[Congressional Record Volume 168, Number 157 (Wednesday, September 28, 2022)]
[Senate]
[Pages S5290-S5303]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 5815. Mr. PETERS (for himself and Mr. Portman) submitted an
amendment intended to be proposed to amendment SA 5499 submitted by Mr.
Reed (for himself and Mr. Inhofe) and intended to be proposed to the
bill H.R. 7900, to authorize appropriations for fiscal year 2023 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; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
DIVISION __--FEDERAL INFORMATION SECURITY MODERNIZATION ACT OF 2022
SEC. __01. SHORT TITLE.
This division may be cited as the ``Federal Information
Security Modernization Act of 2022''.
SEC. __02. DEFINITIONS.
In this division, unless otherwise specified:
(1) Additional cybersecurity procedure.--The term
``additional cybersecurity procedure'' has the meaning given
the term in section 3552(b) of title 44, United States Code,
as amended by this division.
(2) Agency.--The term ``agency'' has the meaning given the
term in section 3502 of title 44, United States Code.
(3) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Homeland Security and Governmental
Affairs of the Senate;
(B) the Committee on Oversight and Reform of the House of
Representatives; and
(C) the Committee on Homeland Security of the House of
Representatives.
(4) Director.--The term ``Director'' means the Director of
the Office of Management and Budget.
(5) Incident.--The term ``incident'' has the meaning given
the term in section 3552(b) of title 44, United States Code.
(6) National security system.--The term ``national security
system'' has the meaning given the term in section 3552(b) of
title 44, United States Code.
(7) Penetration test.--The term ``penetration test'' has
the meaning given the term in section 3552(b) of title 44,
United States Code, as amended by this division.
(8) Threat hunting.--The term ``threat hunting'' means
proactively and iteratively searching systems for threats and
vulnerabilities, including threats or vulnerabilities that
may evade detection by automated threat detection systems.
(9) Zero trust architecture.--The term ``zero trust
architecture'' has the meaning given the term in Special
Publication 800-207 of the National Institute of Standards
and Technology, or any successor document.
SEC. __03. AMENDMENTS TO TITLE 44.
(a) Subchapter I Amendments.--Subchapter I of chapter 35 of
title 44, United States Code, is amended--
(1) in section 3504--
(A) in subsection (a)(1)(B)--
(i) by striking clause (v) and inserting the following:
``(v) confidentiality, privacy, disclosure, and sharing of
information;'';
(ii) by redesignating clause (vi) as clause (vii); and
(iii) by inserting after clause (v) the following:
``(vi) in consultation with the National Cyber Director,
security of information; and''; and
(B) in subsection (g), by striking paragraph (1) and
inserting the following:
``(1) develop and oversee the implementation of policies,
principles, standards, and
[[Page S5291]]
guidelines on privacy, confidentiality, disclosure, and
sharing, and in consultation with the National Cyber
Director, oversee the implementation of policies, principles,
standards, and guidelines on security, of information
collected or maintained by or for agencies; and'';
(2) in section 3505--
(A) by striking the first subsection designated as
subsection (c);
(B) in paragraph (2) of the second subsection designated as
subsection (c), by inserting ``an identification of internet
accessible information systems and'' after ``an inventory
under this subsection shall include'';
(C) in paragraph (3) of the second subsection designated as
subsection (c)--
(i) in subparagraph (B)--
(I) by inserting ``the Director of the Cybersecurity and
Infrastructure Security Agency, the National Cyber Director,
and'' before ``the Comptroller General''; and
(II) by striking ``and'' at the end;
(ii) in subparagraph (C)(v), by striking the period at the
end and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) maintained on a continual basis through the use of
automation, machine-readable data, and scanning, wherever
practicable.'';
(3) in section 3506--
(A) in subsection (a)(3), by inserting ``In carrying out
these duties, the Chief Information Officer shall coordinate,
as appropriate, with the Chief Data Officer in accordance
with the designated functions under section 3520(c).'' after
``reduction of information collection burdens on the
public.'';
(B) in subsection (b)(1)(C), by inserting ``availability,''
after ``integrity,''; and
(C) in subsection (h)(3), by inserting ``security,'' after
``efficiency,''; and
(4) in section 3513--
(A) by redesignating subsection (c) as subsection (d); and
(B) by inserting after subsection (b) the following:
``(c) Each agency providing a written plan under subsection
(b) shall provide any portion of the written plan addressing
information security to the Secretary of Homeland Security
and the National Cyber Director.''.
(b) Subchapter II Definitions.--
(1) In general.--Section 3552(b) of title 44, United States
Code, is amended--
(A) by redesignating paragraphs (1), (2), (3), (4), (5),
(6), and (7) as paragraphs (2), (4), (5), (6), (7), (9), and
(11), respectively;
(B) by inserting before paragraph (2), as so redesignated,
the following:
``(1) The term `additional cybersecurity procedure' means a
process, procedure, or other activity that is established in
excess of the information security standards promulgated
under section 11331(b) of title 40 to increase the security
and reduce the cybersecurity risk of agency systems.'';
(C) by inserting after paragraph (2), as so redesignated,
the following:
``(3) The term `high value asset' means information or an
information system that the head of an agency, using
policies, principles, standards, or guidelines issued by the
Director under section 3553(a), in consultation with the
Director of the Cybersecurity and Infrastructure Security
Agency, determines to be so critical to the agency that the
loss or degradation of the confidentiality, integrity, or
accessibility of such information or information system would
have a serious impact on the ability of the agency to perform
the mission of the agency or conduct business.'';
(D) by inserting after paragraph (7), as so redesignated,
the following:
``(8) The term `major incident' has the meaning given the
term in guidance issued by the Director under section
3598(a).'';
(E) by inserting after paragraph (9), as so redesignated,
the following:
``(10) The term `penetration test'--
``(A) means an authorized assessment that emulates attempts
to gain unauthorized access to, or disrupt the operations of,
an information system or component of an information system;
and
``(B) includes any additional meaning given the term in
policies, principles, standards, or guidelines issued by the
Director under section 3553(a).''; and
(F) by inserting after paragraph (11), as so redesignated,
the following:
``(12) The term `shared service' means a centralized
business or mission capability that is provided to multiple
organizations within an agency or to multiple agencies.
``(13) The term `zero trust architecture' has the meaning
given the term in Special Publication 800-207 of the National
Institute of Standards and Technology, or any successor
document.''.
(2) Conforming amendments.--
(A) Homeland security act of 2002.--Section 1001(c)(1)(A)
of the Homeland Security Act of 2002 (6 U.S.C. 511(1)(A)) is
amended by striking ``section 3552(b)(5)'' and inserting
``section 3552(b)''.
(B) Title 10.--
(i) Section 2222.--Section 2222(i)(8) of title 10, United
States Code, is amended by striking ``section 3552(b)(6)(A)''
and inserting ``section 3552(b)(9)(A)''.
(ii) Section 2223.--Section 2223(c)(3) of title 10, United
States Code, is amended by striking ``section 3552(b)(6)''
and inserting ``section 3552(b)''.
(iii) Section 2315.--Section 2315 of title 10, United
States Code, is amended by striking ``section 3552(b)(6)''
and inserting ``section 3552(b)''.
(iv) Section 2339a.--Section 2339a(e)(5) of title 10,
United States Code, is amended by striking ``section
3552(b)(6)'' and inserting ``section 3552(b)''.
(C) High-performance computing act of 1991.--Section 207(a)
of the High-Performance Computing Act of 1991 (15 U.S.C.
5527(a)) is amended by striking ``section 3552(b)(6)(A)(i)''
and inserting ``section 3552(b)(9)(A)(i)''.
(D) Internet of things cybersecurity improvement act of
2020.--Section 3(5) of the Internet of Things Cybersecurity
Improvement Act of 2020 (15 U.S.C. 278g-3a) is amended by
striking ``section 3552(b)(6)'' and inserting ``section
3552(b)''.
(E) National defense authorization act for fiscal year
2013.--Section 933(e)(1)(B) of the National Defense
Authorization Act for Fiscal Year 2013 (10 U.S.C. 2224 note)
is amended by striking ``section 3542(b)(2)'' and inserting
``section 3552(b)''.
(F) Ike skelton national defense authorization act for
fiscal year 2011.--The Ike Skelton National Defense
Authorization Act for Fiscal Year 2011 (Public Law 111-383)
is amended--
(i) in section 806(e)(5) (10 U.S.C. 2304 note), by striking
``section 3542(b)'' and inserting ``section 3552(b)'';
(ii) in section 931(b)(3) (10 U.S.C. 2223 note), by
striking ``section 3542(b)(2)'' and inserting ``section
3552(b)''; and
(iii) in section 932(b)(2) (10 U.S.C. 2224 note), by
striking ``section 3542(b)(2)'' and inserting ``section
3552(b)''.
(G) E-government act of 2002.--Section 301(c)(1)(A) of the
E-Government Act of 2002 (44 U.S.C. 3501 note) is amended by
striking ``section 3542(b)(2)'' and inserting ``section
3552(b)''.
(H) 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--
(i) in subsection (a)(2), by striking ``section
3552(b)(5)'' and inserting ``section 3552(b)''; and
(ii) in subsection (f)--
(I) in paragraph (3), by striking ``section 3532(1)'' and
inserting ``section 3552(b)''; and
(II) in paragraph (5), by striking ``section 3532(b)(2)''
and inserting ``section 3552(b)''.
(c) Subchapter II Amendments.--Subchapter II of chapter 35
of title 44, United States Code, is amended--
(1) in section 3551--
(A) in paragraph (4), by striking ``diagnose and improve''
and inserting ``integrate, deliver, diagnose, and improve'';
(B) in paragraph (5), by striking ``and'' at the end;
(C) in paragraph (6), by striking the period at the end and
inserting a semicolon; and
(D) by adding at the end the following:
``(7) recognize that each agency has specific mission
requirements and, at times, unique cybersecurity requirements
to meet the mission of the agency;
``(8) recognize that each agency does not have the same
resources to secure agency systems, and an agency should not
be expected to have the capability to secure the systems of
the agency from advanced adversaries alone; and
``(9) recognize that a holistic Federal cybersecurity model
is necessary to account for differences between the missions
and capabilities of agencies.'';
(2) in section 3553--
(A) in subsection (a)--
(i) in paragraph (1), by inserting ``, in consultation with
the Secretary and the National Cyber Director,'' before
``overseeing'';
(ii) in paragraph (5), by striking ``and'' at the end;
(iii) in paragraph (6), by striking the period at the end
and inserting a semicolon; and
(iv) by adding at the end the following:
``(8) promoting, in consultation with the Director of the
Cybersecurity and Infrastructure Security Agency, the
National Cyber Director, and the Director of the National
Institute of Standards and Technology--
``(A) the use of automation to improve Federal
cybersecurity and visibility with respect to the
implementation of Federal cybersecurity; and
``(B) the use of presumption of compromise and least
privilege principles, such as zero trust architecture, to
improve resiliency and timely response actions to incidents
on Federal systems.'';
(B) in subsection (b)--
(i) in the matter preceding paragraph (1), by inserting
``and the National Cyber Director'' after ``Director'';
(ii) in paragraph (2)(A), by inserting ``and reporting
requirements under subchapter IV of this chapter'' after
``section 3556'';
(iii) by redesignating paragraphs (8) and (9) as paragraphs
(10) and (11), respectively; and
(iv) by inserting after paragraph (7) the following:
``(8) expeditiously seeking opportunities to reduce costs,
administrative burdens, and other barriers to information
technology security and modernization for agencies, including
through shared services for cybersecurity capabilities
identified as appropriate by the Director, in coordination
with the Director of the Cybersecurity and Infrastructure
Security Agency and other agencies as appropriate;'';
(C) in subsection (c)--
(i) in the matter preceding paragraph (1)--
(I) by striking ``each year'' and inserting ``each year
during which agencies are required to submit reports under
section 3554(c)'';
(II) by inserting ``, which shall be unclassified but may
include a classified annex,'' after ``a report''; and
[[Page S5292]]
(III) by striking ``preceding year'' and inserting
``preceding 2 years'';
(ii) by striking paragraph (1);
(iii) by redesignating paragraphs (2), (3), and (4) as
paragraphs (1), (2), and (3), respectively;
(iv) in paragraph (3), as so redesignated, by striking
``and'' at the end;
(v) by inserting after paragraph (3), as so redesignated,
the following:
``(4) a summary of the risks and trends identified in the
Federal risk assessment required under subsection (i);''; and
(vi) in paragraph (5), by striking the period at the end
and inserting ``; and'';
(D) in subsection (h)--
(i) in paragraph (2)--
(I) in subparagraph (A), by inserting ``and the National
Cyber Director'' after ``in coordination with the Director'';
and
(II) in subparagraph (D), by inserting ``, the National
Cyber Director,'' after ``notify the Director''; and
(ii) in paragraph (3)(A)(iv), by inserting ``, the National
Cyber Director,'' after ``the Secretary provides prior notice
to the Director'';
(E) by amending subsection (i) to read as follows:
``(i) Federal Risk Assessment.--On an ongoing and
continuous basis, the Director of the Cybersecurity and
Infrastructure Security Agency shall assess the Federal risk
posture using any available information on the cybersecurity
posture of agencies, and brief the Director and National
Cyber Director on the findings of such assessment,
including--
``(1) the status of agency cybersecurity remedial actions
described in section 3554(b)(7);
``(2) any vulnerability information relating to the systems
of an agency that is known by the agency;
``(3) analysis of incident information under section 3597;
``(4) evaluation of penetration testing performed under
section 3559A;
``(5) evaluation of vulnerability disclosure program
information under section 3559B;
``(6) evaluation of agency threat hunting results;
``(7) evaluation of Federal and non-Federal cyber threat
intelligence;
``(8) data on agency compliance with standards issued under
section 11331 of title 40;
``(9) agency system risk assessments required under section
3554(a)(1)(A); and
``(10) any other information the Director of the
Cybersecurity and Infrastructure Security Agency determines
relevant.''; and
(F) by adding at the end the following:
``(m) Binding Operational Directives.--If the Secretary
issues a binding operational directive or an emergency
directive under this section, not later than 4 days after the
date on which the binding operational directive requires an
agency to take an action, the Director of the Cybersecurity
and Infrastructure Security Agency shall provide to the
Director, National Cyber Director, the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Oversight and Reform of the House of
Representatives the status of the implementation of the
binding operational directive at the agency.
``(n) Review of Office of Management and Budget Guidance
and Policy.--
``(1) Conduct of review.--The Director of the Office of
Management and Budget shall regularly review the efficacy of
the guidance and policy promulgated by the Director in
reducing cybersecurity risks, including consideration of
reporting and compliance burden on agencies.
``(2) Congressional notification.--The Director of the
Office of Management and Budget shall notify the Committee on
Homeland Security and Governmental Affairs of the Senate and
the Committee on Oversight and Reform of the House of
Representatives of planned changes to guidance or policy
resulting from the review in paragraph (1).
``(3) GAO review.--The Government Accountability Office
shall regularly review the guidance and policy promulgated by
the Director to assess its efficacy in risk reduction and
burden on agencies, and shall issue recommendations to the
Director.
``(o) Automated Standard Implementation Verification.--When
the Director of the National Institute of Standards and
Technology issues a proposed standard or guideline pursuant
to paragraphs (2) or (3) of section 20(a) of the National
Institute of Standards and Technology Act (15 U.S.C. 278g-
3(a)), the Director of the National Institute of Standards
and Technology shall consider developing and, if appropriate
and practical, develop, in consultation with the Director of
the Cybersecurity and Infrastructure Security Agency,
specifications to enable the automated verification of the
implementation of the controls.
``(p) Inspectors General Access to Federal Risk
Assessments.--The Director of the Cybersecurity and
Infrastructure Security Agency shall, upon request, make
available Federal risk assessment information under (i) to
the Council of the Inspectors General on Integrity and
Efficiency.'';
(3) in section 3554--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) by redesignating subparagraphs (A), (B), and (C) as
subparagraphs (B), (C), and (D), respectively;
(II) by inserting before subparagraph (B), as so
redesignated, the following:
``(A) on an ongoing and continuous basis, assessing agency
system risk by--
``(i) identifying and documenting the high value assets of
the agency using guidance from the Director;
``(ii) evaluating the data assets inventoried under section
3511 for sensitivity to compromises in confidentiality,
integrity, and availability;
``(iii) identifying agency systems that have access to or
hold the data assets inventoried under section 3511;
``(iv) evaluating the threats facing agency systems and
data, including high value assets, based on Federal and non-
Federal cyber threat intelligence products, where available;
``(v) evaluating the vulnerability of agency systems and
data, including high value assets, including by analyzing--
``(I) the results of penetration testing performed by the
Department of Homeland Security under section 3553(b)(9);
``(II) the results of penetration testing performed under
section 3559A;
``(III) information provided to the agency through the
vulnerability disclosure program of the agency under section
3559B;
``(IV) incidents; and
``(V) any other vulnerability information relating to
agency systems that is known to the agency;
``(vi) assessing the impacts of potential agency incidents
to agency systems, data, and operations based on the
evaluations described in clauses (ii) and (iv) and the agency
systems identified under clause (iii); and
``(vii) assessing the consequences of potential incidents
occurring on agency systems that would impact systems at
other agencies, including due to interconnectivity between
different agency systems or operational reliance on the
operations of the system or data in the system;'';
(III) in subparagraph (B), as so redesignated, in the
matter preceding clause (i), by striking ``providing
information'' and inserting ``using information from the
assessment required under subparagraph (A), providing
information'';
(IV) in subparagraph (C), as so redesignated--
(aa) in clause (ii) by inserting ``binding'' before
``operational''; and
(bb) in clause (vi), by striking ``and'' at the end; and
(V) by adding at the end the following:
``(E) providing an update on the ongoing and continuous
assessment required under subparagraph (A)--
``(i) upon request, to the inspector general of the agency
or the Comptroller General of the United States; and
``(ii) on a periodic basis, as determined by guidance
issued by the Director but not less frequently than annually,
to--
``(I) the Director;
``(II) the Director of the Cybersecurity and Infrastructure
Security Agency; and
``(III) the National Cyber Director;
``(F) in consultation with the Director of the
Cybersecurity and Infrastructure Security Agency and not less
frequently than once every 3 years, performing an evaluation
of whether additional cybersecurity procedures are
appropriate for securing a system of, or under the
supervision of, the agency, which shall--
``(i) be completed considering the agency system risk
assessment required under subparagraph (A); and
``(ii) include a specific evaluation for high value assets;
``(G) not later than 30 days after completing the
evaluation performed under subparagraph (F), providing the
evaluation and an implementation plan, if applicable, for
using additional cybersecurity procedures determined to be
appropriate to--
``(i) the Director of the Cybersecurity and Infrastructure
Security Agency;
``(ii) the Director; and
``(iii) the National Cyber Director; and
``(H) if the head of the agency determines there is need
for additional cybersecurity procedures, ensuring that those
additional cybersecurity procedures are reflected in the
budget request of the agency;'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by inserting ``in accordance with
the agency system risk assessment required under paragraph
(1)(A)'' after ``information systems'';
(II) in subparagraph (B)--
(aa) by striking ``in accordance with standards'' and
inserting ``in accordance with--
``(i) standards''; and
(bb) by adding at the end the following:
``(ii) the evaluation performed under paragraph (1)(F); and
``(iii) the implementation plan described in paragraph
(1)(G);''; and
(III) in subparagraph (D), by inserting ``, through the use
of penetration testing, the vulnerability disclosure program
established under section 3559B, and other means,'' after
``periodically'';
(iii) in paragraph (3)--
(I) in subparagraph (A)--
(aa) in clause (iii), by striking ``and'' at the end;
(bb) in clause (iv), by adding ``and'' at the end; and
(cc) by adding at the end the following:
``(v) ensure that--
``(I) senior agency information security officers of
component agencies carry out responsibilities under this
subchapter, as directed by the senior agency information
security officer of the agency or an equivalent official; and
``(II) senior agency information security officers of
component agencies report to--
[[Page S5293]]
``(aa) the senior information security officer of the
agency or an equivalent official; and
``(bb) the Chief Information Officer of the component
agency or an equivalent official;''; and
(iv) in paragraph (5), by inserting ``and the Director of
the Cybersecurity and Infrastructure Security Agency'' before
``on the effectiveness'';
(B) in subsection (b)--
(i) by striking paragraph (1) and inserting the following:
``(1) the ongoing and continuous assessment of agency
system risk required under subsection (a)(1)(A), which may
include using guidance and automated tools consistent with
standards and guidelines promulgated under section 11331 of
title 40, as applicable;'';
(ii) in paragraph (2)--
(I) by striking subparagraph (B) and inserting the
following:
``(B) comply with the risk-based budget model developed
pursuant to section 3553(a)(7);''; and
(II) in subparagraph (D)--
(aa) by redesignating clauses (iii) and (iv) as clauses
(iv) and (v), respectively;
(bb) by inserting after clause (ii) the following:
``(iii) binding operational directives and emergency
directives issued by the Secretary under section 3553;''; and
(cc) in clause (iv), as so redesignated, by striking ``as
determined by the agency; and'' and inserting ``as determined
by the agency, considering the agency risk assessment
required under subsection (a)(1)(A);
(iii) in paragraph (5)(A), by inserting ``, including
penetration testing, as appropriate,'' after ``shall include
testing'';
(iv) by redesignating paragraphs (7) and (8) as paragraphs
(8) and (9), respectively;
(v) by inserting after paragraph (6) the following:
``(7) a process for providing the status of every remedial
action and unremediated identified system vulnerability to
the Director and the Director of the Cybersecurity and
Infrastructure Security Agency, using automation and machine-
readable data to the greatest extent practicable;''; and
(vi) in paragraph (8)(C), as so redesignated--
(I) by striking clause (ii) and inserting the following:
``(ii) notifying and consulting with the Federal
information security incident center established under
section 3556 pursuant to the requirements of section 3594;'';
(II) by redesignating clause (iii) as clause (iv);
(III) by inserting after clause (ii) the following:
``(iii) performing the notifications and other activities
required under subchapter IV of this chapter; and''; and
(IV) in clause (iv), as so redesignated--
(aa) in subclause (II), by adding ``and'' at the end;
(bb) by striking subclause (III); and
(cc) by redesignating subclause (IV) as subclause (III);
(C) in subsection (c)--
(i) by redesignating paragraph (2) as paragraph (5);
(ii) by striking paragraph (1) and inserting the following:
``(1) Biennial report.--Not later than 2 years after the
date of enactment of the Federal Information Security
Modernization Act of 2022 and not less frequently than once
every 2 years thereafter, using the continuous and ongoing
agency system risk assessment required under subsection
(a)(1)(A), the head of each agency shall submit to the
Director, the Director of the Cybersecurity and
Infrastructure Security Agency, the majority and minority
leaders of the Senate, the Speaker and minority leader of the
House of Representatives, the Committee on Homeland Security
and Governmental Affairs of the Senate, the Committee on
Oversight and Reform of the House of Representatives, the
Committee on Homeland Security of the House of
Representatives, the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on Science,
Space, and Technology of the House of Representatives, the
appropriate authorization and appropriations committees of
Congress, the National Cyber Director, and the Comptroller
General of the United States a report that--
``(A) summarizes the agency system risk assessment required
under subsection (a)(1)(A);
``(B) evaluates the adequacy and effectiveness of
information security policies, procedures, and practices of
the agency to address the risks identified in the agency
system risk assessment required under subsection (a)(1)(A),
including an analysis of the agency's cybersecurity and
incident response capabilities using the metrics established
under section 224(c) of the Cybersecurity Act of 2015 (6
U.S.C. 1522(c));
``(C) summarizes the evaluation and implementation plans
described in subparagraphs (F) and (G) of subsection (a)(1)
and whether those evaluation and implementation plans call
for the use of additional cybersecurity procedures determined
to be appropriate by the agency; and
``(D) summarizes the status of remedial actions identified
by inspector general of the agency, the Comptroller General
of the United States, and any other source determined
appropriate by the head of the agency.
``(2) Unclassified reports.--Each report submitted under
paragraph (1)--
``(A) shall be, to the greatest extent practicable, in an
unclassified and otherwise uncontrolled form; and
``(B) may include a classified annex.
``(3) Access to information.--The head of an agency shall
ensure that, to the greatest extent practicable, information
is included in the unclassified form of the report submitted
by the agency under paragraph (2)(A).
``(4) Briefings.--During each year during which a report is
not required to be submitted under paragraph (1), the
Director shall provide to the congressional committees
described in paragraph (1) a briefing summarizing current
agency and Federal risk postures.''; and
(iii) in paragraph (5), as so redesignated, by striking the
period at the end and inserting ``, including the reporting
procedures established under section 11315(d) of title 40 and
subsection (a)(3)(A)(v) of this section'';
(D) in subsection (d)(1), in the matter preceding
subparagraph (A), by inserting ``and the National Cyber
Director'' after ``the Director''; and
(E) by adding at the end the following:
``(f) Reporting Structure Exemption.--
``(1) In general.--On an annual basis, the Director may
exempt an agency from the reporting structure requirement
under subsection (a)(3)(A)(v)(II).
``(2) Report.--On an annual basis, the Director shall
submit a report to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on
Oversight and Reform of the House of Representatives that
includes a list of each exemption granted under paragraph (1)
and the associated rationale for each exemption.
``(3) Component of other report.--The report required under
paragraph (2) may be incorporated into any other annual
report required under this chapter.'';
(4) in section 3555--
(A) in the section heading, by striking ``annual
independent'' and inserting ``independent'';
(B) in subsection (a)--
(i) in paragraph (1), by inserting ``during which a report
is required to be submitted under section 3553(c),'' after
``Each year'';
(ii) in paragraph (2)(A), by inserting ``, including by
performing, or reviewing the results of, agency penetration
testing and analyzing the vulnerability disclosure program of
the agency'' after ``information systems''; and
(iii) by adding at the end the following:
``(3) An evaluation under this section may include
recommendations for improving the cybersecurity posture of
the agency.'';
(C) in subsection (b)(1), by striking ``annual'';
(D) in subsection (e)(1), by inserting ``during which a
report is required to be submitted under section 3553(c)''
after ``Each year'';
(E) in subsection (g)(2)--
(i) by striking ``this subsection shall'' and inserting
``this subsection--
``(A) shall'';
(ii) in subparagraph (A), as so designated, by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(B) identify any entity that performs an independent
evaluation under subsection (b).''; and
(F) by striking subsection (j) and inserting the following:
``(j) Guidance.--
``(1) In general.--The Director, in consultation with the
Director of the Cybersecurity and Infrastructure Security
Agency, the Chief Information Officers Council, the Council
of the Inspectors General on Integrity and Efficiency, and
other interested parties as appropriate, shall ensure the
development of risk-based guidance for evaluating the
effectiveness of an information security program and
practices
``(2) Priorities.--The risk-based guidance developed under
paragraph (1) shall include--
``(A) the identification of the most common successful
threat patterns experienced by each agency;
``(B) the identification of security controls that address
the threat patterns described in subparagraph (A);
``(C) any other security risks unique to the networks of
each agency; and
``(D) any other element the Director, in consultation with
the Director of the Cybersecurity and Infrastructure Security
Agency and the Council of the Inspectors General on Integrity
and Efficiency, determines appropriate.''; and
(5) in section 3556(a)--
(A) in the matter preceding paragraph (1), by inserting
``within the Cybersecurity and Infrastructure Security
Agency'' after ``incident center''; and
(B) in paragraph (4), by striking ``3554(b)'' and inserting
``3554(a)(1)(A)''.
(d) Conforming Amendments.--
(1) Table of sections.--The table of sections for chapter
35 of title 44, United States Code, is amended by striking
the item relating to section 3555 and inserting the
following:
``3555. Independent evaluation.''.
(2) OMB reports.--Section 226(c) of the Cybersecurity Act
of 2015 (6 U.S.C. 1524(c)) is amended--
(A) in paragraph (1)(B), in the matter preceding clause
(i), by striking ``annually thereafter'' and inserting
``thereafter during the years during which a report is
required to be submitted under section 3553(c) of title 44,
United States Code''; and
[[Page S5294]]
(B) in paragraph (2)(B), in the matter preceding clause
(i)--
(i) by striking ``annually thereafter'' and inserting
``thereafter during the years during which a report is
required to be submitted under section 3553(c) of title 44,
United States Code''; and
(ii) by striking ``the report required under section
3553(c) of title 44, United States Code'' and inserting
``that report''.
(3) NIST responsibilities.--Section 20(d)(3)(B) of the
National Institute of Standards and Technology Act (15 U.S.C.
278g-3(d)(3)(B)) is amended by striking ``annual''.
(e) Federal System Incident Response.--
(1) In general.--Chapter 35 of title 44, United States
Code, is amended by adding at the end the following:
``SUBCHAPTER IV--FEDERAL SYSTEM INCIDENT RESPONSE
``Sec. 3591. Definitions
``(a) In General.--Except as provided in subsection (b),
the definitions under sections 3502 and 3552 shall apply to
this subchapter.
``(b) Additional Definitions.--As used in this subchapter:
``(1) Appropriate reporting entities.--The term
`appropriate reporting entities' means--
``(A) the majority and minority leaders of the Senate;
``(B) the Speaker and minority leader of the House of
Representatives;
``(C) the Committee on Homeland Security and Governmental
Affairs of the Senate;
``(D) the Committee on Commerce, Science, and
Transportation of the Senate;
``(E) the Committee on Oversight and Reform of the House of
Representatives;
``(F) the Committee on Homeland Security of the House of
Representatives;
``(G) the Committee on Science, Space, and Technology of
the House of Representatives;
``(H) the appropriate authorization and appropriations
committees of Congress;
``(I) the Director;
``(J) the Director of the Cybersecurity and Infrastructure
Security Agency;
``(K) the National Cyber Director;
``(L) the Comptroller General of the United States; and
``(M) the inspector general of any impacted agency.
``(2) Awardee.--The term `awardee', with respect to an
agency--
``(A) means--
``(i) a contractor of an agency;
``(ii) the recipient of a grant from an agency;
``(iii) a party to a cooperative agreement with an agency;
and
``(iv) a party to an other transaction agreement with an
agency; and
``(B) includes a subgrantee of an entity described in
subparagraph (A).
``(3) Breach.--The term `breach'--
``(A) means the compromise, unauthorized disclosure,
unauthorized acquisition, or loss of control of personally
identifiable information or any similar occurrence; and
``(B) includes any additional meaning given the term in
policies, principles, standards, or guidelines issued by the
Director under section 3553(a).
``(4) Contractor.--The term `contractor' means a prime
contractor of an agency or a subcontractor of a prime
contractor of an agency that creates, collects, stores,
processes, maintains, or transmits Federal information.
``(5) Federal information.--The term `Federal information'
means information created, collected, processed, maintained,
disseminated, disclosed, or disposed of by or for the Federal
Government in any medium or form.
``(6) Federal information system.--The term `Federal
information system' means an information system used or
operated by an agency, a contractor, an awardee, or another
organization on behalf of an agency.
``(7) Intelligence community.--The term `intelligence
community' has the meaning given the term in section 3 of the
National Security Act of 1947 (50 U.S.C. 3003).
``(8) Nationwide consumer reporting agency.--The term
`nationwide consumer reporting agency' means a consumer
reporting agency described in section 603(p) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(p)).
``(9) Vulnerability disclosure.--The term `vulnerability
disclosure' means a vulnerability identified under section
3559B.
``Sec. 3592. Notification of breach
``(a) Notification.--As expeditiously as practicable and
without unreasonable delay, and in any case not later than 45
days after an agency has a reasonable basis to conclude that
a breach has occurred, the head of the agency, in
consultation with the senior privacy officer of the agency,
shall--
``(1) determine whether notice to any individual
potentially affected by the breach is appropriate based on an
assessment of the risk of harm to the individual that
considers--
``(A) the nature and sensitivity of the personally
identifiable information affected by the breach;
``(B) the likelihood of access to and use of the personally
identifiable information affected by the breach;
``(C) the type of breach; and
``(D) any other factors determined by the Director; and
``(2) as appropriate, provide written notice in accordance
with subsection (b) to each individual potentially affected
by the breach--
``(A) to the last known mailing address of the individual;
or
``(B) through an appropriate alternative method of
notification that the head of the agency or a designated
senior-level individual of the agency selects based on
factors determined by the Director.
``(b) Contents of Notice.--Each notice of a breach provided
to an individual under subsection (a)(2) shall include--
``(1) a brief description of the breach;
``(2) if possible, a description of the types of personally
identifiable information affected by the breach;
``(3) contact information of the agency that may be used to
ask questions of the agency, which--
``(A) shall include an e-mail address or another digital
contact mechanism; and
``(B) may include a telephone number, mailing address, or a
website;
``(4) information on any remedy being offered by the
agency;
``(5) any applicable educational materials relating to what
individuals can do in response to a breach that potentially
affects their personally identifiable information, including
relevant contact information for Federal law enforcement
agencies and each nationwide consumer reporting agency; and
``(6) any other appropriate information, as determined by
the head of the agency or established in guidance by the
Director.
``(c) Delay of Notification.--
``(1) In general.--The Attorney General, the Director of
National Intelligence, or the Secretary of Homeland Security
may delay a notification required under subsection (a) or (d)
if the notification would--
``(A) impede a criminal investigation or a national
security activity;
``(B) reveal sensitive sources and methods;
``(C) cause damage to national security; or
``(D) hamper security remediation actions.
``(2) Documentation.--
``(A) In general.--Any delay under paragraph (1) shall be
reported in writing to the Director, the Attorney General,
the Director of National Intelligence, the Secretary of
Homeland Security, the National Cyber Director, the Director
of the Cybersecurity and Infrastructure Security Agency, and
the head of the agency and the inspector general of the
agency that experienced the breach.
``(B) Contents.--A report required under subparagraph (A)
shall include a written statement from the entity that
delayed the notification explaining the need for the delay.
``(C) Form.--The report required under subparagraph (A)
shall be unclassified but may include a classified annex.
``(3) Renewal.--A delay under paragraph (1) shall be for a
period of 60 days and may be renewed.
``(d) Update Notification.--If an agency determines there
is a significant change in the reasonable basis to conclude
that a breach occurred, a significant change to the
determination made under subsection (a)(1), or that it is
necessary to update the details of the information provided
to potentially affected individuals as described in
subsection (b), the agency shall as expeditiously as
practicable and without unreasonable delay, and in any case
not later than 30 days after such a determination, notify
each individual who received a notification pursuant to
subsection (a) of those changes.
``(e) Delay and Lack of Notification Report.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Federal Information Security Modernization
Act of 2022, and annually thereafter, an official who delays
a notification under subsection (c) shall submit to the
appropriate reporting entities a report on the delay.
``(2) Lack of breach notification.--The Director shall
submit to the appropriate reporting entities an annual report
on each breach with respect to which the head of an agency
determined, pursuant to subsection (a)(1), not to notify
individuals potentially impacted by the breach.
``(3) Component of other report.--The Director may submit
the report required under paragraph (1) as a component of the
annual report submitted under section 3597(b).
``(f) Congressional Reporting Requirements.--
``(1) In general.--On a periodic basis, the Director of the
Office of Management and Budget shall update breach
notification policies and guidelines for agencies.
``(2) Required notice from agencies.--Subject to paragraph
(4), the Director of the Office of Management and Budget
shall require the head of an agency affected by a breach to
expeditiously and not later than 30 days after the date on
which the agency discovers the breach give notice of the
breach to--
``(A) each congressional committee described in section
3554(c)(1); and
``(B) the Committee on the Judiciary of the Senate and the
Committee on the Judiciary of the House of Representatives.
``(3) Contents of notice.--Notice of a breach provided by
the head of an agency pursuant to paragraph (2) shall
include--
``(A) information about the breach, including a summary of
any information about how the breach occurred known by the
agency as of the date of the notice;
``(B) an estimate of the number of individuals affected by
the breach based on information known by the agency as of the
date of the notice, including an assessment of the risk of
harm to affected individuals;
``(C) a description of any circumstances necessitating a
delay in providing notice to individuals affected by the
breach; and
[[Page S5295]]
``(D) an estimate of whether and when the agency will
provide notice to individuals affected by the breach.
``(4) Exception.--An element of the intelligence community
that is required to provide notice pursuant to paragraph (2)
shall only provide such notice to the appropriate committees
of Congress.
``(5) Rule of construction.--Nothing in paragraphs (1)
through (3) shall be construed to alter any authority of an
agency.
``(g) Rule of Construction.--Nothing in this section shall
be construed to limit--
``(1) the authority of the Director from issuing guidance
relating to notifications of, or the head of an agency from
notifying individuals potentially affected by, breaches that
are not determined to be major incidents;
``(2) the authority of the Director from issuing guidance
relating to notifications of major incidents;
``(3) the authority of the head of an agency from providing
more information than required under subsection (b) when
notifying individuals potentially affected by a breach; or
``(4) the timing of incident reporting or the types of
information included in incident reports provided, pursuant
to this subchapter, to--
``(A) the Director;
``(B) the National Cyber Director;
``(C) the Director of the Cybersecurity and Infrastructure
Security Agency; or
``(D) any other agency.
``Sec. 3593. Congressional and Executive Branch reports
``(a) Initial Report.--
``(1) In general.--Not later than 72 hours after an agency
has a reasonable basis to conclude that a major incident
occurred, the head of the agency impacted by the major
incident shall submit to the appropriate reporting entities a
written report and, to the extent practicable, provide a
briefing to the Committee on Homeland Security and
Governmental Affairs of the Senate, the Committee on
Commerce, Science, and Transportation of the Senate, the
Committee on Oversight and Reform of the House of
Representatives, the Committee on Homeland Security of the
House of Representatives, the Committee on Science, Space,
and Technology of the House of Representatives, and the
appropriate authorization and appropriations committees of
Congress.
``(2) Contents.--A report required under paragraph (1)
shall include, in a manner consistent with section 552a of
title 5, United States Code--
``(A) a summary of the information available about the
major incident, including how the major incident occurred
and, if applicable information relating to the major incident
as a breach, based on information available to agency
officials as of the date on which the agency submits the
report;
``(B) if applicable, a description and any associated
documentation of any circumstances necessitating a delay in a
notification to individuals potentially affected by the major
incident under section 3592(c);
``(C) if applicable, an assessment of the impacts to the
agency, the Federal Government, or the security of the United
States, based on information available to agency officials on
the date on which the agency submits the report;
``(D) if applicable, whether any ransom has been demanded
or paid, or is expected to be paid, by any entity operating a
Federal information system or with access to Federal
information or a Federal information system, including, as
available, the name of the entity demanding ransom, the date
of the demand, and the amount and type of currency demanded,
unless disclosure of such information will disrupt an active
Federal law enforcement or national security operation; and
``(E) information available about the major incident,
taking into account--
``(i) the information known at the time of the report;
``(ii) the sensitivity of the details associated with the
major incident; and
``(iii) the classification level of the information
contained in the report.
``(b) Supplemental Report.--Within a reasonable amount of
time, but not later than 30 days after the date on which an
agency submits a written report under subsection (a), the
head of the agency shall provide to the appropriate reporting
entities written updates, which may include classified
annexes, on the major incident and, to the extent
practicable, provide a briefing, which may include a
classified component, to the congressional committees
described in subsection (a)(1), including summaries of--
``(1) vulnerabilities, means by which the major incident
occurred, and impacts to the agency relating to the major
incident;
``(2) any risk assessment and subsequent risk-based
security implementation of the affected information system
before the date on which the major incident occurred;
``(3) the status of compliance of the affected information
system with applicable security requirements, including the
requirements of section 225(b)(2) of the Federal
Cybersecurity Enhancement Act of 2015 (6 U.S.C. 1523), at the
time of the major incident;
``(4) an estimate of the number of individuals potentially
affected by the major incident based on information available
to agency officials as of the date on which the agency
provides the update;
``(5) an assessment of the risk of harm to individuals
potentially affected by the major incident based on
information available to agency officials as of the date on
which the agency provides the update;
``(6) an update to the assessment of the risk to agency
operations, or to impacts on other agency or non-Federal
entity operations, affected by the major incident based on
information available to agency officials as of the date on
which the agency provides the update;
``(7) the detection, response, and remediation actions of
the agency, including any support provided by the
Cybersecurity and Infrastructure Security Agency under
section 3594(d) and status updates on the notification
process described in section 3592(a), including any delay
described in section 3592(c), if applicable; and
``(8) if applicable, a description of any data or
circumstances leading the head of the agency to determine,
pursuant to section 3592(a)(1), not to notify individuals
potentially impacted by a breach.
``(c) Update Report.--If the agency, the Director, or the
National Cyber Director, determines that there is any
significant change in the understanding of the scope, scale,
or consequence of a major incident for which an agency
submitted a written report under subsection (a), the agency
shall provide an updated report to the appropriate reporting
entities that includes information relating to the change in
understanding.
``(d) Biennial Report.--Each agency shall submit as part of
the biennial report required under section 3554(c)(1) a
description of each major incident that occurred during the
2-year period preceding the date on which the biennial report
is submitted.
``(e) Report Delivery.--Any written report required to be
submitted under this section may be submitted in a paper or
electronic format.
``(f) Threat Briefing.--
``(1) In general.--Not later than 7 days after the date on
which an agency has a reasonable basis to conclude that a
major incident occurred, the head of the impacted agency
shall coordinate with the National Cyber Director and consult
with the Director and any other Federal entity determined
appropriate by the National Cyber Director to provide a
briefing to the congressional committees described in
subsection (a)(1) on the threat causing the major incident.
``(2) Components.--The briefing required under paragraph
(1)--
``(A) shall, to the greatest extent practicable, include an
unclassified component; and
``(B) may include a classified component.
``(g) Report and Briefing Consistency.--To achieve
consistent and coherent agency reporting to Congress, the
National Cyber Director, in coordination with the Director,
shall--
``(1) provide recommendations to agencies on formatting and
the contents of information to be included in the reports and
briefings required under this section, including
recommendations for consistent formats for presenting any
associated metrics; and
``(2) maintain a comprehensive record of each major
incident report and briefing provided under this section,
which shall--
``(A) include, at a minimum--
``(i) the full contents of the report;
``(ii) the reporting agency; and
``(iii) the date of submission; and a list of the recipient
congressional entities; and
``(B) be made available upon request to the Committee on
Homeland Security and Governmental Affairs of the Senate and
the Committee on Oversight and Reform of the House of
Representatives.
``(h) Rule of Construction.--Nothing in this section shall
be construed to limit--
``(1) the ability of an agency to provide additional
reports or briefings to Congress; or
``(2) Congress from requesting additional information from
agencies through reports, briefings, or other means.
``Sec. 3594. Government information sharing and incident
response
``(a) In General.--
``(1) Incident reporting.--Subject to the limitations
described in subsection (b), the head of each agency shall
provide to the Cybersecurity and Infrastructure Security
Agency information relating to any incident affecting the
agency, whether the information is obtained by the Federal
Government directly or indirectly.
``(2) Contents.--A provision of information relating to an
incident made by the head of an agency under paragraph (1)
shall, at a minimum--
``(A) include detailed information about the safeguards
that were in place when the incident occurred;
``(B) identify whether the agency implemented the
safeguards described in subparagraph (A) correctly;
``(C) in order to protect against a similar incident,
identify--
``(i) how the safeguards described in subparagraph (A)
should be implemented differently; and
``(ii) additional necessary safeguards; and
``(D) include information to aid in incident response, such
as--
``(i) a description of the affected systems or networks;
``(ii) the estimated dates of when the incident occurred;
and
``(iii) information that could reasonably help identify the
party that conducted the incident or the cause of the
incident, subject to appropriate privacy protections.
[[Page S5296]]
``(3) Information sharing.--The Director of the
Cybersecurity and Infrastructure Security Agency shall--
``(A) make incident information provided under paragraph
(1) available to the Director and the National Cyber
Director;
``(B) to the greatest extent practicable, share information
relating to an incident with--
``(i) the head of any agency that may be--
``(I) impacted by the incident;
``(II) similarly susceptible to the incident; or
``(III) similarly targeted by the incident; and
``(ii) appropriate Federal law enforcement agencies to
facilitate any necessary threat response activities, as
requested;
``(C) coordinate any necessary information sharing efforts
relating to a major incident with the private sector; and
``(D) notify the National Cyber Director of any efforts
described in subparagraph (C).
``(4) National security systems.--Each agency operating or
exercising control of a national security system shall share
information about incidents that occur on national security
systems with the Director of the Cybersecurity and
Infrastructure Security Agency to the extent consistent with
standards and guidelines for national security systems issued
in accordance with law and as directed by the President.
``(b) Compliance.--In providing information and selecting a
method to provide information under subsection (a), the head
of each agency shall implement subsection (a)(1) in a manner
that enables automated and consistent reporting to the
greatest extent practicable.
``(c) Incident Response.--Each agency that has a reasonable
basis to suspect or conclude that a major incident occurred
involving Federal information in electronic medium or form
that does not exclusively involve a national security system,
regardless of delays from notification granted for a major
incident that is also a breach, shall coordinate with--
``(1) the Cybersecurity and Infrastructure Security Agency
to facilitate asset response activities and provide
recommendations for mitigating future incidents; and
``(2) consistent with relevant policies, appropriate
Federal law enforcement agencies to facilitate threat
response activities.
``Sec. 3595. Responsibilities of contractors and awardees
``(a) Reporting.--
``(1) In general.--With respect to the agency with which an
awardee has a contract, grant, cooperative agreement, or
other transaction agreement, within the same amount of time
that agency is required to report an incident to the
Cybersecurity and Infrastructure Security Agency under
section 3594(a), the awardee shall report to the head of that
agency and the Director of the Cybersecurity and
Infrastructure Security Agency if the awardee has a
reasonable basis to suspect or conclude that--
``(A) an incident or breach has occurred with respect to
Federal information collected, used, or maintained by the
awardee in connection with the contract, grant, cooperative
agreement, or other transaction agreement;
``(B) an incident or breach has occurred with respect to a
Federal information system used or operated by the awardee in
connection with the contract, grant, cooperative agreement,
or other transaction agreement; or
``(C) the awardee has received information from the agency
that the awardee is not authorized to receive in connection
with the contract, grant, cooperative agreement, or other
transaction agreement.
``(2) Procedures.--Following a report of a breach or
incident to an agency by an awardee under paragraph (1), the
head of the agency, in consultation with the awardee, shall
carry out the applicable requirements under sections 3592,
3593, and 3594 with respect to the breach or incident.
``(b) Regulations; Modifications.--Not later than 1 year
after the date of enactment of the Federal Information
Security Modernization Act of 2022, the head of each agency
shall--
``(1) promulgate regulations, policies, and procedures, as
appropriate, relating to the responsibilities of awardees to
comply with this section; and
``(2) modify each existing contract, grant, cooperative
agreement, and other transaction agreement of the agency to
comply with this section.
``Sec. 3596. Training
``(a) Covered Individual Defined.--In this section, the
term `covered individual' means an individual who obtains
access to Federal information or Federal information systems
because of the status of the individual as--
``(1) an employee, contractor, awardee, volunteer, or
intern of an agency; or
``(2) an employee of a contractor or awardee of an agency.
``(b) Guidance.--The Director, in coordination with the
Director of the Cybersecurity and Infrastructure Security
Agency and the Director of the National Institute of
Standards and Technology, shall develop guidance containing
minimum standards for training for covered individuals on how
to identify and respond to an incident, including--
``(1) the internal process of the agency for reporting an
incident, including the information to be collected and a
requirement that such information be reported in a machine-
readable format to the greatest extent practicable;
``(2) the obligation of a covered individual to report to
the agency any suspected or confirmed incident involving
Federal information in any medium or form, including paper,
oral, and electronic; and
``(3) appropriate training and qualification standards for
information technology personnel and cyber incident
responders.
``(c) Training.--The head of each agency shall develop
training for covered individuals that adheres to the guidance
developed under subsection (b).
``(d) Inclusion in Annual Training.--The training developed
under subsection (c) may be included as part of an annual
privacy or security awareness training of an agency.
``Sec. 3597. Analysis and report on Federal incidents
``(a) Analysis of Federal Incidents.--
``(1) Quantitative and qualitative analyses.--The Director
of the Cybersecurity and Infrastructure Security Agency shall
perform and, in consultation with the Director and the
National Cyber Director, develop, continuous monitoring and
quantitative and qualitative analyses of incidents at
agencies, including major incidents, including--
``(A) the causes of incidents, including--
``(i) attacker tactics, techniques, and procedures; and
``(ii) system vulnerabilities, including zero days,
unpatched systems, and information system misconfigurations;
``(B) the scope and scale of incidents at agencies;
``(C) common root causes of incidents across multiple
agencies;
``(D) agency incident response, recovery, and remediation
actions and the effectiveness of those actions, as
applicable;
``(E) lessons learned and recommendations in responding to,
recovering from, remediating, and mitigating future
incidents; and
``(F) trends across multiple agencies to address intrusion
detection and incident response capabilities using the
metrics established under section 224(c) of the Cybersecurity
Act of 2015 (6 U.S.C. 1522(c)).
``(2) Automated analysis.--The analyses developed under
paragraph (1) shall, to the greatest extent practicable, use
machine readable data, automation, and machine learning
processes.
``(3) Sharing of data and analysis.--
``(A) In general.--The Director of the Cybersecurity and
Infrastructure Security Agency shall share on an ongoing
basis the analyses required under this subsection with
agencies, the Director, and the National Cyber Director to--
``(i) improve the understanding of cybersecurity risk of
agencies; and
``(ii) support the cybersecurity improvement efforts of
agencies.
``(B) Format.--In carrying out subparagraph (A), the
Director of the Cybersecurity and Infrastructure Security
Agency shall share the analyses--
``(i) in human-readable written products; and
``(ii) to the greatest extent practicable, in machine-
readable formats in order to enable automated intake and use
by agencies.
``(b) Annual Report on Federal Incidents.--Not later than 2
years after the date of enactment of this section, and not
less frequently than annually thereafter, the Director of the
Cybersecurity and Infrastructure Security Agency, in
consultation with the Director, the National Cyber Director
and the heads of other agencies, as appropriate, shall submit
to the appropriate reporting entities a report that
includes--
``(1) a summary of causes of incidents from across the
Federal Government that categorizes those incidents as
incidents or major incidents;
``(2) the quantitative and qualitative analyses of
incidents developed under subsection (a)(1) on an agency-by-
agency basis and comprehensively across the Federal
Government, including--
``(A) a specific analysis of breaches; and
``(B) an analysis of the Federal Government's performance
against the metrics established under section 224(c) of the
Cybersecurity Act of 2015 (6 U.S.C. 1522(c)); and
``(3) an annex for each agency that includes--
``(A) a description of each major incident;
``(B) the total number of incidents of the agency; and
``(C) an analysis of the agency's performance against the
metrics established under section 224(c) of the Cybersecurity
Act of 2015 (6 U.S.C. 1522(c)).
``(c) Publication.--
``(1) In general.--A version of each report submitted under
subsection (b) shall be made publicly available on the
website of the Cybersecurity and Infrastructure Security
Agency during the year during which the report is submitted.
``(2) Exemption.--The Director of the Cybersecurity and
Infrastructure Security Agency shall exempt all or a portion
of a report described in paragraph (1) from public
publication if the Director of the Cybersecurity and
Infrastructure Security Agency or the National Cyber Director
determines the exemption is in the interest of national
security.
``(3) Limitation on exemption.--An exemption granted under
paragraph (2) shall not apply to any version of a report
submitted to the appropriate reporting entities under
subsection (b).
``(d) Information Provided by Agencies.--
[[Page S5297]]
``(1) In general.--The analysis required under subsection
(a) and each report submitted under subsection (b) shall use
information provided by agencies under section 3594(a).
``(2) Noncompliance reports.--
``(A) In general.--Subject to subparagraph (B), during any
year during which the head of an agency does not provide data
for an incident to the Cybersecurity and Infrastructure
Security Agency in accordance with section 3594(a), the head
of the agency, in coordination with the Director of the
Cybersecurity and Infrastructure Security Agency and the
Director, shall submit to the appropriate reporting entities
a report that includes the information described in
subsection (b) with respect to the agency.
``(B) Exception for national security systems.--The head of
an agency that owns or exercises control of a national
security system shall not include data for an incident that
occurs on a national security system in any report submitted
under subparagraph (A).
``(3) National security system reports.--
``(A) In general.--Annually, the head of an agency that
operates or exercises control of a national security system
shall submit a report that includes the information described
in subsection (b) with respect to the national security
system to the extent that the submission is consistent with
standards and guidelines for national security systems issued
in accordance with law and as directed by the President to--
``(i) the majority and minority leaders of the Senate,
``(ii) the Speaker and minority leader of the House of
Representatives;
``(iii) the Committee on Homeland Security and Governmental
Affairs of the Senate;
``(iv) the Select Committee on Intelligence of the Senate;
``(v) the Committee on Armed Services of the Senate;
``(vi) the Committee on Appropriations of the Senate;
``(vii) the Committee on Oversight and Reform of the House
of Representatives;
``(viii) the Committee on Homeland Security of the House of
Representatives;
``(ix) the Permanent Select Committee on Intelligence of
the House of Representatives;
``(x) the Committee on Armed Services of the House of
Representatives; and
``(xi) the Committee on Appropriations of the House of
Representatives.
``(B) Classified form.--A report required under
subparagraph (A) may be submitted in a classified form.
``(e) Requirement for Compiling Information.--In publishing
the public report required under subsection (c), the Director
of the Cybersecurity and Infrastructure Security Agency shall
sufficiently compile information such that no specific
incident of an agency can be identified, except with the
concurrence of the Director and the National Cyber Director,
and in consultation with the impacted agency.
``Sec. 3598. Major incident definition
``(a) In General.--Not later than 1 year after the date of
enactment of the Federal Information Security Modernization
Act of 2022, the Director, in coordination with the Director
of the Cybersecurity and Infrastructure Security Agency and
the National Cyber Director, shall develop and promulgate
guidance on the definition of the term `major incident' for
the purposes of subchapter II and this subchapter.
``(b) Requirements.--With respect to the guidance issued
under subsection (a), the definition of the term `major
incident' shall--
``(1) include, with respect to any information collected or
maintained by or on behalf of an agency or an information
system used or operated by an agency or by a contractor of an
agency or another organization on behalf of an agency--
``(A) any incident the head of the agency determines is
likely to have an impact on--
``(i) the national security, foreign relations, homeland
security, or economic security of the United States; or
``(ii) the civil liberties, public confidence, privacy, or
public health and safety of the people of the United States;
``(B) any incident the head of the agency determines likely
to result in an inability for the agency, a component of the
agency, or the Federal Government, to provide 1 or more
critical services;
``(C) any incident the head of the agency determines
substantially disrupts or substantially degrades the
operations of a high value asset owned or operated by the
agency;
``(D) any incident involving the exposure to a foreign
entity of sensitive agency information, such as the
communications of the head of the agency, the head of a
component of the agency, or the direct reports of the head of
the agency or the head of a component of the agency; and
``(E) any other type of incident determined appropriate by
the Director;
``(2) stipulate that the National Cyber Director, in
consultation with the Director and the Director of the
Cybersecurity and Infrastructure Security Agency, may declare
a major incident at any agency;
``(3) stipulate that the National Cyber Director, in
consultation with the Director and the Director of the
Cybersecurity and Infrastructure Security Agency, shall
consider declaring a major incident at any agency impacted by
an incident if it is determined that an incident--
``(A) occurs at not less than 2 agencies; and
``(B) is enabled by--
``(i) a common technical root cause, such as a supply chain
compromise, or a common software or hardware vulnerability;
or
``(ii) the related activities of a common threat actor;
``(4) stipulate that, in determining whether an incident
constitutes a major incident under the standards described in
paragraph (1), the head of the agency shall consult with the
National Cyber Director, the Director, and the Director of
the Cybersecurity and Infrastructure Security Agency; and
``(5) stipulate that the mere report of a vulnerability
discovered or disclosed without a loss of confidentiality,
integrity, or availability shall not on its own constitute a
major incident.
``(c) Evaluation and Updates.--Not later than 2 years after
the date on which the Director promulgates the guidance
required under subsection (a), and not less frequently than
every 2 years thereafter, the Director shall provide to the
Committee on Homeland Security and Governmental Affairs of
the Senate and the Committee on Oversight and Reform of the
House of Representatives a briefing that includes--
``(1) an evaluation of any necessary updates to the
guidance;
``(2) an evaluation of any necessary updates to the
definition of the term `major incident' included in the
guidance; and
``(3) an explanation of, and the analysis that led to, the
definition described in paragraph (2).''.
(2) Clerical amendment.--The table of sections for chapter
35 of title 44, United States Code, is amended by adding at
the end the following:
``subchapter iv--federal system incident response
``3591. Definitions.
``3592. Notification of breach.
``3593. Congressional and Executive Branch reports.
``3594. Government information sharing and incident response.
``3595. Responsibilities of contractors and awardees.
``3596. Training.
``3597. Analysis and report on Federal incidents.
``3598. Major incident definition.''.
SEC. __04. AMENDMENTS TO SUBTITLE III OF TITLE 40.
(a) Modernizing Government Technology.--Subtitle G of title
X of Division A of the National Defense Authorization Act for
Fiscal Year 2018 (40 U.S.C. 11301 note) is amended in section
1078--
(1) by striking subsection (a) and inserting the following:
``(a) Definitions.--In this section:
``(1) Agency.--The term `agency' has the meaning given the
term in section 551 of title 5, United States Code.
``(2) High value asset.--The term `high value asset' has
the meaning given the term in section 3552 of title 44,
United States Code.'';
(2) in subsection (b), by adding at the end the following:
``(8) Proposal evaluation.--The Director shall--
``(A) give consideration for the use of amounts in the Fund
to improve the security of high value assets; and
``(B) require that any proposal for the use of amounts in
the Fund includes, as appropriate and to be reviewed by the
member of the Technology Modernization Board described in
subsection (c)(5)(C)--
``(i) a cybersecurity risk management plan; and
``(ii) a supply chain risk management plan.''; and
(3) in subsection (c)--
(A) in paragraph (2)(A)(i), by inserting ``, including a
consideration of the impact on high value assets'' after
``operational risks'';
(B) in paragraph (5)--
(i) in subparagraph (A), by striking ``and'' at the end;
(ii) in subparagraph (B), by striking the period at the end
and inserting ``and''; and
(iii) by adding at the end the following:
``(C) a senior official from the Cybersecurity and
Infrastructure Security Agency of the Department of Homeland
Security, appointed by the Director.''; and
(C) in paragraph (6)(A), by striking ``shall be--'' and all
that follows through ``4 employees'' and inserting ``shall be
4 employees''.
(b) Subchapter I.--Subchapter I of chapter 113 of subtitle
III of title 40, United States Code, is amended--
(1) in section 11302--
(A) in subsection (b), by striking ``use, security, and
disposal of'' and inserting ``use, and disposal of, and, in
consultation with the Director of the Cybersecurity and
Infrastructure Security Agency and the National Cyber
Director, promote and improve the security of,'';
(B) in subsection (c)(3)--
(i) in subparagraph (A)--
(I) by striking ``including data'' and inserting ``which
shall--
``(i) include data''; and
(II) by adding at the end the following:
``(ii) specifically denote cybersecurity funding under the
risk-based budget model developed pursuant to section
3553(a)(7) of title 44.''; and
(ii) in subparagraph (B), by adding at the end the
following:
``(iii) The Director shall provide to the National Cyber
Director any cybersecurity funding information described in
subparagraph (A)(ii) that is provided to the Director under
clause (ii) of this subparagraph.''; and
[[Page S5298]]
(C) in subsection (h), by inserting ``, including
cybersecurity performances,'' after ``the performances''; and
(2) in section 11303(b)--
(A) in paragraph (2)(B)--
(i) in clause (i), by striking ``or'' at the end;
(ii) in clause (ii), by adding ``or'' at the end; and
(iii) by adding at the end the following:
``(iii) whether the function should be performed by a
shared service offered by another executive agency;''; and
(B) in paragraph (5)(B)(i), by inserting ``, while taking
into account the risk-based budget model developed pursuant
to section 3553(a)(7) of title 44'' after ``title 31''.
(c) Subchapter II.--Subchapter II of chapter 113 of
subtitle III of title 40, United States Code, is amended--
(1) in section 11312(a), by inserting ``, including
security risks'' after ``managing the risks'';
(2) in section 11313(1), by striking ``efficiency and
effectiveness'' and inserting ``efficiency, security, and
effectiveness'';
(3) in section 11315, by adding at the end the following:
``(d) Component Agency Chief Information Officers.--The
Chief Information Officer or an equivalent official of a
component agency shall report to--
``(1) the Chief Information Officer designated under
section 3506(a)(2) of title 44 or an equivalent official of
the agency of which the component agency is a component; and
``(2) the head of the component agency.
``(e) Reporting Structure Exemption.--
``(1) In general.--On annual basis, the Director may exempt
any agency from the reporting structure requirements under
subsection (d).
``(2) Report.--On an annual basis, the Director shall
submit to the Committee on Homeland Security and Governmental
Affairs of the Senate and the Committee on Oversight and
Reform of the House of Representatives a report that includes
a list of each exemption granted under paragraph (1) and the
associated rationale for each exemption.
``(3) Component of other report.--The report required under
paragraph (2) may be incorporated into any other annual
report required under chapter 35 of title 44, United States
Code.'';
(4) in section 11317, by inserting ``security,'' before
``or schedule''; and
(5) in section 11319(b)(1), in the paragraph heading, by
striking ``CIOS'' and inserting ``Chief information
officers''.
SEC. __05. ACTIONS TO ENHANCE FEDERAL INCIDENT TRANSPARENCY.
(a) Responsibilities of the Cybersecurity and
Infrastructure Security Agency.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Director of the Cybersecurity and
Infrastructure Security Agency shall--
(A) develop a plan for the development of the analysis
required under section 3597(a) of title 44, United States
Code, as added by this division, and the report required
under subsection (b) of that section that includes--
(i) a description of any challenges the Director of the
Cybersecurity and Infrastructure Security Agency anticipates
encountering; and
(ii) the use of automation and machine-readable formats for
collecting, compiling, monitoring, and analyzing data; and
(B) provide to the appropriate congressional committees a
briefing on the plan developed under subparagraph (A).
(2) Briefing.--Not later than 1 year after the date of
enactment of this Act, the Director of the Cybersecurity and
Infrastructure Security Agency shall provide to the
appropriate congressional committees a briefing on--
(A) the execution of the plan required under paragraph
(1)(A); and
(B) the development of the report required under section
3597(b) of title 44, United States Code, as added by this
division.
(b) Responsibilities of the Director of the Office of
Management and Budget.--
(1) Updating fisma 2014.--Section 2 of the Federal
Information Security Modernization Act of 2014 (Public Law
113-283; 128 Stat. 3073) is amended--
(A) by striking subsections (b) and (d); and
(B) by redesignating subsections (c), (e), and (f) as
subsections (b), (c), and (d), respectively.
(2) Incident data sharing.--
(A) In general.--The Director shall develop guidance, to be
updated not less frequently than once every 2 years, on the
content, timeliness, and format of the information provided
by agencies under section 3594(a) of title 44, United States
Code, as added by this division.
(B) Requirements.--The guidance developed under
subparagraph (A) shall--
(i) enable the efficient development of--
(I) lessons learned and recommendations in responding to,
recovering from, remediating, and mitigating future
incidents; and
(II) the report on Federal incidents required under section
3597(b) of title 44, United States Code, as added by this
division;
(ii) include requirements for the timeliness of data
production; and
(iii) include requirements for using automation and
machine-readable data for data sharing and availability.
(3) Guidance on responding to information requests.--Not
later than 1 year after the date of enactment of this Act,
the Director shall develop guidance for agencies to implement
the requirement under section 552a(b)(13) of title 5, United
States Code, as added by this section, to provide information
to other agencies experiencing incidents.
(4) Standard guidance and templates.--Not later than 1 year
after the date of enactment of this Act, the Director, in
consultation with the Director of the Cybersecurity and
Infrastructure Security Agency, shall develop guidance and,
as appropriate, templates, to be reviewed and, if necessary,
updated not less frequently than once every 2 years, for use
by agencies in the activities required under sections 3592,
3593, and 3596 of title 44, United States Code, as added by
this division.
(5) Contractor and awardee guidance.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, the Director, in coordination with the
Secretary of Homeland Security, the Secretary of Defense, the
Administrator of General Services, and the heads of other
agencies determined appropriate by the Director, shall issue
guidance to agencies on how to deconflict, to the greatest
extent practicable, existing regulations, policies, and
procedures relating to the responsibilities of contractors
and awardees established under section 3595 of title 44,
United States Code, as added by this division.
(B) Existing processes.--To the greatest extent
practicable, the guidance issued under subparagraph (A) shall
allow contractors and awardees to use existing processes for
notifying agencies of incidents involving information of the
Federal Government.
(6) Updated briefings.--Not later than 30 days after the
Director updates guidance or templates under paragraph (2)(A)
or (4), the Director shall provide to the appropriate
congressional committees a briefing on such updates.
(c) Update to the Privacy Act of 1974.--Section 552a(b) of
title 5, United States Code (commonly known as the ``Privacy
Act of 1974'') is amended--
(1) in paragraph (11), by striking ``or'' at the end;
(2) in paragraph (12), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(13) to another agency, to the extent necessary, in
furtherance of a response to an incident (as defined in
section 3552 of title 44) or to fulfill the information
sharing requirements under section 3594 of title 44, provided
that the disclosing agency maintains documentation specifying
the particular portion shared and the activity for which the
record is disclosed.''.
SEC. __06. ADDITIONAL GUIDANCE TO AGENCIES ON FISMA UPDATES.
Not later than 1 year after the date of enactment of this
Act, the Director, in consultation with the Director of the
Cybersecurity and Infrastructure Security Agency, shall issue
guidance for agencies on--
(1) performing the ongoing and continuous agency system
risk assessment required under section 3554(a)(1)(A) of title
44, United States Code, as amended by this division;
(2) implementing additional cybersecurity procedures, which
shall include opportunities for shared services;
(3) establishing a process for providing the status of each
remedial action under section 3554(b)(7) of title 44, United
States Code, as amended by this division, to the Director and
the Director of the Cybersecurity and Infrastructure Security
Agency using automation and machine-readable data, as
practicable, which shall include--
(A) specific guidance for the use of automation and
machine-readable data; and
(B) templates for providing the status of the remedial
action; and
(4) a requirement to coordinate with inspectors general of
agencies to ensure consistent understanding and application
of agency policies for the purpose of evaluations by
inspectors general.
SEC. __07. AGENCY REQUIREMENTS TO NOTIFY PRIVATE SECTOR
ENTITIES IMPACTED BY INCIDENTS.
(a) Definitions.--In this section:
(1) Reporting entity.--The term ``reporting entity'' means
private organization or governmental unit that is required by
statute or regulation to submit sensitive information to an
agency.
(2) Sensitive information.--The term ``sensitive
information'' has the meaning given the term by the Director
in guidance issued under subsection (b).
(b) Guidance on Notification of Reporting Entities.--Not
later than 1 year after the date of enactment of this Act,
the Director shall issue guidance requiring the head of each
agency to notify a reporting entity of an incident that is
likely to substantially affect--
(1) the confidentiality or integrity of sensitive
information submitted by the reporting entity to the agency
pursuant to a statutory or regulatory requirement; or
(2) any agency information system used in the transmission
or storage of the sensitive information described in
paragraph (1).
SEC. __08. MOBILE SECURITY STANDARDS.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Director shall--
(1) evaluate mobile application security guidance
promulgated by the Director; and
(2) issue guidance to secure mobile devices, including for
mobile applications, for every agency.
(b) Contents.--The guidance issued under subsection (a)(2)
shall include--
[[Page S5299]]
(1) a requirement, pursuant to section 3506(b)(4) of title
44, United States Code, for every agency to maintain a
continuous inventory of every--
(A) mobile device operated by or on behalf of the agency;
and
(B) vulnerability identified by the agency associated with
a mobile device;
(2) a requirement for each agency to perform continuous
evaluation of the vulnerabilities described in paragraph
(1)(B) and other risks associated with the use of
applications on mobile devices; and
(3) instructions on sharing the inventory of the agency
required under paragraph (1) with the Director of the
Cybersecurity and Infrastructure Security Agency, using
automation and machine-readable data to the greatest extent
practicable.
(c) Briefing.--Not later than 60 days after the date on
which the Director issues guidance under subsection (a)(2),
the Director, in coordination with the Director of the
Cybersecurity and Infrastructure Security Agency, shall
provide to the appropriate congressional committees a
briefing on the guidance.
SEC. __09. DATA AND LOGGING RETENTION FOR INCIDENT RESPONSE.
(a) Recommendations.--Not later than 2 years after the date
of enactment of this Act, and not less frequently than every
2 years thereafter, the Director of the Cybersecurity and
Infrastructure Security Agency, in consultation with the
Attorney General, shall submit to the Director
recommendations on requirements for logging events on agency
systems and retaining other relevant data within the systems
and networks of an agency.
(b) Contents.--The recommendations provided under
subsection (a) shall include--
(1) the types of logs to be maintained;
(2) the duration that logs and other relevant data should
be retained;
(3) the time periods for agency implementation of
recommended logging and security requirements;
(4) how to ensure the confidentiality, integrity, and
availability of logs;
(5) requirements to ensure that, upon request, in a manner
consistent section 552a of title 5, United States Code,
agencies provide logs to--
(A) the Director of the Cybersecurity and Infrastructure
Security Agency for a cybersecurity purpose; and
(B) the Director of the Federal Bureau of Investigation, or
the appropriate Federal law enforcement agency, to
investigate potential criminal activity; and
(6) requirements to ensure that the highest level security
operations center of each agency has visibility into all
agency logs.
(c) Guidance.--Not later than 90 days after receiving the
recommendations submitted under subsection (a), the Director,
in consultation with the National Cyber Director, the
Director of the Cybersecurity and Infrastructure Security
Agency and the Attorney General, shall, as determined to be
appropriate by the Director, update guidance to agencies
regarding requirements for logging, log retention, log
management, sharing of log data with other appropriate
agencies, or any other logging activity determined to be
appropriate by the Director.
(d) Sunset.--This section shall cease to have force or
effect on the date that is 10 years after the date of the
enactment of this Act.
SEC. __10. CISA AGENCY ADVISORS.
(a) In General.--Not later than 120 days after the date of
enactment of this Act, the Director of the Cybersecurity and
Infrastructure Security Agency shall assign not less than 1
cybersecurity professional employed by the Cybersecurity and
Infrastructure Security Agency to be the Cybersecurity and
Infrastructure Security Agency advisor to the senior agency
information security officer of each agency.
(b) Qualifications.--Each advisor assigned under subsection
(a) shall have knowledge of--
(1) cybersecurity threats facing agencies, including any
specific threats to the assigned agency;
(2) performing risk assessments of agency systems; and
(3) other Federal cybersecurity initiatives.
(c) Duties.--The duties of each advisor assigned under
subsection (a) shall include--
(1) providing ongoing assistance and advice, as requested,
to the agency Chief Information Officer;
(2) serving as an incident response point of contact
between the assigned agency and the Cybersecurity and
Infrastructure Security Agency; and
(3) familiarizing themselves with agency systems,
processes, and procedures to better facilitate support to the
agency in responding to incidents.
(d) Limitation.--An advisor assigned under subsection (a)
shall not be a contractor.
(e) Multiple Assignments.--One individual advisor may be
assigned to multiple agency Chief Information Officers under
subsection (a).
(f) Coordination of Activities.--The Director of the
Cybersecurity and Infrastructure Security Agency shall
consult with the Director on the execution of the duties of
the Cybersecurity and Infrastructure Security Agency advisors
to ensure that there is no inappropriate duplication of
activities among--
(1) Federal cybersecurity support to agencies of the Office
of Management and Budget; and
(2) the Cybersecurity and Infrastructure Security Agency
advisors.
(g) Rule of Construction.--Nothing in this section shall be
construed impact the ability of the Director to support
agency implementation of Federal cybersecurity requirements
pursuant to subchapter II of chapter 35 of title 44, United
States Code, as amended by this Act.
SEC. __11. FEDERAL PENETRATION TESTING POLICY.
(a) In General.--Subchapter II of chapter 35 of title 44,
United States Code, is amended by adding at the end the
following:
``Sec. 3559A. Federal penetration testing
``(a) Guidance.--The Director, in consultation with the
Director of the Cybersecurity and Infrastructure Security
Agency, shall issue guidance to agencies that--
``(1) requires agencies to use, when and where appropriate,
penetration testing by both Federal and non-Federal entities
on agency systems with a focus on high value assets;
``(2) provides policies governing the development of--
``(A) an agency operational plan;
``(B) rules of engagement for using penetration testing;
and
``(C) procedures to use the results of penetration testing
to improve the cybersecurity and risk management of the
agency;
``(3) ensures that--
``(A) penetration testing is performed appropriately by
agencies; and
``(B) operational support or a shared service is available;
and
``(4) in no manner restricts the authority of the Secretary
of Homeland Security or the Director of the Cybersecurity and
Infrastructure Agency to conduct threat hunting pursuant to
section 3553 of title 44, United States Code, or penetration
testing under this chapter.
``(b) Exception for National Security Systems.--The
guidance issued under subsection (a) shall not apply to
national security systems.
``(c) Delegation of Authority for Certain Systems.--The
authorities of the Director described in subsection (a) shall
be delegated to--
``(1) the Secretary of Defense in the case of a system
described in section 3553(e)(2); and
``(2) the Director of National Intelligence in the case of
a system described in section 3553(e)(3).''.
(b) Deadline for Guidance.--Not later than 1 year after the
date of enactment of this Act, the Director shall issue the
guidance required under section 3559A(a) of title 44, United
States Code, as added by subsection (a).
(c) Clerical Amendment.--The table of sections for chapter
35 of title 44, United States Code, is amended by adding
after the item relating to section 3559 the following:
``3559A. Federal penetration testing.''.
(d) Sunset.--
(1) In general.--Effective on the date that is 10 years
after the date of enactment of this Act, subchapter II of
chapter 35 of title 44, United States Code, is amended by
striking section 3559A.
(2) Clerical amendment.--Effective on the date that is 10
years after the date of enactment of this Act, the table of
sections for chapter 35 of title 44, United States Code, is
amended by striking the item relating to section 3559A.
(e) Penetration Testing by the Secretary of Homeland
Security.--Section 3553(b) of title 44, United States Code,
as amended by section __03, is further amended by inserting
after paragraph (8) the following:
``(9) performing penetration testing to identify
vulnerabilities within Federal information systems;''.
SEC. __12. ONGOING THREAT HUNTING PROGRAM.
(a) Threat Hunting Program.--
(1) In general.--Not later than 540 days after the date of
enactment of this Act, the Director of the Cybersecurity and
Infrastructure Security Agency shall establish a program to
provide ongoing, proactive threat-hunting services in
accordance with authorities granted under section paragraphs
(7) and (10) of subsection (b) and subsection (l) of section
3553 of title 44,United States Code, as amended by this Act,
which may be offered as a shared service, on the networks of
each agency.
(2) Plan.--Not later than 180 days after the date of
enactment of this Act, the Director of the Cybersecurity and
Infrastructure Security Agency shall develop a plan to
establish the program required under paragraph (1) that
describes how the Director of the Cybersecurity and
Infrastructure Security Agency plans to--
(A) determine the method for collecting, storing,
accessing, analyzing, and safeguarding appropriate agency
data;
(B) provide on-premises support to agencies;
(C) staff threat hunting services;
(D) establish common operating procedures, including
necessary interagency legal agreements;
(E) allocate available human and financial resources to
implement the plan; and
(F) provide input to the heads of agencies on the use of
additional cybersecurity procedures under section 3554 of
title 44, United States Code.
(b) Reports.--The Director of the Cybersecurity and
Infrastructure Security Agency shall submit to the
appropriate congressional committees--
[[Page S5300]]
(1) not later than 30 days after the date on which the
Director of the Cybersecurity and Infrastructure Security
Agency completes the plan required under subsection (a)(2), a
report on the plan to provide threat hunting services to
agencies;
(2) not less than 30 days before the date on which the
Director of the Cybersecurity and Infrastructure Security
Agency begins providing threat hunting services under the
program under subsection (a)(1), a report providing any
updates to the plan developed under subsection (a)(2); and
(3) not later than 1 year after the date on which the
Director of the Cybersecurity and Infrastructure Security
Agency begins providing threat hunting services to agencies
other than the Cybersecurity and Infrastructure Security
Agency, a report describing lessons learned from providing
those services.
SEC. __13. VULNERABILITY DISCLOSURE PROGRAMS.
(a) In General.--Chapter 35 of title 44, United States
Code, is amended by inserting after section 3559A, as added
by section __11 of this division, the following:
``Sec. 3559B. Federal vulnerability disclosure programs
``(a) Purpose; Sense of Congress.--
``(1) Purpose.--The purpose of Federal vulnerability
disclosure programs is to create a mechanism to use the
expertise of the public to provide a service to agencies by
identifying information system vulnerabilities.
``(2) Sense of congress.--It is the sense of Congress that,
in implementing the requirements of this section, the Federal
Government should take appropriate steps to reduce real and
perceived burdens in communications between agencies and
security researchers.
``(b) Definitions.--In this section:
``(1) Security vulnerability.--The term `security
vulnerability' has the meaning given the term in section 102
of the Cybersecurity Information Sharing Act of 2015 (6
U.S.C. 1501).
``(2) Submitter.--The term `submitter' means an individual
that submits a vulnerability disclosure report pursuant to
the vulnerability disclosure process of an agency.
``(3) Vulnerability disclosure report.--The term
`vulnerability disclosure report' means a disclosure of a
security vulnerability made to an agency by a submitter.
``(c) Responsibilities of OMB.--
``(1) Limitation on legal action.--The Director, in
consultation with the Attorney General, shall issue guidance
to agencies to not recommend or pursue legal action against a
submitter or an individual that conducts a security research
activity that--
``(A) represents a good faith effort to identify and report
security vulnerabilities in Federal information systems; or
``(B) is otherwise authorized under the vulnerability
disclosure policy of the agency developed under subsection
(e)(2).
``(2) Sharing information with cisa.--The Director, in
coordination with the Director of the Cybersecurity and
Infrastructure Security Agency and in consultation with the
National Cyber Director, shall issue guidance to agencies on
sharing relevant information in a consistent, automated, and
machine readable manner with the Director of the
Cybersecurity and Infrastructure Security Agency, including--
``(A) any valid or credible vulnerability disclosure
reports of newly discovered or not publicly known security
vulnerabilities (including misconfigurations) in commercial
software or services used by Federal information systems;
``(B) information relating to vulnerability disclosure,
coordination, or remediation activities of an agency,
particularly as those activities relate to outside
organizations--
``(i) with which the head of the agency believes the
Director of the Cybersecurity and Infrastructure Security
Agency can assist; or
``(ii) about which the head of the agency believes the
Director of the Cybersecurity and Infrastructure Security
Agency should know; and
``(C) any other information with respect to which the head
of the agency determines helpful or necessary to involve the
Director of the Cybersecurity and Infrastructure Security
Agency.
``(3) Agency vulnerability disclosure policies.--
``(A) In general.--The Director shall issue guidance to
agencies on the required minimum scope of agency systems
covered by the vulnerability disclosure policy of an agency
required under subsection (e)(2).
``(B) Limitation.--The guidance to agencies under
subparagraph (A) shall stipulate that the mere identification
by a submitter of a security vulnerability, without a
significant compromise of confidentiality, integrity, or
availability, does not constitute a major incident.
``(d) Responsibilities of CISA.--The Director of the
Cybersecurity and Infrastructure Security Agency shall--
``(1) provide support to agencies with respect to the
implementation of the requirements of this section;
``(2) develop tools, processes, and other mechanisms
determined appropriate to offer agencies capabilities to
implement the requirements of this section;
``(3) upon a request by an agency, assist the agency in the
disclosure to vendors of newly identified security
vulnerabilities in vendor products and services; and
``(4) as appropriate, implement the requirements of this
section, in accordance with the authority under section
3553(b)(8), as a shared service available to agencies.
``(e) Responsibilities of Agencies.--
``(1) Public information.--The head of each agency shall
make publicly available, with respect to each internet domain
under the control of the agency that is not a national
security system--
``(A) an appropriate security contact; and
``(B) the component of the agency that is responsible for
the internet accessible services offered at the domain.
``(2) Vulnerability disclosure policy.--The head of each
agency shall develop and make publicly available a
vulnerability disclosure policy for the agency, which shall--
``(A) describe--
``(i) the scope of the systems of the agency included in
the vulnerability disclosure policy;
``(ii) the type of information system testing that is
authorized by the agency;
``(iii) the type of information system testing that is not
authorized by the agency; and
``(iv) the disclosure policy of the agency for sensitive
information;
``(B) with respect to a vulnerability disclosure report to
an agency, describe--
``(i) how the submitter should submit the vulnerability
disclosure report; and
``(ii) if the report is not anonymous, when the reporter
should anticipate an acknowledgment of receipt of the report
by the agency;
``(C) include any other relevant information; and
``(D) be mature in scope and cover every internet
accessible Federal information system used or operated by
that agency or on behalf of that agency.
``(3) Identified security vulnerabilities.--The head of
each agency shall--
``(A) consider security vulnerabilities reported under
paragraph (2); and
``(B) commensurate with the risk posed by the security
vulnerability, address such security vulnerability using the
security vulnerability management process of the agency.
``(f) Congressional Reporting.--Not later than 90 days
after the date of enactment of the Federal Information
Security Modernization Act of 2022, and annually thereafter
for a 3-year period, the Director of the Cybersecurity and
Infrastructure Security Agency, in consultation with the
Director and the heads of impacted agencies, shall provide to
the Committee on Homeland Security and Governmental Affairs
of the Senate and the Committee on Oversight and Reform of
the House of Representatives a briefing on the status of the
use of vulnerability disclosure policies under this section
at agencies, including, with respect to the guidance issued
under subsection (c)(3), an identification of the agencies
that are compliant and not compliant.
``(g) Exemptions.--The authorities and functions of the
Director and Director of the Cybersecurity and Infrastructure
Security Agency under this section shall not apply to
national security systems.
``(h) Delegation of Authority for Certain Systems.--The
authorities of the Director and the Director of the
Cybersecurity and Infrastructure Security Agency described in
this section shall be delegated--
``(1) to the Secretary of Defense in the case of systems
described in section 3553(e)(2); and
``(2) to the Director of National Intelligence in the case
of systems described in section 3553(e)(3).''.
(b) Clerical Amendment.--The table of sections for chapter
35 of title 44, United States Code, is amended by adding
after the item relating to section 3559A, as added by section
__11 of this division, the following:
``3559B. Federal vulnerability disclosure programs.''.
(c) Sunset.--
(1) In general.--Effective on the date that is 10 years
after the date of enactment of this Act, subchapter II of
chapter 35 of title 44, United States Code, is amended by
striking section 3559B.
(2) Clerical amendment.--Effective on the date that is 10
years after the date of enactment of this Act, the table of
sections for chapter 35 of title 44, United States Code, is
amended by striking the item relating to section 3559B.
SEC. __14. IMPLEMENTING ZERO TRUST ARCHITECTURE.
(a) Report.--Not later than 18 months after the date of
enactment of this Act, the Director shall provide to the
Committee on Homeland Security and Governmental Affairs of
the Senate and the Committees on Oversight and Reform and
Homeland Security of the House of Representatives an update
on progress in increasing the internal defenses of agency
systems, including--
(1) shifting away from ``trusted networks'' to implement
security controls based on a presumption of compromise,
including through the transition to zero trust architecture;
(2) implementing principles of least privilege in
administering information security programs;
(3) limiting the ability of entities that cause incidents
to move laterally through or between agency systems;
(4) identifying incidents quickly;
(5) isolating and removing unauthorized entities from
agency systems as quickly as practicable, accounting for
intelligence or law enforcement purposes;
(6) otherwise increasing the resource costs for entities
that cause incidents to be successful; and
[[Page S5301]]
(7) a summary of the agency progress reports required under
subsection (b).
(b) Progress Report.--As a part of the report required
under section 3553(c) of title 44, United States Code, the
Director shall include an update on agency implementation of
information security programs based on the presumption of
compromise and least privilege, such as zero trust
architecture, which shall include--
(1) a description of steps agencies have completed,
including progress toward achieving any requirements issued
by the Director, including the adoption of any models or
reference architecture;
(2) an identification of activities that have not yet been
completed and that would have the most immediate security
impact; and
(3) a schedule to implement any planned activities.
(c) Classified Annex.--The update required under subsection
(b) may include a classified annex, as appropriate.
SEC. __15. GAO AUTOMATION REPORTS.
Not later than 2 years after the date of the enactment of
this Act, the Comptroller General of the United States shall
perform a study, and submit to the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committees on Oversight and Reform and Homeland Security of
the House of Representatives a report, on the use of
automation and machine-readable data across the Federal
Government for cybersecurity purposes, including the
automated updating of cybersecurity tools, sensors, or
processes employed by agencies under paragraphs (1), (5)(C),
and (8)(B) of section 3554(b) of title 44, United States
Code, as amended by this Act.
SEC. __16. EXTENSION OF FEDERAL ACQUISITION SECURITY COUNCIL
AND SOFTWARE INVENTORY.
(a) Extension.--Section 1328 of title 41, United States
Code, is amended by striking ``the date that'' and all that
follows and inserting ``December 31, 2028.''.
(b) Extension.--Section 4713(j) of title 41, United States
Code, is amended by striking ``the date that'' and all that
follows and inserting ``December 31, 2028.''.
(c) Requirement.--Subsection 1326(b) of title 41, United
States Code, is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) by redesignating paragraph (6) as paragraph (7); and
(3) by inserting after paragraph (5) the following:
``(6) maintaining an up-to-date and accurate inventory of
software in use by the agency and, when available and
applicable, the components of such software, including any
available software bills of materials, as applicable, that
will be provided within 30 days of receiving a request from
the Federal Acquisition Security Council, the individual
serving as the Administrator of the Office of Electronic
Government, the National Cyber Director, or the Director of
Cybersecurity and Infrastructure Security Agency; and''.
SEC. __17. EXTENSION OF CHIEF DATA OFFICER COUNCIL.
Section 3520A(e)(2) of title 44, United States Code, is
amended by striking ``upon the expiration of the 2-year
period that begins on the date the Comptroller General
submits the report under paragraph (1) to Congress'' and
inserting ``January 31, 2030''.
SEC. __18. COUNCIL OF THE INSPECTORS GENERAL ON INTEGRITY AND
EFFICIENCY DASHBOARD.
(a) Dashboard Required.--Section 11(e) of the Inspector
General Act of 1978 (5 U.S.C. App.) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking ``and'' at the end;
(B) by redesignating subparagraph (B) as subparagraph (C);
(C) by inserting after subparagraph (A) the following:
``(B) that shall include a dashboard of open information
security recommendations identified in the independent
evaluations required by section 3555(a) of title 44, United
States Code; and''; and
(2) by inserting after paragraph (3) the following:
``(4) Rule of construction.--Nothing in this subsection
shall be construed to require the publication of information
that is exempted from disclosure under section 552 of title
5, United States Code''.
SEC. __19. QUANTITATIVE CYBERSECURITY METRICS.
(a) Definition of Covered Metrics.--In this section, the
term ``covered metrics'' means the metrics established,
reviewed, and updated under section 224(c) of the
Cybersecurity Act of 2015 (6 U.S.C. 1522(c)).
(b) Updating and Establishing Metrics.--Not later than 1
year after the date of enactment of this Act, and as
appropriate thereafter, the Director of the Cybersecurity and
Infrastructure Security Agency, in coordination with the
Director and the National Cyber Director, shall--
(1) evaluate any covered metrics established as of the date
of enactment of this Act; and
(2) as appropriate and pursuant to section 224(c) of the
Cybersecurity Act of 2015 (6 U.S.C. 1522(c)) update or
establish new covered metrics.
(c) Implementation.--
(1) In general.--Not later than 540 days after the date of
enactment of this Act, the Director, in coordination with the
Director of the Cybersecurity and Infrastructure Security
Agency, shall promulgate guidance that requires each agency
to use covered metrics to track trends in the cybersecurity
and incident response capabilities of the agency.
(2) Performance demonstration.--The guidance issued under
paragraph (1) and any subsequent guidance shall require
agencies to share with the Director of the Cybersecurity and
Infrastructure Security Agency data demonstrating the
performance of the agency using the covered metrics included
in the guidance.
(3) Penetration tests.--On not less than 2 occasions during
the 2-year period following the date on which guidance is
promulgated under paragraph (1), the Director shall ensure
that not less than 3 agencies are subjected to substantially
similar penetration tests, as determined by the Director, in
coordination with the Director of the Cybersecurity and
Infrastructure Security Agency, in order to validate the
utility of the covered metrics.
(4) Analysis capacity.--The Director of the Cybersecurity
and Infrastructure Security Agency shall develop a capability
that allows for the analysis of the covered metrics,
including cross-agency performance of agency cybersecurity
and incident response capability trends.
(5) Time-based metric.--With respect the first update or
establishment of covered metrics required under subsection
(b)(2), the Director of the Cybersecurity and Infrastructure
Security Agency shall establish covered metrics that include
not less than 2 metrics addressing the time it takes for
agencies to identify and respond to incidents.
(d) Congressional Reports.--Not later than 1 year after the
date of enactment of this Act, the Director of the
Cybersecurity and Infrastructure Security Agency, in
coordination with the Director, shall submit to the
appropriate congressional committees a report on the utility
and use of the covered metrics.
(e) Federal Cybersecurity Enhancement Act of 2015 Update.--
Section 222(3)(B) of the Federal Cybersecurity Enhancement
Act of 2015 (6 U.S.C. 1521(3)(B)) is amended by inserting
``and the Committee on Oversight and Reform'' before ``of the
House of Representatives.''
SEC. __20. ESTABLISHMENT OF RISK-BASED BUDGET MODEL.
(a) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Homeland Security and Governmental
Affairs and the Committee on Appropriations of the Senate;
and
(B) the Committee on Oversight and Reform, the Committee on
Homeland Security, and the Committee on Appropriations of the
House of Representatives.
(2) Covered agency.--The term ``covered agency'' has the
meaning given the term ``executive agency'' in section 133 of
title 41, United States Code.
(3) Director.--The term ``Director'' means the Director of
the Office of Management and Budget.
(4) Information technology.--The term ``information
technology''--
(A) has the meaning given the term in section 11101 of
title 40, United States Code; and
(B) includes the hardware and software systems of a Federal
agency that monitor and control physical equipment and
processes of the Federal agency.
(5) Risk-based budget.--The term ``risk-based budget''
means a budget--
(A) developed by identifying and prioritizing cybersecurity
risks and vulnerabilities, including impact on agency
operations in the case of a cyber attack, through analysis of
cyber threat intelligence, incident data, and tactics,
techniques, procedures, and capabilities of cyber threats;
and
(B) that allocates resources based on the risks identified
and prioritized under subparagraph (A).
(b) Establishment of Risk-based Budget Model.--
(1) In general.--
(A) Model.--Not later than 1 year after the first
publication of the budget submitted by the President under
section 1105 of title 31, United States Code, following the
date of enactment of this Act, the Director, in consultation
with the Director of the Cybersecurity and Infrastructure
Security Agency and the National Cyber Director and in
coordination with the Director of the National Institute of
Standards and Technology, shall develop a standard model for
informing a risk-based budget for cybersecurity spending.
(B) Responsibility of director.--Section 3553(a) of title
44, United States Code, as amended by section __03 of this
division, is further amended by inserting after paragraph (6)
the following:
``(7) developing a standard risk-based budget model to
inform Federal agency cybersecurity budget development;
and''.
(C) Contents of model.--The model required to be developed
under subparagraph (A) shall utilize appropriate information
to evaluate risk, including, as determined appropriate by the
Director--
(i) Federal and non-Federal cyber threat intelligence
products, where available, to identify threats,
vulnerabilities, and risks;
(ii) analysis of the impact of agency operations of
compromise of systems, including the interconnectivity to
other agency systems and the operations of other agencies;
and
[[Page S5302]]
(iii) to the greatest extent practicable, analysis of where
resources should be allocated to have the greatest impact on
mitigating current and future threats and current and future
cybersecurity capabilities.
(D) Use of model.--The model required to be developed under
subparagraph (A) shall be used to--
(i) inform acquisition and sustainment of--
(I) information technology and cybersecurity tools;
(II) information technology and cybersecurity
architectures;
(III) information technology and cybersecurity personnel;
and
(IV) cybersecurity and information technology concepts of
operations; and
(ii) evaluate and inform Government-wide cybersecurity
programs.
(E) Model variation.--The Director may develop multiple
models under subparagraph (A) based on different agency
characteristics, such as size or cybersecurity maturity.
(F) Required updates.--Not less frequently than once every
3 years, the Director shall review, and update as necessary,
the model required to be developed under subparagraph (A).
(G) Publication.--Not earlier than 5 years after the date
on which the model developed under subparagraph (A) is
completed, the Director shall, taking into account any
classified or sensitive information, publish the model, and
any updates necessary under subparagraph (F), on the public
website of the Office of Management and Budget.
(H) Reports.--Not later than 2 years after the first
publication of the budget submitted by the President under
section 1105 of title 31, United States Code, following the
date of enactment of this Act, and annually thereafter for
each of the 2 following fiscal years or until the date on
which the model required to be developed under subparagraph
(A) is completed, whichever is sooner, the Director shall
submit to the appropriate congressional committees a report
on the development of the model.
(2) Phased implementation of risk-based budget model.--
(A) Initial phase.--
(i) In general.--Not later than 2 years after the date on
which the model developed under paragraph (1) is completed,
the Director shall require not less than 5 covered agencies
to use the model to inform the development of the annual
cybersecurity and information technology budget requests of
those covered agencies.
(ii) Briefing.--Not later than 1 year after the date on
which the covered agencies selected under clause (i) begin
using the model developed under paragraph (1), the Director
shall provide to the appropriate congressional committees a
briefing on implementation of risk-based budgeting for
cybersecurity spending, an assessment of agency
implementation, and an evaluation of whether the risk-based
budget helps to mitigate cybersecurity vulnerabilities.
(B) Full deployment.--Not later than 5 years after the date
on which the model developed under paragraph (1) is
completed, the head of each covered agency shall use the
model, or any updated model pursuant to paragraph (1)(F), to
the greatest extent practicable, to inform the development of
the annual cybersecurity and information technology budget
requests of the covered agency.
(C) Agency performance plans.--
(i) Amendment.--Section 3554(d)(2) of title 44, United
States Code, is amended by inserting ``and the risk-based
budget model required under section 3553(a)(7)'' after
``paragraph (1)''.
(ii) Effective date.--The amendment made by clause (i)
shall take effect on the date that is 5 years after the date
on which the model developed under paragraph (1) is
completed.
(3) Verification.--
(A) In general.--Section 1105(a)(35)(A)(i) of title 31,
United States Code, is amended--
(i) in the matter preceding subclause (I), by striking ``by
agency, and by initiative area (as determined by the
administration)'' and inserting ``and by agency'';
(ii) in subclause (III), by striking ``and'' at the end;
and
(iii) by adding at the end the following:
``(V) a validation that the budgets submitted were informed
by using a risk-based methodology; and
``(VI) a report on the progress of each agency on closing
recommendations identified under the independent evaluation
required by section 3555(a)(1) of title 44.''.
(B) Effective date.--The amendments made by subparagraph
(A) shall take effect on the date that is 5 years after the
date on which the model developed under paragraph (1) is
completed.
(4) Reports.--
(A) Independent evaluation.--Section 3555(a)(2) of title
44, United States Code, is amended--
(i) in subparagraph (B), by striking ``and'' at the end;
(ii) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) an assessment of how the agency was informed by the
risk-based budget model required under section 3553(a)(7) and
an evaluation of whether the model mitigates agency cyber
vulnerabilities.''.
(B) Assessment.--
(i) Amendment.--Section 3553(c) of title 44, United States
Code, as amended by section __03 of this division, is further
amended by inserting after paragraph (5) the following:
``(6) an assessment of--
``(A) Federal agency utilization of the model required
under subsection (a)(7); and
``(B) whether the model mitigates the cyber vulnerabilities
of the Federal Government.''.
(ii) Effective date.--The amendment made by clause (i)
shall take effect on the date that is 5 years after the date
on which the model developed under paragraph (1) is
completed.
(5) GAO report.--Not later than 3 years after the date on
which the first budget of the President is submitted to
Congress containing the validation required under section
1105(a)(35)(A)(i)(V) of title 31, United States Code, as
amended by paragraph (3), the Comptroller General of the
United States shall submit to the appropriate congressional
committees a report that includes--
(A) an evaluation of the success of covered agencies in
utilizing the risk-based budget model;
(B) an evaluation of the success of covered agencies in
implementing risk-based budgets;
(C) an evaluation of whether the risk-based budgets
developed by covered agencies are effective at informing
Federal Government-wide cybersecurity programs; and
(D) any other information relating to risk-based budgets
the Comptroller General determines appropriate.
SEC. __21. ACTIVE CYBER DEFENSIVE STUDY.
(a) Definition.--In this section, the term ``active defense
technique''--
(1) has the meaning given the term by the Director of the
Cybersecurity and Infrastructure Security Agency, in
coordination with the Director, the Attorney General, and the
heads of other appropriate agencies; and
(2) includes, at a minimum--
(A) an action taken on the systems of an entity to increase
the security of information on the network of an agency by
misleading an adversary; and
(B) a honeypot, deception, or purposefully feeding false or
misleading data to an adversary when the adversary is on the
systems of the entity.
(b) Study.--Not later than 180 days after the date of
enactment of this Act, the Director of the Cybersecurity and
Infrastructure Security Agency, in coordination with the
Director and the National Cyber Director, shall perform a
study, and submit to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committees on
Oversight and Reform and Homeland Security of the House of
Representatives a report, on the use of active defense
techniques to enhance the security of agencies, which shall
include--
(1) a review of legal restrictions on the use of different
active cyber defense techniques in Federal environments, in
consultation with the Attorney General;
(2) an evaluation of--
(A) the efficacy of a selection of active defense
techniques determined by the Director of the Cybersecurity
and Infrastructure Security Agency; and
(B) factors that impact the efficacy of the active defense
techniques evaluated under subparagraph (A);
(3) recommendations on safeguards and procedures that shall
be established to require that active defense techniques are
adequately coordinated to ensure that active defense
techniques do not impede agency operations and mission
delivery, threat response efforts, criminal investigations,
and national security activities, including intelligence
collection; and
(4) the development of a framework for the use of different
active defense techniques by agencies.
SEC. __22. SECURITY OPERATIONS CENTER AS A SERVICE PILOT.
(a) Purpose.--The purpose of this section is for the
Cybersecurity and Infrastructure Security Agency to run a
security operation center on behalf of another agency,
alleviating the need to duplicate this function at every
agency, and empowering a greater centralized cybersecurity
capability.
(b) Plan.--Not later than 1 year after the date of
enactment of this Act, the Director of the Cybersecurity and
Infrastructure Security Agency shall develop a plan to
establish a centralized Federal security operations center
shared service offering within the Cybersecurity and
Infrastructure Security Agency.
(c) Contents.--The plan required under subsection (b) shall
include considerations for--
(1) collecting, organizing, and analyzing agency
information system data in real time, including endpoint
detection and response capabilities;
(2) staffing and resources; and
(3) appropriate interagency agreements, concepts of
operations, and governance plans, including alignment with
existing shared services operations and policy.
(d) Pilot Program.--
(1) In general.--Not later than 180 days after the date on
which the plan required under subsection (b) is developed,
the Director of the Cybersecurity and Infrastructure Security
Agency, in consultation with the Director, shall enter into a
1-year agreement with not less than 2 agencies to offer a
security operations center as a shared service.
(2) Additional agreements.--After the date on which the
briefing required under subsection (e)(1) is provided, the
Director of the Cybersecurity and Infrastructure Security
Agency, in consultation with the Director, may enter into
additional 1-year agreements described in paragraph (1) with
agencies.
[[Page S5303]]
(e) Briefing and Report.--
(1) Briefing.--Not later than 270 days after the date of
enactment of this Act, the Director of the Cybersecurity and
Infrastructure Security Agency shall provide to the Committee
on Homeland Security and Governmental Affairs of the Senate
and the Committee on Homeland Security and the Committee on
Oversight and Reform of the House of Representatives a
briefing on the parameters of any 1-year agreements entered
into under subsection (d)(1).
(2) Report.--Not later than 90 days after the date on which
the first 1-year agreement entered into under subsection (d)
expires, the Director of the Cybersecurity and Infrastructure
Security Agency shall submit to the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Homeland Security and the Committee on Oversight
and Reform of the House of Representatives a report on--
(A) the agreement; and
(B) any additional agreements entered into with agencies
under subsection (d).
SEC. __23. FEDERAL CYBERSECURITY REQUIREMENTS.
(a) Exemption From Federal Requirements.--Section 225(b)(2)
of the Federal Cybersecurity Enhancement Act of 2015 (6
U.S.C. 1523(b)(2)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Duration of certification.--
``(A) In general.--A certification and corresponding
exemption of an agency under paragraph (2) shall expire on
the date that is 4 years after the date on which the head of
the agency submits the certification under paragraph (2)(A).
``(B) Renewal.--Upon the expiration of a certification of
an agency under paragraph (2), the head of the agency may
submit an additional certification in accordance with that
paragraph.''.
(b) Report on Exemptions.--Section 3554(c)(1) of title 44,
United States Code, as amended by section __03(c) of this
division, is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) with respect to any exemption from the requirements
of section 225(b)(2) of the Federal Cybersecurity Enhancement
Act of 2015 (6 U.S.C. 1523(b)(2)) that is effective on the
date of submission of the report, the number of agency
information systems that have received an exemption from
those requirements.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date that is 1 year after the date
of enactment of this Act.
______