[Congressional Record Volume 146, Number 141 (Tuesday, October 31, 2000)]
[Senate]
[Pages S11427-S11432]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          INTERNET FALSE IDENTIFICATION PREVENTION ACT OF 2000

  Mr. GRASSLEY. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of Calendar No. 861, which is S. 2924.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2924) to strengthen enforcement of Federal 
     statutes relating to false identification, and for other 
     purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on the Judiciary, with an 
amendment, as follows:
  [Strike out all after the enacting clause and insert the part printed 
in italic.]

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet False 
     Identification Prevention Act of 2000''.

     SEC. 2. SPECIAL TASK FORCE ON FALSE IDENTIFICATION.

       (a) In General.--The Attorney General and the Secretary of 
     the Treasury shall establish a task force to investigate and 
     prosecute the creation and distribution of false 
     identification documents.
       (b) Membership.--The task force shall consist of the Secret 
     Service, the Federal Bureau of Investigation, the Department 
     of Justice, the Social Security Administration, and the 
     Immigration and Naturalization Service.
       (c) Term.--The task force shall terminate 2 years after the 
     effective date of this Act.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 3. FALSE IDENTIFICATION.

       Section 1028 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (6), by striking ``or'' after the 
     semicolon;
       (B) in paragraph (7), by inserting ``or'' after the 
     semicolon; and
       (C) by adding after paragraph (7) the following:
       ``(8) knowingly produces or transfers a document-making 
     implement that is designed for use in the production of a 
     false identification document.'';
       (2) in subsection (b)(2)(B), by striking ``or (7)'' and 
     inserting ``, (7), or (8)'';
       (3) in subsection (c)(3)(A), by inserting ``, including the 
     making available of a document by electronic means'' after 
     ``commerce''; and
       (4) in subsection (d)--
       (A) in paragraph (1), by inserting ``template, computer 
     file, computer disc,'' after ``impression,'';
       (B) by redesignating paragraphs (3) through (6) as 
     paragraphs (4) through (7), respectively;
       (C) by inserting after paragraph (2) the following:
       ``(3) the term `false identification document' means an 
     identification document of a type intended or commonly 
     accepted for the purposes of identification of individuals 
     that--
       ``(A) is not issued by or under the authority of a 
     governmental entity; and
       ``(B) appears to be issued by or under the authority of the 
     United States Government, a State, political subdivision of a 
     State, a foreign government, political subdivision of a 
     foreign government, an international governmental or an 
     international quasi-governmental organization;''; and
       (D) in paragraph (6), as redesignated (previously paragraph 
     (5)), by inserting ``, including making available for 
     acquisition or use by others'' after ``assemble''.

[[Page S11428]]

     SEC. 4. REPEAL.

       Section 1738 of title 18, United States Code, is repealed.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect 90 days after the date of enactment of this Act.


                           Amendment No. 4355

  Mr. GRASSLEY. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Iowa [Mr. Grassley], for Ms. Collins for 
     herself and Mrs. Feinstein, proposes an amendment numbered 
     4355.

  The amendment reads as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet False 
     Identification Prevention Act of 2000''.

     SEC. 2. COORDINATING COMMITTEE ON FALSE IDENTIFICATION.

       (a) In General.--The Attorney General and the Secretary of 
     the Treasury shall establish a coordinating committee to 
     ensure, through existing interagency task forces or other 
     means, that the creation and distribution of false 
     identification documents is vigorously investigated and 
     prosecuted.
       (b) Membership.--The coordinating committee shall consist 
     of the Secret Service, the Federal Bureau of Investigation, 
     the Department of Justice, the Social Security 
     Administration, and the Immigration and Naturalization 
     Service.
       (c) Term.--The coordinating committee shall terminate 2 
     years after the effective date of this Act.
       (d) Report.--
       (1) In general.--The Attorney General and the Secretary of 
     the Treasury, at the end of each year of the existence of the 
     committee, shall report to the Committees on the Judiciary of 
     the Senate and House of Representatives on the activities of 
     the committee.
       (2) Contents.--The report referred in paragraph (1) shall 
     include--
       (A) the total number of indictments and informations, 
     guilty pleas, convictions, and acquittals resulting from the 
     investigation and prosecution of the creation and 
     distribution of false identification documents during the 
     preceding year;
       (B) identification of the Federal judicial districts in 
     which the indictments and informations were filed, and in 
     which the subsequent guilty pleas, convictions, and 
     acquittals occurred;
       (C) specification of the Federal statutes utilized for 
     prosecution;
       (D) a brief factual description of significant 
     investigations and prosecutions; and
       (E) specification of the sentence imposed as a result of 
     each guilty plea and conviction.

     SEC. 3. FALSE IDENTIFICATION.

       Section 1028 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (6), by striking ``or'' after the 
     semicolon;
       (B) by redesignating paragraph (7) as paragraph (8); and
       (C) by inserting after paragraph (6) the following:
       ``(7) knowingly produces or transfers a document-making 
     implement that is designed for use in the production of a 
     false identification document; or'';
       (2) in subsection (b)(1)(D), by striking ``(7)'' and 
     inserting ``(8)'';
       (3) in subsection (b)(2)(B), by striking ``or (7)'' and 
     inserting ``, (7), or (8)'';
       (4) in subsection (c)(3)(A), by inserting ``, including the 
     making available of a document by electronic means'' after 
     ``commerce'';
       (5) in subsection (d)--
       (A) in paragraph (1), by inserting ``template, computer 
     file, computer disc,'' after ``impression,'';
       (B) by redesignating paragraph (6) as paragraph (8);
       (C) by redesignating paragraphs (3) through (5) as 
     paragraphs (4) through (6), respectively;
       (D) by inserting after paragraph (2) the following:
       ``(3) the term `false identification document' means an 
     identification document of a type intended or commonly 
     accepted for the purposes of identification of individuals 
     that--
       ``(A) is not issued by or under the authority of a 
     governmental entity; and
       ``(B) appears to be issued by or under the authority of the 
     United States Government, a State, political subdivision of a 
     State, a foreign government, political subdivision of a 
     foreign government, an international governmental or an 
     international quasi-governmental organization;''; and
       (E) by inserting after paragraph (6), as redesignated 
     (previously paragraph (5)), the following:
       ``(7) the term `transfer' includes making available for 
     acquisition or use by others; and''; and
       (6) by adding at the end the following:
       ``(i) Exception.--
       ``(1) In general.--Subsection (a)(7) shall not apply to an 
     interactive computer service used by another person to 
     produce or transfer a document making implement in violation 
     of that subsection except--
       ``(A) to the extent that such service conspires with such 
     other person to violate subsection (a)(7);
       ``(B) if, with respect to the particular activity at issue, 
     such service has knowingly permitted its computer server or 
     system to be used to engage in, or otherwise aided and 
     abetted, activity that is prohibited by subsection (a)(7), 
     with specific intent of an officer, director, partner, or 
     controlling shareholder of such service that such server or 
     system be used for such purpose; or
       ``(C) if the material or activity available through such 
     service consists primarily of material or activity that is 
     prohibited by subsection (a)(7).
       ``(2) Definition.--In this subsection, the term 
     `interactive computer service' means an interactive computer 
     service as that term is defined in section 230(f) of the 
     Communications Act of 1934 (47 U.S.C. 230(f)), including a 
     service, system, or access software provider that--
       ``(A) provides an information location tool to refer or 
     link users to an online location, including a directory, 
     index, or hypertext link; or
       ``(B) is engaged in the transmission, storage, retrieval, 
     hosting, formatting, or translation of a communication made 
     by another person without selection or alteration of the 
     content of the communication, other than that done in good 
     faith to prevent or avoid a violation of the law.''.

     SEC. 4. REPEAL.

       Section 1738 of title 18, United States Code, is repealed.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect 90 days after the date of enactment of this Act.

  Ms. COLLINS. Mr. President, I am pleased that the Senate is now 
considering legislation I introduced to stem the proliferation of 
websites that distribute counterfeit identification documents and 
credentials over the Internet. I appreciate the timely action on this 
legislation by the chairman of the Judiciary Committee, Senator Hatch, 
as well as the support and assistance of Senators Kyl, Leahy, and 
Feinstein. The substitute amendment proposed by Senator Feinstein and 
me improves the bill while retaining all of its key features.
  After this measure becomes law, Internet commerce in computer discs, 
files, and templates designed for use in the production of false 
identification documents will be illegal. The bill will also outlaw the 
practice of producing false identification containing easily removable 
disclaimers, a method currently used to avoid prosecution. Finally, the 
legislation will establish a coordinating committee to concentrate 
resources of several federal agencies on investigating and prosecuting 
the creation of false identification. I authored this legislation after 
the Permanent Subcommittee on Investigations, which I chair, held 
hearings on a disturbing new trend--the use of the Internet to 
manufacture and market counterfeit identification documents and 
credentials. Our hearing and investigation revealed the widespread 
availability on the Internet of a variety of fake identification 
documents and computer templates that allow individuals to manufacture 
authentic-looking IDs in the seclusion of their own homes. The Internet 
False Identification Prevention Act of 2000 will strengthen current law 
to prevent the distribution of false identification documents over the 
Internet and make it easier to prosecute this criminal activity.
  Mr. President, the high quality of the counterfeit identification 
documents that can be obtained through the Internet is astounding. With 
little difficulty, my staff was able to use Internet materials to 
manufacture convincing IDs that would allow me to pass as a member of 
our Armed Forces, a reporter, a student at Boston University, or a 
licensed driver in Florida, Michigan, or Wyoming, to name just a few of 
the identities I could assume. For instance, using the Internet my 
staff created a counterfeit Connecticut driver's license that is 
virtually identical to an authentic license issued by the Connecticut 
Department of Motor Vehicles. Just like the real Connecticut license, 
this fake with my picture includes a signature written over the picture 
and an adjacent ``shadow picture'' of the license holder. The State of 
Connecticut added both of these sophisticated security features to the 
license in order to reduce counterfeiting. Unfortunately, some websites 
offer to sell fake IDs complete with State seals, holograms, and bar 
codes to replicate a license virtually indistinguishable from the real 
thing. Thus, technology now allows website operators to copy authentic 
identification documents with an extraordinary level

[[Page S11429]]

of sophistication and then mass produce those fraudulent documents for 
their customers. The websites investigated by the subcommittee offer a 
vast and varied product line, ranging from driver's licenses to 
military identification cards to federal agency credentials, including 
those of the Federal Bureau of Investigation (FBI) and the Central 
Intelligence Agency (CIA). Other sites offer to produce Social Security 
cards, birth certificates, diplomas, and press credentials.
  Testimony before the subcommittee demonstrated that the availability 
of false identification documents from the Internet is a growing 
problem. Special Agent David Myers, Identification Fraud Coordinator of 
the State of Florida's Division of Alcoholic Beverages and Tobacco, 
testified that 2 years ago only 1 percent of false identification 
documents came from the Internet. Last year, he testified, a little 
less than 5 percent came from the Internet. Now he estimates that about 
30 percent of the false identification documents he seizes comes from 
the Internet. He predicts that by next year his unit will find at least 
60 to 70 percent of the false identification documents they seize will 
come from the Internet. The General Accounting Office (GAO) and the FBI 
have both confirmed the findings of the subcommittee's investigation. 
Earlier this year the GAO used counterfeit credentials and badges, 
readily available for purchase on the Internet, to breach the security 
at 19 federal buildings and two commercial airports. GAO's findings 
demonstrate that, in addition to the poor security measures at federal 
facilities, the Internet and computer technology allow nearly anyone to 
create convincing identification cards and credentials. The FBI has 
also focused on the potential for misuse of official identification, 
and recently executed search warrants at the homes of several 
individuals who had been selling federal law enforcement badges over 
the Internet.

  In response to these findings, the House has passed legislation that 
will complement the provisions in the bill we currently have under 
consideration. H.R. 4827, the Enhanced Federal Security Act of 2000, 
was introduced by Congressman Steve Horn, and would make it a crime to 
enter federal property under false pretenses or for an unauthorized 
individual to traffic in genuine or counterfeit police badges. The 
House bill, supported by Congressman McCollum, chairman of the House 
Judiciary Subcommittee on Crime, provides an additional measure to curb 
the use of false identification, and I hope that the Senate will 
approve it along with S. 2924.
  Mr. President, the Internet is a revolutionary tool of commerce and 
communication that benefits us all. But many of the Internet's greatest 
attributes also further its use for criminal purposes. While the 
manufacture of false identification documents by criminals is nothing 
new, the Internet allows those specializing in the sale of counterfeit 
identification to reach a broader market of potential buyers than they 
ever could by standing on a street corner in a shady part of town. They 
can sell their products with virtual anonymity through the use of e-
mail services and free Web hosting services, and by providing false 
information when registering their domain names. Similarly, the 
Internet allows criminals to obtain fake IDs in the privacy of their 
own homes, substantially diminishing the risk of apprehension that 
attends purchasing counterfeit documents on the street. Because this is 
a relatively new phenomenon, there are no good data on the size of the 
false identification industry or the growth it has experienced as a 
result of the Internet. The subcommittee's investigation, however, 
found that some Web site operators apparently have made hundreds of 
thousands of dollars through the sale of phony identification 
documents. One website operator that we investigated told a state law 
enforcement official that he sold approximately 1,000 fake IDs every 
month and generated about $600,000 in annual sales.
  Identity theft is a growing problem that these Internet sites 
encourage. Recent testimony by the Federal Trade Commission noted that 
the number of calls to their ID theft hotline had doubled between March 
and July of this year, that the agency was receiving between 800 and 
850 calls a week, and that their phone counselors had handled more than 
20,000 calls in an 8-month period earlier this year. Fake IDs, however, 
facilitate a broader array of criminal conduct. The subcommittee's 
investigation found that some Internet sites were used to obtain 
counterfeit identification documents for the purpose of committing 
other crimes, ranging from very serious offenses such as bank fraud to 
the more common problem of underage teenagers buying alcohol or gaining 
access to bars. The legislation under consideration today is designed 
to address the problem of counterfeit identification documents in 
several ways. The central features of the bill are provisions that 
modernize existing law to address the widespread availability of false 
identification documents on the Internet.
  First, the legislation strengthens federal law against false 
identification to ensure that it is suited to the Internet age and the 
technology associated with it. The primary law prohibiting the use and 
distribution of false identification documents was enacted in 1982. 
Advances in computer technology and the use of the Internet may have 
rendered the law inadequate to encompass the technology of the present 
day. This bill will clarify that current law prohibits the sale or 
distribution of false identification documents through computer files 
and templates, which our investigation found are the vehicles of choice 
for manufacturing fake IDs in the Internet age.

  Second, the legislation will make it easier to prosecute those 
criminals who manufacturer, distribute or sell counterfeit 
identification documents by ending the practice of using easily 
removable disclaimers as part of an attempt to shield the illegal 
conduct from prosecution through a bogus claim of ``novelty.'' No 
longer will it be acceptable to provide computer templates of 
government-issued identification containing an easily removable layer 
saying it is not a government document.
  For instance, the subcommittee staff purchased a fake Oklahoma 
driver's license as part of an undercover operation conducted during 
our investigation. The fake license appears to bear the disclaimer, 
``Not a Government Document,'' which is required by federal law. We 
found, however, that with one simple snip of the scissors, the fake ID 
could be removed from his laminated pouch, effectively discarding the 
disclaimer. It will no longer be acceptable under my bill to sell a 
false identification document in this fashion.
  Finally, my legislation seeks to encourage more aggressive 
enforcement by dedicating investigative and prosecutorial resources to 
this emerging problem. The bill establishes a multi-agency coordinating 
committee that will concentrate the investigative and prosecutorial 
resources of several agencies with responsibility for enforcing laws 
that criminalize the manufacture, sale, and distribution of counterfeit 
identification documents. While the new provisions are intended to 
cover any individual or entity using a computer disc, file, template, 
or the Internet to produce, transfer or make available false 
identification documents or document-making implements, the substitute 
bill makes clear that the new offense does not cover companies 
providing interactive computer services, such as Internet service 
providers, communications facilities, or electronic mail services, who 
are innocent conduits of false identification documents. Just as the 
counterfeiting laws do not cover an unknowing provider of a device or 
service used to manufacture or transmit counterfeit money, the 
provisions in this legislation are not meant to apply to unknowing 
parties whose devices or services are used in the production or 
transfer of false identification documents. This exception is 
inapplicable, however, and ordinary common law doctrines of criminal 
lability will apply in cases of conspiracy between the interactive 
computer service and the user; knowledge of and specific intent of an 
officer, director, partner or controlling shareholder that the server 
or system be used for this criminal purposes; or when the material 
available through a service consists primarily of material that is 
covered by the new offense in this legislation.
  This bill is one in a line of bills that have been considered by 
Congress in recent years that address the issue of

[[Page S11430]]

service provider liability relevant to the unlawful conduct of third 
parties. These have ranged from bills dealing with the liability of 
service providers in cases of defamation suits, to copyright 
infringement actions, to criminal prosecutions for online drug 
trafficking, Internet gambling, and in this case, online distribution 
of false identification document-making implements. Through these 
bills, Congress has had to consider the complexities of the particular 
area of law at hand, the application of common law doctrines, such as 
respondant superior and theories of contributory and vicarious 
liability, and the nature of liability with respect to specific 
violations in both civil and criminal contexts. In short, I believe 
that my bill, while addressing a number of these issues, does not 
necessarily set a standard for Congress to follow when considering the 
issue of service provider liability in future bills, in future 
contexts.
  Mr. President, our investigation established that federal law 
enforcement officials have failed to devote the necessary resources and 
attention to this serious problem. By striking at the purveyors of 
false identification materials, I believe we can reduce the end-use 
crime that often depends upon the availability of counterfeit 
identification. For instance, the convicted felon who testified at the 
subcommittee's hearing said that he would not have been able to commit 
bank fraud had he not been able to easily and quickly obtain high 
quality, fraudulent identification documents over the Internet. I am 
confident that, if federal law enforcement officials prosecute the most 
blatant violators of the law, the false ID industry on the Internet 
will wither in short order. By strengthening the law and by focusing 
our prosecution efforts, I believe that we can curb the widespread 
availability of false identification documents that the Internet 
encourages. The Director of the United States Secret Services testified 
at our hearing that the use of fraudulent identification documents and 
credentials almost always accompanies the serious financial crimes that 
they investigate. Thus, I believe that a stronger law against making 
false identification documents will deter criminal activity in other 
areas as well. I urge my colleagues to support S. 2924.
  I ask unanimous consent to have print in the Record a brief section-
by-section summary of the substitute for S. 2924.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

Internet False Identification Prevention Act of 2000 (Collins/Feinstein 
                Substitute)--Section-By-Section Summary

       Section 1 names the bill as the Internet False 
     Identification Prevention Act of 2000.
       Section 2 establishes a coordinating committee to ensure 
     the vigorous investigation and prosecution of the creation 
     and distribution of false identification documents. The 
     coordinating committee, appointed by the Attorney General and 
     the Secretary of the Treasury, shall consist of the Secret 
     Service, the Federal Bureau of Investigation, the Department 
     of Justice, the Social Security Administration, and the 
     Immigration and Naturalization Service, and shall exist for 
     two years. The coordinating committee will focus 
     investigative and prosecutorial resources of the federal 
     agencies concerned with false identification in order to curb 
     this growing problem, and will report the results of agency 
     actions each year.
       Section 3 will amend 18 U.S.C. Sec. 1028 to modernize the 
     primary federal law pertaining to false identification 
     documents. The bill modifies the existing definition of 
     ``document-making implement'' to include computer templates 
     and files that are now frequently used to create counterfeit 
     identification documents from the Internet.
       A new provision will make it illegal to ``knowingly produce 
     or transfer a document making implement that is designed for 
     use in the production of a false identification document.'' 
     This provision will close a loophole which currently allows a 
     person to transfer, through a Web site or e-mail, false 
     identification templates that can easily be made into actual 
     finished documents. Current law will also be amended to 
     cover, in addition to documents used in interstate or foreign 
     commerce, any document made available by ``electronic 
     means.'' This will ensure that a false identification 
     document offered for download on a Web site is captured by 
     the statute. Innocent third parties, such as Internet service 
     providers or transmission companies, are excluded from 
     coverage under the legislation.
       Finally, this section will provide for the first time a 
     definition of ``false identification document.'' A ``false 
     identification document'' will be defined as a document that 
     is intended or commonly accepted for the purpose of 
     identification which is not issued by or under the authority 
     of a government, but which appears to be issued by or under 
     the authority of any government entity. This provision, in 
     conjunction with the removal of the disclaimer provision 
     below, will make it clear that it is illegal for anyone but a 
     government entity to produce any document that is commonly 
     accepted for legal identification.
       Section 4 will repeal 18 U.S.C. Sec. 1738, thus ending the 
     ability to use a disclaimer and legally produce 
     identification documents that include the age or birth date 
     of an individual. Repealing Section 1738 will prohibit the 
     practice, which was frequently encountered during the 
     Subcommittee's investigation, of attempting to avoid criminal 
     liability for manufacturing and selling counterfeit 
     identification products by displaying a ``NOT A GOVERNMENT 
     DOCUMENT'' disclaimer. This type of disclaimer can be 
     fashioned so as to be easily removable on both computer 
     templates and counterfeit identification documents. It will 
     now be illegal to produce or sell any document that resembles 
     a government identification document.
       Section 5 will make the provisions effective 90 days after 
     enactment.

  Mr. LEAHY. Mr. President, the Internet False Identification 
Prevention Act, S. 2924, is intended to provide additional tools to law 
enforcement to combat the theft of, and fraud associated with, 
identification documents and credentials. I share the concerns of the 
sponsors of this legislation over this matter. In fact, in the last 
Congress, I sponsored, along with Senators Kyl, Hatch, Feinstein and 
others, legislation to prohibit fraud in connection with identification 
information, not just physical documents. We recognized that criminals 
do not necessarily need a physical identification document to create a 
new identity; they just need the information itself to facilitate the 
creation of false identification documents.
  I note that improvements to the bill as originally introduced were 
made during consideration of the legislation by the Senate Judiciary 
Committee. Specifically, as originally introduced this bill would have 
made it a crime to possess with intent to use or transfer any false 
identification document, rather than ``five or more'' as required under 
current law. See 18 U.S.C. 1028(a)(3). I raised concern that the scope 
of this proposed offense would have resulted in the federalization of 
the status offenses of an underage teenager using a single fake ID 
card. The substitute bill reported by the Judiciary Committee 
eliminated this change in current law.
  The substitute amendment that the Senate considers today would 
require the Attorney General and the Secretary of the Treasury to 
coordinate through a ``coordinating committee'' the investigation and 
prosecution of offenses related to false identification documents, and 
report to the Judiciary Committees of the House and the Senate on the 
number and results of prosecutions. In addition, the substitute 
amendment amends 18 U.S.C. 1028 in a number of ways, including by 
creating a new criminal prohibition on the knowing production or 
transfer of a document-making implement designed for use in the 
production of false identification documents. A new definition is 
provided for the term ``transfer'' to include ``making available for 
acquisition or use by others.'' To address the concerns of internet 
service providers that the combination of the new crime and the new 
definitions would expose them to criminal liability, the bill also 
includes an exemption from the new crime for an interactive computer 
service.
  In addition, the bill repeals 18 U.S.C. 1738, which allows businesses 
that sell identification documents bearing the birth date or age of the 
person being identified to avoid criminal liability by printing clearly 
and indelibly on both the front and the back ``Not a Government 
Document.''
  While I do not object to moving this bill at this time, I must note 
two lingering concerns that we have to revisit. First, I appreciate 
that the sponsors wish to repeal 18 U.S.C. 1738 to stop the practice of 
selling counterfeit identification products with disclaimers that are 
intentionally fashioned to be easily removable on both computer 
templates and counterfeit identification documents but that 
nevertheless avoid criminal liability by displaying the disclaimer. 
This is a practice that deserves congressional attention, but I am 
concerned that repeal of this section may go too far, since it may 
remove legal protection for some legitimate businesses that

[[Page S11431]]

sell identification documents for legitimate reasons, such as for 
security or private guard services.

  The legislative history of section 1738 makes clear that this 
provision was considered necessary when passed because private 
identification documents ``are used by many persons who have no 
official record of their date of birth and are unable to obtain 
official identification cards for that reason. The conferees determined 
that to simply require privately issued identification cards to carry a 
prominent disclaimer that they are not government documents would 
adequately protect the public interest.'' Conference Report on False 
Identification Crime Control Act of 1982 (H.R. 6946), 97th Cong., 2d 
Sess., Rpt. 97-975, at p. 4 (December 17, 1982). It remains unclear to 
me how many legitimate uses and businesses will be affected by repeal 
of this section, and the manner in which this repeal is being enacted 
makes it impossible to know in advance.
  Second, the substitute amendment contains an exemption for 
interactive computer services that was added after consideration by the 
Judiciary Committee. Representatives of internet service providers 
expressed concern that the breadth of the intent standard in the bill, 
which provides that a defendant need only knowingly transfer or make 
available by electronic means an illegal document-making implement, 
such as computer template, to risk criminal liability. They contend 
that this scienter requirement could put at risk ISPs that simply offer 
a third party the ability to communicate or locate material that is 
otherwise illegal, even though the ISP does not know that the document-
making implement can be or will be used to make false identification 
documents and does not intend to be facilitating an illegal 
transaction.
  The ISPs may have correctly pointed out a problem in the scope of the 
criminal liability but the cure should not be to grant a blanket 
exemption for service providers. There is no comparable exemption 
anywhere else in the federal criminal code. A better cure would have 
been to clarify the scope of the criminal prohibition and to define 
more precisely the scienter requirement for criminal liability. Instead 
of making the new crime applicable to anyone who ``knowingly produces 
or transfers a document-making implement that is designed for use in 
the production of a false identification document,'' the bill could 
have been more precisely drawn to cover only a person who ``knowingly 
produces or transfers a document-making implement with the intent that 
it be used in the production of a false identification document.'' This 
would have avoided the necessity of carving out exemptions for innocent 
ISPs that merely facilitate the transfer of illegal document-making 
implements, without knowing the nature of the what is being 
transferred.
  Moreover, including an immunity provision in this bill for ISPs 
raises a question about their criminal liability exposure under many 
other criminal statutes that make illegal the knowing transfer of 
illegal materials without requiring specific knowledge on the part of 
the transferor that the material is illegal. For example, federal law 
prohibits the knowing distribution, including by computer, of any 
material that contains child pornography. 18 U.S.C. 2251A(a)(2)(B). 
There is no blanket immunity for ISPs for facilitating the distribution 
of such illegal material. Will inclusion of a blanket immunity 
provision in this bill encourage courts to construe broadly the 
prohibitions in other statutes to cover innocent ISPs? This is a matter 
that could benefit from additional scrutiny.
  Mr. GRASSLEY. Mr. President, I ask unanimous consent that the 
amendment be agreed to, the committee substitute amendment be agreed 
to, the bill be read the third time and passed, the motion to 
reconsider be laid upon the table, and that any statements relating to 
the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 4355) was agreed to.
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 2924), as amended, was passed, as follows:

                                S. 2924

       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 ``Internet False 
     Identification Prevention Act of 2000''.

     SEC. 2. COORDINATING COMMITTEE ON FALSE IDENTIFICATION.

       (a) In General.--The Attorney General and the Secretary of 
     the Treasury shall establish a coordinating committee to 
     ensure, through existing interagency task forces or other 
     means, that the creation and distribution of false 
     identification documents is vigorously investigated and 
     prosecuted.
       (b) Membership.--The coordinating committee shall consist 
     of the Secret Service, the Federal Bureau of Investigation, 
     the Department of Justice, the Social Security 
     Administration, and the Immigration and Naturalization 
     Service.
       (c) Term.--The coordinating committee shall terminate 2 
     years after the effective date of this Act.
       (d) Report.--
       (1) In general.--The Attorney General and the Secretary of 
     the Treasury, at the end of each year of the existence of the 
     committee, shall report to the Committees on the Judiciary of 
     the Senate and House of Representatives on the activities of 
     the committee.
       (2) Contents.--The report referred in paragraph (1) shall 
     include--
       (A) the total number of indictments and informations, 
     guilty pleas, convictions, and acquittals resulting from the 
     investigation and prosecution of the creation and 
     distribution of false identification documents during the 
     preceding year;
       (B) identification of the Federal judicial districts in 
     which the indictments and informations were filed, and in 
     which the subsequent guilty pleas, convictions, and 
     acquittals occurred;
       (C) specification of the Federal statutes utilized for 
     prosecution;
       (D) a brief factual description of significant 
     investigations and prosecutions; and
       (E) specification of the sentence imposed as a result of 
     each guilty plea and conviction.

     SEC. 3. FALSE IDENTIFICATION.

       Section 1028 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (6), by striking ``or'' after the 
     semicolon;
       (B) by redesignating paragraph (7) as paragraph (8); and
       (C) by inserting after paragraph (6) the following:
       ``(7) knowingly produces or transfers a document-making 
     implement that is designed for use in the production of a 
     false identification document; or'';
       (2) in subsection (b)(1)(D), by striking ``(7)'' and 
     inserting ``(8)'';
       (3) in subsection (b)(2)(B), by striking ``or (7)'' and 
     inserting ``, (7), or (8)'';
       (4) in subsection (c)(3)(A), by inserting ``, including the 
     making available of a document by electronic means'' after 
     ``commerce'';
       (5) in subsection (d)--
       (A) in paragraph (1), by inserting ``template, computer 
     file, computer disc,'' after ``impression,'';
       (B) by redesignating paragraph (6) as paragraph (8);
       (C) by redesignating paragraphs (3) through (5) as 
     paragraphs (4) through (6), respectively;
       (D) by inserting after paragraph (2) the following:
       ``(3) the term `false identification document' means an 
     identification document of a type intended or commonly 
     accepted for the purposes of identification of individuals 
     that--
       ``(A) is not issued by or under the authority of a 
     governmental entity; and
       ``(B) appears to be issued by or under the authority of the 
     United States Government, a State, political subdivision of a 
     State, a foreign government, political subdivision of a 
     foreign government, an international governmental or an 
     international quasi-governmental organization;''; and
       (E) by inserting after paragraph (6), as redesignated 
     (previously paragraph (5)), the following:
       ``(7) the term `transfer' includes making available for 
     acquisition or use by others; and''; and
       (6) by adding at the end the following:
       ``(i) Exception.--
       ``(1) In general.--Subsection (a)(7) shall not apply to an 
     interactive computer service used by another person to 
     produce or transfer a document making implement in violation 
     of that subsection except--
       ``(A) to the extent that such service conspires with such 
     other person to violate subsection (a)(7);
       ``(B) if, with respect to the particular activity at issue, 
     such service has knowingly permitted its computer server or 
     system to be used to engage in, or otherwise aided and 
     abetted, activity that is prohibited by subsection (a)(7), 
     with specific intent of an officer, director, partner, or 
     controlling shareholder of such service that such server or 
     system be used for such purpose; or
       ``(C) if the material or activity available through such 
     service consists primarily of material or activity that is 
     prohibited by subsection (a)(7).
       ``(2) Definition.--In this subsection, the term 
     `interactive computer service' means an interactive computer 
     service as that term is defined in section 230(f) of the 
     Communications Act of 1934 (47 U.S.C. 230(f)), including

[[Page S11432]]

     a service, system, or access software provider that--
       ``(A) provides an information location tool to refer or 
     link users to an online location, including a directory, 
     index, or hypertext link; or
       ``(B) is engaged in the transmission, storage, retrieval, 
     hosting, formatting, or translation of a communication made 
     by another person without selection or alteration of the 
     content of the communication, other than that done in good 
     faith to prevent or avoid a violation of the law.''.

     SEC. 4. REPEAL.

       Section 1738 of title 18, United States Code, is repealed.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect 90 days after the date of enactment of this Act.

                          ____________________