The Clarifying Lawful Overseas Use of Data (CLOUD) Act, enacted in 2018, updates the legal framework for federal law enforcement to access electronic data held by U.S. service providers, even when the data is stored outside the United States. The act resolves jurisdictional issues that arise in cross-border data requests and facilitates international cooperation for law enforcement purposes.

Key Provisions of the CLOUD Act:

Data Access for Law Enforcement:

The CLOUD Act allows U.S. federal law enforcement to compel U.S.-based service providers (e.g., Microsoft, Google) to provide access to data stored abroad using a valid warrant or subpoena, provided the request complies with applicable laws.

International Data Sharing Agreements:

The CLOUD Act enables the U.S. to establish bilateral agreements with other countries to streamline access to data for law enforcement purposes. These agreements ensure that U.S. and foreign law enforcement can access data without violating each other's sovereignty or privacy laws.

Conflict with Foreign Laws:

The act includes mechanisms for providers to challenge data requests that conflict with the laws of the country where the data is stored, providing safeguards for compliance with foreign privacy laws like the General Data Protection Regulation (GDPR).

Explanation of Options:

A. Codify a treaty with the EU that permits the cross-border transfer of personal information from the EU to the United States in compliance with the GDPR: This is incorrect. The CLOUD Act is not specific to the EU or GDPR compliance. Instead, it focuses on law enforcement access to data stored abroad.

B. Update the legal mechanisms through which federal law enforcement may obtain data that service providers maintain in a foreign country: This is correct. The CLOUD Act directly addresses law enforcement's ability to compel data access from U.S. providers, regardless of the data's physical location.

C. Establish baseline privacy obligations that U.S. companies must comply with for personal information, even if stored in a foreign country: This is incorrect. The CLOUD Act is focused on law enforcement access to data, not privacy obligations for companies.

D. Prohibit foreign companies from using the personal information of U.S. citizens without their consent: This is incorrect. The CLOUD Act does not regulate foreign companies or impose consent requirements for using personal information.

Reference from CIPP/US Materials:

CLOUD Act (18 U.S.C. 2713): Establishes legal mechanisms for cross-border data access and international agreements.

IAPP CIPP/US Certification Textbook: Discusses the CLOUD Act's impact on cross-border data requests and its interaction with global privacy laws.

According to FERPA, a school may disclose personally identifiable information (PII) from an eligible student's education records without consent if the disclosure meets one of the exceptions in 34 CFR 99.31. One of these exceptions is for disclosures to other schools to which a student seeks or intends to enroll, or is already enrolled if the disclosure is for purposes related to the student's enrollment or transfer (34 CFR 99.31(a)(2)). This exception allows schools to disclose transcripts, recommendations, or other information that may facilitate the student's admission or enrollment at another school. However, the school must make a reasonable attempt to notify the student of the disclosure, unless the student initiated the disclosure, and must provide the student with a copy of the records that were disclosed upon request (34 CFR 99.34(a)(1)).Reference:https://studentprivacy.ed.gov/ferpa

https://studentprivacy.ed.gov/ferpa

According to the HIPAA Security Rule, covered entities are responsible for ensuring that their business associates comply with the security standards and safeguards required by the rule. This includes conducting due diligence to assess the business associate's security capabilities and practices, and monitoring their performance and compliance. Failure to do so may result in a violation of the rule and a penalty by the HHS. In this scenario, HealthCo did not perform due diligence on CloudHealth before entering the contract, and did not conduct audits of CloudHealth's security measures. This is the most significant reason why HHS might impose a penalty on HealthCo, as it indicates a lack of oversight and accountability for the protection of ePHI.Reference:

HIPAA Security Rule

HIPAA Business Associate Contracts

HIPAA Enforcement and Penalties

The HITECH Act was enacted as part of the American Recovery and Reinvestment Act of 2009 to promote the adoption and use of health information technology, especially electronic health records (EHRs), in the United States. The HITECH Act established the Medicare and Medicaid EHR Incentive Programs, which provide financial incentives to eligible health care providers who demonstrate meaningful use of certified EHR technology. Meaningful use is defined as using EHRs to improve quality, safety, efficiency, and coordination of care, as well as to engage patients and protect their privacy and security. To qualify for the incentive payments, health care providers must meet certain objectives and measures that demonstrate meaningful use of EHRs as part of their regular care. Some of these objectives and measures include:

Protect electronic protected health information (ePHI)

Generate prescriptions electronically

Implement clinical decision support (CDS)

Use computerized provider order entry (CPOE) for medication, laboratory, and diagnostic imaging orders

Timely patient access to electronic files

Exchange health information with other providers and public health agencies

Report clinical quality measures and public health data

Therefore, the correct answer is A. Making EHRs part of regular care is an important action that a health care provider must take if she wants to qualify for funds under the HITECH Act.Reference:

What is the HITECH Act? 2024 Update, section ''The Meaningful Use Program''

The HITECH Act explained: Definition, compliance, and violations, section ''HITECH Act definition and summary'' and ''Why was the HITECH Act created and why is it important?''

Proposed Rulemaking to Implement HITECH Act Modifications, section ''The Health Information Technology for Economic and Clinical Health (HITECH) Act''

Health Information Technology for Economic and Clinical Health (HITECH) Audits, section ''The American Recovery & Reinvestment Act of 2009 (ARRA, or Recovery Act)''

What is HITECH Compliance? Understanding and Meeting HITECH Requirements, section ''HITECH Compliance Requirements''

According to Section 5 of the FTC Act, self-regulation primarily involves a company's right to adhere to its industry's code of conduct. Self-regulation is a process by which an industry or a group of companies voluntarily adopts and enforces standards or guidelines to protect consumers and promote fair competition. The FTC encourages self-regulation as a way to complement its enforcement efforts and address emerging issues in the marketplace. The FTC also monitors self-regulatory programs and may take action against companies that fail to comply with their own codes of conduct or misrepresent their participation in such programs.Reference:

Federal Trade Commission Act, Section 5 of

Self-Regulation | Federal Trade Commission

[IAPP CIPP/US Certified Information Privacy Professional Study Guide], Chapter 3, page 79