INTELLIGENCE COMMITTEE OFFERS ALTERNATIVE ENCRYPTION LEGISLATION TO ADDRESS SECURITY CONCERNS SEPTEMBER 11, 1997 CONTACT (202) 225-4121 The House Permanent Select Committee on Intelligence (HPSCI) today approved, by voice vote, legislation proposing an alternative to pending encryption legislation, known as the "Security and Freedom Through Encryption Act" (H.R. 695). The HPSCI amendment in the nature of a substitute to HR 695 proposes safeguards in the law to meet national security and law enforcement concerns in the debate over the future of United States Encryption policy. "All members of Congress, and particularly those of us on the Intelligence Committee, have a responsibility to find the proper balance between forward thinking commercial policies and the unquestioned need to protect the security of the American people and America's national interests. We are offering proposals to ensure that we do not plow full steam ahead into the 21st century's information age having seriously weakened our ability to protect the national security, " said HPSCI Chairman Porter J. Goss (Fl-14). "American citizens have a right to their privacy and their access to the freest possible markets. But they also have a right to their safety and security. Terrorist groups that plot to blow up buildings; drug cartels that seek to poison our children, and those who proliferate in deadly chemical and biological weapons are all formidable opponents of peace and security in the global society. These bad actors must know that the United States' law enforcement and national security agencies, working under the proper oversight, will have the tools to frustrate illegal and deadly activity and bring international criminals to justice," Goss said. "The bill referred to the Intelligence Committee attempts to deal with complex issues. The substitute adopted by the Committee addresses the legitimate national security and law enforcement concerns that are simply not addressed in H.R. 695. In that respect, the Committee substitute, in my judgment, furthers the debate on these important matters," noted Ranking Democrat Norm Dicks (WA-6). The main elements of the Intelligence Committee's proposal are: * Requires exports of encryption products to submit to a one-time review and to include features or functions (that need not be enabled by the manufacturer) allowing for immediate access to plaintext or to decryption information; * Requires that encryption products manufactured and distributed for sale or use, or import for sale or use, in the United States after January 31, 2000 include features or functions that provide, upon presentment of a court order, immediate access to plaintext data or decryption information from the encryption provider; * Does not change law enforcement's statutory requirements prior to intercepting oral, wire, or electronic (wireless) communications, or law enforcement's requirements prior to obtaining stored data. Law enforcement will specifically be required to obtain a separate court order to have data, including communications, decrypted; * Allows for law enforcement access with delayed notification requirements, similar to those allowed in current wiretap statutory provisions: * Provide civil remedies and criminal penalties for unlawful access to or disclosure of plaintext or decryption information; * Require US government procurement of encryption technology that includes functions or features allowing for immediate access to plaintext or decryption information. "Our committee has weighed in on these issues in the interest of furthering the important debate now underway about how best to accomplish the multiple goals of a sound encryption policy. Any encryption legislation we consider must take a balanced approach to the national security, law enforcement, public safety and privacy issues at stake. Our action today marks another step in this process, which no doubt will continue to unfold in the days and weeks ahead. I look forward to working with all sides on this debate as we tackle this complex but important issue," Goss said. The HPSCI, which sought and received sequential referral of H.R. 695, is one of five House committees with jurisdiction on this issue. The Committees on Judiciary, International Relations, National Security and Commerce have also considered this legislation. The HPSCI expects to file its committee report with the House tomorrow, meeting its deadline for action set by the Speaker. -30-