```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5527 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 752
118th CONGRESS
  2d Session
                                H. R. 5527

                          [Report No. 118-332]

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2024

Received; read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

            December 19 (legislative day, December 16), 2024

               Reported by Mr. Peters, without amendment

_______________________________________________________________________

                                 AN ACT

 
  To amend section 1078 of the National Defense Authorization Act for 
   Fiscal Year 2018 to increase the effectiveness of the Technology 
              Modernization Fund, 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 ``Modernizing Government Technology 
Reform Act''.

SEC. 2. REALIGNING USE OF FUNDS WITH ORIGINAL CONGRESSIONAL INTENT.

    Section 1078 of the National Defense Authorization Act for Fiscal 
Year 2018 (Public Law 115-91; 40 U.S.C. 11301 note) is amended--
            (1) in subsection (b)--
                    (A) by amending paragraph (3) to read as follows:
            ``(3) Use of funds.--
                    ``(A) In general.--The Administrator shall, in 
                accordance with recommendations from the Board, use 
                amounts in the Fund for the following:
                            ``(i) To transfer such amounts, to remain 
                        available until expended, to the head of an 
                        agency for the acquisition, procurement, and 
                        operation of information technology, or the 
                        development of information technology when more 
                        efficient and cost effective, to--
                                    ``(I) modernize, retire, or replace 
                                legacy information technology systems 
                                used by the agency;
                                    ``(II) enhance cybersecurity and 
                                privacy at the agency;
                                    ``(III) improve long-term 
                                efficiency and effectiveness of agency 
                                information technology; or
                                    ``(IV) improve the ability of the 
                                agency to perform the mission of the 
                                agency and deliver services to the 
                                public.
                            ``(ii) To provide services or work 
                        performed in support of--
                                    ``(I) the activities described in 
                                clause (i); and
                                    ``(II) the Board and the Director 
                                in carrying out the responsibilities 
                                described in subsection (c)(2).
                            ``(iii) To fund only programs, projects, or 
                        activities, or to fund increases for any 
                        programs, projects, or activities that have not 
                        been denied or restricted by Congress.
                            ``(iv) To transfer such amounts only for 
                        programs, projects, or activities that will be 
                        reimbursed to the Fund to the extent necessary 
                        to ensure total amounts in the Fund are no less 
                        than the amounts needed to keep the Fund 
                        operational until the Fund sunsets pursuant to 
                        subsection (g)(1).
                    ``(B) Termination or suspension of funds.--The 
                Administrator shall, in accordance with recommendations 
                from the Board, suspend or terminate funding for any 
                project with respect to which the head of an agency 
                provided fraudulent or misleading statements about such 
                project (including fraudulent statements about 
                technical design, the business case, or program 
                management with respect to the project) in the 
                application or proposal for amounts from the Fund for 
                such project.'';
                    (B) in paragraph (5)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i)--
                                            (aa) by striking ``or 
                                        (B)''; and
                                            (bb) by striking ``(3)(C)'' 
                                        and inserting ``(3)(A)(ii)''; 
                                        and
                                    (II) in clause (ii), by striking 
                                ``, consistent with any applicable 
                                reprogramming law or guidelines of the 
                                Committees on Appropriations of the 
                                Senate and the House of 
                                Representatives''; and
                            (ii) in subparagraph (B)(i)--
                                    (I) by striking ``paragraph 
                                (3)(C)'' and inserting ``paragraph 
                                (3)(A)(ii)''; and
                                    (II) by striking ``the solvency of 
                                the Fund, including operating 
                                expenses'' and inserting the following: 
                                ``total amounts in the Fund are no less 
                                than the amounts needed to keep the 
                                Fund operational until the Fund sunsets 
                                pursuant to subsection (g)(1)'';
                    (C) in paragraph (6)--
                            (i) in subparagraph (A)--
                                    (I) in the matter before clause 
                                (i), by striking ``subparagraphs (A) 
                                and (B) of paragraph (3)'' and 
                                inserting the following: ``paragraph 
                                (3)(A)(i) and before any services or 
                                work are provided under paragraph 
                                (3)(A)(ii)(I)'';
                                    (II) in clause (i)--
                                            (aa) by striking ``unless 
                                        approved by the Director''; and
                                            (bb) by striking ``; and'' 
                                        and inserting a semicolon;
                                    (III) by redesignating clause (ii) 
                                as clause (iv); and
                                    (IV) by inserting after clause (i) 
                                the following new clauses:
                            ``(ii) which shall include terms of 
                        repayment that require the head of the agency 
                        to reimburse the Fund for funds transferred 
                        under paragraph (3)(A)(i) at a level that 
                        ensures total amounts in the Fund are no less 
                        than the amounts needed to keep the Fund 
                        operational until the Fund sunsets pursuant to 
                        subsection (g)(1);
                            ``(iii) which shall include terms of 
                        repayment that require the head of the agency 
                        to fully reimburse the Fund for any services or 
                        work provided under paragraph (3)(A)(ii) in 
                        direct support of the project; and''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking clause (i) and 
                                inserting the following:
                            ``(i) for any funds transferred to an 
                        agency under paragraph (3)(A)(i), in the 
                        absence of compelling circumstances documented 
                        by the Administrator at the time of transfer, 
                        that such funds shall be transferred only--
                                    ``(I) on an incremental basis, tied 
                                to metric-based development milestones 
                                achieved by the agency through the use 
                                of rapid, iterative, development 
                                processes; and
                                    ``(II) after the head of the agency 
                                has provided the Director any 
                                information the Director is required to 
                                report pursuant to paragraph (7)(A)(i); 
                                and''; and
                                    (II) in clause (ii)--
                                            (aa) by striking 
                                        ``subparagraphs (A) and (B) of 
                                        paragraph (3)'' and inserting 
                                        ``paragraph (3)(A)(i)''; and
                                            (bb) by striking 
                                        ``paragraph (6)'' and inserting 
                                        ``this paragraph'';
                    (D) in paragraph (7)--
                            (i) in subparagraph (A)(i)--
                                    (I) by inserting ``the written 
                                agreement entered into under paragraph 
                                (6),'' after ``description of the 
                                project,''; and
                                    (II) by inserting ``(including 
                                documented market research into 
                                commercial products and services)'' 
                                after ``used'';
                            (ii) in subparagraph (B)--
                                    (I) in clause (i)--
                                            (aa) by striking 
                                        ``establishing''; and
                                            (bb) by striking ``the cost 
                                        savings associated with the 
                                        projects funded both annually 
                                        and over the life of the 
                                        acquired products and services 
                                        by the Fund;'' and inserting 
                                        the following: ``the amount 
                                        repaid to the Fund in 
                                        accordance with the terms 
                                        established in the written 
                                        agreements described in 
                                        paragraph (6);'';
                                    (II) in clause (ii)--
                                            (aa) by striking 
                                        ``reliability of the cost 
                                        savings'' and inserting ``total 
                                        cost savings''; and
                                            (bb) by striking the 
                                        semicolon and inserting ``; 
                                        and''; and
                                    (III) in clause (iii), by striking 
                                ``; and'' and inserting a period; and
                                    (IV) by striking clause (iv);
            (2) in subsection (c)(2)--
                    (A) in subparagraph (A)--
                            (i) in clause (ii), by striking ``the 
                        greatest Governmentwide impact; and'' and 
                        inserting the following: ``the greatest impact 
                        on modernizing, retiring, or replacing Federal 
                        legacy information technology systems; and'';
                            (ii) by redesignating clauses (i) through 
                        (iii) as clauses (ii) through (iv), 
                        respectively; and
                            (iii) by inserting before clause (ii), as 
                        so redesignated, the following new clause:
                            ``(i) the ability for the head of the 
                        agency to ensure repayment of funds transferred 
                        from the Fund to the head of the agency, in 
                        accordance with subsection (b);'';
                    (B) in subparagraph (D), by striking ``to improve 
                or replace multiple information technology systems'' 
                and inserting the following: ``to modernize, retire, or 
                replace legacy information technology systems under 
                subsection (b)(3)(A)(i)''; and
                    (C) in subparagraph (F), by inserting after 
                ``subsection (b)(6)'' the following: ``or the 
                identification of fraudulent or misleading statements 
                about the project (including fraudulent statements 
                about technical design, the business case, or program 
                management with respect to the project) in the 
                application or proposal for amounts from the Fund for 
                the project''; and
                    (D) in subparagraph (G), by inserting after 
                ``operating costs of the Fund'' the following: ``to 
                ensure total amounts in the Fund are no less than the 
                amounts needed to keep the Fund operational until the 
                Fund sunsets pursuant to subsection (g)(1)'';
            (3) in subsection (c)--
                    (A) in paragraph (5)--
                            (i) in subparagraph (B) by striking the 
                        period at the end and inserting ``; and''; and
                            (ii) by inserting after subparagraph (B) 
                        the following;
                    ``(C) a senior official from the Cybersecurity and 
                Infrastructure Security Agency of the Department of 
                Homeland Security, appointed by the Director of the 
                Cybersecurity and Infrastructure Security Agency, with 
                the approval of the Director of the Office of 
                Management and Budget.'';
                    (B) in paragraph (6)(A)--
                            (i) by striking ``shall be--'' and 
                        inserting ``shall be 4 employees of the Federal 
                        Government primarily having technical expertise 
                        in information technology development, 
                        financial management, cybersecurity and 
                        privacy, and acquisition, appointed by the 
                        Director.''; and
                            (ii) by striking clauses (i) and (ii); and
            (4) in subsection (d)(2)--
                    (A) in subparagraph (A), by striking ``subsection 
                (b)(3)(A) and for products, services, and acquisition 
                vehicles funded under subsection (b)(3)(B)'' and 
                inserting ``subsection (b)(3)''; and
                    (B) in subparagraph (C), by inserting after ``and 
                reduce waste'' the following: ``and ensure total 
                amounts in the Fund are no less than the amounts needed 
                to keep the Fund operational until the Fund sunsets 
                pursuant to subsection (g)(1)'';
            (5) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively;
            (6) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Responsibilities of the Federal Chief Information Officer; 
Agency Chief Information Officers.--
            ``(1) Agency inventory.--An agency Chief Information 
        Officer, in coordination with stakeholders and other agency 
        officials, shall provide to the Federal Chief Information 
        Officer--
                    ``(A) on or before the first September 30 that 
                occurs after the date of the enactment of the 
                Modernizing Government Technology Reform Act of 2023, a 
                list of high-risk legacy information technology systems 
                used, operated, or maintained by the agency, in 
                accordance with the guidance issued under paragraph 
                (4); and
                    ``(B) on or before September 30 of each year after 
                the first year in which the list is provided under 
                subparagraph (A), any updates to such list.
            ``(2) Legacy federal it inventory.--The Federal Chief 
        Information Officer shall--
                    ``(A) on or before the first December 30 that 
                occurs after the date of the enactment of the 
                Modernizing Government Technology Reform Act of 2023, 
                compile a Legacy Federal IT Inventory on the basis of 
                the each list provided by an agency Chief Information 
                Officers under paragraph (1)(A) that includes 
                information about each high-risk legacy information 
                technology system used, operated, or maintained by an 
                agency; and
                    ``(B) on or before December 30 each year after the 
                year in which the Legacy Federal IT Inventory is 
                compiled, update such Inventory on the basis of each 
                update to the list provided by an agency Chief 
                Information Officer under paragraph (1)(B).
            ``(3) Prioritization list.--
                    ``(A) Requirement.--The Federal Chief Information 
                Officer shall--
                            ``(i) not later than 90 days after the date 
                        on which the Federal Chief Information Officer 
                        receives the list required by paragraph (1)(A) 
                        from each agency Chief Information Officer, 
                        compile, on the basis of each such list, a list 
                        of 10 legacy information technology systems 
                        that present the greatest security, privacy, 
                        and operational risks to the Federal 
                        Government; and
                            ``(ii) not later than 90 days after the 
                        date on which the Federal Chief Information 
                        Officer receives updates under paragraph (1)(B) 
                        from each agency Chief Information Officer, 
                        update the list required by subparagraph (A) on 
                        the basis of each updates to the list provided 
                        by agency Chief information Officers under 
                        paragraph (1)(B).
                    ``(B) Report to congress.--Not later than 14 days 
                after the date on which the Federal Chief Information 
                Officer compiles the list required by subparagraph (A), 
                or updates such list, the Director shall submit to the 
                Committee on Oversight and Accountability of the House 
                of Representatives, the Committee on Homeland Security 
                and Governmental Affairs of the Senate, and the 
                Comptroller General of the United States, a report 
                (which may include a classified annex) containing--
                            ``(i) such list (including any update made 
                        to such list under subparagraph (A)(ii)); and
                            ``(ii) each list provided by an agency 
                        Chief Information Officer under paragraph 
                        (1)(A) (including any update made to any such 
                        list under paragraph (1)(B)).
            ``(4) Guidance.--
                    ``(A) In general.--Not later than 180 days after 
                enactment of this Act, the Director shall issue 
                guidance on implementing the requirements of this 
                subsection that shall, at a minimum--
                            ``(i) prescribe an appropriate format for 
                        list to be provided under paragraph (1)(A);
                            ``(ii) prescribe the information to be 
                        included in the Legacy Federal IT Inventory 
                        required by paragraph (2);
                            ``(iii) provide guidance on how an agency 
                        Chief Information Officer should identify high-
                        risk legacy information technology systems 
                        that, at least, requires agency Chief 
                        Information Officers, in coordination with 
                        other agency stakeholders, to identify as a 
                        high risk legacy information technology system 
                        any outdated or obsolete system of information 
                        technology that is critical to the agency such 
                        that the loss or degradation of the system 
                        would create a security, operational, or 
                        privacy risk to the agency or would otherwise 
                        impact the ability of the agency to perform the 
                        mission of the agency, effectively deliver 
                        programs, or conduct business; and
                            ``(iv) provide guidance on how existing 
                        reporting structures can be used to submit the 
                        Legacy Federal IT inventory required by 
                        paragraph (2).
                    ``(B) Updates.--The Director may update the 
                guidance issued under subparagraph (A) as the Director 
                determines necessary.
            ``(5) Definitions.--In this subsection:
                    ``(A) Agency chief information officer.--The term 
                `agency Chief Information Officer' means a Chief 
                Information Officer designated under section 3506(a)(2) 
                of title 44, United States Code.
                    ``(B) Federal chief information officer.--The term 
                `Federal Chief Information Officer' means the 
                Administrator of the Office of Electronic 
                Government.''; and
            (7) in subsection (g)(1), as so redesignated, by striking 
        ``On and after the date that is 2 years after the date on which 
        the Comptroller General of the United States issues the third 
        report required under subsection (b)(7)(B),'' and inserting 
        ``After December 31, 2031,''.
                                                       Calendar No. 752

118th CONGRESS

  2d Session

                               H. R. 5527

                          [Report No. 118-332]

_______________________________________________________________________

                                 AN ACT

  To amend section 1078 of the National Defense Authorization Act for 
   Fiscal Year 2018 to increase the effectiveness of the Technology 
              Modernization Fund, and for other purposes.

_______________________________________________________________________

            December 19 (legislative day, December 16), 2024

                       Reported without amendment
```