Calendar No. 684

103D CONGRESS

2D SESSION S. 2375

A BILL

To amend title 18, United States Code, to make

poses.law enforcement purposes, and for other puroperate in the interception of communications forclear a telecommunications carrier’s duty to coSEPTEMBER 28 (legislative day, SEPTEMBER 12), 1994

Reported with an amendment
II

Calendar No. 684

103D CONGRESS

2D SESSION S. 2375

To amend title 18, United States Code, to make clear a telecommunications

carrier’s duty to cooperate in the interception of communications for

law enforcement purposes, and for other purposes.

IN THE SENATE OF THE UNITED STATES

AUGUST 9 (legislative day, AUGUST 8), 1994

Mr. LEAHY introduced the following bill; which was read twice and referred

to the Committee on Commerce, Science, and Transportation

AUGUST 25 (legislative day, AUGUST 18), 1994

Reported by Mr. HOLLINGS, without amendment and without recommendation

Ordered referred to the Committee on the Judiciary

SEPTEMBER 28 (legislative day, SEPTEMBER 12), 1994

Reported by Mr. BIDEN, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To amend title 18, United States Code, to make clear a

telecommunications carrier’s duty to cooperate in the

interception of communications for law enforcement purposes, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. INTERCEPTION OF DIGITAL AND OTHER COM2 MUNICATIONS.

3 (a) IN GENERAL.—Part I of title 18, United States

4 Code, is amended by inserting after chapter 119 the fol5 lowing new chapter:

6 ‘‘CHAPTER 120—TELECOMMUNICATIONS

7 CARRIER ASSISTANCE TO THE GOV8 ERNMENT

‘‘Sec.

‘‘2601. Definitions.

‘‘2602. Assistance capability requirements.

‘‘2603. Notices of capacity requirements.

‘‘2604. Systems security and integrity.

‘‘2605. Cooperation of equipment manufacturers and providers of telecommunications support services.

‘‘2606. Technical requirements and standards; extension of compliance date.

‘‘2607. Enforcement orders.

‘‘2608. Reimbursement of telecommunications carriers.

9 ‘‘§ 2601. Definitions

10 ‘‘(a) DEFINITIONS.—In this chapter—

11 ‘‘the terms defined in section 2510 have, re12 spectively, the meanings stated in that section.

13 ‘‘ ‘call-identifying information’—

14 ‘‘(A) means all dialing or signalling infor15 mation associated with the origin, direction,

16 destination, or termination of each communica17 tion generated or received by the subscriber

18 equipment, facility, or service of a telecommuni19 cations carrier that is the subject of a court

20 order or lawful authorization; but
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1 ‘‘(B) does not include any information that

2 may disclose the physical location of the sub3 scriber (except to the extent that the location

4 may be determined from the telephone number).

5 ‘‘ ‘Commission’ means the Federal Communica6 tions Commission.

7 ‘‘ ‘government’ means the government of the

8 United States and any agency or instrumentality

9 thereof, the District of Columbia, any common10 wealth, territory, or possession of the United States,

11 and any State or political subdivision thereof author12 ized by law to conduct electronic surveillance.

13 ‘‘ ‘information services’—

14 ‘‘(A) means the offering of a capability for

15 generating, acquiring, storing, transforming,

16 processing, retrieving, utilizing, or making

17 available information via telecommunications;

18 and

19 ‘‘(B) includes electronic publishing and

20 messaging services; but

21 ‘‘(C) does not include any use of any such

22 capability for the management, control, or oper23 ation of a telecommunications system or the

24 management of a telecommunications service.
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1 ‘‘ ‘provider of telecommunications support serv2 ices’ means a person or entity that provides a prod3 uct, software, or service to a telecommunications

4 carrier that is integral to such carrier’s switching or

5 transmission of wire or electronic communications.

6 ‘‘ ‘telecommunications carrier’—

7 ‘‘(A) means a person or entity engaged in

8 the transmission or switching of wire or elec9 tronic communications as a common carrier for

10 hire (within the meaning of section 3(h) of the

11 Communications Act of 1934 (47 U.S.C.

12 153(h))); and

13 ‘‘(B) includes—

14 ‘‘(i) a person or entity engaged in pro15 viding commercial mobile service (as de16 fined in section 332(d) of the Communica17 tions Act of 1934 (47 U.S.C. 332(d))); and

18 ‘‘(ii) a person or entity engaged in

19 providing wire or electronic communication

20 switching or transmission service to the ex21 tent that the Commission finds that such

22 service is a replacement for a substantial

23 portion of the local telephone exchange

24 service and that it is in the public interest

25 to deem such a person or entity to be a
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1 telecommunications carrier for purposes of

2 this chapter; but

3 ‘‘(C) does not include persons or entities

4 insofar as they are engaged in providing infor5 mation services.

6 ‘‘§ 2602. Assistance capability requirements

7 ‘‘(a) CAPABILITY REQUIREMENTS.—Except as pro8 vided in subsections (b), (c), and (d) of this section, and

9 subject to section 2607(c), a telecommunications carrier

10 shall ensure that its services or facilities that provide a

11 customer or subscriber with the ability to originate, termi12 nate, or direct communications are capable of—

13 ‘‘(1) expeditiously isolating and enabling the

14 government to intercept, to the exclusion of any

15 other communications, all wire and electronic com16 munications carried by the carrier within a service

17 area to or from equipment, facilities, or services of

18 a subscriber of such carrier concurrently with their

19 transmission to or from the subscriber’s service, fa20 cility, or equipment or at such later time as may be

21 acceptable to the government;

22 ‘‘(2) expeditiously isolating and enabling the

23 government to access call-identifying information

24 that is reasonably available to the carrier—
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1 ‘‘(A) before, during, or immediately after

2 the transmission of a wire or electronic commu3 nication (or at such later time as may be ac4 ceptable to the government); and

5 ‘‘(B) in a manner that allows it to be asso6 ciated with the communication to which it per7 tains,

8 except that, with regard to information acquired

9 solely pursuant to the authority for pen registers

10 and trap and trace devices (as defined in section

11 3127), such call-identifying information shall not in12 clude any information that may disclose the physical

13 location of the subscriber (except to the extent that

14 the location may be determined from the telephone

15 number);

16 ‘‘(3) delivering intercepted communications and

17 call-identifying information to the government in a

18 format such that they may be transmitted by means

19 of facilities or services procured by the government

20 to a location other than the premises of the carrier;

21 and

22 ‘‘(4) facilitating authorized communications

23 interceptions and access to call-identifying informa24 tion unobtrusively and with a minimum of inter-
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1 ference with any subscriber’s telecommunications

2 service and in a manner that protects—

3 ‘‘(A) the privacy and security of commu4 nications and call-identifying information not

5 authorized to be intercepted; and

6 ‘‘(B) information regarding the govern7 ment’s interception of communications and ac8 cess to call-identifying information.

9 ‘‘(b) LIMITATIONS.—

10 ‘‘(1) DESIGN OF FEATURES AND SYSTEMS CON11 FIGURATIONS.—This chapter does not authorize any

12 law enforcement agency or officer—

13 ‘‘(A) to require any specific design of fea14 tures or system configurations to be adopted by

15 providers of wire or electronic communication

16 service, manufacturers of telecommunications

17 equipment, or providers of telecommunications

18 support services; or

19 ‘‘(B) to prohibit the adoption of any fea20 ture or service by providers of wire or electronic

21 communication service, manufacturers of tele22 communications equipment, or providers of tele23 communications support services.
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1 ‘‘(2) INFORMATION SERVICES AND INTER2 CONNECTION SERVICES AND FACILITIES.—The re3 quirements of subsection (a) do not apply to—

4 ‘‘(A) information services; or

5 ‘‘(B) services or facilities that support the

6 transport or switching of communications for

7 the sole purpose of interconnecting tele8 communications carriers or private networks.

9 ‘‘(3) ENCRYPTION.—A telecommunications car10 rier shall not be responsible for decrypting, or ensur11 ing the government’s ability to decrypt, any commu12 nication encrypted by a subscriber or customer, un13 less the encryption was provided by the carrier and

14 the carrier possesses the information necessary to

15 decrypt the communication.

16 ‘‘(c) EMERGENCY OR EXIGENT CIRCUMSTANCES.—In

17 emergency or exigent circumstances (including those de18 scribed in sections 2518 (7) or (11)(b) and 3125 of this

19 title and section 1805(e) of title 50), a carrier may fulfill

20 its responsibilities under subsection (a)(3) by allowing

21 monitoring at its premises if that is the only means of

22 accomplishing the interception or access.

23 ‘‘(d) MOBILE SERVICE ASSISTANCE REQUIRE24 MENTS.—A telecommunications carrier offering a feature

25 or service that allows subscribers to redirect, hand off, or
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1 assign their wire or electronic communications to another

2 service area or another service provider or to utilize facili3 ties in another service area or of another service provider

4 shall ensure that, when the carrier that had been providing

5 assistance for the interception of wire or electronic com6 munications or access to call-identifying information pur7 suant to a court order or lawful authorization no longer

8 has access to the content of such communications or call9 identifying information within the service area in which

10 interception has been occurring as a result of the subscrib11 er’s use of such a feature or service, information is avail12 able to the government (before, during, or immediately

13 after the transfer of such communications) identifying the

14 provider of wire or electronic communication service that

15 has acquired access to the communications.

16 ‘‘§ 2603. Notices of capacity requirements

17 ‘‘(a) NOTICES OF MAXIMUM AND INITIAL CAPACITY

18 REQUIREMENTS.—

19 ‘‘(1) IN GENERAL.—Not later than 1 year after

20 the date of enactment of this chapter, and after con21 sulting with State and local law enforcement agen22 cies, telecommunications carriers, providers of tele23 communications support services, and manufacturers

24 of telecommunications equipment, the Attorney Gen25 eral shall publish in the Federal Register and pro-
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1 vide to appropriate telecommunications carrier asso2 ciations, standard-setting organizations, and fora—

3 ‘‘(A) notice of the maximum capacity re4 quired to accommodate all of the communica5 tion interceptions, pen registers, and trap and

6 trace devices that the Attorney General esti7 mates that government agencies authorized to

8 conduct electronic surveillance may conduct and

9 use simultaneously; and

10 ‘‘(B) notice of the number of communica11 tion interceptions, pen registers, and trap and

12 trace devices, representing a portion of the

13 maximum capacity set forth under subpara14 graph (A), that the Attorney General estimates

15 that government agencies authorized to conduct

16 electronic surveillance may conduct and use si17 multaneously after the date that is 4 years

18 after the date of enactment of this chapter.

19 ‘‘(2) BASIS OF NOTICES.—The notices issued

20 under paragraph (1) may be based upon the type of

21 equipment, type of service, number of subscribers,

22 geographic location, or other measure.

23 ‘‘(b) COMPLIANCE WITH CAPACITY NOTICES.—

24 ‘‘(1) INITIAL CAPACITY.—Within 3 years after

25 the publication by the Attorney General of a notice
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1 of capacity requirements or within 4 years after the

2 date of enactment of this chapter, whichever is

3 longer, a telecommunications carrier shall ensure

4 that its systems are capable of—

5 ‘‘(A) expanding to the maximum capacity

6 set forth in the notice under paragraph (1)(A);

7 and

8 ‘‘(B) accommodating simultaneously the

9 number of interceptions, pen registers, and trap

10 and trace devices set forth in the notice under

11 paragraph (1)(B).

12 ‘‘(2) PERMANENT CAPACITY.—After the date

13 described in paragraph (1), a telecommunications

14 carrier shall ensure that it can accommodate expedi15 tiously any increase in the number of communication

16 interceptions, pen registers, and trap and trace de17 vices that authorized agencies may seek to conduct

18 and use, up to the maximum capacity requirement

19 set forth in the notice under paragraph (1)(A).

20 ‘‘(c) NOTICES OF INCREASED MAXIMUM CAPACITY

21 REQUIREMENTS.—

22 ‘‘(1) The Attorney General shall periodically

23 provide to telecommunications carriers written notice

24 of any necessary increases in the maximum capacity
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1 requirement set forth in the notice under subsection

2 (b)(1).

3 ‘‘(2) Within 3 years after receiving written no4 tice of increased capacity requirements under para5 graph (1), or within such longer time period as the

6 Attorney General may specify, a telecommunications

7 carrier shall ensure that its systems are capable of

8 expanding to the increased maximum capacity set

9 forth in the notice.

10 ‘‘§ 2604. Systems security and integrity

11 ‘‘A telecommunications carrier shall ensure that any

12 court ordered or lawfully authorized interception of com13 munications or access to call-identifying information ef14 fected within its switching premises can be activated only

15 with the affirmative intervention of an individual officer

16 or employee of the carrier.

17 ‘‘§ 2605. Cooperation of equipment manufacturers

18 and providers of telecommunications

19 support services

20 ‘‘(a) CONSULTATION.—A telecommunications carrier

21 shall consult, as necessary, in a timely fashion with manu22 facturers of its telecommunications transmission and

23 switching equipment and its providers of telecommuni24 cations support services for the purpose of identifying any

25 service or equipment, including hardware and software,
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1 that may require modification so as to permit compliance

2 with this chapter.

3 ‘‘(b) MODIFICATION OF EQUIPMENT AND SERV4 ICES.—Subject to section 2607(c), a manufacturer of tele5 communications transmission or switching equipment and

6 a provider of telecommunications support services shall,

7 on a reasonably timely basis and at a reasonable charge,

8 make available to the telecommunications carriers using

9 its equipment or services such modifications as are nec10 essary to permit such carriers to comply with this chapter.

11 ‘‘§ 2606. Technical requirements and standards; ex12 tension of compliance date

13 ‘‘(a) SAFE HARBOR.—

14 ‘‘(1) CONSULTATION.—To ensure the efficient

15 and industry-wide implementation of the assistance

16 capability requirements under section 2602, the At17 torney General, in coordination with other Federal,

18 State, and local law enforcement agencies, shall con19 sult with appropriate associations and standard-set20 ting organizations of the telecommunications indus21 try.

22 ‘‘(2) COMPLIANCE UNDER ACCEPTED STAND23 ARDS.—A telecommunications carrier shall be found

24 to be in compliance with the assistance capability re25 quirements under section 2602, and a manufacturer
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1 of telecommunications transmission or switching

2 equipment or a provider of telecommunications sup3 port services shall be found to be in compliance with

4 section 2605, if the carrier, manufacturer, or sup5 port service provider is in compliance with publicly

6 available technical requirements or standards are

7 adopted by an industry association or standard-set8 ting organization or by the Commission under sub9 section (b) to meet the requirements of section 2602.

10 ‘‘(3) ABSENCE OF STANDARDS.—The absence

11 of technical requirements or standards for imple12 menting the assistance capability requirements of

13 section 2602 shall not—

14 ‘‘(A) preclude a carrier, manufacturer, or

15 services provider from deploying a technology or

16 service; or

17 ‘‘(B) relieve a carrier, manufacturer, or

18 service provider of the obligations imposed by

19 section 2602 or 2605, as applicable.

20 ‘‘(b) FCC AUTHORITY.—

21 ‘‘(1) IN GENERAL.—If industry associations or

22 standard-setting organizations fail to issue technical

23 requirements or standards or if a government agen24 cy or any other person believes that such require25 ments or standards are deficient, the agency or per-
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1 son may petition the Commission to establish, by no2 tice and comment rulemaking or such other proceed3 ings as the Commission may be authorized to con4 duct, technical requirements or standards that—

5 ‘‘(A) meet the assistance capability re6 quirements of section 2602;

7 ‘‘(B) protect the privacy and security of

8 communications not authorized to be inter9 cepted; and

10 ‘‘(C) serve the policy of the United States

11 to encourage the provision of new technologies

12 and services to the public.

13 ‘‘(2) TRANSITION PERIOD.—If an industry tech14 nical requirement or standard is set aside or sup15 planted as a result of Commission action under this

16 section, the Commission, after consultation with the

17 Attorney General, shall establish a reasonable time

18 and conditions for compliance with and the transi19 tion to any new standard, including defining the ob20 ligations of telecommunications carriers under sec21 tion 2602 during any transition period.

22 ‘‘(c) EXTENSION OF COMPLIANCE DATE FOR FEA23 TURES AND SERVICES.—

24 ‘‘(1) PETITION.—A telecommunications carrier

25 proposing to deploy, or having deployed, a feature or
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1 service within 4 years after the date of enactment of

2 this chapter may petition the Commission for 1 or

3 more extensions of the deadline for complying with

4 the assistance capability requirements under section

5 2602.

6 ‘‘(2) GROUND FOR EXTENSION.—The Commis7 sion may, after affording a full opportunity for hear8 ing and after consultation with the Attorney Gen9 eral, grant an extension under this paragraph, if the

10 Commission determines that compliance with the as11 sistance capability requirements under section 2602

12 is not reasonably achievable through application of

13 technology available within the compliance period.

14 ‘‘(3) LENGTH OF EXTENSION.—An extension

15 under this paragraph shall extend for no longer than

16 the earlier of—

17 ‘‘(A) the date determined by the Commis18 sion as necessary for the carrier to comply with

19 the assistance capability requirements under

20 section 2602; or

21 ‘‘(B) the date that is 2 years after the date

22 on which the extension is granted.

23 ‘‘(4) APPLICABILITY OF EXTENSION.—An ex24 tension under this subsection shall apply to only that
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1 part of the carrier’s business on which the new fea2 ture or service is used.

3 ‘‘§ 2607. Enforcement orders

4 ‘‘(a) ENFORCEMENT BY COURT ISSUING SURVEIL5 LANCE ORDER.—If a court authorizing an interception

6 under chapter 119, a State statute, or the Foreign Intel7 ligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.)

8 or authorizing use of a pen register or a trap and trace

9 device under chapter 206 or a State statute finds that a

10 telecommunications carrier has failed to comply with the

11 requirements in this chapter, the court may direct that

12 the carrier comply forthwith and may direct that a pro13 vider of support services to the carrier or the manufac14 turer of the carrier’s transmission or switching equipment

15 furnish forthwith modifications necessary for the carrier

16 to comply.

17 ‘‘(b) ENFORCEMENT UPON APPLICATION BY ATTOR18 NEY GENERAL.—The Attorney General may apply to the

19 appropriate United States district court for, and the Unit20 ed States district courts shall have jurisdiction to issue,

21 an order directing that a telecommunications carrier, a

22 manufacturer of telecommunications transmission or

23 switching equipment, or a provider of telecommunications

24 support services comply with this chapter.
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1 ‘‘(c) GROUNDS FOR ISSUANCE.—A court shall issue

2 an order under subsection (a) or (b) only if the court finds

3 that—

4 ‘‘(1) alternative technologies or capabilities or

5 the facilities of another carrier are not reasonably

6 available to law enforcement for implementing the

7 interception of communications or access to call8 identifying information; and

9 ‘‘(2) compliance with the requirements of this

10 chapter is reasonably achievable through the applica11 tion of available technology to the feature or service

12 at issue or would have been reasonably achievable if

13 timely action had been taken.

14 ‘‘(d) TIME FOR COMPLIANCE.—Upon issuance of an

15 enforcement order under this section, the court shall speci16 fy a reasonable time and conditions for complying with

17 its order, considering the good faith efforts to comply in

18 a timely manner, any effect on the carrier’s, manufactur19 er’s, or service provider’s ability to continue to do busi20 ness, the degree of culpability or delay in undertaking ef21 forts to comply, and such other matters as justice may

22 require.

23 ‘‘(e) LIMITATION.—An order under this section may

24 not require a telecommunications carrier to meet the gov25 ernment’s demand for interception of communications and
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1 acquisition of call-identifying information to any extent in

2 excess of the capacity for which notice has been provided

3 under section 2603.

4 ‘‘(f) CIVIL PENALTY.—

5 ‘‘(1) IN GENERAL.—A court issuing an order

6 under this section against a telecommunications car7 rier, a manufacturer of telecommunications trans8 mission or switching equipment, or a provider of

9 telecommunications support services may impose a

10 civil penalty of up to $10,000 per day for each day

11 in violation after the issuance of the order or after

12 such future date as the court may specify.

13 ‘‘(2) CONSIDERATIONS.—In determining wheth14 er to impose a fine and in determining its amount,

15 the court shall take into account—

16 ‘‘(A) the nature, circumstances, and extent

17 of the violation;

18 ‘‘(B) the violator’s ability to pay, the viola19 tor’s good faith efforts to comply in a timely

20 manner, any effect on the violator’s ability to

21 continue to do business, the degree of culpabil22 ity, and the length of any delay in undertaking

23 efforts to comply; and

24 ‘‘(C) such other matters as justice may re25 quire.
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1 ‘‘(3) CIVIL ACTION.—The Attorney General

2 may file a civil action in the appropriate United

3 States district court to collect, and the United

4 States district courts shall have jurisdiction to im5 pose, such fines.

6 ‘‘§ 2608. Reimbursement of telecommunications car7 riers

8 ‘‘(a) IN GENERAL.—The Attorney General shall, sub9 ject to the availability of appropriations, reimburse tele10 communications carriers for all reasonable costs directly

11 associated with—

12 ‘‘(1) the modifications performed by carriers

13 prior to the effective date of section 2602 or prior

14 to the expiration of any extension granted under sec15 tion 2606(c) to establish the capabilities necessary

16 to comply with section 2602;

17 ‘‘(2) meeting the maximum capacity require18 ments set forth in the notice under section

19 2603(a)(1)(A); and

20 ‘‘(3) expanding existing facilities to accommo21 date simultaneously the number of interceptions, pen

22 registers and trap and trace devices for which notice

23 has been provided under section 2603(a)(1)(B).

24 ‘‘(b) PROCEDURES AND REGULATIONS.—Notwith25 standing any other law, the Attorney General may estab-
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1 lish any procedures and regulations deemed necessary to

2 effectuate timely and cost-efficient reimbursement to tele3 communications carriers for reimbursable costs incurred

4 under this chapter, under chapters 119 and 121, and

5 under the Foreign Intelligence Surveillance Act of 1978

6 (50 U.S.C. 1801 et seq.).

7 ‘‘(c) DISPUTE RESOLUTION.—If there is a dispute

8 between the Attorney General and a telecommunications

9 carrier regarding the amount of reasonable costs to be re10 imbursed under subsection (b), the dispute shall be re11 solved and the amount determined in a proceeding initi12 ated at the Commission under section 2606(b) or by the

13 court from which an enforcement order is sought under

14 section 2607.

15 ‘‘(d) LACK OF APPROPRIATED FUNDS.—The lack of

16 appropriated funds sufficient to reimburse telecommuni17 cations carriers for modifications under subsection (a)

18 shall be considered by the Commission or a court in deter19 mining whether compliance is reasonable under section

20 2607(c).’’.

21 (b) TECHNICAL AMENDMENT.—The part analysis for

22 part I of title 18, United States Code, is amended by in23 serting after the item relating to chapter 119 the following

24 new item:

‘‘120. Telecommunications carrier assistance to the Government ..................................................................... 2601’’.
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1 SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

2 There are authorized to be appropriated to carry out

3 section 2608 of title 18, United States Code, as added by

4 section 1—

5 (1) a total of $500,000,000 for fiscal years

6 1995, 1996, 1997, and 1998; and

7 (2) such sums as are necessary for each fiscal

8 year thereafter.

9 SEC. 3. EFFECTIVE DATE.

10 (a) IN GENERAL.—Except as provided in paragraph

11 (2), chapter 120 of title 18, United States Code, as added

12 by section 1, shall take effect on the date of enactment

13 of this Act.

14 (b) ASSISTANCE CAPABILITY AND SYSTEMS SECU15 RITY AND INTEGRITY REQUIREMENTS.—Sections 2602

16 and 2604 of title 18, United States Code, as added by

17 section 1, shall take effect on the date that is 4 years after

18 the date of enactment of this Act.

19 SEC. 4. REPORTS.

20 (a) REPORTS BY THE ATTORNEY GENERAL.—

21 (1) IN GENERAL.—On or before November 30,

22 1995, and on or before November 30 of each year

23 for 5 years thereafter, the Attorney General shall

24 submit to the Congress a report on the amounts

25 paid during the preceding fiscal year in reimburse26 ment to telecommunications carriers under section
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1 2608 of title 18, United States Code, as added by

2 section 1.

3 (2) CONTENTS.—A report under paragraph (1)

4 shall include—

5 (A) a detailed accounting of the amounts

6 paid to each carrier and the technology, feature

7 or service for which the amounts were paid; and

8 (B) projections of the amounts expected to

9 be paid in the current fiscal year, the carriers

10 to which reimbursement is expected to be paid,

11 and the technologies, services, or features for

12 which reimbursement is expected to be paid.

13 (b) REPORTS BY THE COMPTROLLER GENERAL.—

14 (1) IN GENERAL.—On or before April 1, 1996,

15 and April 1, 1998, the Comptroller General of the

16 United States, after consultation with the Attorney

17 General and the telecommunications industry, shall

18 submit to the Congress a report reflecting its audit

19 of the sums paid by the Attorney General to carriers

20 in reimbursement.

21 (2) CONTENTS.—A report under paragraph (1)

22 shall include the findings and conclusions of the

23 Comptroller General on the costs to be incurred

24 after the compliance date, including projections of

25 the amounts expected to be incurred and the tech-
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1 nologies, services, or features for which expenses are

2 expected to be incurred.

3 SEC. 5. CORDLESS TELEPHONES.

4 (a) DEFINITIONS.—Section 2510 of title 18, United

5 States Code, is amended—

6 (1) in paragraph (1) by striking ‘‘but such term

7 does not include’’ and all that follows through ‘‘base

8 unit’’; and

9 (2) in paragraph (12) by striking subparagraph

10 (A) and redesignating subparagraphs (B), (C), and

11 (D) as subparagraphs (A), (B), and (C), respec12 tively.

13 (b) PENALTY.—Section 2511 of title 18, United

14 States Code, is amended—

15 (1) in subsection (4)(b)(i) by inserting ‘‘a

16 cordless telephone communication that is transmit17 ted between the cordless telephone handset and the

18 base unit,’’ after ‘‘cellular telephone communica19 tion,’’; and

20 (2) in subsection (4)(b)(ii) by inserting ‘‘a

21 cordless telephone communication that is transmit22 ted between the cordless telephone handset and the

23 base unit,’’ after ‘‘cellular telephone communica24 tion,’’.
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1 SEC. 6. RADIO-BASED DATA COMMUNICATIONS.

2 Section 2510(16) of title 18, United States Code, is

3 amended—

4 (1) by striking ‘‘or’’ at the end of subparagraph

5 (D);

6 (2) by inserting ‘‘or’’ at the end of subpara7 graph (E); and

8 (3) by inserting after subparagraph (E) the fol9 lowing new subparagraph:

10 ‘‘(F) an electronic communication;’’

11 SEC. 7. PENALTIES FOR MONITORING RADIO COMMUNICA12 TIONS THAT ARE TRANSMITTED USING MOD13 ULATION TECHNIQUES WITH NONPUBLIC PA14 RAMETERS.

15 Section 2511(4)(b) of title 18, United States Code,

16 is amended by striking ‘‘or encrypted, then’’ and inserting

17 ‘‘, encrypted, or transmitted using modulation techniques

18 the essential parameters of which have been withheld from

19 the public with the intention of preserving the privacy of

20 such communication’’.

21 SEC. 8. TECHNICAL CORRECTION.

22 Section 2511(2)(a)(i) of title 18, United States Code,

23 is amended by striking ‘‘used in the transmission of a wire

24 communication’’ and inserting ‘‘used in the transmission

25 of a wire or electronic communication’’.
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1 SEC. 9. FRAUDULENT ALTERATION OF COMMERCIAL MO2 BILE RADIO INSTRUMENTS.

3 (a) OFFENSE.—Section 1029(a) of title 18, United

4 States Code, is amended—

5 (1) by striking ‘‘or’’ at the end of paragraph

6 (3); and

7 (2) by inserting after paragraph (4) the follow8 ing new paragraphs:

9 ‘‘(5) knowingly and with intent to defraud uses,

10 produces, traffics in, has control or custody of, or

11 possesses a telecommunications instrument that has

12 been modified or altered to obtain unauthorized use

13 of telecommunications services; or

14 ‘‘(6) knowingly and with intent to defraud uses,

15 produces, traffics in, has control or custody of, or

16 possesses—

17 ‘‘(A) a scanning receiver; or

18 ‘‘(B) hardware or software used for alter19 ing or modifying telecommunications instru20 ments to obtain unauthorized access to tele21 communications services,’’.

22 (b) PENALTY.—Section 1029(c)(2) of title 18, United

23 States Code, is amended by striking ‘‘(a)(1) or (a)(4)’’ and

24 inserting ‘‘(a) (1), (4), (5), or (6)’’.

25 (c) DEFINITIONS.—Section 1029(e) of title 18, Unit26 ed States Code, is amended—
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1 (1) in paragraph (1) by inserting ‘‘electronic se2 rial number, mobile identification number, personal

3 identification number, or other telecommunications

4 service, equipment, or instrument identifier,’’ after

5 ‘‘account number,’’;

6 (2) by striking ‘‘and’’ at the end of paragraph

7 (5);

8 (3) by striking the period at the end of para9 graph (6) and inserting ‘‘; and’’; and

10 (4) by adding at the end the following new

11 paragraph:

12 ‘‘(7) the term ‘scanning receiver’ means a de13 vice or apparatus that can be used to intercept a

14 wire or electronic communication in violation of

15 chapter 119.’’.

16 SEC. 10. TRANSACTIONAL DATA.

17 (a) DISCLOSURE OF RECORDS.—Section 2703 of title

18 18, United States Code, is amended—

19 (1) in subsection (c)—

20 (A) in subparagraph (B)—

21 (i) by striking clause (i); and

22 (ii) by redesignating clauses (ii), (iii),

23 (iv) as clauses (i), (ii), and (iii), respec24 tively; and
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1 (B) by adding at the end the following new

2 subparagraph:

3 ‘‘(C) A provider of electronic communica4 tion service or remote computing service shall

5 disclose to a governmental entity the name, bill6 ing address, and length of service of a sub7 scriber to or customer of such service and the

8 types of services the subscriber or customer uti9 lized, when the governmental entity uses an ad10 ministrative subpoena authorized by a Federal

11 or State statute or a Federal or State grand

12 jury or trial subpoena or any means available

13 under subparagraph (B).’’; and

14 (2) by amending the first sentence of subsection

15 (d) to read as follows: ‘‘A court order for disclosure

16 under subsection (b) or (c) may be issued by any

17 court that is a court of competent jurisdiction de18 scribed in section 3126(2)(A) and shall issue only if

19 the governmental entity offers specific and

20 articulable facts showing that there are reasonable

21 grounds to believe that the contents of a wire or

22 electronic communication, or the records or other in23 formation sought, are relevant and material to an

24 ongoing criminal investigation.’’.
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1 (b) PEN REGISTERS AND TRAP AND TRACE DE2 VICES.—Section 3121 of title 18, United States Code, is

3 amended—

4 (1) by redesignating subsection (c) as sub5 section (d); and

6 (2) by inserting after subsection (b) the follow7 ing new subsection:

8 ‘‘(c) LIMITATION.—A government agency authorized

9 to install and use a pen register under this chapter or

10 under State law, shall use technology reasonably available

11 to it that restricts the recording or decoding of electronic

12 or other impulses to the dialing and signalling information

13 utilized in call processing.’’.

14 SECTION 1. INTERCEPTION OF DIGITAL AND OTHER COM15 MUNICATIONS.

16 (a) IN GENERAL.—Part I of title 18, United States

17 Code, is amended by inserting after chapter 119 the follow18 ing new chapter:

19 ‘‘CHAPTER 120—TELECOMMUNICATIONS

20 CARRIER ASSISTANCE TO THE GOV21 ERNMENT

‘‘Sec.

‘‘2601. Definitions.

‘‘2602. Assistance capability requirements.

‘‘2603. Notices of capacity requirements.

‘‘2604. Systems security and integrity.

‘‘2605. Cooperation of equipment manufacturers and providers of telecommunications support services.

‘‘2606. Technical requirements and standards; extension of compliance date.

‘‘2607. Enforcement orders.
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‘‘2608. Payment of costs of telecommunications carriers.

1 ‘‘§ 2601. Definitions

2 ‘‘(a) DEFINITIONS.—In this chapter—

3 ‘‘the terms defined in section 2510 have, respec4 tively, the meanings stated in that section.

5 ‘‘ ‘call-identifying information’—

6 ‘‘(A) means all dialing or signalling infor7 mation that identifies the origin, direction, des8 tination, or termination of each communication

9 generated or received by the subscriber equip10 ment, facility, or service of a telecommunications

11 carrier that is the subject of a court order or

12 lawful authorization; but

13 ‘‘(B) does not include any information that

14 may disclose the physical location of the sub15 scriber (except to the extent that the location

16 may be determined from the telephone number).

17 ‘‘ ‘Commission’ means the Federal Communica18 tions Commission.

19 ‘‘ ‘government’ means the government of the

20 United States and any agency or instrumentality

21 thereof, the District of Columbia, any commonwealth,

22 territory, or possession of the United States, and any

23 State or political subdivision thereof authorized by

24 law to conduct electronic surveillance.

25 ‘‘ ‘information services’—
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1 ‘‘(A) means the offering of a capability for

2 generating, acquiring, storing, transforming,

3 processing, retrieving, utilizing, or making avail4 able information via telecommunications; and

5 ‘‘(B) includes electronic publishing and elec6 tronic messaging services; but

7 ‘‘(C) does not include any capability for a

8 telecommunications carrier’s internal manage9 ment, control, or operation of its telecommuni10 cations network.

11 ‘‘telecommunications support services’’ means a

12 product, software, or service used by a telecommuni13 cations carrier for the internal signaling or switching

14 functions of its telecommunications network.

15 ‘‘ ‘telecommunications carrier’—

16 ‘‘(A) means a person or entity engaged in

17 the transmission or switching of wire or elec18 tronic communications as a common carrier for

19 hire (within the meaning of section 3(h) of the

20 Communications Act of 1934 (47 U.S.C.

21 153(h)));

22 ‘‘(B) includes—

23 ‘‘(i) a person or entity engaged in pro24 viding commercial mobile service (as de-
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1 fined in section 332(d) of the Communica2 tions Act of 1934 (47 U.S.C. 332(d))); or

3 ‘‘(ii) a person or entity engaged in

4 providing wire or electronic communication

5 switching or transmission service to the ex6 tent that the Commission finds that such

7 service is a replacement for a substantial

8 portion of the local telephone exchange serv9 ice and that it is in the public interest to

10 deem such a person or entity to be a tele11 communications carrier for purposes of this

12 chapter; but

13 ‘‘(C) does not include persons or entities in14 sofar as they are engaged in providing informa15 tion services.

16 ‘‘§ 2602. Assistance capability requirements

17 ‘‘(a) CAPABILITY REQUIREMENTS.—Except as pro18 vided in subsections (b), (c), and (d) of this section, and

19 subject to section 2607(c), a telecommunications carrier

20 shall ensure that its services or facilities that provide a cus21 tomer or subscriber with the ability to originate, terminate,

22 or direct communications are capable of—

23 ‘‘(1) expeditiously isolating and enabling the

24 government to intercept, to the exclusion of any other

25 communications, all wire and electronic communica-
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1 tions carried by the carrier within a service area to

2 or from equipment, facilities, or services of a sub3 scriber of such carrier concurrently with their trans4 mission to or from the subscriber’s service, facility, or

5 equipment or at such later time as may be acceptable

6 to the government;

7 ‘‘(2) expeditiously isolating and enabling the

8 government to access call-identifying information that

9 is reasonably available to the carrier—

10 ‘‘(A) before, during, or immediately after

11 the transmission of a wire or electronic commu12 nication (or at such later time as may be accept13 able to the government); and

14 ‘‘(B) in a manner that allows it to be asso15 ciated with the communication to which it per16 tains,

17 except that, with regard to information acquired sole18 ly pursuant to the authority for pen registers and

19 trap and trace devices (as defined in section 3127),

20 such call-identifying information shall not include

21 any information that may disclose the physical loca22 tion of the subscriber (except to the extent that the lo23 cation may be determined from the telephone num24 ber);
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1 ‘‘(3) delivering intercepted communications and

2 call-identifying information to the government in a

3 format such that they may be transmitted by means

4 of facilities or services procured by the government to

5 a location other than the premises of the carrier; and

6 ‘‘(4) facilitating authorized communications

7 interceptions and access to call-identifying informa8 tion unobtrusively and with a minimum of inter9 ference with any subscriber’s telecommunications serv10 ice and in a manner that protects—

11 ‘‘(A) the privacy and security of commu12 nications and call-identifying information not

13 authorized to be intercepted; and

14 ‘‘(B) information regarding the govern15 ment’s interception of communications and ac16 cess to call-identifying information.

17 ‘‘(b) LIMITATIONS.—

18 ‘‘(1) DESIGN OF FEATURES AND SYSTEMS CON19 FIGURATIONS.—This chapter does not authorize any

20 law enforcement agency or officer—

21 ‘‘(A) to require any specific design of fea22 tures or system configurations to be adopted by

23 providers of wire or electronic communication

24 service, manufacturers of telecommunications
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1 equipment, or providers of telecommunications

2 support services; or

3 ‘‘(B) to prohibit the adoption of any feature

4 or service by providers of wire or electronic com5 munication service, manufacturers of tele6 communications equipment, or providers of tele7 communications support services.

8 ‘‘(2) INFORMATION SERVICES; PRIVATE NET9 WORKS AND INTERCONNECTION SERVICES AND FACILI10 TIES.—The requirements of subsection (a) do not

11 apply to—

12 ‘‘(A) information services; or

13 ‘‘(B) services or facilities that support the

14 transport or switching of communications for

15 private networks or for the sole purpose of inter16 connecting telecommunications carriers.

17 ‘‘(3) ENCRYPTION.—A telecommunications car18 rier shall not be responsible for decrypting, or ensur19 ing the government’s ability to decrypt, any commu20 nication encrypted by a subscriber or customer, unless

21 the encryption was provided by the carrier and the

22 carrier possesses the information necessary to decrypt

23 the communication.

24 ‘‘(c) EMERGENCY OR EXIGENT CIRCUMSTANCES.—In

25 emergency or exigent circumstances (including those de-
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1 scribed in sections 2518 (7) or (11)(b) and 3125 of this title

2 and section 1805(e) of title 50), a carrier at its discretion

3 may fulfill its responsibilities under subsection (a)(3) by

4 allowing monitoring at its premises if that is the only

5 means of accomplishing the interception or access.

6 ‘‘(d) MOBILE SERVICE ASSISTANCE REQUIRE7 MENTS.—A telecommunications carrier offering a feature or

8 service that allows subscribers to redirect, hand off, or as9 sign their wire or electronic communications to another

10 service area or another service provider or to utilize facili11 ties in another service area or of another service provider

12 shall ensure that, when the carrier that had been providing

13 assistance for the interception of wire or electronic commu14 nications or access to call-identifying information pursuant

15 to a court order or lawful authorization no longer has access

16 to the content of such communications or call-identifying

17 information within the service area in which interception

18 has been occurring as a result of the subscriber’s use of such

19 a feature or service, information is made available to the

20 government (before, during, or immediately after the trans21 fer of such communications) identifying the provider of

22 wire or electronic communication service that has acquired

23 access to the communications.
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1 ‘‘§ 2603. Notices of capacity requirements

2 ‘‘(a) NOTICES OF MAXIMUM AND ACTUAL CAPACITY

3 REQUIREMENTS.—

4 ‘‘(1) IN GENERAL.—Not later than 1 year after

5 the date of enactment of this chapter, after consulting

6 with State and local law enforcement agencies, tele7 communications carriers, providers of telecommuni8 cations support services, and manufacturers of tele9 communications equipment and after notice and com10 ment, the Attorney General shall publish in the Fed11 eral Register and provide to appropriate tele12 communications carrier associations, standard-setting

13 organizations, and for a—

14 ‘‘(A) notice of the maximum capacity re15 quired to accommodate all of the communication

16 interceptions, pen registers, and trap and trace

17 devices that the Attorney General estimates that

18 government agencies authorized to conduct elec19 tronic surveillance may conduct and use simul20 taneously; and

21 ‘‘(B) notice of the number of communication

22 interceptions, pen registers, and trap and trace

23 devices, representing a portion of the maximum

24 capacity set forth under subparagraph (A), that

25 the Attorney General estimates that government

26 agencies authorized to conduct electronic surveil-
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1 lance may conduct and use simultaneously after

2 the date that is 4 years after the date of enact3 ment of this chapter.

4 ‘‘(2) BASIS OF NOTICES.—The notices issued

5 under paragraph (1) may be based upon the type of

6 equipment, type of service, number of subscribers, geo7 graphic location, or other measure.

8 ‘‘(b) COMPLIANCE WITH CAPACITY NOTICES.—

9 ‘‘(1) INITIAL CAPACITY.—Within 3 years after

10 the publication by the Attorney General of a notice of

11 capacity requirements or within 4 years after the date

12 of enactment of this chapter, whichever is longer, a

13 telecommunications carrier shall ensure that its sys14 tems are capable of—

15 ‘‘(A) expanding to the maximum capacity

16 set forth in the notice under subsection (a)(1)(A);

17 and

18 ‘‘(B) accommodating simultaneously the

19 number of interceptions, pen registers, and trap

20 and trace devices set forth in the notice under

21 subsection (a)(1)(B).

22 ‘‘(2) EXPANSION TO MAXIMUM CAPACITY.—After

23 the date described in paragraph (1), a telecommuni24 cations carrier shall ensure that it can accommodate

25 expeditiously any increase in the number of commu-
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1 nication interceptions, pen registers, and trap and

2 trace devices that authorized agencies may seek to

3 conduct and use, up to the maximum capacity re4 quirement set forth in the notice under subsection

5 (a)(1)(A).

6 ‘‘(c) NOTICES OF INCREASED MAXIMUM CAPACITY RE7 QUIREMENTS.—

8 ‘‘(1) The Attorney General shall periodically

9 provide to telecommunications carriers written notice

10 of any necessary increases in the maximum capacity

11 requirement set forth in the notice under subsection

12 (a)(1)(A).

13 ‘‘(2) Within 3 years after receiving written no14 tice of increased capacity requirements under para15 graph (1), or within such longer time period as the

16 Attorney General may specify, a telecommunications

17 carrier shall ensure that its systems are capable of ex18 panding to the increased maximum capacity set forth

19 in the notice.

20 ‘‘§ 2604. Systems security and integrity

21 ‘‘A telecommunications carrier shall ensure that any

22 court ordered or lawfully authorized interception of commu23 nications or access to call-identifying information effected

24 within its switching premises can be activated only with
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1 the affirmative intervention of an individual officer or em2 ployee of the carrier.

3 ‘‘§ 2605. Cooperation of equipment manufacturers and

4 providers of telecommunications support

5 services

6 ‘‘(a) CONSULTATION.—A telecommunications carrier

7 shall consult, as necessary, in a timely fashion with manu8 facturers of its telecommunications transmission and

9 switching equipment and its providers of telecommuni10 cations support services for the purpose of identifying any

11 service or equipment, including hardware and software,

12 that may require modification so as to permit compliance

13 with this chapter.

14 ‘‘(b) MODIFICATION OF EQUIPMENT AND SERVICES.—

15 Subject to section 2607(c), a manufacturer of telecommuni16 cations transmission or switching equipment and a pro17 vider of telecommunications support services shall, on a rea18 sonably timely basis and at a reasonable charge, make

19 available to the telecommunications carriers using its

20 equipment or services such modifications as are necessary

21 to permit such carriers to comply with this chapter.

22 ‘‘§ 2606. Technical requirements and standards; exten23 sion of compliance date

24 ‘‘(a) SAFE HARBOR.—
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1 ‘‘(1) CONSULTATION.—To ensure the efficient

2 and industry-wide implementation of the assistance

3 capability requirements under section 2602, the Attor4 ney General, in coordination with other Federal,

5 State, and local law enforcement agencies, shall con6 sult with appropriate associations and standard-set7 ting organizations of the telecommunications industry

8 and with representatives of users of telecommuni9 cations services and facilities.

10 ‘‘(2) COMPLIANCE UNDER ACCEPTED STAND11 ARDS.—A telecommunications carrier shall be found

12 to be in compliance with the assistance capability re13 quirements under section 2602, and a manufacturer

14 of telecommunications transmission or switching

15 equipment or a provider of telecommunications sup16 port services shall be found to be in compliance with

17 section 2605, if the carrier, manufacturer, or support

18 service provider is in compliance with publicly avail19 able technical requirements or standards adopted by

20 an industry association or standard-setting organiza21 tion or by the Commission under subsection (b) to

22 meet the requirements of section 2602.

23 ‘‘(3) ABSENCE OF STANDARDS.—The absence of

24 technical requirements or standards for implementing
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1 the assistance capability requirements of section 2602

2 shall not—

3 ‘‘(A) preclude a carrier, manufacturer, or

4 services provider from deploying a technology or

5 service; or

6 ‘‘(B) relieve a carrier, manufacturer, or

7 service provider of the obligations imposed by

8 section 2602 or 2605, as applicable.

9 ‘‘(b) FCC AUTHORITY.—

10 ‘‘(1) IN GENERAL.—If industry associations or

11 standard-setting organizations fail to issue technical

12 requirements or standards or if a government agency

13 or any other person believes that such requirements or

14 standards are deficient, the agency or person may pe15 tition the Commission to establish, by notice and

16 comment rulemaking or such other proceedings as the

17 Commission may be authorized to conduct, technical

18 requirements or standards that—

19 ‘‘(A) meet the assistance capability require20 ments of section 2602;

21 ‘‘(B) protect the privacy and security of

22 communications not authorized to be intercepted;

23 and
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1 ‘‘(C) serve the policy of the United States to

2 encourage the provision of new technologies and

3 services to the public.

4 ‘‘(2) TRANSITION PERIOD.—If an industry tech5 nical requirement or standard is set aside or sup6 planted as a result of Commission action under this

7 section, the Commission, after consultation with the

8 Attorney General, shall establish a reasonable time

9 and conditions for compliance with and the transi10 tion to any new standard, including defining the obli11 gations of telecommunications carriers under section

12 2602 during any transition period.

13 ‘‘(c) EXTENSION OF COMPLIANCE DATE FOR FEA14 TURES AND SERVICES.—

15 ‘‘(1) PETITION.—A telecommunications carrier

16 proposing to deploy, or having deployed, a feature or

17 service within 4 years after the date of enactment of

18 this chapter may petition the Commission for 1 or

19 more extensions of the deadline for complying with

20 the assistance capability requirements under section

21 2602.

22 ‘‘(2) GROUND FOR EXTENSION.—The Commis23 sion may, after affording a full opportunity for hear24 ing and after consultation with the Attorney General,

25 grant an extension under this paragraph, if the Com-
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1 mission determines that compliance with the assist2 ance capability requirements under section 2602 is

3 not reasonably achievable through application of tech4 nology available within the compliance period.

5 ‘‘(3) LENGTH OF EXTENSION.—An extension

6 under this paragraph shall extend for no longer than

7 the earlier of—

8 ‘‘(A) the date determined by the Commis9 sion as necessary for the carrier to comply with

10 the assistance capability requirements under sec11 tion 2602; or

12 ‘‘(B) the date that is 2 years after the date

13 on which the extension is granted.

14 ‘‘(4) APPLICABILITY OF EXTENSION.—An exten15 sion under this subsection shall apply to only that

16 part of the carrier’s business on which the new feature

17 or service is used.

18 ‘‘§ 2607. Enforcement orders

19 ‘‘(a) ENFORCEMENT BY COURT ISSUING SURVEIL20 LANCE ORDER.—If a court authorizing an interception

21 under chapter 119, a State statute, or the Foreign Intel22 ligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.)

23 or authorizing use of a pen register or a trap and trace

24 device under chapter 206 or a State statute finds that a

25 telecommunications carrier has failed to comply with the
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1 requirements in this chapter, the court may direct that the

2 carrier comply forthwith and may direct that a provider

3 of support services to the carrier or the manufacturer of

4 the carrier’s transmission or switching equipment furnish

5 forthwith modifications necessary for the carrier to comply.

6 ‘‘(b) ENFORCEMENT UPON APPLICATION BY ATTORNEY

7 GENERAL.—The Attorney General may apply to the appro8 priate United States district court for, and the United

9 States district courts shall have jurisdiction to issue, an

10 order directing that a telecommunications carrier, a manu11 facturer of telecommunications transmission or switching

12 equipment, or a provider of telecommunications support

13 services comply with this chapter.

14 ‘‘(c) GROUNDS FOR ISSUANCE.—A court shall issue an

15 order under subsection (a) or (b) only if the court finds

16 that—

17 ‘‘(1) alternative technologies or capabilities or

18 the facilities of another carrier are not reasonably

19 available to law enforcement for implementing the

20 interception of communications or access to call-iden21 tifying information; and

22 ‘‘(2) compliance with the requirements of this

23 chapter is reasonably achievable through the applica24 tion of available technology to the feature or service
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1 at issue or would have been reasonably achievable if

2 timely action had been taken.

3 ‘‘(d) TIME FOR COMPLIANCE.—Upon issuance of an

4 enforcement order under this section, the court shall specify

5 a reasonable time and conditions for complying with its

6 order, considering the good faith efforts to comply in a time7 ly manner, any effect on the carrier’s, manufacturer’s, or

8 service provider’s ability to continue to do business, the de9 gree of culpability or delay in undertaking efforts to com10 ply, and such other matters as justice may require.

11 ‘‘(e) LIMITATION.—An order under this section may

12 not require a telecommunications carrier to meet the gov13 ernment’s demand for interception of communications and

14 acquisition of call-identifying information to any extent in

15 excess of the capacity for which notice has been provided

16 under section 2603.

17 ‘‘(f) CIVIL PENALTY.—

18 ‘‘(1) IN GENERAL.—A court issuing an order

19 under this section against a telecommunications car20 rier, a manufacturer of telecommunications trans21 mission or switching equipment, or a provider of tele22 communications support services may impose a civil

23 penalty of up to $10,000 per day for each day in vio24 lation after the issuance of the order or after such fu25 ture date as the court may specify.
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1 ‘‘(2) CONSIDERATIONS.—In determining whether

2 to impose a fine and in determining its amount, the

3 court shall take into account—

4 ‘‘(A) the nature, circumstances, and extent

5 of the violation;

6 ‘‘(B) the violator’s ability to pay, the viola7 tor’s good faith efforts to comply in a timely

8 manner, any effect on the violator’s ability to

9 continue to do business, the degree of culpability,

10 and the length of any delay in undertaking ef11 forts to comply; and

12 ‘‘(C) such other matters as justice may re13 quire.

14 ‘‘(3) CIVIL ACTION.—The Attorney General may

15 file a civil action in the appropriate United States

16 district court to collect, and the United States district

17 courts shall have jurisdiction to impose, such fines.

18 ‘‘§ 2608. Payment of costs of telecommunications car19 riers

20 ‘‘(a) EQUIPMENT, FEATURES, AND SERVICES DE21 PLOYED BEFORE DATE OF ENACTMENT; CAPACITY

22 COSTS.—The Attorney General shall, subject to the avail23 ability of appropriations, pay telecommunications carriers

24 for all reasonable costs directly associated with—
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1 ‘‘(1) the modifications performed by carriers

2 prior to the effective date of section 2602 or prior to

3 the expiration of any extension granted under section

4 2606(c) to establish, with respect to equipment, fea5 tures, and services deployed before the date of enact6 ment of this chapter, the capabilities necessary to

7 comply with section 2602;

8 ‘‘(2) meeting the maximum capacity require9 ments set forth in the notice under section

10 2603(a)(1)(A); and

11 ‘‘(3) expanding existing facilities to accommo12 date simultaneously the number of interceptions, pen

13 registers and trap and trace devices for which notice

14 has been provided under section 2603(a)(1)(B).

15 ‘‘(b) EQUIPMENT, FEATURES, AND SERVICES DE16 PLOYED ON OR AFTER DATE OF ENACTMENT.—

17 ‘‘(1) IN GENERAL.—If compliance with the as18 sistance capability requirements of section 2602 is not

19 reasonably achievable with respect to equipment, fea20 tures, or services deployed on or after the date of en21 actment of this chapter, the Attorney General, on

22 application of a telecommunications carrier, may pay

23 the telecommunications carrier reasonable costs di24 rectly associated with achieving compliance.
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1 ‘‘(2) CONSIDERATION.—In determining whether

2 compliance with the assistance capability require3 ments of section 2602 is reasonably achievable with

4 respect to any equipment, feature, or service deployed

5 the date of enactment of this chapter, consideration

6 shall be given to the time when the equipment, fea7 ture, or service was deployed.

8 ‘‘(c) ALLOCATION OF FUNDS FOR PAYMENT.—The At9 torney General shall allocate funds appropriated to carry

10 out this chapter in accordance with law enforcement prior11 ities determined by the Attorney General.

12 ‘‘(d) FAILURE TO MAKE PAYMENT WITH RESPECT TO

13 EQUIPMENT, FEATURES, AND SERVICES DEPLOYED BE14 FORE DATE OF ENACTMENT.—

15 ‘‘(1) CONSIDERED TO BE IN COMPLIANCE.—Un16 less the Attorney General has agreed to pay the tele17 communications carrier for all reasonable costs di18 rectly associated with modifications necessary to

19 bring the equipment, feature, or service into actual

20 compliance with those requirements, provided the car21 rier has requested payment in accordance with proce22 dures promulgated pursuant to subsection (e), any

23 equipment, feature, or service of a telecommunications

24 carrier deployed before the date of enactment of this

25 chapter shall be considered to be in compliance with
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1 the assistance capability requirements of section 2602

2 unless the equipment, feature, or service is replaced or

3 significantly upgraded or otherwise undergoes major

4 modification.

5 ‘‘(2) LIMITATION ON ORDER.—An order under

6 section 2607 shall not require a telecommunications

7 carrier to modify, for the purpose of complying with

8 the assistance capability requirements of section 2602,

9 any equipment, feature, or service deployed before the

10 date of enactment of this chapter unless the Attorney

11 General has agreed to pay the telecommunications

12 carrier for all reasonable costs directly associated

13 with modifications necessary to bring the equipment,

14 feature, or service into actual compliance with those

15 requirements.

16 ‘‘(e) PROCEDURES AND REGULATIONS.—Notwith17 standing any other law, the Attorney General shall, after

18 notice and comment, establish any procedures and regula19 tions deemed necessary to effectuate timely and cost-efficient

20 payment to telecommunications carriers for compensable

21 costs incurred under this chapter, under chapters 119 and

22 121, and under the Foreign Intelligence Surveillance Act

23 of 1978 (50 U.S.C. 1801 et seq.).

24 ‘‘(f) DISPUTE RESOLUTION.—If there is a dispute be25 tween the Attorney General and a telecommunications car-
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1 rier regarding the amount of reasonable costs to be paid

2 under subsection (a), the dispute shall be resolved and the

3 amount determined in a proceeding initiated at the Com4 mission or by the court from which an enforcement order

5 is sought under section 2607.’’.

6 (b) TECHNICAL AMENDMENT.—The part analysis for

7 part I of title 18, United States Code, is amended by insert8 ing after the item relating to chapter 119 the following new

9 item:

‘‘120. Telecommunications carrier assistance to the Government ........................................................................... 2601’’.

10 SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

11 There are authorized to be appropriated to carry out

12 section 2608 of title 18, United States Code, as added by

13 section 1—

14 (1) a total of $500,000,000 for fiscal years 1995,

15 1996, and 1997; and

16 (2) such sums as are necessary for each fiscal

17 year thereafter,

18 such sums to remain available until expended.

19 SEC. 3. EFFECTIVE DATE.

20 (a) IN GENERAL.—Except as provided in paragraph

21 (2), chapter 120 of title 18, United States Code, as added

22 by section 1, shall take effect on the date of enactment of

23 this Act.
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1 (b) ASSISTANCE CAPABILITY AND SYSTEMS SECURITY

2 AND INTEGRITY REQUIREMENTS.—Sections 2602 and 2604

3 of title 18, United States Code, as added by section 1, shall

4 take effect on the date that is 4 years after the date of enact5 ment of this Act.

6 SEC. 4. REPORTS.

7 (a) REPORTS BY THE ATTORNEY GENERAL.—

8 (1) IN GENERAL.—On or before November 30,

9 1995, and on or before November 30 of each year for

10 5 years thereafter, the Attorney General shall submit

11 to Congress and make available to the public a report

12 on the amounts paid during the preceding fiscal year

13 in payment to telecommunications carriers under sec14 tion 2608 of title 18, United States Code, as added

15 by section 1.

16 (2) CONTENTS.—A report under paragraph (1)

17 shall include—

18 (A) a detailed accounting of the amounts

19 paid to each carrier and the technology, equip20 ment, feature or service for which the amounts

21 were paid; and

22 (B) projections of the amounts expected to

23 be paid in the current fiscal year, the carriers to

24 which payment is expected to be made, and the
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1 technologies, equipment, features or services for

2 which payment is expected to be made.

3 (b) REPORTS BY THE COMPTROLLER GENERAL.—

4 (1) PAYMENTS FOR MODIFICATIONS.—On or be5 fore April 1, 1996, and April 1, 1998, the Comptroller

6 General of the United States, after consultation with

7 the Attorney General and the telecommunications in8 dustry, shall submit to the Congress a report reflect9 ing its analysis of the reasonableness and cost-effec10 tiveness of the payments made by the Attorney Gen11 eral to telecommunications carriers for modifications

12 necessary to ensure compliance with chapter 120 of

13 title 18, United States Code, as added by section 1.

14 (2) COMPLIANCE COST ESTIMATES.—A report

15 under paragraph (1) shall include the findings and

16 conclusions of the Comptroller General on the costs to

17 be incurred after the compliance date, including pro18 jections of the amounts expected to be incurred and

19 the technologies, equipment, features or services for

20 which expenses are expected to be incurred by tele21 communications carriers to comply with the assist22 ance capability requirements in the first 5 years after

23 the effective date of section 2602.
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1 SEC. 5. CORDLESS TELEPHONES.

2 (a) DEFINITIONS.—Section 2510 of title 18, United

3 States Code, is amended—

4 (1) in paragraph (1) by striking ‘‘but such term

5 does not include’’ and all that follows through ‘‘base

6 unit’’; and

7 (2) in paragraph (12) by striking subparagraph

8 (A) and redesignating subparagraphs (B), (C), and

9 (D) as subparagraphs (A), (B), and (C), respectively.

10 (b) PENALTY.—Section 2511 of title 18, United States

11 Code, is amended—

12 (1) in subsection (4)(b)(i) by inserting ‘‘a

13 cordless telephone communication that is transmitted

14 between the cordless telephone handset and the base

15 unit,’’ after ‘‘cellular telephone communication,’’; and

16 (2) in subsection (4)(b)(ii) by inserting ‘‘a

17 cordless telephone communication that is transmitted

18 between the cordless telephone handset and the base

19 unit,’’ after ‘‘cellular telephone communication,’’.

20 SEC. 6. RADIO-BASED DATA COMMUNICATIONS.

21 Section 2510(16) of title 18, United States Code, is

22 amended—

23 (1) by striking ‘‘or’’ at the end of subparagraph

24 (D);

25 (2) by inserting ‘‘or’’ at the end of subparagraph

26 (E); and
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1 (3) by inserting after subparagraph (E) the fol2 lowing new subparagraph:

3 ‘‘(F) an electronic communication;’’

4 SEC. 7. PENALTIES FOR MONITORING RADIO COMMUNICA5 TIONS THAT ARE TRANSMITTED USING MOD6 ULATION TECHNIQUES WITH NONPUBLIC PA7 RAMETERS.

8 Section 2511(4)(b) of title 18, United States Code, is

9 amended by striking ‘‘or encrypted, then’’ and inserting ‘‘,

10 encrypted, or transmitted using modulation techniques the

11 essential parameters of which have been withheld from the

12 public with the intention of preserving the privacy of such

13 communication’’.

14 SEC. 8. TECHNICAL CORRECTION.

15 Section 2511(2)(a)(i) of title 18, United States Code,

16 is amended by striking ‘‘used in the transmission of a wire

17 communication’’ and inserting ‘‘used in the transmission

18 of a wire or electronic communication’’.

19 SEC. 9. FRAUDULENT ALTERATION OF COMMERCIAL MO20 BILE RADIO INSTRUMENTS.

21 (a) OFFENSE.—Section 1029(a) of title 18, United

22 States Code, is amended—

23 (1) by striking ‘‘or’’ at the end of paragraph (3);

24 and
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1 (2) by inserting after paragraph (4) the follow2 ing new paragraphs:

3 ‘‘(5) knowingly and with intent to defraud uses,

4 produces, traffics in, has control or custody of, or pos5 sesses a telecommunications instrument that has been

6 modified or altered to obtain unauthorized use of tele7 communications services; or

8 ‘‘(6) knowingly and with intent to defraud uses,

9 produces, traffics in, has control or custody of, or pos10 sesses—

11 ‘‘(A) a scanning receiver; or

12 ‘‘(B) hardware or software used for altering

13 or modifying telecommunications instruments to

14 obtain unauthorized access to telecommuni15 cations services,’’.

16 (b) PENALTY.—Section 1029(c)(2) of title 18, United

17 States Code, is amended by striking ‘‘(a)(1) or (a)(4)’’ and

18 inserting ‘‘(a) (1), (4), (5), or (6)’’.

19 (c) DEFINITIONS.—Section 1029(e) of title 18, United

20 States Code, is amended—

21 (1) in paragraph (1) by inserting ‘‘electronic se22 rial number, mobile identification number, personal

23 identification number, or other telecommunications

24 service, equipment, or instrument identifier,’’ after

25 ‘‘account number,’’;
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1 (2) by striking ‘‘and’’ at the end of paragraph

2 (5);

3 (3) by striking the period at the end of para4 graph (6) and inserting ‘‘; and’’; and

5 (4) by adding at the end the following new para6 graph:

7 ‘‘(7) the term ‘scanning receiver’ means a device

8 or apparatus that can be used to intercept a wire or

9 electronic communication in violation of chapter

10 119.’’.

11 SEC. 10. TRANSACTIONAL DATA.

12 (a) DISCLOSURE OF RECORDS.—Section 2703 of title

13 18, United States Code, is amended—

14 (1) in subsection (c)(1)—

15 (A) in subparagraph (B)—

16 (i) by striking clause (i); and

17 (ii) by redesignating clauses (ii), (iii),

18 and (iv) as clauses (i), (ii), and (iii), re19 spectively; and

20 (B) by adding at the end the following new

21 subparagraph:

22 ‘‘(C) A provider of electronic communica23 tion service or remote computing service shall

24 disclose to a governmental entity the name, ad25 dress, telephone toll billing records, and length of
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1 service of a subscriber to or customer of such

2 service and the types of services the subscriber or

3 customer utilized, when the governmental entity

4 uses an administrative subpoena authorized by a

5 Federal or State statute or a Federal or State

6 grand jury or trial subpoena or any means

7 available under subparagraph (B).’’; and

8 (2) by amending the first sentence of subsection

9 (d) to read as follows: ‘‘A court order for disclosure

10 under subsection (b) or (c) may be issued by any

11 court that is a court of competent jurisdiction de12 scribed in section 3126(2)(A) and shall issue only if

13 the governmental entity offers specific and articulable

14 facts showing that there are reasonable grounds to be15 lieve that the contents of a wire or electronic commu16 nication, or the records or other information sought,

17 are relevant and material to an ongoing criminal in18 vestigation.’’.

19 (b) PEN REGISTERS AND TRAP AND TRACE DE20 VICES.—Section 3121 of title 18, United States Code, is

21 amended—

22 (1) by redesignating subsection (c) as subsection

23 (d); and

24 (2) by inserting after subsection (b) the following

25 new subsection:
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1 ‘‘(c) LIMITATION.—A government agency authorized to

2 install and use a pen register under this chapter or under

3 State law, shall use technology reasonably available to it

4 that restricts the recording or decoding of electronic or other

5 impulses to the dialing and signalling information utilized

6 in call processing.’’.

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