENT.—The report of examina-

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tion shall describe any problem with the procedures maintained by the insured bank. "(3) ORDER TO COMPLY WITH REQUIREMENTS.—If the appro-

,;,,,.,, „, ' ^ ^'"

'"

priate Federal banking agency determines that an insured bank— "(A) has failed to establish and maintain the procedures described in paragraph (1); or "(B) has failed to correct any problem with the proce,^ dures maintained by such bank which was previously reported to the bank by such agency, the agency shall issue an order in the manner prescribed in subsection (b) or (c) requiring such bank to cease and desist from its violation of this subsection or regulations prescribed under this subsection.". (2) CIVIL MONEY PENALTIES FOR FAILURE TO MAINTAIN COMPLIANCE PROCEDURES.—Section 8(i)(2)(i) of the Federal

Deposit

Insurance Act (12 U.S.C. 1818(i)(2)(i)) is amended by striking out "subsection (b) or (c)" and inserting in lieu thereof "subsection (b),(c),or(s)". (b) INSTITUTIONS REGULATED BY THE BANK BOARD.—

(1) IN GENERAL.—Section 5(d) of the Home Owners' Loan Act of 1933 (12 U.S.C. 1464(d)) is amended by adding at the end thereof the following new paragraph: Regulations.

31 USC 5311 et

seq.

"(16) CoMPUANCE W I T H MONETARY TRANSACTION RECORDKEEPING AND REPORT REQUIREMENTS.— "(A) COMPLIANCE PROCEDURES REQUIRED.—The Board shall

prescribe regulations requiring sissociations to establish and maintain procedures resisonably designed to assure and monitor the compliance of such associations with the requirements of subchapter II of chapter 53 of title 31, United States Code.

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