American Digital Security and Commerce Act of 2014

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Digital Security and 
Commerce Act of 2014''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The United States is the world leader in technology, 
        encryption, and computer security.
            (2) The United States Government, through the expert work 
        of the National Institute of Standards and Technology (referred 
        to in this section as ``NIST'') and the Information Assurance 
        Directorate of the National Security Agency, plays a vital role 
        in developing the tools that keep global electronic 
        communications secure.
            (3) The United States Government should actively promote 
        privacy and computer security. Allegations that entities within 
        the United States Government seek to undermine the security of 
        encryption standards or commercial products weaken privacy and 
        erode trust in the United States Government and in products 
        from the United States.
            (4) The actions described in paragraph (3) may take a 
        serious toll on the United States economy. The Information 
        Technology and Innovation Foundation has predicted that United 
        States companies may lose 10 percent of the cloud computing 
        market to overseas competitors due to surveillance and security 
        concerns, a loss that could amount to not less than 
        $35,000,000,000 in lost sales by 2016.
            (5) The cryptographic expertise of NIST is recognized 
        around the world, but widespread adoption of the robust 
        encryption standards that NIST develops depends on trust.
            (6) To promote privacy protection and restore trust in the 
        encryption standards of the United States and hardware and 
        software from the United States, the United States Government 
        should be prohibited from undermining the security of the 
        United States technologies on which global commerce relies.

SEC. 3. FEDERAL INFORMATION SECURITY MANAGEMENT.

    (a) Director of OMB Requirement.--Section 3543(a)(3) of title 44, 
United States Code, is amended--
            (1) by striking ``assure, to the maximum extent feasible'' 
        and inserting the following: ``assure--
                    ``(A) to the maximum extent feasible,'';
            (2) by inserting ``and'' after the semicolon; and
            (3) by adding at the end the following:
                    ``(B) that any agency or office described in 
                subparagraph (A) does not intentionally weaken, 
                circumvent, undermine, or create any mechanism through 
                which any agency or office of the Federal Government 
                may bypass, the privacy, security, or encryption 
                protections included in any standard or guideline;''.
    (b) Requirement for NIST Consultees.--
            (1) In general.--Section 20 of the National Institute of 
        Standards and Technology Act (15 U.S.C. 278g-3) is amended--
                    (A) by redesignating subsection (e) as subsection 
                (f); and
                    (B) by inserting after subsection (d) the 
                following:
    ``(e) Each agency or office that the Institute consults with under 
subsection (c)(1) may not intentionally weaken, circumvent, undermine, 
or create any mechanism through which any agency or office of the 
Federal Government may bypass, the privacy, security, or encryption 
protections included in any standard or guideline required under 
subsection (a) or (b).''.
            (2) Technical and conforming amendments.--Section 22 of the 
        National Institute of Standards and Technology Act (15 U.S.C. 
        278h) is amended--
                    (A) in subsection (a)(2), by striking ``Computer 
                System Security and Privacy Advisory Board under 
                section 20(f)'' and inserting ``Information Security 
                and Privacy Advisory Board under section 21''; and
                    (B) in subsection (e)(1), by striking ``Computer 
                System Security and Privacy Advisory Board'' and 
                inserting ``Information Security and Privacy Advisory 
                Board under section 21''.

SEC. 4. SECURITY OF COMPUTER HARDWARE, COMPUTER SOFTWARE, AND 
              ELECTRONIC DEVICES.

    (a) Definitions.--In this section--
            (1) the terms ``agent of a foreign power'' and ``foreign 
        power'' have the meaning given those terms in section 101(a) of 
        the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
        1801);
            (2) the term ``covered person''--
                    (A) means an individual, partnership, association, 
                joint stock company, trust, or corporation; and
                    (B) does not include a foreign power or an agent of 
                a foreign power;
            (3) the term ``covered product'' means any computer 
        hardware, computer software, or electronic device that is made 
        available to the general public; and
            (4) the term ``element of the intelligence community'' 
        means an element of the intelligence community specified in or 
        designated under section 3(4) of the National Security Act of 
        1947 (50 U.S.C. 3003(4)).
    (b) Security of Covered Products.--
            (1) Prohibitions.--
                    (A) Prohibition on interception.--Except as 
                provided in paragraph (2), an agency or department of 
                the Federal Government may not intercept any shipment 
                of covered products for the purpose of intentionally 
                introducing into the covered products a mechanism or 
                device that would allow an agency or department of the 
                Federal Government to circumvent the privacy, security, 
                or encryption protections of the covered products.
                    (B) Prohibition on requiring or contracting for 
                installation of devices.--Except as provided in 
                paragraph (2), an element of the intelligence community 
                may not require, or contract with, a manufacturer or 
                developer of covered products to place a mechanism or 
                device into a covered product that would allow any 
                agency or department of the Federal Government to 
                circumvent any privacy, security, or encryption 
                protections of the covered product.
            (2) Exception for lawful surveillance activities under 
        court order.--The prohibitions under paragraph (1) shall not 
        apply to a lawful surveillance activity conducted pursuant to a 
        court order issued under--
                    (A) chapter 119, 121, or 206 of title 18, United 
                States Code; or
                    (B) the Foreign Intelligence Surveillance Act of 
                1978 (50 U.S.C. 1801 et seq.), except section 702 of 
                that Act (50 U.S.C. 1881a).
    (c) Enforcement.--
            (1) Authorization of civil action.--A covered person that 
        suffers an injury proximately caused by a violation of 
        subsection (b) may bring a civil action against the United 
        States in a district court of the United States to recover 
        money damages in accordance with paragraph (2) of this 
        subsection.
            (2) Amount of damages.--A court, in awarding money damages 
        to a covered person in a civil action brought under this 
        subsection, shall award--
                    (A) an amount that is the greater of--
                            (i) the amount of actual damages; or
                            (ii) $10,000; and
                    (B) reasonable costs, including reasonable 
                attorney's fees.
            (3) Exclusive remedy.--A civil action against the United 
        States under this subsection shall be the exclusive remedy 
        against the United States for a violation of subsection (b).
            (4) Reimbursement of award.--An agency or department of the 
        United States, including an element of the intelligence 
        community, shall deposit into the general fund of the Treasury 
        of the United States an amount equal to any amount awarded 
        under paragraph (2), for a violation of subsection (b) by the 
        agency or department, out of any appropriation, fund, or other 
        account (excluding any part of such appropriation, fund, or 
        account that is available for the enforcement of any Federal 
        law) that is available for the operating expenses of the agency 
        or department.
            (5) Defense of good faith reliance.--The United States 
        shall not be liable to a covered person in a civil action 
        brought under this subsection based on any action taken by an 
        individual acting on behalf of an agency or department of the 
        United States, including an element of the intelligence 
        community, if the individual acted in a good faith reliance on 
        a court order, a grand jury subpoena, or a legislative 
        authorization under--
                    (A) chapter 119, 121, or 206 of title 18, United 
                States Code; or
                    (B) the Foreign Intelligence Surveillance Act of 
                1978 (50 U.S.C. 1801 et seq.), except section 702 of 
                that Act (50 U.S.C. 1881a).

Summary: American Digital Security and Commerce Act of 2014 - Requires the Director of the Office of Management and Budget (OMB), in coordinating standards and guidelines under the National Institute of Standards and Technology Act with agencies and offices operating or exercising control of national security systems (including the National Security Agency [NSA]), to assure that such agencies or offices do not intentionally weaken, circumvent, undermine, or create any mechanism through which a federal agency may bypass the privacy, security, or encryption protections included in any standard or guideline. Prohibits agencies and offices that consult with the National Institute of Standards and Technology (NIST) on information security policies from undermining such protective mechanisms. Prohibits federal agencies from intercepting shipments of computer or electronic products for the purpose of intentionally introducing into the products a mechanism or device that would allow a federal agency to circumvent a product's privacy, security, or encryption protections. Bars elements of the intelligence community from requiring, or contracting with, a manufacturer or developer of such products to place such a mechanism or device into its products. Exempts from such mechanism placement prohibitions certain lawful surveillance activities pursuant to a court order under specified provisions of the federal criminal code or the Foreign Intelligence Surveillance Act of 1978 (except with respect to procedures for targeting persons outside the United States other than U.S. persons). Permits persons (including certain associations and corporations, but excluding foreign powers) who suffer an injury relating to a mechanism placed into product to bring a civil action against the United States to recover money damages.