SENATE BILL REPORT

SSB 6572

BYSenate Committee on Energy & Utilities (originally sponsored by Senators Benitz, Williams, Patrick, Stratton and Sutherland)

Revising provisions on fraud in obtaining telecommunications services.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):January 18, 1990; January 25, 1990

Majority Report:     That Substitute Senate Bill No. 6572 be substituted therefor, and the substitute bill do pass.

     Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Metcalf, Patrick, Stratton, Sutherland, Williams.

Senate Staff:David Monthie (786-7198)

                February 9, 1990

AS PASSED SENATE, FEBRUARY 8, 1990

BACKGROUND:

The unauthorized use of telephone credit cards and access devices has increased rapidly in recent years.  In some parts of the country stolen telephone credit card numbers are sold on the street or advertised for sale in magazines or computer bulletin boards.  Increasingly sophisticated electronic devices are being used to gain improper access to long-distance telephone lines.  These and other practices have resulted in businesses or individuals being charged for thousands of dollars of unauthorized telephone services.

The long-distance telephone companies have formed a national task force to investigate this problem and to review existing state laws governing telephone fraud.  They have developed a model statute to address what they view as the major types of fraud, including the use of state-of-the art electronics.

This state's laws regarding telephone fraud are currently scattered through various provisions in the criminal code, and do not specifically address the use of new technological means to fraudulently obtain phone service.  There is no express authority for a telephone company, prosecuting attorney, or any other person to file a civil action and obtain an injunction against a person believed to be fraudulently obtaining telephone service.

SUMMARY:

Existing criminal provisions regarding telephone fraud are recodified into one chapter of Title 9 RCW.  "Credit card number," "publish," and "telecommunications device," "computer," and "computer trespass" are defined.  Fraudulently obtaining telephone service by the physical or electronic installation of, rearrangement of, or tampering with any equipment, or by the commission of computer trespass, is a crime.  The sale, rental, lending, giving, or advertising for sale or rental of a credit card number or coding employed in telephone credit cards or access devices, with the intent, knowledge or reason to believe it will be used to avoid payment of any lawful charge, is a gross misdemeanor.

Telephone companies, prosecuting attorneys, or any aggrieved party may file a civil action against a person who is engaged in or about to be engaged in a violation of the foregoing criminal statutes, and may obtain temporary and permanent orders restraining the person from committing the acts.

The court may order the sheriff to seize and retain any device used in violation of the act.  Such seized property is forfeited or is returned if the court finds lack of either intent to violate the law or gross negligence, or other mitigating circumstances.  The court may, upon a proper showing, order the telephone company to disconnect the service of a person found to be using a telecommunications device in violation of this act.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   Steve Wehrly, MCI (pro); Bill Garvin, MCI (pro); Dale Vincent, US West (pro); Mike Woodin, AT&T (pro); Jack Doyle, WITA (pro)