Sec. 161. Establishment of safe harbor programs
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/bill/114/s/547/is/section-161A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 1 year after the date of the enactment of this Act, the Commission shall initiate a rulemaking proceeding to establish requirements for the establishment and administration of safe harbor programs under which a nongovernmental organization will administer a program that— establishes a mechanism for participants to implement the requirements of this title with regards to— certain types of unauthorized uses of covered information as described in paragraph (2); or any unauthorized use of covered information; and offers consumers a clear, conspicuous, persistent, and effective means of opting out of the transfer of covered information by a covered entity participating in the safe harbor program to a third party for— behavioral advertising purposes; location-based advertising purposes; other specific types of unauthorized use; or any unauthorized use.
An applicant seeking to administer a program under the requirements established pursuant to subsection
(a)shall submit to the Commission an application therefor at such time, in such manner, and containing such information as the Commission may require. Upon completion of the rulemaking proceedings required by subsection (a), the Commission shall— publish a notice in the Federal Register that it will receive applications for approval of safe harbor programs under this subtitle; and begin receiving applications under paragraph (1). Not later than 270 days after the date on which the Commission receives a completed application under this subsection, the Commission shall grant or deny the application on the basis of the Commission's evaluation of the applicant’s capacity to provide protection of individuals’ covered information with regard to specific types of unauthorized uses of covered information as described in subsection (a)(2) that is substantially equivalent to or superior to the protection otherwise provided under this title. Any decision reached by the Commission under this subsection shall be accompanied by written findings setting forth the basis for and reasons supporting such decision. The scope of protection offered by safe harbor programs approved by the Commission that establish mechanisms for participants to implement the requirements of the title only for certain uses of covered information as described in subsection (a)(2) shall be limited to participating entities’ use of those particular types of covered information. The Commission shall exercise oversight and supervisory authority of a safe harbor program approved under this section through— ongoing review of the practices of the nongovernmental organization administering the program; the imposition of civil penalties on the nongovernmental organization if it is not compliant with the requirements established under subsection (a); and withdrawal of authorization to administer the safe harbor program under this subtitle. Each year, each nongovernmental organization administering a safe harbor program under this section shall submit to the Commission a report on its activities under this subtitle during the preceding year.