text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Senior Citizens Against Marketing 
  Scams Act of 1993''.
  
  SEC. 2. FINDINGS AND DECLARATION.
  
      The Congress makes the following findings and declaration:
              (1) Unprecedented Federal law enforcement investigations 
          have uncovered a national network of illicit telemarketing 
          operations.
              (2) Most of the telemarketing industry is legitimate, 
          employing over 3,000,000 people through direct and indirect 
          means.
              (3) Illicit telemarketers, however, are an increasing 
          problem which victimizes our Nation's senior citizens in 
          disproportionate numbers.
              (4) Interstate telemarketing fraud has become a problem of 
          such magnitude that the resources of the Department of Justice 
          are not sufficient to ensure that there is adequate 
          investigation of, and protection from, such fraud.
              (5) Telemarketing differs from other sales activities in 
          that it can be carried out by sellers across State lines 
          without direct contact. Telemarketers can also be very mobile, 
          easily moving from State to State.
              (6) It is estimated that victims lose billions of dollars a 
          year as a result of telemarketing fraud.
              (7) Consequently, Congress should enact legislation that 
          will--
                      (A) enhance Federal law enforcement resources;
                      (B) ensure adequate punishment for telemarketing 
                  fraud; and
                      (C) educate the public.
  
  SEC. 3. ENHANCED PENALTIES FOR TELEMARKETING FRAUD.
  
      (a) Offense.--Part I of title 18, United States Code, is amended--
              (1) by redesignating chapter 113A as chapter 113B; and
              (2) by inserting after chapter 113 the following new 
          chapter:
  
                    ``CHAPTER 113A--TELEMARKETING FRAUD
  
  ``Sec.
  ``2325. Definition.
  ``2326. Enhanced penalties.
  ``2327. Restitution.
  ``Sec. 2325. Definition
      ``In this chapter, `telemarketing'--
              ``(1) means a plan, program, promotion, or campaign that is 
          conducted to induce--
                      ``(A) purchases of goods or services; or
                      ``(B) participation in a contest or sweepstakes,
          by use of 1 or more interstate telephone calls initiated either 
          by a person who is conducting the plan, program, promotion, or 
          campaign or by a prospective purchaser or contest or 
          sweepstakes participant; but
              ``(2) does not include the solicitation of sales through 
          the mailing of a catalog that--
                      ``(A) contains a written description or 
                  illustration of the goods or services offered for sale;
                      ``(B) includes the business address of the seller;
                      ``(C) includes multiple pages of written material 
                  or illustration; and
                      ``(D) has been issued not less frequently than once 
                  a year,
          if the person making the solicitation does not solicit 
          customers by telephone but only receives calls initiated by 
          customers in response to the catalog and during those calls 
          take orders without further solicitation.
  ``Sec. 2326. Enhanced penalties
      ``An offender that is convicted of an offense under 1028, 1029, 
  1341, 1342, 1343, or 1344 in connection with the conduct of 
  telemarketing--
              ``(1) may be imprisoned for a term of 5 years in addition 
          to any term of imprisonment imposed under any of those 
          sections, respectively; and
              ``(2) in the case of an offense under any of those sections 
          that--
                      ``(A) victimized 20 or more persons over the age of 
                  55; or
                      ``(B) targeted persons over the age of 55,
          may be imprisoned for a term of 10 years in addition to any 
          term of imprisonment imposed under any of those sections, 
          respectively.
  ``Sec. 2327. Restitution
      ``In sentencing an offender under section 2326, the court shall 
  order the offender to pay restitution to any victims and may order the 
  offender to pay restitution to others who sustained losses as a result 
  of the offender's fraudulent activity.''.
      (b) Technical Amendments.--
              (1) Part analysis.--The part analysis for part I of title 
          18, United States Code, is amended by striking the item 
          relating to chapter 113A and inserting the following:
  
  ``113A. Telemarketing fraud.................................       2325
  ``113B. Terrorism...........................................    2331''.
              (2) Chapter 113b.--The chapter heading for chapter 113B of 
          title 18, United States Code, as redesignated by subsection 
          (a)(1), is amended to read as follows:
  
                        ``CHAPTER 113B--TERRORISM''.
  
  SEC. 4. FORFEITURE OF FRAUD PROCEEDS.
  
      Section 982(a) of title 18, United States Code, is amended by 
  adding at the end the following new paragraph:
              ``(6) The Court, in sentencing an offender under section 
          2326, shall order that the offender forfeit to the United 
          States any real or personal property constituting or derived 
          from proceeds that the offender obtained directly or indirectly 
          as a result of the offense.''.
  
  SEC. 5. INCREASED PENALTIES FOR FRAUD AGAINST OLDER VICTIMS.
  
      (a) Review.--The United States Sentencing Commission shall review 
  and, if necessary, amend the sentencing guidelines to ensure that 
  victim related adjustments for fraud offenses against older victims 
  over the age of 55 are adequate.
      (b) Report.--Not later than 180 days after the date of enactment of 
  this Act, the Sentencing Commission shall report to Congress the result 
  of its review under subsection (a).
  
  SEC. 6. REWARDS FOR INFORMATION LEADING TO PROSECUTION AND CONVICTION.
  
      Section 3059 of title 18, United States Code, is amended by adding 
  at the end the following new subsection:
      ``(c)(1) In special circumstances and in the Attorney General's 
  sole discretion, the Attorney General may make a payment of up to 
  $10,000 to a person who furnishes information unknown to the Government 
  relating to a possible prosecution under section 2325 which results in 
  a conviction.
      ``(2) A person is not eligible for a payment under paragraph (1) 
  if--
              ``(A) the person is a current or former officer or employee 
          of a Federal, State, or local government agency or 
          instrumentality who furnishes information discovered or 
          gathered in the course of government employment;
              ``(B) the person knowingly participated in the offense;
              ``(C) the information furnished by the person consists of 
          an allegation or transaction that has been disclosed to the 
          public--
                      ``(i) in a criminal, civil, or administrative 
                  proceeding;
                      ``(ii) in a congressional, administrative, or 
                  General Accounting Office report, hearing, audit, or 
                  investigation; or
                      ``(iii) by the news media, unless the person is the 
                  original source of the information; or
              ``(D) when, in the judgment of the Attorney General, it 
          appears that a person whose illegal activities are being 
          prosecuted or investigated could benefit from the award.
      ``(3) For the purposes of paragraph (2)(C)(iii), the term `original 
  source' means a person who has direct and independent knowledge of the 
  information that is furnished and has voluntarily provided the 
  information to the Government prior to disclosure by the news media.
      ``(4) Neither the failure of the Attorney General to authorize a 
  payment under paragraph (1) nor the amount authorized shall be subject 
  to judicial review.''.
  
  SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
  
      There are authorized to be appropriated for fiscal year 1994 for 
  the purposes of carrying out this Act and the amendments made by this 
  Act--
              (1) $10,000,000 for the Federal Bureau of Investigation to 
          hire, equip, and train no fewer than 100 special agents and 
          support staff to investigate telemarketing fraud cases;
              (2) $3,500,000 to hire, equip, and train no fewer than 30 
          Department of Justice attorneys, assistant United States 
          Attorneys, and support staff to prosecute telemarketing fraud 
          cases; and
              (3) $10,000,000 for the Department of Justice to conduct, 
          in cooperation with State and local law enforcement agencies 
          and senior citizen advocacy organizations, public awareness and 
          prevention initiatives for senior citizens, such as seminars 
          and training.
  
  SEC. 8. BROADENING APPLICATION OF MAIL FRAUD STATUTE.
  
      Section 1341 of title 18, United States Code, is amended--
              (1) by inserting ``or deposits or causes to be deposited 
          any matter or thing whatever to be sent or delivered by any 
          private or commercial interstate carrier,'' after ``Postal 
          Service,''; and
              (2) by inserting ``or such carrier'' after ``causes to be 
          delivered by mail''.
  
  SEC. 9. FRAUD AND RELATED ACTIVITY IN CONNECTION WITH ACCESS DEVICES.
  
      Section 1029 of title 18, United States Code, is amended--
              (1) in subsection (a)--
                      (A) by striking ``or'' at the end of paragraph (3); 
                  and
                      (B) by inserting after paragraph (4) the following 
                  new paragraphs:
              ``(5) knowingly and with intent to defraud effects 
          transactions, with 1 or more access devices issued to another 
          person or persons, to receive payment or any other thing of 
          value during any 1-year period the aggregate value of which is 
          equal to or greater than $1,000;
              ``(6) without the authorization of the issuer of the access 
          device, knowingly and with intent to defraud solicits a person 
          for the purpose of--
                      ``(A) offering an access device; or
                      ``(B) selling information regarding or an 
                  application to obtain an access device; or
              ``(7) without the authorization of the credit card system 
          member or its agent, knowingly and with intent to defraud 
          causes or arranges for another person to present to the member 
          or its agent, for payment, 1 or more evidences or records of 
          transactions made by an access device;'';
              (2) in subsection (c)(1) by striking ``(a)(2) or (a)(3)'' 
          and inserting ``(a) (2), (3), (5), (6), or (7)''; and
              (3) in subsection (e)--
                      (A) by striking ``and'' at the end of paragraph 
                  (5);
                      (B) by striking the period at the end of paragraph 
                  (6) and inserting ``; and''; and
                      (C) by adding at the end the following new 
                  paragraph:
              ``(7) the term `credit card system member' means a 
          financial institution or other entity that is a member of a 
          credit card system, including an entity, whether affiliated 
          with or identical to the credit card issuer, that is the sole 
          member of a credit card system.''.
  
  SEC. 10. INFORMATION NETWORK.
  
      (a) Hotline.--The Attorney General shall establish a national toll-
  free hotline for the purpose of--
              (1) providing general information on telemarketing fraud to 
          interested persons; and
              (2) gathering information related to possible violations of 
          this Act.
      (b) Action on Information Gathered.--The Attorney General shall 
  work in cooperation with the Federal Trade Commission to ensure that 
  information gathered through the hotline shall be acted on in an 
  appropriate manner.
  
              Passed the Senate July 30 (legislative day, June 30), 1993.
  
              Attest:
  
                                               WALTER J. STEWART,
  
                                                               Secretary.
target: Senior Citizens Against Marketing Scams Act of 1993 - Amends the Federal criminal code to provide for enhanced penalties for telemarketing fraud that targets or victimizes persons over age 55.  Directs the court to order offenders to:  (1) pay restitution to persons who sustained losses as a result of the fraudulent activity; and (2) forfeit to the United States property constituting or derived from proceeds obtained as a result of the offense. 
  Requires the U.S. Sentencing Commission to review and, if necessary, amend the sentencing guidelines to ensure that victim related adjustments for fraud offenses against persons over age 55 are adequate. 
  Authorizes the Attorney General to make awards for furnishing information leading to the prosecution and conviction of telemarketing fraud offenders. 
  Authorizes appropriations. 
  Makes the mail fraud statute applicable to matter sent or delivered by any private or commercial interstate carrier. 
  Sets forth provisions regarding fraud and related activity in connection with access devices. 
  Directs the Attorney General to establish a national, toll-free telemarketing fraud hotline.
feat_title: Senior Citizens Against Marketing Scams Act of 1993