,,ii #aafth ,,congress #ast ,session ,s4 #bhhi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #ah1 #bjai,mr4 ,hawley 7for himself1 ,mr4 ,cotton1 and ,mr4 ,rubio7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to safeguard data of ,americans from foreign governments that pose risks to national security by imposing data security requirements and strengthening review of foreign investments1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,national ,security and ,personal ,data ,protection ,act of #bjai4 #b4 ,definitions ,in this ,act3 7#a7 ,commission ,the term ,commission means the ,federal ,trade ,commission4 7#b7 ,country of concern 7,a7 ,in general ,subject to subparagraph 7,b77iii71 the term country of concern means-- 7i7 the ,people's ,republic of ,china2 7ii7 the ,russian ,federation2 and 7iii7 any other country designated by the ,secretary of ,state as being of concern with respect to the protection of data privacy and security4 7,b7 ,designation of countries of concern ,not later than #a year after the date of enactment of this ,act1 and annually thereafter1 the ,secretary of ,state shall-- 7i7 review the status of data privacy and security requirements 7including by reviewing laws1 policies1 practices1 and regulations related to data privacy and security7 in each foreign country to determine-- 7,i7 whether it would pose a substantial risk to the national security of the ,united ,states if the government of such country gained access to the user data of citizens and residents of the ,united ,states2 and 7,,ii7 whether there is a substantial risk that the government of such country will1 in a manner that fails to afford similar respect for civil liberties and privacy as the ,constitution and laws of the ,united ,states1 obtain user data from companies that collect user data2 7ii7 designate each country that meets the criteria of clause 7i7 as a country of concern2 and 7iii7 remove the designation from any country that was previously designated a country of concern 7regardless of whether such designation was pursuant to clause 7i7 or 7ii7 of subparagraph 7,a7 or was made by the ,secretary of ,state pursuant to clause 7iii7 of such subparagraph7 if the country-- 7,i7 no longer meets the criteria of clause 7i72 and 7,,ii7 is not at substantial risk of meeting such criteria4 7,c7 ,regulations ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of ,state shall prescribe regulations-- 7i7 establishing a process for a covered technology company or country of concern to petition the ,secretary to remove the country of concern designation from a country that was designated as such pursuant to subparagraph 7,b77ii72 and 7ii7 setting forth the procedures and criteria the ,secretary will use in identifying or removing countries under subparagraphs 7,a77iii7 or 7,b77iii74 7#c7 ,covered technology company ,the term covered technology company means an entity that provides an online data-based service such as a website or internet application in or affecting interstate or foreign commerce and-- 7,a7 is organized under the laws of a country of concern2 7,b7 in which foreign persons that are nationals of1 or companies that are organized under the laws of1 countries of concern have a plurality or controlling equity interest2 7,c7 is a subsidiary company of an entity described in subparagraph 7,a7 or 7,b72 or 7,d7 is otherwise subject to the jurisdiction of a country of concern in a manner that allows the country of concern to obtain the user data of citizens and residents of the ,united ,states without similar respect for civil liberties and privacy as provided under the ,constitution and laws of the ,united ,states4 7#d7 ,facial recognition technology ,the term facial recognition technology means technology that analyzes facial features in still or video images and is used to identify1 or facilitate identification of1 an individual using facial physical characteristics4 7#e7 ,targeted advertising 7,a7 ,in general ,the term targeted advertising means a form of advertising where advertisements are displayed to a user based on the user's traits1 information from a profile about the user that is created for the purpose of selling advertisements1 or the user's previous online or offline behavior4 7,b7 ,limitation ,such term shall not include advertising chosen because of the context of the internet service1 such as-- 7i7 advertising that is directed to a user based on the content of the website1 online service1 online application1 or mobile application that the user is connected to2 or 7ii7 advertising that is directed to a user by the operator of a website1 online service1 online application1 or mobile application based on the search terms that the user used to arrive at such website1 service1 or application4 7#f7 ,user data ,the term user data means any information obtained by an entity that provides a data-based service such as a website or internet application that identifies1 relates to1 describes1 is capable of being associated with1 or could reasonably be linked with an individual who is a citizen or resident of the ,united ,states without regard to whether such information is directly submitted by the individual to the entity1 is derived by the entity from the observed activity of the individual1 or is obtained by the entity by any other means4 #c4 ,data security requirements for covered technology companies 7a7 ,in general ,the following requirements shall apply to a covered technology company3 7#a7 ,minimal collection of data ,the company shall not collect any more user data than is necessary for the operation of the website1 service1 or application of the company4 7#b7 ,prohibition on secondary uses ,the company shall not use any user data collected under paragraph 7#a7 for any purpose that is secondary to the operation of the website1 service1 or application of the company1 including providing targeted advertising1 unnecessarily sharing such data with a third party1 or unnecessarily facilitating facial recognition technology4 7#c7 ,right to view and delete data ,the company shall allow an individual to-- 7,a7 view any user data held by the company that relates to the individual2 and 7,b7 permanently delete any user data held by the company that has been collected1 directly or indirectly1 from the individual4 7#d7 ,prohibition on transfer to countries of concern ,the company shall not transfer any user data or information needed to decipher that data1 such as encryption keys1 to any country of concern 7including indirectly through a third country that is not a country of concern74 7#e7 ,data storage requirement ,the company shall not store any user data collected from citizens or residents of the ,united ,states or information needed to decipher that data1 such as encryption keys1 on a server or other data storage device that is located outside of the ,united ,states or a country that maintains an agreement with the ,united ,states to share data with law enforcement agencies through a process established by law4 7#f7 ,reporting requirement ,not less frequently than annually1 the chief executive officer or equivalent officer of the company shall submit1 under penalty of perjury1 a report to the ,commission1 the ,attorney ,general of the ,united ,states1 and the ,attorney ,general of each ,state certifying compliance with the requirements of this section4 7b7 ,exceptions 7#a7 ,exception for law enforcement and military ,the requirements of paragraphs 7#a7 through 7#d7 of subsection 7a7 shall not apply where data is collected1 used1 retained1 stored1 or shared by a covered technology company solely for the purpose of assisting a law enforcement or military agency that is not affiliated with a country of concern4 7#b7 ,transfer of shared content ,the requirements of paragraph 7#d7 and 7#e7 of subsection 7a7 shall not apply to user data that is content produced by a user for the purpose of sharing with other users 7such as social media posts1 emails1 or data related to a transaction involving the user7 or information needed to decipher that data provided that the transfer and any storage necessary to enact the transfer is conducted solely to carry out the user's intent to share such data with individual users in other countries and that necessary storage occurs only on the intended recipient's individual device4 7c7 ,effective date ,the requirements of this section shall take effect #ij days after the date of enactment of this ,act4 #d4 ,data security requirements for other technology companies 7a7 ,in general ,the following requirements shall apply to any company operating in or affecting interstate or foreign commerce that provides a data-based service such as a website or internet application but is not a covered technology company3 7#a7 ,prohibition on transfer to countries of concern ,the company shall not transfer any user data collected from an individual in the ,united ,states or information needed to decipher that data1 such as encryption keys1 to any country of concern 7including indirectly through a third country that is not a country of concern74 7#b7 ,prohibition on storing data in countries of concern ,the company shall not store any user data collected from an individual in the ,united ,states or information needed to decipher that data1 such as encryption keys1 on a server or other data storage device that is located in any country of concern4 7b7 ,exceptions 7#a7 ,exception for law enforcement and military ,the requirements of subsection 7a7 shall not apply where data is collected1 used1 retained1 stored1 or shared by a covered technology company solely for the purpose of assisting a law enforcement or military agency that is not affiliated with a country of concern4 7#b7 ,transfer of shared content ,the requirements of subsection 7a7 shall not apply to user data that is content produced by a user for the purpose of sharing with other users 7such as social media posts1 emails1 or data related to a transaction involving the user7 or information needed to decipher that data provided that the transfer and any storage necessary to enact the transfer is conducted solely to carry out the user's intent to share such data with individual users in other countries and that necessary storage occurs only on the intended recipient's individual device4 7c7 ,effective date ,the requirements of this section shall take effect #ij days after the date of enactment of this ,act4 #e4 ,enforcement of data security requirements 7a7 ,enforcement by the ,commission 7#a7 ,in general ,except as otherwise provided1 sections #c and #d shall be enforced by the ,commission under the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7#b7 ,unfair or deceptive acts or practices ,a violation of section #c or #d shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7#c7 ,actions by the ,commission ,except as otherwise provided1 the ,commission shall prevent any person from violating section #c or #d in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this ,act1 and any person who violates such section shall be subject to the penalties and entitled to the privileges and immunities provided in the ,federal ,trade ,commission ,act4 7#d7 ,authority preserved ,nothing in this ,act shall be construed to limit the authority of the ,commission under any other provision of law4 7b7 ,criminal penalty 7#a7 ,offense ,it shall be unlawful to knowingly cause a technology company to violate a requirement of section #c or #d4 7#b7 ,penalty ,any person who violates paragraph 7#a7 shall be imprisoned for not more than #e years1 fined under title #ah1 ,united ,states ,code1 or both4 7c7 ,enforcement by ,state attorneys general 7#a7 ,in general 7,a7 ,civil actions ,in any case in which the attorney general of a ,state has reason to believe that an interest of the residents of that ,state has been or is threatened or adversely affected by the engagement of any person in a practice that violates section #c or #d1 the ,state1 as parens patriae1 may bring a civil action on behalf of the residents of the ,state in a district court of the ,united ,states or a ,state court of appropriate jurisdiction to-- 7i7 enjoin that practice2 7ii7 enforce compliance with such section2 7iii7 on behalf of residents of the ,state1 obtain damages1 statutory damages1 restitution1 or other compensation1 each of which shall be distributed in accordance with ,state law2 or 7iv7 obtain such other relief as the court may consider to be appropriate4 7,b7 ,notice 7i7 ,in general ,before filing an action under subparagraph 7,a71 the attorney general of the ,state involved shall provide to the ,commission-- 7,i7 written notice of that action2 and 7,,ii7 a copy of the complaint for that action4 7ii7 ,exemption 7,i7 ,in general ,clause 7i7 shall not apply with respect to the filing of an action by an attorney general of a ,state under this paragraph if the attorney general of the ,state determines that it is not feasible to provide the notice described in that clause before the filing of the action4 7,,ii7 ,notification ,in an action described in subclause 7,i71 the attorney general of a ,state shall provide notice and a copy of the complaint to the ,commission at the same time as the attorney general files the action4 7#b7 ,intervention 7,a7 ,in general ,on receiving notice under paragraph 7#a77;,b71 the ,commission shall have the right to intervene in the action that is the subject of the notice4 7,b7 ,effect of intervention ,if the ,commission intervenes in an action under paragraph 7#a71 it shall have the right-- 7i7 to be heard with respect to any matter that arises in that action2 and 7ii7 to file a petition for appeal4 7#c7 ,construction ,for purposes of bringing any civil action under paragraph 7#a71 nothing in this ,act shall be construed to prevent an attorney general of a ,state from exercising the powers conferred on the attorney general by the laws of that ,state to-- 7,a7 conduct investigations2 7,b7 administer oaths or affirmations2 or 7,c7 compel the attendance of witnesses or the production of documentary and other evidence4 7#d7 ,actions by the ,commission ,in any case in which an action is instituted by or on behalf of the ,commission for violation of section #c or #d1 no ,state may1 during the pendency of that action1 institute an action under paragraph 7#a7 against any defendant named in the complaint in the action instituted by or on behalf of the ,commission for that violation4 7#e7 ,venue2 service of process 7,a7 ,venue ,any action brought under paragraph 7#a7 may be brought in-- 7i7 the district court of the ,united ,states that meets applicable requirements relating to venue under section #acia of title #bh1 ,united ,states ,code2 or 7ii7 a ,state court of competent jurisdiction4 7,b7 ,service of process ,in an action brought under paragraph 7#a7 in a district court of the ,united ,states1 process may be served wherever defendant-- 7i7 is an inhabitant2 or 7ii7 may be found4 7d7 ,private right of action 7#a7 ,in general ,any individual who suffers injury as a result of an act1 practice1 or omission of a covered technology company that violates section #c may bring a civil action against such company in any court of competent jurisdiction4 7#b7 ,relief ,in a civil action brought under paragraph 7#a7 in which the plaintiff prevails1 the court may award such plaintiff up to #a1jjj for each day that such plaintiff was affected by a violation of section #c 7up to a maximum of #ae1jjj per each such violation per plaintiff74 #f4 ,requirement for approval of ,committee on ,foreign ,investment in the ,united ,states of certain transactions ,section #gba7;b7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #defe7;b77 is amended by adding at the end the following3 7#i7 ,approval required for certain transactions 7,a7 ,in general ,a covered transaction described in subparagraph 7,c7 is prohibited unless the ,committee-- 7i7 reviews the transaction under this subsection2 and 7ii7 determines that the transaction does not pose a risk to the national security of the ,united ,states4 7,b7 ,mitigation ,the ,committee1 or a lead agency on behalf of the ,committee1 may negotiate1 enter into or impose1 and enforce an agreement or condition under subsection 7l77#c7 with any party to a covered transaction described in subparagraph 7,c7 to mitigate any risk to the national security of the ,united ,states that arises as a result of the covered transaction4 7,c7 ,covered transaction described ,a covered transaction described in this subparagraph is a transaction that could result in foreign control of a ,united ,states company-- 7i7 that collects1 sells1 buys1 or processes user data 7as defined in section #b of the ,national ,security and ,personal ,data ,protection ,act of #bjai7 and whose business consists substantially more of transferring data than manufacturing1 delivering1 repairing1 or servicing physical goods or providing physical services2 or 7ii7 that operates a social media platform or website4 4