WASHINGTON—A bipartisan group of senators have reintroduced legislation intended to ensure that public companies are prioritizing cybersecurity and data privacy.
Sens. Jack Reed (D-RI), Susan Collins (R-ME), Mark Warner (D-VA), John Kennedy (R-LA), and Doug Jones (D-AL) introduced S. 592, the Cybersecurity Disclosure Act of 2019. Rep. Jim Himes (D-CT) will introduce companion legislation in the house.
According to the senators sponsoring the legislation, the bill “would require publicly traded companies to include in its Securities and Exchange Commission disclosures to investors information on whether any member of the company’s board of directors is a cybersecurity expert, and if not, why having this expertise on the board of directors is not necessary because of other cybersecurity steps taken by the company.” The sponsors also noted that the legislation doesn’t require companies to take any actions other than to provide the disclosure.
Reed has introduced similar legislation in prior Congresses, though the bills never gained significant traction, MeriTalk reported.
‘Strengthening Oversight’
“With growing cyber threats, we must be proactive in bolstering our nation’s cybersecurity. This legislation advances that goal by encouraging publicly traded companies to be more transparent about whether and how their boards of directors and senior management are prioritizing cybersecurity,” said Reed. “As our economy becomes ever more dependent on technology and the Internet, our economic security is indeed a matter of national security. Through the simple disclosure called for by this bipartisan legislation, we can strengthen cybersecurity oversight.”