[Congressional Record Volume 161, Number 91 (Tuesday, June 9, 2015)]
[Senate]
[Pages S3951-S3956]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1921. Mr. BURR (for himself and Mr. McCain) proposed an amendment 
to amendment SA 1569 proposed by Mr. Burr (for himself and Mrs. Boxer) 
to the amendment SA 1463 proposed by Mr. McCain to the bill H.R. 1735, 
to authorize appropriations for fiscal year 2016 for military 
activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy, to prescribe 
military personnel strengths for such fiscal year, and for other 
purposes; as follows:

       Strike line 2 and all that follows and insert the 
     following:

             TITLE XVII--CYBERSECURITY INFORMATION SHARING

     SECTION 1701. SHORT TITLE.

       This title may be cited as the ``Cybersecurity Information 
     Sharing Act of 2015''.

     SEC. 1702. DEFINITIONS.

       In this title:
       (1) Agency.--The term ``agency'' has the meaning given the 
     term in section 3502 of title 44, United States Code.
       (2) Antitrust laws.--The term ``antitrust laws''--
       (A) has the meaning given the term in section 1 of the 
     Clayton Act (15 U.S.C. 12);
       (B) includes section 5 of the Federal Trade Commission Act 
     (15 U.S.C. 45) to the extent that section 5 of that Act 
     applies to unfair methods of competition; and
       (C) includes any State law that has the same intent and 
     effect as the laws under subparagraphs (A) and (B).
       (3) Appropriate federal entities.--The term ``appropriate 
     Federal entities'' means the following:
       (A) The Department of Commerce.
       (B) The Department of Defense.
       (C) The Department of Energy.
       (D) The Department of Homeland Security.
       (E) The Department of Justice.
       (F) The Department of the Treasury.
       (G) The Office of the Director of National Intelligence.
       (4) Cybersecurity purpose.--The term ``cybersecurity 
     purpose'' means the purpose of protecting an information 
     system or information that is stored on, processed by, or 
     transiting an information system from a cybersecurity threat 
     or security vulnerability.
       (5) Cybersecurity threat.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``cybersecurity threat'' means an action, not 
     protected by the First Amendment to the Constitution of the 
     United States, on or through an information system that may 
     result in an unauthorized effort to adversely impact the 
     security, availability, confidentiality, or integrity of an 
     information system or information that is stored on, 
     processed by, or transiting an information system.
       (B) Exclusion.--The term ``cybersecurity threat'' does not 
     include any action that solely involves a violation of a 
     consumer term of service or a consumer licensing agreement.
       (6) Cyber threat indicator.--The term ``cyber threat 
     indicator'' means information that is necessary to describe 
     or identify--
       (A) malicious reconnaissance, including anomalous patterns 
     of communications that appear to be transmitted for the 
     purpose of gathering technical information related to a 
     cybersecurity threat or security vulnerability;
       (B) a method of defeating a security control or 
     exploitation of a security vulnerability;
       (C) a security vulnerability, including anomalous activity 
     that appears to indicate the existence of a security 
     vulnerability;
       (D) a method of causing a user with legitimate access to an 
     information system or information that is stored on, 
     processed by, or transiting an information system to 
     unwittingly enable the defeat of a security control or 
     exploitation of a security vulnerability;
       (E) malicious cyber command and control;
       (F) the actual or potential harm caused by an incident, 
     including a description of the information exfiltrated as a 
     result of a particular cybersecurity threat;
       (G) any other attribute of a cybersecurity threat, if 
     disclosure of such attribute is not otherwise prohibited by 
     law; or
       (H) any combination thereof.
       (7) Defensive measure.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``defensive measure'' means an action, device, 
     procedure, signature, technique, or other measure applied to 
     an information system or information that is stored on, 
     processed by, or transiting an information system that 
     detects, prevents, or mitigates a known or suspected 
     cybersecurity threat or security vulnerability.
       (B) Exclusion.--The term ``defensive measure'' does not 
     include a measure that destroys, renders unusable, or 
     substantially harms an information system or data on an 
     information system not belonging to--
       (i) the private entity operating the measure; or
       (ii) another entity or Federal entity that is authorized to 
     provide consent and has provided consent to that private 
     entity for operation of such measure.
       (8) Entity.--
       (A) In general.--Except as otherwise provided in this 
     paragraph, the term ``entity'' means any private entity, non-
     Federal government agency or department, or State, tribal, or 
     local government (including a political subdivision, 
     department, or component thereof).
       (B) Inclusions.--The term ``entity'' includes a government 
     agency or department of the District of Columbia, the 
     Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
     American Samoa, the Northern Mariana Islands, and any other 
     territory or possession of the United States.
       (C) Exclusion.--The term ``entity'' does not include a 
     foreign power as defined in section 101 of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801).
       (9) Federal entity.--The term ``Federal entity'' means a 
     department or agency of the United States or any component of 
     such department or agency.
       (10) Information system.--The term ``information system''--
       (A) has the meaning given the term in section 3502 of title 
     44, United States Code; and
       (B) includes industrial control systems, such as 
     supervisory control and data acquisition systems, distributed 
     control systems, and programmable logic controllers.
       (11) Local government.--The term ``local government'' means 
     any borough, city, county, parish, town, township, village, 
     or other political subdivision of a State.
       (12) Malicious cyber command and control.--The term 
     ``malicious cyber command and control'' means a method for 
     unauthorized remote identification of, access to, or use of, 
     an information system or information that is stored on, 
     processed by, or transiting an information system.
       (13) Malicious reconnaissance.--The term ``malicious 
     reconnaissance'' means a method for actively probing or 
     passively monitoring an information system for the purpose of 
     discerning security vulnerabilities of the information 
     system, if such method is associated with a known or 
     suspected cybersecurity threat.
       (14) Monitor.--The term ``monitor'' means to acquire, 
     identify, or scan, or to possess, information that is stored 
     on, processed by, or transiting an information system.
       (15) Private entity.--
       (A) In general.--Except as otherwise provided in this 
     paragraph, the term ``private entity'' means any person or 
     private group, organization, proprietorship, partnership, 
     trust, cooperative, corporation, or other commercial or 
     nonprofit entity, including an officer, employee, or agent 
     thereof.
       (B) Inclusion.--The term ``private entity'' includes a 
     State, tribal, or local government performing electric 
     utility services.
       (C) Exclusion.--The term ``private entity'' does not 
     include a foreign power as defined in section 101 of the 
     Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
     1801).
       (16) Security control.--The term ``security control'' means 
     the management, operational, and technical controls used to 
     protect against an unauthorized effort to adversely affect 
     the confidentiality, integrity, and availability of an 
     information system or its information.
       (17) Security vulnerability.--The term ``security 
     vulnerability'' means any attribute of hardware, software, 
     process, or procedure that could enable or facilitate the 
     defeat of a security control.
       (18) Tribal.--The term ``tribal'' has the meaning given the 
     term ``Indian tribe'' in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).

     SEC. 1703. SHARING OF INFORMATION BY THE FEDERAL GOVERNMENT.

       (a) In General.--Consistent with the protection of 
     classified information, intelligence sources and methods, and 
     privacy

[[Page S3952]]

     and civil liberties, the Director of National Intelligence, 
     the Secretary of Homeland Security, the Secretary of Defense, 
     and the Attorney General, in consultation with the heads of 
     the appropriate Federal entities, shall develop and 
     promulgate procedures to facilitate and promote--
       (1) the timely sharing of classified cyber threat 
     indicators in the possession of the Federal Government with 
     cleared representatives of relevant entities;
       (2) the timely sharing with relevant entities of cyber 
     threat indicators or information in the possession of the 
     Federal Government that may be declassified and shared at an 
     unclassified level;
       (3) the sharing with relevant entities, or the public if 
     appropriate, of unclassified, including controlled 
     unclassified, cyber threat indicators in the possession of 
     the Federal Government; and
       (4) the sharing with entities, if appropriate, of 
     information in the possession of the Federal Government about 
     cybersecurity threats to such entities to prevent or mitigate 
     adverse effects from such cybersecurity threats.
       (b) Development of Procedures.--
       (1) In general.--The procedures developed and promulgated 
     under subsection (a) shall--
       (A) ensure the Federal Government has and maintains the 
     capability to share cyber threat indicators in real time 
     consistent with the protection of classified information;
       (B) incorporate, to the greatest extent practicable, 
     existing processes and existing roles and responsibilities of 
     Federal and non-Federal entities for information sharing by 
     the Federal Government, including sector specific information 
     sharing and analysis centers;
       (C) include procedures for notifying entities that have 
     received a cyber threat indicator from a Federal entity under 
     this title that is known or determined to be in error or in 
     contravention of the requirements of this title or another 
     provision of Federal law or policy of such error or 
     contravention;
       (D) include requirements for Federal entities receiving 
     cyber threat indicators or defensive measures to implement 
     and utilize security controls to protect against unauthorized 
     access to or acquisition of such cyber threat indicators or 
     defensive measures; and
       (E) include procedures that require a Federal entity, prior 
     to the sharing of a cyber threat indicator--
       (i) to review such cyber threat indicator to assess whether 
     such cyber threat indicator contains any information that 
     such Federal entity knows at the time of sharing to be 
     personal information of or identifying a specific person not 
     directly related to a cybersecurity threat and remove such 
     information; or
       (ii) to implement and utilize a technical capability 
     configured to remove any personal information of or 
     identifying a specific person not directly related to a 
     cybersecurity threat.
       (2) Coordination.--In developing the procedures required 
     under this section, the Director of National Intelligence, 
     the Secretary of Homeland Security, the Secretary of Defense, 
     and the Attorney General shall coordinate with appropriate 
     Federal entities, including the National Laboratories (as 
     defined in section 1702 of the Energy Policy Act of 2005 (42 
     U.S.C. 15801)), to ensure that effective protocols are 
     implemented that will facilitate and promote the sharing of 
     cyber threat indicators by the Federal Government in a timely 
     manner.
       (c) Submittal to Congress.--Not later than 60 days after 
     the date of the enactment of this title, the Director of 
     National Intelligence, in consultation with the heads of the 
     appropriate Federal entities, shall submit to Congress the 
     procedures required by subsection (a).

     SEC. 1704. AUTHORIZATIONS FOR PREVENTING, DETECTING, 
                   ANALYZING, AND MITIGATING CYBERSECURITY 
                   THREATS.

       (a) Authorization for Monitoring.--
       (1) In general.--Notwithstanding any other provision of 
     law, a private entity may, for cybersecurity purposes, 
     monitor--
       (A) an information system of such private entity;
       (B) an information system of another entity, upon the 
     authorization and written consent of such other entity;
       (C) an information system of a Federal entity, upon the 
     authorization and written consent of an authorized 
     representative of the Federal entity; and
       (D) information that is stored on, processed by, or 
     transiting an information system monitored by the private 
     entity under this paragraph.
       (2) Construction.--Nothing in this subsection shall be 
     construed--
       (A) to authorize the monitoring of an information system, 
     or the use of any information obtained through such 
     monitoring, other than as provided in this title; or
       (B) to limit otherwise lawful activity.
       (b) Authorization for Operation of Defensive Measures.--
       (1) In general.--Notwithstanding any other provision of 
     law, a private entity may, for cybersecurity purposes, 
     operate a defensive measure that is applied to--
       (A) an information system of such private entity in order 
     to protect the rights or property of the private entity;
       (B) an information system of another entity upon written 
     consent of such entity for operation of such defensive 
     measure to protect the rights or property of such entity; and
       (C) an information system of a Federal entity upon written 
     consent of an authorized representative of such Federal 
     entity for operation of such defensive measure to protect the 
     rights or property of the Federal Government.
       (2) Construction.--Nothing in this subsection shall be 
     construed--
       (A) to authorize the use of a defensive measure other than 
     as provided in this subsection; or
       (B) to limit otherwise lawful activity.
       (c) Authorization for Sharing or Receiving Cyber Threat 
     Indicators or Defensive Measures.--
       (1) In general.--Except as provided in paragraph (2) and 
     notwithstanding any other provision of law, an entity may, 
     for the purposes permitted under this title and consistent 
     with the protection of classified information, share with, or 
     receive from, any other entity or the Federal Government a 
     cyber threat indicator or defensive measure.
       (2) Lawful restriction.--An entity receiving a cyber threat 
     indicator or defensive measure from another entity or Federal 
     entity shall comply with otherwise lawful restrictions placed 
     on the sharing or use of such cyber threat indicator or 
     defensive measure by the sharing entity or Federal entity.
       (3) Construction.--Nothing in this subsection shall be 
     construed--
       (A) to authorize the sharing or receiving of a cyber threat 
     indicator or defensive measure other than as provided in this 
     subsection; or
       (B) to limit otherwise lawful activity.
       (d) Protection and Use of Information.--
       (1) Security of information.--An entity monitoring an 
     information system, operating a defensive measure, or 
     providing or receiving a cyber threat indicator or defensive 
     measure under this section shall implement and utilize a 
     security control to protect against unauthorized access to or 
     acquisition of such cyber threat indicator or defensive 
     measure.
       (2) Removal of certain personal information.--An entity 
     sharing a cyber threat indicator pursuant to this title 
     shall, prior to such sharing--
       (A) review such cyber threat indicator to assess whether 
     such cyber threat indicator contains any information that the 
     entity knows at the time of sharing to be personal 
     information of or identifying a specific person not directly 
     related to a cybersecurity threat and remove such 
     information; or
       (B) implement and utilize a technical capability configured 
     to remove any information contained within such indicator 
     that the entity knows at the time of sharing to be personal 
     information of or identifying a specific person not directly 
     related to a cybersecurity threat.
       (3) Use of cyber threat indicators and defensive measures 
     by entities.--
       (A) In general.--Consistent with this title, a cyber threat 
     indicator or defensive measure shared or received under this 
     section may, for cybersecurity purposes--
       (i) be used by an entity to monitor or operate a defensive 
     measure on--

       (I) an information system of the entity; or
       (II) an information system of another entity or a Federal 
     entity upon the written consent of that other entity or that 
     Federal entity; and

       (ii) be otherwise used, retained, and further shared by an 
     entity subject to--

       (I) an otherwise lawful restriction placed by the sharing 
     entity or Federal entity on such cyber threat indicator or 
     defensive measure; or
       (II) an otherwise applicable provision of law.

       (B) Construction.--Nothing in this paragraph shall be 
     construed to authorize the use of a cyber threat indicator or 
     defensive measure other than as provided in this section.
       (4) Use of cyber threat indicators by state, tribal, or 
     local government.--
       (A) Law enforcement use.--
       (i) Prior written consent.--Except as provided in clause 
     (ii), a cyber threat indicator shared with a State, tribal, 
     or local government under this section may, with the prior 
     written consent of the entity sharing such indicator, be used 
     by a State, tribal, or local government for the purpose of 
     preventing, investigating, or prosecuting any of the offenses 
     described in section 1705(d)(5)(A)(vi).
       (ii) Oral consent.--If exigent circumstances prevent 
     obtaining written consent under clause (i), such consent may 
     be provided orally with subsequent documentation of the 
     consent.
       (B) Exemption from disclosure.--A cyber threat indicator 
     shared with a State, tribal, or local government under this 
     section shall be--
       (i) deemed voluntarily shared information; and
       (ii) exempt from disclosure under any State, tribal, or 
     local law requiring disclosure of information or records.
       (C) State, tribal, and local regulatory authority.--
       (i) In general.--Except as provided in clause (ii), a cyber 
     threat indicator or defensive measure shared with a State, 
     tribal, or local government under this title shall not be 
     directly used by any State, tribal, or local government to 
     regulate, including an enforcement action, the lawful 
     activity of any entity, including an activity relating to 
     monitoring, operating a defensive measure, or sharing of a 
     cyber threat indicator.
       (ii) Regulatory authority specifically relating to 
     prevention or mitigation of

[[Page S3953]]

     cybersecurity threats.--A cyber threat indicator or defensive 
     measures shared as described in clause (i) may, consistent 
     with a State, tribal, or local government regulatory 
     authority specifically relating to the prevention or 
     mitigation of cybersecurity threats to information systems, 
     inform the development or implementation of a regulation 
     relating to such information systems.
       (e) Antitrust Exemption.--
       (1) In general.--Except as provided in section 1708(e), it 
     shall not be considered a violation of any provision of 
     antitrust laws for 2 or more private entities to exchange or 
     provide a cyber threat indicator, or assistance relating to 
     the prevention, investigation, or mitigation of a 
     cybersecurity threat, for cybersecurity purposes under this 
     title.
       (2) Applicability.--Paragraph (1) shall apply only to 
     information that is exchanged or assistance provided in order 
     to assist with--
       (A) facilitating the prevention, investigation, or 
     mitigation of a cybersecurity threat to an information system 
     or information that is stored on, processed by, or transiting 
     an information system; or
       (B) communicating or disclosing a cyber threat indicator to 
     help prevent, investigate, or mitigate the effect of a 
     cybersecurity threat to an information system or information 
     that is stored on, processed by, or transiting an information 
     system.
       (f) No Right or Benefit.--The sharing of a cyber threat 
     indicator with an entity under this title shall not create a 
     right or benefit to similar information by such entity or any 
     other entity.

     SEC. 1705. SHARING OF CYBER THREAT INDICATORS AND DEFENSIVE 
                   MEASURES WITH THE FEDERAL GOVERNMENT.

       (a) Requirement for Policies and Procedures.--
       (1) Interim policies and procedures.--Not later than 60 
     days after the date of the enactment of this title, the 
     Attorney General, in coordination with the heads of the 
     appropriate Federal entities, shall develop and submit to 
     Congress interim policies and procedures relating to the 
     receipt of cyber threat indicators and defensive measures by 
     the Federal Government.
       (2) Final policies and procedures.--Not later than 180 days 
     after the date of the enactment of this title, the Attorney 
     General shall, in coordination with the heads of the 
     appropriate Federal entities, promulgate final policies and 
     procedures relating to the receipt of cyber threat indicators 
     and defensive measures by the Federal Government.
       (3) Requirements concerning policies and procedures.--
     Consistent with the guidelines required by subsection (b), 
     the policies and procedures developed and promulgated under 
     this subsection shall--
       (A) ensure that cyber threat indicators are shared with the 
     Federal Government by any entity pursuant to section 1704(c) 
     through the real-time process described in subsection (c) of 
     this section--
       (i) are shared in an automated manner with all of the 
     appropriate Federal entities;
       (ii) are not subject to any delay, modification, or any 
     other action that could impede real-time receipt by all of 
     the appropriate Federal entities; and
       (iii) may be provided to other Federal entities;
       (B) ensure that cyber threat indicators shared with the 
     Federal Government by any entity pursuant to section 1704 in 
     a manner other than the real-time process described in 
     subsection (c) of this section--
       (i) are shared as quickly as operationally practicable with 
     all of the appropriate Federal entities;
       (ii) are not subject to any unnecessary delay, 
     interference, or any other action that could impede receipt 
     by all of the appropriate Federal entities; and
       (iii) may be provided to other Federal entities;
       (C) consistent with this title, any other applicable 
     provisions of law, and the fair information practice 
     principles set forth in appendix A of the document entitled 
     ``National Strategy for Trusted Identities in Cyberspace'' 
     and published by the President in April 2011, govern the 
     retention, use, and dissemination by the Federal Government 
     of cyber threat indicators shared with the Federal Government 
     under this title, including the extent, if any, to which such 
     cyber threat indicators may be used by the Federal 
     Government; and
       (D) ensure there is--
       (i) an audit capability; and
       (ii) appropriate sanctions in place for officers, 
     employees, or agents of a Federal entity who knowingly and 
     willfully conduct activities under this title in an 
     unauthorized manner.
       (4) Guidelines for entities sharing cyber threat indicators 
     with federal government.--
       (A) In general.--Not later than 60 days after the date of 
     the enactment of this title, the Attorney General shall 
     develop and make publicly available guidance to assist 
     entities and promote sharing of cyber threat indicators with 
     Federal entities under this title.
       (B) Contents.--The guidelines developed and made publicly 
     available under subparagraph (A) shall include guidance on 
     the following:
       (i) Identification of types of information that would 
     qualify as a cyber threat indicator under this title that 
     would be unlikely to include personal information of or 
     identifying a specific person not directly related to a cyber 
     security threat.
       (ii) Identification of types of information protected under 
     otherwise applicable privacy laws that are unlikely to be 
     directly related to a cybersecurity threat.
       (iii) Such other matters as the Attorney General considers 
     appropriate for entities sharing cyber threat indicators with 
     Federal entities under this title.
       (b) Privacy and Civil Liberties.--
       (1) Guidelines of attorney general.--Not later than 60 days 
     after the date of the enactment of this title, the Attorney 
     General shall, in coordination with heads of the appropriate 
     Federal entities and in consultation with officers designated 
     under section 1062 of the National Security Intelligence 
     Reform Act of 2004 (42 U.S.C. 2000ee-1), develop, submit to 
     Congress, and make available to the public interim guidelines 
     relating to privacy and civil liberties which shall govern 
     the receipt, retention, use, and dissemination of cyber 
     threat indicators by a Federal entity obtained in connection 
     with activities authorized in this title.
       (2) Final guidelines.--
       (A) In general.--Not later than 180 days after the date of 
     the enactment of this title, the Attorney General shall, in 
     coordination with heads of the appropriate Federal entities 
     and in consultation with officers designated under section 
     1062 of the National Security Intelligence Reform Act of 2004 
     (42 U.S.C. 2000ee-1) and such private entities with industry 
     expertise as the Attorney General considers relevant, 
     promulgate final guidelines relating to privacy and civil 
     liberties which shall govern the receipt, retention, use, and 
     dissemination of cyber threat indicators by a Federal entity 
     obtained in connection with activities authorized in this 
     title.
       (B) Periodic review.--The Attorney General shall, in 
     coordination with heads of the appropriate Federal entities 
     and in consultation with officers and private entities 
     described in subparagraph (A), periodically review the 
     guidelines promulgated under subparagraph (A).
       (3) Content.--The guidelines required by paragraphs (1) and 
     (2) shall, consistent with the need to protect information 
     systems from cybersecurity threats and mitigate cybersecurity 
     threats--
       (A) limit the impact on privacy and civil liberties of 
     activities by the Federal Government under this title;
       (B) limit the receipt, retention, use, and dissemination of 
     cyber threat indicators containing personal information of or 
     identifying specific persons, including by establishing--
       (i) a process for the timely destruction of such 
     information that is known not to be directly related to uses 
     authorized under this title; and
       (ii) specific limitations on the length of any period in 
     which a cyber threat indicator may be retained;
       (C) include requirements to safeguard cyber threat 
     indicators containing personal information of or identifying 
     specific persons from unauthorized access or acquisition, 
     including appropriate sanctions for activities by officers, 
     employees, or agents of the Federal Government in 
     contravention of such guidelines;
       (D) include procedures for notifying entities and Federal 
     entities if information received pursuant to this section is 
     known or determined by a Federal entity receiving such 
     information not to constitute a cyber threat indicator;
       (E) protect the confidentiality of cyber threat indicators 
     containing personal information of or identifying specific 
     persons to the greatest extent practicable and require 
     recipients to be informed that such indicators may only be 
     used for purposes authorized under this title; and
       (F) include steps that may be needed so that dissemination 
     of cyber threat indicators is consistent with the protection 
     of classified and other sensitive national security 
     information.
       (c) Capability and Process Within the Department of 
     Homeland Security.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this title, the Secretary of Homeland 
     Security, in coordination with the heads of the appropriate 
     Federal entities, shall develop and implement a capability 
     and process within the Department of Homeland Security that--
       (A) shall accept from any entity in real time cyber threat 
     indicators and defensive measures, pursuant to this section;
       (B) shall, upon submittal of the certification under 
     paragraph (2) that such capability and process fully and 
     effectively operates as described in such paragraph, be the 
     process by which the Federal Government receives cyber threat 
     indicators and defensive measures under this title that are 
     shared by a private entity with the Federal Government 
     through electronic mail or media, an interactive form on an 
     Internet website, or a real time, automated process between 
     information systems except--
       (i) communications between a Federal entity and a private 
     entity regarding a previously shared cyber threat indicator; 
     and
       (ii) communications by a regulated entity with such 
     entity's Federal regulatory authority regarding a 
     cybersecurity threat;
       (C) ensures that all of the appropriate Federal entities 
     receive in an automated manner such cyber threat indicators 
     shared through the real-time process within the Department of 
     Homeland Security;
       (D) is in compliance with the policies, procedures, and 
     guidelines required by this section; and

[[Page S3954]]

       (E) does not limit or prohibit otherwise lawful disclosures 
     of communications, records, or other information, including--
       (i) reporting of known or suspected criminal activity, by 
     an entity to any other entity or a Federal entity;
       (ii) voluntary or legally compelled participation in a 
     Federal investigation; and
       (iii) providing cyber threat indicators or defensive 
     measures as part of a statutory or authorized contractual 
     requirement.
       (2) Certification.--Not later than 10 days prior to the 
     implementation of the capability and process required by 
     paragraph (1), the Secretary of Homeland Security shall, in 
     consultation with the heads of the appropriate Federal 
     entities, certify to Congress whether such capability and 
     process fully and effectively operates--
       (A) as the process by which the Federal Government receives 
     from any entity a cyber threat indicator or defensive measure 
     under this title; and
       (B) in accordance with the policies, procedures, and 
     guidelines developed under this section.
       (3) Public notice and access.--The Secretary of Homeland 
     Security shall ensure there is public notice of, and access 
     to, the capability and process developed and implemented 
     under paragraph (1) so that--
       (A) any entity may share cyber threat indicators and 
     defensive measures through such process with the Federal 
     Government; and
       (B) all of the appropriate Federal entities receive such 
     cyber threat indicators and defensive measures in real time 
     with receipt through the process within the Department of 
     Homeland Security.
       (4) Other federal entities.--The process developed and 
     implemented under paragraph (1) shall ensure that other 
     Federal entities receive in a timely manner any cyber threat 
     indicators and defensive measures shared with the Federal 
     Government through such process.
       (5)  Report on development and implementation.--
       (A) In general.--Not later than 60 days after the date of 
     the enactment of this title, the Secretary of Homeland 
     Security shall submit to Congress a report on the development 
     and implementation of the capability and process required by 
     paragraph (1), including a description of such capability and 
     process and the public notice of, and access to, such 
     process.
       (B) Classified annex.--The report required by subparagraph 
     (A) shall be submitted in unclassified form, but may include 
     a classified annex.
       (d) Information Shared With or Provided to the Federal 
     Government.--
       (1) No waiver of privilege or protection.--The provision of 
     cyber threat indicators and defensive measures to the Federal 
     Government under this title shall not constitute a waiver of 
     any applicable privilege or protection provided by law, 
     including trade secret protection.
       (2) Proprietary information.--Consistent with section 
     1704(c)(2), a cyber threat indicator or defensive measure 
     provided by an entity to the Federal Government under this 
     title shall be considered the commercial, financial, and 
     proprietary information of such entity when so designated by 
     the originating entity or a third party acting in accordance 
     with the written authorization of the originating entity.
       (3) Exemption from disclosure.--Cyber threat indicators and 
     defensive measures provided to the Federal Government under 
     this title shall be--
       (A) deemed voluntarily shared information and exempt from 
     disclosure under section 552 of title 5, United States Code, 
     and any State, tribal, or local law requiring disclosure of 
     information or records; and
       (B) withheld, without discretion, from the public under 
     section 552(b)(3)(B) of title 5, United States Code, and any 
     State, tribal, or local provision of law requiring disclosure 
     of information or records.
       (4) Ex parte communications.--The provision of a cyber 
     threat indicator or defensive measure to the Federal 
     Government under this title shall not be subject to a rule of 
     any Federal agency or department or any judicial doctrine 
     regarding ex parte communications with a decisionmaking 
     official.
       (5) Disclosure, retention, and use.--
       (A) Authorized activities.--Cyber threat indicators and 
     defensive measures provided to the Federal Government under 
     this title may be disclosed to, retained by, and used by, 
     consistent with otherwise applicable provisions of Federal 
     law, any Federal agency or department, component, officer, 
     employee, or agent of the Federal Government solely for--
       (i) a cybersecurity purpose;
       (ii) the purpose of identifying a cybersecurity threat, 
     including the source of such cybersecurity threat, or a 
     security vulnerability;
       (iii) the purpose of identifying a cybersecurity threat 
     involving the use of an information system by a foreign 
     adversary or terrorist;
       (iv) the purpose of responding to, or otherwise preventing 
     or mitigating, an imminent threat of death, serious bodily 
     harm, or serious economic harm, including a terrorist act or 
     a use of a weapon of mass destruction;
       (v) the purpose of responding to, or otherwise preventing 
     or mitigating, a serious threat to a minor, including sexual 
     exploitation and threats to physical safety; or
       (vi) the purpose of preventing, investigating, disrupting, 
     or prosecuting an offense arising out of a threat described 
     in clause (iv) or any of the offenses listed in--

       (I) section 3559(c)(2)(F) of title 18, United States Code 
     (relating to serious violent felonies);
       (II) sections 1028 through 1030 of such title (relating to 
     fraud and identity theft);
       (III) chapter 37 of such title (relating to espionage and 
     censorship); and
       (IV) chapter 90 of such title (relating to protection of 
     trade secrets).

       (B) Prohibited activities.--Cyber threat indicators and 
     defensive measures provided to the Federal Government under 
     this title shall not be disclosed to, retained by, or used by 
     any Federal agency or department for any use not permitted 
     under subparagraph (A).
       (C) Privacy and civil liberties.--Cyber threat indicators 
     and defensive measures provided to the Federal Government 
     under this title shall be retained, used, and disseminated by 
     the Federal Government--
       (i) in accordance with the policies, procedures, and 
     guidelines required by subsections (a) and (b);
       (ii) in a manner that protects from unauthorized use or 
     disclosure any cyber threat indicators that may contain 
     personal information of or identifying specific persons; and
       (iii) in a manner that protects the confidentiality of 
     cyber threat indicators containing personal information of or 
     identifying a specific person.
       (D) Federal regulatory authority.--
       (i) In general.--Except as provided in clause (ii), cyber 
     threat indicators and defensive measures provided to the 
     Federal Government under this title shall not be directly 
     used by any Federal, State, tribal, or local government to 
     regulate, including an enforcement action, the lawful 
     activities of any entity, including activities relating to 
     monitoring, operating defensive measures, or sharing cyber 
     threat indicators.
       (ii) Exceptions.--

       (I) Regulatory authority specifically relating to 
     prevention or mitigation of cybersecurity threats.--Cyber 
     threat indicators and defensive measures provided to the 
     Federal Government under this title may, consistent with 
     Federal or State regulatory authority specifically relating 
     to the prevention or mitigation of cybersecurity threats to 
     information systems, inform the development or implementation 
     of regulations relating to such information systems.
       (II) Procedures developed and implemented under this 
     title.--Clause (i) shall not apply to procedures developed 
     and implemented under this title.

     SEC. 1706. PROTECTION FROM LIABILITY.

       (a) Monitoring of Information Systems.--No cause of action 
     shall lie or be maintained in any court against any private 
     entity, and such action shall be promptly dismissed, for the 
     monitoring of information systems and information under 
     section 1704(a) that is conducted in accordance with this 
     title.
       (b) Sharing or Receipt of Cyber Threat Indicators.--No 
     cause of action shall lie or be maintained in any court 
     against any entity, and such action shall be promptly 
     dismissed, for the sharing or receipt of cyber threat 
     indicators or defensive measures under section 1704(c) if--
       (1) such sharing or receipt is conducted in accordance with 
     this title; and
       (2) in a case in which a cyber threat indicator or 
     defensive measure is shared with the Federal Government, the 
     cyber threat indicator or defensive measure is shared in a 
     manner that is consistent with section 1705(c)(1)(B) and the 
     sharing or receipt, as the case may be, occurs after the 
     earlier of--
       (A) the date on which the interim policies and procedures 
     are submitted to Congress under section 1705(a)(1); or
       (B) the date that is 60 days after the date of the 
     enactment of this title.
       (c) Construction.--Nothing in this section shall be 
     construed--
       (1) to require dismissal of a cause of action against an 
     entity that has engaged in gross negligence or willful 
     misconduct in the course of conducting activities authorized 
     by this title; or
       (2) to undermine or limit the availability of otherwise 
     applicable common law or statutory defenses.

     SEC. 1707. OVERSIGHT OF GOVERNMENT ACTIVITIES.

       (a) Biennial Report on Implementation.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this title, and not less frequently than 
     once every 2 years thereafter, the heads of the appropriate 
     Federal entities shall jointly submit and the Inspector 
     General of the Department of Homeland Security, the Inspector 
     General of the Intelligence Community, the Inspector General 
     of the Department of Justice, the Inspector General of the 
     Department of Defense, and the Inspector General of the 
     Department of Energy, in consultation with the Council of 
     Inspectors General on Financial Oversight, shall jointly 
     submit to Congress a detailed report concerning the 
     implementation of this title.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include the following:
       (A) An assessment of the sufficiency of the policies, 
     procedures, and guidelines required by section 1705 in 
     ensuring that cyber threat indicators are shared effectively 
     and responsibly within the Federal Government.
       (B) An evaluation of the effectiveness of real-time 
     information sharing through the capability and process 
     developed under section 1705(c), including any impediments to 
     such real-time sharing.

[[Page S3955]]

       (C) An assessment of the sufficiency of the procedures 
     developed under section 1703 in ensuring that cyber threat 
     indicators in the possession of the Federal Government are 
     shared in a timely and adequate manner with appropriate 
     entities, or, if appropriate, are made publicly available.
       (D) An assessment of whether cyber threat indicators have 
     been properly classified and an accounting of the number of 
     security clearances authorized by the Federal Government for 
     the purposes of this title.
       (E) A review of the type of cyber threat indicators shared 
     with the Federal Government under this title, including the 
     following:
       (i) The degree to which such information may impact the 
     privacy and civil liberties of specific persons.
       (ii) A quantitative and qualitative assessment of the 
     impact of the sharing of such cyber threat indicators with 
     the Federal Government on privacy and civil liberties of 
     specific persons.
       (iii) The adequacy of any steps taken by the Federal 
     Government to reduce such impact.
       (F) A review of actions taken by the Federal Government 
     based on cyber threat indicators shared with the Federal 
     Government under this title, including the appropriateness of 
     any subsequent use or dissemination of such cyber threat 
     indicators by a Federal entity under section 1705.
       (G) A description of any significant violations of the 
     requirements of this title by the Federal Government.
       (H) A summary of the number and type of entities that 
     received classified cyber threat indicators from the Federal 
     Government under this title and an evaluation of the risks 
     and benefits of sharing such cyber threat indicators.
       (3) Recommendations.--Each report submitted under paragraph 
     (1) may include recommendations for improvements or 
     modifications to the authorities and processes under this 
     title.
       (4) Form of report.--Each report required by paragraph (1) 
     shall be submitted in unclassified form, but may include a 
     classified annex.
       (b) Reports on Privacy and Civil Liberties.--
       (1) Biennial report from privacy and civil liberties 
     oversight board.--Not later than 2 years after the date of 
     the enactment of this title and not less frequently than once 
     every 2 years thereafter, the Privacy and Civil Liberties 
     Oversight Board shall submit to Congress and the President a 
     report providing--
       (A) an assessment of the effect on privacy and civil 
     liberties by the type of activities carried out under this 
     title; and
       (B) an assessment of the sufficiency of the policies, 
     procedures, and guidelines established pursuant to section 
     1705 in addressing concerns relating to privacy and civil 
     liberties.
       (2) Biennial report of inspectors general.--
       (A) In general.--Not later than 2 years after the date of 
     the enactment of this title and not less frequently than once 
     every 2 years thereafter, the Inspector General of the 
     Department of Homeland Security, the Inspector General of the 
     Intelligence Community, the Inspector General of the 
     Department of Justice, the Inspector General of the 
     Department of Defense, and the Inspector General of the 
     Department of Energy shall, in consultation with the Council 
     of Inspectors General on Financial Oversight, jointly submit 
     to Congress a report on the receipt, use, and dissemination 
     of cyber threat indicators and defensive measures that have 
     been shared with Federal entities under this title.
       (B) Contents.--Each report submitted under subparagraph (A) 
     shall include the following:
       (i) A review of the types of cyber threat indicators shared 
     with Federal entities.
       (ii) A review of the actions taken by Federal entities as a 
     result of the receipt of such cyber threat indicators.
       (iii) A list of Federal entities receiving such cyber 
     threat indicators.
       (iv) A review of the sharing of such cyber threat 
     indicators among Federal entities to identify inappropriate 
     barriers to sharing information.
       (3) Recommendations.--Each report submitted under this 
     subsection may include such recommendations as the Privacy 
     and Civil Liberties Oversight Board, with respect to a report 
     submitted under paragraph (1), or the Inspectors General 
     referred to in paragraph (2)(A), with respect to a report 
     submitted under paragraph (2), may have for improvements or 
     modifications to the authorities under this title.
       (4) Form.--Each report required under this subsection shall 
     be submitted in unclassified form, but may include a 
     classified annex.

     SEC. 1708. CONSTRUCTION AND PREEMPTION.

       (a) Otherwise Lawful Disclosures.--Nothing in this title 
     shall be construed--
       (1) to limit or prohibit otherwise lawful disclosures of 
     communications, records, or other information, including 
     reporting of known or suspected criminal activity, by an 
     entity to any other entity or the Federal Government under 
     this title; or
       (2) to limit or prohibit otherwise lawful use of such 
     disclosures by any Federal entity, even when such otherwise 
     lawful disclosures duplicate or replicate disclosures made 
     under this title.
       (b) Whistle Blower Protections.--Nothing in this title 
     shall be construed to prohibit or limit the disclosure of 
     information protected under section 2302(b)(8) of title 5, 
     United States Code (governing disclosures of illegality, 
     waste, fraud, abuse, or public health or safety threats), 
     section 7211 of title 5, United States Code (governing 
     disclosures to Congress), section 1034 of title 10, United 
     States Code (governing disclosure to Congress by members of 
     the military), section 1104 of the National Security Act of 
     1947 (50 U.S.C. 3234) (governing disclosure by employees of 
     elements of the intelligence community), or any similar 
     provision of Federal or State law.
       (c) Protection of Sources and Methods.--Nothing in this 
     title shall be construed--
       (1) as creating any immunity against, or otherwise 
     affecting, any action brought by the Federal Government, or 
     any agency or department thereof, to enforce any law, 
     executive order, or procedure governing the appropriate 
     handling, disclosure, or use of classified information;
       (2) to affect the conduct of authorized law enforcement or 
     intelligence activities; or
       (3) to modify the authority of a department or agency of 
     the Federal Government to protect classified information and 
     sources and methods and the national security of the United 
     States.
       (d) Relationship to Other Laws.--Nothing in this title 
     shall be construed to affect any requirement under any other 
     provision of law for an entity to provide information to the 
     Federal Government.
       (e) Prohibited Conduct.--Nothing in this title shall be 
     construed to permit price-fixing, allocating a market between 
     competitors, monopolizing or attempting to monopolize a 
     market, boycotting, or exchanges of price or cost 
     information, customer lists, or information regarding future 
     competitive planning.
       (f) Information Sharing Relationships.--Nothing in this 
     title shall be construed--
       (1) to limit or modify an existing information sharing 
     relationship;
       (2) to prohibit a new information sharing relationship;
       (3) to require a new information sharing relationship 
     between any entity and the Federal Government; or
       (4) to require the use of the capability and process within 
     the Department of Homeland Security developed under section 
     1705(c).
       (g) Preservation of Contractual Obligations and Rights.--
     Nothing in this title shall be construed--
       (1) to amend, repeal, or supersede any current or future 
     contractual agreement, terms of service agreement, or other 
     contractual relationship between any entities, or between any 
     entity and a Federal entity; or
       (2) to abrogate trade secret or intellectual property 
     rights of any entity or Federal entity.
       (h) Anti-Tasking Restriction.--Nothing in this title shall 
     be construed to permit the Federal Government--
       (1) to require an entity to provide information to the 
     Federal Government;
       (2) to condition the sharing of cyber threat indicators 
     with an entity on such entity's provision of cyber threat 
     indicators to the Federal Government; or
       (3) to condition the award of any Federal grant, contract, 
     or purchase on the provision of a cyber threat indicator to a 
     Federal entity.
       (i) No Liability for Non-Participation.--Nothing in this 
     title shall be construed to subject any entity to liability 
     for choosing not to engage in the voluntary activities 
     authorized in this title.
       (j) Use and Retention of Information.--Nothing in this 
     title shall be construed to authorize, or to modify any 
     existing authority of, a department or agency of the Federal 
     Government to retain or use any information shared under this 
     title for any use other than permitted in this title.
       (k) Federal Preemption.--
       (1) In general.--This title supersedes any statute or other 
     provision of law of a State or political subdivision of a 
     State that restricts or otherwise expressly regulates an 
     activity authorized under this title.
       (2) State law enforcement.--Nothing in this title shall be 
     construed to supersede any statute or other provision of law 
     of a State or political subdivision of a State concerning the 
     use of authorized law enforcement practices and procedures.
       (l) Regulatory Authority.--Nothing in this title shall be 
     construed--
       (1) to authorize the promulgation of any regulations not 
     specifically authorized by this title;
       (2) to establish or limit any regulatory authority not 
     specifically established or limited under this title; or
       (3) to authorize regulatory actions that would duplicate or 
     conflict with regulatory requirements, mandatory standards, 
     or related processes under another provision of Federal law.
       (m) Authority of Secretary of Defense To Respond to Cyber 
     Attacks.--Nothing in this title shall be construed to limit 
     the authority of the Secretary of Defense to develop, 
     prepare, coordinate, or, when authorized by the President to 
     do so, conduct a military cyber operation in response to a 
     malicious cyber activity carried out against the United 
     States or a United States person by a foreign government or 
     an organization sponsored by a foreign government or a 
     terrorist organization.

[[Page S3956]]

     SEC. 1709. REPORT ON CYBERSECURITY THREATS.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this title, the Director of National 
     Intelligence, in coordination with the heads of other 
     appropriate elements of the intelligence community, shall 
     submit to the Select Committee on Intelligence of the Senate 
     and the Permanent Select Committee on Intelligence of the 
     House of Representatives a report on cybersecurity threats, 
     including cyber attacks, theft, and data breaches.
       (b) Contents.--The report required by subsection (a) shall 
     include the following:
       (1) An assessment of the current intelligence sharing and 
     cooperation relationships of the United States with other 
     countries regarding cybersecurity threats, including cyber 
     attacks, theft, and data breaches, directed against the 
     United States and which threaten the United States national 
     security interests and economy and intellectual property, 
     specifically identifying the relative utility of such 
     relationships, which elements of the intelligence community 
     participate in such relationships, and whether and how such 
     relationships could be improved.
       (2) A list and an assessment of the countries and nonstate 
     actors that are the primary threats of carrying out a 
     cybersecurity threat, including a cyber attack, theft, or 
     data breach, against the United States and which threaten the 
     United States national security, economy, and intellectual 
     property.
       (3) A description of the extent to which the capabilities 
     of the United States Government to respond to or prevent 
     cybersecurity threats, including cyber attacks, theft, or 
     data breaches, directed against the United States private 
     sector are degraded by a delay in the prompt notification by 
     private entities of such threats or cyber attacks, theft, and 
     breaches.
       (4) An assessment of additional technologies or 
     capabilities that would enhance the ability of the United 
     States to prevent and to respond to cybersecurity threats, 
     including cyber attacks, theft, and data breaches.
       (5) An assessment of any technologies or practices utilized 
     by the private sector that could be rapidly fielded to assist 
     the intelligence community in preventing and responding to 
     cybersecurity threats.
       (c) Form of Report.--The report required by subsection (a) 
     shall be made available in classified and unclassified forms.
       (d) Intelligence Community Defined.--In this section, the 
     term ``intelligence community'' has the meaning given that 
     term in section 3 of the National Security Act of 1947 (50 
     U.S.C. 3003).

     SEC. 1710. CONFORMING AMENDMENTS.

       (a) Public Information.--Section 552(b) of title 5, United 
     States Code, is amended--
       (1) in paragraph (8), by striking ``or'' at the end;
       (2) in paragraph (9), by striking ``wells.'' and inserting 
     ``wells; or''; and
       (3) by inserting after paragraph (9) the following:
       ``(10) information shared with or provided to the Federal 
     Government pursuant to the Cybersecurity Information Sharing 
     Act of 2015.''.
       (b) Modification of Limitation on Dissemination of Certain 
     Information Concerning Penetrations of Defense Contractor 
     Networks.--Section 941(c)(3) of the National Defense 
     Authorization Act for Fiscal Year 2013 (Public Law 112-239; 
     10 U.S.C. 2224 note) is amended by inserting at the end the 
     following: ``The Secretary may share such information with 
     other Federal entities if such information consists of cyber 
     threat indicators and defensive measures and such information 
     is shared consistent with the policies and procedures 
     promulgated by the Attorney General under section 1705 of the 
     Cybersecurity Information Sharing Act of 2015.''.

     SEC. 1711. CRIMINAL BACKGROUND CHECKS OF EMPLOYEES OF THE 
                   MILITARY CHILD CARE SYSTEM AND PROVIDERS OF 
                   CHILD CARE SERVICES AND YOUTH PROGRAM SERVICES 
                   FOR MILITARY DEPENDENTS.

       (a) Employees of Military Child Care System.--Section 1792 
     of title 10, United States Code, is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Criminal Background Check.--The criminal background 
     check of child care employees under this section that is 
     required pursuant to section 231 of the Crime Control Act of 
     1990 (42 U.S.C. 13041) shall be conducted pursuant to 
     regulations prescribed by the Secretary of Defense in 
     accordance with the provisions of section 658H of the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858f).''.
       (b) Providers of Child Care Services and Youth Program 
     Services.--Section 1798 of such title is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Criminal Background Check.--A provider of child care 
     services or youth program services may not provide such 
     services under this section unless such provider complies 
     with the requirements for criminal background checks under 
     section 658H of the Child Care and Development Block Grant 
     Act of 1990 (42 U.S.C. 9858f) for the State in which such 
     services are provided.''.
       (c) Funding.--Amounts for activities required by reason of 
     the amendments made by this section during fiscal year 2016 
     shall be derived from amounts otherwise authorized to be 
     appropriated for fiscal year 2016 by section 301 and 
     available for operation and maintenance for the Yellow Ribbon 
     Reintegration Program as specified in the funding tables in 
     section 4301.
                                 ______