

   102nd Congress
   2nd Session


                      Amendment  No.
                      Offered by M.


1.   SEC. 1. FINDINGS AND PURPOSES
2.   (a)    The Congress finds:
3.      (1) that telecommunications systems and networks are often
4     used in the furtherance of criminal activities including
5     organized crime, racketeering, extortion, kidnapping, espionage,
6     terrorism, and trafficking in illegal drugs; and
7       (2 ) that recent and continuing advances in
8     telecommunications technology, and the introduction of new
9     technologies and transmission modes by the telecommunications
10    industry, have made it increasingly difficult for government
11    agencies to implement lawful orders or authorizations to
12    intercept communications and thus threaten the ability of such
13    agencies effectively to enfore the laws and protect the national
14    security; and
15      (3) without the assistance and cooperation of providers of
16    electronic communication services and private branch exchange
17    operators, the introduction of new technologies and transmission
18    modes into telecommunications systems witout consideration and
19    accomodation of the need of government agencies lawfully to
20    intercept communications, would impede the ability of such
21    agencies effectively to carry out their responsibilities.
22




1   The purpose of this Act are:
2      (1) to clarify the duty of providers of electronic
3   communication services and private branch exchange operators to
4   provide such assistance as necessary to ensure the ability of
5   government agencies to implement lawful orders or authorizations
6   to intercept communications; and
7      (2) to ensure that the Federal Communications Commission,
8   in the setting of standards affecting providers of electronic 
9   communication services or private branch exchange operators, will
10  accomodate the need of government agencies lawfully to intercept
11  communications.

12    SEC. 2.    Title II of the Communictions Act of 1934 is amended
13   by adding at the end thereof the following new sections:
14       "Sec__.  GOVERNMENT REQUIREMENTS
15       "(a) The Federal Communications Commission shall,
16    within 120 days after enactment of this Act, issue such
17    regulations as are necessary to ensure that the government
18    can intercept communications when such interception is
19    otherwise lawfully authorized
20      "(b) The regulations issued by the commission shall:
21        "(1) establish standards and specifications for
22         telecommunications equipment and technology employed by
23         providers of electronic communication services or
24         private branch exchange operators as may be necessary
25         to maintain the ability of the government to lawfully
26         intercept communication






1          "(2) require that any telecommunications
2         equipment or technology which impedes the ability of
3         the government to lawfully intercept communications and
4         and which has been introduced into a telecommunications
5         system by providers of electronic communication
6         services or private branch exchange operators shall not
7         expanded so as to further impede such utility until
8         that telecommunications equpment or technology is
9         brought into compliance with the requirements set forth
10        in regulations issued by the Commission;
11         "(3) require that modifications which are
12        necessary to be made to existing telecommunications
13        equipment or technology to eliminate impediments to the
14        ability of the government to lawfully intercept
15        communications shall be implemented by such providers
16        of electronic communication services and private branch
17        exchange operators within 180 days of issuance of such 
18        regulations; and
19         "(4) prohibit the use by electronic communication
20        service providers and private branch exchange operators
21        of any telecommunications equipment or technoloqy which
22        does not comply with the regulations issued under this 
23        section after the 180th day following the issuance of
24        such regulations.
25    "(c) For the purposes of administering and enforcing
26     the provisions of this section and the regulations






1      prescribed hereunder, the Commission shall have the same
2      authority, power, and functions with respect to providers of
3      electronic communication services or private branch exchange
4      operators as the Commission has in administering and
5      enforcing the provisions of this title with respect to any
6      common carrier otherwise subject to Commission jurisdiction.
7      Any violation of this section by any provider of electronic
8      communication service or any private branch exchange
9      operator shall be subject to the same remedies, penalties,
10     and procedures as are applicable to a violation of this
11     chapter by a common carrier otherwise subject to Commission
12     jurisdiction, except as otherwise specified in subsection
13     (d).
14     "(d) In addition to any enforcement authorities vested
15     in the Commission under this title, the Attorney General may
16     apply to the appropriate United States District Court for a
17     restraining order or injunction against any provider of
18     electronic communication service or private branch exchange
19     operator based upon a failure to comply with the provisions 
20     of this section or regulations prescribed hereunder.
21     "(e) Any person who willfully violates any provision
22     of the regulations issued by the Commission pursuant to
23     subjection (a) of this section shall be subject to a civil
24     penalty of $10,000 per day for each day in violation.
25     "(f) To the extent consistent with the setting or
26     implementation of just and reasonable rates, charges and
 


1      classifications, the Commission shall authorize the
2      compensation of any electronic communication service
3      providers or other entities whose rates or charges are
4      subject to its jurisdiction for the reasonable costs
5      associated with such modifications of existing
6      telecommunications equipment or technology, or with the
7      development or procurement, and the installation of such
8      telecommunications equipment or technology as is necessary
9      to carry out the purposes of this Act, through appropriate
10     adjustments to such rates and charges.
11     "(g) The Attorney General shall advise the Commission
12     within 30 days after the date of enactment of this Act, and
13     periodically thereafter, as necessary, of the specific needs
14     and performance requirements to ensure the continued ability
15     of the government to lawfully intercept communications
16     transmitted by or through the electronic communication
17     services and private branch exchanges introduced, operated,
18     sold or leased in the United States.
l9     "(h) Notwithstanding section 552b of Title 5, United
20     States Code or any other provision of law, the Attorney
21     General or his designee may direct that any Commission
22     proceeding concerning regulations, standards or
23     registrations issued or to be issued under the authority of
24     this section shall be closed to the public.
25     "(i) Definitions -- As used in this section --




1        "(l) 'provider of electronic communication
2     service' or 'private branch exchange operator' means
3     any service which profices to users thereof the ability
4     to send or receive wire, oral or electronic
5     communications, as those terms are defined in
6     subsections 2510(1) and 2510(12) of Title 18, United
7     States Code;
8        "(2) 'communication' means any wire or electronic
9     communication, as defined in subsection 2510(1) and
10    2510 (12), of Title 18, United States Code;
11     "(3) 'impede' means to prevent, hinder or impair
12    the government's ability to intercept a communication
13    in the same form as transmitted;
14    "(4) 'intercept' shall have the same meaning
l5    set forth in section 2510 (4) of Title 18, United States
16    Code;
17     "(5) 'government' means the Government of the
18    United States and any agency or instrumentality
19    thereof, any state or political subdivision thereof,
20    and the District of Columbia, and Commonwealth of Puerto
21    Rico; and
22     "(6) 'telecommunications equipment or technology'
23    means any equipment or technology, used or to be used
24    by any providers of electronic communication services
25    or private branch exchange operators, which is for the




1     transmission or recept of wire, oral or electronic
2     communications."

3   SEC 3. Section 510, Title V, P.L. 97-259 is amended deleting the
4   phrase "section 301 or 302a" and substituting the phrase "section
5   301, 302a, or ____.






   DIGITAL TELEPHONY AMENDMENT
   (report language)


Significant changes are being made in the systems by which
communications services are provided.  Digital technologies,
fiber optics, and other telecommunications transmission
technologies are coming into widespread use.  These changes
in communications systems and technologies make it increasingly
difficult for government agencies to implement lawful orders or
authorizations to intercept communications in order to enfore
the laws and protect the national security.


With the assistance of providers of electronic communication
services, these technological advances need not impede
the ability of government agencies to carry out their
responsibilities.  This bill would direct the Federal
Communications Commission (FCC) to issue standards ensuring
that communications systems and service providers continue
to accomodate lawful government communications intercepts.
The regulations are not intended to cover federal government
communications systems.  Procedure already exist by which
the Federal Bureau of Investigation amy obtain federal agency
cooperation in implementing lawful orders or authorizations
applicable to such systems.  Further, there would be no
obligation on the part of the service providers or any other party
to ensure access to the plain text of encrypted or other encoded
material, but rather only to the communication in whatever form
it is transmitted.  It is thus the intent and purpose of the
bill only to maintain the government's current communications
interception capability where properly ordered or authorized.
No expansion of that authority is sought.




   ANALYSIS


   
Subsection 2(a) and (b) would require the Federal Communications
Commission (FCC) to issue any regulations deemed necessary to
ensure that telecommunications equipment and technology used
by providers of electronic communications services or private branch
exchange operators will permit the government to intercept
communications when such interception is lawfully authorized.
The regulations would also require that equipment or technologies
currently used by such providers or operators that impede this
ability until brought into compliance with the regulations.
Compliance with FCC regulations issued under this section would
be required within 180 days of their issuance.

Subsection 2(c) provides that the Commission's authority to
implement and enforce the provisions of this section are the same
as those it has with respect to common carriers subject to its
jurisdiction.

Subsection 2(d) would give the Attorney General the authority to
request injunctive relief against non-complying service providers
or private branch exchange operators.

Subsection 2(e) provides civil penalty authority for willful
violations of the regulations of up to $10,000 per day for each
violation.

Subsection 2(f) would permit the FCC to provide rate relief to
service providers subject to its rate-setting jurisdiciton for
the costs associated with modifying equipment or technologies to
carry out the purposes of the bill.

Subsections 2(g), (h), and (i) require the Attorney General
to advise the Commission regarding the specific needs and
performance criteria required to maintain government intercept
capabilities, require the FCC to ensure that the standards and
specifications it promulgates may be implemented on a royalty-
free basis, and authorize the Attorney General to require that 
particular Commission rulemaking proceedings to implement the Act
be closed to the public.

Subsection 2(j) provides definitions for key terms used in this
section.




















