[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2521 Enrolled Bill (ENR)]
S.2521
One Hundred Thirteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and fourteen
An Act
To amend chapter 35 of title 44, United States Code, to provide for
reform to Federal information security.
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
Modernization Act of 2014''.
SEC. 2. FISMA REFORM.
(a) In General.--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;
``(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, including through automated
security tools to continuously diagnose and improve security;
``(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 infrastructures 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) In General.--Except as provided under subsection (b), the
definitions under section 3502 shall apply to this subchapter.
``(b) Additional Definitions.--As used in this subchapter:
``(1) The term `binding operational directive' means a
compulsory direction to an agency that--
``(A) is for purposes of safeguarding Federal information
and information systems from a known or reasonably suspected
information security threat, vulnerability, or risk;
``(B) shall be in accordance with policies, principles,
standards, and guidelines issued by the Director; and
``(C) may be revised or repealed by the Director if the
direction issued on behalf of the Director is not in accordance
with policies and principles developed by the Director.
``(2) The term `incident' means an occurrence that--
``(A) actually or imminently jeopardizes, without lawful
authority, the integrity, confidentiality, or availability of
information or an information system; or
``(B) constitutes a violation or imminent threat of
violation of law, security policies, security procedures, or
acceptable use policies.
``(3) 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.
``(4) The term `information technology' has the meaning given
that term in section 11101 of title 40.
``(5) The term `intelligence community' has the meaning given
that term in section 3(4) of the National Security Act of 1947 (50
U.S.C. 3003(4)).
``(6)(A) 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) 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).
``(7) The term `Secretary' means the Secretary of Homeland
Security.
``Sec. 3553. Authority and functions of the Director and the Secretary
``(a) Director.--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) ensuring that the Secretary carries out the authorities
and functions under subsection (b);
``(4) 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;
``(5) 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; and
``(6) coordinating information security policies and procedures
with related information resources management policies and
procedures.
``(b) Secretary.--The Secretary, in consultation with the Director,
shall administer the implementation of agency information security
policies and practices for information systems, except for national
security systems and information systems described in paragraph (2) or
(3) of subsection (e), including--
``(1) assisting the Director in carrying out the authorities
and functions under paragraphs (1), (2), (3), (5), and (6) of
subsection (a);
``(2) developing and overseeing the implementation of binding
operational directives to agencies to implement the policies,
principles, standards, and guidelines developed by the Director
under subsection (a)(1) and the requirements of this subchapter,
which may be revised or repealed by the Director if the operational
directives issued on behalf of the Director are not in accordance
with policies, principles, standards, and guidelines developed by
the Director, including--
``(A) requirements for reporting security incidents to the
Federal information security incident center established under
section 3556;
``(B) requirements for the contents of the annual reports
required to be submitted under section 3554(c)(1);
``(C) requirements for the mitigation of exigent risks to
information systems; and
``(D) other operational requirements as the Director or
Secretary, in consultation with the Director, may determine
necessary;
``(3) monitoring agency implementation of information security
policies and practices;
``(4) convening meetings with senior agency officials to help
ensure effective implementation of information security policies
and practices;
``(5) coordinating Government-wide efforts on information
security policies and practices, including consultation with the
Chief Information Officers Council established under section 3603
and the Director of the National Institute of Standards and
Technology;
``(6) providing operational and technical assistance to
agencies in implementing policies, principles, standards, and
guidelines on information security, including implementation of
standards promulgated under section 11331 of title 40, including
by--
``(A) operating the Federal information security incident
center established under section 3556;
``(B) upon request by an agency, deploying technology to
assist the agency to continuously diagnose and mitigate against
cyber threats and vulnerabilities, with or without
reimbursement;
``(C) compiling and analyzing data on agency information
security; and
``(D) developing and conducting targeted operational
evaluations, including threat and vulnerability assessments, on
the information systems; and
``(7) other actions as the Director or the Secretary, in
consultation with the Director, may determine necessary to carry
out this subsection.
``(c) Report.--Not later than March 1 of each year, the Director,
in consultation with the Secretary, shall submit to Congress a report
on the effectiveness of information security policies and practices
during the preceding year, including--
``(1) a summary of the incidents described in the annual
reports required to be submitted under section 3554(c)(1),
including a summary of the information required under section
3554(c)(1)(A)(iii);
``(2) a description of the threshold for reporting major
information security incidents;
``(3) a summary of the results of evaluations required to be
performed under section 3555;
``(4) an assessment of agency compliance with standards
promulgated under section 11331 of title 40; and
``(5) an assessment of agency compliance with data breach
notification policies and procedures issued by the Director.
``(d) National Security Systems.--Except for the authorities and
functions described in subsection (a)(5) and subsection (c), the
authorities and functions of the Director and the Secretary under this
section shall not apply to national security systems.
``(e) Department of Defense and Intelligence Community 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
National 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 an element of the intelligence community, a contractor of
an element of the intelligence community, or another entity on behalf
of an element of the intelligence community that processes any
information the unauthorized access, use, disclosure, disruption,
modification, or destruction of which would have a debilitating impact
on the mission of an element of the intelligence community.
``(f) Consideration.--
``(1) In general.--In carrying out the responsibilities under
subsection (b), the Secretary shall consider any applicable
standards or guidelines developed by the National Institute of
Standards and Technology and issued by the Secretary of Commerce
under section 11331 of title 40.
``(2) Directives.--The Secretary shall--
``(A) consult with the Director of the National Institute
of Standards and Technology regarding any binding operational
directive that implements standards and guidelines developed by
the National Institute of Standards and Technology; and
``(B) ensure that binding operational directives issued
under subsection (b)(2) do not conflict with the standards and
guidelines issued under section 11331 of title 40.
``(3) Rule of construction.--Nothing in this subchapter shall
be construed as authorizing the Secretary to direct the Secretary
of Commerce in the development and promulgation of standards and
guidelines under section 11331 of title 40.
``(g) Exercise of Authority.--To ensure fiscal and policy
consistency, the Secretary shall exercise the authority under this
section subject to direction by the President, in coordination with the
Director.
``Sec. 3554. Federal 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 promulgated under
section 11331 of title 40;
``(ii) operational directives developed by the
Secretary under section 3553(b);
``(iii) policies and procedures issued by the Director;
and
``(iv) information security standards and guidelines
for national security systems issued in accordance with law
and as directed by the President; and
``(C) ensuring that information security management
processes are integrated with agency strategic, operational,
and budgetary planning processes;
``(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 systems;
``(B) determining the levels of information security
appropriate to protect such information and information systems
in accordance with standards promulgated under section 11331 of
title 40, for information security classifications and related
requirements;
``(C) implementing policies and procedures to cost-
effectively reduce risks to an acceptable level; and
``(D) periodically testing and evaluating information
security controls and techniques to ensure that they are
effectively implemented;
``(3) delegate to the agency Chief Information Officer
established under section 3506 (or comparable official in an agency
not covered by such section) the authority to ensure compliance
with the requirements imposed on the agency under this subchapter,
including--
``(A) designating a senior agency information security
officer who shall--
``(i) carry out the Chief Information Officer's
responsibilities under this section;
``(ii) possess professional qualifications, including
training and experience, required to administer the
functions described under this section;
``(iii) have information security duties as that
official's primary duty; and
``(iv) head an office with the mission and resources to
assist in ensuring agency compliance with this section;
``(B) developing and maintaining an agencywide information
security program as required by subsection (b);
``(C) developing and maintaining information security
policies, procedures, and control techniques to address all
applicable requirements, including those issued under section
3553 of this title and 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 trained personnel sufficient
to assist the agency in complying with the requirements of this
subchapter and related policies, procedures, standards, and
guidelines;
``(5) ensure that the agency Chief Information Officer, in
coordination with other senior agency officials, reports annually
to the agency head on the effectiveness of the agency information
security program, including progress of remedial actions;
``(6) ensure that senior agency officials, including chief
information officers of component agencies or equivalent officials,
carry out responsibilities under this subchapter as directed by the
official delegated authority under paragraph (3); and
``(7) ensure that all personnel are held accountable for
complying with the agency-wide information security program
implemented under subsection (b).
``(b) Agency Program.--Each agency shall develop, document, and
implement an agency-wide information security program 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) periodic assessments of the risk and magnitude of the
harm that could result from the unauthorized access, use,
disclosure, disruption, modification, or destruction of information
and information systems that support the operations and assets of
the agency, which may include using automated tools consistent with
standards and guidelines promulgated under section 11331 of title
40;
``(2) policies and procedures that--
``(A) are based on the risk assessments required by
paragraph (1);
``(B) cost-effectively reduce information security risks to
an acceptable level;
``(C) ensure that information security is addressed
throughout the life cycle of each agency information system;
and
``(D) 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 under section 11331 of title 40;
``(iii) minimally acceptable system configuration
requirements, as determined by the agency; and
``(iv) any other applicable requirements, including
standards and guidelines for national security systems
issued in accordance with law and as directed by the
President;
``(3) subordinate plans for providing adequate information
security for networks, facilities, and systems or groups of
information systems, as appropriate;
``(4) security awareness training to inform personnel,
including contractors and other users of information systems that
support the operations and assets of the agency, of--
``(A) information security risks associated with their
activities; and
``(B) their responsibilities in complying with agency
policies and procedures designed to reduce these risks;
``(5) periodic testing and evaluation of the effectiveness of
information security policies, procedures, and practices, to be
performed with a frequency depending on risk, but no less than
annually, of which such testing--
``(A) shall include testing of management, operational, and
technical controls of every information system identified in
the inventory required under section 3505(c);
``(B) may include testing relied on in an evaluation under
section 3555; and
``(C) shall include using automated tools, consistent with
standards and guidelines promulgated under section 11331 of
title 40;
``(6) 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;
``(7) procedures for detecting, reporting, and responding to
security incidents, which--
``(A) shall be consistent with the standards and guidelines
described in section 3556(b);
``(B) may include using automated tools; and
``(C) shall include--
``(i) mitigating risks associated with such incidents
before substantial damage is done;
``(ii) notifying and consulting with the Federal
information security incident center established in section
3556; and
``(iii) notifying and consulting with, as appropriate--
``(I) law enforcement agencies and relevant Offices
of Inspector General and Offices of General Counsel;
``(II) an office designated by the President for
any incident involving a national security system;
``(III) for a major incident, the committees of
Congress described in subsection (c)(1)--
``(aa) not later than 7 days after the date on
which there is a reasonable basis to conclude that
the major incident has occurred; and
``(bb) after the initial notification under
item (aa), within a reasonable period of time after
additional information relating to the incident is
discovered, including the summary required under
subsection (c)(1)(A)(i); and
``(IV) any other agency or office, in accordance
with law or as directed by the President; and
``(8) plans and procedures to ensure continuity of operations
for information systems that support the operations and assets of
the agency.
``(c) Agency Reporting.--
``(1) Annual report.--
``(A) In general.--Each agency shall submit to the
Director, the Secretary, the Committee on Government Reform,
the Committee on Homeland Security, and the Committee on
Science of the House of Representatives, the Committee on
Homeland Security and Governmental Affairs and the Committee on
Commerce, Science, and Transportation of the Senate, the
appropriate authorization and appropriations committees of
Congress, and the Comptroller General a report on the adequacy
and effectiveness of information security policies, procedures,
and practices, including--
``(i) a description of each major information security
incident or related sets of incidents, including summaries
of--
``(I) the threats and threat actors,
vulnerabilities, and impacts relating to the incident;
``(II) the risk assessments conducted under section
3554(a)(2)(A) of the affected information systems
before the date on which the incident occurred;
``(III) the status of compliance of the affected
information systems with applicable security
requirements at the time of the incident; and
``(IV) the detection, response, and remediation
actions;
``(ii) the total number of information security
incidents, including a description of incidents resulting
in significant compromise of information security, system
impact levels, types of incident, and locations of affected
systems;
``(iii) a description of each major information
security incident that involved a breach of personally
identifiable information, as defined by the Director,
including--
``(I) the number of individuals whose information
was affected by the major information security
incident; and
``(II) a description of the information that was
breached or exposed; and
``(iv) any other information as the Director or the
Secretary, in consultation with the Director, may require.
``(B) Unclassified report.--
``(i) In general.--Each report submitted under
subparagraph (A) shall be in unclassified form, but may
include a classified annex.
``(ii) Access to information.--The head of an agency
shall ensure that, to the greatest extent practicable,
information is included in the unclassified version of the
reports submitted by the agency under subparagraph (A).
``(2) Other plans and reports.--Each agency shall address the
adequacy and effectiveness of information security policies,
procedures, and practices in management plans and reports.
``(d) Performance Plan.--(1) In addition to the requirements of
subsection (c), each agency, in consultation with the Director, shall
include as part of the performance plan required under section 1115 of
title 31 a description of--
``(A) the time periods; and
``(B) the resources, including budget, staffing, and training,
that are necessary to implement the program required under subsection
(b).
``(2) The description under paragraph (1) shall be based on the
risk assessments required under subsection (b)(1).
``(e) Public Notice and Comment.--Each agency shall provide the
public with timely notice and opportunities for comment on proposed
information security policies and procedures to the extent that such
policies and procedures affect communication with the public.
``Sec. 3555. Annual independent evaluation
``(a) In General.--(1) Each year each agency shall have performed
an independent evaluation of the information security program and
practices of that agency to determine the effectiveness of such program
and practices.
``(2) Each evaluation under this section shall include--
``(A) testing of the effectiveness of information security
policies, procedures, and practices of a representative subset of
the agency's information systems;
``(B) an assessment of the effectiveness of the information
security policies, procedures, and practices of the agency; and
``(C) separate presentations, as appropriate, regarding
information security relating to national security systems.
``(b) Independent Auditor.--Subject to subsection (c)--
``(1) for each agency with an Inspector General appointed under
the Inspector General Act of 1978, the annual evaluation required
by this section shall be performed by the Inspector General or by
an independent external auditor, as determined by the Inspector
General of the agency; and
``(2) for each agency to which paragraph (1) does not apply,
the head of the agency shall engage an independent external auditor
to perform the evaluation.
``(c) National Security Systems.--For each agency operating or
exercising control of a national security system, that portion of the
evaluation required by this section directly relating to a national
security system shall be performed--
``(1) only by an entity designated by the agency head; and
``(2) in such a manner as to ensure appropriate protection for
information associated with any information security vulnerability
in such system commensurate with the risk and in accordance with
all applicable laws.
``(d) Existing Evaluations.--The evaluation required by this
section may be based in whole or in part on an audit, evaluation, or
report relating to programs or practices of the applicable agency.
``(e) Agency Reporting.--(1) Each year, not later than such date
established by the Director, the head of each agency shall submit to
the Director the results of the evaluation required under this section.
``(2) To the extent an evaluation required under this section
directly relates to a national security system, the evaluation results
submitted to the Director shall contain only a summary and assessment
of that portion of the evaluation directly relating to a national
security system.
``(f) Protection of Information.--Agencies and evaluators shall
take appropriate steps to ensure the protection of information which,
if disclosed, may adversely affect information security. Such
protections shall be commensurate with the risk and comply with all
applicable laws and regulations.
``(g) OMB Reports to Congress.--(1) The Director shall summarize
the results of the evaluations conducted under this section in the
report to Congress required under section 3553(c).
``(2) The Director's report to Congress under this subsection shall
summarize information regarding information security relating to
national security systems in such a manner as to ensure appropriate
protection for information associated with any information security
vulnerability in such system commensurate with the risk and in
accordance with all applicable laws.
``(3) Evaluations and any other descriptions of information systems
under the authority and control of the Director of National
Intelligence or of National Foreign Intelligence Programs systems under
the authority and control of the Secretary of Defense shall be made
available to Congress only through the appropriate oversight committees
of Congress, in accordance with applicable laws.
``(h) Comptroller General.--The Comptroller General shall
periodically evaluate and report to Congress on--
``(1) the adequacy and effectiveness of agency information
security policies and practices; and
``(2) implementation of the requirements of this subchapter.
``(i) Assessment Technical Assistance.--The Comptroller General may
provide technical assistance to an Inspector General or the head of an
agency, as applicable, to assist the Inspector General or head of an
agency in carrying out the duties under this section, including by
testing information security controls and procedures.
``(j) Guidance.--The Director, in consultation with the Secretary,
the Chief Information Officers Council established under section 3603,
the Council of the Inspectors General on Integrity and Efficiency, and
other interested parties as appropriate, shall ensure the development
of guidance for evaluating the effectiveness of an information security
program and practices.
``Sec. 3556. Federal information security incident center
``(a) In General.--The Secretary 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;
``(4) provide, as appropriate, intelligence and other
information about cyber threats, vulnerabilities, and incidents to
agencies to assist in risk assessments conducted under section
3554(b); and
``(5) 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.
``Sec. 3557. 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. 3558. Effect on existing law
``Nothing in this subchapter, section 11331 of title 40, or section
20 of the National Standards and Technology Act (15 U.S.C. 278g-3) may
be construed as affecting the authority of the President, the Office of
Management and Budget or the Director thereof, the National Institute
of Standards and Technology, or the head of any agency, with respect to
the authorized use or disclosure of information, including with regard
to the protection of personal privacy under section 552a of title 5,
the disclosure of information under section 552 of title 5, the
management and disposition of records under chapters 29, 31, or 33 of
title 44, the management of information resources under subchapter I of
chapter 35 of this title, or the disclosure of information to the
Congress or the Comptroller General of the United States.''.
(b) Major Incident.--The Director of the Office of Management and
Budget shall--
(1) develop guidance on what constitutes a major incident for
purposes of section 3554(b) of title 44, United States Code, as
added by subsection (a); and
(2) provide to Congress periodic briefings on the status of the
developing of the guidance until the date on which the guidance is
issued.
(c) Continuous Diagnostics.--During the 2 year period beginning on
the date of enactment of this Act, the Director of the Office of
Management and Budget, with the assistance of the Secretary of Homeland
Security, shall include in each report submitted under section 3553(c)
of title 44, United States Code, as added by subsection (a), an
assessment of the adoption by agencies of continuous diagnostics
technologies, including through the Continuous Diagnostics and
Mitigation program, and other advanced security tools to provide
information security, including challenges to the adoption of such
technologies or security tools.
(d) Breaches.--
(1) Requirements.--The Director of the Office of Management and
Budget shall ensure that data breach notification policies and
guidelines are updated periodically and require--
(A) except as provided in paragraph (4), notice by the
affected agency to each committee of Congress described in
section 3554(c)(1) of title 44, United States Code, as added by
subsection (a), the Committee on the Judiciary of the Senate,
and the Committee on the Judiciary of the House of
Representatives, which shall--
(i) be provided expeditiously and not later than 30
days after the date on which the agency discovered the
unauthorized acquisition or access; and
(ii) include--
(I) information about the breach, including a
summary of any information that the agency knows on the
date on which notification is provided about how the
breach occurred;
(II) an estimate of the number of individuals
affected by the breach, based on information that the
agency knows on the date on which notification is
provided, including an assessment of the risk of harm
to affected individuals;
(III) a description of any circumstances
necessitating a delay in providing notice to affected
individuals; and
(IV) an estimate of whether and when the agency
will provide notice to affected individuals; and
(B) notice by the affected agency to affected individuals,
pursuant to data breach notification policies and guidelines,
which shall be provided as expeditiously as practicable and
without unreasonable delay after the agency discovers the
unauthorized acquisition or access.
(2) National security; law enforcement; remediation.--The
Attorney General, the head of an element of the intelligence
community (as such term is defined under section 3(4) of the
National Security Act of 1947 (50 U.S.C. 3003(4)), or the Secretary
of Homeland Security may delay the notice to affected individuals
under paragraph (1)(B) if the notice would disrupt a law
enforcement investigation, endanger national security, or hamper
security remediation actions.
(3) Reports.--
(A) Director of omb.--During the first 2 years beginning
after the date of enactment of this Act, the Director of the
Office of Management and Budget shall, on an annual basis--
(i) assess agency implementation of data breach
notification policies and guidelines in aggregate; and
(ii) include the assessment described in clause (i) in
the report required under section 3553(c) of title 44,
United States Code.
(B) Secretary of homeland security.--During the first 2
years beginning after the date of enactment of this Act, the
Secretary of Homeland Security shall include an assessment of
the status of agency implementation of data breach notification
policies and guidelines in the requirements under section
3553(b)(2)(B) of title 44, United States Code.
(4) Exception.--Any element of the intelligence community (as
such term is defined under section 3(4) of the National Security
Act of 1947 (50 U.S.C. 3003(4)) that is required to provide notice
under paragraph (1)(A) shall only provide such notice to
appropriate committees of Congress.
(5) Rule of construction.--Nothing in paragraph (1) shall be
construed to alter any authority of a Federal agency or department.
(e) Technical and Conforming Amendments.--
(1) Table of sections.--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
``3551. Purposes.
``3552. Definitions.
``3553. Authority and functions of the Director and the Secretary.
``3554. Federal agency responsibilities.
``3555. Annual independent evaluation.
``3556. Federal information security incident center.
``3557. National security systems.
``3558. Effect on existing law.''.
(2) Cybersecurity research and development act.--Section
8(d)(1) of the Cybersecurity Research and Development Act (15
U.S.C. 7406) is amended by striking ``section 3534'' and inserting
``section 3554''.
(3) Homeland security act of 2002.--The Homeland Security Act
of 2002 (6 U.S.C. 101 et seq.) is amended--
(A) in section 223 (6 U.S.C. 143)
(i) in the section heading, by inserting ``federal
and'' before ``non-federal'';
(ii) in the matter preceding paragraph (1), by striking
``the Under Secretary for Intelligence and Analysis, in
cooperation with the Assistant Secretary for Infrastructure
Protection'' and inserting ``the Under Secretary appointed
under section 103(a)(1)(H)'';
(iii) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(iv) by adding at the end the following:
``(3) fulfill the responsibilities of the Secretary to protect
Federal information systems under subchapter II of chapter 35 of
title 44, United States Code.'';
(B) in section 1001(c)(1)(A) (6 U.S.C. 511(c)(1)(A)), by
striking ``section 3532(3)'' and inserting ``section
3552(b)(5)''; and
(C) in the table of contents in section 1(b), by striking
the item relating to section 223 and inserting the following:
``Sec. 223. Enhancement of Federal and non-Federal cybersecurity.''.
(4) National institute of standards and technology act.--
Section 20 of the National Institute of Standards and Technology
Act (15 U.S.C. 278g-3) is amended--
(A) in subsection (a)(2), by striking ``section
3532(b)(2)'' and inserting ``section 3552(b)(5)''; and
(B) in subsection (e)--
(i) in paragraph (2), by striking ``section 3532(1)''
and inserting ``section 3552(b)(2)''; and
(ii) in paragraph (5), by striking ``section
3532(b)(2)'' and inserting ``section 3552(b)(5)''.
(5) Title 10.--Title 10, United States Code, is amended--
(A) in section 2222(j)(5), by striking ``section
3542(b)(2)'' and inserting ``section 3552(b)(5)'';
(B) in section 2223(c)(3), by striking ``section
3542(b)(2)'' and inserting ``section 3552(b)(5)''; and
(C) in section 2315, by striking ``section 3542(b)(2)'' and
inserting ``section 3552(b)(5)''.
(f) Other Provisions.--
(1) Circular a-130.--Not later than 1 year after the date of
enactment of this Act, the Director of the Office of Management and
Budget shall amend or revise Office of Management and Budget
Circular A-130 to eliminate inefficient or wasteful reporting. The
Director of the Office of Management and Budget shall provide
quarterly briefings to Congress on the status of the amendment or
revision required under this paragraph.
(2) ISPAB.--Section 21(b) of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-4(b)) is amended--
(A) in paragraph (2), by inserting ``, the Secretary of
Homeland Security,'' after ``the Institute''; and
(B) in paragraph (3), by inserting ``the Secretary of
Homeland Security,'' after ``the Secretary of Commerce,''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.