[Congressional Record Volume 149, Number 150 (Thursday, October 23, 2003)]
[Senate]
[Pages S13176-S13182]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          CAN-SPAM ACT OF 2003

  On Wednesday, October 22, 2003, the Senate passed S. 877, as follows:

                                 S. 877

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

   TITLE I--CONTROLLING THE ASSAULT OF NON-SOLICITED PORNOGRAPHY AND 
                         MARKETING ACT OF 2003

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Controlling the Assault of 
     Non-Solicited Pornography and Marketing Act of 2003'', or the 
     ``CAN-SPAM Act of 2003''.

     SEC. 102. CONGRESSIONAL FINDINGS AND POLICY.

       (a) Findings.--The Congress finds the following:
       (1) Electronic mail has become an extremely important and 
     popular means of communication, relied on by millions of 
     Americans on a daily basis for personal and commercial 
     purposes. Its low cost and global reach make it extremely 
     convenient and efficient, and offer unique opportunities for 
     the development and growth of frictionless commerce.
       (2) The convenience and efficiency of electronic mail are 
     threatened by the extremely rapid growth in the volume of 
     unsolicited commercial electronic mail. Unsolicited 
     commercial electronic mail is currently estimated to account 
     for over 45 percent of all electronic mail traffic, up from 
     an estimated 7 percent in 2001, and the volume continues to 
     rise. Most of these unsolicited commercial electronic mail 
     messages are fraudulent or deceptive in one or more respects.
       (3) The receipt of unsolicited commercial electronic mail 
     may result in costs to recipients who cannot refuse to accept 
     such mail and who incur costs for the storage of such mail, 
     or for the time spent accessing, reviewing, and discarding 
     such mail, or for both.
       (4) The receipt of a large number of unsolicited messages 
     also decreases the convenience of electronic mail and creates 
     a risk

[[Page S13177]]

     that wanted electronic mail messages, both commercial and 
     noncommercial, will be lost, overlooked, or discarded amidst 
     the larger volume of unwanted messages, thus reducing the 
     reliability and usefulness of electronic mail to the 
     recipient.
       (5) Some unsolicited commercial electronic mail contains 
     material that many recipients may consider vulgar or 
     pornographic in nature.
       (6) The growth in unsolicited commercial electronic mail 
     imposes significant monetary costs on providers of Internet 
     access services, businesses, and educational and nonprofit 
     institutions that carry and receive such mail, as there is a 
     finite volume of mail that such providers, businesses, and 
     institutions can handle without further investment in 
     infrastructure.
       (7) Many senders of unsolicited commercial electronic mail 
     purposefully disguise the source of such mail.
       (8) Many senders of unsolicited commercial electronic mail 
     purposefully include misleading information in the message's 
     subject lines in order to induce the recipients to view the 
     messages.
       (9) While some senders of unsolicited commercial electronic 
     mail messages provide simple and reliable ways for recipients 
     to reject (or ``opt-out'' of) receipt of unsolicited 
     commercial electronic mail from such senders in the future, 
     other senders provide no such ``opt-out'' mechanism, or 
     refuse to honor the requests of recipients not to receive 
     electronic mail from such senders in the future, or both.
       (10) Many senders of bulk unsolicited commercial electronic 
     mail use computer programs to gather large numbers of 
     electronic mail addresses on an automated basis from Internet 
     websites or online services where users must post their 
     addresses in order to make full use of the website or 
     service.
       (11) Many States have enacted legislation intended to 
     regulate or reduce unsolicited commercial electronic mail, 
     but these statutes impose different standards and 
     requirements. As a result, they do not appear to have been 
     successful in addressing the problems associated with 
     unsolicited commercial electronic mail, in part because, 
     since an electronic mail address does not specify a 
     geographic location, it can be extremely difficult for law-
     abiding businesses to know with which of these disparate 
     statutes they are required to comply.
       (12) The problems associated with the rapid growth and 
     abuse of unsolicited commercial electronic mail cannot be 
     solved by Federal legislation alone. The development and 
     adoption of technological approaches and the pursuit of 
     cooperative efforts with other countries will be necessary as 
     well.
       (b) Congressional Determination of Public Policy.--On the 
     basis of the findings in subsection (a), the Congress 
     determines that--
       (1) there is a substantial government interest in 
     regulation of unsolicited commercial electronic mail on a 
     nationwide basis;
       (2) senders of unsolicited commercial electronic mail 
     should not mislead recipients as to the source or content of 
     such mail; and
       (3) recipients of unsolicited commercial electronic mail 
     have a right to decline to receive additional unsolicited 
     commercial electronic mail from the same source.

     SEC. 103. DEFINITIONS.

       In this title:
       (1) Affirmative consent.--The term ``affirmative consent'', 
     when used with respect to a commercial electronic mail 
     message, means that--
       (A) the recipient expressly consented to receive the 
     message, either in response to a clear and conspicuous 
     request for such consent or at the recipient's own 
     initiative; and
       (B) if the message is from a party other than the party to 
     which the recipient communicated such consent, the recipient 
     was given clear and conspicuous notice at the time the 
     consent was communicated that the recipient's electronic mail 
     address could be transferred to such other party for the 
     purpose of initiating commercial electronic mail messages.
       (2) Commercial electronic mail message.--
       (A) In general.--The term ``commercial electronic mail 
     message'' means any electronic mail message the primary 
     purpose of which is the commercial advertisement or promotion 
     of a commercial product or service (including content on an 
     Internet website operated for a commercial purpose).
       (B) Reference to company or website.--The inclusion of a 
     reference to a commercial entity or a link to the website of 
     a commercial entity in an electronic mail message does not, 
     by itself, cause such message to be treated as a commercial 
     electronic mail message for purposes of this title if the 
     contents or circumstances of the message indicate a primary 
     purpose other than commercial advertisement or promotion of a 
     commercial product or service.
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Domain name.--The term ``domain name'' means any 
     alphanumeric designation which is registered with or assigned 
     by any domain name registrar, domain name registry, or other 
     domain name registration authority as part of an electronic 
     address on the Internet.
       (5) Electronic mail address.--The term ``electronic mail 
     address'' means a destination, commonly expressed as a string 
     of characters, consisting of a unique user name or mailbox 
     (commonly referred to as the ``local part'') and a reference 
     to an Internet domain (commonly referred to as the ``domain 
     part''), whether or not displayed, to which an electronic 
     mail message can be sent or delivered.
       (6) Electronic mail message.--The term ``electronic mail 
     message'' means a message sent to a unique electronic mail 
     address.
       (7) FTC act.--The term ``FTC Act'' means the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (8) Header information.--The term ``header information'' 
     means the source, destination, and routing information 
     attached to an electronic mail message, including the 
     originating domain name and originating electronic mail 
     address, and any other information that appears in the line 
     identifying, or purporting to identify, a person initiating 
     the message.
       (9) Implied consent.--
       (A) In general.--The term ``implied consent'', when used 
     with respect to a commercial electronic mail message, means 
     that--
       (i) within the 3-year period ending upon receipt of such 
     message, there has been a business transaction between the 
     sender and the recipient (including a transaction involving 
     the provision, free of charge, of information, goods, or 
     services requested by the recipient); and
       (ii) the recipient was, at the time of such transaction or 
     thereafter in the first electronic mail message received from 
     the sender after the effective date of this title, provided a 
     clear and conspicuous notice of an opportunity not to receive 
     unsolicited commercial electronic mail messages from the 
     sender and has not exercised such opportunity.
       (B) Mere visitation.--A visit by a recipient to a publicly 
     available website shall not be treated as a transaction for 
     purposes of subparagraph (A)(i) if the recipient did not 
     knowingly submit the recipient's electronic mail address to 
     the operator of the website.
       (C) Separate lines of business or divisions.--If a sender 
     operates through separate lines of business or divisions and 
     holds itself out to the recipient, both at the time of the 
     transaction described in subparagraph (A)(i) and at the time 
     the notice under subparagraph (A)(ii) was provided to the 
     recipient, as that particular line of business or division 
     rather than as the entity of which such line of business or 
     division is a part, then the line of business or the division 
     shall be treated as the sender for purposes of this 
     paragraph.
       (10) Initiate.--The term ``initiate'', when used with 
     respect to a commercial electronic mail message, means to 
     originate or transmit such message or to procure the 
     origination or transmission of such message, but shall not 
     include actions that constitute routine conveyance of such 
     message. For purposes of this paragraph, more than 1 person 
     may be considered to have initiated a message.
       (11) Internet.--The term ``Internet'' has the meaning given 
     that term in the Internet Tax Freedom Act (47 U.S.C. 151 nt).
       (12) Internet access service.--The term ``Internet access 
     service'' has the meaning given that term in section 
     231(e)(4) of the Communications Act of 1934 (47 U.S.C. 
     231(e)(4)).
       (13) Procure.--The term ``procure'', when used with respect 
     to the initiation of a commercial electronic mail message, 
     means intentionally to pay or provide other consideration to, 
     or induce, another person to initiate such a message on one's 
     behalf, knowing, or consciously avoiding knowing, the extent 
     to which that person intends to comply with the requirements 
     of this title.
       (14) Protected computer.--The term ``protected computer'' 
     has the meaning given that term in section 1030(e)(2)(B) of 
     title 18, United States Code.
       (15) Recipient.--The term ``recipient'', when used with 
     respect to a commercial electronic mail message, means an 
     authorized user of the electronic mail address to which the 
     message was sent or delivered. If a recipient of a commercial 
     electronic mail message has 1 or more electronic mail 
     addresses in addition to the address to which the message was 
     sent or delivered, the recipient shall be treated as a 
     separate recipient with respect to each such address. If an 
     electronic mail address is reassigned to a new user, the new 
     user shall not be treated as a recipient of any commercial 
     electronic mail message sent or delivered to that address 
     before it was reassigned.
       (16) Routine conveyance.--The term ``routine conveyance'' 
     means the transmission, routing, relaying, handling, or 
     storing, through an automatic technical process, of an 
     electronic mail message for which another person has 
     identified the recipients or provided the recipient 
     addresses.
       (17) Sender.--The term ``sender'', when used with respect 
     to a commercial electronic mail message, means a person who 
     initiates such a message and whose product, service, or 
     Internet web site is advertised or promoted by the message.
       (18) Transactional or relationship message.--The term 
     ``transactional or relationship message'' means an electronic 
     mail message the primary purpose of which is--
       (A) to facilitate, complete, or confirm a commercial 
     transaction that the recipient has previously agreed to enter 
     into with the sender;
       (B) to provide warranty information, product recall 
     information, or safety or security information with respect 
     to a commercial product or service used or purchased by the 
     recipient;
       (C) to provide--

[[Page S13178]]

       (i) notification concerning a change in the terms or 
     features of;
       (ii) notification of a change in the recipient's standing 
     or status with respect to; or
       (iii) at regular periodic intervals, account balance 
     information or other type of account statement with respect 
     to,

     a subscription, membership, account, loan, or comparable 
     ongoing commercial relationship involving the ongoing 
     purchase or use by the recipient of products or services 
     offered by the sender;
       (D) to provide information directly related to an 
     employment relationship or related benefit plan in which the 
     recipient is currently involved, participating, or enrolled; 
     or
       (E) to deliver goods or services, including product updates 
     or upgrades, that the recipient is entitled to receive under 
     the terms of a transaction that the recipient has previously 
     agreed to enter into with the sender.
       (19) Unsolicited commercial electronic mail message.--The 
     term ``unsolicited commercial electronic mail message'' means 
     any commercial electronic mail message that--
       (A) is not a transactional or relationship message; and
       (B) is sent to a recipient without the recipient's prior 
     affirmative or implied consent.

     SEC. 104. PROHIBITION AGAINST PREDATORY AND ABUSIVE 
                   COMMERCIAL E-MAIL.

       (a) Offense.--
       (1) In general.--Chapter 47 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1037. Fraud and related activity in connection with 
       electronic mail

       ``(a) In General.--Whoever, in or affecting interstate or 
     foreign commerce, knowingly--
       ``(1) accesses a protected computer without authorization, 
     and intentionally initiates the transmission of multiple 
     commercial electronic mail messages from or through such 
     computer,
       ``(2) uses a protected computer to relay or retransmit 
     multiple commercial electronic mail messages, with the intent 
     to deceive or mislead recipients, or any Internet access 
     service, as to the origin of such messages,
       ``(3) falsifies header information in multiple commercial 
     electronic mail messages and intentionally initiates the 
     transmission of such messages,
       ``(4) registers, using information that falsifies the 
     identity of the actual registrant, for 5 or more electronic 
     mail accounts or online user accounts or 2 or more domain 
     names, and intentionally initiates the transmission of 
     multiple commercial electronic mail messages from any 
     combination of such accounts or domain names, or
       ``(5) falsely represents the right to use 5 or more 
     Internet protocol addresses, and intentionally initiates the 
     transmission of multiple commercial electronic mail messages 
     from such addresses,

     or conspires to do so, shall be punished as provided in 
     subsection (b).
       ``(b) Penalties.--The punishment for an offense under 
     subsection (a) is--
       ``(1) a fine under this title, imprisonment for not more 
     than 5 years, or both, if--
       ``(A) the offense is committed in furtherance of any felony 
     under the laws of the United States or of any State; or
       ``(B) the defendant has previously been convicted under 
     this section or section 1030, or under the law of any State 
     for conduct involving the transmission of multiple commercial 
     electronic mail messages or unauthorized access to a computer 
     system;
       ``(2) a fine under this title, imprisonment for not more 
     than 3 years, or both, if--
       ``(A) the offense is an offense under subsection (a)(1);
       ``(B) the offense is an offense under subsection (a)(4) and 
     involved 20 or more falsified electronic mail or online user 
     account registrations, or 10 or more falsified domain name 
     registrations;
       ``(C) the volume of electronic mail messages transmitted in 
     furtherance of the offense exceeded 2,500 during any 24-hour 
     period, 25,000 during any 30-day period, or 250,000 during 
     any 1-year period;
       ``(D) the offense caused loss to 1 or more persons 
     aggregating $5,000 or more in value during any 1-year period;
       ``(E) as a result of the offense any individual committing 
     the offense obtained anything of value aggregating $5,000 or 
     more during any 1-year period; or
       ``(F) the offense was undertaken by the defendant in 
     concert with 3 or more other persons with respect to whom the 
     defendant occupied a position of organizer or leader; and
       ``(3) a fine under this title or imprisonment for not more 
     than 1 year, or both, in any other case.
       ``(c) 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.
       ``(d) Definitions.--In this section:
       ``(1) Loss.--The term `loss' has the meaning given that 
     term in section 1030(e) of this title.
       ``(2) Multiple.--The term `multiple' means more than 100 
     electronic mail messages during a 24-hour period, more than 
     1,000 electronic mail messages during a 30-day period, or 
     more than 10,000 electronic mail messages during a 1-year 
     period.
       ``(3) Other terms.--Any other term has the meaning given 
     that term by section 3 of the CAN-SPAM Act of 2003.''.
       (2) Conforming amendment.--The chapter analysis for chapter 
     47 of title 18, United States Code, is amended by adding at 
     the end the following:

``Sec.
``1037. Fraud and related activity in connection with electronic 
              mail.''.

       (b) United States Sentencing Commission.--
       (1) Directive.--Pursuant to its authority under section 
     994(p) of title 28, United States Code, and in accordance 
     with this section, the United States Sentencing Commission 
     shall review and, as appropriate, amend the sentencing 
     guidelines and policy statements to provide appropriate 
     penalties for violations of section 1037 of title 18, United 
     States Code, as added by this section, and other offenses 
     that may be facilitated by the sending of large quantities of 
     unsolicited electronic mail.
       (2) Requirements.--In carrying out this subsection, the 
     Sentencing Commission shall consider providing sentencing 
     enhancements for--
       (A) those convicted under section 1037 of title 18, United 
     States Code, who--
       (i) obtained electronic mail addresses through improper 
     means, including--

       (I) harvesting electronic mail addresses of the users of a 
     website, proprietary service, or other online public forum 
     operated by another person, without the authorization of such 
     person; and
       (II) randomly generating electronic mail addresses by 
     computer; or

       (ii) knew that the commercial electronic mail messages 
     involved in the offense contained or advertised an Internet 
     domain for which the registrant of the domain had provided 
     false registration information; and
       (B) those convicted of other offenses, including offenses 
     involving fraud, identity theft, obscenity, child 
     pornography, and the sexual exploitation of children, if such 
     offenses involved the sending of large quantities of 
     unsolicited electronic mail.
       (c) Sense of Congress.--It is the sense of Congress that--
       (1) Spam has become the method of choice for those who 
     distribute pornography, perpetrate fraudulent schemes, and 
     introduce viruses, worms, and Trojan horses into personal and 
     business computer systems; and
       (2) the Department of Justice should use all existing law 
     enforcement tools to investigate and prosecute those who send 
     bulk commercial e-mail to facilitate the commission of 
     Federal crimes, including the tools contained in chapters 47 
     and 63 of title 18, United States Code (relating to fraud and 
     false statements); chapter 71 of title 18, United States Code 
     (relating to obscenity); chapter 110 of title 18, United 
     States Code (relating to the sexual exploitation of 
     children); and chapter 95 of title 18, United States Code 
     (relating to racketeering), as appropriate.

     SEC. 105. OTHER PROTECTIONS FOR USERS OF COMMERCIAL 
                   ELECTRONIC MAIL.

       (a) Requirements for Transmission of Messages.--
       (1) Prohibition of false or misleading transmission 
     information.--It is unlawful for any person to initiate the 
     transmission, to a protected computer, of a commercial 
     electronic mail message that contains, or is accompanied by, 
     header information that is materially false or materially 
     misleading. For purposes of this paragraph--
       (A) header information that is technically accurate but 
     includes an originating electronic mail address the access to 
     which for purposes of initiating the message was obtained by 
     means of false or fraudulent pretenses or representations 
     shall be considered materially misleading;
       (B) a ``from'' line that accurately identifies any person 
     who initiated the message shall not be considered materially 
     false or materially misleading; and
       (C) if header information attached to a message fails to 
     identify a protected computer used to initiate the message 
     because the person initiating the message knowingly uses 
     another protected computer to relay or retransmit the message 
     for purposes of disguising its origin, then such header 
     information shall be considered materially misleading.
       (2) Prohibition of deceptive subject headings.--It is 
     unlawful for any person to initiate the transmission to a 
     protected computer of a commercial electronic mail message 
     with a subject heading that such person knows would be likely 
     to mislead a recipient, acting reasonably under the 
     circumstances, about a material fact regarding the contents 
     or subject matter of the message.
       (3) Inclusion of return address or comparable mechanism in 
     commercial electronic mail.--
       (A) In general.--It is unlawful for any person to initiate 
     the transmission to a protected computer of a commercial 
     electronic mail message that does not contain a functioning 
     return electronic mail address or

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     other Internet-based mechanism, clearly and conspicuously 
     displayed, that--
       (i) a recipient may use to submit, in a manner specified in 
     the message, a reply electronic mail message or other form of 
     Internet-based communication requesting not to receive future 
     commercial electronic mail messages from that sender at the 
     electronic mail address where the message was received; and
       (ii) remains capable of receiving such messages or 
     communications for no less than 30 days after the 
     transmission of the original message.
       (B) More detailed options possible.--The person initiating 
     a commercial electronic mail message may comply with 
     subparagraph (A)(i) by providing the recipient a list or menu 
     from which the recipient may choose the specific types of 
     commercial electronic mail messages the recipient wants to 
     receive or does not want to receive from the sender, if the 
     list or menu includes an option under which the recipient may 
     choose not to receive any unsolicited commercial electronic 
     mail messages from the sender.
       (C) Temporary inability to receive messages or process 
     requests.--A return electronic mail address or other 
     mechanism does not fail to satisfy the requirements of 
     subparagraph (A) if it is unexpectedly and temporarily unable 
     to receive messages or process requests due to technical or 
     capacity problems, if the technical or capacity problems were 
     not reasonably foreseeable in light of the potential volume 
     of response messages or requests, and if the problem with 
     receiving messages or processing requests is corrected within 
     a reasonable time period.
       (D) Exception.--The requirements of this paragraph shall 
     not apply to a message that is a transactional or 
     relationship message.
       (4) Prohibition of transmission of unsolicited commercial 
     electronic mail after objection.--If a recipient makes a 
     request using a mechanism provided pursuant to paragraph (3) 
     not to receive some or any unsolicited commercial electronic 
     mail messages from such sender, then it is unlawful--
       (A) for the sender to initiate the transmission to the 
     recipient, more than 10 business days after the receipt of 
     such request, of an unsolicited commercial electronic mail 
     message that falls within the scope of the request;
       (B) for any person acting on behalf of the sender to 
     initiate the transmission to the recipient, more than 10 
     business days after the receipt of such request, of an 
     unsolicited commercial electronic mail message that such 
     person knows or consciously avoids knowing falls within the 
     scope of the request;
       (C) for any person acting on behalf of the sender to assist 
     in initiating the transmission to the recipient, through the 
     provision or selection of addresses to which the message will 
     be sent, of an unsolicited commercial electronic mail message 
     that the person knows, or consciously avoids knowing, would 
     violate subparagraph (A) or (B); or
       (D) for the sender, or any other person who knows that the 
     recipient has made such a request, to sell, lease, exchange, 
     or otherwise transfer or release the electronic mail address 
     of the recipient (including through any transaction or other 
     transfer involving mailing lists bearing the electronic mail 
     address of the recipient) for any purpose other than 
     compliance with this title or other provision of law.
       (5) Inclusion of identifier, opt-out, and physical address 
     in unsolicited commercial electronic mail.--It is unlawful 
     for any person to initiate the transmission of any 
     unsolicited commercial electronic mail message to a protected 
     computer unless the message provides--
       (A) clear and conspicuous identification that the message 
     is an advertisement or solicitation;
       (B) clear and conspicuous notice of the opportunity under 
     paragraph (3) to decline to receive further unsolicited 
     commercial electronic mail messages from the sender; and
       (C) a valid physical postal address of the sender.
       (6) Materiality defined.--For purposes of paragraph (1), an 
     inaccuracy or omission in header information is material if 
     it would materially impede the ability of a party seeking to 
     allege a violation of this title to locate the person who 
     initiated the message or to investigate the alleged 
     violation.
       (b) Aggravated Violations Relating to Unsolicited 
     Commercial Electronic Mail.--
       (1) Address harvesting and dictionary attacks.--
       (A) In general.--It is unlawful for any person to initiate 
     the transmission, to a protected computer, of an unsolicited 
     commercial electronic mail message that is unlawful under 
     subsection (a), or to assist in the origination of such 
     message through the provision or selection of addresses to 
     which the message will be transmitted, if such person knows, 
     should have known, or consciously avoids knowing that--
       (i) the electronic mail address of the recipient was 
     obtained using an automated means from an Internet website or 
     proprietary online service operated by another person, and 
     such website or online service included, at the time the 
     address was obtained, a notice stating that the operator of 
     such website or online service will not give, sell, or 
     otherwise transfer addresses maintained by such website or 
     online service to any other party for the purposes of 
     initiating, or enabling others to initiate, unsolicited 
     electronic mail messages; or
       (ii) the electronic mail address of the recipient was 
     obtained using an automated means that generates possible 
     electronic mail addresses by combining names, letters, or 
     numbers into numerous permutations.
       (B) Disclaimer.--Nothing in this paragraph creates an 
     ownership or proprietary interest in such electronic mail 
     addresses.
       (2) Automated creation of multiple electronic mail 
     accounts.--It is unlawful for any person to use scripts or 
     other automated means to register for multiple electronic 
     mail accounts or online user accounts from which to transmit 
     to a protected computer, or enable another person to transmit 
     to a protected computer, an unsolicited commercial electronic 
     mail message that is unlawful under subsection (a).
       (3) Relay or retransmission through unauthorized access.--
     It is unlawful for any person knowingly to relay or 
     retransmit an unsolicited commercial electronic mail message 
     that is unlawful under subsection (a) from a protected 
     computer or computer network that such person has accessed 
     without authorization.
       (c) Compliance Procedures.--An action for violation of 
     paragraph (2), (3), (4), or (5) of subsection (a) may not 
     proceed if the person against whom the action is brought 
     demonstrates that --
       (1) the person has established and implemented, with due 
     care, reasonable practices and procedures to effectively 
     prevent violations of such paragraph; and
       (2) the violation occurred despite good faith efforts to 
     maintain compliance with such practices and procedures.
       (d) Supplementary Rulemaking Authority.--The Commission may 
     by rule--
       (1) modify the 10-business-day period under subsection 
     (a)(4)(A) or subsection (a)(4)(B), or both, if the Commission 
     determines that a different period would be more reasonable 
     after taking into account--
       (A) the purposes of subsection (a);
       (B) the interests of recipients of commercial electronic 
     mail; and
       (C) the burdens imposed on senders of lawful commercial 
     electronic mail; and
       (2) specify additional activities or practices to which 
     subsection (b) applies if the Commission determines that 
     those activities or practices are contributing substantially 
     to the proliferation of commercial electronic mail messages 
     that are unlawful under subsection (a).
       (e) Requirement To Place Warning Labels on Commercial 
     Electronic Mail Containing Sexually Oriented Material.--
       (1) In general.--No person may initiate in or affecting 
     interstate commerce the transmission, to a protected 
     computer, of any unsolicited commercial electronic mail 
     message that includes sexually oriented material and--
       (A) fail to include in subject heading for the electronic 
     mail message the marks or notices prescribed by the 
     Commission under this subsection; or
       (B) fail to provide that the matter in the message that is 
     initially viewable to the recipient, when the message is 
     opened by any recipient and absent any further actions by the 
     recipient, includes only--
       (i) to the extent required or authorized pursuant to 
     paragraph (2), any such marks or notices;
       (ii) the information required to be included in the message 
     pursuant to subsection (a)(5); and
       (iii) instructions on how to access, or a mechanism to 
     access, the sexually oriented material.
       (2) Prescription of marks and notices.--Not later than 120 
     days after the date of the enactment of this title, the 
     Commission in consultation with the Attorney General shall 
     prescribe clearly identifiable marks or notices to be 
     included in or associated with unsolicited commercial 
     electronic mail that contains sexually oriented material, in 
     order to inform the recipient of that fact and to facilitate 
     filtering of such electronic mail. The Commission shall 
     publish in the Federal Register and provide notice to the 
     public of the marks or notices prescribed under this 
     paragraph.
       (3) Definition.--In this subsection, the term ``sexually 
     oriented material'' means any material that depicts sexually 
     explicit conduct (as that term is defined in section 2256 of 
     title 18, United States Code), unless the depiction 
     constitutes a small and insignificant part of the whole, the 
     remainder of which is not primarily devoted to sexual 
     matters.
       (4) Penalty.--A violation of paragraph (1) is punishable as 
     if it were a violation of section 1037(a) of title 18, United 
     States Code.

     SEC. 106. BUSINESSES KNOWINGLY PROMOTED BY ELECTRONIC MAIL 
                   WITH FALSE OR MISLEADING TRANSMISSION 
                   INFORMATION.

       (a) In General.--It is unlawful for a person to promote, or 
     allow the promotion of, that person's trade or business, or 
     goods, products, property, or services sold, offered for 
     sale, leased or offered for lease, or otherwise made 
     available through that trade or business, in a commercial 
     electronic mail message the transmission of which is in 
     violation of section 105(a)(1) if that person--
       (1) knows, or should have known in ordinary course of that 
     person's trade or business, that the goods, products, 
     property, or services sold, offered for sale, leased or 
     offered for lease, or otherwise made available through that 
     trade or business were being promoted in such a message;

[[Page S13180]]

       (2) received or expected to receive an economic benefit 
     from such promotion; and
       (3) took no reasonable action--
       (A) to prevent the transmission; or
       (B) to detect the transmission and report it to the 
     Commission.
       (b) Limited Enforcement Against Third Parties.--
       (1) In general.--Except as provided in paragraph (2), a 
     person (hereinafter referred to as the ``third party'') that 
     provides goods, products, property, or services to another 
     person that violates subsection (a) shall not be held liable 
     for such violation.
       (2) Exception.--Liability for a violation of subsection (a) 
     shall be imputed to a third party that provides goods, 
     products, property, or services to another person that 
     violates subsection (a) if that third party--
       (A) owns, or has a greater than 50 percent ownership or 
     economic interest in, the trade or business of the person 
     that violated subsection (a); or
       (B)(i) has actual knowledge that goods, products, property, 
     or services are promoted in a commercial electronic mail 
     message the transmission of which is in violation of section 
     105(a)(1); and
       (ii) receives, or expects to receive, an economic benefit 
     from such promotion.
       (c) Exclusive Enforcement by FTC.--Subsections (e) and (f) 
     of section 107 do not apply to violations of this section.

     SEC. 107. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

       (a) Violation Is Unfair or Deceptive Act or Practice.--
     Except as provided in subsection (b), this title shall be 
     enforced by the Commission as if the violation of this title 
     were an unfair or deceptive act or practice proscribed under 
     section 18(a)(1)(B) of the Federal Trade Commission Act (15 
     U.S.C. 57a(a)(1)(B)).
       (b) Enforcement by Certain Other Agencies.--Compliance with 
     this title shall be enforced--
       (1) under section 8 of the Federal Deposit Insurance Act 
     (12 U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, and any subsidiaries of such 
     entities (except brokers, dealers, persons providing 
     insurance, investment companies, and investment advisers), by 
     the Office of the Comptroller of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, organizations 
     operating under section 25 or 25A of the Federal Reserve Act 
     (12 U.S.C. 601 and 611), and bank holding companies and their 
     nonbank subsidiaries or affiliates (except brokers, dealers, 
     persons providing insurance, investment companies, and 
     investment advisers), by the Board;
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) insured State branches of foreign banks, and any 
     subsidiaries of such entities (except brokers, dealers, 
     persons providing insurance, investment companies, and 
     investment advisers), by the Board of Directors of the 
     Federal Deposit Insurance Corporation; and
       (D) savings associations the deposits of which are insured 
     by the Federal Deposit Insurance Corporation, and any 
     subsidiaries of such savings associations (except brokers, 
     dealers, persons providing insurance, investment companies, 
     and investment advisers), by the Director of the Office of 
     Thrift Supervision;
       (2) under the Federal Credit Union Act (12 U.S.C. 1751 et 
     seq.) by the Board of the National Credit Union 
     Administration with respect to any Federally insured credit 
     union, and any subsidiaries of such a credit union;
       (3) under the Securities Exchange Act of 1934 (15 U.S.C. 
     78a et seq.) by the Securities and Exchange Commission with 
     respect to any broker or dealer;
       (4) under the Investment Company Act of 1940 (15 U.S.C. 
     80a-1 et seq.) by the Securities and Exchange Commission with 
     respect to investment companies;
       (5) under the Investment Advisers Act of 1940 (15 U.S.C. 
     80b-1 et seq.) by the Securities and Exchange Commission with 
     respect to investment advisers registered under that Act;
       (6) under State insurance law in the case of any person 
     engaged in providing insurance, by the applicable State 
     insurance authority of the State in which the person is 
     domiciled, subject to section 104 of the Gramm-Bliley-Leach 
     Act (15 U.S.C. 6701);
       (7) under part A of subtitle VII of title 49, United States 
     Code, by the Secretary of Transportation with respect to any 
     air carrier or foreign air carrier subject to that part;
       (8) under the Packers and Stockyards Act, 1921 (7 U.S.C. 
     181 et seq.) (except as provided in section 406 of that Act 
     (7 U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act;
       (9) under the Farm Credit Act of 1971 (12 U.S.C. 2001 et 
     seq.) by the Farm Credit Administration with respect to any 
     Federal land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association; 
     and
       (10) under the Communications Act of 1934 (47 U.S.C. 151 et 
     seq.) by the Federal Communications Commission with respect 
     to any person subject to the provisions of that Act.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (b) of its 
     powers under any Act referred to in that subsection, a 
     violation of this title is deemed to be a violation of a 
     Federal Trade Commission trade regulation rule. In addition 
     to its powers under any provision of law specifically 
     referred to in subsection (b), each of the agencies referred 
     to in that subsection may exercise, for the purpose of 
     enforcing compliance with any requirement imposed under this 
     title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating this title in the same 
     manner, by the same means, and with the same jurisdiction, 
     powers, and duties as though all applicable terms and 
     provisions of the Federal Trade Commission Act (15 U.S.C. 41 
     et seq.) were incorporated into and made a part of this 
     title. Any entity that violates any provision of that 
     subtitle is subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of that 
     subtitle.
       (e) Enforcement by States.--
       (1) Civil action.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by any person engaging in a practice that 
     violates section 105 of this title, the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction--
       (A) to enjoin further violation of section 105 of this 
     title by the defendant; or
       (B) to obtain damages on behalf of residents of the State, 
     in an amount equal to the greater of--
       (i) the actual monetary loss suffered by such residents; or
       (ii) the amount determined under paragraph (2).
       (2) Statutory damages.--
       (A) In general.--For purposes of paragraph (1)(B)(ii), the 
     amount determined under this paragraph is the amount 
     calculated by multiplying the number of violations (with each 
     separately addressed unlawful message received by or 
     addressed to such residents treated as a separate violation) 
     by--
       (i) up to $100, in the case of a violation of section 
     105(a)(1); or
       (ii) $25, in the case of any other violation of section 
     105.
       (B) Limitation.--For any violation of section 105 (other 
     than section 105(a)(1)), the amount determined under 
     subparagraph (A) may not exceed $1,000,000.
       (C) Aggravated damages.--The court may increase a damage 
     award to an amount equal to not more than three times the 
     amount otherwise available under this paragraph if--
       (i) the court determines that the defendant committed the 
     violation willfully and knowingly; or
       (ii) the defendant's unlawful activity included one or more 
     of the aggravating violations set forth in section 105(b).
       (3) Attorney fees.--In the case of any successful action 
     under paragraph (1), the State shall be awarded the costs of 
     the action and reasonable attorney fees as determined by the 
     court.
       (4) Rights of federal regulators.--The State shall serve 
     prior written notice of any action under paragraph (1) upon 
     the Federal Trade Commission or the appropriate Federal 
     regulator determined under subsection (b) and provide the 
     Commission or appropriate Federal regulator with a copy of 
     its complaint, except in any case in which such prior notice 
     is not feasible, in which case the State shall serve such 
     notice immediately upon instituting such action. The Federal 
     Trade Commission or appropriate Federal regulator shall have 
     the right--
       (A) to intervene in the action;
       (B) upon so intervening, to be heard on all matters arising 
     therein;
       (C) to remove the action to the appropriate United States 
     district court; and
       (D) to file petitions for appeal.
       (5) Construction.--For purposes of bringing any civil 
     action under paragraph (1), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (A) conduct investigations;
       (B) administer oaths or affirmations; or
       (C) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (6) Venue; service of process.--
       (A) Venue.--Any action brought under paragraph (1) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (B) Service of process.--In an action brought under 
     paragraph (1), process may be served in any district in which 
     the defendant--
       (i) is an inhabitant; or
       (ii) maintains a physical place of business.
       (7) Limitation on state action while federal action is 
     pending.--If the Commission or other appropriate Federal 
     agency under subsection (b) has instituted a civil action or 
     an administrative action for violation of this

[[Page S13181]]

     title, no State attorney general may bring an action under 
     this subsection during the pendency of that action against 
     any defendant named in the complaint of the Commission or the 
     other agency for any violation of this title alleged in the 
     complaint.
       (f) Action by Provider of Internet Access Service.--
       (1) Action authorized.--A provider of Internet access 
     service adversely affected by a violation of section 105 may 
     bring a civil action in any district court of the United 
     States with jurisdiction over the defendant--
       (A) enjoin further violation by the defendant; or
       (B) recover damages in an amount equal to the greater of--
       (i) actual monetary loss incurred by the provider of 
     Internet access service as a result of such violation; or
       (ii) the amount determined under paragraph (2).
       (2) Statutory damages.--
       (A) In general.--For purposes of paragraph (1)(B)(ii), the 
     amount determined under this paragraph is the amount 
     calculated by multiplying the number of violations (with each 
     separately addressed unlawful message that is transmitted or 
     attempted to be transmitted over the facilities of the 
     provider of Internet access service, or that is transmitted 
     or attempted to be transmitted to an electronic mail address 
     obtained from the provider of Internet access service in 
     violation of section 105(b)(1)(A)(i), treated as a separate 
     violation) by--
       (i) up to $100, in the case of a violation of section 
     105(a)(1); or
       (ii) $25, in the case of any other violation of section 
     105.
       (B) Limitation.--For any violation of section 105 (other 
     than section 105(a)(1)), the amount determined under 
     subparagraph (A) may not exceed $1,000,000.
       (C) Aggravated damages.--The court may increase a damage 
     award to an amount equal to not more than three times the 
     amount otherwise available under this paragraph if--
       (i) the court determines that the defendant committed the 
     violation willfully and knowingly; or
       (ii) the defendant's unlawful activity included one or more 
     of the aggravated violations set forth in section 105(b).
       (3) Attorney fees.--In any action brought pursuant to 
     paragraph (1), the court may, in its discretion, require an 
     undertaking for the payment of the costs of such action, and 
     assess reasonable costs, including reasonable attorneys' 
     fees, against any party.

     SEC. 108. EFFECT ON OTHER LAWS.

       (a) Federal Law.--
       (1) Nothing in this title shall be construed to impair the 
     enforcement of section 223 or 231 of the Communications Act 
     of 1934 (47 U.S.C. 223 or 231, respectively), chapter 71 
     (relating to obscenity) or 110 (relating to sexual 
     exploitation of children) of title 18, United States Code, or 
     any other Federal criminal statute.
       (2) Nothing in this title shall be construed to affect in 
     any way the Commission's authority to bring enforcement 
     actions under FTC Act for materially false or deceptive 
     representations or unfair practices in commercial electronic 
     mail messages.
       (b) State Law.--
       (1) In general.--This title supersedes any statute, 
     regulation, or rule of a State or political subdivision of a 
     State that expressly regulates the use of electronic mail to 
     send commercial messages, except to the extent that any such 
     statute, regulation, or rule prohibits falsity or deception 
     in any portion of a commercial electronic mail message or 
     information attached thereto.
       (2) State law not specific to electronic mail.--This title 
     shall not be construed to preempt the applicability of State 
     laws that are not specific to electronic mail, including 
     State trespass, contract, or tort law, and other State laws 
     to the extent that those laws relate to acts of fraud or 
     computer crime.
       (c) No Effect on Policies of Providers of Internet Access 
     Service.--Nothing in this title shall be construed to have 
     any effect on the lawfulness or unlawfulness, under any other 
     provision of law, of the adoption, implementation, or 
     enforcement by a provider of Internet access service of a 
     policy of declining to transmit, route, relay, handle, or 
     store certain types of electronic mail messages.

     SEC. 109. DO-NOT-E-MAIL REGISTRY.

       (a) In General.--Not later than 6 months after the date of 
     enactment of this title, the Commission shall transmit to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Energy and Commerce 
     a report that--
       (1) sets forth a plan and timetable for establishing a 
     nationwide marketing Do-Not-E-mail registry;
       (2) includes an explanation of any practical, technical, 
     security, privacy, enforceability, or other concerns that the 
     Commission has regarding such a registry; and
       (3) includes an explanation of how the registry would be 
     applied with respect to children with e-mail accounts.
       (b) Authorization To Implement.--The Commission may 
     establish and implement the plan, but not earlier than 9 
     months after the date of enactment of this title.

     SEC. 110. STUDY OF EFFECTS OF UNSOLICITED COMMERCIAL 
                   ELECTRONIC MAIL.

       (a) In General.--Not later than 24 months after the date of 
     the enactment of this title, the Commission, in consultation 
     with the Department of Justice and other appropriate 
     agencies, shall submit a report to the Congress that provides 
     a detailed analysis of the effectiveness and enforcement of 
     the provisions of this title and the need (if any) for the 
     Congress to modify such provisions.
       (b) Required Analysis.--The Commission shall include in the 
     report required by subsection (a)--
       (1) an analysis of the extent to which technological and 
     marketplace developments, including changes in the nature of 
     the devices through which consumers access their electronic 
     mail messages, may affect the practicality and effectiveness 
     of the provisions of this title;
       (2) analysis and recommendations concerning how to address 
     unsolicited commercial electronic mail that originates in or 
     is transmitted through or to facilities or computers in other 
     nations, including initiatives or policy positions that the 
     Federal government could pursue through international 
     negotiations, fora, organizations, or institutions; and
       (3) analysis and recommendations concerning options for 
     protecting consumers, including children, from the receipt 
     and viewing of unsolicited commercial electronic mail that is 
     obscene or pornographic.

     SEC. 111. IMPROVING ENFORCEMENT BY PROVIDING REWARDS FOR 
                   INFORMATION ABOUT VIOLATIONS; LABELING.

       (a) In General.--The Commission shall transmit to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Energy and 
     Commerce--
       (1) a report, within 9 months after the date of enactment 
     of this title, that sets forth a system for rewarding those 
     who supply information about violations of this title, 
     including--
       (A) procedures for the Commission to grant a reward of not 
     less than 20 percent of the total civil penalty collected for 
     a violation of this title to the first person that--
       (i) identifies the person in violation of this title; and
       (ii) supplies information that leads to the successful 
     collection of a civil penalty by the Commission; and
       (B) procedures to minimize the burden of submitting a 
     complaint to the Commission concerning violations of this 
     title, including procedures to allow the electronic 
     submission of complaints to the Commission; and
       (2) a report, within 18 months after the date of enactment 
     of this title, that sets forth a plan for requiring 
     unsolicited commercial electronic mail to be identifiable 
     from its subject line, by means of compliance with Internet 
     Engineering Task Force Standards, the use of the characters 
     ``ADV'' in the subject line, or other comparable identifier, 
     or an explanation of any concerns the Commission has that 
     cause the Commission to recommend against the plan.
       (b) Implementation of Reward System.--The Commission may 
     establish and implement the plan under subsection (a)(1), but 
     not earlier than 12 months after the date of enactment of 
     this title.

     SEC. 112. SEPARABILITY.

       If any provision of this title or the application thereof 
     to any person or circumstance is held invalid, the remainder 
     of this title and the application of such provision to other 
     persons or circumstances shall not be affected.

     SEC. 113. EFFECTIVE DATE.

       The provisions of this title other than section 109, shall 
     take effect 120 days after the date of the enactment of this 
     title.

                     TITLE II--REALTIME WRITERS ACT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Training for Realtime 
     Writers Act of 2003''.

     SEC. 202. FINDINGS.

       Congress makes the following findings:
       (1) As directed by Congress in section 723 of the 
     Communications Act of 1934 (47 U.S.C. 613), as added by 
     section 305 of the Telecommunications Act of 1996 (Public Law 
     104-104; 110 Stat. 126), the Federal Communications 
     Commission adopted rules requiring closed captioning of most 
     television programming, which gradually require new video 
     programming to be fully captioned beginning in 2006.
       (2) More than 28,000,000 Americans, or 8 percent of the 
     population, are considered deaf or hard of hearing, and many 
     require captioning services to participate in mainstream 
     activities.
       (3) More than 24,000 children are born in the United States 
     each year with some form of hearing loss.
       (4) According to the Department of Health and Human 
     Services and a study done by the National Council on Aging--
       (A) 25 percent of Americans over 65 years old are hearing 
     impaired;
       (B) 33 percent of Americans over 70 years old are hearing 
     impaired; and
       (C) 41 percent of Americans over 75 years old are hearing 
     impaired.
       (5) The National Council on Aging study also found that 
     depression in older adults may be directly related to hearing 
     loss and disconnection with the spoken word.
       (6) Empirical research demonstrates that captions improve 
     the performance of individuals learning to read English and, 
     according to numerous Federal agency statistics, could 
     benefit--
       (A) 3,700,000 remedial readers;
       (B) 12,000,000 young children learning to read;

[[Page S13182]]

       (C) 27,000,000 illiterate adults; and
       (D) 30,000,000 people for whom English is a second 
     language.
       (7) Over the past 5 years, student enrollment in programs 
     that train court reporters to become realtime writers has 
     decreased significantly, causing such programs to close on 
     many campuses.

     SEC. 203. AUTHORIZATION OF GRANT PROGRAM TO PROMOTE TRAINING 
                   AND JOB PLACEMENT OF REALTIME WRITERS.

       (a) In General.--The National Telecommunications and 
     Information Administration shall make competitive grants to 
     eligible entities under subsection (b) to promote training 
     and placement of individuals, including individuals who have 
     completed a court reporting training program, as realtime 
     writers in order to meet the requirements for closed 
     captioning of video programming set forth in section 723 of 
     the Communications Act of 1934 (47 U.S.C. 613) and the rules 
     prescribed thereunder.
       (b) Eligible Entities.--For purposes of this title, an 
     eligible entity is a court reporting program that--
       (1) can document and demonstrate to the Secretary of 
     Commerce that it meets minimum standards of educational and 
     financial accountability, with a curriculum capable of 
     training realtime writers qualified to provide captioning 
     services;
       (2) is accredited by an accrediting agency recognized by 
     the Department of Education; and
       (3) is participating in student aid programs under title IV 
     of the Higher Education Act of 1965.
       (c) Priority in Grants.--In determining whether to make 
     grants under this section, the Secretary of Commerce shall 
     give a priority to eligible entities that, as determined by 
     the Secretary of Commerce--
       (1) possess the most substantial capability to increase 
     their capacity to train realtime writers;
       (2) demonstrate the most promising collaboration with local 
     educational institutions, businesses, labor organizations, or 
     other community groups having the potential to train or 
     provide job placement assistance to realtime writers; or
       (3) propose the most promising and innovative approaches 
     for initiating or expanding training and job placement 
     assistance efforts with respect to realtime writers.
       (d) Duration of Grant.--A grant under this section shall be 
     for a period of two years.
       (e) Maximum Amount of Grant.--The amount of a grant 
     provided under subsection (a) to an entity eligible may not 
     exceed $1,500,000 for the two-year period of the grant under 
     subsection (d).

     SEC. 204. APPLICATION.

       (a) In General.--To receive a grant under section 203, an 
     eligible entity shall submit an application to the National 
     Telecommunications and Information Administration at such 
     time and in such manner as the Administration may require. 
     The application shall contain the information set forth under 
     subsection (b).
       (b) Information.--Information in the application of an 
     eligible entity under subsection (a) for a grant under 
     section 203 shall include the following:
       (1) A description of the training and assistance to be 
     funded using the grant amount, including how such training 
     and assistance will increase the number of realtime writers.
       (2) A description of performance measures to be utilized to 
     evaluate the progress of individuals receiving such training 
     and assistance in matters relating to enrollment, completion 
     of training, and job placement and retention.
       (3) A description of the manner in which the eligible 
     entity will ensure that recipients of scholarships, if any, 
     funded by the grant will be employed and retained as realtime 
     writers.
       (4) A description of the manner in which the eligible 
     entity intends to continue providing the training and 
     assistance to be funded by the grant after the end of the 
     grant period, including any partnerships or arrangements 
     established for that purpose.
       (5) A description of how the eligible entity will work with 
     local workforce investment boards to ensure that training and 
     assistance to be funded with the grant will further local 
     workforce goals, including the creation of educational 
     opportunities for individuals who are from economically 
     disadvantaged backgrounds or are displaced workers.
       (6) Additional information, if any, of the eligibility of 
     the eligible entity for priority in the making of grants 
     under section 203(c).
       (7) Such other information as the Administration may 
     require.

     SEC. 205. USE OF FUNDS.

       (a) In General.--An eligible entity receiving a grant under 
     section 203 shall use the grant amount for purposes relating 
     to the recruitment, training and assistance, and job 
     placement of individuals, including individuals who have 
     completed a court reporting training program, as realtime 
     writers, including--
       (1) recruitment;
       (2) subject to subsection (b), the provision of 
     scholarships;
       (3) distance learning;
       (4) development of curriculum to more effectively train 
     realtime writing skills, and education in the knowledge 
     necessary for the delivery of high-quality closed captioning 
     services;
       (5) assistance in job placement for upcoming and recent 
     graduates with all types of captioning employers;
       (6) encouragement of individuals with disabilities to 
     pursue a career in realtime writing; and
       (7) the employment and payment of personnel for such 
     purposes.
       (b) Scholarships.--
       (1) Amount.--The amount of a scholarship under subsection 
     (a)(2) shall be based on the amount of need of the recipient 
     of the scholarship for financial assistance, as determined in 
     accordance with part F of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1087kk).
       (2) Agreement.--Each recipient of a scholarship under 
     subsection (a)(2) shall enter into an agreement with the 
     National Telecommunications and Information Administration to 
     provide realtime writing services for a period of time (as 
     determined by the Administration) that is appropriate (as so 
     determined) for the amount of the scholarship received.
       (3) Coursework and employment.--The Administration shall 
     establish requirements for coursework and employment for 
     recipients of scholarships under subsection (a)(2), including 
     requirements for repayment of scholarship amounts in the 
     event of failure to meet such requirements for coursework and 
     employment. Requirements for repayment of scholarship amounts 
     shall take into account the effect of economic conditions on 
     the capacity of scholarship recipients to find work as 
     realtime writers.
       (c) Administrative Costs.--The recipient of a grant under 
     section 203 may not use more than 5 percent of the grant 
     amount to pay administrative costs associated with activities 
     funded by the grant.
       (d) Supplement Not Supplant.--Grants amounts under this 
     title shall supplement and not supplant other Federal or non-
     Federal funds of the grant recipient for purposes of 
     promoting the training and placement of individuals as 
     realtime writers

     SEC. 206. REPORTS.

       (a) Annual Reports.--Each eligible entity receiving a grant 
     under section 203 shall submit to the National 
     Telecommunications and Information Administration, at the end 
     of each year of the grant period, a report on the activities 
     of such entity with respect to the use of grant amounts 
     during such year.
       (b) Report Information.--
       (1) In general.--Each report of an entity for a year under 
     subsection (a) shall include a description of the use of 
     grant amounts by the entity during such year, including an 
     assessment by the entity of the effectiveness of activities 
     carried out using such funds in increasing the number of 
     realtime writers. The assessment shall utilize the 
     performance measures submitted by the entity in the 
     application for the grant under section 204(b).
       (2) Final report.--The final report of an entity on a grant 
     under subsection (a) shall include a description of the best 
     practices identified by the entity as a result of the grant 
     for increasing the number of individuals who are trained, 
     employed, and retained in employment as realtime writers.

     SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title, amounts as follows:
       (1) $20,000,000 for each of fiscal years 2004, 2005, and 
     2006.
       (2) Such sums as may be necessary for fiscal year 2007.

                          ____________________