S 16312"(D) a swap participant that receives a

transfer in connection with a swap agree-ment, as defined in section 101(49 of thistitle, takes for value to the extent of suchtransfer".

Sgc. 5. Section 553(b)(1) of title 11, UnitedStates Code, is amended by Inserting"362(b)(14)," after "362(b)(7),".

SEc. 6. Subchapter III of chapter 5 of title11, United States Code, is amended byadding at the end thereof the following*"9560. Contractual right to terminate a swap

agreement"The exercise of any contractual rights of

a swap participant to cause the terminationof a swap agreement because of a conditionof the kind specified In section 365(e)(1) ofthis title or to set off or net out any termi-nation values or payment amounts arisingunder or in connection with one or moreswap agreements shall not be stayed, avoid-ed, or otherwise limited by operation of anyprovision of this title or by order of a courtor administrative agency in any proceedingunder this title. As used in this section, theterm 'contractual right' includes a right,whether or not evidenced in writing, arisingunder common law, under law merchant orby reason of normal business practice.".

PERSONAL PRIVACY WITH RE-SPECT TO VIDEOTAPES,AUDIOVISUAL MATERIALS,AND LIBRARY MATERIALS ORSERVICESMr. BYRD. Mr. President, I ask

unanimous consent that the Senateproceed to the immediate consider-ation of Calendar Order No. 1075, S.2361.

The PRESIDING OFFICER. Thebill will be stated by title.

The assistant legislative clerk readas follows:

A bill (S. 2361) to amend title 18, UnitedStates Code, to preserve personal privacywith respect to the rental, purchase, or de-livery of video tapes or similar audiovisualmaterials and the use of library materials orservices.

The PRESIDING OFFICER. Isthere objection to the immediate con-sideration of the bill?

There being no objection, the Senateproceeded to consider the bill whichhas been reported from the Commit-tee on the Judiciary, with an amend-ment to strike all after the enactingclause and insert in lieu thereof, thefollowing:

8. 2361SECMlON I. SIIORT TITL.

This Act may be cited as the "Video Priva-cy Protection Act of 1988".SE. ZCIHAPTER 121 AMENDIENr.

(a) IN GENERAL.-Chapter 121 of title 18,United States Code, is amended-

(1i by redesignating section 2710 as sec-tion 2711; and

(2) by inserting after section 2709 the fol-lowing:"2710. Wrongful disclosure of 'ideo tape rental or

sale records"(A) DEFIN'IToNs.-For purposes of this sec-

tion-"(1) the term 'consumer' means any renter,

purchaser, or subscriber of goods or servicesfrom a video tape service provider;

"(2) the term 'ordinary course of business'means only debt collection activities, orderfulfillment, request processing, and thetransfer of ownership;

CONGRESSIONAL RECORD - SENATE"(3) the term 'personally identifiable in-

formation' includes information whichidentifies a person as having requested orobtained specific video materials or servicesfrom a video tape service provider or li-bra ry; and

"(4) the term 'video tape service provider'means any person, engaged in the businessof rental, sale, or delivery of prerecordedvideo cassette tapes or similar audio visualmaterials, or any person or other entity towhom a disclosure is made under paragraph(bU2)(D), but only with respect to the infor-mation contained in the disclosure.

"(b) VIDEO TAPE' RENTAL AND SALEREcoRDs.-(1) A video tape service providerwho knowingly discloses, to any person, per-sonally identifiable information concerningany consumer of such provider shall beliable to the aggrieved person for the reliefprovided in subsection (di.

"(21 A video tape service provider may dis-close personally identifiable informationconcerning any consumer-

"(A) to the consumer;"(B) to any person with the informed,

written consent of the consumer given at thetime the disclosure is sought;

"(C to a law enforcement agency pursu-ant to a warrant issued under the FederalRules of Criminal Procedure, an equivalentState warrant, a grand jury subpoena, or acourt order;

"(Di to any person if the disclosure issolely of the names and addresses of con-sumers and if-

"(i) the video tape service provider hasprovided the consumer with the opportuni-ty, in a clear and conspicuous manner, toprohibit such disclosure; and

"(i the disclosure does not identify thetitle, description, or subject matter of anlivideo tapes or other audio visual material;however, the subject mutter of such materi-als may be disclosed if the disclosure is forthe exclusive use of marketing goods andservices directly to the consumer;

"E) to any person if the disclosure is inci-dent to the ordinary course of business ofthe video tape service provider; or

"(F) pursuant to a court order, in a civilproceeding upon a showing of compellingneed for the information that cannot be ac-commodated by any other means, If-

"(i) the consumer is given reasonablenotice, by the person seeking the disclosure,of the court proceeding relevant to the issu-ance of the court order; and

"(it) the consumer is afforded the opportu-nity to appear and contest the claim of theperson seeking the disclosure.If an order is granted pursuant to subpara-graph (Ci or (F), the court shall impose ap-propriate safeguards against unauthorizeddisclosure.

"(3) Court orders authorizing disclosureunder subparagraph (C) shall issue onlywith prior notice to the consumer and onlyif the law enforcement agency shows thatthere is probable cause to believe that therecords or other information sought are rele-vant to a legitimate law enforcement in-quiry. In the case of a State government au-thority, such a court order shall not issue ifprohibited by the law of such State. A courtissuing an order pursuant to this section, ona motion made promptly by the video tapeservice provider, may quash or modify suchorder if the Information or records requestedare unreasonably voluminous in nature or ifcompliance with such order otherwise wouldcause an unreasonable burden on such pro-vider.

' "(c) CIVIL AcrioN.-(I) Any person ag-grieved by any act of a person in violationof this section may bring a civil action in aUnited States district court.

October 14, 1988"(21 The court may award-"(A) actual damages but not less than liq-

uidated damages in an amount of $2500'"(B) punitive damages;,(Ci reasonable attorneys' fees and other

litigation costs reasonably Incurred,; and"(D) such other preliminary and equitable

relief as the court determines to be appropri-ate.

"(3) No action may be brought under thissubsection unless such action is begunwithin 2 years from the date of the act con-plained of or the date of discovery.

"(4) No liability shall result from lawfuldisclosure permitted by this section.

"(di PERSONALLV IDENTIFIABLE INFORMA-TIoN-Personally identifiable informationobtained in any manner other than as pro-vided in this section shall not be received Inevidence in any trial, hearing, arbitration,or other proceeding in or before any court,grand Jury, department, officer, agency, reg-ulatory body, legislative committee, or otherauthority of the United States, a State, or apolitical subdivision ofa State.

"(el DEsTRCTION OF OLD RECORDS.-Aperson subject to this section shall destroypersonally identifiable information as soonas practicable, but no later than one yearfrom the date the information is no longernecessary for the purpose for which it wascollected and there are no pending requestsor orders for access to such informationunder subsections (b)(2) or (c)(2) or pursu-ant to a court order.

"(f) SELECTION Of A FoRu.-Nothing inthis section shall limit rights of consumersor patrons otherwise provided under Stateor local law. A Federal court shall, in ac-cordance with section 1738 of title 28,United States Code, give preclusive effect tothe decision to any State or local court oragency in an action brought by a consumeror patron under a State or local law similarto this section. A decision of a Federal courtunder this section shall preclude any actionunder a State or local law similar to thissection.".

(b) CLERICAL AMENDENT.-The table of sec-tions at the beginning of chapter 121 of title18, United States Code, is amended-(1) in the item relating to section 2710, by

striking out "2710" and inserting "2711" inlieu thereof; and

(2) by inserting after the item relating tosection 2709 the following new item.:"2710. Wrongful disclosure of video tape

rental or sale records'"The amendment was agreed to.The bill was ordered to be engrossed

for a third reading, read the thirdtime, and passed.

The title was amended so as to read"A bill to amend title 18, United StatesCode, to preserve personal privacywith respect to the rental, purchase,or delivery of video tapes or similaraudio visual material."

AMENDMENT NO. 3702

(Purpose: To make technical corrections tothe committee substitute)

Mr. BYRD. Mr. President, on behalfof Mr. LEAHY, I submit an amendmentand ask for its immediate consider-ation.

THE PRESIDING OFFICER. Theamendment will be stated. The assist-ant legislative clerk read as follows:

The Senator from West Virginia (Mr.BYRD), for Mr. LEAHY, proposes an amend-ment numbered 3702.

October 1/, 1988 CODMr. BYRD. Mr. President, I ask

unanimous consent that reading of theamendment be dispensed with.

THE PRESIDING OFFICER. With-out objection, it is so ordered. Theamendment is as follows:

On page 9, strike out lines 18 and 19, andinsert in lieu thereof the following:

'1 2710. Wrongful disclosure of video tape rentalor sale records'.".On page 10, line 7, strike out "or library".On page 10, line 10, after "engaged In"

insert "interstate or foreign commerce in oraffecting".

On page 10, line 13, strike out "paragraph(b)(2)(D)" and insert in licu thereof "sub-paragraph (D) or (E) of subsectior (b)(2)".

On page 14, beginning with li,,e 8, strikeout through line 16, and insert i,.i lieu there-of the following:

"(0l Preemption.-The provisions of thissection prempt only the provisions of Stateand local law that require disclosure prohib-ited by this section.".

On page 14, strike out all after line 24 andinsert in lieu thereof the following:"2710. Wrongful disclosure of video tape

rental or sale records."The PRESIDING OFFICER. The

question Is on agreeing to the amend-ment.

The amendment (No. 3702) wasagreed to,

Mr. SIMON. Mr. President, I rise to-day in support of the Video PrivacyProtection Act which was introducedby my colleagues Senators LEAHY,GRASSLEY, SIMPSON, and I, to protectone of the most treasured liberties ofall, the right to privacy. There is nodenying that the computer age has rev-olutionalized our world. Over the past20 years we have seen remarkablechanges In the way each one of us goesabout our lives. Our children learnthrough computers. We bank by ma-chine. We watch movies in our livingrooms. These technological Innova-tions are exciting and as a Nation weshould be proud of the accomplish-ments we have made.

Yet as we continue to move ahead,we must protect time honored valuesthat are so central to this society, par-ticularly our right to privacy. Theadvent of the computer means notonly that we can be more efficientthan ever before, but that we have theability to be more intrusive than everbefore. Every day Americans areforced to provide to businesses andothers personal information withouthaving any control over where that In-formation goes. Computer records arekept on where we travel, what we eat,what we buy, what we watch and whatwe read. These records are a windowinto our loves, likes and dislikes. AsJustice Brandeis predicted over 40years ago in his famous dissent in theOlnstead wiretap case-

Time works changes, brings into existencenew conditions and purposes ... Subtlerand more far reaching means of invadingprivacy have become available . Waysmay some day be developed by which theGovernment. without removing papers fromsecret drawers, can reproduce them in courtand by which it will be enabled to expose to

JGRESSIONAL RECORD - SENATEa Jury the moat intimate occurences of thehome.

This point was brought home to meduring the course of the confirmationhearings on Judge Bork when Ilearned that a reporter had receivedfrom a local video store a list of themovies that Judge Bork and his familyhad rented. Who would guess that thechoice of movies one watches in theprivacy of the home would not be con-fidential?

The Video Privacy Protection Acttakes an important step in ensuringthat individuals will maintain controlover their personal Information whenrenting or purchasing a movie. Thebill specifically provides for a federalcause of action in the event a listwhich identifies the movies we watchis released. Since there are certain cir-cumstances in which it may be neces-sary f, r this Information to be di-vulged, the bill provides for some lim-ited exceptions to the prohibition, in-cluding an exemption to cover legiti-mate law enforcement activities whichhas been modified since introductionto meet the concerns expressed by theFBI.

No doubt In the days and yearsahead we will continue to make muchprogress in developing new technol-ogies. While I am fully supportive ofinnovation and growth, I remain com-mitted to protecting those principleswhich are so central to America. TheVideo Privacy Protection Act strikesthe necessary balance to ensure thatour privacy will not be lost as we moveahead. In closing, I want to thank allwho helped move this legislation andurge my colleagues in the House totake swift action as well.

Mr. LEAHY. Mr. President, theright of privacy is one of our mostcherished freedoms.

It shields us from the enormous ap-petite of large organizations of person-al Information.

It preserves our freedom to explorenew ideas and to question popular be-liefs without fear of criticism or re-crimination.

And it protects the individurlity re-flected in each of our unique likes anddislikes.

Privacy protection is an increasinglychallenging problem for the Congressin an information age. Governmentagencies and private corporations arekeeping more information, in a moredetailed manner, about more activltiesin our personal lives.

The Video Privacy Protectioal Actwill establish comprehensive privacyprotection for video tape users. It is atimely response to the need to protectprivate activities in an era of increas-ing information collection and dissemi-nation.

The Judiciary Committee reportedout favorably the Video Privacy Pro-tection Act. All of us on the committeeshare a strong interest in the passageof this bill. The reason is that we allremember the disclosure of the video

rental list of Judge Bork and hisfamily last fall.

That was outrageous. Together weon the committee have drafted a billthat will extend privacy protection toall Americans,

This bill makes explicit the right toinformation privacy-an increasinglyImportant part of the right to privacyin an age of automated Informationsystems, It seeks to strike the "delicatebalance," as described by the PrivacyProtection Study Commission In 1977,between the information needs of or-ganizations and each Individual'sdesire of confidentiality and controlover the records of personal activities.

In 1986 we enacted landmark privacylegislation-the Electronic Communi-cations Privacy Act. That law protect-ed communications from unlawfulInterception. This law will protect in-formation from unlawful disclosure.

It Is the most recent In a long line ofstatutes protecting the right of priva-cy. Beginning with the Fair Credit Re-porting Act of 1970 and continuing upto the Electronic Communications Pri-vacy Act, which I sponsored in 1986,we in the Congress have continuallyreaffirmed our commitment to theright of privacy. In 1973 we estab-lished privacy protection for educa-tional records. In 1974 we passed thelandmark Privacy Act that set up com-prehensive restrictions on Federalagencies' collection, use and disclosureof personally identifiable information.We protected tax records in 1976 andbank records in 1978; 1980 was theyear we passed legislation to protectnewsrooms from unannouncedsearches. And 1984, the year of Orwell,the U.S. Congress established compre-hensive privacy protection for cableservice subscribers. In each instance,the Congress has established statutoryprotections to extend the right of pri-vacy.

I am pleased to have worked withErol's, the Video Software Dealer's As-sociation, the Direct Marketing Asso-ciation, the [ACLU], the American Li-brary Association, the FBI, and theDepartment of Justice to develop a billthat establishes strong safeguards,clear guidelines, and workable com-mercial practices.

Erol's and the members of theDirect Marketing Association have es-tablished good policies to provide theircustomers with some control over thedissemination of transactional infor-mation. I support these efforts by theprivate sector to establish informationprivacy protection for their customers.Confidentiality provisions, "negativecheck-off' provisions, record destruc-tion policies, and enhanced securityfor automated systems containing per-sonal information make good businesssense and help safeguard the right ofinformation privacy. As we learnedwith the Electronic CommunicationsPrivacy Act, customers place greatervalue on services with clear privacyprotections.

S 16313

CONGRESSIONAL RECORD - SENATEA little more than It year ago, I

Joined with other members of the Ju-diciary Committee in denouncing thedisclosure of the video tape rental listof Judge Bork and his family. We werein the middle of a national debate overthe constitutional right to privacywith a Supreme Court nominee. In themiddle of that debate, a local newspa-per ran an insipid story about themovies Judge Bork and his familywatch in their home. That was amockery of privacy.

Today, after the dedicated work ofour committee members, we are pre-pared to pass legislation that will pre-vent such abuses in the future. It willreaffirm our commitment to the rightof privacy.

Few of us will ever undergo thepublic scrutiny of a Supreme Courtnominee, but all of us are entitled to areasonable expectation of privacy. It issimply no one's business what JudgeBork, PAT LEAHY or anyone else choosesto watch in their home.

I thank Senator GRASSLEY, SenatorSIMON, Senator SIMPSON, SenatorHUMI'HIEY. Senator THURMOND, andSenator BIDEN for their work in sup-port of this legislation. I would alsolike to thank Chairman BOB KASTEN-MEIER with whom I chaired a jointhearing on this bill and who has beenthe guiding force on the House side toensure enactment of the bill this ses-sion. I would also like to express myappreciation for the tireless work ofthe staff members who worked on thislegislation: Melissa Patack with Sena-tor GRASSLEY; Susan Kaplan with Sen-ator SIMON; Bill Myers with SenatorSIMPSON; George Smith with SenatorHUMPHREY; Terry Wooten and CindyBackburn with Senator THURMOND;Jeff Peck and Diana Huffman withSenator BIDEN; and Ginny Sloan withRepresentative KASTENMEIER. I alsothank Marc Rotenberg and Ann Har-kins on my staff for all their efforts.

Mr. GRASSLEY. Mr. President, Iam pleased to speak in support of theVideo Privacy Act of 1988, and at theoutset, I would like to thank SenatorLEAHY, as well as Senator SIMON andSenator SIMPSON, for their commit-ment and effort on this bill.

It was Senator SIMPSON who Identi-fied the problem this bill is intendedto correct just over 1 year ago. At thattime, a reporter released a list of thevideo tapes rented by Judge RobertBork and his family. Senator SIMPSON,speaking, I'm sure, for all the mem-bers of the Judiciary Committee,found this to be an outrageous inva-sion of privacy.

So, we went to work in an effort toensure that such activity would nothappen in the future.

We all want to live in a society thatvalues privacy. And we rightfully wantboth the Government and business tolive in a society that respects this basicright.

But privacy is not a generalizedright. And it is up to the legislature todefine and give meaning to privacy. As

our society grows more complex, legis-latures should be responsive to newtechnological threats to privacy. Thisis the role of the legislature In a dem-ocratic society.

The Video Privacy Act does Justthat, in a narrow area. Video storeswill be precluded from disclosing theircustomers names, addresses and specif-ic video tapes rented or bought by thecustomers. The bill does set forth lim-ited circumstances in which this infor-mation may be revealed. For example,law enforcement officials may obtainthis information with a warrant, grandjury subpoena, or an appropriate courtorder. And the bill allows for those en-gaged in direct marketing businessesto release mailing lists of their custom-ers, so long as the customers has had achance to say "no" to such mailing listdisclosures.

This bill imposes liability on thevideo store where the information isknowingly disclosed in violation of thebill's requirements. And under thecommon law of agency, an employermay be liable for the actions of its em-ployees where the employee actswithin the scope of his employment. Avideo store would, therefore, be bestadvised to educate its employees aboutthe bill's provisions and discipline em-ployees for unauthorized disclosures.A court would, no doubt, take suchemployers' actions into account in de-termining whether the employee wasacting within the scope of his job inthe event of a prohibited disclosure.

Mr. President, once again I thankmy colleagues for their work on andsupport of this legislation.

The PRESIDING OFFICER. Thebill is open to further amendment. Ifthere be no further amendments to beproposed, the question is on agreeingto the committee amendment i. thenature of a substitute, as amended.

The committee amendment in thenature of a substitute, as amended,was agreed to.

The PRESIDING OFFICER. Thequestion is on the engrossment andthird reading of the bill.

The bill was ordered to be engrossedfor a third reading, was read the thirdtime, and passed, as follows:

S. 2361Be it enacted by the Senate and 1House of

Representatives of the United States ofAmerica in Congress assembled,8ECiII)N I. SIIlOIT TITLE.

This Act may be cited as the "Video Priva-cy Protection Act of 1988".SEC. 2. VIIAI'TElI 121 ,.W5INIIENT.

(a) IN GENEixA.-Chapter 121 of title 18,United States Code, is amended-(1) by redesignating section 2710 as sec-

tion 2711: and(2) by Inserting after section 2709 the fol-

lowing:"9 2710. Wrongful diselfoure of video tape rental

or sale records"(a) DRFINITIONS--For purposes of this

section-"(1) the term 'consumer' means any

renter, purchaser, or subscriber of goods orservices from a video tape service provider;

"(2) the tern 'ordinary course of business'means only debt collection activities, orderfulfillment, request processing, and thetransfer of ownership;

"(3) tie term 'personally Identifiable in-formation' includes information which Iden-tifies a person as having requested or ob-tained specific video materials or servicesfrom a video tape service provider; and

"(4) the term 'video tape service provider'means any person, engaged in interstate orforeign commerce in or affecting the busi.ness of rental, sale, or delivery of prerecord-ed video cassette types or similar audiovisual materials, or any person or otherentity to whom a disclosure is made undersubparagraph (0) or (E) of subsection (b)(2)but only with respect to the informationcontained In the disclosure.

"(b) VIDEO TAPE RENTAL AND SALERECons,.-(1) A video tape service providerwho knowingly discloses, to any person, per-sonally identifiable Information concerningany consumer of such provider shall beliable to the aggrieved person for the reliefprovided in subsection (d).

"(2) A video tape service provider may dis-close personally Identifiable informationconcerning any consumer-

"(A) to tile consumer;"(B) to any person with the Informed,

written consent of the consumer given atthe time the disclosure is sought;

"(C) to a law enforcement agency pursu-ant to a warrant issued under the FederalRules of Criminal Procedure, an equivalentState warrant, a grand jury subpoena, or acourt order;

"(D) to any person if the disclosure issolely of the names and addresses of con-sumers and if-

"(i) the video tape service provider iasprovided the consumer with the opportuni-ty, In a clear and conspicuous manner, toprohibit such disclosure; and

"(11) the disclosure does not Identify thetitle, description, or Subject matter of anyvideo tapes or other audio visual material;however, the subject matter of such materi-als may be disclosed if the disclosure is forthe exclusive use of marketing goods andservices directly to the consumer;

"E) to any person if the disclosure Is Inci-dent to the ordinary course of business ofthe video (ape service provider; or"(P) pursuant to a court order, In a civilproceeding upon a showing of compellingneed for the information that cannot be ae-commodated by any other means, If-

"(i) the consumer is given reasonablenotice, by tie person seci.ng the disclosure,of the court proceeding relevant to the issu-ance of the court order; and

"(1i) the consumer is afforded the oppor-tunity to appear and contest the claim oftile person seeking the disclosure.If an order Is granted pursuant to subpara-graph (C) or (F), the court shall impose ap-propriate safeguards against unauthorizeddisclosure.

"(3) Court. orders authorizing disclosureunder subparagraph (C) shall issue onlywith prior notice to the consumer and onlyif the law enforcement agency shows thatthere is probable cause to believe that therecords or other information sought are rel-evant to a legitimate law enforcement In-quiry. In the case of a State government au-thority, such a court order shall not issue Ifprohibited by the law of such State. A courtissuing an order pursuant to this section, ona motion made promptly by the video tapeservice proviler, may quash or modify suchorder If the Information or records request-ed are unreasonably voluminous in natureor If compliance with such order otherwise

October 14, 1988S 16314

October 14, 1988 CONwould cause an unreasonable burden onsuch provider."(C) CIVIL AcT-oN,-() Any person ag-

grieved by any act of a person in violation ofthis section may bring a Vivil action in aUnited States district court.

"(2) The court may award-"(A) actual damages but not less than liq-

uidated damages in an amount of $2,500:"(B) punitive damages;"(C) reasonable attorneys' fees and other

litigation costs reasonably incurred; and"(D) such other preliminary and equitable

relief as the court determines to be appro-priate.

"(3) No action may be brought under thissubsection unless such action is begunwithin 2 years from the date of the act com-plained of or the date of discovery.

"(4) No liability shall result from lawfuldisclosure permitted by this section,I "(d) PERSONALLY IDENTIFIABLE INFORMA-

TION.-Personally identifiable informationobtained in any manner other than as pro-vided in this section shall not be received inevidence in any trial, hearing, arbitration,or other proceeding in or before any court,grand Jury, department, officer, agency, reg-ulatory body, legislative committee, or otherauthority of the United States, a State, or apolitical subdivision of a State.

"(e) DESTRUCTION OF OLD RECORDS.-Aperson subject to this section shall destroypersonally identifiable Information as soonas practicable, but no later than one yearfrom the date the information is no longernecessary for the purpose for which it wascollected and there are no pending requestsor orders for access to such informationunder subsections (b)(2) or (c)(2) or pursu-ant to a court order."(f) PREEMPTION.-The provisions of this

section preempt only the provisions of Stateor local law that require disclosure prohibit-ed by this section.".

(b) CLERICAL AMENDMENT.-The table ofsections at the beginning of chapter 121 oftitle 18, United States Code, is amended--

(1) in the item relating to section 2710, bystriking out "2710" and inserting "2711" inlieu thereof; and

(2) by inserting after the item relating tosection 2709 the following new item:"2710. Wrongful disclosure of video tape

rental or sale records.".

PUNISHMENT OF CORRUPTIONMr. BYRD. Mr. President, I ask

unanimous consent that the Senateproceed to the immediate consider-ation of Calendar Order No. 1078, S.2793, a bill to amend title 18 of theUnited States Code to punish corrup-tion.

The PRESIDING OFFICER. Thebill will be stated by title.

The assistant legislative clerk readas follows:

A bill (S. 2793) to amend title 18 of theUnited States Code to punish corruption.

The PRESIDING OFFICER. Isthere objection to the immediate con-sideration of the bill?

There being no objection, the Senateproceeded to consider the bill whichhad been reported from the Commit-tee on the Judiciary, with an amend-mnent.

On page 6, line 16, Strike "appointed".through and including the period on line 17,and insert "appointed.".

So as to make the bill read:

GRESSIONAL RECORD - SENATEBe it enacted by the Senate and House of

Representatives of the United States ofAmerica in Congress asscmbled,SECTION I. SHORT TITLE

This Act may be cited as the "Anti-Cor-ruption Act of 1988".SEC. 2. ()FFEN3E.

Chapter 11 of title 18, United States Code,is amended by adding at the end thereof thefollowing new section:"T 225. Public Corruption

"(a) Whoever, in a circumstance describedin subsection (c), deprives or defrauds, or at-tempts to deprive or to defiaud, by anyscheme or artifice, the inhabitants of aState or political subdivision of a State ofthe honest services of an official or employ-ee of such State or subdivision, shall befined under this title, or imprisoned for notmore than ten years (or, if the defendant in-tended that the scheme or artifice promoteconduct constituting an offense under thelaws of the United States or a State forwhich the maximum term of imprisonmentis greater than ten years, shall be impris-oned as required or authorized by the lawpunishing such offense or for not more thantwenty years, whichever is less), or both."(b) Whoever, in a circumstance described

in subsection (c), deprives or defrauds, or at-tempts to deprive or to defraud, by an3scheme or artifice, the inhabitants of &State or political subdivision of a State of afair and impartially conducted electionprocess In any primary, run-off, special, orgeneral election, through the procureme at,cast ing, or tabulation of ballots or voter ',g-istration forms which are false, fictitiaus,fraudulent, or illegal under the laws of theState in which the election is held, orthrough the filing of any false, fictitious orfraudulent report required to be filed underState law regarding an election campaign,shall be fined under this title or imprisonedfor not more than ten years, or both."(c) The circumstances referred to in sub-

sections (a) and (b) arc that-"(1) for the purpose of executing or con-

cealing such scheme or artifice or attempt-ing to do so, the actor-

"(A) places in any post office or author-ized depository for mail matter, any matteror thing whatever to be sent or delivered bythe Postal Service, or takes or receivestherefrom, any such matter or thing, orknowingly causes to be delivered by mail ac-cording to the direction thereon, or at theplace at which it is directed to be deliveredby the person to whom it is addressed, anysuch matter or thing;

"(B) transmits or causes to be transmittedby means of wire, radio, or television com-munication in interstate or foreign com-merce any writings, signs, signals, pictures,or sounds;

"(C) transports or causes to be transport-ed any person or thing, or induces anyperson to travel in or to be transported in,Interstate or foreign commerce; or

"(D) uses any facility of interstate or for-eign commerce; or

"(2) the scheme or artifice affects in anymanner or degree, or would if executed orconcealed so affect, interstate or foreigncommerce."(d) Whoever deprives or defrauds, or at-

tempts to deprive or defraud, by any schemeor artifice, the inhabitants of the UnitedStates of the honest services of a public offi-cial or person who has been selected to be apublic official shall be fined under this titleor imprisoned for not more than ten years(or, if the defendant intended that thescheme or artifice promote conduct consti-tuting an offense under the laws of theUnited States or a State for which the maxi-mum term of imprisonment is greater than

S 16315ten years, shall be imprisoned as required orauthorized by the law punishing such of-fense, or for not more than twenty years,whichever is less), or both.

"(e) Whoever being an official, or publicofficial, or person who has been selected tobe a public official, directly or indirectly,discharges, demotes, suspends, threatens,harasses, or, in any manner, discriminatesagainst any employee or official of theUnited States or any State or political sub-division of such State, or attempts to do so,in order to carry out or to conceal anyscheme or artifice described In this section,shall be fined under this title or subject toimprisonment of up to five years or both.

"(f)(1) Any employee or official of theUnited States or any State or political sub-division of such State who is discharged, de-moted, suspended, threatened, harassed, orin any other manner discriminated againstbecause of lawful acts done by the employeeas a result of a violation of subsection (e) orbecause of actions by the employee onbehalf of himself or others in furtheranceof a prosecution under this section Cinclud-ing investigation for, initiation of, testimonyfor, or assistance in such a prosecution) mayin a civil action, obtain all relief necessaryto make such individual whole. Such reliefshall include reinstatement with the sameseniority status such individual would havehad but for the discrimination, two timesthe amount of back pay, interest on theback pay, and compensation for any specialdamages sustained as a result of the dis-crimination, including litigation costs andreasonable attorney's fees,

"(2) An individual is not eligible for suchrelief if that individual participated in theviolation of this section with respect towhich such relief would be awarded.

"(g) For purposes of this section-"(1) the term 'State' means a State of the

United States, the District of Columbia,Puerto Rico, and any other territory or pos-session of the United States;

"(2) the term 'agency' means a subdivisionof the executive, legislative, judicial, orother branch of government, Including a de-partment, independent establishment, com-mission, administration, authority, board,and bureau, and a corporation or other legalentity established and subject to control bya government or governments for the execu-tion of a governmental or intergovernmen-tal program;

"(3) the terms 'public official' and 'personwho has been selected to be a public official'have the meaning set forth in section 201 ofthis title; the terms 'official', 'public offi-cial', and 'person who has been selected tobe a public official' shall also Include anyperson acting under color of official author-ity;

"(4) the term 'official' includes a personwho has been nominated or appointed to bean official or who has been officially in-formed that he or she will be so nominatedor appointed.".SEC. 3, WH1ITE COLLAR CRIME.

Chapter 63 of Title 18 of the UnitedStates Code is amended by adding a newsection as follows:"§ 1346. Scheme or artifice to defraud

"For the purposes of this chapter, tieterm 'scheme or artifice to defraud' includesa scheme or artifice to deprive an organiza-tion of the intangible right of honest serv-ices in which the defendant received or at-tempted to receive, for the defendant or an.other person, anything of value or in whichthe defendant intended or contemplatedloss or harm to the organization."