House Passes Data Accountability Act  
  The U.S. House Commerce, Trade, and Consumer Protection subcommittee passed the Data Accountability and Trust Act, H.R. 4127.

The act requires the Federal Trade Commission to write rules for companies storing personal information in electronic form and to notify consumers if a significant security breach has or may have occurred.

The bill, sponsored by Rep. Cliff Stearns, R-Fla., would preempt all state laws regarding data security and notification requirements dealing with personal data in electronic form. The bill also allows businesses maintaining fewer than 1,000 personal data records to use a "substitute notification system" if the regular notification system proves too costly.

The bill moves to the full committee for consideration, although no markup date has been scheduled.