House committee advances breach notification bill

The U.S. House of Representatives’ Energy and Committee this week advanced a bill (H.R. 1770) that would implement a national data breach notification law to replace what much of the business and insurance community considers a burdensome frameworks of state laws.

The bill passed out of committee on a 29-20 vote and would require breached entities to notify consumers within 30 days “after the covered entity has taken the necessary measures to determine the scope of the breach and restore the reasonable integrity, security, and confidentiality of the data system,” according to the bill. It also allows for delay of notification for law enforcement purposes.

“Consumers want assurances that their data and their virtual you will be protected in cyber space,” said Energy and Commerce Committee Vice Chairman Marsha Blackburn (R-TN), the author of the bill. “2014 was dubbed the year of the breach. The American people are asking Congress to take some action and provide some clarity. This bill is a bipartisan effort crafted with substantial input from Republicans, Democrats, and affected industries. Our country cannot spare the trillions of dollars in costs or the loss of 5 million jobs that will come with another 10 years passing without federal guidelines and legislation.”

Full committee Chairman Fred Upton (R-MI) said, “Over 40 bills have been introduced in Congress since the first major data breach in 2005 and we haven’t yet reached the finish line. This committee has worked hard to find a balanced, well-targeted solution, and I believe our legislation is closer than we have come in a long time to addressing a problem that has only worsened over the past decade.”

Commerce Manufacturing and Trade Subcommittee Chairman Michael C. Burgess, M.D. (R-TX) stated, “We have negotiated in good faith with both parties and stakeholders to achieve a narrowly-targeted but effective bill that can become law. A data security solution is finally within reach, and I look forward to finally passing effective legislation on the House floor.”

Blackburn said, “Passing this data security bill out of committee today is an important milestone. While I hoped we could have reached a bipartisan agreement today, it is only a small bump in the road. Mr. Welch and I will continue to work closely together in the days ahead to ultimately achieve a strong bipartisan vote on the House floor.”