Closing the Pre-Paid Mobile Device Security Gap Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Closing the Pre-Paid Mobile Device 
Security Gap Act of 2016''.

SEC. 2. IDENTIFICATION REQUIREMENT.

    Prior to the completion of any sale of a pre-paid mobile device or 
SIM card to a purchaser, an authorized reseller shall require the 
purchaser to provide the following information:
            (1) The full name of the purchaser.
            (2) The complete home address of the purchaser.
            (3) The date of birth of the purchaser.

SEC. 3. IDENTIFICATION VERIFICATION.

    (a) In-Person Sales.--An authorized reseller making a sale to a 
purchaser in person shall verify the purchaser information provided 
under section 2 by requiring the purchaser to display either of the 
following:
            (1) A photographic identification card issued by the 
        Federal Government or a State government, or a document 
        considered acceptable for purposes of subparagraph (B), (C), or 
        (D) of section 274A(b)(1) of the Immigration and Nationality 
        Act (8 U.S.C. 1324a(b)(1)).
            (2) Any 2 of the following:
                    (A) A Form W-2 Wage and Tax Statement received from 
                the Internal Revenue Service, provided that such form 
                has been received from the Internal Revenue Service 
                within the prior 18 months.
                    (B) A Form 1099 Social Security Benefit Statement 
                received from the Social Security Administration, 
                provided that such form has been received from the 
                Social Security Administration within the prior 18 
                months.
                    (C) A Form 1099 received from any other agency of 
                the Federal Government other than the Social Security 
                Administration, including the Internal Revenue Service, 
                provided that such form has been received within the 
                prior 18 months.
                    (D) Any document containing personal identifying 
                information that the Attorney General finds, by 
                regulation, to be acceptable for purposes of this 
                section.
    (b) Other Sales.--An authorized reseller making a sale to a 
purchaser not in person shall verify the purchaser information provided 
under section 2 by requiring the purchaser to submit the following 
information:
            (1) Valid credit or debit card account information.
            (2) Social Security number.
            (3) Driver's license number.
            (4) Any other personal identifying information that the 
        Attorney General finds, by regulation, to be necessary for 
        purposes of this section.

SEC. 4. RECORD MAKING REQUIREMENT.

    Upon completion of a sale of a pre-paid mobile device or SIM card, 
an authorized reseller shall make a record of the sale that includes 
the following information:
            (1) The information obtained from the purchaser under 
        section 2, and, if applicable, the information submitted by the 
        purchaser under subsection (b) of section 3.
            (2) The date of sale.
            (3) The manufacturer of the pre-paid mobile device or SIM 
        card.
            (4) The wireless carrier that will provide wireless 
        communication service to the pre-paid mobile device or SIM 
        card.
            (5) Any assigned telephone number or other subscriber or 
        account identifier known at the time of purchase.
            (6) Any of the following, if applicable to the pre-paid 
        mobile device or SIM card:
                    (A) International mobile equipment identifier 
                number.
                    (B) Electronic serial number.
                    (C) Mobile equipment identifier.
                    (D) International mobile subscriber identifier.
                    (E) Machine address code.

SEC. 5. RECORD TRANSMISSION REQUIREMENT.

    (a) In General.--Not later than 30 days after the sale of a pre-
paid mobile device or SIM card, an authorized reseller shall transmit 
the record of the sale made in accordance with section 4 to the 
wireless carrier that will provide wireless communication service to 
the pre-paid mobile device or SIM card.
    (b) Permissible Means of Transmission.--In complying with the 
requirements of subsection (a), an authorized reseller may transmit the 
sale record to the wireless carrier by means of secure electronic 
transmission.

SEC. 6. RECORDKEEPING REQUIREMENT.

    After an authorized reseller has transmitted a sale record to a 
wireless carrier in accordance with section 5, the wireless carrier 
shall--
            (1) provide a transmission confirmation receipt to the 
        authorized reseller, after the receipt of which the authorized 
        reseller shall dispose promptly of any retained copy of the 
        record; and
            (2) retain the transmitted sale record in accordance with 
        the privacy protections of section 222 of the Communications 
        Act of 1934 (47 U.S.C. 222) for a period of 18 months or until 
        the wireless carrier stops or otherwise discontinues providing 
        service to the pre-paid mobile device or SIM card to which the 
        sale record relates.

SEC. 7. PENALTIES.

    (a) False or Misleading Statements.--A purchaser who knowingly 
provides false or misleading information when providing the identifying 
information and documents required under sections 2 and 3 shall be 
fined under title 18, United States Code, imprisoned not more than 5 
years or, if the offense involves international or domestic terrorism 
(as defined in section 2331 of such title), imprisoned not more than 8 
years, or both. If the matter relates to an offense under chapter 109A, 
109B, 110, or 117, or section 1591 of such title, then the term of 
imprisonment imposed under this section shall be not more than 8 years.
    (b) Failure To Comply.--
            (1) In general.--The Attorney General shall assess, against 
        an authorized reseller or wireless carrier who commits an 
        offense under this Act, a civil penalty of $50 for each such 
        offense.
            (2) Separate offense.--
                    (A) By authorized reseller.--The failure of an 
                authorized reseller, with respect to each separate sale 
                of a pre-paid mobile device or SIM card, to request 
                purchaser identification under section 2, to verify 
                identification under section 3, to make a record under 
                section 4, and to transmit a record under section 5, 
                shall constitute a separate offense.
                    (B) By wireless carrier.--The failure of a wireless 
                carrier, with respect to each separate sale of a pre-
                paid mobile device or SIM card for which the carrier 
                receives the sale record transmitted under section 5, 
                to provide a transmission confirmation receipt under 
                section 6(1), and to retain the sale record under 
                section 6(2), shall constitute a separate offense.
            (3) Rule of construction.--Nothing in this section may be 
        construed to--
                    (A) hold a wireless carrier liable for an offense 
                under this Act committed by an authorized reseller; and
                    (B) hold an authorized reseller liable for an 
                offense under this Act committed by a wireless carrier.

SEC. 8. RELATED OFFENSES.

    (a) Sale by Unauthorized Resellers.--
            (1) In general.--It shall be unlawful for any person who is 
        not an authorized reseller to sell a pre-paid mobile device or 
        SIM card.
            (2) Penalty.--Whoever knowingly violates paragraph (1) 
        shall be imprisoned for not more than 2 years or fined under 
        title 18, United States Code, or both.
            (3) Notice.--The Attorney General shall make rules 
        requiring a manufacturer or authorized reseller to notify a 
        purchaser of a mobile device or SIM card of the offense and 
        penalty established by this section.
    (b) Commission of Other Crimes.--If a person knowingly uses a pre-
paid mobile device or SIM card obtained by providing false or 
misleading information in violation of section 2 or 3 to commit a 
Federal criminal offense, the minimum term of imprisonment for such 
offense that is required under Federal statute (if any such minimum 
term is so required) shall be increased by 1 year.

SEC. 9. PRESERVATION OF STATE LAW.

    Nothing in this Act is intended to preempt additional State 
requirements with respect to the distribution and sale of mobile 
devices or SIM cards, or to otherwise prevent or prohibit any State 
from enacting any such requirements.

SEC. 10. DEFINITIONS.

    In this Act:
            (1) Authorized reseller.--The term ``authorized reseller'' 
        means any person authorized by--
                    (A) a manufacturer to sell the manufacturer's 
                mobile devices or SIM cards; or
                    (B) a wireless carrier to sell pre-paid mobile 
                devices or SIM cards to which the wireless carrier will 
                provide wireless communication service.
            (2) Pre-paid mobile device.--The term ``pre-paid mobile 
        device'' means any cellular phone or similar wireless 
        communication device for which the mobile device user purchases 
        a set allotment of wireless communication service.
            (3) SIM card.--The term ``SIM card'' means a subscriber 
        identity module or functionally equivalent data storage device.
            (4) Wireless carrier.--The term ``wireless carrier'' means 
        a provider of wireless communication service.
            (5) Wireless communication service.--The term ``wireless 
        communication service'' means commercial mobile service (as 
        defined in section 332 of the Communications Act of 1934 (47 
        U.S.C. 332)) or commercial mobile data service (as defined in 
        section 6001 of the Middle Class Tax Relief and Job Creation 
        Act of 2012 (47 U.S.C. 1401)).

Summary: Closing the Pre-Paid Mobile Device Security Gap Act of 2016 This bill requires authorized resellers of pre-paid mobile devices or SIM cards to require purchasers to provide their name, home address, and date of birth. For in-person sales, an authorized reseller must require purchasers to display for verification: (1) a government-issued photographic identification card or a document acceptable under the Immigration and Nationality Act for employment authorization or establishing identity. And (2) any two of a Form W-2 Wage and Tax Statement from the Internal Revenue Service, a Form 1099 Social Security Benefit Statement or a Form 1099 from another federal agency, or a document containing personal identifying information that the Department of Justice (DOJ) finds to be acceptable. For all other sales, an authorized reseller must require purchasers to submit their: (1) credit or debit card account information, (2) Social Security number, (3) driver's license number, and (4) any personal identifying information that DOJ finds to be necessary. Authorized resellers must make a record of their sales that includes: (1) the information obtained from purchasers to verify their identity, (2) the date of sale. (3) the manufacturer and the wireless carrier of the device or SIM card. (4) any assigned telephone number or other identifier of the subscriber or account. And (5) if applicable, the international mobile equipment identifier number, electronic serial number, mobile equipment identifier, international mobile subscriber identifier, and machine address code. Within 30 days after a sale, an authorized reseller must transmit such record to the wireless carrier for the device or SIM card. Purchasers are subject to criminal penalties for providing false or misleading identifying information or documents. A civil penalty is established for authorized resellers or wireless carriers who fail to comply with this Act. The bill also prohibits and establishes criminal penalties for the sale of a pre-paid mobile device or SIM card by a person who is not an authorized reseller.