H.R. 4943House109th Congress (2005-2007)In Committee

Prevention of Fraudulent Access to Phone Records Act

Legislative Activity

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3 earlier actions

HouseCalendars Latest Action

Placed on the Union Calendar, Calendar No. 217.

March 16, 2006

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HouseIntro Referral

Introduced in House

March 14, 2006

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

March 14, 2006

HouseCommittee

Reported by the Committee on Energy and Commerce. H. Rept. 109-398.

Energy and Commerce Committee

March 16, 2006

HouseCalendars

Placed on the Union Calendar, Calendar No. 217.

March 16, 2006

Floor Debate

3 members

What members said about H.R. 4943 on the floor

2 Republicans1 Democrat

Rep. Steny H. HoyerD-MD-5 · Apr 27, 2006

Mr. Speaker, I yield to the majority leader for the purposes of inquiring about the schedule for the balance of the week and the week to come. Mr. Leader, could you comment perhaps on the…

Mr. Speaker, I yield to the majority leader for the purposes of inquiring about the schedule for the balance of the week and the week to come.

Mr. Leader, could you comment perhaps on the Communications Opportunity Promotion and Enhancement Act, the Telecom Act.

I yield to my friend.

Reclaiming my time, I thank the gentleman for that information. Of course, there was expectation that we were going to pass the lobbying reform act that was offered. We are obviously not doing that. You mentioned that it would be up on Tuesday. My question is, is that accurate? I am sure that you would tell the truth, but, I mean, I want to make that clear.

I yield to the majority leader.

I think that is very important, Mr. Leader, for us to know and maybe we can work on that because obviously Members want to speak on amendments and they would have to know whether they have to be back before the 6:30 voting if you were going to take it up prior to that.

I yield to my friend.

Yes. We have not discussed that, but I am sure that would be fine.

That is acceptable to us. We think the bill needs a lot of work, and that will give you some more time to work on it.

I am sorry. I couldn't help myself.

Now, Mr. Leader, the budget. We have not voted on a budget yet. And you did not mention it in your schedule. Is there any expectation that you might have, Mr. Leader, that the budget might be on the floor either next week or some week after that?

I yield to my friend.

Still?

I presume the Appropriations Committee, at some point in time, will proceed without the budget. Would that be your expectation if we don't pass a budget in the near term?

Mr. Leader, let me turn the page here. The other bills that you and I have talked about, one in particular we think is extraordinarily important. I know you feel it is important, and that is the pension bill. There are literally millions of Americans and thousands of companies very concerned about the status of the pension conference. Can you bring us up to date on whether or not you have any expectation that the pension conference would be completed in the near term and come to the floor?

I yield to my friend.

Reclaiming my time. Mr. Leader, again, I say this with all due respect and seriousness. I read in the paper today that the conferees met last night. With all due respect, Mr. Leader, the conferees did not meet last night. Apparently, the Republican conferees met last night. You indicated both sides of the aisle. It is my understanding, from our conferees, that they are not being included in the discussions of the conference. Again, it is our perspective that cuts out about 125 million Americans that we represent on this side of the aisle from discussions about an issue that you have worked very hard on, Members on our side have worked very hard on, and that we all agree is critical to our country and to millions of Americans individually. I would hope, Mr. Leader, that you would prevail on the chairman of the conference to include our side of the aisle in the discussions.

We can't be helpful or, frankly, we can't know what is going on if we are not in the room.

I would be glad to yield to my friend.

Mr. Leader, I hope that is accurate. I understand that in any conference, the chairman of the conference ought to take the position that unless all things are agreed to the conference is not closed on other issues that might have been tentatively agreed to. But if, frankly, our side of the aisle is not included, does not have the opportunity to put our input into the issues, very frankly, too often, I have been here a long time. You are right, and I have been in a lot of conferences. And those have been real conferences. They have not been conferences that one side has agreed on, comes to the conference and says it's done.

The leader looks at me somewhat disparagingly or at least incredulously that there haven't been such conferences that occurred prior to the leadership of the Republican Party. I understand what he is saying, but this is a pattern, Mr. Leader. We have talked about it on a regular basis. And it is not good for this institution.

I yield to the leader.

Reclaiming my time, I appreciate the representation of the leader, and I take him at his word. I have found his word to be good in the past. I certainly take him at his word, and I thank him for that.

No doubt in my mind. I am not going to quote Ronald Reagan.

Rep. John A. BoehnerR-OH-8 · Apr 27, 2006

I thank my colleague for yielding. Given the hour and the commitments that Members have tomorrow, it is the intention of the majority leader to finish the bill under which the rule we just passed on ethics and lobbying reform on Tuesday. And so the House will convene at 12:30 for morning hour and 2 o'clock for legislative business. There will be some suspensions. Votes will be rolled until 6:30.

On Wednesday and the balance of the week, the House will consider H.R. 4943, the Prevention of Fraudulent Access to Phone Records Act. In addition to H.R. 4943, we will do H.R. 4954, the SAFE Port Act, which the Committee on Homeland Security completed yesterday, and we are continuing to work with other committees to assure that this bill will be ready. I would expect this bill to be considered on Thursday.

The committees of jurisdiction have also begun to hold hearings on energy, and Members should expect votes in the coming weeks addressing America's energy needs. That completes my report on what next week looks like.

There is a possiblity that the telco bill could get out next week. The committee acted. There are other committees of interest, and we are working with them. It is too early to give a hard commitment that it will be up next week.

If the gentleman would yield.

Let me work with you on whether that is actually Tuesday or whether we do it first thing Wednesday morning.

Does the gentleman want to agree right now that the first thing, the first order of business on Wednesday morning will be to take up the lobby and ethics reform package?

If it meets with your approval, I would be happy to do it.

I am hopeful.

Still.

I would hope that we would have a budget.

I appreciate my colleague for yielding. It is important that we protect America's pensions and that we protect the pension system that we have. And having spent some 6 years working on this proposal, trust me, there is no one wants this finished more than me.

There was some progress last night amongst the principals, and I remain optimistic that we will have this finished before the Memorial Day District Work Period. I am hopeful that it will be finished before then. But there has been some movement. There is some cooperation with the Senate. And I have talked to Members on both sides of the aisle, both the House and Senate, that are working together to get this issue passed. And I am very optimistic.

Will the gentleman yield?

I appreciate my friend yielding. The gentleman has been involved in a number of conferences himself over his long and distinguished career here in the House. And you realize that at some point, getting the basic framework or at least some beginning framework together amongst the principals, the committee Chairs, is essential before bringing other Members into this.

The chairman of the conference, Senator Enzi, and I have talked about this on several occasions, and I am very confident that you, all Members will have an opportunity to participate because it has been clear, as it is in all conferences that I am in, that nothing is agreed to until everything is agreed to. And so the gentleman should have no fears.

Mr. Speaker, will the gentleman yield?

I appreciate the concerns raised by my friend from Maryland, but I need to remind my colleagues that the Pension Protection Act passed right before Christmas with almost 300 votes. There was broad bipartisan support for this bill, and it is my intention to maintain that broad bipartisan support for an eventual conference report. And the gentleman has my word that all Members will have their opportunity to be engaged in this conference report.

It still is.

Rep. Rob BishopR-UT-1 · Apr 27, 2006

The Committee on Rules may meet the week of May 1 to grant a rule which could limit the amendment process for floor consideration of H.R. 4943, the Prevention of Fraudulent Access to Phone Records…

Bill Text

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Reported in HouseIssued March 16, 2006

Union Calendar No. 217

109th CONGRESS

2d Session

H. R. 4943

[Report No. 109-398]

IN THE HOUSE OF REPRESENTATIVES

March 14, 2006

Mr. Barton of Texas (for himself, Mr. Dingell, Mr. Upton, Mr. Markey, Mr. Stearns, Ms. Schakowsky, Mr. Gillmor, Mr. Gene Green of Texas, Mr. Shimkus, Mr. Ross, Mrs. Wilson of New Mexico, Mr. Brown of Ohio, Mr. Fossella, Ms. Baldwin, Mr. Buyer, Mrs. Capps, Mrs. Bono, Mr. Doyle, Mr. Walden of Oregon, Ms. Solis, Mr. Burgess, Mr. Rush, Mr. Waxman, Mr. Stupak, Mr. Gordon, Mr. Inslee, Mrs. Emerson, Mr. Lipinski, and Mr. Wilson of South Carolina) introduced the following bill; which was referred to the Committee on Energy and Commerce

March 16, 2006

Additional sponsor: Mr. Shadegg

March 16, 2006

Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

A BILL

To prohibit fraudulent access to telephone records.

Short title

This Act may be cited as the Prevention of Fraudulent Access to Phone Records Act.

Federal Trade Commission Provisions

101.

Fraudulent access to customer telephone records

(a)

Prohibition on obtaining customer information by false pretenses

It shall be unlawful for any person to obtain or attempt to obtain, or cause to be disclosed or attempt to cause to be disclosed to any person, customer proprietary network information relating to any other person by—

(1)

making a false, fictitious, or fraudulent statement or representation to an officer, employee, or agent of a telecommunications carrier; or

(2)

providing any document or other information to an officer, employee, or agent of a telecommunications carrier that the person knows or should know to be forged, counterfeit, lost, stolen, or fraudulently obtained, or to contain a false, fictitious, or fraudulent statement or representation.

(b)

Prohibition on solicitation of a person to obtain customer information under false pretenses

It shall be unlawful to request a person to obtain from a telecommunications carrier customer proprietary network information relating to any third person, if the person making such a request knew or should have known that the person to whom such a request is made will obtain or attempt to obtain such information in the manner described in subsection (a).

(c)

Prohibition on sale or other disclosure of customer information obtained under false pretenses

It shall be unlawful for any person to sell or otherwise disclose to any person customer proprietary network information relating to any other person if the person selling or disclosing obtained such information in the manner described in subsection (a).

102.

Exemption

No provision of section 101 shall be construed so as to prevent any action by a law enforcement agency, or any officer, employee, or agent of such agency, from obtaining or attempting to obtain customer proprietary network information from a telecommunications carrier in connection with the performance of the official duties of the agency, in accordance with other applicable laws.

103.

Enforcement by the Federal Trade Commission

A violation of section 101 shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). The Federal Trade Commission shall enforce this title in the same manner, by the same means, and with the same jurisdiction as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of this title.

104.

Definitions

As used in this title—

(1)

the term customer proprietary network information has the meaning given such term in section 222(j)(1) of the Communications Act of 1934 (47 U.S.C. 222(j)(1)) (as redesignated by section 203 of this Act);

(2)

the term telecommunications carrier—

(A)

has the meaning given such term in section 3(44) of the Communications Act of 1934 (47 U.S.C. 153(44)); and

(B)

includes any provider of real-time Internet protocol-enabled voice communications; and

(3)

the term real-time Internet protocol-enabled voice communications means any service that is treated by the Federal Communications Commission as a telecommunications service provided by a telecommunications carrier for purposes of section 222 of the Communications Act of 1934 (47 U.S.C. 222) under regulations promulgated pursuant to subsection (h) of such section.

Federal Communications Commission Provisions

201.

Findings

The Congress finds the following:

(1)

As our Nation’s communications networks become more ubiquitous and increasingly sophisticated, more individuals and industries will be using such networks in greater amounts to communicate and conduct commercial transactions.

(2)

The ease of gathering and compiling sensitive personal information as a result of such communications is becoming more efficient and commonplace due to advances in digital technology and the widespread use of the Internet.

(3)

Ensuring the privacy of sensitive individual telephone calling records, both wireline and wireless, is of utmost importance. The information gathered and retained by communications providers can convey details about intimate aspects of an individual’s life, including who they call, when they call, the duration of such calls, the frequency of their communications, information about their purchases, informational inquiries, political or religious interests, or other affiliations.

(4)

Disclosure of personal telephone records can also lead to harassment, intimidation, physical harm, and identity theft.

(5)

The government has a compelling interest in protecting sensitive personal information contained in customer telephone records and ensuring that commercial interests adequately protect such records in order to preserve individual freedom, safeguard personal privacy, and ensure trust in electronic commerce.

(6)

Because customers have a proprietary interest in their sensitive personal information, customers should have some control over the use and disclosure of telephone calling records.

(7)

A telecommunications carrier may use aggregated data it has obtained from its customer databases to improve services, solicit new business, or market additional services to its customers.

(8)

A telecommunications carrier may communicate to all consumers in order to broadly solicit new business, and may also target specific communications to its own existing customers, without use or disclosure of detailed customer calling records and thus without the threat of compromising customer privacy.

(9)

The risk of compromising customer privacy is raised and increased whenever additional entities or persons are permitted use of, or access to, or receive disclosure of, customer calling records beyond the carrier with which the customer has an established business relationship.

(10)

A telecommunications carrier which obtains or possesses a customer’s calling records has a duty to safeguard the confidentiality of such customer's personal information. Detailed customer calling records describing the customer’s use of telecommunications services should not be publicly available or offered for commercial sale.

202.

Expanded protection for detailed customer records

(a)

Confidentiality of Customer Information

Paragraph (1) of section 222(c) of the Communications Act of 1934 (47 U.S.C. 222(c)(1)) is amended to read as follows:

(1)

Privacy requirements for telecommunications carriers

(A)

In general

Except as required by law or as permitted under the following provisions of this paragraph, a telecommunications carrier that receives or obtains individually identifiable customer proprietary network information (including detailed customer telephone records) by virtue of its provision of a telecommunications service shall only use, disclose, or permit access to such information or records in the provision by such carrier of—

(i)

the telecommunications service from which such information is derived; or

(ii)

services necessary to, or used in, the provision of such telecommunications service, including the publishing of directories.

(B)

Requirements for disclosure of detailed information

A telecommunications carrier may only use detailed customer telephone records through, or disclose such records to, or permit access to such records by, a joint venture partner, independent contractor, or any other third party (other than an affiliate) if the customer has given express prior authorization for that use, disclosure, or access, and that authorization has not been withdrawn.

(C)

Requirements for affiliate use of both general and detailed information

A telecommunications carrier may not, except with the approval of a customer, use individually identifiable customer proprietary network information (including detailed customer telephone records) through, or disclose such information or records to, or permit access to such information or records by, an affiliate of such carrier in the provision by such affiliate of the services described in clause (i) or (ii) of subparagraph (A).

(D)

Requirements for partner and contractor use of general information

A telecommunications carrier may not, except with the approval of the customer, use individually identifiable customer proprietary network information (other than detailed customer telephone records) through, or disclose such information to, or permit access to such information by, a joint venture partner or independent contractor in the provision by such partner or contractor of the services described in clause (i) or (ii) of subparagraph (A).

(E)

Access to wireless telephone numbers

A telecommunications carrier may not, except with prior express authorization from the customer, disclose the wireless telephone number of any customer or permit access to the wireless telephone number of any customer.

(b)

Disclosure of detailed information on request by customer

Section 222(c)(2) of such Act is amended by inserting (including a detailed customer telephone record) after customer proprietary network information.

(c)

Aggregate data

Section 222(c)(3) of such Act is amended by adding at the end the following new sentence: Aggregation of data that is conducted by a third party may be treated for purposes of this subsection as aggregation by the carrier if such aggregation is conducted in a secure manner under the control or supervision of the carrier..

(d)

Prohibition of sale of general or detailed information

Section 222(c) of such Act is further amended by adding at the end the following new paragraph:

(4)

Prohibition of sale of general or detailed information

Except for the purposes for which use, disclosure, or access is permitted under subsection (d), it shall be unlawful for any person to sell, rent, lease, or otherwise make available for remuneration or other consideration the customer proprietary network information (including the detailed customer telephone records) of any customer.

(e)

Exceptions to limitations on disclosures of detailed information

Section 222(d) of such Act is amended—

(1)

by striking its agents and inserting its joint venture partners, contractors, or agents; and

(2)

in paragraph (1), by inserting after telecommunications services the following: , or provide customer service with respect to telecommunications services to which the customer subscribes.

203.

Prevention by telecommunications carriers of fraudulent access to phone records

Section 222 of the Communications Act of 1934 (47 U.S.C. 222) is further amended—

(1)

by redesignating subsection (h) as subsection (j);

(2)

by inserting after subsection (g) the following new subsections:

(h)

Prevention of fraudulent access to phone records

(1)

Regulations

Within 180 days after the date of enactment of the Prevention of Fraudulent Access to Phone Records Act, the Commission shall prescribe regulations adopting more stringent security standards for customer proprietary network information (including detailed customer telephone records) to detect and prevent violations of this section. The Commission—

(A)

shall prescribe regulations—

(i)

to require timely notice (written or electronic) to each customer upon breach of the regulations under this section with respect to customer proprietary network information relating to that customer;

(ii)

to require timely notice to the Commission upon breach of the regulations under this section with respect to customer proprietary network information relating to any customer;

(iii)

to require periodic audits by the Commission of telecommunication carriers and their agents to determine compliance with this section;

(iv)

to require telecommunications carriers and their agents to maintain records—

(I)

of each time customer proprietary network information is requested or accessed by, or disclosed to, a person purporting to be the customer or to be acting at the request or direction of the customer; and

(II)

if such access or disclosure was granted to such a person, of how the person’s identity or authority was verified;

(v)

to require telecommunications carriers to establish a security policy that includes appropriate standards relating to administrative, technical, and physical safeguards to ensure the security and confidentiality of customer proprietary network information;

(vi)

to prohibit any telecommunications carrier from obtaining or attempting to obtain, or causing to be disclosed or attempting to cause to be disclosed to that carrier or its agent or employee, customer proprietary network information relating to any customer of another carrier—

(I)

by using a false, fictitious, or fraudulent statement or representation to an officer, employee, or agent of another telecommunications carrier; or

(II)

by making a false, fictitious, or fraudulent statement or representation to a customer of another telecommunications carrier; and

(vii)

only for the purposes of this section, to treat as a telecommunications service provided by a telecommunications carrier any real-time Internet protocol-enabled voice communications offered by any person to the public, or such classes of users as to be effectively available to the public, that allows a user to originate traffic to, or terminate traffic from, the public switched telephone network; and

(B)

shall consider prescribing regulations—

(i)

to require telecommunications carriers to institute customer-specific identifiers in order to access customer proprietary network information;

(ii)

to require encryption of customer proprietary network information data or other safeguards to better secure such data; and

(iii)

to require deletion of customer proprietary network information data after a reasonable period of time if such data is no longer necessary for the purpose for which it was collected or for the purpose of an exception contained in section (d), and there are no pending requests for access to such information.

(2)

Reports

(A)

Assessment and recommendations

Within 12 months after the date on which the Commission’s regulations under paragraph (1) are prescribed, and again not later than 3 years later, the Commission shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report containing—

(i)

an assessment of the efficacy and adequacy of the regulations and remedies provided in accordance with this subsection in protecting customer proprietary network information;

(ii)

an assessment of the efficacy and adequacy of telecommunications carriers' safeguards to secure such data, security plans, and notification procedures; and

(iii)

any recommendations for additional legislative or regulatory action to address threats to the privacy of customer information.

(B)

Annual Report

The Federal Communications Commission shall submit to Congress an annual report containing—

(i)

the number and disposition of all enforcement actions taken pursuant to this subsection; and

(ii)

the number and type of notifications received under paragraph (1)(A)(ii) and the methodology, including the basis for the selection of carriers to be audited, and the results of each audit conducted under paragraph (1)(A)(iii).

(3)

Dual regulation prohibited

Any person that is treated as a telecommunications carrier providing a telecommunications service with respect to the offering of real-time Internet protocol-enabled voice communications by the regulations prescribed under paragraph (1)(A)(vii) shall not be subject to the provisions of section 631 with respect to the offering of such communications.

(i)

Forfeiture penalties

(1)

Increased penalties

In any case in which the violator is determined by the Commission under section 503(b)(1) to have violated this section or the regulations thereunder, section 503(b)(2)(B) shall be applied—

(A)

by substituting $300,000 for $100,000; and

(B)

by substituting $3,000,000 for $1,000,000.

(2)

No first warnings

Paragraph (5) of section 503(b) shall not apply to the determination of forfeiture liability under such section with respect to a violation of this section or the regulations thereunder by any telecommunications carrier or any agent of such a carrier.

; and

(3)

in subsection (g), by striking subsection (i)(3)(A) and inserting subsection (j)(3)(A).

204.

Definitions

Subsection (j) of section 222 of the Communications Act of 1934 (47 U.S.C. 222(j)), as redesignated by section 203(1) of this Act, is amended by adding at the end the following new paragraphs:

(8)

Detailed customer telephone record

The term detailed customer telephone record means customer proprietary network information that contains the specific and detailed destinations, locations, duration, time, and date of telecommunications to or from a customer, as typically contained in the bills for such service. Such term does not mean aggregate data or subscriber list information.

(9)

Wireless telephone number

The term wireless telephone number means the telephone number of a subscriber to a commercial mobile service.

March 16, 2006

Committed to the Committee of the Whole House on the State of the Union and ordered to be printed