[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5242 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5242
To amend the Right to Financial Privacy Act of 1978 to preserve the
confidentiality of certain records, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2024
Mr. Lee (for himself and Mr. Scott of Florida) introduced the following
bill; which was read twice and referred to the Committee on Homeland
Security and Governmental Affairs
_______________________________________________________________________
A BILL
To amend the Right to Financial Privacy Act of 1978 to preserve the
confidentiality of certain records, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Saving Privacy
Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--BANK PRIVACY REFORM
Sec. 101. Bank Secrecy Act reforms.
TITLE II--AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978
Sec. 201. Warrant requirements and exceptions.
TITLE III--CONSOLIDATED AUDIT TRAIL
Sec. 301. Requirements and prohibitions regarding the Consolidated
Audit Trail.
TITLE IV--NO CENTRAL BANK DIGITAL CURRENCY
Sec. 401. Central bank digital currency.
TITLE V--REGULATIONS FROM THE EXECUTIVE IN NEED OF SCRUTINY
Sec. 501. Purpose.
Sec. 502. Congressional review of certain agency rulemaking.
Sec. 503. Budgetary effects of rules subject to section 802 of title 5,
United States Code.
Sec. 504. Government Accountability Office study of rules.
TITLE VI--SUSPICIOUS ACTIVITY
Sec. 601. Criminal penalties.
Sec. 602. Civil penalties.
Sec. 603. Other relief.
TITLE I--BANK PRIVACY REFORM
SEC. 101. BANK SECRECY ACT REFORMS.
(a) Right to Financial Privacy Act of 1978.--The Right to Financial
Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is amended--
(1) by amending section 1102 (12 U.S.C. 3402) to read as
follows:
``SEC. 1102. CONFIDENTIALITY OF RECORDS--GOVERNMENT AUTHORITIES.
``Except as provided by subsection (c) or (d) of section 1103 or
section 1113, no Government authority may have access to or obtain
copies of, or the information contained in the financial records of any
customer from a financial institution unless the financial records are
reasonably described and such financial records are disclosed in
response to a search warrant which meets the requirements of section
1106.'';
(2) by striking sections 1104 (12 U.S.C. 3404), 1105 (12
U.S.C. 3405), 1107 (12 U.S.C. 3407), and 1108 (12 U.S.C. 3408);
and
(3) in section 1109(a) (12 U.S.C. 3409(a)), by striking
``section 1104(c), 1105(2), 1106(c), 1107(2), 1108(4),'' and
inserting ``section 1106(c)''.
(b) Title 31.--Chapter 53 of title 31, United States Code, is
amended--
(1) by amending section 5311 to read as follows:
``Sec. 5311. Declaration of purpose
``It is the purpose of this subchapter to require financial
institutions to retain transaction records that include information
identified with or identifiable as being derived from the financial
records of particular customers.'';
(2) in section 5312(a)--
(A) in paragraph (3)--
(i) in subparagraph (B), by adding ``and''
at the end;
(ii) by striking subparagraph (C);
(iii) by redesignating subparagraph (D) as
subparagraph (C); and
(iv) in subparagraph (C), as so
redesignated, by striking ``subparagraph (A),
(B), or (C)'' and inserting ``subparagraph (A)
or (B)''; and
(B) by amending paragraph (4) to read as follows:
``(4) `nonfinancial trade or business' means any entity
engaged in trade or business other than a financial
institution.'';
(3) by striking sections 5313, 5314, 5315, 5316, 5317,
5318A, 5324, 5326, 5331, 5332, and 5336;
(4) in section 5318--
(A) in subsection (a)--
(i) in the matter preceding paragraph (1),
by striking ``(except under section 5315 of
this title and regulations prescribed under
section 5315)'';
(ii) by striking paragraph (2); and
(iii) by redesignating paragraphs (3)
through (7) as paragraphs (2) through (6),
respectively; and
(B) in subsection (k)--
(i) in paragraph (1)(C), by striking ``has
the same meaning as in section 5318A(e)(1)(B)''
and inserting ``means an account established to
receive deposits from, make payments on behalf
of a foreign financial institution, or handle
other financial transactions related to such
institution''; and
(ii) in paragraph (3)(A)(i)--
(I) in subclause (II), by adding
``or'' at the end;
(II) in subclause (III), by
striking ``; or'' and inserting a
period; and
(III) by striking subclause (IV);
(5) in section 5321--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(except
sections 5314, 5315, and 5336 of this title or
a regulation prescribed under sections 5314,
5315, and 5336)'';
(ii) by striking paragraphs (2), (3), (4),
and (5);
(iii) in paragraph (6), by striking
``(except section 5336)'' each place that term
appears;
(iv) in paragraph (7), by striking ``or any
special measures imposed under section 5318A'';
and
(v) by redesignating paragraphs (6) and (7)
as paragraphs (2) and (3), respectively;
(B) by striking subsection (c); and
(C) by redesignating subsections (d) through (g) as
subsection (c) through (f), respectively;
(6) in section 5322--
(A) by striking ``(except section 5315, 5324, or
5336 of this title or a regulation prescribed under
section 5315, 5324, or 5336)'' each place that term
appears; and
(B) in subsection (d)--
(i) by striking ``, or any special measures
imposed under section 5318A,''; and
(ii) by striking ``or section 5318A'';
(7) in section 5325(a), in the matter preceding paragraph
(1), by inserting after ``$3,000'' the following: ``(as such
amount is annually adjusted by the Secretary to reflect the
percentage change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the
Department of Labor)'';
(8) in section 5330(d)(1)--
(A) in subparagraph (A), by adding ``and'' at the
end;
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B);
(9) in section 5335--
(A) by striking subsection (c); and
(B) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively;
(10) by striking subchapter III; and
(11) in the table of contents for chapter 53, by striking
the items relating to--
(A) sections 5313, 5314, 5315, 5316, 5317, 5318A,
5324, 5326, 5331, 5332, and 5336; and
(B) subchapter III.
TITLE II--AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978
SEC. 201. WARRANT REQUIREMENTS AND EXCEPTIONS.
The Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.)
is amended--
(1) in section 1108 (12 U.S.C. 3408)--
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively; and
(2) in section 1113 (12 U.S.C. 3413)--
(A) by repealing subsections (a), (b), (d), (e),
(f), (g), (i), (l), (m), (n), (p), (q), and (r); and
(B) by adding at the end the following:
``(s) Access of Records.--Notwithstanding any other provision of
this title, the Federal Government may not access the financial records
or information of an individual in a manner that is prohibited by the
Fourth Amendment to the Constitution of the United States with respect
to the records or information in question.''.
TITLE III--CONSOLIDATED AUDIT TRAIL
SEC. 301. REQUIREMENTS AND PROHIBITIONS REGARDING THE CONSOLIDATED
AUDIT TRAIL.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(2) Consolidated audit trail.--The term ``Consolidated
Audit Trail'' means the consolidated audit trail and central
repository created, implemented, and maintained pursuant to
section 242.613 of title 17, Code of Federal Regulations, as in
effect on the day before the date of enactment of this Act.
(3) Personally identifiable information.--The term
``personally identifiable information''--
(A) means information that can be used to
distinguish or trace the identity of an individual,
either alone or when combined with other personal or
identifying information that is linked or linkable to a
specific individual, including the name, address, date
or year of birth, Social Security number, telephone
number, email, or IP-address of an individual; and
(B) does not include a CAT-Order-ID or CAT-
Reporter-ID, as those terms are defined in section
242.613(j) of title 17, Code of Federal Regulations (or
any successor regulation).
(4) Self-regulatory organization.--The term ``self-
regulatory organization'' has the meaning given the term in
section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)).
(b) Requirement.--The Commission shall--
(1) not later than 30 days after the date of enactment of
this Act, and notwithstanding any other provision of law or
regulation, terminate the Consolidated Audit Trail; and
(2) not later that 120 days after the date of enactment of
this Act, amend any regulation, no action letter, interpretive
letter, exemptive letter, legal bulletin, or other guidance of
the Commission to conform to the requirements of this section.
(c) Prohibitions.--On and after the date that the Commission
carries out the termination required under subsection (b)(1)--
(1) neither the Commission nor any self-regulatory
organization may administer the Consolidated Audit Trail; and
(2) no Federal agency may establish any consolidated audit
trail, central repository, or other centralized database that
collects personally identifiable information of citizens of the
United States, unless a duly enacted law of the United States
specifically provides the Federal agency with the authority to
take that action.
(d) Reimbursement of Fees.--Not later than 1 year after the date of
enactment of this Act, Consolidated Audit Trail, LLC and FINRA CAT, LLC
shall reimburse all fees collected by those entities before that date
to carry out the Consolidated Audit Trail.
TITLE IV--NO CENTRAL BANK DIGITAL CURRENCY
SEC. 401. CENTRAL BANK DIGITAL CURRENCY.
Section 13 of the Federal Reserve Act is amended by adding after
the 14th undesignated paragraph (12 U.S.C. 347d) the following:
``No Federal reserve bank, the Board, the Secretary of the
Treasury, any other agency, or any entity directed to act on
behalf of the Federal reserve bank, the Board, the Secretary,
or other agency, may mint or issue a central bank digital
currency directly to an individual (including a central bank
digital currency issued to an individual through a custodial
intermediary) or a digital currency intermediary, offer related
products or services directly to an individual, or maintain an
account on behalf of an individual (including an account in a
specially designated account at a digital currency intermediary
or supervised commercial bank). No Federal reserve bank may
hold digital currencies minted or issued by the United States
Government as assets or liabilities on a balance sheet of the
bank or use such digital currencies as part of fulfilling the
requirements under section 2A.''.
TITLE V--REGULATIONS FROM THE EXECUTIVE IN NEED OF SCRUTINY
SEC. 501. PURPOSE.
The purpose of this title is to increase accountability for and
transparency in the Federal regulatory process. Section 1 of article I
of the United States Constitution grants all legislative powers to
Congress. Over time, Congress has excessively delegated its
constitutional charge while failing to conduct appropriate oversight
and retain accountability for the content of the laws it passes. By
requiring a vote in Congress, the REINS Act will result in more
carefully drafted and detailed legislation, an improved regulatory
process, and a legislative branch that is truly accountable to the
American people for the laws imposed upon them.
SEC. 502. CONGRESSIONAL REVIEW OF CERTAIN AGENCY RULEMAKING.
(a) In General.--Chapter 8 of title 5, United States Code, is
amended to read as follows:
``CHAPTER 8--CONGRESSIONAL REVIEW OF CERTAIN AGENCY RULEMAKING
``Sec.
``801. Congressional review.
``802. Congressional approval procedure for major rules.
``803. Congressional disapproval procedure for nonmajor rules.
``804. Definitions.
``805. Judicial review.
``806. Exemption for monetary policy.
``807. Effective date of certain rules.
``808. Review of rules currently in effect.
``Sec. 801. Congressional review
``(a)(1)(A) Before a rule may take effect, the Federal agency
promulgating such rule shall publish in the Federal Register a list of
information on which the rule is based, including data, scientific and
economic studies, and cost-benefit analyses, and identify how the
public can access such information online, and shall submit to each
House of the Congress and to the Comptroller General a report
containing--
``(i) a copy of the rule;
``(ii) a concise general statement relating to the rule;
``(iii) a finding, rendered in consultation with the
Administrator of the Office of Information and Regulatory
Affairs of the Office of Management and Budget, whether the
rule is a major or nonmajor rule, including an explanation of
the finding specifically addressing each criteria for a major
rule contained within subparagraphs (A) through (C) of section
804(2);
``(iv) a list of any other related regulatory actions
intended to implement the same statutory provision or
regulatory objective as well as the individual and aggregate
economic effects of those actions;
``(v) the proposed effective date of the rule; and
``(vi) a statement of the constitutional authority
authorizing the agency to make the rule.
``(B) On the date of the submission of the report under
subparagraph (A), the Federal agency promulgating the rule shall submit
to the Comptroller General and make available to each House of Congress
(and to each committee of jurisdiction in each House)--
``(i) a complete copy of the cost-benefit analysis of the
rule, if any, including an analysis of any jobs added or lost,
differentiating between public and private sector jobs;
``(ii) the agency's actions pursuant to sections 603, 604,
605, 607, and 609 of this title;
``(iii) the agency's actions pursuant to sections 202, 203,
204, and 205 of the Unfunded Mandates Reform Act of 1995;
``(iv) an estimate of the effect on inflation of the rule;
and
``(v) any other relevant information or requirements under
any other Act and any relevant Executive orders.
``(C) Upon receipt of a report submitted under subparagraph (A),
each House shall provide copies of the report to the chairman and
ranking member of each standing committee with jurisdiction under the
rules of the House of Representatives or the Senate to report a bill to
amend the provision of law under which the rule is issued.
``(D) If requested in writing by a member of Congress--
``(i) the Comptroller General shall make a determination
whether an agency action qualifies as a rule for purposes of
this chapter, and shall submit to Congress this determination
not later than 60 days after the date of the request; and
``(ii) the Comptroller General, in consultation with the
Director of the Congressional Budget Office, shall make a
determination whether a rule is considered a major rule under
the provisions of this act, and shall submit to Congress this
determination not later than 90 days after the date of the
request.
For purposes of this section, a determination under this subparagraph
shall be deemed to be a report under subparagraph (A).
``(2)(A) The Comptroller General shall provide a report on each
major rule to the committees of jurisdiction by the end of 15 calendar
days after the submission or publication date. The report of the
Comptroller General shall include an assessment of the agency's
compliance with procedural steps required by paragraph (1)(B) and an
assessment of whether the major rule imposes any new limits or mandates
on private-sector activity.
``(B) Federal agencies shall cooperate with the Comptroller General
by providing information relevant to the Comptroller General's report
under subparagraph (A).
``(3) A major r