To amend title 18, United States Code, to protect youth from exploitation by adults using the Internet, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet Stopping Adults 
Facilitating the Exploitation of Today's Youth Act (SAFETY) of 2007''.

SEC. 2. FINANCIAL FACILITATION OF ACCESS TO CHILD PORNOGRAPHY.

    (a) Offense.--Chapter 95 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 1960A. Financial facilitation of access to child pornography
    ``Whoever knowingly conducts, or attempts or conspires to conduct, 
a financial transaction (as defined in section 1956(c)) in or affecting 
interstate or foreign commerce, knowing that such transaction will 
facilitate access to, or the possession of, child pornography (as 
defined in section 2256) shall be fined under this title or imprisoned 
not more than 20 years, or both.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 95 of title 18, United States Code, is amended by adding at the 
end the following new item:

``1960A. Financial facilitation of access to child pornography.''.

SEC. 3. INTERNET FACILITATION OF CHILD PORNOGRAPHY AND EXPLOITATION OF 
              CHILDREN.

    (a) Offense.--Chapter 95 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 1960B. Internet facilitation of child pornography and 
              exploitation of children
    ``(a) Offense.--Whoever, being an Internet content hosting provider 
or email service provider, knowingly engages in any conduct the 
provider knows or has reason to believe facilitates access to, or the 
possession of, child pornography (as defined in section 2256) shall be 
fined under this title or imprisoned not more than 10 years, or both.
    ``(b) Definitions.--As used in this section--
            ``(1) the term `Internet content hosting provider' means a 
        service that--
                    ``(A) stores, through electromagnetic or other 
                means, electronic data, including the content of web 
                pages, electronic mail, documents, images, audio and 
                video files, online discussion boards, and weblogs; and
                    ``(B) makes such data available via the Internet
            ``(2) the term `email service provider' means a person 
        that--
                    ``(A) provides a service, using the Internet, for 
                the transmission, receipt, storage, and retrieval, by 
                registered users, of electronic mail messages; and
                    ``(B) receives the content of, and recipient list 
                for, electronic mail messages that it transmits, 
                receives, or stores for the person or entity procuring 
                such services.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 95 of title 18, United States Code, is amended by adding at the 
end the following new item:

``1960B. Internet facilitation of child pornography and exploitation of 
                            children''.

SEC. 4. CHILD PORNOGRAPHY REPORTING.

    (a) Child Pornography Reporting.--Section 227(b)(4) of the Victims 
of Child Abuse Act of 1990 (42 U.S.C. 13032(b)(4)) is amended to read 
as follows:
            ``(4) Failure to report.--
                    ``(A) Knowing failure.--A provider of electronic 
                communication services or remote computing services 
                described in paragraph (1) who knowingly fails to make 
                a report under that paragraph shall be fined--
                            ``(i) in the case of an initial failure to 
                        make a report, not more than $150,000; and
                            ``(ii) in the case of any second or 
                        subsequent failure to make a report, not more 
                        than $300,000.
                    ``(B) Negligent failure.--A provider of electronic 
                communication services or remote computing services 
                described in paragraph (1) who negligently fails to 
                make a report under that paragraph shall be subject to 
                a civil penalty of--
                            ``(i) in the case of an initial failure to 
                        make a report, not more than $50,000; and
                            ``(ii) in the case of any second or 
                        subsequent failure to make a report, not more 
                        than $100,000.
                    ``(C) Authority.--For the purposes of this 
                paragraph, the Federal Communications Commission--
                            ``(i) may levy civil penalties under 
                        subparagraph (B); and
                            ``(ii) shall promulgate regulations, in 
                        consultation with the Attorney General, to--
                                    ``(I) effectuate the purposes of 
                                subparagraph (B); and
                                    ``(II) provide for appropriate 
                                administrative review of any civil 
                                penalties levied under that 
                                subparagraph.''.

SEC. 5. MONEY LAUNDERING PREDICATE.

    Section 1956(c)(7)(D) of title 18, United States Code, is amended--
            (1) by inserting ``1466A (relating to obscene visual 
        representation of the abuse of children),'' before ``section 
        1708'';
            (2) ``1960A (relating to financial facilitation of access 
        to child pornography), 1960B (relating to Internet facilitation 
        of child pornography and exploitation of children),'' before 
        ``section 2113''; and
            (3) by inserting ``2252A (relating to child pornography), 
        2260A (relating to increased penalties for registered sex 
        offenders),'' before ``section 2280''.

SEC. 6. RECORD RETENTION REQUIREMENTS FOR INTERNET SERVICE PROVIDERS.

    (a) Regulations.--Not later than 90 days after the date of the 
enactment of this section, the Attorney General shall issue regulations 
governing the retention of records by Internet Service Providers. Such 
regulations shall, at a minimum, require retention of records, such as 
the name and address of the subscriber or registered user to whom an 
Internet Protocol address, user identification or telephone number was 
assigned, in order to permit compliance with court orders that may 
require production of such information.
    (b) Failure To Comply.--Whoever knowingly fails to retain any 
record required under this section shall be fined under title 18, 
United States Code, and imprisoned for not more than one year, or both.

SEC. 7. INCREASED PENALTIES FOR SEXUAL EXPLOITATION OF CHILDREN.

    Section 2251(e) of title 18, United States Code, is amended--
            (1) by striking ``15 years nor more than 30 years'' and 
        inserting ``20 years or for life''; and
            (2) by striking ``not less than 25 years nor more than 50 
        years,'' and all that follows through ``not less than 35 years 
        nor more than life.'' and inserting ``life.''.

SEC. 8. INCREASED PENALTIES FOR ACTIVITIES RELATING TO MATERIAL 
              INVOLVING THE SEXUAL EXPLOITATION OF CHILDREN.

    Section 2252(b) of title 18, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``5 years and not more than 20 
                years'' and inserting ``15 years or for life''; and
                    (B) by striking ``not less than 15 years nor more 
                than 40 years.'' and inserting ``life.''; and
            (2) in paragraph (2)--
                    (A) by striking ``or imprisoned not more than 10 
                years, or both'' and inserting ``and imprisoned for not 
                less than 3 years nor more than 20 years''; and
                    (B) by striking ``10 years nor more than 20 
                years.'' and inserting ``20 years or for life.''.

SEC. 9. INCREASED PENALTIES FOR ACTIVITIES RELATING TO MATERIAL 
              CONSTITUTING OR CONTAINING CHILD PORNOGRAPHY.

    Section 2252A(b) of title 18, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``5 years and not more than 20 
                years'' and inserting ``15 years or for life''; and
                    (B) by striking ``not less than 15 years nor more 
                than 40 years'' and inserting ``life''; and
            (2) in paragraph (2)--
                    (A) by striking ``or imprisoned not more than 10 
                years, or both'' and inserting ``and imprisoned for not 
                less than 3 years nor more than 20 years''; and
                    (B) by striking ``10 years nor more than 20 years'' 
                and inserting ``20 years or for life''.

SEC. 10. REQUIREMENT TO PLACE WARNING MARKS ON COMMERCIAL WEBSITES 
              CONTAINING SEXUALLY EXPLICIT MATERIAL.

    (a) Definitions.--In this section--
            (1) the term ``Commission'' means the Federal Trade 
        Commission;
            (2) the term ``website'' means any collection of material 
        placed in a computer server-based file archive so that it is 
        publicly accessible, over the Internet, using hypertext 
        transfer protocol or any successor protocol except that the 
        term does not include any collection of material where access 
        to sexually explicit material is restricted to a specific set 
        of individuals through the provision of a password or through 
        another access restriction mechanism;
            (3) the term ``sexually explicit material'' means any 
        material that depicts sexually explicit conduct (as that term 
        is defined in subsection (2)(A) of section 2256 of title 18, 
        United States Code), unless the depiction constitutes a small 
        and insignificant part of the whole, the remainder of which is 
        not primarily devoted to sexual matters;
            (4) the term ``Internet'' means the combination of computer 
        facilities and electromagnetic transmission media, and related 
        equipment and software, comprising the interconnected worldwide 
        network of computer networks that employ the Transmission 
        Control Protocol/Internet Protocol or any successor protocol to 
        transmit information; and
            (5) the term ``Internet access service''--
                    (A) means a service that enables users to access 
                content, information, electronic mail, or other 
                services offered over the Internet, and may also 
                include access to proprietary content, information, and 
                other services as part of a package of services offered 
                to consumers; and
                    (B) does not include telecommunications services.
    (b) Labeling Requirement.--Except as provided in subsection (d), no 
person who operates a website that is primarily operated for commercial 
purposes, in or affecting interstate or foreign commerce, may 
knowingly, and with knowledge of the character of the material, place 
on that website sexually explicit material, and fail--
            (1) to include on each page of the website that contains 
        sexually explicit material, the marks and notices prescribed by 
        the Commission under subsection (c); or
            (2) to ensure that the matter on the website that is 
        initially viewable, absent any further actions by the viewer, 
        does not include any sexually explicit material.
    (c) Prescription of Marks and Notices.--Not later than 90 days 
after the date of enactment of this Act, the Commission shall, in 
consultation with the Attorney General, establish by regulation clearly 
identifiable marks or notices to be included in the code, if 
technologically feasible, or if not feasible on the pages, of websites 
that contain sexually explicit material in order to inform the viewer 
of that fact and to facilitate the filtering of such pages.
    (d) Inapplicability to Carriers and Other Service Providers.--This 
section shall not apply to a person, to the extent that such person 
is--
            (1) a telecommunications carrier engaged in the provision 
        of a telecommunications service;
            (2) a person engaged in the business of providing an 
        Internet access service; or
            (3) similarly engaged in the transmission, storage, 
        retrieval, hosting, formatting, or translation (or any 
        combination thereof) of a communication made by another person, 
        without selection or alteration of the content of the 
        communication, and such person's deletion of a particular 
        communication or material made by another person in a manner 
        consistent with any applicable law or regulation shall not 
        constitute selection or alteration of the content of the 
        communication.
    (e) Penalties.--Whoever violates subsection (b)--
            (1) shall be fined under title 18, United States Code, 
        imprisoned not more than 5 years, or both; and
            (2) shall be fined under title 18, United States Code, and 
        imprisoned for not less than 5 years nor more than 15 years, if 
        such person has a prior conviction under--
                    (A) this section;
                    (B) section 1591 or chapter 71, chapter 109A, 
                chapter 110, or chapter 117 of title 18, United States 
                Code;
                    (C) section 920 of title 10, United States Code, 
                (article 120 of the Uniform Code of Military Justice); 
                or
                    (D) the laws of any State relating to--
                            (i) aggravated sexual abuse, sexual abuse, 
                        or abusive sexual contact involving a minor or 
                        ward;
                            (ii) the production, possession, receipt, 
                        mailing, sale, distribution, shipment, or 
                        transportation of child pornography; or
                            (iii) sex trafficking of children.

SEC. 11. ADDITIONAL RICO PREDICATES.

    Section 1961(1) of title 18, United States Code, is amended--
            (1) by inserting ``section 641 (relating to embezzlement or 
        theft of public money, property, or records,'' after ``473 
        (relating to counterfeiting),''; and
            (2) by inserting ``section 666 (relating to theft or 
        bribery concerning programs receiving Federal funds),'' after 
        ``section 664 (relating to embezzlement from pension and 
        welfare funds),''.

SEC. 12. ADDITIONAL RESOURCES FOR THE INNOCENT IMAGES NATIONAL 
              INITIATIVE.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Director of the Federal Bureau of Investigation to 
carry out the Innocent Images National Initiative, $30,000,000 for each 
of the fiscal years 2008 through 2012.
    (b) Availability.--Any amounts appropriated pursuant to subsection 
(a) shall remain available until expended.

Summary: Internet Stopping Adults Facilitating the Exploitation of Today's Youth Act (SAFETY) of 2007 - Amends the federal criminal code to prohibit: (1) financial transactions in interstate or foreign commerce that facilitate access to, or the possession of, child pornography; and (2) Internet content hosting providers or email service providers from facilitating access to, or the possession of, child pornography.

Amends the Victims of Child Abuse Act of 1990 to: (1) increase monetary penalties for willful failure of electronic communication service providers to report child pornography; and (2) impose new penalties for negligent failure to report.

Requires the Attorney General to issue regulations governing the retention of certain records by Internet Service Providers.

Increases criminal penalties for the sexual exploitation of children and for activities involving the sexual exploitation of children and child pornography.

Requires commercial website operators to place warning marks prescribed by the Federal Trade Commission on web pages that contain sexually explicit materials.

Authorizes appropriations for FY2008-FY2012 for the Innocent Images National Initiative.