H. R. 2458—50
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) coordinating the development of standards and guide-
lines 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 max-
imum extent feasible, that such standards and guidelines are
complementary with standards and guidelines developed for
national security systems;
‘‘(4) 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;
‘‘(5) reviewing at least annually, and approving or dis-
approving, agency information security programs required
under section 3544(b);
‘‘(6) coordinating information security policies and proce-
dures with related information resources management policies
and procedures;
‘‘(7) overseeing the operation of the Federal information
security incident center required under section 3546; and
‘‘(8) reporting to Congress no later than March 1 of each
year on agency compliance with the requirements of this sub-
chapter, including—
‘‘(A) a summary of the findings of evaluations required
by section 3545;
‘‘(B) an assessment of the development, promulgation,
and adoption of, and compliance with, standards developed
under section 20 of the National Institute of Standards
and Technology Act (15 U.S.C. 278g-3) and promulgated
under section 11331 of title 40;
‘‘(C) significant deficiencies in agency information secu-
rity practices;
‘‘(D) planned remedial action to address such defi-
ciencies; and
‘‘(E) a summary of, and the views of the Director on,
the report prepared by the National Institute of Standards
and Technology under section 20(d)(10) of the National
Institute of Standards and Technology Act (15 U.S.C. 278g–
3).
‘‘(b) NATIONAL SECURITY SYSTEMS.—Except for the authorities
described in paragraphs (4) and (8) of subsection (a), the authorities
of the Director under this section shall not apply to national security
systems.
‘‘(c) DEPARTMENT
OF DEFENSE
AND CENTRAL INTELLIGENCE
AGENCY 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 para-
graph (2) and to the Director of Central Intelligence in the case
of systems described in paragraph (3).
H. R. 2458—51
‘‘(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 Depart-
ment 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 the Central Intelligence Agency, a contractor of
the Central Intelligence Agency, or another entity on behalf of
the Central Intelligence Agency 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 Central Intelligence Agency.
‘‘§ 3544. 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, disrup-
tion, 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 sub-
chapter and related policies, procedures, standards, and
guidelines, including—
‘‘(i) information security standards promulgated
under section 11331 of title 40; and
‘‘(ii) 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 and oper-
ational planning processes;
‘‘(2) ensure that senior agency officials provide information
security for the information and information systems that sup-
port 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, disclo-
sure, 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 classifica-
tions and related requirements;
‘‘(C) implementing policies and procedures to cost-effec-
tively reduce risks to an acceptable level; and
‘‘(D) periodically testing and evaluating information
security controls and techniques to ensure that they are
effectively implemented;
H. R. 2458—52
‘‘(3) delegate to the agency Chief Information Officer estab-
lished 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 sub-
chapter, including—
‘‘(A) designating a senior agency information security
officer who shall—
‘‘(i) carry out the Chief Information Officer’s
responsibilities under this section;
‘‘(ii) possess professional qualifications, including
training and experience, required to administer the
functions described under this section;
‘‘(iii) have information security duties as that offi-
cial’s primary duty; and
‘‘(iv) head an office with the mission and resources
to assist in ensuring agency compliance with this sec-
tion;
‘‘(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 sec-
tion 3543 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; and
‘‘(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 informa-
tion security program, including progress of remedial actions.
‘‘(b) AGENCY PROGRAM.—Each agency shall develop, document,
and implement an agencywide information security program,
approved by the Director under section 3543(a)(5), 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 informa-
tion and information systems that support the operations and
assets of the agency;
‘‘(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
H. R. 2458—53
‘‘(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 identi-
fied in the inventory required under section 3505(c); and
‘‘(B) may include testing relied on in a evaluation under
section 3545;
‘‘(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, consistent with standards and guidelines
issued pursuant to section 3546(b), including—
‘‘(A) mitigating risks associated with such incidents
before substantial damage is done;
‘‘(B) notifying and consulting with the Federal informa-
tion security incident center referred to in section 3546;
and
‘‘(C) notifying and consulting with, as appropriate—
‘‘(i) law enforcement agencies and relevant Offices
of Inspector General;
‘‘(ii) an office designated by the President for any
incident involving a national security system; and
‘‘(iii) 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.—Each agency shall—
‘‘(1) report annually to the Director, the Committees on
Government Reform and Science of the House of Representa-
tives, the Committees on Governmental Affairs and Commerce,
Science, and Transportation of the Senate, the appropriate
H. R. 2458—54
authorization and appropriations committees of Congress, and
the Comptroller General on the adequacy and effectiveness
of information security policies, procedures, and practices, and
compliance with the requirements of this subchapter, including
compliance with each requirement of subsection (b);
‘‘(2) address the adequacy and effectiveness of information
security policies, procedures, and practices in plans and reports
relating to—
‘‘(A) annual agency budgets;
‘‘(B) information resources management under sub-
chapter 1 of this chapter;
‘‘(C) information technology management under sub-
title III of title 40;
‘‘(D) program performance under sections 1105 and
1115 through 1119 of title 31, and sections 2801 and 2805
of title 39;
‘‘(E) financial management under chapter 9 of title
31, and the Chief Financial Officers Act of 1990 (31 U.S.C.
501 note; Public Law 101–576) (and the amendments made
by that Act);
‘‘(F) financial management systems under the Federal
Financial Management Improvement Act (31 U.S.C. 3512
note); and
‘‘(G) internal accounting and administrative controls
under section 3512 of title 31, (known as the ‘Federal
Managers Financial Integrity Act’); and
‘‘(3) report any significant deficiency in a policy, procedure,
or practice identified under paragraph (1) or (2)—
‘‘(A) as a material weakness in reporting under section
3512 of title 31; and
‘‘(B) if relating to financial management systems, as
an instance of a lack of substantial compliance under the
Federal Financial Management Improvement Act (31
U.S.C. 3512 note).
‘‘(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 sub-
section (b).
‘‘(2) The description under paragraph (1) shall be based on
the risk assessments required under subsection (b)(2)(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.
‘‘§ 3545. Annual independent evaluation
‘‘(a) IN GENERAL.—(1) Each year each agency shall have per-
formed an independent evaluation of the information security pro-
gram and practices of that agency to determine the effectiveness
of such program and practices.
‘‘(2) Each evaluation under this section shall include—
H. R. 2458—55
‘‘(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 (made on the basis of the results of
the testing) of compliance with—
‘‘(i) the requirements of this subchapter; and
‘‘(ii) related information security policies, procedures,
standards, and guidelines; 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
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 vulner-
ability 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 assess-
ment 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 3543(a)(8).
‘‘(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 informa-
tion security vulnerability in such system commensurate with the
risk and in accordance with all applicable laws.
‘‘(3) Evaluations and any other descriptions of information sys-
tems under the authority and control of the Director of Central
H. R. 2458—56
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 over-
sight 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.
‘‘§ 3546. Federal information security incident center
‘‘(a) IN GENERAL.—The Director 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 secu-
rity 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; and
‘‘(4) 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 informa-
tion 
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.
‘‘§ 3547. 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 commensu-
rate with the risk and magnitude of the harm resulting from
the unauthorized access, use, disclosure, disruption, modifica-
tion, 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.
‘‘§ 3548. Authorization of appropriations
‘‘There are authorized to be appropriated to carry out the
provisions of this subchapter such sums as may be necessary for
each of fiscal years 2003 through 2007.
H. R. 2458—57
‘‘§ 3549. 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
title, or the disclosure of information to the Congress or the Comp-
troller General of the United States. While this subchapter is in
effect, subchapter II of this chapter shall not apply.’’.
(2) CLERICAL AMENDMENT.—The table of sections at the
beginning of such chapter 35 is amended by adding at the
end the following:
‘‘SUBCHAPTER III—INFORMATION SECURITY
‘‘Sec.
‘‘3541. Purposes.
‘‘3542. Definitions.
‘‘3543. Authority and functions of the Director.
‘‘3544. Federal agency responsibilities.
‘‘3545. Annual independent evaluation.
‘‘3546. Federal information security incident center.
‘‘3547. National security systems.
‘‘3548. Authorization of appropriations.
‘‘3549. Effect on existing law.’’.
(c) INFORMATION SECURITY RESPONSIBILITIES OF CERTAIN AGEN-
CIES.—
(1) NATIONAL SECURITY RESPONSIBILITIES.—(A) Nothing in
this Act (including any amendment made by this Act) shall
supersede any authority of the Secretary of Defense, the
Director of Central Intelligence, or other agency head, as
authorized by law and as directed by the President, with regard
to the operation, control, or management of national security
systems, as defined by section 3542(b)(2) of title 44, United
States Code.
(B) Section 2224 of title 10, United States Code, is
amended—
(i) in subsection (b), by striking ‘‘(b) OBJECTIVES AND
MINIMUM REQUIREMENTS.—(1)’’ and inserting ‘‘(b) OBJEC-
TIVES OF THE PROGRAM.—’’;
(ii) in subsection (b), by striking paragraph (2); and
(iii) in subsection (c), in the matter preceding para-
graph (1), by inserting ‘‘, including through compliance
with subchapter III of chapter 35 of title 44’’ after ‘‘infra-
structure’’.
(2) ATOMIC ENERGY ACT OF 1954.—Nothing in this Act shall
supersede any requirement made by or under the Atomic
Energy Act of 1954 (42 U.S.C. 2011 et seq.). Restricted data
or formerly restricted data shall be handled, protected, classi-
fied, downgraded, and declassified in conformity with the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
H. R. 2458—58
SEC. 302. MANAGEMENT OF INFORMATION TECHNOLOGY.
(a) IN GENERAL.—Section 11331 of title 40, United States Code,
is amended to read as follows:
‘‘§ 11331. Responsibilities for Federal information systems
standards
‘‘(a) STANDARDS AND GUIDELINES.—
‘‘(1) AUTHORITY TO PRESCRIBE.—Except as provided under
paragraph (2), the Secretary of Commerce shall, on the basis
of standards and guidelines developed by the National Institute
of Standards and Technology pursuant to paragraphs (2) and
(3) of section 20(a) of the National Institute of Standards and
Technology Act (15 U.S.C. 278g–3(a)), prescribe standards and
guidelines pertaining to Federal information systems.
‘‘(2) NATIONAL SECURITY SYSTEMS.—Standards and guide-
lines for national security systems (as defined under this sec-
tion) shall be developed, prescribed, enforced, and overseen
as otherwise authorized by law and as directed by the Presi-
dent.
‘‘(b) MANDATORY REQUIREMENTS.—
‘‘(1) AUTHORITY TO MAKE MANDATORY.—Except as provided
under paragraph (2), the Secretary shall make standards pre-
scribed under subsection (a)(1) compulsory and binding to the
extent determined necessary by the Secretary to improve the
efficiency of operation or security of Federal information sys-
tems.
‘‘(2) REQUIRED MANDATORY STANDARDS.—(A) Standards pre-
scribed under subsection (a)(1) shall include information secu-
rity standards that—
‘‘(i) provide minimum information security require-
ments as determined under section 20(b) of the National
Institute of Standards and Technology Act (15 U.S.C. 278g–
3(b)); and
‘‘(ii) are otherwise necessary to improve the security
of Federal information and information systems.
‘‘(B) Information security standards described in subpara-
graph (A) shall be compulsory and binding.
‘‘(c) AUTHORITY TO DISAPPROVE OR MODIFY.—The President may
disapprove or modify the standards and guidelines referred to in
subsection (a)(1) if the President determines such action to be
in the public interest. The President’s authority to disapprove or
modify such standards and guidelines may not be delegated. Notice
of such disapproval or modification shall be published promptly
in the Federal Register. Upon receiving notice of such disapproval
or modification, the Secretary of Commerce shall immediately
rescind or modify such standards or guidelines as directed by the
President.
‘‘(d) EXERCISE
OF AUTHORITY.—To ensure fiscal and policy
consistency, the Secretary shall exercise the authority conferred
by this section subject to direction by the President and in coordina-
tion with the Director of the Office of Management and Budget.
‘‘(e) APPLICATION OF MORE STRINGENT STANDARDS.—The head
of an executive agency may employ standards for the cost-effective
information security for information systems within or under the
supervision of that agency that are more stringent than the stand-
ards the Secretary prescribes under this section if the more strin-
gent standards—
H. R. 2458—59
‘‘(1) contain at least the applicable standards made compul-
sory and binding by the Secretary; and
‘‘(2) are otherwise consistent with policies and guidelines
issued under section 3543 of title 44.
‘‘(f) DECISIONS ON PROMULGATION OF STANDARDS.—The decision
by the Secretary regarding the promulgation of any standard under
this section shall occur not later than 6 months after the submission
of the proposed standard to the Secretary by the National Institute
of Standards and Technology, as provided under section 20 of the
National Institute of Standards and Technology Act (15 U.S.C.
278g–3).
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) FEDERAL
INFORMATION
SYSTEM.—The term ‘Federal
information system’ means an information system used or oper-
ated by an executive agency, by a contractor of an executive
agency, or by another organization on behalf of an executive
agency.
‘‘(2) INFORMATION SECURITY.—The term ‘information secu-
rity’ has the meaning given that term in section 3542(b)(1)
of title 44.
‘‘(3) NATIONAL SECURITY SYSTEM.—The term ‘national secu-
rity system’ has the meaning given that term in section
3542(b)(2) of title 44.’’.
(b) CLERICAL AMENDMENT.—The item relating to section 11331
in the table of sections at the beginning of chapter 113 of such
title is amended to read as follows:
‘‘11331. Responsibilities for Federal information systems standards.’’.
SEC. 303. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.
Section 20 of the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278g–3), is amended by striking the text
and inserting the following:
‘‘(a) IN GENERAL.—The Institute shall—
‘‘(1) have the mission of developing standards, guidelines,
and associated methods and techniques for information sys-
tems;
‘‘(2) develop standards and guidelines, including minimum
requirements, for information systems used or operated by an
agency or by a contractor of an agency or other organization
on behalf of an agency, other than national security systems
(as defined in section 3542(b)(2) of title 44, United States Code);
and
‘‘(3) develop standards and guidelines, including minimum
requirements, for providing adequate information security for
all agency operations and assets, but such standards and guide-
lines shall not apply to national security systems.
‘‘(b) MINIMUM REQUIREMENTS
FOR STANDARDS
AND GUIDE-
LINES.—The standards and guidelines required by subsection (a)
shall include, at a minimum—
‘‘(1)(A) standards to be used by all agencies to categorize
all information and information systems collected or maintained
by or on behalf of each agency based on the objectives of
providing appropriate levels of information security according
to a range of risk levels;
‘‘(B) guidelines recommending the types of information and
information systems to be included in each such category; and
H. R. 2458—60
‘‘(C) minimum information security requirements for
information and information systems in each such category;
‘‘(2) a definition of and guidelines concerning detection
and handling of information security incidents; and
‘‘(3) guidelines developed in conjunction with the Depart-
ment of Defense, including the National Security Agency, for
identifying an information system as a national security system
consistent with applicable requirements for national security
systems, issued in accordance with law and as directed by
the President.
‘‘(c) DEVELOPMENT OF STANDARDS AND GUIDELINES.—In devel-
oping standards and guidelines required by subsections (a) and
(b), the Institute shall—
‘‘(1) consult with other agencies and offices and the private
sector (including the Director of the Office of Management
and Budget, the Departments of Defense and Energy, the
National Security Agency, the General Accounting Office, and
the Secretary of Homeland Security) to assure—
‘‘(A) use of appropriate information security policies,
procedures, and techniques, in order to improve information
security and avoid unnecessary and costly duplication of
effort; and
‘‘(B) that such standards and guidelines are com-
plementary with standards and guidelines employed for
the protection of national security systems and information
contained in such systems;
‘‘(2) provide the public with an opportunity to comment
on proposed standards and guidelines;
‘‘(3) submit to the Secretary of Commerce for promulgation
under section 11331 of title 40, United States Code—
‘‘(A) standards, as required under subsection (b)(1)(A),
no later than 12 months after the date of the enactment
of this section; and
‘‘(B) minimum information security requirements for
each category, as required under subsection (b)(1)(C), no
later than 36 months after the date of the enactment
of this section;
‘‘(4) issue guidelines as required under subsection (b)(1)(B),
no later than 18 months after the date of the enactment of
this section;
‘‘(5) to the maximum extent practicable, ensure that such
standards and guidelines do not require the use or procurement
of specific products, including any specific hardware or software;
‘‘(6) to the maximum extent practicable, ensure that such
standards and guidelines provide for sufficient flexibility to
permit alternative solutions to provide equivalent levels of
protection for identified information security risks; and
‘‘(7) to the maximum extent practicable, use flexible,
performance-based standards and guidelines that permit the
use of off-the-shelf commercially developed information security
products.
‘‘(d) INFORMATION SECURITY FUNCTIONS.—The Institute shall—
‘‘(1) submit standards developed pursuant to subsection
(a), along with recommendations as to the extent to which
these should be made compulsory and binding, to the Secretary
of Commerce for promulgation under section 11331 of title
40, United States Code;
H. R. 2458—61
‘‘(2) provide technical assistance to agencies, upon request,
regarding—
‘‘(A) compliance with the standards and guidelines
developed under subsection (a);
‘‘(B) detecting and handling information security
incidents; and
‘‘(C) information security policies, procedures, and prac-
tices;
‘‘(3) conduct research, as needed, to determine the nature
and extent of information security vulnerabilities and tech-
niques for providing cost-effective information security;
‘‘(4) develop and periodically revise performance indicators
and measures for agency information security policies and prac-
tices;
‘‘(5) evaluate private sector information security policies
and practices and commercially available information tech-
nologies to assess potential application by agencies to
strengthen information security;
‘‘(6) assist the private sector, upon request, in using and
applying the results of activities under this section;
‘‘(7) evaluate security policies and practices developed for
national security systems to assess potential application by
agencies to strengthen information security;
‘‘(8) periodically assess the effectiveness of standards and
guidelines developed under this section and undertake revisions
as appropriate;
‘‘(9) solicit and consider the recommendations of the
Information Security and Privacy Advisory Board, established
by section 21, regarding standards and guidelines developed
under subsection (a) and submit such recommendations to the
Secretary of Commerce with such standards submitted to the
Secretary; and
‘‘(10) prepare an annual public report on activities under-
taken in the previous year, and planned for the coming year,
to carry out responsibilities under this section.
‘‘(e) DEFINITIONS.—As used in this section—
‘‘(1) the term ‘agency’ has the same meaning as provided
in section 3502(1) of title 44, United States Code;
‘‘(2) the term ‘information security’ has the same meaning
as provided in section 3542(b)(1) of such title;
‘‘(3) the term ‘information system’ has the same meaning
as provided in section 3502(8) of such title;
‘‘(4) the term ‘information technology’ has the same
meaning as provided in section 11101 of title 40, United States
Code; and
‘‘(5) the term ‘national security system’ has the same
meaning as provided in section 3542(b)(2) of title 44, United
States Code.
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary of Commerce $20,000,000 for
each of fiscal years 2003, 2004, 2005, 2006, and 2007 to enable
the National Institute of Standards and Technology to carry out
the provisions of this section.’’.
SEC. 304. INFORMATION SECURITY AND PRIVACY ADVISORY BOARD.
Section 21 of the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278g–4), is amended—
H. R. 2458—62
(1) in subsection (a), by striking ‘‘Computer System Security
and Privacy Advisory Board’’ and inserting ‘‘Information Secu-
rity and Privacy Advisory Board’’;
(2) in subsection (a)(1), by striking ‘‘computer or tele-
communications’’ and inserting ‘‘information technology’’;
(3) in subsection (a)(2)—
(A) by striking ‘‘computer or telecommunications tech-
nology’’ and inserting ‘‘information technology’’; and
(B) by striking ‘‘computer or telecommunications equip-
ment’’ and inserting ‘‘information technology’’;
(4) in subsection (a)(3)—
(A) by striking ‘‘computer systems’’ and inserting
‘‘information system’’; and
(B) by striking ‘‘computer systems security’’ and
inserting ‘‘information security’’;
(5) in subsection (b)(1) by striking ‘‘computer systems secu-
rity’’ and inserting ‘‘information security’’;
(6) in subsection (b) by striking paragraph (2) and inserting
the following:
‘‘(2) to advise the Institute, the Secretary of Commerce,
and the Director of the Office of Management and Budget
on information security and privacy issues pertaining to Federal
Government information systems, including through review of
proposed standards and guidelines developed under section 20;
and’’;
(7) in subsection (b)(3) by inserting ‘‘annually’’ after
‘‘report’’;
(8) by inserting after subsection (e) the following new sub-
section:
‘‘(f) The Board shall hold meetings at such locations and at
such time and place as determined by a majority of the Board.’’;
(9) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(10) by striking subsection (h), as redesignated by para-
graph (9), and inserting the following:
‘‘(h) As used in this section, the terms ‘information system’
and ‘information technology’ have the meanings given in section
20.’’.
SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS.
(a) COMPUTER SECURITY ACT.—Section 11332 of title 40, United
States Code, and the item relating to that section in the table
of sections for chapter 113 of such title, are repealed.
(b) FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT
FOR FISCAL YEAR 2001.—The Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (Public Law 106–398) is
amended by striking section 1062 (44 U.S.C. 3531 note).
(c) PAPERWORK REDUCTION ACT.—(1) Section 3504(g) of title
44, United States Code, is amended—
(A) by adding ‘‘and’’ at the end of paragraph (1);
(B) in paragraph (2)—
(i) by striking ‘‘sections 11331 and 11332(b) and (c)
of title 40’’ and inserting ‘‘section 11331 of title 40 and
subchapter II of this chapter’’; and
(ii) by striking ‘‘; and’’ and inserting a period; and
(C) by striking paragraph (3).
H. R. 2458—63
(2) Section 3505 of such title is amended by adding at the
end—
‘‘(c) INVENTORY OF MAJOR INFORMATION SYSTEMS.—(1) The head
of each agency shall develop and maintain an inventory of major
information systems (including major national security systems)
operated by or under the control of such agency.
‘‘(2) The identification of information systems in an inventory
under this subsection shall include an identification of the interfaces
between each such system and all other systems or networks,
including those not operated by or under the control of the agency.
‘‘(3) Such inventory shall be—
‘‘(A) updated at least annually;
‘‘(B) made available to the Comptroller General; and
‘‘(C) used to support information resources management,
including—
‘‘(i) preparation and maintenance of the inventory of
information resources under section 3506(b)(4);
‘‘(ii) 
information 
technology 
planning, 
budgeting,
acquisition, and management under section 3506(h), sub-
title III of title 40, and related laws and guidance;
‘‘(iii) monitoring, testing, and evaluation of information
security controls under subchapter II;
‘‘(iv) preparation of the index of major information
systems required under section 552(g) of title 5, United
States Code; and
‘‘(v) preparation of information system inventories
required for records management under chapters 21, 29,
31, and 33.
‘‘(4) The Director shall issue guidance for and oversee the
implementation of the requirements of this subsection.’’.
(3) Section 3506(g) of such title is amended—
(A) by adding ‘‘and’’ at the end of paragraph (1);
(B) in paragraph (2)—
(i) by striking ‘‘section 11332 of title 40’’ and inserting
‘‘subchapter II of this chapter’’; and
(ii) by striking ‘‘; and’’ and inserting a period; and
(C) by striking paragraph (3).
TITLE IV—AUTHORIZATION OF APPRO-
PRIATIONS AND EFFECTIVE DATES
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
Except for those purposes for which an authorization of appro-
priations is specifically provided in title I or II, including the amend-
ments made by such titles, there are authorized to be appropriated
such sums as are necessary to carry out titles I and II for each
of fiscal years 2003 through 2007.
SEC. 402. EFFECTIVE DATES.
(a) TITLES I AND II.—
(1) IN GENERAL.—Except as provided under paragraph (2),
titles I and II and the amendments made by such titles shall
take effect 120 days after the date of enactment of this Act.
(2) IMMEDIATE ENACTMENT.—Sections 207, 214, and 215
shall take effect on the date of enactment of this Act.
H. R. 2458—64
(b) TITLES III AND IV.—Title III and this title shall take effect
on the date of enactment of this Act.
TITLE V—CONFIDENTIAL INFORMATION
PROTECTION AND STATISTICAL EFFI-
CIENCY
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Confidential Information Protec-
tion and Statistical Efficiency Act of 2002’’.
SEC. 502. DEFINITIONS.
As used in this title:
(1) The term ‘‘agency’’ means any entity that falls within
the definition of the term ‘‘executive agency’’ as defined in
section 102 of title 31, United States Code, or ‘‘agency’’, as
defined in section 3502 of title 44, United States Code.
(2) The term ‘‘agent’’ means an individual—
(A)(i) who is an employee of a private organization
or a researcher affiliated with an institution of higher
learning (including a person granted special sworn status
by the Bureau of the Census under section 23(c) of title
13, United States Code), and with whom a contract or
other agreement is executed, on a temporary basis, by
an executive agency to perform exclusively statistical activi-
ties under the control and supervision of an officer or
employee of that agency;
(ii) who is working under the authority of a government
entity with which a contract or other agreement is executed
by an executive agency to perform exclusively statistical
activities under the control of an officer or employee of
that agency;
(iii) who is a self-employed researcher, a consultant,
a contractor, or an employee of a contractor, and with
whom a contract or other agreement is executed by an
executive agency to perform a statistical activity under
the control of an officer or employee of that agency; or
(iv) who is a contractor or an employee of a contractor,
and who is engaged by the agency to design or maintain
the systems for handling or storage of data received under
this title; and
(B) who agrees in writing to comply with all provisions
of law that affect information acquired by that agency.
(3) The term ‘‘business data’’ means operating and financial
data and information about businesses, tax-exempt organiza-
tions, and government entities.
(4) The term ‘‘identifiable form’’ means any representation
of information that permits the identity of the respondent to
whom the information applies to be reasonably inferred by
either direct or indirect means.
(5) The term ‘‘nonstatistical purpose’’—
(A) means the use of data in identifiable form for
any purpose that is not a statistical purpose, including
H. R. 2458—65
any administrative, regulatory, law enforcement, adjudica-
tory, or other purpose that affects the rights, privileges,
or benefits of a particular identifiable respondent; and
(B) includes the disclosure under section 552 of title
5, United States Code (popularly known as the Freedom
of Information Act) of data that are acquired for exclusively
statistical purposes under a pledge of confidentiality.
(6) The term ‘‘respondent’’ means a person who, or organiza-
tion that, is requested or required to supply information to
an agency, is the subject of information requested or required
to be supplied to an agency, or provides that information to
an agency.
(7) The term ‘‘statistical activities’’—
(A) means the collection, compilation, processing, or
analysis of data for the purpose of describing or making
estimates concerning the whole, or relevant groups or
components within, the economy, society, or the natural
environment; and
(B) includes the development of methods or resources
that support those activities, such as measurement
methods, models, statistical classifications, or sampling
frames.
(8) The term ‘‘statistical agency or unit’’ means an agency
or organizational unit of the executive branch whose activities
are predominantly the collection, compilation, processing, or
analysis of information for statistical purposes.
(9) The term ‘‘statistical purpose’’—
(A) means the description, estimation, or analysis of
the characteristics of groups, without identifying the
individuals or organizations that comprise such groups;
and
(B) includes the development, implementation, or
maintenance of methods, technical or administrative proce-
dures, or information resources that support the purposes
described in subparagraph (A).
SEC. 503. COORDINATION AND OVERSIGHT OF POLICIES.
(a) IN GENERAL.—The Director of the Office of Management
and Budget shall coordinate and oversee the confidentiality and
disclosure policies established by this title. The Director may
promulgate rules or provide other guidance to ensure consistent
interpretation of this title by the affected agencies.
(b) AGENCY RULES.—Subject to subsection (c), agencies may
promulgate rules to implement this title. Rules governing disclo-
sures of information that are authorized by this title shall be
promulgated by the agency that originally collected the information.
(c) REVIEW AND APPROVAL OF RULES.—The Director shall review
any rules proposed by an agency pursuant to this title for consist-
ency with the provisions of this title and chapter 35 of title 44,
United States Code, and such rules shall be subject to the approval
of the Director.
(d) REPORTS.—
(1) The head of each agency shall provide to the Director
of the Office of Management and Budget such reports and
other information as the Director requests.
(2) Each Designated Statistical Agency referred to in sec-
tion 522 shall report annually to the Director of the Office
H. R. 2458—66
of Management and Budget, the Committee on Government
Reform of the House of Representatives, and the Committee
on Governmental Affairs of the Senate on the actions it has
taken to implement sections 523 and 524. The report shall
include copies of each written agreement entered into pursuant
to section 524(a) for the applicable year.
(3) The Director of the Office of Management and Budget
shall include a summary of reports submitted to the Director
under paragraph (2) and actions taken by the Director to
advance the purposes of this title in the annual report to
the Congress on statistical programs prepared under section
3504(e)(2) of title 44, United States Code.
SEC. 504. EFFECT ON OTHER LAWS.
(a) TITLE 44, UNITED STATES CODE.—This title, including
amendments made by this title, does not diminish the authority
under section 3510 of title 44, United States Code, of the Director
of the Office of Management and Budget to direct, and of an
agency to make, disclosures that are not inconsistent with any
applicable law.
(b) TITLE 13 AND TITLE 44, UNITED STATES CODE.—This title,
including amendments made by this title, does not diminish the
authority of the Bureau of the Census to provide information in
accordance with sections 8, 16, 301, and 401 of title 13, United
States Code, and section 2108 of title 44, United States Code.
(c) TITLE 13, UNITED STATES CODE.—This title, including
amendments made by this title, shall not be construed as author-
izing the disclosure for nonstatistical purposes of demographic data
or information collected by the Census Bureau pursuant to section
9 of title 13, United States Code.
(d) VARIOUS ENERGY STATUTES.—Data or information acquired
by the Energy Information Administration under a pledge of con-
fidentiality and designated by the Energy Information Administra-
tion to be used for exclusively statistical purposes shall not be
disclosed in identifiable form for nonstatistical purposes under—
(1) section 12, 20, or 59 of the Federal Energy Administra-
tion Act of 1974 (15 U.S.C. 771, 779, 790h);
(2) section 11 of the Energy Supply and Environmental
Coordination Act of 1974 (15 U.S.C. 796); or
(3) section 205 or 407 of the Department of the Energy
Organization Act of 1977 (42 U.S.C. 7135, 7177).
(e) SECTION 201 OF CONGRESSIONAL BUDGET ACT OF 1974.—
This title, including amendments made by this title, shall not
be construed to limit any authorities of the Congressional Budget
Office to work (consistent with laws governing the confidentiality
of information the disclosure of which would be a violation of
law) with databases of Designated Statistical Agencies (as defined
in section 522), either separately or, for data that may be shared
pursuant to section 524 of this title or other authority, jointly
in order to improve the general utility of these databases for the
statistical purpose of analyzing pension and health care financing
issues.
(f) PREEMPTION
OF STATE LAW.—Nothing in this title shall
preempt applicable State law regarding the confidentiality of data
collected by the States.
H. R. 2458—67
(g) 
STATUTES
REGARDING
FALSE
STATEMENTS.—Notwith-
standing section 512, information collected by an agency for exclu-
sively statistical purposes under a pledge of confidentiality may
be provided by the collecting agency to a law enforcement agency
for the prosecution of submissions to the collecting agency of false
statistical information under statutes that authorize criminal pen-
alties (such as section 221 of title 13, United States Code) or
civil penalties for the provision of false statistical information,
unless such disclosure or use would otherwise be prohibited under
Federal law.
(h) CONSTRUCTION.—Nothing in this title shall be construed
as restricting or diminishing any confidentiality protections or pen-
alties for unauthorized disclosure that otherwise apply to data
or information collected for statistical purposes or nonstatistical
purposes, including, but not limited to, section 6103 of the Internal
Revenue Code of 1986 (26 U.S.C. 6103).
(i) AUTHORITY OF CONGRESS.—Nothing in this title shall be
construed to affect the authority of the Congress, including its
committees, members, or agents, to obtain data or information
for a statistical purpose, including for oversight of an agency’s
statistical activities.
Subtitle A—Confidential Information
Protection
SEC. 511. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the following:
(1) Individuals, businesses, and other organizations have
varying degrees of legal protection when providing information
to the agencies for strictly statistical purposes.
(2) Pledges of confidentiality by agencies provide assur-
ances to the public that information about individuals or
organizations or provided by individuals or organizations for
exclusively statistical purposes will be held in confidence and
will not be used against such individuals or organizations in
any agency action.
(3) Protecting the confidentiality interests of individuals
or organizations who provide information under a pledge of
confidentiality for Federal statistical programs serves both the
interests of the public and the needs of society.
(4) Declining trust of the public in the protection of informa-
tion provided under a pledge of confidentiality to the agencies
adversely affects both the accuracy and completeness of statis-
tical analyses.
(5) Ensuring that information provided under a pledge
of confidentiality for statistical purposes receives protection
is essential in continuing public cooperation in statistical pro-
grams.
(b) PURPOSES.—The purposes of this subtitle are the following:
(1) To ensure that information supplied by individuals or
organizations to an agency for statistical purposes under a
pledge of confidentiality is used exclusively for statistical pur-
poses.
(2) To ensure that individuals or organizations who supply
information under a pledge of confidentiality to agencies for
statistical purposes will neither have that information disclosed
H. R. 2458—68
in identifiable form to anyone not authorized by this title nor
have that information used for any purpose other than a statis-
tical purpose.
(3) To safeguard the confidentiality of individually identifi-
able information acquired under a pledge of confidentiality
for statistical purposes by controlling access to, and uses made
of, such information.
SEC. 512. LIMITATIONS ON USE AND DISCLOSURE OF DATA AND
INFORMATION.
(a) USE
OF STATISTICAL DATA
OR INFORMATION.—Data or
information acquired by an agency under a pledge of confidentiality
and for exclusively statistical purposes shall be used by officers,
employees, or agents of the agency exclusively for statistical pur-
poses.
(b) DISCLOSURE OF STATISTICAL DATA OR INFORMATION.—
(1) Data or information acquired by an agency under a
pledge of confidentiality for exclusively statistical purposes shall
not be disclosed by an agency in identifiable form, for any
use other than an exclusively statistical purpose, except with
the informed consent of the respondent.
(2) A disclosure pursuant to paragraph (1) is authorized
only when the head of the agency approves such disclosure
and the disclosure is not prohibited by any other law.
(3) This section does not restrict or diminish any confiden-
tiality protections in law that otherwise apply to data or
information acquired by an agency under a pledge of confiden-
tiality for exclusively statistical purposes.
(c) RULE FOR USE OF DATA OR INFORMATION FOR NONSTATIS-
TICAL PURPOSES.—A statistical agency or unit shall clearly distin-
guish any data or information it collects for nonstatistical purposes
(as authorized by law) and provide notice to the public, before
the data or information is collected, that the data or information
could be used for nonstatistical purposes.
(d) DESIGNATION OF AGENTS.—A statistical agency or unit may
designate agents, by contract or by entering into a special agreement
containing the provisions required under section 502(2) for treat-
ment as an agent under that section, who may perform exclusively
statistical activities, subject to the limitations and penalties
described in this title.
SEC. 513. FINES AND PENALTIES.
Whoever, being an officer, employee, or agent of an agency
acquiring information for exclusively statistical purposes, having
taken and subscribed the oath of office, or having sworn to observe
the limitations imposed by section 512, comes into possession of
such information by reason of his or her being an officer, employee,
or agent and, knowing that the disclosure of the specific information
is prohibited under the provisions of this title, willfully discloses
the information in any manner to a person or agency not entitled
to receive it, shall be guilty of a class E felony and imprisoned
for not more than 5 years, or fined not more than $250,000, or
both.