Increasing Notice of Foreign Outsourcing Act
Latest action (1 Jun 2004): Introduced
What this bill does
Generate a neutral, plain-English explanation of what this bill does, who it affects and what happens next — grounded in the official text.
Official summary
Increasing Notice of Foreign Outsourcing Act - Directs the Secretary of Health and Human Services (HHS) to issue regulations requiring covered entities under the Health Insurance Portability and Accountability Act of 1996 that outsource protected health information to foreign-based business associates to include in their notice of privacy protections: (1) notification of outsourcing; (2) any risks and consequences to the privacy and security of such information resulting from outsourcing; (3) additional measures the covered entity is taking to protect outsourced protected health information; and (4) certification that the covered entity has taken reasonable steps to ensure that the handling of such information will comport with applicable laws.
Amends the Gramm-Leach-Bliley Act to impose similar requirements on financial institutions that outsource nonpublic personal information to foreign-based businesses.
Directs the Secretary of HHS, with regard to protected health information outsourced by covered entities, and the Federal banking agencies, National Credit Union Administration, Secretary of the Treasury, Securities and Exchange Commission, and Federal Trade Commission, with regard to nonpublic personal information outsourced by financial institutions, to issue regulations requiring: (1) outsourcing contracts with foreign-based businesses to contain audit provisions; and (2) such businesses and subcontractors to be contractually bound by Federal privacy standards and security safeguards.
Establishes notification procedures in the event of a breach of database security involving protected health or nonpublic personal information.
Requires contracts with foreign call centers to include a provision requiring call center employees to disclose their physical location upon request. Imposes civil penalties for violators.
Common questions
- What does S. 2481 do?
- Increasing Notice of Foreign Outsourcing Act - Directs the Secretary of Health and Human Services (HHS) to issue regulations requiring covered entities under the Health Insurance Portability and Accountability Act of 1996 that outsource protected health information to foreign-based business associates to include in their notice of privacy protections: (1) notification of outsourcing; (2) any risks and consequences to the privacy and security of such information resulting from outsourcing; (3) additional measures the covered entity is taking to protect outsourced protected health information; and (4) certification that the covered entity has taken reasonable steps to ensure that the handling of such information will comport with applicable laws. Amends the Gramm-Leach-Bliley Act to impose similar requirements on financial institutions that outsource nonpublic personal information to foreign-based businesses. Directs the Secretary of HHS, with regard to protected health information outsourced by covered entities, and the Federal banking agencies, National Credit Union Administration, Secretary of the Treasury, Securities and Exchange Commission, and Federal Trade Commission, with regard to nonpublic personal information outsourced by financial institutions, to issue regulations requiring: (1) outsourcing contracts with foreign-based businesses to contain audit provisions; and (2) such businesses and subcontractors to be contractually bound by Federal privacy standards and security safeguards. Establishes notification procedures in the event of a breach of database security involving protected health or nonpublic personal information. Requires contracts with foreign call centers to include a provision requiring call center employees to disclose their physical location upon request. Imposes civil penalties for violators.
- Has S. 2481 become law?
- Not yet. As of 1 Jun 2004, S. 2481 is introduced.
- Who sponsored S. 2481?
- S. 2481 was sponsored by Sen. Bill Nelson [D-FL, 2001-2018] (Democrat-FL), with 1 cosponsor.
- What's the latest action on S. 2481?
- Introduced (1 Jun 2004).
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