,i #aacth ,,congress #ast ,session ,h4 ,r4 #aaba ,,in ,,the ,,house ,,of ,,representatives ,march #ac1 #bjac ,mr4 ,conyers 7for himself1 ,mr4 ,scott of ,virginia1 and ,mr4 ,johnson of ,georgia7 introduced the following bill2 which was referred to the ,committee on the ,judiciary ,a ,,bill ,to protect cyber privacy1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,cyber ,privacy ,fortification ,act of #bjac4 ,i ,data ,breach ,notification #aja4 ,failure to provide notice of security breaches involving sensitive personally identifiable information 7a7 ,in general ,chapter #dg of title #ah1 ,united ,states ,code1 is amended by adding at the end the following3 #ajdj4 ,failure to provide notice of security breaches involving sensitive personally identifiable information 7a7 ,whoever1 having a covered obligation to provide notice of a security breach involving sensitive personally identifiable information1 knowingly fails to do so1 shall be fined under this title or imprisoned not more than #e years1 or both4 7b7 ,as used in this section-- 7#a7 the term covered obligation1 with respect to providing notice of a security breach1 means an obligation under ,federal law or1 if the breach is in or affects interstate or foreign commerce1 under ,state law2 7#b7 the term sensitive personally identifiable information means any electronic or digital information that includes-- 7,a7 an individual's first and last name1 or first initial and last name1 or address or phone number in combination with any one of the following data elements where the data elements are not protected by a technology protection measure that renders the data element indecipherable-- 7i7 a nontruncated social security number1 driver's license number1 state resident identification number1 passport number1 or alien registration number2 7ii7 both-- 7,i7 mother's maiden name1 if identified as such2 and 7,,ii7 month1 day1 and year of birth2 and 7iii7 unique biometric data such as a fingerprint1 voice print1 a retina or iris image2 or 7,b7 a financial account number or credit or debit card number in combination with any security code1 access code or password that is required for an individual to obtain credit1 withdraw funds1 or engage in a financial transaction by means of such number2 7#c7 the term security breach means a compromise of the security1 confidentiality1 or integrity of computerized data that there is reason to believe has resulted in improper access to sensitive personally identifiable information2 and 7#d7 the term improper access means access without authorization or in excess of authorization4 4 7b7 ,clerical amendment ,the table of sections at the beginning of chapter #dg of title #ah1 ,united ,states ,code1 is amended by adding at the end the following3 #ajdj4 ,concealment of security breaches involving personally identifiable information4 4 7c7 ,obligation ,to report 7#a7 ,in general ,a person who owns or possesses data in electronic form containing a means of identification and has knowledge of a major security breach of the system containing such data maintained by such person1 must provide prompt notice of such breach to the ,united ,states ,secret ,service or ,federal ,bureau of ,investigation4 7#b7 ,publication of list of notifications ,the ,secret ,service and the ,federal ,bureau of ,investigation shall annually publish in the ,federal ,register a list of all notifications submitted the previous calendar year and the identity of each entity with respect to which the major security breach occurred4 7#c7 ,definition ,in this subsection-- 7,a7 the term major security breach means any security breach involving-- 7i7 means of identification pertaining to #aj1jjj or more individuals is1 or is reasonably believed to have been acquired2 7ii7 databases owned by the ,federal ,government2 or 7iii7 means of identification of ,federal ,government employees or contractors involved in national security matters or law enforcement2 and 7,b7 the term means of identification has the meaning given that term in section #ajbh of title #ah1 ,united ,states ,code4 ,,ii ,non-criminal privacy enforcement and privacy impact statements #bja4 ,enforcement by ,attorney ,general and ,state authorities 7a7 ,definition of authorized entity ,as used in this section1 the term authorized entity means the ,attorney ,general1 with respect to any conduct constituting a violation of a ,federal law enacted after the date of the enactment of this ,act relating to data security and engaged in by a business entity1 and a ,state ,attorney ,general with respect to that conduct to the extent the conduct adversely affects an interest of the residents of a ,state4 7b7 ,civil penalty 7#a7 ,generally ,an authorized entity may in a civil action obtain a civil penalty of not more than #ejj1jjj from any business entity that engages in conduct constituting a violation of a ,federal law enacted after the date of the enactment of this ,act relating to data security4 7#b7 ,special rule for intentional violation ,if the violation described in subsection 7a7 is intentional1 the maximum civil penalty is #a1jjj1jjj4 7c7 ,injunctive relief ,an authorized entity may1 in a civil action against a business entity that has engaged1 or is engaged1 in any conduct constituting a violation of a ,federal law enacted after the date of the enactment of this ,act relating to data security1 obtain an order-- 7#a7 enjoining such act or practice2 or 7#b7 enforcing compliance with that law4 7d7 ,other rights and remedies ,the rights and remedies available under this section do not affect any other rights and remedies available under ,federal or ,state law4 #bjb4 ,coordination of ,state and ,federal efforts 7a7 ,notice 7#a7 ,in general ,a ,state consumer protection attorney may not bring an action under section #bja1 until the attorney general of the ,state involved provides to the ,attorney ,general of the ,united ,states-- 7,a7 written notice of the action2 and 7,b7 a copy of the complaint for the action4 7#b7 ,exception ,paragraph 7#a7 does not apply with respect to the filing of an action by an attorney general of a ,state under this section if the ,state attorney general determines that it is not feasible to provide the notice described in such subparagraph before the filing of the action1 in such a case the ,state attorney general shall provide notice and a copy of the complaint to the ,attorney ,general at the time the ,state attorney general files the action4 7b7 ,federal proceedings ,the ,attorney ,general may-- 7#a7 move to stay any non-,federal action under section #bja1 pending the final disposition of a pending ,federal action under that section2 7#b7 initiate an action in an appropriate ,united ,states district court and move to consolidate all pending actions under section #bja1 including ,state actions1 in that court2 and 7#c7 intervene in a ,state action under section #bja4 7c7 ,pending proceedings ,if the ,attorney ,general institutes a proceeding or action for a violation of a ,federal law enacted after the date of the enactment of this ,act relating to data security1 no authority of a ,state may1 during the pendency of such proceeding or action1 bring an action under this section against any defendant named in such criminal proceeding or a civil action against any defendant for any violation that is alleged in that proceeding or action4 7d7 ,definition ,as used in this section1 the term ,state consumer protection attorney means the attorney general of a ,state or any ,state or local law enforcement agency authorized by the ,state attorney general or by ,state statute to prosecute violations of consumer protection law4 #bjc4 ,requirement that agency rulemaking take into consideration impacts on individual privacy 7a7 ,in general ,title #e1 ,united ,states ,code1 is amended by adding after section #eec the following new section3 #eec;a4 ,privacy impact assessment in rulemaking 7a7 ,initial privacy impact assessment 7#a7 ,in general ,whenever an agency is required by section #eec of this title1 or any other law1 to publish a general notice of proposed rulemaking for a proposed rule1 or publishes a notice of proposed rulemaking for an interpretative rule involving the internal revenue laws of the ,united ,states1 and such rule or proposed rulemaking pertains to the collection1 maintenance1 use1 or disclosure of personally identifiable information from #aj or more individuals1 other than agencies1 instrumentalities1 or employees of the ,federal ,government1 the agency shall prepare and make available for public comment an initial privacy impact assessment that describes the impact of the proposed rule on the privacy of individuals4 ,such assessment or a summary thereof shall be signed by the senior agency official with primary responsibility for privacy policy and be published in the ,federal ,register at the time of the publication of a general notice of proposed rulemaking for the rule4 7#b7 ,contents ,each initial privacy impact assessment required under this subsection shall contain the following3 7,a7 ,a description and analysis of the extent to which the proposed rule will impact the privacy interests of individuals1 including the extent to which the proposed rule-- 7i7 provides notice of the collection of personally identifiable information1 and specifies what personally identifiable information is to be collected and how it is to be collected1 maintained1 used1 and disclosed2 7ii7 allows access to such information by the person to whom the personally identifiable information pertains and provides an opportunity to correct inaccuracies2 7iii7 prevents such information1 which is collected for one purpose1 from being used for another purpose2 and 7iv7 provides security for such information1 including the provision of written notice to any individual1 within #ad days of the date of compromise1 whose privacy interests are compromised by the unauthorized release of personally identifiable information as a result of a breach of security at or by the agency4 7,b7 ,a description of any significant alternatives to the proposed rule which accomplish the stated objectives of applicable statutes and which minimize any significant privacy impact of the proposed rule on individuals4 7b7 ,final privacy impact assessment 7#a7 ,in general ,whenever an agency promulgates a final rule under section #eec of this title1 after being required by that section or any other law to publish a general notice of proposed rulemaking1 or promulgates a final interpretative rule involving the internal revenue laws of the ,united ,states1 and such rule or proposed rulemaking pertains to the collection1 maintenance1 use1 or disclosure of personally identifiable information from #aj or more individuals1 other than agencies1 instrumentalities1 or employees of the ,federal ,government1 the agency shall prepare a final privacy impact assessment1 signed by the senior agency official with primary responsibility for privacy policy4 7#b7 ,contents ,each final privacy impact assessment required under this subsection shall contain the following3 7,a7 ,a description and analysis of the extent to which the final rule will impact the privacy interests of individuals1 including the extent to which such rule-- 7i7 provides notice of the collection of personally identifiable information1 and specifies what personally identifiable information is to be collected and how it is to be collected1 maintained1 used1 and disclosed2 7ii7 allows access to such information by the person to whom the personally identifiable information pertains and provides an opportunity to correct inaccuracies2 7iii7 prevents such information1 which is collected for one purpose1 from being used for another purpose2 and 7iv7 provides security for such information1 including the provision of written notice to any individual1 within #ad days of the date of compromise1 whose privacy interests are compromised by the unauthorized release of personally identifiable information as a result of a breach of security at or by the agency4 7,b7 ,a summary of any significant issues raised by the public comments in response to the initial privacy impact assessment1 a summary of the analysis of the agency of such issues1 and a statement of any changes made in such rule as a result of such issues4 7,c7 ,a description of the steps the agency has taken to minimize the significant privacy impact on individuals consistent with the stated objectives of applicable statutes1 including a statement of the factual1 policy1 and legal reasons for selecting the alternative adopted in the final rule and why each one of the other significant alternatives to the rule considered by the agency which affect the privacy interests of individuals was rejected4 7#c7 ,availability to public ,the agency shall make copies of the final privacy impact assessment available to members of the public and shall publish in the ,federal ,register such assessment or a summary thereof4 7c7 ,waivers 7#a7 ,emergencies ,an agency head may waive or delay the completion of some or all of the requirements of subsections 7a7 and 7b7 to the same extent as the agency head may1 under section #fjh1 waive or delay the completion of some or all of the requirements of sections #fjc and #fjd1 respectively4 7#b7 ,national security ,an agency head may1 for national security reasons1 or to protect from disclosure classified information1 confidential commercial information1 or information the disclosure of which may adversely affect a law enforcement effort1 waive or delay the completion of some or all of the following requirements3 7,a7 ,the requirement of subsection 7a77#a7 to make an assessment available for public comment1 provided that such assessment is made available1 in classified form1 to the ,committees on the ,judiciary of the ,house of ,representatives and the ,senate1 in lieu of making such assessment available to the public4 7,b7 ,the requirement of subsection 7a77#a7 to have an assessment or summary thereof published in the ,federal ,register1 provided that such assessment or summary is made available1 in classified form1 to the ,committees on the ,judiciary of the ,house of ,representatives and the ,senate1 in lieu of publishing such assessment or summary in the ,federal ,register4 7,c7 ,the requirements of subsection 7b77#c71 provided that the final privacy impact assessment is made available1 in classified form1 to the ,committees on the ,judiciary of the ,house of ,representatives and the ,senate1 in lieu of making such assessment available to the public and publishing such assessment in the ,federal ,register4 7d7 ,procedures for gathering comments ,when any rule is promulgated which may have a significant privacy impact on individuals1 or a privacy impact on a substantial number of individuals1 the head of the agency promulgating the rule or the official of the agency with statutory responsibility for the promulgation of the rule shall assure that individuals have been given an opportunity to participate in the rulemaking for the rule through techniques such as-- 7#a7 the inclusion in an advance notice of proposed rulemaking1 if issued1 of a statement that the proposed rule may have a significant privacy impact on individuals1 or a privacy impact on a substantial number of individuals2 7#b7 the publication of a general notice of proposed rulemaking in publications of national circulation likely to be obtained by individuals2 7#c7 the direct notification of interested individuals2 7#d7 the conduct of open conferences or public hearings concerning the rule for individuals1 including soliciting and receiving comments over computer networks2 and 7#e7 the adoption or modification of agency procedural rules to reduce the cost or complexity of participation in the rulemaking by individuals4 7e7 ,periodic review of rules 7#a7 ,in general ,each agency shall carry out a periodic review of the rules promulgated by the agency that have a significant privacy impact on individuals1 or a privacy impact on a substantial number of individuals4 ,under such periodic review1 the agency shall determine1 for each such rule1 whether the rule can be amended or rescinded in a manner that minimizes any such impact while remaining in accordance with applicable statutes4 ,for each such determination1 the agency shall consider the following factors3 7,a7 ,the continued need for the rule4 7,b7 ,the nature of complaints or comments received from the public concerning the rule4 7,c7 ,the complexity of the rule4 7,d7 ,the extent to which the rule overlaps1 duplicates1 or conflicts with other ,federal rules1 and1 to the extent feasible1 with ,state and local governmental rules4 7,e7 ,the length of time since the rule was last reviewed under this subsection4 7,f7 ,the degree to which technology1 economic conditions1 or other factors have changed in the area affected by the rule since the rule was last reviewed under this subsection4 7#b7 ,plan required ,each agency shall carry out the periodic review required by paragraph 7#a7 in accordance with a plan published by such agency in the ,federal ,register4 ,each such plan shall provide for the review under this subsection of each rule promulgated by the agency not later than #aj years after the date on which such rule was published as the final rule and1 thereafter1 not later than #aj years after the date on which such rule was last reviewed under this subsection4 ,the agency may amend such plan at any time by publishing the revision in the ,federal ,register4 7#c7 ,annual publication ,each year1 each agency shall publish in the ,federal ,register a list of the rules to be reviewed by such agency under this subsection during the following year4 ,the list shall include a brief description of each such rule and the need for and legal basis of such rule and shall invite public comment upon the determination to be made under this subsection with respect to such rule4 7f7 ,judicial review 7#a7 ,in general ,for any rule subject to this section1 an individual who is adversely affected or aggrieved by final agency action is entitled to judicial review of agency compliance with the requirements of subsections 7b7 and 7c7 in accordance with chapter #g4 ,agency compliance with subsection 7d7 shall be judicially reviewable in connection with judicial review of subsection 7b74 7#b7 ,jurisdiction ,each court having jurisdiction to review such rule for compliance with section #eec1 or under any other provision of law1 shall have jurisdiction to review any claims of noncompliance with subsections 7b7 and 7c7 in accordance with chapter #g4 ,agency compliance with subsection 7d7 shall be judicially reviewable in connection with judicial review of subsection 7b74 7#c7 ,limitations 7,a7 ,an individual may seek such review during the period beginning on the date of final agency action and ending #a year later1 except that where a provision of law requires that an action challenging a final agency action be commenced before the expiration of #a year1 such lesser period shall apply to an action for judicial review under this subsection4 7,b7 ,in the case where an agency delays the issuance of a final privacy impact assessment pursuant to subsection 7c71 an action for judicial review under this section shall be filed not later than-- 7i7 #a year after the date the assessment is made available to the public2 or 7ii7 where a provision of law requires that an action challenging a final agency regulation be commenced before the expiration of the #a-year period1 the number of days specified in such provision of law that is after the date the assessment is made available to the public4 7#d7 ,relief ,in granting any relief in an action under this subsection1 the court shall order the agency to take corrective action consistent with this section and chapter #g1 and may-- 7,a7 remand the rule to the agency2 and 7,b7 defer the enforcement of the rule against individuals1 unless the court finds that continued enforcement of the rule is in the public interest4 7#e7 ,rule of construction ,nothing in this subsection limits the authority of any court to stay the effective date of any rule or provision thereof under any other provision of law or to grant any other relief in addition to the requirements of this subsection4 7#f7 ,record of agency action ,in an action for the judicial review of a rule1 the privacy impact assessment for such rule1 including an assessment prepared or corrected pursuant to paragraph 7#d71 shall constitute part of the entire record of agency action in connection with such review4 7#g7 ,exclusivity ,compliance or noncompliance by an agency with the provisions of this section shall be subject to judicial review only in accordance with this subsection4 7#h7 ,savings clause ,nothing in this subsection bars judicial review of any other impact statement or similar assessment required by any other law if judicial review of such statement or assessment is otherwise permitted by law4 7g7 ,definition ,for purposes of this section1 the term personally identifiable information means information that can be used to identify an individual1 including such individual's name1 address1 telephone number1 photograph1 social security number or other identifying information4 ,it includes information about such individual's medical or financial condition4 4 7b7 ,periodic review transition provisions 7#a7 ,initial plan ,for each agency1 the plan required by subsection 7e7 of section #eec;a of title #e1 ,united ,states ,code 7as added by subsection 7a771 shall be published not later than #ahj days after the date of the enactment of this ,act4 7#b7 ,review period ,in the case of a rule promulgated by an agency before the date of the enactment of this ,act1 such plan shall provide for the periodic review of such rule before the expiration of the #aj-year period beginning on the date of the enactment of this ,act4 ,for any such rule1 the head of the agency may provide for a #a-year extension of such period if the head of the agency1 before the expiration of the period1 certifies in a statement published in the ,federal ,register that reviewing such rule before the expiration of the period is not feasible4 ,the head of the agency may provide for additional #a-year extensions of the period pursuant to the preceding sentence1 but in no event may the period exceed #ae years4 7c7 ,congressional review ,section #hja7;a77#a77;,b7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 by redesignating clauses 7iii7 and 7iv7 as clauses 7iv7 and 7v71 respectively2 and 7#b7 by inserting after clause 7ii7 the following new clause3 7iii7 the agency's actions relevant to section #eec;a2 4 7d7 ,clerical amendment ,the table of sections at the beginning of chapter #e of title #e1 ,united ,states ,code1 is amended by adding after the item relating to section #eec the following new item3 #eec;a4 ,privacy impact assessment in rulemaking4 4