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But in a provision likely to raise concerns from privacy advocates, the administration wants to require DHS to share that information “in as near real time as possible” with other government agencies that have a cybersecurity mission, the official said. Those include the National Security Agency, the Pentagon’s ­Cyber Command, the FBI and the Secret Service. “DHS needs to take an active lead role in ensuring that unnecessary personal information is not shared with intelligence authorities,” Jaycox said. The debates over government surveillance prompted by disclosures from former NSA contractor Edward Snowden have shown that “the agencies already have a tremendous amount of unnecessary information,” he said.

It would reaffirm that federal racketeering law applies to cybercrimes and amends the Computer Fraud and Abuse Act by ensuring that “insignificant conduct” does not fall within the scope of the statute. A third element of the package is legislation Obama proposed Monday to help protect consumers and students against cyberattacks. The theft of personal financial information “is a direct threat to the economic security of American families, and we’ve got to stop it,” Obama said. The plan, unveiled in a speech at the Federal Trade Commission, would require companies to notify customers within 30 days after the theft of personal information is discovered. Right now, data breaches are handled under a patchwork of state laws that the president said are confusing and costly to enforce. Obama’s plan would streamline those into one clear federal standard and bolster requirements for companies to notify customers. Obama is proposing closing loopholes to make it easier to track down cybercriminals overseas who steal and sell identities. “The more we do to protect consumer information and privacy, the harder it is for hackers to damage our businesses and hurt our economy,” he said.

Efforts to pass information-sharing legislation have stalled in the past five years, blocked primarily by privacy concerns. The package also contains provisions that would allow prosecution for the sale of botnets or access to armies of compromised computers that can be used to spread malware, would criminalize the overseas sale of stolen U.S. credit card and bank account numbers, would expand federal law enforcement authority to deter the sale of spyware used to stalk people or commit identity theft, and would give courts the authority to shut down botnets being used for criminal activity, such as denial-of-service attacks.

The administration official stressed that the legislation will require companies to remove unnecessary personal information before furnishing it to the government in order to qualify for liability protection. It also will impose limits on the use of the data for cybersecurity crimes and instances in which there is a threat of death or bodily harm, such as kidnapping, the official said. And it will require DHS and the attorney general to develop guidelines for the federal government’s use and retention of the data. It will not authorize a company to take offensive cyber-measures to defend itself, such as “hacking back” into a server or computer outside its own network to track a breach. The bill also will provide liability protection to companies that share data with private-sector-developed organizations set up specifically for that purpose. Called information sharing and analysis organizations, these groups often are set up by particular industries, such as banking, to facilitate the exchange of data and best practices.

In October, Obama signed an order to protect consumers from identity theft by strengthening security features in credit cards and the terminals that process them. Marc Rotenberg, executive director of the Electronic Privacy Information Center, said there is concern that a federal standard would “preempt stronger state laws” about how and when companies have to notify consumers. The Student Digital Privacy Act would ensure that data entered would be used only for educational purposes. It would prohibit companies from selling student data to third-party companies for purposes other than education. Obama also plans to introduce a Consumer Privacy Bill of Rights. And the White House will host a summit on cybersecurity and consumer protection on Feb. 13 at Stanford University.

“The specific uses that they talk about in this [counter-terrorism] context may not be the problem, but it’s what else they can do,” said Tamir Israel, a lawyer with the University of Ottawa’s Canadian Internet Policy and Public Interest Clinic. Picking which downloads to monitor is essentially “completely at the discretion of CSE,” Israel added. The file-sharing surveillance also raises questions about the number of Canadians whose downloading habits could have been swept up as part of LEVITATION’s dragnet. By law, CSE isn’t allowed to target Canadians. In the LEVITATION presentation, however, two Canadian IP addresses that trace back to a web server in Montreal appear on a list of suspicious downloads found across the world. The same list includes downloads that CSE monitored in closely allied countries, including the United Kingdom, United States, Spain, Brazil, Germany and Portugal. It is unclear from the document whether LEVITATION has ever prevented any terrorist attacks. The agency cites only two successes of the program in the 2012 presentation: the discovery of a hostage video through a previously unknown target, and an uploaded document that contained the hostage strategy of a terrorist organization. The hostage in the discovered video was ultimately killed, according to public reports.

LEVITATION does not rely on cooperation from any of the file-sharing companies. A separate secret CSE operation codenamed ATOMIC BANJO obtains the data directly from internet cables that it has tapped into, and the agency then sifts out the unique IP address of each computer that downloaded files from the targeted websites. The IP addresses are valuable pieces of information to CSE’s analysts, helping to identify people whose downloads have been flagged as suspicious. The analysts use the IP addresses as a kind of search term, entering them into other surveillance databases that they have access to, such as the vast repositories of intercepted Internet data shared with the Canadian agency by the NSA and its British counterpart Government Communications Headquarters. If successful, the searches will return a list of results showing other websites visited by the people downloading the files – in some cases revealing associations with Facebook or Google accounts. In turn, these accounts may reveal the names and the locations of individual downloaders, opening the door for further surveillance of their activities.

Canada’s leading surveillance agency is monitoring millions of Internet users’ file downloads in a dragnet search to identify extremists, according to top-secret documents. The covert operation, revealed Wednesday by CBC News in collaboration with The Intercept, taps into Internet cables and analyzes records of up to 15 million downloads daily from popular websites commonly used to share videos, photographs, music, and other files. The revelations about the spying initiative, codenamed LEVITATION, are the first from the trove of files provided by National Security Agency whistleblower Edward Snowden to show that the Canadian government has launched its own globe-spanning Internet mass surveillance system. According to the documents, the LEVITATION program can monitor downloads in several countries across Europe, the Middle East, North Africa, and North America. It is led by the Communications Security Establishment, or CSE, Canada’s equivalent of the NSA. (The Canadian agency was formerly known as “CSEC” until a recent name change.)

The latest update to the bill tacks on yet another kind of information, anything related to impending “serious economic harm.” All of those vague terms, Greene argues, widen the pipe of data that companies can send the government, expanding CISA into a surveillance system for the intelligence community and domestic law enforcement. If information-sharing legislation does not include adequate privacy protections, then...It’s a surveillance bill by another name. Senator Ron Wyden

“CISA goes far beyond [cybersecurity], and permits law enforcement to use information it receives for investigations and prosecutions of a wide range of crimes involving any level of physical force,” reads the letter from the coalition opposing CISA. “The lack of use limitations creates yet another loophole for law enforcement to conduct backdoor searches on Americans—including searches of digital communications that would otherwise require law enforcement to obtain a warrant based on probable cause. This undermines Fourth Amendment protections and constitutional principles.”

SG & TP: How do you see the current state of the right to privacy? BW: I joked when I took this job that I was relieved that I was going to be working on the Fourth Amendment, because finally I’d have a chance to win. That was intended as gallows humor; the Fourth Amendment had been a dishrag for the last several decades, largely because of the war on drugs. The joke in civil liberties circles was, “What amendment?” But I was able to make this joke because I was coming to Fourth Amendment litigation from something even worse, which was trying to sue the CIA for torture, or targeted killings, or various things where the invariable outcome was some kind of non-justiciability ruling. We weren’t even reaching the merits at all. It turns out that my gallows humor joke was prescient.

The truth is that over the last few years, we’ve seen some of the most important Fourth Amendment decisions from the Supreme Court in perhaps half a century. Certainly, I think the Jones decision in 2012 [U.S. v. Jones], which held that GPS tracking was a Fourth Amendment search, was the most important Fourth Amendment decision since Katz in 1967 [Katz v. United States], in terms of starting a revolution in Fourth Amendment jurisprudence signifying that changes in technology were not just differences in degree, but they were differences in kind, and require the Court to grapple with it in a different way. Just two years later, you saw the Court holding that police can’t search your phone incident to an arrest without getting a warrant [Riley v. California]. Since 2012, at the level of Supreme Court jurisprudence, we’re seeing a recognition that technology has required a rethinking of the Fourth Amendment at the state and local level. We’re seeing a wave of privacy legislation that’s really passing beneath the radar for people who are not paying close attention. It’s not just happening in liberal states like California; it’s happening in red states like Montana, Utah, and Wyoming. And purple states like Colorado and Maine. You see as many libertarians and conservatives pushing these new rules as you see liberals. It really has cut across at least party lines, if not ideologies. My overall point here is that with respect to constraints on government surveillance—I should be more specific—law-enforcement government surveillance—momentum has been on our side in a way that has surprised even me.

Do you think that increased privacy protections will happen on the state level before they happen on the federal level? BW: I think so. For example, look at what occurred with the death penalty and the Supreme Court’s recent Eighth Amendment jurisprudence. The question under the Eighth Amendment is, “Is the practice cruel and unusual?” The Court has looked at what it calls “evolving standards of decency” [Trop v. Dulles, 1958]. It matters to the Court, when it’s deciding whether a juvenile can be executed or if a juvenile can get life without parole, what’s going on in the states. It was important to the litigants in those cases to be able to show that even if most states allowed the bad practice, the momentum was in the other direction. The states that were legislating on this most recently were liberalizing their rules, were making it harder to execute people under 18 or to lock them up without the possibility of parole. I think you’re going to see the same thing with Fourth Amendment and privacy jurisprudence, even though the Court doesn’t have a specific doctrine like “evolving standards of decency.” The Court uses this much-maligned test, “Do individuals have a reasonable expectation of privacy?” We’ll advance the argument, I think successfully, that part of what the Court should look at in considering whether an expectation of privacy is reasonable is showing what’s going on in the states. If we can show that a dozen or eighteen state legislatures have enacted a constitutional protection that doesn’t exist in federal constitutional law, I think that that will influence the Supreme Court.

The question is will it also influence Congress. I think there the answer is also “yes.” If you’re a member of the House or the Senate from Montana, and you see that your state legislature and your Republican governor have enacted privacy legislation, you’re not going to be worried about voting in that direction. I think this is one of those places where, unlike civil rights, where you saw most of the action at the federal level and then getting forced down to the states, we’re going to see more action at the state level getting funneled up to the federal government.