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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 961 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 961

  To protect information relating to consumers, to require notice of 
               security breaches, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 15, 2015

 Mr. Carper (for himself and Mr. Blunt) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
  To protect information relating to consumers, to require notice of 
               security breaches, 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 ``Data Security Act of 2015''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to establish strong and uniform national data security 
        and breach notification standards for electronic data; and
            (2) to expressly preempt any related State laws in order to 
        provide the Federal Trade Commission with authority to enforce 
        such standards for entities covered under this Act.

SEC. 3. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Affiliate.--The term ``affiliate'' means any company 
        that controls, is controlled by, or is under common control 
        with another company.
            (2) Agency.--The term ``agency'' has the same meaning as in 
        section 551(1) of title 5, United States Code.
            (3) Breach of data security.--
                    (A) In general.--The term ``breach of data 
                security'' means the unauthorized acquisition of 
                sensitive account information or sensitive personal 
                information.
                    (B) Exception for data that is not in usable 
                form.--The term ``breach of data security'' does not 
                include the unauthorized acquisition of sensitive 
                account information or sensitive personal information 
                that is encrypted, redacted, or otherwise protected by 
                another method that renders the information unreadable 
                and unusable if the encryption, redaction, or 
                protection process or key is not also acquired without 
                authorization.
            (4) Carrier.--The term ``carrier'' means any entity that--
                    (A) provides electronic data transmission, routing, 
                intermediate, and transient storage, or connections to 
                its system or network;
                    (B) does not select or modify the content of the 
                electronic data;
                    (C) is not the sender or the intended recipient of 
                the data; and
                    (D) does not differentiate sensitive account 
                information or sensitive personal information from 
                other information that the entity transmits, routes, 
                stores in intermediate or transient storage, or for 
                which such entity provides connections.
            (5) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (6) Consumer.--The term ``consumer'' means an individual.
            (7) Consumer reporting agency that compiles and maintains 
        files on consumers on a nationwide basis.--The term ``consumer 
        reporting agency that compiles and maintains files on consumers 
        on a nationwide basis'' has the same meaning as in section 
        603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)).
            (8) Covered entity.--
                    (A) In general.--The term ``covered entity'' means 
                any individual, partnership, corporation, trust, 
                estate, cooperative, association or entity that 
                accesses, maintains, communicates, or handles sensitive 
                account information or sensitive personal information.
                    (B) Exception.--The term ``covered entity'' does 
                not include any agency or any other unit of Federal, 
                State, or local government or any subdivision of the 
                unit.
            (9) Financial institution.--The term ``financial 
        institution'' has the same meaning as in section 509(3) of the 
        Gramm-Leach-Bliley Act (15 U.S.C. 6809(3)).
            (10) Information security program.--The term ``information 
        security program'' means the administrative, technical, or 
        physical safeguards that a covered entity uses to access, 
        collect, distribute, process, protect, store, use, transmit, 
        dispose of, or otherwise handle sensitive account information 
        and sensitive personal information.
            (11) Sensitive account information.--The term ``sensitive 
        account information'' means a financial account number relating 
        to a consumer, including a credit card number or debit card 
        number, in combination with any security code, access code, 
        password, or other personal identification information required 
        to access the financial account.
            (12) Sensitive personal information.--
                    (A) In general.--The term ``sensitive personal 
                information'' means--
                            (i) a Social Security number; or
                            (ii) the first and last name of a consumer 
                        in combination with--
                                    (I) the consumer's driver's license 
                                number, passport number, military 
                                identification number, or other similar 
                                number issued on a government document 
                                used to verify identity;
                                    (II) information that could be used 
                                to access a consumer's account, such as 
                                a user name and password or e-mail and 
                                password; or
                                    (III) biometric data of the 
                                consumer used to gain access to 
                                financial accounts of the consumer.
                    (B) Exception.--The term ``sensitive personal 
                information'' does not include publicly available 
                information that is lawfully made available to the 
                general public and obtained from--
                            (i) Federal, State, or local government 
                        records; or
                            (ii) widely distributed media.
            (13) Substantial harm or inconvenience.--The term 
        ``substantial harm or inconvenience'' means--
                    (A) identity theft; or
                    (B) fraudulent transactions on financial accounts.
            (14) Third-party service provider.--The term ``third-party 
        service provider'' means any person that maintains, processes, 
        or otherwise is permitted access to sensitive account 
        information or sensitive personal information in connection 
        with providing services to a covered entity.

SEC. 4. PROTECTION OF INFORMATION AND SECURITY BREACH NOTIFICATION.

    (a) Security Procedures Required.--
            (1) In general.--Each covered entity shall develop, 
        implement, and maintain a comprehensive information security 
        program that contains administrative, technical, and physical 
        safeguards that are reasonably designed to achieve the 
        objectives in paragraph (2).
            (2) Objectives.--The objectives of this subsection are to--
                    (A) ensure the security and confidentiality of 
                sensitive account information and sensitive personal 
                information;
                    (B) protect against any anticipated threats or 
                hazards to the security or integrity of such 
                information; and
                    (C) protect against unauthorized acquisition of 
                such information that could result in substantial harm 
                to the individuals to whom such information relates.
            (3) Limitation.--A covered entity's information security 
        program under paragraph (1) shall be appropriate to--
                    (A) the size and complexity of the covered entity;
                    (B) the nature and scope of the activities of the 
                covered entity; and
                    (C) the sensitivity of the consumer information to 
                be protected.
            (4) Elements.--In order to develop, implement, and maintain 
        its information security program, a covered entity shall--
                    (A) designate an employee or employees to 
                coordinate the information security program;
                    (B) identify reasonably foreseeable internal and 
                external risks to the security, confidentiality, and 
                integrity of sensitive account information and 
                sensitive personal information and assess the 
                sufficiency of any safeguards in place to control these 
                risks, including consideration of risks in each 
                relevant area of the covered entity's operations, 
                including--
                            (i) employee training and management;
                            (ii) information systems, including network 
                        and software design, as well as information 
                        processing, storage, transmission, and 
                        disposal; and
                            (iii) detecting, preventing and responding 
                        to attacks, intrusions, or other systems 
                        failures;
                    (C) design and implement information safeguards to 
                control the risks identified in its risk assessment, 
                and regularly assess the effectiveness of the 
                safeguards' key controls, systems, and procedures;
                    (D) oversee service providers by--
                            (i) taking reasonable steps to select and 
                        retain service providers that are capable of 
                        maintaining appropriate safeguards for the 
                        sensitive account information or sensitive 
                        personal information at issue;
                            (ii) requiring service providers by 
                        contract to implement and maintain such 
                        safeguards; and
                            (iii) reasonably oversee or obtain an 
                        assessment of the service provider's compliance 
                        with contractual obligations, where appropriate 
                        in light of the covered entity's risk 
                        assessment; and
                    (E) evaluate and adjust the information security 
                program in light of the results of the risk assessments 
                and testing and monitoring required by subparagraphs 
                (C) and (D) and any material changes to the covered 
                entity's operations or business arrangements, or any 
                other circumstances that the covered entity knows or 
                has reason to know may have a material impact on its 
                information security program.
            (5) Security controls.--Each covered entity shall--
                    (A) consider whether the following security 
                measures are appropriate for the covered entity and, if 
                so, adopt those measures that the covered entity 
                concludes are appropriate--
                            (i) access controls on information systems, 
                        including controls to authenticate and permit 
                        access only to authorized individuals and 
                        controls to prevent employees from providing 
                        sensitive account information or sensitive 
                        personal information to unauthorized 
                        individuals who may seek to obtain this 
                        information through fraudulent means;
                            (ii) access restrictions at physical 
                        locations containing sensitive account 
                        information or sensitive personal information, 
                        such as buildings, computer facilities, and 
                        records storage facilities, to permit access 
                        only to authorized individuals;
                            (iii) encryption of electronic sensitive 
                        account information or sensitive personal 
                        information, including while in transit or in 
                        storage on networks or systems to which 
                        unauthorized individuals may have access;
                            (iv) procedures designed to ensure that 
                        information system modifications are consistent 
                        with the covered entity's information security 
                        program;
                            (v) dual control procedures, segregation of 
                        duties, and employee background checks for 
                        employees with responsibilities for, or access 
                        to, sensitive account information or sensitive 
                        personal information;
                            (vi) monitoring systems and procedures to 
                        detect actual and attempted attacks on, or 
                        intrusions into, information systems;
                            (vii) response programs that specify 
                        actions to be taken when the covered entity 
                        suspects or detects that unauthorized 
                        individuals have gained access to information 
                        systems; and
                            (viii) measures to protect against 
                        destruction, loss, or damage of sensitive 
                        account information or sensitive personal 
                        information due to potential environmental 
                        hazards, such as fire and water damage or 
                        technological failures;
                    (B) develop, implement, and maintain appropriate 
                measures to properly dispose of sensitive account 
                information and sensitive personal information; and
                    (C) train staff to implement the covered entity's 
                information security program.
            (6) Administrative requirements.--
                    (A) Board oversight.--If a covered entity has a 
                board of directors, the covered entity's board of 
                directors or an appropriate committee of the board 
                shall--
                            (i) approve the covered entity's written 
                        information security program; and
                            (ii) oversee the development, 
                        implementation, and maintenance of the covered 
                        entity's information security program, 
                        including assigning specific responsibility for 
                        its implementation and reviewing reports from 
                        management.
                    (B) Report to the board.--If a covered entity has a 
                board of directors, the covered entity shall report to 
                its board or an appropriate committee of the board at 
                least annually, including describing--
                            (i) the overall status of the information 
                        security program and the covered entity's 
                        compliance with this Act; and
                            (ii) material matters related to its 
                        program, addressing issues such as risk 
                        assessment, risk management and control 
                        decisions, service provider arrangements, 
                        results of testing, security breaches or 
                        violations and management's responses, and 
                        recommendations for changes in the information 
                        security program.
    (b) Investigation Required.--
            (1) In general.--If a covered entity believes that a breach 
        of data security has or may have occurred in relation to 
        sensitive account information or sensitive personal information 
        that is maintained, communicated, or otherwise handled by, or 
        on behalf of, the covered entity, the covered entity shall 
        conduct an investigation to--
                    (A) assess the nature and scope of the incident;
                    (B) identify any sensitive account information or 
                sensitive personal information that may have been 
                involved in the incident;
                    (C) determine if the sensitive account information 
                or sensitive personal information has been acquired 
                without authorization; and
                    (D) take reasonable measures to restore the 
                security and confidentiality of the systems compromised 
                in the breach.
    (c) Notice Required.--If a covered entity determines under 
subsection (b)(1)(C) that the unauthorized acquisition of sensitive 
account information or sensitive personal information involved in a 
breach of data security is reasonably likely to cause substantial harm 
to the consumers to whom the information relates, the covered entity, 
or a third party acting on behalf of the covered entity, shall--
            (1) notify, without unreasonable delay--
                    (A) an appropriate Federal law enforcement agency;
                    (B) the appropriate agency or authority identified 
                in section 5;
                    (C) any relevant payment card network, if the 
                breach involves a breach of payment card numbers;
                    (D) each consumer reporting agency that compiles 
                and maintains files on consumers on a nationwide basis, 
                if the breach involves sensitive personal information 
                or sensitive account information relating to 5,000 or 
                more consumers; and
                    (E) all consumers to whom the sensitive account 
                information or sensitive personal information relates;
            (2) provide notice to consumers by--
                    (A) written notification sent to the postal address 
                of the consumer in the records of the covered entity;
                    (B) telephonic notification to the number of the 
                consumer in the records of the covered entity;
                    (C) e-mail of the consumer or other electronic 
                means in the records of the covered entity; or
                    (D) substitute notification in print and to 
                broadcast media where the individual whose personal 
                information was acquired resides, if providing written 
                or e-mail notification is not feasible due to--
                            (i) lack of sufficient contact information 
                        for the consumers that must be notified;
                            (ii) excessive cost to the covered entity; 
                        or
                            (iii) exigent circumstances; and
            (3) provide notice that includes--
                    (A) a description of the type of sensitive account 
                information or sensitive personal information involved 
                in the breach of data security;
                    (B) a general description of the actions taken by 
                the covered entity to restore the security and 
                confidentiality of the sensitive account information or 
                sensitive personal information involved in the breach 
                of data security; and
                    (C) a summary of rights of victims of identity 
                theft prepared by the Commission under section 609(d) 
                of the Fair Credit Reporting Act (15 U.S.C. 1681g(d)), 
                if the breach of data security involves sensitive 
                personal information.
    (d) Clarification.--A financial institution shall have no 
obligation under this Act for a breach of security at another covered 
entity involving sensitive account information relating to an account 
owned by the financial institution.
    (e) Special Notification Requirements.--
            (1) Third-party service providers.--In the event of a 
        breach of data security of a system maintained by a third-party 
        entity that has been contracted to maintain, store, or process 
        data in electronic form containing sensitive account 
        information or sensitive personal information on behalf of a 
        covered entity who owns or possesses such data, such third-
        party shall--
                    (A) notify the covered entity; and
                    (B) notify consumers if it is agreed in writing 
                that the third-party service provider will provide such 
                notification on behalf of the covered entity.
            (2) Carrier obligations.--
                    (A) In general.--If a carrier becomes aware of a 
                breach of data security involving data in electronic 
                form containing sensitive account information or 
                sensitive personal information that is owned or 
                licensed by a covered entity that connects to or uses a 
                system or network provided by the carrier for the 
                purpose of transmitting, routing, or providing 
                intermediate or transient storage of such data, such 
                carrier shall notify the covered entity who initiated 
                such connection, transmission, routing, or storage of 
                the data containing sensitive account information or 
                sensitive personal information, if such covered entity 
                can be reasonably identified. If a service provider is 
                acting solely as a service provider for purposes of 
                this subsection, the service provider has no other 
                notification obligations under this section.
                    (B) Covered entities who receive notice from 
                carriers.--Upon receiving notification from a service 
                provider under paragraph (1), a covered entity shall 
                provide notification as required under this section.
            (3) Communications with account holders.--If a covered 
        entity that is not a financial institution experiences a breach 
        of data security involving sensitive account information, a 
        financial institution that issues an account to which the 
        sensitive account information relates may communicate with the 
        account holder regarding the breach, including--
                    (A) an explanation that the financial institution 
                was not breached, and that the breach occurred at a 
                third-party that had access to the consumer's sensitive 
                account information; or
                    (B) identify the covered entity that experienced 
                the breach after the covered entity has provided notice 
                consistent with this Act.
    (f) Compliance.--
            (1) In general.--An entity shall be deemed to be in 
        compliance with--
                    (A) in the case of a financial institution--
                            (i) subsection (a), if the financial 
                        institution maintains policies and procedures 
                        to protect the confidentiality and security of 
                        sensitive account information and sensitive 
                        personal information that are consistent with 
                        the policies and procedures of the financial 
                        institution that are designed to comply with 
                        the requirements of section 501(b) of the 
                        Gramm-Leach-Bliley Act (15 U.S.C. 6801(b)) and 
                        any regulations or guidance prescribed under 
                        that section that are applicable to the 
                        financial institution; and
                            (ii) subsections (b) and (c), if the 
                        financial institution--
                                    (I)(aa) maintains policies and 
                                procedures to investigate and provide 
                                notice to consumers of breaches of data 
                                security that are consistent with the 
                                policies and procedures of the 
                                financial institution that are designed 
                                to comply with the investigation and 
                                notice requirements established by 
                                regulations or guidance under section 
                                501(b) of the Gramm-Leach-Bliley Act 
                                (15 U.S.C. 6801(b)) that are applicable 
                                to the financial institution;
                                    (bb) is an affiliate of a bank 
                                holding company that maintains policies 
                                and procedures to investigate and 
                                provide notice to consumers of breaches 
                                of data security that are consistent 
                                with the policies and procedures of a 
                                bank that is an affiliate of the 
                                financial institution, and the policies 
                                and procedures of the bank are designed 
                                to comply with the investigation and 
                                notice requirements established by any 
                                regulations or guidance under section 
                                501(b) of the Gramm-Leach-Bliley Act 
                                (15 U.S.C. 6801(b)) that are applicable 
                                to the bank; or
                                    (cc)(AA) is an affiliate of a 
                                savings and loan holding company that 
                                maintains policies and procedures to 
                                investigate and provide notice to 
                                consumers of data breaches of data 
                                security that are consistent with the 
                                policies and procedures of a savings 
                                association that is an affiliate of the 
                                financial institution; and
                                    (BB) the policies and procedures of 
                                the savings association are designed to 
                                comply with the investigation and 
                                notice requirements established by any 
                                regulations or guidelines under section 
                                501(b) of the Gramm-Leach-Bliley Act 
                                (15 U.S. 6801(b)) that are applicable 
                                to savings associations; and
                                    (II) provides for notice to the 
                                entities described under subparagraphs 
                                (B), (C), and (D) of subsection (c)(1), 
                                if notice is provided to consumers 
                                pursuant to the policies and procedures 
                                of the financial institution described 
                                in subclause (I); and
                    (B) subsections (a), (b), and (c)--
                            (i) if the entity is a covered entity for 
                        purposes of the regulations promulgated under 
                        section 264(c) of the Health Insurance 
                        Portability and Accountability Act of 1996 (42 
                        U.S.C. 1320d-2 note), to the extent that the 
                        entity is in compliance with such regulations; 
                        or
                            (ii) if the entity is in compliance with 
                        sections 13402 and 13407 of the HITECH Act (42 
                        U.S.C. 17932 and 17937).
            (2) Definitions.--In this subsection--
                    (A) the terms ``bank holding company'' and ``bank'' 
                have the meanings given the terms in section 2 of the 
                Bank Holding Company Act of 1956 (12 U.S.C. 1841);
                    (B) the term ``savings and loan holding company'' 
                has the meaning given the term in section 10 of the 
                Home Owners' Loan Act (12 U.S.C. 1467a); and
                    (C) the term ``savings association'' has the 
                meaning given the term in section 2 of the Home Owners' 
                Loan Act (12 U.S.C. 1462).

SEC. 5. ADMINISTRATIVE ENFORCEMENT.

    (a) In General.--Notwithstanding any other provision of law section 
4 shall be enforced exclusively under--
            (1) section 8 of the Federal Deposit Insurance Act (12 
        U.S.C. 1818), in the case of--
                    (A) a national bank, a Federal branch or Federal 
                agency of a foreign bank, or any subsidiary thereof 
                (other than a broker, dealer, person providing 
                insurance, investment company, or investment adviser), 
                or a savings association, the deposits of which are 
                insured by the Federal Deposit Insurance Corporation, 
                or any subsidiary thereof (other than a broker, dealer, 
                person providing insurance, investment company, or 
                investment adviser), by the Office of the Comptroller 
                of the Currency;
                    (B) a member bank of the Federal Reserve System 
                (other than a national bank), a branch or agency of a 
                foreign bank (other than a Federal branch, Federal 
                agency, or insured State branch of a foreign bank), a 
                commercial lending company owned or controlled by a 
                foreign bank, an organization operating under section 
                25 or 25A of the Federal Reserve Act (12 U.S.C. 601, 
                611), or a bank holding company and its nonbank 
                subsidiary or affiliate (other than a broker, dealer, 
                person providing insurance, investment company, or 
                investment adviser), by the Board of Governors of the 
                Federal Reserve System; and
                    (C) a bank, the deposits of which are insured by 
                the Federal Deposit Insurance Corporation (other than a 
                member of the Federal Reserve System), an insured State 
                branch of a foreign bank, or any subsidiary thereof 
                (other than a broker, dealer, person providing 
                insurance, investment company, or investment adviser), 
                by the Board of Directors of the Federal Deposit 
                Insurance Corporation;
            (2) the Federal Credit Union Act (12 U.S.C. 1751 et seq.), 
        by the National Credit Union Administration Board with respect 
        to any federally insured credit union;
            (3) the Securities Exchange Act of 1934 (15 U.S.C. 78a et 
        seq.), by the Securities and Exchange Commission with respect 
        to any broker or dealer;
            (4) the Investment Company Act of 1940 (15 U.S.C. 80a-1 et 
        seq.), by the Securities and Exchange Commission with respect 
        to any investment company;
            (5) the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et 
        seq.), by the Securities and Exchange Commission with respect 
        to any investment adviser registered with the Securities and 
        Exchange Commission under that Act;
            (6) the Commodity Exchange Act (7 U.S.C. 1 et seq.), by the 
        Commodity Futures Trading Commission with respect to any 
        futures commission merchant, commodity trading advisor, 
        commodity pool operator, or introducing broker;
            (7) the provisions of title XIII of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 4501 et seq.), by 
        the Director of Federal Housing Enterprise Oversight (and any 
        successor to the 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 that title) subject to the jurisdiction of the 
        functional regulatory agency under that title, including any 
        affiliate of any the enterprise;
            (8) State insurance law, in the case of any person engaged 
        in providing insurance, by the applicable State insurance 
        authority of the State in which the person is domiciled; and
            (9) the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.), by the Commission for any other covered entity that is 
        not subject to the jurisdiction of any agency or authority 
        described under paragraphs (1) through (8), including--
                    (A) notwithstanding section 5(a)(2) of the Federal 
                Trade Commission Act (15 U.S.C. 45(a)(2)), common 
                carriers subject to the Communications Act of 1934 (47 
                U.S.C. 151 et seq.);
                    (B) notwithstanding the Federal Aviation Act of 
                1958 (49 U.S.C. App. 1301 et seq.), include the 
                authority to enforce compliance by air carriers and 
                foreign air carriers; and
                    (C) notwithstanding the Packers and Stockyards Act 
                (7 U.S.C. 181 et seq.), include the authority to 
                enforce compliance by persons, partnerships, and 
                corporations subject to the provisions of that Act.
    (b) Application to Cable Operators, Satellite Operators, and 
Telecommunications Carriers.--
            (1) Data security and breach notification.--Sections 201, 
        202, 222, 338, and 631 of the Communications Act of 1934 (47 
        U.S.C. 201, 202, 222, 338, and 551), and any regulations 
        promulgated in accordance with those sections, shall not apply 
        with respect to the information security practices, including 
        practices relating to the notification of unauthorized access 
        to data in electronic form, of any covered entity otherwise 
        subject to those sections.
            (2) Rule of construction.--Nothing in this subsection 
        otherwise limits authority of the Federal Communication 
        Commission with respect to sections 201, 202, 222, 338, and 631 
        of the Communications Act of 1934 (47 U.S.C. 201, 202, 222, 
        338, and 551).
    (c) No Private Right of Action.--
            (1) In general.--This Act may not be construed to provide a 
        private right of action, including a class action with respect 
        to any Act or practice regulated under this Act.
            (2) Exception.--A consumer or entity that suffers financial 
        harm as a result of a covered entity's violation of this Act 
        may bring an action in a district court of the United States 
        for the judicial district in which the consumer or entity 
        suffered the harm against the covered entity to recover--
                    (A) in the case of a negligent violation of this 
                Act, actual financial damages, court costs allowed by 
                the rules of the court, and reasonable attorney's fees; 
                and
                    (B) in the case of a knowing violation of this Act, 
                the damages, costs, and attorney's fees described in 
                subparagraph (A) of this subsection and punitive 
                damages.

SEC. 6. RELATION TO STATE LAW.

    No requirement or prohibition may be imposed under the laws of any 
State with respect to the responsibilities of any person to--
            (1) protect the security of information relating to 
        consumers that is maintained, communicated, or otherwise 
        handled by, or on behalf of, the person;
            (2) safeguard information relating to consumers from--
                    (A) unauthorized access; and
                    (B) unauthorized acquisition;
            (3) investigate or provide notice of the unauthorized 
        acquisition of, or access to, information relating to 
        consumers, or the potential misuse of the information, for 
        fraudulent, illegal, or other purposes; or
            (4) mitigate any potential or actual loss or harm resulting 
        from the unauthorized acquisition of, or access to, information 
        relating to consumers.

SEC. 7. DELAYED EFFECTIVE DATE FOR CERTAIN PROVISIONS.

    Sections 4 and 6 shall take effect 1 year after the date of 
enactment of this Act.
                                 <all>
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