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Page:United States Statutes at Large Volume 100 Part 3.djvu/48

 100 STAT. 1856

PUBLIC LAW 99-508—OCT. 21, 1986

.p„:

Hazardous materials.

18 USC 1361 et seq. 18 USC 2271 et seq. Maritime affairs. 18 USC 1651 et 18 USC app.

(4) by redesignating paragraph (h) as paragraph (1); and (5) in paragraph (a) by— ^' (A) inserting after "Atomic Energy Act of 1954)," the following: "section 2284 of title 42 of the United States Code J (relating to sabotage of nuclear facilities or fuel),"; (B) striking out "or" after "(relating to treason),"; and (C) inserting before the semicolon at the end thereof the r/0'** following: "chapter 65 (relating to malicious mischief), chapter 111 (relating to destruction of vessels), or chapter 81 (relating to piracy)". (b) INTERCEPTION OF ELECTRONIC COMMUNICATIONS.—Section 2516

of title 18 of the United States Code is amended by adding at the end the following: "(3) Any attorney for the Government (as such term is defined for the purposes of the Federal Rules of Criminal Procedure) may authorize an application to a Federal judge of competent jurisdiction for, and such judge may grant, in conformity with section 2518 of this title, an order authorizing or approving the interception of electronic communications by an investigative or law enforcement officer having responsibility for the investigation of the offense as to which the application is made, when such interception may provide or has provided evidence of any Federal felony.". SEC. 106. APPLICATIONS, ORDERS, AND IMPLEMENTATION OF ORDERS.

(a) PLACE OF AUTHORIZED INTERCEPTION.—Section 2518(3) of title 18 of the United States Code is amended by inserting "(and outside that jurisdiction but within the United States in the case of a mobile interception device authorized by a Federal court within such jurisdiction)" after "within the territorial jurisdiction of the court in which the judge is sitting". (b) REIMBURSEMENT FOR ASSISTANCE.—Section 2518(4) of title 18 of the United States Code is amended by striking out "at the prevailing rates" and inserting in lieu thereof "for reasonable expenses incurred in providing such facilities or assistance". (c) COMMENCEMENT OF THIRTY-DAY PERIOD AND POSTPONEMENT OF

T^liNiMizATiON.-Section 2518(5) of title 18 of the United States Code IS amended— (1) by inserting after the first sentence the following: "Such thirty-day period begins on the earlier of the day on which the investigative or law enforcement officer first begins to conduct an interception under the order or ten days after the order is entered."; and (2) by adding at the end the following: "In the event the '?" intercepted communication is in a code or foreign language, and an expert in that foreign language or code is not reasonably available during the interception period, minimization may be accomplished as soon as practicable after such interception. An interception under this chapter may be conducted in whole or in part by Government personnel, or by an individual operating under a contract with the Government, acting under the supervision of an investigative or law enforcement officer authorized to conduct the interception.". l?M IHI*

(d) ALTERNATIVE TO DESIGNATING SPECIFIC FACILITIES FROM WHICH COMMUNICATIONS ARE TO BE INTERCEPTED.—(1) Section 2518(l)(b)(ii)

of title 18 of the United States Code is amended by inserting "except as provided in subsection (11)," before "a particular description".

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 PUBLIC LAW 99-508—OCT. 21, 1986

100 STAT. 1857

(2) Section 2518(3)(d) of title 18 of the United States Code is amended by inserting "except as provided in subsection (11)," before "there is". (3) Section 2518 of title 18 of the United States Code is amended by adding at the end the following: "(11) The requirements of subsections (l)(b)(ii) and (3)(d) of this section relating to the specification of the facilities from which, or the place where, the communication is to be intercepted do not apply if— "(a) in the case of an application with respect to the intercepts tion of an oral communication— "(i) the application is by a Federal investigative or law enforcement officer and is approved by the Attorney General, the Deputy Attorney General, the Associate Attorney General, an Assistant Attorney General, or an acting Assistant Attorney General; "(ii) the application contains a full and complete statement as to why such specification is not practical and identifies the person committing the offense and whose communications are to be intercepted; and "(iii) the judge finds that such specification is not practical; and "(b) in the case of an application with respect to a wire or electronic communication— "(i) the application is by a Federal investigative or law enforcement officer and is approved by the Attorney General, the Deputy Attorney General, the Associate Attorney General, an Assistant Attorney General, or an acting Assistant Attorney General; "(ii) the application identifies the person believed to be ) committing the offense and whose communications are to be intercepted and the applicant makes a showing of a 5, purpose, on the part of that person, to thwart interception %L,. by changing facilities; and "(iii) the judge finds that such purpose has been adequately shown. "(12) An interception of a communication under an order with respect to which the requirements of subsections (l)(b)(ii) and (3)(d) of this section do not apply by reason of subsection (11) shall not begin until the facilities from which, or the place where, the communication is to be intercepted is giscertained by the person implementing the interception order. A provider of wire or electronic communications service that has received an order as provided for in subsection (ll)(b) may move the court to modify or quash the order on the ground that its assistance with respect to the interception cannot be performed in a timely or reasonable fashion. The court, upon notice to the government, shall decide such a motion expeditiously.". (4) Section 2519(l)(b) of title 18, United States Code, is amended by inserting "(including whether or not the order was an order with respect to which the requirements of sections 2518(l)(b)(ii) and 2518(3)(d) of this title did not apply by reason of section 2518(11) of this title)" after "applied for".

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


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Page:United States Statutes at Large Volume 100 Part 3.djvu/50

 100 STAT. 1858 18 USC 2510

PUBLIC LAW 99-508—OCT. 21, 1986

SEC. 107. INTELLIGENCE ACTIVITIES.

^ ^.

.:

(a) IN GENERAL.—Nothing in this Act or the amendments made by this Act constitutes authority for the conduct of any intelligence activity. (b) CERTAIN ACTIVITIES UNDER PROCEDURES APPROVED BY THE ATTORNEY GENERAL.—Nothing in chapter 119 or chapter 121 of title

18 USC 2510 ef seq.; post, P ^^^^-

50 USC 1801 note.

18, United States Code, shall affect the conduct, by officers or employees of the United States Government in accordance with other applicable Federal law, under procedures approved by the Attorney General of activities intended to— (1) intercept encrypted or other official communications of i United States executive branch entities or United States
 * Government contractors for communications security purposes;

(2) intercept radio communications transmitted between or 5: among foreign powers or agents of a foreign power as defined by " the Foreign Intelligence Surveillance Act of 1978; or (3) access an electronic communication system used exclusively by a foreign power or agent of a foreign power as defined by the Foreign Intelligence Surveillance Act of 1978. SEC. 108. MOBILE TRACKING DEVICES.

(a) IN GENERAL.—Chapter 205 of title 18, United States Code, is amended by adding at the end the following: 18 USC 3117.

"§ 3117. Mobile tracking devices "(a) IN GENERAL.—If a court is empowered to issue a warrant or other order for the installation of a mobile tracking device, such order may authorize the use of that device within the jurisdiction of the court, and outside that jurisdiction if the device is installed in that jurisdiction. "(b) DEFINITION.—As used in this section, the term 'tracking device' means an electronic or mechanical device which permits the tracking of the movement of a person or object.". (b) CLERICAL AMENDMENT.—The table of contents at the beginning of chapter 205 of title 18, United States Code, is amended by adding at the end the following: >,...,. "3117. Mobile tracking devices.". SEC. 109. WARNING SUBJECT OF SURVEILLANCE.

.'V..

Section 2232 of title 18, United States Code, is amended— (1) by inserting "(a) PHYSICAL INTERFERENCE WITH SEARCH.—"

(2) by inserting "(b) NOTICE OF SEARCH.—" before "Whoever"
 * , before "Whoever" the first place it appears;

J Law

enforcement 18 USC^lio et seq.; post, p. 1859.

the second place it appears; and (3) by adding at the end the following: "(c) NOTICE OF CERTAIN ELECTRONIC SURVEILLANCE.—Whoever,

having knowledge that a Federal investigative or law enforcement officer has been authorized or has applied for authorization under chapter 119 to intercept a wire, oral, or electronic communication, in order to obstruct, impede, or prevent such interception, gives notice or attempts to give notice of the possible interception to any person shall be fined under this title or imprisoned not more than five years, or both. "Whoever, having knowledge that a Federal officer has been authorized or has applied for authorization to conduct electronic surveillance under the Foreign Intelligence Surveillance Act (50

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Page:United States Statutes at Large Volume 100 Part 3.djvu/51

 PUBLIC LAW 99-508—OCT. 21, 1986

100 STAT. 1859

U.S.C. 1801, et seq.), in order to obstruct, impede, or prevent such activity, gives notice or attempts to give notice of the possible activity to any person shall be fined under this title or imprisoned not more than five years, or both.". SEC. 110. INJUNCTIVE REMEDY.

(a) IN GENERAL.—Chapter 119 of title 18, United States Code, is amended by adding at the end the following: "§ 2521. Injunction against illegal interception 18 USC 2521. "Whenever it shall appear that any person is engaged or is about to engage in any act which constitutes or will constitute a felony violation of this chapter, the Attorney General may initiate a civil action in a district court of the United States to enjoin such violation. The court shall proceed as soon as practicable to the hearing and determination of such an action, and may, at any time before final determination, enter such a restraining order or prohibition, or take such other action, as is warranted to prevent a continuing and substantial injury to the United States or to any person or class of persons for whose protection the action is brought. A proceeding under this section is governed by the Federal Rules of Civil Procedure, except that, if an indictment has been returned against the 28 USC app. respondent, discovery is governed by the Federal Rules of Criminal Procedure.". 18 USC app. (b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 119 of title 18, United States Code, is amended by adding at the end thereof the following: "2521. Injunction against illegal interception.". SEC. 111. EFFECTIVE DATE.

18 USC 2510

(a) IN GENERAL.—Except as provided in subsection (b) or (c), this title and the amendments made by this title shall take effect 90 days after the date of the enactment of this Act and shall, in the case of conduct pursuant to a court order or extension, apply only with respect to court orders or extensions made after this title takes effect. (b) SPECIAL RULE FOR STATE AUTHORIZATIONS OF INTERCEPTIONS.—

Any interception pursuant to section 2516(2) of title 18 of the United States Code which would be valid and lawful without regard to the amendments made by this title shall be valid and lawful notwithstanding such amendments if such interception occurs during the period beginning on the date such amendments take effect and ending on the earlier of— (1) the day before the date of the taking effect of State law conforming the applicable State statute with chapter 119 of title 18, United States Code, as so amended; or 18 USC 2510 et (2) the date two years after the date of the enactment of this «^9Act. (c) EFFECTIVE DATE FOR CERTAIN APPROVALS BY JUSTICE DEPARTMENT OFFICIALS.—Section 104 of this Act shall take effect on the

date of enactment of this Act.

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Page:United States Statutes at Large Volume 100 Part 3.djvu/52

 100 STAT. 1860

PUBLIC LAW 99-508—OCT. 21, 1986

TITLE II—STORED WIRE AND ELECTRONIC COMMUNICATIONS AND TRANSACTIONAL RECORDS ACCESS SEC. 201. TITLE 18 AMENDMENT.

Title 18, United States Code, is amended by inserting after chapter 119 the following:

"CHAPTER 121—STORED WIRE AND ELECTRONIC c^ - I COMMUNICATIONS i AND TRANSACTIONAL J RECORDS ACCESS "Sec. "2701. Unlawful access to stored communications. "2702. Disclosure of contents. "2703. Requirements for governmental access. "2704. Backup preservation. "2705. Delayed notice. • / "2706. Cost reimbursement. > "2707. Civil action. ., "2708. Exclusivity of remedies. "2709. Counterintelligence access to telephone toll and transactional records. "2710. Definitions.

18 USC 2701.

^ •"

? 0 c:; L u >

18 USC 2702.

"§ 2701. Unlawful access to stored communications "(a) OFFENSE.—Except as provided in subsection (c) of this section whoever— "(1) intentionally accesses without authorization a facility through which an electronic communication service is provided; or "(2) intentionally exceeds an authorization to access that facility; and thereby obtains, alters, or prevents authorized access to a wire or electronic communication while it is in electronic storage in such system shall be punished as provided in subsection O> of this section. t) "(b) PUNISHMENT.—The punishment for an offense under subsection (a) of this section is— "(1) if the offense is committed for purposes of commercial advantage, malicious destruction or damage, or private commercial gain— "(A) a fine of not more than $250,000 or imprisonment for not more than one year, or both, in the case of a first offense under this subparagraph; and "(B) a fine under this title or imprisonment for not more •"' than two years, or both, for any subsequent offense under this subparagraph; and "(2) a fine of not more than $5,000 or imprisonment for not more than six months, or both, in any other case. "(c) EXCEPTIONS.—Subsection (a) of this section does not apply with respect to conduct authorized— "(1) by the person or entity providing a wire or electronic communications service; "(2) by a user of that service with respect to a communication of or intended for that user; or "(3) in section 2703, 2704 or 2518 of this title. "§ 2702. Disclosure of contents "(a) PROHIBITIONS.—Except as provided in subsection (b)—

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Page:United States Statutes at Large Volume 100 Part 3.djvu/53

 PUBLIC LAW 99-508—OCT. 21, 1986

100 STAT. 1861

"(1) a person or entity providing an electronic communication service to the public shall not knowingly divulge to any person or entity the contents of a communication while in electronic storage by that service; and "(2) a person or entity providing remote computing service to the public shall not knowingly divulge to any person or entity the contents of any communication which is carried or maintained on that service— "(A) on behalf of, and received by means of electronic transmission from (or created by means of computer processing of communications received by means of electronic transmission from), a subscriber or customer of such service; and "(B) solely for the purpose of providing storage or computer processing services to such subscriber or customer, if the provider is not authorized to access the contents of any such communications for purposes of providing any services other than storage or computer processing. "(b) EXCEPTIONS.—A person or entity may divulge the contents of a communication— "(1) to an addressee or intended recipient of such communication or an agent of such addressee or intended recipient; "(2) as otherwise authorized in section 2516, 2511(2)(a), or 2703 of this title; "(3) with the lawful consent of the originator or an addressee or intended recipient of such communication, or the subscriber in the case of remote computing service; "(4) to a person employed or authorized or whose facilities are used to forward such communication to its destination; "(5) as may be necessarily incident to the rendition of the service or to the protection of the rights or property of the provider of that service; or "(6) to a law enforcement agency, if such contents— "(A) were inadvertently obtained by the service provider; and "(B) appear to pertain to the commission of a crime. "§ 2703. Requirements for governmental access "(a) CONTENTS OF ELECTRONIC COMMUNICATIONS IN ELECTRONIC STORAGE.—A governmental entity may require the disclosure by a provider of electronic communication service of the contents of an electronic communication, that is in electronic storage in an electronic communications system for one hundred and eighty days or less, only pursuant to a warrant issued under the Federal Rules of Criminal Procedure or equivalent State warrant. A governmental entity may require the disclosure by a provider of electronic communications services of the contents of an electronic communication that has been in electronic storage in an electronic communications system for more than one hundred and eighty days by the means available under subsection (b) of this section. "(b) CONTENTS OF ELECTRONIC COMMUNICATIONS IN A REMOTE COMPUTING SERVICE.—(1) A governmental entity may require a

provider of remote computing service to disclose the contents of any electronic communication to which this paragraph is made applicable by paragraph (2) of this subsection— "(A) without required notice to the subscriber or customer, if the governmental entity obtains a warrant issued under the

18 USC 2516, 2511; infra.

State and local fg^uscTTol.

18 USC app.

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Page:United States Statutes at Large Volume 100 Part 3.djvu/54

 100 STAT. 1862 18 USC app.

Post, p. 1864.

'm

'i

_ ry„ '• ' Records.

PUBLIC LAW 99-508—OCT. 21, 1986

Federal Rules of Criminal Procedure or equivalent State warrant; or "(B) with prior notice from the governmental entity to the subscriber or customer if the governmental entity— "(i) uses an administrative subpoena authorized by a Federal or State statute or a Federal or State grand jury subpoena; or "(ii) obtains a court order for such disclosure under subsection (d) of this section; except that delayed notice may be given pursuant to section 2705 of this title. "(2) Paragraph (1) is applicable with respect to any electronic communication that is held or maintained on that service— "(A) on behalf of, and received by means of electronic transmission from (or created by means of computer processing of communications received by means of electronic transmission from), a subscriber or customer of such remote computing service; and "(B) solely for the purpose of providing storage or computer processing services to such subscriber or customer, if the provider is not authorized to access the contents of any such communications for purposes of providing any services other than storage or computer processing. "(c) RECORDS CONCERNING ELECTRONIC COMMUNICATION SERVICE OR REMOTE COMPUTING SERVICE.—(1)(A) Except as provided in

subparagraph (B), a provider of electronic communication service or remote computing service may disclose a record or other information pertaining to a subscriber to or customer of such service (not including the contents of communications covered by subsection (a) or (b) of this section) to any person other than a governmental entity. "(B) A provider of electronic communication service or remote computing service shall disclose a record or other information pertaining to a subscriber to or customer of such service (not including the contents of communications covered by subsection (a) or (b) of this section) to a governmental entity only when the governmental entity— "(i) uses an administrative subpoena authorized by a Federal or State statute, or a Federal or State grand jury subpoena; "(ii) obtains a warrant issued under the Federal Rules of Criminal Procedure or equivalent State warrant; "(iii) obtains a court order for such disclosure under subsection (d) of this section; or "(iv) has the consent of the subscriber or customer to such disclosure. "(2) A governmental entity receiving records or information under this subsection is not required to provide notice to a subscriber or customer. "(d) REQUIREMENTS FOR CouRT ORDER.—A court Order for disclosure under subsection (b) or (c) of this section shall issue only if the governmental entity shows that there is reason to believe the contents of a wire or electronic communication, or the records or other information sought, are relevant to a legitimate law enforcement inquiry. In the case of a State governmental authority, such a court order shall not issue if prohibited by the law of such State. A court issuing an order pursuant to this section, on a motion made promptly by the service provider, may quash or modify such order, if

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Page:United States Statutes at Large Volume 100 Part 3.djvu/55

 PUBLIC LAW 99-508—OCT. 21, 1986

100 STAT. 1863

the information or records requested are unusually voluminous in nature or compliance with such order otherwise would cause an undue burden on such provider. "(e) No CAUSE OF ACTION AGAINST A PROVIDER DISCLOSING INFORMATION UNDER THIS CHAPTER.—No cause of action shall lie in

any court against any provider of wire or electronic communication service, its officers, employees, agents, or other specified persons for providing information, facilities, or assistance in accordance with the terms of a court order, warrant, subpoena, or certification under this chapter. "§ 2704. Backup preservation 18 USC 2704. "(a) BACKUP PRESERVATION.—(1) A governmental entity acting under section 2703(b)(2) may include in its subpoena or court order a requirement that the service provider to whom the request is directed create a backup copy of the contents of the electronic communications sought in order to preserve those communications. Without notifying the subscriber or customer of such subpoena or court order, such service provider shall create such backup copy as soon as practicable consistent with its regular business practices and shall confirm to the governmental entity that such backup copy has been made. Such backup copy shall be created within two business days after receipt by the service provider of the subpoena or court order. "(2) Notice to the subscriber or customer shall be made by the governmental entity within three days after receipt of such confirmation, unless such notice is delayed pursuant to section 2705(a). "(3) The service provider shall not destroy such backup copy until the later of— "(A) the delivery of the information; or "(B) the resolution of any proceedings (including appeals of any proceeding) concerning the government's subpoena or court order. "(4) The service provider shall release such backup copy to the requesting governmental entity no sooner than fourteen days after the governmental entity's notice to the subscriber or customer if such service provider— "(A) has not received notice from the subscriber or customer that the subscriber or customer has challenged the governmental entity's request; and "(B) has not initiated proceedings to challenge the request of .. the governmental entity. "(5) A governmental entity may seek to require the creation of a backup copy under subsection (a)(1) of this section if in its sole discretion such entity determines that there is reason to believe that notification under section 2703 of this title of the existence of the subpoena or court order may result in destruction of or tampering with evidence. This determination is not subject to challenge by the subscriber or customer or service provider. "(b) CUSTOMER CHALLENGES.—(1) Within fourteen days after notice by the governmental entity to the subscriber or customer under subsection (a)(2) of this section, such subscriber or customer may file •i": i.; a motion to quash such subpoena or vacate such court order, with copies served upon the governmental entity and with written notice of such challenge to the service provider. A motion to vacate a court order shall be filed"inthe^ court which issued such order. A motion to quash a subpoena shall be filed in the appropriate United States

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Page:United States Statutes at Large Volume 100 Part 3.djvu/56

 100 STAT. 1864

PUBLIC LAW 99-508—OCT. 21, 1986

district court or State court. Such motion or application shall contain an affidavit or sworn statement— "(A) stating that the applicant is a customer or subscriber to the service from which the contents of electronic communications maintained for him have been sought; and "(B) stating the applicant's reasons for believing that the records sought are not relevant to a legitimate law enforcement inquiry or that there has not been substantial compliance with the provisions of this chapter in some other respect. "(2) Service shall be made under this section upon a governmental ._,. ^ entity by delivering or mailing by registered or certified mail a copy eu i! of ^ije papers to the person, office, or department specified in the notice which the customer has received pursuant to this chapter. For the purposes of this section, the term 'delivery' has the meaning 28 USC app. given that term in the Federal Rules of Civil Procedure. "(3) If the court finds that the customer has complied with paragraphs (1) and (2) of this subsection, the court shall order the governmental entity to file a sworn response, which may be filed in camera if the governmental entity includes in its response the reasons which make in camera review appropriate. If the court is unable to determine the motion or application on the basis of the parties' initial allegations and response, the court may conduct such additional proceedings as it deems appropriate. All such proceedings shall be completed and the motion or application decided as soon as practicable after the filing of the governmental entity's response. "(4) If the court finds that the applicant is not the subscriber or customer for whom the communications sought by the governmental entity are maintained, or that there is a reason to believe that the law enforcement inquiry is legitimate and that the communications sought are relevant to that inquiry, it shall deny the motion or application and order such process enforced. If the court finds that the applicant is the subscriber or customer for whom the communications sought by the governmental entity are maintained, and that there is not a reason to believe that the communications sought are relevant to a legitimate law enforcement inquiry, or that there has not been substantial compliance with the provisions of this chapter, it shall order the process quashed. "(5) A court order denying a motion or application under this section shall not be deemed a final order and no interlocutory appeal may be taken therefrom by the customer. 18 USC 2705. "§ 2705. Delayed notice "(a) DELAY OF NOTIFICATION.—(1) A governmental entity acting under section 2703(b) of this title may— "(A) where a court order is sought, include in the application a request, which the court shall grant, for an order delaying the notification required under section 2703(b) of this title for a period not to exceed ninety days, if the court determines that there is reason to believe that notification of the existence of the ts: court order may have an adverse result described in paragraph (2) of this subsection; or State and local "(B) where an administrative subpoena authorized by a Fedgovernments. gj.^j QJ. g^ate Statute or a Federal or State grand jury subpoena is obtained, delay the notification required under section 2703(b) of this title for a period not to exceed ninety days upon the . execution of a written certification of a supervisory official that 5 there is reason to believe that notification of the existence of the

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Page:United States Statutes at Large Volume 100 Part 3.djvu/57

 PUBLIC LAW 99-508—OCT. 21, 1986

100 STAT. 1865

subpoena may have an adverse result described in paragraph (2) of this subsection. "(2) An adverse result for the purposes of paragraph (1) of this subsection is— "(A) endangering the life or physical safety of an individual; "(B) flight from prosecution; "(C) destruction of or tampering with evidence; "(D) intimidation of potential witnesses; or "(E) otherwise seriously jeopardizing an investigation or unduly delaying a trial. "(3) The governmental entity shall maintain a true copy of certification under paragraph (1)(B). "(4) Extensions of the delay of notification provided in section 2703 of up to ninety days each may be granted by the court upon application, or by certification by a governmental entity, but only in accordance with subsection (b) of this section. "(5) Upon expiration of the period of delay of notification under paragraph (1) or (4) of this subsection, the governmental entity shall serve upon, or deliver by registered or first-class mail to, the customer or subscriber a copy of the process or request together with notice that— "(A) states with reasonable specificity the nature of the law enforcement inquiry; and "(B) informs such customer or subscriber— "(i) that information maintained for such customer or subscriber by the service provider named in such process or request was supplied to or requested by that governmental authority and the date on which the supplying or request took place; "(ii) that notification of such customer or subscriber was delayed; "(iii) what governmental entity or court made the certification or determination pursuant to which that delay was \5 made; and "(iv) which provision of this chapter allowed such delay. "(6) As used in this subsection, the term 'supervisory official' means the investigative agent in charge or assistant investigative agent in charge or an equivalent of an investigating agency's headquarters or regional office, or the chief prosecuting attorney or the first assistant prosecuting attorney or an equivalent of a prosecuting attorney's headquarters or regional office. "(b)

PRECLUSION OF NOTICE TO SUBJECT OF GOVERNMENTAL

ACCESS.—A governmental entity acting under section 2703, when it is not required to notify the subscriber or customer under section 2703(b)(l), or to the extent that it may delay such notice pursuant to subsection (a) of this section, may apply to a court for an order commanding a provider of electronic communications service or remote computing service to whom a warrant, subpoena, or court order is directed, for such period as the court deems appropriate, not to notify any other person of the existence of the warrant, subpoena, or court order. The court shall enter such an order if it determines that there is reason to believe that notification of the existence of the warrant, subpoena, or court order will result in— "(1) endangering the life or physical safety of an individual; 1' -^ "(2) flight from prosecution; "(3) destruction of or tampering with evidence;

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Page:United States Statutes at Large Volume 100 Part 3.djvu/58

 100 STAT. 1866

PUBLIC LAW 99-508—OCT. 21, 1986

18 USC 2706.

"(4) intimidation of potential witnesses; or "(5) otherwise seriously jeopardizing an investigation or unduly delaying a trial.

"§ 2706. Cost reimbursement . "(a) PAYMENT.—Except as otherwise provided in subsection (c), a governmental entity obtaining the contents of communications, records, or other information under section 2702, 2703, or 2704 of this title shall pay to the person or entity assembling or providing such information a fee for reimbursement for such costs as are reasonably necessary and which have been directly incurred in searching for, assembling, reproducing, or otherwise providing such information. Such reimbursable costs shall include any costs due to necessary disruption of normal operations of any electronic communication service or remote computing service in which such information may be stored. "Ob) AMOUNT.—The amount of the fee provided by subsection (a) shall be as mutually agreed by the governmental entity and the person or entity providing the information, or, in the absence of agreement, shall be as determined by the court which issued the order for production of such information (or the court before which a criminal prosecution relating to such information would be brought, if no court order was issued for production of the information). "(c) The requirement of subsection (a) of this section does not apply with respect to records or other information maintained by a communications common carrier that relate to telephone toll records and telephone listings obtained under section 2703 of this title. The court may, however, order a payment as described in subsection (a) if the court determines the information required is unusually voluminous in nature or otherwise caused an undue burden on the provider. "§ 2707. Civil action "(a) CAUSE OF ACTION.—Except as provided in section 2703(e), any

provider of electronic communication service, subscriber, or customer aggrieved by any violation of this chapter in which the conduct constituting the violation is engaged in with a knowing or intentional state of mind may, in a civil action, recover from the person or entity which engaged in that violation such relief as may be appropriate. "(b) RELIEF.—In a civil action under this section, appropriate relief includes— "(1) such preliminary and other equitable or declaratory relief as may be appropriate; "(2) damages under subsection (c); and "(3) a reasonable attorney's fee and other litigation costs reasonably incurred. "(c) DAMAGES.—The court may assess as damages in a civil action under this section the sum of the actual damages suffered by the plaintiff and any profits made by the violator as a result of the violation, but in no case shall a person entitled to recover receive less than the sum of $1,000. "(d) DEFENSE.—A good faith reliance on— "(1) a court warrant or order, a grand jury subpoena, a «!« legislative authorization, or a statutory authorization; "(2) a request of an investigative or law enforcement officer under section 2518(7) of this title; or

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Page:United States Statutes at Large Volume 100 Part 3.djvu/59

 PUBLIC LAW 99-508—OCT. 21, 1986

100 STAT. 1867

"(3) a good faith determination that section 2511(3) of this title permitted the conduct complained of; is a complete defense to any civil or criminal action brought under this chapter or any other law. "(e) LIMITATION.—A civil action under this section may not be commenced later than two years after the date upon which the claimant first discovered or had a reasonable opportunity to discover the violation. "§ 2708. Exclusivity of remedies "The remedies and sanctions described in this chapter are the only judicial remedies and sanctions for nonconstitutional violations of this chapter.

18 USC 2708.

"§ 2709. Counterintelligence access to telephone toll and trans- 18 USC 2709. actional records "(a) DUTY TO PROVIDE.—A wire or electronic communication service provider shall comply with a request for subscriber information H: and toll billing records information, or electronic communication '*• transactional records in its custody or possession made by the Director of the Federal Bureau of Investigation under subsection (b) of this section. "(b) REQUIRED CERTIFICATION.—The Director of the Federal Bureau of Investigation (or an individual within the Federal Bureau of Investigation designated for this purpose by the Director) may request any such information and records if the Director (or the Director's designee) certifies in writing to the wire or electronic communication service provider to which the request is made that— "(1) the information sought is relevant to an authorized foreign counterintelligence investigation; and "(2) there are specific and articulable facts giving reason to believe that the person or entity to whom the information sought pertains is a foreign power or an agent of a foreign power as defined in section 101 of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801). "(c) PROHIBITION OF CERTAIN DISCLOSURE.—No wire or electronic communication service provider, or officer, employee, or agent thereof, shall disclose to any person that the Federal Bureau of Investigation has sought or obtained access to information or records under this section. "(d) DISSEMINATION BY BUREAU.—The Federal Bureau of Investigation may disseminate information and records obtained under this section only as provided in guidelines approved by the Attorney ^^,,_, _ General for foreign intelligence collection and foreign counterintel' '" ^ ligence investigations conducted by the Federal Bureau of Investigation, and, with respect to dissemination to an agency of the United States, only if such information is clearly relevant to the authorized responsibilities of such agency. "(e) REQUIREMENT THAT CERTAIN CONGRESSIONAL BODIES B E IN-

FORMED.—On a semiannual basis the Director of the Federal Bureau of Investigation shall fully inform the Permanent Select Committee

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on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate concerning all requests made under subsection (b) of this section, 18 USC 2710.

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.

18 USC 2701

"§ 2710. Definitions for chapter . "As used in this chapter— "(1) the terms defined in section 2510 of this title have, respectively, the definitions given such terms in that section; and "(2) the term 'remote computing service' means the provision to the public of computer storage or processing services by means of an electronic communications system.", (b) CLERICAL AMENDMENT.—The table of chapters at the beginning of part I of title 18, United States Code, is amended by adding at the end the following: "121. Stored Wire and Electronic Communications and Transactional Records Access 2701". SEC. 202. EFFECTIVE DATE.

This title and the amendments made by this title shall take effect ninety days after the date of the enactment of this Act and shall, in the case of conduct pursuant to a court order or extension, apply only with respect to court orders or extensions made after this title takes effect.

TITLE III—PEN REGISTERS AND TRAP AND TRACE DEVICES SEC. 301. TITLE 18 AMENDMENT.

(a) IN GENERAL.—Title 18 of the United States Code is amended by inserting after chapter 205 the following new chapter:

"CHAPTER 206—PEN REGISTERS AND TRAP AND TRACE DEVICES "Sec. "3121. "3122. "3123. "3124.

General prohibition on pen register and trap and trace device use; exception. Application for an order for a pen register or a trap and trace device. Issuance of an order for a pen register or a trap or trace device. Assistance in installation and use of a pen register or a trap and trace device. "3125. Reports concerning pen registers and trap and trace devices. "3126. Definitions for chapter.

18 USC 3121.

"§3121. General prohibition on pen register and trap and trace device use; exception "(a) IN GENERAL.—Except as provided in this section, no person may install or use a pen register or a trap and trace device without first obtaining a court order under section 3123 of this title or under the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.). "(b) EXCEPTION.—The prohibition of subsection (a) does not apply with respect to the use of a pen register or a trap and trace device by a provider of electronic or wire communication service—

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100 STAT. 1869

"(1) relating to the operation, maintenance, and testing of a wire or electronic communication service or to the protection of the rights or property of such provider, or to the protection of users of that service from abuse of service or unlawful use of service; or "(2) to record the fact that a wire or electronic communication was initiated or completed in order to protect such provider, another provider furnishing service toward the completion of the wire communication, or a user of that service, from fraudulent, unlawful or abusive use of service; or (3) where the consent of the user of that service has been obtained. "(c) PENALTY.—Whoever knowingly violates subsection (a) shall be fined under this title or imprisoned not more than one year, or both. "§ 3122. Application for an order for a pen register or a trap and 18 USC 3122. trace device "(a) APPLICATION.—(1) An attorney for the Government may make application for an order or an extension of an order under section 3123 of this title authorizing or approving the installation and use of a pen register or a trap and trace device under this chapter, in writing under oath or equivalent affirmation, to a court of competent jurisdiction. "(2) Unless prohibited by State law, a State investigative or law state and local enforcement officer may make application for an order or an exten- governments. sion of an order under section 3123 of this title authorizing or approving the installation and use of a pen register or a trap and trace device under this chapter, in writing under oath or equivalent affirmation, to a court of competent jurisdiction of such State. "(b) CONTENTS OF APPLICATION.—An application under subsection (a) of this section shall include— "(1) the identity of the attorney for the Government or the State law enforcement or investigative officer making the application and the identity of the law enforcement agency conducting the investigation; and • "(2) a certification by the applicant that the information likely to be obtained is relevant to an ongoing criminal investigation being conducted by that agency. "§ 3123. Issuance of an order for a pen register or a trap and trace device "(a) IN GENERAL.—Upon an application made under section 3122 of this title, the court shall enter an ex parte order authorizing the installation and use of a pen register or a trap and trace device within the jurisdiction of the court if the court finds that the attorney for the Government or the State law enforcement or investigative officer has certified to the court that the information likely to be obtained by such installation and use is relevant to an ongoing criminal investigation. "(b) CONTENTS OF ORDER.—An order issued under this section— "(1) shall specify— "(A) the identity, if known, of the person to whom is leased or in whose name is listed the telephone line to which the pen register or trap and trace device is to be attached; "(B) the identity, if known, of the person who is the subject of the criminal investigation;

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"(C) the number and, if known, physical location of the telephone line to which the pen register or trap and trace device is to be attached and, in the case of a trap and trace to -sdevice, the geographic limits of the trap and trace order; and "(D) a statement of the offense to which the information likely to be obtained by the pen register or trap and trace device relates; and "(2) shall direct, upon the request of the applicant, the furnishing of information, facilities, and technical assistance necessary to accomplish the installation of the pen register or trap and trace device under section 3124 of this title. "(c) TIME PERIOD AND EXTENSIONS.—(1) An order issued under this section shall authorize the installation and use of a pen register or a trap and trace device for a period not to exceed sixty days. "(2) Extensions of such an order may be granted, but only upon an application for an order under section 3122 of this title and upon the judicial finding required by subsection (a) of this section. The period of extension shall be for a period not to exceed sixty days.

c.^

"(d) NONDISCLOSURE OF EXISTENCE OF P E N REGISTER OR A TRAP AND

TRACE DEVICE.—An order authorizing or approving the installation and use of a pen register or a trap and trace device shall direct that— "(1) the order be sealed until otherwise ordered by the court; and "(2) the person owning or leasing the line to which the pen register or a trap and trace device is attached, or who has been ordered by the court to provide assistance to the applicant, not disclose the existence of the pen register or trap and trace device or the existence of the investigation to the listed subscriber, or to any other person, unless or until otherwise ordered by the court.

^ ^ '

18 USC 3124.

V

"§ 3124. Assistance in installation and use of a pen register or a trap and trace device "(a) P E N REGISTERS.—Upon the request of an attorney for the Government or an officer of a law enforcement agency authorized to install and use a pen register under this chapter, a provider of wire or electronic communication service, landlord, custodian, or other person shall furnish such investigative or law enforcement officer forthwith all information, facilities, and technical assistance necessary to accomplish the installation of the pen register unobtrusively and with a minimum of interference with the services that the person so ordered by the court accords the party with respect to whom the installation and use is to take place, if such assistance is directed by a court order as provided in section 3123(b)(2) of this title. "(b) TRAP AND TRACE DEVICE.—Upon the request of an attorney

for the Government or an officer of a law enforcement agency authorized to receive the results of a trap and trace device under this chapter, a provider of a wire or electronic communication service, landlord, custodian, or other person shall install such device forthwith on the appropriate line and shall furnish such investigative or law enforcement officer all additional information, facilities and technical assistance including installation and operation of the

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100 STAT. 1871

device unobtrusively and with a minimum of interference with the services that the person so ordered by the court accords the party with respect to whom the installation and use is to take place, if such installation and assistance is directed by a court order as provided in section 3123(b)(2) of this title. Unless otherwise ordered by the court, the results of the trap and trace device shall be furnished to the officer of a law enforcement agency, designated in the court, at reasonable intervals during regular business hours for the duration of the order. "(c) COMPENSATION.—A provider of a wire or electronic communication service, landlord, custodian, or other person who furnishes facilities or technical assistance pursuant to this section shall be reasonably compensated for such reasonable expenses incurred in providing such facilities and assistance. "(d) No CAUSE OF ACTION AGAINST A PROVIDER DISCLOSING INFORMATION UNDER THIS CHAPTER.—No cause of action shall lie in

n? ^-^ ^; ^

any court against any provider of a wire or electronic communication service, its officers, employees, agents, or other specified persons for providing information, facilities, or assistance in accordance with the terms of a court order under this chapter. "(e) DEFENSE.—A good faith reliance on a court order, a legislative authorization, or a statutory authorization is a complete defense against any civil or criminal action brought under this chapter or any other law. "§ 3125. Reports concerning pen registers and trap and trace is use 3125. devices "The Attorney General shall annually report to Congress on the number of pen register orders and orders for trap and trace devices applied for by law enforcement agencies of the Department of Justice. "§ 3126. DeHnitions for chapter "As used in this chapter— "(1) the terms 'wire communication', 'electronic communication', and 'electronic communication service' have the meanings set forth for such terms in section 2510 of this title; "(2) the term 'court of competent jurisdiction' means— "(A) a district court of the United States (including a magistrate of such a court) or a United States Court of Appeals; or 'if *, ' (B) a court of general criminal jurisdiction of a State authorized by the law of that State to enter orders authorizing the use of a pen register or a trap and trace device; "(3) the term 'pen register means a device which records or decodes electronic or other impulses which identify the numbers dialed or otherwise transmitted on the telephone line to which such device is attached, but such term does not include any device used by a provider or customer of a wire or electronic communication service for billing, or recording as an incident to billing, for communications services provided by such provider or any device used by a provider or customer of a wire communication service for cost accounting or other like purposes in the ordinary course of its business;

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,i.

"(4) the term 'trap and trace device' means a device which captures the incoming electronic or other impulses which identify the originating number of an instrument or device from which a wire or electronic communication was transmitted; "(5) the term 'attorney for the Government' has the meaning given such term for the purposes of the Federal Rules of Criminal Procedure; and "(6) the term 'State' means a State, the District of Columbia, Puerto Rico, and any other possession or territory of the United States.". (b) CLERICAL AMENDMENT.—The table of chapters for part II of title 18 of the United States Code is amended by inserting after the item relating to chapter 205 the following new item: "206. Pen Registers and Trap and Trace Devices

18 USC 3121

3121".

SEC. 302. EFFECTIVE DATE.

(a) IN GENERAL.—Except as provided in subsection flj), this title and the amendments made by this title shall take effect ninety days after the date of the enactment of this Act and shall, in the case of conduct pursuant to a court order or extension, apply only with respect to court orders or extensions made after this title takes effect. (b) SPECIAL RULE FOR STATE AUTHORIZATIONS OF INTERCEPTIONS.—

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Any pen register or trap and trace device order or installation which would be valid and lawful without regard to the amendments made by this title shall be valid and lawful notwithstanding such amendments if such order or installation occurs during the period beginning on the date such amendments take effect and ending on the earlier of— (1) the day before the date of the taking effect of changes in State law required in order to make orders or installations under Federal law as amended by this title; or (2) the date two years after the date of the enactment of this Act. SEC. 303. INTERFERENCE WITH THE OPERATION OF A SATELLITE.

(a) OFFENSE.—Chapter 65 of title 18, United States Code, is amended by inserting at the end the following: 18 USC 1367.

"§ 1367. Interference with the operation of a satellite "(a) Whoever, without the authority of the satellite operator, intentionally or maliciously interferes with the authorized operation of a communications or weather satellite or obstructs or hinders any satellite transmission shall be fined in accordance with this title or imprisoned not more than ten years or both. "(h) This section does not prohibit any lawfully authorized investigative, protective, or intelligence activity of a law enforcement agency or of an intelligence agency of the United States."

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(b) CONFORMING AMENDMENT.—The table of sections for chapter 65 of title 18, United States Code, is amended by adding at the end the following new item: "1367. Interference with the operation of a satellite.".

Approved October 21, 1986.

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LEGISLATIVE HISTORY—H.R. 4952 (S. 2575): HOUSE REPORTS: No. 99-647 (Ckjmm. on the Judiciary). CONGRESSIONAL RECORD, Vol. 132 (1986): June 23, considered and passed House. Oct. 1, considered and passed Senate, amended. Oct. 2, House concurred in Senate amendments.

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PUBLIC LAW 99-509—OCT. 21, 1986

99th Congress c
 * Public Law 99-509

An Act Oct. 21, 1986 [H.R. 5300]

To provide for reconciliation pursuant to section 2 of the concurrent resolution on the budget for fiscal year 1987.

Omnibus Budget Reconciliation Act of 1986.

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

(a) SHORT TITLE.—This Act may be cited as the "Omnibus Budget Reconcihation Act of 1986". (b) TABLE OF CONTENTS.— Title I. Agriculture programs. Title II. Banking and housing programs. Title III. Energy and environmental programs. Title IV. Transportation and related programs. Title V. Maritime programs. Title VI. Civil service, Postal Service, and governmental affairs generally. Title VII. Fiscal procedures. Title VIII. Revenues, trade, and related programs. Title IX. Income security, medicare, medicaid, and maternal and child health programs.

TITLE I—AGRICULTURAL PROGRAMS Subtitle A—Sale of Notes 7 USC 1929a note. 7 USC 1929a.

7 USC 1929a note.

SEC. 1001. SALE OF RURAL DEVELOPMENT NOTES. (a) SALES REQUIRED.—The Secretary of Agriculture, under such terms as the Secretary may prescribe, shall sell notes and other obligations held in the Rural Development Insurance Fund established under section 309A of the Consolidated Farm and Rural Development Act in such amounts as to realize net proceeds to the Government of not less than— (1) $1,000,000,000 from such sales during fiscal year 1987, (2) $552,000,000 from such sales during fiscal year 1988, and (3) $547,000,000 from such sales during fiscal year 1989. (b) NONRECOURSE SALES.—The second sentence of section 309A(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1929a(e)) is amended by— (1) inserting "and other obligations" after "Notes"; and (2) striking out the period at the end thereof and inserting in lieu thereof the following: ", including sale on a nonrecourse basis. The Secretary and any subsequent purchaser of such notes or other obligations sold by the Secretary on a nonrecourse basis shall be relieved of any responsibilities that might have been imposed had the borrower remained indebted to the Secretary.". (c) CONTRACT PROVISIONS.—Consistent with section 309A(e) of the Consolidated Farm and Rural Development Act, as amended by subsection 0)), any sale of notes or other obligations, as described in

the President on October 21, 1986.
 * Note: This is a subsequently ts^peset print of the hand enrollment which was signed by

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100 STAT. 1875

subsection (a), shall not alter the terms specified in the note or other obligation, except that, on sale, a note or other obligation shall not be subject to the provisions of section 333(c) of the Consolidated Farm and Rural Development Act. (d) ELIGIBILITY TO PURCHASE NOTES.—Notwithstanding any other provision of law, each institution of the Farm Credit System shall be eligible to purchase notes and other obligations held in the Rural Development Insurance Fund and to service (including the extension of additional credit and all other actions necessary to preserve, conserve, or protect the institution's interest in the purchased notes or other obligations), collect, and dispose of such notes and other obligations, subject only to such terms and conditions as may be agreed to by the Secretary of Agriculture and the purchasing institution and as may be approved by the Farm Credit Administration. (e) LOAN SERVICING.—Prior to selling any note or other obligation, as described in subsection (a), the Secretary of Agriculture shall require persons offering to purchase the note or other obligation to demonstrate— (1) an ability or resources to provide such servicing, with respect to the loans represented by the note or other obligation, that the Secretary deems necessary to ensure the continued performance on the loan; and (2) the ability to generate capital to provide the borrowers of the loans such additional credit as may be necessary in proper servicing of the loans. SEC. 1002. LIMITATION ON SALES FROM THE AGRICULTURAL CREDIT INSURANCE FUND.

7 USC 1983. 7 USC 1929a note. QM

7 USC 1929 note.

7 USC 1729 note.

During fiscal years 1987 through 1989, no note shall be sold out of the Agricultural Credit Insurance Fund, except in connection with transactions with the Secretary of the Treasury, without prior approval by Congress.

Subtitle B—Prepayment of Loans SEC. 1011. PREPAYMENT OF REA GUARANTEED LOANS. (a) AMENDMENT TO RURAL ELECTRIFICATION ACT OF 1936.—The

Rural Electrification Act of 1936 is amended by inserting after section 306 (7 U.S.C. 936) the following new sections: "SEC. 306A. PREPAYMENT OF LOANS.

"(a) Except as provided in subsection (c), a borrower of a loan made by the Federal Financing Bank and guaranteed under section 306 of this Act may prepay such loan (or any loan advance thereunder) by paying the outstanding principal balance due on the loan (or advance), if— "(1) the loan is outstanding en July 2, 1986; "(2) private capital, with the existing loan guarantee, is used 'f. to replace the loan; and ( "(3) the borrower certifies that any savings from such prepayment will be passed on to its customers or used to improve the financial strength of the borrower in cases of financial hardship. "(b) No sums in addition to the payment of the outstanding principal balance due on the loan may be charged as the result of

7 USC 936a. Banks and banking.

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Banks and banking.

Effective date.

Ante, p. 710.

Securities. 7 USC 936.

7 USC 936b.

Effective date.

7 USC 936 note.

Ante, p. 710.

7 USC 936a note.

Ante, p. 1875. Utilities.

PUBLIC LAW 99-509—OCT. 21, 1986

such prepayment against the borrower, the fund, or the Rural Electrification Administration. "(c)(1) A borrower will not qualify for prepayment under this section if, in the opinion of the Secretary of the Treasury, to prepay in such borrower's case would adversely affect the operation of the Federal Financing Bank. "(2) Paragraph (1) shall be effective in fiscal year 1987 only for any loan the prepayment of the principal amount of which will cause the cumulative amount of net proceeds from all such prepayments made during such year to exceed $2,017,500,000. "(d)(1) The Administrator shall permit, subject to subsection (a), prepayments of principal on loans in fiscal year 1987 under this section or Public Law 99-349 in such amounts as to realize net proceeds from all such prepayments in fiscal year 1987 in an amount not less than $2,017,500,000. "(2) The Administrator shall establish— "(A) eligibility criteria to ensure that any loan prepayment activity required to be carried out under this subsection will be directed to those cooperative borrowers in greatest need of the benefits associated with prepayment, as determined by the Administrator; and "(B) such other eligibility criteria as the Administrator determines are necessary to carry out this subsection. "(e) Any guarantee of a loan prepaid under this section shall be fully assignable under the provisions of section 306 of this Act and transferable. However, the Administrator may require that any such guarantee, if transfered or assigned, be transferred or assigned to a loan or security that, if sold, will be grouped with nonguaranteed loans or securities and sold in a manner to ensure that such sale will not unreasonably compete with the marketing of obligations of the United States. "SEC. 306B. SALE OR PREPAYMENT OF DIRECT OR INSURED LOANS.

"A direct or insured loan made under this Act shall not be sold or prepaid at a value less than the face value of any outstanding principal balance on such loan, except when sold to or prepaid by the borrower at the lesser of the outstanding principal balance due on the loan or the loan's present value discounted from the face value at maturity at the rate set by the Administrator. The exception contained in the preceding sentence shall be effective for the period ending September 30, 1987.". (b) CONFORMING AMENDMENT.—Chapter I of the Act entitled "An

Act making urgent supplemental appropriations for the fiscal year ending September 30, 1986, and for other purposes" (Public Law 99349), approved July 2, 1986, is amended by striking out the undesignated paragraph relating to the prepayment of loans by Rural Electrification and Telephone Systems. (c) REGULATIONS.—The Secretary of Agriculture shall issue regulations to implement this section within 60 days after the date of enactment of this Act. Such regulations— (1) shall facilitate prepayment of loans under section 306A of the Rural Electrification Act of 1936, as added by subsection (a); and (2) may not require any rural utility that is a borrower of loans subject to section 306A to make unreasonable reductions in rates to its customers as a condition of such prepayment.

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Subtitle C—Advance Deficiency Payments SEC. 1021. ADVANCE DEFICIENCY PAYMENTS.

7 USC 1445b-2 note.

Notwithstanding any other provision of law, the Secretary of Agriculture, in accordance with the criteria in section 107C of the Agricultural Act of 1949, shall make advance deficiency payments 7 USC 1445b-2. available for the 1987 crops of wheat, feed grains, upland cotton, and rice. The percentage of the projected payment rate used in computing such payments shall not be less than (1) 40 percent in the case of wheat and feed grains, and (2) 30 percent in the case of rice and upland cotton.

Subtitle D—Farm Credit Institutions SEC. 1031. SHORT TITLE.

This subtitle may be cited as the "Farm Credit Act Amendments of 1986".

Farm Credit Act Amendments of 1986. 12 USC 2001 note.

SEC. 1032. POLICY.

Section 1.1 of the Farm Credit Act of 1971 (12 U.S.C. 2001) is Loans. amended by adding at the end thereof the following new subsection: "(c) It is declared to be the policy of Congress that the credit needs of farmers, ranchers, and their cooperatives are best served if the institutions of the Farm Credit System provide equitable and competitive interest rates to eligible borrowers, taking into consideration the creditworthiness and access to alternative sources of credit for borrowers, the cost of funds, including any costs of defeasance under section 4.8(b), the operating costs of the institution, including 12 USC 2159. the costs of any loan loss amortization under section 5.19(b), the cost Post, p. 1878. of servicing loans, the need to retain earnings to protect borrowers' stock, and the volume of net new borrowing. Further, it is declared to be the policy of Congress that Farm Credit System institutions take action in accordance with the Farm Credit Act Amendments of 1986 in such manner that borrowers from the institutions derive the greatest benefit practicable from that Act: Provided, That in no case is any borrower to be charged a rate of interest that is below competitive market rates for similar loans made by private lenders to borrowers of equivalent creditworthiness and access to alternative credit.". SEC. 1033. TERMINATION OF FARM CREDIT ADMINISTRATION APPROVAL OF INTEREST RATES CHARGED BY SYSTEM INSTITUTIONS.

(a) FEDERAL LAND BANKS.—The first sentence of section 1.7 of the Farm Credit Act of 1971 (12 U.S.C. 2015) is amended by striking out ", with the approval of the Farm Credit Administration as provided in section 4.17 of this Act". O> FEDERAL INTERMEDIATE CREDIT BANKS.—The second sentence of t) section 2.4 of the Farm Credit Act of 1971 (12 U.S.C. 2075) is amended by striking out "with the approval of the Farm Credit Administration as provided in section 4.17 of this Act". (c) BANKS FOR COOPERATIVES.—The first sentence of section 3.10(a) of the Farm Credit Act of 1971 (12 U.S.C. 2131(a)) is amended by striking out ", with the approval of the Farm Credit Administration as provided in section 4.17 of this Act".

71-19A 0 - 89 - A: QL. 3 Part3

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PUBLIC LAW 99-509—OCT. 21, 1986

SEC. 1034. CERTAIN TRANSACTIONS WITH RESPECT TO SYSTEM OBLIGATIONS. .: e t c '.

^

Contracts.

12 USC 2211.

Section 4.8 of the Farm Credit Act of 1971 (12 U.S.C. 2159) is amended by— (1) inserting the designation "(a)" after the heading; and (2) adding at the end thereof the following: "(b) Through December 31, 1988, each bank of the System, in addition to purchasing obligations as authorized by this Act, may, with the prior approval of the Farm Credit Administration and subject to such conditions as it may establish, (1) reduce the cost of its borrowings by doing one or more of the following: (A) contracting with a third party, or an entity that is established as a limited purpose System institution under section 4.25 and that is not to be included in the combined financial statements of other System institutions, with respect to the payment of interest on the bank's obligations and the obligations of other banks incurred before January 1, 1985, in consideration of the payment of market interest rates on such obligations, plus a premium, or (B) for the period July 1, 1986, through December 31, 1988, capitalizing interest costs on obligations incurred before January 1, 1985, in excess of the estimated interest costs on an equivalent amount of Farm Credit System obligations at prevailing market rates on such obligations of similar maturities as of the date of the enactment of this subsection, or (C) taking other similar action; and (2) amortize, over a period of not to exceed 20 years, the capitalization of the premium, capitalization of interest expense, or like costs of any action taken under clause (1).". ^ . SEC. 1035. DETERMINATION OF INTEREST RATES.

Loans. State and local governments.

Section 4.17 of the Farm Credit Act of 1971 (12 U.S.C. 2205) is amended by striking out the first sentence and inserting in lieu thereof the following: "Interest rates on loans from institutions of the Farm Credit System shall not be subject to any interest rate limitation imposed by any State constitution or statute or other laws. Such limitation is preempted for purposes of this Act.". SEC. 1036. TERMINATION OF FARM CREDIT ADMINISTRATION APPROVAL OF INTEREST RATES CHARGED ON DIRECT AND DISCOUNTED LOANS.

Section 5.17(a)(5)(A) of the Farm Credit Act of 1971 (12 U.S.C. 2252(a)(5)(A)) is amended by striking out "and on loans made or discounted by such institutions". SEC. 1037. ACCOUNTING.

Reports. Banks and banking. Loans. Supra.

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Section 5.19(b) of the Farm Credit Act of 1971 (12 U.S.C. 2254(b)) is amended by striking out the second sentence and inserting in lieu thereof the following: "Each such report shall contain financial statements prepared in accordance with generally accepted accounting principles, except with respect to any actions taken by any banks of the System under section 4.8(b), and contain such additional information as the Farm Credit Administration by regulation may require. Notwithstanding the provisions of the preceding sentence and any other provision of this Act, for the period July 1, 1986, through December 31, 1988, the institutions of the Farm Credit System may, on the prior approval of the Farm Credit Administration and subject to such conditions as it may establish, capitalize annually their provision for losses that is in excess of one-half of 1

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100 STAT. 1879

percent of loans outstanding and amortize such capitalized amounts over a period not to exceed 20 years.".

TITLE II—BANKING AND HOUSING PROGRAMS SEC. 2001. SALE OF RURAL HOUSING LOANS.

(a) REQUIRED SALES TO PUBLIC.—The Secretary of Agriculture shall take such actions as may be necessary to ensure that loans made under title V of the Housing Act of 1949 are sold to the public in amounts sufficient to provide a net reduction in outlays of not less than $1,715,000,000 in fiscal year 1987 from the proceeds of such sales.

42 USC 1487

42 USC 1471.

(b) PROCEDURES AND TERMS OF SALES.— (1) ESTABLISHMENT OF GUIDELINES.—The

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Secretary of Agriculture shall establish specific guidelines for the sale of loans under subsection (a). The guidelines shall address the procedures and terms applicable to the sale of the loans, including the kind of protections that should be provided to borrowers and terms that will ensure that the sale of the loans will be made at the lowest practicable cost to the Federal Government. (2) ASSISTANCE BY FEDERAL FINANCING BANK.—In selling loans to the public under subsection (a), the Secretary of Agriculture shall use the Federal Financing Bank as an agent to sell the loans, unless the Secretary determines that the sale of loans directly by the Secretary will result in a higher rate of return to the Federal Government. If the Secretary determines to sell loans directly under this paragraph, the Secretary shall notify the Federal Financing Bank of such determination and the loans involved and, to the extent practicable, shall implement any reasonable recommendations that may be made by the Federal Financing Bank with respect to the procedures and terms applicable to the sale.

(c) REPORTS TO CONGRESS.— (1) NOTIFICATION OF INITIAL LOAN SALE.—Not

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3

less than 20 days before the initial sale of loans under subsection (a), the Secretary of Agriculture shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives containing an estimate of the amount of the discount at which loans will be sold at such initial sale and an estimate of the discount at which loans will be sold at each subsequent sale during fiscal year 1987. (2) REPORTS BY SECRETARY.—The Secretary of Agriculture shall submit periodic reports to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives setting forth the activities of the Secretary under this section. Each report shall include the guidelines established under subsection (b)(1), a description of the loans sold under subsection (a), and an analysis of the net reduction in outlays provided by the sale of the loans. The Secretary shall submit the first report under this paragraph not later than 60 days after the date of the enactment of this Act, and shall submit subse-

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Page:United States Statutes at Large Volume 100 Part 3.djvu/72

 100 STAT. 1880

Records.

,.,

42 USC 1487.

PUBLIC LAW 99-509—OCT. 21, 1986

quent reports each 60 days thereafter through the end of fiscal year 1987. (3) REPORTS BY COMPTROLLER GENERAL.—The Comptroller General of the United States shall conduct an audit and evaluation of the activities of the Secretary of Agriculture described in each report submitted under paragraph (1) or (2), in accordance with such regulations as the Comptroller General may prescribe. The Comptroller General shall have access to such books, records, accounts, and other materials of the Secretary as the Comptroller General determines necessary to conduct each such audit and evaluation. The Comptroller General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report setting forth the results of each such audit and evaluation. (d) RELATION TO OTHER LAW.—The sale of loans under this section shall not be subject to paragraph (2) or (3) of section 517(d) of the Housing Act of 1949. SEC. 2002. SALE OF EXPORT-IMPORT BANK LOANS.

The Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.) is amended by adding at the end the following new section: 12 USC 635i-4.

"SEC. 16. SALE OF BANK LOANS. "(a) REQUIRED SALES TO PUBLIC.—The Board of Directors shall

take such actions as may be necessary to ensure that loans made by the Bank under this Act are sold to the public in amounts sufficient to provide a net reduction in outlays of not less than $1,500,000,000 in fiscal year 1987 from the proceeds of such sales. "(b) PROCEDURES AND TERMS OF SALES.— "(1) ESTABLISHMENT OF GUIDELINES.—The

Board of Directors shall establish specific guidelines for the sale of loans under subsection (a). The guidelines shall address the procedures and vii terms applicable to the sale of the loans, including terms that will ensure that the sale of the loans will bring the highest possible return to the Federal Government. / "(2) ASSISTANCE BY FEDERAL FINANCING BANK.—In selling loans to the public under subsection (a), the Board of Directors shall use the Federal Financing Bank as an agent to sell the loans, unless the Board of Directors determines that the sale of loans directly by the Export-Import Bank will result in a higher rate of return to the Federal Government. If the Board of Directors determines to sell loans directly under this paragraph, the Board shall notify the Federal Financing Bank of such determination and the loans involved and, to the extent practicable, shall implement any reasonable recommendations that may be made by the Federal Financing Bank with respect to the procedures and terms applicable to the sale. "(c) REPORTS TO CONGRESS.— "(1) NOTIFICATION OF INITIAL LOAN SALE.—Not

less than 20 days before the initial sale of loans under subsection (a), the Board of Directors shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives containing an estimate of the amount of the discount at which loans will be sold at such initial sale

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 PUBLIC LAW 99-509—OCT. 21, 1986

100 STAT. 1881

and an estimate of the discount at which loans will be sold at each subsequent sale during fiscal year 1987. "(2) REPORTS BY BANK.—The Board of Directors shall submit periodic reports to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives setting forth the activities of the Board of Directors under this section. Each such report shall include the guidelines established under subsection (b)(1), a description of the loans sold under subsection (a), and an analysis of the net reduction in outlays provided by the sale of such loans. The Board of Directors shall submit the first report under this paragraph not later than 60 days after the date of the enactment of this Act, and shall submit subsequent reports each 60 days thereafter through the end of fiscal year 1987. "(3) REPORTS BY COMPTROLLER GENERAL.—The Comptroller General of the United States shall conduct an audit and evaluation of the activities of the Board of Directors described in each report submitted under paragraph (1) or (2), in accordance with such regulations as the Comptroller General may prescribe. The Comptroller General shall have access to such books, records, accounts, and other materials of the Board of Directors as the Comptroller General determines necessary to conduct each such audit and evaluation. The Comptroller General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report setting forth the results of each such audit and evaluation. "(d) SECURITIES LAWS NOT APPLICABLE TO SALES.—The sale of any loan under this section shall be deemed to be a sale of exempted securities within the meaning of section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) and section 3(a)(12) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(12)). The Bank shall file with the Securities and Exchange Commission such annual and other reports with regard to such securities as the Commission shall determine to be appropriate in view of the special character of the Bank and its operations as may be necessary in the public interest or for the protection of investors.".

TITLE III—ENERGY AND ENVIRONMENTAL PROGRAMS Subtitle A—Distribution of Petroleum Overcharge Funds SEC. 3001. SHORT TITLE.

This subtitle may be cited as the "Petroleum Overcharge Distribution and Restitution Act of 1986". SEC. 3002. RESTITUTIONARY AMOUNTS COVERED.

(a) IN GENERAL—This subtitle (other than section 3005)— (1) specifies the procedure for the disbursement of funds collected, including interest thereon, by the Secretary or the courts pursuant to the Emergency Petroleum Allocation Act of

Records.

Reports.

Petroleum Overcharge Distribution and Restitution Act of 1986. 15 USC 4501 note. 15 USC 4501.

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Page:United States Statutes at Large Volume 100 Part 3.djvu/74

 100 STAT. 1882 15 USC 751 note; 12 USC 1904 note.

iBicMsfl

96 Stat. 1919.

Securities. Banks and banking.

15 USC 4502.

PUBLIC LAW 99-509—OCT; 21, 1986

1973 or the Economic Stabilization Act of 1970 (and the regulations issued thereunder) as restitution for actual or alleged violations of such Acts or regulations; and (2) subject to subsection (c), applies to— (A) any amount of such funds held in escrow by the Secretary through accounts administered by the Secretary of the Treasury on or after the date of enactment of this Act; and (B) any amount of such funds determined at any time, pursuant to judicial or administrative proceedings (including any settlement agreement or declaratory judgment) instituted by the Secretary to enforce such Acts and regulations, to be amounts paid for such actual or alleged violations, including any such amounts held in escrow by any court. (b) SPECIAL RULE.—Amounts described in subsection (a)(2) and held in an escrow account by a court before the date of enactment of this Act may continue to be held by such court but shall be disbursed, together with any interest thereon, by the Secretary or, as appropriate, by the court only in accordance with the provisions of this subtitle. (c) EXCLUSIONS.—Subsection (a)(2) does not apply to— (1) any amount actually disbursed before the date of enactment of this Act to any person or class of persons pursuant to section 155 of Public Law 97-377 or any final judicial or administrative order or judgment (including any settlement agreement or declaratory judgment); (2) any amount to which any person or class of persons has an enforceable right, created or vested, or governed by the terms and conditions of the settlement approved on July 7, 1986, in In Re: the Department of Energy Stripper Well Exemption Litigation, M.D.L. No. 378, in the United States District Court for the District of Kansas; and (3) any amount designated by judicial or administrative order or judgment (including any settlement agreement or declaratory judgment) for disbursement at any time to any specific person or class of persons— (A) identified in such order or judgment as injured by the violation or alleged violation of the Acts described in "n * ' r > '; subsection (a)(1) (including the regulations thereunder); or (B) identified in such order or judgment issued before the date of enactment of this Act for indirect restitution. (d) ESCROW ACCOUNTS.—Subject to subsections (b) and (c), the amounts covered by subsection (a) shall be held in appropriate escrow accounts administered for the Secretary by the Secretary of the Treasury. (e) INTEREST.—Consistent with the disbursement requirements of this subtitle, the Secretary of the Treasury shall provide that amounts described in subsection (a) shall earn interest at the maximum rate earned on investments of Federal trust funds by the Secretary of the Treasury in short-term and long-term securities issued by the Federal Government (including minority bank investments). SEC. 3003. IDENTIFICATION AND DISBURSEMENT OF RESTITUTIONARY AMOUNTS.

(a) IN GENERAL.—(1) Subject to paragraph (2)—

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 PUBLIC LAW 99-509—OCT. 21, 1986

100 STAT. 1883

(A) all rulings, policies, or other statements (including any administrative order or settlement agreement) issued after the date of the enactment of this Act by any office, official, or employee of the Department of Energy; and (B) all orders, including declaratory judgments, issued by any court after the date of the enactment of this Act, shall be consistent with the provisions of this subtitle. (2) Nothing in this section shall affect the settlement approved on July 7, 1986, in In Re: the Department of Energy Stripper Well Exemption Litigation, M.D.L, No. 378, in the United States District Court for the District of Kansas. (b) DISBURSEMENT OF RESTITUTIONARY AMOUNTS AS DIRECT RESTITUTION TO INJURED PERSONS.—(1) The Secretary shall, through the

Office of Hearings and Appeals of the Department of Energy, conduct proceedings expeditiously in accordance with subpart V regulations for the purpose of, to the maximum extent possible— (A) identifying persons or classes of persons injured by any actual or alleged violation of the petroleum pricing and allocation regulations issued pursuant to the Emergency Petrdleum Allocation Act of 1973 or the Economic Stabilization Act of 1970; (B) establishing the amount of any injury incurred by such persons; and (C) making restitution, through the disbursement of amounts in the escrow accounts described in subsections (h) and (d) of section 3002, to such persons. (2) In conducting such proceedings, the Secretary shall take into consideration the reports released pursuant to several orders of the applicable Federal district court in In Re: the Department of Energy Stripper Well Exemption Litigation, M.D.L. No. 378, in the United States District Court for the District of Kansas. (c) DETERMINATION OF EXCESS AMOUNT TO B E USED FOR INDIRECT

RESTITUTION.—(1) Within 45 days after the date of the enactment of this Act in the case of fiscal year 1987, and within 45 days after the beginning of each fiscal year after fiscal year 1987, the Secretary shall, using the best information available to the Secretary, determine and publish (along with a justification thereof) in the Federal Register the amount held in the escrow accounts described in subsections (b) and (d) of section 3002 that is in excess of the amount that will be needed to make restitution to persons or classes of persons in accordance with subsection (b)(1) of this section and to meet other commitments of such accounts (including the requirements of section 155 of Public Law 97-377). In making such determination, the Secretary shall give primary consideration to assuring that at all times sufficient funds (including a reasonable reserve) are set aside for making such restitution and meeting such other commitments. (2) The Secretary shall make public the information referred to in the first sentence of paragraph (1). (d) DISBURSEMENT OF EXCESS AMOUNT AS INDIRECT RESTITUTION FOR ENERGY CONSERVATION PROGRAMS.—(1) After the publication of

the determination of an excess amount under subsection (c) for a fiscal year, the Secretary shall promptly provide for the disbursement of a portion or all of such excess amount for use in energy conservation programs. The amount so disbursed for a fiscal year shall be the smaller of— (A) $200,000,000 minus the amount of Federal funds appropriated for energy conservation programs for such fiscal year; or

15 USC 751 note. 12 USC 1904 note.

Reports.

 * Ugi

Federal Register, publication.

96 Stat. 1919.

Public information.

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 100 STAT. 1884

State and local governments.

15 USC 4503.

PUBLIC LAW 99-509—OCT. 21, 1986

(B) the amount determined under subsection (c) to be the excess amount for such fiscal year. (2) After determining the amount to be made available under paragraph (1), the Secretary shall apportion such amount among each of the energy conservation programs in a manner that will provide funding under this subtitle for the fiscal year concerned for each of such programs in the same proportionate amount that was provided for each of the programs by the Congress for fiscal year 1986. The Secretary shall then make available each amount apportioned for use under an energy conservation program in the same manner, to the same extent, under the same rulings and regulations, and for the same uses that Federal appropriated funds are made available and used under such program. (3) The Secretary shall require that amounts made available under this subsection are used to supplement, and not supplant, funds otherwise available for energy conservation activities under Federal or State law. SEC. 3004. DEPOSIT OF REMAINDER OF EXCESS AMOUNT INTO THE TREASURY AS INDIRECT RESTITUTION.

The amount that remains from the excess amount described in section 3003(c) after all disbursements have been made for a fiscal year under section 3003(d) shall be deposited by the Secretary of the Treasury into the general fund of the Treasury. 15 USC 4504.

. -,: .' '

15 USC 751 note. 12 USC 1904 ^°^-

i

'

15 USC 772.

SEC. 3005. STATUTE OF LIMITATION.

(a) IN GENERAL.—(1) Except as provided in subsection (b), the commencement of a civil enforcement action shall be barred unless such action is commenced before the later of— (A) September 30, 1988; or . (B) six years after the date of the violation upon which the action is based. (2) For purposes of paragraph (1), the term "commencement of a civil enforcement action" means— (A) the signing and issuance of a proposed remedial order against any person for filing with the Office of Hearings and Appeals of the Department of Energy; or (B) the filing of a complaint with the appropriate district court of the United States. (3) For purposes of this section, the term "civil enforcement action" means an administrative or judicial civil action by the Secretary under the Emergency Petroleum Allocation Act of 1973 or the Economic Stabilization Act of 1970 (or the regulations issued thereunder) for the enforcement of any violation of such Acts or regulations. (b) EXCEPTIONS.—(1) In computing the periods established in subparagraphs (A) and (B) of subsection (a)(1), there shall be excluded any period— (A) during which any person who is or may become the sulDJect of a civil enforcement action is outside the United States, has absconded or concealed himself, or is not subject to legal process; (B) during which facts material to the establishment and maintenance of a civil enforcement action could not be known; (C) occurring before full compliance with any subpoena or special report order issued to any person under section 13 of the Federal Energy Administration Act of 1974, and such additional

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 PUBLIC LAW 99-509—OCT. 21, 1986

100 STAT. 1885

period (not to exceed 12 calendar months) after such compliance for the Secretary to consider the results thereof and commence a civil enforcement action; (D) during the pendency of any relevant criminal action under the Acts or regulations described in subsection (a)(1) during which a civil enforcement action is held in abeyance as a result of prosecutorial discretion and with or without a stay, and such additional period (not to exceed 12 calendar months) after a final judicial order or dismissal of such criminal action to commence a civil enforcement action; (E) before the issuance of an order that constitutes final agency action on a request for adjustment from any rule, regulation, or order under section 504 of the Department of Energy Organization Act, and such additional period (not to exceed 12 calendar months) to commence a civil enforcement action; or (F) of extension, to which the Secretary and the defendant have consented in writing, before the expiration of the time periods prescribed in subsection (a)(1). (2) The provisions of subsection (a) shall not affect or apply to any civil enforcement action commenced before, on, or after the date of enactment of this Act and remanded by the Office of Hearings and Appeals, the Federal Energy Regulatory Commission, or the court for further action of any kind. (3) The provisions of subsection (a) shall not apply to any agency orders issued under the Acts or regulations described in subsection (a)(1) or to regulations issued under this Act, other than a proposed remedial order subject to this section.

.., ].

42 USC 7194.

(c) EXPRESSION OF INTENT.—(1) It is the intent of the Congress

that— (A) the Secretary and the Administrator of the Economic Regulatory Administration shall, to the greatest extent possible and within the time frames specified on September 12, 1986, by such Administrator to the Committee on Energy and Commerce of the House of Representatives, commence civil enforcement I actions with respect to all cases known by such Administrator as of the date of the enactment of this Act and designated by such Administrator as "prelitigation cases", unless such an action is found not to be warranted; (B) the Secretary and such Administrator not delay civil enforcement actions so as to cause the limitation in subsection (a)(1) to apply to any such case; (C) any negotiations for the purpose of settlement of alleged violations not delay the commencement of a civil enforcement . action; and (D) the Department of Justice cooperate in ensuring that activities necessary, including the enforcement of subpoenas, to commence civil enforcement actions are carried out in a timely manner. (2) Any failure to comply with the time frames described in paragraph (1)(A) shall not be considered for any purpose in any administrative or judicial proceeding subsequently commenced. (d) END OF INVESTIGATIONS AND AUDITS.—Notwithstanding any

other provision of law, the Secretary shall not initiate, after January 1, 1987, any audit or investigation of alleged civil violations of the Acts or regulations described in subsection (a)(1) for the purpose of commencement of any civil enforcement action. Nothing in this subsection shall affect or apply to any audit or investigation con-

v, i::

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 100 STAT. 1886

42 USC 7193, '^194.

15 USC 4505.

PUBLIC LAW 99-509—OCT. 21, 1986

ducted with respect to any civil enforcement action commenced (within the limitation established by subsection (a)(1)) before, on, or after the date of the enactment of this Act. Nothing in this subsection shall limit the authority of the Secretary to continue any audit or investigation initiated before January 1, 1987. (e) LIMITATION ON REVIEW.—Any review of a final agency action determined under section 503 or 504 of the Department of Energy Organization Act may not be initiated in any court by any person subject to such action after— (1) 60 days after the effective date of that action; or (2) 90 days after the date of the enactment of this Act, whichever occurs later. (f) OVERSIGHT.—(1) In order to ensure the expeditious, effective, and efficient resolution of all civil enforcement actions (whether or not in administrative or judicial litigation) and all cases pending at the Office of Hearings and Appeals under subpart V regulations, the Secretary shall— (A) maintain a personnel level for the compliance program of the Economic Regulatory Administration of 170 full-time equivalents for fiscal year 1987, subject to normal attrition and subject to the provisions of any appropriation Act enacted for such fiscal year concerning such program; and (B) maintain for the remainder of the program an adequate mix of lawyers, auditors, technical, clerical, and administrative personnel. (2) By July 1, 1987, and by July 1 of each year thereafter, the Administrator of the Economic Regulatory Administration shall provide to the Committee on Energy and Commerce of the House of Representatives and to the Committee on Energy and Natural Resources of the Senate the full-time equivalent level necessary for such compliance program for the next fiscal year and the basis for that level. (3) The Secretary shall, in any fiscal year, provide a notice of at least 30 days to such Committees before initiating any reduction of force at the Economic Regulatory Administration. Such notice shall provide at least— (A) the reasons for such reduction; (B) the impact on the mix of personnel and on all cases, 'IV i whether or not in litigation, including the subpart V regulation rtOii proceedings; and (C) the expected costs and savings for the applicable fiscal year. (4) The Administrator of the Economic Regulatory Administration shall keep such Committees fully and currently informed about the status (including delays, settlement negotiations, and other pertinent matters) of all enforcement cases (whether or not in litigation) and subpart V regulation proceedings. SEC. 3006. REPORTS. -'• (a) REPORT ON RECEIPTS AND DISBURSEMENTS.—The Secretary shall

transmit, not later than 60 days after the date of the enactment of this Act, a report to the committees referred to in subsection (d) containing a clear and complete statement of all receipts, disbursements, and commitments of restitutionary amounts, as of such date of enactment, by the Secretary pursuant to— (1) any judicial or administrative proceeding (including any settlement agreement or declaratory judgment) instituted at

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Page:Democracy and Education.djvu/155

136 Lastly, the aim of following nature means to note the origin, the waxing, and waning, of preferences and interests. Capacities bud and bloom irregularly; there is no even four-abreast development. We must strike while the iron is hot. Especially precious are the first dawnings of power. More than we imagine, the ways in which the tendencies of early childhood are treated fix fundamental dispositions and condition the turn taken by powers that show themselves later. Educational concern with the early years of life—as distinct from inculcation of useful arts—dates almost entirely from the time of the emphasis by Pestalozzi and Froebel, following Rousseau, of natural principles of growth. The irregularity of growth and its significance is indicated in the following passage of a student of the growth of the nervous system. "While growth continues, things bodily and mental are lopsided, for growth is never general, but is accentuated now at one spot, now at another.… The methods which shall recognize in the presence of these enormous differences of endowment the dynamic values of natural inequalities of growth, and utilize them, preferring irregularity to the rounding out gained by pruning will most closely follow that which takes place in the body and thus prove most effective."

Observation of natural tendencies is difficult under conditions of restraint. They show themselves most readily in a child's spontaneous sayings and doings,—that is, in those he engages in when not put at set tasks and when not aware of being under observation. It does not follow that these tendencies are all desirable because they are natural; but it does follow that since they are there, they are operative and must be taken account of. We must see to it that the desirable ones have an environment which keeps them active, and that their activity shall control the direction the others take and thereby induce the disuse of the latter because they lead to nothing. Many tendencies that trouble parents when

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