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[House Report 106-24]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                 106-24

=======================================================================

 
                WIRELESS PRIVACY ENHANCEMENT ACT OF 1999

                                _______
                                

 February 23, 1999.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 514]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 514) to amend the Communications Act of 1934 to 
strengthen and clarify prohibitions on electronic 
eavesdropping, and for other purposes, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     4
Roll Call Votes..................................................     4
Committee Oversight Findings.....................................     4
Committee on Government Reform Oversight Findings................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Constitutional Authority Statement...............................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     9

                          Purpose and Summary

    The purpose of H.R. 514, the Wireless Privacy Enhancement 
Act of 1999, is to enhance the privacy of users of cellular and 
other mobile communications services. The changes embodied in 
H.R. 514 are necessary to prohibit modification of currently 
available scanners and to prevent the development of a market 
for new digital scanners capable of intercepting digital 
communications.
    The bill has four main components. First, the bill extends 
current scanning receiver manufacturing restrictions to prevent 
the manufacture of scanners that are capable of intercepting 
communications in frequencies allocated to new wireless 
communications, namely personal communications services, and 
protected paging and specialized mobile radio services. Second, 
the bill prohibits the modification of scanners and requires 
the Federal Communications Commission (the Commission or FCC) 
to strengthen its rules to prevent the modification of scanning 
receivers, including through the adoption of additional 
requirements to prevent the tampering of scanning receivers. 
Third, the bill makes it illegal to intentionally intercept or 
divulge the content of radio communications. Lastly, the bill 
improves the enforcement of privacy law by increasing the 
penalties available for violators and requiring the Commission 
to move expeditiously on investigations of potential 
violations.

                  Background and Need for Legislation

    Over 68 million Americans subscribe to cellular or other 
commercial mobile services. The majority of cellular services 
used today are based on analog technology. Analog 
communications are susceptible to unauthorized eavesdropping 
from scanners since voice signals, an analog form of 
communication, need not be decoded when intercepted over a 
scanner. During an oversight hearing on February 5, 1997, the 
Subcommittee saw a demonstration ofhow easily over-the-shelf 
scanners may be modified to enable them to intercept cellular 
communications. Digital cellular, the next generation of cellular 
services, and digital personal communications services (PCS) are less 
susceptible to unauthorized eavesdropping than analog cellular. PCS 
services are digital services that combine voice services with data 
(paging, messaging, caller identification) and possibly video services, 
over the same handset. While digital cellular and PCS are not immune 
from eavesdropping, they are currently more secure than analog cellular 
because the equipment for intercepting digital calls is vastly more 
expensive and complex than existing, off-the-shelf scanners that 
intercept analog communications (e.g., $200 vs. $10,000-$30,000). 
However, one of the purposes of the bill is to prevent a market from 
developing for less expensive digital scanners by clearly prohibiting 
the authorization of such scanners by the FCC.
    Several existing statutes are intended to protect cellular 
users' privacy. Section 705(a) of the Communications Act of 
1934 prohibits the unauthorized interception and divulgence of 
radio communications, including cellular calls. This statute is 
not limited by its terms to analog radio communications and, 
therefore, applies to digital cellular and PCS, as well as to 
other commercial mobile radio services such as paging, 
specialized mobile services, messaging services, etc. FCC rules 
also prohibit the interception of private conversations by 
radio scanners, whether or not the content of such radio 
communications is divulged (47 C.F.R. 15.9).
    Section 705(e)(4) of the Communications Act makes it 
illegal for a person to manufacture, assemble, modify, import, 
export, sell, or distribute equipment knowing or having reason 
to know that it is intended for the unauthorized interception 
and divulgence of radio communications. However, the FCC has 
only enforced this provision for satellite cable piracy. In 
addition to these provisions of the Communications Act and FCC 
regulations, the Electronic Communications Protection Act, (18 
U.S.C. 2511 et seq. (1986) (ECPA)), also prohibits the 
unauthorized interception or disclosure of cellular and other 
radio communications. Under ECPA, the manufacture, assembly, 
possession, sale or use of scanning devices which are 
``primarily useful'' for surreptitious interception and are 
sent through interstate mail are prohibited. ECPA is the 
principal statute used to prosecute unlawful interceptions. 
ECPA prohibits knowingly advertising interstate for any device 
``primarily useful'' for the surreptitious interception of 
electronic communications. See section 2512(1)(c).
    While interception of cellular telephone calls is illegal, 
it is legal under existing statutes to intercept radio 
communications outside of the cellular bands as long as the 
communication is not divulged or does not ``benefit'' the 
interceptor. For example, people may intercept public safety 
communications on emergencies occurring in their vicinity. 
Typically, these communications can be intercepted by an off-
the-shelf scanner. Prior to passage of the Telephone Disclosure 
and Dispute Resolution Act (TDDRA) (P.L. 102-556, 47 U.S.C. 
302(a)), which codified existing section 302 of the 
Communications Act of 1934, over 22 brands of scanners were 
capable of intercepting the cellular bands. TDDRA, in part, was 
designed to decrease the manufacture and availability of 
scanning devices capable of intercepting cellular 
communications. Under TDDRA, manufacturers are prohibited from 
manufacturing scanners that can be ``readily altered'' to 
intercept cellular communications. FCC Rule 15.121 defines 
``readily altered.'' Specifically, existing section 302(b) of 
the Communications Act of 1934 prohibits the manufacture, 
import, or sale of scanning devices that are capable of 
intercepting cellular calls, or of being ``readily altered'' 
for such interception. In section 302(d), Congress required the 
FCC to promulgate regulations denying authorization to scanners 
that are capable of receiving cellular transmissions. See 47 
C.F.R. Sec. Sec. 15.121 and 15.37(f). The Committee finds that 
current scanning receivers are not being manufactured in a 
manner to effectively prohibit interception of these 
frequencies and the current law should not be read to apply to 
new technologies.

                                Hearings

    The Subcommittee on Telecommunications, Trade, and Consumer 
Protection held a legislative hearing on H.R. 514 on February 
3, 1999. The Subcommittee received testimony from: Mr. Thomas 
Sugrue, Wireless Telecommunications Bureau Chief, Federal 
Communications Commission; Captain Joe Hanna, Richardson Texas 
Police Department on behalf of the Association of Public-Safety 
Communications Officials, International Inc.; Ms. Maureen 
Finnerty, Associate Director, Parks Operations and Education, 
Department of the Interior; Mr. Thomas E. Wheeler, President 
and CEO, Cellular Telecommunications Industry Association; Mr. 
James X. Dempsey, Senior Staff Counsel, Center for Democracy 
and Technology; and Mr. Michael Amarosa, Vice President, Public 
Affairs, TruePosition, Inc.

                        Committee Consideration

    On February 10, 1999, the Subcommittee on 
Telecommunications, Trade, and Consumer Protection met in open 
markup session and approved H.R. 514 for Full Committee 
consideration, without amendment, by a voice vote.
    The Full Committee met in open markup session on February 
11, 1999, and ordered H.R. 514 reported to the House, without 
amendment, by a voice vote, a quorum being present.

                            Roll Call Votes

    Clause 3(b) of rule XIII of the Rules of the House requires 
the Committee to list the recorded votes on the motion to 
report legislation and amendments thereto. There were no 
recorded votes taken in connection with ordering H.R. 514 
reported. A motion by Mr. Bliley to order H.R. 514 reported to 
the House was agreed to by a voice vote, a quorum being 
present.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

           Committee on Government Reform Oversight Findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
514, the Wireless Privacy Enhancement Act of 1999, results in 
no new or increased budget authority, entitlement authority, or 
tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 22, 1999.
Hon. Tom Bliley,
Chairman, Committee on Commerce, U.S. House of Representatives, 
        Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 514, the Wireless 
Privacy Enhancement Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kim Cawley 
(for federal costs), Hester Grippando (for revenues), and Jean 
Wooster (for the private-sector impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 514--Wireless Privacy Enhancement Act of 1999

    CBO estimates that enacting H.R. 514 would have no 
significant effect on the federal budget. Because the bill 
would establish new criminal penalties and thus could increase 
receipts, pay-as-you-go procedures would apply. H.R. 514 
contains no intergovernmental mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would not affect the 
budgets of state, local, or tribal governments. The bill would 
impose a new private-sector mandate, but CBO estimates the 
direct cost to industry of complying with the bill would fall 
well below the statutory threshold for private-sector mandates.
    H.R. 514 would amend the Communications Act of 1934 to 
prohibit modifying any equipment used to communicate 
electronically in any matter that would not comply with 
regulations affecting electronic eavesdropping. The bill would 
direct the Federal Communications Commission (FCC) to prepare 
regulations to deny the authorization to use FCC equipment for 
certain scanning receivers that may be capable of unauthorized 
interception of communication transmissions. Based on 
information from the FCC, CBO estimates that these regulations 
would cost less than $500,000 to promulgate, assuming 
appropriation of the necessary amounts. Furthermore, under 
current law the FCC is authorized to collect fees from the 
telecommunications industry sufficient to offset the cost of 
its regulatory program. Therefore, CBO estimates that the net 
budgetary effect of this provision would be negligible.
    The bill also would amend the Communications Act of 1934 to 
impose criminal penalties for intercepting, publishing, or 
divulging a communication that is not authorized. CBO estimates 
that this provision would have a negligible effect on revenues. 
The bill would direct the FCC to investigate alleged violations 
of this portion of the act and to enforce this provision 
through forfeiture penalties. Under current law, any 
enforcement costs that the agency incurs are offset by fees 
charged to the industries that the FCC regulates. As a result, 
we estimate that this provision would not result in any 
significant net cost to the federal government.
    H.R. 514 would impose a new private-sector mandate on 
manufacturers, importers, sellers, and those who modify 
scanning receivers. The bill would expand the FCC's criteria 
for certifying equipment before it can be imported or marketed. 
Based on information provided by the leading manufacturer of 
scanning receivers and the FCC, CBO estimates that the direct 
cost of complying with H.R. 514 would fall well below the 
statutory threshold for private-sector mandates ($100 million 
in 1996, adjusted annually for inflation).
    The CBO staff contacts for this estimate are Kim Cawley for 
federal costs, Hester Grippando for revenues, and Jean Wooster 
for the private-sector impact. This estimate was approved by 
Robert A. Sunshine, Deputy Assistant Director for Budget 
Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    Section 1 designates the short title of the bill as the 
``Wireless Privacy Enhancement Act of 1999.''

Section 2. Commerce in electronic eavesdropping devices

    Subsection 2(a) extends the prohibition in section 302(b) 
of the Communications Act of 1934 to ``modifying'' scanning 
devices. While the Committee believes that ``modifying'' is 
already covered by the prohibition against ``manufacturing'' 
non-compliant scanners, the legislation makes the manufacturing 
prohibition explicit to prevent any misreading of the statute. 
The Committee does not intend to prohibit amateurs from 
modifying linear amplifiers after purchase, as permitted by 
Commission rules, to allow the devices to operate in the 
amateur 12-meter and 10-meter bands. Nor does the Committee 
intend that section 2(a) prohibit amateurs from building or 
modifying one amplifier per year to enable this capability, as 
also permitted by Commission rules. Likewise, the Committee 
does not intend that this section be interpreted in a manner 
that permits the Commission to take actions against an amateur 
operator who is operating within the terms of his or her 
license.
    Finally, the Committee does not intend that Section 2(a) be 
interpreted in a manner that discourages manufacturers or 
dealers of amateur equipment from providing amateur licensees 
with information about permissible modifications of 
transceivers to enable them to transmit and receive on Military 
Affiliate Radio Service and the Civil Air Patrol, to the extent 
such transmission and reception is permissible under 18 U.S.C. 
2511(g) or other statutes. The Committee expects that the new 
regulations required under Section 2 will preserve the ability 
of amateurs to modify transceivers for the legitimate purposes 
discussed above.
    Subsection 2(b) makes amendments to section 302(d) of the 
Communications Act of 1934. Subsection 2(b) amends paragraph 
302(d)(1) to expand its scope to cover new communications 
technologies such as PCS and protected specialized mobile radio 
and paging services. It also requires the Commission to deny 
equipment authorization to scanners that are capable of being 
equipped with certain decoders. While the Committee does not 
intend to hamper the inclusion of consumer-friendly features on 
radio scanners such as external audio jacks, manufacturers 
should design scanners with ports that the manufacturer does 
not anticipate can be used: (1) to equip the scanner with a 
decoder that can convert digital cellular, personal 
communications services, or protected specialized mobile radio 
services to analog voice audio; (2) to convert protected paging 
services to alphanumeric text; or (3) to otherwise decrypt 
radio transmissions for the purposes of unauthorized 
interception. Thus, after the enactment of the Wireless Privacy 
Enhancement Act, manufacturers will be under an obligation to 
design scanners with consumer-friendly features that the 
manufacturer does not anticipate can be used to equip such 
scanners with prohibited decoders.
    The Committee notes that nothing in this bill is intended 
to impede the development and deployment of scanning receivers 
designed as an integral part of a licensed wireless 
communications station or wireless communications system, or 
designed as communications test equipment not available to the 
general public.
    Subsection 2(b) amends and replaces paragraph 302(d)(2) of 
the Communications Act of 1934 with a new provision providing 
the Commission with the authority to prescribe rules to enhance 
the privacy of users of frequencies shared by commercial 
services and the public safety community. Subsection 2(b) also 
adds a new paragraph 302(d)(3) that requires that the 
Commission consider requiring that scanning receivers be 
manufactured in a manner that prevents any tampering or 
alteration by the user that permits the device to be used 
unlawfully for interception or divulgence of radio 
communications. By this provision, the Committee intends that 
the order adopting the regulations reflect on the record a 
discussion of possible means for manufacturers to prevent 
tampering or alteration of scanners for such illegal use. New 
section 302(d)(4) requires the Commission to consider requiring 
scanning manufacturers to include warning labels on scanners 
notifying users of prohibited uses. The Committee, likewise, 
intends that the order adopting the regulations reflect on the 
record a discussion of the benefits of warning labels. New 
section 302(d)(5) adds a definition of ``protected'' to the 
statute to be used in conjunction with the amendments made by 
this bill to paragraph 302(d)(1).
    Subsection 2(b) recognizes that some frequencies available 
for commercial mobile services are shared with public safety 
and other private wireless users. Again, nothing in this 
legislation is intended to impede the development and 
deployment of scanning receivers designedas an integral part of 
a licensed wireless communications station or wireless communications 
system, or designed as communications test equipment not available to 
the general public.
    Subsection 2(c) requires the Commission to revise its 
rules, within 90 days, to implement the changes made by section 
2. For purposes of subsection 2(b) and the implementing 
regulations required by subsection 2(c), the Committee expects 
that the Commission will provide an effective date to the 
regulations that will provide an adequate transition period for 
scanner manufacturers to comply, so that scanner manufacturers 
or distributors are able to sell their current inventory. 
Therefore, the Committee expects the Commission to reflect on 
the record of the rulemaking required by Section 2, a 
discussion of the manufacturers' normal product development and 
production cycles, in determining effective dates for the 
relevant requirements within the regulations, while bearing in 
mind the overall purpose of the bill to increase the privacy of 
wireless users. Further, the Committee expects the Commission 
to promulgate regulations under paragraph 2(d)(2) which ensure 
that any privacy enhancement measures resulting from such 
regulations do not interfere with or impede the otherwise 
proper use of radio scanners for reception of public safety and 
other allowed frequencies under law.

Section 3. Unauthorized interception or publication of communications

    Subsection 3(a) makes amendments to section 705 of the 
Communications Act of 1934. Paragraph (1) alters the heading 
provided to section 705. Paragraph (2) strikes ``except as 
authorized by chapter 119, title 18, United States Code'' from 
the first sentence of section 705(a) of the Communications Act. 
This is later addressed by paragraph (4).
    Paragraph (3) eliminates the requirement that a violation 
of section 705(a) requires both interception and divulgence. 
The bill separates this provision into intentional interception 
or divulgence and, thus, the intentional interception itself is 
illegal. Similarly, intentional divulgence alone--divulging the 
contents of a radio communication knowing that it was 
intercepted without the sender's authorization--likewise is 
illegal. Intentional divulgence is actionable under this 
paragraph whether or not the party divulging the communication 
was the same party that intercepted the communication.
    Paragraph (4) preserves the authorization of certain 
interceptions or disclosures provided in Chapter 119 of Title 
18, United States Code. That chapter governs wire and 
electronic communications interception and interception of oral 
communications. Section 2511 of that chapter provides a number 
of exceptions to the chapter's prohibitions on interception. 
The majority of these exceptions relate to government 
interception. However, subsection 2511(g) provides a number of 
broad exceptions for the interception by private parties of 
radio communications, including those that are transmitted: (a) 
over a system that is configured for ready access by the 
general public; (b) by any station for the use of the general 
public, or that relates to ships, aircraft, vehicles, or 
persons in distress; (c) by any governmental, law enforcement, 
civil defense, private land mobile, or public safety 
communications system that is readily accessible to the general 
public; (d) by a station operating in the amateur, citizens 
band (CB); and, (e) by any marine or aeronautical 
communications system.
    Because the Committee preserved the Chapter 119 exceptions 
in its amendment of section 705(a) of the Communications Act, 
the Committee does not intend for the Commission or any other 
enforcement agency to investigate or fine parties for the 
interceptions authorized by Chapter 119. Therefore, the 
Committee does not intend for uses of scanning receivers and 
receiving radios such as short-wave radios, that are consistent 
with the section 2511(g) exceptions to be investigated or fined 
under section 705(a).
    Paragraph (5) increases the penalties for violating section 
705(a) to be consistent with those under ECPA, relating to the 
interception or divulgence prohibition. Currently, the fine for 
willful violation is $2,000, 6 months in jail, or both; under 
ECPA, the penalties can be increased based upon repeated 
violations. This paragraph (5), therefore, provides an 
additional penalty option.
    Paragraphs (6) and (7) make appropriate changes to 
paragraphs 705(e)(3) and (4) of the Communications Act to be 
consistent with the changes made by paragraph 3(a)(3) of the 
bill.
    Paragraph (8) adds a new paragraph 705(e)(7) of the 
Communications Act of 1934 which requires the FCC to 
investigate and take action, notwithstanding any other 
investigations by other agencies or departments, on possible 
violations of the Communications Act or Commission rules on 
wireless communications privacy. With regards to the 
responsibility for enforcement under this paragraph, the 
Committee does not intend to preclude the Department of Justice 
or the Federal Bureau of Investigation from initiating and 
conducting separate or parallel investigations of allegations 
of violations of Chapter 119 of Title 18 of the United States 
Code.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

COMMUNICATIONS ACT OF 1934

           *       *       *       *       *       *       *

                TITLE III--PROVISIONS RELATING TO RADIO

PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *

SEC. 302. DEVICES WHICH INTERFERE WITH RADIO RECEPTION.

  (a) * * *
  (b) No person shall manufacture, import, sell, offer for 
sale, or ship devices or home electronic equipment and systems, 
or use devices, which fail to comply with regulations 
promulgated pursuant to this section, 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.

           *       *       *       *       *       *       *

  [(d)(1) Within 180 days after the date of enactment of this 
subsection, the Commission shall prescribe and make effective 
regulations 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 
        allocated to the domestic cellular radio 
        telecommunications service,
          [(B) readily being altered by the user to receive 
        transmissions in such frequencies, or
          [(C) being equipped with decoders that convert 
        digital cellular transmissions to analog voice audio.
  [(2) Beginning 1 year after the effective date of the 
regulations adopted pursuant to paragraph (1), no receiver 
having the capabilities described in subparagraph (A), (B), or 
(C) of paragraph (1), as such capabilities are defined in such 
regulations, shall be manufactured in the United States or 
imported for use in the United States.]
  (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.

           *       *       *       *       *       *       *

TITLE VII--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *

SEC. 705. UNAUTHORIZED INTERCEPTION OR PUBLICATION OF COMMUNICATIONS.

  (a) [Except as authorized by chapter 119, title 18, United 
States Code, no person] No person receiving, assisting in 
receiving, transmitting, or assisting in transmitting, any 
interstate or foreign communication by wire or radio shall 
divulge or publish the existence, contents, substance, purport, 
effect, or meaning thereof, except through authorized channels 
of transmission or reception, (1)to any person other than the 
addressee, his agent, or attorney, (2) to a person employed or 
authorized to forward such communication to its destination, (3) to 
proper accounting or distributing officers of the various communicating 
centers over which the communication may be passed, (4) to the master 
of a ship under whom he is serving, (5) in response to a subpena issued 
by a court of competent jurisdiction, or (6) on demand of other lawful 
authority. No person not being authorized by the sender shall 
intentionally intercept any radio communication [and] or divulge or 
publish the existence, contents, substance, purport, effect, or meaning 
of such intercepted communication to any person. No person not being 
entitled thereto shall receive or assist in receiving any interstate or 
foreign communication by radio and use such communication (or any 
information therein contained) for his own benefit or for the benefit 
of another not entitled thereto. No person having received any 
intercepted radio communication or having become acquainted with the 
contents, substance, purport, effect, or meaning of such communication 
(or any part thereof) knowing that such communication was intercepted, 
shall divulge or publish the existence, contents, substance, purport, 
effect, or meaning of such communication (or any part thereof) or use 
such communication (or any information therein contained) for his own 
benefit or for the benefit of another not entitled thereto. [This 
section shall not apply to the receiving, divulging, publishing, or 
utilizing the contents of any radio communication which is transmitted 
by any station for the use of the general public, which relates to 
ships, aircraft, vehicles, or persons in distress, or which is 
transmitted by an amateur radio station operator or by a citizens band 
radio operator.] Nothing in this subsection prohibits an interception 
or disclosure of a communication as authorized by chapter 119 of title 
18, United States Code.

           *       *       *       *       *       *       *

  (e)(1) Any person who willfully violates subsection (a) shall 
be [fined not more than $2,000 or] imprisoned for not more than 
6 months, or fined under title 18, United States Code, or both.

           *       *       *       *       *       *       *

  (3)(A) Any person aggrieved by [any violation] any receipt, 
interception, divulgence, publication, or utilization of any 
communication in violation of subsection (a) or paragraph (4) 
of this subsection may bring a civil action in a United States 
district court or in any other court of competent jurisdiction.

           *       *       *       *       *       *       *

  (4) Any person who manufactures, assembles, modifies, 
imports, exports, sells, or distributes any electronic, 
mechanical, or other device or equipment, knowing or having 
reason to know that the device or equipment is primarily of 
assistance in the unauthorized decryption of satellite cable 
programming, or direct-to-home satellite services, or is 
intended for [any other activity prohibited by subsection (a)] 
any receipt, interception, divulgence, publication, or 
utilization of any communication in violation of subsection 
(a), shall be fined not more than $500,000 for each violation, 
or imprisoned for not more than 5 years for each violation, or 
both. For purposes of all penalties and remedies established 
for violations of this paragraph, the prohibited activity 
established herein as it applies to each such device shall be 
deemed a separate violation.

           *       *       *       *       *       *       *

  (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.

           *       *       *       *       *       *       *

                                
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