HouseH.R. 8860119th Congress

Corporate Prosecution Reform Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8860 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 8860

   To amend title 18, United States Code, to enhance prosecution of 
                            corporate crime.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2026

Ms. Scanlon (for herself, Ms. Norton, Ms. Ross, Ms. Tlaib, Mr. Johnson 
  of Georgia, Mr. Evans of Pennsylvania, Mr. Deluzio, and Ms. Dean of 
Pennsylvania) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
   To amend title 18, United States Code, to enhance prosecution of 
                            corporate crime.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Corporate Prosecution Reform Act''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the prosecution of corporate crimes should be conducted 
        with the same rigor and commitment as the prosecution of 
        individual crimes;
            (2) deferred prosecution agreements and non-prosecution 
        agreements should only be used when they serve the public 
        interest and are likely to result in meaningful reforms; and
            (3) the penalties and terms imposed by deferred prosecution 
        agreements and non-prosecution agreements should be sufficient 
        to hold the defendant accountable for misconduct, compensate 
        victims, prevent corporate recidivism, and deter future 
        corporate offenses.

SEC. 3. DEFERRED PROSECUTION AGREEMENTS.

    (a) Definitions.--Section 3172 of title 18, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``, and'' at the end and 
        inserting at semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) the term `business entity' means a corporation, 
        association, partnership, limited liability company, limited 
        liability partnership, or other legal commercial entity; and
            ``(4) the term `corporate offense' means--
                    ``(A) a violation or alleged violation of Federal 
                law committed by--
                            ``(i) a business entity; or
                            ``(ii) an individual employed by a business 
                        entity within the conduct of the individual's 
                        occupational role; and
                    ``(B) any other violation or alleged violation of 
                Federal law determined by the Attorney General to be a 
                corporate offense.''.
    (b) Periods of Delay.--Section 3161(h)(2) of title 18, United 
States Code, is amended--
            (1) by striking ``Any period of'' and inserting ``(A) Any 
        period of'';
            (2) by inserting `` of an offense that is not a corporate 
        offense'' after ``prosecution''; and
            (3) by adding at the end the following:
                    ``(B)(i) Any period of delay during which 
                prosecution of a corporate offense is deferred by the 
                attorney for the Government pursuant to written 
                agreement with the defendant, with the approval of the 
                court of the terms of such agreement, for the purpose 
                of allowing the defendant to demonstrate his good 
                conduct.
                            ``(ii) In making the determination under 
                        clause (i), the court may not approve an 
                        agreement--
                                    ``(I) in the case of an offense 
                                resulting in--
                                            ``(aa) loss of life; or
                                            ``(bb) serious bodily 
                                        injury (as such term is defined 
                                        in section 1365);
                                    ``(II) in the case of an offense 
                                relating to treason, espionage, 
                                terrorism, money laundering, slavery, 
                                forced labor, or human trafficking; or
                                    ``(III) if the defendant has 
                                previously--
                                            ``(aa) been convicted of a 
                                        similar corporate offense;
                                            ``(bb) entered into an 
                                        agreement under this 
                                        subparagraph related to a 
                                        similar corporate offense (as 
                                        well as any agreement under 
                                        section 3161(h)(2), as in 
                                        effect on the day before the 
                                        date of enactment of the 
                                        Corporate Prosecution Reform 
                                        Act, related to a similar 
                                        corporate offense); or
                                            ``(cc) entered into an 
                                        agreement described in section 
                                        3784(b)(2) related to a similar 
                                        corporate offense.
                            ``(iii) In making the determination under 
                        clause (i), the court may not approve an 
                        agreement unless the court determines that--
                                    ``(I) the agreement is in the 
                                public interest;
                                    ``(II) the terms and penalties 
                                under the agreement are sufficient to 
                                hold the defendant accountable for 
                                misconduct, compensate each victim, 
                                prevent unlawful behavior by the 
                                defendant, and deter similar corporate 
                                offenses; and
                                    ``(III) each victim of an offense 
                                alleged in the agreement has been 
                                afforded the rights described in 
                                section 3771, and has been afforded the 
                                right to--
                                            ``(aa) confer with the 
                                        attorney for the Government no 
                                        less than 15 days before such 
                                        agreement is offered to the 
                                        defendant; and
                                            ``(bb) be heard by the 
                                        court or provide the court with 
                                        written testimony, prior to the 
                                        court making a determination 
                                        under clause (i).
                            ``(iv) Any period of delay during which the 
                        court is making the determination under clause 
                        (i) shall be included in the period of delay 
                        described in such clause.
                            ``(v) In the case of an agreement that the 
                        court approved under clause (i), the court may 
                        not approve a proposed change to such agreement 
                        unless the court determines that the change 
                        meets the requirements under clause (iii). If 
                        the court determines that the change does not 
                        meet such requirements, the terms and penalties 
                        of the approved agreement shall remain in 
                        effect.
                            ``(vi) The court may--
                                    ``(I) on its own, or on motion of 
                                any party, review the implementation or 
                                termination of the agreement, and take 
                                any appropriate action to assure that 
                                the implementation or termination is in 
                                the public interest; and
                                    ``(II) order a party or an 
                                independent monitor to file evidence 
                                with the court to aid the court in 
                                making the determination under clause 
                                (i).''.

SEC. 4. ENFORCEMENT OF CORPORATE AND WHITE-COLLAR CRIME.

    (a) In General.--Part II of title 18, United States Code, is 
amended by adding at the end the following:

            ``CHAPTER 239--CORPORATE AND WHITE-COLLAR CRIME

``3781. Prosecution of corporate crimes.
``3782. Office of Corporate Enforcement.
``3783. Functions and duties of the Director of the Office of Corporate 
                            Enforcement.
``3784. Transparency in corporate enforcement.
``3785. Prohibition of non-prosecution agreements.
``3786. Report to Congress.
``3787. Definitions.
``Sec. 3781. Prosecution of corporate crimes
    ``(a) Establishment of Guidance.--The Attorney General shall 
establish guidance, and as necessary revise the internal policies and 
procedures of the Department of Justice, for the use of--
            ``(1) an agreement described in section 3161(h)(2)(B);
            ``(2) an agreement described in section 3784(b)(2) related 
        to an alleged corporate offense; or
            ``(3) an agreement related to any voluntary disclosure 
        policy of the Department of Justice involving an alleged 
        corporate offense.
    ``(b) Description.--The guidance established under subsection (a) 
shall--
            ``(1) improve the use of, and compliance with, the 
        agreements described in such subsection;
            ``(2) standardize the enforcement of and compliance with, 
        such agreements;
            ``(3) to the extent practicable, maintain parity between 
        the use of, and terms and penalties included in, such 
        agreements with respect to substantively similar corporate 
        offenses; and
            ``(4) ensure that such agreements--
                    ``(A) achieve substantial justice, including for 
                victims and the public;
                    ``(B) prevent corporate recidivism; and
                    ``(C) deter future corporate offenses;
    ``(c) Publication.--The Attorney General shall publish the guidance 
described in paragraph (1) on the website of the Department of Justice.
``Sec. 3782. Office of Corporate Enforcement
    ``(a) In General.--There is hereby established within the 
Department of Justice, under the general authority of the Attorney 
General, an Office of Corporate Enforcement (in this chapter referred 
to as the `Office').
    ``(b) Separate Office.--The Office shall be a separate and distinct 
office within the Department of Justice, not subsumed by any other 
office, headed by a Director, who shall report to the Deputy Attorney 
General.
    ``(c) Appointment.--The Attorney General shall appoint the 
Director.
    ``(d) Staff.--The Attorney General is authorized to provide the 
Office of Corporate Enforcement with such full-time professional and 
clerical staff and with the services of such consultants as may be 
necessary for it to carry out its duties and functions.
``Sec. 3783. Functions and duties of the Director of the Office of 
              Corporate Enforcement
    ``(a) Monitoring.--The Director shall monitor the implementation of 
and compliance with each agreement that is approved pursuant to section 
3161(h)(2)(B) or described in section 3784(b)(2).
    ``(b) Reporting Violations.--If the Director determines that any 
individual or business entity subject to an agreement under section 
3161(h)(2)(B) or described in section 3784(b)(2) has violated the terms 
of that agreement, the Director shall report such violation to the 
Deputy Attorney General.
``Sec. 3784. Transparency in corporate enforcement
    ``(a) Deferred Prosecution Agreements.--
            ``(1) In general.--Not later than 30 days after the court 
        approves an agreement under section 3161(h)(2)(B), the Attorney 
        General shall make available on the public website of the 
        Department of Justice--
                    ``(A) the text of the agreement;
                    ``(B) the defendant;
                    ``(C) any offense or alleged offense identified by 
                the agreement;
                    ``(D) the terms of the agreement, including any 
                fines or penalties;
                    ``(E) all the terms and conditions of any agreement 
                or understanding between--
                            ``(i) an independent monitor appointed 
                        pursuant to the agreement; and
                            ``(ii) the defendant or the Department of 
                        Justice; and
                    ``(F) any reference to--
                            ``(i) any other such agreement approved 
                        between the United States and the individual or 
                        business entity, including such an agreement 
                        that is no longer in effect as of the date of 
                        publication;
                            ``(ii) any agreement described in 
                        subsection (b)(2), including such an agreement 
                        that is not in effect as of the date of 
                        publication; and
                            ``(iii) any prior conviction of the 
                        individual or business entity for a similar 
                        Federal offense.
            ``(2) Agreements in effect and prior agreements.--The 
        Attorney General shall make available on the public website of 
        the Department of Justice the information described in 
        paragraph (1)--
                    ``(A) not later than one year after the date of 
                enactment of this Act, for each agreement approved 
                under subparagraph (B) of section 3161(h)(2) (as well 
                as any agreement under section 3161(h)(2), as in effect 
                on the day before the date of enactment of the 
                Corporate Prosecution Reform Act, related to any 
                corporate offense) that is in effect on the date of 
                enactment; and
                    ``(B) not later than 3 years after the date of 
                enactment of this Act, for each agreement described in 
                subparagraph (A) that was in effect during the period 
                beginning on January 1, 1993, and ending on the date of 
                enactment of this Act.
    ``(b) Non-Prosecution Agreements.--
            ``(1) Publication.--Not later than 30 days after an 
        agreement described in paragraph (2) is finalized, the Attorney 
        General shall make available on the public website of the 
        Department of Justice--
                    ``(A) the text of the agreement;
                    ``(B) the identified individual or business entity;
                    ``(C) any offense or alleged offense identified by 
                the agreement;
                    ``(D) the terms of the agreement, including any 
                fines or penalties; and
                    ``(E) a reference to--
                            ``(i) any other agreement described in 
                        paragraph (2) between the United States and the 
                        individual or business entity, including such 
                        an agreement that is no longer in effect as of 
                        the date of publication;
                            ``(ii) any agreement approved under 
                        subparagraph (B) of section 3161(h)(2) (as well 
                        as any agreement under section 3161(h)(2), as 
                        in effect on the day before the date of 
                        enactment of the Corporate Prosecution Reform 
                        Act, related to any corporate offense) between 
                        the United States and the individual or 
                        business entity, including such an agreement 
                        that is no longer in effect as of the date of 
                        publication; and
                            ``(iii) any prior conviction of the 
                        individual or business entity for a similar 
                        Federal offense.
            ``(2) Agreement described.--An agreement described in this 
        paragraph is a written agreement--
                    ``(A) in which the United States agrees to--
                            ``(i) stop, pause, defer, or resolve an 
                        investigation or prosecution of a corporate 
                        offense; or
                            ``(ii) decline to or otherwise not 
                        prosecute a corporate offense; and
                    ``(B) that is not an agreement described in section 
                3161(h)(2)(B).
            ``(3) Agreements in effect and prior agreements.--The 
        Attorney General shall make available on the public website of 
        the Department of Justice the information described in 
        paragraph (1)--
                    ``(A) not later than one year after the date of 
                enactment of this Act, for each agreement described in 
                paragraph (2) that is in effect on the date of 
                enactment; and
                    ``(B) not later than 3 years after the date of 
                enactment of this Act, for each agreement described in 
                paragraph (2) that was in effect during the period 
                beginning on January 1, 1993, and ending on the date of 
                enactment of this Act.
``Sec. 3785. Prohibition of non-prosecution agreements
    ``(a) In General.--Except in the case of an agreement under section 
3162(h)(2) that is approved by an appropriate district court of the 
United States in accordance with such section, the Government may not 
enter into any agreement with a business entity or an individual in 
which the Government agrees to decline prosecution of, or otherwise not 
prosecute, a corporate offense, in exchange for payment of a fine, 
penalty, or other monetary consideration.
    ``(b) Void.--Any agreement entered into in violation of this 
section shall be void and unenforceable.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to--
            ``(1) prevent the Government from issuing advisory 
        opinions, entering into immunity agreements, entering into 
        civil consent decrees filed in a court, or entering plea 
        bargaining agreements governed by Rule 11 of the Federal Rule 
        of Criminal Procedure; or
            ``(2) affect any agreement that is in effect on the date of 
        enactment of this section.
``Sec. 3786. Report to Congress
    ``Not later than 1 year after the date of enactment of the 
Corporate Prosecution Reform Act, and annually thereafter, the Attorney 
General shall submit to the Committees on the Judiciary of the House of 
Representatives and of the Senate a report that includes--
            ``(1) each agreement entered into under section 
        3161(h)(2)(B) or described in section 3784(b)(2) during the 
        preceding year;
            ``(2) any instance of non-compliance by a defendant with an 
        agreement entered into under section 3161(h)(2)(B) or described 
        in section 3784(b)(2) during the preceding year;
            ``(3) a list of each agreement under section 3161(h)(2)(B) 
        (as well as any agreement under section 3161(h)(2), as in 
        effect on the day before the date of enactment of the Corporate 
        Prosecution Reform Act, related to any corporate offense) or 
        described in section 3784(b)(2) that is still in effect as of 
        the date of the report;
            ``(4) any changes to an agreement described in paragraph 
        (3), including any extensions to the term of such an agreement; 
        and
            ``(5) a list of each agreement under section 3161(h)(2)(B) 
        (as well as any agreement under section 3161(h)(2), as in 
        effect on the day before the date of enactment of the Corporate 
        Prosecution Reform Act, related to any corporate offense) or 
        described in section 3784(b)(2) that was terminated during the 
        preceding year, including a description of the defendant's 
        compliance with terms of the agreement.
``Sec. 3787. Definitions
    ``In this chapter, the terms have the meanings given such terms in 
section 3172.''.
    (b) Table of Chapters Amendment.--The table of chapters for part II 
of title 18, United States Code, is amended by adding at the end the 
following:

``239. Corporate and White-Collar Crime.....................    3781''.

SEC. 5. REFERENCES TO WHITE COLLAR CRIME.

    Part MM of title I of the Omnibus Crime Control and Safe Streets 
Act of 1968 (34 U.S.C. 10721 et seq.), is amended--
            (1) in the part heading, by striking ``white collar crime'' 
        and inserting ``cyber and financial crime''; and
            (2) by striking ``white collar crime'' each place such term 
        appears and inserting ``cyber and financial crime''.
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