readily requesting the credit protection services under this 
section. Such form or other means may include a tele-
phone number, email address, or Internet website address. 
‘‘(c) AVAILABILITY OF SERVICES THROUGH OTHER 
GOVERNMENT AGENCIES.—If a service required to be pro-
vided under this section is available to a covered individual 
through another department or agency of the Government, 
the Secretary and the head of that department or agency 
may enter into an agreement under which the head of that 
department or agency agrees to provide that service to the 
covered individual. 
‘‘(d) CONTRACT WITH CREDIT REPORTING AGEN-
CY.—Subject to the availability of appropriations and not-
withstanding any other provision of law, the Secretary 
shall enter into contracts or other agreements as necessary 
with one or more principal credit reporting agencies in 
order to ensure, in advance, the provision of credit protec-
tion services under this section and fraud alerts and secu-
rity freezes under section 5725 of this title. Any such con-
tract or agreement may include provisions for the Sec-
retary to pay the expenses of such a credit reporting agen-
cy for the provision of such services. 
‘‘(e) DATA BREACH ANALYSIS.—The Secretary shall 
arrange, upon the request of a covered individual and at 
no cost to the individual, to provide data breach analysis
for the individual for a period of not less than one year, 
beginning on the date of such request. 
‘‘(f) PROVISION OF CREDIT MONITORING SERVICES 
AND IDENTITY THEFT INSURANCE.—During the one-year 
period beginning on the date on which the Secretary noti-
fies a covered individual that the individual’s sensitive per-
sonal information is involved in a data breach, the Sec-
retary shall arrange, upon the request of the individual 
and without charge to the individual, for the provision of 
credit monitoring services to the individual. Credit moni-
toring services under this subsection shall include each of 
the following: 
‘‘(1) One copy of the credit report of the indi-
vidual every three months. 
‘‘(2) Fraud resolution services for the indi-
vidual. 
‘‘(3) Identity theft insurance in a coverage 
amount that does not exceed $30,000 in aggregate 
liability for the insured. 
‘‘§ 5727. Contracts for data processing or mainte-
nance 
‘‘(a) CONTRACT REQUIREMENTS.—If the Secretary 
enters into a contract for the performance of any Depart-
ment function that requires access to sensitive personal
information, the Secretary shall require as a condition of 
the contract that—
‘‘(1) the contractor shall not, directly or 
through an affiliate of the contractor, disclose such 
information to any other person unless the disclo-
sure is lawful and is expressly permitted under the 
contract; 
‘‘(2) the contractor, or any subcontractor for a 
subcontract of the contract, shall promptly notify the 
Secretary of any data breach that occurs with re-
spect to such information. 
‘‘(b) LIQUIDATED DAMAGES.—Each contract subject 
to the requirements of subsection (a) shall provide for liq-
uidated damages to be paid by the contractor to the Sec-
retary in the event of a data breach with respect to any 
sensitive personal information processed or maintained by 
the contractor or any subcontractor under that contract. 
‘‘(c) PROVISION
OF CREDIT PROTECTION SERV-
ICES.—Any amount collected by the Secretary under sub-
section (b) shall be deposited in or credited to the Depart-
ment account from which the contractor was paid and 
shall remain available for obligation without fiscal year 
limitation exclusively for the purpose of providing credit 
protection services in accordance with section 5726 of this 
title.
‘‘§ 5728. Authorization of appropriations 
‘‘There are authorized to be appropriated to carry out 
this subchapter such sums as may be necessary for each 
fiscal year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new items:
‘‘SUBCHAPTER III—INFORMATION SECURITY 
‘‘5721. Definitions. 
‘‘5722. Office of the Under Secretary for Information Services. 
‘‘5723. Information security management. 
‘‘5724. Congressional reporting and notification of data breaches. 
‘‘5725. Data breaches. 
‘‘5726. Provision of credit protection services. 
‘‘5727. Contracts for data processing or maintenance. 
‘‘5728. Authorization of appropriations.’’.
(c) DEADLINE FOR REGULATIONS.—Not later than 
60 days after the date of the enactment of this Act, the 
Secretary of Veterans Affairs shall publish regulations to 
carry out subchapter III of chapter 57 of title 38, United 
States Code, as added by subsection (a). 
SEC. 5. REPORT ON FEASIBILITY OF USING PERSONAL 
IDENTIFICATION NUMBERS FOR IDENTIFICA-
TION. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Veterans Affairs shall 
submit to Congress a report containing the assessment of 
the Secretary with respect to the feasibility of using per-
sonal identification numbers instead of Social Security 
numbers for the purpose of identifying individuals whose
sensitive personal information (as that term is defined in 
section 5721 of title 38, United States Code, as added by 
section 4) is processed or maintained by the Secretary. 
SEC. 6. DEADLINE FOR APPOINTMENTS. 
(a) DEADLINE.—Not later than 180 days after the 
date of the enactment of this Act—
(1) the President shall nominate an individual 
to serve as the Under Secretary of Veterans Affairs 
for Information Services under section 307A of title 
38, United States Code, as added by section 3; and 
(2) the Secretary of Veterans Affairs shall ap-
point an individual to serve as each of the Deputy 
Under Secretaries of Veterans Affairs for Informa-
tion Services under section 5722 of such title, as 
added by section 4. 
(b) REPORT.—Not later than 30 days after the date 
of the enactment of this Act, and every 30 days thereafter 
until the appointments described in subsection (a) are 
made, the Secretary of Veterans Affairs shall submit to 
Congress a report describing the progress of such appoint-
ments.
SEC. 7. INFORMATION SECURITY EDUCATION ASSISTANCE 
PROGRAM. 
(a) PROGRAM REQUIRED.—Title 38, United States 
Code, is amended by inserting after chapter 78 the fol-
lowing new chapter: 
‘‘CHAPTER 79—INFORMATION SECURITY 
EDUCATION ASSISTANCE PROGRAM
‘‘Sec. 
‘‘7901. Programs; purpose. 
‘‘7902. Scholarship program. 
‘‘7903. Education debt reduction program. 
‘‘7904. Preferences in awarding financial assistance. 
‘‘7905. Requirement of honorable discharge for veterans receiving assistance. 
‘‘7906. Regulations. 
‘‘7907. Termination.
‘‘§ 7901. Programs; purpose 
‘‘(a) IN GENERAL.—To encourage the recruitment 
and retention of Department personnel who have the in-
formation security skills necessary to meet Department re-
quirements, the Secretary shall carry out programs in ac-
cordance with this chapter to provide financial support for 
education in computer science and electrical and computer 
engineering at accredited institutions of higher education. 
‘‘(b) TYPES OF PROGRAMS.—The programs author-
ized under this chapter are as follows: 
‘‘(1) Scholarships for pursuit of doctoral de-
grees in computer science and electrical and com-
puter engineering at accredited institutions of higher 
education.
‘‘(2) Education debt reduction for Department 
personnel who hold doctoral degrees in computer 
science and electrical and computer engineering at 
accredited institutions of higher education. 
‘‘§ 7902. Scholarship program 
‘‘(a) AUTHORITY.—(1) Subject to the availability of 
appropriations, the Secretary shall establish a scholarship 
program under which the Secretary shall, subject to sub-
section (d), provide financial assistance in accordance with 
this section to a qualified person—
‘‘(A) who is pursuing a doctoral degree in com-
puter science or electrical or computer engineering 
at an accredited institution of higher education; and 
‘‘(B) who enters into an agreement with the 
Secretary as described in subsection (b). 
‘‘(2)(A) Except as provided under subparagraph (B), 
the Secretary may provide financial assistance under this 
section to an individual for up to five years. 
‘‘(B) The Secretary may waive the limitation under 
subparagraph (A) if the Secretary determines that such 
a waiver is appropriate. 
‘‘(3)(A) The Secretary may award up to five scholar-
ships for any academic year to individuals who did not 
receive assistance under this section for the preceding aca-
demic year.
‘‘(B) Not more than one scholarship awarded under 
subparagraph (A) may be awarded to an individual who 
is an employee of the Department when the scholarship 
is awarded. 
‘‘(b) SERVICE AGREEMENT FOR SCHOLARSHIP RE-
CIPIENTS.—(1) To receive financial assistance under this 
section an individual shall enter into an agreement to ac-
cept and continue employment in the Department for the 
period of obligated service determined under paragraph 
(2). 
‘‘(2) For the purposes of this subsection, the period 
of obligated service for a recipient of financial assistance 
under this section shall be the period determined by the 
Secretary as being appropriate to obtain adequate service 
in exchange for the financial assistance and otherwise to 
achieve the goals set forth in section 7901(a) of this title. 
In no event may the period of service required of a recipi-
ent be less than the period equal to two times the total 
period of pursuit of a degree for which the Secretary 
agrees to provide the recipient with financial assistance 
under this section. The period of obligated service is in 
addition to any other period for which the recipient is obli-
gated to serve on active duty or in the civil service, as 
the case may be.
‘‘(3) An agreement entered into under this section by 
a person pursuing an doctoral degree shall include terms 
that provide the following: 
‘‘(A) That the period of obligated service begins 
on a date after the award of the degree that is de-
termined under the regulations prescribed under sec-
tion 7906 of this title. 
‘‘(B) That the individual will maintain satisfac-
tory academic progress, as determined in accordance 
with those regulations, and that failure to maintain 
such progress constitutes grounds for termination of 
the financial assistance for the individual under this 
section. 
‘‘(C) Any other terms and conditions that the 
Secretary determines appropriate for carrying out 
this section. 
‘‘(c) AMOUNT OF ASSISTANCE.—(1) The amount of 
the financial assistance provided for an individual under 
this section shall be the amount determined by the Sec-
retary as being necessary to pay—
‘‘(A) the tuition and fees of the individual; and 
‘‘(B) $1500 to the individual each month (in-
cluding a month between academic semesters or 
terms leading to the degree for which such assist-
ance is provided or during which the individual is
not enrolled in a course of education but is pursuing 
independent research leading to such degree) for 
books, laboratory expenses, and expenses of room 
and board. 
‘‘(2) In no case may the amount of assistance pro-
vided for an individual under this section for an academic 
year exceed $50,000. 
‘‘(3) In no case may the total amount of assistance 
provided for an individual under this section exceed 
$200,000. 
‘‘(4) Notwithstanding any other provision of law, fi-
nancial assistance paid an individual under this section 
shall not be considered as income or resources in deter-
mining eligibility for, or the amount of benefits under, any 
Federal or federally assisted program. 
‘‘(d) REPAYMENT FOR PERIOD OF UNSERVED OBLI-
GATED SERVICE.—(1) An individual who receives financial 
assistance under this section shall repay to the Secretary 
an amount equal to the unearned portion of the financial 
assistance if the individual fails to satisfy the require-
ments of the service agreement entered into under sub-
section (b), except in certain circumstances authorized by 
the Secretary. 
‘‘(2) The Secretary may establish, by regulations, 
procedures for determining the amount of the repayment
required under this subsection and the circumstances 
under which an exception to the required repayment may 
be granted. 
‘‘(3) An obligation to repay the Secretary under this 
subsection is, for all purposes, a debt owed the United 
States. A discharge in bankruptcy under title 11 does not 
discharge a person from such debt if the discharge order 
is entered less than five years after the date of the termi-
nation of the agreement or contract on which the debt is 
based. 
‘‘(e) WAIVER OR SUSPENSION OF COMPLIANCE.—
The Secretary shall prescribe regulations providing for the 
waiver or suspension of any obligation of a individual for 
service or payment under this section (or an agreement 
under this section) whenever noncompliance by the indi-
vidual is due to circumstances beyond the control of the 
individual or whenever the Secretary determines that the 
waiver or suspension of compliance is in the best interest 
of the United States. 
‘‘(f) INTERNSHIPS.—(1) The Secretary may offer a 
compensated internship to an individual for whom finan-
cial assistance is provided under this section during a pe-
riod between academic semesters or terms leading to the 
degree for which such assistance is provided. Compensa-
tion provided for such an internship shall be in addition 
to the financial assistance provided under this section. 
‘‘(2) An internship under this subsection shall not be 
counted toward satisfying a period of obligated service 
under this section. 
‘‘(g) INELIGIBILITY
OF INDIVIDUALS RECEIVING 
MONTGOMERY GI BILL EDUCATION ASSISTANCE PAY-
MENTS.—An individual who receives a payment of edu-
cational assistance under chapter 30, 31, 32, 34, or 35 
of this title or chapter 1606 or 1607 of title 10 for a 
month in which the individual is enrolled in a course of 
education leading to a doctoral degree in information secu-
rity is not eligible to receive financial assistance under this 
section for that month. 
‘‘§ 7903. Education debt reduction program 
‘‘(a) AUTHORITY.—(1) Subject to the availability of 
appropriations, the Secretary shall establish an education 
debt reduction program under which the Secretary shall 
make education debt reduction payments under this sec-
tion to qualified individuals eligible under subsection (b) 
for the purpose of reimbursing such individuals for pay-
ments by such individuals of principal and interest on 
loans described in paragraph (2) of that subsection. 
‘‘(2)(A) For each fiscal year, the Secretary may ac-
cept up to five individuals into the program established
under paragraph (1)who did not receive such a payment 
during the preceding fiscal year. 
‘‘(B) Not more than one individual accepted into the 
program for a fiscal year under subsection (A) shall be 
a Department employee as of the date on which the indi-
vidual is accepted into the program. 
‘‘(b) ELIGIBILITY.—An individual is eligible to par-
ticipate in the program under this section if the indi-
vidual—
‘‘(1) has completed a doctoral degree a doctoral 
degree in computer science or electrical or computer 
engineering at an accredited institution of higher 
education during the five-year period preceding the 
date on which the individual is hired; 
‘‘(2) is an employee of the Department who 
serves in a position related to information security 
(as determined by the Secretary); and 
‘‘(3) owes any amount of principal or interest 
under a loan, the proceeds of which were used by or 
on behalf of that individual to pay costs relating to 
a doctoral degree in computer science or electrical or 
computer engineering at an accredited institution of 
higher education. 
‘‘(c) AMOUNT OF ASSISTANCE.—(1) Subject to para-
graph (2), the amount of education debt reduction pay-
ments made to an individual under this section may not 
exceed $82,500 over a total of five years, of which not 
more than $16,500 of such payments may be made in each 
year. 
‘‘(2) The total amount payable to an individual under 
this section for any year may not exceed the amount of 
the principal and interest on loans referred to in sub-
section (b)(3) that is paid by the individual during such 
year. 
‘‘(d) PAYMENTS.—(1) The Secretary shall make edu-
cation debt reduction payments under this section on an 
annual basis. 
‘‘(2) The Secretary shall make such a payment—
‘‘(A) on the last day of the one-year period be-
ginning on the date on which the individual is ac-
cepted into the program established under sub-
section (a); or 
‘‘(B) in the case of an individual who received 
a payment under this section for the preceding fiscal 
year, on the last day of the one-year period begin-
ning on the date on which the individual last re-
ceived such a payment. 
‘‘(3) Notwithstanding any other provision of law, edu-
cation debt reduction payments under this section shall 
not be considered as income or resources in determining
eligibility for, or the amount of benefits under, any Fed-
eral or federally assisted program. 
‘‘(e) PERFORMANCE REQUIREMENT.—The Secretary 
may make education debt reduction payments to an indi-
vidual under this section for a year only if the Secretary 
determines that the individual maintained an acceptable 
level of performance in the position or positions served by 
the individual during the year. 
‘‘(f) NOTIFICATION
OF TERMS
OF PROVISION
OF 
PAYMENTS.—The Secretary shall provide to an individual 
who receives a payment under this section notice in writ-
ing of the terms and conditions that apply to such a pay-
ment. 
‘‘(g) COVERED COSTS.—For purposes of subsection 
(b)(3), costs relating to a course of education or training 
include—
‘‘(1) tuition expenses; and 
‘‘(2) all other reasonable educational expenses, 
including fees, books, and laboratory expenses; 
‘‘§ 7904. Preferences in awarding financial assistance 
‘‘In awarding financial assistance under this chapter, 
the Secretary shall give a preference to qualified individ-
uals who are otherwise eligible to receive the financial as-
sistance in the following order of priority:
‘‘(1) Veterans with service-connected disabil-
ities. 
‘‘(2) Veterans. 
‘‘(3) Persons described in section 4215(a)(B) of 
this title. 
‘‘(4) Individuals who received or are pursuing 
degrees at institutions designated by the National 
Security Agency as Centers of Academic Excellence 
in Information Assurance Education. 
‘‘(5) Citizens of the United States. 
‘‘§ 7905. Requirement of honorable discharge for vet-
erans receiving assistance 
‘‘No veteran shall receive financial assistance under 
this chapter unless the veteran was discharged from the 
Armed Forces under honorable conditions. 
‘‘§ 7906. Regulations 
‘‘The Secretary shall prescribe regulations for the ad-
ministration of this chapter. 
‘‘§ 7907. Termination 
‘‘The authority of the Secretary to make a payment 
under this chapter shall terminate on July 31, 2017.’’. 
(b) GAO REPORT.—Not later than three years after 
the date of the enactment of this Act, the Comptroller 
General shall submit to Congress a report on the scholar-
ship and education debt reduction programs under chapter
79 of title 38, United States Code, as added by subsection 
(a). 
(c) APPLICABILITY
OF
SCHOLARSHIPS.—Section 
7902 of title 38, United States Code, as added by sub-
section (a), shall apply with respect to financial assistance 
provided for an academic semester or term that begins on 
or after August 1, 2007. 
(d) CLERICAL AMENDMENT.—The tables of chapters 
at the beginning of such title, and at the beginning of part 
V of such title, are amended by inserting after the item 
relating to chapter 78 the following new item:
‘‘79. Information Security Education Assistance Program ...................... 7901’’.
Passed the House of Representatives September 26, 
2006. 
Attest:
Clerk.
109TH CONGRESS 
2D SESSION 
H. R. 5835
AN ACT 
To amend title 38, United States Code, to improve 
information management within the Department 
of Veterans Affairs, and for other purposes.