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2026-07-06 10:51:44 -04:00

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LegalText 38 U.S.C. § 5725 Contracts for data processing or maintenance us united_states_code code_section 38 VETERANS BENEFITS 57 RECORDS AND INVESTIGATIONS 5725 38 U.S.C. § 5725 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc38@119-100.zip /us/usc/t38/s5725 data/legal/raw/us/code/title-38/usc38.xml 9d630f2d49d7441be7d021894ba14287d457b95e7fa3bdc7b1f5094fee66cfca 372998691b72ade88787dfa7633dbda4954bd1b037ec7926c5e06e9b1d17fc66 0eae41990062a990c9b8107daa2c015b94879eafdcabb1935b7abd705180b419 2026-07-04 official
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38 U.S.C. § 5725 - Contracts for data processing or maintenance

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.

(Added Pub. L. 109461, title IX, § 902(a), Dec. 22, 2006, 120 Stat. 3456.)