 102nd Congress
 2nd Session
                    Amendment  No.
                    Offered by M.
   SEC. 1. FINDINGS AND PURPOSES
   (a)    The Congress finds:
      (1) that telecommunications systems and networks are often
    used in the furtherance of criminal activities including
    organized crime, racketeering, extortion, kidnapping, espionage,
    terrorism, and trafficking in illegal drugs; and
      (2 ) that recent and continuing advances in
    telecommunications technology, and the introduction of new
    technologies and transmission modes by the telecommunications
    industry, have made it increasingly difficult for government
    agencies to implement lawful orders or authorizations to
    intercept communications and thus threaten the ability of such
    agencies effectively to enfore the laws and protect the national
    security; and
      (3) without the assistance and cooperation of providers of
    electronic communication services and private branch exchange
    operators, the introduction of new technologies and transmission
    modes into telecommunications systems witout consideration and
    accomodation of the need of government agencies lawfully to
    intercept communications, would impede the ability of such
    agencies effectively to carry out their responsibilities.

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

    SEC. 2.    Title II of the Communictions Act of 1934 is amended
   by adding at the end thereof the following new sections:
       "Sec__.  GOVERNMENT REQUIREMENTS
       "(a) The Federal Communications Commission shall,
    within 120 days after enactment of this Act, issue such
    regulations as are necessary to ensure that the government
    can intercept communications when such interception is
    otherwise lawfully authorized
      "(b) The regulations issued by the commission shall:
        "(1) establish standards and specifications for
         telecommunications equipment and technology employed by
         providers of electronic communication services or
         private branch exchange operators as may be necessary
         to maintain the ability of the government to lawfully
         intercept communication
         "(2) require that any telecommunications
        equipment or technology which impedes the ability of
        the government to lawfully intercept communications and
        and which has been introduced into a telecommunications
        system by providers of electronic communication
        services or private branch exchange operators shall not
        expanded so as to further impede such utility until
        that telecommunications equpment or technology is
        brought into compliance with the requirements set forth
        in regulations issued by the Commission;
         "(3) require that modifications which are
        necessary to be made to existing telecommunications
        equipment or technology to eliminate impediments to the
        ability of the government to lawfully intercept
        communications shall be implemented by such providers
        of electronic communication services and private branch
        exchange operators within 180 days of issuance of such 
        regulations; and
         "(4) prohibit the use by electronic communication
        service providers and private branch exchange operators
        of any telecommunications equipment or technoloqy which
        does not comply with the regulations issued under this 
        section after the 180th day following the issuance of
        such regulations.
    "(c) For the purposes of administering and enforcing
     the provisions of this section and the regulations
     prescribed hereunder, the Commission shall have the same
     authority, power, and functions with respect to providers of
     electronic communication services or private branch exchange
     operators as the Commission has in administering and
     enforcing the provisions of this title with respect to any
     common carrier otherwise subject to Commission jurisdiction.
     Any violation of this section by any provider of electronic
     communication service or any private branch exchange
     operator shall be subject to the same remedies, penalties,
     and procedures as are applicable to a violation of this
     chapter by a common carrier otherwise subject to Commission
     jurisdiction, except as otherwise specified in subsection
     (d).
     "(d) In addition to any enforcement authorities vested
     in the Commission under this title, the Attorney General may
     apply to the appropriate United States District Court for a
     restraining order or injunction against any provider of
     electronic communication service or private branch exchange
     operator based upon a failure to comply with the provisions 
     of this section or regulations prescribed hereunder.
     "(e) Any person who willfully violates any provision
     of the regulations issued by the Commission pursuant to
     subjection (a) of this section shall be subject to a civil
     penalty of $10,000 per day for each day in violation.
     "(f) To the extent consistent with the setting or
     implementation of just and reasonable rates, charges and
     classifications, the Commission shall authorize the
     compensation of any electronic communication service
     providers or other entities whose rates or charges are
     subject to its jurisdiction for the reasonable costs
     associated with such modifications of existing
     telecommunications equipment or technology, or with the
     development or procurement, and the installation of such
     telecommunications equipment or technology as is necessary
     to carry out the purposes of this Act, through appropriate
     adjustments to such rates and charges.
     "(g) The Attorney General shall advise the Commission
     within 30 days after the date of enactment of this Act, and
     periodically thereafter, as necessary, of the specific needs
     and performance requirements to ensure the continued ability
     of the government to lawfully intercept communications
     transmitted by or through the electronic communication
     services and private branch exchanges introduced, operated,
     sold or leased in the United States.
     "(h) Notwithstanding section 552b of Title 5, United
     States Code or any other provision of law, the Attorney
     General or his designee may direct that any Commission
     proceeding concerning regulations, standards or
     registrations issued or to be issued under the authority of
     this section shall be closed to the public.
     "(i) Definitions -- As used in this section --
       "(l) 'provider of electronic communication
    service' or 'private branch exchange operator' means
    any service which profices to users thereof the ability
    to send or receive wire, oral or electronic
    communications, as those terms are defined in
    subsections 2510(1) and 2510(12) of Title 18, United
    States Code;
       "(2) 'communication' means any wire or electronic
    communication, as defined in subsection 2510(1) and
    2510 (12), of Title 18, United States Code;
     "(3) 'impede' means to prevent, hinder or impair
    the government's ability to intercept a communication
    in the same form as transmitted;
    "(4) 'intercept' shall have the same meaning
    set forth in section 2510 (4) of Title 18, United States
    Code;
     "(5) 'government' means the Government of the
    United States and any agency or instrumentality
    thereof, any state or political subdivision thereof,
    and the District of Columbia, and Commonwealth of Puerto
    Rico; and
     "(6) 'telecommunications equipment or technology'
    means any equipment or technology, used or to be used
    by any providers of electronic communication services
    or private branch exchange operators, which is for the
    transmission or recept of wire, oral or electronic
    communications."

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

