[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4257 Referred in Senate (RFS)]

112th CONGRESS
  2d Session
                                H. R. 4257


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 7, 2012

Received; read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 AN ACT


 
    To amend chapter 35 of title 44, United States Code, to revise 
 requirements relating to Federal information security, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Information Security 
Amendments Act of 2012''.

SEC. 2. COORDINATION OF FEDERAL INFORMATION POLICY.

    Chapter 35 of title 44, United States Code, is amended by striking 
subchapters II and III and inserting the following:

                 ``SUBCHAPTER II--INFORMATION SECURITY

``Sec. 3551. Purposes
    ``The purposes of this subchapter are to--
            ``(1) provide a comprehensive framework for ensuring the 
        effectiveness of information security controls over information 
        resources that support Federal operations and assets;
            ``(2) recognize the highly networked nature of the current 
        Federal computing environment and provide effective 
        Governmentwide management and oversight of the related 
        information security risks, including coordination of 
        information security efforts throughout the civilian, national 
        security, and law enforcement communities assets;
            ``(3) provide for development and maintenance of minimum 
        controls required to protect Federal information and 
        information systems;
            ``(4) provide a mechanism for improved oversight of Federal 
        agency information security programs and systems through a 
        focus on automated and continuous monitoring of agency 
        information systems and regular threat assessments;
            ``(5) acknowledge that commercially developed information 
        security products offer advanced, dynamic, robust, and 
        effective information security solutions, reflecting market 
        solutions for the protection of critical information systems 
        important to the national defense and economic security of the 
        Nation that are designed, built, and operated by the private 
        sector; and
            ``(6) recognize that the selection of specific technical 
        hardware and software information security solutions should be 
        left to individual agencies from among commercially developed 
        products.
``Sec. 3552. Definitions
    ``(a) Section 3502 Definitions.--Except as provided under 
subsection (b), the definitions under section 3502 shall apply to this 
subchapter.
    ``(b) Additional Definitions.--In this subchapter:
            ``(1) Adequate security.--The term `adequate security' 
        means security commensurate with the risk and magnitude of the 
        harm resulting from the unauthorized access to or loss, misuse, 
        destruction, or modification of information.
            ``(2) Automated and continuous monitoring.--The term 
        `automated and continuous monitoring' means monitoring, with 
        minimal human involvement, through an uninterrupted, ongoing 
        real time, or near real-time process used to determine if the 
        complete set of planned, required, and deployed security 
        controls within an information system continue to be effective 
        over time with rapidly changing information technology and 
        threat development.
            ``(3) Incident.--The term `incident' means an occurrence 
        that actually or potentially jeopardizes the confidentiality, 
        integrity, or availability of an information system, or the 
        information the system processes, stores, or transmits or that 
        constitutes a violation or imminent threat of violation of 
        security policies, security procedures, or acceptable use 
        policies.
            ``(4) Information security.--The term `information 
        security' means protecting information and information systems 
        from unauthorized access, use, disclosure, disruption, 
        modification, or destruction in order to provide--
                    ``(A) integrity, which means guarding against 
                improper information modification or destruction, and 
                includes ensuring information nonrepudiation and 
                authenticity;
                    ``(B) confidentiality, which means preserving 
                authorized restrictions on access and disclosure, 
                including means for protecting personal privacy and 
                proprietary information; and
                    ``(C) availability, which means ensuring timely and 
                reliable access to and use of information.
            ``(5) Information system.--The term `information system' 
        means a discrete set of information resources organized for the 
        collection, processing, maintenance, use, sharing, 
        dissemination, or disposition of information and includes--
                    ``(A) computers and computer networks;
                    ``(B) ancillary equipment;
                    ``(C) software, firmware, and related procedures;
                    ``(D) services, including support services; and
                    ``(E) related resources.
            ``(6) Information technology.--The term `information 
        technology' has the meaning given that term in section 11101 of 
        title 40.
            ``(7) National security system.--
                    ``(A) Definition.--The term `national security 
                system' means any information system (including any 
                telecommunications system) used or operated by an 
                agency or by a contractor of an agency, or other 
                organization on behalf of an agency--
                            ``(i) the function, operation, or use of 
                        which--
                                    ``(I) involves intelligence 
                                activities;
                                    ``(II) involves cryptologic 
                                activities related to national 
                                security;
                                    ``(III) involves command and 
                                control of military forces;
                                    ``(IV) involves equipment that is 
                                an integral part of a weapon or weapons 
                                system; or
                                    ``(V) subject to subparagraph (B), 
                                is critical to the direct fulfillment 
                                of military or intelligence missions; 
                                or
                            ``(ii) is protected at all times by 
                        procedures established for information that 
                        have been specifically authorized under 
                        criteria established by an Executive order or 
                        an Act of Congress to be kept classified in the 
                        interest of national defense or foreign policy.
                    ``(B) Exception.--Subparagraph (A)(i)(V) does not 
                include a system that is to be used for routine 
                administrative and business applications (including 
                payroll, finance, logistics, and personnel management 
                applications).
            ``(8) Threat assessment.--The term `threat assessment' 
        means the formal description and evaluation of threat to an 
        information system.
``Sec. 3553. Authority and functions of the Director
    ``(a) In General.--The Director shall oversee agency information 
security policies and practices, including--
            ``(1) developing and overseeing the implementation of 
        policies, principles, standards, and guidelines on information 
        security, including through ensuring timely agency adoption of 
        and compliance with standards promulgated under section 11331 
        of title 40;
            ``(2) requiring agencies, consistent with the standards 
        promulgated under such section 11331 and the requirements of 
        this subchapter, to identify and provide information security 
        protections commensurate with the risk and magnitude of the 
        harm resulting from the unauthorized access, use, disclosure, 
        disruption, modification, or destruction of--
                    ``(A) information collected or maintained by or on 
                behalf of an agency; or
                    ``(B) information systems used or operated by an 
                agency or by a contractor of an agency or other 
                organization on behalf of an agency;
            ``(3) coordinating the development of standards and 
        guidelines under section 20 of the National Institute of 
        Standards and Technology Act (15 U.S.C. 278g-3) with agencies 
        and offices operating or exercising control of national 
        security systems (including the National Security Agency) to 
        assure, to the maximum extent feasible, that such standards and 
        guidelines are complementary with standards and guidelines 
        developed for national security systems;
            ``(4) overseeing agency compliance with the requirements of 
        this subchapter, including through any authorized action under 
        section 11303 of title 40, to enforce accountability for 
        compliance with such requirements;
            ``(5) reviewing at least annually, and approving or 
        disapproving, agency information security programs required 
        under section 3554(b);
            ``(6) coordinating information security policies and 
        procedures with related information resources management 
        policies and procedures;
            ``(7) overseeing the operation of the Federal information 
        security incident center required under section 3555; and
            ``(8) reporting to Congress no later than March 1 of each 
        year on agency compliance with the requirements of this 
        subchapter, including--
                    ``(A) an assessment of the development, 
                promulgation, and adoption of, and compliance with, 
                standards developed under section 20 of the National 
                Institute of Standards and Technology Act (15 U.S.C. 
                278g-3) and promulgated under section 11331 of title 
                40;
                    ``(B) significant deficiencies in agency 
                information security practices;
                    ``(C) planned remedial action to address such 
                deficiencies; and
                    ``(D) a summary of, and the views of the Director 
                on, the report prepared by the National Institute of 
                Standards and Technology under section 20(d)(10) of the 
                National Institute of Standards and Technology Act (15 
                U.S.C. 278g-3).
    ``(b) National Security Systems.--Except for the authorities 
described in paragraphs (4) and (8) of subsection (a), the authorities 
of the Director under this section shall not apply to national security 
systems.
    ``(c) Department of Defense and Central Intelligence Agency 
Systems.--(1) The authorities of the Director described in paragraphs 
(1) and (2) of subsection (a) shall be delegated to the Secretary of 
Defense in the case of systems described in paragraph (2) and to the 
Director of Central Intelligence in the case of systems described in 
paragraph (3).
    ``(2) The systems described in this paragraph are systems that are 
operated by the Department of Defense, a contractor of the Department 
of Defense, or another entity on behalf of the Department of Defense 
that processes any information the unauthorized access, use, 
disclosure, disruption, modification, or destruction of which would 
have a debilitating impact on the mission of the Department of Defense.
    ``(3) The systems described in this paragraph are systems that are 
operated by the Central Intelligence Agency, a contractor of the 
Central Intelligence Agency, or another entity on behalf of the Central 
Intelligence Agency that processes any information the unauthorized 
access, use, disclosure, disruption, modification, or destruction of 
which would have a debilitating impact on the mission of the Central 
Intelligence Agency.
``Sec. 3554. Agency responsibilities
    ``(a) In General.--The head of each agency shall--
            ``(1) be responsible for--
                    ``(A) providing information security protections 
                commensurate with the risk and magnitude of the harm 
                resulting from unauthorized access, use, disclosure, 
                disruption, modification, or destruction of--
                            ``(i) information collected or maintained 
                        by or on behalf of the agency; and
                            ``(ii) information systems used or operated 
                        by an agency or by a contractor of an agency or 
                        other organization on behalf of an agency;
                    ``(B) complying with the requirements of this 
                subchapter and related policies, procedures, standards, 
                and guidelines, including--
                            ``(i) information security standards and 
                        guidelines promulgated under section 11331 of 
                        title 40 and section 20 of the National 
                        Institute of Standards and Technology Act (15 
                        U.S.C. 278g-3);
                            ``(ii) information security standards and 
                        guidelines for national security systems issued 
                        in accordance with law and as directed by the 
                        President; and
                            ``(iii) ensuring the standards implemented 
                        for information systems and national security 
                        systems of the agency are complementary and 
                        uniform, to the extent practicable;
                    ``(C) ensuring that information security management 
                processes are integrated with agency strategic and 
                operational planning and budget processes, including 
                policies, procedures, and practices described in 
                subsection (c)(2);
                    ``(D) as appropriate, maintaining secure facilities 
                that have the capability of accessing, sending, 
                receiving, and storing classified information;
                    ``(E) maintaining a sufficient number of personnel 
                with security clearances, at the appropriate levels, to 
                access, send, receive and analyze classified 
                information to carry out the responsibilities of this 
                subchapter; and
                    ``(F) ensuring that information security 
                performance indicators and measures are included in the 
                annual performance evaluations of all managers, senior 
                managers, senior executive service personnel, and 
                political appointees;
            ``(2) ensure that senior agency officials provide 
        information security for the information and information 
        systems that support the operations and assets under their 
        control, including through--
                    ``(A) assessing the risk and magnitude of the harm 
                that could result from the unauthorized access, use, 
                disclosure, disruption, modification, or destruction of 
                such information or information system;
                    ``(B) determining the levels of information 
                security appropriate to protect such information and 
                information systems in accordance with policies, 
                principles, standards, and guidelines promulgated under 
                section 11331 of title 40 and section 20 of the 
                National Institute of Standards and Technology Act (15 
                U.S.C. 278g-3) for information security classifications 
                and related requirements;
                    ``(C) implementing policies and procedures to cost 
                effectively reduce risks to an acceptable level;
                    ``(D) with a frequency sufficient to support risk-
                based security decisions, testing and evaluating 
                information security controls and techniques to ensure 
                that such controls and techniques are effectively 
                implemented and operated; and
                    ``(E) with a frequency sufficient to support risk-
                based security decisions, conducting threat assessments 
                by monitoring information systems, identifying 
                potential system vulnerabilities, and reporting 
                security incidents in accordance with paragraph 
                (3)(A)(v);
            ``(3) delegate to the Chief Information Officer or 
        equivalent (or a senior agency official who reports to the 
        Chief Information Officer or equivalent), who is designated as 
        the `Chief Information Security Officer', the authority and 
        primary responsibility to develop, implement, and oversee an 
        agencywide information security program to ensure and enforce 
        compliance with the requirements imposed on the agency under 
        this subchapter, including--
                    ``(A) overseeing the establishment and maintenance 
                of a security operations capability that through 
                automated and continuous monitoring, when possible, 
                can--
                            ``(i) detect, report, respond to, contain, 
                        and mitigate incidents that impair information 
                        security and agency information systems, in 
                        accordance with policy provided by the 
                        Director;
                            ``(ii) commensurate with the risk to 
                        information security, monitor and mitigate the 
                        vulnerabilities of every information system 
                        within the agency;
                            ``(iii) continually evaluate risks posed to 
                        information collected or maintained by or on 
                        behalf of the agency and information systems 
                        and hold senior agency officials accountable 
                        for ensuring information security;
                            ``(iv) collaborate with the Director and 
                        appropriate public and private sector security 
                        operations centers to detect, report, respond 
                        to, contain, and mitigate incidents that impact 
                        the security of information and information 
                        systems that extend beyond the control of the 
                        agency; and
                            ``(v) report any incident described under 
                        clauses (i) and (ii) to the Federal information 
                        security incident center, to other appropriate 
                        security operations centers, and to the 
                        Inspector General of the agency, to the extent 
                        practicable, within 24 hours after discovery of 
                        the incident, but no later than 48 hours after 
                        such discovery;
                    ``(B) developing, maintaining, and overseeing an 
                agencywide information security program as required by 
                subsection (b);
                    ``(C) developing, maintaining, and overseeing 
                information security policies, procedures, and control 
                techniques to address all applicable requirements, 
                including those issued under section 11331 of title 40;
                    ``(D) training and overseeing personnel with 
                significant responsibilities for information security 
                with respect to such responsibilities; and
                    ``(E) assisting senior agency officials concerning 
                their responsibilities under paragraph (2);
            ``(4) ensure that the agency has a sufficient number of 
        trained and cleared personnel to assist the agency in complying 
        with the requirements of this subchapter, other applicable 
        laws, and related policies, procedures, standards, and 
        guidelines;
            ``(5) ensure that the Chief Information Security Officer, 
        in consultation with other senior agency officials, reports 
        periodically, but not less than annually, to the agency head 
        on--
                    ``(A) the effectiveness of the agency information 
                security program;
                    ``(B) information derived from automated and 
                continuous monitoring, when possible, and threat 
                assessments; and
                    ``(C) the progress of remedial actions;
            ``(6) ensure that the Chief Information Security Officer 
        possesses the necessary qualifications, including education, 
        training, experience, and the security clearance required to 
        administer the functions described under this subchapter; and 
        has information security duties as the primary duty of that 
        official; and
            ``(7) ensure that components of that agency establish and 
        maintain an automated reporting mechanism that allows the Chief 
        Information Security Officer with responsibility for the entire 
        agency, and all components thereof, to implement, monitor, and 
        hold senior agency officers accountable for the implementation 
        of appropriate security policies, procedures, and controls of 
        agency components.
    ``(b) Agency Program.--Each agency shall develop, document, and 
implement an agencywide information security program, approved by the 
Director and consistent with components across and within agencies, to 
provide information security for the information and information 
systems that support the operations and assets of the agency, including 
those provided or managed by another agency, contractor, or other 
source, that includes--
            ``(1) automated and continuous monitoring, when possible, 
        of the risk and magnitude of the harm that could result from 
        the disruption or unauthorized access, use, disclosure, 
        modification, or destruction of information and information 
        systems that support the operations and assets of the agency;
            ``(2) consistent with guidance developed under section 
        11331 of title 40, vulnerability assessments and penetration 
        tests commensurate with the risk posed to agency information 
        systems;
            ``(3) policies and procedures that--
                    ``(A) cost effectively reduce information security 
                risks to an acceptable level;
                    ``(B) ensure compliance with--
                            ``(i) the requirements of this subchapter;
                            ``(ii) policies and procedures as may be 
                        prescribed by the Director, and information 
                        security standards promulgated pursuant to 
                        section 11331 of title 40;
                            ``(iii) minimally acceptable system 
                        configuration requirements, as determined by 
                        the Director; and
                            ``(iv) any other applicable requirements, 
                        including--
                                    ``(I) standards and guidelines for 
                                national security systems issued in 
                                accordance with law and as directed by 
                                the President; and
                                    ``(II) the National Institute of 
                                Standards and Technology standards and 
                                guidance;
                    ``(C) develop, maintain, and oversee information 
                security policies, procedures, and control techniques 
                to address all applicable requirements, including those 
                promulgated pursuant section 11331 of title 40; and
                    ``(D) ensure the oversight and training of 
                personnel with significant responsibilities for 
                information security with respect to such 
                responsibilities;
            ``(4) with a frequency sufficient to support risk-based 
        security decisions, automated and continuous monitoring, when 
        possible, for testing and evaluation of the effectiveness and 
        compliance of information security policies, procedures, and 
        practices, including--
                    ``(A) controls of every information system 
                identified in the inventory required under section 
                3505(c); and
                    ``(B) controls relied on for an evaluation under 
                this section;
            ``(5) a process for planning, implementing, evaluating, and 
        documenting remedial action to address any deficiencies in the 
        information security policies, procedures, and practices of the 
        agency;
            ``(6) with a frequency sufficient to support risk-based 
        security decisions, automated and continuous monitoring, when 
        possible, for detecting, reporting, and responding to security 
        incidents, consistent with standards and guidelines issued by 
        the National Institute of Standards and Technology, including--
                    ``(A) mitigating risks associated with such 
                incidents before substantial damage is done;
                    ``(B) notifying and consulting with the Federal 
                information security incident center and other 
                appropriate security operations response centers; and
                    ``(C) notifying and consulting with, as 
                appropriate--
                            ``(i) law enforcement agencies and relevant 
                        Offices of Inspectors General; and
                            ``(ii) any other agency, office, or entity, 
                        in accordance with law or as directed by the 
                        President; and
            ``(7) plans and procedures to ensure continuity of 
        operations for information systems that support the operations 
        and assets of the agency.
    ``(c) Agency Reporting.--Each agency shall--
            ``(1) submit an annual report on the adequacy and 
        effectiveness of information security policies, procedures, and 
        practices, and compliance with the requirements of this 
        subchapter, including compliance with each requirement of 
        subsection (b) to--
                    ``(A) the Director;
                    ``(B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    ``(C) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    ``(D) other appropriate authorization and 
                appropriations committees of Congress; and
                    ``(E) the Comptroller General;
            ``(2) address the adequacy and effectiveness of information 
        security policies, procedures, and practices in plans and 
        reports relating to--
                    ``(A) annual agency budgets;
                    ``(B) information resources management of this 
                subchapter;
                    ``(C) information technology management under this 
                chapter;
                    ``(D) program performance under sections 1105 and 
                1115 through 1119 of title 31, and sections 2801 and 
                2805 of title 39;
                    ``(E) financial management under chapter 9 of title 
                31, and the Chief Financial Officers Act of 1990 (31 
                U.S.C. 501 note; Public Law 101-576);
                    ``(F) financial management systems under the 
                Federal Financial Management Improvement Act of 1996 
                (31 U.S.C. 3512 note); and
                    ``(G) internal accounting and administrative 
                controls under section 3512 of title 31; and
            ``(3) report any significant deficiency in a policy, 
        procedure, or practice identified under paragraph (1) or (2)--
                    ``(A) as a material weakness in reporting under 
                section 3512 of title 31; and
                    ``(B) if relating to financial management systems, 
                as an instance of a lack of substantial compliance 
                under the Federal Financial Management Improvement Act 
                of 1996 (31 U.S.C. 3512 note).
``Sec. 3555. Federal information security incident center
    ``(a) In General.--The Director shall ensure the operation of a 
central Federal information security incident center to--
            ``(1) provide timely technical assistance to operators of 
        agency information systems regarding security incidents, 
        including guidance on detecting and handling information 
        security incidents;
            ``(2) compile and analyze information about incidents that 
        threaten information security;
            ``(3) inform operators of agency information systems about 
        current and potential information security threats, and 
        vulnerabilities; and
            ``(4) consult with the National Institute of Standards and 
        Technology, agencies or offices operating or exercising control 
        of national security systems (including the National Security 
        Agency), and such other agencies or offices in accordance with 
        law and as directed by the President regarding information 
        security incidents and related matters.
    ``(b) National Security Systems.--Each agency operating or 
exercising control of a national security system shall share 
information about information security incidents, threats, and 
vulnerabilities with the Federal information security incident center 
to the extent consistent with standards and guidelines for national 
security systems, issued in accordance with law and as directed by the 
President.
    ``(c) Review and Approval.--The Director shall review and approve 
the policies, procedures, and guidance established in this subchapter 
to ensure that the incident center has the capability to effectively 
and efficiently detect, correlate, respond to, contain, mitigate, and 
remediate incidents that impair the adequate security of the 
information systems of more than one agency. To the extent practicable, 
the capability shall be continuous and technically automated.
``Sec. 3556. National security systems
    ``The head of each agency operating or exercising control of a 
national security system shall be responsible for ensuring that the 
agency--
            ``(1) provides information security protections 
        commensurate with the risk and magnitude of the harm resulting 
        from the unauthorized access, use, disclosure, disruption, 
        modification, or destruction of the information contained in 
        such system;
            ``(2) implements information security policies and 
        practices as required by standards and guidelines for national 
        security systems, issued in accordance with law and as directed 
        by the President; and
            ``(3) complies with the requirements of this subchapter.''.

SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Table of Sections in Title 44.--The table of sections for 
chapter 35 of title 44, United States Code, is amended by striking the 
matter relating to subchapters II and III and inserting the following:

                  ``subchapter ii--information security

``Sec.
``3551. Purposes.
``3552. Definitions.
``3553. Authority and functions of the Director.
``3554. Agency responsibilities.
``3555. Federal information security incident center.
``3556. National security systems.''.
    (b) Other References.--
            (1) Section 1001(c)(1)(A) of the Homeland Security Act of 
        2002 (6 U.S.C. 511(c)(1)(A)) is amended by striking ``section 
        3532(3)'' and inserting ``section 3552(b)''.
            (2) Section 2222(j)(5) of title 10, United States Code, is 
        amended by striking ``section 3542(b)(2)'' and inserting 
        ``section 3552(b)''.
            (3) Section 2223(c)(3) of title 10, United States Code, is 
        amended, by striking ``section 3542(b)(2)'' and inserting 
        ``section 3552(b)''.
            (4) Section 2315 of title 10, United States Code, is 
        amended by striking ``section 3542(b)(2)'' and inserting 
        ``section 3552(b)''.
            (5) Section 20 of the National Institute of Standards and 
        Technology Act (15 U.S.C. 278g-3) is amended--
                    (A) in subsections (a)(2) and (e)(5), by striking 
                ``section 3532(b)(2)'' and inserting ``section 
                3552(b)''; and
                    (B) in subsection (e)(2), by striking ``section 
                3532(1)'' and inserting ``section 3552(b)''.
            (6) Section 8(d)(1) of the Cyber Security Research and 
        Development Act (15 U.S.C. 7406(d)(1)) is amended by striking 
        ``section 3534(b)'' and inserting ``section 3554(b)''.

SEC. 4. NO ADDITIONAL FUNDS AUTHORIZED.

    No additional funds are authorized to carry out the requirements of 
section 3554 of title 44, United States Code, as amended by section 2 
of this Act. Such requirements shall be carried out using amounts 
otherwise authorized or appropriated.

SEC. 5. EFFECTIVE DATE.

    This Act (including the amendments made by this Act) shall take 
effect 30 days after the date of the enactment of this Act.

            Passed the House of Representatives April 26, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.