Cryptography's Role In Securing The Information Society

                Appendix N   Continued

[N.1.4 commences p. 540.]
__________________________________________________________________



         N.1.4 Communications Assistance for 
             Law Enforcement Act of 1995 


Title I--Interception of Digital and Other Communications


Sec. 101. Short title.

     This title may be cited as the "Communications Assistance
for Law Enforcement Act".


Sec. 102. Definitions.

For purposes of this title--

     (1) The terms defined in section 2510 of title 18, United
States Code, have, respectively, the meanings stated in that
section.

     (2) The term "call-identifying information" means dialing or
signaling information that identifies the origin, direction,
destination, or termination of each communication generated or
received by a subscriber by means of any equipment, facility, or
service of a telecommunications carrier. [541]

     (3) The term "Commission" means the Federal Communications
Commission.

     (4) The term "electronic messaging services" means
software-based serv ices that enable the sharing of data, images,
sound, writing, or other information among computing devices
controlled by the senders or recipients of the messages.

     (5) The term "government" means the government of the United
States and any agency or instrumentality thereof, the District of
Columbia, any commonwealth, territory, or possession of the United
States, and any State or political subdivision thereof authorized
by law to conduct electronic surveillance.

     (6) The term "information services"--

(A) means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or
making available information via telecommunications; and

(B) includes--

(i) a service that permits a customer to retrieve stored
information from, or file information for storage in, information
storage facilities;

(ii) electronic publishing; and (iii) electronic messaging
services; but

(C) does not include any capability for a telecommunications
carrier's internal management, control, or operation of its
telecommunications network.

     (7) The term "telecommunications support services" means a
product, software, or service used by a telecommunications carrier
for the internal signaling or switching functions of its
telecommunications network.

     (8) The term "telecommunications carrier"--

(A) means a person or entity engaged in the transmission or
switching of wire or electronic communications as a common carrier
for hire; and

(B) includes--

(i) a person or entity engaged in providing commercial mobile
service (as defined in section 332(d) of the Communications Act of
1934 (47 U.S.C. 332(d))); or 

(ii) a person or entity engaged in providing wire or electronic
communication switching or transmission service to the extent that
the Commission finds that such service is a replacement for a
substantial portion of the local telephone exchange service and
that it is in the public interest to deem such a person or entity
to be a telecommunications carrier for purposes of this title; but

(C) does not include--

(i) persons or entities insofar as they are engaged in providing
information services; and

(ii) any class or category of telecommunications carriers that the
Commission exempts by rule after consultation with the Attorney
General. [542]


Sec. 103. Assistance capability requirements.

     (a) Capability Requirements.--Except as provided in
subsections (b), (c), and (d) of this section and sections 108(a)
and 109(b) and (d), a telecommunications carrier shall ensure that
its equipment, facilities, or services that provide a customer or
subscriber with the ability to originate, terminate, or direct
communications are capable of--

(1) expeditiously isolating and enabling the government, pursuant
to a court order or other lawful authorization, to intercept, to
the exclusion of any other communications, all wire and electronic
communications carried by the carrier within a service area to or
from equipment, facilities, or services of a subscriber of such
carrier concurrently with their transmission to or from the
subscriber's equipment, facility, or service, or at such later
time as may be acceptable to the government;

(2) expeditiously isolating and enabling the government, pursuant
to a court order or other lawful authorization, to access
call-identifying information that is reasonably available to the
carrier--

(A) before, during, or immediately after the transmission of a
wire or electronic communication (or at such later time as may be
acceptable to the government); and

(B) in a manner that allows it to be associated with the
communication to which it pertains, except that, with regard to
information acquired solely pursuant to the authority for pen
registers and trap and trace devices (as defined in section 3127
of title 18, United States Code), such call-identifying
information shall not include any information that may disclose
the physical location of the subscriber (except to the extent that
the location may be determined from the telephone number);

(3) delivering intercepted communications and call-identifying
information to the government, pursuant to a court order or other
lawful authorization, in a format such that they may be
transmitted by means of equipment, facilities, or services
procured by the government to a location other than the premises
of the carrier; and

(4) facilitating authorized communications interceptions and
access to call-identifying information unobtrusively and with a
minimum of interference with any subscriber's telecommunications
service and in a manner that protects--

(A) the privacy and security of communications and
call-identifying information not authorized to be intercepted; and

(B) information regarding the government's interception of
communications and access to call-identifying information.

     (b) Limitations.--

(1) Design of features and systems configurations.--This title
does not authorize any law enforcement agency or officer--

(A) to require any specific design of equipment, facilities,
services, features, or system configurations to be adopted by any
provider of a wire or electronic communication service, any
manufacturer of telecommunications equipment, or any provider of
telecommunications support services; or [543]

(B) to prohibit the adoption of any equipment, facility, service,
or feature by any provider of a wire or electronic communication
service, any manufacturer of telecommunications equipment, or any
provider of telecommunications support services.

(2) Information services; private networks and interconnection
services and facilities.--The requirements of subsection (a) do
not apply to--

(A) information services; or

(B) equipment, facilities, or services that support the transport
or switching of communications for private networks or for the
sole purpose of interconnecting telecommunications carriers.

(3) Encryption.--A telecommunications carrier shall not be
responsible for decrypting, or ensuring the government's ability
to decrypt, any communication encrypted by a subscriber or
customer, unless the encryption was provided by the carrier and
the carrier possesses the information necessary to decrypt the
communication.

     (c) Emergency or Exigent Circumstances.--In emergency or
exigent circumstances (including those described in sections 2518
(7) or (11)(b) and 3125 of title 18, United States Code, and
section 1805(e) of title 50 of such Code), a carrier at its
discretion may comply with subsection (a)(3) by allowing
monitoring at its premises if that is the only means of
accomplishing the interception or access.

     (d) Mobile Service Assistance Requirements.--A
telecommunications carrier that is a provider of commercial mobile
service (as defined in section 332(d) of the Communications Act of
1934) offering a feature or service that allows subscribers to
redirect, hand off, or assign their wire or electronic
communications to another service area or another service provider
or to utilize facilities in another service area or of another
service provider shall ensure that, when the carrier that had been
providing assistance for the interception of wire or electronic
communications or access to call-identifying information pursuant
to a court order or lawful authorization no longer has access to
the content of such communications or call-identifying information
within the service area in which interception has been occurring
as a result of the subscriber's use of such a feature or service,
information is made available to the government (before, during,
or immediately after the transfer of such communications)
identifying the provider of wire or electronic communication
service that has acquired access to the communications.


Sec. 104. Notices of capacity requirements.

     (a) Notices of Maximum and Actual Capacity Requirements.--

(1) In general.--Not later than 1 year after the date of enactment
of this title, after consulting with State and local law
enforcement agencies, telecommunications carriers, providers of
telecommunications support services, and manufacturers of
telecommunications equipment, and after notice and comment, the
Attorney General shall publish in the Federal Register and provide
to appropriate telecommunications industry associations and
standard-setting organizations  [544]

(A) notice of the actual number of communication interceptions,
pen registers, and trap and trace devices, representing a portion
of the maximum capacity set forth under subparagraph (B), that the
Attorney General estimates that government agencies authorized to
conduct electronic surveillance may conduct and use simultaneously
by the date that is 4 years after the date of enactment of this
title; and

(B) notice of the maximum capacity required to accommodate all of
the communication interceptions, pen registers, and trap and trace
devices that the Attorney General estimates that government
agencies authorized to conduct electronic surveillance may conduct
and use simultaneously after the date that is 4 years after the
date of enactment of this title.

(2) Basis of notices.--The notices issued under paragraph (1)--

(A) may be based upon the type of equipment, type of service,
number of subscribers, type or size or carrier, nature of service
area, or any other measure; and 

(B) shall identify, to the maximum extent practicable, the
capacity required at specific geographic locations.

     (b) Compliance With Capacity Notices.--

(1) Initial capacity.--Within 3 years after the publication by the
Attorney General of a notice of capacity requirements or within 4
years after the date of enactment of this title, whichever is
longer, a telecommunications carrier shall, subject to subsection
(e), ensure that its systems are capable of--

(A) accommodating simultaneously the number of interceptions, pen
registers, and trap and trace devices set forth in the notice
under subsection (a)(l)(A); and (B) expanding to the maximum
capacity set forth in the notice under subsection (a)(l)(B).

(2) Expansion to maximum capacity.--After the date described in
paragraph (1), a telecommunications carrier shall, subject to
subsection (e), ensure that it can accommodate expeditiously any
increase in the actual number of communication interceptions, pen
registers, and trap and trace devices that authorized agencies may
seek to conduct and use, up to the maximum capacity requirement
set forth in the notice under subsection (a)(l)(B).

     (c) Notices of Increased Maximum Capacity Requirements.--

(1) Notice.--The Attorney General shall periodically publish in
the Federal Register, after notice and comment, notice of any
necessary increases in the maximum capacity requirement set forth
in the notice under subsection (a)(l)(B).

(2) Compliance.--Within 3 years after notice of increased maximum
capacity requirements is published under paragraph (1), or within
such longer time period as the Attorney General may specify, a
telecommunications carrier shall, subject to subsection (e),
ensure that its systems are capable of expanding to the increased
maximum capacity set forth in the notice.

     (d) Carrier Statement.--Within 180 days after the
publication by the Attorney General of a notice of capacity
requirements pursuant to subsection (a) or (c), a
telecommunications carrier shall submit to the Attorney General a
statement identifying any of its systems or services that do not
have the capacity to accommodate [545] simultaneously the number
of interceptions, pen registers, and trap and trace devices set
forth in the notice under such subsection.

     (e) Reimbursement Required for Compliance.--The Attorney
General shall review the statements submitted under subsection (d)
and may, subject to the availability of appropriations, agree to
reimburse a telecommunications carrier for costs directly
associated with modifications to attain such capacity requirement
that are determined to be reasonable in accordance with section
109(e). Until the Attorney General agrees to reimburse such
carrier for such modification, such carrier shall be considered to
be in compliance with the capacity notices under subsection (a) or
(c).


Sec. 105. Systems security and integrity.

     A telecommunications carrier shall ensure that any
interception of communications or access to call-identifying
information effected within its switching premises can be
activated only in accordance with a court order or other lawful
authorization and with the affirmative intervention of an
individual officer or employee of the carrier acting in accordance
with regulations prescribed by the Commission.


Sec. 106. Cooperation of equipment manufacturers and providers of
telecommunications support services.

     (a) Consultation.--A telecommunications carrier shall
consult, as necessary, in a timely fashion with manufacturers of
its telecommunications transmission and switching equipment and
its providers of telecommunications support services for the
purpose of ensuring that current and planned equipment,
facilities, and services comply with the capability requirements
of section 103 and the capacity requirements identified by the
Attorney General under section 104.

     (b) Cooperation.--Subject to sections 104(e), 108(a), and
109(b) and (d), a manufacturer of telecommunications transmission
or switching equipment and a provider of telecommunications
support services shall, on a reasonably timely basis and at a
reasonable charge, make available to the telecommunications
carriers using its equipment, facilities, or services such
features or modifications as are necessary to permit such carriers
to comply with the capability requirements of section 103 and the
capacity requirements identified by the Attorney General under
section 104.


Sec. 107. Technical requirements and standards; extension of
compliance date. 

     (a) Safe Harbor.--

(1) Consultation.--To ensure the efficient and industry-wide
implementation [546] of the assistance capability requirements
under section 103, the Attorney General, in coordination with
other Federal, State, and local law enforcement agencies, shall
consult with appropriate associations and standard-setting
organizations of the telecommunications industry, with
representatives of users of telecommunications equipment,
facilities, and services, and with State utility commissions.

(2) Compliance under accepted standards.--A telecommunications
carrier shall be found to be in compliance with the assistance
capability requirements under section 103, and a manufacturer of
telecommunications transmission or switching equipment or a
provider of telecommunications support services shall be found to
be in compliance with section 106, if the carrier, manufacturer,
or support service provider is in compliance with publicly
available technical requirements or standards adopted by an
industry association or standard-setting organization, or by the
Commission under subsection (b), to meet the requirements of
section 103.

(3) Absence of standards.--The absence of technical requirements
or standards for implementing the assistance capability
requirements of section 103 shall not-- (A) preclude a
telecommunications carrier, manufacturer, or telecommunications
support services provider from deploying a technology or service;
or

(B) relieve a carrier, manufacturer, or telecommunications support
services provider of the obligations imposed by section 103 or
106, as applicable.

     (b) Commission Authority.--If industry associations or
standard-setting organizations fail to issue technical
requirements or standards or if a government agency or any other
person believes that such requirements or standards are deficient,
the agency or person may petition the Commission to establish, by
rule, technical requirements or standards that--

(1) meet the assistance capability requirements of section 103 by
cost-effective methods;

(2) protect the privacy and security of communications not
authorized to be intercepted;

(3) minimize the cost of such compliance on residential
ratepayers;

(4) serve the policy of the United States to encourage the
provision of new technologies and services to the public; and

(5) provide a reasonable time and conditions for compliance with
and the transition to any new standard, including defining the
obligations of telecommunications carriers under section 103
during any transition period.

     (c) Extension of Compliance Date for Equipment, Facilities,
and Services.-- 

(1) Petition.--A telecommunications carrier proposing to install
or deploy, or having installed or deployed, any equipment,
facility, or service prior to the effective date of section 103
may petition the Commission for 1 or more extensions of the
deadline for complying with the assistance capability requirements
under section 103.

(2) Grounds for extension.--The Commission may, after consultation
with the Attorney General, grant an extension under this
subsection, if the Commission determines that compliance with the
assistance capability requirements under section 103 is not
reasonably achievable through application of technology available
within the compliance period. [547]

(3) Length of extension.--An extension under this subsection shall
extend for no longer than the earlier of--

(A) the date determined by the Commission as necessary for the
carrier to comply with the assistance capability requirements
under section 103; or

(B) the date that is 2 years after the date on which the extension
is granted.

(4) Applicability of extension.--An extension under this
subsection shall apply to only that part of the carrier's business
on which the new equipment, facility, or service is used.


Sec. 108. Enforcement orders.

     (a) Grounds for Issuance.--A court shall issue an order
enforcing this title under section 2522 of title 18, United States
Code, only if the court finds that--

(1) alternative technologies or capabilities or the facilities of
another carrier are not reasonably available to law enforcement
for implementing the interception of communications or access to
call-identifying information; and

(2) compliance with the requirements of this title is reasonably
achievable through the application of available technology to the
equipment, facility, or service at issue or would have been
reasonably achievable if timely action had been taken.

     (b) Time for Compliance.--Upon issuing an order enforcing
this title, the court shall specify a reasonable time and
conditions for complying with its order, considering the good
faith efforts to comply in a timely manner, any effect on the
carrier's, manufacturer's, or service provider's ability to
continue to do business, the degree of culpability or delay in
undertaking efforts to comply, and such other matters as justice
may require.

     (c) Limitations.--An order enforcing this title may not--

(1) require a telecommunications carrier to meet the government's
demand for interception of communications and acquisition of
call-identifying information to any extent in excess of the
capacity for which the Attorney General has agreed to reimburse
such carrier;

(2) require any telecommunications carrier to comply with
assistance capability requirement of section 103 if the Commission
has determined (pursuant to section 109(b)(1)) that compliance is
not reasonably achievable, unless the Attorney General has agreed
(pursuant to section 109(b)(2)) to pay the costs described in
section 109(b)(2)(A); or

(3) require a telecommunications carrier to modify, for the
purpose of complying with the assistance capability requirements
of section 103, any equipment, facility, or service deployed on or
before January 1,1995, unless--

(A) the Attorney General has agreed to pay the telecommunications
carrier for all reasonable costs directly associated with
modifications necessary to bring the equipment, facility, or
service into compliance with those requirements; or

(B) the equipment, facility, or service has been replaced or
significantly upgraded or otherwise undergoes major modification.
[548]


Sec. 109. Payment of costs of telecommunications carriers to
comply with capability requirements.

     (a) Equipment, Facilities, and Services Deployed on or
Before January 1, 1995.--The Attorney General may, subject to the
availability of appropriations, agree to pay telecommunications
carriers for all reasonable costs directly associated with the
modifications performed by carriers in connection with equipment,
facilities, and services installed or deployed on or before
January 1,1995, to establish the capabilities necessary to comply
with section 103.

     (b) Equipment, Facilities, and Services Deployed After
January 1,1995.-- 

(1) Determinations of reasonably achievable.--The Commission, on
petition from a telecommunications carrier or any other interested
person, and after notice to the Attorney General, shall determine
whether compliance with the assistance capability requirements of
section 103 is reasonably achievable with respect to any
equipment, facility, or service installed or deployed after
January 1,1995. The Commission shall make such determination
within 1 year after the date such petition is filed. In making
such determination, the Commission shall determine whether
compliance would impose significant difficulty or expense on the
carrier or on the users of the carrier's systems and shall
consider the following factors:

(A) The effect on public safety and national security. 

(B) The effect on rates for basic residential telephone service.

(C) The need to protect the privacy and security of communications
not authorized to be intercepted.

(D) The need to achieve the capability assistance requirements of
section 103 by cost-effective methods.

(E) The effect on the nature and cost of the equipment, facility,
or service at issue.

(F) The effect on the operation of the equipment, facility, or
service at issue.

(G) The policy of the United States to encourage the provision of
new technologies and services to the public.

(H) The financial resources of the telecommunications carrier.

(I) The effect on competition in the provision of
telecommunications services. a) The extent to which the design and
development of the equipment, facility, or service was initiated
before January 1,1995.

(K) Such other factors as the Commission determines are
appropriate.

(2) Compensation.--If compliance with the assistance capability
requirements of section 103 is not reasonably achievable with
respect to equipment, facilities, or services deployed after
January 1,1995--

(A) the Attorney General, on application of a telecommunications
carrier, may agree, subject to the availability of appropriations,
to pay the telecommunications carrier for the additional
reasonable costs of making compliance with such assistance
capability requirements reasonably achievable; and

(B) if the Attorney General does not agree to pay such costs, the
telecommunications carrier shall be deemed to be in compliance
with such capability requirements. [549]

     (c) Allocation of Funds for Payment.--The Attorney General
shall allocate funds appropriated to carry out this title in
accordance with law enforcement priorities determined by the
Attorney General.

     (d) Failure To Make Payment With Respect To Equipment,
Facilities, and Services Deployed on or Before January 1,1995.--If
a carrier has requested payment in accordance with procedures
promulgated pursuant to subsection (e), and the Attorney General
has not agreed to pay the telecommunications carrier for all
reasonable costs directly associated with modifications necessary
to bring any equipment, facility, or service deployed on or before
January 1,1995, into compliance with the assistance capability
requirements of section 103, such equipment, facility, or service
shall be considered to be in compliance with the assistance
capability requirements of section 103 until the equipment,
facility, or service is replaced or significantly upgraded or
otherwise undergoes major modification.

     (e) Cost Control Regulations.--

(1) In general.--The Attorney General shall, after notice and
comment, establish regulations necessary to effectuate timely and
cost-efficient payment to telecommunications carriers under this
title, under chapters 119 and 121 of title 18, United States Code,
and under the Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1801 et seq.).

(2) Contents of regulations.--The Attorney General, after
consultation with the Commission, shall prescribe regulations for
purposes of determining reasonable costs under this title. Such
regulations shall seek to minimize the cost to the Federal
Government and shall--

(A) permit recovery from the Federal Government of--

(i) the direct costs of developing the modifications described in
subsection (a), of providing the capabilities requested under
subsection (b)(2), or of providing the capacities requested under
section 104(e), but only to the extent that such costs have not
been recovered from any other governmental or nongovernmental
entity;

(ii) the costs of training personnel in the use of such
capabilities or capacities; and

(iii) the direct costs of deploying or installing such
capabilities or capacities;

(B) in the case of any modification that may be used for any
purpose other than lawfully authorized electronic surveillance by
a law enforcement agency of a government, permit recovery of only
the incremental cost of making the modification suitable for such
law enforcement purposes; and

(C) maintain the confidentiality of trade secrets.

(3) Submission of claims.--Such regulations shall require any
telecommunications carrier that the Attorney General has agreed to
pay for modifications pursuant to this section and that has
installed or deployed such modification to submit to the Attorney
General a claim for payment that contains or is accompanied by
such information as the Attorney General may require. [550]


Sec. 110. Authorization of appropriations.

     There are authorized to be appropriated to carry out this
title a total of $500,000,000 for fiscal years 1995,1996,1997, and
1998. Such sums are authorized to remain available until expended.


Sec. 111. Effective date.

     (a) In General.--Except as provided in subsection (b), this
title shall take effect on the date of enactment of this Act.

     (b) Assistance Capability and Systems Security and Integrity
Requirements.--Sections 103 and 105 of this title shall take
effect on the date that is 4 years after the date of enactment of
this Act.


Sec. 112. Reports.

     (a) Reports by the Attorney General.--

(1) In general.--On or before November 30,1995, and on or before
November 30 of each year thereafter, the Attorney General shall
submit to Congress and make available to the public a report on
the amounts paid during the preceding fiscal year to
telecommunications carriers under sections 104(e) and 109

(2) Contents.--A report under paragraph (1) shall include--

(A) a detailed accounting of the amounts paid to each carrier and
the equipment, facility, or service for which the amounts were
paid; and

(B) projections of the amounts expected to be paid in the current
fiscal year, the carriers to which payment is expected to be made,
and the equipment, facilities, or services for which payment is
expected to be made.

     (b) Reports by the Comptroller General.--

(1) Payments for modifications. On or before April 1,1996, and
every 2 years thereafter, the Comptroller General of the United
States, after consultation with the Attorney General and the
telecommunications industry, shall submit to the Congress a
report--

(A) describing the type of equipment, facilities, and services
that have been brought into compliance under this title; and

(B) reflecting its analysis of the reasonableness and
cost-effectiveness of the payments made by the Attorney General to
telecommunications carriers for modifications necessary to ensure
compliance with this title.

(2) Compliance cost estimates.--A report under paragraph (1) shall
include the findings and conclusions of the Comptroller General on
the costs to be incurred by telecommunications carriers to comply
with the assistance capability requirements of section 103 after
the effective date of such section 103, including projections of
the amounts expected to be incurred and a description of the
equipment, facilities, or services for which they are expected to
be incurred. [551]

[End N.1.4]
