TITLE II--ENHANCED ENFORCEMENT AND PENALTIES AGAINST ALIEN
SMUGGLING; DOCUMENT FRAUD
Subtitle A--Enhanced Enforcement and Penalties Against Alien Smuggling

SEC. 201. WIRETAP AUTHORITY FOR INVESTIGATIONS OF ALIEN
SMUGGLING OR DOCUMENT FRAUD.

Section 2516(1) of title 18, United States Code, is
amended--
(1) in paragraph (c), by striking ``or section 1992
(relating to wrecking trains)'' and inserting ``section 1992
(relating to wrecking trains), a felony violation of section
1028 (relating to production of false identification
documentation), section 1425 (relating to the procurement of
citizenship or nationalization unlawfully), section 1426
(relating to the reproduction of naturalization or
citizenship papers), section 1427 (relating to the sale of
naturalization or citizenship papers), section 1541 (relating
to passport issuance without authority), section 1542
(relating to false statements in passport applications),
section 1543 (relating to forgery or false use of passports),
section 1544 (relating to misuse of passports), or section
1546 (relating to fraud and misuse of visas, permits, and
other documents)'';
(2) by striking ``or'' at the end of paragraph (l);
(3) by redesignating paragraphs (m), (n), and (o) as
paragraphs (n), (o), and (p), respectively; and
(4) by inserting after paragraph (l) the following new
paragraph:
``(m) a violation of section 274, 277, or 278 of the
Immigration and Nationality Act (8 U.S.C. 1324, 1327, or
1328) (relating to the smuggling of aliens);''.

SEC. 202. RACKETEERING OFFENSES RELATING TO ALIEN SMUGGLING.

Section 1961(1) of title 18, United States Code, as amended
by section 433 of Public Law 104-132, is amended--
(1) by striking ``if the act indictable under section 1028
was committed for the purpose of financial gain'';
(2) by inserting ``section 1425 (relating to the
procurement of citizenship or nationalization unlawfully),
section 1426 (relating to the reproduction of naturalization
or citizenship papers), section 1427 (relating to the sale of
naturalization or citizenship papers),'' after ``section 1344
(relating to financial institution fraud),'';
(3) by striking ``if the act indictable under section 1542
was committed for the purpose of financial gain'';
(4) by striking ``if the act indictable under section 1543
was committed for the purpose of financial gain'';
(5) by striking ``if the act indictable under section 1544
was committed for the purpose of financial gain''; and
(6) by striking ``if the act indictable under section 1546
was committed for the purpose of financial gain''.

SEC. 203. INCREASED CRIMINAL PENALTIES FOR ALIEN SMUGGLING.

(a) Commercial Advantage.--Section 274(a)(1)(B)(i) (8
U.S.C. 1324(a)(1)(B)(i)) is amended by inserting ``or in the
case of a violation of subparagraph (A)(ii), (iii), or (iv)
in which the offense was done for the purpose of commercial
advantage or private financial gain'' after ``subparagraph
(A)(i)''.
(b) Additional Offenses.--Section 274(a) (8 U.S.C. 1324(a))
is amended--
(1) in paragraph (1)(A)--
(A) by striking ``or'' at the end of clause (iii);
(B) by striking the comma at the end of clause (iv) and
inserting ``; or''; and
(C) by adding at the end the following new clause:
``(v)(I) engages in any conspiracy to commit any of the
preceding acts, or
``(II) aids or abets the commission of any of the preceding
acts,'';
(2) in paragraph (1)(B)--
(A) in clause (i), by inserting ``or (v)(I)'' after
``(A)(i)'';
(B) in clause (ii), by striking ``or (iv)'' and inserting
``(iv), or (v)(II)'';
(C) in clause (iii), by striking ``or (iv)'' and inserting
``(iv), or (v)''; and
(D) in clause (iv), by striking ``or (iv)'' and inserting
``(iv), or (v)'';
(3) in paragraph (2)(B), by striking ``be fined'' and all
that follows and inserting the following: ``be fined under
title 18, United States Code, and shall be imprisoned, in the
case of a first or second violation of subparagraph (B)(iii),
not more than 10 years, in the case of a first or second
violation of subparagraph (B)(i) or (B)(ii), not less than 3
nor more than 10 years, and for any other violation, not less
than 5 nor more than 15 years.''; and
(4) by adding at the end the following new paragraph:
``(3)(A) Any person who, during any 12-month period,
knowingly hires for employment at least 10 individuals with
actual knowledge that the individuals are aliens described in
subparagraph (B) shall be fined under title 18, United States
Code, or imprisoned for not more than 5 years, or both.
``(B) An alien described in this subparagraph is an alien
who--
``(i) is an unauthorized alien (as defined in section
274A(h)(3)), and
``(ii) has been brought into the United States in violation
of this subsection.''.
(c) Smuggling of Aliens Who Will Commit Crimes.--Clause (i)
of section 274(a)(2)(B) (8 U.S.C. 1324(a)(2)(B)) is amended
to read as follows:

[[Page H11793]]

``(i) an offense committed with the intent or with reason
to believe that the alien unlawfully brought into the United
States will commit an offense against the United States or
any State punishable by imprisonment for more than 1 year,''.
(d) Applying Certain Penalties on a Per Alien Basis.--
Section 274(a)(2) (8 U.S.C. 1324(a)(2)) is amended by
striking ``for each transaction constituting a violation of
this paragraph, regardless of the number of aliens involved''
and inserting ``for each alien in respect to whom a violation
of this paragraph occurs''.
(e) Sentencing Guidelines.--
(1) In general.--Pursuant to its authority under section
994(p) of title 28, United States Code, the United States
Sentencing Commission shall promulgate sentencing guidelines
or amend existing sentencing guidelines for offenders
convicted of offenses related to smuggling, transporting,
harboring, or inducing aliens in violation of section 274(a)
(1)(A) or (2) of the Immigration and Nationality Act (8
U.S.C. 1324(a)(1)(A), (2)(B)) in accordance with this
subsection.
(2) Requirements.--In carrying out this subsection, the
Commission shall, with respect to the offenses described in
paragraph (1)--
(A) increase the base offense level for such offenses at
least 3 offense levels above the applicable level in effect
on the date of the enactment of this Act;
(B) review the sentencing enhancement for the number of
aliens involved (U.S.S.G. 2L1.1(b)(2)), and increase the
sentencing enhancement by at least 50 percent above the
applicable enhancement in effect on the date of the enactment
of this Act;
(C) impose an appropriate sentencing enhancement upon an
offender with 1 prior felony conviction arising out of a
separate and prior prosecution for an offense that involved
the same or similar underlying conduct as the current
offense, to be applied in addition to any sentencing
enhancement that would otherwise apply pursuant to the
calculation of the defendant's criminal history category;
(D) impose an additional appropriate sentencing enhancement
upon an offender with 2 or more prior felony convictions
arising out of separate and prior prosecutions for offenses
that involved the same or similar underling conduct as the
current offense, to be applied in addition to any sentencing
enhancement that would otherwise apply pursuant to the
calculation of the defendant's criminal history category;
(E) impose an appropriate sentencing enhancement on a
defendant who, in the course of committing an offense
described in this subsection--
(i) murders or otherwise causes death, bodily injury, or
serious bodily injury to an individual;
(ii) uses or brandishes a firearm or other dangerous
weapon; or
(iii) engages in conduct that consciously or recklessly
places another in serious danger of death or serious bodily
injury;
(F) consider whether a downward adjustment is appropriate
if the offense is a first offense and involves the smuggling
only of the alien's spouse or child; and
(G) consider whether any other aggravating or mitigating
circumstances warrant upward or downward sentencing
adjustments.
(3) Emergency authority to sentencing commission.--The
Commission shall promulgate the guidelines or amendments
provided for under this subsection as soon as practicable in
accordance with the procedure set forth in section 21(a) of
the Sentencing Act of 1987, as though the authority under
that Act had not expired.
(f) Effective Date.--This section and the amendments made
by this section shall apply with respect to offenses
occurring on or after the date of the enactment of this Act.

SEC. 204. INCREASED NUMBER OF ASSISTANT UNITED STATES
ATTORNEYS.

(a) In General.--The number of Assistant United States
Attorneys employed by the Department of Justice for the
fiscal year 1997 shall be increased by at least 25 above the
number of Assistant United States Attorneys that were
authorized to be employed as of September 30, 1996.
(b) Assignment.--Individuals employed to fill the
additional positions described in subsection (a) shall
prosecute persons who bring into the United States or harbor
illegal aliens or violate other criminal statutes involving
illegal aliens.

SEC. 205. UNDERCOVER INVESTIGATION AUTHORITY.

(a) In General.--Title II is amended by adding at the end
the following new section:


``undercover investigation authority

``Sec. 294. (a) In General.--With respect to any undercover
investigative operation of the Service which is necessary for
the detection and prosecution of crimes against the United
States--
``(1) sums appropriated for the Service may be used for
leasing space within the United States and the territories
and possessions of the United States without regard to the
following provisions of law:
``(A) section 3679(a) of the Revised Statutes (31 U.S.C.
1341),
``(B) section 3732(a) of the Revised Statutes (41 U.S.C.
11(a)),
``(C) section 305 of the Act of June 30, 1949 (63 Stat.
396; 41 U.S.C. 255),
``(D) the third undesignated paragraph under the heading
`Miscellaneous' of the Act of March 3, 1877 (19 Stat. 370; 40
U.S.C. 34),
``(E) section 3648 of the Revised Statutes (31 U.S.C.
3324),
``(F) section 3741 of the Revised Statutes (41 U.S.C. 22),
and
``(G) subsections (a) and (c) of section 304 of the Federal
Property and Administrative Services Act of 1949 (63 Stat.
395; 41 U.S.C. 254 (a) and (c));
``(2) sums appropriated for the Service may be used to
establish or to acquire proprietary corporations or business
entities as part of an undercover operation, and to operate
such corporations or business entities on a commercial basis,
without regard to the provisions of section 304 of the
Government Corporation Control Act (31 U.S.C. 9102);
``(3) sums appropriated for the Service, and the proceeds
from the undercover operation, may be deposited in banks or
other financial institutions without regard to the provisions
of section 648 of title 18, United States Code, and of
section 3639 of the Revised Statutes (31 U.S.C. 3302); and
``(4) the proceeds from the undercover operation may be
used to offset necessary and reasonable expenses incurred in
such operation without regard to the provisions of section
3617 of the Revised Statutes (31 U.S.C. 3302).

The authority set forth in this subsection may be exercised
only upon written certification of the Commissioner, in
consultation with the Deputy Attorney General, that any
action authorized by paragraph (1), (2), (3), or (4) is
necessary for the conduct of the undercover operation.
``(b) Disposition of Proceeds No Longer Required.--As soon
as practicable after the proceeds from an undercover
investigative operation, carried out under paragraphs (3) and
(4) of subsection (a), are no longer necessary for the
conduct of the operation, the proceeds or the balance of the
proceeds remaining at the time shall be deposited into the
Treasury of the United States as miscellaneous receipts.
``(c) Disposition of Certain Corporations and Business
Entities.--If a corporation or business entity established or
acquired as part of an undercover operation under paragraph
(2) of subsection (a) with a net value of over $50,000 is to
be liquidated, sold, or otherwise disposed of, the Service,
as much in advance as the Commissioner or Commissioner's
designee determines practicable, shall report the
circumstances to the Attorney General, the Director of the
Office of Management and Budget, and the Comptroller General.
The proceeds of the liquidation, sale, or other disposition,
after obligations are met, shall be deposited in the Treasury
of the United States as miscellaneous receipts.
``(d) Financial Audits.--The Service shall conduct detailed
financial audits of closed undercover operations on a
quarterly basis and shall report the results of the audits in
writing to the Deputy Attorney General.''.
(b) Clerical Amendment.--The table of contents is amended
by inserting after the item relating to section 293 the
following:

``Sec. 294. Undercover investigation authority.''.