National Cybersecurity Protection Act of 2014

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``National Cybersecurity Protection 
Act of 2014''.
SEC. 2. DEFINITIONS.
    In this Act--
        (1) the term ``Center'' means the national cybersecurity and 
    communications integration center under section 226 of the Homeland 
    Security Act of 2002, as added by section 3;
        (2) the term ``critical infrastructure'' has the meaning given 
    that term in section 2 of the Homeland Security Act of 2002 (6 
    U.S.C. 101);
        (3) the term ``cybersecurity risk'' has the meaning given that 
    term in section 226 of the Homeland Security Act of 2002, as added 
    by section 3;
        (4) the term ``information sharing and analysis organization'' 
    has the meaning given that term in section 212(5) of the Homeland 
    Security Act of 2002 (6 U.S.C. 131(5));
        (5) the term ``information system'' has the meaning given that 
    term in section 3502(8) of title 44, United States Code; and
        (6) the term ``Secretary'' means the Secretary of Homeland 
    Security.
SEC. 3. NATIONAL CYBERSECURITY AND COMMUNICATIONS INTEGRATION CENTER.
    (a) In General.--Subtitle C of title II of the Homeland Security 
Act of 2002 (6 U.S.C. 141 et seq.) is amended by adding at the end the 
following:
    ``SEC. 226. NATIONAL CYBERSECURITY AND COMMUNICATIONS INTEGRATION 
      CENTER.
    ``(a) Definitions.--In this section--
        ``(1) the term `cybersecurity risk' means threats to and 
    vulnerabilities of information or information systems and any 
    related consequences caused by or resulting from unauthorized 
    access, use, disclosure, degradation, disruption, modification, or 
    destruction of information or information systems, including such 
    related consequences caused by an act of terrorism;
        ``(2) the term `incident' means an occurrence that--
            ``(A) actually or imminently jeopardizes, without lawful 
        authority, the integrity, confidentiality, or availability of 
        information on 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 sharing and analysis organization' 
    has the meaning given that term in section 212(5); and
        ``(4) the term `information system' has the meaning given that 
    term in section 3502(8) of title 44, United States Code.
    ``(b) Center.--There is in the Department a national cybersecurity 
and communications integration center (referred to in this section as 
the `Center') to carry out certain responsibilities of the Under 
Secretary appointed under section 103(a)(1)(H).
    ``(c) Functions.--The cybersecurity functions of the Center shall 
include--
        ``(1) being a Federal civilian interface for the multi-
    directional and cross-sector sharing of information related to 
    cybersecurity risks, incidents, analysis, and warnings for Federal 
    and non-Federal entities;
        ``(2) providing shared situational awareness to enable real-
    time, integrated, and operational actions across the Federal 
    Government and non-Federal entities to address cybersecurity risks 
    and incidents to Federal and non-Federal entities;
        ``(3) coordinating the sharing of information related to 
    cybersecurity risks and incidents across the Federal Government;
        ``(4) facilitating cross-sector coordination to address 
    cybersecurity risks and incidents, including cybersecurity risks 
    and incidents that may be related or could have consequential 
    impacts across multiple sectors;
        ``(5)(A) conducting integration and analysis, including cross-
    sector integration and analysis, of cybersecurity risks and 
    incidents; and
        ``(B) sharing the analysis conducted under subparagraph (A) 
    with Federal and non-Federal entities;
        ``(6) upon request, providing timely technical assistance, risk 
    management support, and incident response capabilities to Federal 
    and non-Federal entities with respect to cybersecurity risks and 
    incidents, which may include attribution, mitigation, and 
    remediation; and
        ``(7) providing information and recommendations on security and 
    resilience measures to Federal and non-Federal entities, including 
    information and recommendations to--
            ``(A) facilitate information security; and
            ``(B) strengthen information systems against cybersecurity 
        risks and incidents.
    ``(d) Composition.--
        ``(1) In general.--The Center shall be composed of--
            ``(A) appropriate representatives of Federal entities, such 
        as--
                ``(i) sector-specific agencies;
                ``(ii) civilian and law enforcement agencies; and
                ``(iii) elements of the intelligence community, as that 
            term is defined under section 3(4) of the National Security 
            Act of 1947 (50 U.S.C. 3003(4));
            ``(B) appropriate representatives of non-Federal entities, 
        such as--
                ``(i) State and local governments;
                ``(ii) information sharing and analysis organizations; 
            and
                ``(iii) owners and operators of critical information 
            systems;
            ``(C) components within the Center that carry out 
        cybersecurity and communications activities;
            ``(D) a designated Federal official for operational 
        coordination with and across each sector; and
            ``(E) other appropriate representatives or entities, as 
        determined by the Secretary.
        ``(2) Incidents.--In the event of an incident, during exigent 
    circumstances the Secretary may grant a Federal or non-Federal 
    entity immediate temporary access to the Center.
    ``(e) Principles.--In carrying out the functions under subsection 
(c), the Center shall ensure--
        ``(1) to the extent practicable, that--
            ``(A) timely, actionable, and relevant information related 
        to cybersecurity risks, incidents, and analysis is shared;
            ``(B) when appropriate, information related to 
        cybersecurity risks, incidents, and analysis is integrated with 
        other relevant information and tailored to the specific 
        characteristics of a sector;
            ``(C) activities are prioritized and conducted based on the 
        level of risk;
            ``(D) industry sector-specific, academic, and national 
        laboratory expertise is sought and receives appropriate 
        consideration;
            ``(E) continuous, collaborative, and inclusive coordination 
        occurs--
                ``(i) across sectors; and
                ``(ii) with--

                    ``(I) sector coordinating councils;
                    ``(II) information sharing and analysis 
                organizations; and
                    ``(III) other appropriate non-Federal partners;

            ``(F) as appropriate, the Center works to develop and use 
        mechanisms for sharing information related to cybersecurity 
        risks and incidents that are technology-neutral, interoperable, 
        real-time, cost-effective, and resilient; and
            ``(G) the Center works with other agencies to reduce 
        unnecessarily duplicative sharing of information related to 
        cybersecurity risks and incidents;
        ``(2) that information related to cybersecurity risks and 
    incidents is appropriately safeguarded against unauthorized access; 
    and
        ``(3) that activities conducted by the Center comply with all 
    policies, regulations, and laws that protect the privacy and civil 
    liberties of United States persons.
    ``(f) No Right or Benefit.--
        ``(1) In general.--The provision of assistance or information 
    to, and inclusion in the Center of, governmental or private 
    entities under this section shall be at the sole and unreviewable 
    discretion of the Under Secretary appointed under section 
    103(a)(1)(H).
        ``(2) Certain assistance or information.--The provision of 
    certain assistance or information to, or inclusion in the Center 
    of, one governmental or private entity pursuant to this section 
    shall not create a right or benefit, substantive or procedural, to 
    similar assistance or information for any other governmental or 
    private entity.''.
    (b) Technical and Conforming Amendment.--The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 note) 
is amended by inserting after the item relating to section 225 the 
following:

``Sec. 226. National cybersecurity and communications integration 
          center.''.
SEC. 4. RECOMMENDATIONS REGARDING NEW AGREEMENTS.
    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit recommendations on 
how to expedite the implementation of information-sharing agreements 
for cybersecurity purposes between the Center and non-Federal entities 
(referred to in this section as ``cybersecurity information-sharing 
agreements'') to--
        (1) the Committee on Homeland Security and Governmental Affairs 
    and the Committee on the Judiciary of the Senate; and
        (2) the Committee on Homeland Security and the Committee on the 
    Judiciary of the House of Representatives.
    (b) Contents.--In submitting recommendations under subsection (a), 
the Secretary shall--
        (1) address the development and utilization of a scalable form 
    that retains all privacy and other protections in cybersecurity 
    information-sharing agreements that are in effect as of the date on 
    which the Secretary submits the recommendations, including 
    Cooperative Research and Development Agreements; and
        (2) include in the recommendations any additional authorities 
    or resources that may be needed to carry out the implementation of 
    any new cybersecurity information-sharing agreements.
SEC. 5. ANNUAL REPORT.
    Not later than 1 year after the date of enactment of this Act, and 
every year thereafter for 3 years, the Secretary shall submit to the 
Committee on Homeland Security and Governmental Affairs and the 
Committee on the Judiciary of the Senate, the Committee on Homeland 
Security and the Committee on the Judiciary of the House of 
Representatives, and the Comptroller General of the United States a 
report on the Center, which shall include--
     (a) information on the Center, including--
        (1) an assessment of the capability and capacity of the Center 
    to carry out its cybersecurity mission under this Act;
        (2) the number of representatives from non-Federal entities 
    that are participating in the Center, including the number of 
    representatives from States, nonprofit organizations, and private 
    sector entities, respectively;
        (3) the number of requests from non-Federal entities to 
    participate in the Center and the response to such requests;
        (4) the average length of time taken to resolve requests 
    described in paragraph (3);
        (5) the identification of--
            (A) any delay in resolving requests described in paragraph 
        (3) involving security clearance processing; and
            (B) the agency involved with a delay described in 
        subparagraph (A);
        (6) a description of any other obstacles or challenges to 
    resolving requests described in paragraph (3) and a summary of the 
    reasons for denials of any such requests;
        (7) the extent to which the Department is engaged in 
    information sharing with each critical infrastructure sector, 
    including--
            (A) the extent to which each sector has representatives at 
        the Center;
            (B) the extent to which owners and operators of critical 
        infrastructure in each critical infrastructure sector 
        participate in information sharing at the Center; and
            (C) the volume and range of activities with respect to 
        which the Secretary has collaborated with the sector 
        coordinating councils and the sector-specific agencies to 
        promote greater engagement with the Center; and
        (8) the policies and procedures established by the Center to 
    safeguard privacy and civil liberties.
SEC. 6. GAO REPORT.
    Not later than 2 years after the date of enactment of this Act, the 
Comptroller General of the United States shall submit to the Committee 
on Homeland Security and Governmental Affairs of the Senate and the 
Committee on Homeland Security of the House of Representatives a report 
on the effectiveness of the Center in carrying out its cybersecurity 
mission.
SEC. 7. CYBER INCIDENT RESPONSE PLAN; CLEARANCES; BREACHES.
    (a) Cyber Incident Response Plan; Clearances.--Subtitle C of title 
II of the Homeland Security Act of 2002 (6 U.S.C. 141 et seq.), as 
amended by section 3, is amended by adding at the end the following:
    ``SEC. 227. CYBER INCIDENT RESPONSE PLAN.
    ``The Under Secretary appointed under section 103(a)(1)(H) shall, 
in coordination with appropriate Federal departments and agencies, 
State and local governments, sector coordinating councils, information 
sharing and analysis organizations (as defined in section 212(5)), 
owners and operators of critical infrastructure, and other appropriate 
entities and individuals, develop, regularly update, maintain, and 
exercise adaptable cyber incident response plans to address 
cybersecurity risks (as defined in section 226) to critical 
infrastructure.
    ``SEC. 228. CLEARANCES.
    ``The Secretary shall make available the process of application for 
security clearances under Executive Order 13549 (75 Fed. Reg. 162; 
relating to a classified national security information program) or any 
successor Executive Order to appropriate representatives of sector 
coordinating councils, sector information sharing and analysis 
organizations (as defined in section 212(5)), owners and operators of 
critical infrastructure, and any other person that the Secretary 
determines appropriate.''.
    (b) 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 3544(c)(1) of title 44, United States Code, the 
        Committee on the Judiciary of the Senate, and the Committee on 
        Homeland Security 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; remediation.--The 
    Attorney General, the head of an 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)), or the Secretary 
    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) OMB report.--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--
            (A) assess agency implementation of data breach 
        notification policies and guidelines in aggregate; and
            (B) include the assessment described in clause (i) in the 
        report required under section 3543(a)(8) 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.
    (c) Rule of Construction.--Nothing in the amendment made by 
subsection (a) or in subsection (b)(1) shall be construed to alter any 
authority of a Federal agency or department.
    (d) Technical and Conforming Amendment.--The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 note), 
as amended by section 3, is amended by inserting after the item 
relating to section 226 the following:

``Sec. 227. Cyber incident response plan.
``Sec. 228. Clearances.''.
SEC. 8. RULES OF CONSTRUCTION.
    (a) Prohibition on New Regulatory Authority.--Nothing in this Act 
or the amendments made by this Act shall be construed to grant the 
Secretary any authority to promulgate regulations or set standards 
relating to the cybersecurity of private sector critical infrastructure 
that was not in effect on the day before the date of enactment of this 
Act.
    (b) Private Entities.--Nothing in this Act or the amendments made 
by this Act shall be construed to require any private entity--
        (1) to request assistance from the Secretary; or
        (2) that requested such assistance from the Secretary to 
    implement any measure or recommendation suggested by the Secretary.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary:  (This measure has not been amended since it was passed by the Senate on December 10, 2014.  National Cybersecurity Protection Act of 2014 - (Sec. 3) Amends the Homeland Security Act of 2002 to establish a national cybersecurity and communications integration center in the Department of Homeland Security (DHS) to carry out the responsibilities of the DHS Under Secretary responsible for overseeing critical infrastructure protection, cybersecurity, and related DHS programs. Requires the center to be the federal civilian interface for sharing cybersecurity risks, incidents, analysis, and warnings for federal and non-federal entities. Directs the center to: (1) enable real-time, integrated, and operational actions across federal and non-federal entities; (2) facilitate cross-sector coordination to address risks and incidents that may be related or could have consequential impacts across multiple sectors; (3) conduct and share analysis; and (4) provide technical assistance, risk management, and security measure recommendations. Directs the center to ensure: (1) continuous, collaborative, and inclusive coordination across sectors and with sector coordinating councils, information sharing and analysis organizations, and other appropriate non-federal partners; (2) development and use of technology-neutral, real-time mechanisms for sharing information about risks and incidents; and (3) safeguards against unauthorized access.  Provides the Under Secretary with unreviewable discretion as to whether governmental or private entities are included in the center or are provided assistance or information.  (Sec. 4) Requires the DHS Secretary to submit to Congress recommendations regarding how to expedite implementation of information-sharing agreements for cybersecurity purposes between the center and non-federal entities.  (Sec. 5) Directs the Secretary to report annually to Congress concerning: (1) the number of non-federal participants, the length of time taken to resolve requests to participate in the center, and the reasons for any denials of such requests; (2) DHS's information sharing with each critical infrastructure sector; and (3) privacy and civil liberties safeguards.  (Sec. 6) Requires a Comptroller General (GAO) report on the effectiveness of the center.  (Sec. 7) Directs the Under Secretary to develop, maintain, and exercise adaptable cyber incident response plans to address cybersecurity risks to critical infrastructure.  Requires the Secretary to make the application process for security clearances relating to a classified national security information program available to sector coordinating councils, sector information sharing and analysis organizations, and owners and operators of critical infrastructure.  Directs the Office of Management and Budget (OMB) to ensure that data breach notification policies require affected agencies, after discovering an unauthorized acquisition or access, to notify: (1) Congress within 30 days, and (2) affected individuals as expeditiously as practicable. Allows the Attorney General (DOJ), heads of elements of the intelligence community, or the Secretary to delay notice to affected individuals for purposes of law enforcement investigations, national security, or security remediation actions.  Requires OMB to assess agency implementation of data breach notification policies.  (Sec. 8) Prohibits this Act from being construed to: (1) grant the Secretary any authority to promulgate regulations or set standards relating to the cybersecurity of private sector critical infrastructure that was not in effect on the day before the enactment of this Act, or (2) require any private entity to request the Secretary's assistance or to implement any recommendation suggested by the Secretary in response to such a request.