104th CONGRESS 1st Session To prohibit certain acts involving the use of computers in the furtherance of crimes, and for other purposes. IN THE SENATE OF THE UNITED STATES June 27 (legislative day, June 19), 1995 Mr. Grassley introduced the following bill; which was read twice and referred to the Committee on the Judiciary A BILL To prohibit certain acts involving the use of computers in the furtherance of crimes, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the `Anti-Electronic Racketeering Act of 1995'. SEC. 2. PROHIBITED ACTIVITIES. (a) Definitions: Section 1961(1) of title 18, United States Code, is amended-- (1) by striking `1343 (relating to wire fraud)' and inserting `1343 (relating to wire and computer fraud)'; (2) by striking `that title' and inserting `this title'; (3) by striking `or (E)' and inserting `(E)'; and (4) by inserting before the semicolon the following: `or (F) any act that is indictable under section 1030, 1030A, or 1962(d)(2)'. (b) Use of Computer To Facilitate Racketeering Enterprise: Section 1962 of title 18, United States Code, is amended-- (1) by redesignating subsection (d) as subsection (e); and (2) by inserting after subsection (c) the following new subsection: `(d) It shall be unlawful for any person-- `(1) to use any computer or computer network in furtherance of a racketeering activity (as defined in section 1961(1)); or `(2) to damage or threaten to damage electronically or digitally stored data.'. (c) Criminal Penalties: Section 1963(b) of title 18, United States Code, is amended-- (1) by striking `and' at the end of paragraph (1); (2) by striking the period at the end of paragraph (2) and inserting `; and'; and (3) by adding at the end the following new paragraph: `(3) electronically or digitally stored data.'. (d) Civil Remedies: Section 1964(c) of title 18, United States Code, is amended by striking `his property or business'. (e) Use as Evidence of Intercepted Wire or Oral Communications: Section 2515 of title 18, United States Code, is amended by inserting before the period at the end the following: `, unless the authority in possession of the intercepted communication attempted in good faith to comply with this chapter. If the United States or any State of the United States, or subdivision thereof, possesses a communication intercepted by a nongovernmental actor, without the knowledge of the United States, that State, or that subdivision, the communication may be introduced into evidence'. (f) Authorization for Interception of Wire, Oral, or Electronic Communications: Section 2516(1) of title 18, United States Code, is amended-- (1) by striking `and' at the end of paragraph (n); (2) by striking the period at the end of paragraph (o) and inserting `; and'; and (3) by adding at the end the following new paragraph: `(p) any violation of section 1962 of title 18.'. (g) Procedures for Interception: Section 2518(4)(b) of title 18, United States Code, is amended by inserting before the semicolon the following: `to the extent feasible'. (h) Computer Crimes: (1) New prohibited activities: Chapter 47 of title 18, United States Code, is amended by adding at the end the following new section: `Sec. 1030A. Racketeering-related crimes involving computers `(a) It shall be unlawful-- `(1) to use a computer or computer network to transfer unlicensed computer software, regardless of whether the transfer is performed for economic consideration; `(2) to distribute computer software that encodes or encrypts electronic or digital communications to computer networks that the person distributing the software knows or reasonably should know, is accessible to foreign nationals and foreign governments, regardless of whether such software has been designated as nonexportable; `(3) to use a computer or computer network to transmit a communication intended to conceal or hide the origin of money or other assets, tangible or intangible, that were derived from racketeering activity; and `(4) to operate a computer or computer network primarily to facilitate racketeering activity or primarily to engage in conduct prohibited by Federal or State law. `(b) For purposes of this section, each act of distributing software is considered a separate predicate act. Each instance in which nonexportable software is accessed by a foreign government, an agent of a foreign government, a foreign national, or an agent of a foreign national, shall be considered as a separate predicate act. `(c) It shall be an affirmative defense to prosecution under this section that the software at issue used a universal decoding device or program that was provided to the Department of Justice prior to the distribution.'. (2) Clerical amendment: The analysis at the beginning of chapter 47, United States Code, is amended by adding at the end the following new item: `1030A. Racketeering-related crimes involving computers.'. (3) Jurisdiction and venue: Section 1030 of title 18, United States Code, is amended by adding at the end the following new subsection: `(g)(1)(A) Any act prohibited by this section that is committed using any computer, computer facility, or computer network that is physically located within the territorial jurisdiction of the United States shall be deemed to have been committed within the territorial jurisdiction of the United States. `(B) Any action taken in furtherance of an act described in subparagraph (A) shall be deemed to have been committed in the territorial jurisdiction of the United States. `(2) In any prosecution under this section involving acts deemed to be committed within the territorial jurisdiction of the United States under this subsection, venue shall be proper where the computer, computer facility, or computer network was physically situated at the time at least one of the wrongful acts was committed.'. (i) Wire and Computer Fraud: Section 1343 of title 18, United States Code, is amended by striking `or television communication' and inserting `television communication, or computer network or facility'. (j) Privacy Protection Act: Section 101 of the Privacy Protection Act of 1980 (42 U.S.C. 2000aa) is amended-- (1) in subsection (a)-- (A) by striking `or' at the end of paragraph (1); (B) by striking the period at the end of paragraph (2) and inserting `; or'; and (C) by adding at the end the following new paragraph: `(3) there is reason to believe that the immediate seizure of such materials is necessary to prevent the destruction or altercation of such documents.'; and (2) in subsection (b)-- (A) by striking `or' at the end of paragraph (3); (B) by striking the period at the end of paragraph (4) and inserting `; or'; and (C) by adding at the end the following new paragraph: `(5) in the case of electronically stored data, the seizure is incidental to an otherwise valid seizure, and the government officer or employee-- `(A) was not aware that work product material was among the data seized; `(B) upon actual discovery of the existence of work product materials, the government officer or employee took reasonable steps to protect the privacy interests recognized by this section, including-- `(i) using utility software to seek and identify electronically stored data that may be commingled or combined with non-work product material; and `(ii) upon actual identification of such material, taking reasonable steps to protect the privacy of the material, including seeking a search warrant.'.