[Congressional Record Volume 160, Number 150 (Wednesday, December 10, 2014)]
[House]
[Pages H8994-H8998]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FEDERAL INFORMATION SECURITY MODERNIZATION ACT OF 2014
Mr. MEADOWS. Mr. Speaker, I ask unanimous consent to take from the
Speaker's table the bill (S. 2521) to amend chapter 35 of title 44,
United States Code, to provide for reform to Federal information
security, and ask for its immediate consideration in the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from North Carolina?
There was no objection.
The text of the bill is as follows:
S. 2521
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
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``(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;
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``(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
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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
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(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,''.
The bill was ordered to be read a third time, was read the third
time, and passed, and a motion to reconsider was laid on the table.
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