[Senate Report 105-274]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 460
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-274
_______________________________________________________________________


 
            THE IDENTITY THEFT AND ASSUMPTION DETERRENCE ACT

                                _______
                                

                 July 29, 1998.--Ordered to be printed

_______________________________________________________________________


Mr. Hatch, from the Committee on the Judiciary, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 512]

    The Committee on the Judiciary, to which was referred the 
bill (S. 512) to amend provisions of chapter 47 of title 18, 
United States Code, relating to identity fraud, having 
considered the same, reports favorably thereon, with an 
amendment in the nature of a substitute, and recommends that 
the bill, as amended, do pass.

                                CONTENTS

                                                                    Page
      Purpose of the legislation.......................................4
      Legislative history of the bill..................................5
      Background.......................................................6
      Administration position..........................................8
      Conclusion.......................................................9
      Section-by-section analysis......................................9
      Cost estimate...................................................13
      Regulatory impact statement.....................................15
      Additional views of Senator Leahy...............................16
      Changes in existing law.........................................18

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Identity Theft and Assumption 
Deterrence Act of 1998''.

SEC. 2. IDENTITY THEFT.

  (a) Establishment of Offense.--Section 1028(a) of title 18, United 
States Code, is amended--
          (1) in paragraph (5), by striking ``or'' at the end;
          (2) in paragraph (6), by adding ``or'' at the end;
          (3) in the flush matter following paragraph (6), by striking 
        ``or attempts to do so,''; and
          (4) by inserting after paragraph (6) the following:
          ``(7) knowingly possesses, transfers, or uses, without lawful 
        authority, a means of identification of another person with the 
        intent to commit, or otherwise promote, carry on, or facilitate 
        any unlawful activity that constitutes a violation of Federal 
        law, or that constitutes a felony under any applicable State or 
        local law;''.
  (b) Penalties.--Section 1028(b) of title 18, United States Code, is 
amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (B), by striking ``or'' at the 
                end
                  (B) in subparagraph (C), by adding ``or'' at the end; 
                and
                  (C) by adding at the end the following:
                  ``(D) an offense under paragraph (7) of such 
                subsection that involves the transfer, possession, or 
                use of 1 or more means of identification if, as a 
                result of the offense, any individual committing the 
                offense obtains anything of value aggregating $1,000 or 
                more during any 1-year period;'';
          (2) in paragraph (2)(A), by striking ``or transfer of an 
        identification document or'' and inserting ``possession, 
        transfer, or use of a means of identification, an 
        identification document, or a'';
          (3) by striking paragraphs (3) and (4) and inserting the 
        following:
          ``(3) a fine under this title or imprisonment for not more 
        than 20 years, or both, if the offense is committed--
                  ``(A) to facilitate a drug trafficking crime (as 
                defined in section 929(a)(2)); or
                  ``(B) after a prior conviction under this section 
                becomes final;
          ``(4) a fine under this title or imprisonment for not more 
        than 25 years, or both, if the offense is committed--
                  ``(A) to facilitate an act of international terrorism 
                (as defined in section 2331(1)); or
                  ``(B) in connection with a crime of violence (as 
                defined in section 924(c)(3));'';
          (4) by redesignating paragraph (5) as paragraph (6); and
          (5) by inserting after paragraph (4) (as added by paragraph 
        (3) of this subsection) the following:
          ``(5) in the case of any offense under subsection (a), 
        forfeiture to the United States of any personal property used 
        or intended to be used to commit the offense; and''.
  (c) Circumstances.--Section 1028(c) of title 18, United States Code, 
is amended by striking paragraph (3) and inserting the following:
          ``(3) either--
                  ``(A) the production, transfer, possession, or use 
                prohibited by this section is in or affects interstate 
                or foreign commerce; or
                  ``(B) the means of identification, identification 
                document, false identification document, or document-
                making implement is transported in the mail in the 
                course of the production, transfer, possession, or use 
                prohibited by this section.''.
  (d) Definitions.--Section 1028 of title 18, United States Code, is 
amended by striking subsection (d) and inserting the following:
  ``(d) Definitions.--In this section:
          ``(1) Document-making implement.--The term `document-making 
        implement' means any implement, impression, electronic device, 
        or computer hardware or software, that is specifically 
        configured or primarily used for making an identification 
        document, a false identification document, or another document-
        making implement.
          ``(2) Identification document.--The term `identification 
        document' means a document made or 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 which, when completed with information concerning 
        a particular individual, is of a type intended or commonly 
        accepted for the purpose of identification of individuals.
          ``(3) Means of identification.--The term `means of 
        identification' means any name or number that may be used, 
        alone or in conjunction with any other information, to identify 
        a specific individual, including any--
                  ``(A) name, social security number, date of birth, 
                official State or government issued driver's license or 
                identification number, alien registration number, 
                government passport number, employer or taxpayer 
                identification number;
                  ``(B) unique biometric data, such as fingerprint, 
                voice print, retina or iris image, or other unique 
                physical representation;
                  ``(C) unique electronic identification number, 
                address, or routing code; or
                  ``(D) telecommunication identifying information or 
                access device (as defined in section 1029(e)).
          ``(4) Personal identification card.--The term `personal 
        identification card' means an identification document issued by 
        a State or local government solely for the purpose of 
        identification.
          ``(5) Produce.--The term `produce' includes alter, 
        authenticate, or assemble.
          ``(6) State.--The term `State' includes any State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and any other commonwealth, possession, or 
        territory of the United States.''.
  (e) Attempt and Conspiracy.--Section 1028 of title 18, United States 
Code, is amended by adding at the end the following:
  ``(f) Attempt and Conspiracy.--Any person who attempts or conspires 
to commit any offense under this section shall be subject to the same 
penalties as those prescribedfor the offense, the commission of which 
was the object of the attempt or conspiracy.''.
  (f) Rule of Construction.--Section 1028 of title 18, United States 
Code, is amended by adding at the end the following:
  ``(g) Rule of Construction.--For purpose of subsection (a)(7), a 
single identification document or false identification document that 
contains 1 or more means of identification shall be construed to be 1 
means of identification.''.
  (g) Conforming Amendments.--Chapter 47 of title 18, United States 
Code, is amended--
          (1) in section 1028, by striking ``or attempts to do so,'';
          (2) in the heading for section 1028, by adding ``and 
        information'' at the end; and
          (3) in the analysis for the chapter, in the item relating to 
        section 1028, by adding ``and information'' at the end.

SEC. 3. RESTITUTION.

  Section 3663A of title 18, United States Code, is amended--
          (1) in subsection (c)(1)(A)--
                  (A) in clause (ii), by striking ``or'' at the end;
                  (B) in clause (iii), by striking ``and'' at the end 
                and inserting ``or''; and
                  (C) by adding at the end the following:
                          ``(iv) an offense described in section 1028 
                        (relating to fraud and related activity in 
                        connection with means of identification or 
                        identification documents); and''; and
          (2) by adding at the end the following:
  ``(e) Fraud and Related Activity in Connection With Identification 
Documents and Information.--Making restitution to a victim under this 
section for an offense described in section 1028 (relating to fraud and 
related activity in connection with means of identification or 
identification documents) may include payment for any costs, including 
attorney fees, incurred by the victim, including any costs incurred--
          ``(1) in clearing the credit history or credit rating of the 
        victim; or
          ``(2) in connection with any civil or administrative 
        proceeding to satisfy any debt, lien, or other obligation of 
        the victim arising as a result of the actions of the 
        defendant.''.

SEC. 4. AMENDMENT OF FEDERAL SENTENCING GUIDELINES FOR OFFENSES UNDER 
                    SECTION 1028.

  (a) In General.--Pursuant to its authority under section 994(p) of 
title 28, United States Code, the United States Sentencing Commission 
shall review and amend the Federal sentencing guidelines and the policy 
statements of the Commission, as appropriate, to provide an appropriate 
penalty for each offense under section 1028 of title 18, United States 
Code, as amended by this Act.
  (b) Factors for Consideration.--In carrying out subsection (a), the 
United States Sentencing Commission shall consider, with respect to 
each offense described in subsection (a)--
          (1) the extent to which the number of victims (as defined in 
        section 3663A(a) of title 18, United States Code) involved in 
        the offense, including harm to reputation, inconvenience, and 
        other difficulties resulting from the offense, is an adequate 
        measure for establishing penalties under the Federal sentencing 
        guidelines;
          (2) the number of means of identification, identification 
        documents, or false identification documents (as those terms 
        are defined in section 1028(d) of title 18, United States Code, 
        as amended by this Act) involved in the offense, is an adequate 
        measure for establishing penalties under the Federal sentencing 
        guidelines;
          (3) the extent to which the value of the loss to any 
        individual caused by the offense is an adequate measure for 
        establishing penalties under the Federal sentencing guidelines;
          (4) the range of conduct covered by the offense;
          (5) the extent to which sentencing enhancements within the 
        Federal sentencing guidelines and the court's authority to 
        sentence above the applicable guideline range are adequate to 
        ensure punishment at or near the maximum penalty for the most 
        egregious conduct covered by the offense;
          (6) the extent to which Federal sentencing guidelines 
        sentences for the offense have been constrained by statutory 
        maximum penalties;
          (7) the extent to which Federal sentencing guidelines for the 
        offense adequately achieve the purposes of sentencing set forth 
        in section 3553(a)(2) of title 18, United States Code; and
          (8) any other factor that the United States Sentencing 
        Commission considers to be appropriate.

SEC. 5. CENTRALIZED COMPLAINT AND CONSUMER EDUCATION SERVICE FOR 
                    VICTIMS OF IDENTITY THEFT.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Federal Trade Commission shall establish procedures to--
          (1) log and acknowledge the receipt of complaints by 
        individuals who certify that they have a reasonable belief that 
        1 or more of their means of identification (as defined in 
        section 1028 of title 18, United States Code, as amended by 
        this Act) have been assumed, stolen, or otherwise unlawfully 
        acquired in violation of section 1028 of title 18, United 
        States Code, as amended by this Act;
          (2) provide informational materials to individuals described 
        in paragraph (1); and
          (3) refer complaints described in paragraph (1) to 
        appropriate entities, which may include referral to--
                  (A) the 3 major national consumer reporting agencies; 
                and
                  (B) appropriate law enforcement agencies for 
                potential law enforcement action.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 6. TECHNICAL AMENDMENTS TO TITLE 18, UNITED STATES CODE.

  (a) Technical Correction Relating to Criminal Forfeiture 
Procedures.--Section 982(b)(1) of title 18, United States Code, is 
amended to read as follows: ``(1) The forfeiture of property under this 
section, including any seizure and disposition of the property and any 
related judicial or administrative proceeding, shall be governed by the 
provisions of section 413 (other than subsection (d) of that section) 
of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 
U.S.C. 853).''.
  (b) Economic Espionage and Theft of Trade Secrets as Predicate 
Offenses for Wire Interception.--Section 2516(1)(a) of title 18, United 
States Code, is amended by inserting ``chapter 90 (relating to 
protection of trade secrets),'' after ``to espionage),''.

                     I. PURPOSE OF THE LEGISLATION

    S. 512, as reported by the Committee, amends chapter 47 of 
title 18 of the United States Code, relating to identity theft 
and assumption. The bill has two primary purposes. First, to 
extend 18 U.S.C. 1028, which criminalizes fraud in connection 
with identification documents, to cover the unlawful transfer 
and use of identity information. Second, to recognize the 
individual victims of identity theft crimes, and establish 
their right to restitution to include all costs related to 
regaining good credit or reputation. The bill also establishes 
a centralized complaint and education service at the Federal 
Trade Commission.

                  II. LEGISLATIVE HISTORY OF THE BILL

                                Summary

    On March 21, 1997, Senator Jon Kyl (R-Az) introduced S. 
512, ``The Identity Theft and Assumption Deterrence Act''. S. 
512 was referred to the Committee on the Judiciary. The bill 
criminalized the theft of identity information and set out 
restitution provisions for individual victims of identity 
theft. S. 512 was referred to the Subcommittee on Technology, 
Terrorism, and Government Information, of which Senator Kyl is 
Chairman, on March 29, 1998, and on May 20, 1998, the 
Subcommittee held a legislative hearing on the bill. On June 
12, 1998, an amendment in the nature of a substitute of S. 512 
was polled out of subcommittee with unanimous consent. Original 
cosponsors to S. 512 were Senators Kyl, Leahy, Hatch, 
Feinstein, DeWine, Faircloth, Harkin, D'Amato, Grassley and 
Abraham. The amended substitute was reported out of the full 
committee by unanimous consent on July 9, 1998.

        Amendment of Title 18, United States Code, Section 1028

    One of the key decisions of the Committee was to write S. 
512 to amend current criminal code (18 U.S.C. 1028), rather 
than creating a new section 1036 in the criminal code as 
proposed in S. 512 as introduced. The reasoning was as follows: 
this bill makes fraud in connection with identification 
information a crime. Under 18 U.S.C. 1028, only fraud in 
connection with identification documents is a crime. According 
to the 1982 House report accompanying the creation of section 
1028, a major purpose of this section is to criminalize 
offenses involving Federal identification documents used ``to 
support the creation of a new identity''. (House Conference 
Report No. 97-975, Dec. 17, 1982). Such offenses were found by 
an Attorney General report to facilitate drug trafficking, 
alien smuggling, credit card fraud, and unlawful flight from 
prosecution. (House Conference Report No. 97-975, Dec. 17, 
1982). Today, criminals do not necessarily need a document to 
assume an identity; often they just need the information itself 
to facilitate these types of crimes. By amending section 1028, 
this statute can keep pace with criminals' technological 
advances.
    In addition, an amended section 1028 (rather than the 
originally proposed new section 1036) eliminates the need for 
investigators and prosecutors to distinguish between identity 
takeover (S. 512) and false identification (S. 512 and section 
1028). The Committee believes that an amended section 1028 will 
prove both more useful and efficient for prosecutors than a 
separate new offense.
    The Committee also recommends enhanced penalties for 
aggravating circumstances often associated with identity theft 
crimes and a revised attempt and conspiracy section. 
Potentially costly provisions which were not shown to provide 
direct solutions for law enforcement or victims of identity 
theft were deleted, while real time relief for victims by way 
of a centralized complaint and education service at the Federal 
Trade Commission was added. In addition, the original bill's 
sentencing enhancements were changed to a directive to the 
Sentencing Commission to consider the nature and extent of the 
criminal activity involved in sentencing guidelines for all 
crimes listed in section 1028.

                     Legislative Hearing on S. 512

    The Subcommittee met on May 20, 1998, for a legislative 
hearing on S. 512. Testimony was received from the U.S. Secret 
Service, and the Federal Trade Commission, and two victim 
advocates. All witnesses stated that identity theft was a 
proliferating problem which crossed State lines and thus 
required Federal action.
    The U.S. Secret Service testified that law enforcement is 
currently frustrated that the unlawful use of personal 
information is not a crime since identity theft is often 
perpetrated by organized criminals who know these crimes can be 
committed with relative impunity.
    The Federal Trade Commission testified that the identity 
theft victims ``suffer real harm'', with the effect of the 
theft being ``significant and long-lasting''. The ``real harm'' 
is exacerbated because consumer victims have difficulty 
obtaining help from law enforcement since the law does not 
recognize these individuals as victims. S. 512 rectifies these 
problems by recognizingconsumer victims as crime victims and 
providing for restitution and recovery of incurred costs.
    Two victim advocates also testified. The first witness, 
Arizona factory worker Bob Hartle, testified that the felon who 
stole his identity actually taunted him over the phone, stating 
that he would continue to pose as Hartle for as long as he 
wanted since using his identity was not a crime. This criminal 
caused Hartle to suffer over $100,000 of credit card debt, and 
bought homes and motorcycles in Hartle's name before filing for 
bankruptcy, also in Hartle's name.
    Mari Frank, a California attorney and victim, has helped 
hundreds of identity theft victims. She testified that because 
identity crimes occur across State lines, a Federal law making 
identity theft a crime is essential. Frank stated that S. 512 
enables law enforcement to investigate these cases and 
encourages States to follow suit. In addition, she testified 
that provisions for restitution and a Federal complaint center 
provide practical and fair help to victims of identity theft.

                            III. BACKGROUND

    In July 1996, Arizona became the first State to pass 
legislation making identity theft a felony, punishable with 
imprisonment of 1\1/2\ years, plus restitution and a fine of 
not more than $150,000. (As of February 1998, 142 
investigations cases forwarded by Arizona law enforcement to 
State prosecutors resulted in 89 court cases filed. As of May 
1998, in Maricopa County alone, where Phoenix is located, 105 
identity thieves had pled guilty or been convicted.) Later in 
1997, California became the second State to pass identity theft 
legislation, effective in January 1998. Identity theft is a 
misdemeanor under the California statute, and limited to 
identity crimes connected to financial crimes such as credit 
card fraud.
    S. 512 recognizes that Federal action is required to 
address identity theft to deter its proliferation. Financial 
crimes involving the misappropriation of individuals' 
identifying information such as names, birth dates, and Social 
Security numbers account for 95 percent of the financial crimes 
arrests made by the U.S. Secret Service last year. The Secret 
Service alone reported that they made nearly 9,500 arrests for 
such crimes in 1997 amounting to $745 million in losses to 
individual victims and financial institutions. These losses 
have nearly doubled in the last 2 years. In addition, the U.S. 
Postal Inspectors and the Secret Service report that their 
investigations indicate that increasingly criminals involved 
with identity theft are part of international criminal 
syndicates committing financial, drug-related, immigration and 
violent crimes.
    Anecdotal information shows that the results of the theft 
of identification information can be devastating for the 
victims. The fortunate victims are successful in clearing their 
credit or good name by expending extensive time or money. 
Victims who have had their identities misappropriated by 
criminals who commit crimes in their names tend not to be so 
fortunate, with criminal records remaining intact which cannot 
be expunged because the law currently recognizes neither the 
victim nor the crime. S. 512 does both.
    On May 31, 1998, the General Accounting Office (GAO) 
released a briefing report on issues relating to identity fraud 
entitled ``Identity Fraud: Information on Prevalence, Cost, and 
Internet Impact is Limited'' (GGD-98-100BR, May 1998). The 
report's findings support the conclusion that identity theft 
crimes are a growing problem causing substantial harm to 
victims. The report also found that 18 U.S.C. 1028 (which S. 
512 amends) appears to be ``closely related to identity fraud'' 
because it addresses fraud in connection with identification 
documents.
    The GAO report was completed at the request of Senator 
Charles Grassley, Chairman, Special Committee on Aging; 
Representative Barbara Kennelly, Ranking Minority Member, 
Subcommittee on Social Security, Committee on Ways and Means; 
and Representative Gerald Kleczka. The report acknowledges that 
there exists no clear definition of identity fraud, but does 
explain the nature of identity fraud. (This Senate report uses 
the terms ``identity fraud'' and ``identity theft'' 
interchangeably).
    Generally, identity fraud involves ``stealing'' another 
person's personal identifying information, e.g., Social 
Security number, date of birth, and mother's maiden name. 
Criminals use such information to fraudulently establish 
credit, run up debt, or to take over existing financial 
accounts. The methods used to obtain personal identifying 
information can range from basic street theft to sophisticated, 
organized crime schemes involving the use of computerized 
databases or the bribing of employees with access to personal 
information on customer or personnel records. (GGD-98-100BR, 
May 1998 at 1).
    Other findings of the report included:
    In 1995, 93 percent of arrests made by the U.S. Secret 
Service Financial Crimes Division involved identity theft. In 
1996 and 1997, 94 percent of financial crimes arrests involved 
identity theft. (GGD-98-100BR, May 1998 at 29).
    The U.S. Secret Service stated that actual losses to 
individuals and financial institutions which the Secret Service 
had tracked involving identity fraud totaled $442 million in 
fiscal year 1995, $450 million in fiscal year 1996, and $745 
million in fiscal year 1997. (GGD-98-100BR, May 1998 at 29).
    The Social Security Administration's Office of the 
Inspector General has stated that Social Security number misuse 
in connection with program fraud increased from 305 in fiscal 
year 1996 to 1,153 in fiscal year 1997. (GGD-98-100BR, May 1998 
at 31).
    Postal Inspection investigations show that identity fraud 
is perpetrated by organized crime syndicates, especially to 
support drug trafficking, and has a nationwide scope. (GGD-98-
100BR, May 1998 at 35).
    Trans Union Corporation, one of the three major national 
credit bureaus, states that two-thirds of its consumer 
inquiries to its fraud victim department involve identity 
fraud.Moreover, such inquiries have increased from an average 
of less than 3,000 inquiries per month in 1992 to over 43,000 a month 
in 1997. (GGD-98-100BR, May 1998 at 41).
    VISA U.S.A., Inc., and MasterCard International, Inc. both 
stated that overall fraud losses from their member banks are in 
the hundreds of millions of dollars annually. (GGD-98-100BR, 
May 1998 at 42-45).
    MasterCard stated that dollar losses relating to identity 
fraud represented about 96 percent of its member banks' overall 
fraud losses of $407 million in 1997. (GGD-98-100BR, May 1998) 
at 45.
    On an individual level, the ``human'' cost of identity 
fraud can be quite substantial. These costs include emotional 
costs, as well as various financial and/or opportunity costs. 
For example, the victims may be unable to obtain a job, 
purchase a car, or qualify for a mortgage. (GGD-98-100BR, May 
1998) at 4.
    While no specific data exists, anecdotal evidence suggests 
that Internet growth increases opportunities for criminal 
activity. (GGD-98-100BR, May 1998) at 4.
    When S. 512 was polled out of the Subcommittee by unanimous 
consent on June 12, the bill was supported by interested 
entities in both the executive branch and the private sector, 
including: Department of Justice, Federal Bureau of 
Investigation, Federal Trade Commission, U.S. Postal 
Inspectors, American Bankers Association, Associated Credit 
Bureaus, VISA and MasterCard, PrivacyRights Clearinghouse, and 
the U.S. Public Interest Research Group.

                      IV. ADMINISTRATION POSITION

    In testimony before the Subcommittee on Technology, 
Terrorism, and Government Information, the U.S. Secret Service 
voiced strong support for identity theft legislation. The 
Federal Trade Commission expressly supported S. 512 through 
testimony as well. The U.S. Postal Inspectors stated their 
support in a letter to the Subcommittee's Chairman, Senator Jon 
Kyl, dated May 19, 1998. Both the Federal Bureau of 
Investigation and the Treasury Department informally support S. 
512.
    Through a letter submitted to the Attorney General on May 
5, 1998, Chairman Kyl requested formal comments on the 
Subcommittee's first redraft of the bill as introduced. In a 
June 24, 1998, letter to Chairman Kyl, Acting Assistant 
Attorney General L. Anthony Sutin stated the following:

          The Department supports the objective of the bill and 
        its timely recognition of the burgeoning commercial 
        exchange of financial and other personal information 
        and the concomitant increase in opportunities to 
        misappropriate that information for various illicit 
        purposes. However, while we support the goals of S. 
        512, we believe that the bill is in need of refinements 
        to address several problems.

    The Subcommittee worked with the Department of Justice and 
resolved all outstanding concerns prior to receiving the 
Department's formal letter, including the language of the 
``prohibited conduct'', ``conspiracy'', ``forfeiture'' 
sections, as well as the directives to the sentencing 
commission to revise sentencing guidelines' considerations in 
section 1028 cases.

                             V. CONCLUSION

    S. 512, as reported, will fulfill its primary purposes of 
criminalizing the theft and misuse of personal information and 
providing legal recognition of individual victims. Identity 
thieves will no longer be able to act with impunity, and the 
law will have an unquantifiable value as a deterrent. Enhanced 
penalties and a requirement that the Sentencing Commission 
review their current sentencing guidelines to consider the 
nature and extent of the criminal activity, along with 
financial loss already factored into the guidelines, should 
result in a more equitable sentencing guideline for section 
1028 crimes. Taken as a whole, S. 512's amendment to section 
1028 will help this section keep pace with criminals' 
technological advances in committing identity theft crimes.
    Federal legislation alone cannot eradicate identity theft. 
The Committee strongly encourages State and local governments 
and the private sector to complement the Federal role in this 
area with appropriate preventive and enforcement measures. The 
Committee also encourages individuals to take reasonable 
measures to prevent becoming a victim of identity theft.

                    VI. SECTION-BY-SECTION ANALYSIS

Section 1

    Sets forth the title, ``Identity Theft and Assumption 
Deterrence Act of 1998''.

Section 2

    (a) Establishment of offense.--S. 512 adds new section 
(a)(7) at the end of the prohibited conduct section in 18 
U.S.C. Sec. 1028 as follows:

          Whoever, in a circumstance described in subsection 
        (c) of this section--(7) knowingly transfers or uses, 
        without lawful authority, a means of identification of 
        another person with intent to commit or otherwise 
        promote, carry on, or facilitate any unlawful activity 
        that constitutes a violation of Federal law, or that 
        constitutes a felony under applicable State or local 
        law.

    Section (a)(7) criminalizes the knowing transfer or use of 
one or more means of identification with the intent that any of 
them be used to violate any Federal law or any felony under 
State or local law. This provision specifically excludes State 
or local misdemeanor crimes as predicate offenses.
    (b)(1) Fifteen-year penalty.--Under the S. 512 provision, 
defendants are subject to a fine and a maximum penalty of 15 
years if the transfer or use of the means of identification 
occurs during any one year period and the value aggregated as a 
result of the offense is in the amount of $1,000 or more, 
ensuring that only the more serious identity theft crimes are 
subject to the 15-year penalty.
    (b)(2) Three-year penalty.--Identity theft crimes involving 
the use or transfer of a means of identification (but not 
subject to the 15-year penalty) are subject to a maximum of a 
fine and 3 years imprisonment, as currently listed under 
section 1028(b)(2).
    Similarities in the nature and method of false document and 
false information crimes makes use of same 3-year and 
misdemeanor penalties reasonable. An added advantage of 
incorporating identity information crimes into the penalties 
set out in section 1028 is that such inclusion automatically 
makes identity information crimes subject to the exclusion 
(section 212(a)(2)) and deportation (section 237(a)(2)) 
provisions of the Immigration and Nationality Act.
    In addition, criminal forfeiture is available for any 
personal property used or intended to be used to commit 
offenses under section 1028.
    (b) (3) and (4). Enhanced penalties.--In 1996, section 
1028(b) (3) and (4) were added to section 1028 providing 
enhanced penalties of up to 20 years if fraudulent documents 
are used to facilitate a drug-trafficking crime, and up to 25 
years if the offense is used to facilitate an act of 
international terrorism. This bill enhances penalties against 
recidivists (20-year enhancement) and those who commit violent 
crime felonies in conjunction with a section 1028 violation 
(25-year enhancement).
    The S. 512 language ensuring that recidivists are subject 
to the enhanced penalty of 20 years makes clear that the 
holding in U.S. v. Deal, 508 U.S. 129, does not apply to 
section 1028 offenses. Deal held that a second (or more) 
finding of guilt arising out of a single proceeding was 
sufficient to trigger enhanced penalties. (The law challenged 
in Deal required an enhanced penalty in a case of a second or 
subsequent conviction.) By contrast, S. 512 states that only 
those defendants who have had a prior final judgment of 
conviction entered against them under section 1028 will receive 
the enhanced penalty.
    (c). Circumstances.--Section 1028 currently provides that 
document fraud is only a Federal crime when the production, 
transfer, or possession is in or affects interstate or foreign 
commerce, or is transported in the mails. S. 512 adds the 
``use'' of a means of identification to the circumstances where 
section 1028 applies.
    (d). Definitions.--Section 1028 already provides 
definitions for the terms ``identification document'', 
``produce'', ``document-making implement'', ``personal 
identification card'' and ``State''. S. 512 adds a definition 
for ``means of identification'' and modifies ``document-making 
implement'' to include computers specifically configured or 
primarily used to commit identity crimes. The definition of 
``means of identification'' is:

          (d)(4). Means of identification.--The term ``means of 
        identification'' means any name or number that may be 
        used, alone or in conjunction with any other 
        information, to assume the identity of a specific 
        individual, including any--
                  (A) name, social security number, date of 
                birth, official State or government issued 
                driver's license or identification number, 
                alien registration number, government passport 
                number, employer or taxpayer identification 
                number;
                  (B) unique biometric data, such as 
                fingerprint, voice print, retina or iris image, 
                or other unique physical representation;
                  (C) unique electronic identification number, 
                address, or routing code; or
                  (D) telecommunication identifying information 
                or access device (as defined in section 
                1029(e)).

    ``Means of identification'' is a core definition in this 
bill, intended to capture the varieties of individual 
identification information technologically feasible which can 
be compromised and criminally transferred or used. The 
definition is intended to incorporate other means of 
identification which may be developed in the future, but are 
not currently available.
    (e). Attempt and conspiracy.--S. 512 modifies the existing 
penalty in section 1028 for attempts and adds a penalty for 
conspiracies. Attempts and conspiracies are subject to the same 
penalties as those prescribed for the offense since the 
fortuity that the crime was not completed despite the 
defendant's efforts to do so should not benefit the defendant. 
The new provision is practically identical to 21 U.S.C. 846.
    (f). Conforming amendments.--This provision amends the 
title of section 1028 to conform to the addition of 
information-based crimes by this bill. Section 1028's title 
shall read ``Fraud and related activity in connection with 
identification documents and information''.
    (g). Rule of construction.--This provision seeks to clarify 
that each means of identification in any one identification or 
fake identification document can not be treated as separate 
offenses under (a)(7). Without the clarification, it would be 
possible to prosecute offenses under the new (a)(7) with 
multiple counts. That option is not currently available under 
(a) (1)-(6), which would only permit (at maximum) one count per 
document.

Section 3

    Restitution.--This provision legally acknowledges victims 
of identity theft by adding to section 1028 a requirement that 
victims who have suffered a pecuniary loss are entitled to 
mandatory restitution under 18 U.S.C. 3663A. The section makes 
clear that in determining restitution, any costs and attorney 
fees should be included. Specifically enumerated costs include 
those incurred for clearing credit history or rating and those 
costs in connection withcivil or administrative proceedings to 
satisfy any debt, lien, or other obligations of the victim arising from 
a defendant's criminal activity. Note: the definition of ``victim'' is 
set out in 18 U.S.C. 3663, which means ``a person directly or 
proximately harmed as a result of the commission of an offense for 
which restitution may be ordered''.

Section 4

    Amendment of Federal sentencing guidelines for offenses 
under section 1028. This provision requires the Federal 
Sentencing Commission to review and amend, where appropriate, 
the Federal sentencing guidelines and policy statements of the 
Commission to provide for appropriate penalties for each 
offense under section 1028. In order to promote fairness and 
proportionality in sentencing throughout section 1028, the 
Sentencing Commission is to review the guidelines which apply 
to all prohibited conduct under section 1028.
    This directive also requires the Sentencing Commission to 
consider certain factors when establishing penalties for 
section 1028 offenses. Many identity crimes include multiple 
victims and multiple numbers of means of identification or 
false identification. S. 512 requires the Sentencing Commission 
to take into consideration the number of victims and the number 
of means of identification, identification or false 
identification documents involved in the offense. In 
considering the number of victims (as defined in 18 U.S.C. 
3663A(a)) involved in the offense, the Commission is to also 
consider the extent that ``harm to reputation, inconvenience, 
and other difficulties resulting from the offense, is an 
adequate measure for establishing penalties''.

Section 5

    Centralized complaint and consumer education service for 
victims of identity theft. This provision requires the Federal 
Trade Commission to formalize their current identity theft 
complaint and education service by establishing procedures 
within 1 year to set up a centralized complaint and consumer 
education service for victims of identity theft. The purpose of 
the service is to provide a Federal, central source of 
information for citizens who certify that they have a 
reasonable belief that their identity has been assumed or used 
without lawful authority. The center is to log and acknowledge 
the receipt of complaints, provide victims with informational 
materials, and then refer complaints to the three major 
national consumer reporting agencies as well as the appropriate 
law enforcement agencies for potential action. An authorization 
for necessary appropriations is included.

Section 6

    Technical amendments to title 18, United States Code. The 
first amendment corrects a technical problem identified by the 
Department of Justice in enforcing the forfeiture provisions 
set out in 18 U.S.C. 982(b)(1), some of which currently permit 
forfeiture but fail to provide a procedure to seek the 
forfeiture. The Department considers that the provisions of 18 
U.S.C. 982(b)(1) which do not have an attending procedure are, 
for practical purposes, unenforceable. This amendment states 
that all of the forfeiture provisions listed under section 
982(b)(1) are to follow the procedures set out in section 413 
of the Comprehensive Drug Abuse Prevention and Control Act of 
1970 (21 U.S.C. 853).
    The second amendment amends 18 U.S.C. 2516(1)(a) by 
inserting ``chapter 90 (relating to protection of trade 
secrets)'' after, ``chapter 37 (relating to espionage)''. The 
purpose of this amendment is to correct a drafting error in the 
Economic Espionage Act, whereby economic espionage and theft of 
trade secrets are not enumerated in section 2516 as predicate 
offenses for obtaining an electronic interception order. By 
amending the section, the Committee makes clear that economic 
espionage and theft of trade secrets are predicate offenses 
upon which a title III application may be based, as originally 
intended. (See House Conference Report 104-879, Jan. 2, 1997 
accompanying ``The Economic Espionage Act of 1996'' (H.R. 
3723).

                           VII. COST ESTIMATE

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 404 of the 
Congressional Budget Act of 1974, the committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 14, 1998.
Hon. Orrin G. Hatch,
Chairman, Committee on the Judiciary,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 512, the Identity 
Theft and Assumption Deterrence Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark Hadley 
and Mark Grabowicz.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

S. 512--Identity Theft and Assumption Deterrence Act of 1998

    Summary: S. 512 would establish a new federal crime 
relating to fraud through the use of identification information 
and would direct the Federal Trade Commission (FTC) to provide 
a centralized complaint and consumer education service for 
victims of identity theft. The bill would authorize such sums 
as may be necessary for providing that service. Based on 
information from FTC, CBO estimates that implementing the bill 
would cost $17 million over the 1999-2003 period, assuming 
appropriation of the necessary amounts.
    Because enactment of S. 512 could affect direct spending 
and receipts, pay-as-you-go procedures would apply to the bill. 
However, CBO estimates that any impact on direct spending and 
receipts would not be significant.
    S. 512 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: For purposes of 
this estimate, CBO assumes S. 512 will be enacted by the end of 
fiscal year 1998, and that the estimated amounts necessary to 
implement the bill will be appropriated by the start of each 
fiscal year. Outlays have been estimated on the basis of 
historical spending patterns for FTC and information provided 
by the agency. The estimated budgetary impact of S. 512 is 
shown in the following table. The costs of this legislation 
fall within budget function 370 (commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal years in millions of dollars--      
                                                          ------------------------------------------------------
                                                              1999       2000       2001       2002       2003  
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Estimated Authorization Level............................          2          3          4          4          4
Estimated Outlays........................................          2          3          4          4          4
----------------------------------------------------------------------------------------------------------------

    In addition to the discretionary spending shown in the 
table, S. 512 could lead to increases in both revenues and 
direct spending from provisions relating to criminal fines and 
asset forfeiture; CBO estimates that any such increases would 
be less than $500,000 in each year.
    Basis of estimate: The vast majority of the estimated costs 
are for personnel to log complaints by victims of identity 
theft, provide information to such victims, and refer 
complaints to the appropriate authorities. Based on information 
from the FTC, CBO estimates that the agency will receive about 
1,000 calls per day on average, resulting in an annual cost of 
$3 million to $4 million.
    S. 512 also would establish a new federal crime related to 
fraud through the use of identification information. Violators 
would be subject to imprisonment, forfeiture of personal 
property, and fines. As a result, the federal government would 
be able to pursue cases that it otherwise would not be able to 
prosecute. CBO expects that the government probably would not 
pursue many such cases, so we estimate that any increase in 
federal costs for law enforcement, court proceedings, or prison 
operations would not be significant. Any such additional costs 
would be subject to the availability of appropriated funds.
    Because those prosecuted and convicted under S. 512 could 
be subject to criminal fines, the federal government might 
collect additional fines if the bill is enacted. Collections of 
such fines are recorded in the budget as government receipts 
(revenues), which are deposited in the Crime Victims Fund and 
spent in the following year. CBO expects that any additional 
collections from enacting S. 512 would be negligible, however, 
because of the small number of cases likely to be involved. 
Because any increase in direct spending would equal the fines 
collected with a one-year lag, the additional direct spending 
also would be negligible.
    Enacting S. 512 also could lead to more assets being seized 
and forfeited to the United States, but we estimate that any 
such increase would be less than $500,000 annually in value. 
Proceeds from the sale of any such assets would be deposited as 
revenues into the assets forfeiture fund of the Department of 
Justice and spent out of that fund in the same year. Thus, the 
change in direct spending from the assets forfeiture fund would 
match any increase in revenues to that fund.
    Pay-as-you-go consideration: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act sets up pay-as-you-go 
procedures for legislation affecting direct spending our 
receipts. Enacting S. 512 could affect direct spending and 
receipts, but CBO estimates that any such effects would be less 
than $500,000 a year.
    Intergovernmental and private-sector impact: S. 512 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Mark Hadley and Mark Grabowicz.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                   VIII. REGULATORY IMPACT STATEMENT

    In compliance with paragraph 11(b)(1), rule XXVI of the 
Standing Rules of the Senate, the Committee, after due 
consideration, concludes that S. 512 will not have significant 
regulatory impact.

                 IX. ADDITIONAL VIEWS OF SENATOR LEAHY

    I am submitting additional views to the Committee Report on 
the Kyl-Leahy substitute to S. 512, because I want to highlight 
the significant privacy concerns implicated by the crime of 
identity theft.
    Protecting the privacy of our personal information is a 
challenge, especially in this information age. Every time we 
obtain or use a credit card, place a toll-free phone call, surf 
the Internet, get a driver's license or are featured in Who's 
Who, we are leaving virtual pieces of ourselves in the form of 
personal information, which can be used without our consent or 
even our knowledge. Too frequently, criminals are getting hold 
of this information and using the personal information of 
innocent individuals to carry out other crimes. Indeed, U.S. 
News & World Report has called identity theft ``a crime of the 
90's''.
    According to the recent GAO report on ``Identity Fraud,'' a 
myriad of methods are used to obtain personal identifying 
information. Such methods ``can range from basic street theft 
to sophisticated organized crime schemes involving the use of 
computerized databases or the bribing of employees access to 
computerized information on customer or personnel records.'' 
GAO Briefing Report, ``Identity Fraud: Information on 
Prevalence, Cost, and Internet Impact is Limited'' (GGD-98-
100BR, May 1998), at 1.
    The consequences for the victims of identity theft can be 
severe. They can have their credit ratings ruined and be unable 
to get credit cards, student loans, or mortgages. They can be 
hounded by creditors or collection agencies to repay debts they 
never incurred, but were obtained in their name, at their 
address, with their social security number or driver's license 
number. It can take months or even years, and agonizing effort, 
to clear their good names and correct their credit histories. I 
understand that, in some instances, victims of identity theft 
have even been arrested for crimes they never committed when 
the actual perpetrators provided law enforcement officials with 
assumed names.
    S. 512, as reported by the Committee, would provide 
important remedies for victims of identity fraud. Specifically, 
the bill would make clear that these victims are entitled to 
restitution, including payment for any costs and attorney's 
fees in clearing up their credit histories and having to engage 
in any civil or administrative proceedings to satisfy debts, 
liens or other obligations resulting from a defendant's theft 
of their identity. In addition, the bill would direct the 
Federal Trade Commission to keep track of consumer complaints 
of identity theft and provide information to victims of this 
crime on how to deal with its aftermath.
    This is an important bill on an issue that has caused harm 
to many Americans. It has come a long way from its original 
formulation, which would have made it an offense, subject to 15 
years'' imprisonment, to possess ``with intent to deceive'' 
identity information issued to another person. I was concerned 
that the scope of the proposed offense would have resulted in 
the federalization of the status offenses of underage teenagers 
using fake ID cards to gain entrance to bars or to buy 
cigarettes, or even the use of a borrowed ID card without any 
illegal purpose. This problem, and others, have been addressed 
in the Kyl-Leahy substitute, as reported out of the Committee, 
although there may be need to restrict the scope of the offense 
even further to ensure that it does not subject petty state 
offenses to federal felony liability.
    In addition, we made efforts to ensure that this bill did 
not inappropriately and inadvertently raise to the felony 
offense level other federal petty and misdemeanor crimes. 
Further refinements to the bill may have to be made during 
consideration by the full Senate to ensure that this is the 
case.
    I am glad that Senator Kyl and I were able to join forces 
to construct a substitute that punishes perpetrators of 
identity theft and helps victims of this crime to regain their 
privacy.

                                                     Patrick Leahy.
                       X. CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
S. 512, as reported, are shown as follows (existing law which 
would be omitted is enclosed in bold brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman type):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 18--CRIMES AND CRIMINAL PROCEDURE

           *       *       *       *       *       *       *


PART I--CRIMES

           *       *       *       *       *       *       *


CHAPTER 46--FOREFEITURE

           *       *       *       *       *       *       *


Sec. 982. Criminal Forfeiture

    (a)(1) The * * *

           *       *       *       *       *       *       *

    [(b)(1) Property subject to forfeiture under this section, 
any seizure and disposition thereof, and any administrative or 
judicial proceeding in relation thereto, shall be governed--
          [(A) in the case of a forfeiture under subsection 
        (a)(1) or (a)(6) of this section, by subsections (c) 
        and (e) through (p) of section 413 of the Comprehensive 
        Drug Abuse Prevention and Control Act of 1970 (21 
        U.S.C. 853); and
          [(B) in the case of a forfeiture under subsection 
        (a)(2) of this section, by subsections (b), (c), (e), 
        and (g) through (p) of section 413 of such Act.]
          (1) The forfeiture of property under this section, 
        including any seizure and disposition of the property 
        and any related judicial or administrative proceeding, 
        shall be governed by the provisions of section 413 
        (other than subsection (d) of that section) of the 
        Comprehensive Drug Abuse Prevention and Control Act of 
        1970 (21 U.S.C. 853).

           *       *       *       *       *       *       *


                 CHAPTER 47--FRAUD AND FALSE STATEMENTS

Sec.
[1008, 1009.  Repealed.]
1024.  Purchase or receipt of military, naval, or veteran's facilities 
          property.
1028.  Fraud and related activity in connection with identification 
          documents and information.

           *       *       *       *       *       *       *


Sec. 1028. Fraud and related activity in connection with identification 
                    documents and information

    (a) Whoever, in a circumstance described in subsection (c) 
of this section--
          (1) knowingly and without lawful authority produces 
        an identification document or a false identification 
        document;

           *       *       *       *       *       *       *

          (5) knowingly produces, transfers, or possesses a 
        document-making implement with the intent such 
        document-making implement will be used in the 
        production of a false identification document or 
        another document-making implement which will be so 
        used; [or]
          (6) knowingly possesses an identification document 
        that is or appears to be an identification document of 
        the United States which is stolen or produced without 
        lawful authority knowing that such document was stolen 
        or produced without such authority; or
          (7) knowingly possesses, transfers, or uses, without 
        lawful authority, a means of identification of another 
        person with the intent to commit, or otherwise promote, 
        carry on, or facilitate any unlawful activity that 
        constitutes a violation of Federal law, or that 
        constitutes a felony under any applicable State or 
        local law;
[or attempts to do so,] shall be punished as provided in 
subsection (b) of this section.
    (b) The punishment for an offense under subsection (a) of 
this section is--
          (1) except as provided in paragraphs (3) and (4), a 
        fine under this title or imprisonment for not more than 
        15 years, or both, if the offense is--
                  (A) the production or transfer of an 
                identification document or false identification 
                document that is or appears to be--
                          (i) an identification document issued 
                        by or under the authority of the United 
                        States; or
                          (ii) a birth certificate, or a 
                        driver's license or personal 
                        identification card;
                  (B) the production or transfer of more than 
                five identification documents or false 
                identification documents; [or]
                  (C) an offense under paragraph (5) of such 
                subsection; or
                  (D) an offense under paragraph (7) of such 
                subsection that involves the transfer, 
                possession, or use of 1 or more means of 
                identification if, as a result of the offense, 
                any individual committing the offense obtains 
                anything of value aggregating $1,000 or more 
                during any 1-year period;
          (2) except as provided in paragraphs (3) and (4), a 
        fine under this title or imprisonment for not more than 
        three years, or both, if the offense is--
                  (A) any other production [or transfer of an 
                identification document or] possession, 
                transfer, or use of a means of identification, 
                an identification document, or a false 
                identification document; or
                  (B) an offense under paragraph (3) of such 
                subsection;
          [(3) a fine under this title or imprisonment for not 
        more than 20 years, or both, if the offense is 
        committed to facilitate a drug trafficking crime (as 
        defined in section 929(a)(2) of this title);
          [(4) a fine under this title or imprisonment for not 
        more than 25 years, or both, if the offense is 
        committed to facilitate an act of international 
        terrorism (as defined in section 2331(1) of this 
        title); and]
          (3) a fine under this title or imprisonment for not 
        more than 20 years, or both, if the offense is 
        committed--
                  (A) to facilitate a drug trafficking crime 
                (as defined in section 929(a)(2)); or
                  (B) after a prior conviction under this 
                section becomes final;
          (4) a fine under this title or imprisonment for not 
        more than 25 years, or both, if the offense is 
        committed--
                  (A) to facilitate an act of international 
                terrorism (as defined in section 2331(1)); or
                  (B) in connection with a crime of violence 
                (as defined in section 924(c)(3));
                  (5) in the case of any offense under 
                subsection (a), forfeiture to the United States 
                of any personal property used or intended to be 
                used to commit the offense; and
          [(5)] a fine under this title or imprisonment for not 
        more than one year, or both, in any other case.
    (c) The circumstances referred to in subsection (a) of this 
section is that--

           *       *       *       *       *       *       *

          [(3) the production, transfer, or possession 
        prohibited by this section is in or affects interstate 
        or foreign commerce, or the identification document, 
        false identification document, or document-making 
        implement is transported in the mail in the course of 
        the production, transfer, or possession prohibited by 
        this section.]
          (3) either--
                  (A) the production, transfer possession, or 
                use prohibited by this section is in or affects 
                interstate or foreign commerce; or
                  (B) the means of identification, 
                identification document, false identification 
                document, or document-making implement is 
                transported in the mail in the course of the 
                production, transfer, possession, or use 
                prohibited by this section.
      [(d) As used in this section--
          [(1) the term ``identification document'' means a 
        document made or 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 which, when completed with information 
        concerning a particular individual, is of a type 
        intended or commonly accepted for the purpose of 
        identification of individuals;
          [(2) the term ``produce'' includes alter, 
        authenticate, or assemble;
          [(3) the term ``document-making implement'' means any 
        implement or impression specially designed or primarily 
        used for making an identification document, a false 
        identification document, or another document-making 
        implement;
          [(4) the term ``personal identification card'' means 
        an identification document issued by a State or local 
        government solely for the purpose of identification; 
        and
          [(5) the term ``State'' includes any State of the 
        United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any other 
        commonwealth, possession or territory of the United 
        States.]
    (d) Definitions.--In this section:
          (1) Document-making implement.--The term ``document-
        making implement'' means any implement, impression, 
        electronic device, or computer hardware or software, 
        that is specifically configured or primarily used for 
        making an identification document, a false 
        identification document, or another document-making 
        implement.
          (2) Identification document.--The term 
        ``identification document'' means a document made or 
        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 which, 
        when completed with information concerning a particular 
        individual, is of a type intended or commonly accepted 
        for the purpose of identification of individuals.
          (3) Means of identification.--The term ``means of 
        identification'' means any name or number that may be 
        used, along or in conjunction with any other 
        information, to identify a specific individual, 
        including any--
                 (A) name, social security number, date of 
                birth, official State or government issued 
                driver's license or identification number, 
                alien registration number, government passport 
                number, employer or taxpayer identification 
                number;
                  (B) unique biometric data, such as 
                fingerprint, voice print, retina or iris image, 
                or other unique physical representation;
                  (C) unique electronic identification number, 
                address, or touring code; or
                  (D) telecommunication identifying information 
                or access device (as defined in section 
                1029(e)).
          (4) Personal identification card.--The term 
        ``personal identification card'' means an 
        identification document issued by a State or local 
        government solely for the purpose of identification.
          (5) Produce.--The term ``produce'' includes alter, 
        authenticate, or assemble.
          (6) State.--The term ``State'' includes any State of 
        the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any other 
        commonwealth, possession, or territory of the United 
        States.
    (e) This section does not prohibit any lawfully authorized 
investigative, protective, or intelligence activity of a law 
enforcement agency of the United States, a State, or a 
political subdivision of a State, or of an intelligence agency 
of the United States, or any activity authorized under chapter 
224 of this title.
    (f) Attempt and Conspiracy.--Any person who attempts or 
conspires to commit any offense under this section shall be 
subject to the same penalties as those prescribed for the 
offense, the commission of which was the object of the attempt 
or conspiracy.
    (g) Rule of Construction.--For purpose of subsection 
(a)(7), a single identification document or false 
identification document that contains 1 or more means of 
identification shall be construed to be 1 means of 
identification.

           *       *       *       *       *       *       *


CHAPTER 119--WIRE INTERCEPTION AND INTERCEPTION OF ORAL COMMUNICATIONS

           *       *       *       *       *       *       *


Sec. 2516. Authorization for interception of wire, oral, or electronic 
                    communications

    (1) The Attorney * * *
    (a) any offense punishable by death or by imprisonment for 
more than one year under sections 2274 through 2277 of title 42 
of the United States Code (relating to the enforcement of the 
Atomic Energy Act of 1954), section 2284 of title 42 of the 
United States Code (relating to sabotage of nuclear facilities 
or fuel), or under the following chapters of this title: 
chapter 37 (relating to espionage), chapter 90 (relating to 
protection of trade secrets), chapter 105 (relating to 
sabotage), chapter 115 (relating to treason), chapter 102 
(relating to riots), chapter 65 (relating to malicious 
mischief), chapter 111 (relating to destruction of vessels), or 
chapter 81 (relating to piracy);

           *       *       *       *       *       *       *


PART II.--CRIMINAL PROCEDURE

           *       *       *       *       *       *       *


CHAPTER 232--MISCELLANEOUS SENTENCING PROVISIONS

           *       *       *       *       *       *       *


Sec. 3663A. Mandatory restitution to victims of certain crimes

           *       *       *       *       *       *       *


    (c)(1) This section shall apply in all sentencing 
proceedings for convictions of, or plea agreements relating to 
charges for, any offense--
          (A) that is--
                  (i) a crime of violence, as defined in 
                section 16;
                  (ii) an offense against property under this 
                title, including any offense committed by fraud 
                or deceit; [or]
                  (iii) an offense described in section 1365 
                (relating to tampering with consumer products); 
                [and] or
                  (iv) an offense described in section 1028 
                (relating to fraud and related activity in 
                connection with means of identification or 
                identification documents); and

           *       *       *       *       *       *       *

    (d) An order of restitution under this section shall be 
issued and enforced in accordance with section 3664.
    (e) Fraud and Related Activity in Connection With 
Identification Documents and Information.--Making restitution 
to a victim under this section for an offense described in 
section 1028 (relating to fraud and related activity in 
connection with means of identification or identification 
documents) may include payment for any costs, including 
attorney fees, incurred by the victim, including any costs 
incurred--
          (1) in clearing the credit history or credit rating 
        of the victim; or
          (2) in connection with any civil or administrative 
        proceeding to satisfy any debt, lien, or other 
        obligation of the victim arising as a result of the 
        actions of the defendant.