,i #aaf? ,,congress #a/ ,session ,h4 ,r4 #bjac ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #a1 #bjai,ms4 ,del,bene 7= h]self1 ,miss ,rice ( ,new ,york1 & ,mr4 ,suozzi7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce ,a ,,bill ,to require ! ,f$]al ,trade ,commission to promulgate regulations relat$ to s5sitive p]sonal in=mation1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,in=mation ,transp>5cy ,p]sonal ,data ,control ,act4 #b4 ,s5se ( ,congress ,x is ! ,s5se ( ,congress t-- 7#a7 ! ,unit$ ,/ates mu/ develop a balanc$1 high-/&>d digital framework t e/abli%es global /&>ds2 7#b7 a key elem5t ( ?is framework is a /rong national /&>d t combats anti-consum] practices2 7#c7 x is critical t ! ,f$]al ,gov]nm5t provide guidance on ! collection & /orage ( s5sitive data2 7#d7 x is important to provide our c\ntry ) fair & ?\ghtful digital consum] rights2 & 7#e7 x is important to ensure t our en=cem5t au?orities h ! res\rces ne$$ to protect consum]s f bad actors 9 ! privacy & security space4 #c4 ,requirem5ts = s5sitive p]sonal in=mation 7a7 ,regulations ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,f$]al ,trade ,commission %all promulgate regulations "u section #eec ( title #e1 ,unit$ ,/ates ,code1 to require1 except z provid$ 9 subsection 7b71 any controll] t provides s]vices to ! public involv+ ! collection1 /orage1 process+1 sale1 %>+ ) ?ird p>ties1 or o!r use ( s5sitive p]sonal in=mation f ,unit$ ,/ates p]sons or p]sons locat$ 9 ! ,unit$ ,/ates :5 ! data is collect$1 to meet ! foll[+ requirem5ts3 7#a7 ,affirmative1 express1 & opt-9 cons5t ,provide us]s ) notice ?r\gh a privacy & data use policy ( a specific reque/ to use _! s5sitive p]sonal in=mation & require t us]s provide affirmative1 express1 & opt-9 cons5t to any functionality t involves ! collection1 /orage1 process+1 sale1 %>+1 or o!r use ( s5sitive p]sonal in=mation1 includ+ %>+ s5sitive p]sonal in=mation ) ?ird p>ties4 7#b7 ,privacy & data use policy ,provide us]s ) an up-to-date1 transp>5t privacy1 security1 & data use policy t meets g5]al requirem5ts1 includ+ t su* policy1 pres5t$ to us]s 9 ! context :]e x applies-- 7,a7 is concise & intelligible2 7,b7 is cle> & prom95t 9 appe>ance2 7,c7 uses cle> & pla9 language2 7,d7 uses visualizations :]e appropriate to make complex in=mation und]/&able by ! ord9>y us]2 & 7,e7 is provid$ free ( *>ge4 7#c7 ,additional requirem5ts = privacy & data use policy ,! privacy1 security1 & data use policy requir$ "u p>agraph 7#b7 %all include ! foll[+3 7,a7 ,id5tity & contact in=mation ( ! entity collect+ ! s5sitive p]sonal in=mation4 7,b7 ,! purpose or use = collect+1 /or+1 process+1 sell+1 %>+1 or o!rwise us+ ! s5sitive p]sonal in=mation4 7,c7 ,?ird p>ties ) :om ! s5sitive p]sonal in=mation w be %>$ & = :at purposes4 7,d7 ,! /orage p]iod = h[ long ! s5sitive p]sonal in=mation w be reta9$ by ! controll] & any ?ird p>ty1 z applicable4 7,e7 ,h[ cons5t to collect+1 /or+1 process+1 sell+1 %>+1 or o!rwise us+ ! s5sitive p]sonal in=mation1 includ+ %>+ ) ?ird p>ties1 may be )drawn4 7,f7 ,h[ a us] c view or obta9 ! s5sitive p]sonal in=mation t !y h provid$ to a controll] & :e!r x c be export$ to o!r web-bas$ plat=ms4 7,g7 ,:at k9d ( s5sitive p]sonal in=mation is collect$ & %>$4 7,h7 ,:e!r ! s5sitive p]sonal in=mation w be us$ to create pr(iles ab\t us]s & :e!r !y w be integrat$ across plat=ms4 7,i7 ,h[ s5sitive p]sonal in=mation is protect$ f unau?oriz$ access or acquisition4 7#d7 ,opt-out cons5t ,= any collection1 /orage1 process+1 sell+1 %>+1 or o!r use ( non-s5sitive p]sonal in=mation1 includ+ %>+ ) ?ird p>ties1 controll]s %all provide us]s ) ! ability to opt out at any "t4 7#e7 ,privacy audits 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraphs 7,c7 & 7,d71 annually1 ea* controll] collect+1 /or+1 process+1 sell+1 %>+1 or o!rwise us+ s5sitive p]sonal in=mation %all-- 7i7 obta9 a privacy audit f a qualifi$1 objective1 indep5d5t ?ird-p>ty2 & 7ii7 %all make public :e!r or n ! privacy audit f\nd ! controll] compliant4 7,b7 ,audit requirem5ts ,ea* su* audit %all-- 7i7 set =? ! privacy1 security1 & data use controls t ! controll] has implem5t$ & ma9ta9$ dur+ ! report+ p]iod2 7ii7 describe :e!r su* controls are appropriate to ! size & complexity ( ! controll]1 ! nature & scope ( ! activities ( ! controll]1 & ! nature ( ! s5sitive p]sonal in=mation or behavioral data collect$ by ! controll]2 7iii7 c]tify :e!r ! privacy & security controls op]ate ) suffici5t effectiv5ess to provide reasonable assurance to protect ! privacy & security ( s5sitive p]sonal in=mation or behavioral data1 includ+ ) respect to data %>$ ) ?ird p>ties1 & t ! controls h s op]at$ ?r\gh\t ! report+ p]iod2 7iv7 be prep>$ & complet$ )9 #fj days aft] ! end ( ! report+ p]iod to :i* ! audit applies2 & 7v7 be provid$ to ! ,f$]al ,trade ,commission or to ! attorney g5]al ( a ,/ate1 or o!r au?oriz$ ,/ate (fic]1 )9 #aj days ( notification by ! ,commission or ! attorney g5]al ( a ,/ate1 or o!r au?oriz$ ,/ate (fic] :]e su* p]son has pres5t$ to ! controll] allegations t a violation ( ?is ,act or any regulation issu$ "u ?is ,act has be5 committ$ by ! controll]4 7,c7 ,small bus9ess audit exemption ,! audit requirem5ts describ$ 9 ?is p>agraph %all n apply to controll]s :o collect1 /ore1 process1 sell1 %>e1 or o!rwise use s5sitive p]sonal in=mation relat+ to #e1jjj or few] individuals4 7,d7 ,non-s5sitive p]sonal in=mation exemption ,! audit requirem5ts set =? above %all n apply to controll]s :o d n collect1 /ore1 process1 sell1 %>e1 or o!rwise use s5sitive p]sonal in=mation4 7b7 ,exemptions 7#a7 ,necess>y op]ations & security purposes ,subsection 7a7 %all n apply to ! process+1 collect+1 /or+1 %>+1 sell+ ( s5sitive p]sonal in=mation = ! foll[+ purposes3 7,a7 ,prev5t+ or detect+ fraud1 id5tity !ft1 or crim9al activity4 7,b7 ,! use ( su* in=mation to id5tify errors t impair functionality or o!rwise enhanc+ or ma9ta9+ ! availability ( ! s]vices or in=mation sy/ems ( ! controll] = au?oriz$ access & use4 7,c7 ,protect+ ! vital int]e/s ( ! consum] or ano!r natural p]son4 7,d7 ,respond+ 9 good fai? to valid legal process or provid+ in=mation z o!rwise requir$ or au?oriz$ by law4 7,e7 ,monitor+ or en=c+ agreem5ts betwe5 ! controll] & an individual1 includ+ b n limit$ to1 t]ms ( s]vice1 t]ms ( use1 us] agreem5ts1 or agreem5ts conc]n+ monitor+ crim9al activity4 7,f7 ,protect+ ! prop]ty1 s]vices1 or in=mation sy/ems ( ! controll] aga9/ unau?oriz$ access or use4 7,g7 ,advanc+ a sub/antial public int]e/1 includ+ ar*ival purposes1 sci5tific or hi/orical rese>*1 & public heal?1 if su* process+ does n create a significant risk ( h>m to consum]s4 7#b7 ,reasonable expectation ( us]s ,! regulations promulgat$ pursuant to subsection 7a7 ) respect to ! requirem5t to provide opt-9 cons5t %all n apply to ! process+1 /orage1 & collection ( s5sitive p]sonal in=mation or behavioral data 9 :i* su* process+ does n deviate f purposes consi/5t ) a controll]'s relation%ip ) us]s z und]/ood by ! reasonable us]4 #d4 ,application & en=cem5t by ! ,f$]al ,trade ,commission 7a7 ,common c>ri]s ,not)/&+ ! limitations 9 ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 on ,commission au?ority ) respect to common c>ri]s1 ?is ,act applies1 accord+ to its t]ms1 to common c>ri]s subject to ! ,communications ,act ( #aicd 7#dg ,u4,s4,c4 #aea et seq47 & all ,acts am5datory !re( & supplem5t>y !reto4 7b7 ,en=cem5t 7#a7 ,unfair or deceptive acts or practices ,a violation ( ?is ,act or a regulation promulgat$ "u ?is ,act %all be treat$ z a violation ( a rule "u section #ah7;a77#a77;,b7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b77 reg>d+ unfair or deceptive acts or practices4 7#b7 ,p[]s ( ,commission ,except z provid$ 9 subsection 7a71 ! ,f$]al ,trade ,commission %all en=ce ?is ,act & ! regulations promulgat$ "u ?is ,act 9 ! same mann]1 by ! same means1 & ) ! same jurisdiction1 p[]s1 & duties z ?\gh all applicable t]ms & provisions ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 7 incorporat$ into & made a "p ( ?is ,act4 ,any p]son :o violates ?is ,act or a regulation promulgat$ "u ?is ,act %all be subject to ! p5alties & entitl$ to ! privileges & immunities provid$ 9 ! ,f$]al ,trade ,commission ,act4 7c7 ,con/ruction ,no?+ 9 ?is ,act %all be con/ru$ to limit ! au?ority ( ! ,f$]al ,trade ,commission "u any o!r provision ( law4 #e4 ,"r ( action 7a7 ,"r ( action ,except z provid$ 9 subsection 7e71 ! attorney g5]al ( a ,/ate1 or o!r au?oriz$ ,/ate (fic]1 alleg+ a violation ( ?is ,act or any regulation issu$ "u ?is ,act t affects or may affect su* ,/ate or its resid5ts may br+ an action on behalf ( ! resid5ts ( ! ,/ate 9 any ,unit$ ,/ates di/rict c\rt = ! di/rict 9 :i* ! def5dant is f\nd1 resides1 or transacts bus9ess1 or :]ev] v5ue is prop] "u section #acia ( title #bh1 to obta9 appropriate injunctive relief4 7b7 ,notice to ,commission requir$ ,a ,/ate %all provide prior writt5 notice to ! ,f$]al ,trade ,commission ( any civil action "u subsection 7a7 toge!r ) a copy ( its compla9t1 except t if x is n feasible = ! ,/ate to provide su* prior notice1 ! ,/ate %all provide su* notice imm$iately ^u in/itut+ su* action4 7c7 ,int]v5tion by ! ,commission ,! ,commission may int]v5e 9 su* civil action & ^u int]v5+-- 7#a7 be he>d on all matt]s aris+ 9 su* civil action2 & 7#b7 file petitions = appeal ( a decision 9 su* civil action4 7d7 ,con/ruction ,no?+ 9 ?is section %all be con/ru$-- 7#a7 to prev5t ! attorney g5]al ( a ,/ate1 or o!r au?oriz$ ,/ate (fic]1 f ex]cis+ ! p[]s conf]r$ on ! attorney g5]al1 or o!r au?oriz$ ,/ate (fic]1 by ! laws ( su* ,/ate2 or 7#b7 to prohibit ! attorney g5]al ( a ,/ate1 or o!r au?oriz$ ,/ate (fic]1 f proce$+ 9 ,/ate or ,f$]al c\rt on ! basis ( an alleg$ violation ( any civil or crim9al /atute ( t ,/ate4 7e7 ,limitation 7#a7 ,no sep>ate action ,an action may n be br\ght "u subsection 7a7 if ! same alleg$ violation is ! subject ( a p5d+ action by ! ,commission or ! ,unit$ ,/ates4 7#b7 ,exclusive p]iod to act by ,commission ,an action-- 7,a7 may n be br\ght "u subsection 7a7 until ! expiration ( ! #fj-;day p]iod t beg9s on ! date on :i* a violation is discov]$ by ! ,commission or ! date on :i* ! ,commission is notifi$ ( ! violation2 & 7,b7 may only be br\ght "u subsection 7a7 if ! ,commission does n br+ an action relat$ to ! violation dur+ su* p]iod4 #f4 ,privacy & data security employees & fund+ = ! ,commission 7a7 ,employm5t au?ority ,! ,commission %all hire #ej new full-"t employees to focus on privacy & data security1 #ae ( :i* %all h te*nology exp]tise4 7b7 ,additional fund+ = privacy & data security ,!re is au?oriz$ to be appropriat$ to ! ,commission #ce1jjj1jjj = issues relat$ to privacy & data security4 #g4 ,def9itions ,9 ?is ,act3 7#a7 ,call detail record ,! t]m call detail record-- 7,a7 means session-id5tify+ in=mation 7includ+ an orig9at+ or t]m9at+ telephone numb]1 an ,int]national ,mobile ,subscrib] ,id5tity numb]1 or an ,int]national ,mobile ,/ation ,equipm5t ,id5tity numb]71 a telephone call+ c>d numb]1 or ! "t or duration ( a call2 7,b7 does n include-- 7i7 ! cont5ts 7z def9$ 9 section #beaj7h7 ( title #ah1 ,unit$ ,/ates ,code7 ( any communication2 7ii7 ! "n1 address1 or f9ancial in=mation ( a subscrib] or cu/om]2 7iii7 cell site location or global position+ sy/em in=mation2 or 7iv7 bus9ess cu/om]s4 7#b7 ,cle> & prom95t ,! t]m cle> & prom95t means 9 any communication m$ium1 ! requir$ disclosure is-- 7,a7 ( a type1 size1 & location suffici5tly noticeable = an ord9>y consum] to read & compreh5d ! communication2 7,b7 provid$ 9 a mann] su* t an ord9>y consum] is able to read & compreh5d ! communication2 7,c7 is pres5t$ 9 an und]/&able language & syntax2 7,d7 includes no?+ contr>y to1 inconsi/5t )1 or t mitigates any /atem5t conta9$ )9 ! disclosure or )9 any docum5t l9k$ to or ref]5c$ !re92 & 7,e7 includes an option t is compliant ) applicable obligations ( ! controll] "u title ,,iii ( ! ,am]icans ) ,disabilities ,act ( #aiij 7#db ,u4,s4,c4 #abaha et seq474 7#c7 ,commission ,! t]m ,commission means ! ,f$]al ,trade ,commission4 7#d7 ,controll] ,! t]m controll] means a p]son t1 on its own or jo9tly ) o!r entities1 det]m9es ! purposes & means ( process+ s5sitive p]sonal in=mation4 7#e7 ,processor ,! t]m processor means a p]son t processes data on behalf ( ! controll]4 7#f7 ,s5sitive p]sonal in=mation 7,a7 ,! t]m s5sitive p]sonal in=mation means in=mation relat+ to an id5tifi$ or id5tifiable individual1 includ+ ! foll[+3 7i7 ,f9ancial acc\nt in=mation4 7ii7 ,heal? in=mation4 7iii7 ,g5etic data4 7iv7 ,in=mation p]ta9+ to *ildr5 "u #ac ye>s ( age4 7v7 ,social ,security numb]s4 7vi7 ,unique gov]nm5t-issu$ id5tifi]s 7vii7 ,au!ntication cr$5tials1 su* z a us]name & password4 7viii7 ,precise geolocation in=mation4 7ix7 ,cont5t ( a wire communication1 oral communication1 or electronic communication ) respect to any entity t is n ! int5d$ recipi5t ( ! communication4 7x7 ,call detail records4 7xi7 ,web br[s+ hi/ory1 application usage hi/ory1 & ! functional equival5t ( ei!r4 7xii7 ,biometric in=mation4 7xiii7 ,sexual ori5tation4 7xiv7 ,religi\s beliefs4 7,b7 ,! t]m s5sitive p]sonal in=mation does n include-- 7i7 de-id5tifi$ in=mation 7or ! process ( trans=m+ p]sonal data s t x is n directly relatable to an id5tifi$ or id5tifiable consum]72 7ii7 in=mation relat$ to employm5t2 or 7iii7 publicly available in=mation4 7#g7 ,/ate ,! t]m ,/ate means ea* ,/ate ( ! ,unit$ ,/ates1 ! ,di/rict ( ,columbia1 & ea* commonweal?1 t]ritory1 or possession ( ! ,unit$ ,/ates4 7#h7 ,?ird p>ty ,! t]m ?ird p>ty means an individual or entity t uses or receives s5sitive p]sonal in=mation or behavioral data obta9$ by or on behalf ( a controll]1 o!r ?an-- 7,a7 a s]vice provid] ( a controll] to :om ! controll] discloses ! consum]'s s5sitive p]sonal in=mation = an op]ational purpose pursuant to an agreem5t t prohibits ! s]vice provid] receiv+ ! s5sitive p]sonal in=mation f us+ or disclos+ ! s5sitive p]sonal in=mation = ! b5efit ( ! provid]2 & 7,b7 any entity t uses s5sitive p]sonal in=mation only z reasonably necess>y-- 7i7 to comply ) applicable law1 regulation1 or legal process2 7ii7 to en=ce ! t]ms ( use ( a controll]2 or 7iii7 to detect1 prev5t1 or mitigate fraud or security vuln]abilities4 #h4 ,rule ( con/ruction ,no?+ 9 ?is ,act may be con/ru$ to preclude ! acquisition by ! ,f$]al ,gov]nm5t (-- 7#a7 ! cont5ts ( a wire or electronic communication pursuant to o!r lawful au?orities1 includ+ ! au?orities "u *apt] #aai ( title #ah1 ,unit$ ,/ates ,code 7commonly kn[n z ! ,wiretap ,act71 ! ,=eign ,intellig5ce ,surveillance ,act ( #aigh 7#ej ,u4,s4,c4 #ahja et seq471 or any o!r provision ( ,f$]al law n specifically am5d$ by ?is ,act2 or 7#b7 records or o!r in=mation relat+ to a subscrib] or cu/om] ( any electronic communication s]vice or remote comput+ s]vice 7n includ+ ! cont5t ( su* communications7 pursuant to ! ,=eign ,intellig5ce ,surveillance ,act ( #aigh 7#ej ,u4,s4,c4 #ahja et seq471 *apt] #aai ( title #ah1 ,unit$ ,/ates ,code 7commonly kn[n z ! ,wiretap ,act71 or any o!r provision ( ,f$]al law n specifically am5d$ by ?is ,act4 #i4 ,national /&>d 7a7 ,preemption ,= a controll] t is subject to ?is ,act1 or any regulation promulgat$ pursuant to ?is ,act1 ! provisions ( ?is ,act1 or any su* regulation1 %all preempt any civil provision ( ! law ( any ,/ate or political subdivision ( a ,/ate to ! degree ! law is focus$ on ! r$uction ( privacy risk ?r\gh ! regulation ( ! collection ( s5sitive p]sonal in=mation & ! collection1 /orage1 process+1 sale1 %>+ ) ?ird p>ties1 or o!r use ( su* in=mation4 7b7 ,consum] protection laws ,except z provid$ 9 subsection 7a71 ?is section may n be con/ru$ to limit ! en=cem5t1 or ! br++ ( a claim pursuant to any ,/ate consum] protection law by an attorney g5]al ( a ,/ate1 o!r ?an ! ext5t to :i* any su* law regulates ! collection ( s5sitive p]sonal in=mation & ! collection1 /orage1 process+1 sale1 %>+ ) ?ird p>ties1 or o!r use ( su* in=mation4 7c7 ,protection ( c]ta9 ,/ate law ,no?+ 9 ?is ,act may be con/ru$ to preempt ! applicability ( any ( ! foll[+3 7#a7 ,/ate con/itutional1 trespass1 contract1 data brea* notification1 or tort law1 o!r ?an to ! degree su* law is sub/antially int5d$ to gov]n ! collection ( s5sitive p]sonal in=mation & ! collection1 /orage1 process+1 sale1 %>+ ) ?ird p>ties1 or o!r use ( su* in=mation4 7#b7 ,any o!r ,/ate law to ! ext5t t ! law relates to acts ( fraud1 wiretapp+1 or ! protection ( social security numb]s4 7#c7 ,any ,/ate law to ! ext5t ! law provides additional provisions to specifically regulate ! cov]$ entities z def9$ = purposes ( ! regulations promulgat$ pursuant to section #bfd7;c7 ( ! ,heal? ,insurance ,portability & ,acc\ntability ,act ( #aiif 7,public ,law #ajd-aia71 section #ddd ( ! ,g5]al ,education ,provisions ,act 7commonly kn[n z ! ,family ,educational ,rights & ,privacy ,act ( #aigd7 7#bj ,u4,s4,c4 #abcb;g71 ! ,fair ,cr$it ,report+ ,act 7#ae ,u4,s4,c4 #afha et seq471 or ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fgja et seq474 7#d7 ,any private contract bas$ on a ,/ate law t requires a p>ty to provide additional or great] privacy = s5sitive p]sonal in=mation or data security protections to an individual ?an ?is ,act1 or any regulation promulgat$ pursuant to ?is ,act4 #aj4 ,effective date ,?is ,act %all take effect #ahj days aft] ! date ( ! enactm5t ( ?is ,act4