Wireless Telephone Protection Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wireless Telephone Protection Act''.

SEC. 2. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH COUNTERFEIT 
              ACCESS DEVICES.

    (a) Unlawful Acts.--Section 1029(a) of title 18, United States 
Code, is amended--
            (1) by redesignating paragraph (9) as paragraph (10); and
            (2) by striking paragraph (8) and inserting the following:
            ``(8) knowingly and with intent to defraud uses, produces, 
        traffics in, has control or custody of, or possesses a scanning 
        receiver;
            ``(9) knowingly uses, produces, traffics in, has control or 
        custody of, or possesses hardware or software, knowing it has 
        been configured for altering or modifying a telecommunications 
        instrument so that such instrument may be used to obtain 
        unauthorized access to telecommunications services; or''.
    (b) Penalties.--
            (1) Generally.--Section 1029(c) of title 18, United States 
        Code, is amended to read as follows:
    ``(c) Penalties.--The punishment for an offense under subsection 
(a) of this section is--
            ``(1) in the case of an offense that does not occur after a 
        conviction for another offense under this section--
                    ``(A) if the offense is under paragraph (1), (2), 
                (3), (6), (7), or (10) of subsection (a), a fine under 
                this title or imprisonment for not more than 10 years, 
                or both; and
                    ``(B) if the offense is under paragraph (4), (5), 
                (8), or (9), of subsection (a), a fine under this title 
                or imprisonment for not more than 15 years, or both; 
                and
            ``(2) in the case of an offense that occurs after a 
        conviction for another offense under this section, a fine under 
        this title or imprisonment for not more than 20 years, or 
        both.''.
            (2) Attempts.--Section 1029(b)(1) of title 18, United 
        States Code, is amended by striking ``punished as provided in 
        subsection (c) of this section'' and inserting ``subject to the 
        same penalties as those prescribed for the offense attempted''.
    (c) Definitions.--Section 1029(e)(8) of title 18, United States 
Code, is amended by inserting before the period ``or to intercept an 
electronic serial number, mobile identification number, or other 
identifier of any telecommunications service, equipment, or 
instrument''.
    (d) Applicability of New Section 1029(a)(9).--
            (1) In general.--Section 1029 of title 18, United States 
        Code, is amended by adding at the end the following:
    ``(g) It is not a violation of subsection (a)(9) for an officer, 
employee, or agent of, or a person under contract with, a facilities-
based carrier, for the purpose of protecting the property or legal 
rights of that carrier, to use, produce, have custody or control of, or 
possess hardware or software configured as described in that subsection 
(a)(9).''.
            (2) Definition.--Section 1029(e) of title 18, United States 
        Code is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (6);
                    (B) by striking the period at the end of paragraph 
                (7) and inserting a semicolon;
                    (C) by striking the period at the end of paragraph 
                (8) and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(9) the term `facilities-based carrier' means an entity 
        that owns communications transmission facilities, is 
        responsible for the operation and maintenance of those 
        facilities, and holds an operating license issued by the 
        Federal Communications Commission under the authority of title 
        III of the Communications Act of 1934.''.
    (e) Amendment of Federal Sentencing Guidelines for Wireless 
Telephone Cloning.--
            (1) In general.--Pursuant to its authority under section 
        994 of title 28, United States Code, the United States 
        Sentencing Commission shall review and amend the Federal 
        sentencing guidelines and the policy statements of the 
        Commission, if appropriate, to provide an appropriate penalty 
        for offenses involving the cloning of wireless telephones 
        (including offenses involving an attempt or conspiracy to clone 
        a wireless telephone).
            (2) Factors for consideration.--In carrying out this 
        subsection, the Commission shall consider, with respect to the 
        offenses described in paragraph (1)--
                    (A) the range of conduct covered by the offenses;
                    (B) the existing sentences for the offenses;
                    (C) the extent to which the value of the loss 
                caused by the offenses (as defined in the Federal 
                sentencing guidelines) is an adequate measure for 
                establishing penalties under the Federal sentencing 
                guidelines;
                    (D) the extent to which sentencing enhancements 
                within the Federal sentencing guidelines and the 
                court's authority to sentence above the applicable 
                guideline range are adequate to ensure punishment at or 
                near the maximum penalty for the most egregious conduct 
                covered by the offenses;
                    (E) the extent to which the Federal sentencing 
                guideline sentences for the offenses have been 
                constrained by statutory maximum penalties;
                    (F) the extent to which Federal sentencing 
                guidelines for the offenses adequately achieve the 
                purposes of sentencing set forth in section 3553(a)(2) 
                of title 18, United States Code;
                    (G) the relationship of Federal sentencing 
                guidelines for the offenses to the Federal sentencing 
                guidelines for other offenses of comparable 
                seriousness; and
                    (H) any other factor that the Commission considers 
                to be appropriate.

Summary: Wireless Telephone Protection Act - Amends the Federal criminal code to prohibit knowingly using, producing, trafficking in, having control or custody of, or possessing hardware or software knowing that it has been configured to insert or modify telecommunication identifying information associated with or contained in a telecommunications instrument so that such instrument may be used to obtain telecommunications service without authorization.  Revises penalties to:  (1) impose a fine and a 15-year term of imprisonment for such a violation as a first offense; and (2) require forfeiture to the United States of any personal property used or intended to be used to commit fraud in connection with an access device.  Revises the definition of a "scanning receiver" for purposes of such provisions to include a device or apparatus that can be used to intercept an electronic serial number, mobile identification number, or other identifier of any telecommunications service, equipment, or instrument. Permits an officer, employee, or agent of, or a person engaged in business with, a facilities-based carrier to engage in conduct (other than trafficking) otherwise prohibited for the purpose of protecting that carrier's property or legal rights, unless such conduct is for the purpose of obtaining telecommunications service provided by another facilities-based carrier without such carrier's authorization.    Makes it an affirmative defense that the conduct charged (other than a violation consisting of producing or trafficking) was engaged in for research or development in connection with a lawful purpose. Directs the United States Sentencing Commission to review and amend the Federal sentencing guidelines and the policy statements of the Commission, if appropriate, to provide an appropriate penalty for offenses involving the cloning of wireless telephones, including offenses involving an attempt or conspiracy to do so.