S. 2637 - Mind Your Own Business Act of 2019

116TH CONGRESS
1ST SESSION

S. 2637

To amend the Federal Trade Commission Act to establish
requirements and responsibilities for entities that use, store,
or share personal information, to protect personal information,
and for other purposes.

IN THE SENATE OF THE UNITED STATES

OCTOBER 17, 2019

Mr. WYDEN introduced the following bill; which was
read twice and referred to the Committee on Finance

A BILL

To amend the Federal Trade Commission Act to establish requirements and responsibilities for entities that use, store, or share personal information, to protect personal information, and for other purposes.

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 "Mind Your Own Business Act of 2019".

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SEC. 13. EXCISE TAX.

(a) IN GENERAL. — Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:

"CHAPTER 50A — FAILURE TO CERTIFY DATA PROTECTION REPORTS

"Sec. 5000D. Failure to certify data protection reports.

"SEC. 5000D. FAILURE TO CERTIFY DATA PROTECTION REPORTS.

"(a) IMPOSITION OF TAX. — In the case of any covered reporting entity with respect to which a responsible executive has been convicted under section 1352(d) of title 18, United States Code, there is imposed a tax equal to the amount determined under subsection (b).

"(b) AMOUNT OF TAX. —

"(1) IN GENERAL. — The amount determined under this subsection is the applicable percentage of the amount determined under paragraph (3).

"(2) APPLICABLE PERCENTAGE. — For purposes of paragraph (1), the applicable percentage is —

"(A) in the case of a covered reporting entity that is a corporation, the highest rate of tax in effect under section 11 for the taxable year which includes the date on which the specified annual data protection report to which the conviction relates is due, and

"(B) in the case of any other covered reporting entity, the highest rate of tax in effect under section 1 for such taxable year.

"(3) AMOUNT DETERMINED. —

"(A) IN GENERAL. — The amount determined under this paragraph is the sum of the covered compensation amounts of each responsible executive of the covered reporting entity who has been convicted under section 1352(d) of title 18, United States Code.

"(B) COVERED COMPENSATION AMOUNT. — For purposes of subparagraph (A), the covered compensation amount with respect to any responsible executive is the largest amount of annual wages (as defined in section 3121(a), determined without regard to any dollar limitation contained in such section) of the responsible executive with respect to services performed for the covered reporting entity during the 3-year period preceding the year to which the specified annual data protection re-port relates.

"(c) DEFINITIONS. — For purposes of this section —

"(1) COVERED REPORTING ENTITY. —

"(A) IN GENERAL. — The term 'covered reporting entity' means any covered entity (as defined under section 2 of the Mind Your Own Business Act of 2019) which is required to file a specified annual data protection report.

"(B) AGGREGATION RULES. — For purposes of this paragraph, all covered entities who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one person.

"(2) RESPONSIBLE EXECUTIVE. — For purposes of this subsection, the term 'responsible executive' means, with respect to a covered reporting entity, any of the following officers:

"(A) The chief executive officer.

"(B) The chief privacy officer (or equivalent thereof).

"(3) SPECIFIED ANNUAL DATA PROTECTION REPORT. — The term 'specified annual data protection report' means the report required to be filed under section 5(a) of the Mind Your Own Business Act of 2019.".

(b) CLERICAL AMENDMENT. — The table of chapters for subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

"CHAPTER 50A — FAILURE TO CERTIFY DATA PROTECTION REPORTS".

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