To amend the Homeland Security Act of 2002 to enhance the information security of the Department of Homeland Security, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeland Security Network Defense 
and Accountability Act of 2008''.

SEC. 2. AUTHORITY OF CHIEF INFORMATION OFFICER; QUALIFICATIONS FOR 
              APPOINTMENT.

    Section 703(a) of the Homeland Security Act of 2002 (6 U.S.C. 
343(a)) is amended--
            (1) by inserting before the first sentence the following:
            ``(1) Authorities and duties.--The Secretary shall delegate 
        to the Chief Information Officer such authority necessary for 
        the development, approval, implementation, integration, and 
        oversight of policies, procedures, processes, activities, 
        funding, and systems of the Department relating to the 
        management of information and information infrastructure for 
        the Department, including the management of all related mission 
        applications, information resources, and personnel.
            ``(2) Line authority.--''; and
            (2) by adding at the end the following new paragraphs:
            ``(3) Qualifications for appointment.--An individual may 
        not be appointed as Chief Information Officer unless the 
        individual has--
                    ``(A) demonstrated ability in and knowledge of 
                information technology and information security; and
                    ``(B) not less than 5 years of executive leadership 
                and management experience in information technology and 
                information security in the public or private sector.
            ``(4) Functions.--The Chief Information Officer shall--
                    ``(A) establish and maintain an incident response 
                team that provides a continuous, real-time capability 
                within the Department of Homeland Security to--
                            ``(i) detect, respond to, contain, 
                        investigate, attribute, and mitigate any 
                        computer incident, as defined by the National 
                        Institute of Standards and Technology, that 
                        could violate or pose an imminent threat of 
                        violation of computer security policies, 
                        acceptable use policies, or standard security 
                        practices of the Department; and
                            ``(ii) deliver timely notice of any 
                        incident to individuals responsible for 
                        information infrastructure of the Department, 
                        and to the United States Computer Emergency 
                        Readiness Team;
                    ``(B) establish, maintain, and update a network 
                architecture, including a diagram detailing how 
                security controls are positioned throughout the 
                information infrastructure of the Department to 
                maintain the confidentiality, integrity, availability, 
                accountability, and assurance of electronic 
                information; and
                    ``(C) ensure that vulnerability assessments are 
                conducted on a regular basis for any Department 
                information infrastructure connected to the Internet or 
                another external network, and that vulnerabilities are 
                mitigated in a timely fashion.''.

SEC. 3. ATTACK-BASED TESTING PROTOCOLS.

    Section 703 of the Homeland Security Act of 2002 (6 U.S.C. 343) is 
amended by adding at the end the following new subsection:
    ``(c) Attack-Based Testing Protocols.--The Chief Information 
Officer, in consultation with the Inspector General, the Assistant 
Secretary for Cybersecurity, and the heads of other appropriate Federal 
agencies, shall--
            ``(1) establish security control testing protocols that 
        ensure that the Department's information infrastructure is 
        effectively protected against known attacks against and 
        exploitations of Federal and contractor information 
        infrastructure;
            ``(2) oversee the deployment of such protocols throughout 
        the information infrastructure of the Department; and
            ``(3) update such protocols on a regular basis.''.

SEC. 4. INSPECTOR GENERAL REVIEWS OF INFORMATION INFRASTRUCTURE.

    Section 703 of the Homeland Security Act of 2002 (6 U.S.C. 343) is 
further amended by adding at the end the following new subsection:
    ``(d) Inspector General Reviews.--
            ``(1) In general.--The Inspector General of the Department 
        shall use authority under the Inspector General Act of 1978 (5 
        App. U.S.C.) to conduct announced and unannounced performance 
        reviews and programmatic reviews of the information 
        infrastructure of the Department to determine the effectiveness 
        of security policies and controls of the Department.
            ``(2) Performance reviews.--Performance reviews under this 
        subsection shall test and validate a system's security controls 
        using the protocols created under subsection (c), beginning not 
        later than 270 days after the date of enactment of the Homeland 
        Security Network Defense and Accountability Act of 2008.
            ``(3) Programmatic reviews.--Programmatic reviews under 
        this subsection shall--
                    ``(A) determine whether an agency of the Department 
                is complying with policies, processes, and procedures 
                established by the Chief Information Officer; and
                    ``(B) focus on risk assessment, risk management, 
                and risk mitigation, with primary regard to the 
                implementation of best practices such as 
                authentication, access control (including remote 
                access), intrusion detection and prevention, data 
                protection and integrity, and any other controls that 
                the Inspector General considers necessary.
            ``(4) Information security report.--The Inspector General 
        shall submit a security report containing the results of each 
        review under this subsection and prioritized recommendations 
        for improving security controls based on that review, including 
        recommendations regarding funding changes and personnel 
        management, to--
                    ``(A) the Secretary;
                    ``(B) the Chief Information Officer; and
                    ``(C) the head of the Department component that was 
                the subject of the review, and other appropriate 
                individuals responsible for the information 
                infrastructure of such agency.
            ``(5) Corrective action report.--
                    ``(A) In general.--Within 60 days after receiving a 
                security report under paragraph (4), the head of the 
                Department component that was the subject of the review 
                and the Chief Information Officer shall jointly submit 
                a corrective action report to the Secretary and the 
                Inspector General.
                    ``(B) Contents.--The corrective action report--
                            ``(i) shall contain a plan for addressing 
                        recommendations and mitigating vulnerabilities 
                        contained in the security report, including a 
                        timeline and budget for implementing such plan; 
                        and
                            ``(ii) shall note any matters in 
                        disagreement between the head of the Department 
                        component and the Chief Information Officer.
            ``(6) Reports to congress.--
                    ``(A) Annual reports.--In conjunction with the 
                reporting requirements of section 3545 of title 44, 
                United States Code, the Inspector General shall submit 
                an annual report to the Committee on Homeland Security 
                of the House of Representatives and the Committee on 
                Homeland Security and Governmental Affairs of the 
                Senate--
                            ``(i) summarizing the performance and 
                        programmatic reviews performed during the 
                        preceding fiscal year, the results of those 
                        reviews, and any actions that remain to be 
                        taken under plans included in corrective action 
                        reports under paragraph (5); and
                            ``(ii) describing the effectiveness of the 
                        testing protocols developed under subsection 
                        (c) in reducing successful exploitations of the 
                        Department's information infrastructure.
                    ``(B) Security reports and corrective action 
                reports.--The Inspector General shall make all security 
                reports and corrective action reports available to any 
                member of the Committee on Homeland Security of the 
                House of Representatives, any member of the Committee 
                on Homeland Security and Governmental Affairs of the 
                Senate, and the Comptroller General of the United 
                States, upon request.''.

SEC. 5. INFORMATION INFRASTRUCTURE DEFINED.

    Section 703 of the Homeland Security Act of 2002 (6 U.S.C. 343) is 
further amended by adding at the end the following:
    ``(e) Information Infrastructure Defined.--In this section, the 
term `information infrastructure' means systems and assets used in 
processing, transmitting, receiving, or storing information 
electronically.''.

SEC. 6. NETWORK SERVICE PROVIDERS.

    (a) In General.--Subtitle D of title VIII of the Homeland Security 
Act of 2002 (6 U.S.C. 391 et seq.) is amended by adding at the end the 
following new section:

``SEC. 836. REQUIREMENTS FOR NETWORK SERVICE PROVIDERS.

    ``(a) Compatibility Determination.--Before entering into or 
renewing a covered contract, the Secretary, acting through the Chief 
Information Officer, must determine that the contractor has an internal 
information systems security policy that complies with the Department's 
information security requirements for risk assessment, risk management, 
and risk mitigation, with primary regard to the implementation of best 
practices such as authentication, access control (including remote 
access), intrusion detection and prevention, data protection and 
integrity, and any other policies that the Secretary considers 
necessary to ensure the security of the Department's information 
infrastructure.
    ``(b) Contract Requirements Regarding Security.--The Secretary 
shall include in each covered contract provisions requiring the 
contractor to--
            ``(1) implement and regularly update the internal 
        information systems security policy required under subsection 
        (a);
            ``(2) maintain the capability to provide contracted 
        services on a continuing and ongoing basis to the Department in 
        the event of unplanned or disruptive event; and
            ``(3) deliver timely notice of any internal computer 
        incident, as defined by the National Institute of Standards and 
        Technology, that could violate or pose an imminent threat of 
        violation of computer security policies, acceptable use 
        policies, or standard security practices at the Department, to 
        the United States Computer Emergency Readiness Team and the 
        incident response team established under section 703(a)(4).
    ``(c) Contract Requirements Regarding Subcontracting.--The 
Secretary shall include in each covered contract--
            ``(1) a requirement that the contractor develop and 
        implement a plan for the award of subcontracts, as appropriate, 
        to small business concerns and disadvantaged business concerns 
        in accordance with other applicable requirements, including the 
        terms of such plan, as appropriate; and
            ``(2) a requirement that the contractor submit to the 
        Secretary, during performance of the contract, periodic reports 
        describing the extent to which the contractor has complied with 
        such plan, including specification (by total dollar amount and 
        by percentage of the total dollar value of the contract) of the 
        value of subcontracts awarded at all tiers of subcontracting to 
        small business concerns, including socially and economically 
        disadvantaged small businesses concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        HUBZone small business concerns, small business concerns 
        eligible to be awarded contracts pursuant to section 8(a) of 
        the Small Business Act (15 U.S.C. 637(a)), and Historically 
        Black Colleges and Universities and Hispanic-serving 
        institutions, tribal colleges and universities, and other 
        minority institutions.
    ``(d) Existing Contracts.--The Secretary shall, to the extent 
practicable under the terms of existing contracts, require each 
contractor who provides covered information services under a contract 
in effect on the date of the enactment of the Homeland Security Network 
Defense and Accountability Act of 2008 to comply with the requirements 
described in subsection (b).
    ``(e) Definitions.--For purposes of this section:
            ``(1) Socially and economically disadvantaged small 
        businesses concern, small business concern owned and controlled 
        by service-disabled veterans, and hubzone small business 
        concern.--The terms `socially and economically disadvantaged 
        small businesses concern', `small business concern owned and 
        controlled by service-disabled veterans', and `HUBZone small 
        business concern' have the meanings given such terms under the 
        Small Business Act (15 U.S.C. 631 et seq.).
            ``(2) Contractor.--The term `contractor' includes each 
        subcontractor of a contractor.
            ``(3) Covered contract.--The term `covered contract' means 
        a contract entered into or renewed after the date of the 
        enactment of the Homeland Security Network Defense and 
        Accountability Act of 2008 for the provision of covered 
        information services.
            ``(4) Covered information services.--The term `covered 
        information services' means creation, management, maintenance, 
        control, or operation of information networks or Internet Web 
        sites for the Department.
            ``(5) Historically black colleges and universities.--The 
        term `Historically Black Colleges and Universities' means part 
        B institutions under title III of the Higher Education Act of 
        1965 (20 U.S.C. 1061).
            ``(6) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given such term under 
        title V of the Higher Education Act of 1965 (20 U.S.C. 
        1101a(a)(5)).
            ``(7) Information infrastructure.--The term `information 
        infrastructure' has the meaning that term has under section 
        703.
            ``(8) Tribal colleges and universities.--The term `tribal 
        colleges and universities' has the meaning given such term 
        under the Tribally Controlled College or University Assistance 
        Act of 1978 (25 U.S.C. 1801 et seq.).''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item relating to section 835 
the following new item:

``Sec. 836. Requirements for network service providers.''.
    (c) Report.--Within 90 days after the date of enactment of this 
Act, the Secretary of Homeland Security shall transmit to the Committee 
on Homeland Security of the House of Representatives and the Homeland 
Security and Governmental Affairs Committee of the Senate a report 
describing--
            (1) the progress in implementing requirements issued by the 
        Office of Management and Budget for encryption, authentication, 
        Internet Protocol version 6, and Trusted Internet Connections, 
        including a timeline for completion;
            (2) a plan, including an estimated budget and a timeline, 
        to investigate breaches against the Department of Homeland 
        Security's information infrastructure for purposes of 
        counterintelligence assessment, attribution, and response;
            (3) a proposal to increase threat information sharing with 
        cleared and uncleared contractors and provide specialized 
        damage assessment training to private sector information 
        security professionals; and
            (4) a process to coordinate the Department of Homeland 
        Security's information infrastructure protection activities.

SEC. 7. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed as affecting in any manner 
the application of the Federal Information Management Security Act of 
2002 (44 U.S.C. 3541 et seq.), to the Department of Homeland Security, 
including all requirements and deadlines in that Act.

            Passed the House of Representatives July 30, 2008.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.

Summary: Homeland Security Network Defense and Accountability Act of 2008 - Amends the Homeland Security Act of 2002 to direct the Secretary of the Department of Homeland Security (DHS) to delegate to the Department's Chief Information Officer (CIO) authority for the development, approval, implementation, integration, and oversight of DHS policies, procedures, activities, funding, and systems relating to information management and information infrastructure. Lists CIO qualifications and functions . Directs the CIO to establish, oversee the deployment of, and regularly update security control testing protocols that ensure that DHS's information infrastructure is effectively protected against known attacks and exploitations of federal and contractor information infrastructure. Requires the Inspector General to conduct performance and programmatic reviews of DHS's information infrastructure to determine the effectiveness of its security policies and controls. Requires programmatic reviews to: (1) determine whether a DHS component is complying with policies, processes, and procedures established by the CIO. And (2) focus on risk assessment, management, and mitigation, with primary regard to the implementation of best practices such as authentication, access control , intrusion detection and prevention, and data protection and integrity. Directs the Inspector General to submit a security report on each review that includes prioritized recommendations for improving security controls, including recommendations regarding funding changes and personnel management, to the Secretary, CIO, and head of the DHS component. Requires: (1) the DHS component head and the CIO to jointly submit a corrective action report to the Secretary and the Inspector General. And (2) the Inspector General to submit an annual report to the House and Senate homeland security committees. Defines information infrastructure under such Act as systems and assets used in processing, transmitting, receiving, or storing information electronically. Requires the Secretary, before entering into or renewing a covered contract and acting through the CIO, to determine that the contractor has an internal information systems security policy that complies with DHS information security requirements. Sets forth contract requirements regarding security and subcontracting, including requiring the contractor to: (1) provide contracted services on a continuing basis to DHS in the event of an unplanned or disruptive event. (2) deliver timely notice of any internal computer incident that could violate or threaten computer security policies, acceptable use policies, or standard security practices at DHS to the US Computer Emergency Readiness Team and the incident response team. And (3) develop and implement a plan for the award of subcontracts to small business and disadvantaged business concerns. Directs the Secretary to report to the House Homeland Security Committee and the Senate Homeland Security and Governmental Affairs Committee on: (1) progress in implementing requirements issued by the Office of Management and Budget (OMB) for encryption, authentication, Internet Protocol version 6, and Trusted Internet Connections. (2) a plan to investigate breaches against DHS's information infrastructure for purposes of counterintelligence assessment, attribution, and response. (3) a proposal to increase threat information sharing with contractors and provide specialized damage assessment training to private sector information security professionals. And (4) a process to coordinate DHS's information infrastructure protection activities. Provides that nothing in this Act shall affect the application of the Federal Information Management Security Act of 2002 to DHS.