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105TH CONGRESS

H.R. 695 - The "SAFE" Bill


                               [DISCUSSION DRAFT]

                               SEPTEMBER 22, 1997

                               AMENDMENT TO HR 695
                           OFFERED BY MR. OXLEY OF OHIO

       [Oxley/Manton Amendment: decryption requirements and liability]

             (page & line nos. refer to Committee Print of 9/9/97)

	Page 4, strike lines 11 through 23 and insert the
following (and redesignate the succeeding sections accordingly):

¤2802. Domestic use of encryption products

   "(a) FREEDOM TO USE ENCRYPTION. --  Subject to subsection (b) and
Section 2804, it shall be lawful for any person to manufacture or sell in
interstate commerce in the United States, or to import into the United
States, any encryption product, regardless of the encryption algorithm
selected, encryption key length chosen, or medium used.

   "(b) DECRYPTION CAPABILITY REQUIREMENTS. -

	"(1) IN GENERAL. -- Except as provided in paragraph (2), beginning
   upon the effective date of the regulations issued under subsection
   (c), any encryption product manufactured or sold in interstate
   commerce, or imported into the United States, shall include
   features that permit immediate access (pursuant to appropriate
   judicial process) to the plaintext of communications or electronic
   information encrypted by such product without the knowledge or
   cooperation of the person using such product.

	"(2) EXCEPTIONS. -- The requirements under paragraph (1) shall not
   apply to an encryption product to the extent that --

	   "(A) the encryption product is used by a corporation,
      organization, or other legal entity that maintains policies that
      ensure law enforcement agencies have immediate access to the
      plaintext of communications or electronic information encrypted by
      such product the knowledge or cooperation of --

	   "(i)  a person using such product; or
	   "(ii) a person using a service provided by the corporation,
               organization, or other legal entities that utilizes such
               product:

	   "(B) the manufacturer of the encryption product formally agrees
      in advance to provide to the appropriate and duly authorized
      Federal, State, and local law enforcement agencies the technical
      information and assistance that ensure law enforcement agencies
      have immediate access to the plaintext of any communications or
      electronic information encrypted using the product without the
      knowledge or cooperation of the person using the product; or

	   "(C) the product was manufactured before January 1, 1999.

    "(c) IMPLEMENTATION. --

	"(1) CONTENT. -- The Attorney General, in consultation with the
   Secretary of Commerce, shall carry out a rulemaking proceeding to
   implement subsection (b).  The regulations issued under such
   rulemaking --

	  "(A) shall provide that ensuring access, by a third party, to
      the plaintext of an encrypted communication or electronic
      information (including by placing any key for an encryption
      product in escrow with any third party or any other sharing of
      private encryption keys) shall be sufficient to comply with the
      requirement under subsection (b)(1);

	  "(B) shall provide that no officer of the Federal Government or
      any State may require any particular decryption methodology
      (including a methodology described in subparagraph (A)) in order
      to comply with the requirements of subsection (b)(1);

	  "(C) may not have the effect of rendering inoperable, for its
      intended purposes, any encryption product manufactured before
      January 1, 1999; and

	  "(D) shall provide that no officer of the Federal Government or
      any State may disclose to any person, other than to a law
      enforcement authority, any information considered to be company
      proprietary or confidential by the manufacturer of the encryption
      product.

	"(2) TIMING AND PROCEDURE. -- The rulemaking proceeding under
    paragraph (1) --

	  "(A) shall be initiated within 90 days after the date of
      enactment of the Security and Freedom Through Encryption (SAFE)
      Act;

	  "(B) shall be completed within one year after such date of
      enactment; and

	  "(C) shall be conducted in accordance with section 553 of title
      5, United States Code and shall be subject to judicial review
      under chapter 7 of such title.

	"(3) EFFECTIVE DATE. -- The regulation issued under this
    subsection shall take effect on January 1, 1999.

  "(d) CRIMINAL PENALTY. --

	"(1) IN GENERAL.  -- Any person within the United States who
    manufactures, alters, sells, or knowingly imports into the United
    States any encryption product that does not comply with the
    requirements under subsection (b) shall be imprisoned for not more
    than 5 years, or fined in the amount set forth in this title, or
    both.

	"(2) PROTECTION OF MANUFACTURERS. -- A person who manufacturers an
    encryption product shall not be considered to have committed a
    violation under paragraph (1) if the encryption product fails to
    comply with requirements under subsection (b) (or the regulations
    issued under subsection (c) to implement such requirements) because
    the product was altered subsequent to manufacture by a person not
    under the control of the manufacturer.

"¤ 2803. Privacy Protection

	Page 6, line 2, strike the quotation marks and the last period and
insert the following new section:

"¤ 2805 Liability Limitations

	"No person shall be subject to civil or criminal liability for
providing access to the plaintext of an encrypted communication or an
encrypted electronic information to any law enforcement official or
authorized government entity, pursuant to judicial process.

	Page 3, after line 17, insert the following new paragraphs (and
redesignate the succeeding paragraphs accordingly):

	"(3) the term 'certificate or authority' means a person entrusted
   by one or more persons to create and assign public key certificates;

	"(4) the term 'public key certificates' means a certification of
   the determination of the origin of encrypted information through
   verification of a persons public key by identifying the unique
   characteristics of the key;

	"(5) [the term 'public key' means, for encryption products using
   more than one key for encryption and decryption, the key that is
   intended to be publicly known];

	"(6) the term 'communications' includes wire communications and
   electronic communications;

	"(7) the term 'electronic information' means any signs, signals,
   writing, images, sounds, data, or intelligence of any nature stored
   in whole or in part by a wire, radio, electromagnetic, photo
   electronic, or photo-optical system;

	"(8) the term 'plaintext' means, with respect to communications or
   electronic information, the form of the communications or information
   before it has been encrypted or, if encrypted, the form after it has
   been electronically transformed into its original form;

	"(9) the term 'encryption product' means any product, software, or
   technology that can be used to encrypt and decrypt communications or
   electronic information and any product, software, or technology with
   encryption capabilities;


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