AEZ C.S.H.B. 1482 75(R)BILL ANALYSIS CRIMINAL JURISPRUDENCE C.S.H.B. 1482 By: Carter 4-2-97 Committee Report (Substituted) BACKGROUND Computer and telecommunication fraud costs the industry billions of dollars a year in stolen services and in damaged systems. PURPOSE CSHB 1482 would outlaw telecommunications fraud and provide the tools for law enforcement to prosecute the offenders. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Section 33 (01), Penal Code, Definitions, by adding to the definition of "aggregate amount", and deleting the definition of "computer security system". SECTION 2.Section 33.02 BREACH OF COMPUTER SECURITY, is amended by stating that if a person commits an offense if the person knowingly accesses a computer network, or computer system without the consent of the owner the offense is a Class B misdemeanor unless the actor knowingly obtains a benefit, defrauds, or harms another or alters, damages or deletes property, then the offense is a: (1) Class A misdemeanor if the aggregate amount involved is less than $1,500; (2) state jail felony if the aggregate amount involved is $1,500 or more but less than $20,000; or the amount is less than $1,500 and the defendant has two or more previous convictions under this chapter; (3) a felony of the third degree if the aggregate amount is $20,000 or more but less than $100,000; (4) a felony of the second degree if the aggregate amount is $100,000 or more but less than $200,000; or (5) a felony of the first degree if the aggregate amount involved is $200,000 or more. SECTION 3.Title 7, Penal Code, is amended by adding Chapter 33A, TELECOMMUNICATIONS CRIMES. Sec. 33A.01. Definitions. Sec. 33A.02. UNAUTHORIZED USE OF TELECOMMUNICATION SERVICES. A person commits an offense if the person is an officer, shareholder, partner, employee, agent or independent contractor or a telecommunications service provide and knowingly and without authority uses or diverts telecommunications services. An offense under this section is: (1) a Class B misdemeanor if the value of the service used or diverted is less than $500; (2) a Class A misdemeanor if the value of the service used or diverted is $500 or more but less than $1,500; or the value of the service is less than $500 and the defendant has been previously convicted; (3) a state jail felony if the value of the service used or diverted is $1,500 or more but less than $20,000; or the value of the service is less than $1,500 and the defendant has been previously been convicted two or more times of an offense under this chapter; (4) a felony of the third degree if the value of the service used or diverted is $20,000 or more but less than $100,000; (5) a felony of the second degree if the value of the service used or diverted is $100,000 or more but less than $200,000; or (6) a felony of the first degree if the value of the service used or diverted is $200,000 or more. When the service is used or diverted under this section, whether or not in a single incident, the conduct may be considered as one offense and the values of the service used or diverted may be aggregated in determining the grade of the offense. Sec. 33A.03. MANUFACTURE, POSSESSION, OR DELIVERY OF UNLAWFUL TELECOMMUNICATIONS DEVICE. An offense is committed if: (a) a person manufactures, possesses, delivers, offers to deliver or advertises a counterfeit telecommunications device or a telecommunications device that is intended to be used to commit an offense under 33A.04 or conceal the existence or place of origin or destination of a telecommunications service. (b) An offense is committed if a person delivers, offers to deliver, or advertises plans, instructions or materials for manufacture of a counterfeit telecommunications device; or a telecommunications device intended to be used to commit an offense under (a). An offense under this section is a felony of the third degree. Section 33A.04 THEFT OF TELECOMMUNICATIONS SERVICE. An offense is committed if a person obtains or tries to obtain telecommunications service without charge by using an access device without authority or consent of the lawful holder of the device, a counterfeit access device, a telecommunications device or counterfeit telecommunications device, or a fraudulent scheme or other device or means including a false, altered or stolen identification An offense under this section is: (1) a Class B misdemeanor if the value of the service is less than $500; (2) a Class A misdemeanor if the value of the service is $500 or more but less than $1,500; or the value of the service is less than $500 and the defendant had been previously convicted under this chapter; (3) a state jail felony if the value of the service is $1,500 or more but less than $20,000; or the value of the service is less than $1,500 and the defendant had been previously convicted under this chapter; (4) a felony of the third degree if the value of the service is $20,000 or more but less than $100,000; (5) a felony of the second degree if the value of the service is $100,000 or more but less than $200,000; or (6) a felony of the first degree if the value of the service is $200,000 or more. When service is used or diverted under this section, whether or not in a single incident but pursuant to one scheme or continuing course of conduct; the conduct may be considered as one offense and values of the service aggregated in determining the grade of the offense. Section 33A.05. PUBLICATION OF TELECOMMUNICATIONS ACCESS DEVICE. An offense is committed is a person with criminal negligence publishes a telecommunications access device or counterfeit telecommunications device designed to commit an offense under Section 33A.04. Except as otherwise provided in this subsection, an offense under this section is a Class A misdemeanor. An offense under this section is a felony of the third degree if the person has a previous conviction under this chapter. SECTION 4.Article 13.25, Code of Criminal Procedure, COMPUTER CRIMES, is amended by stating that an offense under Chapter 33, Penal Code by be prosecuted in the county of the principal place of business or the owner or lessee of a computer, computer network, or computer system involved in the offense. SECTION 5. Chapter 13, Code of Criminal Procedure, is amended by adding Article 13.26. TELECOMMUNICATIONS CRIMES. Offenses under Chapter 33A, Penal Code, may be prosecuted in the county where the telecommunications service originated or terminated or in the county to which the bill for the service was or would have been delivered. SECTION 6.Conforming language is added to Article 59.01(2) Code of Criminal Procedure to add Chapters 33 and 33A to the definition of contraband. SECTION 7 . Effective date September 1, 1997 which applies to offenses committed on or after that date. An offense committed before the effective date is covered by the law in effect when the offense was committed. SECTION 8 Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The original bill amended Chapter 33, Penal Code, COMPUTER CRIMES, by deleting current Sec. 33.02, 33.03, 33.04, creating new Sections 33.02, 33.03, 33.04,and adding new sections 33.05, 33.06. The substitute does not. The substitute amends current Sec. 33.02 by increasing the penalties and including the word "aggregate amount". The original bill made numerous deletions, and changes to Sec. 33.01, DEFINITIONS. The substitute left most of the definitions as they were with a few exceptions: adding the definition of "aggregate amount" and deleting the "computer security system" definition.