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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1731 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 2015

  Mr. McCaul (for himself and Mr. Ratcliffe) introduced the following 
     bill; which was referred to the Committee on Homeland Security

_______________________________________________________________________

                                 A BILL

 
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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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;
            ``(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); and
            ``(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.'';
            (2) in subsection (d)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (E) as 
                subparagraph (I); 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, 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; 
                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,''; and
                            (iv) in subparagraph (G), by striking 
                        ``cybersecurity risks'' and inserting ``cyber 
                        threat indicators, defensive measures, 
                        cybersecurity risks,'';
                    (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 based on 
        standards and widely used approaches in the information 
        technology industry 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 and 
                intentionally 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.
            ``(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.
                    ``(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; and
                                    ``(IV) 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) 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 good faith 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 in good faith fails to act based on 
                such sharing, if such sharing is conducted in good 
                faith 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) Whistleblower 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.''.

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. 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. 6. 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. 7. 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. 8. 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.
                                 <all>
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