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 HimesHillicon Valley: Doctors press tech to crack down on anti-vax content | Facebook, Instagram suffer widespread outages | Spotify hits Apple with antitrust complaint | FCC rejects calls to delay 5G auction House Dem introduces bill requiring public firms to disclose cybersecurity expertise in leadership House lawmakers clash over GOP allegations Dems coached Cohen 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: Pentagon lists construction projects at risk from emergency declaration | Officials deny report on leaving 1,000 troops in Syria | Spy budget request nears B Pentagon sends Congress list of projects that could lose funds to Trump's emergency declaration Overnight Defense: Senate rejects border emergency in rebuke to Trump | Acting Pentagon chief grilled on wall funding | Warren confronts chief over war fund budget MORE (D-R.I.), Mark WarnerMark Robert WarnerDems request probe into spa owner suspected of trying to sell access to Trump Live video of New Zealand shooting puts tech on defensive The Hill's Morning Report — Trump readies first veto after latest clash with Senate GOP MORE (D-Va.), Susan CollinsSusan Margaret CollinsOvernight Health Care: CDC pushes for expanding HIV testing, treatment | Dem group launches ads attacking Trump on Medicare, Medicaid cuts | Hospitals, insurers spar over surprise bills | O'Rourke under pressure from left on Medicare for all Dem group launches ads attacking Trump's 'hypocrisy on Medicare and Medicaid cuts' Juan Williams: Don't rule out impeaching Trump MORE (R-Maine) and John KennedyJohn Neely KennedyMORE (R-La.).