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[House Report 114-83]
[From the U.S. Government Publishing Office]

114th Congress    }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                      {       114-83

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

 
       NATIONAL CYBERSECURITY PROTECTION ADVANCEMENT ACT OF 2015

                                _______
                                

 April 17, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 1731]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 1731) to amend the Homeland Security Act of 2002 
to enhance multi-directional sharing of information related to 
cybersecurity risks and strengthen privacy and civil liberties 
protections, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    15
Background and Need for Legislation..............................    15
Hearings.........................................................    17
Committee Consideration..........................................    18
Committee Votes..................................................    21
Committee Oversight Findings.....................................    23
New Budget Authority, Entitlement Authority, and Tax Expenditures    23
Congressional Budget Office Estimate.............................    23
Statement of General Performance Goals and Objectives............    25
Duplicative Federal Programs.....................................    25
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................    25
Federal Mandates Statement.......................................    25
Preemption Clarification.........................................    25
Disclosure of Directed Rule Makings..............................    26
Advisory Committee Statement.....................................    26
Applicability to Legislative Branch..............................    26
Section-by-Section Analysis of the Legislation...................    26
Changes in Existing Law Made by the Bill, as Reported............    36
Additional Views.................................................    61

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``National Cybersecurity Protection 
Advancement Act of 2015''.

SEC. 2. NATIONAL CYBERSECURITY AND COMMUNICATIONS INTEGRATION CENTER.

  (a) Definitions.--
          (1) In general.--Subsection (a) of the second section 226 of 
        the Homeland Security Act of 2002 (6 U.S.C. 148; relating to 
        the National Cybersecurity and Communications Integration 
        Center) is amended--
                  (A) in paragraph (3), by striking ``and'' at the end;
                  (B) in paragraph (4), by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following new 
                paragraphs:
          ``(5) the term `cyber threat indicator' means technical 
        information that is necessary to describe or identify--
                  ``(A) a method for probing, monitoring, maintaining, 
                or establishing network awareness of an information 
                system for the purpose of discerning technical 
                vulnerabilities of such information system, if such 
                method is known or reasonably suspected of being 
                associated with a known or suspected cybersecurity 
                risk, including communications that reasonably appear 
                to be transmitted for the purpose of gathering 
                technical information related to a cybersecurity risk;
                  ``(B) a method for defeating a technical or security 
                control of an information system;
                  ``(C) a technical vulnerability, including anomalous 
                technical behavior that may become a vulnerability;
                  ``(D) a method of causing a user with legitimate 
                access to an information system or information that is 
                stored on, processed by, or transiting an information 
                system to inadvertently enable the defeat of a 
                technical or operational control;
                  ``(E) a method for unauthorized remote identification 
                of, access to, or use of an information system or 
                information that is stored on, processed by, or 
                transiting an information system that is known or 
                reasonably suspected of being associated with a known 
                or suspected cybersecurity risk;
                  ``(F) the actual or potential harm caused by a 
                cybersecurity risk, including a description of the 
                information exfiltrated as a result of a particular 
                cybersecurity risk;
                  ``(G) any other attribute of a cybersecurity risk 
                that cannot be used to identify specific persons 
                reasonably believed to be unrelated to such 
                cybersecurity risk, if disclosure of such attribute is 
                not otherwise prohibited by law; or
                  ``(H) any combination of subparagraphs (A) through 
                (G);
          ``(6) the term `cybersecurity purpose' means the purpose of 
        protecting an information system or information that is stored 
        on, processed by, or transiting an information system from a 
        cybersecurity risk or incident;
          ``(7)(A) except as provided in subparagraph (B), the term 
        `defensive measure' means an action, device, procedure, 
        signature, technique, or other measure applied to an 
        information system or information that is stored on, processed 
        by, or transiting an information system that detects, prevents, 
        or mitigates a known or suspected cybersecurity risk or 
        incident, or any attribute of hardware, software, process, or 
        procedure that could enable or facilitate the defeat of a 
        security control;
          ``(B) such term does not include a measure that destroys, 
        renders unusable, or substantially harms an information system 
        or data on an information system not belonging to--
                  ``(i) the non-Federal entity, not including a State, 
                local, or tribal government, operating such measure; or
                  ``(ii) another Federal entity or non-Federal entity 
                that is authorized to provide consent and has provided 
                such consent to the non-Federal entity referred to in 
                clause (i);
          ``(8) the term `network awareness' means to scan, identify, 
        acquire, monitor, log, or analyze information that is stored 
        on, processed by, or transiting an information system;
          ``(9)(A) the term `private entity' means a non-Federal entity 
        that is an individual or private group, organization, 
        proprietorship, partnership, trust, cooperative, corporation, 
        or other commercial or non-profit entity, including an officer, 
        employee, or agent thereof;
          ``(B) such term includes a component of a State, local, or 
        tribal government performing electric utility services;
          ``(10) the term `security control' means the management, 
        operational, and technical controls used to protect against an 
        unauthorized effort to adversely affect the confidentially, 
        integrity, or availability of an information system or 
        information that is stored on, processed by, or transiting an 
        information system; and
          ``(11) the term `sharing' means providing, receiving, and 
        disseminating.''.
  (b) Amendment.--Subparagraph (B) of subsection (d)(1) of such second 
section 226 of the Homeland Security Act of 2002 is amended--
          (1) in clause (i), by striking ``and local'' and inserting 
        ``, local, and tribal'';
          (2) in clause (ii)--
                  (A) by inserting ``, including information sharing 
                and analysis centers'' before the semicolon; and
                  (B) by striking ``and'' at the end;
          (3) in clause (iii), by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following new clause:
                          ``(iv) private entities.''.

SEC. 3. INFORMATION SHARING STRUCTURE AND PROCESSES.

  The second section 226 of the Homeland Security Act of 2002 (6 U.S.C. 
148; relating to the National Cybersecurity and Communications 
Integration Center) is amended--
          (1) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by striking ``a Federal civilian 
                        interface'' and inserting ``the lead Federal 
                        civilian interface''; and
                          (ii) by striking ``cybersecurity risks,'' and 
                        inserting ``cyber threat indicators, defensive 
                        measures, cybersecurity risks,'';
                  (B) in paragraph (3), by striking ``cybersecurity 
                risks'' and inserting ``cyber threat indicators, 
                defensive measures, cybersecurity risks,'';
                  (C) in paragraph (5)(A), by striking ``cybersecurity 
                risks'' and inserting ``cyber threat indicators, 
                defensive measures, cybersecurity risks,'';
                  (D) in paragraph (6)--
                          (i) by striking ``cybersecurity risks'' and 
                        inserting ``cyber threat indicators, defensive 
                        measures, cybersecurity risks,''; and
                          (ii) by striking ``and'' at the end;
                  (E) in paragraph (7)--
                          (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 new 
                        subparagraph:
                  ``(C) sharing cyber threat indicators and defensive 
                measures;''; and
                  (F) by adding at the end the following new paragraphs
          ``(8) engaging with international partners, in consultation 
        with other appropriate agencies, to--
                  ``(A) collaborate on cyber threat indicators, 
                defensive measures, and information related to 
                cybersecurity risks and incidents; and
                  ``(B) enhance the security and resilience of global 
                cybersecurity;
          ``(9) sharing cyber threat indicators, defensive measures, 
        and other information related to cybersecurity risks and 
        incidents with Federal and non-Federal entities, including 
        across sectors of critical infrastructure and with State and 
        major urban area fusion centers, as appropriate;
          ``(10) promptly notifying the Secretary and the Committee on 
        Homeland Security of the House of Representatives and the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate of any significant violations of the policies and 
        procedures specified in subsection (i)(6)(A);
          ``(11) promptly notifying non-Federal entities that have 
        shared cyber threat indicators or defensive measures that are 
        known or determined to be in error or in contravention of the 
        requirements of this section; and
          ``(12) participating, as appropriate, in exercises run by the 
        Department's National Exercise Program.'';
          (2) in subsection (d)--
                  (A) in subparagraph (D), by striking ``and'' at the 
                end;
                  (B) by redesignating subparagraph (E) as subparagraph 
                (J); and
                  (C) by inserting after subparagraph (D) the following 
                new subparagraphs:
                  ``(E) an entity that collaborates with State and 
                local governments on cybersecurity risks and incidents, 
                and has entered into a voluntary information sharing 
                relationship with the Center;
                  ``(F) a United States Computer Emergency Readiness 
                Team that coordinates information related to 
                cybersecurity risks and incidents, proactively and 
                collaboratively addresses cybersecurity risks and 
                incidents to the United States, collaboratively 
                responds to cybersecurity risks and incidents, provides 
                technical assistance, upon request, to information 
                system owners and operators, and shares cyber threat 
                indicators, defensive measures, analysis, or 
                information related to cybersecurity risks and 
                incidents in a timely manner;
                  ``(G) the Industrial Control System Cyber Emergency 
                Response Team that--
                          ``(i) coordinates with industrial control 
                        systems owners and operators;
                          ``(ii) provides training, upon request, to 
                        Federal entities and non-Federal entities on 
                        industrial control systems cybersecurity;
                          ``(iii) collaboratively addresses 
                        cybersecurity risks and incidents to industrial 
                        control systems;
                          ``(iv) provides technical assistance, upon 
                        request, to Federal entities and non-Federal 
                        entities relating to industrial control systems 
                        cybersecurity; and
                          ``(v) shares cyber threat indicators, 
                        defensive measures, or information related to 
                        cybersecurity risks and incidents of industrial 
                        control systems in a timely fashion;
                  ``(H) a National Coordinating Center for 
                Communications that coordinates the protection, 
                response, and recovery of emergency communications;
                  ``(I) an entity that coordinates with small and 
                medium-sized businesses; and'';
          (3) in subsection (e)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A), by inserting ``cyber 
                        threat indicators, defensive measures, and'' 
                        before ``information'';
                          (ii) in subparagraph (B), by inserting 
                        ``cyber threat indicators, defensive measures, 
                        and'' before ``information'';
                          (iii) in subparagraph (F), by striking 
                        ``cybersecurity risks'' and inserting ``cyber 
                        threat indicators, defensive measures, 
                        cybersecurity risks,'';
                          (iv) in subparagraph (F), by striking ``and'' 
                        at the end;
                          (v) in subparagraph (G), by striking 
                        ``cybersecurity risks'' and inserting ``cyber 
                        threat indicators, defensive measures, 
                        cybersecurity risks,''; and
                          (vi) by adding at the end the following:
                  ``(H) the Center ensures that it shares information 
                relating to cybersecurity risks and incidents with 
                small and medium-sized businesses, as appropriate; and
                  ``(I) the Center designates an agency contact for 
                non-Federal entities;'';
                  (B) in paragraph (2)--
                          (i) by striking ``cybersecurity risks'' and 
                        inserting ``cyber threat indicators, defensive 
                        measures, cybersecurity risks,''; and
                          (ii) by inserting ``or disclosure'' before 
                        the semicolon at the end; and
                  (C) in paragraph (3), by inserting before the period 
                at the end the following: ``, including by working with 
                the Chief Privacy Officer appointed under section 222 
                to ensure that the Center follows the policies and 
                procedures specified in subsection (i)(6)(A)''; and
          (4) by adding at the end the following new subsections:
  ``(g) Rapid Automated Sharing.--
          ``(1) In general.--The Under Secretary for Cybersecurity and 
        Infrastructure Protection, in coordination with industry and 
        other stakeholders, shall develop capabilities making use of 
        existing information technology industry standards and best 
        practices, as appropriate, that support and rapidly advance the 
        development, adoption, and implementation of automated 
        mechanisms for the timely sharing of cyber threat indicators 
        and defensive measures to and from the Center and with each 
        Federal agency designated as the `Sector Specific Agency' for 
        each critical infrastructure sector in accordance with 
        subsection (h).
          ``(2) Biannual report.--The Under Secretary for Cybersecurity 
        and Infrastructure Protection shall submit to the Committee on 
        Homeland Security of the House of Representatives and the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate a biannual report on the status and progress of the 
        development of the capability described in paragraph (1). Such 
        reports shall be required until such capability is fully 
        implemented.
  ``(h) Sector Specific Agencies.--The Secretary, in collaboration with 
the relevant critical infrastructure sector and the heads of other 
appropriate Federal agencies, shall recognize the Federal agency 
designated as of March 25, 2015, as the `Sector Specific Agency' for 
each critical infrastructure sector designated in the Department's 
National Infrastructure Protection Plan. If the designated Sector 
Specific Agency for a particular critical infrastructure sector is the 
Department, for purposes of this section, the Secretary is deemed to be 
the head of such Sector Specific Agency and shall carry out this 
section. The Secretary, in coordination with the heads of each such 
Sector Specific Agency, shall--
          ``(1) support the security and resilience actives of the 
        relevant critical infrastructure sector in accordance with this 
        section;
          ``(2) provide institutional knowledge, specialized expertise, 
        and technical assistance upon request to the relevant critical 
        infrastructure sector; and
          ``(3) support the timely sharing of cyber threat indicators 
        and defensive measures with the relevant critical 
        infrastructure sector with the Center in accordance with this 
        section.
  ``(i) Voluntary Information Sharing Procedures.--
          ``(1) Procedures.--
                  ``(A) In general.--The Center may enter into a 
                voluntary information sharing relationship with any 
                consenting non-Federal entity for the sharing of cyber 
                threat indicators and defensive measures for 
                cybersecurity purposes in accordance with this section. 
                Nothing in this section may be construed to require any 
                non-Federal entity to enter into any such information 
                sharing relationship with the Center or any other 
                entity. The Center may terminate a voluntary 
                information sharing relationship under this subsection 
                if the Center determines that the non-Federal entity 
                with which the Center has entered into such a 
                relationship has, after repeated notice, repeatedly 
                violated the terms of this subsection.
                  ``(B) National security.--The Secretary may decline 
                to enter into a voluntary information sharing 
                relationship under this subsection if the Secretary 
                determines that such is appropriate for national 
                security.
          ``(2) Voluntary information sharing relationships.--A 
        voluntary information sharing relationship under this 
        subsection may be characterized as an agreement described in 
        this paragraph.
                  ``(A) Standard agreement.--For the use of a non-
                Federal entity, the Center shall make available a 
                standard agreement, consistent with this section, on 
                the Department's website.
                  ``(B) Negotiated agreement.--At the request of a non-
                Federal entity, and if determined appropriate by the 
                Center, the Department shall negotiate a non-standard 
                agreement, consistent with this section.
                  ``(C) Existing agreements.--An agreement between the 
                Center and a non-Federal entity that is entered into 
                before the date of the enactment of this section, or 
                such an agreement that is in effect before such date, 
                shall be deemed in compliance with the requirements of 
                this subsection, notwithstanding any other provision or 
                requirement of this subsection. An agreement under this 
                subsection shall include the relevant privacy 
                protections as in effect under the Cooperative Research 
                and Development Agreement for Cybersecurity Information 
                Sharing and Collaboration, as of December 31, 2014. 
                Nothing in this subsection may be construed to require 
                a non-Federal entity to enter into either a standard or 
                negotiated agreement to be in compliance with this 
                subsection.
          ``(3) Information sharing authorization.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), and notwithstanding any other provision of law, a 
                non-Federal entity may, for cybersecurity purposes, 
                share cyber threat indicators or defensive measures 
                obtained on its own information system, or on an 
                information system of another Federal entity or non-
                Federal entity, upon written consent of such other 
                Federal entity or non-Federal entity or an authorized 
                representative of such other Federal entity or non-
                Federal entity in accordance with this section with--
                          ``(i) another non-Federal entity; or
                          ``(ii) the Center, as provided in this 
                        section.
                  ``(B) Lawful restriction.--A non-Federal entity 
                receiving a cyber threat indicator or defensive measure 
                from another Federal entity or non-Federal entity shall 
                comply with otherwise lawful restrictions placed on the 
                sharing or use of such cyber threat indicator or 
                defensive measure by the sharing Federal entity or non-
                Federal entity.
                  ``(C) Removal of information unrelated to 
                cybersecurity risks or incidents.--Federal entities and 
                non-Federal entities shall, prior to such sharing, take 
                reasonable efforts to remove information that can be 
                used to identify specific persons and is reasonably 
                believed at the time of sharing to be unrelated to a 
                cybersecurity risks or incident and to safeguard 
                information that can be used to identify specific 
                persons from unintended disclosure or unauthorized 
                access or acquisition.
                  ``(D) Rule of construction.--Nothing in this 
                paragraph may be construed to--
                          ``(i) limit or modify an existing information 
                        sharing relationship;
                          ``(ii) prohibit a new information sharing 
                        relationship;
                          ``(iii) require a new information sharing 
                        relationship between any non-Federal entity and 
                        a Federal entity;
                          ``(iv) limit otherwise lawful activity; or
                          ``(v) in any manner impact or modify 
                        procedures in existence as of the date of the 
                        enactment of this section for reporting known 
                        or suspected criminal activity to appropriate 
                        law enforcement authorities or for 
                        participating voluntarily or under legal 
                        requirement in an investigation.
                  ``(E) Coordinated vulnerability disclosure.--The 
                Under Secretary for Cybersecurity and Infrastructure 
                Protection, in coordination with industry and other 
                stakeholders, shall develop, publish, and adhere to 
                policies and procedures for coordinating vulnerability 
                disclosures, to the extent practicable, consistent with 
                international standards in the information technology 
                industry.
          ``(4) Network awareness authorization.--
                  ``(A) In general.--Notwithstanding any other 
                provision of law, a non-Federal entity, not including a 
                State, local, or tribal government, may, for 
                cybersecurity purposes, conduct network awareness of--
                          ``(i) an information system of such non-
                        Federal entity to protect the rights or 
                        property of such non-Federal entity;
                          ``(ii) an information system of another non-
                        Federal entity, upon written consent of such 
                        other non-Federal entity for conducting such 
                        network awareness to protect the rights or 
                        property of such other non-Federal entity;
                          ``(iii) an information system of a Federal 
                        entity, upon written consent of an authorized 
                        representative of such Federal entity for 
                        conducting such network awareness to protect 
                        the rights or property of such Federal entity; 
                        or
                          ``(iv) information that is stored on, 
                        processed by, or transiting an information 
                        system described in this subparagraph.
                  ``(B) Rule of construction.--Nothing in this 
                paragraph may be construed to--
                          ``(i) authorize conducting network awareness 
                        of an information system, or the use of any 
                        information obtained through such conducting of 
                        network awareness, other than as provided in 
                        this section; or
                          ``(ii) limit otherwise lawful activity.
          ``(5) Defensive measure authorization.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B) and notwithstanding any other provision of law, a 
                non-Federal entity, not including a State, local, or 
                tribal government, may, for cybersecurity purposes, 
                operate a defensive measure that is applied to--
                          ``(i) an information system of such non-
                        Federal entity to protect the rights or 
                        property of such non-Federal entity;
                          ``(ii) an information system of another non-
                        Federal entity upon written consent of such 
                        other non-Federal entity for operation of such 
                        defensive measure to protect the rights or 
                        property of such other non-Federal entity;
                          ``(iii) an information system of a Federal 
                        entity upon written consent of an authorized 
                        representative of such Federal entity for 
                        operation of such defensive measure to protect 
                        the rights or property of such Federal entity; 
                        or
                          ``(iv) information that is stored on, 
                        processed by, or transiting an information 
                        system described in this subparagraph.
                  ``(B) Rule of construction.--Nothing in this 
                paragraph may be construed to--
                          ``(i) authorize the use of a defensive 
                        measure other than as provided in this section; 
                        or
                          ``(ii) limit otherwise lawful activity.
          ``(6) Privacy and civil liberties protections.--
                  ``(A) Policies and procedures.--
                          ``(i) In general.--The Under Secretary for 
                        Cybersecurity and Infrastructure Protection 
                        shall, in coordination with the Chief Privacy 
                        Officer and the Chief Civil Rights and Civil 
                        Liberties Officer of the Department, establish 
                        and annually review policies and procedures 
                        governing the receipt, retention, use, and 
                        disclosure of cyber threat indicators, 
                        defensive measures, and information related to 
                        cybersecurity risks and incidents shared with 
                        the Center in accordance with this section. 
                        Such policies and procedures shall apply only 
                        to the Department, consistent with the need to 
                        protect information systems from cybersecurity 
                        risks and incidents and mitigate cybersecurity 
                        risks and incidents in a timely manner, and 
                        shall--
                                  ``(I) be consistent with the 
                                Department's Fair Information Practice 
                                Principles developed pursuant to 
                                section 552a of title 5, United States 
                                Code (commonly referred to as the 
                                `Privacy Act of 1974' or the `Privacy 
                                Act'), and subject to the Secretary's 
                                authority under subsection (a)(2) of 
                                section 222 of this Act;
                                  ``(II) reasonably limit, to the 
                                greatest extent practicable, the 
                                receipt, retention, use, and disclosure 
                                of cyber threat indicators and 
                                defensive measures associated with 
                                specific persons that is not necessary, 
                                for cybersecurity purposes, to protect 
                                a network or information system from 
                                cybersecurity risks or mitigate 
                                cybersecurity risks and incidents in a 
                                timely manner;
                                  ``(III) minimize any impact on 
                                privacy and civil liberties;
                                  ``(IV) provide data integrity through 
                                the prompt removal and destruction of 
                                obsolete or erroneous names and 
                                personal information that is unrelated 
                                to the cybersecurity risk or incident 
                                information shared and retained by the 
                                Center in accordance with this section;
                                  ``(V) include requirements to 
                                safeguard cyber threat indicators and 
                                defensive measures retained by the 
                                Center, including information that is 
                                proprietary or business-sensitive that 
                                may be used to identify specific 
                                persons from unauthorized access or 
                                acquisition;
                                  ``(VI) protect the confidentiality of 
                                cyber threat indicators and defensive 
                                measures associated with specific 
                                persons to the greatest extent 
                                practicable; and
                                  ``(VII) ensure all relevant 
                                constitutional, legal, and privacy 
                                protections are observed.
                          ``(ii) Submission to congress.--Not later 
                        than 180 days after the date of the enactment 
                        of this section and annually thereafter, the 
                        Chief Privacy Officer and the Officer for Civil 
                        Rights and Civil Liberties of the Department, 
                        in consultation with the Privacy and Civil 
                        Liberties Oversight Board (established pursuant 
                        to section 1061 of the Intelligence Reform and 
                        Terrorism Prevention Act of 2004 (42 U.S.C. 
                        2000ee)), shall submit to the Committee on 
                        Homeland Security of the House of 
                        Representatives and the Committee on Homeland 
                        Security and Governmental Affairs of the Senate 
                        the policies and procedures governing the 
                        sharing of cyber threat indicators, defensive 
                        measures, and information related to 
                        cybsersecurity risks and incidents described in 
                        clause (i) of subparagraph (A).
                          ``(iii) Public notice and access.--The Under 
                        Secretary for Cybersecurity and Infrastructure 
                        Protection, in consultation with the Chief 
                        Privacy Officer and the Chief Civil Rights and 
                        Civil Liberties Officer of the Department, and 
                        the Privacy and Civil Liberties Oversight Board 
                        (established pursuant to section 1061 of the 
                        Intelligence Reform and Terrorism Prevention 
                        Act of 2004 (42 U.S.C. 2000ee)), shall ensure 
                        there is public notice of, and access to, the 
                        policies and procedures governing the sharing 
                        of cyber threat indicators, defensive measures, 
                        and information related to cybersecurity risks 
                        and incidents.
                          ``(iv) Consultation.--The Under Secretary for 
                        Cybersecurity and Infrastructure Protection 
                        when establishing policies and procedures to 
                        support privacy and civil liberties may consult 
                        with the National Institute of Standards and 
                        Technology.
                  ``(B) Implementation.--The Chief Privacy Officer of 
                the Department, on an ongoing basis, shall--
                          ``(i) monitor the implementation of the 
                        policies and procedures governing the sharing 
                        of cyber threat indicators and defensive 
                        measures established pursuant to clause (i) of 
                        subparagraph (A);
                          ``(ii) regularly review and update privacy 
                        impact assessments, as appropriate, to ensure 
                        all relevant constitutional, legal, and privacy 
                        protections are being followed;
                          ``(iii) work with the Under Secretary for 
                        Cybersecurity and Infrastructure Protection to 
                        carry out paragraphs (10) and (11) of 
                        subsection (c);
                          ``(iv) annually submit to the Committee on 
                        Homeland Security of the House of 
                        Representatives and the Committee on Homeland 
                        Security and Governmental Affairs of the Senate 
                        a report that contains a review of the 
                        effectiveness of such policies and procedures 
                        to protect privacy and civil liberties; and
                          ``(v) ensure there are appropriate sanctions 
                        in place for officers, employees, or agents of 
                        the Department who intentionally or willfully 
                        conduct activities under this section in an 
                        unauthorized manner.
                  ``(C) Inspector general report.--The Inspector 
                General of the Department, in consultation with the 
                Privacy and Civil Liberties Oversight Board and the 
                Inspector General of each Federal agency that receives 
                cyber threat indicators or defensive measures shared 
                with the Center under this section, shall, not later 
                than two years after the date of the enactment of this 
                subsection and periodically thereafter submit to the 
                Committee on Homeland Security of the House of 
                Representatives and the Committee on Homeland Security 
                and Governmental Affairs of the Senate a report 
                containing a review of the use of cybersecurity risk 
                information shared with the Center, including the 
                following:
                          ``(i) A report on the receipt, use, and 
                        dissemination of cyber threat indicators and 
                        defensive measures that have been shared with 
                        Federal entities under this section.
                          ``(ii) Information on the use by the Center 
                        of such information for a purpose other than a 
                        cybersecurity purpose.
                          ``(iii) A review of the type of information 
                        shared with the Center under this section.
                          ``(iv) A review of the actions taken by the 
                        Center based on such information.
                          ``(v) The appropriate metrics that exist to 
                        determine the impact, if any, on privacy and 
                        civil liberties as a result of the sharing of 
                        such information with the Center.
                          ``(vi) A list of other Federal agencies 
                        receiving such information.
                          ``(vii) A review of the sharing of such 
                        information within the Federal Government to 
                        identify inappropriate stove piping of such 
                        information.
                          ``(viii) Any recommendations of the Inspector 
                        General of the Department for improvements or 
                        modifications to information sharing under this 
                        section.
                  ``(D) Privacy and civil liberties officers report.--
                The Chief Privacy Officer and the Chief Civil Rights 
                and Civil Liberties Officer of the Department, in 
                consultation with the Privacy and Civil Liberties 
                Oversight Board, the Inspector General of the 
                Department, and the senior privacy and civil liberties 
                officer of each Federal agency that receives cyber 
                threat indicators and defensive measures shared with 
                the Center under this section, shall biennially submit 
                to the appropriate congressional committees a report 
                assessing the privacy and civil liberties impact of the 
                activities under this paragraph. Each such report shall 
                include any recommendations the Chief Privacy Officer 
                and the Chief Civil Rights and Civil Liberties Officer 
                of the Department consider appropriate to minimize or 
                mitigate the privacy and civil liberties impact of the 
                sharing of cyber threat indicators and defensive 
                measures under this section.
                  ``(E) Form.--Each report required under paragraphs 
                (C) and (D) shall be submitted in unclassified form, 
                but may include a classified annex.
          ``(7) Uses and protection of information.--
                  ``(A) Non-federal entities.--A non-Federal entity, 
                not including a State, local, or tribal government, 
                that shares cyber threat indicators or defensive 
                measures through the Center or otherwise under this 
                section--
                          ``(i) may use, retain, or further disclose 
                        such cyber threat indicators or defensive 
                        measures solely for cybersecurity purposes;
                          ``(ii) shall, prior to such sharing, take 
                        reasonable efforts to remove information that 
                        can be used to identify specific persons and is 
                        reasonably believed at the time of sharing to 
                        be unrelated to a cybersecurity risk or 
                        incident, and to safeguard information that can 
                        be used to identify specific persons from 
                        unintended disclosure or unauthorized access or 
                        acquisition;
                          ``(iii) shall comply with appropriate 
                        restrictions that a Federal entity or non-
                        Federal entity places on the subsequent 
                        disclosure or retention of cyber threat 
                        indicators and defensive measures that it 
                        discloses to other Federal entities or non-
                        Federal entities;
                          ``(iv) shall be deemed to have voluntarily 
                        shared such cyber threat indicators or 
                        defensive measures;
                          ``(v) shall implement and utilize a security 
                        control to protect against unauthorized access 
                        to or acquisition of such cyber threat 
                        indicators or defensive measures; and
                          ``(vi) may not use such information to gain 
                        an unfair competitive advantage to the 
                        detriment of any non-Federal entity.
                  ``(B) Federal entities.--
                          ``(i) Uses of information.--A Federal entity 
                        that receives cyber threat indicators or 
                        defensive measures shared through the Center or 
                        otherwise under this section from another 
                        Federal entity or a non-Federal entity--
                                  ``(I) may use, retain, or further 
                                disclose such cyber threat indicators 
                                or defensive measures solely for 
                                cybersecurity purposes;
                                  ``(II) shall, prior to such sharing, 
                                take reasonable efforts to remove 
                                information that can be used to 
                                identify specific persons and is 
                                reasonably believed at the time of 
                                sharing to be unrelated to a 
                                cybersecurity risk or incident, and to 
                                safeguard information that can be used 
                                to identify specific persons from 
                                unintended disclosure or unauthorized 
                                access or acquisition;
                                  ``(III) shall be deemed to have 
                                voluntarily shared such cyber threat 
                                indicators or defensive measures;
                                  ``(IV) shall implement and utilize a 
                                security control to protect against 
                                unauthorized access to or acquisition 
                                of such cyber threat indicators or 
                                defensive measures; and
                                  ``(V) may not use such cyber threat 
                                indicators or defensive measures to 
                                engage in surveillance or other 
                                collection activities for the purpose 
                                of tracking an individual's personally 
                                identifiable information.
                          ``(ii) Protections for information.--The 
                        cyber threat indicators and defensive measures 
                        referred to in clause (i)--
                                  ``(I) are exempt from disclosure 
                                under section 552 of title 5, United 
                                States Code, and withheld, without 
                                discretion, from the public under 
                                subsection (b)(3)(B) of such section;
                                  ``(II) may not be used by the Federal 
                                Government for regulatory purposes;
                                  ``(III) may not constitute a waiver 
                                of any applicable privilege or 
                                protection provided by law, including 
                                trade secret protection;
                                  ``(IV) shall be considered the 
                                commercial, financial, and proprietary 
                                information of the non-Federal entity 
                                referred to in clause (i) when so 
                                designated by such non-Federal entity; 
                                and
                                  ``(V) may not be subject to a rule of 
                                any Federal entity or any judicial 
                                doctrine regarding ex parte 
                                communications with a decisionmaking 
                                official.
                  ``(C) State, local, or tribal government.--
                          ``(i) Uses of information.--A State, local, 
                        or tribal government that receives cyber threat 
                        indicators or defensive measures from the 
                        Center from a Federal entity or a non-Federal 
                        entity--
                                  ``(I) may use, retain, or further 
                                disclose such cyber threat indicators 
                                or defensive measures solely for 
                                cybersecurity purposes;
                                  ``(II) shall, prior to such sharing, 
                                take reasonable efforts to remove 
                                information that can be used to 
                                identify specific persons and is 
                                reasonably believed at the time of 
                                sharing to be unrelated to a 
                                cybersecurity risk or incident, and to 
                                safeguard information that can be used 
                                to identify specific persons from 
                                unintended disclosure or unauthorized 
                                access or acquisition;
                                  ``(III) shall consider such 
                                information the commercial, financial, 
                                and proprietary information of such 
                                Federal entity or non-Federal entity if 
                                so designated by such Federal entity or 
                                non-Federal entity;
                                  ``(IV) shall be deemed to have 
                                voluntarily shared such cyber threat 
                                indicators or defensive measures; and
                                  ``(V) shall implement and utilize a 
                                security control to protect against 
                                unauthorized access to or acquisition 
                                of such cyber threat indicators or 
                                defensive measures.
                          ``(ii) Protections for information.--The 
                        cyber threat indicators and defensive measures 
                        referred to in clause (i)--
                                  ``(I) shall be exempt from disclosure 
                                under any State, local, or tribal law 
                                or regulation that requires public 
                                disclosure of information or records by 
                                a public or quasi-public entity; and
                                  ``(II) may not be used by any State, 
                                local, or tribal government to regulate 
                                a lawful activity of a non-Federal 
                                entity.
          ``(8) Liability exemptions.--
                  ``(A) Network awareness.--No cause of action shall 
                lie or be maintained in any court, and such action 
                shall be promptly dismissed, against any non-Federal 
                entity that, for cybersecurity purposes, conducts 
                network awareness under paragraph (4), if such network 
                awareness is conducted in accordance with such 
                paragraph and this section.
                  ``(B) Information sharing.--No cause of action shall 
                lie or be maintained in any court, and such action 
                shall be promptly dismissed, against any non-Federal 
                entity that, for cybersecurity purposes, shares cyber 
                threat indicators or defensive measures under paragraph 
                (3), or fails to act based on such sharing, if such 
                sharing is conducted in accordance with such paragraph 
                and this section.
                  ``(C) Willful misconduct.--
                          ``(i) Rule of construction.--Nothing in this 
                        section may be construed to--
                                  ``(I) require dismissal of a cause of 
                                action against a non-Federal entity 
                                that has engaged in willful misconduct 
                                in the course of conducting activities 
                                authorized by this section; or
                                  ``(II) undermine or limit the 
                                availability of otherwise applicable 
                                common law or statutory defenses.
                          ``(ii) Proof of willful misconduct.--In any 
                        action claiming that subparagraph (A) or (B) 
                        does not apply due to willful misconduct 
                        described in clause (i), the plaintiff shall 
                        have the burden of proving by clear and 
                        convincing evidence the willful misconduct by 
                        each non-Federal entity subject to such claim 
                        and that such willful misconduct proximately 
                        caused injury to the plaintiff.
                          ``(iii) Willful misconduct defined.--In this 
                        subsection, the term `willful misconduct' means 
                        an act or omission that is taken--
                                  ``(I) intentionally to achieve a 
                                wrongful purpose;
                                  ``(II) knowingly without legal or 
                                factual justification; and
                                  ``(III) in disregard of a known or 
                                obvious risk that is so great as to 
                                make it highly probable that the harm 
                                will outweigh the benefit.
                  ``(D) Exclusion.--The term `non-Federal entity' as 
                used in this paragraph shall not include a State, 
                local, or tribal government.
          ``(9) Federal government liability for violations of 
        restrictions on the use and protection of voluntarily shared 
        information.--
                  ``(A) In general.--If a department or agency of the 
                Federal Government intentionally or willfully violates 
                the restrictions specified in paragraph (3), (6), or 
                (7)(B) on the use and protection of voluntarily shared 
                cyber threat indicators or defensive measures, or any 
                other provision of this section, the Federal Government 
                shall be liable to a person injured by such violation 
                in an amount equal to the sum of--
                          ``(i) the actual damages sustained by such 
                        person as a result of such violation or $1,000, 
                        whichever is greater; and
                          ``(ii) reasonable attorney fees as determined 
                        by the court and other litigation costs 
                        reasonably occurred in any case under this 
                        subsection in which the complainant has 
                        substantially prevailed.
                  ``(B) Venue.--An action to enforce liability under 
                this subsection may be brought in the district court of 
                the United States in--
                          ``(i) the district in which the complainant 
                        resides;
                          ``(ii) the district in which the principal 
                        place of business of the complainant is 
                        located;
                          ``(iii) the district in which the department 
                        or agency of the Federal Government that 
                        disclosed the information is located; or
                          ``(iv) the District of Columbia.
                  ``(C) Statute of limitations.--No action shall lie 
                under this subsection unless such action is commenced 
                not later than two years after the date of the 
                violation of any restriction specified in paragraph 
                (3), (6), or 7(B), or any other provision of this 
                section, that is the basis for such action.
                  ``(D) Exclusive cause of action.--A cause of action 
                under this subsection shall be the exclusive means 
                available to a complainant seeking a remedy for a 
                violation of any restriction specified in paragraph 
                (3), (6), or 7(B) or any other provision of this 
                section.
          ``(10) Anti-trust exemption.--
                  ``(A) In general.--Except as provided in subparagraph 
                (C), it shall not be considered a violation of any 
                provision of antitrust laws for two or more non-Federal 
                entities to share a cyber threat indicator or defensive 
                measure, or assistance relating to the prevention, 
                investigation, or mitigation of a cybersecurity risk or 
                incident, for cybersecurity purposes under this Act.
                  ``(B) Applicability.--Subparagraph (A) shall apply 
                only to information that is shared or assistance that 
                is provided in order to assist with--
                          ``(i) facilitating the prevention, 
                        investigation, or mitigation of a cybersecurity 
                        risk or incident to an information system or 
                        information that is stored on, processed by, or 
                        transiting an information system; or
                          ``(ii) communicating or disclosing a cyber 
                        threat indicator or defensive measure to help 
                        prevent, investigate, or mitigate the effect of 
                        a cybersecurity risk or incident to an 
                        information system or information that is 
                        stored on, processed by, or transiting an 
                        information system.
                  ``(C) Prohibited conduct.--Nothing in this section 
                may be construed to permit price-fixing, allocating a 
                market between competitors, monopolizing or attempting 
                to monopolize a market, or exchanges of price or cost 
                information, customer lists, or information regarding 
                future competitive planning.
          ``(11) Construction and preemption.--
                  ``(A) Otherwise lawful disclosures.--Nothing in this 
                section may be construed to limit or prohibit otherwise 
                lawful disclosures of communications, records, or other 
                information, including reporting of known or suspected 
                criminal activity or participating voluntarily or under 
                legal requirement in an investigation, by a non-Federal 
                to any other non-Federal entity or Federal entity under 
                this section.
                  ``(B) Whistle blower protections.--Nothing in this 
                section may be construed to prohibit or limit the 
                disclosure of information protected under section 
                2302(b)(8) of title 5, United States Code (governing 
                disclosures of illegality, waste, fraud, abuse, or 
                public health or safety threats), section 7211 of title 
                5, United States Code (governing disclosures to 
                Congress), section 1034 of title 10, United States Code 
                (governing disclosure to Congress by members of the 
                military), section 1104 of the National Security Act of 
                1947 (50 U.S.C. 3234) (governing disclosure by 
                employees of elements of the intelligence community), 
                or any similar provision of Federal or State law.
                  ``(C) Relationship to other laws.--Nothing in this 
                section may be construed to affect any requirement 
                under any other provision of law for a non-Federal 
                entity to provide information to a Federal entity.
                  ``(D) Preservation of contractual obligations and 
                rights.--Nothing in this section may be construed to--
                          ``(i) amend, repeal, or supersede any current 
                        or future contractual agreement, terms of 
                        service agreement, or other contractual 
                        relationship between any non-Federal entities, 
                        or between any non-Federal entity and a Federal 
                        entity; or
                          ``(ii) abrogate trade secret or intellectual 
                        property rights of any non-Federal entity or 
                        Federal entity.
                  ``(E) Anti-tasking restriction.--Nothing in this 
                section may be construed to permit a Federal entity 
                to--
                          ``(i) require a non-Federal entity to provide 
                        information to a Federal entity;
                          ``(ii) condition the sharing of cyber threat 
                        indicators or defensive measures with a non-
                        Federal entity on such non-Federal entity's 
                        provision of cyber threat indicators or 
                        defensive measures to a Federal entity; or
                          ``(iii) condition the award of any Federal 
                        grant, contract, or purchase on the sharing of 
                        cyber threat indicators or defensive measures 
                        with a Federal entity.
                  ``(F) No liability for non-participation.--Nothing in 
                this section may be construed to subject any non-
                Federal entity to liability for choosing to not engage 
                in the voluntary activities authorized under this 
                section.
                  ``(G) Use and retention of information.--Nothing in 
                this section may be construed to authorize, or to 
                modify any existing authority of, a department or 
                agency of the Federal Government to retain or use any 
                information shared under this section for any use other 
                than permitted in this section.
                  ``(H) Voluntary sharing.--Nothing in this section may 
                be construed to restrict or condition a non-Federal 
                entity from sharing, for cybersecurity purposes, cyber 
                threat indicators, defensive measures, or information 
                related to cybersecurity risks or incidents with any 
                other non-Federal entity, and nothing in this section 
                may be construed as requiring any non-Federal entity to 
                share cyber threat indicators, defensive measures, or 
                information related to cybersecurity risks or incidents 
                with the Center.
                  ``(I) Federal preemption.--This section supersedes 
                any statute or other provision of law of a State or 
                political subdivision of a State that restricts or 
                otherwise expressly regulates an activity authorized 
                under this section.
  ``(j) Direct Reporting.--The Secretary shall develop policies and 
procedures for direct reporting to the Secretary by the Director of the 
Center regarding significant cybersecurity risks and incidents.
  ``(k) Additional Responsibilities.--The Secretary shall build upon 
existing mechanisms to promote a national awareness effort to educate 
the general public on the importance of securing information systems.
  ``(l) Reports on International Cooperation.--Not later than 180 days 
after the date of the enactment of this subsection and periodically 
thereafter, the Secretary of Homeland Security shall submit to the 
Committee on Homeland Security of the House of Representatives and the 
Committee on Homeland Security and Governmental Affairs of the Senate a 
report on the range of efforts underway to bolster cybersecurity 
collaboration with relevant international partners in accordance with 
subsection (c)(8).
  ``(m) Outreach.--Not later than 60 days after the date of the 
enactment of this subsection, the Secretary, acting through the Under 
Secretary for Cybersecurity and Infrastructure Protection, shall--
          ``(1) disseminate to the public information about how to 
        voluntarily share cyber threat indicators and defensive 
        measures with the Center; and
          ``(2) enhance outreach to critical infrastructure owners and 
        operators for purposes of such sharing.''.

SEC. 4. INFORMATION SHARING AND ANALYSIS ORGANIZATIONS.

  Section 212 of the Homeland Security Act of 2002 (6 U.S.C. 131) is 
amended--
          (1) in paragraph (5)--
                  (A) in subparagraph (A)--
                          (i) by inserting ``information related to 
                        cybersecurity risks and incidents and'' after 
                        ``critical infrastructure information''; and
                          (ii) by striking ``related to critical 
                        infrastructure'' and inserting ``related to 
                        cybersecurity risks, incidents, critical 
                        infrastructure, and'';
                  (B) in subparagraph (B)--
                          (i) by striking ``disclosing critical 
                        infrastructure information'' and inserting 
                        ``disclosing cybersecurity risks, incidents, 
                        and critical infrastructure information''; and
                          (ii) by striking ``related to critical 
                        infrastructure or'' and inserting ``related to 
                        cybersecurity risks, incidents, critical 
                        infrastructure, or'' and
                  (C) in subparagraph (C), by striking ``disseminating 
                critical infrastructure information'' and inserting 
                ``disseminating cybersecurity risks, incidents, and 
                critical infrastructure information''; and
          (2) by adding at the end the following new paragraph:
          ``(8) Cybersecurity risk; incident.--The terms `cybersecurity 
        risk' and `incident' have the meanings given such terms in the 
        second section 226 (relating to the National Cybersecurity and 
        Communications Integration Center).''.

SEC. 5. STREAMLINING OF DEPARTMENT OF HOMELAND SECURITY CYBERSECURITY 
                    AND INFRASTRUCTURE PROTECTION ORGANIZATION.

  (a) Cybersecurity and Infrastructure Protection.--The National 
Protection and Programs Directorate of the Department of Homeland 
Security shall, after the date of the enactment of this Act, be known 
and designated as the ``Cybersecurity and Infrastructure Protection''. 
Any reference to the National Protection and Programs Directorate of 
the Department in any law, regulation, map, document, record, or other 
paper of the United States shall be deemed to be a reference to the 
Cybersecurity and Infrastructure Protection of the Department.
  (b) Senior Leadership of Cybersecurity and Infrastructure 
Protection.--
          (1) In general.--Subsection (a) of section 103 of the 
        Homeland Security Act of 2002 (6 U.S.C. 113) is amended--
                  (A) in paragraph (1)--
                          (i) by amending subparagraph (H) to read as 
                        follows:
                  ``(H) An Under Secretary for Cybersecurity and 
                Infrastructure Protection.''; and
                          (ii) by adding at the end the following new 
                        subparagraphs:
                  ``(K) A Deputy Under Secretary for Cybersecurity.
                  ``(L) A Deputy Under Secretary for Infrastructure 
                Protection.''; and
                  (B) by adding at the end the following new paragraph:
          ``(3) Deputy under secretaries.--The Deputy Under Secretaries 
        referred to in subparagraphs (K) and (L) of paragraph (1) shall 
        be appointed by the President without the advice and consent of 
        the Senate.''.
          (2) Continuation in office.--The individuals who hold the 
        positions referred in subparagraphs (H), (K), and (L) of 
        paragraph (1) of section 103(a) the Homeland Security Act of 
        2002 (as amended and added by paragraph (1) of this subsection) 
        as of the date of the enactment of this Act may continue to 
        hold such positions.
  (c) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Under Secretary for Cybersecurity and Infrastructure 
Protection of the Department of Homeland Security shall submit to the 
Committee on Homeland Security of the House of Representatives and the 
Committee on Homeland Security and Governmental Affairs of the Senate a 
report on the feasibility of becoming an operational component, 
including an analysis of alternatives, and if a determination is 
rendered that becoming an operational component is the best option for 
achieving the mission of Cybersecurity and Infrastructure Protection, a 
legislative proposal and implementation plan for becoming such an 
operational component. Such report shall also include plans to more 
effectively carry out the cybersecurity mission of Cybersecurity and 
Infrastructure Protection, including expediting information sharing 
agreements.

SEC. 6. CYBER INCIDENT RESPONSE PLANS.

  (a) In General.--Section 227 of the Homeland Security Act of 2002 (6 
U.S.C. 149) is amended--
          (1) in the heading, by striking ``plan'' and inserting 
        ``plans'';
          (2) by striking ``The Under Secretary appointed under section 
        103(a)(1)(H) shall'' and inserting the following:
  ``(a) In General.--The Under Secretary for Cybersecurity and 
Infrastructure Protection shall''; and
          (3) by adding at the end the following new subsection:
  ``(b) Updates to the Cyber Incident Annex to the National Response 
Framework.--The Secretary, in coordination with the heads of other 
appropriate Federal departments and agencies, and in accordance with 
the National Cybersecurity Incident Response Plan required under 
subsection (a), shall regularly update, maintain, and exercise the 
Cyber Incident Annex to the National Response Framework of the 
Department.''.
  (b) Clerical Amendment.--The table of contents of the Homeland 
Security Act of 2002 is amended by amending the item relating to 
section 227 to read as follows:

        ``Sec. 227. Cyber incident response plans.''.

SEC. 7. SECURITY AND RESILIENCY OF PUBLIC SAFETY COMMUNICATIONS; 
                    CYBERSECURITY AWARENESS CAMPAIGN.

  (a) In General.--Subtitle C of title II of the Homeland Security Act 
of 2002 (6 U.S.C. 141 et seq.) is amended by adding at the end the 
following new sections:

``SEC. 230. SECURITY AND RESILIENCY OF PUBLIC SAFETY COMMUNICATIONS.

  ``The National Cybersecurity and Communications Integration Center, 
in coordination with the Office of Emergency Communications of the 
Department, shall assess and evaluate consequence, vulnerability, and 
threat information regarding cyber incidents to public safety 
communications to help facilitate continuous improvements to the 
security and resiliency of such communications.

``SEC. 231. CYBERSECURITY AWARENESS CAMPAIGN.

  ``(a) In General.--The Under Secretary for Cybersecurity and 
Infrastructure Protection shall develop and implement an ongoing and 
comprehensive cybersecurity awareness campaign regarding cybersecurity 
risks and voluntary best practices for mitigating and responding to 
such risks. Such campaign shall, at a minimum, publish and disseminate, 
on an ongoing basis, the following:
          ``(1) Public service announcements targeted at improving 
        awareness among State, local, and tribal governments, the 
        private sector, academia, and stakeholders in specific 
        audiences, including the elderly, students, small businesses, 
        members of the Armed Forces, and veterans.
          ``(2) Vendor and technology-neutral voluntary best practices 
        information.
  ``(b) Consultation.--The Under Secretary for Cybersecurity and 
Infrastructure Protection shall consult with a wide range of 
stakeholders in government, industry, academia, and the non-profit 
community in carrying out this section.''.
  (b) Clerical Amendment.--The table of contents of the Homeland 
Security Act of 2002 is amended by inserting after the item relating to 
section 226 (relating to cybersecurity recruitment and retention) the 
following new items:

``Sec. 230. Security and resiliency of public safety communications.
``Sec. 231. Cybersecurity awareness campaign.''.

SEC. 8. CRITICAL INFRASTRUCTURE PROTECTION RESEARCH AND DEVELOPMENT.

  (a) Strategic Plan; Public-private Consortiums.--Title III of the 
Homeland Security Act of 2002 (6 U.S.C. 181 et seq.) is amended by 
adding at the end the following new section:

``SEC. 318. RESEARCH AND DEVELOPMENT STRATEGY FOR CRITICAL 
                    INFRASTRUCTURE PROTECTION.

  ``(a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary, acting through the Under 
Secretary for Science and Technology, shall submit to Congress a 
strategic plan to guide the overall direction of Federal physical 
security and cybersecurity technology research and development efforts 
for protecting critical infrastructure, including against all threats. 
Such plan shall be updated and submitted to Congress every two years.
  ``(b) Contents of Plan.--The strategic plan, including biennial 
updates, required under subsection (a) shall include the following:
          ``(1) An identification of critical infrastructure security 
        risks and any associated security technology gaps, that are 
        developed following--
                  ``(A) consultation with stakeholders, including 
                critical infrastructure Sector Coordinating Councils; 
                and
                  ``(B) performance by the Department of a risk and gap 
                analysis that considers information received in such 
                consultations.
          ``(2) A set of critical infrastructure security technology 
        needs that--
                  ``(A) is prioritized based on the risks and gaps 
                identified under paragraph (1);
                  ``(B) emphasizes research and development of 
                technologies that need to be accelerated due to rapidly 
                evolving threats or rapidly advancing infrastructure 
                technology; and
                  ``(C) includes research, development, and acquisition 
                roadmaps with clearly defined objectives, goals, and 
                measures.
          ``(3) An identification of laboratories, facilities, 
        modeling, and simulation capabilities that will be required to 
        support the research, development, demonstration, testing, 
        evaluation, and acquisition of the security technologies 
        described in paragraph (2).
          ``(4) An identification of current and planned programmatic 
        initiatives for fostering the rapid advancement and deployment 
        of security technologies for critical infrastructure 
        protection, including a consideration of opportunities for 
        public-private partnerships, intragovernment collaboration, 
        university centers of excellence, and national laboratory 
        technology transfer.
          ``(5) A description of progress made with respect to each 
        critical infrastructure security risk, associated security 
        technology gap, and critical infrastructure technology need 
        identified in the preceding strategic plan required under 
        subsection (a).
  ``(c) Coordination.--In carrying out this section, the Under 
Secretary for Science and Technology shall coordinate with the Under 
Secretary for the National Protection and Programs Directorate.
  ``(d) Consultation.--In carrying out this section, the Under 
Secretary for Science and Technology shall consult with--
          ``(1) critical infrastructure Sector Coordinating Councils;
          ``(2) to the extent practicable, subject matter experts on 
        critical infrastructure protection from universities, colleges, 
        national laboratories, and private industry;
          ``(3) the heads of other relevant Federal departments and 
        agencies that conduct research and development relating to 
        critical infrastructure protection; and
          ``(4) State, local, and tribal governments, as 
        appropriate.''.
  (b) Clerical Amendment.--The table of contents of the Homeland 
Security Act of 2002 is amended by inserting after the item relating to 
section 317 the following new item:

``Sec. 318. Research and development strategy for critical 
infrastructure protection.''.

SEC. 9. REPORT ON REDUCING CYBERSECURITY RISKS IN DHS DATA CENTERS.

  Not later than one year after the date of the enactment of this Act, 
the Secretary of Homeland Security shall submit to the Committee on 
Homeland Security of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate a report on 
the feasibility of the Department of Homeland Security creating an 
environment for the reduction in cybersecurity risks in Department data 
centers, including by increasing compartmentalization between systems, 
and providing a mix of security controls between such compartments.

SEC. 10. ASSESSMENT.

  Not later than two years after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Committee on Homeland Security of the House of Representatives and the 
Committee on Homeland Security and Governmental Affairs of the Senate a 
report that contains an assessment of the implementation by the 
Secretary of Homeland Security of this Act and the amendments made by 
this Act and, to the extent practicable, findings regarding increases 
in the sharing of cyber threat indicators, defensive measures, and 
information relating to cybersecurity risks and incidents at the 
National Cybersecurity and Communications Integration Center and 
throughout the United States.

SEC. 11. CONSULTATION.

  The Under Secretary for Cybersecurity and Infrastructure Protection 
shall produce a report on the feasibility of creating a risk-informed 
prioritization plan should multiple critical infrastructures experience 
cyber incidents simultaneously.

SEC. 12. TECHNICAL ASSISTANCE.

  The Inspector General of the Department of Homeland Security shall 
review the operations of the United States Computer Emergency Readiness 
Team (US-CERT) and the Industrial Control Systems Cyber Emergency 
Response Team (ICS-CERT) to assess the capacity to provide technical 
assistance to non-Federal entities and to adequately respond to 
potential increases in requests for technical assistance.

SEC. 13. PROHIBITION ON NEW REGULATORY AUTHORITY.

  Nothing in this Act or the amendments made by this Act may be 
construed to grant the Secretary of Homeland Security any authority to 
promulgate regulations or set standards relating to the cybersecurity 
of non-Federal entities, not including State, local, and tribal 
governments, that was not in effect on the day before the date of the 
enactment of this Act.

SEC. 14. SUNSET.

  Any requirements for reports required by this Act or the amendments 
made by this Act shall terminate on the date that is seven years after 
the date of the enactment of this Act.

SEC. 15. PROHIBITION ON NEW FUNDING.

  No funds are authorized to be appropriated to carry out this Act and 
the amendments made by this Act. This Act and such amendments shall be 
carried out using amounts appropriated or otherwise made available for 
such purposes.

                          Purpose and Summary

    The purpose of H.R. 1731 is to amend the Homeland Security 
Act of 2002 to enhance multi-directional sharing of information 
related to cybersecurity risks, while strengthening privacy and 
civil liberties protections, in order to help secure the 
nation's cyber networks and critical infrastructure against 
attacks.

                  Background and Need for Legislation

    Despite the growing acknowledgement and understanding of 
the threat, the U.S. economy and private citizens continue to 
sustain damage from cyber attacks. The destructive attack on 
Sony Pictures attributed to the Democratic People's Republic of 
Korea, and breaches at health insurance providers Anthem and 
Blue Cross, which compromised sensitive medical records of 
millions of Americans, are the latest and most prominent 
examples of intrusions that occur daily, targeting critical 
infrastructure and business, and victimizing private citizens.
    The Department of Homeland Security (Department) estimates 
that it received nearly 100,000 cyber incident reports, 
detected 64,000 major vulnerabilities, issued nearly 12,000 
alerts or warnings, and responded to 115 major cyber incidents 
last year alone. It is important to note that these numbers 
only capture the information reported to the Department. It is 
fair to say these statistics under-represent the full scope of 
cyber attacks in the U.S. Moreover, they do not account for 
threat reporting to other Federal agencies, or incidents that 
went unreported by the private sector and the public. Still, 
these numbers provide a powerful illustration of the malicious 
nature and the persistence of the threats to America's public 
and private networks, further demonstrating why legislation to 
help enhance our awareness of the threat through multi-
directional information sharing is urgently needed.
    At a summit on cybersecurity convened at Stanford 
University on February 13, 2015, President Obama said that 
cyberattacks are one of the Nation's most pressing national 
security, economic and safety issues. He remarked that they 
are, ``hurting American companies and costing American jobs.'' 
In his speech, the President said that ``there is only one way 
to defend America from these cyber threats, and that is through 
government and industry working together, sharing information 
as true partners.''
    While the President's Executive Order ``Promoting Private 
Sector Cybersecurity Information Sharing'' was a positive step 
forward, focusing attention on the need for action, Mastercard 
Chief Executive Officer Ajay Banga rightly concluded, ``We need 
a real legislative solution. An executive action can only take 
you so far.''\1\ Mr. Banga also expressed his support for 
information sharing commenting, ``Rather than fight this in 
individualized groups, there's some merit in joining hands and 
doing it together.''\2\ This statement aligns with the goals 
industry has articulated to the Committee while drafting this 
legislation.
---------------------------------------------------------------------------
    \1\ Katie Zezima, ``Obama Signs Executive Order on Sharing 
Cybersecurity Threat Information'', Washington Post, February 12, 2015, 
available at: http://www.washingtonpost.com/blogs/post-politics/wp/
2015/02/12/obama-to-sign-executive-order-on-cybersecurity-threats/
    \2\ Ibid
---------------------------------------------------------------------------
    The National Cybersecurity Protection Advancement Act of 
2015 (NCPA Act) will support the Department in its mission to 
secure cyberspace by facilitating cooperation between the 
Federal government and the private sector. While there have 
been many reasons for the lack of cyber threat information 
sharing in the past, this gap must be addressed to stop 
criminals, terrorists, and nation states from exploiting our 
Nation's sensitive intellectual property and personal data. One 
way to foster greater sharing of timely cyber threat 
information is to create a mechanism for the sharing of threat 
information with privacy protections and legal ``safe harbors'' 
in which companies can exchange technical data.
    The NCPA Act builds on the progress made in the 113th 
Congress. The National Cybersecurity Protection Act of 2014 
codified the Department's National Cybersecurity and 
Communications Integration Center (NCCIC) to facilitate multi-
directional information sharing between the Federal Government 
and the private sector. As the lead civilian interface for 
sharing cyber threat information with the government, the NCCIC 
is uniquely positioned as a sharing hub to integrate 
information from multiple sources, and use it to provide 
government agencies and the private sector with actionable 
information to recognize, prevent and mitigate harm from cyber 
attacks.
    As codified in the Homeland Security Act of 2002, the NCCIC 
is overseen by the Department's Privacy Office, which is the 
government's first statutorily established office with a 
mandate to protect civil rights and liberties. In order to 
prevent personal information from inadvertently being shared, 
the NCPA Act ensures that private information is scrubbed 
twice: first by the entity sharing the information with the 
NCCIC, and then again by the NCCIC after it is received. These 
built-in privacy controls at the Department are important 
factors that make the Department the logical choice for an 
interface to facilitate cyber information sharing and explain 
why privacy advocates have expressed support for the NCCIC's 
role as the lead civilian information-sharing portal.
    The NCPA Act authorizes entities to engage in the voluntary 
exchange of cyber threat information and to conduct network 
awareness and defensive measures on their own systems. The Act 
provides liability protections for private entities that 
conduct network awareness or voluntary shame technical cyber 
threat information with the another private entity or the 
NCCIC. Thus, the NCPA Act creates a critical ``safe harbor'' 
for private entities, encouraging their participation and 
cooperation.
    In sum, this much-needed Act will help improve the 
situational awareness of the government and the private sector 
to ensure that private networks, including critical 
infrastructure networks, remain reliable and resilient, thereby 
enhancing the Nation's economic security and safety of the 
American public.

                                Hearings

    No hearings were held on H.R. 1731. However, the Committee 
held the following oversight hearings.
    On February 12, 2015, the Subcommittee on Cybersecurity, 
Infrastructure Protection, and Security Technologies held a 
hearing entitled ``Emerging Threats and Technologies to Protect 
the Homeland.'' The Subcommittee received testimony from Mr. 
Andy Ozment, Assistant Secretary, Office of Cybersecurity and 
Communications, National Protection and Programs Directorate, 
U.S. Department of Homeland Security; Dr. Huban Gowadia, 
Director, Domestic Nuclear Detection Office, U.S. Department of 
Homeland Security; Mr. Joseph Martin, Acting Director, Homeland 
Security Enterprise and First Responders Group, Science and 
Technology Directorate, U.S. Department of Homeland Security; 
Mr. William Noonan, Deputy Special Agent in Charge, Criminal 
Investigative Division, Cyber Operations Branch, United States 
Secret Service, U.S. Department of Homeland Security; and Mr. 
William Painter, Analyst, Government and Finance Division, 
Congressional Research Service, Library of Congress.
    On February 25, 2015, the Committee held a hearing entitled 
``Examining the President's Cybersecurity Information Sharing 
Proposal.'' The Committee received testimony from Hon. Suzanne 
Spaulding, Under Secretary, National Protection and Programs 
Directorate, U.S. Department of Homeland Security; Dr. Phyllis 
Schneck, Deputy Under Secretary, Cybersecurity and 
Communications, National Protection and Programs Directorate, 
U.S. Department of Homeland Security; and Dr. Eric Fischer, 
Senior Specialist, Science and Technology, Congressional 
Research Service, Library of Congress.
    On March 4, 2015, the Subcommittee on Cybersecurity, 
Infrastructure Protection, and Security Technologies held a 
hearing entitled ``Industry Perspectives on the President's 
Cybersecurity Information Sharing Proposal.'' The Subcommittee 
received testimony from Mr. Matthew J. Eggers, Senior Director, 
National Security and Emergency Preparedness, U.S. Chamber of 
Commerce; Ms. Mary Ellen Callahan, Jenner & Block and the 
Former Chief Privacy Officer, U.S. Department of Homeland 
Security; Mr. Gregory T. Garcia, Executive Director, Financial 
Services Sector Coordinating Council; and Dr. Martin Libicki, 
The RAND Corporation.

                        Committee Consideration

    The Committee met on April 14, 2015, to consider H.R. 1731, 
and ordered the measure to be reported to the House with a 
favorable recommendation, as amended, by voice vote. The 
Committee took the following actions:
    The Committee agreed to H.R. 1731, amended, by voice vote.
    The following amendments were offered:

 An amendment offered by Mr. Rogers of Alabama (#1) was AGREED 
TO by voice vote.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, in the proposed subsection (i)(3), add 
at the end a new Subparagraph entitled ``(E) Coordinated Vulnerability 
Disclosure.''

 An amendment offered by Mr. Thompson of Mississippi (#2) was 
AGREED TO by voice vote.
     Redesignate section 8 as section 9.
     Insert after section 7 a new section entitled ``Sec. 8. 
Assessment.''

 An amendment offered by Mr. Thompson of Mississippi (#3) was 
NOT AGREED TO by a recorded vote of 10 yeas and 15 nays (Roll 
Call Vote No. 12).
     Redesignate section 8 as section 9.
     Insert after section 7 a new section entitled ``Sec. 8. Sunset.''

 An amendment offered by Mr. Richmond (#4) was NOT AGREED TO by 
a recorded vote of 11 yeas and 16 nays (Roll Call Vote No. 13).
     In section 3 of the bill, in the proposed subsection (i) of the 
second section 226 of the Homeland Security Act of 2002, insert a new 
paragraph entitled ``(8) Liability Exemptions.''

 An amendment offered by Mr. Richmond (#5) was NOT AGREED TO by 
a recorded vote of 12 yeas and 17 nays (Roll Call Vote No. 14).
     In section 3 of the bill, in the proposed subsection (i)(8) of the 
second section 226 of the Homeland Security Act of 2002, strike ``or in 
good faith fails to act based on such sharing,''.
     In section 3 of the bill, in the proposed subsection (i)(8) of the 
second section 226 of the Homeland Security Act of 2002, add at the end 
the a new subparagraph entitled ``(E) Rule of Construction.''

 An amendment offered by Mr. Richmond (#6) was AGREED TO by 
voice vote,
     Page 11, line 19, strike ``and''.
     Page 11, line 20, strike ``(iv)'' and insert ``(v)''.
     Page 11, beginning line 20, insert the following:
       (iv) in subparagraph (F), by striking ``and'' at the end;
     Page 11, line 23, insert ``and'' after the semicolon.
     Page 11, beginning line 24, insert the following:
       (vi) by adding at the end the following:
       ``(H) the Center ensures that it shares information relating to 
cybersecurity risks and incidents with small and medium-sized 
businesses, as appropriate;''.

 An amendment offered by Mr. Richmond (#7) was NOT AGREED TO by 
a recorded vote of 12 yeas and 17 nays (Roll Call Vote No. 15).
     In section 3 of the bill, in the proposed Subsection (i)(9)(C) of 
the second section 226 of the Homeland Security Act of 2002, insert 
``the discovery of'' before ``the date of the violation''.

 An amendment offered by Mr. Perry (#8) was AGREED TO by voice 
vote.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, add at the end a new clause entitled 
``(j) Direct Reporting.''

 An amendment offered by Mr. Katko (#9) was AGREED TO by voice 
vote,
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, add at the end a new clause entitled 
``(j) Additional Responsibilities.''

 An en bloc amendment offered by Mr. Keating (#10) was AGREED 
TO by voice vote.
     Consisting of the following amendments:

     An amendment : Redesignate section 8 as section 9.
     Insert after section 7 a new section entitled ``Sec. 8. Technical 
Assistance.''

     An amendment : In section 3(4) of the bill, amending the second 
section 226 of the Homeland Security Act of 2002, add at the end a new 
clause entitled ``(j) Reports on International Cooperation.

 An en bloc amendment offered by Ms. McSally (#11) was AGREED 
TO by voice vote.
     Consisting of the following amendments:

     An amendment: In section 3 of the bill, amending the second 
section 226 of the Homeland Security Act of 2002, in subsection (c), in 
the proposed paragraph (9), insert ``and with State and major urban 
area fusion centers, as appropriate'' before the semicolon at the end.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, in subsection (c), in the proposed 
paragraph (10), strike ``and'' at the end.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, in subsection (c), in the proposed 
paragraph (11), strike the period at the end and insert a semicolon.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, in subsection (c), add at the end the 
following:
     ``(12) participating, as appropriate, in exercises run by the 
Department's National Exercise Program; and
     ``(13) assessing and evaluating consequence, vulnerability, and 
threat information regarding cyber incidents in coordination with the 
Office of Emergency Communications of the Department to help facilitate 
continuous improvements to the security and resiliency of public safety 
communications.''

     An amendment: Redesignate section 8 as section 9.
     Insert after section 7 a new section entitled ``Sec. 8. Cyber 
Incident Response Plans.''

 An amendment offered by Mrs. Watson Coleman (#12) was AGREED 
TO by voice vote.
     Redesignate section 8 as section 9.
     Insert after section 7 a new section entitled ``Sec. 8. 
Cybersecurity Awareness Campaign.''

 An en bloc amendment offered by Ms. Jackson Lee (#13) was 
AGREED TO by voice vote.
     Consisting of the following amendments:

     An amendment: Redesignate section 8 as section 9.Insert after 
section 7 a new section entitled ``Sec. 8. Consultation.''

     An amendment: Page 10, line 16, after ``defensive measures: insert 
``, analysis''.

     An amendment: In section 3 of the bill, amending the second 
section 226 of the Homeland Security Act of 2002, in the proposed 
subsection (i)(6)(A), add at the end a new clause entitled ``(iv) 
Consultation.''

     An amendment: Page 11, line 19, insert ``, and by striking `and' 
at the end'' before the semicolon.
     Page 11, line 23, insert ``, by inserting `and' after the 
semicolon at the end'' before the semicolon.
     Page 11, beginning line 24, insert the following:
     (V) by adding at the end the following new subparagraph: ``(H) an 
agency contact for nongovernment entities;''.

 An amendment offered by Mr. Ratcliffe (#14) was AGREED TO by 
voice vote.
     In section 3 of the bill, amending the second section of 226 of 
the Homeland Security Act of 2002, in the proposed subsection (i)(8(A), 
strike ``in good faith''.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, in the proposed subsection (i)(8)(B), 
strike ``in good faith'' each place it appears.

 An amendment offered by Mr. Ratcliffe (#15) was AGREED TO by 
voice vote.
     In section 2 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, in the proposed subsection (i)(7)(B)(i), 
in subclause (III), strike ``and'' at the end.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, in the proposed subsection (i)(7)(B)(i), 
in subclause (IV) strike the period at the end and insert ``: and''.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, in the proposed subsection (i)(7)(B)(i), 
add at the end the following;
     ``(V) may not be used to engage in surveillance or other 
collection activities for the purpose of tracking an individual's 
personally identifiable information.''

 An amendment offered by Mr. Ratcliffe (#16) was AGREED TO by 
voice vote.
     Redesignate section 8 as section 9.
     Insert after section 7 a new section entitled ``Sec. 8. Critical 
Infrastructure Protection Research and Development.''

 An amendment offered by Mr. Payne (#17) was AGREED TO by voice 
vote.
     In section 3 of the bill, amending the second section 226 of the 
Homeland Security Act of 2002, add at the end a new clause entitled 
``(j) Outreach.''

 An amendment offered by Mr. Hurd of Texas (#18) was AGREED TO 
by voice vote.
     Page 9, line 14, strike ``(I) and insert ``(J)''.
     Page 11, line 7, strike ``and''.
     Page 11, beginning line 8, insert the following:
       ``(I) an entity that coordinates with small and medium sized 
businesses; and''.

 An en bloc amendment offered by Mr. Langevin (#19); was AGREED 
TO by voice vote.
     Consisting of the following amendments:

     An amendment: in section 3 of the bill, amending the second 
section 226 of the Homeland Security Act of 2002, in the proposed 
subsection (i)(1)(A), in the third sentence, strike ``and 
intentionally''.

     An amendment: In section 3(4) of the bill, amending the second 
section 226 of the Homeland Security Act of 2002, amend the proposed 
subsection (g)(1) with a new subsection entitled (1) In General.''

 An amendment offered by Mr, Loudermilk (#20) was AGREED TO by 
voice vote.
     Redesignate section 8 as section 9.
     Insert after section 7 a new section entitled ``Sec. 8. Sunset.''

                            Committee Votes

    Clause 3(b) of Rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    An amendment offered by Mr. Thompson of Mississippi (#3) 
was NOT AGREED TO, by a recorded vote of 10 yeas and 15 nays 
(Roll Call Vote No. 12). The vote was as follows:

?

 
COMMITTEE ON HOMELAND SECURITY
ROLL CALL NO. 12
H.R. 1731
 

----------------------------------------------------------------------------------------------------------------
                Representative                  Yea    Nay               Representative              Yea    Nay
----------------------------------------------------------------------------------------------------------------
Mr. McCaul, P      Chair.....................            X   Mr. Thompson of Mississippi, P            X
                                                              Ranking Member.
Mr. Smith of Texas...........................                Ms. Loretta Sanchez of California....
Mr. King of New York.........................            X   Ms. Jackson Lee......................     X
Mr. Rogers of Alabama........................            X   Mr. Langevin.........................     X
Mrs. Miller of Michigan......................            X   Mr. Higgins..........................     X
Mr. Duncan of South Carolina.................                Mr. Richmond.........................     X
Mr. Marino...................................                Mr. Keating..........................
Mr. Meehan...................................            X   Mr. Payne............................     X
Mr. Barletta.................................            X   Mr. Vela.............................     X
Mr. Perry....................................            X   Mrs. Watson Coleman..................     X
Mr. Clawson of Florida.......................            X   Miss Rice............................     X
Mr. Katko....................................            X   Mrs. Torres..........................     X
Mr. Hurd of Texas............................            X
Mr. Carter of Georgia........................            X
Mr. Walker...................................            X
Mr. Loudermilk...............................            X
Ms. McSally..................................            X
Mr. Ratcliffe................................            X
                                                                                                   -------------
                                                             Vote Total:                              10     15
----------------------------------------------------------------------------------------------------------------

    An amendment offered by Mr. Richmond (#4) was NOT AGREED 
TO, by a recorded vote of 11 yeas and 16 nays (Roll Call Vote 
No. 13). The vote was as follows:

?

 
COMMITTEE ON HOMELAND SECURITY
ROLL CALL NO. 13
H.R. 1731
 
 

----------------------------------------------------------------------------------------------------------------
                Representative                  Yea    Nay               Representative              Yea    Nay
----------------------------------------------------------------------------------------------------------------
Mr. McCaul, Chair............................            X   Mr. Thompson of Mississippi, Ranking      X
                                                              Member.
Mr. Smith of Texas...........................            X   Ms. Loretta Sanchez of California....
Mr. King of New York.........................            X   Ms. Jackson Lee......................     X
Mr. Rogers of Alabama........................            X   Mr. Langevin.........................     X
Mrs. Miller of Michigan......................            X   Mr. Higgins..........................     X
Mr. Duncan of South Carolina.................                Mr. Richmond.........................     X
Mr. Marino...................................                Mr. Keating..........................     X
Mr. Meehan...................................            X   Mr. Payne............................     X
Mr. Barletta.................................            X   Mr. Vela.............................     X
Mr. Perry....................................            X   Mrs. Watson Coleman..................     X
Mr. Clawson of Florida.......................            X   Miss Rice............................     X
Mr. Katko....................................            X   Mrs. Torres..........................     X
Mr. Hurd of Texas............................            X
Mr. Carter of Georgia........................            X
Mr. Walker...................................            X
Mr. Loudermilk...............................            X
Ms. McSally..................................            X
Mr. Ratcliffe................................            X
                                                                                                   -------------
                                                             Vote Total:                              11     16
----------------------------------------------------------------------------------------------------------------

    An amendment offered by Mr. Richmond (#5) was NOT AGREED 
TO, by a recorded vote of 12 yeas and 17 nays (Roll Call Vote 
No. 14). The vote was as follows:

?

 
COMMITTEE ON HOMELAND SECURITY
ROLL CALL NO. 14
H.R. 1731
 
 

----------------------------------------------------------------------------------------------------------------
                Representative                  Yea    Nay               Representative              Yea    Nay
----------------------------------------------------------------------------------------------------------------
Mr. McCaul, Chair............................            X   Mr. Thompson of Mississippi, Ranking      X
                                                              Member.
Mr. Smith of Texas...........................            X   Ms. Loretta Sanchez of California....     X
Mr. King of New York.........................            X   Ms. Jackson Lee......................     X
Mr. Rogers of Alabama........................            X   Mr. Langevin.........................     X
Mrs. Miller of Michigan......................            X   Mr. Higgins..........................     X
Mr. Duncan of South Carolina.................                Mr. Richmond.........................     X
Mr. Marino...................................            X   Mr. Keating..........................     X
Mr. Meehan...................................            X   Mr. Payne............................     X
Mr. Barletta.................................            X   Mr. Vela.............................     X
Mr. Perry....................................            X   Mrs. Watson Coleman..................     X
Mr. Clawson of Florida.......................            X   Miss Rice............................     X
Mr. Katko....................................            X   Mrs. Torres..........................     X
Mr. Hurd of Texas............................            X
Mr. Carter of Georgia........................            X
Mr. Walker...................................            X
Mr. Loudermilk...............................            X
Ms. McSally..................................            X
Mr. Ratcliffe................................            X
                                                                                                   -------------
                                                             Vote Total:                              12     17
----------------------------------------------------------------------------------------------------------------

    An amendment offered by Mr. Richmond (#7) was NOT AGREED 
TO, by a recorded vote of 12 yeas and 17 nays (Roll Call Vote 
No. 15). The vote was as follows:

?

 
COMMITTEE ON HOMELAND SECURITY
ROLL CALL NO. 15
H.R. 1731
 
 

----------------------------------------------------------------------------------------------------------------
                Representative                  Yea    Nay               Representative              Yea    Nay
----------------------------------------------------------------------------------------------------------------
Mr. McCaul, Chair............................            X   Mr. Thompson of Mississippi, Ranking      X
                                                              Member.
Mr. Smith of Texas...........................            X   Ms. Loretta Sanchez of California....     X
Mr. King of New York.........................            X   Ms. Jackson Lee......................     X
Mr. Rogers of Alabama........................            X   Mr. Langevin.........................     X
Mrs. Miller of Michigan......................            X   Mr. Higgins..........................     X
Mr. Duncan of South Carolina.................                Mr. Richmond.........................     X
Mr. Marino...................................            X   Mr. Keating..........................     X
Mr. Meehan...................................            X   Mr. Payne............................     X
Mr. Barletta.................................            X   Mr. Vela.............................     X
Mr. Perry....................................            X   Mrs. Watson Coleman..................     X
Mr. Clawson of Florida.......................            X   Miss Rice............................     X
Mr. Katko....................................            X   Mrs. Torres..........................     X
Mr. Hurd of Texas............................            X
Mr. Carter of Georgia........................            X
Mr. Walker...................................            X
Mr. Loudermilk...............................            X
Ms. McSally..................................            X
Mr. Ratcliffe................................            X
                                                                                                   -------------
                                                             Vote Total:                              12     17
----------------------------------------------------------------------------------------------------------------

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of Rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
1731, the National Cybersecurity Protection Advancement Act of 
2015, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.
                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 16, 2015.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1731, the National 
Cybersecurity Protection Advancement Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jason 
Wheelock.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 1731--National Cybersecurity Protection Advancement Act of 2015

    H.R. 1731 would largely codify the role of the National 
Cybersecurity and Communications Integration Center of the 
Department of Homeland Security in exchanging information about 
cyber threats with other federal agencies and nonfederal 
entities. The legislation also would require that certain 
additional procedures be followed when that information is 
shared, such as checking for and expunging personal 
information. Finally, the bill would require several reports to 
the Congress on cybersecurity information sharing. CBO 
anticipates that approximately 20 additional personnel would be 
needed to administer the new aspects of the program, prepare 
the required reports, and manage the exchange of information. 
Based on information from the Department of Homeland Security, 
the Office of Management and Budget, and other cybersecurity 
experts, CBO estimates that the requirements imposed by H.R. 
1731 would cost approximately $20 million over the 2016-2020 
period, assuming appropriation of the estimated amounts.
    H.R. 1731 would make the government liable if an agency or 
department violates privacy and civil liberty guidelines and 
restrictions on the use of information required by the bill. 
While such liability could result in additional direct 
spending, CBO does not have sufficient basis to estimate the 
type or frequency of violations or the budgetary effect that 
might occur if the legislation was enacted. Because the bill 
could affect direct spending, pay-as-you-go procedures apply. 
H.R. 1731 would not affect revenues.
    H.R. 1731 would impose intergovernmental and private-sector 
mandates, as defined in the Unfunded Mandates Reform Act 
(UMRA), by extending civil and criminal liability protection to 
cybersecurity providers and other entities that monitor, share, 
or use information on cyber threats. Doing so would prevent 
public and private entities from seeking compensation for 
damages from those protected entities for sharing or using 
cybersecurity information. The bill also would impose 
additional intergovernmental mandates on state and local 
governments by preempting disclosure and liability laws and by 
preempting any laws that restrict the cybersecurity monitoring, 
sharing, and countermeasure activities authorized by the bill. 
Because of uncertainty about the number of cases that would be 
limited and any foregone compensation that would result from 
compensatory damages that might otherwise go to private-sector 
entities, CBO cannot determine whether the costs of the mandate 
would exceed the annual thresholds established in UMRA for 
private-sector mandates ($154 million in 2015, adjusted 
annually for inflation). The amount of cybersecurity 
information shared by state, local, and tribal governments is 
much smaller than that shared by the private sector, and public 
entities are much less likely to bring lawsuits as plaintiffs 
in such cases. Consequently, CBO estimates that the aggregate 
costs of the mandates on public entities would fall below the 
threshold for intergovernmental mandates ($77 million in 2015, 
adjusted annually for inflation).
    On April 13, 2015, CBO transmitted a cost estimate for H.R. 
1560 as ordered reported by the House Permanent Select 
Committee on Intelligence on March 26, 2015, and on April 14, 
2015, CBO transmitted a cost estimate for S. 754 as reported by 
the Senate Select Committee on Intelligence on March 17, 2015. 
Both bills are similar to H.R. 1731, but each contains 
provisions not included in H.R. 1731 that would allow the 
government to use information shared by nonfederal entities in 
investigating and prosecuting certain violent crimes. In 
addition, H.R. 1560 contains a provision not included in H.R. 
1731 that would establish a National Cyber Threat Intelligence 
Integration Center. Differences in the estimated costs of these 
bills reflect differences in the legislative language.
    The CBO staff contact for this estimate is Jason Wheelock. 
The estimate was approved by Theresa Gullo, Assistant Director 
for Budget Analysis.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of Rule XIII of the Rules of the 
House of Representatives, H.R. 1731 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    H.R. 1731 seeks to enhance multi-directional sharing of 
information related to cybersecurity risks, while also 
strengthening privacy and civil liberties protections, in order 
to help secure the nation's cyber networks and critical 
infrastructure against attacks. The legislation requires a 
number of reports to Congress from the Department, the 
Department's Privacy Officer, and the Department's Office of 
Inspector General that will provide insight to Congress on the 
scope of information sharing, the NCCIC's role in facilitating 
cyber information sharing, and any privacy and civil liberties 
concerns that have been raised as a result of this effort.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of Rule XIII, the Committee finds 
that H.R. 1731 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with Rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule 
XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 1731 does 
preempt all State, local, or Tribal law that restricts or 
otherwise expressly regulates an activity that is authorized 
under this legislation with respect to a Federal civilian 
cybersecurity information sharing program.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 1731 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1.   Short Title.

    This section provides that the bill may be cited as the 
``National Cybersecurity Protection Advancement Act of 2015.''

Section 2.   National Cybersecurity and Communications Integration 
        Center.

    This section amends subsection (a) of the second section 
226 (6 U.S. Code 148) of the Homeland Security Act of 2002 by 
adding definitions of terms used in the bill, including: 
``cyber threat indicator'', ``cybersecurity purpose'', 
``defensive measure'', ``network awareness'', ``private 
entity'', ``security control'', and ``sharing''.

Section 3.   Information Sharing Structure and Process.

    This section amends subsection (a) of the second section 
226 of the Homeland Security Act of 2002 as described below.
            Amendments to the National Cybersecurity and Communications 
                    Integration Center.
    This section amends the functions of the NCCIC. It 
designates the NCCIC as the ``lead Federal civilian interface'' 
for multi-directional and cross-sector information sharing 
related to cybersecurity.
    It also adds cyber threat indicators and defensive measures 
to the types of technical threat data that the NCCIC will 
collect, analyze, and share to provide enhanced situational 
awareness to Federal, non-Federal and private entities. It 
directs the NCCIC to share information relating to 
cybersecurity risks and incidents with small and medium-sized 
businesses, as appropriate. The Committee believes that the 
NCCIC should strive to partner with small and medium-sized 
businesses for cybersecurity risks and incidents, and seeks to 
emphasize this in the legislation.
    It directs the NCCIC to promptly notify the Secretary of 
Homeland Security (the Secretary) and Congress of any 
significant violations of information sharing policies and 
procedures, and promptly notify non-Federal entities that have 
shared information that is known or determined to be in error. 
The Committee understands that certain entities have pre-
existing relationships with other Federal civilian portals 
representing their specific critical infrastructure sectors, 
and those entities will be able to maintain those relationships 
for information sharing related to cybersecurity. As the lead 
civilian interface for sharing cyber threat information with 
the Government, the NCCIC is uniquely positioned as a sharing 
hub to integrate information from multiple sources, and use the 
information to Government Agencies and the private sector with 
actionable information to recognize and stop attacks before 
harm is done.
    The Committee believes that the NCCIC should coordinate 
with other Federal civilian portals to ensure that it receives 
and shares relevant cyber threat indicators and defensive 
measures.
    This section directs the NCCIC to engage with international 
partners on cybersecurity, and expands the composition of the 
NCCIC to include an entity to collaborate with state and local 
governments; the U.S. Computer Emergency Readiness Team to 
coordinate information related to cybersecurity risks and 
incidents and provide technical assistance; the Industrial 
Control System Cyber Emergency Response Team to coordinate with 
industrial control systems owners and operators; and the 
National Coordinating Center for Communications to coordinate 
the resilience and recovery of national security emergency 
communications. The Committee recognizes that the entities 
described above play a critical role in the Department's 
ability to execute its cybersecurity mission, and seeks to 
codify their functions and statutory roles within the NCCIC in 
this section.
    H.R. 1731 amends second section 226, the provisions of 
which are described below:

(g) Rapid Automated Sharing.

    This subsection requires the Under Secretary for 
Cybersecurity and Infrastructure Protection, in coordination 
with industry and other stakeholders, to develop an automated 
capability for the timely sharing of cyber threat indicators 
and defensive measures. It also directs the NCCIC to develop 
the capability to share cyber threat indicators and defensive 
measures with each Federal Agency designated as the `Sector 
Specific Agency' (SSA) for each critical infrastructure sector 
in as close to real time as practicable. It directs the Under 
Secretary for Cybersecurity and Infrastructure Protection to 
submit a biannual report to the appropriate congressional 
committees on the progress of developing this capability. The 
Committee believes that it is critical for the Department to 
develop an automated system and supporting processes for the 
NCCIC to disseminate cyber threat indicators and defensive 
measures in a timely manner. The Committee recognizes that 
timely sharing is compatible with reasonable efforts at 
minimization, particularly if the information shared is cyber 
threat indicator information.

(h) Sector Specific Agencies

    This subsection directs the Secretary to recognize the SSA 
for each critical infrastructure sector based on the 
Department's National Infrastructure Protection Plan as of 
March 25, 2015. It directs the Secretary, in coordination with 
the heads of each SSA, to support the security and resilience 
activities of the specific sectors, provide institutional 
knowledge and expertise, and support timely sharing of 
information. The Committee believes that SSAs play a central 
role in cybersecurity information sharing within their 
respective sector and wants to ensure that the NCCIC has the 
procedures and capabilities in place to facilitate information 
sharing with each SSA.

(i) Voluntary Information Sharing Procedures

    Subsection (i) outlines the information sharing procedures 
and permits the NCCIC to enter into voluntary information 
sharing relationships with any consenting non-Federal entity 
for the sharing of cyber threat indicators and defensive 
measures for cybersecurity purposes. To prevent personal 
information from inadvertently being shared, the non-Federal 
entity sharing the information is required to remove all 
personal information unrelated to the cybersecurity risk before 
sharing with the NCCIC or other non-Federal entities. This 
subsection outlines the information sharing agreements, 
authorizations, civil liberty and information protections, and 
anti-trust exemption of these relationships.
    The Committee believes that sharing cybersecurity 
information is a voluntary decision. In order to encourage the 
sharing of cybersecurity information to secure the nation's 
cyber networks and critical infrastructure against attacks, the 
Committee believes that any non-Federal entity can voluntarily 
enter into an information sharing relationship with the NCCIC. 
This relationship is dependent on adherence to information 
protection and privacy and civil liberties protections, in 
return for receiving a legal ``safe harbor'' for appropriately 
sharing technical data about cyber threat indicators and 
defensive measures. The Committee believes technical data to 
mean the specific composition, or the ``bits and bytes,'' that 
make up cyber threat indicators and defensive measures.

(2) Agreements

    Subsection (i)(2) allows the Center to utilize standard and 
negotiated agreements as the types of agreements that non-
Federal entities may enter into with the NCCIC for the purposes 
of this Act. However, it makes clear that agreements are not 
limited to just these types, and pre-existing agreements 
between the NCCIC and the non-Federal entity will be in 
compliance with this section.
    The Committee believes that there are various ways to 
structure agreements, with the primary types being standard and 
negotiated agreements. The Department should develop a standard 
template that will inform entities on the expectations and 
requirements of sharing cybersecurity information with the 
NCCIC. It may turn out that, in some cases, standardized terms 
of use agreements will suffice. However, for those entities 
that have specific requirements, they should be able to 
negotiate with the Department on specific terms, so long as 
foundational privacy protections are maintained. Due to the 
fact information sharing under this Act is a voluntary 
activity, the Committee also recognizes that an entity may not 
feel the need to have any agreement with the NCCIC, but may 
still want to share cybersecurity information.
            (3) Information Sharing Authorization
    Subsection (i)(3) authorizes a non-Federal entity to share 
cyber threat indicators or defensive measures obtained from its 
own information system or, with written consent, from an 
information system of another Federal or non-Federal entity, 
with another non-Federal entity and the NCCIC for cybersecurity 
purposes. It requires that recipients of this information 
comply with lawful restrictions on sharing or use. It also 
requires a recipient of information from another Federal or 
non-Federal entity to comply with lawful restrictions placed on 
the information by the sharing Federal or non-Federal entity.
    This subsection also requires the Under Secretary for 
Cybersecurity and Infrastructure Protection, in coordination 
with industry and other stakeholders to develop and adhere to 
policies and procedures for coordinating vulnerability 
disclosures, to the extent practicable, with international 
standards in the information technology industry.
    The Committee believes that in order to facilitate robust 
information sharing, non-Federal entities need the right to 
place lawful restrictions on the use of the technical data they 
are sharing, and that these restrictions must be respected by 
the recipients of the information.
    This subsection also requires a non-Federal entity to take 
reasonable efforts to remove information that could be used to 
identify specific persons reasonably believed at the time of 
sharing to be unrelated to a cybersecurity threat, and 
safeguard information that can be used to identify specific 
persons from unintended disclosure and unauthorized access or 
acquisition.
    The Committee's intent in this section is to specifically 
forbid non-Federal entities from sharing data that has not had 
personal information unrelated to the cybersecurity risk 
removed by the non-Federal entity prior to sharing. 
Additionally, the NCCIC is required to review the same 
cybersecurity threat indicator or defensive measure information 
and destroy any personal information unrelated to the 
cybersecurity risk prior to sharing with any other Federal or 
non-Federal entity.
    The purpose of this legislation is to secure the nation's 
cyber networks and private citizen's sensitive digital 
information. The Committee believes that in order to ensure 
that privacy is protected when cyber security information is 
shared, and to build trust in this effort, the public must feel 
confident that companies and the government have robust 
controls in place to remove any specific personal information 
not related to the cyber attack, and safeguard it from 
unintended disclosure and unauthorized use or acquisition.
            (4) Network Awareness Authorization
    Subsection (i)(4) authorizes a non-Federal entity, not 
including a State, local, or Tribal government, to conduct 
network awareness of its own information system, or the 
information system of another non-Federal or Federal entity 
with written consent, for cybersecurity purposes.
            (5) Defensive Measure Authorization
    Subsection (i)(5) authorizes a non-Federal entity, not 
including a State, local, or Tribal government, to conduct 
network awareness defensive measure that is applied only to its 
own information system, or the information system of another 
non-Federal or Federal entity with written consent, for 
cybersecurity purposes.
    The Committee does not intend the language of the Act to 
authorize a private company to ``hack'' (knowingly access a 
protected computer without authorization, or to intentionally 
access a protected computer to cause damage) the computer of 
another entity.
    The intent is only to authorize the use of defensive 
measures--not countermeasures. This authorization does not 
allow a measure that destroys, renders unusable, or 
substantially harms an information system not belonging to that 
company without authorization.
            (6) Privacy and Civil Liberties Protections
    Subsection (i)(6) requires the Under Secretary in 
coordination with the Chief Privacy Officer and the Officer for 
Civil Rights and Civil Liberties at the Department to establish 
and annually review policies and procedures for the Department 
that govern the receipt, retention, use, and disclosure of 
cyber threat indicators and information related to 
cybersecurity risks and incidents.
    This subsection requires that certain policies and 
procedures to minimize any impact on privacy and civil 
liberties should be established consistent with the need to 
protect information systems from, and conduct mitigation of, 
cybersecurity risks and incidents in a timely manner.
    The subsection requires the Chief Privacy Officer to submit 
a report to the appropriate congressional committees, no later 
than 180 days after enactment of this Act, that describes the 
policies and procedures governing the sharing of cyber threat 
indicators and defensive measures. The subsection also requires 
the Chief Privacy Officer to monitor the implementation of 
these policies and procedures, and regularly review and update 
privacy impact assessments to ensure all relevant 
constitutional, legal, and privacy protections are being 
followed. The subsection further requires the Chief Privacy 
Officer to submit an annual report to Congress on the 
effectiveness of these policies and procedures, ensuring 
appropriate sanctions are in place for employees, agents, and 
contractors of the Department who intentionally or willfully 
conduct unauthorized activities under this section.
    Additionally, the subsection requires the Undersecretary to 
ensure that a public notice is made of the policies and 
procedures governing the sharing of cyber threat indicators and 
defensive measures.
    This subsection requires the Department's Office of the 
Inspector General (DHS OIG) to submit a report to Congress 
within two years of enactment of this Act and periodically 
thereafter that includes a review of the type of information 
shared with NCCIC, the use of any information and actions taken 
by NCCIC, and the impact, if any, of sharing of such 
information on privacy and civil liberties.
    This subsection requires that the Department's Chief 
Privacy Officer and Officer for Civil Rights and Civil 
Liberties also submit a report to Congress within two years of 
enactment of this Act that assesses the impact on privacy and 
civil liberties of the information sharing activities under 
this section. The report shall include appropriate 
recommendations to minimize or mitigate the impact of the 
sharing of cyber threat indicators and defensive measures under 
this section.
    The Committee believes that this legislation strengthens 
the NCCIC's position as the trusted partner for industry and 
the public by setting forth robust privacy protections and 
civil liberties standards. To ensure the appropriate protection 
of individual privacy and civil liberties, the Department's 
Privacy and Civil Rights and Civil Liberties Offices will 
monitor the NCCIC as it carries out its functions. The 
Committee believes that the required reports in this subsection 
will assist the Department in defining the policies and 
procedures for the sharing of cyber threat indicators and 
defensive measures with the NCCIC, and provide Congress with 
assessments on the impact to privacy and civil liberties of 
this information sharing.
    The Committee believes that privacy is further reinforced 
by requiring non-Federal entities to remove personal 
information unrelated to a cybersecurity risk or incident 
before sharing with the NCCIC or other non-Federal entities, 
and further requiring the NCCIC to destroy any personal 
information that is unrelated to the cybersecurity risk or 
incident before further sharing with other Federal entities or 
non-Federal entities.
            (7) Uses and Protection of Information
    This subsection sets forth the roles and responsibilities 
for non-Federal entities, Federal entities, and State, Tribal, 
and local governments for using and protecting information 
shared through the NCCIC or otherwise.
            Non-Federal Entities
    Subsection (i)(7) permits a non-Federal entity that shares 
cybersecurity information with the NCCIC, or another non-
Federal entity, to use, retain, or disclose those cyber threat 
indicators and defensive measures solely for cybersecurity 
purposes. It requires non-Federal entities to remove 
information that could be used to identify specific persons 
reasonably believed at the time of sharing to be unrelated to a 
cybersecurity threat and safeguard information that can be used 
to identify specific persons prior to sharing the information. 
Non-Federal entities must comply with appropriate restrictions 
placed on the subsequent disclosure or retention of cyber 
threat indicators or defensive measures by a Federal or non-
Federal entity. This subsection further stipulates that 
information shared with the NCCIC will be deemed to have been 
voluntarily shared. This subsection requires that a non-Federal 
entity implements and utilizes a security control to protect 
against unauthorized access to or acquisition of cyber threat 
indicators or defensive measures, and it prohibits the use of 
such cyber security information to gain an unfair or 
competitive advantage over any non-Federal entity.
            Federal Entities
    This subsection permits Federal entities that receive cyber 
threat indicators or defensive measures to use, retain, or 
further disclose this information solely for cybersecurity 
purposes. This subsection requires Federal entities to take 
reasonable to efforts to remove information that could be used 
to identify specific persons reasonably believed at the time of 
sharing to be unrelated to a cybersecurity threat and safeguard 
information that can be used to identify specific persons prior 
to sharing the information. This subsection further stipulates 
that information shared with the NCCIC will be deemed to have 
been voluntarily shared. This subsection requires that a 
Federal entity implements and utilizes a security control to 
protect against unauthorized access to or acquisition of cyber 
threat indicators or defensive measures.
    The cybersecurity information is exempt from disclosure 
under the Freedom of Information Act (FOIA), 5 U.S. Code 552, 
or non-Federal disclosure laws and withheld, without 
discretion, from the public under 5 U.S. Code 552(3)B). This 
subsection allows a Federal or non-Federal entity to designate 
information shared with the Center as commercial, financial, 
and proprietary information. The information shared is 
prohibited from being used for regulatory purposes, and may not 
constitute a waiver of applicable privileges or protections 
provided by law, including trade secret protections. The 
information is also not subject to judicial doctrine or rules 
of federal entities regarding ex parte communications.
    The Committee believes that in order to encourage entities, 
particularly businesses, to voluntarily share cybersecurity 
information with the NCCIC, the information shared must be 
exempt from disclosure laws including FOIA, and be prohibited 
from being used for regulatory purposes. The Committee believes 
that it is also within the right of the entity sharing the 
information to put certain restrictions on how the information 
maybe used or further shared, as articulated in the 
legislation.
    The Committee intends this to be a private sector-driven 
program. The government itself will not conduct any network 
monitoring. The NCCIC is simply a repository, a hub, for threat 
information that is identified by private entities and 
voluntarily shared with the government.
    The sole purpose of the activities codified in this 
legislation is to prevent cyber attacks--e.g. the stealing of 
credit card numbers; the shutting down of infrastructure, like 
a power grid; the shutting down of a network--not to collect 
evidence to prosecute crimes.
            State, Tribal, or Local Government
    This subsection permits State, Tribal or local governments 
that receive cyber threat indicators or defensive measures to 
use, retain, or further disclose this information solely for 
cybersecurity purposes. It requires prior to sharing that 
reasonable efforts be made to remove information that could be 
used to identify specific persons reasonably believed to be 
unrelated to a cybersecurity threat and safeguard information 
that can be used to identify specific persons prior to sharing 
the information. This subsection allows a Federal or non-
Federal entity to designate information shared with the Center 
as commercial, financial, and proprietary information. This 
subsection further stipulates that information shared with the 
NCCIC will be deemed to have been voluntarily shared. This 
subsection requires that a State, Tribal or local government 
implement and utilize security controls to protect against 
unauthorized access to or acquisition of cyber threat 
indicators or defensive measures. This subsection states that 
cybersecurity information is exempt from disclosure under 
State, Tribal or local disclosure laws, and may not be used to 
regulate the lawful activity of a non-Federal entity.
    The Committee believes it is important to re-emphasize that 
prior to sharing entities remove information that can be used 
to identity specific persons and is reasonably believed at the 
time of sharing to be unrelated to a cybersecurity risk or 
incident. Cybersecurity information that is shared with the 
NCCIC would then be reviewed again prior to the NCCIC sharing 
it with another entity, to ensure that personal information is 
removed.
    In this section, the Committee expressly states that cyber 
threat indicators and defensive measures may not be used to 
track individuals for purposes of surveillance. Again, the 
purpose of this legislation is to help prevent and respond to 
cyber attacks--not to surveil individuals, or collect evidence 
to prosecute crimes.
            (8) Liability Exemptions
    Subsection (i)(8) provides that no cause of action shall 
lie or be maintained in any court, and such action shall be 
promptly dismissed, against any non-Federal entity that 
conducts network awareness or shares cyber threat indicators or 
defensive measures, for cybersecurity purposes, in accordance 
with paragraphs (4) and (3), respectively, and the other 
provisions in section 3 of the bill. This subsection also 
provides liability protection for a non-Federal entity that 
fails to act upon shared cyber threat indicators or defensive 
measures.
    However, non-Federal entities do not receive liability 
protection for egregious actions that rise to the level of 
willful misconduct. Willful misconduct is defined in the 
subsection as an act or omission that is taken intentionally to 
achieve a wrongful purpose, knowingly without legal or factual 
justification, and in disregard of a known or obvious risk that 
is so great as to make it highly probable that the harm will 
outweigh the benefit. If a plaintiff files suit claiming 
willful misconduct by a non-Federal entity, the plaintiff must 
prove willful misconduct by clear and convincing evidence and 
establish that the non-Federal entity's willful misconduct 
proximately caused the plaintiff's injury.
    As used in this paragraph, the term ``non-Federal entity'' 
does not include a State, local, or tribal government.
    This language was developed in coordination with the House 
Judiciary Committee, which provided standard language for 
liability exemptions for all House-generated cybersecurity 
related information sharing bills.
            (9) Federal Government Liability for Violations of 
                    Restrictions on the Use and Protection of 
                    Voluntarily Shared Information
    Subsection (i)(9) provides a clear path for injured persons 
to sue a Federal government department or agency for an 
intentional or willful violation of the uses and protections of 
voluntarily shared cyber threat indicators, defensive measures, 
or cybersecurity information as laid out in subsections (i)(3), 
(i)6), and (i)(7)(B), and any other applicable provisions of 
section 3. This subsection further provides for statutory 
damages for such a violation, venue selection for an action 
under this provision, and the statute of limitations for 
bringing such an action.
            (10) Anti-Trust Exemption
    This subsection exempts non-Federal entities from 
violations of U.S. antitrust law for sharing cybersecurity 
information, or providing assistance for cybersecurity 
purposes, provided that the action is taken to assist with 
preventing, investigating, or mitigating a cybersecurity risk 
or incident. This subsection makes it clear that the exemption 
cannot be utilized for monopolistic activities such as price-
fixing, or sharing of price or cost information, customer 
lists, or information regarding future planning.
            (11) Construction and Preemption
    Subsection (i)(11) contains a number of construction and 
preemption provisions that address the scope of the Act. 
Specifically, the provisions address otherwise lawful 
disclosures and preserve whistleblower protections. Nothing in 
the Act should be construed to affect any requirements under 
other provisions of law for non-Federal entities providing 
information to Federal entities. The provisions preserve 
existing contractual obligations and rights. They also prohibit 
the Federal government from requiring non-Federal entities to 
provide it with cybersecurity related information as a 
condition for the award of a grant, contract or purchase 
agreement. This subsection reiterates that any sharing of 
cybersecurity information under this legislation is purely 
voluntary, and that non-Federal entities are not subject to 
liability for choosing not to engage in such voluntary 
information sharing activities. This subsection also does not 
authorize or modify any existing Federal authority to retain 
and use cybersecurity information shared under the bill for 
purposes other than those permitted in this Act. This 
legislation also supersedes any provision of state or local law 
that may restrict or otherwise expressly regulate an activity 
authorized under this Act.

Section 4.   Information Sharing and Analysis Organizations.

    This section amends Section 212 of the Homeland Security 
Act to broaden the functions of Information Sharing and 
Analysis Organizations (ISAOs) to include cybersecurity risk 
and incident information beyond that pertaining to critical 
infrastructure. This section also adds references to the 
definitions of `cybersecurity risk' and `incident' as they 
relate to the NCCIC in the second section 226 of the Homeland 
Security Act.
    The Committee believes that ISAOs have an important role to 
play in facilitating information sharing going forward and has 
clarified their functions as defined in the Homeland Security 
Act. The Committee, on a bipartisan basis, views ISAOs, 
including ISACs as tools to expand voluntary information 
sharing.

Section 5.   Streamlining of Department of Homeland Security 
        Cybersecurity and Infrastructure Protection Organization.

    This section renames The National Protection and Programs 
Directorate of the Department of Homeland Security, the 
``Cybersecurity and Infrastructure Protection Directorate''. It 
requires the Secretary to submit a report to Congress on the 
feasibility of making the Cybersecurity and Communications 
Office an operational component of the Department. The 
Committee is pleased that this legislation elevates the role of 
the NCCIC to a direct report to the Assistant Secretary of 
Cybersecurity and Communications within the Department. The 
Committee believes this re-organization aligns with its goals 
to reduce the bureaucracy that has stifled the NCCIC's growth 
to date.
    Nothing in this section should be construed to alter the 
mission or reporting structure of the Office of Emergency 
Communications. Pursuant to 6 U.S.C. 571, the Director of the 
Office of Emergency Communications reports to the Assistant 
Secretary for Cybersecurity and Communications. The Department 
shall submit any proposed changes to this reporting structure 
to the Committee for review and approval.

Section 6.   Cyber Incident Response Plans.

    This section requires the Secretary, in coordination with 
the heads of other Federal departments and agencies to update, 
maintain, and exercise the Cyber Incident Annex to the National 
Response Framework of the Department.

Section 7.   Security and Resiliency of Public Safety Communications; 
        Cybersecurity Awareness Campaign.

    This section requires the NCCIC, in coordination with the 
Office of Emergency Communications, to assess the effects of 
cyber incidents on public safety communications.
    This section also requires the Under Secretary for 
Cybersecurity and Infrastructure Protection to develop and 
implement a cybersecurity awareness campaign regarding 
cybersecurity risks and voluntary best practices for mitigating 
and responding to cybersecurity risks.
    The Committee has observed the perceived inadequacy of the 
Department's current cybersecurity awareness campaign, STOP. 
THINK. CONNECT.TM While the Department and a 
coalition of private companies, non-profits and government 
organizations developed and coordinated this message, purported 
to help all digital citizens stay safer and more secure online, 
the Committee feels there needs to be a renewed effort to use 
and target more widely used media and public knowledge bases.
    The Committee believes that the Department should put out 
effective Public Service announcements, widely advertised web 
sites, apps, written collateral, social media, and other 
creative sources to help folks understand that many simple 
measures will improve their cyber security protection posture. 
The Committee believes that the Department should be offering 
specific information, not just slogans, and advising where to 
get information along with technology-neutral best practices, 
and working with a wide range of stakeholders to get it done. 
Such measures include simple steps like: improving password 
management; enabling firewall protection; installing anti-virus 
and anti-spam protection; installing software updates; and 
refrain from opening links and attachments from unknown and 
untrusted senders.

Section 8.   Critical Infrastructure Protection Research and 
        Development.

    This section requires the Secretary, acting through the 
Under Secretary for Science and Technology, to submit a 
strategic plan to Congress within 180 days for guiding the 
direction of Federal physical security and cybersecurity 
technology research and development efforts for protecting 
critical infrastructure against all threats.

Section 9.   Report on Reducing Cybersecurity Risks in DHS Data 
        Centers.

    This section requires the Secretary to submit a report to 
Congress on the feasibility of the Department creating an 
environment for the reduction of cybersecurity risks at the 
Department's data centers.

Section 10.   Assessment.

    This section requires the Comptroller General of the United 
States to submit a report to Congress assessing the 
implementation of this Act no later than two years after the 
date of enactment of this Act.

Section 11.   Consultation.

    This section requires the Under Secretary for Cybersecurity 
and Infrastructure Protection to produce a report on the 
feasibility of creating a risk-informed plan should multiple 
critical infrastructure sectors experience cyber incidents 
simultaneously.

Section 12.   Technical Assistance.

    This section requires the Inspector General of the 
Department to review the operations of the United States 
Computer Emergency Readiness Team (US-CERT) and the Industrial 
Control Systems Cyber Emergency Response Team (ICS-CERT) to 
assess their capacity to provide technical assistance to non-
Federal entities.

Section 13.   Prohibition on New Regulatory Authority.

    This section clarifies that nothing in this Act shall be 
construed to grant the Secretary any authority to promulgate 
regulations or set standards relating to the cybersecurity of 
non-Federal entities, not including State, local, or Tribal 
governments.

Section 14.   Sunset.

    This section requires that any reporting requirements 
required by this Act terminate seven years after the date of 
enactment of this Act.

Section 15.   Prohibition on New Funding.

    This section states that no new funds are authorized to be 
appropriated to carry out this Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Homeland 
Security Act of 2002''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

     * * * * * * *

      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

     * * * * * * *

                    Subtitle C--Information Security

     * * * * * * *
[Sec. 227. Cyber incident response plan.]
Sec. 227. Cyber incident response plans.
     * * * * * * *
Sec. 230. Security and resiliency of public safety communications.
Sec. 231. Cybersecurity awareness campaign.
     * * * * * * *

    TITLE III--SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND SECURITY

     * * * * * * *
Sec. 318. Research and development strategy for critical infrastructure 
          protection.

           *       *       *       *       *       *       *

TITLE I--DEPARTMENT OF HOMELAND SECURITY

           *       *       *       *       *       *       *

SEC. 103. OTHER OFFICERS.

  (a) Deputy Secretary; Under Secretaries.--(1) In general.--
Except as provided under paragraph (2), there are the following 
officers, appointed by the President, by and with the advice 
and consent of the Senate:
          (A) A Deputy Secretary of Homeland Security, who 
        shall be the Secretary's first assistant for purposes 
        of subchapter III of chapter 33 of title 5, United 
        States Code.
          (B) An Under Secretary for Science and Technology.
          (C) An Under Secretary for Border and Transportation 
        Security.
          (D) An Administrator of the Federal Emergency 
        Management Agency.
          (E) A Director of the Bureau of Citizenship and 
        Immigration Services.
          (F) An Under Secretary for Management.
          (G) A Director of the Office of Counternarcotics 
        Enforcement.
          [(H) An Under Secretary responsible for overseeing 
        critical infrastructure protection, cybersecurity, and 
        other related programs of the Department.]
                  (H) An Under Secretary for Cybersecurity and 
                Infrastructure Protection.
          (I) Not more than 12 Assistant Secretaries.
          (J) A General Counsel, who shall be the chief legal 
        officer of the Department.
                  (K) A Deputy Under Secretary for 
                Cybersecurity.
                  (L) A Deputy Under Secretary for 
                Infrastructure Protection.
          (2) Assistant secretaries.--If any of the Assistant 
        Secretaries referred to under paragraph (1)(I) is 
        designated to be the Assistant Secretary for Health 
        Affairs, the Assistant Secretary for Legislative 
        Affairs, or the Assistant Secretary for Public Affairs, 
        that Assistant Secretary shall be appointed by the 
        President without the advice and consent of the Senate.
          (3) Deputy under secretaries.--The Deputy Under 
        Secretaries referred to in subparagraphs (K) and (L) of 
        paragraph (1) shall be appointed by the President 
        without the advice and consent of the Senate.
  (b) Inspector General.--There shall be in the Department an 
Office of Inspector General and an Inspector General at the 
head of such office, as provided in the Inspector General Act 
of 1978 (5 U.S.C. App.).
  (c) Commandant of the Coast Guard.--To assist the Secretary 
in the performance of the Secretary's functions, there is a 
Commandant of the Coast Guard, who shall be appointed as 
provided in section 44 of title 14, United States Code, and who 
shall report directly to the Secretary. In addition to such 
duties as may be provided in this Act and as assigned to the 
Commandant by the Secretary, the duties of the Commandant shall 
include those required by section 2 of title 14, United States 
Code.
  (d) Other Officers.--To assist the Secretary in the 
performance of the Secretary's functions, there are the 
following officers, appointed by the President:
          (1) A Director of the Secret Service.
          (2) A Chief Information Officer.
          (3) An Officer for Civil Rights and Civil Liberties.
          (4) A Director for Domestic Nuclear Detection.
  (f) Performance of Specific Functions.--Subject to the 
provisions of this Act, every officer of the Department shall 
perform the functions specified by law for the official's 
office or prescribed by the Secretary.
  (e) Chief Financial Officer.--There shall be in the 
Department a Chief Financial Officer, as provided in chapter 9 
of title 31, United States Code.

TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

           *       *       *       *       *       *       *

Subtitle B--Critical Infrastructure Information

           *       *       *       *       *       *       *

SEC. 212. DEFINITIONS.

   In this subtitle:
          (1) Agency.--The term ``agency'' has the meaning 
        given it in section 551 of title 5, United States Code.
          (2) Covered federal agency.--The term ``covered 
        Federal agency'' means the Department of Homeland 
        Security.
          (3) Critical infrastructure information.--The term 
        ``critical infrastructure information'' means 
        information not customarily in the public domain and 
        related to the security of critical infrastructure or 
        protected systems--
                  (A) actual, potential, or threatened 
                interference with, attack on, compromise of, or 
                incapacitation of critical infrastructure or 
                protected systems by either physical or 
                computer-based attack or other similar conduct 
                (including the misuse of or unauthorized access 
                to all types of communications and data 
                transmission systems) that violates Federal, 
                State, or local law, harms interstate commerce 
                of the United States, or threatens public 
                health or safety;
                  (B) the ability of any critical 
                infrastructure or protected system to resist 
                such interference, compromise, or 
                incapacitation, including any planned or past 
                assessment, projection, or estimate of the 
                vulnerability of critical infrastructure or a 
                protected system, including security testing, 
                risk evaluation thereto, risk management 
                planning, or risk audit; or
                  (C) any planned or past operational problem 
                or solution regarding critical infrastructure 
                or protected systems, including repair, 
                recovery, reconstruction, insurance, or 
                continuity, to the extent it is related to such 
                interference, compromise, or incapacitation.
          (4) Critical infrastructure protection program.--The 
        term ``critical infrastructure protection program'' 
        means any component or bureau of a covered Federal 
        agency that has been designated by the President or any 
        agency head to receive critical infrastructure 
        information.
          (5) Information sharing and analysis organization.--
        The term ``Information Sharing and Analysis 
        Organization'' means any formal or informal entity or 
        collaboration created or employed by public or private 
        sector organizations, for purposes of--
                  (A) gathering and analyzing critical 
                infrastructure information information related 
                to cybersecurity risks and incidents and in 
                order to better understand security problems 
                and interdependencies [related to critical 
                infrastructure] related to cybersecurity risks, 
                incidents, critical infrastructure, and and 
                protected systems, so as to ensure the 
                availability, integrity, and reliability 
                thereof;
                  (B) communicating or [disclosing critical 
                infrastructure information] disclosing 
                cybersecurity risks, incidents, and critical 
                infrastructure information to help prevent, 
                detect, mitigate, or recover from the effects 
                of a interference, compromise, or a 
                incapacitation problem [related to critical 
                infrastructure or] related to cybersecurity 
                risks, incidents, critical infrastructure, or 
                protected systems; and
                  (C) voluntarily [disseminating critical 
                infrastructure information] disseminating 
                cybersecurity risks, incidents, and critical 
                infrastructure information to its members, 
                State, local, and Federal Governments, or any 
                other entities that may be of assistance in 
                carrying out the purposes specified in 
                subparagraphs (A) and (B).
          (6) Protected system.--The term ``protected 
        system''--
                  (A) means any service, physical or computer-
                based system, process, or procedure that 
                directly or indirectly affects the viability of 
                a facility of critical infrastructure; and
                  (B) includes any physical or computer-based 
                system, including a computer, computer system, 
                computer or communications network, or any 
                component hardware or element thereof, software 
                program, processing instructions, or 
                information or data in transmission or storage 
                therein, irrespective of the medium of 
                transmission or storage.
          (7) Voluntary.--
                  (A) In general.--The term ``voluntary'', in 
                the case of any submittal of critical 
                infrastructure information to a covered Federal 
                agency, means the submittal thereof in the 
                absence of such agency's exercise of legal 
                authority to compel access to or submission of 
                such information and may be accomplished by a 
                single entity or an Information Sharing and 
                Analysis Organization on behalf of itself or 
                its members.
                  (B) Exclusions.--The term ``voluntary''--
                          (i) in the case of any action brought 
                        under the securities laws as is defined 
                        in section 3(a)(47) of the Securities 
                        Exchange Act of 1934 (15 U.S.C. 
                        78c(a)(47))--
                                  (I) does not include 
                                information or statements 
                                contained in any documents or 
                                materials filed with the 
                                Securities and Exchange 
                                Commission, or with Federal 
                                banking regulators, pursuant to 
                                section 12(i) of the Securities 
                                Exchange Act of 1934 (15 U.S.C. 
                                781(I)); and
                                  (II) with respect to the 
                                submittal of critical 
                                infrastructure information, 
                                does not include any disclosure 
                                or writing that when made 
                                accompanied the solicitation of 
                                an offer or a sale of 
                                securities; and
                          (ii) does not include information or 
                        statements submitted or relied upon as 
                        a basis for making licensing or 
                        permitting determinations, or during 
                        regulatory proceedings.
          (8) Cybersecurity risk; incident.--The terms 
        ``cybersecurity risk'' and ``incident'' have the 
        meanings given such terms in the second section 226 
        (relating to the National Cybersecurity and 
        Communications Integration Center).

           *       *       *       *       *       *       *

Subtitle C--Information Security

           *       *       *       *       *       *       *

SEC. 226. NATIONAL CYBERSECURITY AND COMMUNICATIONS INTEGRATION CENTER.

  (a) Definitions.--In this section--
          (1) the term ``cybersecurity risk'' means threats to 
        and vulnerabilities of information or information 
        systems and any related consequences caused by or 
        resulting from unauthorized access, use, disclosure, 
        degradation, disruption, modification, or destruction 
        of information or information systems, including such 
        related consequences caused by an act of terrorism;
          (2) the term ``incident'' means an occurrence that--
                  (A) actually or imminently jeopardizes, 
                without lawful authority, the integrity, 
                confidentiality, or availability of information 
                on an information system; or
                  (B) constitutes a violation or imminent 
                threat of violation of law, security policies, 
                security procedures, or acceptable use 
                policies;
          (3) the term ``information sharing and analysis 
        organization'' has the meaning given that term in 
        section 212(5); [and]
          (4) the term ``information system'' has the meaning 
        given that term in section 3502(8) of title 44, United 
        States Code[.]; and
          (5) the term ``cyber threat indicator'' means 
        technical information that is necessary to describe or 
        identify--
                  (A) a method for probing, monitoring, 
                maintaining, or establishing network awareness 
                of an information system for the purpose of 
                discerning technical vulnerabilities of such 
                information system, if such method is known or 
                reasonably suspected of being associated with a 
                known or suspected cybersecurity risk, 
                including communications that reasonably appear 
                to be transmitted for the purpose of gathering 
                technical information related to a 
                cybersecurity risk;
                  (B) a method for defeating a technical or 
                security control of an information system;
                  (C) a technical vulnerability, including 
                anomalous technical behavior that may become a 
                vulnerability;
                  (D) a method of causing a user with 
                legitimate access to an information system or 
                information that is stored on, processed by, or 
                transiting an information system to 
                inadvertently enable the defeat of a technical 
                or operational control;
                  (E) a method for unauthorized remote 
                identification of, access to, or use of an 
                information system or information that is 
                stored on, processed by, or transiting an 
                information system that is known or reasonably 
                suspected of being associated with a known or 
                suspected cybersecurity risk;
                  (F) the actual or potential harm caused by a 
                cybersecurity risk, including a description of 
                the information exfiltrated as a result of a 
                particular cybersecurity risk;
                  (G) any other attribute of a cybersecurity 
                risk that cannot be used to identify specific 
                persons reasonably believed to be unrelated to 
                such cybersecurity risk, if disclosure of such 
                attribute is not otherwise prohibited by law; 
                or
                  (H) any combination of subparagraphs (A) 
                through (G);
          (6) the term ``cybersecurity purpose'' means the 
        purpose of protecting an information system or 
        information that is stored on, processed by, or 
        transiting an information system from a cybersecurity 
        risk or incident;
          (7)(A) except as provided in subparagraph (B), the 
        term ``defensive measure'' means an action, device, 
        procedure, signature, technique, or other measure 
        applied to an information system or information that is 
        stored on, processed by, or transiting an information 
        system that detects, prevents, or mitigates a known or 
        suspected cybersecurity risk or incident, or any 
        attribute of hardware, software, process, or procedure 
        that could enable or facilitate the defeat of a 
        security control;
          (B) such term does not include a measure that 
        destroys, renders unusable, or substantially harms an 
        information system or data on an information system not 
        belonging to--
                  (i) the non-Federal entity, not including a 
                State, local, or tribal government, operating 
                such measure; or
                  (ii) another Federal entity or non-Federal 
                entity that is authorized to provide consent 
                and has provided such consent to the non-
                Federal entity referred to in clause (i);
          (8) the term ``network awareness'' means to scan, 
        identify, acquire, monitor, log, or analyze information 
        that is stored on, processed by, or transiting an 
        information system;
          (9)(A) the term ``private entity'' means a non-
        Federal entity that is an individual or private group, 
        organization, proprietorship, partnership, trust, 
        cooperative, corporation, or other commercial or non-
        profit entity, including an officer, employee, or agent 
        thereof;
          (B) such term includes a component of a State, local, 
        or tribal government performing electric utility 
        services;
          (10) the term ``security control'' means the 
        management, operational, and technical controls used to 
        protect against an unauthorized effort to adversely 
        affect the confidentially, integrity, or availability 
        of an information system or information that is stored 
        on, processed by, or transiting an information system; 
        and
          (11) the term ``sharing'' means providing, receiving, 
        and disseminating.
  (b) Center.--There is in the Department a national 
cybersecurity and communications integration center (referred 
to in this section as the ``Center'') to carry out certain 
responsibilities of the Under Secretary appointed under section 
103(a)(1)(H).
  (c) Functions.--The cybersecurity functions of the Center 
shall include--
          (1) being [a Federal civilian interface] the lead 
        Federal civilian interface for the multi-directional 
        and cross-sector sharing of information related to 
        [cybersecurity risks,] cyber threat indicators, 
        defensive measures, cybersecurity risks, incidents, 
        analysis, and warnings for Federal and non-Federal 
        entities;
          (2) providing shared situational awareness to enable 
        real-time, integrated, and operational actions across 
        the Federal Government and non-Federal entities to 
        address cybersecurity risks and incidents to Federal 
        and non-Federal entities;
          (3) coordinating the sharing of information related 
        to [cybersecurity risks] cyber threat indicators, 
        defensive measures, cybersecurity risks, and incidents 
        across the Federal Government;
          (4) facilitating cross-sector coordination to address 
        cybersecurity risks and incidents, including 
        cybersecurity risks and incidents that may be related 
        or could have consequential impacts across multiple 
        sectors;
          (5)(A) conducting integration and analysis, including 
        cross-sector integration and analysis, of 
        [cybersecurity risks] cyber threat indicators, 
        defensive measures, cybersecurity risks, and incidents; 
        and
          (B) sharing the analysis conducted under subparagraph 
        (A) with Federal and non-Federal entities;
          (6) upon request, providing timely technical 
        assistance, risk management support, and incident 
        response capabilities to Federal and non-Federal 
        entities with respect to [cybersecurity risks] cyber 
        threat indicators, defensive measures, cybersecurity 
        risks, and incidents, which may include attribution, 
        mitigation, and remediation; [and]
          (7) providing information and recommendations on 
        security and resilience measures to Federal and non-
        Federal entities, including information and 
        recommendations to--
                  (A) facilitate information security; [and]
                  (B) strengthen information systems against 
                cybersecurity risks and incidents[.]; and
                  (C) sharing cyber threat indicators and 
                defensive measures;
          (8) engaging with international partners, in 
        consultation with other appropriate agencies, to--
                  (A) collaborate on cyber threat indicators, 
                defensive measures, and information related to 
                cybersecurity risks and incidents; and
                  (B) enhance the security and resilience of 
                global cybersecurity;
          (9) sharing cyber threat indicators, defensive 
        measures, and other information related to 
        cybersecurity risks and incidents with Federal and non-
        Federal entities, including across sectors of critical 
        infrastructure and with State and major urban area 
        fusion centers, as appropriate;
          (10) promptly notifying the Secretary and the 
        Committee on Homeland Security of the House of 
        Representatives and the Committee on Homeland Security 
        and Governmental Affairs of the Senate of any 
        significant violations of the policies and procedures 
        specified in subsection (i)(6)(A);
          (11) promptly notifying non-Federal entities that 
        have shared cyber threat indicators or defensive 
        measures that are known or determined to be in error or 
        in contravention of the requirements of this section; 
        and
          (12) participating, as appropriate, in exercises run 
        by the Department's National Exercise Program.
  (d) Composition.--
          (1) In general.--The Center shall be composed of--
                  (A) appropriate representatives of Federal 
                entities, such as--
                          (i) sector-specific agencies;
                          (ii) civilian and law enforcement 
                        agencies; and
                          (iii) elements of the intelligence 
                        community, as that term is defined 
                        under section 3(4) of the National 
                        Security Act of 1947 (50 U.S.C. 
                        3003(4));
                  (B) appropriate representatives of non-
                Federal entities, such as--
                          (i) State [and local], local, and 
                        tribal governments;
                          (ii) information sharing and analysis 
                        organizations, including information 
                        sharing and analysis centers; [and]
                          (iii) owners and operators of 
                        critical information systems;
                          (iv) private entities.
                  (C) components within the Center that carry 
                out cybersecurity and communications 
                activities;
                  (D) a designated Federal official for 
                operational coordination with and across each 
                sector; [and]
                  (E) an entity that collaborates with State 
                and local governments on cybersecurity risks 
                and incidents, and has entered into a voluntary 
                information sharing relationship with the 
                Center;
                  (F) a United States Computer Emergency 
                Readiness Team that coordinates information 
                related to cybersecurity risks and incidents, 
                proactively and collaboratively addresses 
                cybersecurity risks and incidents to the United 
                States, collaboratively responds to 
                cybersecurity risks and incidents, provides 
                technical assistance, upon request, to 
                information system owners and operators, and 
                shares cyber threat indicators, defensive 
                measures, analysis, or information related to 
                cybersecurity risks and incidents in a timely 
                manner;
                  (G) the Industrial Control System Cyber 
                Emergency Response Team that--
                          (i) coordinates with industrial 
                        control systems owners and operators;
                          (ii) provides training, upon request, 
                        to Federal entities and non-Federal 
                        entities on industrial control systems 
                        cybersecurity;
                          (iii) collaboratively addresses 
                        cybersecurity risks and incidents to 
                        industrial control systems;
                          (iv) provides technical assistance, 
                        upon request, to Federal entities and 
                        non-Federal entities relating to 
                        industrial control systems 
                        cybersecurity; and
                          (v) shares cyber threat indicators, 
                        defensive measures, or information 
                        related to cybersecurity risks and 
                        incidents of industrial control systems 
                        in a timely fashion;
                  (H) a National Coordinating Center for 
                Communications that coordinates the protection, 
                response, and recovery of emergency 
                communications;
                  (I) an entity that coordinates with small and 
                medium-sized businesses; and
                  [(E)] (J) other appropriate representatives 
                or entities, as determined by the Secretary.
          (2) Incidents.--In the event of an incident, during 
        exigent circumstances the Secretary may grant a Federal 
        or non-Federal entity immediate temporary access to the 
        Center.
  (e) Principles.--In carrying out the functions under 
subsection (c), the Center shall ensure--
          (1) to the extent practicable, that--
                  (A) timely, actionable, and relevant cyber 
                threat indicators, defensive measures, and 
                information related to cybersecurity risks, 
                incidents, and analysis is shared;
                  (B) when appropriate, cyber threat 
                indicators, defensive measures, and information 
                related to cybersecurity risks, incidents, and 
                analysis is integrated with other relevant 
                information and tailored to the specific 
                characteristics of a sector;
                  (C) activities are prioritized and conducted 
                based on the level of risk;
                  (D) industry sector-specific, academic, and 
                national laboratory expertise is sought and 
                receives appropriate consideration;
                  (E) continuous, collaborative, and inclusive 
                coordination occurs--
                          (i) across sectors; and
                          (ii) with--
                                  (I) sector coordinating 
                                councils;
                                  (II) information sharing and 
                                analysis organizations; and
                                  (III) other appropriate non-
                                Federal partners;
                  (F) as appropriate, the Center works to 
                develop and use mechanisms for sharing 
                information related to [cybersecurity risks] 
                cyber threat indicators, defensive measures, 
                cybersecurity risks, and incidents that are 
                technology-neutral, interoperable, real-time, 
                cost-effective, and resilient; [and]
                  (G) the Center works with other agencies to 
                reduce unnecessarily duplicative sharing of 
                information related to [cybersecurity risks] 
                cyber threat indicators, defensive measures, 
                cybersecurity risks, and incidents;
                  (H) the Center ensures that it shares 
                information relating to cybersecurity risks and 
                incidents with small and medium-sized 
                businesses, as appropriate; and
                  (I) the Center designates an agency contact 
                for non-Federal entities;
          (2) that information related to [cybersecurity risks] 
        cyber threat indicators, defensive measures, 
        cybersecurity risks, and incidents is appropriately 
        safeguarded against unauthorized access or disclosure; 
        and
          (3) that activities conducted by the Center comply 
        with all policies, regulations, and laws that protect 
        the privacy and civil liberties of United States 
        persons, including by working with the Chief Privacy 
        Officer appointed under section 222 to ensure that the 
        Center follows the policies and procedures specified in 
        subsection (i)(6)(A).
  (f) No Right or Benefit.--
          (1) In general.--The provision of assistance or 
        information to, and inclusion in the Center of, 
        governmental or private entities under this section 
        shall be at the sole and unreviewable discretion of the 
        Under Secretary appointed under section 103(a)(1)(H).
          (2) Certain assistance or information.--The provision 
        of certain assistance or information to, or inclusion 
        in the Center of, one governmental or private entity 
        pursuant to this section shall not create a right or 
        benefit, substantive or procedural, to similar 
        assistance or information for any other governmental or 
        private entity.
  (g) Rapid Automated Sharing.--
          (1) In general.--The Under Secretary for 
        Cybersecurity and Infrastructure Protection, in 
        coordination with industry and other stakeholders, 
        shall develop capabilities making use of existing 
        information technology industry standards and best 
        practices, as appropriate, that support and rapidly 
        advance the development, adoption, and implementation 
        of automated mechanisms for the timely sharing of cyber 
        threat indicators and defensive measures to and from 
        the Center and with each Federal agency designated as 
        the ``Sector Specific Agency'' for each critical 
        infrastructure sector in accordance with subsection 
        (h).
          (2) Biannual report.--The Under Secretary for 
        Cybersecurity and Infrastructure Protection shall 
        submit to the Committee on Homeland Security of the 
        House of Representatives and the Committee on Homeland 
        Security and Governmental Affairs of the Senate a 
        biannual report on the status and progress of the 
        development of the capability described in paragraph 
        (1). Such reports shall be required until such 
        capability is fully implemented.
  (h) Sector Specific Agencies.--The Secretary, in 
collaboration with the relevant critical infrastructure sector 
and the heads of other appropriate Federal agencies, shall 
recognize the Federal agency designated as of March 25, 2015, 
as the ``Sector Specific Agency'' for each critical 
infrastructure sector designated in the Department's National 
Infrastructure Protection Plan. If the designated Sector 
Specific Agency for a particular critical infrastructure sector 
is the Department, for purposes of this section, the Secretary 
is deemed to be the head of such Sector Specific Agency and 
shall carry out this section. The Secretary, in coordination 
with the heads of each such Sector Specific Agency, shall--
          (1) support the security and resilience actives of 
        the relevant critical infrastructure sector in 
        accordance with this section;
          (2) provide institutional knowledge, specialized 
        expertise, and technical assistance upon request to the 
        relevant critical infrastructure sector; and
          (3) support the timely sharing of cyber threat 
        indicators and defensive measures with the relevant 
        critical infrastructure sector with the Center in 
        accordance with this section.
  (i) Voluntary Information Sharing Procedures.--
          (1) Procedures.--
                  (A) In general.--The Center may enter into a 
                voluntary information sharing relationship with 
                any consenting non-Federal entity for the 
                sharing of cyber threat indicators and 
                defensive measures for cybersecurity purposes 
                in accordance with this section. Nothing in 
                this section may be construed to require any 
                non-Federal entity to enter into any such 
                information sharing relationship with the 
                Center or any other entity. The Center may 
                terminate a voluntary information sharing 
                relationship under this subsection if the 
                Center determines that the non-Federal entity 
                with which the Center has entered into such a 
                relationship has, after repeated notice, 
                repeatedly violated the terms of this 
                subsection.
                  (B) National security.--The Secretary may 
                decline to enter into a voluntary information 
                sharing relationship under this subsection if 
                the Secretary determines that such is 
                appropriate for national security.
          (2) Voluntary information sharing relationships.--A 
        voluntary information sharing relationship under this 
        subsection may be characterized as an agreement 
        described in this paragraph.
                  (A) Standard agreement.--For the use of a 
                non-Federal entity, the Center shall make 
                available a standard agreement, consistent with 
                this section, on the Department's website.
                  (B) Negotiated agreement.--At the request of 
                a non-Federal entity, and if determined 
                appropriate by the Center, the Department shall 
                negotiate a non-standard agreement, consistent 
                with this section.
                  (C) Existing agreements.--An agreement 
                between the Center and a non-Federal entity 
                that is entered into before the date of the 
                enactment of this section, or such an agreement 
                that is in effect before such date, shall be 
                deemed in compliance with the requirements of 
                this subsection, notwithstanding any other 
                provision or requirement of this subsection. An 
                agreement under this subsection shall include 
                the relevant privacy protections as in effect 
                under the Cooperative Research and Development 
                Agreement for Cybersecurity Information Sharing 
                and Collaboration, as of December 31, 2014. 
                Nothing in this subsection may be construed to 
                require a non-Federal entity to enter into 
                either a standard or negotiated agreement to be 
                in compliance with this subsection.
          (3) Information sharing authorization.--
                  (A) In general.--Except as provided in 
                subparagraph (B), and notwithstanding any other 
                provision of law, a non-Federal entity may, for 
                cybersecurity purposes, share cyber threat 
                indicators or defensive measures obtained on 
                its own information system, or on an 
                information system of another Federal entity or 
                non-Federal entity, upon written consent of 
                such other Federal entity or non-Federal entity 
                or an authorized representative of such other 
                Federal entity or non-Federal entity in 
                accordance with this section with--
                          (i) another non-Federal entity; or
                          (ii) the Center, as provided in this 
                        section.
                  (B) Lawful restriction.--A non-Federal entity 
                receiving a cyber threat indicator or defensive 
                measure from another Federal entity or non-
                Federal entity shall comply with otherwise 
                lawful restrictions placed on the sharing or 
                use of such cyber threat indicator or defensive 
                measure by the sharing Federal entity or non-
                Federal entity.
                  (C) Removal of information unrelated to 
                cybersecurity risks or incidents.--Federal 
                entities and non-Federal entities shall, prior 
                to such sharing, take reasonable efforts to 
                remove information that can be used to identify 
                specific persons and is reasonably believed at 
                the time of sharing to be unrelated to a 
                cybersecurity risks or incident and to 
                safeguard information that can be used to 
                identify specific persons from unintended 
                disclosure or unauthorized access or 
                acquisition.
                  (D) Rule of construction.--Nothing in this 
                paragraph may be construed to--
                          (i) limit or modify an existing 
                        information sharing relationship;
                          (ii) prohibit a new information 
                        sharing relationship;
                          (iii) require a new information 
                        sharing relationship between any non-
                        Federal entity and a Federal entity;
                          (iv) limit otherwise lawful activity; 
                        or
                          (v) in any manner impact or modify 
                        procedures in existence as of the date 
                        of the enactment of this section for 
                        reporting known or suspected criminal 
                        activity to appropriate law enforcement 
                        authorities or for participating 
                        voluntarily or under legal requirement 
                        in an investigation.
                  (E) Coordinated vulnerability disclosure.--
                The Under Secretary for Cybersecurity and 
                Infrastructure Protection, in coordination with 
                industry and other stakeholders, shall develop, 
                publish, and adhere to policies and procedures 
                for coordinating vulnerability disclosures, to 
                the extent practicable, consistent with 
                international standards in the information 
                technology industry.
          (4) Network awareness authorization.--
                  (A) In general.--Notwithstanding any other 
                provision of law, a non-Federal entity, not 
                including a State, local, or tribal government, 
                may, for cybersecurity purposes, conduct 
                network awareness of--
                          (i) an information system of such 
                        non-Federal entity to protect the 
                        rights or property of such non-Federal 
                        entity;
                          (ii) an information system of another 
                        non-Federal entity, upon written 
                        consent of such other non-Federal 
                        entity for conducting such network 
                        awareness to protect the rights or 
                        property of such other non-Federal 
                        entity;
                          (iii) an information system of a 
                        Federal entity, upon written consent of 
                        an authorized representative of such 
                        Federal entity for conducting such 
                        network awareness to protect the rights 
                        or property of such Federal entity; or
                          (iv) information that is stored on, 
                        processed by, or transiting an 
                        information system described in this 
                        subparagraph.
                  (B) Rule of construction.--Nothing in this 
                paragraph may be construed to--
                          (i) authorize conducting network 
                        awareness of an information system, or 
                        the use of any information obtained 
                        through such conducting of network 
                        awareness, other than as provided in 
                        this section; or
                          (ii) limit otherwise lawful activity.
          (5) Defensive measure authorization.--
                  (A) In general.--Except as provided in 
                subparagraph (B) and notwithstanding any other 
                provision of law, a non-Federal entity, not 
                including a State, local, or tribal government, 
                may, for cybersecurity purposes, operate a 
                defensive measure that is applied to--
                          (i) an information system of such 
                        non-Federal entity to protect the 
                        rights or property of such non-Federal 
                        entity;
                          (ii) an information system of another 
                        non-Federal entity upon written consent 
                        of such other non-Federal entity for 
                        operation of such defensive measure to 
                        protect the rights or property of such 
                        other non-Federal entity;
                          (iii) an information system of a 
                        Federal entity upon written consent of 
                        an authorized representative of such 
                        Federal entity for operation of such 
                        defensive measure to protect the rights 
                        or property of such Federal entity; or
                          (iv) information that is stored on, 
                        processed by, or transiting an 
                        information system described in this 
                        subparagraph.
                  (B) Rule of construction.--Nothing in this 
                paragraph may be construed to--
                          (i) authorize the use of a defensive 
                        measure other than as provided in this 
                        section; or
                          (ii) limit otherwise lawful activity.
          (6) Privacy and civil liberties protections.--
                  (A) Policies and procedures.--
                          (i) In general.--The Under Secretary 
                        for Cybersecurity and Infrastructure 
                        Protection shall, in coordination with 
                        the Chief Privacy Officer and the Chief 
                        Civil Rights and Civil Liberties 
                        Officer of the Department, establish 
                        and annually review policies and 
                        procedures governing the receipt, 
                        retention, use, and disclosure of cyber 
                        threat indicators, defensive measures, 
                        and information related to 
                        cybersecurity risks and incidents 
                        shared with the Center in accordance 
                        with this section. Such policies and 
                        procedures shall apply only to the 
                        Department, consistent with the need to 
                        protect information systems from 
                        cybersecurity risks and incidents and 
                        mitigate cybersecurity risks and 
                        incidents in a timely manner, and 
                        shall--
                                  (I) be consistent with the 
                                Department's Fair Information 
                                Practice Principles developed 
                                pursuant to section 552a of 
                                title 5, United States Code 
                                (commonly referred to as the 
                                ``Privacy Act of 1974'' or the 
                                ``Privacy Act''), and subject 
                                to the Secretary's authority 
                                under subsection (a)(2) of 
                                section 222 of this Act;
                                  (II) reasonably limit, to the 
                                greatest extent practicable, 
                                the receipt, retention, use, 
                                and disclosure of cyber threat 
                                indicators and defensive 
                                measures associated with 
                                specific persons that is not 
                                necessary, for cybersecurity 
                                purposes, to protect a network 
                                or information system from 
                                cybersecurity risks or mitigate 
                                cybersecurity risks and 
                                incidents in a timely manner;
                                  (III) minimize any impact on 
                                privacy and civil liberties;
                                  (IV) provide data integrity 
                                through the prompt removal and 
                                destruction of obsolete or 
                                erroneous names and personal 
                                information that is unrelated 
                                to the cybersecurity risk or 
                                incident information shared and 
                                retained by the Center in 
                                accordance with this section;
                                  (V) include requirements to 
                                safeguard cyber threat 
                                indicators and defensive 
                                measures retained by the 
                                Center, including information 
                                that is proprietary or 
                                business-sensitive that may be 
                                used to identify specific 
                                persons from unauthorized 
                                access or acquisition;
                                  (VI) protect the 
                                confidentiality of cyber threat 
                                indicators and defensive 
                                measures associated with 
                                specific persons to the 
                                greatest extent practicable; 
                                and
                                  (VII) ensure all relevant 
                                constitutional, legal, and 
                                privacy protections are 
                                observed.
                          (ii) Submission to congress.--Not 
                        later than 180 days after the date of 
                        the enactment of this section and 
                        annually thereafter, the Chief Privacy 
                        Officer and the Officer for Civil 
                        Rights and Civil Liberties of the 
                        Department, in consultation with the 
                        Privacy and Civil Liberties Oversight 
                        Board (established pursuant to section 
                        1061 of the Intelligence Reform and 
                        Terrorism Prevention Act of 2004 (42 
                        U.S.C. 2000ee)), shall submit to the 
                        Committee on Homeland Security of the 
                        House of Representatives and the 
                        Committee on Homeland Security and 
                        Governmental Affairs of the Senate the 
                        policies and procedures governing the 
                        sharing of cyber threat indicators, 
                        defensive measures, and information 
                        related to cybsersecurity risks and 
                        incidents described in clause (i) of 
                        subparagraph (A).
                          (iii) Public notice and access.--The 
                        Under Secretary for Cybersecurity and 
                        Infrastructure Protection, in 
                        consultation with the Chief Privacy 
                        Officer and the Chief Civil Rights and 
                        Civil Liberties Officer of the 
                        Department, and the Privacy and Civil 
                        Liberties Oversight Board (established 
                        pursuant to section 1061 of the 
                        Intelligence Reform and Terrorism 
                        Prevention Act of 2004 (42 U.S.C. 
                        2000ee)), shall ensure there is public 
                        notice of, and access to, the policies 
                        and procedures governing the sharing of 
                        cyber threat indicators, defensive 
                        measures, and information related to 
                        cybersecurity risks and incidents.
                          (iv) Consultation.--The Under 
                        Secretary for Cybersecurity and 
                        Infrastructure Protection when 
                        establishing policies and procedures to 
                        support privacy and civil liberties may 
                        consult with the National Institute of 
                        Standards and Technology.
                  (B) Implementation.--The Chief Privacy 
                Officer of the Department, on an ongoing basis, 
                shall--
                          (i) monitor the implementation of the 
                        policies and procedures governing the 
                        sharing of cyber threat indicators and 
                        defensive measures established pursuant 
                        to clause (i) of subparagraph (A);
                          (ii) regularly review and update 
                        privacy impact assessments, as 
                        appropriate, to ensure all relevant 
                        constitutional, legal, and privacy 
                        protections are being followed;
                          (iii) work with the Under Secretary 
                        for Cybersecurity and Infrastructure 
                        Protection to carry out paragraphs (10) 
                        and (11) of subsection (c);
                          (iv) annually submit to the Committee 
                        on Homeland Security of the House of 
                        Representatives and the Committee on 
                        Homeland Security and Governmental 
                        Affairs of the Senate a report that 
                        contains a review of the effectiveness 
                        of such policies and procedures to 
                        protect privacy and civil liberties; 
                        and
                          (v) ensure there are appropriate 
                        sanctions in place for officers, 
                        employees, or agents of the Department 
                        who intentionally or willfully conduct 
                        activities under this section in an 
                        unauthorized manner.
                  (C) Inspector general report.--The Inspector 
                General of the Department, in consultation with 
                the Privacy and Civil Liberties Oversight Board 
                and the Inspector General of each Federal 
                agency that receives cyber threat indicators or 
                defensive measures shared with the Center under 
                this section, shall, not later than two years 
                after the date of the enactment of this 
                subsection and periodically thereafter submit 
                to the Committee on Homeland Security of the 
                House of Representatives and the Committee on 
                Homeland Security and Governmental Affairs of 
                the Senate a report containing a review of the 
                use of cybersecurity risk information shared 
                with the Center, including the following:
                          (i) A report on the receipt, use, and 
                        dissemination of cyber threat 
                        indicators and defensive measures that 
                        have been shared with Federal entities 
                        under this section.
                          (ii) Information on the use by the 
                        Center of such information for a 
                        purpose other than a cybersecurity 
                        purpose.
                          (iii) A review of the type of 
                        information shared with the Center 
                        under this section.
                          (iv) A review of the actions taken by 
                        the Center based on such information.
                          (v) The appropriate metrics that 
                        exist to determine the impact, if any, 
                        on privacy and civil liberties as a 
                        result of the sharing of such 
                        information with the Center.
                          (vi) A list of other Federal agencies 
                        receiving such information.
                          (vii) A review of the sharing of such 
                        information within the Federal 
                        Government to identify inappropriate 
                        stove piping of such information.
                          (viii) Any recommendations of the 
                        Inspector General of the Department for 
                        improvements or modifications to 
                        information sharing under this section.
                  (D) Privacy and civil liberties officers 
                report.--The Chief Privacy Officer and the 
                Chief Civil Rights and Civil Liberties Officer 
                of the Department, in consultation with the 
                Privacy and Civil Liberties Oversight Board, 
                the Inspector General of the Department, and 
                the senior privacy and civil liberties officer 
                of each Federal agency that receives cyber 
                threat indicators and defensive measures shared 
                with the Center under this section, shall 
                biennially submit to the appropriate 
                congressional committees a report assessing the 
                privacy and civil liberties impact of the 
                activities under this paragraph. Each such 
                report shall include any recommendations the 
                Chief Privacy Officer and the Chief Civil 
                Rights and Civil Liberties Officer of the 
                Department consider appropriate to minimize or 
                mitigate the privacy and civil liberties impact 
                of the sharing of cyber threat indicators and 
                defensive measures under this section.
                  (E) Form.--Each report required under 
                paragraphs (C) and (D) shall be submitted in 
                unclassified form, but may include a classified 
                annex.
          (7) Uses and protection of information.--
                  (A) Non-federal entities.--A non-Federal 
                entity, not including a State, local, or tribal 
                government, that shares cyber threat indicators 
                or defensive measures through the Center or 
                otherwise under this section--
                          (i) may use, retain, or further 
                        disclose such cyber threat indicators 
                        or defensive measures solely for 
                        cybersecurity purposes;
                          (ii) shall, prior to such sharing, 
                        take reasonable efforts to remove 
                        information that can be used to 
                        identify specific persons and is 
                        reasonably believed at the time of 
                        sharing to be unrelated to a 
                        cybersecurity risk or incident, and to 
                        safeguard information that can be used 
                        to identify specific persons from 
                        unintended disclosure or unauthorized 
                        access or acquisition;
                          (iii) shall comply with appropriate 
                        restrictions that a Federal entity or 
                        non-Federal entity places on the 
                        subsequent disclosure or retention of 
                        cyber threat indicators and defensive 
                        measures that it discloses to other 
                        Federal entities or non-Federal 
                        entities;
                          (iv) shall be deemed to have 
                        voluntarily shared such cyber threat 
                        indicators or defensive measures;
                          (v) shall implement and utilize a 
                        security control to protect against 
                        unauthorized access to or acquisition 
                        of such cyber threat indicators or 
                        defensive measures; and
                          (vi) may not use such information to 
                        gain an unfair competitive advantage to 
                        the detriment of any non-Federal 
                        entity.
                  (B) Federal entities.--
                          (i) Uses of information.--A Federal 
                        entity that receives cyber threat 
                        indicators or defensive measures shared 
                        through the Center or otherwise under 
                        this section from another Federal 
                        entity or a non-Federal entity--
                                  (I) may use, retain, or 
                                further disclose such cyber 
                                threat indicators or defensive 
                                measures solely for 
                                cybersecurity purposes;
                                  (II) shall, prior to such 
                                sharing, take reasonable 
                                efforts to remove information 
                                that can be used to identify 
                                specific persons and is 
                                reasonably believed at the time 
                                of sharing to be unrelated to a 
                                cybersecurity risk or incident, 
                                and to safeguard information 
                                that can be used to identify 
                                specific persons from 
                                unintended disclosure or 
                                unauthorized access or 
                                acquisition;
                                  (III) shall be deemed to have 
                                voluntarily shared such cyber 
                                threat indicators or defensive 
                                measures;
                                  (IV) shall implement and 
                                utilize a security control to 
                                protect against unauthorized 
                                access to or acquisition of 
                                such cyber threat indicators or 
                                defensive measures; and
                                  (V) may not use such cyber 
                                threat indicators or defensive 
                                measures to engage in 
                                surveillance or other 
                                collection activities for the 
                                purpose of tracking an 
                                individual's personally 
                                identifiable information.
                          (ii) Protections for information.--
                        The cyber threat indicators and 
                        defensive measures referred to in 
                        clause (i)--
                                  (I) are exempt from 
                                disclosure under section 552 of 
                                title 5, United States Code, 
                                and withheld, without 
                                discretion, from the public 
                                under subsection (b)(3)(B) of 
                                such section;
                                  (II) may not be used by the 
                                Federal Government for 
                                regulatory purposes;
                                  (III) may not constitute a 
                                waiver of any applicable 
                                privilege or protection 
                                provided by law, including 
                                trade secret protection;
                                  (IV) shall be considered the 
                                commercial, financial, and 
                                proprietary information of the 
                                non-Federal entity referred to 
                                in clause (i) when so 
                                designated by such non-Federal 
                                entity; and
                                  (V) may not be subject to a 
                                rule of any Federal entity or 
                                any judicial doctrine regarding 
                                ex parte communications with a 
                                decisionmaking official.
                  (C) State, local, or tribal government.--
                          (i) Uses of information.--A State, 
                        local, or tribal government that 
                        receives cyber threat indicators or 
                        defensive measures from the Center from 
                        a Federal entity or a non-Federal 
                        entity--
                                  (I) may use, retain, or 
                                further disclose such cyber 
                                threat indicators or defensive 
                                measures solely for 
                                cybersecurity purposes;
                                  (II) shall, prior to such 
                                sharing, take reasonable 
                                efforts to remove information 
                                that can be used to identify 
                                specific persons and is 
                                reasonably believed at the time 
                                of sharing to be unrelated to a 
                                cybersecurity risk or incident, 
                                and to safeguard information 
                                that can be used to identify 
                                specific persons from 
                                unintended disclosure or 
                                unauthorized access or 
                                acquisition;
                                  (III) shall consider such 
                                information the commercial, 
                                financial, and proprietary 
                                information of such Federal 
                                entity or non-Federal entity if 
                                so designated by such Federal 
                                entity or non-Federal entity;
                                  (IV) shall be deemed to have 
                                voluntarily shared such cyber 
                                threat indicators or defensive 
                                measures; and
                                  (V) shall implement and 
                                utilize a security control to 
                                protect against unauthorized 
                                access to or acquisition of 
                                such cyber threat indicators or 
                                defensive measures.
                          (ii) Protections for information.--
                        The cyber threat indicators and 
                        defensive measures referred to in 
                        clause (i)--
                                  (I) shall be exempt from 
                                disclosure under any State, 
                                local, or tribal law or 
                                regulation that requires public 
                                disclosure of information or 
                                records by a public or quasi-
                                public entity; and
                                  (II) may not be used by any 
                                State, local, or tribal 
                                government to regulate a lawful 
                                activity of a non-Federal 
                                entity.
          (8) Liability exemptions.--
                  (A) Network awareness.--No cause of action 
                shall lie or be maintained in any court, and 
                such action shall be promptly dismissed, 
                against any non-Federal entity that, for 
                cybersecurity purposes, conducts network 
                awareness under paragraph (4), if such network 
                awareness is conducted in accordance with such 
                paragraph and this section.
                  (B) Information sharing.--No cause of action 
                shall lie or be maintained in any court, and 
                such action shall be promptly dismissed, 
                against any non-Federal entity that, for 
                cybersecurity purposes, shares cyber threat 
                indicators or defensive measures under 
                paragraph (3), or fails to act based on such 
                sharing, if such sharing is conducted in 
                accordance with such paragraph and this 
                section.
                  (C) Willful misconduct.--
                          (i) Rule of construction.--Nothing in 
                        this section may be construed to--
                                  (I) require dismissal of a 
                                cause of action against a non-
                                Federal entity that has engaged 
                                in willful misconduct in the 
                                course of conducting activities 
                                authorized by this section; or
                                  (II) undermine or limit the 
                                availability of otherwise 
                                applicable common law or 
                                statutory defenses.
                          (ii) Proof of willful misconduct.--In 
                        any action claiming that subparagraph 
                        (A) or (B) does not apply due to 
                        willful misconduct described in clause 
                        (i), the plaintiff shall have the 
                        burden of proving by clear and 
                        convincing evidence the willful 
                        misconduct by each non-Federal entity 
                        subject to such claim and that such 
                        willful misconduct proximately caused 
                        injury to the plaintiff.
                          (iii) Willful misconduct defined.--In 
                        this subsection, the term ``willful 
                        misconduct'' means an act or omission 
                        that is taken--
                                  (I) intentionally to achieve 
                                a wrongful purpose;
                                  (II) knowingly without legal 
                                or factual justification; and
                                  (III) in disregard of a known 
                                or obvious risk that is so 
                                great as to make it highly 
                                probable that the harm will 
                                outweigh the benefit.
                  (D) Exclusion.--The term ``non-Federal 
                entity'' as used in this paragraph shall not 
                include a State, local, or tribal government.
          (9) Federal government liability for violations of 
        restrictions on the use and protection of voluntarily 
        shared information.--
                  (A) In general.--If a department or agency of 
                the Federal Government intentionally or 
                willfully violates the restrictions specified 
                in paragraph (3), (6), or (7)(B) on the use and 
                protection of voluntarily shared cyber threat 
                indicators or defensive measures, or any other 
                provision of this section, the Federal 
                Government shall be liable to a person injured 
                by such violation in an amount equal to the sum 
                of--
                          (i) the actual damages sustained by 
                        such person as a result of such 
                        violation or $1,000, whichever is 
                        greater; and
                          (ii) reasonable attorney fees as 
                        determined by the court and other 
                        litigation costs reasonably occurred in 
                        any case under this subsection in which 
                        the complainant has substantially 
                        prevailed.
                  (B) Venue.--An action to enforce liability 
                under this subsection may be brought in the 
                district court of the United States in--
                          (i) the district in which the 
                        complainant resides;
                          (ii) the district in which the 
                        principal place of business of the 
                        complainant is located;
                          (iii) the district in which the 
                        department or agency of the Federal 
                        Government that disclosed the 
                        information is located; or
                          (iv) the District of Columbia.
                  (C) Statute of limitations.--No action shall 
                lie under this subsection unless such action is 
                commenced not later than two years after the 
                date of the violation of any restriction 
                specified in paragraph (3), (6), or 7(B), or 
                any other provision of this section, that is 
                the basis for such action.
                  (D) Exclusive cause of action.--A cause of 
                action under this subsection shall be the 
                exclusive means available to a complainant 
                seeking a remedy for a violation of any 
                restriction specified in paragraph (3), (6), or 
                7(B) or any other provision of this section.
          (10) Anti-trust exemption.--
                  (A) In general.--Except as provided in 
                subparagraph (C), it shall not be considered a 
                violation of any provision of antitrust laws 
                for two or more non-Federal entities to share a 
                cyber threat indicator or defensive measure, or 
                assistance relating to the prevention, 
                investigation, or mitigation of a cybersecurity 
                risk or incident, for cybersecurity purposes 
                under this Act.
                  (B) Applicability.--Subparagraph (A) shall 
                apply only to information that is shared or 
                assistance that is provided in order to assist 
                with--
                          (i) facilitating the prevention, 
                        investigation, or mitigation of a 
                        cybersecurity risk or incident to an 
                        information system or information that 
                        is stored on, processed by, or 
                        transiting an information system; or
                          (ii) communicating or disclosing a 
                        cyber threat indicator or defensive 
                        measure to help prevent, investigate, 
                        or mitigate the effect of a 
                        cybersecurity risk or incident to an 
                        information system or information that 
                        is stored on, processed by, or 
                        transiting an information system.
                  (C) Prohibited conduct.--Nothing in this 
                section may be construed to permit price-
                fixing, allocating a market between 
                competitors, monopolizing or attempting to 
                monopolize a market, or exchanges of price or 
                cost information, customer lists, or 
                information regarding future competitive 
                planning.
          (11) Construction and preemption.--
                  (A) Otherwise lawful disclosures.--Nothing in 
                this section may be construed to limit or 
                prohibit otherwise lawful disclosures of 
                communications, records, or other information, 
                including reporting of known or suspected 
                criminal activity or participating voluntarily 
                or under legal requirement in an investigation, 
                by a non-Federal to any other non-Federal 
                entity or Federal entity under this section.
                  (B) Whistle blower protections.--Nothing in 
                this section may be construed to prohibit or 
                limit the disclosure of information protected 
                under section 2302(b)(8) of title 5, United 
                States Code (governing disclosures of 
                illegality, waste, fraud, abuse, or public 
                health or safety threats), section 7211 of 
                title 5, United States Code (governing 
                disclosures to Congress), section 1034 of title 
                10, United States Code (governing disclosure to 
                Congress by members of the military), section 
                1104 of the National Security Act of 1947 (50 
                U.S.C. 3234) (governing disclosure by employees 
                of elements of the intelligence community), or 
                any similar provision of Federal or State law.
                  (C) Relationship to other laws.--Nothing in 
                this section may be construed to affect any 
                requirement under any other provision of law 
                for a non-Federal entity to provide information 
                to a Federal entity.
                  (D) Preservation of contractual obligations 
                and rights.--Nothing in this section may be 
                construed to--
                          (i) amend, repeal, or supersede any 
                        current or future contractual 
                        agreement, terms of service agreement, 
                        or other contractual relationship 
                        between any non-Federal entities, or 
                        between any non-Federal entity and a 
                        Federal entity; or
                          (ii) abrogate trade secret or 
                        intellectual property rights of any 
                        non-Federal entity or Federal entity.
                  (E) Anti-tasking restriction.--Nothing in 
                this section may be construed to permit a 
                Federal entity to--
                          (i) require a non-Federal entity to 
                        provide information to a Federal 
                        entity;
                          (ii) condition the sharing of cyber 
                        threat indicators or defensive measures 
                        with a non-Federal entity on such non-
                        Federal entity's provision of cyber 
                        threat indicators or defensive measures 
                        to a Federal entity; or
                          (iii) condition the award of any 
                        Federal grant, contract, or purchase on 
                        the sharing of cyber threat indicators 
                        or defensive measures with a Federal 
                        entity.
                  (F) No liability for non-participation.--
                Nothing in this section may be construed to 
                subject any non-Federal entity to liability for 
                choosing to not engage in the voluntary 
                activities authorized under this section.
                  (G) Use and retention of information.--
                Nothing in this section may be construed to 
                authorize, or to modify any existing authority 
                of, a department or agency of the Federal 
                Government to retain or use any information 
                shared under this section for any use other 
                than permitted in this section.
                  (H) Voluntary sharing.--Nothing in this 
                section may be construed to restrict or 
                condition a non-Federal entity from sharing, 
                for cybersecurity purposes, cyber threat 
                indicators, defensive measures, or information 
                related to cybersecurity risks or incidents 
                with any other non-Federal entity, and nothing 
                in this section may be construed as requiring 
                any non-Federal entity to share cyber threat 
                indicators, defensive measures, or information 
                related to cybersecurity risks or incidents 
                with the Center.
                  (I) Federal preemption.--This section 
                supersedes any statute or other provision of 
                law of a State or political subdivision of a 
                State that restricts or otherwise expressly 
                regulates an activity authorized under this 
                section.
  (j) Direct Reporting.--The Secretary shall develop policies 
and procedures for direct reporting to the Secretary by the 
Director of the Center regarding significant cybersecurity 
risks and incidents.
  (k) Additional Responsibilities.--The Secretary shall build 
upon existing mechanisms to promote a national awareness effort 
to educate the general public on the importance of securing 
information systems.
  (l) Reports on International Cooperation.--Not later than 180 
days after the date of the enactment of this subsection and 
periodically thereafter, the Secretary of Homeland Security 
shall submit to the Committee on Homeland Security of the House 
of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate a report on the range of 
efforts underway to bolster cybersecurity collaboration with 
relevant international partners in accordance with subsection 
(c)(8).
  (m) Outreach.--Not later than 60 days after the date of the 
enactment of this subsection, the Secretary, acting through the 
Under Secretary for Cybersecurity and Infrastructure 
Protection, shall--
          (1) disseminate to the public information about how 
        to voluntarily share cyber threat indicators and 
        defensive measures with the Center; and
          (2) enhance outreach to critical infrastructure 
        owners and operators for purposes of such sharing.

SEC. 227. CYBER INCIDENT RESPONSE [PLAN]  PLANS.

   [The Under Secretary appointed under section 103(a)(1)(H) 
shall] (a)  In General._The Under Secretary for Cybersecurity 
and Infrastructure Protection shall, in coordination with 
appropriate Federal departments and agencies, State and local 
governments, sector coordinating councils, information sharing 
and analysis organizations (as defined in section 212(5)), 
owners and operators of critical infrastructure, and other 
appropriate entities and individuals, develop, regularly 
update, maintain, and exercise adaptable cyber incident 
response plans to address cybersecurity risks (as defined in 
section 226) to critical infrastructure.
  (b) Updates to the Cyber Incident Annex to the National 
Response Framework.--The Secretary, in coordination with the 
heads of other appropriate Federal departments and agencies, 
and in accordance with the National Cybersecurity Incident 
Response Plan required under subsection (a), shall regularly 
update, maintain, and exercise the Cyber Incident Annex to the 
National Response Framework of the Department.

           *       *       *       *       *       *       *

SEC. 230. SECURITY AND RESILIENCY OF PUBLIC SAFETY COMMUNICATIONS.

  The National Cybersecurity and Communications Integration 
Center, in coordination with the Office of Emergency 
Communications of the Department, shall assess and evaluate 
consequence, vulnerability, and threat information regarding 
cyber incidents to public safety communications to help 
facilitate continuous improvements to the security and 
resiliency of such communications.

SEC. 231. CYBERSECURITY AWARENESS CAMPAIGN.

  (a) In General.--The Under Secretary for Cybersecurity and 
Infrastructure Protection shall develop and implement an 
ongoing and comprehensive cybersecurity awareness campaign 
regarding cybersecurity risks and voluntary best practices for 
mitigating and responding to such risks. Such campaign shall, 
at a minimum, publish and disseminate, on an ongoing basis, the 
following:
          (1) Public service announcements targeted at 
        improving awareness among State, local, and tribal 
        governments, the private sector, academia, and 
        stakeholders in specific audiences, including the 
        elderly, students, small businesses, members of the 
        Armed Forces, and veterans.
          (2) Vendor and technology-neutral voluntary best 
        practices information.
  (b) Consultation.--The Under Secretary for Cybersecurity and 
Infrastructure Protection shall consult with a wide range of 
stakeholders in government, industry, academia, and the non-
profit community in carrying out this section.

           *       *       *       *       *       *       *

TITLE III--SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND SECURITY

           *       *       *       *       *       *       *

SEC. 318. RESEARCH AND DEVELOPMENT STRATEGY FOR CRITICAL INFRASTRUCTURE 
                    PROTECTION.

  (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary, acting through the 
Under Secretary for Science and Technology, shall submit to 
Congress a strategic plan to guide the overall direction of 
Federal physical security and cybersecurity technology research 
and development efforts for protecting critical infrastructure, 
including against all threats. Such plan shall be updated and 
submitted to Congress every two years.
  (b) Contents of Plan.--The strategic plan, including biennial 
updates, required under subsection (a) shall include the 
following:
          (1) An identification of critical infrastructure 
        security risks and any associated security technology 
        gaps, that are developed following--
                  (A) consultation with stakeholders, including 
                critical infrastructure Sector Coordinating 
                Councils; and
                  (B) performance by the Department of a risk 
                and gap analysis that considers information 
                received in such consultations.
          (2) A set of critical infrastructure security 
        technology needs that--
                  (A) is prioritized based on the risks and 
                gaps identified under paragraph (1);
                  (B) emphasizes research and development of 
                technologies that need to be accelerated due to 
                rapidly evolving threats or rapidly advancing 
                infrastructure technology; and
                  (C) includes research, development, and 
                acquisition roadmaps with clearly defined 
                objectives, goals, and measures.
          (3) An identification of laboratories, facilities, 
        modeling, and simulation capabilities that will be 
        required to support the research, development, 
        demonstration, testing, evaluation, and acquisition of 
        the security technologies described in paragraph (2).
          (4) An identification of current and planned 
        programmatic initiatives for fostering the rapid 
        advancement and deployment of security technologies for 
        critical infrastructure protection, including a 
        consideration of opportunities for public-private 
        partnerships, intragovernment collaboration, university 
        centers of excellence, and national laboratory 
        technology transfer.
          (5) A description of progress made with respect to 
        each critical infrastructure security risk, associated 
        security technology gap, and critical infrastructure 
        technology need identified in the preceding strategic 
        plan required under subsection (a).
  (c) Coordination.--In carrying out this section, the Under 
Secretary for Science and Technology shall coordinate with the 
Under Secretary for the National Protection and Programs 
Directorate.
  (d) Consultation.--In carrying out this section, the Under 
Secretary for Science and Technology shall consult with--
          (1) critical infrastructure Sector Coordinating 
        Councils;
          (2) to the extent practicable, subject matter experts 
        on critical infrastructure protection from 
        universities, colleges, national laboratories, and 
        private industry;
          (3) the heads of other relevant Federal departments 
        and agencies that conduct research and development 
        relating to critical infrastructure protection; and
          (4) State, local, and tribal governments, as 
        appropriate.

           *       *       *       *       *       *       *

                            ADDITIONAL VIEWS

    On behalf of Committee on Homeland Security Democrats, I 
submit the following additional views on H.R. 1731, the 
``National Cybersecurity Protection Advancement Act of 2015,'' 
as amended.
    Improving cyber information sharing is a top legislative 
priority for Committee on Homeland Security Democrats for the 
114th Congress. H.R. 1731 is the product of months of 
bipartisan stakeholder discussions with private sector 
stakeholders, including representatives from critical 
infrastructure sectors, technology companies, privacy 
organizations, as well as Federal stakeholders, most especially 
the Department of Homeland Security. Committee Democrats 
support efforts to bolster information sharing with the 
Department and agree with President Obama about the need for 
targeted liability protection to address addressing what some 
in industry have identified as a major barrier to sharing cyber 
threat information--the risk that sharing such information 
would expose companies to legal liability. Committee Democrats 
are disappointed that while the Majority worked collaboratively 
with us on the bulk of this legislation, when it came time to 
crafting liability protection language, Democrats were shut 
out. The liability protection provision that was negotiated 
between Chairman Michael McCaul and House Judiciary Committee 
Chairman Bob Goodlatte is unduly complicated and runs the risk 
of directly or inadvertently providing liability relief to 
entities that act negligently as lawsuits would only be allowed 
for ``willful misconduct.'' It also may incentivize companies 
to not act on timely cyber threat information as it explicitly 
immunizes a non-Federal entity who ``in good faith fails to 
act'' on cyber information against lawsuits. This approach is 
counter to the fundamental goal of the Act--to provide 
companies with timely information to act and protect their 
networks and the information stored on them.
    Although Committee Democrats are disappointed with the 
liability protection provision in H.R. 1731, Committee 
Democrats are pleased that our efforts to bolster the privacy 
provisions in the underlying bill were largely successful; 
however, it is worth noting that bipartisan discussions 
continue with privacy stakeholders about further refinements, 
as this measure moves to the Full House.
    In general, we are pleased that H.R. 1731, as amended, 
limits the sharing and allowable uses for cyber threat 
information to ``solely for cybersecurity purposes,'' requires 
participating non-Federal entities and the National 
Cybersecurity and Communications Integration Center (NCCIC) to 
remove unrelated information that identifies persons from cyber 
threat data (minimization), and builds in privacy protections 
and oversight at all levels of the NCCIC operation.
    Committee Democrats are disappointed that amendments 
offered by Cybersecurity, Infrastructure Protection, and 
Security Technologies (CIPST) Subcommittee Ranking Member 
Cedric Richmond to improve the liability protection language 
were rejected at the Full Committee markup. They would have 
streamlined the language in key respects. Also rejected was an 
amendment that I offered to sunset this Act after five years to 
allow for the Committee to make adjustments to the law based on 
oversight findings.
    Committee Democrats are pleased, however that twelve 
amendments offered by Committee Democrats were accepted. Two 
amendments that we would like to highlight in particular would 
seek to bolster the reach of this bill to Main Street America 
and every U.S. household.
    The first was offered by CIPST Ranking Member Richmond. It 
directed DHS to bolster outreach to small and medium-size 
business, and to help ensure that Main Street businesses get 
the attention and assistance they need. Most small and medium-
size businesses do not have the resources to focus on cyber 
threats but by requiring DHS to amplify its efforts with 
respect to small and medium-size businesses specifically 
regarding cyber security, we can help Main Street America 
participate, ensuring that information-sharing, on the larger 
scale, adds to the cyber security of a broad array of 
businesses all across our nation.
    The second was offered by Oversight and Management 
Efficiency Subcommittee Ranking Member Bonnie Watson Coleman. 
It directs DHS to begin a concerted and sustained campaign to 
raise national awareness about cybersecurity. The campaign is 
to include public service announcements, widely advertised web 
sites, Apps, written collateral; social media; and other 
creative sources to help Americans understand that many simple 
measures will improve their cyber security protection posture. 
Such measures include simple steps like: improving password 
management; enabling firewall protection; installing anti-virus 
and anti-spam protection; installing software updates; ``know 
your sender'' and refrain from opening links and attachments 
from unknown and untrusted senders.
    As we work to enhance information sharing about cyber 
threats, it is important to keep in mind that as much as 80 
percent of exploitable vulnerabilities in cyberspace are a 
direct result of poor, or no cyber hygiene and software 
vulnerabilities. The American people must be made more aware 
about the basic fundamentals of cybersecurity.
            Sincerely,
                                   Bennie G. Thompson,
                                           Ranking Member.

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