SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wireless Privacy Enhancement Act of 
1998''.

SEC. 2. COMMERCE IN ELECTRONIC EAVESDROPPING DEVICES.

    (a) Prohibition on Modification.--Section 302(b) of the 
Communications Act of 1934 (47 U.S.C. 302a(b)) is amended by inserting 
before the period at the end thereof the following: ``, or modify any 
such device, equipment, or system in any manner that causes such 
device, equipment, or system to fail to comply with such regulations''.
    (b) Prohibition on Commerce in Scanning Receivers.--Section 302(d) 
of such Act (47 U.S.C. 302a(d)) is amended to read as follows:
    ``(d) Equipment Authorization Regulations.--
            ``(1) Privacy protections required.--The Commission shall 
        prescribe regulations, and review and revise such regulations 
        as necessary in response to subsequent changes in technology or 
        behavior, denying equipment authorization (under part 15 of 
        title 47, Code of Federal Regulations, or any other part of 
        that title) for any scanning receiver that is capable of--
                    ``(A) receiving transmissions in the frequencies 
                that are allocated to the domestic cellular radio 
                telecommunications service or the personal 
                communications service;
                    ``(B) readily being altered to receive 
                transmissions in such frequencies;
                    ``(C) being equipped with decoders that--
                            ``(i) convert digital domestic cellular 
                        radio telecommunications service, personal 
                        communications service, or protected 
                        specialized mobile radio service transmissions 
                        to analog voice audio; or
                            ``(ii) convert protected paging service 
                        transmissions to alphanumeric text; or
                    ``(D) being equipped with devices that otherwise 
                decode encrypted radio transmissions for the purposes 
                of unauthorized interception.
            ``(2) Privacy protections for shared frequencies.--The 
        Commission shall, with respect to scanning receivers capable of 
        receiving transmissions in frequencies that are used by 
        commercial mobile services and that are shared by public safety 
        users, examine methods, and may prescribe such regulations as 
        may be necessary, to enhance the privacy of users of such 
        frequencies.
            ``(3) Tampering prevention.--In prescribing regulations 
        pursuant to paragraph (1), the Commission shall consider 
        defining `capable of readily being altered' to require scanning 
        receivers to be manufactured in a manner that effectively 
        precludes alteration of equipment features and functions as 
        necessary to prevent commerce in devices that may be used 
        unlawfully to intercept or divulge radio communication.
            ``(4) Warning labels.--In prescribing regulations under 
        paragraph (1), the Commission shall consider requiring labels 
        on scanning receivers warning of the prohibitions in Federal 
        law on intentionally intercepting or divulging radio 
        communications.
            ``(5) Definitions.--As used in this subsection, the term 
        `protected' means secured by an electronic method that is not 
        published or disclosed except to authorized users, as further 
        defined by Commission regulation.''.
    (c) Implementing Regulations.--Within 90 days after the date of 
enactment of this Act, the Federal Communications Commission shall 
prescribe amendments to its regulations for the purposes of 
implementing the amendments made by this section.

SEC. 3. UNAUTHORIZED INTERCEPTION OR PUBLICATION OF COMMUNICATIONS.

    Section 705 of the Communications Act of 1934 (47 U.S.C. 605) is 
amended--
            (1) in the heading of such section, by inserting 
        ``interception or'' after ``unauthorized'';
            (2) in the first sentence of subsection (a), by striking 
        ``Except as authorized by chapter 119, title 18, United States 
        Code, no person'' and inserting ``No person'';
            (3) in the second sentence of subsection (a)--
                    (A) by inserting ``intentionally'' before 
                ``intercept''; and
                    (B) by striking ``and divulge'' and inserting ``or 
                divulge'';
            (4) by striking the last sentence of subsection (a) and 
        inserting the following: ``Nothing in this subsection prohibits 
        an interception or disclosure of a communication as authorized 
        by chapter 119 of title 18, United States Code.'';
            (5) in subsection (e)(1)--
                    (A) by striking ``fined not more than $2,000 or''; 
                and
                    (B) by inserting ``or fined under title 18, United 
                States Code,'' after ``6 months,''; and
            (6) in subsection (e)(3), by striking ``any violation'' and 
        inserting ``any receipt, interception, divulgence, publication, 
        or utilization of any communication in violation'';
            (7) in subsection (e)(4), by striking ``any other activity 
        prohibited by subsection (a)'' and inserting ``any receipt, 
        interception, divulgence, publication, or utilization of any 
        communication in violation of subsection (a)''; and
            (8) by adding at the end of subsection (e) the following 
        new paragraph:
    ``(7) Notwithstanding any other investigative or enforcement 
activities of any other Federal agency, the Commission shall 
investigate alleged violations of this section and may proceed to 
initiate action under section 503 of this Act to impose forfeiture 
penalties with respect to such violation upon conclusion of the 
Commission's investigation.''.

            Passed the House of Representatives March 5, 1998.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.
Wireless Privacy Enhancement Act of 1998 - Amends the Communications Act of 1934 to prohibit modifying any electronic communication device, equipment, or system in a manner which causes it to fail to comply with regulations governing electronic eavesdropping devices.   Directs the Federal Communications Commission (FCC) to prescribe regulations (and review and revise them when necessary in response to changes in technology and behavior) denying equipment authorization for any scanning receiver capable of:  (1) receiving transmissions in frequencies allocated to the domestic cellular or personal communications service; (2) being readily altered to receive such transmissions; (3) being equipped with decoders that convert domestic cellular or personal communications service or protected specialized mobile radio service transmissions to analog voice audio, or which convert protected paging service transmissions to alphanumeric text; or (4) being equipped with devices that otherwise encode encrypted radio transmissions for purposes of unauthorized interception. Directs the FCC, with respect to scanning receivers capable of receiving transmissions in frequencies used by commercial mobile services and that are shared by public safety users, to examine methods and prescribe regulations to enhance the privacy of users of such frequencies.  Requires tampering prevention measures and warning labels to be considered by the FCC in prescribing such regulations. Applies penalties for the unauthorized publication or use of electronic communications to the unauthorized receipt, intentional interception, or divulgence of any such communication.  Directs the FCC to investigate alleged violations and proceed to initiate action to impose forfeiture penalties.
Wireless Privacy Enhancement Act of 1998