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Bill > HR1704


US HR1704

US HR1704
Personal Data Notification and Protection Act of 2015


summary

Introduced
03/26/2015
In Committee
04/29/2015
Crossed Over
Passed
Dead
01/03/2017

Introduced Session

114th Congress

Bill Summary

Personal Data Notification and Protection Act of 2015 Requires certain businesses that use, access, transmit, store, dispose of, or collect sensitive personally identifiable information about more than 10,000 individuals during any 12-month period to notify individuals whose information is believed to have been accessed or acquired through a discovered security breach. Directs businesses, within 30 days after discovery of a breach, to notify: (1) affected individuals by mail, telephone, or email; and (2) major media outlets if the number of affected residents of a state exceeds 5,000. Allows the Federal Trade Commission (FTC) to extend the notification period if a business seeks additional time. Requires the Department of Homeland Security (DHS) to designate a federal government entity to receive notices about security incidents, threats, and vulnerabilities. Directs businesses to notify the DHS-designated entity, and requires the DHS-designated entity to then notify the U.S. Secret Service, the Federal Bureau of Investigation (FBI), and the FTC, if a security breach affects: (1) more than 5,000 individuals, (2) a database that contains the sensitive information of more than 500,000 individuals, (3) federal government databases, or (4) federal employees or contractors involved in national security or law enforcement. Requires the DHS-designated entity to also make the information available to other appropriate federal agencies for law enforcement, national security, or computer security purposes. Authorizes the Secret Service or the FBI to require businesses to delay or exempt individuals from notifications for national security or law enforcement purposes. Requires businesses to notify consumer reporting agencies if more than 5,000 individuals must be notified of a breach. Exempts a business from individual notification requirements if the business: (1) conducts and notifies the FTC of a risk assessment finding no reasonable risk that a breach resulted in, or will result in, harm to the affected individuals, provided that the FTC is given 10 days to determine whether individual notification should be provided before the exemption automatically becomes effective; or (2) uses or participates in a security program that blocks the use of certain sensitive personal information to initiate financial transactions if the program also notifies affected individuals after a breach that results in fraud or unauthorized transactions. Sets forth authority for the FTC and states to enforce against violations of this Act. Amends the federal criminal code to extend extraterritorially the application of penalties for fraud offenses involving an access device issued, owned, managed, or controlled by a financial institution, credit card system member, or other entity organized under the laws of the United States or any U.S. state or territory. (An access device is any card, code, electronic serial number, telecommunications service, or other means of account access that can be used to initiate a transfer of funds or to obtain money, goods, or services.) Removes a condition under current law that subjects a person to such penalties only if the underlying articles, property, or proceeds are held within or have transferred through U.S. jurisdiction.

AI Summary

This bill, the Personal Data Notification and Protection Act of 2015, establishes a national standard for businesses to notify individuals about security breaches involving their sensitive personally identifiable information, which includes things like names, social security numbers, and financial account details. Businesses that handle this type of information for more than 10,000 individuals in a year must report breaches within 30 days, either by mail, phone, or email, and if over 5,000 residents of a state are affected, major media outlets must also be notified. The bill also requires businesses to report significant breaches to a designated federal entity within the Department of Homeland Security (DHS), which will then inform agencies like the U.S. Secret Service and the FBI, especially if the breach affects over 5,000 individuals, a database of over 500,000 individuals, federal databases, or national security personnel. The Secret Service or FBI can delay these notifications for national security or law enforcement reasons, and businesses must also notify credit reporting agencies if more than 5,000 individuals are affected. Exemptions from individual notification are allowed if a business conducts a risk assessment showing no reasonable risk of harm, or if they participate in a security program that prevents unauthorized financial transactions and notifies individuals of fraud. The Federal Trade Commission (FTC) and state attorneys general are empowered to enforce these provisions, and the bill also extends the reach of U.S. law to cover cybercrimes involving access devices issued by U.S. entities, even if the crime occurs outside the United States.

Committee Categories

Business and Industry, Military Affairs and Security

Sponsors (1)

Last Action

Referred to the Subcommittee on the Constitution and Civil Justice. (on 04/29/2015)

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