[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5170 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  2d Session
                                S. 5170

                To establish the Data Protection Agency.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

Mrs. Gillibrand introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
                To establish the Data Protection Agency.

    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 ``Data Protection Act of 2024''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``Agency'' means the Data Protection 
        Agency established under section 3.
            (2) Anonymized data.--The term ``anonymized data'' means 
        information--
                    (A) that does not identify an individual; and
                    (B) with respect to which there is no reasonable 
                basis to believe that the information can be used on 
                its own or in combination with other reasonably 
                available information to identify an individual.
            (3) Automated decision system.--The term ``automated 
        decision system'' means a computational process, including one 
        derived from machine learning, statistics, or other data 
        processing or artificial intelligence techniques, that 
        automates, analyzes, aids, or augments decisions.
            (4) Biometric information.--The term ``biometric 
        information''--
                    (A) means information regarding the physiological 
                or biological characteristics of an individual that may 
                be used, singly or in combination with each other or 
                with other identifying data, to establish the identity 
                of an individual;
                    (B) includes--
                            (i) genetic data;
                            (ii) imagery of the iris, retina, 
                        fingerprint, face, hand, palm, vein patterns, 
                        and voice recordings, from which an identifier 
                        template, such as a faceprint, a minutiae 
                        template, or a voiceprint, can be extracted;
                            (iii) keystroke patterns or rhythms, gait 
                        patterns or rhythms, and sleep, health, or 
                        exercise data that contain identifying 
                        information; and
                            (iv) any mathematical code, profile, or 
                        algorithmic model derived from information 
                        regarding the physiological or biological 
                        characteristics of an individual;
                    (C) does not include information captured from a 
                patient in a health care setting for a medical purpose 
                or information collected, used, or stored for health 
                care treatment, payment, or operations under the Health 
                Insurance Portability and Accountability Act of 1996 
                (Public Law 104-191); and
                    (D) does not include an X-ray, roentgen process, 
                computed tomography, MRI, PET scan, mammography, or 
                other image or film of the human anatomy used to 
                diagnose, prognose, or treat an illness or other 
                medical condition or to further validate scientific 
                testing or screening.
            (5) Collect.--The term ``collect''--
                    (A) means buying, renting, gathering, obtaining, 
                receiving, or accessing any personal data by any means; 
                and
                    (B) includes--
                            (i) receiving personal data from an 
                        individual or device; and
                            (ii) creating, deriving, or inferring 
                        personal data by analyzing data about an 
                        individual or about groups of individuals 
                        similar to the individual.
            (6) Data aggregator.--The term ``data aggregator''--
                    (A) means any person that collects, uses, or 
                shares, in or affecting interstate commerce, an amount 
                of personal data that is not de minimis, as well as 
                entities related to that person by common ownership or 
                corporate control; and
                    (B) does not include an individual who collects, 
                uses, or shares personal data solely for non-commercial 
                reasons.
            (7) Device.--The term ``device'' means any physical object 
        that--
                    (A) is capable of connecting to the internet or 
                other communication network; or
                    (B) has computer processing capabilities that can 
                collect, send, receive, or store data.
            (8) Director.--The term ``Director'' means the Director of 
        the Data Protection Agency.
            (9) Electronic data.--The term ``electronic data'' means 
        any information that is in an electronic or digital format or 
        any electronic or digital reference that contains information 
        about an individual or device.
            (10) Federal privacy law.--The term ``Federal privacy law'' 
        means the provisions of this Act, any other rule or order 
        prescribed by the Agency under this Act, and the following laws 
        (including any amendments made to such laws):
                    (A) Title V of the Gramm-Leach-Bliley Act (Public 
                Law 106-102; 113 Stat. 1338).
                    (B) The Fair Credit Reporting Act (15 U.S.C. 1681 
                et seq.).
                    (C) The Telemarketing and Consumer Fraud and Abuse 
                Prevention Act (15 U.S.C. 6101 et seq.).
                    (D) The Fair and Accurate Credit Transactions Act 
                of 2003 (Public Law 108-159; 117 Stat. 1952).
                    (E) The CAN-SPAM Act of 2003 (15 U.S.C. 7701 et 
                seq.).
                    (F) Sections 222, 227, 338(l), 631, and 705 of the 
                Communications Act of 1934 (47 U.S.C. 222, 227, 338(l), 
                551, 705).
                    (G) The Children's Online Privacy Protection Act of 
                1998 (15 U.S.C. 6501 et seq.).
                    (H) The Right to Financial Privacy Act of 1978 (12 
                U.S.C. 3401 et seq.).
                    (I) The Identity Theft Assumption and Deterrence 
                Act of 1998 (Public Law 105-318; 117 Stat. 3007).
                    (J) The General Education Provisions Act (20 U.S.C. 
                1221 et seq.) (commonly known as the ``Family 
                Educational Rights and Privacy Act of 1974'').
                    (K) Section 552a of title 5, United States Code.
                    (L) The E-Government Act of 2002 (Public Law 107-
                347; 116 Stat. 2899).
                    (M) The Computer Security Act of 1987 (40 U.S.C. 
                1441 note).
                    (N) The Employee Polygraph Protection Act of 1988 
                (29 U.S.C. 2001 et seq.).
                    (O) The Communications Assistance for Law 
                Enforcement Act (Public Law 103-414; 108 Stat. 4279).
                    (P) Sections 1028A, 1030, 1801, 2710, and 2721 and 
                chapter 119, of title 18, United States Code.
                    (Q) The Genetic Information Nondiscrimination Act 
                of 2008 (Public Law 110-233; 122 Stat. 881).
                    (R) The Taxpayer Browsing Protection Act (Public 
                Law 105-35; 111 Stat. 1104).
                    (S) The Privacy Protection Act of 1980 (42 U.S.C. 
                2000aa et seq.).
                    (T) The Cable Communications Policy Act of 1984 
                (Public Law 98-549; 98 Stat. 2779).
                    (U) The Do-Not-Call Implementation Act (Public Law 
                108-10; 117 Stat. 557).
                    (V) The Wireless Communications and Public Safety 
                Act of 1999 (Public Law 106-81; 113 Stat. 1286).
                    (W) Title XXX of the Public Health Service Act (42 
                U.S.C. 300jj et seq.).
            (11) High-risk data practice.--The term ``high-risk data 
        practice'' means an action by a data aggregator that involves--
                    (A) the use of an automated decision system;
                    (B) the processing of data in a manner that 
                involves an individual's protected class, familial 
                status, lawful source of income, financial status such 
                as the individual's income or assets), veteran status, 
                criminal convictions or arrests, citizenship, past, 
                present, or future physical or mental health or 
                condition, psychological states, or any other factor 
                used as a proxy for identifying any of these 
                characteristics;
                    (C) a systematic processing of publicly accessible 
                data on a large scale;
                    (D) processing involving the use of new 
                technologies, or combinations of technologies, that 
                causes or materially contributes to privacy harm;
                    (E) decisions about an individual's access to a 
                product, service, opportunity, or benefit which is 
                based to any extent on automated decision system 
                processing;
                    (F) any profiling of individuals on a large scale;
                    (G) any processing of biometric information for the 
                purpose of uniquely identifying an individual, with the 
                exception of one-to-one biometric authentication;
                    (H) combining, comparing, or matching personal data 
                obtained from multiple sources;
                    (I) processing which involves an individual's 
                precise geolocation;
                    (J) the processing of personal data of children and 
                teens under 17 or other vulnerable individuals such as 
                the elderly, people with disabilities, and other groups 
                known to be susceptible for exploitation for marketing 
                purposes, profiling, or automated processing; or
                    (K) consumer scoring or other business practices 
                that pertain to the eligibility of an individual, and 
                related terms, rights, benefits, and privileges, for 
                employment (including hiring, firing, promotion, 
                demotion, and compensation), credit, insurance, 
                housing, education, professional certification, or the 
                provision of health care and related services.
            (12) High-risk data practice impact evaluation.--The term 
        ``high-risk data practice impact evaluation'' means a study 
        conducted after deployment of a high-risk data practice that 
        includes, at a minimum--
                    (A) an evaluation of a high-risk data practice's 
                accuracy, disparate impacts on the basis of protected 
                class, and privacy harms;
                    (B) an evaluation of the effectiveness of measures 
                taken to minimize risks as outlined in any prior high-
                risk data practice risk assessments; and
                    (C) recommended measures to further minimize risks 
                to accuracy, disparate impacts on the basis of 
                protected class, and privacy harms.
            (13) High-risk data practice risk assessment.--The term 
        ``high-risk data practice risk assessment'' means a study 
        evaluating a high-risk data practice and the high-risk data 
        practice's development process, including the design and 
        training data of the high-risk data practice, if applicable, 
        for likelihood and severity of risks to accuracy, bias, 
        discrimination, and privacy harms that includes, at a minimum--
                    (A) a detailed description of the high-risk data 
                practice, including--
                            (i) its design and methodologies;
                            (ii) training data characteristics;
                            (iii) data; and
                            (iv) purpose;
                    (B) an assessment of the relative benefits and 
                costs of the high-risk data practice in light of its 
                purpose, potential unintended consequences, and taking 
                into account relevant factors, including--
                            (i) data minimization practices;
                            (ii) the duration and methods for which 
                        personal data and the results of the high-risk 
                        data practice are stored;
                            (iii) what information about the high-risk 
                        data practice is available to individuals;
                            (iv) the extent to which individuals have 
                        access to the results of the high-risk data 
                        practice and may correct or object to its 
                        results; and
                            (v) the recipients of the results of the 
                        high-risk data practice;
                    (C) an assessment of the risks of privacy harm 
                posed by the high-risk data practice and the risks that 
                the high-risk data practice may result in or contribute 
                to inaccurate, biased, or discriminatory decisions 
                impacting individuals or groups of individuals;
                    (D) the decision to accept, reject, or mitigate and 
                minimize risks and the measures a data aggregator will 
                employ including to minimize the risks described in 
                subparagraph (C), including technological and physical 
                safeguards;
                    (E) an assessment of the environmental footprint on 
                the development and use system in terms of carbon 
                emissions; and
                    (F) any potential or permitted use of the outputs 
                of the high-risk data for other decisions or purposes 
                such as advertising targeting.
            (14) Individual.--The term ``individual'' means a natural 
        person.
            (15) Person.--The term ``person'' means an individual, a 
        local, State, or Federal governmental entity, a partnership, a 
        company, a corporation, an association (incorporated or 
        unincorporated), a trust, an estate, a cooperative 
        organization, another entity, or any other organization or 
        group of such entities acting in concert.
            (16) Personal data.--The term ``personal data'' means 
        electronic data that, alone or in combination with other data--
                    (A) identifies, relates to, describes, is capable 
                of being associated with, or could reasonably be 
                linked, directly or indirectly, with a particular 
                individual, household, or device; or
                    (B) could be used to determine that an individual 
                or household is part of a protected class.
            (17) Precise geolocation.--The term ``precise geolocation'' 
        means any data that is derived from a device and that is used 
        or intended to be used to locate an individual within a 
        geographic area that is equal to or less than the area of a 
        circle with a radius of one thousand, eight hundred and fifty 
        (1,850) feet.
            (18) Privacy harm.--The term ``privacy harm'' means an 
        adverse consequence, or a potential adverse consequence, to an 
        individual, a group of individuals, or society caused, in whole 
        or in part, by the collection, processing, or sharing of 
        personal data, including--
                    (A) direct or indirect financial loss or economic 
                harm, including financial loss or economic harm arising 
                from fraudulent activities or data security breaches;
                    (B) physical harm, harassment, or a threat to an 
                individual or property;
                    (C) psychological harm, including anxiety, 
                embarrassment, fear, other trauma, stigmatization, 
                reputational harm, or the revealing or exposing of an 
                individual, or a characteristic of an individual, in an 
                unexpected way;
                    (D) an adverse outcome or decision, including 
                relating to the eligibility of an individual for the 
                rights, benefits, or privileges in credit and insurance 
                (including the denial of an application or obtaining 
                less favorable terms), housing, education, professional 
                certification, employment (including hiring, firing, 
                promotion, demotion, and compensation), or the 
                provision of health care and related services;
                    (E) discrimination, including both differential 
                treatment on the basis of a protected class and 
                disparate impact on a protected class;
                    (F) the chilling of free expression or action of an 
                individual, or society generally, due to perceived or 
                actual pervasive and excessive collection, processing, 
                or sharing of personal data;
                    (G) the use of information technology to covertly 
                influence an individual's decision-making, by targeting 
                and exploiting decision-making vulnerabilities; and
                    (H) any other adverse consequence, or potential 
                adverse consequence, prohibited by or defined by 
                Federal privacy laws; provisions of Federal civil 
                rights laws related to the processing of personal 
                information; provisions of Federal consumer protection 
                laws related to the processing of personal information; 
                the First Amendment; and other constitutional rights 
                protecting privacy.
            (19) Process.--The term ``process'' means to perform an 
        operation or set of operations on personal data, either 
        manually or by automated means, including collecting, 
        recording, organizing, structuring, storing, adapting or 
        altering, retrieving, consulting, using, disclosing by 
        transmission, sorting, classifying, disseminating or otherwise 
        making available, aligning or combining, restricting, erasing 
        or destroying.
            (20) Profile.--The term ``profile'' means the use of an 
        automated decision system to process data (including personal 
        data and other data) to derive, infer, predict or evaluate 
        information about an individual or group, such as the 
        processing of data to analyze or predict an individual's 
        identity, attributes, interests or behavior.
            (21) Protected class.--The term ``protected class'' means 
        the actual or perceived race, color, ethnicity, national 
        origin, religion, sex, gender, gender identity or expression, 
        sexual orientation, familial status, biometric information, 
        genetic information, or disability of an individual or a group 
        of individuals.
            (22) Service provider.--The term ``service provider'' means 
        a data aggregator that collects, uses, or shares personal data 
        only on behalf of another data aggregator in order to carry out 
        a permissible purpose, and only to the extent of such activity.
            (23) Share.--The term ``share'' means disseminating, making 
        available, transferring, or otherwise communicating orally, in 
        writing, or by electronic or other means, personal data.

SEC. 3. ESTABLISHMENT OF THE DATA PROTECTION AGENCY.

    (a) Agency Established.--There is established in the Executive 
branch an independent agency to be known as the ``Data Protection 
Agency'', which shall regulate high-risk data practices and the 
collection, processing, and sharing of personal data.
    (b) Director and Deputy Director.--
            (1) In general.--There is established a position of the 
        Director of the Data Protection Agency (referred to in this Act 
        as the ``Director''), who shall serve as the head of the 
        Agency.
            (2) Appointment.--Subject to paragraph (3), the Director 
        shall be appointed by the President, by and with the advice and 
        consent of the Senate.
            (3) Qualification.--The President shall nominate the 
        Director from among members of the public at large who are well 
        qualified for service at the Agency based on their knowledge 
        and expertise in--
                    (A) technology;
                    (B) protection of personal data;
                    (C) civil rights and liberties;
                    (D) law; and
                    (E) social sciences.
            (4) Compensation.--
                    (A) In general.--The Director shall be compensated 
                at the rate prescribed for level II of the Executive 
                Schedule under section 5313 of title 5, United States 
                Code.
                    (B) Conforming amendment.--Section 5313 of title 5, 
                United States Code, is amended by inserting after the 
                item relating to the Federal Transit Administrator, the 
                following new item: ``Director of the Data Protection 
                Agency.''.
            (5) Deputy director.--There is established the position of 
        Deputy Director, who shall--
                    (A) be appointed by the Director; and
                    (B) serve as the acting Director in the absence or 
                unavailability of the Director.
            (6) Acting director.--In the event of the death, 
        resignation, sickness, or absence of the Director, the 
        President shall designate the Deputy Director to serve as 
        acting Director until the return of the Director, or the 
        appointment of a successor pursuant to subsection (b).
    (c) Term.--
            (1) In general.--The Director shall serve for a term of 5 
        years.
            (2) Expiration of term.--An individual may serve as 
        Director after the expiration of the term for which appointed 
        until a successor has been appointed and qualified.
            (3) Removal.--The President may remove the Director at 
        will.
            (4) Vacancy.--A vacancy in the position of Director that 
        occurs before the expiration of the term for which a Director 
        was appointed shall be filled in the manner established under 
        paragraph (2), and the Director appointed to fill such vacancy 
        shall be appointed only for the remainder of such term.
    (d) Service Restriction.--No Director or Deputy Director may engage 
in any other employment during the period of service of such person as 
Director or Deputy Director.
    (e) Offices.--The principal office of the Agency shall be in the 
District of Columbia. The Director may establish regional offices of 
the Agency.
    (f) Applicability of Other Laws.--Except as otherwise provided 
expressly by law, all Federal laws dealing with public or Federal 
contracts, property, works, officers, employees, budgets, or funds, 
including the provisions of chapter 5 and 7 of title 5, United States 
Codes, shall apply to the exercise of the powers of the Agency.

SEC. 4. EXECUTIVE AND ADMINISTRATIVE POWERS.

    (a) Powers of the Agency.--The Director is authorized to establish 
the general powers of the Agency with respect to all executive and 
administrative functions, including--
            (1) the establishment of rules for conducting the general 
        business of the Agency, in a manner not inconsistent with this 
        Act;
            (2) to bind the Agency and enter into contracts;
            (3) directing the establishment and maintenance of 
        divisions or other offices within the Agency, in order to carry 
        out the responsibilities under this Act and Federal privacy 
        law, and to satisfy the requirements of applicable law;
            (4) to coordinate and oversee the operation of all 
        administrative, enforcement, and research activities of the 
        Agency;
            (5) to adopt and use a seal;
            (6) to determine the character of and necessity for the 
        obligations by the Agency;
            (7) the appointment and supervision of personnel employed 
        by the Agency;
            (8) the distribution of business among personnel appointed 
        and supervised by the Agency;
            (9) the use and expenditure of funds;
            (10) implementing this Act and Federal privacy laws through 
        rules, orders, guidance, interpretations, statements of policy, 
        examinations, and enforcement actions; and
            (11) performing such other functions as may be authorized 
        or required by law.
    (b) Delegation of Authority.--The Director may delegate to any duly 
authorized employee, representative, or agent any power vested in the 
Agency by law.
    (c) Office Responsibilities.--Notwithstanding subsections (a) and 
(b), section 3(a), and any other provision of law, with respect to the 
specific functional units and offices described in section 5(b), the 
Director--
            (1) shall ensure that such functional units and offices 
        perform the functions, duties, and coordination assigned to 
        them under the applicable provision of section 5; and
            (2) may not reorganize or rename such units or offices in a 
        manner not provided for under the applicable provisions of 
        section 5.
    (d) Autonomy of Agency.--No officer or agency of the United States 
shall have any authority to require the Director or any other officer 
of the Agency to submit legislative recommendations, or testimony or 
comments on legislation, to any officer or agency of the United States 
for approval, comments, or review prior to the submission of such 
recommendations, testimony, or comments to the Congress, if such 
recommendations, testimony, or comments to the Congress include a 
statement indicating that the views expressed therein are those of the 
Director or such officer, and do not necessarily reflect the views of 
the President.

SEC. 5. ADMINISTRATION.

    (a) Personnel.--
            (1) Appointment.--
                    (A) In general.--The Director may fix the number 
                of, and appoint and direct, all employees of the 
                Agency, in accordance with the applicable provisions of 
                title 5, United States Code.
                    (B) Employees of the agency.--The Director may 
                employ attorneys, compliance examiners, compliance 
                supervision analysts, economists, technologists, data 
                scientists, designers, ethicists, privacy experts, 
                statisticians, and other employees as may be deemed 
                necessary to conduct the business of the Agency. Unless 
                otherwise provided expressly by law, any individual 
                appointed under this section shall be an employee, as 
                defined in section 2105 of title 5, United States Code, 
                and subject to the provisions of such title and other 
                laws generally applicable to the employees of an 
                Executive agency.
                    (C) Waiver authority.--
                            (i) In general.--In making any appointment 
                        under subparagraph (A), the Director may waive 
                        the requirements of chapter 33 of title 5, 
                        United States Code, and the regulations 
                        implementing such chapter, to the extent 
                        necessary to appoint employees on terms and 
                        conditions that are consistent with those set 
                        forth in section 11(1) of the Federal Reserve 
                        Act (12 U.S.C. 248(1)), while providing for--
                                    (I) fair, credible, and transparent 
                                methods of establishing qualification 
                                requirements for, recruitment for, and 
                                appointments to positions;
                                    (II) fair and open competition and 
                                equitable treatment in the 
                                consideration and selection of 
                                individuals to positions; and
                                    (III) fair, credible, and 
                                transparent methods of assigning, 
                                reassigning, detailing, transferring, 
                                and promoting employees.
                            (ii) Veterans preferences.--In implementing 
                        this subparagraph, the Director shall comply 
                        with the provisions of section 2302(b)(11) of 
                        title 5, United States Code, regarding 
                        veterans' preference requirements, in a manner 
                        consistent with that in which such provisions 
                        are applied under chapter 33 of that title. The 
                        authority under this subparagraph to waive the 
                        requirements of that chapter 33 shall expire 5 
                        years after the date of enactment of this Act.
                    (D) Duty to provide adequate staffing.--The 
                Director shall ensure that the specific functional 
                units and offices established under section 5, as well 
                as other units and offices with supervisory, 
                rulemaking, and enforcement duties, are provided with 
                sufficient staff to carry out the functions, duties, 
                and coordination of those units and offices.
                    (E) Limitation on political appointees.--
                            (i) In general.--In appointing employees of 
                        the Agency who are political appointees, the 
                        Director shall ensure that the number and 
                        duties of such political appointees are as 
                        similar as possible to those of other Federal 
                        regulatory agencies.
                            (ii) Political appointees defined.--For 
                        purposes of this subparagraph, the term 
                        ``political appointee'' means an employee who 
                        holds--
                                    (I) a position which has been 
                                excepted from the competitive service 
                                by reason of its confidential, policy-
                                determining, policymaking, or policy-
                                advocating character;
                                    (II) a position in the Senior 
                                Executive Service as a noncareer 
                                appointee (as such term is defined in 
                                section 3132(a) of title 5, United 
                                States Code); or
                                    (III) a position under the 
                                Executive Schedule (subchapter II of 
                                chapter 53 of title 5, United States 
                                Code).
            (2) Compensation.--Notwithstanding any otherwise applicable 
        provision of title 5, United States Code, concerning 
        compensation, including the provisions of chapter 51 and 
        chapter 53, the following provisions shall apply with respect 
        to employees of the Agency:
                    (A) The rates of basic pay for all employees of the 
                Agency may be set and adjusted by the Director.
                    (B) The Director shall at all times provide 
                compensation (including benefits) to each class of 
                employees that, at a minimum, are comparable to the 
                compensation and benefits then being provided by the 
                Board of Governors of the Federal Reserve System or the 
                Bureau of Consumer Financial Protection for the 
                corresponding class of employees.
                    (C) All such employees shall be compensated 
                (including benefits) on terms and conditions that are 
                consistent with the terms and conditions set forth in 
                section 11(l) of the Federal Reserve Act (12 U.S.C. 
                248(l)).
            (3) Labor-management relations.--Chapter 71 of title 5, 
        United States Code, shall apply to the Agency and the employees 
        of the Agency.
    (b) Specific Functional Units.--
            (1) Office of civil rights.--The Director shall establish 
        an office whose powers and duties shall include--
                    (A) providing oversight and enforcement of this 
                Act, rules and orders promulgated under this Act, and 
                Federal privacy laws to ensure that the collection, 
                processing, and sharing of personal data is fair, 
                equitable, and non-discriminatory in treatment and 
                effect;
                    (B) developing, establishing, and promoting data 
                processing practices that affirmatively further equal 
                opportunity to and expand access to housing, 
                employment, credit, insurance, education, healthcare, 
                and other aspects of interstate commerce;
                    (C) coordinating the Agency's civil rights efforts 
                with other Federal agencies and State regulators, as 
                appropriate, to promote consistent, efficient, and 
                effective enforcement of Federal civil rights laws;
                    (D) working with civil rights advocates, privacy 
                organizations, and data aggregators on the promotion of 
                compliance with the civil rights provisions under this 
                Act, rules and orders promulgated under this Act, and 
                Federal privacy laws;
                    (E) liaising with communities and consumers 
                impacted by practices regulated by this Act and the 
                Agency, to ensure that their needs and views are 
                appropriately taken into account;
                    (F) providing annual reports to Congress on the 
                efforts of the Agency to fulfill its civil rights 
                mandate; and
                    (G) such additional powers and duties as the 
                Director may determine are appropriate.
            (2) Research.--The Director shall establish a unit whose 
        functions shall include researching, analyzing, assessing, and 
        reporting on--
                    (A) the collection and processing of personal data, 
                including automated decision systems;
                    (B) the collection and processing of personal data 
                by government agencies, including contracts between 
                government agencies and data aggregators; and
                    (C) unfair, deceptive, or discriminatory outcomes 
                that result or are likely to result from the use of 
                automated decision systems, including disparate 
                treatment or disparate impact on the basis of protected 
                class or proxies for protected class.
            (3) Collecting and tracking complaints.--
                    (A) In general.--
                            (i) Establishment of unit.--The Director 
                        shall establish a unit, the functions of which 
                        shall include identifying and facilitating the 
                        development of best practices for consumers to 
                        file a complaint, and establishing a single 
                        toll-free telephone number, a publicly 
                        available website, and a publicly available 
                        database, or utilizing an existing publicly 
                        available database, to facilitate the 
                        centralized collection of, monitoring of, and 
                        response to complaints regarding the 
                        collection, processing, and sharing of personal 
                        data.
                            (ii) Website requirements.--The Director 
                        shall ensure that--
                                    (I) the landing page of the main 
                                website of the Agency contains a clear 
                                and conspicuous hyperlink to the 
                                complaint database described in clause 
                                (i) and shall ensure that such database 
                                is user-friendly and in plain writing, 
                                as that term is defined in section 3 of 
                                the Plain Writing Act of 2010 (5 U.S.C. 
                                301 note); and
                                    (II) that all information on the 
                                website or the database that explains 
                                how a complaint with the Agency, as 
                                well as reports of the Agency with 
                                respect to information contained in 
                                that database, shall be provided in 
                                each of the 5 most commonly spoken 
                                languages, other than English, in the 
                                United States, as determined by the 
                                Bureau of the Census on an ongoing 
                                basis, and in formats accessible to 
                                individuals with hearing or vision 
                                impairments.
                    (B) Public availability of information.--
                            (i) In general.--The Director shall--
                                    (I) make all complaints available 
                                to the public on a website of the 
                                Agency;
                                    (II) place a clear and conspicuous 
                                hyperlink on the landing page of the 
                                main website of the Agency to the 
                                website described under subclause (I); 
                                and
                                    (III) ensure that such website--
                                            (aa) is searchable and 
                                        sortable by an data aggregator; 
                                        and
                                            (bb) is user-friendly and 
                                        written in plain language.
                            (ii) Removal of personal data.--In making 
                        the information described under clause (i) 
                        available to the public, the Director shall 
                        remove all personal data.
    (c) Agency Ombudsman.--
            (1) Establishment required.--The Director shall appoint an 
        ombudsman.
            (2) Duties of ombudsman.--The ombudsman appointed in 
        accordance with paragraph (1) shall--
                    (A) act as a liaison between the Agency and any 
                affected person with respect to any problem that such 
                person may have in dealing with the Agency, resulting 
                from the regulatory activities of the Agency; and
                    (B) assure that safeguards exist to encourage 
                complainants to come forward and preserve 
                confidentiality.

SEC. 6. COORDINATION.

    The Agency shall coordinate with the Consumer Financial Protection 
Bureau, the Federal Communications Commission, the Federal Trade 
Commission, the Department of Commerce, the Department of Health and 
Human Services, the Department of Housing and Urban Development, the 
Department of Education, the Equal Employment Opportunity Commission, 
the National Security Agency, the National Institute of Standards and 
Technology, the White House Office of Science and Technology Policy, 
the Cybersecurity and Infrastructure Security Agency, and other Federal 
agencies and State regulators, as appropriate, to promote consistent 
regulatory treatment of personal data.

SEC. 7. APPEARANCES BEFORE AND REPORTS TO CONGRESS.

    (a) Appearances Before Congress.--The Director of the Agency shall 
appear before Congress at semi-annual hearings regarding the reports 
required under subsection (b).
    (b) Reports Required.--The Agency shall, concurrent with each semi-
annual hearing referred to in subsection (a), prepare and submit to the 
President and Congress, a report, beginning with the session following 
the designated transfer date, and shall publish such report on the 
website of the Agency.
    (c) Contents.--The reports required by subsection (b) shall 
include--
            (1) a discussion of the significant problems faced by 
        persons in exercising their rights under this Act and Federal 
        privacy laws;
            (2) a justification of the budget request of the previous 
        year;
            (3) a list of the significant rules and orders adopted by 
        the Agency, as well as other significant initiatives conducted 
        by the Agency, during the preceding year and the plan of the 
        Agency for rules, orders, or other initiatives to be undertaken 
        during the upcoming period;
            (4) an analysis of complaints about practices relating to 
        the collection, processing, or sharing of personal data that 
        the Agency has received and collected in its central database 
        on complaints during the preceding year;
            (5) a list, with a brief statement of the issues, of the 
        public supervisory and enforcement actions to which the Agency 
        was a party during the preceding year;
            (6) the actions taken regarding rules, orders, and 
        supervisory actions with respect to data aggregators;
            (7) an assessment of significant actions by State attorneys 
        general or State regulators relating to this Act or other 
        Federal privacy laws;
            (8) an analysis of the efforts of the Agency to fulfill the 
        civil rights mandate of the Agency; and
            (9) an analysis of the efforts of the Agency to increase 
        workforce and contracting diversity.

SEC. 8. FUNDING; PENALTIES AND FINES.

    (a) Funding.--
            (1) Assessments, fees, charges.--
                    (A) General authority.--The Director may collect an 
                assessment, fee, or other charge from a data aggregator 
                that has annual gross revenues that exceed $25,000,000 
                or annually collects, uses, or shares, alone or in 
                combination, the personal data of 50,000 or more 
                individuals, households, or devices.
                    (B) Determination of amount.--In establishing the 
                amount of any assessment, fee, or charge collected from 
                a data aggregator under this section, the Director may 
                take into account any factor that the Director 
                determines is appropriate.
            (2) Authority of director.--The Director shall have sole 
        authority to determine the manner in which the obligations of 
        the Agency shall be incurred and its disbursements and expenses 
        allowed and paid, in accordance with this section, except as 
        provided in chapter 71 of title 5, United States Code (with 
        respect to compensation).
    (b) Data Protection Agency Fund.--
            (1) Separate fund in federal reserve established.--There is 
        established in the Federal Reserve a separate fund, to be known 
        as the ``Data Protection Agency Fund'' (referred to in this 
        section as the ``Agency Fund''). The Agency Fund shall be 
        maintained and established at a Federal reserve bank, in 
        accordance with such requirements as the Board of Governors may 
        impose.
            (2) Fund receipts.--All amounts transferred to the Agency 
        under subsection (a) shall be deposited into the Agency Fund.
            (3) Investment authority.--
                    (A) Amounts in agency fund may be invested.--The 
                Agency may request the Board of Governors to direct the 
                investment of the portion of the Agency Fund that is 
                not, in the judgment of the Agency, required to meet 
                the current needs of the Agency.
                    (B) Eligible investments.--Investments authorized 
                by this paragraph shall be made in obligations of the 
                United States or obligations that are guaranteed as to 
                principal and interest by the United States, with 
                maturities suitable to the needs of the Agency Fund, as 
                determined by the Agency.
                    (C) Interest and proceeds credited.--The interest 
                on, and the proceeds from the sale or redemption of, 
                any obligations held in the Agency Fund shall be 
                credited to the Agency Fund.
    (c) Use of Funds.--
            (1) In general.--Funds obtained by, transferred to, or 
        credited to the Agency Fund shall be immediately available to 
        the Agency and under the control of the Director, and shall 
        remain available until expended, to pay the expenses of the 
        Agency in carrying out its duties and responsibilities. The 
        compensation of the Director and other employees of the Agency 
        and all other expenses thereof may be paid from, obtained by, 
        transferred to, or credited to the Agency Fund under this 
        section.
            (2) Funds that are not government funds.--Funds obtained by 
        or transferred to the Agency Fund shall not be construed to be 
        Government funds or appropriated monies.
            (3) Amounts not subject to apportionment.--Notwithstanding 
        any other provision of law, amounts in the Agency Fund and in 
        the Civil Penalty Fund established under subsection (d) shall 
        not be subject to apportionment for purposes of chapter 15 of 
        title 31, United States Code, or under any other authority.
    (d) Penalties and Fines.--
            (1) Establishment of victims relief fund .--There is 
        established in the Federal Reserve a separate fund, to be known 
        as the ``Data Protection Civil Penalty Fund'' (referred to in 
        this section as the ``Civil Penalty Fund''). The Civil Penalty 
        Fund shall be maintained and established at a Federal reserve 
        bank, in accordance with such requirements as the Board of 
        Governors may impose. If the Agency obtains a civil penalty 
        against any person in any judicial or administrative action 
        under Federal laws, the Agency shall deposit into the Civil 
        Penalty Fund, the amount of the penalty collected.
            (2) Payment to victims.--Amounts in the Civil Penalty Fund 
        shall be available to the Agency, without fiscal year 
        limitation, for payments to the victims of activities for which 
        civil penalties have been imposed under this Act and for other 
        violations of other Federal privacy laws. If individual victims 
        can be identified through reasonable effort, and the 
        distributions are sufficiently large to make individual 
        distributions economically viable, penalties should be 
        distributed directly to individual victims. To the extent that 
        individuals cannot be located or such redress, payments or 
        compensation, or other monetary relief are otherwise not 
        practicable or economically viable, the Agency may--
                    (A) use such funds for the purpose of consumer or 
                business education relating to data protection or for 
                the purpose of engaging in technological research that 
                the Agency considers necessary to enforce this Act and 
                Federal privacy laws; and
                    (B) utilize a cy-pres approach to distribute funds 
                in order to advance data protection and privacy in the 
                United States. The Agency may identify recipients, 
                including charitable and civil society organizations, 
                whose interests reasonable approximate those of the 
                victims of the activities for which civil penalties 
                have been imposed and distribute funds from the Civil 
                Penalty Fund to those recipients.

SEC. 9. PURPOSE, OBJECTIVES, AND FUNCTIONS.

    (a) Purpose.--The Agency shall seek to protect individuals' 
privacy, prevent and remediate privacy harms, prevent, remediate, and 
reduce discrimination on the basis of protected class through the 
processing of personal information, including both differential 
treatment on the basis of a protected class and disparate impact on a 
protected class, and limit the collection, processing, and sharing of 
personal data; and is authorized to exercise its authorities under this 
Act for such purposes.
    (b) Objectives.--The Agency is authorized to exercise its 
authorities under this Act to--
            (1) protect individuals from violations of this Act, other 
        Federal privacy laws, or rules and orders issued under this 
        Act;
            (2) promote and affirmatively further equal opportunity in 
        all aspects of economic life as it relates to the fair and non-
        discriminatory processing of personal information;
            (3) oversee the use of high-risk data practices;
            (4) promote the minimization of collection of personal data 
        for commercial purposes;
            (5) prevent and remediate privacy harms; and
            (6) ensure that Federal privacy law is enforced 
        consistently and in order to protect individuals' privacy.
    (c) Functions.--The primary functions of the Agency are--
            (1) providing leadership and coordination to the efforts of 
        all Federal departments and agencies to enforce all Federal 
        statutes, Executive orders, regulations and policies which 
        involve privacy or data protection;
            (2) maximizing effort, promoting efficiency, and 
        eliminating conflict, competition, duplication, and 
        inconsistency among the operations, functions, and 
        jurisdictions of Federal departments and agencies responsible 
        for privacy or data protection, and data protection rights and 
        standards;
            (3) providing active leadership, guidance, education, and 
        appropriate assistance to private sector businesses, 
        organizations, groups, institutions, and individuals regarding 
        privacy and data protection rights and standards;
            (4) requiring and overseeing ex-ante high-risk data 
        practice risk assessments and ex-post high-risk data practice 
        impact evaluations to advance fair and just data practices, 
        including making the assessments available to the public as 
        practical under the law;
            (5) protecting individuals and groups of individuals from 
        privacy harms;
            (6) examining the social, ethical, economic, and civil 
        rights impacts of data collection and processing practices and 
        proposing remedies;
            (7) protecting civil rights, combating unlawful 
        discrimination, and affirmatively furthering equal opportunity 
        as they relate to the processing of personal information;
            (8) ensuring that high-risk data privacy practices are 
        fair, just, non-deceptive, and do not discriminate against a 
        protected class;
            (9) collecting, researching, and responding to complaints;
            (10) developing model privacy and data protection 
        standards, guidelines, and policies for use by the private 
        sector; and
            (11) enforcing other privacy statutes and rules as 
        authorized by Congress.

SEC. 10. RULEMAKING AUTHORITY.

    (a) In General.--The Agency is authorized to exercise its 
authorities under this Act to administer, enforce, and otherwise 
implement the provisions of this Act and Federal privacy law.
    (b) Rulemaking, Orders, and Guidance.--
            (1) General authority.--The Director may prescribe rules 
        and issue orders and guidance, as may be necessary or 
        appropriate to enable the Agency to administer and carry out 
        the purposes and objectives of this Act and other Federal 
        privacy laws, and to prevent evasions of this Act and other 
        Federal privacy laws.
            (2) Regulations.--The Agency shall issue such regulations, 
        after notice and comment in accordance with section 553 of 
        title 5, United States Code, as may be necessary to carry out 
        this Act. The Agency shall prescribe rules applicable to a data 
        aggregator or service provider identifying--
                    (A) high-risk data practices in connection with the 
                collection, processing, or sharing of personal data, 
                which may include requirements for the purpose of 
                auditing, preventing, or restricting such acts or 
                practices;
                    (B) acts or practices in connection with the 
                collection, processing, or sharing of personal data 
                that causes or are likely to cause privacy harm to 
                individuals or groups of individuals, which may include 
                requirements for the purpose of preventing or 
                restricting such acts or practices;
                    (C) unlawful, unfair, deceptive, abusive, or 
                discriminatory acts or practices in connection with the 
                collection, processing, or sharing of personal data, 
                which may include requirements for the purpose of 
                preventing or restricting such acts or practices, for 
                the purpose of preventing disparate impacts on the 
                basis of protected class, or for the purpose of 
                affirmatively furthering equal opportunity;
                    (D) rights that data aggregators must provide to 
                individuals, including the right to access and correct, 
                limit the processing of, and request deletion of the 
                individual's personal data; and
                    (E) obligations on data aggregators, including 
                transparency about business practices, data collection 
                limitations, processing and disclosure limitations, 
                purpose specification and legal basis for processing 
                requirements, accountability requirements, 
                confidentiality and security requirements, and data 
                accuracy requirements.
            (3) No limitation.--Rules prescribed under this section 
        shall not limit the authority of the Agency to administer, 
        enforce, and otherwise implement the provisions of this Act and 
        Federal privacy law.
            (4) Standards for rulemaking.--In prescribing a rule under 
        this Act or Federal privacy laws--
                    (A) the Agency shall consider the impact of 
                proposed rules on an individual or groups of 
                individuals;
                    (B) the Agency may provide that a rule shall only 
                apply to a subcategory of data aggregators, as defined 
                by the Agency; and
                    (C) the Agency shall consult with civil society 
                groups and members of the public.
            (5) Rule of construction.--Nothing in this paragraph may be 
        construed to require the Agency to engage in cost-benefit 
        analysis or submit a rulemaking for review to the President or 
        the Office of Management and Budget.
            (6) Standard for review.--If this Act is silent or 
        ambiguous, and the Agency has followed the procedures in 
        section 553 or 554 of title 5, United States Code, as 
        applicable, a reviewing court shall defer to the Agency's 
        reasonable or permissible interpretation of this Act.
    (c) Monitoring.--In order to support its rulemaking and other 
functions, the Agency shall monitor for risks to individuals or groups 
of individuals in the collection, processing, or sharing of personal 
data.

SEC. 11. SUPERVISION OF DATA AGGREGATORS.

    (a) In General.--A large data aggregator is a data aggregator that 
satisfies one or more of the following thresholds:
            (1) The data aggregator has annual gross revenues that 
        exceed $25,000,000.
            (2) The data aggregator annually collects, uses, or shares, 
        alone or in combination, the personal data of 50,000 or more 
        individuals, households, or devices.
    (b) Supervision.--The Agency may require reports and conduct 
examinations on a periodic basis of large data aggregators described in 
subsection (a) for purposes of--
            (1) assessing compliance with the requirements of this Act, 
        rules and orders issued by the Agency, or other Federal privacy 
        laws;
            (2) obtaining information about the activities subject to 
        such laws and the associated compliance systems or procedures 
        of such entities;
            (3) detecting and assessing associated risks to individuals 
        and groups of individuals; and
            (4) requiring and overseeing high-risk data practice risk 
        impact assessments and high-risk data practice impact 
        evaluations to advance fair and just data practices.
    (c) Publicly Accessible List.--The Agency shall maintain a publicly 
accessible list of data aggregators that collect, process, or share 
personal data of more than 10,000 persons or households, and the 
permissible purposes for which the data aggregators purport to collect 
personal data.
    (d) Merger Review.--The Agency shall conduct a review and submit to 
the Federal Trade Commission and Department of Justice a report on the 
privacy and data protection implications of--
            (1) any merger involving a data aggregator described in 
        subsection (a); or
            (2) any merger that proposes the transfer of personal data 
        of 50,000 or more individuals.

SEC. 12. PROHIBITED ACTS.

    It shall be unlawful for--
            (1) any data aggregator or service provider to commit any 
        act or omission in violation of this Act, Federal privacy law, 
        or any rule or order issued by the Agency under this Act;
            (2) any data aggregator or service provider to commit any 
        unlawful, unfair, deceptive, abusive, or discriminatory acts or 
        practices in connection with the collection, processing, or 
        sharing of personal data;
            (3) any data aggregator or service provider to fail or 
        refuse as required by this Act or Federal privacy law, or any 
        rule or order issued by the Agency thereunder--
                    (A) to permit access to or copying of records;
                    (B) to establish or maintain records; or
                    (C) to make reports or provide information to the 
                Agency;
            (4) any person to knowingly or recklessly provide 
        substantial assistance to a data aggregator or service provider 
        in violation of this Act or Federal privacy law, or any rule or 
        order issued thereunder, and notwithstanding any provision of 
        this Act, the provider of such substantial assistance shall be 
        deemed to be in violation of this Act or Federal privacy law to 
        the same extent as the person to whom substantial assistance is 
        provided; or
            (5) any person, data aggregator, or service provider to re-
        identify, or attempt to re-identify, an individual, household, 
        or device from anonymized data, unless such person, data 
        aggregator, or service provider is conducting authorized 
        testing to prove personal data has been anonymized.

SEC. 13. ENFORCEMENT POWERS.

    (a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Agency investigation.--The term ``Agency 
        investigation'' means any inquiry conducted by an Agency 
        investigator for the purpose of ascertaining whether any person 
        is or has been engaged in any conduct that is a violation, as 
        defined in this section.
            (2) Agency investigator.--The term ``Agency investigator'' 
        means any attorney or investigator employed by the Agency who 
        is charged with the duty of enforcing or carrying into effect 
        this Act any other Federal privacy law.
            (3) Custodian.--The term ``custodian'' means the custodian 
        or any deputy custodian designated by the Agency.
            (4) Documentary material.--The term ``documentary 
        material'' includes the original or any copy of any book, 
        document, record, report, memorandum, paper, communication, 
        tabulation, chart, logs, electronic files, or other data or 
        data compilations stored in any medium.
            (5) Violation.--The term ``violation'' means any act or 
        omission that, if proved, would constitute a violation of any 
        provision of this Act or any other Federal privacy law.
    (b) Investigations and Administrative Discovery.--
            (1) Joint investigations.--
                    (A) In general.--The Agency or, where appropriate, 
                an Agency investigator, may engage in joint 
                investigations and requests for information, as 
                authorized under this Act.
                    (B) Civil rights.--The authority under subparagraph 
                (A) includes matters relating to protection of 
                individuals' civil rights under this Act and joint 
                investigations with, and requests for information from, 
                the Director of the Bureau of Consumer Financial 
                Protection, the Federal Trade Commission, the Secretary 
                of Housing and Urban Development, the Department of 
                Education, the Equal Employment Opportunity Commission, 
                the Department of Health and Human Services, or the 
                Attorney General.
            (2) Subpoenas.--
                    (A) In general.--The Agency or an Agency 
                investigator may issue subpoenas for the attendance and 
                testimony of witnesses and the production of relevant 
                papers, books, documents, or other material in 
                connection with hearings under this Act.
                    (B) Failure to obey.--In the case of contumacy or 
                refusal to obey a subpoena issued pursuant to this 
                subparagraph and served upon any person, the district 
                court of the United States for any district in which 
                such person is found, resides, or transacts business, 
                upon application by the Agency or an Agency 
                investigator and after notice to such person, may issue 
                an order requiring such person to appear and give 
                testimony or to appear and produce documents or other 
                material.
                    (C) Contempt.--Any failure to obey an order of the 
                court under this subparagraph may be punished by the 
                court as a contempt thereof.
            (3) Demands.--
                    (A) In general.--Whenever the Agency has reason to 
                believe that any person may be in possession, custody, 
                or control of any documentary material or tangible 
                things, or may have any information, relevant to a 
                violation, the Agency may, before the institution of 
                any proceedings under this Act, issue in writing, and 
                cause to be served upon such person, a civil 
                investigative demand requiring such person to--
                            (i) produce such documentary material for 
                        inspection and copying or reproduction in the 
                        form or medium requested by the Agency;
                            (ii) submit such tangible things;
                            (iii) file written reports or answers to 
                        questions;
                            (iv) give oral testimony concerning 
                        documentary material, tangible things, or other 
                        information; or
                            (v) furnish any combination of such 
                        material, answers, or testimony.
                    (B) Requirements.--Each civil investigative demand 
                shall state the nature of the conduct constituting the 
                alleged violation which is under investigation and the 
                provision of law applicable to such violation.
                    (C) Production of documents.--Each civil 
                investigative demand for the production of documentary 
                material shall--
                            (i) describe each class of documentary 
                        material to be produced under the demand with 
                        such definiteness and certainty as to permit 
                        such material to be fairly identified;
                            (ii) prescribe a return date or dates which 
                        will provide a reasonable period of time within 
                        which the material so demanded may be assembled 
                        and made available for inspection and copying 
                        or reproduction; and
                            (iii) identify the custodian to whom such 
                        material shall be made available.
                    (D) Production of things.--Each civil investigative 
                demand for the submission of tangible things shall--
                            (i) describe each class of tangible things 
                        to be submitted under the demand with such 
                        definiteness and certainty as to permit such 
                        things to be fairly identified;
                            (ii) prescribe a return date or dates which 
                        will provide a reasonable period of time within 
                        which the things so demanded may be assembled 
                        and submitted; and
                            (iii) identify the custodian to whom such 
                        things shall be submitted.
                    (E) Demand for written reports or answers.--Each 
                civil investigative demand for written reports or 
                answers to questions shall--
                            (i) propound with definiteness and 
                        certainty the reports to be produced or the 
                        questions to be answered;
                            (ii) prescribe a date or dates at which 
                        time written reports or answers to questions 
                        shall be submitted; and
                            (iii) identify the custodian to whom such 
                        reports or answers shall be submitted.
                    (F) Oral testimony.--Each civil investigative 
                demand for the giving of oral testimony shall--
                            (i) prescribe a date, time, and place at 
                        which oral testimony shall be commenced; and
                            (ii) identify an Agency investigator who 
                        shall conduct the investigation and the 
                        custodian to whom the transcript of such 
                        investigation shall be submitted.
                    (G) Service.--Any civil investigative demand 
                issued, and any enforcement petition filed, under this 
                paragraph may be served--
                            (i) by any Agency investigator at any place 
                        within the territorial jurisdiction of any 
                        court of the United States; and
                            (ii) upon any person who is not found 
                        within the territorial jurisdiction of any 
                        court of the United States--
                                    (I) in such manner as the Federal 
                                Rules of Civil Procedure prescribe for 
                                service in a foreign nation; and
                                    (II) to the extent that the courts 
                                of the United States have authority to 
                                assert jurisdiction over such person, 
                                consistent with due process, the United 
                                States District Court for the District 
                                of Columbia shall have the same 
                                jurisdiction to take any action 
                                respecting compliance with this section 
                                by such person that such district court 
                                would have if such person were 
                                personally within the jurisdiction of 
                                such district court.
                    (H) Method of service.--Service of any civil 
                investigative demand or any enforcement petition filed 
                under this paragraph may be made upon a person, 
                including any legal entity, by--
                            (i) delivering a duly executed copy of such 
                        demand or petition to the individual or to any 
                        partner, executive officer, managing agent, or 
                        general agent of such person, or to any agent 
                        of such person authorized by appointment or by 
                        law to receive service of process on behalf of 
                        such person;
                            (ii) delivering a duly executed copy of 
                        such demand or petition to the principal office 
                        or place of business of the person to be 
                        served; or
                            (iii) depositing a duly executed copy in 
                        the United States mails, by registered or 
                        certified mail, return receipt requested, duly 
                        addressed to such person at the principal 
                        office or place of business of such person.
                    (I) Proof of service.--
                            (i) In general.--A verified return by the 
                        individual serving any civil investigative 
                        demand or any enforcement petition filed under 
                        this paragraph setting forth the manner of such 
                        service shall be proof of such service.
                            (ii) Return receipts.--In the case of 
                        service by registered or certified mail, such 
                        return shall be accompanied by the return post 
                        office receipt of delivery of such demand or 
                        enforcement petition.
                    (J) Production of documentary material.--The 
                production of documentary material in response to a 
                civil investigative demand shall be made under a sworn 
                certificate, in such form as the demand designates, by 
                the person, if a natural person, to whom the demand is 
                directed or, if not a natural person, by any person 
                having knowledge of the facts and circumstances 
                relating to such production, to the effect that all of 
                the documentary material required by the demand and in 
                the possession, custody, or control of the person to 
                whom the demand is directed has been produced and made 
                available to the custodian.
                    (K) Submission of tangible things.--The submission 
                of tangible things in response to a civil investigative 
                demand shall be made under a sworn certificate, in such 
                form as the demand designates, by the person to whom 
                the demand is directed or, if not a natural person, by 
                any person having knowledge of the facts and 
                circumstances relating to such production, to the 
                effect that all of the tangible things required by the 
                demand and in the possession, custody, or control of 
                the person to whom the demand is directed have been 
                submitted to the custodian.
                    (L) Separate answers.--Each reporting requirement 
                or question in a civil investigative demand shall be 
                answered separately and fully in writing under oath, 
                unless it is objected to, in which event the reasons 
                for the objection shall be stated in lieu of an answer, 
                and it shall be submitted under a sworn certificate, in 
                such form as the demand designates, by the person, if a 
                natural person, to whom the demand is directed or, if 
                not a natural person, by any person responsible for 
                answering each reporting requirement or question, to 
                the effect that all information required by the demand 
                and in the possession, custody, control, or knowledge 
                of the person to whom the demand is directed has been 
                submitted.
                    (M) Testimony.--
                            (i) In general.--
                                    (I) Oath and recordation.--The 
                                examination of any person pursuant to a 
                                demand for oral testimony served under 
                                this paragraph shall be taken before an 
                                officer authorized to administer oaths 
                                and affirmations by the laws of the 
                                United States or of the place at which 
                                the examination is held. The officer 
                                before whom oral testimony is to be 
                                taken shall put the witness on oath or 
                                affirmation and shall personally, or by 
                                any individual acting under the 
                                direction of and in the presence of the 
                                officer, record the testimony of the 
                                witness.
                                    (II) Transcription.--The testimony 
                                shall be taken stenographically and 
                                transcribed.
                                    (III) Transmission to custodian.--
                                After the testimony is fully 
                                transcribed, the officer investigator 
                                before whom the testimony is taken 
                                shall promptly transmit a copy of the 
                                transcript of the testimony to the 
                                custodian.
                            (ii) Parties present.--Any Agency 
                        investigator before whom oral testimony is to 
                        be taken shall exclude from the place where the 
                        testimony is to be taken all other persons, 
                        except the person giving the testimony, the 
                        attorney for that person, the officer before 
                        whom the testimony is to be taken, an 
                        investigator or representative of an agency 
                        with which the Agency is engaged in a joint 
                        investigation, and any stenographer taking such 
                        testimony.
                            (iii) Location.--The oral testimony of any 
                        person taken pursuant to a civil investigative 
                        demand shall be taken in the judicial district 
                        of the United States in which such person 
                        resides, is found, or transacts business, or in 
                        such other place as may be agreed upon by the 
                        Agency investigator before whom the oral 
                        testimony of such person is to be taken and 
                        such person.
                            (iv) Attorney representation.--
                                    (I) In general.--Any person 
                                compelled to appear under a civil 
                                investigative demand for oral testimony 
                                pursuant to this section may be 
                                accompanied, represented, and advised 
                                by an attorney.
                                    (II) Authority.--The attorney may 
                                advise a person described in subclause 
                                (I), in confidence, either upon the 
                                request of such person or upon the 
                                initiative of the attorney, with 
                                respect to any question asked of such 
                                person.
                                    (III) Objections.--A person 
                                described in subclause (I), or the 
                                attorney for that person, may object on 
                                the record to any question, in whole or 
                                in part, and such person shall briefly 
                                state for the record the reason for the 
                                objection. An objection may properly be 
                                made, received, and entered upon the 
                                record when it is claimed that such 
                                person is entitled to refuse to answer 
                                the question on grounds of any 
                                constitutional or other legal right or 
                                privilege, including the privilege 
                                against self-incrimination, but such 
                                person shall not otherwise object to or 
                                refuse to answer any question, and such 
                                person or attorney shall not otherwise 
                                interrupt the oral examination.
                                    (IV) Refusal to answer.--If a 
                                person described in subclause (I) 
                                refuses to answer any question--
                                            (aa) the Agency may 
                                        petition the district court of 
                                        the United States pursuant to 
                                        this section for an order 
                                        compelling such person to 
                                        answer such question; and
                                            (bb) if the refusal is on 
                                        grounds of the privilege 
                                        against self-incrimination, the 
                                        testimony of such person may be 
                                        compelled in accordance with 
                                        the provisions of section 6004 
                                        of title 18, United States 
                                        Code.
                            (v) Transcripts.--For purposes of this 
                        paragraph--
                                    (I) after the testimony of any 
                                witness is fully transcribed, the 
                                Agency investigator shall afford the 
                                witness (who may be accompanied by an 
                                attorney) a reasonable opportunity to 
                                examine the transcript;
                                    (II) the transcript shall be read 
                                to or by the witness, unless such 
                                examination and reading are waived by 
                                the witness;
                                    (III) any changes in form or 
                                substance which the witness desires to 
                                make shall be entered and identified 
                                upon the transcript by the Agency 
                                investigator, with a statement of the 
                                reasons given by the witness for making 
                                such changes;
                                    (IV) the transcript shall be signed 
                                by the witness, unless the witness in 
                                writing waives the signing, is ill, 
                                cannot be found, or refuses to sign; 
                                and
                                    (V) if the transcript is not signed 
                                by the witness during the 30-day period 
                                following the date on which the witness 
                                is first afforded a reasonable 
                                opportunity to examine the transcript, 
                                the Agency investigator shall sign the 
                                transcript and state on the record the 
                                fact of the waiver, illness, absence of 
                                the witness, or the refusal to sign, 
                                together with any reasons given for the 
                                failure to sign.
                            (vi) Certification by investigator.--The 
                        Agency investigator shall certify on the 
                        transcript that the witness was duly sworn by 
                        him or her and that the transcript is a true 
                        record of the testimony given by the witness, 
                        and the Agency investigator shall promptly 
                        deliver the transcript or send it by registered 
                        or certified mail to the custodian.
                            (vii) Copy of transcript.--The Agency 
                        investigator shall furnish a copy of the 
                        transcript (upon payment of reasonable charges 
                        for the transcript) to the witness only, except 
                        that the Agency may for good cause limit such 
                        witness to inspection of the official 
                        transcript of his testimony.
                            (viii) Witness fees.--Any witness appearing 
                        for the taking of oral testimony pursuant to a 
                        civil investigative demand shall be entitled to 
                        the same fees and mileage which are paid to 
                        witnesses in the district courts of the United 
                        States.
            (4) Confidential treatment of demand material.--
                    (A) In general.--Documentary materials and tangible 
                things received as a result of a civil investigative 
                demand shall be subject to requirements and procedures 
                regarding confidentiality, in accordance with rules 
                established by the Agency.
                    (B) Disclosure to congress.--No rule established by 
                the Agency regarding the confidentiality of materials 
                submitted to, or otherwise obtained by, the Agency 
                shall be intended to prevent disclosure to either House 
                of Congress or to an appropriate committee of the 
                Congress, except that the Agency is permitted to adopt 
                rules allowing prior notice to any party that owns or 
                otherwise provided the material to the Agency and had 
                designated such material as confidential.
            (5) Petition for enforcement.--
                    (A) In general.--Whenever any person fails to 
                comply with any civil investigative demand duly served 
                upon such person under this section, or whenever 
                satisfactory copying or reproduction of material 
                requested pursuant to the demand cannot be accomplished 
                and such person refuses to surrender such material, the 
                Agency, through such officers or attorneys as it may 
                designate, may file, in the district court of the 
                United States for any judicial district in which such 
                person resides, is found, or transacts business, and 
                serve upon such person, a petition for an order of such 
                court for the enforcement of this paragraph.
                    (B) Service of process.--All process of any court 
                to which application may be made as provided in this 
                subparagraph may be served in any judicial district.
            (6) Petition for order modifying or setting aside demand.--
                    (A) In general.--Not later than 20 days after the 
                service of any civil investigative demand upon any 
                person under subparagraph (B), or at any time before 
                the return date specified in the demand, whichever 
                period is shorter, or within such period exceeding 20 
                days after service or in excess of such return date as 
                may be prescribed in writing, subsequent to service, by 
                any Agency investigator named in the demand, such 
                person may file with the Agency a petition for an order 
                by the Agency modifying or setting aside the demand.
                    (B) Compliance during pendency.--The time permitted 
                for compliance with the demand in whole or in part, as 
                determined proper and ordered by the Agency, shall not 
                run during the pendency of a petition under clause (i) 
                at the Agency, except that such person shall comply 
                with any portions of the demand not sought to be 
                modified or set aside.
                    (C) Specific grounds.--A petition under 
                subparagraph (A) shall specify each ground upon which 
                the petitioner relies in seeking relief, and may be 
                based upon any failure of the demand to comply with the 
                provisions of this section, or upon any constitutional 
                or other legal right or privilege of such person.
            (7) Custodial control.--At any time during which any 
        custodian is in custody or control of any documentary material, 
        tangible things, reports, answers to questions, or transcripts 
        of oral testimony given by any person in compliance with any 
        civil investigative demand, such person may file, in the 
        district court of the United States for the judicial district 
        within which the office of such custodian is situated, and 
        serve upon such custodian, a petition for an order of such 
        court requiring the performance by such custodian of any duty 
        imposed upon him by this section or rule promulgated by the 
        Agency.
            (8) Jurisdiction of court.--
                    (A) In general.--Whenever any petition is filed in 
                any district court of the United States under this 
                paragraph, such court shall have jurisdiction to hear 
                and determine the matter so presented, and to enter 
                such order or orders as may be required to carry out 
                the provisions of this section.
                    (B) Appeal.--Any final order entered as described 
                in subparagraph (A) shall be subject to appeal pursuant 
                to section 1291 of title 28, United States Code.
    (c) Hearings and Adjudicatory Proceedings.--
            (1) In general.--The Agency is authorized to conduct 
        hearings and adjudication proceedings with respect to any 
        person in the manner prescribed by chapter 5 of title 5, United 
        States Code in order to ensure or enforce compliance with--
                    (A) the provisions of this Act and other Federal 
                privacy laws, including any rules prescribed by the 
                Agency under this Act and other Federal privacy laws; 
                and
                    (B) any other Federal privacy law that the Agency 
                is authorized to enforce, and any rules or order 
                prescribed thereunder, unless such Federal privacy law 
                specifically limits the Agency from conducting a 
                hearing or adjudication proceeding and only to the 
                extent of such limitation.
            (2) Special rules for cease-and-desist proceedings.--
                    (A) Orders authorized.--
                            (i) In general.--If, in the opinion of the 
                        Agency, any data aggregator is engaging or has 
                        engaged in an activity that violates a law, 
                        rule, or any condition imposed in writing on 
                        the person by the Agency, the Agency may issue 
                        and serve upon the data aggregator or service 
                        provider a notice of charges in respect 
                        thereof.
                            (ii) Content of notice.--The notice under 
                        clause (i) shall contain a statement of the 
                        facts constituting the alleged violation or 
                        violations, and shall fix a time and place at 
                        which a hearing will be held to determine 
                        whether an order to cease and desist should 
                        issue against the data aggregator or service 
                        provider, such hearing to be held not earlier 
                        than 30 days nor later than 60 days after the 
                        date of service of such notice, unless an 
                        earlier or a later date is set by the Agency, 
                        at the request of any party so served.
                            (iii) Consent.--Unless the party or parties 
                        served under clause (ii) appear at the hearing 
                        personally or by a duly authorized 
                        representative, such person shall be deemed to 
                        have consented to the issuance of the cease-
                        and-desist order.
                            (iv) Procedure.--In the event of consent 
                        under clause (ii), or if, upon the record made 
                        at any such hearing, the Agency finds that any 
                        violation specified in the notice of charges 
                        has been established, the Agency may issue and 
                        serve upon the data aggregator or service 
                        provider an order to cease and desist from the 
                        violation or practice. Such order may, by 
                        provisions which may be mandatory or otherwise, 
                        require the data aggregator or service provider 
                        to cease and desist from the subject activity, 
                        and to take affirmative action to correct the 
                        conditions resulting from any such violation.
                    (B) Effectiveness of order.--A cease-and-desist 
                order shall become effective at the expiration of 30 
                days after the date of service of an order under 
                subparagraph (A) upon the data aggregator or service 
                provider concerned (except in the case of a cease-and-
                desist order issued upon consent, which shall become 
                effective at the time specified therein), and shall 
                remain effective and enforceable as provided therein, 
                except to such extent as the order is stayed, modified, 
                terminated, or set aside by action of the Agency or a 
                reviewing court.
                    (C) Decision and appeal.--Any hearing provided for 
                in this subsection shall be held in the Federal 
                judicial district or in the territory in which the 
                residence or principal office or place of business of 
                the person is located unless the person consents to 
                another place, and shall be conducted in accordance 
                with the provisions of chapter 5 of title 5 of the 
                United States Code. After such hearing, and within 90 
                days after the Agency has notified the parties that the 
                case has been submitted to the Agency for final 
                decision, the Agency shall render its decision (which 
                shall include findings of fact upon which its decision 
                is predicated) and shall issue and serve upon each 
                party to the proceeding an order or orders consistent 
                with the provisions of this section. Judicial review of 
                any such order shall be exclusively as provided in this 
                subsection. Unless a petition for review is timely 
                filed in a court of appeals of the United States, as 
                provided in subparagraph (D), and thereafter until the 
                record in the proceeding has been filed as provided in 
                subparagraph (D), the Agency may at any time, upon such 
                notice and in such manner as the Agency shall determine 
                proper, modify, terminate, or set aside any such order. 
                Upon filing of the record as provided, the Agency may 
                modify, terminate, or set aside any such order with 
                permission of the court.
                    (D) Appeal to court of appeals.--Any party to any 
                proceeding under this subsection may obtain a review of 
                any order served pursuant to this subparagraph (other 
                than an order issued with the consent of the person 
                concerned) by the filing in the court of appeals of the 
                United States for the circuit in which the principal 
                office of the covered person is located, or in the 
                United States Court of Appeals for the District of 
                Columbia Circuit, within 30 days after the date of 
                service of such order, a written petition praying that 
                the order of the Agency be modified, terminated, or set 
                aside. A copy of such petition shall be forthwith 
                transmitted by the clerk of the court to the Agency, 
                and thereupon the Agency shall file in the court the 
                record in the proceeding, as provided in section 2112 
                of title 28 of the United States Code. Upon the filing 
                of such petition, such court shall have jurisdiction, 
                which upon the filing of the record shall except as 
                provided in the last sentence of subparagraph (C) be 
                exclusive, to affirm, modify, terminate, or set aside, 
                in whole or in part, the order of the Agency. Review of 
                such proceedings shall be had as provided in chapter 7 
                of title 5 of the United States Code. The judgment and 
                decree of the court shall be final, except that the 
                same shall be subject to review by the Supreme Court of 
                the United States, upon certiorari, as provided in 
                section 1254 of title 28 of the United States Code.
                    (E) No stay.--The commencement of proceedings for 
                judicial review under clause (iv) shall not, unless 
                specifically ordered by the court, operate as a stay of 
                any order issued by the Agency.
            (3) Special rules for temporary cease-and-desist 
        proceedings.--
                    (A) In general.--Whenever the Agency determines 
                that the violation specified in the notice of charges 
                served upon a data aggregator, including a service 
                provider, pursuant to paragraph (2), or the 
                continuation thereof, is likely to cause the person to 
                be insolvent or otherwise prejudice the interests of 
                individuals before the completion of the proceedings 
                conducted pursuant to paragraph (2), the Agency may 
                issue a temporary order requiring the data aggregator 
                or service provider to cease and desist from any such 
                violation or practice and to take affirmative action to 
                prevent or remedy such insolvency or other condition 
                pending completion of such proceedings. Such order may 
                include any requirement authorized under this Act. Such 
                order shall become effective upon service upon the data 
                aggregator or servicer provider and, unless set aside, 
                limited, or suspended by a court in proceedings 
                authorized by clause (ii), shall remain effective and 
                enforceable pending the completion of the 
                administrative proceedings pursuant to such notice and 
                until such time as the Agency shall dismiss the charges 
                specified in such notice, or if a cease-and-desist 
                order is issued against the person, until the effective 
                date of such order.
                    (B) Appeal.--Not later than 10 days after the data 
                aggregator or service provider concerned has been 
                served with a temporary cease-and-desist order, the 
                data aggregator or service provider may apply to the 
                United States district court for the judicial district 
                in which the residence or principal office or place of 
                business of such data aggregator or servicer provider 
                is located, or the United States District Court for the 
                District of Columbia, for an injunction setting aside, 
                limiting, or suspending the enforcement, operation, or 
                effectiveness of such order pending the completion of 
                the administrative proceedings pursuant to the notice 
                of charges served upon the data aggregator or servicer 
                provider under subparagraph (B), and such court shall 
                have jurisdiction to issue such injunction.
                    (C) Incomplete or inaccurate records.--
                            (i) Temporary order.--If a notice of 
                        charges served under paragraph (2) specifies, 
                        on the basis of particular facts and 
                        circumstances, that the books and records of a 
                        data aggregator or service provider are so 
                        incomplete or inaccurate that the Agency is 
                        unable to determine the financial condition of 
                        that data aggregator or service provider or the 
                        details or purpose of any transaction or 
                        transactions that may have a material effect on 
                        the financial condition of that person, the 
                        Agency may issue a temporary order requiring--
                                    (I) the cessation of any activity 
                                or practice which gave rise, whether in 
                                whole or in part, to the incomplete or 
                                inaccurate state of the books or 
                                records; or
                                    (II) affirmative action to restore 
                                such books or records to a complete and 
                                accurate state, until the completion of 
                                the proceedings under paragraph (2)(A).
                            (ii) Effective period.--Any temporary order 
                        issued under clause (i)--
                                    (I) shall become effective upon 
                                service; and
                                    (II) unless set aside, limited, or 
                                suspended by a court in proceedings 
                                under subparagraph (B), shall remain in 
                                effect and enforceable until the 
                                earlier of--
                                            (aa) the completion of the 
                                        proceeding initiated under 
                                        paragraph (2) in connection 
                                        with the notice of charges; or
                                            (bb) the date the Agency 
                                        determines, by examination or 
                                        otherwise, that the books and 
                                        records of the covered person 
                                        or service provider are 
                                        accurate and reflect the 
                                        financial condition thereof.
            (4) Special rules for enforcement of orders.--
                    (A) In general.--The Agency may in its discretion 
                apply to the United States district court within the 
                jurisdiction of which the principal office or place of 
                business of the person is located, for the enforcement 
                of any effective and outstanding notice or order issued 
                under this section, and such court shall have 
                jurisdiction and power to order and require compliance 
                herewith.
                    (B) Exception.--Except as otherwise provided in 
                this subparagraph, no court shall have jurisdiction to 
                affect by injunction or otherwise the issuance or 
                enforcement of any notice or order or to review, 
                modify, suspend, terminate, or set aside any such 
                notice or order.
            (5) Rules.--The Agency shall prescribe rules establishing 
        such procedures as may be necessary to carry out this 
        paragraph.
    (d) Litigation Authority.--
            (1) In general.--If any person violates this Act, a rule or 
        order issued under this Act, or a Federal privacy law, the 
        Agency may commence a civil action against such person to 
        impose a civil penalty or to seek all appropriate legal and 
        equitable relief including a permanent or temporary injunction 
        as permitted by law.
            (2) Representation.--The Agency may act in its own name and 
        through its own attorneys in enforcing any provision of this 
        Act, rules thereunder, or any other law or regulation, or in 
        any action, suit, or proceeding to which the Agency is a party.
            (3) Compromise of actions.--The Agency may compromise or 
        settle any action if such compromise is approved by the court.
            (4) Notice to the attorney general.--
                    (A) In general.--When commencing a civil action 
                under this Act or any Federal privacy law, or any rule 
                thereunder, the Agency shall notify the Attorney 
                General.
                    (B) Notice and coordination.--
                            (i) Notice of other actions.--In addition 
                        to any notice required under subparagraph (A), 
                        the Agency shall notify the Attorney General 
                        concerning any action, suit, or proceeding to 
                        which the Agency is a party, except an action, 
                        suit, or proceeding that involves a violation 
                        of this Act or a Federal privacy law.
                            (ii) Coordination.--In order to avoid 
                        conflicts and promote consistency regarding 
                        litigation of matters under Federal law, the 
                        Attorney General and the Agency shall consult 
                        regarding the coordination of investigations 
                        and proceedings, including by negotiating an 
                        agreement for coordination by not later than 
                        180 days after the designated transfer date. 
                        The agreement under this subclause shall 
                        include provisions to ensure that parallel 
                        investigations and proceedings involving the 
                        Federal privacy laws are conducted in a manner 
                        that avoids conflicts and does not impede the 
                        ability of the Attorney General to prosecute 
                        violations of Federal criminal laws.
                            (iii) Rule of construction.--Nothing in 
                        this paragraph shall be construed to limit the 
                        authority of the Agency under this title, 
                        including the authority to interpret Federal 
                        privacy law.
            (5) Appearance before the supreme court.--The Agency may 
        represent itself in its own name before the Supreme Court of 
        the United States, if the Agency makes a written request to the 
        Attorney General within the 10-day period that begins on the 
        date of entry of the judgment that would permit any party to 
        file a petition for writ of certiorari, and the Attorney 
        General concurs with such request or fails to take action 
        within 60 days of the request of the Agency.
            (6) Forum.--Any civil action brought under a Federal 
        privacy law may be brought in a United States district court or 
        in any court of competent jurisdiction of a State in a district 
        in which the defendant is located or resides or is doing 
        business, and such court shall have jurisdiction to enjoin such 
        person and to require compliance with any Federal privacy law.
            (7) Time for bringing action.--Except as otherwise 
        permitted by law or equity, no action may be brought under this 
        Act or other Federal privacy law more than 5 years after the 
        date of discovery of the violation to which an action relates.
    (e) Relief Available.--
            (1) Administrative proceedings or court actions.--
                    (A) Jurisdiction.--The court (or the Agency, as the 
                case may be) in an action or adjudication proceeding 
                brought under this Act or a Federal privacy law, shall 
                have jurisdiction to grant any appropriate legal or 
                equitable relief with respect to a violation of this 
                Act or Federal privacy law, including a violation of a 
                rule or order prescribed under this Act or Federal 
                privacy law.
                    (B) Relief.--Relief under this section may include, 
                without limitation--
                            (i) rescission or reformation of contracts;
                            (ii) refund of moneys or return of real 
                        property;
                            (iii) restitution;
                            (iv) disgorgement of any revenue, data, or 
                        technologies, including automated decision 
                        systems, data sets, or algorithms, attributable 
                        to a violation of this Act, Federal privacy 
                        law, or any rule or order issued by the Agency 
                        under this Act;
                            (v) payment of damages or other monetary 
                        relief;
                            (vi) public notification regarding the 
                        violation, including the costs of notification;
                            (vii) limits on the activities or functions 
                        of the person; and
                            (viii) civil money penalties, as set forth 
                        more fully in paragraph (3).
                    (C) No exemplary or punitive damages.--Nothing in 
                this subparagraph shall be construed as authorizing the 
                imposition of exemplary or punitive damages in an 
                action brought by the Agency.
            (2) Recovery of costs.--In any action brought by the 
        Agency, a State attorney general, or any State regulator to 
        enforce this Act or any Federal privacy law, the Agency, the 
        State attorney general, or the State regulator may recover its 
        costs in connection with prosecuting such action if the Agency, 
        the State attorney general, or the State regulator is the 
        prevailing party in the action.
            (3) Civil money penalty in court and administrative 
        actions.--
                    (A) In general.--Any person that violates, through 
                any act or omission, any provision of this Act or any 
                Federal privacy law shall forfeit and pay a civil 
                penalty pursuant to this subparagraph.
                    (B) Penalty amounts.--
                            (i) First tier.--For any violation of a 
                        law, rule, or final order or condition imposed 
                        in writing by the Agency, a civil penalty may 
                        not exceed--
                                    (I) $5,000 for each day during 
                                which such violation or failure to pay 
                                continues; or
                                    (II) $15,000 for each day during 
                                which such violation or failure to pay 
                                continues if such violation involves 
                                the personal data of individuals under 
                                the age of 13.
                            (ii) Second tier.--Notwithstanding clause 
                        (i), for any person that recklessly engages in 
                        a violation of this Act or any Federal privacy 
                        law, a civil penalty may not exceed--
                                    (I) $25,000 for each day during 
                                which such violation or failure to pay 
                                continues; or
                                    (II) $75,000 for each day during 
                                which such violation or failure to pay 
                                continues if such violation involves 
                                the personal data of individuals under 
                                the age of 13.
                            (iii) Third tier.--Notwithstanding clauses 
                        (i) and (ii), for any person that knowingly 
                        violates this Act or any Federal privacy law, a 
                        civil penalty may not exceed--
                                    (I) $1,000,000 for each day during 
                                which such violation continues; or
                                    (II) $3,000,000 for each day during 
                                which such violation or failure to pay 
                                continues if such violation involves 
                                the personal data of individuals under 
                                the age of 13.
                    (C) Penalties for re-identifying data.--Any person 
                that re-identifies, or attempts to re-identify, 
                anonymized data shall be assessed a third tier civil 
                penalty under subparagraph (B), unless conducting 
                authorized testing to prove personal data has been 
                anonymized.
                    (D) Mitigating factors.--In determining the amount 
                of any penalty assessed under subparagraph (B), the 
                Agency or the court shall take into account the 
                appropriateness of the penalty with respect to--
                            (i) the size of financial resources and 
                        good faith of the person charged;
                            (ii) the gravity of the violation or 
                        failure to pay;
                            (iii) the severity of the risks or harms to 
                        individuals;
                            (iv) the history of previous violations; 
                        and
                            (v) such other matters as justice may 
                        require.
                    (E) Authority to modify or remit penalty.--The 
                Agency may compromise, modify, or remit any penalty 
                which may be assessed or had already been assessed 
                under subparagraph (B). The amount of such penalty, 
                when finally determined, shall be exclusive of any sums 
                owed by the person to the United States in connection 
                with the costs of the proceeding, and may be deducted 
                from any sums owed by the United States to the person 
                charged.
                    (F) Notice and hearing.--No civil penalty may be 
                assessed under this subsection with respect to a 
                violation of this Act or any Federal privacy law, 
                unless--
                            (i) the Agency gives notice and an 
                        opportunity for a hearing to the person accused 
                        of the violation; or
                            (ii) the appropriate court has ordered such 
                        assessment and entered judgment in favor of the 
                        Agency.
    (f) Referrals for Criminal Proceedings.--If the Agency obtains 
evidence that any person, domestic or foreign, has engaged in conduct 
that may constitute a violation of Federal criminal law, the Agency 
shall transmit such evidence to the Attorney General of the United 
States, who may institute criminal proceedings under appropriate law. 
Nothing in this section affects any other authority of the Agency to 
disclose information.

SEC. 14. TRANSFERS OF FUNCTIONS.

    (a) Federal Trade Commission.--The authority of the Federal Trade 
Commission under a Federal privacy law to prescribe rules, issue 
guidelines, or conduct a study or issue a report mandated under such 
law shall be transferred to the Agency on the transfer date. Nothing in 
this Act shall be construed to require a mandatory transfer of any 
employee of the Federal Trade Commission.
    (b) Agency Authority.--
            (1) In general.--The Agency shall have all powers and 
        duties under the Federal privacy laws to prescribe rules, issue 
        guidelines, or to conduct studies or issue reports mandated by 
        such laws, that were vested in the Federal Trade Commission on 
        the day before the transfer date.
            (2) Federal trade commission act.--The Agency may enforce a 
        rule prescribed under the Federal Trade Commission Act (15 
        U.S.C. 41 et seq.) by the Federal Trade Commission with respect 
        to the collection, disclosure, processing and misuse of 
        personal data.
    (c) Authority of the Federal Trade Commission.--No provision of 
this Act shall be construed as modifying, limiting, or otherwise 
affecting the authority of the Federal Trade Commission, including the 
authority with respect to large data collectors described in section 
11(a)(1) of this Act, under the Federal Trade Commission Act (15 U.S.C. 
41 et seq.), or any other law, other than the authority under a Federal 
privacy law to prescribe rules, issue official guidelines, or conduct a 
study or issue a report mandated under such law.
    (d) Authority of the Bureau of Consumer Financial Protection.--No 
provision of this Act shall be construed as modifying, limiting, or 
otherwise affecting the authority of the Bureau of Consumer Financial 
Protection under the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5301 et seq.) or any other law.

SEC. 15. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Agency such sums as 
may be necessary to carry out this Act.

SEC. 16. RELATION TO FEDERAL AND STATE LAW.

    (a) Relation to State Law.--
            (1) Rule of construction.--This Act may not be construed as 
        annulling, altering, or affecting, or exempting any person 
        subject to the provisions of this title from complying with, 
        the statutes, regulations, orders, or interpretations in effect 
        in any State, except to the extent that any such provision of 
        law is inconsistent with the provisions of this title, and then 
        only to the extent of the inconsistency.
            (2) Greater protection under state law.--For purposes of 
        this paragraph, a statute, regulation, order, or interpretation 
        in effect in any State is not inconsistent with the provisions 
        of this title if the protection that such statute, regulation, 
        order, or interpretation affords to individuals is greater than 
        the protection provided under this Act. A determination 
        regarding whether a statute, regulation, order, or 
        interpretation in effect in any State is inconsistent with the 
        provisions of this title may be made by the Agency on its own 
        motion or in response to a nonfrivolous petition initiated by 
        any interested person.
    (b) Relation to Other Provisions of Federal Privacy Laws That 
Relate to State Law.--No provision of this Act shall be construed as 
modifying, limiting, or superseding the operation of any provision of a 
Federal privacy law that relates to the application of a law in effect 
in any State with respect to such Federal law.
    (c) Preservation of Enforcement Powers of States.--The attorney 
general (or the equivalent thereof) of any State may bring a civil 
action in the name of such State in any district court of the United 
States in that State or in State court that is located in that State 
and that has jurisdiction over the defendant, to enforce provisions of 
this title or rules or orders issued under this Act, and to secure 
remedies under provisions of this title or remedies otherwise provided 
under other law. A State regulator may bring a civil action or other 
appropriate proceeding to enforce the provisions of this title or rules 
or orders issued under this Act with respect to any entity that is 
State-chartered, incorporated, licensed, or otherwise authorized to do 
business under State law (except as provided in paragraph (2)), and to 
secure remedies under provisions of this title or remedies otherwise 
provided under other provisions of law with respect to such an entity.
    (d) Preservation of State Authority.--
            (1) State claims.--No provision of this section shall be 
        construed as altering, limiting, or affecting the authority of 
        a State attorney general or any other regulatory or enforcement 
        agency or authority to bring an action or other regulatory 
        proceeding arising solely under the law in effect in that 
        State.
            (2) State consumer protection, privacy, and data 
        regulators.--No provision of this title shall be construed as 
        altering, limiting, or affecting the authority of a State 
        consumer protection, data protection, or privacy agency (or any 
        agency or office performing like functions) under State law to 
        adopt rules, initiate enforcement proceedings, or take any 
        other action with respect to a person regulated by such 
        commission or authority.

SEC. 17. INSPECTOR GENERAL.

    Section 12 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
            (1) in paragraph (1), by inserting ``the Director of the 
        Data Protection Agency;'' after ``the President of the Export-
        Import Bank;''; and
            (2) in paragraph (2), by inserting ``the Data Protection 
        Agency,'' after ``the Export-Import Bank,''.
                                 <all>