[House Report 111-321]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-321
======================================================================
PREVENTING HARASSMENT THROUGH OUTBOUND NUMBER ENFORCEMENT ACT OF 2009
(PHONE ACT OF 2009)
_______
November 2, 2009.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Conyers, from the Committee on the Judiciary, submitted the
following
R E P O R T
[To accompany H.R. 1110]
[Including cost estimate of the Congressional Budget Office]
The Committee on the Judiciary, to whom was referred the bill
(H.R. 1110) to amend title 18, United States Code, to prevent
caller ID spoofing, and for other purposes, having considered
the same, reports favorably thereon with an amendment and
recommends that the bill as amended do pass.
CONTENTS
Page
The Amendment.................................................... 1
Purpose and Summary.............................................. 2
Background and Need for the Legislation.......................... 3
Hearings......................................................... 3
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 4
New Budget Authority and Tax Expenditures........................ 4
Congressional Budget Office Cost Estimate........................ 4
Performance Goals and Objectives................................. 5
Constitutional Authority Statement............................... 5
Advisory on Earmarks............................................. 5
Section-by-Section Analysis...................................... 6
Changes in Existing Law Made by the Bill, as Reported............ 6
The Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Preventing Harassment through
Outbound Number Enforcement Act of 2009'' or the ``PHONE Act of 2009''.
SEC. 2. CALLER ID SPOOFING.
(a) In General.--Chapter 47 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 1041. Caller ID spoofing
``(a) Offense.--Whoever, in or affecting interstate or foreign
commerce, knowingly uses or provides to another--
``(1) false caller ID information with intent wrongfully to
obtain anything of value; or
``(2) caller ID information pertaining to an actual person
or other entity without that person's or entity's consent and
with intent to deceive any person or other entity about the
identity of the caller;
or attempts or conspires to do so, shall be punished as provided in
subsection (b).
``(b) Punishment.--Whoever violates subsection (a) shall--
``(1) if the offense is a violation of subsection (a)(1),
be fined under this title or imprisoned not more than 5 years,
or both; and
``(2) if the offense is a violation of subsection (a)(2),
be fined under this title or imprisoned not more than one year,
or both.
``(c) Law Enforcement Exception.--This section does not prohibit
lawfully authorized investigative, protective, or intelligence activity
of a law enforcement agency of the United States, a State, or a
political subdivision of a State, or of an intelligence agency of the
United States, or any activity authorized under chapter 224 of this
title.
``(d) Forfeiture.--
``(1) In general.--The court, in imposing sentence on a
person who is convicted of an offense under this section, shall
order that the defendant forfeit to the United States--
``(A) any property, real or personal, constituting
or traceable to gross proceeds obtained from such
offense; and
``(B) any equipment, software or other technology
used or intended to be used to commit or to facilitate
the commission of such offense.
``(2) Procedures.--The procedures set forth in section 413
of the Controlled Substances Act (21 U.S.C. 853), other than
subsection (d) of that section, and in Rule 32.2 of the Federal
Rules of Criminal Procedure, shall apply to all stages of a
criminal forfeiture proceeding under this section.
``(e) Definitions.--In this section--
``(1) the term `caller ID information' means any
identifying information regarding the origination of a
telephone call, including the name or the telephone number of
the caller, that is transmitted with the telephone call;
``(2) the term `telephone call' means a call made or
received using any real time voice communications service,
regardless of the technology or network used; and
``(3) the term `State' includes a State of the United
States, the District of Columbia, and any commonwealth,
territory, or possession of the United States.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 47 of title 18, United States Code, is amended by adding at the
end the following new item:
``1041. Caller ID spoofing.''.
SEC. 3. OTHER SPECIFIED UNLAWFUL ACTIVITIES FOR MONEY LAUNDERING.
Section 1956(c)(7)(D) of title 18, United States Code, is amended
by inserting ``section 1037 (relating to fraud and related activity in
connection with electronic mail), section 1041 (relating to caller ID
spoofing),'' before ``section 1111''.
Purpose and Summary
The purpose of H.R. 1110, the ``Preventing Harassment
through Outbound Number Enforcement (PHONE) Act of 2009,'' is
to prevent and mitigate identity theft and to ensure privacy by
establishing criminal penalties for caller ID ``spoofing.'' The
bill targets spoofing by prohibiting the use of caller ID
information to hide the callers' true identity in order to
wrongfully obtain anything of value or to commit other abusive
acts. The bill provides for felony penalties of up to 5 years
in prison for violations committed with the intent to
wrongfully obtain anything of value. Certain abusive uses of
another person's caller ID information without commercial
motives are classified as misdemeanors under the bill.
Background and Need for the Legislation
In recent years, spoofing has become more commonplace,
leading to increased security vulnerabilities and identity
theft. Spoofing involves the use of a false caller ID to hide
the caller's true identity in order to commit fraud or some
other abusive act. Recently, spoofing technology has become
readily available, either through the purchase of Internet
telephone equipment or through Web sites specifically set up to
spoof. For example, Voice-Over-Internet-Protocol (VOIP)
equipment can easily be configured to populate the caller ID
field with information of the user's choosing.
Since caller ID spoofing can make a call appear to come
from any phone number, it has the ability to cause damaged
credit and financial ruin. Call recipients sometimes divulge
personal and private information to the spoofer, under the
mistaken belief that it is a legitimate call. For example, the
AARP (formerly the American Association of Retired Persons) has
reported cases in which spoofers called individuals claiming
that they had missed jury duty.\1\ These individuals were told
that they would be subject to prosecution if they did not
provide their Social Security number and other personal
information. The phone number that appeared on their caller ID
was from the local courthouse, so the victims assumed that the
call was legitimate. Such incidences have been reported in at
least 15 States, including the District of Columbia.\2\
---------------------------------------------------------------------------
\1\Sid Kirchheimer, Scam Alert: Courthouse Con, AARP Bulletin, May
2006, available at http://www.aarp.org/bulletin/consumer/courthouse--
con.html
\2\Id.
---------------------------------------------------------------------------
In addition to identity theft, spoofing invades the privacy
of those individuals whose caller ID is used to mask fraudulent
calls, and therefore it can be used as a form of aggressive
harassment. Additionally, many business functions, from credit
card verification to automatic call routing, opt to use caller
ID for security purposes, which spoofing can render useless.
However, there are instances where caller ID information is
altered for legitimate reasons. For example, a domestic
violence shelter may alter caller ID information to ensure the
safety of domestic violence victims. In addition, in many
instances where telemarketers are hired by companies, the
caller ID information transmitted is that of the actual
company, allowing those receiving the call to have a reliable
way to call back.
Hearings
The Committee's Subcommittee on Crime, Terrorism, and
Homeland Security held 1 day of hearings on a predecessor bill,
H.R. 740, during the 110th Congress, on February 6, 2007.
Testimony was received from two witnesses: Congressman Tim
Murphy of Pennsylvania, and Barry M. Sabin, Deputy Assistant
Attorney General, Criminal Division, United States Department
of Justice.
Committee Consideration
On October 7, 2009, the Committee met in open session and
ordered the bill H.R. 1110 favorably reported, with one
amendment, by a voice vote, a quorum being present.
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that there
were no recorded votes during Committee consideration of H.R.
1110.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives is inapplicable because this legislation does
not provide new budgetary authority or increased tax
expenditures.
Congressional Budget Office Cost Estimate
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the Committee sets forth, with
respect to the bill, H.R. 1110, the following estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 19, 2009.
Hon. John Conyers, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1110, the
Preventing Harassment through Outbound Number Enforcement
(PHONE) Act of 2009.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Mark
Grabowicz, who can be reached at 226-2860.
Sincerely,
Douglas W. Elmendorf,
Director.
Enclosure
cc:
Honorable Lamar S. Smith.
Ranking Member
H.R. 1110--Preventing Harassment through Outbound Number Enforcement
(PHONE) Act of 2009.
CBO estimates that implementing H.R. 1110 would have no
significant cost to the Federal Government. Enacting the bill
could affect direct spending and revenues, but any such effects
would not be significant.
H.R. 1110 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of State, local, or tribal
governments.
H.R. 1110 would establish a new federal crime for the
fraudulent use of caller-ID information. Because the bill would
establish a new offense, the government would be able to pursue
cases that it otherwise would not be able to prosecute. CBO
expects that H.R. 1110 would apply to a relatively small number
of offenders, however, so any increase in costs for law
enforcement, court proceedings, or prison operations would not
be significant. Any such costs would be subject to the
availability of appropriated funds.
Because those prosecuted and convicted under H.R. 1110
could be subject to criminal fines, the Federal Government
might collect additional amounts if the legislation is enacted.
Criminal fines are recorded as revenues, deposited in the Crime
Victims Fund, and later spent. CBO estimates that any
additional revenues and direct spending would not be
significant because of the small number of cases likely to be
affected.
Persons prosecuted and convicted under the bill also could
be subject to the seizure of certain assets by the Federal
Government. Proceeds from the sale of such assets would be
deposited into the Assets Forfeiture Fund and spent from that
fund, mostly in the same year. Thus, enacting H.R. 1110 could
increase both revenues deposited into the fund and direct
spending from the fund. However, CBO estimates that any
increase in revenues or spending would be negligible.
The CBO staff contact for this estimate is Mark Grabowicz.
The estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
The Committee states that pursuant to clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, H.R.
1110 will assist in combating caller ID spoofing, particularly
spoofing perpetrated for commercial gain.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in article I, section 8, clause 3 of the
Constitution.
Advisory on Earmarks
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 1110 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of Rule XXI.
Section-by-Section Analysis
Section. 1. Short Title. Section 1 sets forth the short
title of the bill as the ``Preventing Harassment through
Outbound Number Enforcement Act of 2009'' or the ``PHONE Act of
2009.''
Section 2. Caller ID Spoofing. Section 2 amends title 18,
United States Code, to prohibit using or providing, in
interstate or foreign commerce, false caller ID information
with an intent to wrongfully obtain anything of value. For
these cases, the prescribed punishment is a fine and/or
imprisonment for not more than 5 years. The section also
prohibits using or providing the caller ID information of ``an
actual person or other entity,'' without the person or entity's
consent, and with an intent to deceive ``the recipient or other
entity'' about the caller's identity. For these situations, the
punishment is a fine and/or imprisonment for not more than 1
year.
The legislation does not affect legally available blocking
of caller ID technology.
Subparagraph (c) of the section exempts from the purview of
the statute any lawful investigative, protective, or
intelligence activity of a Federal, State, or local law
enforcement agency or of a U.S. intelligence agency, or any
activity authorized for the protection of witnesses in criminal
proceedings.
Subparagraph (d) provides for criminal forfeiture.
Specifically, a court could order the convicted party to
forfeit the proceeds derived from the offense, along with
equipment used to facilitate the offense. This provision is
modeled on a similar provision in the CAN-SPAM Act of 2003, 18
U.S.C. Sec. 1037(c).
Subparagraph (e) sets forth definitions for various terms.
The definition of ``telephone call'' includes a call made or
received using any real-time voice communications service,
regardless of the technology or network used.
Section 3. Other Specified Unlawful Activities for Money
Laundering. Section 3 adds the new offence of caller ID
spoofing (18 U.S.C. 1041), as well as 18 U.S.C. Sec. 1037
(fraud and fraud related activity in connection with e-mail) to
the list of ``specified unlawful activities'' in 18 U.S.C.
Sec. 1956(c)(7)(D) (the money laundering statute). This makes
certain financial transactions involving the proceeds of
violations of sections 1037 and 1041 money laundering offenses
under 18 U.S.C. Sec. Sec. 1956 and 1957, and provides for the
civil forfeiture of such proceeds. See 18 U.S.C.
Sec. 981(a)(l)(C) (providing for the civil forfeiture of
proceeds of crimes designated as ``specified unlawful
activity''). Existing law provides that comparable crimes,
e.g., violations of 18 U.S.C. Sec. 1030 (computer fraud and
abuse) constitute specified unlawful activities under the money
laundering statute.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
TITLE 18, UNITED STATES CODE
* * * * * * *
PART I--CRIMES
* * * * * * *
CHAPTER 47--FRAUD AND FALSE STATEMENTS
Sec.
1001. Statements or entries generally.
* * * * * * *
1041. Caller ID spoofing.
* * * * * * *
Sec. 1041. Caller ID spoofing
(a) Offense.--Whoever, in or affecting interstate or
foreign commerce, knowingly uses or provides to another--
(1) false caller ID information with intent
wrongfully to obtain anything of value; or
(2) caller ID information pertaining to an actual
person or other entity without that person's or
entity's consent and with intent to deceive any person
or other entity about the identity of the caller;
or attempts or conspires to do so, shall be punished as
provided in subsection (b).
(b) Punishment.--Whoever violates subsection (a) shall--
(1) if the offense is a violation of subsection
(a)(1), be fined under this title or imprisoned not
more than 5 years, or both; and
(2) if the offense is a violation of subsection
(a)(2), be fined under this title or imprisoned not
more than one year, or both.
(c) Law Enforcement Exception.--This section does not
prohibit lawfully authorized investigative, protective, or
intelligence activity of a law enforcement agency of the United
States, a State, or a political subdivision of a State, or of
an intelligence agency of the United States, or any activity
authorized under chapter 224 of this title.
(d) Forfeiture.--
(1) In general.--The court, in imposing sentence on
a person who is convicted of an offense under this
section, shall order that the defendant forfeit to the
United States--
(A) any property, real or personal,
constituting or traceable to gross proceeds
obtained from such offense; and
(B) any equipment, software or other
technology used or intended to be used to
commit or to facilitate the commission of such
offense.
(2) Procedures.--The procedures set forth in
section 413 of the Controlled Substances Act (21 U.S.C.
853), other than subsection (d) of that section, and in
Rule 32.2 of the Federal Rules of Criminal Procedure,
shall apply to all stages of a criminal forfeiture
proceeding under this section.
(e) Definitions.--In this section--
(1) the term ``caller ID information'' means any
identifying information regarding the origination of a
telephone call, including the name or the telephone
number of the caller, that is transmitted with the
telephone call;
(2) the term ``telephone call'' means a call made
or received using any real time voice communications
service, regardless of the technology or network used;
and
(3) the term ``State'' includes a State of the
United States, the District of Columbia, and any
commonwealth, territory, or possession of the United
States.
* * * * * * *
CHAPTER 95--RACKETEERING
* * * * * * *
Sec. 1956. Laundering of monetary instruments
(a) * * *
* * * * * * *
(c) As used in this section--
(1) * * *
* * * * * * *
(7) the term ``specified unlawful activity''
means--
(A) * * *
* * * * * * *
(D) an offense under section 32 (relating
to the destruction of aircraft), section 37
(relating to violence at international
airports), section 115 (relating to
influencing, impeding, or retaliating against a
Federal official by threatening or injuring a
family member), section 152 (relating to
concealment of assets; false oaths and claims;
bribery), section 175c (relating to the variola
virus), section 215 (relating to commissions or
gifts for procuring loans), section 351
(relating to congressional or Cabinet officer
assassination), any of sections 500 through 503
(relating to certain counterfeiting offenses),
section 513 (relating to securities of States
and private entities), section 541 (relating to
goods falsely classified), section 542 relating
to entry of goods by means of false
statements), section 545 (relating to smuggling
goods into the United States), section 549
(relating to removing goods from Customs
custody), section 554 (relating to smuggling
goods from the United States), section 641
(relating to public money, property, or
records), section 656 (relating to theft,
embezzlement, or misapplication by bank officer
or employee), section 657 (relating to lending,
credit, and insurance institutions), section
658 (relating to property mortgaged or pledged
to farm credit agencies), section 666 (relating
to theft or bribery concerning programs
receiving Federal funds), section 793, 794, or
798 (relating to espionage), section 831
(relating to prohibited transactions involving
nuclear materials), section 844 (f) or (i)
(relating to destruction by explosives or fire
of Government property or property affecting
interstate or foreign commerce), section 875
(relating to interstate communications),
section 922(1) (relating to the unlawful
importation of firearms), section 924(n)
(relating to firearms trafficking), section 956
(relating to conspiracy to kill, kidnap, maim,
or injure certain property in a foreign
country), section 1005 (relating to fraudulent
bank entries), 1006(relating to fraudulent
Federal credit institution entries),
1007(relating to Federal Deposit Insurance
transactions), 1014(relating to fraudulent loan
or credit applications), section 1030 (relating
to computer fraud and abuse), 1032(relating to
concealment of assets from conservator,
receiver, or liquidating agent of financial
institution), section 1037 (relating to fraud
and related activity in connection with
electronic mail), section 1041 (relating to
caller ID spoofing), section 1111 (relating to
murder), section 1114 (relating to murder of
United States law enforcement officials),
section 1116 (relating to murder of foreign
officials, official guests, or internationally
protected persons), section 1201 (relating to
kidnaping), section 1203 (relating to hostage
taking), section 1361 (relating to willful
injury of Government property), section 1363
(relating to destruction of property within the
special maritime and territorial jurisdiction),
section 1708 (theft from the mail), section
1751 (relating to Presidential assassination),
section 2113 or 2114 (relating to bank and
postal robbery and theft), section 2252A
(relating to child pornography) where the child
pornography contains a visual depiction of an
actual minor engaging in sexually explicit
conduct, section 2260 (production of certain
child pornography for importation into the
United States), section 2280 (relating to
violence against maritime navigation), section
2281 (relating to violence against maritime
fixed platforms), section 2319 (relating to
copyright infringement), section 2320 (relating
to trafficking in counterfeit goods and
services), section 2332 (relating to terrorist
acts abroad against United States nationals),
section 2332a (relating to use of weapons of
mass destruction), section 2332b (relating to
international terrorist acts transcending
national boundaries), section 2332g (relating
to missile systems designed to destroy
aircraft), section 2332h (relating to
radiological dispersal devices), section 2339A
or 2339B (relating to providing material
support to terrorists), section 2339C (relating
to financing of terrorism), or section 2339D
(relating to receiving military-type training
from a foreign terrorist organization) of this
title, section 46502 of title 49, United States
Code, a felony violation of the Chemical
Diversion and Trafficking Act of 1988 (relating
to precursor and essential chemicals), section
590 of the Tariff Act of 1930 (19 U.S.C. 1590)
(relating to aviation smuggling), section 422
of the Controlled Substances Act (relating to
transportation of drug paraphernalia), section
38(c) (relating to criminal violations) of the
Arms Export Control Act, section 11 (relating
to violations) of the Export Administration Act
of 1979, section 206 (relating to penalties) of
the International Emergency Economic Powers
Act, section 16 (relating to offenses and
punishment) of the Trading with the Enemy Act,
any felony violation of section 15 of the Food
and Nutrition Act of 2008 (relating to
supplemental nutrition assistance program
benefits fraud) involving a quantity of
benefits having a value of not less than
$5,000, any violation of section 543(a)(1) of
the Housing Act of 1949 (relating to equity
skimming), any felony violation of the Foreign
Agents Registration Act of 1938, any felony
violation of the Foreign Corrupt Practices Act,
or section 92 of the Atomic Energy Act of 1954
(42 U.S.C. 2122) (relating to prohibitions
governing atomic weapons)
* * * * * * *