I 
113TH CONGRESS 
2D SESSION 
H. R. 4400 
To protect consumers by requiring reasonable security policies and procedures 
to protect data containing personal information, and to provide for na-
tionwide notice in the event of a security breach. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 4, 2014 
Mr. RUSH (for himself, Mr. BARTON, Mr. CICILLINE, Mr. LIPINSKI, Mr. 
MCNERNEY, and Ms. SCHAKOWSKY) introduced the following bill; which 
was referred to the Committee on Energy and Commerce 
A BILL 
To protect consumers by requiring reasonable security poli-
cies and procedures to protect data containing personal 
information, and to provide for nationwide notice in the 
event of a security breach. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Data Accountability 
and Trust Act’’. 
SEC. 2. REQUIREMENTS FOR INFORMATION SECURITY. 
(a) GENERAL SECURITY POLICIES
AND PROCE-
DURES.— 
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(B) The identification of an officer or 
other individual as the point of contact with re-
sponsibility for the management of information 
security. 
(C) A process for identifying and assessing 
any reasonably foreseeable vulnerabilities in the 
system or systems maintained by such person 
that contains such data, which shall include 
regular monitoring for a breach of security of 
such system or systems. 
(D) A process for taking preventive and 
corrective action to mitigate against any 
vulnerabilities identified in the process required 
by subparagraph (C), which may include imple-
menting any changes to security practices and 
the architecture, installation, or implementation 
of network or operating software. 
(E) A process for disposing of data in elec-
tronic form containing personal information by 
shredding, permanently erasing, or otherwise 
modifying the personal information contained in 
such data to make such personal information 
permanently unreadable or undecipherable. 
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(F) A standard method or methods for the 
destruction of paper documents and other non- 
electronic data containing personal information. 
(3) TREATMENT OF ENTITIES GOVERNED BY 
OTHER LAW.—Any person who is in compliance with 
any other Federal law that requires such person to 
maintain standards and safeguards for information 
security and protection of personal information that, 
taken as a whole and as the Commission shall deter-
mine in the rulemaking required under paragraph 
(1), provide protections substantially similar to, or 
greater than, those required under this subsection, 
shall be deemed to be in compliance with this sub-
section. 
(b) SPECIAL REQUIREMENTS
FOR INFORMATION 
BROKERS.— 
(1) SUBMISSION OF POLICIES TO THE FTC.— 
The regulations promulgated under subsection (a) 
shall require each information broker to submit its 
security policies to the Commission in conjunction 
with a notification of a breach of security under sec-
tion 3 or upon request of the Commission. 
(2) POST-BREACH AUDIT.—For any information 
broker required to provide notification under section 
3, the Commission may conduct audits of the infor-
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mation security practices of such information broker, 
or require the information broker to conduct inde-
pendent audits of such practices (by an independent 
auditor who has not audited such information bro-
ker’s security practices during the preceding 5 
years). 
(3) ACCURACY OF AND INDIVIDUAL ACCESS TO 
PERSONAL INFORMATION.— 
(A) ACCURACY.— 
(i) IN
GENERAL.—Each information 
broker shall establish reasonable proce-
dures to assure the maximum possible ac-
curacy of the personal information it col-
lects, assembles, or maintains, and any 
other information it collects, assembles, or 
maintains that specifically identifies an in-
dividual, other than information which 
merely identifies an individual’s name or 
address. 
(ii) LIMITED EXCEPTION FOR FRAUD 
DATABASES.—The requirement in clause 
(i) shall not prevent the collection or main-
tenance of information that may be inac-
curate with respect to a particular indi-
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vidual when that information is being col-
lected or maintained solely— 
(I) for the purpose of indicating 
whether there may be a discrepancy 
or irregularity in the personal infor-
mation that is associated with an indi-
vidual; and 
(II) to help identify, or authen-
ticate the identity of, an individual, or 
to protect against or investigate fraud 
or other unlawful conduct. 
(B) CONSUMER
ACCESS
TO
INFORMA-
TION.— 
(i) ACCESS.—Each information broker 
shall— 
(I) provide to each individual 
whose personal information it main-
tains, at the individual’s request at 
least 1 time per year and at no cost 
to the individual, and after verifying 
the identity of such individual, a 
means for the individual to review any 
personal information regarding such 
individual maintained by the informa-
tion broker and any other information 
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maintained by the information broker 
that specifically identifies such indi-
vidual, other than information which 
merely identifies an individual’s name 
or address; and 
(II) place a conspicuous notice on 
its Internet website (if the informa-
tion broker maintains such a website) 
instructing individuals how to request 
access to the information required to 
be provided under subclause (I), and, 
as applicable, how to express a pref-
erence with respect to the use of per-
sonal information for marketing pur-
poses under clause (iii). 
(ii) DISPUTED INFORMATION.—When-
ever an individual whose information the 
information broker maintains makes a 
written request disputing the accuracy of 
any such information, the information 
broker, after verifying the identity of the 
individual making such request and unless 
there are reasonable grounds to believe 
such request is frivolous or irrelevant, 
shall— 
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(I) correct any inaccuracy; or 
(II)(aa) in the case of informa-
tion that is public record information, 
inform the individual of the source of 
the information, and, if reasonably 
available, where a request for correc-
tion may be directed and, if the indi-
vidual provides proof that the public 
record has been corrected or that the 
information broker was reporting the 
information incorrectly, correct the in-
accuracy in the information broker’s 
records; or 
(bb) in the case of information 
that is non-public information, note 
the information that is disputed, in-
cluding the individual’s statement dis-
puting such information, and take 
reasonable steps to independently 
verify such information under the pro-
cedures outlined in subparagraph (A) 
if such information can be independ-
ently verified. 
(iii) ALTERNATIVE
PROCEDURE
FOR 
CERTAIN
MARKETING
INFORMATION.—In 
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accordance with regulations issued under 
clause (v), an information broker that 
maintains any information described in 
clause (i) which is used, shared, or sold by 
such information broker for marketing 
purposes, may, in lieu of complying with 
the access and dispute requirements set 
forth in clauses (i) and (ii), provide each 
individual whose information it maintains 
with a reasonable means of expressing a 
preference not to have his or her informa-
tion used for such purposes. If the indi-
vidual expresses such a preference, the in-
formation broker may not use, share, or 
sell the individual’s information for mar-
keting purposes. 
(iv) LIMITATIONS.—An information 
broker may limit the access to information 
required under clause (i)(I) and is not re-
quired to provide notice to individuals as 
required under clause (i)(II) in the fol-
lowing circumstances: 
(I) If access of the individual to 
the information is limited by law or 
legally recognized privilege. 
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(II) If the information is used for 
a legitimate governmental or fraud 
prevention purpose that would be 
compromised by such access. 
(III) If the information consists 
of a published media record, unless 
that record has been included in a re-
port about an individual shared with a 
third party. 
(v) RULEMAKING.—Not later than 1 
year after the date of the enactment of this 
Act, the Commission shall promulgate reg-
ulations under section 553 of title 5, 
United States Code, to carry out this para-
graph and to facilitate the purposes of this 
Act. In addition, the Commission shall 
issue regulations, as necessary, under sec-
tion 553 of title 5, United States Code, on 
the scope of the application of the limita-
tions in clause (iv), including any addi-
tional circumstances in which an informa-
tion broker may limit access to information 
under such clause that the Commission de-
termines to be appropriate. 
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(C) FCRA REGULATED
PERSONS.—Any 
information broker who is engaged in activities 
subject to the Fair Credit Reporting Act and 
who is in compliance with sections 609, 610, 
and 611 of such Act (15 U.S.C. 1681g; 1681h; 
1681i) with respect to information subject to 
such Act, shall be deemed to be in compliance 
with this paragraph with respect to such infor-
mation. 
(4) REQUIREMENT OF AUDIT LOG OF ACCESSED 
AND TRANSMITTED INFORMATION.—Not later than 
1 year after the date of the enactment of this Act, 
the Commission shall promulgate regulations under 
section 553 of title 5, United States Code, to require 
information brokers to establish measures which fa-
cilitate the auditing or retracing of any internal or 
external access to, or transmissions of, any data con-
taining personal information collected, assembled, or 
maintained by such information broker. 
(5) PROHIBITION ON PRETEXTING BY INFOR-
MATION BROKERS.— 
(A) PROHIBITION
ON
OBTAINING
PER-
SONAL INFORMATION BY FALSE PRETENSES.— 
It shall be unlawful for an information broker 
to obtain or attempt to obtain, or cause to be 
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disclosed or attempt to cause to be disclosed to 
any person, personal information or any other 
information relating to any person by— 
(i) making a false, fictitious, or fraud-
ulent statement or representation to any 
person; or 
(ii) providing any document or other 
information to any person that the infor-
mation broker knows or should know to be 
forged, counterfeit, lost, stolen, or fraudu-
lently obtained, or to contain a false, ficti-
tious, or fraudulent statement or represen-
tation. 
(B) PROHIBITION
ON
SOLICITATION
TO 
OBTAIN PERSONAL INFORMATION UNDER FALSE 
PRETENSES.—It shall be unlawful for an infor-
mation broker to request a person to obtain 
personal information or any other information 
relating to any other person, if the information 
broker knew or should have known that the per-
son to whom such a request is made will obtain 
or attempt to obtain such information in the 
manner described in subparagraph (A). 
(c) EXEMPTION
FOR
CERTAIN
SERVICE
PRO-
VIDERS.—Nothing in this section shall apply to a service 
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provider for any electronic communication by a third party 
that is transmitted, routed, or stored in intermediate or 
transient storage by such service provider. 
SEC. 
3. 
NOTIFICATION 
OF 
INFORMATION 
SECURITY 
BREACH. 
(a) NATIONWIDE NOTIFICATION.—Any person en-
gaged in interstate commerce that owns or possesses data 
in electronic form containing personal information shall, 
following the discovery of a breach of security of the sys-
tem maintained by such person that contains such data— 
(1) notify each individual who is a citizen or 
resident of the United States whose personal infor-
mation was acquired or accessed as a result of such 
a breach of security; and 
(2) notify the Commission. 
(b) SPECIAL NOTIFICATION REQUIREMENTS.— 
(1) THIRD PARTY AGENTS.—In the event of a 
breach of security by any third party entity that has 
been contracted to maintain or process data in elec-
tronic form containing personal information on be-
half of any other person who owns or possesses such 
data, such third party entity shall be required to no-
tify such person of the breach of security. Upon re-
ceiving such notification from such third party, such 
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person shall provide the notification required under 
subsection (a). 
(2) SERVICE PROVIDERS.—If a service provider 
becomes aware of a breach of security of data in 
electronic form containing personal information that 
is owned or possessed by another person that con-
nects to or uses a system or network provided by the 
service provider for the purpose of transmitting, 
routing, or providing intermediate or transient stor-
age of such data, such service provider shall be re-
quired to notify of such a breach of security only the 
person who initiated such connection, transmission, 
routing, or storage if such person can be reasonably 
identified. Upon receiving such notification from a 
service provider, such person shall provide the notifi-
cation required under subsection (a). 
(3) COORDINATION
OF
NOTIFICATION
WITH 
CONSUMER REPORTING AGENCIES.—If a person is 
required to provide notification to more than 5,000 
individuals under subsection (a)(1), the person shall 
also notify the major consumer reporting agencies of 
the timing and distribution of the notices. Such no-
tice shall be given to the consumer reporting agen-
cies without unreasonable delay and, if it will not 
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