[Senate Report 117-262]
[From the U.S. Government Publishing Office]


                                                     Calendar No. 653
117th Congress      }                                   {       Report
                                 SENATE
 2d Session         }                                   {      117-262
_______________________________________________________________________

                                     


                    LEGACY IT REDUCTION ACT OF 2022

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 3897

              TO REQUIRE THE REDUCTION OF THE RELIANCE AND
            EXPENDITURES OF THE FEDERAL GOVERNMENT ON LEGACY
         INFORMATION TECHNOLOGY SYSTEMS, AND FOR OTHER PURPOSES








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               December 15, 2022.--Ordered to be printed  
                             _________
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
39-010                   WASHINGTON : 2023
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
                  Michelle M. Benecke, Senior Counsel
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
       Jeremy H. Hayes, Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk 
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                                                      Calendar No. 653
117th Congress      }                                   {       Report
                                 SENATE
 2d Session         }                                   {      117-262

======================================================================



 
                    LEGACY IT REDUCTION ACT OF 2022

                                _______
                                

               December 15, 2022.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 3897]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3897), to require 
the reduction of the reliance and expenditures of the Federal 
government on legacy information technology systems, and for 
other purposes, having considered the same, reports favorably 
thereon with amendments and recommends that the bill, as 
amended, do pass.

                                CONTENTS

                                                                     Page
  I. Purpose and Summary..............................................  1
 II. Background and Need for the Legislation..........................  2
III. Legislative History..............................................  2
 IV. Section-by-Section Analysis of the Bill, as Reported.............  3
  V. Evaluation of Regulatory Impact..................................  5
 VI. Changes in Existing Law Made by the Bill, as Reported............  5

                         I. Purpose and Summary

    The purpose of S. 3897, the Legacy IT Reduction Act, is to 
reduce the federal government's reliance on legacy information 
technology (IT) systems in order to reduce costs, increase 
cybersecurity, and improve user experience. The bill requires 
agencies to develop an inventory of their legacy IT systems and 
write modernization plans to update or dispose of those 
systems. It also requires the Office of Management and Budget 
(OMB) to issue guidance to assist agencies with identifying 
legacy IT systems and modernizing them. Additionally, the bill 
codifies the Computers for Learning Program, which allows 
agencies to transfer gently used computers and software to 
educators and schools. A Government Accountability Office (GAO) 
report examining the implementation of the bill alongside 
existing IT modernization policies and programs is required, in 
order to improve coordination and outcomes.

              II. Background and the Need for Legislation

    GAO issued a report in June 2019 entitled Information 
Technology: Agencies Need to Develop Modernization Plans for 
Critical Legacy Systems. In this report, GAO analyzed 65 legacy 
systems and identified ten critical systems most in need of 
modernization. GAO found that, of the ten departments and 
agencies responsible for these legacy systems, three 
departments--Education, Health and Human Services, and 
Transportation--did not have documented modernization plans. Of 
the seven agencies with documented plans for modernizing their 
legacy systems, only the Departments of the Interior and 
Defense had plans that included key elements identified by GAO 
as best practices: milestones, a description of the work 
necessary to complete the modernization, and a plan for the 
disposition of the legacy system. The report concluded that, 
without complete modernization plans, all ten departments and 
agencies will be at increased risk of cost overruns, schedule 
delays, and project failures.\1\
---------------------------------------------------------------------------
    \1\Government Accountability Office, Information Technology: 
Agencies Need to Develop Modernization Plans for Critical Legacy 
Systems (GAO-19-471) (June 11, 2019).
---------------------------------------------------------------------------
    In June 2020, Senator Maggie Hassan sent an oversight 
letter to these departments and agencies to ask how officials 
planned to modernize the systems GAO identified. In April 2021, 
as Chair of the Homeland Security and Governmental Affairs 
Committee Subcommittee on Emerging Threats and Spending 
Oversight, Senator Hassan held a hearing with the GAO report 
author and three former federal chief information officers on 
the challenges presented by outdated technology and the 
barriers to modernization.\2\ In September 2021, Senator Hassan 
held a second hearing on the issue with witnesses from the 
Biden Administration.\3\ The Legacy IT Reduction Act of 2022 
reflects the feedback and information gathered from the 
oversight letter and hearings.
---------------------------------------------------------------------------
    \2\Senate Subcommittee on Emerging Threats and Spending Oversight, 
Cutting Wasteful Government Spending and Saving Taxpayer Dollars, 117th 
Cong. (Apr. 27, 2021).
    \3\Senate Subcommittee on Emerging Threats and Spending Oversight, 
Reducing Wasteful Government Spending and Saving Taxpayer Dollars by 
Updating IT Systems, 117th Cong. (Sept. 28, 2021).
---------------------------------------------------------------------------

                        III. Legislative History

    Senator Hassan (D-NH) introduced S. 3897, the Legacy IT 
Reduction Act, on March 22, 2022, with Senator Cornyn (R-TX). 
The bill was referred to the Committee on Homeland Security and 
Governmental Affairs.
    The Committee considered S. 3897 at a business meeting on 
March 30, 2022. During the business meeting, Senator Hassan 
offered Hassan Amendment 1. The amendment clarified the scope 
of the IT modernization plans under section 4 of the bill and 
the factors OMB may choose to include in its guidance to 
agencies regarding how to write an IT modernization plan. 
Hassan Amendment 2 was not offered. The bill was approved by 
voice vote en bloc as amended by Hassan Amendment 1 with 
Senators Peters, Carper, Hassan, Sinema, Rosen, Padilla, 
Ossoff, Paul, Lankford, Romney, Scott, and Hawley present.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section provides the short title of the bill: ``Legacy 
IT Reduction Act of 2022.''

Section 2. Definitions

    For most key terms, this section draws definitions from 
other areas of the U.S. Code and Code of Federal Regulations.
    ``Administrator'' refers to the head of the General 
Services Administration (GSA).
    ``Agency'' refers to the 24 CFO Act agencies listed in 31 
U.S.C. 901(b)(1)-(2).
    ``Chief Information Officer'' (CIO) is the person 
designated under 44 U.S.C. 3506(a)(2) to carry out an agency's 
information resources management to improve productivity, 
efficiency, and effectiveness.
    ``Comptroller General'' refers to the head of the 
Government Accountability Office (GAO).
    ``Congressional Oversight Committee'' refers to the Senate 
and House committees or subcommittees that provide oversight of 
a particular agency.
    ``Director'' refers to the head of the Office of Management 
and Budget (OMB).
    ``Information technology'' (IT) has the meaning given in 40 
U.S.C. 11101. It means, with respect to an executive agency, 
any equipment or interconnected system or subsystem of 
equipment, used in the automatic acquisition, storage, 
analysis, evaluation, manipulation, management, movement, 
control, display, switching, interchange, transmission, or 
reception of data or information by the executive agency, if 
the equipment is used by the agency directly or is used by a 
contractor that requires the use of that equipment (but not 
acquired incidental to a contract). This includes computers, 
ancillary equipment (including imaging peripherals, input, 
output, and storage devices necessary for security and 
surveillance), peripheral equipment designed to be controlled 
by the central processing unit of a computer, software, 
firmware and similar procedures, services (including support 
services), and related resources.
    ``IT working capital fund'' refers to the funds established 
by the Modernizing Government Technology Act (NDAA FY2018, Sec. 
1077; codified at 40 U.S.C. 11301 note).
    ``Legacy information technology system'' also takes its 
definition from the Modernizing Government Technology Act (NDAA 
FY2018, Sec. 1076; codified at 40 U.S.C. 11301 note), and means 
``an outdated or obsolete system of information technology.''
    ``National Security System'' has the meaning given the term 
in 40 U.S.C. 11301.
    ``Technology Modernization Fund'' refers to the Fund 
established under the Modernizing Government Technology Act 
(NDAA FY18, Sec. 1078(b)(1); codified at 40 U.S.C. 11301 note).

Section 3. Legacy information technology system inventory

    This section requires agency CIOs to develop an initial 
inventory of each legacy IT system in use at the agency within 
one year of enactment, and then update the inventory every five 
years thereafter. The purpose of the inventory is two-fold: (1) 
to identify the legacy IT that the agency uses; and (2) inform 
the modernization plans required under Section 4.
    OMB is directed to issue guidance on what should be 
included in the inventory. OMB should consider including the 
name or identification of the legacy IT system and the office 
or mission of the agency that the legacy IT system supports and 
how it is used. To the extent that information is available, 
OMB should also consider including the date of the last update 
or refresh of the legacy IT system; the annual price (including 
recurring costs and costs of contracts for labor and 
maintenance); the name and contact information of the vendor; 
and the date of the next expected update, retirement, or 
disposal of the IT system.
    In addition, agencies must make the inventory available to 
a House of Congress, congressional oversight committee, GAO, or 
the agency's Office of Inspector General upon request. OMB may 
also require an agency to include the inventory in other 
reporting structures.

Section 4. Agency legacy information technology systems modernization 
        plans and report

    Following development of the legacy IT system inventory, 
this section requires agencies to develop a plan to modernize 
their legacy IT systems. The initial plan must be published 
within two years of enactment, and then updated every five 
years thereafter and included as part of the agency's 
information resource management strategic plan under 44 U.S.C. 
3506(b)(2).
    The modernization plans shall include the following 
information: (1) an inventory of the agency's legacy IT system 
and an identification of legacy IT systems that the agency has 
prioritized for updates, modernization, retirement, or 
disposal; (2) steps the agency intends to make to update, 
modernize, cease use of, or dispose of each legacy IT system 
within five years of the submission of the plan; and (3) any 
additional information OMB determines necessary or useful for 
an agency to consider or include to effectively and efficiently 
execute the plan, including capacity of the agency to operate 
and maintain the modern system; cost and sources of funding 
required for the modernization; and the ability of the agency 
to adapt the modernized system to changes in technology and 
policy.
    Agencies will submit copies of the plans to the Senate 
Committee on Homeland Security and Governmental Affairs, the 
House Committee on Oversight and Reform, and the committee of 
jurisdiction of the agency.

Section 5. Role of the Office of Management and Budget

    This section requires OMB to issue guidance on the 
implementation of this Act and the amendments it makes. For the 
guidance, OMB is tasked with: determining what constitutes 
``outdated and obsolete'' IT systems for the purposes of 
compiling the inventory under Section 3; developing 
instructions and templates for completing the legacy IT system 
inventory and modernization plans (or updates to plans if plans 
already exist); and determining if any additional guidance is 
required to implement this Act.

Section 6. Computers for Learning Program

    This section codifies the Computers for Learning Program. 
In Executive Order 12999, President Clinton established the 
Computers for Learning Program, which allows federal agencies 
to transfer gently used computers and other IT equipment to 
eligible schools and non-profit organizations. This section 
makes several updates to the Executive Order, such as 
authorizing GSA to promulgate regulations to prevent fraud and 
abuse of the program.

Section 7. Comptroller general review

    This section requires GAO to issue a report within three 
years of enactment on the implementation of the Act, and how 
this Act functions alongside other existing IT modernization 
offices, programs, and policies.

Section 8. Protection of sensitive information; exemption of national 
        security systems

    This section states that this legislation does not require 
disclosure of sensitive information that is otherwise protected 
from disclosure by law or that would compromise security of 
federal IT systems. In addition, this section exempts national 
security systems from the requirements of this legislation.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

       VI. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 15--COMMERCE AND TRADE

           *       *       *       *       *       *       *


CHAPTER 63--TECHNOLOGY INNOVATION

           *       *       *       *       *       *       *



SEC. 3710. UTLIZATION OF FEDERAL TECHNOLOGY

           *       *       *       *       *       *       *


    (j) Computers for Learning Program.--
          (1) Definitions.--In this subsection:
                  (A) Administrator.--The term `Administrator' 
                means the Administrator of General Services.
                  (B) Community based educational 
                organization.--The term `community-based 
                educational organization' means a nonprofit 
                entity--
                          (i) that is engaged in collaborative 
                        projects with schools; or
                          (ii) the primary focus of which is 
                        education.
                  (C) Educationally useful federal equipment.--
                The term `educationally useful Federal 
                equipment' means--
                          (i) a computer or related peripheral 
                        tool that is appropriate for use in 
                        prekindergarten, elementary, middle, or 
                        secondary school education; and
                          (ii) includes--
                                  (I) a printer, modem, router, 
                                server, switch, wireless access 
                                point, and network management 
                                device;
                                  (II) telecommunications and 
                                research equipment; and
                                  (III) computer software if 
                                the transfer of the license of 
                                the software is permitted.
                  (D) Eligible entity.--The term `eligible 
                entity' means--
                          (i) a school; or
                          (ii) a community-based educational 
                        organization.
                  (E) Federal executive board.--The term 
                `Federal Executive Board' means a Federal 
                Executive Board established by the President 
                under section 960.102 of title 5, Code of 
                Federal Regulations or any successor 
                regulation.
                  (F) Nonprofit entity.--The term `nonprofit 
                entity' means an organization described under 
                section 501(c) of the Internal Revenue Code of 
                1986 and exempt from taxation under section 
                501(a) of such Code.
                  (G) Nonprofit reuse or recycling program.--
                The term `nonprofit reuse or recycling program' 
                a means nonprofit entity that has the ability 
                to upgrade computer equipment at no or low cost 
                for an eligible entity that takes title to the 
                equipment under this subsection.
                  (H) Research equipment.--The term `research 
                equipment' means property determined to be 
                essential to conduct scientific or technical 
                research.
                  (I) School.--The term `school'--
                          (i) means an individual public or 
                        private educational institution for any 
                        grade level between prekindergarten and 
                        twelfth grade; and
                          (ii) includes public school 
                        districts.
          (2) Findings.--Congress finds that--
                  (A) educationally useful Federal equipment is 
                a vital resource of the United States; and
                  (B) educationally useful Federal equipment is 
                a valuable tool for computer education if--
                          (i) the equipment can be used as is; 
                        or
                          (ii) professional technicians, 
                        students, or recycling efforts can 
                        separate the equipment into parts for 
                        other computers or upgrade the 
                        equipment.
          (3) Requirement.--To the greatest extent practicable, 
        each Federal agency shall protect and safeguard 
        educationally useful Federal equipment of the Federal 
        agency, particularly when that equipment is declared 
        excess or surplus, so that the equipment may be 
        recycled and transferred, if appropriate, to eligible 
        entities under this subsection.
          (4) Efficient transfer of educationally useful 
        federal equipment to schools and nonprofit 
        organizations.--
                  (A) Transfer.--Each Federal agency shall, 
                where appropriate, identify educationally 
                useful Federal equipment that the Federal 
                agency no longer needs and transfer the 
                educationally useful equipment to eligible 
                entities by--
                          (i) conveying excess educationally 
                        useful Federal equipment directly to an 
                        eligible entity pursuant to subsection 
                        (i); or
                          (ii) in accordance with subparagraph 
                        (B), reporting excess educationally 
                        useful Federal equipment to the 
                        Administrator for donation to eligible 
                        entities when declared surplus, as 
                        described in section 549(b)(2)(A)(ii) 
                        of title 40, United States Code.
                  (B) Advance reporting.--In reporting excess 
                educationally useful Federal equipment under 
                subparagraph (A)(ii), a Federal agency shall 
                report the equipment as far as possible in 
                advance of the date the equipment becomes 
                excess, so that the Administrator may attempt 
                to arrange direct transfers from the donating 
                Federal agency to eligible entities under this 
                subsection.
                  (C) Requirements.--In conveying educationally 
                useful Federal equipment under subparagraph 
                (A)(i)--
                          (i) title of the equipment shall 
                        transfer directly from the Federal 
                        agency to an eligible entity;
                          (ii) the Federal agency shall report 
                        the conveyance to the Administrator; 
                        and
                          (iii) at the direction of the 
                        recipient of the equipment, and if 
                        appropriate, the equipment may be 
                        initially conveyed to a nonprofit reuse 
                        or recycling program for upgrade.
                  (D) Transfer by nonprofit reuse or recycling 
                program.--A nonprofit reuse or recycling 
                program to which educationally useful Federal 
                equipment is conveyed for the purpose of 
                upgrading for an eligible entity under 
                subparagraph (C)(iii) shall transfer the 
                equipment to the eligible entity upon the 
                completion of the upgrade.
                  (E) Responsibility for cost.--Any costs 
                relating to a transfer of educationally useful 
                Federal equipment under this subsection shall 
                be the responsibility of the eligible entity 
                that receives the transfer.
                  (F) Outreach.--The Administrator, in 
                coordination with the Secretary of Education, 
                shall perform outreach to eligible entities 
                about the availability of transfers under this 
                subsection by all practicable means, including 
                through television or print media, community 
                announcements, and the internet.
                  (G) Federal executive boards.--Each Federal 
                Executive Board shall help facilitate the 
                transfer of educationally useful Federal 
                equipment from Federal agencies under this 
                subsection to eligible entities.
          (5) Guidance, regulations, and assistance to chief 
        information officers.--The Administrator--
                  (A) may issue guidance or regulations to 
                facilitate the implementation of this 
                subsection; and
                  (B) shall provide assistance to the chief 
                information officers of Federal agencies to 
                enhance the participation of Federal agencies 
                in transfers under this subsection.
          (6) Rule of construction.--Nothing in this subsection 
        shall be construed to prohibit a recipient of 
        educationally useful Federal equipment from lending 
        that equipment, whether on a permanent or temporary 
        basis, to a teacher, administrator, student, employee, 
        or other designated individual in furtherance of 
        educational goals.
          (7) Judicial review.--Nothing in this subsection 
        shall be construed to create any substantive or 
        procedural right or benefit enforceable by law by a 
        party against the United States, its agencies, its 
        officers, or its employees.''

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