S. 2521 

One Hundred Thirteenth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Friday, 

the third day of January, two thousand and fourteen 

An Act 

To amend chapter 35 of title 44, United States Code, to provide for reform to 

Federal information security. 

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 ‘‘Federal Information Security 

Modernization Act of 2014’’. 

SEC. 2. FISMA REFORM. 

(a) IN GENERAL.—Chapter 35 of title 44, United States Code, 

is amended by striking subchapters II and III and inserting the 

following: 

‘‘SUBCHAPTER II—INFORMATION SECURITY 

‘‘§ 3551. Purposes 

‘‘The purposes of this subchapter are to— 

‘‘(1) provide a comprehensive framework for ensuring the 

effectiveness of information security controls over information 

resources that support Federal operations and assets; 

‘‘(2) recognize the highly networked nature of the current 

Federal computing environment and provide effective 

governmentwide management and oversight of the related 

information security risks, including coordination of information 

security efforts throughout the civilian, national security, and 

law enforcement communities; 

‘‘(3) provide for development and maintenance of minimum 

controls required to protect Federal information and information systems; 

‘‘(4) provide a mechanism for improved oversight of Federal 

agency information security programs, including through automated security tools to continuously diagnose and improve security; 

‘‘(5) acknowledge that commercially developed information 

security products offer advanced, dynamic, robust, and effective 

information security solutions, reflecting market solutions for 

the protection of critical information infrastructures important 

to the national defense and economic security of the nation 

that are designed, built, and operated by the private sector; 

and 

‘‘(6) recognize that the selection of specific technical hardware and software information security solutions should be 
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left to individual agencies from among commercially developed 

products. 

‘‘§ 3552. Definitions 

‘‘(a) IN GENERAL.—Except as provided under subsection (b), 

the definitions under section 3502 shall apply to this subchapter. 

‘‘(b) ADDITIONAL DEFINITIONS.—As used in this subchapter: 

‘‘(1) The term ‘binding operational directive’ means a 

compulsory direction to an agency that— 

‘‘(A) is for purposes of safeguarding Federal information 

and information systems from a known or reasonably suspected information security threat, vulnerability, or risk; 

‘‘(B) shall be in accordance with policies, principles, 

standards, and guidelines issued by the Director; and 

‘‘(C) may be revised or repealed by the Director if 

the direction issued on behalf of the Director is not in 

accordance with policies and principles developed by the 

Director. 

‘‘(2) The term ‘incident’ means an occurrence that— 

‘‘(A) actually or imminently jeopardizes, without lawful 

authority, the integrity, confidentiality, or availability of 

information or an information system; or 

‘‘(B) constitutes a violation or imminent threat of violation of law, security policies, security procedures, or acceptable use policies. 

‘‘(3) The term ‘information security’ means protecting 

information and information systems from unauthorized access, 

use, disclosure, disruption, modification, or destruction in order 

to provide— 

‘‘(A) integrity, which means guarding against improper 

information modification or destruction, and includes 

ensuring information nonrepudiation and authenticity; 

‘‘(B) confidentiality, which means preserving authorized restrictions on access and disclosure, including means 

for protecting personal privacy and proprietary information; 

and 

‘‘(C) availability, which means ensuring timely and 

reliable access to and use of information. 

‘‘(4) The term ‘information technology’ has the meaning 

given that term in section 11101 of title 40. 

‘‘(5) The term ‘intelligence community’ has the meaning 

given that term in section 3(4) of the National Security Act 

of 1947 (50 U.S.C. 3003(4)). 

‘‘(6)(A) The term ‘national security system’ means any 

information system (including any telecommunications system) 

used or operated by an agency or by a contractor of an agency, 

or other organization on behalf of an agency— 

‘‘(i) the function, operation, or use of which— 

‘‘(I) involves intelligence activities; 

‘‘(II) involves cryptologic activities related to 

national security; 

‘‘(III) involves command and control of military 

forces; 

‘‘(IV) involves equipment that is an integral part 

of a weapon or weapons system; or 
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‘‘(V) subject to subparagraph (B), is critical to the 

direct fulfillment of military or intelligence missions; 

or 

‘‘(ii) is protected at all times by procedures established 

for information that have been specifically authorized under 

criteria established by an Executive order or an Act of 

Congress to be kept classified in the interest of national 

defense or foreign policy. 

‘‘(B) Subparagraph (A)(i)(V) does not include a system that 

is to be used for routine administrative and business applications (including payroll, finance, logistics, and personnel 

management applications). 

‘‘(7) The term ‘Secretary’ means the Secretary of Homeland 

Security. 

‘‘§ 3553. Authority and functions of the Director and the Secretary 

‘‘(a) DIRECTOR.—The Director shall oversee agency information 

security policies and practices, including— 

‘‘(1) developing and overseeing the implementation of policies, principles, standards, and guidelines on information security, including through ensuring timely agency adoption of and 

compliance with standards promulgated under section 11331 

of title 40; 

‘‘(2) requiring agencies, consistent with the standards 

promulgated under such section 11331 and the requirements 

of this subchapter, to identify and provide information security 

protections commensurate with the risk and magnitude of the 

harm resulting from the unauthorized access, use, disclosure, 

disruption, modification, or destruction of— 

‘‘(A) information collected or maintained by or on behalf 

of an agency; or 

‘‘(B) information systems used or operated by an agency 

or by a contractor of an agency or other organization on 

behalf of an agency; 

‘‘(3) ensuring that the Secretary carries out the authorities 

and functions under subsection (b); 

‘‘(4) coordinating the development of standards and guidelines under section 20 of the National Institute of Standards 

and Technology Act (15 U.S.C. 278g–3) with agencies and offices 

operating or exercising control of national security systems 

(including the National Security Agency) to assure, to the maximum extent feasible, that such standards and guidelines are 

complementary with standards and guidelines developed for 

national security systems; 

‘‘(5) overseeing agency compliance with the requirements 

of this subchapter, including through any authorized action 

under section 11303 of title 40, to enforce accountability for 

compliance with such requirements; and 

‘‘(6) coordinating information security policies and procedures with related information resources management policies 

and procedures. 

‘‘(b) SECRETARY.—The Secretary, in consultation with the 

Director, shall administer the implementation of agency information 

security policies and practices for information systems, except for 

national security systems and information systems described in 

paragraph (2) or (3) of subsection (e), including— 
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‘‘(1) assisting the Director in carrying out the authorities 

and functions under paragraphs (1), (2), (3), (5), and (6) of 

subsection (a); 

‘‘(2) developing and overseeing the implementation of 

binding operational directives to agencies to implement the 

policies, principles, standards, and guidelines developed by the 

Director under subsection (a)(1) and the requirements of this 

subchapter, which may be revised or repealed by the Director 

if the operational directives issued on behalf of the Director 

are not in accordance with policies, principles, standards, and 

guidelines developed by the Director, including— 

‘‘(A) requirements for reporting security incidents to 

the Federal information security incident center established 

under section 3556; 

‘‘(B) requirements for the contents of the annual reports 

required to be submitted under section 3554(c)(1); 

‘‘(C) requirements for the mitigation of exigent risks 

to information systems; and 

‘‘(D) other operational requirements as the Director 

or Secretary, in consultation with the Director, may determine necessary; 

‘‘(3) monitoring agency implementation of information security policies and practices; 

‘‘(4) convening meetings with senior agency officials to help 

ensure effective implementation of information security policies 

and practices; 

‘‘(5) coordinating Government-wide efforts on information 

security policies and practices, including consultation with the 

Chief Information Officers Council established under section 

3603 and the Director of the National Institute of Standards 

and Technology; 

‘‘(6) providing operational and technical assistance to agencies in implementing policies, principles, standards, and guidelines on information security, including implementation of 

standards promulgated under section 11331 of title 40, 

including by— 

‘‘(A) operating the Federal information security 

incident center established under section 3556; 

‘‘(B) upon request by an agency, deploying technology 

to assist the agency to continuously diagnose and mitigate 

against cyber threats and vulnerabilities, with or without 

reimbursement; 

‘‘(C) compiling and analyzing data on agency information security; and 

‘‘(D) developing and conducting targeted operational 

evaluations, including threat and vulnerability assessments, on the information systems; and 

‘‘(7) other actions as the Director or the Secretary, in consultation with the Director, may determine necessary to carry 

out this subsection. 

‘‘(c) REPORT.—Not later than March 1 of each year, the Director, 

in consultation with the Secretary, shall submit to Congress a 

report on the effectiveness of information security policies and practices during the preceding year, including— 

‘‘(1) a summary of the incidents described in the annual 

reports required to be submitted under section 3554(c)(1), 
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including a summary of the information required under section 

3554(c)(1)(A)(iii); 

‘‘(2) a description of the threshold for reporting major 

information security incidents; 

‘‘(3) a summary of the results of evaluations required to 

be performed under section 3555; 

‘‘(4) an assessment of agency compliance with standards 

promulgated under section 11331 of title 40; and 

‘‘(5) an assessment of agency compliance with data breach 

notification policies and procedures issued by the Director. 

‘‘(d) NATIONAL SECURITY SYSTEMS.—Except for the authorities 

and functions described in subsection (a)(5) and subsection (c), 

the authorities and functions of the Director and the Secretary 

under this section shall not apply to national security systems. 

‘‘(e) DEPARTMENT OF DEFENSE AND INTELLIGENCE COMMUNITY

SYSTEMS.—(1) The authorities of the Director described in paragraphs (1) and (2) of subsection (a) shall be delegated to the Secretary of Defense in the case of systems described in paragraph 

(2) and to the Director of National Intelligence in the case of 

systems described in paragraph (3). 

‘‘(2) The systems described in this paragraph are systems that 

are operated by the Department of Defense, a contractor of the 

Department of Defense, or another entity on behalf of the Department of Defense that processes any information the unauthorized 

access, use, disclosure, disruption, modification, or destruction of 

which would have a debilitating impact on the mission of the 

Department of Defense. 

‘‘(3) The systems described in this paragraph are systems that 

are operated by an element of the intelligence community, a contractor of an element of the intelligence community, or another 

entity on behalf of an element of the intelligence community that 

processes any information the unauthorized access, use, disclosure, 

disruption, modification, or destruction of which would have a debilitating impact on the mission of an element of the intelligence 

community. 

‘‘(f) CONSIDERATION.— 

‘‘(1) IN GENERAL.—In carrying out the responsibilities under 

subsection (b), the Secretary shall consider any applicable 

standards or guidelines developed by the National Institute 

of Standards and Technology and issued by the Secretary of 

Commerce under section 11331 of title 40. 

‘‘(2) DIRECTIVES.—The Secretary shall— 

‘‘(A) consult with the Director of the National Institute 

of Standards and Technology regarding any binding operational directive that implements standards and guidelines 

developed by the National Institute of Standards and Technology; and 

‘‘(B) ensure that binding operational directives issued 

under subsection (b)(2) do not conflict with the standards 

and guidelines issued under section 11331 of title 40. 

‘‘(3) RULE OF CONSTRUCTION.—Nothing in this subchapter 

shall be construed as authorizing the Secretary to direct the 

Secretary of Commerce in the development and promulgation 

of standards and guidelines under section 11331 of title 40. 

‘‘(g) EXERCISE OF AUTHORITY.—To ensure fiscal and policy 

consistency, the Secretary shall exercise the authority under this 
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section subject to direction by the President, in coordination with 

the Director. 

‘‘§ 3554. Federal agency responsibilities 

‘‘(a) IN GENERAL.—The head of each agency shall— 

‘‘(1) be responsible for— 

‘‘(A) providing information security protections 

commensurate with the risk and magnitude of the harm 

resulting from unauthorized access, use, disclosure, disruption, modification, or destruction of— 

‘‘(i) information collected or maintained by or on 

behalf of the agency; and 

‘‘(ii) information systems used or operated by an 

agency or by a contractor of an agency or other 

organization on behalf of an agency; 

‘‘(B) complying with the requirements of this subchapter and related policies, procedures, standards, and 

guidelines, including— 

‘‘(i) information security standards promulgated 

under section 11331 of title 40; 

‘‘(ii) operational directives developed by the Secretary under section 3553(b); 

‘‘(iii) policies and procedures issued by the Director; 

and 

‘‘(iv) information security standards and guidelines 

for national security systems issued in accordance with 

law and as directed by the President; and 

‘‘(C) ensuring that information security management 

processes are integrated with agency strategic, operational, 

and budgetary planning processes; 

‘‘(2) ensure that senior agency officials provide information 

security for the information and information systems that support the operations and assets under their control, including 

through— 

‘‘(A) assessing the risk and magnitude of the harm 

that could result from the unauthorized access, use, disclosure, disruption, modification, or destruction of such 

information or information systems; 

‘‘(B) determining the levels of information security 

appropriate to protect such information and information 

systems in accordance with standards promulgated under 

section 11331 of title 40, for information security classifications and related requirements; 

‘‘(C) implementing policies and procedures to cost-effectively reduce risks to an acceptable level; and 

‘‘(D) periodically testing and evaluating information 

security controls and techniques to ensure that they are 

effectively implemented; 

‘‘(3) delegate to the agency Chief Information Officer established under section 3506 (or comparable official in an agency 

not covered by such section) the authority to ensure compliance 

with the requirements imposed on the agency under this subchapter, including— 

‘‘(A) designating a senior agency information security 

officer who shall— 

‘‘(i) carry out the Chief Information Officer’s 

responsibilities under this section; 
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‘‘(ii) possess professional qualifications, including 

training and experience, required to administer the 

functions described under this section; 

‘‘(iii) have information security duties as that official’s primary duty; and 

‘‘(iv) head an office with the mission and resources 

to assist in ensuring agency compliance with this section; 

‘‘(B) developing and maintaining an agencywide 

information security program as required by subsection 

(b); 

‘‘(C) developing and maintaining information security 

policies, procedures, and control techniques to address all 

applicable requirements, including those issued under section 3553 of this title and section 11331 of title 40; 

‘‘(D) training and overseeing personnel with significant 

responsibilities for information security with respect to 

such responsibilities; and 

‘‘(E) assisting senior agency officials concerning their 

responsibilities under paragraph (2); 

‘‘(4) ensure that the agency has trained personnel sufficient 

to assist the agency in complying with the requirements of 

this subchapter and related policies, procedures, standards, 

and guidelines; 

‘‘(5) ensure that the agency Chief Information Officer, in 

coordination with other senior agency officials, reports annually 

to the agency head on the effectiveness of the agency information security program, including progress of remedial actions; 

‘‘(6) ensure that senior agency officials, including chief 

information officers of component agencies or equivalent officials, carry out responsibilities under this subchapter as 

directed by the official delegated authority under paragraph 

(3); and 

‘‘(7) ensure that all personnel are held accountable for 

complying with the agency-wide information security program 

implemented under subsection (b). 

‘‘(b) AGENCY PROGRAM.—Each agency shall develop, document, 

and implement an agency-wide information security program to 

provide information security for the information and information 

systems that support the operations and assets of the agency, 

including those provided or managed by another agency, contractor, 

or other source, that includes— 

‘‘(1) periodic assessments of the risk and magnitude of 

the harm that could result from the unauthorized access, use, 

disclosure, disruption, modification, or destruction of information and information systems that support the operations and 

assets of the agency, which may include using automated tools 

consistent with standards and guidelines promulgated under 

section 11331 of title 40; 

‘‘(2) policies and procedures that— 

‘‘(A) are based on the risk assessments required by 

paragraph (1); 

‘‘(B) cost-effectively reduce information security risks 

to an acceptable level; 

‘‘(C) ensure that information security is addressed 

throughout the life cycle of each agency information system; 

and 
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‘‘(D) ensure compliance with— 

‘‘(i) the requirements of this subchapter; 

‘‘(ii) policies and procedures as may be prescribed 

by the Director, and information security standards 

promulgated under section 11331 of title 40; 

‘‘(iii) minimally acceptable system configuration 

requirements, as determined by the agency; and 

‘‘(iv) any other applicable requirements, including 

standards and guidelines for national security systems 

issued in accordance with law and as directed by the 

President; 

‘‘(3) subordinate plans for providing adequate information 

security for networks, facilities, and systems or groups of 

information systems, as appropriate; 

‘‘(4) security awareness training to inform personnel, 

including contractors and other users of information systems 

that support the operations and assets of the agency, of— 

‘‘(A) information security risks associated with their 

activities; and 

‘‘(B) their responsibilities in complying with agency 

policies and procedures designed to reduce these risks; 

‘‘(5) periodic testing and evaluation of the effectiveness 

of information security policies, procedures, and practices, to 

be performed with a frequency depending on risk, but no less 

than annually, of which such testing— 

‘‘(A) shall include testing of management, operational, 

and technical controls of every information system identified in the inventory required under section 3505(c); 

‘‘(B) may include testing relied on in an evaluation 

under section 3555; and 

‘‘(C) shall include using automated tools, consistent 

with standards and guidelines promulgated under section 

11331 of title 40; 

‘‘(6) a process for planning, implementing, evaluating, and 

documenting remedial action to address any deficiencies in 

the information security policies, procedures, and practices of 

the agency; 

‘‘(7) procedures for detecting, reporting, and responding 

to security incidents, which— 

‘‘(A) shall be consistent with the standards and guidelines described in section 3556(b); 

‘‘(B) may include using automated tools; and 

‘‘(C) shall include— 

‘‘(i) mitigating risks associated with such incidents 

before substantial damage is done; 

‘‘(ii) notifying and consulting with the Federal 

information security incident center established in section 3556; and 

‘‘(iii) notifying and consulting with, as appropriate— 

‘‘(I) law enforcement agencies and relevant 

Offices of Inspector General and Offices of General 

Counsel; 

‘‘(II) an office designated by the President for 

any incident involving a national security system; 

‘‘(III) for a major incident, the committees of 

Congress described in subsection (c)(1)— 
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‘‘(aa) not later than 7 days after the date 

on which there is a reasonable basis to conclude that the major incident has occurred; 

and 

‘‘(bb) after the initial notification under 

item (aa), within a reasonable period of time 

after additional information relating to the 

incident is discovered, including the summary 

required under subsection (c)(1)(A)(i); and 

‘‘(IV) any other agency or office, in accordance 

with law or as directed by the President; and 

‘‘(8) plans and procedures to ensure continuity of operations 

for information systems that support the operations and assets 

of the agency. 

‘‘(c) AGENCY REPORTING.— 

‘‘(1) ANNUAL REPORT.— 

‘‘(A) IN GENERAL.—Each agency shall submit to the 

Director, the Secretary, the Committee on Government 

Reform, the Committee on Homeland Security, and the 

Committee on Science of the House of Representatives, 

the Committee on Homeland Security and Governmental 

Affairs and the Committee on Commerce, Science, and 

Transportation of the Senate, the appropriate authorization 

and appropriations committees of Congress, and the Comptroller General a report on the adequacy and effectiveness 

of information security policies, procedures, and practices, 

including— 

‘‘(i) a description of each major information security 

incident or related sets of incidents, including summaries of— 

‘‘(I) the threats and threat actors, 

vulnerabilities, and impacts relating to the 

incident; 

‘‘(II) the risk assessments conducted under section 3554(a)(2)(A) of the affected information systems before the date on which the incident 

occurred; 

‘‘(III) the status of compliance of the affected 

information systems with applicable security 

requirements at the time of the incident; and 

‘‘(IV) the detection, response, and remediation 

actions; 

‘‘(ii) the total number of information security 

incidents, including a description of incidents resulting 

in significant compromise of information security, 

system impact levels, types of incident, and locations 

of affected systems; 

‘‘(iii) a description of each major information security incident that involved a breach of personally 

identifiable information, as defined by the Director, 

including— 

‘‘(I) the number of individuals whose information was affected by the major information security 

incident; and 

‘‘(II) a description of the information that was 

breached or exposed; and 
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‘‘(iv) any other information as the Director or the 

Secretary, in consultation with the Director, may 

require. 

‘‘(B) UNCLASSIFIED REPORT.— 

‘‘(i) IN GENERAL.—Each report submitted under 

subparagraph (A) shall be in unclassified form, but 

may include a classified annex. 

‘‘(ii) ACCESS TO INFORMATION.—The head of an 

agency shall ensure that, to the greatest extent practicable, information is included in the unclassified 

version of the reports submitted by the agency under 

subparagraph (A). 

‘‘(2) OTHER PLANS AND REPORTS.—Each agency shall 

address the adequacy and effectiveness of information security 

policies, procedures, and practices in management plans and 

reports. 

‘‘(d) PERFORMANCE PLAN.—(1) In addition to the requirements 

of subsection (c), each agency, in consultation with the Director, 

shall include as part of the performance plan required under section 

1115 of title 31 a description of— 

‘‘(A) the time periods; and 

‘‘(B) the resources, including budget, staffing, and training, 

that are necessary to implement the program required under subsection (b). 

‘‘(2) The description under paragraph (1) shall be based on 

the risk assessments required under subsection (b)(1). 

‘‘(e) PUBLIC NOTICE AND COMMENT.—Each agency shall provide 

the public with timely notice and opportunities for comment on 

proposed information security policies and procedures to the extent 

that such policies and procedures affect communication with the 

public. 

‘‘§ 3555. Annual independent evaluation 

‘‘(a) IN GENERAL.—(1) Each year each agency shall have performed an independent evaluation of the information security program and practices of that agency to determine the effectiveness 

of such program and practices. 

‘‘(2) Each evaluation under this section shall include— 

‘‘(A) testing of the effectiveness of information security 

policies, procedures, and practices of a representative subset 

of the agency’s information systems; 

‘‘(B) an assessment of the effectiveness of the information 

security policies, procedures, and practices of the agency; and 

‘‘(C) separate presentations, as appropriate, regarding 

information security relating to national security systems. 

‘‘(b) INDEPENDENT AUDITOR.—Subject to subsection (c)— 

‘‘(1) for each agency with an Inspector General appointed 

under the Inspector General Act of 1978, the annual evaluation 

required by this section shall be performed by the Inspector 

General or by an independent external auditor, as determined 

by the Inspector General of the agency; and 

‘‘(2) for each agency to which paragraph (1) does not apply, 

the head of the agency shall engage an independent external 

auditor to perform the evaluation. 

‘‘(c) NATIONAL SECURITY SYSTEMS.—For each agency operating 

or exercising control of a national security system, that portion 
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of the evaluation required by this section directly relating to a 

national security system shall be performed— 

‘‘(1) only by an entity designated by the agency head; 

and 

‘‘(2) in such a manner as to ensure appropriate protection 

for information associated with any information security vulnerability in such system commensurate with the risk and in 

accordance with all applicable laws. 

‘‘(d) EXISTING EVALUATIONS.—The evaluation required by this 

section may be based in whole or in part on an audit, evaluation, 

or report relating to programs or practices of the applicable agency. 

‘‘(e) AGENCY REPORTING.—(1) Each year, not later than such 

date established by the Director, the head of each agency shall 

submit to the Director the results of the evaluation required under 

this section. 

‘‘(2) To the extent an evaluation required under this section 

directly relates to a national security system, the evaluation results 

submitted to the Director shall contain only a summary and assessment of that portion of the evaluation directly relating to a national 

security system. 

‘‘(f) PROTECTION OF INFORMATION.—Agencies and evaluators 

shall take appropriate steps to ensure the protection of information 

which, if disclosed, may adversely affect information security. Such 

protections shall be commensurate with the risk and comply with 

all applicable laws and regulations. 

‘‘(g) OMB REPORTS TO CONGRESS.—(1) The Director shall 

summarize the results of the evaluations conducted under this 

section in the report to Congress required under section 3553(c). 

‘‘(2) The Director’s report to Congress under this subsection 

shall summarize information regarding information security 

relating to national security systems in such a manner as to ensure 

appropriate protection for information associated with any information security vulnerability in such system commensurate with the 

risk and in accordance with all applicable laws. 

‘‘(3) Evaluations and any other descriptions of information systems under the authority and control of the Director of National 

Intelligence or of National Foreign Intelligence Programs systems 

under the authority and control of the Secretary of Defense shall 

be made available to Congress only through the appropriate oversight committees of Congress, in accordance with applicable laws. 

‘‘(h) COMPTROLLER GENERAL.—The Comptroller General shall 

periodically evaluate and report to Congress on— 

‘‘(1) the adequacy and effectiveness of agency information 

security policies and practices; and 

‘‘(2) implementation of the requirements of this subchapter. 

‘‘(i) ASSESSMENT TECHNICAL ASSISTANCE.—The Comptroller 

General may provide technical assistance to an Inspector General 

or the head of an agency, as applicable, to assist the Inspector 

General or head of an agency in carrying out the duties under 

this section, including by testing information security controls and 

procedures. 

‘‘(j) GUIDANCE.—The Director, in consultation with the Secretary, the Chief Information Officers Council established under 

section 3603, the Council of the Inspectors General on Integrity 

and Efficiency, and other interested parties as appropriate, shall 

ensure the development of guidance for evaluating the effectiveness 

of an information security program and practices. 
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‘‘§ 3556. Federal information security incident center 

‘‘(a) IN GENERAL.—The Secretary shall ensure the operation 

of a central Federal information security incident center to— 

‘‘(1) provide timely technical assistance to operators of 

agency information systems regarding security incidents, 

including guidance on detecting and handling information security incidents; 

‘‘(2) compile and analyze information about incidents that 

threaten information security; 

‘‘(3) inform operators of agency information systems about 

current and potential information security threats, and 

vulnerabilities; 

‘‘(4) provide, as appropriate, intelligence and other information about cyber threats, vulnerabilities, and incidents to agencies to assist in risk assessments conducted under section 

3554(b); and 

‘‘(5) consult with the National Institute of Standards and 

Technology, agencies or offices operating or exercising control 

of national security systems (including the National Security 

Agency), and such other agencies or offices in accordance with 

law and as directed by the President regarding information 

security incidents and related matters. 

‘‘(b) NATIONAL SECURITY SYSTEMS.—Each agency operating or 

exercising control of a national security system shall share information about information security incidents, threats, and 

vulnerabilities with the Federal information security incident center 

to the extent consistent with standards and guidelines for national 

security systems, issued in accordance with law and as directed 

by the President. 

‘‘§ 3557. National security systems 

‘‘The head of each agency operating or exercising control of 

a national security system shall be responsible for ensuring that 

the agency— 

‘‘(1) provides information security protections commensurate with the risk and magnitude of the harm resulting from 

the unauthorized access, use, disclosure, disruption, modification, or destruction of the information contained in such system; 

‘‘(2) implements information security policies and practices 

as required by standards and guidelines for national security 

systems, issued in accordance with law and as directed by 

the President; and 

‘‘(3) complies with the requirements of this subchapter. 

‘‘§ 3558. Effect on existing law 

‘‘Nothing in this subchapter, section 11331 of title 40, or section 

20 of the National Standards and Technology Act (15 U.S.C. 278g– 

3) may be construed as affecting the authority of the President, 

the Office of Management and Budget or the Director thereof, 

the National Institute of Standards and Technology, or the head 

of any agency, with respect to the authorized use or disclosure 

of information, including with regard to the protection of personal 

privacy under section 552a of title 5, the disclosure of information 

under section 552 of title 5, the management and disposition of 

records under chapters 29, 31, or 33 of title 44, the management 

of information resources under subchapter I of chapter 35 of this 
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title, or the disclosure of information to the Congress or the Comptroller General of the United States.’’. 

(b) MAJOR INCIDENT.—The Director of the Office of Management 

and Budget shall— 

(1) develop guidance on what constitutes a major incident 

for purposes of section 3554(b) of title 44, United States Code, 

as added by subsection (a); and 

(2) provide to Congress periodic briefings on the status 

of the developing of the guidance until the date on which 

the guidance is issued. 

(c) CONTINUOUS DIAGNOSTICS.—During the 2 year period beginning on the date of enactment of this Act, the Director of the 

Office of Management and Budget, with the assistance of the Secretary of Homeland Security, shall include in each report submitted 

under section 3553(c) of title 44, United States Code, as added 

by subsection (a), an assessment of the adoption by agencies of 

continuous diagnostics technologies, including through the Continuous Diagnostics and Mitigation program, and other advanced security tools to provide information security, including challenges to 

the adoption of such technologies or security tools. 

(d) BREACHES.— 

(1) REQUIREMENTS.—The Director of the Office of Management and Budget shall ensure that data breach notification 

policies and guidelines are updated periodically and require— 

(A) except as provided in paragraph (4), notice by the 

affected agency to each committee of Congress described 

in section 3554(c)(1) of title 44, United States Code, as 

added by subsection (a), the Committee on the Judiciary 

of the Senate, and the Committee on the Judiciary of 

the House of Representatives, which shall— 

(i) be provided expeditiously and not later than 

30 days after the date on which the agency discovered 

the unauthorized acquisition or access; and 

(ii) include— 

(I) information about the breach, including a 

summary of any information that the agency 

knows on the date on which notification is provided 

about how the breach occurred; 

(II) an estimate of the number of individuals 

affected by the breach, based on information that 

the agency knows on the date on which notification 

is provided, including an assessment of the risk 

of harm to affected individuals; 

(III) a description of any circumstances necessitating a delay in providing notice to affected 

individuals; and 

(IV) an estimate of whether and when the 

agency will provide notice to affected individuals; 

and 

(B) notice by the affected agency to affected individuals, 

pursuant to data breach notification policies and guidelines, 

which shall be provided as expeditiously as practicable 

and without unreasonable delay after the agency discovers 

the unauthorized acquisition or access. 

(2) NATIONAL SECURITY; LAW ENFORCEMENT; REMEDI- ATION.—The Attorney General, the head of an element of the 

intelligence community (as such term is defined under section 
S. 2521—14 

3(4) of the National Security Act of 1947 (50 U.S.C. 3003(4)), 

or the Secretary of Homeland Security may delay the notice 

to affected individuals under paragraph (1)(B) if the notice 

would disrupt a law enforcement investigation, endanger 

national security, or hamper security remediation actions. 

(3) REPORTS.— (A) DIRECTOR OF OMB.—During the first 2 years beginning after the date of enactment of this Act, the Director 

of the Office of Management and Budget shall, on an 

annual basis— 

(i) assess agency implementation of data breach 

notification policies and guidelines in aggregate; and 

(ii) include the assessment described in clause (i) 

in the report required under section 3553(c) of title 

44, United States Code. 

(B) SECRETARY OF HOMELAND SECURITY.—During the 

first 2 years beginning after the date of enactment of 

this Act, the Secretary of Homeland Security shall include 

an assessment of the status of agency implementation of 

data breach notification policies and guidelines in the 

requirements under section 3553(b)(2)(B) of title 44, United 

States Code. 

(4) EXCEPTION.—Any element of the intelligence community 

(as such term is defined under section 3(4) of the National 

Security Act of 1947 (50 U.S.C. 3003(4)) that is required to 

provide notice under paragraph (1)(A) shall only provide such 

notice to appropriate committees of Congress. 

(5) RULE OF CONSTRUCTION.—Nothing in paragraph (1) 

shall be construed to alter any authority of a Federal agency 

or department. 

(e) TECHNICAL AND CONFORMING AMENDMENTS.— (1) TABLE OF SECTIONS.—The table of sections for chapter 

35 of title 44, United States Code is amended by striking 

the matter relating to subchapters II and III and inserting 

the following: 

‘‘SUBCHAPTER II—INFORMATION SECURITY

‘‘3551. Purposes. 

‘‘3552. Definitions. 

‘‘3553. Authority and functions of the Director and the Secretary. 

‘‘3554. Federal agency responsibilities. 

‘‘3555. Annual independent evaluation. 

‘‘3556. Federal information security incident center. 

‘‘3557. National security systems. 

‘‘3558. Effect on existing law.’’. 

(2) CYBERSECURITY RESEARCH AND DEVELOPMENT ACT.— 

Section 8(d)(1) of the Cybersecurity Research and Development 

Act (15 U.S.C. 7406) is amended by striking ‘‘section 3534’’ 

and inserting ‘‘section 3554’’. 

(3) HOMELAND SECURITY ACT OF 2002.—The Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended— 

(A) in section 223 (6 U.S.C. 143) 

(i) in the section heading, by inserting ‘‘FEDERAL

AND’’ before ‘‘NON-FEDERAL’’; 

(ii) in the matter preceding paragraph (1), by 

striking ‘‘the Under Secretary for Intelligence and 

Analysis, in cooperation with the Assistant Secretary 

for Infrastructure Protection’’ and inserting ‘‘the Under 

Secretary appointed under section 103(a)(1)(H)’’; 
S. 2521—15 

(iii) in paragraph (2), by striking the period at 

the end and inserting ‘‘; and’’; and 

(iv) by adding at the end the following: 

‘‘(3) fulfill the responsibilities of the Secretary to protect 

Federal information systems under subchapter II of chapter 

35 of title 44, United States Code.’’; 

(B) in section 1001(c)(1)(A) (6 U.S.C. 511(c)(1)(A)), by 

striking ‘‘section 3532(3)’’ and inserting ‘‘section 3552(b)(5)’’; 

and 

(C) in the table of contents in section 1(b), by striking 

the item relating to section 223 and inserting the following: 

‘‘Sec. 223. Enhancement of Federal and non-Federal cybersecurity.’’. 

(4) NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

ACT.—Section 20 of the National Institute of Standards and 

Technology Act (15 U.S.C. 278g–3) is amended— 

(A) in subsection (a)(2), by striking ‘‘section 3532(b)(2)’’ 

and inserting ‘‘section 3552(b)(5)’’; and 

(B) in subsection (e)— 

(i) in paragraph (2), by striking ‘‘section 3532(1)’’ 

and inserting ‘‘section 3552(b)(2)’’; and 

(ii) in paragraph (5), by striking ‘‘section 

3532(b)(2)’’ and inserting ‘‘section 3552(b)(5)’’. 

(5) TITLE 10.—Title 10, United States Code, is amended— 

(A) in section 2222(j)(5), by striking ‘‘section 3542(b)(2)’’ 

and inserting ‘‘section 3552(b)(5)’’; 

(B) in section 2223(c)(3), by striking ‘‘section 3542(b)(2)’’ 

and inserting ‘‘section 3552(b)(5)’’; and 

(C) in section 2315, by striking ‘‘section 3542(b)(2)’’ 

and inserting ‘‘section 3552(b)(5)’’. 

(f) OTHER PROVISIONS.— 

(1) CIRCULAR A–130.—Not later than 1 year after the date 

of enactment of this Act, the Director of the Office of Management and Budget shall amend or revise Office of Management 

and Budget Circular A–130 to eliminate inefficient or wasteful 

reporting. The Director of the Office of Management and Budget 

shall provide quarterly briefings to Congress on the status 

of the amendment or revision required under this paragraph. 

(2) ISPAB.—Section 21(b) of the National Institute of 

Standards and Technology Act (15 U.S.C. 278g–4(b)) is 

amended— 

(A) in paragraph (2), by inserting ‘‘, the Secretary 

of Homeland Security,’’ after ‘‘the Institute’’; and 
S. 2521—16 

(B) in paragraph (3), by inserting ‘‘the Secretary of 

Homeland Security,’’ after ‘‘the Secretary of Commerce,’’. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.