2019 US Code
Title 38 - Veterans' Benefits
Part IV - General Administrative Provisions
Chapter 57 - Records and Investigations
Subchapter III - Information Security
Sec. 5725 - Contracts for data processing or maintenance

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Citation 38 U.S.C. § 5725 (2019)
Section Name §5725. Contracts for data processing or maintenance
Section Text

(a) Contract Requirements.—If the Secretary enters into a contract for the performance of any Department function that requires access to sensitive personal information, the Secretary shall require as a condition of the contract that—

(1) the contractor shall not, directly or through an affiliate of the contractor, disclose such information to any other person unless the disclosure is lawful and is expressly permitted under the contract;

(2) the contractor, or any subcontractor for a subcontract of the contract, shall promptly notify the Secretary of any data breach that occurs with respect to such information.


(b) Liquidated Damages.—Each contract subject to the requirements of subsection (a) shall provide for liquidated damages to be paid by the contractor to the Secretary in the event of a data breach with respect to any sensitive personal information processed or maintained by the contractor or any subcontractor under that contract.

(c) Provision of Credit Protection Services.—Any amount collected by the Secretary under subsection (b) shall be deposited in or credited to the Department account from which the contractor was paid and shall remain available for obligation without fiscal year limitation exclusively for the purpose of providing credit protection services pursuant to section 5724(b) of this title.

Source Credit

(Added Pub. L. 109–461, title IX, §902(a), Dec. 22, 2006, 120 Stat. 3456.)

Publication Title United States Code, 2018 Edition, Supplement 1, Title 38 - VETERANS' BENEFITS
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 38 - VETERANS' BENEFITS
PART IV - GENERAL ADMINISTRATIVE PROVISIONS
CHAPTER 57 - RECORDS AND INVESTIGATIONS
SUBCHAPTER III - INFORMATION SECURITY
Sec. 5725 - Contracts for data processing or maintenance
Contains section 5725
Date 2019
Laws In Effect As Of Date January 24, 2020
Positive Law Yes
Disposition standard
Statutes at Large References 120 Stat. 3456
Public Law References Public Law 109-461
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