[Congressional Record Volume 162, Number 84 (Thursday, May 26, 2016)]
[Senate]
[Page S3302]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4244. Mr. REED submitted an amendment intended to be proposed by 
him to the bill S. 2943, to authorize appropriations for fiscal year 
2017 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle I of title X, add the following:

     SEC. 1097. CYBERSECURITY TRANSPARENCY.

       (a) Definitions.--In this section--
       (1) the term ``Commission'' means the Securities and 
     Exchange Commission;
       (2) the term ``cybersecurity threat''--
       (A) means an action, not protected by the First Amendment 
     to the Constitution of the United States, on or through an 
     information system that may result in an unauthorized effort 
     to adversely impact the security, availability, 
     confidentiality, or integrity of an information system or 
     information that is stored on, processed by, or transiting an 
     information system; and
       (B) does not include any action that solely involves a 
     violation of a consumer term of service or a consumer 
     licensing agreement;
       (3) the term ``information system''--
       (A) has the meaning given the term in section 3502 of title 
     44, United States Code; and
       (B) includes industrial control systems, such as 
     supervisory control and data acquisition systems, distributed 
     control systems, and programmable logic controllers;
       (4) the term ``issuer'' has the meaning given the term in 
     section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78c); and
       (5) the term ``reporting company'' means any company that 
     is an issuer--
       (A) the securities of which are registered under section 12 
     of the Securities Exchange Act of 1934 (15 U.S.C. 78l); or
       (B) that is required to file reports under section 15(d) of 
     such Act (15 U.S.C. 78o(d)).
       (b) Requirement To Issue Rules.--Not later than 360 days 
     after the date of enactment of this Act, the Commission shall 
     issue final rules to require each reporting company, in the 
     annual report submitted under section 13 or section 15(d) of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78m and 
     78o(d)) or the annual proxy statement submitted under section 
     14(a) of such Act (15 U.S.C. 78n(a))--
       (1) to disclose whether any member of the governing body, 
     such as the board of directors or general partner, of the 
     reporting company has expertise or experience in 
     cybersecurity and in such detail as necessary to fully 
     describe the nature of the expertise or experience; and
       (2) if no member of the governing body of the reporting 
     company has expertise or experience in cybersecurity, to 
     describe what other cybersecurity steps taken by the 
     reporting company were taken into account by such persons 
     responsible for identifying and evaluating nominees for any 
     member of the governing body, such as a nominating committee.
       (c) Cybersecurity Expertise or Experience.--For purposes of 
     subsection (b), the Commission, in coordination with the 
     National Institute of Standards and Technology, shall define 
     what constitutes expertise or experience in cybersecurity, 
     such as professional qualifications to administer information 
     security program functions or experience detecting, 
     preventing, mitigating, or addressing cybersecurity threats.
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