SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Information 
Security Amendments Act of 2013’’. 
SEC. 2. COORDINATION OF FEDERAL INFORMATION POL-
ICY. 
Chapter 35 of title 44, United States Code, is amend-
ed 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 en-
suring the effectiveness of information security con-
trols over information resources that support Fed-
eral operations and assets; 
‘‘(2) recognize the highly networked nature of 
the current Federal computing environment and pro-
vide 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 assets; 
‘‘(3) provide for development and maintenance 
of minimum controls required to protect Federal in-
formation and information systems;
‘‘(4) provide a mechanism for improved over-
sight of Federal agency information security pro-
grams and systems through a focus on automated 
and continuous monitoring of agency information 
systems and regular threat assessments; 
‘‘(5) acknowledge that commercially developed 
information security products offer advanced, dy-
namic, robust, and effective information security so-
lutions, reflecting market solutions for the protection 
of critical information systems important to the na-
tional 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 secu-
rity solutions should be left to individual agencies 
from among commercially developed products. 
‘‘§ 3552. Definitions 
‘‘(a) SECTION 3502 DEFINITIONS.—Except as pro-
vided under subsection (b), the definitions under section 
3502 shall apply to this subchapter. 
‘‘(b) ADDITIONAL DEFINITIONS.—In this subchapter: 
‘‘(1) ADEQUATE
SECURITY.—The term ‘ade-
quate security’ means security commensurate with 
the risk and magnitude of the harm resulting from
the unauthorized access to or loss, misuse, destruc-
tion, or modification of information. 
‘‘(2) AUTOMATED
AND
CONTINUOUS
MONI-
TORING.—The term ‘automated and continuous 
monitoring’ means monitoring, with minimal human 
involvement, through an uninterrupted, ongoing real 
time, or near real-time process used to determine if 
the complete set of planned, required, and deployed 
security controls within an information system con-
tinue to be effective over time with rapidly changing 
information technology and threat development. 
‘‘(3) INCIDENT.—The term ‘incident’ means an 
occurrence that actually or potentially jeopardizes 
the confidentiality, integrity, or availability of an in-
formation system, or the information the system 
processes, stores, or transmits or that constitutes a 
violation or imminent threat of violation of security 
policies, security procedures, or acceptable use poli-
cies. 
‘‘(4) INFORMATION SECURITY.—The term ‘in-
formation security’ means protecting information 
and information systems from unauthorized access, 
use, disclosure, disruption, modification, or destruc-
tion 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 pre-
serving authorized restrictions on access and 
disclosure, including means for protecting per-
sonal privacy and proprietary information; and 
‘‘(C) availability, which means ensuring 
timely and reliable access to and use of infor-
mation. 
‘‘(5) INFORMATION SYSTEM.—The term ‘infor-
mation system’ means a discrete set of information 
resources organized for the collection, processing, 
maintenance, use, sharing, dissemination, or disposi-
tion of information and includes— 
‘‘(A) computers and computer networks; 
‘‘(B) ancillary equipment; 
‘‘(C) software, firmware, and related proce-
dures; 
‘‘(D) services, including support services; 
and 
‘‘(E) related resources.
‘‘(6) INFORMATION
TECHNOLOGY.—The term 
‘information technology’ has the meaning given that 
term in section 11101 of title 40. 
‘‘(7) NATIONAL SECURITY SYSTEM.— 
‘‘(A) DEFINITION.—The term ‘national se-
curity 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 activi-
ties; 
‘‘(II) involves cryptologic activi-
ties related to national security; 
‘‘(III) involves command and 
control of military forces; 
‘‘(IV) involves equipment that is 
an integral part of a weapon or weap-
ons system; or 
‘‘(V) subject to subparagraph 
(B), is critical to the direct fulfillment 
of military or intelligence missions; or
‘‘(ii) is protected at all times by proce-
dures 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 pol-
icy. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)(i)(V) does not include a system that is to 
be used for routine administrative and business 
applications (including payroll, finance, logis-
tics, and personnel management applications). 
‘‘(8) THREAT ASSESSMENT.—The term ‘threat 
assessment’ means the formal description and eval-
uation of threat to an information system. 
‘‘§ 3553. Authority and functions of the Director 
‘‘(a) IN GENERAL.—The Director shall oversee agen-
cy information security policies and practices, including— 
‘‘(1) developing and overseeing the implementa-
tion 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 com-
mensurate with the risk and magnitude of the harm 
resulting from the unauthorized access, use, disclo-
sure, 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 guidelines under section 20 of the National In-
stitute of Standards and Technology Act (15 U.S.C. 
278g–3) with agencies and offices operating or exer-
cising 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 re-
quirements 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 disapproving, agency information security pro-
grams required under section 3554(b); 
‘‘(6) coordinating information security policies 
and procedures with related information resources 
management policies and procedures; 
‘‘(7) overseeing the operation of the Federal in-
formation security incident center required under 
section 3555; and 
‘‘(8) reporting to Congress no later than March 
1 of each year on agency compliance with the re-
quirements of this subchapter, including— 
‘‘(A) an assessment of the development, 
promulgation, and adoption of, and compliance 
with, standards developed under section 20 of 
the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278g–3) and promul-
gated under section 11331 of title 40; 
‘‘(B) significant deficiencies in agency in-
formation security practices; 
‘‘(C) planned remedial action to address 
such deficiencies; and
‘‘(D) a summary of, and the views of the 
Director on, the report prepared by the Na-
tional Institute of Standards and Technology 
under section 20(d)(10) of the National Insti-
tute 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 sub-
section (a), the authorities of the Director under this sec-
tion shall not apply to national security systems. 
‘‘(c) DEPARTMENT OF DEFENSE AND CENTRAL IN-
TELLIGENCE AGENCY SYSTEMS.—(1) The authorities of 
the Director described in paragraphs (1) and (2) of sub-
section (a) shall be delegated to the Secretary of Defense 
in the case of systems described in paragraph (2) and to 
the Director of Central Intelligence in the case of systems 
described in paragraph (3). 
‘‘(2) The systems described in this paragraph are sys-
tems that are operated by the Department of Defense, a 
contractor of the Department of Defense, or another enti-
ty 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 Depart-
ment of Defense.
‘‘(3) The systems described in this paragraph are sys-
tems 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. 
‘‘§ 3554. Agency responsibilities 
‘‘(a) IN GENERAL.—The head of each agency shall— 
‘‘(1) be responsible for— 
‘‘(A) providing information security protec-
tions commensurate with the risk and mag-
nitude of the harm resulting from unauthorized 
access, use, disclosure, disruption, modification, 
or destruction of— 
‘‘(i) information collected or main-
tained by or on behalf of the agency; and 
‘‘(ii) information systems used or op-
erated 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 
and guidelines promulgated under section 
11331 of title 40 and section 20 of the Na-
tional Institute of Standards and Tech-
nology Act (15 U.S.C. 278g–3); 
‘‘(ii) information security standards 
and guidelines for national security sys-
tems issued in accordance with law and as 
directed by the President; and 
‘‘(iii) ensuring the standards imple-
mented for information systems and na-
tional security systems of the agency are 
complementary and uniform, to the extent 
practicable; 
‘‘(C) ensuring that information security 
management processes are integrated with 
agency strategic and operational planning and 
budget processes, including policies, procedures, 
and practices described in subsection (c)(2); 
‘‘(D) as appropriate, maintaining secure 
facilities that have the capability of accessing, 
sending, receiving, and storing classified infor-
mation; 
‘‘(E) maintaining a sufficient number of 
personnel with security clearances, at the ap-
propriate levels, to access, send, receive and 
analyze classified information to carry out the 
responsibilities of this subchapter; and 
‘‘(F) ensuring that information security 
performance indicators and measures are in-
cluded in the annual performance evaluations of 
all managers, senior managers, senior executive 
service personnel, and political appointees; 
‘‘(2) ensure that senior agency officials provide 
information security for the information and infor-
mation systems that support the operations and as-
sets under their control, including through— 
‘‘(A) assessing the risk and magnitude of 
the harm that could result from the unauthor-
ized access, use, disclosure, disruption, modi-
fication, or destruction of such information or 
information system; 
‘‘(B) determining the levels of information 
security appropriate to protect such information 
and information systems in accordance with 
policies, principles, standards, and guidelines 
promulgated under section 11331 of title 40 
and section 20 of the National Institute of 
Standards and Technology Act (15 U.S.C.
278g–3) for information security classifications 
and related requirements; 
‘‘(C) implementing policies and procedures 
to cost effectively reduce risks to an acceptable 
level; 
‘‘(D) with a frequency sufficient to support 
risk-based security decisions, testing and evalu-
ating information security controls and tech-
niques to ensure that such controls and tech-
niques are effectively implemented and oper-
ated; and 
‘‘(E) with a frequency sufficient to support 
risk-based security decisions, conducting threat 
assessments by monitoring information systems, 
identifying potential system vulnerabilities, and 
reporting security incidents in accordance with 
paragraph (3)(A)(v); 
‘‘(3) delegate to the Chief Information Officer 
or equivalent (or a senior agency official who reports 
to the Chief Information Officer or equivalent), who 
is designated as the ‘Chief Information Security Of-
ficer’, the authority and primary responsibility to de-
velop, implement, and oversee an agencywide infor-
mation security program to ensure and enforce com-