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FULL COMMITTEE APPROVES STEARNS' DATA SECURITY LEGISLATION

ENERGY & COMMERCE COMMITTEE APPROVES H.R. 4127, DATA ACCOUNTABILITY AND TRUST ACT, AND STEARNS' BILL ON CYSTIC FIBROSIS AWARENESS

 
 

Washington, Mar 29, 2006 - "For years, I have been working to enhance consumer privacy and security for individual's personal information," stated Rep. Cliff Stearns (R-FL). "I am pleased that the full committee approved my legislation to combat identity theft and to protect consumers' personal information."

The Energy & Commerce Committee today approved by a vote of 41 to 0 H.R. 4127, Stearns' Data Accountability and Trust Act (DATA Act). Explained Stearns, "According to the Federal Trade Commission, in a one year period 10 million Americans were victimized through identity theft, costing businesses $48 billion and consumers $5 billion." Stearns offered, and the Committee approved, an amendment improving the underlying bill. H.R. 4127 would:

* Require any entity that experiences a breach of security to notify all those in the United States whose information was acquired by an unauthorized person as a result of the breach. Conspicuous notice on the breached entity's Web site is also required. The FTC must also be notified.
* Direct the FTC to create rules setting rigorous national standards for data brokers to protect personal information.
* Require data brokers to have a security policy that explains the "collection, use, sale, other dissemination, and security" of the data they hold.
* Require entities to appoint and identify a person in the organization that is responsible for information security.
* Provide for an FTC or independent audit of an information broker's security practices following a breach of security. Permit the FTC to conduct or require audits for a period of five years after the breach, or until the commission determines security practices are in compliance with the act and are adequate to prevent further breaches.

The Committee also approved H.Con.Res. 357 that supports the goals and ideals behind National Cystic Fibrosis Awareness Month, which is May. Stearns and Rep. Edward Markey (D-MA) offered this measure to bring attention to cystic fibrosis. "Over 30,000 Americans have cystic fibrosis, more than half of them children. In addition to offering this measure, I joined Rep. Markey in establishing the Congressional Cystic Fibrosis Caucus to promote research for this disease, and early detection and enhanced treatment."