II 

113TH CONGRESS 

2D SESSION S. 1897 

To prevent and mitigate identity theft, to ensure privacy, to provide notice 

of security breaches, and to enhance criminal penalties, law enforcement 

assistance, and other protections against security breaches, fraudulent 

access, and misuse of personally identifiable information. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 8, 2014 

Mr. LEAHY (for himself, Mr. SCHUMER, Mr. FRANKEN, and Mr. 

BLUMENTHAL) introduced the following bill; which was read twice and referred to the Committee on the Judiciary 

A BILL 

To prevent and mitigate identity theft, to ensure privacy, 

to provide notice of security breaches, and to enhance 

criminal penalties, law enforcement assistance, and other 

protections against security breaches, fraudulent access, 

and misuse of personally identifiable information. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Personal Data Privacy and Security Act of 2014’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Definitions. 

TITLE I—ENHANCING PUNISHMENT FOR IDENTITY THEFT AND 

OTHER VIOLATIONS OF DATA PRIVACY AND SECURITY 

Sec. 101. Organized criminal activity in connection with unauthorized access to 

personally identifiable information. 

Sec. 102. Concealment of security breaches involving sensitive personally identifiable information. 

Sec. 103. Penalties for fraud and related activity in connection with computers. 

Sec. 104. Trafficking in passwords. 

Sec. 105. Conspiracy and attempted computer fraud offenses. 

Sec. 106. Criminal and civil forfeiture for fraud and related activity in connection with computers. 

Sec. 107. Limitation on civil actions involving unauthorized use. 

Sec. 108. Reporting of certain criminal cases. 

Sec. 109. Damage to critical infrastructure computers. 

Sec. 110. Limitation on actions involving unauthorized use. 

TITLE II—PRIVACY AND SECURITY OF PERSONALLY 

IDENTIFIABLE INFORMATION 

Subtitle A—A Data Privacy and Security Program 

Sec. 201. Purpose and applicability of data privacy and security program. 

Sec. 202. Requirements for a personal data privacy and security program. 

Sec. 203. Enforcement. 

Sec. 204. Relation to other laws. 

Subtitle B—Security Breach Notification 

Sec. 211. Notice to individuals. 

Sec. 212. Exemptions. 

Sec. 213. Methods of notice. 

Sec. 214. Content of notification. 

Sec. 215. Coordination of notification with credit reporting agencies. 

Sec. 216. Notice to law enforcement. 

Sec. 217. Enforcement. 

Sec. 218. Enforcement by State attorneys general. 

Sec. 219. Effect on Federal and State law. 

Sec. 220. Reporting on exemptions. 

Sec. 221. Effective date. 

TITLE III—COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT 

Sec. 301. Budget compliance. 

1 SEC. 2. FINDINGS. 

2 Congress finds that— 

3 (1) databases of personally identifiable informa4 tion are increasingly prime targets of hackers, idenVerDate Mar 15 2010 23:00 Jan 08, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1897.IS S1897

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1 tity thieves, rogue employees, and other criminals, 

2 including organized and sophisticated criminal oper3 ations; 

4 (2) identity theft is a serious threat to the Na5 tion’s economic stability, national security, homeland 

6 security, cybersecurity, the development of e-com7 merce, and the privacy rights of Americans; 

8 (3) security breaches are a serious threat to 

9 consumer confidence, homeland security, national se10 curity, e-commerce, and economic stability; 

11 (4) it is important for business entities that 

12 own, use, or license personally identifiable informa13 tion to adopt reasonable procedures to ensure the se14 curity, privacy, and confidentiality of that personally 

15 identifiable information; 

16 (5) individuals whose personal information has 

17 been compromised or who have been victims of iden18 tity theft should receive the necessary information 

19 and assistance to mitigate their damages and to re20 store the integrity of their personal information and 

21 identities; 

22 (6) data misuse and use of inaccurate data have 

23 the potential to cause serious or irreparable harm to 

24 an individual’s livelihood, privacy, and liberty and 


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1 undermine efficient and effective business and gov2 ernment operations; 

3 (7) government access to commercial data can 

4 potentially improve safety, law enforcement, and na5 tional security; and 

6 (8) because government use of commercial data 

7 containing personal information potentially affects 

8 individual privacy, and law enforcement and national 

9 security operations, there is a need for Congress to 

10 exercise oversight over government use of commer11 cial data. 

12 SEC. 3. DEFINITIONS. 

13 In this Act, the following definitions shall apply: 

14 (1) AFFILIATE.—The term ‘‘affiliate’’ means 

15 persons related by common ownership or by cor16 porate control. 

17 (2) AGENCY.—The term ‘‘agency’’ has the same 

18 meaning given such term in section 551 of title 5, 

19 United States Code. 

20 (3) BUSINESS ENTITY.—The term ‘‘business 

21 entity’’ means any organization, corporation, trust, 

22 partnership, sole proprietorship, unincorporated as23 sociation, or venture established to make a profit, or 

24 nonprofit. 


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1 (4) DATA SYSTEM COMMUNICATION INFORMA2 TION.—The term ‘‘data system communication in3 formation’’ means dialing, routing, addressing, or 

4 signaling information that identifies the origin, di5 rection, destination, processing, transmission, or ter6 mination of each communication initiated, at7 tempted, or received. 

8 (5) DESIGNATED ENTITY.—The term ‘‘des9 ignated entity’’ means the Federal Government enti10 ty designated by the Secretary of Homeland Security 

11 under section 216(a). 

12 (6) ENCRYPTION.—The term ‘‘encryption’’— 

13 (A) means the protection of data in elec14 tronic form, in storage or in transit, using an 

15 encryption technology that has been generally 

16 accepted by experts in the field of information 

17 security that renders such data indecipherable 

18 in the absence of associated cryptographic keys 

19 necessary to enable decryption of such data; 

20 and 

21 (B) includes appropriate management and 

22 safeguards of such cryptographic keys so as to 

23 protect the integrity of the encryption. 


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1 (7) IDENTITY THEFT.—The term ‘‘identity 

2 theft’’ means a violation of section 1028(a)(7) of 

3 title 18, United States Code. 

4 (8) PERSONALLY IDENTIFIABLE INFORMA5 TION.—The term ‘‘personally identifiable informa6 tion’’ means any information, or compilation of in7 formation, in electronic or digital form that is a 

8 means of identification, as defined by section 

9 1028(d)(7) of title 18, United States Code. 

10 (9) PUBLIC RECORD SOURCE.—The term ‘‘pub11 lic record source’’ means the Congress, any agency, 

12 any State or local government agency, the govern13 ment of the District of Columbia and governments 

14 of the territories or possessions of the United States, 

15 and Federal, State or local courts, courts martial 

16 and military commissions, that maintain personally 

17 identifiable information in records available to the 

18 public. 

19 (10) SECURITY BREACH.— 

20 (A) IN GENERAL.—The term ‘‘security 

21 breach’’ means compromise of the security, con22 fidentiality, or integrity of, or the loss of, com23 puterized data that result in, or that there is a 

24 reasonable basis to conclude has resulted in— 


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1 (i) the unauthorized acquisition of 

2 sensitive personally identifiable informa3 tion; and 

4 (ii) access to sensitive personally iden5 tifiable information that is for an unau6 thorized purpose, or in excess of authoriza7 tion. 

8 (B) EXCLUSION.—The term ‘‘security 

9 breach’’ does not include— 

10 (i) a good faith acquisition of sensitive 

11 personally identifiable information by a 

12 business entity or agency, or an employee 

13 or agent of a business entity or agency, if 

14 the sensitive personally identifiable infor15 mation is not subject to further unauthor16 ized disclosure; 

17 (ii) the release of a public record not 

18 otherwise subject to confidentiality or non19 disclosure requirements or the release of 

20 information obtained from a public record, 

21 including information obtained from a 

22 news report or periodical; or 

23 (iii) any lawfully authorized investiga24 tive, protective, or intelligence activity of a 

25 law enforcement or intelligence agency of 


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1 the United States, a State, or a political 

2 subdivision of a State. 

3 (11) SENSITIVE PERSONALLY IDENTIFIABLE IN4 FORMATION.—The term ‘‘sensitive personally identi5 fiable information’’ means any information or com6 pilation of information, in electronic or digital form 

7 that includes the following: 

8 (A) An individual’s first and last name or 

9 first initial and last name in combination with 

10 any two of the following data elements: 

11 (i) Home address or telephone num12 ber. 

13 (ii) Mother’s maiden name. 

14 (iii) Month, day, and year of birth. 

15 (B) A non-truncated social security num16 ber, driver’s license number, passport number, 

17 or alien registration number or other govern18 ment-issued unique identification number. 

19 (C) Unique biometric data such as a fin20 gerprint, voice print, a retina or iris image, or 

21 any other unique physical representation. 

22 (D) A unique account identifier, including 

23 a financial account number or credit or debit 

24 card number, electronic identification number, 

25 user name, or routing code. 


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1 (E) Any combination of the following data 

2 elements: 

3 (i) An individual’s first and last name 

4 or first initial and last name. 

5 (ii) A unique account identifier, in6 cluding a financial account number or 

7 credit or debit card number, electronic 

8 identification number, user name, or rout9 ing code. 

10 (iii) Any security code, access code, or 

11 password, or source code that could be 

12 used to generate such codes or passwords. 

13 (12) SERVICE PROVIDER.—The term ‘‘service 

14 provider’’ means a business entity that provides elec15 tronic data transmission, routing, intermediate and 

16 transient storage, or connections to its system or 

17 network, where the business entity providing such 

18 services does not select or modify the content of the 

19 electronic data, is not the sender or the intended re20 cipient of the data, and the business entity trans21 mits, routes, stores, or provides connections for per22 sonal information in a manner that personal infor23 mation is undifferentiated from other types of data 

24 that such business entity transmits, routes, stores, 

25 or provides connections. Any such business entity 


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1 shall be treated as a service provider under this Act 

2 only to the extent that it is engaged in the provision 

3 of such transmission, routing, intermediate and 

4 transient storage or connections. 

5 TITLE I—ENHANCING PUNISH6 MENT FOR IDENTITY THEFT 

7 AND OTHER VIOLATIONS OF 

8 DATA PRIVACY AND SECU9 RITY 

10 SEC. 101. ORGANIZED CRIMINAL ACTIVITY IN CONNECTION 

11 WITH UNAUTHORIZED ACCESS TO PERSON12 ALLY IDENTIFIABLE INFORMATION. 

13 Section 1961(1) of title 18, United States Code, is 

14 amended by inserting ‘‘section 1030 (relating to fraud and 

15 related activity in connection with computers) if the act 

16 is a felony,’’ before ‘‘section 1084’’. 

17 SEC. 102. CONCEALMENT OF SECURITY BREACHES INVOLV18 ING SENSITIVE PERSONALLY IDENTIFIABLE 

19 INFORMATION. 

20 (a) IN GENERAL.—Chapter 47 of title 18, United 

21 States Code, is amended by adding at the end the fol22 lowing: 


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1 ‘‘§ 1041. Concealment of security breaches involving 

2 sensitive personally identifiable informa3 tion 

4 ‘‘(a) IN GENERAL.—Whoever, having knowledge of a 

5 security breach and of the fact that notice of such security 

6 breach is required under title II of the Personal Data Pri7 vacy and Security Act of 2014, intentionally and willfully 

8 conceals the fact of such security breach, shall, in the 

9 event that such security breach results in economic harm 

10 to any individual in the amount of $1,000 or more, be 

11 fined under this tile or imprisoned for not more than 5 

12 years, or both. 

13 ‘‘(b) PERSON DEFINED.—For purposes of subsection 

14 (a), the term ‘person’ has the meaning given the term in 

15 section 1030(e)(12). 

16 ‘‘(c) NOTICE REQUIREMENT.—Any person seeking 

17 an exemption under section 212(b) of the Personal Data 

18 Privacy and Security Act of 2014 shall be immune from 

19 prosecution under this section if the Federal Trade Com20 mission does not indicate, in writing, that such notice be 

21 given under section 212(b)(3) of such Act.’’. 

22 (b) CONFORMING AND TECHNICAL AMENDMENTS.— 

23 The table of sections for chapter 47 of title 18, United 

24 States Code, is amended by adding at the end the fol25 lowing: 


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‘‘1041. Concealment of security breaches involving sensitive personally identifiable information.’’. 

1 (c) ENFORCEMENT AUTHORITY.— 

2 (1) IN GENERAL.—The United States Secret 

3 Service and Federal Bureau of Investigation shall 

4 have the authority to investigate offenses under sec5 tion 1041 of title 18, United States Code, as added 

6 by subsection (a). 

7 (2) NONEXCLUSIVITY.—The authority granted 

8 in paragraph (1) shall not be exclusive of any exist9 ing authority held by any other Federal agency. 

10 SEC. 103. PENALTIES FOR FRAUD AND RELATED ACTIVITY 

11 IN CONNECTION WITH COMPUTERS. 

12 Section 1030(c) of title 18, United States Code, is 

13 amended to read as follows: 

14 ‘‘(c) The punishment for an offense under subsection 

15 (a) or (b) of this section is— 

16 ‘‘(1) a fine under this title or imprisonment for 

17 not more than 20 years, or both, in the case of an 

18 offense under subsection (a)(1) of this section; 

19 ‘‘(2)(A) except as provided in subparagraph 

20 (B), a fine under this title or imprisonment for not 

21 more than 3 years, or both, in the case of an offense 

22 under subsection (a)(2); or 


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1 ‘‘(B) a fine under this title or imprisonment for 

2 not more than ten years, or both, in the case of an 

3 offense under paragraph (a)(2) of this section, if— 

4 ‘‘(i) the offense was committed for pur5 poses of commercial advantage or private finan6 cial gain; 

7 ‘‘(ii) the offense was committed in the fur8 therance of any criminal or tortious act in viola9 tion of the Constitution or laws of the United 

10 States, or of any State; or 

11 ‘‘(iii) the value of the information obtained, 

12 or that would have been obtained if the offense 

13 was completed, exceeds $5,000; 

14 ‘‘(3) a fine under this title or imprisonment for 

15 not more than 1 year, or both, in the case of an of16 fense under subsection (a)(3) of this section; 

17 ‘‘(4) a fine under this title or imprisonment of 

18 not more than 20 years, or both, in the case of an 

19 offense under subsection (a)(4) of this section; 

20 ‘‘(5)(A) except as provided in subparagraph 

21 (D), a fine under this title, imprisonment for not 

22 more than 20 years, or both, in the case of an of23 fense under subsection (a)(5)(A) of this section, if 

24 the offense caused— 


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1 ‘‘(i) loss to 1 or more persons during any 

2 1-year period (and, for purposes of an inves3 tigation, prosecution, or other proceeding 

4 brought by the United States only, loss result5 ing from a related course of conduct affecting 

6 1 or more other protected computers) aggre7 gating at least $5,000 in value; 

8 ‘‘(ii) the modification or impairment, or 

9 potential modification or impairment, of the 

10 medical examination, diagnosis, treatment, or 

11 care of 1 or more individuals; 

12 ‘‘(iii) physical injury to any person; 

13 ‘‘(iv) a threat to public health or safety; 

14 ‘‘(v) damage affecting a computer used by, 

15 or on behalf of, an entity of the United States 

16 Government in furtherance of the administra17 tion of justice, national defense, or national se18 curity; or 

19 ‘‘(vi) damage affecting 10 or more pro20 tected computers during any 1-year period; 

21 ‘‘(B) a fine under this title, imprisonment for 

22 not more than 10 years, or both, in the case of an 

23 offense under subsection (a)(5)(B), if the offense 

24 caused a harm provided in clauses (i) through (vi) 

25 of subparagraph (A) of this subsection; 


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1 ‘‘(C) if the offender attempts to cause or know2 ingly or recklessly causes death from conduct in vio3 lation of subsection (a)(5)(A), a fine under this title, 

4 imprisonment for any term of years or for life, or 

5 both; or 

6 ‘‘(D) a fine under this title, imprisonment for 

7 not more than 1 year, or both, for any other offense 

8 under subsection (a)(5); 

9 ‘‘(6) a fine under this title or imprisonment for 

10 not more than 10 years, or both, in the case of an 

11 offense under subsection (a)(6) of this section; or 

12 ‘‘(7) a fine under this title or imprisonment for 

13 not more than 10 years, or both, in the case of an 

14 offense under subsection (a)(7) of this section.’’. 

15 SEC. 104. TRAFFICKING IN PASSWORDS. 

16 Section 1030(a) of title 18, United States Code, is 

17 amended by striking paragraph (6) and inserting the fol18 lowing: 

19 ‘‘(6) knowingly and with intent to defraud traf20 fics (as defined in section 1029) in— 

21 ‘‘(A) any password or similar information 

22 through which a protected computer as defined 

23 in subparagraphs (A) and (B) of subsection 

24 (e)(2) may be accessed without authorization; 

25 or 


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1 ‘‘(B) any means of access through which a 

2 protected computer as defined in subsection 

3 (e)(2)(A) may be accessed without authoriza4 tion.’’. 

5 SEC. 105. CONSPIRACY AND ATTEMPTED COMPUTER 

6 FRAUD OFFENSES. 

7 Section 1030(b) of title 18, United States Code, is 

8 amended by inserting ‘‘for the completed offense’’ after 

9 ‘‘punished as provided’’. 

10 SEC. 106. CRIMINAL AND CIVIL FORFEITURE FOR FRAUD 

11 AND RELATED ACTIVITY IN CONNECTION 

12 WITH COMPUTERS. 

13 Section 1030 of title 18, United States Code, is 

14 amended by striking subsections (i) and (j) and inserting 

15 the following: 

16 ‘‘(i) CRIMINAL FORFEITURE.— 

17 ‘‘(1) The court, in imposing sentence on any 

18 person convicted of a violation of this section, or 

19 convicted of conspiracy to violate this section, shall 

20 order, in addition to any other sentence imposed and 

21 irrespective of any provision of State law, that such 

22 person forfeit to the United States— 

23 ‘‘(A) such person’s interest in any prop24 erty, real or personal, that was used, or inVerDate Mar 15 2010 23:00 Jan 08, 2014 Jkt 039200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1897.IS S1897

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1 tended to be used, to commit or facilitate the 

2 commission of such violation; and 

3 ‘‘(B) any property, real or personal, consti4 tuting or derived from any gross proceeds, or 

5 any property traceable to such property, that 

6 such person obtained, directly or indirectly, as 

7 a result of such violation. 

8 ‘‘(2) The criminal forfeiture of property under 

9 this subsection, including any seizure and disposition 

10 of the property, and any related judicial or adminis11 trative proceeding, shall be governed by the provi12 sions of section 413 of the Comprehensive Drug 

13 Abuse Prevention and Control Act of 1970 (21 

14 U.S.C. 853), except subsection (d) of that section. 

15 ‘‘(j) CIVIL FORFEITURE.— 

16 ‘‘(1) The following shall be subject to forfeiture 

17 to the United States and no property right, real or 

18 personal, shall exist in them: 

19 ‘‘(A) Any property, real or personal, that 

20 was used, or intended to be used, to commit or 

21 facilitate the commission of any violation of this 

22 section, or a conspiracy to violate this section. 

23 ‘‘(B) Any property, real or personal, con24 stituting or derived from any gross proceeds ob25 tained directly or indirectly, or any property 


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1 traceable to such property, as a result of the 

2 commission of any violation of this section, or 

3 a conspiracy to violate this section. 

4 ‘‘(2) Seizures and forfeitures under this sub5 section shall be governed by the provisions in chap6 ter 46 relating to civil forfeitures, except that such 

7 duties as are imposed on the Secretary of the Treas8 ury under the customs laws described in section 

9 981(d) shall be performed by such officers, agents 

10 and other persons as may be designated for that 

11 purpose by the Secretary of Homeland Security or 

12 the Attorney General.’’. 

13 SEC. 107. LIMITATION ON CIVIL ACTIONS INVOLVING UNAU14 THORIZED USE. 

15 Section 1030(g) of title 18, United States Code, is 

16 amended— 

17 (1) by inserting ‘‘(1)’’ before ‘‘Any person’’; 

18 and 

19 (2) by adding at the end the following: 

20 ‘‘(2) No action may be brought under this subsection 

21 if a violation of a contractual obligation or agreement, 

22 such as an acceptable use policy or terms of service agree23 ment, constitutes the sole basis for determining that ac24 cess to the protected computer is unauthorized, or in ex25 cess of authorization.’’. 


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1 SEC. 108. REPORTING OF CERTAIN CRIMINAL CASES. 

2 Section 1030 of title 18, United States Code, is 

3 amended by adding at the end the following: 

4 ‘‘(k) REPORTING CERTAIN CRIMINAL CASES.—Not 

5 later than 1 year after the date of the enactment of this 

6 Act, and annually thereafter, the Attorney General shall 

7 report to the Committee on the Judiciary of the Senate 

8 and the Committee on the Judiciary of the House of Rep9 resentatives the number of criminal cases brought under 

10 subsection (a) that involve conduct in which— 

11 ‘‘(1) the defendant— 

12 ‘‘(A) exceeded authorized access to a non13 governmental computer; or 

14 ‘‘(B) accessed a non-governmental com15 puter without authorization; and 

16 ‘‘(2) the sole basis for the Government deter17 mining that access to the non-governmental com18 puter was unauthorized, or in excess of authoriza19 tion was that the defendant violated a contractual 

20 obligation or agreement with a service provider or 

21 employer, such as an acceptable use policy or terms 

22 of service agreement.’’. 


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1 SEC. 109. DAMAGE TO CRITICAL INFRASTRUCTURE COM2 PUTERS. 

3 (a) IN GENERAL.—Chapter 47 of title 18, United 

4 States Code, is amended by inserting after section 1030 

5 the following: 

6 ‘‘§ 1030A. Aggravated damage to a critical infrastruc7 ture computer 

8 ‘‘(a) DEFINITIONS.—In this section— 

9 ‘‘(1) the terms ‘computer’ and ‘damage’ have 

10 the meanings given such terms in section 1030; and 

11 ‘‘(2) the term ‘critical infrastructure computer’ 

12 means a computer that manages or controls systems 

13 or assets vital to national defense, national security, 

14 national economic security, public health or safety, 

15 or any combination of those matters, whether pub16 licly or privately owned or operated, including— 

17 ‘‘(A) gas and oil production, storage, and 

18 delivery systems; 

19 ‘‘(B) water supply systems; 

20 ‘‘(C) telecommunication networks; 

21 ‘‘(D) electrical power delivery systems; 

22 ‘‘(E) finance and banking systems; 

23 ‘‘(F) emergency services; 

24 ‘‘(G) transportation systems and services; 

25 and 


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1 ‘‘(H) government operations that provide 

2 essential services to the public. 

3 ‘‘(b) OFFENSE.—It shall be unlawful to, during and 

4 in relation to a felony violation of section 1030, inten5 tionally cause or attempt to cause damage to a critical 

6 infrastructure computer, and such damage results in (or, 

7 in the case of an attempt, would, if completed have re8 sulted in) the substantial impairment— 

9 ‘‘(1) of the operation of the critical infrastruc10 ture computer; or 

11 ‘‘(2) of the critical infrastructure associated 

12 with the computer. 

13 ‘‘(c) PENALTY.—Any person who violates subsection 

14 (b) shall be fined under this title, imprisoned for not less 

15 than 3 years nor more than 20 years, or both. 

16 ‘‘(d) CONSECUTIVE SENTENCE.—Notwithstanding 

17 any other provision of law— 

18 ‘‘(1) a court shall not place on probation any 

19 person convicted of a violation of this section; 

20 ‘‘(2) except as provided in paragraph (4), no 

21 term of imprisonment imposed on a person under 

22 this section shall run concurrently with any other 

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1 vision of law, including any term of imprisonment 

2 imposed for the felony violation section 1030; 

3 ‘‘(3) in determining any term of imprisonment 

4 to be imposed for a felony violation of section 1030, 

5 a court shall not in any way reduce the term to be 

6 imposed for such crime so as to compensate for, or 

7 otherwise take into account, any separate term of 

8 imprisonment imposed or to be imposed for a viola9 tion of this section; and 

10 ‘‘(4) a term of imprisonment imposed on a per11 son for a violation of this section may, in the discre12 tion of the court, run concurrently, in whole or in 

13 part, only with another term of imprisonment that 

14 is imposed by the court at the same time on that 

15 person for an additional violation of this section, 

16 provided that such discretion shall be exercised in 

17 accordance with any applicable guidelines and policy 

18 statements issued by the United States Sentencing 

19 Commission pursuant to section 994 of title 28.’’. 

20 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

21 The table of sections for chapter 47 of title 18, United 

22 States Code, is amended by inserting after the item relat23 ing to section 1030 the following: 

‘‘1030A. Aggravated damage to a critical infrastructure computer.’’. 


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1 SEC. 110. LIMITATION ON ACTIONS INVOLVING UNAUTHOR2 IZED USE. 

3 Section 1030(e)(6) of title 18, United States Code, 

4 is amended by striking ‘‘alter;’’ and inserting ‘‘alter, but 

5 does not include access in violation of a contractual obliga6 tion or agreement, such as an acceptable use policy or 

7 terms of service agreement, with an Internet service pro8 vider, Internet website, or non-government employer, if 

9 such violation constitutes the sole basis for determining 

10 that access to a protected computer is unauthorized;’’. 

11 TITLE II—PRIVACY AND SECU12 RITY OF PERSONALLY IDEN13 TIFIABLE INFORMATION 

14 Subtitle A—A Data Privacy and 

15 Security Program 

16 SEC. 201. PURPOSE AND APPLICABILITY OF DATA PRIVACY 

17 AND SECURITY PROGRAM. 

18 (a) PURPOSE.—The purpose of this subtitle is to en19 sure standards for developing and implementing adminis20 trative, technical, and physical safeguards to protect the 

21 security of sensitive personally identifiable information. 

22 (b) APPLICABILITY.—A business entity engaging in 

23 interstate commerce that involves collecting, accessing, 

24 transmitting, using, storing, or disposing of sensitive per25 sonally identifiable information in electronic or digital 

26 form on 10,000 or more United States persons is subject 


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1 to the requirements for a data privacy and security pro2 gram under section 202 for protecting sensitive personally 

3 identifiable information. 

4 (c) LIMITATIONS.—Notwithstanding any other obli5 gation under this subtitle, this subtitle does not apply to 

6 the following: 

7 (1) FINANCIAL INSTITUTIONS.—Financial insti8 tutions— 

9 (A) subject to the data security require10 ments and standards under section 501(b) of 

11 the Gramm-Leach-Bliley Act (15 U.S.C. 

12 6801(b)); and 

13 (B) subject to the jurisdiction of an agency 

14 or authority described in section 505(a) of the 

15 Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)). 

16 (2) HIPAA REGULATED ENTITIES.— 

17 (A) COVERED ENTITIES.—Covered entities 

18 subject to the Health Insurance Portability and 

19 Accountability Act of 1996 (42 U.S.C. 1301 et 

20 seq.), including the data security requirements 

21 and implementing regulations of that Act. 

22 (B) BUSINESS ENTITIES.—A business enti23 ty shall be deemed in compliance with this Act 

24 if the business entity— 


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1 (i) is acting as a business associate, 

2 as that term is defined under the Health 

3 Insurance Portability and Accountability 

4 Act of 1996 (42 U.S.C. 1301 et seq.) and 

5 is in compliance with the requirements im6 posed under that Act and implementing 

7 regulations promulgated under that Act; 

8 and 

9 (ii) is subject to, and currently in 

10 compliance, with the privacy and data se11 curity requirements under sections 13401 

12 and 13404 of division A of the American 

13 Reinvestment and Recovery Act of 2009 

14 (42 U.S.C. 17931 and 17934) and imple15 menting regulations promulgated under 

16 such sections. 

17 (3) SERVICE PROVIDERS.—A service provider 

18 for any electronic communication by a third party, 

19 to the extent that the service provider is exclusively 

20 engaged in the transmission, routing, or temporary, 

21 intermediate, or transient storage of that commu22 nication. 

23 (4) PUBLIC RECORDS.—Public records not oth24 erwise subject to a confidentiality or nondisclosure 

25 requirement, or information obtained from a public 


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1 record, including information obtained from a news 

2 report or periodical. 

3 (d) SAFE HARBORS.— 

4 (1) IN GENERAL.—A business entity shall be 

5 deemed in compliance with the privacy and security 

6 program requirements under section 202 if the busi7 ness entity complies with or provides protection 

8 equal to industry standards or standards widely ac9 cepted as an effective industry practice, as identified 

10 by the Federal Trade Commission, that are applica11 ble to the type of sensitive personally identifiable in12 formation involved in the ordinary course of business 

13 of such business entity. 

14 (2) LIMITATION.—Nothing in this subsection 

15 shall be construed to permit, and nothing does per16 mit, the Federal Trade Commission to issue regula17 tions requiring, or according greater legal status to, 

18 the implementation of or application of a specific 

19 technology or technological specifications for meeting 

20 the requirements of this title. 

21 SEC. 202. REQUIREMENTS FOR A PERSONAL DATA PRIVACY 

22 AND SECURITY PROGRAM. 

23 (a) PERSONAL DATA PRIVACY AND SECURITY PRO24 GRAM.—A business entity subject to this subtitle shall 

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1 ministrative, technical, or physical safeguards identified by 

2 the Federal Trade Commission in a rulemaking process 

3 pursuant to section 553 of title 5, United States Code, 

4 for the protection of sensitive personally identifiable infor5 mation: 

6 (1) SCOPE.—A business entity shall implement 

7 a comprehensive personal data privacy and security 

8 program that includes administrative, technical, and 

9 physical safeguards appropriate to the size and com10 plexity of the business entity and the nature and 

11 scope of its activities. 

12 (2) DESIGN.—The personal data privacy and 

13 security program shall be designed to— 

14 (A) ensure the privacy, security, and con15 fidentiality of sensitive personally identifying in16 formation; 

17 (B) protect against any anticipated 

18 vulnerabilities to the privacy, security, or integ19 rity of sensitive personally identifying informa20 tion; and 

21 (C) protect against unauthorized access to 

22 use of sensitive personally identifying informa23 tion that could create a significant risk of harm 

24 or fraud to any individual. 


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1 (3) RISK ASSESSMENT.—A business entity 

2 shall— 

3 (A) identify reasonably foreseeable internal 

4 and external vulnerabilities that could result in 

5 unauthorized access, disclosure, use, or alter6 ation of sensitive personally identifiable infor7 mation or systems containing sensitive person8 ally identifiable information; 

9 (B) assess the likelihood of and potential 

10 damage from unauthorized access, disclosure, 

11 use, or alteration of sensitive personally identifi12 able information; 

13 (C) assess the sufficiency of its policies, 

14 technologies, and safeguards in place to control 

15 and minimize risks from unauthorized access, 

16 disclosure, use, or alteration of sensitive person17 ally identifiable information; and 

18 (D) assess the vulnerability of sensitive 

19 personally identifiable information during de20 struction and disposal of such information, in21 cluding through the disposal or retirement of 

22 hardware. 

23 (4) RISK MANAGEMENT AND CONTROL.—Each 

24 business entity shall— 


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1 (A) design its personal data privacy and 

2 security program to control the risks identified 

3 under paragraph (3); 

4 (B) adopt measures commensurate with 

5 the sensitivity of the data as well as the size, 

6 complexity, and scope of the activities of the 

7 business entity that— 

8 (i) control access to systems and fa9 cilities containing sensitive personally iden10 tifiable information, including controls to 

11 authenticate and permit access only to au12 thorized individuals; 

13 (ii) detect, record, and preserve infor14 mation relevant to actual and attempted 

15 fraudulent, unlawful, or unauthorized ac16 cess, disclosure, use, or alteration of sen17 sitive personally identifiable information, 

18 including by employees and other individ19 uals otherwise authorized to have access; 

20 (iii) protect sensitive personally identi21 fiable information during use, trans22 mission, storage, and disposal by 

23 encryption, redaction, or access controls 

24 that are widely accepted as an effective in25 dustry practice or industry standard, or 


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1 other reasonable means (including as di2 rected for disposal of records under section 

3 628 of the Fair Credit Reporting Act (15 

4 U.S.C. 1681w) and the implementing regu5 lations of such Act as set forth in section 

6 682 of title 16, Code of Federal Regula7 tions); 

8 (iv) ensure that sensitive personally 

9 identifiable information is properly de10 stroyed and disposed of, including during 

11 the destruction of computers, diskettes, 

12 and other electronic media that contain 

13 sensitive personally identifiable informa14 tion; 

15 (v) trace access to records containing 

16 sensitive personally identifiable information 

17 so that the business entity can determine 

18 who accessed or acquired such sensitive 

19 personally identifiable information per20 taining to specific individuals; and 

21 (vi) ensure that no third party or cus22 tomer of the business entity is authorized 

23 to access or acquire sensitive personally 

24 identifiable information without the busi25 ness entity first performing sufficient due 


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1 diligence to ascertain, with reasonable cer2 tainty, that such information is being 

3 sought for a valid legal purpose; and 

4 (C) establish a plan and procedures for 

5 minimizing the amount of sensitive personally 

6 identifiable information maintained by such 

7 business entity, which shall provide for the re8 tention of sensitive personally identifiable infor9 mation only as reasonably needed for the busi10 ness purposes of such business entity or as nec11 essary to comply with any legal obligation. 

12 (b) TRAINING.—Each business entity subject to this 

13 subtitle shall take steps to ensure employee training and 

14 supervision for implementation of the data security pro15 gram of the business entity. 

16 (c) VULNERABILITY TESTING.— 

17 (1) IN GENERAL.—Each business entity subject 

18 to this subtitle shall take steps to ensure regular 

19 testing of key controls, systems, and procedures of 

20 the personal data privacy and security program to 

21 detect, prevent, and respond to attacks or intrusions, 

22 or other system failures. 

23 (2) FREQUENCY.—The frequency and nature of 

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1 termined by the risk assessment of the business enti2 ty under subsection (a)(3). 

3 (d) RELATIONSHIP TO CERTAIN PROVIDERS OF

4 SERVICES.—In the event a business entity subject to this 

5 subtitle engages a person or entity not subject to this sub6 title (other than a service provider) to receive sensitive 

7 personally identifiable information in performing services 

8 or functions (other than the services or functions provided 

9 by a service provider) on behalf of and under the instruc10 tion of such business entity, such business entity shall— 

11 (1) exercise appropriate due diligence in select12 ing the person or entity for responsibilities related to 

13 sensitive personally identifiable information, and 

14 take reasonable steps to select and retain a person 

15 or entity that is capable of maintaining appropriate 

16 safeguards for the security, privacy, and integrity of 

17 the sensitive personally identifiable information at 

18 issue; and 

19 (2) require the person or entity by contract to 

20 implement and maintain appropriate measures de21 signed to meet the objectives and requirements gov22 erning entities subject to section 201, this section, 

23 and subtitle B. 

24 (e) PERIODIC ASSESSMENT AND PERSONAL DATA

25 PRIVACY AND SECURITY MODERNIZATION.—Each busiVerDate Mar 15 2010 23:00 Jan 08, 2014 Jkt 039200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S1897.IS S1897

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1 ness entity subject to this subtitle shall on a regular basis 

2 monitor, evaluate, and adjust, as appropriate its data pri3 vacy and security program in light of any relevant changes 

4 in— 

5 (1) technology; 

6 (2) the sensitivity of personally identifiable in7 formation; 

8 (3) internal or external threats to personally 

9 identifiable information; and 

10 (4) the changing business arrangements of the 

11 business entity, such as— 

12 (A) mergers and acquisitions; 

13 (B) alliances and joint ventures; 

14 (C) outsourcing arrangements; 

15 (D) bankruptcy; and 

16 (E) changes to sensitive personally identifi17 able information systems. 

18 (f) IMPLEMENTATION TIMELINE.—Not later than 1 

19 year after the date of enactment of this Act, a business 

20 entity subject to the provisions of this subtitle shall imple21 ment a data privacy and security program pursuant to this 

22 subtitle. 

23 SEC. 203. ENFORCEMENT. 

24 (a) CIVIL PENALTIES.— 


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1 (1) IN GENERAL.—Any business entity that vio2 lates the provisions of section 201 or 202 shall be 

3 subject to civil penalties of not more than $5,000 

4 per violation per day while such a violation exists, 

5 with a maximum of $500,000 per violation. 

6 (2) INTENTIONAL OR WILLFUL VIOLATION.—A 

7 business entity that intentionally or willfully violates 

8 the provisions of section 201 or 202 shall be subject 

9 to additional penalties in the amount of $5,000 per 

10 violation per day while such a violation exists, with 

11 a maximum of an additional $500,000 per violation. 

12 (3) PENALTY LIMITS.— 

13 (A) IN GENERAL.—Notwithstanding any 

14 other provision of law, the total sum of civil 

15 penalties assessed against a business entity for 

16 all violations of the provisions of this subtitle 

17 resulting from the same or related acts or omis18 sions shall not exceed $500,000, unless such 

19 conduct is found to be willful or intentional. 

20 (B) DETERMINATIONS.—The determina21 tion of whether a violation of a provision of this 

22 subtitle has occurred, and if so, the amount of 

23 the penalty to be imposed, if any, shall be made 

24 by the court sitting as the finder of fact. The 

25 determination of whether a violation of a proviVerDate Mar 15 2010 02:55 Jan 09, 2014 Jkt 039200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S1897.IS S1897

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1 sion of this subtitle was willful or intentional, 

2 and if so, the amount of the additional penalty 

3 to be imposed, if any, shall be made by the 

4 court sitting as the finder of fact. 

5 (C) ADDITIONAL PENALTY LIMIT.—If a 

6 court determines under subparagraph (B) that 

7 a violation of a provision of this subtitle was 

8 willful or intentional and imposes an additional 

9 penalty, the court may not impose an additional 

10 penalty in an amount that exceeds $500,000. 

11 (4) EQUITABLE RELIEF.—A business entity en12 gaged in interstate commerce that violates this sec13 tion may be enjoined from further violations by a 

14 United States district court. 

15 (5) OTHER RIGHTS AND REMEDIES.—The 

16 rights and remedies available under this section are 

17 cumulative and shall not affect any other rights and 

18 remedies available under law. 

19 (b) FEDERAL TRADE COMMISSION AUTHORITY.— 

20 Any business entity shall have the provisions of this sub21 title enforced against it by the Federal Trade Commission. 

22 (c) STATE ENFORCEMENT.— 

23 (1) CIVIL ACTIONS.—In any case in which the 

24 attorney general of a State or any State or local law 

25 enforcement agency authorized by the State attorney 


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1 general or by State statute to prosecute violations of 

2 consumer protection law, has reason to believe that 

3 an interest of the residents of that State has been 

4 or is threatened or adversely affected by the acts or 

5 practices of a business entity that violate this sub6 title, the State may bring a civil action on behalf of 

7 the residents of that State in a district court of the 

8 United States of appropriate jurisdiction to— 

9 (A) enjoin that act or practice; 

10 (B) enforce compliance with this subtitle; 

11 or 

12 (C) obtain civil penalties of not more than 

13 $5,000 per violation per day while such viola14 tions persist, up to a maximum of $500,000 per 

15 violation. 

16 (2) PENALTY LIMITS.— 

17 (A) IN GENERAL.—Notwithstanding any 

18 other provision of law, the total sum of civil 

19 penalties assessed against a business entity for 

20 all violations of the provisions of this subtitle 

21 resulting from the same or related acts or omis22 sions shall not exceed $500,000, unless such 

23 conduct is found to be willful or intentional. 

24 (B) DETERMINATIONS.—The determina25 tion of whether a violation of a provision of this 


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1 subtitle has occurred, and if so, the amount of 

2 the penalty to be imposed, if any, shall be made 

3 by the court sitting as the finder of fact. The 

4 determination of whether a violation of a provi5 sion of this subtitle was willful or intentional, 

6 and if so, the amount of the additional penalty 

7 to be imposed, if any, shall be made by the 

8 court sitting as the finder of fact. 

9 (C) ADDITIONAL PENALTY LIMIT.—If a 

10 court determines under subparagraph (B) that 

11 a violation of a provision of this subtitle was 

12 willful or intentional and imposes an additional 

13 penalty, the court may not impose an additional 

14 penalty in an amount that exceeds $500,000. 

15 (3) NOTICE.— 

16 (A) IN GENERAL.—Before filing an action 

17 under this subsection, the attorney general of 

18 the State involved shall provide to the Federal 

19 Trade Commission— 

20 (i) a written notice of that action; and 

21 (ii) a copy of the complaint for that 

22 action. 

23 (B) EXCEPTION.—Subparagraph (A) shall 

24 not apply with respect to the filing of an action 

25 by an attorney general of a State under this 


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1 subsection, if the attorney general of a State 

2 determines that it is not feasible to provide the 

3 notice described in this subparagraph before the 

4 filing of the action. 

5 (C) NOTIFICATION WHEN PRACTICABLE.— 

6 In an action described under subparagraph (B), 

7 the attorney general of a State shall provide the 

8 written notice and the copy of the complaint to 

9 the Federal Trade Commission as soon after 

10 the filing of the complaint as practicable. 

11 (4) FEDERAL TRADE COMMISSION AUTHOR12 ITY.—Upon receiving notice under paragraph (2), 

13 the Federal Trade Commission shall have the right 

14 to— 

15 (A) move to stay the action, pending the 

16 final disposition of a pending Federal pro17 ceeding or action as described in paragraph (4); 

18 (B) intervene in an action brought under 

19 paragraph (1); and 

20 (C) file petitions for appeal. 

21 (5) PENDING PROCEEDINGS.—If the Federal 

22 Trade Commission initiates a Federal civil action for 

23 a violation of this subtitle, or any regulations there24 under, no attorney general of a State may bring an 

25 action for a violation of this subtitle that resulted 


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1 from the same or related acts or omissions against 

2 a defendant named in the Federal civil action initi3 ated by the Federal Trade Commission. 

4 (6) RULE OF CONSTRUCTION.—For purposes of 

5 bringing any civil action under paragraph (1) noth6 ing in this subtitle shall be construed to prevent an 

7 attorney general of a State from exercising the pow8 ers conferred on the attorney general by the laws of 

9 that State to— 

10 (A) conduct investigations; 

11 (B) administer oaths and affirmations; or 

12 (C) compel the attendance of witnesses or 

13 the production of documentary and other evi14 dence. 

15 (7) VENUE; SERVICE OF PROCESS.— 

16 (A) VENUE.—Any action brought under 

17 this subsection may be brought in the district 

18 court of the United States that meets applicable 

19 requirements relating to venue under section 

20 1391 of title 28, United States Code. 

21 (B) SERVICE OF PROCESS.—In an action 

22 brought under this subsection, process may be 

23 served in any district in which the defendant— 

24 (i) is an inhabitant; or 

25 (ii) may be found. 


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1 (d) NO PRIVATE CAUSE OF ACTION.—Nothing in 

2 this subtitle establishes a private cause of action against 

3 a business entity for violation of any provision of this sub4 title. 

5 SEC. 204. RELATION TO OTHER LAWS. 

6 (a) IN GENERAL.—No State may require any busi7 ness entity subject to this subtitle to comply with any re8 quirements with respect to administrative, technical, and 

9 physical safeguards for the protection of personal informa10 tion. 

11 (b) LIMITATIONS.—Nothing in this subtitle shall be 

12 construed to modify, limit, or supersede the operation of 

13 the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) or 

14 its implementing regulations, including those adopted or 

15 enforced by States. 

16 Subtitle B—Security Breach 

17 Notification 

18 SEC. 211. NOTICE TO INDIVIDUALS. 

19 (a) IN GENERAL.—Except as provided in section 212, 

20 any agency, or business entity engaged in interstate com21 merce, other than a service provider, that uses, accesses, 

22 transmits, stores, disposes of or collects sensitive person23 ally identifiable information shall, following the discovery 

24 of a security breach of such information, notify any resi25 dent of the United States whose sensitive personally idenVerDate Mar 15 2010 23:00 Jan 08, 2014 Jkt 039200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S1897.IS S1897

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1 tifiable information has been, or is reasonably believed to 

2 have been, accessed, or acquired. 

3 (b) OBLIGATION OF OWNER OR LICENSEE.— 

4 (1) NOTICE TO OWNER OR LICENSEE.—Any 

5 agency, or business entity engaged in interstate com6 merce, that uses, accesses, transmits, stores, dis7 poses of, or collects sensitive personally identifiable 

8 information that the agency or business entity does 

9 not own or license shall notify the owner or licensee 

10 of the information following the discovery of a secu11 rity breach involving such information. 

12 (2) NOTICE BY OWNER, LICENSEE, OR OTHER

13 DESIGNATED THIRD PARTY.—Nothing in this sub14 title shall prevent or abrogate an agreement between 

15 an agency or business entity required to give notice 

16 under this section and a designated third party, in17 cluding an owner or licensee of the sensitive person18 ally identifiable information subject to the security 

19 breach, to provide the notifications required under 

20 subsection (a). 

21 (3) BUSINESS ENTITY RELIEVED FROM GIVING

22 NOTICE.—A business entity obligated to give notice 

23 under subsection (a) shall be relieved of such obliga24 tion if an owner or licensee of the sensitive person25 ally identifiable information subject to the security 


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1 breach, or other designated third party, provides 

2 such notification. 

3 (4) SERVICE PROVIDERS.—If a service provider 

4 becomes aware of a security breach of data in elec5 tronic form containing sensitive personal information 

6 that is owned or possessed by another business enti7 ty that connects to or uses a system or network pro8 vided by the service provider for the purpose of 

9 transmitting, routing, or providing intermediate or 

10 transient storage of such data, the service provider 

11 shall be required to notify the business entity who 

12 initiated such connection, transmission, routing, or 

13 storage of the security breach if the business entity 

14 can be reasonably identified. Upon receiving such 

15 notification from a service provider, the business en16 tity shall be required to provide the notification re17 quired under subsection (a). 

18 (c) TIMELINESS OF NOTIFICATION.— 

19 (1) IN GENERAL.—All notifications required 

20 under this section shall be made without unreason21 able delay following the discovery by the agency or 

22 business entity of a security breach. 

23 (2) REASONABLE DELAY.— 

24 (A) IN GENERAL.—Reasonable delay under 

25 this subsection may include any time necessary 


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1 to determine the scope of the security breach, 

2 prevent further disclosures, conduct the risk as3 sessment described in section 202(a)(3), and re4 store the reasonable integrity of the data sys5 tem and provide notice to law enforcement 

6 when required. 

7 (B) EXTENSION.— 

8 (i) IN GENERAL.—Except as provided 

9 in subsection (d), delay of notification shall 

10 not exceed 60 days following the discovery 

11 of the security breach, unless the business 

12 entity or agency requests an extension of 

13 time and the Federal Trade Commission 

14 determines in writing that additional time 

15 is reasonably necessary to determine the 

16 scope of the security breach, prevent fur17 ther disclosures, conduct the risk assess18 ment, restore the reasonable integrity of 

19 the data system, or to provide notice to the 

20 designated entity. 

21 (ii) APPROVAL OF REQUEST.—If the 

22 Federal Trade Commission approves the 

23 request for delay, the agency or business 

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1 cation for additional periods of up to 30 

2 days. 

3 (3) BURDEN OF PRODUCTION.—The agency, 

4 business entity, owner, or licensee required to pro5 vide notice under this subtitle shall, upon the re6 quest of the Attorney General or the Federal Trade 

7 Commission provide records or other evidence of the 

8 notifications required under this subtitle, including 

9 to the extent applicable, the reasons for any delay of 

10 notification. 

11 (d) DELAY OF NOTIFICATION AUTHORIZED FOR LAW

12 ENFORCEMENT OR NATIONAL SECURITY PURPOSES.— 

13 (1) IN GENERAL.—If the United States Secret 

14 Service or the Federal Bureau of Investigation de15 termines that the notification required under this 

16 section would impede a criminal investigation, or na17 tional security activity, such notification shall be de18 layed upon written notice from the United States 

19 Secret Service or the Federal Bureau of Investiga20 tion to the agency or business entity that experi21 enced the breach. The notification from the United 

22 States Secret Service or the Federal Bureau of In23 vestigation shall specify in writing the period of 

24 delay requested for law enforcement or national se25 curity purposes. 


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1 (2) EXTENDED DELAY OF NOTIFICATION.—If 

2 the notification required under subsection (a) is de3 layed pursuant to paragraph (1), an agency or busi4 ness entity shall give notice 30 days after the day 

5 such law enforcement or national security delay was 

6 invoked unless a Federal law enforcement or intel7 ligence agency provides written notification that fur8 ther delay is necessary. 

9 (3) LAW ENFORCEMENT IMMUNITY.—No non10 constitutional cause of action shall lie in any court 

11 against any agency for acts relating to the delay of 

12 notification for law enforcement or national security 

13 purposes under this subtitle. 

14 (e) LIMITATIONS.—Notwithstanding any other obli15 gation under this subtitle, this subtitle does not apply to 

16 the following: 

17 (1) FINANCIAL INSTITUTIONS.—Financial insti18 tutions— 

19 (A) subject to the data security require20 ments and standards under section 501(b) of 

21 the Gramm-Leach-Bliley Act (15 U.S.C. 

22 6801(b)); and 

23 (B) subject to the jurisdiction of an agency 

24 or authority described in section 505(a) of the 

25 Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)). 


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1 (2) HIPAA REGULATED ENTITIES.— 

2 (A) COVERED ENTITIES.—Covered entities 

3 subject to the Health Insurance Portability and 

4 Accountability Act of 1996 (42 U.S.C. 1301 et 

5 seq.), including the data security requirements 

6 and implementing regulations of that Act. 

7 (B) BUSINESS ENTITIES.—A business enti8 ty shall be deemed in compliance with this Act 

9 if the business entity— 

10 (i)(I) is acting as a covered entity and 

11 as a business associate, as those terms are 

12 defined under the Health Insurance Port13 ability and Accountability Act of 1996 (42 

14 U.S.C. 1301 et seq.) and is in compliance 

15 with the requirements imposed under that 

16 Act and implementing regulations promul17 gated under that Act; and 

18 (II) is subject to, and currently in 

19 compliance, with the data breach notifica20 tion, privacy and data security require21 ments under the Health Information Tech22 nology for Economic and Clinical Health 

23 (HITECH) Act, (42 U.S.C. 17932) and 

24 implementing regulations promulgated 

25 thereunder; or 


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1 (ii) is acting as a vendor of personal 

2 health records and third party service pro3 vider, subject to the Health Information 

4 Technology for Economic and Clinical 

5 Health (HITECH) Act (42 U.S.C. 17937), 

6 including the data breach notification re7 quirements and implementing regulations 

8 of that Act. 

9 SEC. 212. EXEMPTIONS. 

10 (a) EXEMPTION FOR NATIONAL SECURITY AND LAW

11 ENFORCEMENT.— 

12 (1) IN GENERAL.—Section 211 shall not apply 

13 to an agency or business entity if— 

14 (A) the United States Secret Service or the 

15 Federal Bureau of Investigation determines 

16 that notification of the security breach could be 

17 expected to reveal sensitive sources and meth18 ods or similarly impede the ability of the Gov19 ernment to conduct law enforcement investiga20 tions; or 

21 (B) the Federal Bureau of Investigation 

22 determines that notification of the security 

23 breach could be expected to cause damage to 

24 the national security. 


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1 (2) IMMUNITY.—No non-constitutional cause of 

2 action shall lie in any court against any Federal 

3 agency for acts relating to the exemption from noti4 fication for law enforcement or national security 

5 purposes under this title. 

6 (b) SAFE HARBOR.— 

7 (1) IN GENERAL.—An agency or business entity 

8 shall be exempt from the notice requirements under 

9 section 211, if— 

10 (A) a risk assessment conducted by the 

11 agency or business entity concludes that, based 

12 upon the information available, there is no sig13 nificant risk that a security breach has resulted 

14 in, or will result in, identity theft, economic loss 

15 or harm, or physical harm to the individuals 

16 whose sensitive personally identifiable informa17 tion was subject to the security breach; 

18 (B) without unreasonable delay, but not 

19 later than 45 days after the discovery of a secu20 rity breach, unless extended by the Federal 

21 Trade Commission, the agency or business enti22 ty notifies the Federal Trade Commission, in 

23 writing, of— 

24 (i) the results of the risk assessment; 

25 and 


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1 (ii) its decision to invoke the risk as2 sessment exemption; and 

3 (C) the Federal Trade Commission does 

4 not indicate, in writing, within 10 business days 

5 from receipt of the decision, that notice should 

6 be given. 

7 (2) REBUTTABLE PRESUMPTIONS.—For pur8 poses of paragraph (1)— 

9 (A) the encryption of sensitive personally 

10 identifiable information described in paragraph 

11 (1)(A)(i) shall establish a rebuttable presump12 tion that no significant risk exists; and 

13 (B) the rendering of sensitive personally 

14 identifiable information described in paragraph 

15 (1)(A)(ii) unusable, unreadable, or indecipher16 able through data security technology or meth17 odology that is generally accepted by experts in 

18 the field of information security, such as redac19 tion or access controls shall establish a rebutta20 ble presumption that no significant risk exists. 

21 (3) VIOLATION.—It shall be a violation of this 

22 section to— 

23 (A) fail to conduct the risk assessment in 

24 a reasonable manner, or according to standards 


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1 generally accepted by experts in the field of in2 formation security; or 

3 (B) submit the results of a risk assessment 

4 that contains fraudulent or deliberately mis5 leading information. 

6 (c) FINANCIAL FRAUD PREVENTION EXEMPTION.— 

7 (1) IN GENERAL.—A business entity will be ex8 empt from the notice requirement under section 211 

9 if the business entity utilizes or participates in a se10 curity program that— 

11 (A) effectively blocks the use of the sen12 sitive personally identifiable information to ini13 tiate unauthorized financial transactions before 

14 they are charged to the account of the indi15 vidual; and 

16 (B) provides for notice to affected individ17 uals after a security breach that has resulted in 

18 fraud or unauthorized transactions. 

19 (2) LIMITATION.—The exemption in paragraph 

20 (1) does not apply if the information subject to the 

21 security breach includes an individual’s first and last 

22 name, or any other type of sensitive personally iden23 tifiable information as defined in section 3, unless 

24 that information is only a credit card number or 

25 credit card security code. 


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1 SEC. 213. METHODS OF NOTICE. 

2 An agency or business entity shall be in compliance 

3 with section 211 if it provides the following: 

4 (1) INDIVIDUAL NOTICE.—Notice to individuals 

5 by one of the following means: 

6 (A) Written notification to the last known 

7 home mailing address of the individual in the 

8 records of the agency or business entity. 

9 (B) Telephone notice to the individual per10 sonally. 

11 (C) E-mail notice, if the individual has 

12 consented to receive such notice and the notice 

13 is consistent with the provisions permitting elec14 tronic transmission of notices under section 101 

15 of the Electronic Signatures in Global and Na16 tional Commerce Act (15 U.S.C. 7001). 

17 (2) MEDIA NOTICE.—Notice to major media 

18 outlets serving a State or jurisdiction, if the number 

19 of residents of such State whose sensitive personally 

20 identifiable information was, or is reasonably be21 lieved to have been, accessed or acquired by an un22 authorized person exceeds 5,000. 

23 SEC. 214. CONTENT OF NOTIFICATION. 

24 (a) IN GENERAL.—Regardless of the method by 

25 which notice is provided to individuals under section 213, 

26 such notice shall include, to the extent possible— 


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1 (1) a description of the categories of sensitive 

2 personally identifiable information that was, or is 

3 reasonably believed to have been, accessed or ac4 quired by an unauthorized person; 

5 (2) a toll-free number— 

6 (A) that the individual may use to contact 

7 the agency or business entity, or the agent of 

8 the agency or business entity; and 

9 (B) from which the individual may learn 

10 what types of sensitive personally identifiable 

11 information the agency or business entity main12 tained about that individual; and 

13 (3) the toll-free contact telephone numbers and 

14 addresses for the major credit reporting agencies. 

15 (b) ADDITIONAL CONTENT.—Notwithstanding sec16 tion 219, a State may require that a notice under sub17 section (a) shall also include information regarding victim 

18 protection assistance provided for by that State. 

19 (c) DIRECT BUSINESS RELATIONSHIP.—Regardless 

20 of whether a business entity, agency, or a designated third 

21 party provides the notice required pursuant to section 

22 211(b), such notice shall include the name of the business 

23 entity or agency that has a direct relationship with the 

24 individual being notified. 


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1 SEC. 215. COORDINATION OF NOTIFICATION WITH CREDIT 

2 REPORTING AGENCIES. 

3 If an agency or business entity is required to provide 

4 notification to more than 5,000 individuals under section 

5 211(a), the agency or business entity shall also notify all 

6 consumer reporting agencies that compile and maintain 

7 files on consumers on a nationwide basis (as defined in 

8 section 603(p) of the Fair Credit Reporting Act (15 

9 U.S.C. 1681a(p))) of the timing and distribution of the 

10 notices. Such notice shall be given to the consumer credit 

11 reporting agencies without unreasonable delay and, if it 

12 will not delay notice to the affected individuals, prior to 

13 the distribution of notices to the affected individuals. 

14 SEC. 216. NOTICE TO LAW ENFORCEMENT. 

15 (a) DESIGNATION OF GOVERNMENT ENTITY TO RE16 CEIVE NOTICE.— 

17 (1) IN GENERAL.—Not later than 60 days after 

18 the date of enactment of this Act, the Secretary of 

19 Homeland Security shall designate a Federal Gov20 ernment entity to receive the notices required under 

21 section 212 and this section, and any other reports 

22 and information about information security inci23 dents, threats, and vulnerabilities. 

24 (2) RESPONSIBILITIES OF THE DESIGNATED

25 ENTITY.—The designated entity shall— 


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1 (A) be responsible for promptly providing 

2 the information that it receives to the United 

3 States Secret Service and the Federal Bureau 

4 of Investigation, and to the Federal Trade 

5 Commission for civil law enforcement purposes; 

6 and 

7 (B) provide the information described in 

8 subparagraph (A) as appropriate to other Fed9 eral agencies for law enforcement, national se10 curity, or data security purposes. 

11 (b) NOTICE.—Any business entity or agency shall no12 tify the designated entity of the fact that a security breach 

13 has occurred if— 

14 (1) the number of individuals whose sensitive 

15 personally identifying information was, or is reason16 ably believed to have been accessed or acquired by 

17 an unauthorized person exceeds 5,000; 

18 (2) the security breach involves a database, 

19 networked or integrated databases, or other data 

20 system containing the sensitive personally identifi21 able information of more than 500,000 individuals 

22 nationwide; 

23 (3) the security breach involves databases 

24 owned by the Federal Government; or 


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1 (4) the security breach involves primarily sen2 sitive personally identifiable information of individ3 uals known to the agency or business entity to be 

4 employees and contractors of the Federal Govern5 ment involved in national security or law enforce6 ment. 

7 (c) FTC RULEMAKING AND REVIEW OF THRESH8 OLDS.— 

9 (1) REPORTS.—Not later than 1 year after the 

10 date of the enactment of this Act, the Federal Trade 

11 Commission, in consultation with the Attorney Gen12 eral of the United States and the Secretary of 

13 Homeland Security, shall promulgate regulations 

14 under section 553 of title 5, United States Code, re15 garding the reports required under subsection (a). 

16 (2) THRESHOLDS FOR NOTICE.—The Federal 

17 Trade Commission, in consultation with the Attor18 ney General and the Secretary of Homeland Secu19 rity, after notice and the opportunity for public com20 ment, and in a manner consistent with this section, 

21 shall promulgate regulations, as necessary, under 

22 section 553 of title 5, United States Code, to adjust 

23 the thresholds for notice to law enforcement and na24 tional security authorities under subsection (a) and 

25 to facilitate the purposes of this section. 


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1 (d) TIMING.—The notice required under subsection 

2 (a) shall be provided as promptly as possible, but such 

3 notice must be provided either 72 hours before notice is 

4 provided to an individual pursuant to section 211, or not 

5 later than 10 days after the business entity or agency dis6 covers the security breach or discovers that the nature of 

7 the security breach requires notice to law enforcement 

8 under this section, whichever occurs first. 

9 SEC. 217. ENFORCEMENT. 

10 (a) IN GENERAL.—The Attorney General and the 

11 Federal Trade Commission may enforce civil violations of 

12 section 211. 

13 (b) CIVIL ACTIONS BY THE ATTORNEY GENERAL OF

14 THE UNITED STATES.— 

15 (1) IN GENERAL.—The Attorney General may 

16 bring a civil action in the appropriate United States 

17 district court against any business entity that en18 gages in conduct constituting a violation of this sub19 title and, upon proof of such conduct by a prepon20 derance of the evidence, such business entity shall be 

21 subject to a civil penalty of not more than $11,000 

22 per day per security breach. 

23 (2) PENALTY LIMITATION.—Notwithstanding 

24 any other provision of law, the total amount of the 

25 civil penalty assessed against a business entity for 


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1 conduct involving the same or related acts or omis2 sions that results in a violation of this subtitle may 

3 not exceed $1,000,000. 

4 (3) DETERMINATIONS.—The determination of 

5 whether a violation of a provision of this subtitle has 

6 occurred, and if so, the amount of the penalty to be 

7 imposed, if any, shall be made by the court sitting 

8 as the finder of fact. The determination of whether 

9 a violation of a provision of this subtitle was willful 

10 or intentional, and if so, the amount of the addi11 tional penalty to be imposed, if any, shall be made 

12 by the court sitting as the finder of fact. 

13 (4) ADDITIONAL PENALTY LIMIT.—If a court 

14 determines under paragraph (3) that a violation of 

15 a provision of this subtitle was willful or intentional 

16 and imposes an additional penalty, the court may 

17 not impose an additional penalty in an amount that 

18 exceeds $1,000,000. 

19 (c) INJUNCTIVE ACTIONS BY THE ATTORNEY GEN20 ERAL.— 

21 (1) IN GENERAL.—If it appears that a business 

22 entity has engaged, or is engaged, in any act or 

23 practice constituting a violation of this subtitle, the 

24 Attorney General may petition an appropriate dis25 trict court of the United States for an order— 


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1 (A) enjoining such act or practice; or 

2 (B) enforcing compliance with this subtitle. 

3 (2) ISSUANCE OF ORDER.—A court may issue 

4 an order under paragraph (1), if the court finds that 

5 the conduct in question constitutes a violation of this 

6 subtitle. 

7 (d) CIVIL ACTIONS BY THE FEDERAL TRADE COM8 MISSION.— 

9 (1) IN GENERAL.—Compliance with the require10 ments imposed under this subtitle may be enforced 

11 under the Federal Trade Commission Act (15 

12 U.S.C. 41 et seq.) by the Federal Trade Commission 

13 with respect to business entities subject to this Act. 

14 All of the functions and powers of the Federal Trade 

15 Commission under the Federal Trade Commission 

16 Act are available to the Commission to enforce com17 pliance by any person with the requirements imposed 

18 under this title. 

19 (2) PENALTY LIMITATION.— 

20 (A) IN GENERAL.—Notwithstanding any 

21 other provision of law, the total sum of civil 

22 penalties assessed against a business entity for 

23 all violations of the provisions of this subtitle 

24 resulting from the same or related acts or omisVerDate Mar 15 2010 23:00 Jan 08, 2014 Jkt 039200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S1897.IS S1897

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1 sions may not exceed $1,000,000, unless such 

2 conduct is found to be willful or intentional. 

3 (B) DETERMINATIONS.—The determina4 tion of whether a violation of a provision of this 

5 subtitle has occurred, and if so, the amount of 

6 the penalty to be imposed, if any, shall be made 

7 by the court sitting as the finder of fact. The 

8 determination of whether a violation of a provi9 sion of this subtitle was willful or intentional, 

10 and if so, the amount of the additional penalty 

11 to be imposed, if any, shall be made by the 

12 court sitting as the finder of fact. 

13 (C) ADDITIONAL PENALTY LIMIT.—If a 

14 court determines under subparagraph (B) that 

15 a violation of a provision of this subtitle was 

16 willful or intentional and imposes an additional 

17 penalty, the court may not impose an additional 

18 penalty in an amount that exceeds $1,000,000. 

19 (3) UNFAIR OR DECEPTIVE ACTS OR PRAC20 TICES.—For the purpose of the exercise by the Fed21 eral Trade Commission of its functions and powers 

22 under the Federal Trade Commission Act, a viola23 tion of any requirement or prohibition imposed 

24 under this title shall constitute an unfair or decep25 tive act or practice in commerce in violation of a 


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1 regulation under section 18(a)(1)(B) of the Federal 

2 Trade Commission Act (15 U.S.C. 57a(a)(I)(B)) re3 garding unfair or deceptive acts or practices and 

4 shall be subject to enforcement by the Federal Trade 

5 Commission under that Act with respect to any busi6 ness entity, irrespective of whether that business en7 tity is engaged in commerce or meets any other ju8 risdictional tests in the Federal Trade Commission 

9 Act. 

10 (e) COORDINATION OF ENFORCEMENT.— 

11 (1) IN GENERAL.—Before opening an investiga12 tion, the Federal Trade Commission shall consult 

13 with the Attorney General. 

14 (2) LIMITATION.—The Federal Trade Commis15 sion may initiate investigations under this subsection 

16 unless the Attorney General determines that such an 

17 investigation would impede an ongoing criminal in18 vestigation or national security activity. 

19 (3) COORDINATION AGREEMENT.— 

20 (A) IN GENERAL.—In order to avoid con21 flicts and promote consistency regarding the en22 forcement and litigation of matters under this 

23 Act, not later than 180 days after the enact24 ment of this Act, the Attorney General and the 

25 Federal Trade Commission shall enter into an 


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1 agreement for coordination regarding the en2 forcement of this Act. 

3 (B) REQUIREMENT.—The coordination 

4 agreement entered into under subparagraph (A) 

5 shall include provisions to ensure that parallel 

6 investigations and proceedings under this sec7 tion are conducted in a matter that avoids con8 flicts and does not impede the ability of the At9 torney General to prosecute violations of Fed10 eral criminal laws. 

11 (4) COORDINATION WITH THE FCC.—If an en12 forcement action under this Act relates to customer 

13 proprietary network information, the Federal Trade 

14 Commission shall coordinate the enforcement action 

15 with the Federal Communications Commission. 

16 (f) RULEMAKING.—The Federal Trade Commission 

17 may, in consultation with the Attorney General, issue such 

18 other regulations as it determines to be necessary to carry 

19 out this subtitle. All regulations promulgated under this 

20 Act shall be issued in accordance with section 553 of title 

21 5, United States Code. Where regulations relate to cus22 tomer proprietary network information, the promulgation 

23 of such regulations will be coordinated with the Federal 

24 Communications Commission. 


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1 (g) OTHER RIGHTS AND REMEDIES.—The rights and 

2 remedies available under this subtitle are cumulative and 

3 shall not affect any other rights and remedies available 

4 under law. 

5 (h) FRAUD ALERT.—Section 605A(b)(1) of the Fair 

6 Credit Reporting Act (15 U.S.C. 1681c–1(b)(1)) is 

7 amended by inserting ‘‘, or evidence that the consumer 

8 has received notice that the consumer’s financial informa9 tion has or may have been compromised,’’ after ‘‘identity 

10 theft report’’. 

11 SEC. 218. ENFORCEMENT BY STATE ATTORNEYS GENERAL. 

12 (a) IN GENERAL.— 

13 (1) CIVIL ACTIONS.—In any case in which the 

14 attorney general of a State or any State or local law 

15 enforcement agency authorized by the State attorney 

16 general or by State statute to prosecute violations of 

17 consumer protection law, has reason to believe that 

18 an interest of the residents of that State has been 

19 or is threatened or adversely affected by the engage20 ment of a business entity in a practice that is pro21 hibited under this subtitle, the State or the State or 

22 local law enforcement agency on behalf of the resi23 dents of the agency’s jurisdiction, may bring a civil 

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1 risdiction in a district court of the United States of 

2 appropriate jurisdiction to— 

3 (A) enjoin that practice; 

4 (B) enforce compliance with this subtitle; 

5 or 

6 (C) civil penalties of not more than 

7 $11,000 per day per security breach up to a 

8 maximum of $1,000,000 per violation, unless 

9 such conduct is found to be willful or inten10 tional. 

11 (2) PENALTY LIMITATION.— 

12 (A) IN GENERAL.—Notwithstanding any 

13 other provision of law, the total sum of civil 

14 penalties assessed against a business entity for 

15 all violations of the provisions of this subtitle 

16 resulting from the same or related acts or omis17 sions may not exceed $1,000,000, unless such 

18 conduct is found to be willful or intentional. 

19 (B) DETERMINATIONS.—The determina20 tion of whether a violation of a provision of this 

21 subtitle has occurred, and if so, the amount of 

22 the penalty to be imposed, if any, shall be made 

23 by the court sitting as the finder of fact. The 

24 determination of whether a violation of a provi25 sion of this subtitle was willful or intentional, 


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1 and if so, the amount of the additional penalty 

2 to be imposed, if any, shall be made by the 

3 court sitting as the finder of fact. 

4 (C) ADDITIONAL PENALTY LIMIT.—If a 

5 court determines under subparagraph (B) that 

6 a violation of a provision of this subtitle was 

7 willful or intentional and imposes an additional 

8 penalty, the court may not impose an additional 

9 penalty in an amount that exceeds $1,000,000. 

10 (3) NOTICE.— 

11 (A) IN GENERAL.—Before filing an action 

12 under paragraph (1), the attorney general of 

13 the State involved shall provide to the Attorney 

14 General of the United States— 

15 (i) written notice of the action; and 

16 (ii) a copy of the complaint for the ac17 tion. 

18 (B) EXEMPTION.— 

19 (i) IN GENERAL.—Subparagraph (A) 

20 shall not apply with respect to the filing of 

21 an action by an attorney general of a State 

22 under this subtitle, if the State attorney 

23 general determines that it is not feasible to 

24 provide the notice described in such sub25 paragraph before the filing of the action. 


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1 (ii) NOTIFICATION.—In an action de2 scribed in clause (i), the attorney general 

3 of a State shall provide notice and a copy 

4 of the complaint to the Attorney General 

5 at the time the State attorney general files 

6 the action. 

7 (b) FEDERAL PROCEEDINGS.—Upon receiving notice 

8 under subsection (a)(2), the Attorney General shall have 

9 the right to— 

10 (1) move to stay the action, pending the final 

11 disposition of a pending Federal proceeding or ac12 tion; 

13 (2) initiate an action in the appropriate United 

14 States district court under section 217 and move to 

15 consolidate all pending actions, including State ac16 tions, in such court; 

17 (3) intervene in an action brought under sub18 section (a)(2); and 

19 (4) file petitions for appeal. 

20 (c) PENDING PROCEEDINGS.—If the Attorney Gen21 eral or the Federal Trade Commission initiate a criminal 

22 proceeding or civil action for a violation of a provision of 

23 this subtitle, or any regulations thereunder, no attorney 

24 general of a State may bring an action for a violation of 


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1 a provision of this subtitle against a defendant named in 

2 the Federal criminal proceeding or civil action. 

3 (d) CONSTRUCTION.—For purposes of bringing any 

4 civil action under subsection (a), nothing in this subtitle 

5 regarding notification shall be construed to prevent an at6 torney general of a State from exercising the powers con7 ferred on such attorney general by the laws of that State 

8 to— 

9 (1) conduct investigations; 

10 (2) administer oaths or affirmations; or 

11 (3) compel the attendance of witnesses or the 

12 production of documentary and other evidence. 

13 (e) VENUE; SERVICE OF PROCESS.— 

14 (1) VENUE.—Any action brought under sub15 section (a) may be brought in— 

16 (A) the district court of the United States 

17 that meets applicable requirements relating to 

18 venue under section 1391 of title 28, United 

19 States Code; or 

20 (B) another court of competent jurisdic21 tion. 

22 (2) SERVICE OF PROCESS.—In an action 

23 brought under subsection (a), process may be served 

24 in any district in which the defendant— 

25 (A) is an inhabitant; or 


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1 (B) may be found. 

2 (f) NO PRIVATE CAUSE OF ACTION.—Nothing in this 

3 subtitle establishes a private cause of action against a 

4 business entity for violation of any provision of this sub5 title. 

6 SEC. 219. EFFECT ON FEDERAL AND STATE LAW. 

7 For any entity, or agency that is subject to this sub8 title, the provisions of this subtitle shall supersede any 

9 other provision of Federal law, or any provisions of the 

10 law of any State, relating to notification of a security 

11 breach, except as provided in section 214(b). Nothing in 

12 this subtitle shall be construed to modify, limit, or super13 sede the operation of the Gramm-Leach-Bliley Act (15 

14 U.S.C. 6801 et seq.) or its implementing regulations, in15 cluding those regulations adopted or enforced by States, 

16 the Health Insurance Portability and Accountability Act 

17 of 1996 (42 U.S.C. 1301 et seq.) or its implementing reg18 ulations, or the Health Information Technology for Eco19 nomic and Clinical Health Act (42 U.S.C. 17937) or its 

20 implementing regulations. 

21 SEC. 220. REPORTING ON EXEMPTIONS. 

22 (a) FTC REPORT.—Not later than 18 months after 

23 the date of enactment of this Act, and upon request by 

24 Congress thereafter, the Federal Trade Commission shall 

25 submit a report to Congress on the number and nature 


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1 of the security breaches described in the notices filed by 

2 those business entities invoking the risk assessment ex3 emption under section 212(b) and their response to such 

4 notices. 

5 (b) LAW ENFORCEMENT REPORT.— 

6 (1) IN GENERAL.—Not later than 18 months 

7 after the date of enactment of this Act, and upon 

8 the request by Congress thereafter, the United 

9 States Secret Service and Federal Bureau of Inves10 tigation shall submit a report to Congress on the 

11 number and nature of security breaches subject to 

12 the national security and law enforcement exemp13 tions under section 212(a). 

14 (2) REQUIREMENT.—The report required under 

15 paragraph (1) shall not include the contents of any 

16 risk assessment provided to the United States Secret 

17 Service and the Federal Bureau of Investigation 

18 under this subtitle. 

19 SEC. 221. EFFECTIVE DATE. 

20 This subtitle shall take effect on the expiration of the 

21 date which is 90 days after the date of enactment of this 

22 Act. 


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1 TITLE III—COMPLIANCE WITH 

2 STATUTORY PAY-AS-YOU-GO ACT 

3 SEC. 301. BUDGET COMPLIANCE. 

4 The budgetary effects of this Act, for the purpose of 

5 complying with the Statutory Pay-As-You-Go Act of 2010, 

6 shall be determined by reference to the latest statement 

7 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

8 Act, submitted for printing in the Congressional Record 

9 by the Chairman of the Senate Budget Committee, pro10 vided that such statement has been submitted prior to the 

11 vote on passage. 

Æ 


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