[Congressional Record Volume 164, Number 106 (Monday, June 25, 2018)]
[House]
[Pages H5587-H5589]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1530
PREVENTION OF PRIVATE INFORMATION DISSEMINATION ACT OF 2017
Mr. HILL. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 4294) to amend the Financial Stability Act of 2010 to provide a
criminal penalty for unauthorized disclosures of certain individually
identifiable information by officers or employees of a
[[Page H5588]]
Federal department or agency, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4294
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 ``Prevention of Private
Information Dissemination Act of 2017''.
SEC. 2. CRIMINAL PENALTY FOR UNAUTHORIZED DISCLOSURES.
Section 165 of the Financial Stability Act of 2010 (12
U.S.C. 5365) is amended by adding at the end the following:
``(l) Criminal Penalty for Unauthorized Disclosures.--
Section 552a(i)(1) of title 5, United States Code, shall
apply to a determination made under subsection (d) or (i)
based on individually identifiable information submitted
pursuant to the requirements of this section to the same
extent as such section 552a(i)(1) applies to agency records
which contain individually identifiable information the
disclosure of which is prohibited by such section 552a or by
rules or regulations established thereunder.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arkansas (Mr. Hill) and the gentleman from Minnesota (Mr. Ellison) each
will control 20 minutes.
The Chair recognizes the gentleman from Arkansas.
General Leave
Mr. HILL. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
include extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arkansas?
There was no objection.
Mr. HILL. Mr. Speaker, I include in the Record an exchange of letters
between the committees of jurisdiction.
House of Representatives,
Committee on the Judiciary,
Washington, DC, June 22, 2018.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
Washington, DC.
Dear Chairman Hensarling: I write with respect to H.R.
4294, the ``Prevention of Private Information Dissemination
Act.'' As a result of your having consulted with us on
provisions within H.R. 4294 that fall within the Rule X
jurisdiction of the Committee on the Judiciary, I forego any
further consideration of this bill so that it may proceed
expeditiously to the House floor for consideration.
The Judiciary Committee takes this action with our mutual
understanding that by foregoing consideration of H.R. 4294 at
this time, we do not waive any jurisdiction over subject
matter contained in this or similar legislation and that our
committee will be appropriately consulted and involved as
this bill or similar legislation moves forward so that we may
address any remaining issues in our jurisdiction. Our
committee also reserves the right to seek appointment of an
appropriate number of conferees to any House-Senate
conference involving this or similar legislation and asks
that you support any such request.
I would appreciate a response to this letter confirming
this understanding with respect to H.R. 4294 and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during floor
consideration of the bill.
Sincerely,
Bob Goodlatte,
Chairman.
____
House of Representatives,
Committee on Financial Services,
Washington, DC, June 25, 2018.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary,
Washington, DC.
Dear Chairman Goodlatte: Thank you for your June 22, 2018
letter regarding H.R. 4294, the ``Prevention of Private
Information Dissemination Act of 2017''.
I am most appreciative of your decision to forego action on
H.R. 4294 so that it may move expeditiously to the House
floor. I acknowledge that although you are waiving action on
the bill, the Committee on the Judiciary is in no way waiving
its jurisdictional interest in this or similar legislation.
In addition, if a conference is necessary on this
legislation, I will support any request that your committee
be represented therein.
Finally, I shall be pleased to include your letter in the
Congressional Record during floor consideration of H.R. 4294.
Sincerely,
Jeb Hensarling,
Chairman.
Mr. HILL. Mr. Speaker, I yield such time as he may consume to the
gentleman from Tennessee (Mr. Kustoff), the author of this bill.
Mr. KUSTOFF of Tennessee. Mr. Speaker, I rise today in support of my
bill, H.R. 4294, the Prevention of Private Information Dissemination
Act of 2017.
Mr. Speaker, this legislation will establish criminal penalties for
the unauthorized disclosure of living will and stress test
determinations and other individually identifiable information by
Federal officials.
With recent data breaches and leaks of sensitive information, it is
essential that we ensure that this information is safely guarded and
that people are punished for their illicit actions.
Since the enactment of Dodd-Frank in 2010, bank holding and certain
nonbank companies, designated as systemically important financial
institutions, otherwise known as SIFIs, are required to submit annual
reports to the Federal Reserve and the Federal Deposit Insurance
Company, the FDIC.
The purpose of these reports is to outline the company's strategy for
a potential bankruptcy in times of market stress. Through the living
will and the stress test process, banks submit detailed financial
reports about their businesses, such as assets, trade secrets, and
other classified information to the Federal Reserve and to the FDIC.
Unfortunately, Mr. Speaker, the information has the potential to be
leaked by employees and, unfortunately, in April of 2016, this did
occur. In fact, on April 12, 2016, it was discovered that nonpublic
confidential supervisory information related to the living will results
was leaked to the press directly.
The Wall Street Journal article from that day cited ``people familiar
with the matter'' indicated that the agencies planned to reject the
revised living wills of at least half of the U.S. banks that
resubmitted proposals before formal decisions were sent to the
institutions.
In this instance, the leak was extremely harmful, as financial
institutions were preparing their quarterly investor reports. As a
result, regulators were forced to formally release their findings the
next day. In addition, this private information has market-moving
implications and can result in insider trading and illegal sharing of
information.
Mr. Speaker, prior to Dodd-Frank, the FDIC did not have market-moving
information on high-profile industries. Stress test requirements
therefore meant that the FDIC had to create new policies and new
procedures to help protect the information. According to the FDIC's
Principal Deputy Inspector General in 2016, the agency is ``not there
yet,'' and it may not be prepared to safeguard the information.
Sadly, between 2015 and 2016, the FDIC experienced many data breaches
that involved employees leaving the company. One such incident occurred
in 2015, in which a departing employee downloaded sensitive stress test
data onto a thumb drive.
These leaks are deeply troubling and, overall, they are unacceptable.
This information could be obtained by individuals to either invest or
to divest in particular stocks, which, obviously, can be quite damaging
to bank investors and to the capital markets.
The unauthorized disclosure of information that can significantly
alter the stock market is an extremely punishable offense. By
increasing penalties on employees of these agencies, it proves,
frankly, that they are not above the law.
That is why I introduced this bill, to ensure that sensitive market
information is properly protected and that people who improperly
disclose nonpublic, confidential information are, in fact, punished.
Mr. Speaker, ultimately, this is commonsense legislation that will help
mitigate future leaks of sensitive information.
I do want to thank Chairman Hensarling and the entire Financial
Services Committee for their continued hard work.
I urge my colleagues to support this extremely important piece of
legislation.
Mr. ELLISON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the bill makes clear that the penalties apply to
officers and employees of Federal departments or agencies who willfully
disclose agency records that contain personal identifiable information
pursuant to section 165 of the Dodd-Frank Act. These acts are already
illegal, and this bill is a clarification to make sure that these
penalties apply.
This is a commonsense bipartisan bill, and I urge support.
[[Page H5589]]
Mr. Speaker, I yield back the balance of my time.
Mr. HILL. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and
pass the bill, H.R. 4294, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. HILL. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
____________________