House Dem introduces bill requiring public firms to disclose cybersecurity expertise in leadership

House Dem introduces bill requiring public firms to disclose cybersecurity expertise in leadership
© Greg Nash

A Democrat on the House Intelligence Committee introduced a bill on Wednesday that would require publicly traded companies to disclose to investors whether any members of their board of directors have cybersecurity expertise amid growing cyberattacks targeting U.S. companies.

Rep. Jim HimesJames (Jim) Andres HimesHouse Democrat 'fixed' Trump's infographic about Mueller's investigation House Dem calls on lawmakers to 'insulate' election process following Mueller report Dem lawmaker: There isn't a crime Trump could commit that would cause GOP to turn on him MORE (D-Conn.) introduced the Cybersecurity Disclosure Act of 2019, a companion bill introduced in the upper chamber, that would make the Securities and Exchange Commission issue a new set of rules requiring U.S. companies to tell their investors whether they have someone who has cyber expertise on their board. If they don't, they must explain to their investors why this is the case.

The bill comes at a time when "cyberattacks and data breaches against U.S. companies are becoming more frequent and sophisticated," according to a press release accompanying the rollout of the bill.

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The press release cited a study from Identity Theft Resource Center that found there was a 126 percent rise of data breaches that exposed records containing personally identifiable information. This rise took place across all industries, from 197.6 million in 2017 to 446.5 million in 2018. 

"It's not only the shareholders of companies who are at risk," Himes said in a statement. "Americans' private and identifying information is in the hands of corporations who may not be prepared to protect it. The Cybersecurity Disclosure Act will give the public information about which companies are likely to have better protections and cyberdefense strategies."

"Publicly traded companies should have an obligation to let their shareholders know how they are addressing these serious threats or explain why they are not taking measures to counter attacks.  Billions of dollars of American wealth are at risk, and I am tired of seeing American companies play catchup against our geopolitical rivals or lone-wolf threats," he continued.

The Senate companion bill has bipartisan support, with Sens. Jack ReedJohn (Jack) Francis ReedOvernight Defense: Iran worries dominate foreign policy talk | Pentagon reportedly to send WH plans for 10K troops in Mideast | Democrats warn Trump may push through Saudi arms sale | Lawmakers blast new Pentagon policy on sharing info Shanahan orders new restrictions on sharing of military operations with Congress: report Trump, Europe increasingly at odds on Iran MORE (D-R.I.), Mark WarnerMark Robert WarnerSenators offer bipartisan bill to help US firms remove Huawei equipment from networks DOJ plans to show Senate Intel less-redacted Mueller report, filing shows Bipartisan House bill calls for strategy to protect 5G networks from foreign threats MORE (D-Va.), Susan CollinsSusan Margaret CollinsThe Hill's Morning Report - Trump says no legislation until Dems end probes Collins offering bill to boost battery research as GOP pushes energy 'innovation' Biden says Congress must move to protect abortion rights MORE (R-Maine) and John KennedyJohn Neely KennedyMORE (R-La.).