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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2169 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 2169

To amend the Fair Credit Reporting Act to provide for secure financial 
                     data, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           December 21, 2005

  Mr. Carper (for himself and Mr. Martinez) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
To amend the Fair Credit Reporting Act to provide for secure financial 
                     data, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Data Protection Act of 
2005''.

SEC. 2. DATA SECURITY SAFEGUARDS.

    (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681) is 
amended by adding at the end the following new section:
``Sec. 630. Data security safeguards
    ``(a) Security Policies and Procedures.--Each consumer reporter 
shall have an affirmative obligation to implement, and a continuing 
obligation to maintain, reasonable policies and procedures to protect 
the security and confidentiality of sensitive financial personal 
information relating to any consumer that is maintained, serviced, or 
communicated by or on behalf of such consumer reporter against any 
unauthorized use that is reasonably likely to result in substantial 
harm or inconvenience to such consumer.
    ``(b) Investigation Requirements.--
            ``(1) Investigation required.--Whenever any consumer 
        reporter determines or becomes aware of information that would 
        reasonably indicate that a breach of data security has or may 
        have occurred or is reasonably likely to be about to occur, or 
        receives notice under subsection (d), the consumer reporter 
        shall immediately conduct a reasonable investigation to--
                    ``(A) assess the nature and scope of the potential 
                breach;
                    ``(B) identify the sensitive financial personal 
                information involved; and
                    ``(C) determine if the potential breach is 
                reasonably likely to result in substantial harm or 
                inconvenience to any consumer to whom the information 
                relates.
            ``(2) Scope of investigation.--An investigation conducted 
        under paragraph (1) shall be commensurate with the nature and 
        the amount of the sensitive financial personal information that 
        is subject to the breach of data security.
            ``(3) Factors to be considered.--In determining the 
        likelihood under this section that sensitive financial personal 
        information that was the subject of a breach of data security 
        has been or will be misused, the consumer reporter shall 
        consider all available relevant facts, including whether the 
        information that was subject to the breach was encrypted, 
        redacted, required technology to use that is not generally 
        commercially available, or is otherwise unreadable or unusable.
    ``(c) Investigation Notices and System Restoration Requirements.--
If a consumer reporter determines after commencing an investigation 
under subsection (b) that a potential breach of data security may 
result in substantial harm or inconvenience to any consumer to whom the 
sensitive financial personal information involved in such potential 
breach relates, the consumer reporter shall--
            ``(1) promptly notify the United States Secret Service;
            ``(2) promptly notify the appropriate functional regulatory 
        agency for the consumer reporter;
            ``(3) notify as appropriate and without unreasonable 
        delay--
                    ``(A) any entity that owns or is obligated on a 
                financial account that may be subject to unauthorized 
                transactions as a result of the breach, to the extent 
                the breach involves related sensitive financial account 
                information, including in such notification information 
                reasonably identifying the nature and scope of the 
                breach and the sensitive financial personal information 
                involved;
                    ``(B) each nationwide consumer reporting agency, in 
                the case of a breach involving sensitive financial 
                identity information relating to 1,000 or more 
                consumers; and
                    ``(C) any other appropriate critical third 
                parties--
                            ``(i) whose involvement is necessary to 
                        investigate the breach; or
                            ``(ii) who will be required to undertake 
                        further action with respect to such information 
                        to protect such consumers from resulting fraud 
                        or identity theft;
            ``(4) to the extent possible and practicable, take 
        reasonable measures to repair the breach and restore the 
        security and confidentiality of the sensitive financial 
        personal information involved to limit further unauthorized use 
        of such information; and
            ``(5) take reasonable measures to restore the integrity of 
        the affected data security safeguards and make appropriate 
        improvements to data security policies and procedures.
    ``(d) Third Party Duties.--
            ``(1) Coordinated investigation.--Whenever any consumer 
        reporter that maintains or receives sensitive financial 
        personal information for or on behalf of another party 
        determines, or has reason to believe, that a breach of data 
        security has occurred with respect to such information, the 
        consumer reporter shall--
                    ``(A) promptly notify the other party of the 
                breach;
                    ``(B) conduct a coordinated investigation with the 
                other party as described in subsection (b); and
                    ``(C) ensure that the appropriate notices are 
                provided as required under subsection (e).
            ``(2) Contractual obligation required.--No consumer 
        reporter may provide sensitive financial personal information 
        to a third party to maintain, receive, or communicate on behalf 
        of the consumer reporter, unless such third party agrees that 
        whenever the third party becomes aware that a breach of data 
        security has occurred or is reasonably likely to have occurred 
        with respect to such information maintained, received, or 
        communicated by such third party, the third party shall be 
        obligated--
                    ``(A) to provide notice of the breach to the 
                consumer reporter;
                    ``(B) to conduct a coordinated investigation with 
                the consumer reporter to determine the likelihood that 
                such information will be misused against the consumers 
                to whom the information relates in a manner that would 
                cause substantial harm or inconvenience to any such 
                consumers; and
                    ``(C) provide any consumer notices required under 
                subsection (e), except to the extent that such notices 
                are provided by the consumer reporter in a manner 
                meeting the requirements of such subsection.
    ``(e) Consumer Notice.--
            ``(1) Potential identity theft risk.--A consumer reporter 
        shall provide a consumer notice in accordance with subsection 
        (f) if, after being required to commence an investigation 
        pursuant to this section, the consumer reporter becomes aware--
                    ``(A) that a breach of data security is reasonably 
                likely to have occurred, with respect to sensitive 
                financial identity information maintained, received, or 
                communicated by or on behalf of the consumer reporter;
                    ``(B) of information reasonably identifying--
                            ``(i) the nature and scope of the breach, 
                        and
                            ``(ii) the sensitive financial identity 
                        information involved; and
                    ``(C) that such information has been or is 
                reasonably likely to be misused in a manner causing 
                substantial harm or inconvenience against the consumers 
                to whom such information relates to commit identity 
                theft.
            ``(2) Potential fraudulent transaction risk.--
                    ``(A) In general.--A consumer reporter shall 
                provide a consumer notice in accordance with subsection 
                (f) if, after being required to commence an 
                investigation pursuant to this section, the consumer 
                reporter becomes aware--
                            ``(i) that a breach of data security is 
                        reasonably likely to have occurred, with 
                        respect to sensitive financial account 
                        information maintained, serviced, or 
                        communicated by or on behalf of the consumer 
                        reporter;
                            ``(ii) of information reasonably 
                        identifying--
                                    ``(I) the nature and scope of the 
                                breach, and
                                    ``(II) the sensitive financial 
                                account information involved; and
                            ``(iii) that such information has been or 
                        is reasonably likely to be misused in a manner 
                        causing substantial harm or inconvenience 
                        against consumers to whom such information 
                        relates to make fraudulent transactions on such 
                        consumers' financial accounts.
                    ``(B) Potential delayed determination for 
                information security programs.--In determining the 
                likelihood of misuse of sensitive financial account 
                information under subparagraph (A), the consumer 
                reporter may additionally consider whether any neural 
                networks or security programs used by, or on behalf of, 
                the consumer reporter have detected, or are likely to 
                detect on an ongoing basis over a reasonable period of 
                time, fraudulent transactions resulting from the breach 
                of data security.
    ``(f) Timing, Content, and Manner of Notices.--
            ``(1) Order of notice.--The notices required under this 
        section shall be made promptly to the entities described in 
        paragraphs (1) and (2) of subsection (c), then promptly to any 
        appropriate third parties, and then without unreasonable delay 
        to any consumers described in subsection (e)(1)(C) or 
        (e)(2)(A)(iii), in accordance with such subsections.
            ``(2) Delay of notice for law enforcement purposes.--If a 
        consumer reporter receives a written request from an 
        appropriate law enforcement agency indicating that providing a 
        notice under subsection (c)(3) or (e) would impede a criminal 
        or civil investigation by that law enforcement agency, or an 
        oral request from an appropriate law enforcement agency 
        indicating that such a written request will be provided within 
        2 business days--
                    ``(A) the consumer reporter shall delay, or in the 
                case of a foreign law enforcement agency may delay, 
                providing such notice until--
                            ``(i) the law enforcement agency informs 
                        the consumer reporter that such notice will no 
                        longer impede the investigation; or
                            ``(ii) the law enforcement agency fails 
                        to--
                                    ``(I) provide a written request 
                                within 2 business days following an 
                                oral request for a delay; or
                                    ``(II) provide within 10 days a 
                                written request to continue such delay 
                                for a specific time that is approved by 
                                a court of competent jurisdiction;
                    ``(B) the consumer reporter shall not be liable for 
                any losses that would not have occurred but for the 
                delay provided for under this paragraph or but for the 
                communication of any information provided to any law 
                enforcement agency pursuant to this section, except 
                that nothing in this subparagraph shall be construed as 
                creating any inference with respect to the 
                establishment or existence of any such liability; and
                    ``(C) the consumer reporter may--
                            ``(i) conduct appropriate security measures 
                        that are not inconsistent with such request; 
                        and
                            ``(ii) contact any law enforcement agency 
                        to determine whether any such inconsistency 
                        would be created by such measures.
            ``(3) Content of consumer notice.--Any notice required to 
        be provided by a consumer reporter to a consumer under 
        paragraph (1) or (2) of subsection (e), and any notice required 
        in accordance with subsection (d)(2)(A), shall be provided in a 
        standardized envelope or transmission, and shall include the 
        following in a clear and conspicuous manner:
                    ``(A) An appropriate heading or notice title.
                    ``(B) A description of the nature and type of 
                information that was, or is reasonably believed to have 
                been, subject to the breach of data security.
                    ``(C) The identity and relationship to the consumer 
                of any entity that suffered the breach.
                    ``(D) If known, the date, or a reasonable 
                approximation of the period of time, on or within which 
                sensitive financial personal information related to the 
                consumer was, or is reasonably believed to have been, 
                subject to a breach.
                    ``(E) A general description of the actions taken by 
                the consumer reporter to restore the security and 
                confidentiality of the breached information.
                    ``(F) A telephone number by which a consumer to 
                whom the breached information relates may call free of 
                charge to obtain additional information about how to 
                respond to the breach.
                    ``(G) With respect to notices involving sensitive 
                financial identity information, a summary of rights of 
                consumer victims of fraud or identity theft, such as 
                that prepared by the Commission under section 609(d), 
                including any additional appropriate information on how 
                the consumer may--
                            ``(i) obtain a copy of a consumer report 
                        free of charge in accordance with section 612;
                            ``(ii) place a fraud alert in any file 
                        relating to the consumer at a consumer 
                        reporting agency under section 605A to 
                        discourage unauthorized use; and
                            ``(iii) contact the Commission for more 
                        detailed information.
                    ``(H) With respect to notices involving sensitive 
                financial identity information, appropriate 
                instructions to the consumer for obtaining file 
                monitoring mitigation under subsection (g), which shall 
                include a mailing address for the consumer to make a 
                request for such mitigation, and may also include 
                additional contact information, such as an e-mail or 
                website address or a telephone number.
                    ``(I) The approximate date the notice is being 
                issued.
            ``(4) Other transmission of notice.--The notice described 
        in paragraph (3) may be made by other means of transmission 
        (such as electronic or oral) to a consumer only if--
                    ``(A) the consumer has previously and expressly 
                agreed to receive notice by such means; and
                    ``(B) all of the relevant information in paragraph 
                (3) is communicated to such consumer in such 
                transmission.
            ``(5) Duplicative notices.--
                    ``(A) In general.--A consumer reporter, whether 
                acting directly or in coordination with another 
                entity--
                            ``(i) shall not be required to provide more 
                        than 1 notice with respect to any breach of 
                        data security to any affected consumer, so long 
                        as such notice meets all the applicable 
                        requirements of this section, and
                            ``(ii) shall not be required to provide a 
                        notice with respect to any consumer if a notice 
                        meeting the applicable requirements of this 
                        section has already been provided by another 
                        entity.
                    ``(B) Updating notices.--If a consumer notice is 
                provided to consumers pursuant only to subsection 
                (e)(2) (relating to sensitive financial account 
                information), and the consumer reporter subsequently 
                becomes aware of a reasonable likelihood that sensitive 
                financial personal information involved in the breach 
                is being misused in a manner causing substantial harm 
                or inconvenience against such consumer to commit 
                identity theft, then an additional notice must be 
                provided to such consumers as well any other 
                appropriate parties under this section, including the 
                summary of rights and file monitoring mitigation 
                instructions under subparagraphs (G) and (H) of 
                subsection (e)(3).
            ``(6) Responsibility and costs.--Except as otherwise 
        established by agreement, the entity that suffered a breach of 
        data security shall be--
                    ``(A) primarily responsible for providing any 
                consumer notices required under this section with 
                respect to such breach; and
                    ``(B) responsible for the reasonable actual costs 
                of any notices provided under this section, except as 
                otherwise established by agreement.
    ``(g) Financial Fraud Mitigation.--
            ``(1) Free file monitoring.--Any consumer reporter that is 
        required to provide notice to a consumer under paragraph (1) of 
        subsection (e), or that is deemed to be in compliance with such 
        requirement by operation of subsection (h), if requested by the 
        consumer before the end of the 90-day period beginning on the 
        date of such notice, shall make available to the consumer, free 
        of charge and for at least a 6-month period, a service that 
        monitors nationwide credit activity regarding a consumer from a 
        consumer reporting agency described in section 603(p).
            ``(2) Joint rulemaking for safe harbor.--In accordance with 
        subsection (i), the Secretary of the Treasury, the Board of 
        Governors of the Federal Reserve System, and the Commission 
        shall jointly develop standards and guidelines, which shall be 
        issued by all functional regulatory agencies, that, in any case 
        in which--
                    ``(A) free file monitoring is offered under 
                paragraph (1) to a consumer;
                    ``(B) subsequent to the offer, another party 
                misuses sensitive financial identity information on the 
                consumer obtained through the breach of data security 
                (that gave rise to such offer) to commit identity theft 
                against the consumer; and
                    ``(C) at the time of such breach the consumer 
                reporter met the requirements of subsection (a),
        exempts the consumer reporter from any liability for any harm 
        to the consumer resulting from such misuse, other than any 
        direct pecuniary loss or loss pursuant to agreement by the 
        consumer reporter, except that nothing in this paragraph shall 
        be construed as creating any inference with respect to the 
        establishment or existence of any such liability.
    ``(h) Compliance With GLBA.--
            ``(1) In general.--For the purposes of this section, any 
        person subject to section 501(b) of title V of the Gramm-Leach-
        Bliley Act shall be deemed to be in compliance with--
                    ``(A) subsection (a), if--
                            ``(i) the person is obliged to implement 
                        appropriate safeguards, with respect to 
                        customer records and information, pursuant to 
                        regulations, guidelines, or guidance prescribed 
                        by or issued by an agency or authority in 
                        accordance with such subsection of the Gramm-
                        Leach-Bliley Act;
                            ``(ii) the person is substantially in 
                        compliance with such obligation; and
                            ``(iii) the safeguards are being applied by 
                        the person with respect to sensitive financial 
                        personal information in the same manner as with 
                        respect to customer records and information;
                    ``(B) subsection (b), if--
                            ``(i) the person is obliged to conduct 
                        investigations of breaches of information 
                        security pursuant to regulations, guidelines, 
                        or guidance prescribed by or issued by an 
                        agency or authority in accordance with such 
                        subsection of the Gramm-Leach-Bliley Act;
                            ``(ii) the person is substantially in 
                        compliance with such obligation; and
                            ``(iii) the person conducts such 
                        investigations with respect to sensitive 
                        financial personal information in the same 
                        manner as with other information subject to 
                        such regulation, guideline, or guidance; and
                    ``(C) subsections (c), (d), (e), and (f) (other 
                than subsection (f)(3)), if--
                            ``(i) the person is obliged to implement a 
                        consumer notification program after breaches of 
                        such data safeguards pursuant to regulations, 
                        guidelines, or guidance prescribed by or issued 
                        by an agency or authority in accordance with 
                        section 501 of the Gramm-Leach-Bliley Act;
                            ``(ii) the person is substantially in 
                        compliance with such obligation; and
                            ``(iii) the person implements such consumer 
                        notification program with respect to sensitive 
                        financial personal information in the same 
                        manner as with other information subject to 
                        such regulations, guidelines, or guidance.
            ``(2) Coordination with requirements for gses.--For 
        purposes of paragraph (1), if--
                    ``(A) with respect to any requirement described in 
                subparagraph (A)(i), (B)(i), or (C)(i) of paragraph (1) 
                relating to sensitive financial personal information--
                            ``(i) an enterprise (as defined in title 
                        XIII of the Housing and Community Development 
                        Act of 1992) is required to comply with orders, 
                        guidance, or regulations issued by the 
                        functional regulatory agency set forth in 
                        subsection (j)(1)(F); and
                            ``(ii) such orders, guidance, or 
                        regulations of such functional regulatory 
                        agency are substantially consistent with 
                        regulations, guidelines, or guidance prescribed 
                        by or issued by an agency or authority in 
                        accordance with section 501(b) of the Gramm-
                        Leach-Bliley Act (without regard to whether 
                        such enterprise or functional regulatory agency 
                        is subject to such section 501(b)) that relate 
                        to any requirement described in subparagraph 
                        (A)(i), (B)(i), or (C)(i) of paragraph (1);
                    ``(B) the enterprise is substantially in compliance 
                with such requirement relating to sensitive financial 
                personal information; and
                    ``(C) the enterprise implements any such 
                requirement with respect to sensitive financial 
                personal information in the same manner as with other 
                information subject to the regulations, guidelines, or 
                guidance prescribed or issued by the functional 
                regulatory agency set forth in subsection (j)(1)(F),
        the enterprise shall be treated as a person subject to section 
        501(b) of the Gramm-Leach-Bliley Act.
            ``(3) Harmonization of glba.--
                    ``(A) In general.--To the extent that compliance by 
                any consumer reporter with the requirements of title V 
                of the Gramm-Leach-Bliley Act shall be deemed, pursuant 
                to this subsection, to be compliance with this section, 
                and the requirements of such title, and any 
                regulations, guidelines, or orders issued or prescribed 
                under such title, differ in any way from this section, 
                it is the sense of the Congress that the applicable 
                regulators shall make every appropriate effort as any 
                relevant regulations are prescribed, reviewed, or 
                updated to reconcile such differences to harmonize the 
                corresponding requirements.
                    ``(B) Agencies that have not fully implemented 
                title v of the glba.--Any agency described in 
                subsection (j) that has not issued or prescribed 
                regulations, guidelines, or orders that are required or 
                permitted under title V of the Gramm-Leach-Bliley Act 
                and that set forth the requirements for compliance with 
                such title, including with respect to providing notice 
                of a breach of data security, shall prescribe such 
                regulations, guidelines, or orders, as appropriate, 
                before the end of the 12-month period beginning on the 
                date of the enactment of the Financial Data Protection 
                Act of 2005, in a manner that--
                            ``(i) is consistent with this section; and
                            ``(ii) allows, to the extent practical, 
                        consistent standards across holding companies 
                        with respect to compliance with this section 
                        and section 501(b) of the Gramm-Leach-Bliley 
                        Act that is deemed compliance under this 
                        subsection.
                    ``(C) Agencies that have implemented title v of the 
                glba.--Any agency described in subsection (j) that has 
                issued or prescribed regulations, guidelines, or orders 
                that are required or permitted under title V of the 
                Gramm-Leach-Bliley Act and that set forth the 
                requirements for compliance with such title shall 
                modify such regulations, guidelines, or orders, as 
                appropriate, before the end of the 12-month period 
                beginning on the date of the enactment of the Financial 
                Data Protection Act of 2005, in a manner that--
                            ``(i) is consistent with this section; and
                            ``(ii) allows, to the extent practical, 
                        consistent standards across holding companies 
                        with respect to compliance with this section 
                        and section 501(b) of the Gramm-Leach-Bliley 
                        Act that is deemed compliance under this 
                        subsection.
                    ``(D) Coordination under this section.--To the 
                extent practical, any regulations, guidelines, 
                standards, or orders issued or prescribed under this 
                section shall be issued or prescribed in a manner 
                that--
                            ``(i) is consistent with this section; and
                            ``(ii) allows, to the extent practical, 
                        consistent standards across holding companies 
                        with respect to compliance with this section 
                        and section 501(b) of the Gramm-Leach-Bliley 
                        Act that is deemed compliance under this 
                        subsection.
    ``(i) Uniform Security Regulations.--
            ``(1) Uniform standards.--The Secretary of the Treasury, 
        the Board of Governors of the Federal Reserve System, and the 
        Commission shall jointly develop appropriate standards and 
        guidelines to implement this section (other than subsection 
        (h), including--
                    ``(A) prescribing regulations requiring each 
                consumer reporter to establish reasonable policies and 
                procedures implementing such standards and guidelines, 
                consistent, as appropriate, with subsection (h) and 
                section 501(b) of title V of the Gramm-Leach-Bliley 
                Act, and any regulations, guidelines, or orders issued 
                or prescribed under such section;
                    ``(B) prescribing specific regulations with respect 
                to subsection (f)(3) setting forth a reasonably unique 
                and, pursuant to paragraph (2)(B), exclusive color and 
                titling of the notice, and standardized formatting of 
                the notice contents described under such subsection to 
                standardize such communications and make them more 
                likely to be reviewed and understood by consumers;
                    ``(C) providing in such standards and guidelines 
                that the responsibility of a consumer reporter to 
                provide notice under this section--
                            ``(i) has been satisfied with respect to 
                        any particular consumer, even if the consumer 
                        reporter is unable to contact the consumer, so 
                        long as the consumer reporter has made 
                        reasonable efforts to obtain a current address 
                        or other current contact information with 
                        respect to such consumer;
                            ``(ii) may be made by public notice in 
                        appropriate cases where such reasonable efforts 
                        have failed; and
                            ``(iii) with respect to paragraph (3) of 
                        subsection (c), may be communicated to entities 
                        in addition to those specifically required 
                        under such paragraph through any reasonable 
                        means, such as through an electronic 
                        transmission normally received by all of the 
                        consumer reporter's business customers; and
                    ``(D) providing in such standards and guidelines 
                elaboration on how to determine whether a technology is 
                generally commercially available for the purposes of 
                subsection (b), focusing on the availability of such 
                technology to persons who potentially could seek to 
                breach the data security of the consumer reporter.
            ``(2) Enforcement.--
                    ``(A) Regulations.--Each of the functional 
                regulatory agencies shall prescribe such regulations as 
                may be necessary, consistent with the standards in 
                paragraph (1), to ensure compliance with this section 
                with respect to the persons subject to the jurisdiction 
                of such agency under subsection (i).
                    ``(B) Misuse of unique color and titles of 
                notices.--Any person who uses the unique color and 
                titling adopted under paragraph (1)(B) for notices 
                under subsection (f)(3) in a way that is likely to 
                create a false belief in a consumer that a 
                communication is such a notice shall be liable in the 
                same manner and to the same extent as a debt collector 
                is liable under section 813 for any failure to comply 
                with any provision of the Fair Debt Collection 
                Practices Act.
            ``(3) Procedures and deadline.--
                    ``(A) Procedures.--Standards and guidelines issued 
                under this subsection shall be issued in accordance 
                with applicable requirements of title 5, United States 
                Code.
                    ``(B) Deadline for initial standards and 
                guidelines.--The standards and guidelines required to 
                be issued under paragraph (1) shall be published in 
                final form before the end of the 12-month period 
                beginning on the date of the enactment of the Financial 
                Data Protection Act of 2005.
                    ``(C) Deadline for enforcement regulations.--The 
                standards and guidelines required to be issued under 
                paragraph (2) shall be published in final form before 
                the end of the 6-month period beginning on the date 
                standards and guidelines described in subparagraph (B) 
                are published in final form.
                    ``(D) Authority to grant exceptions.--The 
                regulations prescribed under paragraph (2) may include 
                such additional exceptions to this section as are 
                deemed by the functional regulatory agencies to be 
                consistent with the purposes of this section.
                    ``(E) Consultation and coordination.--The Secretary 
                of the Treasury, the Board of Governors of the Federal 
                Reserve System, and the Commission shall consult and 
                coordinate with the other functional regulatory 
                agencies to the extent appropriate in prescribing 
                regulations under this subsection.
                    ``(F) Failure to meet deadline.--Any agency or 
                authority required to publish standards and guidelines 
                or regulations under this subsection that fails to meet 
                the deadline for such publishing shall submit a report 
                to the Congress within 30 days of such deadline 
                describing--
                            ``(i) the reasons for the failure to meet 
                        such deadline;
                            ``(ii) when the agency or authority expects 
                        to complete the publication required; and
                            ``(iii) the detriment such failure to 
                        publish by the required deadline will have on 
                        consumers and other affected parties.
                    ``(G) Uniform implementation and interpretation.--
                It is the intention of the Congress that the agencies 
                and authorities described in subsection (j)(1)(G) will 
                implement and interpret their enforcement regulations, 
                including any exceptions provided under subparagraph 
                (D), in a uniform manner.
            ``(4) Appropriate exemptions or modifications.--The 
        Secretary of the Treasury, the Board of Governors of the 
        Federal Reserve System, and the Commission, in consultation 
        with the Administrator of the Small Business Administration and 
        other functional regulatory agencies, shall provide appropriate 
        exemptions or modifications from requirements of this section 
        relating to sensitive financial personal information for 
        consumer reporters that do not maintain, service, or 
        communicate a large quantity of sensitive financial account 
        information or sensitive financial identity information.
    ``(j) Administrative Enforcement.--
            ``(1) In general.--Notwithstanding section 616, 617, or 
        621, compliance with this section and the regulations 
        prescribed under this section shall be enforced exclusively by 
        the functional regulatory agencies with respect to financial 
        institutions and other persons subject to the jurisdiction of 
        each such agency under applicable law, as follows:
                    ``(A) Under section 8 of the Federal Deposit 
                Insurance Act, in the case of--
                            ``(i) national banks, Federal branches and 
                        Federal agencies of foreign banks, and any 
                        subsidiaries of such entities (except brokers, 
                        dealers, persons providing insurance, 
                        investment companies, and investment advisers), 
                        by the Comptroller of the Currency;
                            ``(ii) member banks of the Federal Reserve 
                        System (other than national banks), branches 
                        and agencies of foreign banks (other than 
                        Federal branches, Federal agencies, and insured 
                        State branches of foreign banks), commercial 
                        lending companies owned or controlled by 
                        foreign banks, organizations operating under 
                        section 25 or 25A of the Federal Reserve Act, 
                        and bank holding companies and their nonbank 
                        subsidiaries or affiliates (except brokers, 
                        dealers, persons providing insurance, 
                        investment companies, and investment advisers), 
                        by the Board of Governors of the Federal 
                        Reserve System;
                            ``(iii) banks insured by the Federal 
                        Deposit Insurance Corporation (other than 
                        members of the Federal Reserve System), insured 
                        State branches of foreign banks, and any 
                        subsidiaries of such entities (except brokers, 
                        dealers, persons providing insurance, 
                        investment companies, and investment advisers), 
                        by the Board of Directors of the Federal 
                        Deposit Insurance Corporation; and
                            ``(iv) savings associations the deposits of 
                        which are insured by the Federal Deposit 
                        Insurance Corporation, and any subsidiaries of 
                        such savings associations (except brokers, 
                        dealers, persons providing insurance, 
                        investment companies, and investment advisers), 
                        by the Director of the Office of Thrift 
                        Supervision.
                    ``(B) Under the Federal Credit Union Act, by the 
                Board of the National Credit Union Administration with 
                respect to any federally insured credit union, and any 
                subsidiaries of such an entity.
                    ``(C) Under the Securities Exchange Act of 1934, by 
                the Securities and Exchange Commission with respect to 
                any broker, dealer, or nonbank transfer agent.
                    ``(D) Under the Investment Company Act of 1940, by 
                the Securities and Exchange Commission with respect to 
                investment companies.
                    ``(E) Under the Investment Advisers Act of 1940, by 
                the Securities and Exchange Commission with respect to 
                investment advisers registered with the Commission 
                under such Act.
                    ``(F) Under the provisions of title XIII of the 
                Housing and Community Development Act of 1992, by the 
                Director of Federal Housing Enterprise Oversight (and 
                any successor to such functional regulatory agency) 
                with respect to the Federal National Mortgage 
                Association, the Federal Home Loan Mortgage 
                Corporation, and any other entity or enterprise (as 
                defined in such title XIII) subject to the jurisdiction 
                of such functional regulatory agency under such title, 
                including any affiliate of any such enterprise.
                    ``(G) Under State insurance law, in the case of any 
                person engaged in the business of insurance, by the 
                applicable State insurance authority of the State in 
                which the person is domiciled.
                    ``(H) Under the Federal Trade Commission Act, by 
                the Commission for any other person that is not subject 
                to the jurisdiction of any agency or authority under 
                paragraphs (1) through (7) of this subsection.
            ``(2) Exercise of certain powers.--For the purpose of the 
        exercise by any agency referred to in paragraph (1) of its 
        powers under any Act referred to in that subsection, a 
        violation of any requirement imposed under this subchapter 
        shall be deemed to be a violation of a requirement imposed 
        under that Act. In addition to its powers under any provision 
        of law specifically referred to in paragraph (1), each of the 
        agencies referred to in that paragraph may exercise, for the 
        purpose of enforcing compliance with any requirement imposed 
        under this section, any other authority conferred on it by law.
    ``(k) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Breach of data security.--The term `breach of data 
        security' means, with respect to sensitive financial personal 
        information that is maintained, serviced, or communicated by or 
        on behalf of any consumer reporter--
                    ``(A) an unauthorized acquisition of such 
                information that could be used to commit financial 
                fraud (such as identity theft or fraudulent 
                transactions made on financial accounts); or
                    ``(B) an unusual pattern of use of such information 
                indicative of financial fraud.
            ``(2) Consumer.--The term `consumer' means an individual.
            ``(3) Consumer reporter and related terms.--
                    ``(A) Consumer report.--The term `consumer report' 
                includes any written, oral, or other communication of 
                any information by a consumer reporter bearing on a 
                consumer's credit worthiness, credit standing, credit 
                capacity, character, general reputation, personal 
                characteristics, personal identifiers, financial 
                account information, or mode of living.
                    ``(B) Consumer reporter.--The term `consumer 
                reporter' means any consumer reporting agency or 
                financial institution, or any person which, for 
                monetary fees, dues, on a cooperative nonprofit basis, 
                or otherwise regularly engages in whole or in part in 
                the practice of assembling or evaluating consumer 
                reports, consumer credit information, or other 
                information on consumers, for the purpose of furnishing 
                consumer reports to third parties or to provide or 
                collect payment for or market products and services, or 
                for employment purposes, and which uses any means or 
                facility of interstate commerce for such purposes.
            ``(4) Financial institution.--The term `financial 
        institution' means--
                    ``(A) any person the business of which is engaging 
                in activities that are financial in nature as described 
                in or determined under section 4(k) of the Bank Holding 
                Company Act;
                    ``(B) any entity that is primarily engaged in 
                activities that are subject to the Fair Credit 
                Reporting Act; and
                    ``(C) any person that is maintaining, receiving, or 
                communicating sensitive financial personal information 
                on an ongoing basis for the purposes of engaging in 
                interstate commerce.
            ``(5) Functional regulatory agency.--The term `functional 
        regulatory agency' means any agency described in subsection (j) 
        with respect to the financial institutions and other persons 
        subject to the jurisdiction of such agency.
            ``(6) Nationwide consumer reporting agency.--The term 
        `nationwide consumer reporting agency' means--
                    ``(A) a consumer reporting agency described in 
                section 603(p);
                    ``(B) any person who notifies the Commission that 
                the person reasonably expects to become a consumer 
                reporting agency described in section 603(p) within a 
                reasonable time; and
                    ``(C) a consumer reporting agency described in 
                section 603(w) that notifies the Commission that the 
                person wishes to receive breach of data security 
                notices under this section that involve information of 
                the type maintained by such agency.
            ``(7) Neural network.--The term `neural network' means an 
        information security program that monitors financial account 
        transactions for potential fraud, using historical patterns to 
        analyze and identify suspicious financial account transactions.
            ``(8) Sensitive financial account information.--The term 
        `sensitive financial account information' means a financial 
        account number of a consumer, such as a credit card number or 
        debit card number, in combination with any security code, 
        access code, biometric code, password, or other personal 
        identification information that would allow access to the 
        financial account.
            ``(9) Sensitive financial identity information.--The term 
        `sensitive financial identity information' means the first and 
        last name, the address, or the telephone number of a consumer, 
        in combination with any of the following of the consumer:
                    ``(A) Social Security number.
                    ``(B) Driver's license number or equivalent State 
                identification number.
                    ``(C) Taxpayer identification number.
            ``(10) Sensitive financial personal information.--The term 
        `sensitive financial personal information' means any 
        information that is sensitive financial account information, 
        sensitive financial identity information, or both.
            ``(11) Substantial harm or inconvenience.--The term 
        `substantial harm or inconvenience' with respect to a consumer 
        means material financial loss to or civil or criminal penalties 
        imposed on the consumer or the need for the consumer to expend 
        significant time and effort to correct erroneous information 
        relating to the consumer, including information maintained by 
        consumer reporting agencies, financial institutions, or 
        government entities, in order to avoid material financial loss 
        or increased costs or civil or criminal penalties, due to 
        unauthorized use of sensitive financial personal information 
        relating to such consumer, but does not include other harm or 
        inconvenience that is not substantial, including changing a 
        financial account number or closing a financial account.
    ``(l) Relation to State Laws.--No requirement or prohibition may be 
imposed under the laws of any State with respect to the 
responsibilities of any person--
            ``(1) to protect the security or confidentiality of 
        information on consumers maintained by or on behalf of the 
        person;
            ``(2) to safeguard such information from potential misuse;
            ``(3) to investigate or provide notices of any unauthorized 
        access to information concerning the consumer, or the potential 
        misuse of such information, for fraudulent purposes; or
            ``(4) to mitigate any loss or harm resulting from such 
        unauthorized access or misuse.''.
    (b) Clerical Amendment.--The table of sections for the Fair Credit 
Reporting Act is amended by inserting after the item relating to 
section 629 the following new item:

``630. Data security safeguards.''.
    (c) Effective Date.--The provisions of section 630 of the Fair 
Credit Reporting Act (as added by this section), other than subsection 
(h) of such section, shall take effect on the date of publication of 
the regulations required under paragraph (3) of such subsection, with 
respect to any person under the jurisdiction of each regulatory agency 
publishing such regulations.
                                 <all>
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