Title: Data Protection Act of 2017
Policy area: Commerce

Summary:
Data Protection Act of 2017
This bill directs the Federal Trade Commission to require an entity to employ reasonable measures to secure sensitive, personally identifiable information maintained by the entity against a security breach.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3904 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3904

To direct the Federal Trade Commission to prescribe rules that require 
     covered entities to secure sensitive personally identifiable 
                 information against a security breach.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 2, 2017

 Mrs. Dingell introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To direct the Federal Trade Commission to prescribe rules that require 
     covered entities to secure sensitive personally identifiable 
                 information against a security breach.

    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 Protection Act of 2017''.

SEC. 2. REASONABLE MEASURES TO SECURE SENSITIVE PERSONALLY IDENTIFIABLE 
              INFORMATION.

    (a) Rules Required.--Not later than 1 year after the date of the 
enactment of this Act, the Commission shall prescribe rules in 
accordance with section 553 of title 5, United States Code, that 
require a covered entity to employ reasonable measures to secure 
sensitive personally identifiable information maintained by such entity 
against a security breach.
    (b) Factors for Consideration in Determining Reasonableness.--The 
rules prescribed under subsection (a) shall provide for the 
consideration, in determining whether measures employed by a covered 
entity are reasonable, of factors that include the following:
            (1) Whether the covered entity follows any applicable best 
        practices issued by the National Institute of Standards and 
        Technology.
            (2) Whether the covered entity takes reasonable steps to 
        keep software up-to-date in order to mitigate security 
        vulnerabilities, especially critical security vulnerabilities, 
        in any database or other computer system in which sensitive 
        personally identifiable information is maintained by such 
        entity.
    (c) Consideration of Binding Arbitration Clauses in Determining 
Civil Penalty Amount.--If a violation of the rules prescribed under 
subsection (a) results in a security breach and the covered entity 
experiencing such breach offers any credit, identity theft, fraud, or 
similar monitoring or protection service to consumers as a result of 
such breach, in determining the amount of a civil penalty under section 
5(m) of the Federal Trade Commission Act (15 U.S.C. 45(m)) for such 
violation, the court shall consider, in addition to the factors 
required to be considered under such section, imposing a higher penalty 
if the terms and conditions applicable to such service include a 
requirement that any disputes be resolved by binding arbitration (or a 
requirement that consumers take action to opt out of binding 
arbitration) than if such terms and conditions did not include any such 
requirement.

SEC. 3. ENFORCEMENT BY FEDERAL TRADE COMMISSION.

    (a) Unfair or Deceptive Acts or Practices.--A violation of a rule 
prescribed under section 2(a) shall be treated as a violation of a rule 
prescribed under section 18(a)(1)(B) of the Federal Trade Commission 
Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or 
practices.
    (b) Powers of Commission.--The Commission shall enforce the rules 
prescribed under section 2(a) in the same manner, by the same means, 
and with the same jurisdiction, powers, and duties as though all 
applicable terms and provisions of the Federal Trade Commission Act (15 
U.S.C. 41 et seq.) were incorporated into and made a part of this Act. 
Any person who violates such a rule shall be subject to the penalties 
and entitled to the privileges and immunities provided in the Federal 
Trade Commission Act.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Covered entity.--The term ``covered entity'' means any 
        person, partnership, or corporation--
                    (A) over which the Commission has jurisdiction 
                under section 5(a)(2) of the Federal Trade Commission 
                Act (15 U.S.C. 45(a)(2)); and
                    (B) that maintains sensitive personally 
                identifiable information of more than 100,000 
                individuals.
            (3) Security breach.--
                    (A) In general.--The term ``security breach'' means 
                a compromise of the security, confidentiality, or 
                integrity of, or the loss of, computerized data that 
                results in, or there is a reasonable basis to conclude 
                has resulted in--
                            (i) the unauthorized acquisition of 
                        sensitive personally identifiable information; 
                        or
                            (ii) access to sensitive personally 
                        identifiable information that is for an 
                        unauthorized purpose, or in excess of 
                        authorization.
                    (B) Exclusion.--The term ``security breach'' does 
                not include any lawfully authorized investigative, 
                protective, or intelligence activity of a law 
                enforcement agency of the United States, a State, or a 
                political subdivision of a State, or of an element of 
                the intelligence community (as defined in section 3(4) 
                of the National Security Act of 1947 (50 U.S.C. 
                3003(4))).
            (4) Sensitive personally identifiable information.--
                    (A) In general.--The term ``sensitive personally 
                identifiable information'' means any information or 
                compilation of information, in electronic or digital 
                form, that includes one or more of the following:
                            (i) An individual's first and last name or 
                        first initial and last name in combination with 
                        any two of the following data elements:
                                    (I) Home address or telephone 
                                number.
                                    (II) Mother's maiden name.
                                    (III) Month, day, and year of 
                                birth.
                            (ii) A Social Security number (but not 
                        including only the last four digits of a Social 
                        Security number), driver's license number, 
                        passport number, or alien registration number 
                        or other Government-issued unique 
                        identification number.
                            (iii) Unique biometric data such as a 
                        finger print, voice print, a retina or iris 
                        image, or any other unique physical 
                        representation.
                            (iv) A unique account identifier, including 
                        a financial account number or credit or debit 
                        card number, electronic identification number, 
                        user name, or routing code.
                            (v) A user name or electronic mail address, 
                        in combination with a password or security 
                        question and answer that would permit access to 
                        an online account.
                            (vi) Any combination of the following data 
                        elements:
                                    (I) An individual's first and last 
                                name or first initial and last name.
                                    (II) A unique account identifier, 
                                including a financial account number or 
                                credit or debit card number, electronic 
                                identification number, user name, or 
                                routing code.
                                    (III) Any security code, access 
                                code, or password, or source code that 
                                could be used to generate such codes or 
                                passwords.
                    (B) Modified definition by rulemaking.--The 
                Commission may, by rule prescribed in accordance with 
                section 553 of title 5, United States Code, amend the 
                definition of ``sensitive personally identifiable 
                information'' to the extent that such amendment will 
                accomplish the purposes of this Act. In amending the 
                definition, the Commission may determine--
                            (i) that any particular combinations of 
                        information are sensitive personally 
                        identifiable information; or
                            (ii) that any particular piece of 
                        information, on its own, is sensitive 
                        personally identifiable information.
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