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</p>
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<p> 102nd Congress
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2nd Session</p>
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<p> Amendment No.
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Offered by M.</p>
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<p>1. SEC. 1. FINDINGS AND PURPOSES
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2. (a) The Congress finds:
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3. (1) that telecommunications systems and networks are often
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4 used in the furtherance of criminal activities including
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5 organized crime, racketeering, extortion, kidnapping, espionage,
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6 terrorism, and trafficking in illegal drugs; and
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7 (2 ) that recent and continuing advances in
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8 telecommunications technology, and the introduction of new
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9 technologies and transmission modes by the telecommunications
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10 industry, have made it increasingly difficult for government
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11 agencies to implement lawful orders or authorizations to
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12 intercept communications and thus threaten the ability of such
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13 agencies effectively to enfore the laws and protect the national
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14 security; and
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15 (3) without the assistance and cooperation of providers of
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16 electronic communication services and private branch exchange
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17 operators, the introduction of new technologies and transmission
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18 modes into telecommunications systems witout consideration and
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19 accomodation of the need of government agencies lawfully to
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20 intercept communications, would impede the ability of such
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21 agencies effectively to carry out their responsibilities.
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22</p>
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<p>1 The purpose of this Act are:
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2 (1) to clarify the duty of providers of electronic
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3 communication services and private branch exchange operators to
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4 provide such assistance as necessary to ensure the ability of
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5 government agencies to implement lawful orders or authorizations
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6 to intercept communications; and
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7 (2) to ensure that the Federal Communications Commission,
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8 in the setting of standards affecting providers of electronic
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9 communication services or private branch exchange operators, will
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10 accomodate the need of government agencies lawfully to intercept
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11 communications.</p>
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<p>12 SEC. 2. Title II of the Communictions Act of 1934 is amended
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13 by adding at the end thereof the following new sections:
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14 "Sec__. GOVERNMENT REQUIREMENTS
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15 "(a) The Federal Communications Commission shall,
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16 within 120 days after enactment of this Act, issue such
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17 regulations as are necessary to ensure that the government
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18 can intercept communications when such interception is
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19 otherwise lawfully authorized
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20 "(b) The regulations issued by the commission shall:
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21 "(1) establish standards and specifications for
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22 telecommunications equipment and technology employed by
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23 providers of electronic communication services or
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24 private branch exchange operators as may be necessary
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25 to maintain the ability of the government to lawfully
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26 intercept communication</p>
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<p>1 "(2) require that any telecommunications
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2 equipment or technology which impedes the ability of
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3 the government to lawfully intercept communications and
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4 and which has been introduced into a telecommunications
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5 system by providers of electronic communication
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6 services or private branch exchange operators shall not
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7 expanded so as to further impede such utility until
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8 that telecommunications equpment or technology is
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9 brought into compliance with the requirements set forth
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10 in regulations issued by the Commission;
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11 "(3) require that modifications which are
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12 necessary to be made to existing telecommunications
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13 equipment or technology to eliminate impediments to the
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14 ability of the government to lawfully intercept
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15 communications shall be implemented by such providers
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16 of electronic communication services and private branch
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17 exchange operators within 180 days of issuance of such
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18 regulations; and
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19 "(4) prohibit the use by electronic communication
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20 service providers and private branch exchange operators
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21 of any telecommunications equipment or technoloqy which
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22 does not comply with the regulations issued under this
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23 section after the 180th day following the issuance of
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24 such regulations.
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25 "(c) For the purposes of administering and enforcing
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26 the provisions of this section and the regulations</p>
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<p>1 prescribed hereunder, the Commission shall have the same
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2 authority, power, and functions with respect to providers of
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3 electronic communication services or private branch exchange
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4 operators as the Commission has in administering and
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5 enforcing the provisions of this title with respect to any
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6 common carrier otherwise subject to Commission jurisdiction.
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7 Any violation of this section by any provider of electronic
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8 communication service or any private branch exchange
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9 operator shall be subject to the same remedies, penalties,
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10 and procedures as are applicable to a violation of this
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11 chapter by a common carrier otherwise subject to Commission
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12 jurisdiction, except as otherwise specified in subsection
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13 (d).
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14 "(d) In addition to any enforcement authorities vested
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15 in the Commission under this title, the Attorney General may
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16 apply to the appropriate United States District Court for a
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17 restraining order or injunction against any provider of
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18 electronic communication service or private branch exchange
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19 operator based upon a failure to comply with the provisions
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20 of this section or regulations prescribed hereunder.
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21 "(e) Any person who willfully violates any provision
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22 of the regulations issued by the Commission pursuant to
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23 subjection (a) of this section shall be subject to a civil
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24 penalty of $10,000 per day for each day in violation.
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25 "(f) To the extent consistent with the setting or
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26 implementation of just and reasonable rates, charges and
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</p>
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<p>1 classifications, the Commission shall authorize the
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2 compensation of any electronic communication service
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3 providers or other entities whose rates or charges are
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4 subject to its jurisdiction for the reasonable costs
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5 associated with such modifications of existing
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6 telecommunications equipment or technology, or with the
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7 development or procurement, and the installation of such
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8 telecommunications equipment or technology as is necessary
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9 to carry out the purposes of this Act, through appropriate
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10 adjustments to such rates and charges.
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11 "(g) The Attorney General shall advise the Commission
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12 within 30 days after the date of enactment of this Act, and
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13 periodically thereafter, as necessary, of the specific needs
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14 and performance requirements to ensure the continued ability
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15 of the government to lawfully intercept communications
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16 transmitted by or through the electronic communication
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17 services and private branch exchanges introduced, operated,
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18 sold or leased in the United States.
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l9 "(h) Notwithstanding section 552b of Title 5, United
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20 States Code or any other provision of law, the Attorney
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21 General or his designee may direct that any Commission
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22 proceeding concerning regulations, standards or
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23 registrations issued or to be issued under the authority of
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24 this section shall be closed to the public.
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25 "(i) Definitions -- As used in this section --</p>
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<p>1 "(l) 'provider of electronic communication
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2 service' or 'private branch exchange operator' means
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3 any service which profices to users thereof the ability
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4 to send or receive wire, oral or electronic
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5 communications, as those terms are defined in
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6 subsections 2510(1) and 2510(12) of Title 18, United
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7 States Code;
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8 "(2) 'communication' means any wire or electronic
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9 communication, as defined in subsection 2510(1) and
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10 2510 (12), of Title 18, United States Code;
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11 "(3) 'impede' means to prevent, hinder or impair
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12 the government's ability to intercept a communication
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13 in the same form as transmitted;
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14 "(4) 'intercept' shall have the same meaning
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l5 set forth in section 2510 (4) of Title 18, United States
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16 Code;
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17 "(5) 'government' means the Government of the
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18 United States and any agency or instrumentality
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19 thereof, any state or political subdivision thereof,
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20 and the District of Columbia, and Commonwealth of Puerto
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21 Rico; and
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22 "(6) 'telecommunications equipment or technology'
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23 means any equipment or technology, used or to be used
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24 by any providers of electronic communication services
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25 or private branch exchange operators, which is for the</p>
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<p>1 transmission or recept of wire, oral or electronic
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2 communications."</p>
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<p>3 SEC 3. Section 510, Title V, P.L. 97-259 is amended deleting the
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4 phrase "section 301 or 302a" and substituting the phrase "section
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5 301, 302a, or ____.</p>
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<p> DIGITAL TELEPHONY AMENDMENT
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(report language)</p>
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<p>Significant changes are being made in the systems by which
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communications services are provided. Digital technologies,
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fiber optics, and other telecommunications transmission
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technologies are coming into widespread use. These changes
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in communications systems and technologies make it increasingly
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difficult for government agencies to implement lawful orders or
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authorizations to intercept communications in order to enfore
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the laws and protect the national security.</p>
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<p>With the assistance of providers of electronic communication
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services, these technological advances need not impede
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the ability of government agencies to carry out their
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responsibilities. This bill would direct the Federal
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Communications Commission (FCC) to issue standards ensuring
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that communications systems and service providers continue
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to accomodate lawful government communications intercepts.
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The regulations are not intended to cover federal government
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communications systems. Procedure already exist by which
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the Federal Bureau of Investigation amy obtain federal agency
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cooperation in implementing lawful orders or authorizations
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applicable to such systems. Further, there would be no
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obligation on the part of the service providers or any other party
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to ensure access to the plain text of encrypted or other encoded
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material, but rather only to the communication in whatever form
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it is transmitted. It is thus the intent and purpose of the
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bill only to maintain the government's current communications
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interception capability where properly ordered or authorized.
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No expansion of that authority is sought.</p>
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<p> ANALYSIS</p>
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<p>
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Subsection 2(a) and (b) would require the Federal Communications
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Commission (FCC) to issue any regulations deemed necessary to
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ensure that telecommunications equipment and technology used
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by providers of electronic communications services or private branch
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exchange operators will permit the government to intercept
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communications when such interception is lawfully authorized.
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The regulations would also require that equipment or technologies
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currently used by such providers or operators that impede this
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ability until brought into compliance with the regulations.
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Compliance with FCC regulations issued under this section would
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be required within 180 days of their issuance.</p>
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<p>Subsection 2(c) provides that the Commission's authority to
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implement and enforce the provisions of this section are the same
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as those it has with respect to common carriers subject to its
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jurisdiction.</p>
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<p>Subsection 2(d) would give the Attorney General the authority to
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request injunctive relief against non-complying service providers
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or private branch exchange operators.</p>
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<p>Subsection 2(e) provides civil penalty authority for willful
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violations of the regulations of up to $10,000 per day for each
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violation.</p>
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<p>Subsection 2(f) would permit the FCC to provide rate relief to
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service providers subject to its rate-setting jurisdiciton for
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the costs associated with modifying equipment or technologies to
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carry out the purposes of the bill.</p>
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<p>Subsections 2(g), (h), and (i) require the Attorney General
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to advise the Commission regarding the specific needs and
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performance criteria required to maintain government intercept
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capabilities, require the FCC to ensure that the standards and
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specifications it promulgates may be implemented on a royalty-
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free basis, and authorize the Attorney General to require that
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particular Commission rulemaking proceedings to implement the Act
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be closed to the public.</p>
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<p>Subsection 2(j) provides definitions for key terms used in this
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section.
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