Title: Information Transparency & Personal Data Control Act
Policy area: Commerce

Summary:
Information Transparency & Personal Data Control ActThis bill requires the Federal Trade Commission (FTC) to establish requirements for entities providing services to the public that collect, store, process, use, or otherwise control sensitive personal information. Information relating to an identifiable individual is generally considered sensitive personal information. However, information that is publicly available is not considered sensitive.The FTC must require controllers of sensitive personal information to (1) provide consumers with a privacy and data use policy, (2) obtain affirmative consent to collect or use consumers' sensitive data, and (3) obtain an annual privacy audit that evaluates the sufficiency of the controller's data privacy and security controls.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2013 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 2013

   To require the Federal Trade Commission to promulgate regulations 
   related to sensitive personal information, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 2019

   Ms. DelBene (for herself, Miss Rice of New York, and Mr. Suozzi) 
 introduced the following bill; which was referred to the Committee on 
                          Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
   To require the Federal Trade Commission to promulgate regulations 
   related to sensitive personal information, 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 ``Information Transparency & Personal 
Data Control Act''.

SEC. 2. SENSE OF CONGRESS.

    It is the Sense of Congress that--
            (1) the United States must develop a balanced, high-
        standard digital framework that establishes global standards;
            (2) a key element of this framework is a strong national 
        standard that combats anti-consumer practices;
            (3) it is critical that the Federal Government provide 
        guidance on the collection and storage of sensitive data;
            (4) it is important to provide our country with fair and 
        thoughtful digital consumer rights; and
            (5) it is important to ensure that our enforcement 
        authorities have the resources needed to protect consumers from 
        bad actors in the privacy and security space.

SEC. 3. REQUIREMENTS FOR SENSITIVE PERSONAL INFORMATION.

    (a) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, the Federal Trade Commission shall promulgate 
regulations under section 553 of title 5, United States Code, to 
require, except as provided in subsection (b), any controller that 
provides services to the public involving the collection, storage, 
processing, sale, sharing with third parties, or other use of sensitive 
personal information from United States persons or persons located in 
the United States when the data is collected, to meet the following 
requirements:
            (1) Affirmative, express, and opt-in consent.--Provide 
        users with notice through a privacy and data use policy of a 
        specific request to use their sensitive personal information 
        and require that users provide affirmative, express, and opt-in 
        consent to any functionality that involves the collection, 
        storage, processing, sale, sharing, or other use of sensitive 
        personal information, including sharing sensitive personal 
        information with third parties.
            (2) Privacy and data use policy.--Provide users with an up-
        to-date, transparent privacy, security, and data use policy 
        that meets general requirements, including that such policy, 
        presented to users in the context where it applies--
                    (A) is concise and intelligible;
                    (B) is clear and prominent in appearance;
                    (C) uses clear and plain language;
                    (D) uses visualizations where appropriate to make 
                complex information understandable by the ordinary 
                user; and
                    (E) is provided free of charge.
            (3) Additional requirements for privacy and data use 
        policy.--The privacy, security, and data use policy required 
        under paragraph (2) shall include the following:
                    (A) Identity and contact information of the entity 
                collecting the sensitive personal information.
                    (B) The purpose or use for collecting, storing, 
                processing, selling, sharing, or otherwise using the 
                sensitive personal information.
                    (C) Third parties with whom the sensitive personal 
                information will be shared and for what purposes.
                    (D) The storage period for how long the sensitive 
                personal information will be retained by the controller 
                and any third party, as applicable.
                    (E) How consent to collecting, storing, processing, 
                selling, sharing, or otherwise using the sensitive 
                personal information, including sharing with third 
                parties, may be withdrawn.
                    (F) How a user can view or obtain the sensitive 
                personal information that they have provided to a 
                controller and whether it can be exported to other web-
                based platforms.
                    (G) What kind of sensitive personal information is 
                collected and shared.
                    (H) Whether the sensitive personal information will 
                be used to create profiles about users and whether they 
                will be integrated across platforms.
                    (I) How sensitive personal information is protected 
                from unauthorized access or acquisition.
            (4) Opt-out consent.--For any collection, storage, 
        processing, selling, sharing, or other use of non-sensitive 
        personal information, including sharing with third parties, 
        controllers shall provide users with the ability to opt out at 
        any time.
            (5) Privacy audits.--
                    (A) In general.--Except as provided in 
                subparagraphs (C) and (D), annually, each controller 
                collecting, storing, processing, selling, sharing, or 
                otherwise using sensitive personal information shall--
                            (i) obtain a privacy audit from a 
                        qualified, objective, independent third-party; 
                        and
                            (ii) shall make public whether or not the 
                        privacy audit found the controller compliant.
                    (B) Audit requirements.--Each such audit shall--
                            (i) set forth the privacy, security, and 
                        data use controls that the controller has 
                        implemented and maintained during the reporting 
                        period;
                            (ii) describe whether such controls are 
                        appropriate to the size and complexity of the 
                        controller, the nature and scope of the 
                        activities of the controller, and the nature of 
                        the sensitive personal information or 
                        behavioral data collected by the controller;
                            (iii) certify whether the privacy and 
                        security controls operate with sufficient 
                        effectiveness to provide reasonable assurance 
                        to protect the privacy and security of 
                        sensitive personal information or behavioral 
                        data, including with respect to data shared 
                        with third parties, and that the controls have 
                        so operated throughout the reporting period;
                            (iv) be prepared and completed within 60 
                        days after the end of the reporting period to 
                        which the audit applies; and
                            (v) be provided to the Federal Trade 
                        Commission or to the attorney general of a 
                        State, or other authorized State officer, 
                        within 10 days of notification by the 
                        Commission or the attorney general of a State, 
                        or other authorized State officer where such 
                        person has presented to the controller 
                        allegations that a violation of this Act or any 
                        regulation issued under this Act has been 
                        committed by the controller.
                    (C) Small business audit exemption.--The audit 
                requirements described in this paragraph shall not 
                apply to controllers who collect, store, process, sell, 
                share, or otherwise use sensitive personal information 
                relating to 5,000 or fewer individuals.
                    (D) Non-sensitive personal information exemption.--
                The audit requirements set forth above shall not apply 
                to controllers who do not collect, store, process, 
                sell, share, or otherwise use sensitive personal 
                information.
    (b) Exemptions.--
            (1) Necessary operations and security purposes.--Subsection 
        (a) shall not apply to the processing, collecting, storing, 
        sharing, selling of sensitive personal information for the 
        following purposes:
                    (A) Preventing or detecting fraud, identity theft, 
                or criminal activity.
                    (B) The use of such information to identify errors 
                that impair functionality or otherwise enhancing or 
                maintaining the availability of the services or 
                information systems of the controller for authorized 
                access and use.
                    (C) Protecting the vital interests of the consumer 
                or another natural person.
                    (D) Responding in good faith to valid legal process 
                or providing information as otherwise required or 
                authorized by law.
                    (E) Monitoring or enforcing agreements between the 
                controller and an individual, including but not limited 
                to, terms of service, terms of use, user agreements, or 
                agreements concerning monitoring criminal activity.
                    (F) Protecting the property, services, or 
                information systems of the controller against 
                unauthorized access or use.
                    (G) Advancing a substantial public interest, 
                including archival purposes, scientific or historical 
                research, and public health, if such processing does 
                not create a significant risk of harm to consumers.
            (2) Reasonable expectation of users.--The regulations 
        promulgated pursuant to subsection (a) with respect to the 
        requirement to provide opt-in consent shall not apply to the 
        processing, storage, and collection of sensitive personal 
        information or behavioral data in which such processing does 
        not deviate from purposes consistent with a controller's 
        relationship with users as understood by the reasonable user.

SEC. 4. APPLICATION AND ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) Common Carriers.--Notwithstanding the limitations in the 
Federal Trade Commission Act (15 U.S.C. 41 et seq.) on Commission 
authority with respect to common carriers, this Act applies, according 
to its terms, to common carriers subject to the Communications Act of 
1934 (47 U.S.C. 151 et seq.) and all Acts amendatory thereof and 
supplementary thereto.
    (b) Enforcement.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        this Act or a regulation promulgated under this Act shall be 
        treated as a violation of a rule 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.
            (2) Powers of commission.--Except as provided in subsection 
        (a), the Federal Trade Commission shall enforce this Act and 
        the regulations promulgated under this Act 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 this Act or a regulation promulgated under this Act 
        shall be subject to the penalties and entitled to the 
        privileges and immunities provided in the Federal Trade 
        Commission Act.
    (c) Construction.--Nothing in this Act shall be construed to limit 
the authority of the Federal Trade Commission under any other provision 
of law.

SEC. 5. RIGHT OF ACTION.

    (a) Right of Action.--Except as provided in subsection (e), the 
attorney general of a State, or other authorized State officer, 
alleging a violation of this Act or any regulation issued under this 
Act that affects or may affect such State or its residents may bring an 
action on behalf of the residents of the State in any United States 
district court for the district in which the defendant is found, 
resides, or transacts business, or wherever venue is proper under 
section 1391 of title 28, to obtain appropriate injunctive relief.
    (b) Notice to Commission Required.--A State shall provide prior 
written notice to the Federal Trade Commission of any civil action 
under subsection (a) together with a copy of its complaint, except that 
if it is not feasible for the State to provide such prior notice, the 
State shall provide such notice immediately upon instituting such 
action.
    (c) Intervention by the Commission.--The Commission may intervene 
in such civil action and upon intervening--
            (1) be heard on all matters arising in such civil action; 
        and
            (2) file petitions for appeal of a decision in such civil 
        action.
    (d) Construction.--Nothing in this section shall be construed--
            (1) to prevent the attorney general of a State, or other 
        authorized State officer, from exercising the powers conferred 
        on the attorney general, or other authorized State officer, by 
        the laws of such State; or
            (2) to prohibit the attorney general of a State, or other 
        authorized State officer, from proceeding in State or Federal 
        court on the basis of an alleged violation of any civil or 
        criminal statute of that State.
    (e) Limitation.--
            (1) No separate action.--An action may not be brought under 
        subsection (a) if the same alleged violation is the subject of 
        a pending action by the Commission or the United States.
            (2) Exclusive period to act by commission.--An action--
                    (A) may not be brought under subsection (a) until 
                the expiration of the 60-day period that begins on the 
                date on which a violation is discovered by the 
                Commission or the date on which the Commission is 
                notified of the violation; and
                    (B) may only be brought under subsection (a) if the 
                Commission does not bring an action related to the 
                violation during such period.

SEC. 6. PRIVACY AND DATA SECURITY EMPLOYEES AND FUNDING FOR THE 
              COMMISSION.

    (a) Employment Authority.--The Commission shall hire 50 new full-
time employees to focus on privacy and data security, 15 of which shall 
have technology expertise.
    (b) Additional Funding for Privacy and Data Security.--There is 
authorized to be appropriated to the Commission $35,000,000 for issues 
related to privacy and data security.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Call detail record.--The term ``call detail record''--
                    (A) means session-identifying information 
                (including an originating or terminating telephone 
                number, an International Mobile Subscriber Identity 
                number, or an International Mobile Station Equipment 
                Identity number), a telephone calling card number, or 
                the time or duration of a call;
                    (B) does not include--
                            (i) the contents (as defined in section 
                        2510(8) of title 18, United States Code) of any 
                        communication;
                            (ii) the name, address, or financial 
                        information of a subscriber or customer;
                            (iii) cell site location or global 
                        positioning system information; or
                            (iv) business customers.
            (2) Clear and prominent.--The term ``clear and prominent'' 
        means in any communication medium, the required disclosure is--
                    (A) of a type, size, and location sufficiently 
                noticeable for an ordinary consumer to read and 
                comprehend the communication;
                    (B) provided in a manner such that an ordinary 
                consumer is able to read and comprehend the 
                communication;
                    (C) is presented in an understandable language and 
                syntax;
                    (D) includes nothing contrary to, inconsistent 
                with, or that mitigates any statement contained within 
                the disclosure or within any document linked to or 
                referenced therein; and
                    (E) includes an option that is compliant with 
                applicable obligations of the controller under title 
                III of the Americans with Disabilities Act of 1990 (42 
                U.S.C. 12181 et seq.).
            (3) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (4) Controller.--The term ``controller'' means a person 
        that, on its own or jointly with other entities, determines the 
        purposes and means of processing sensitive personal 
        information.
            (5) Processor.--The term ``processor'' means a person that 
        processes data on behalf of the controller.
            (6) Sensitive personal information.--
                    (A) The term ``sensitive personal information'' 
                means information relating to an identified or 
                identifiable individual, including the following:
                            (i) Financial account information.
                            (ii) Health information.
                            (iii) Genetic data.
                            (iv) Information pertaining to children 
                        under 13 years of age.
                            (v) Social Security numbers.
                            (vi) Unique government-issued identifiers
                            (vii) Authentication credentials, such as a 
                        username and password.
                            (viii) Precise geolocation information.
                            (ix) Content of a wire communication, oral 
                        communication, or electronic communication with 
                        respect to any entity that is not the intended 
                        recipient of the communication.
                            (x) Call detail records.
                            (xi) Web browsing history, application 
                        usage history, and the functional equivalent of 
                        either.
                            (xii) Biometric information.
                            (xiii) Sexual orientation.
                            (xiv) Religious beliefs.
                    (B) The term ``sensitive personal information'' 
                does not include--
                            (i) de-identified information (or the 
                        process of transforming personal data so that 
                        it is not directly relatable to an identified 
                        or identifiable consumer);
                            (ii) information related to employment; or
                            (iii) publicly available information.
            (7) State.--The term ``State'' means each State of the 
        United States, the District of Columbia, and each commonwealth, 
        territory, or possession of the United States.
            (8) Third party.--The term ``third party'' means an 
        individual or entity that uses or receives sensitive personal 
        information or behavioral data obtained by or on behalf of a 
        controller, other than--
                    (A) a service provider of a controller to whom the 
                controller discloses the consumer's sensitive personal 
                information for an operational purpose pursuant to an 
                agreement that prohibits the service provider receiving 
                the sensitive personal information from using or 
                disclosing the sensitive personal information for the 
                benefit of the provider; and
                    (B) any entity that uses sensitive personal 
                information only as reasonably necessary--
                            (i) to comply with applicable law, 
                        regulation, or legal process;
                            (ii) to enforce the terms of use of a 
                        controller; or
                            (iii) to detect, prevent, or mitigate fraud 
                        or security vulnerabilities.

SEC. 8. RULE OF CONSTRUCTION.

    Nothing in this Act may be construed to preclude the acquisition by 
the Federal Government of--
            (1) the contents of a wire or electronic communication 
        pursuant to other lawful authorities, including the authorities 
        under chapter 119 of title 18, United States Code (commonly 
        known as the ``Wiretap Act''), the Foreign Intelligence 
        Surveillance Act of 1978 (50 U.S.C. 1801 et seq.), or any other 
        provision of Federal law not specifically amended by this Act; 
        or
            (2) records or other information relating to a subscriber 
        or customer of any electronic communication service or remote 
        computing service (not including the content of such 
        communications) pursuant to the Foreign Intelligence 
        Surveillance Act of 1978 (50 U.S.C. 1801 et seq.), chapter 119 
        of title 18, United States Code (commonly known as the 
        ``Wiretap Act''), or any other provision of Federal law not 
        specifically amended by this Act.

SEC. 9. NATIONAL STANDARD.

    (a) Preemption.--For a controller that is subject to this Act, or 
any regulation promulgated pursuant to this Act, the provisions of this 
Act, or any such regulation, shall preempt any civil provision of the 
law of any State or political subdivision of a State to the degree the 
law is focused on the reduction of privacy risk through the regulation 
of the collection of sensitive personal information and the collection, 
storage, processing, sale, sharing with third parties, or other use of 
such information.
    (b) Consumer Protection Laws.--Except as provided in subsection 
(a), this section may not be construed to limit the enforcement, or the 
bringing of a claim pursuant to any State consumer protection law by an 
attorney general of a State, other than the extent to which any such 
law regulates the collection of sensitive personal information and the 
collection, storage, processing, sale, sharing with third parties, or 
other use of such information.
    (c) Protection of Certain State Law.--Nothing in this Act may be 
construed to preempt the applicability of any of the following:
            (1) State constitutional, trespass, contract, data breach 
        notification, or tort law, other than to the degree such law is 
        substantially intended to govern the collection of sensitive 
        personal information and the collection, storage, processing, 
        sale, sharing with third parties, or other use of such 
        information.
            (2) Any other State law to the extent that the law relates 
        to acts of fraud, wiretapping, or the protection of social 
        security numbers.
            (3) Any State law to the extent the law provides additional 
        provisions to specifically regulate the covered entities as 
        defined for purposes of the regulations promulgated pursuant to 
        section 264(c) of the Health Insurance Portability and 
        Accountability Act of 1996 (Public Law 104-191), section 444 of 
        the General Education Provisions Act (commonly known as the 
        Family Educational Rights and Privacy Act of 1974) (20 U.S.C. 
        1232g), the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), 
        or the Gramm-Leach-Bliley Act (15 U.S.C. 6701 et seq.).
            (4) Any private contract based on a State law that requires 
        a party to provide additional or greater privacy for sensitive 
        personal information or data security protections to an 
        individual than this Act, or any regulation promulgated 
        pursuant to this Act.

SEC. 10. EFFECTIVE DATE.

    This Act shall take effect 180 days after the date of the enactment 
of this Act.
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