Cyber Incident Reporting Act of 2021
Bill: S.2875 | Sponsor: Sen. Peters, Gary C. (D-MI)
Policy area: Science, Technology, Communications

Summary:
Cyber Incident Reporting Act of 2021
This bill requires reporting and other actions to address cybersecurity incidents, including ransomware attacks.
Entities that own or operate critical infrastructure must report cyber incidents and ransom payments within specified time frames while other entities may voluntarily report incidents. The Cybersecurity and Infrastructure Security Agency (CISA) must establish an office to receive and analyze such reports.
The bill limits the use and disclosure of reported information. The information may be shared (subject to protections) with federal agencies or to address cybersecurity threats. However, shared information may not be used as a basis for certain regulatory enforcement. Additionally, an entity may not be liable for submitting required reports. Further, reports do not constitute waivers of applicable protections against disclosure (e.g., attorney-client privilege) and are not subject to laws governing release of federal records.
The bill authorizes CISA to take specified action (e.g., issuing subpoenas) if an entity fails to submit a required report. CISA may share subpoenaed information with a regulator or the Department of Justice for regulatory enforcement or criminal prosecution.
A federal agency must share any information it receives about cyber attacks with CISA.
The bill also establishes (1) an interagency council to standardize federal reporting of cybersecurity threats, (2) a task force on ransomware attacks, and (3) a pilot program to identify information systems vulnerable to ransomware attacks.

To amend the Homeland Security Act of 2002 to establish the Cyber 
Incident Review Office in the Cybersecurity and Infrastructure Security 
 Agency of the Department of Homeland Security, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Cyber Incident Reporting 
Act of 2021''.</DELETED>

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Covered cyber incident; covered entity; cyber 
        incident.--The terms ``covered cyber incident'', ``covered 
        entity'', and ``cyber incident'' have the meanings given those 
        terms in section 2230 of the Homeland Security Act of 2002, as 
        added by section 3(b) of this Act.</DELETED>
        <DELETED>    (2) Cyber attack; ransom payment; ransomware 
        attack.--The terms ``cyber attack'', ``ransom payment'', and 
        ``ransomware attack'' have the meanings given those terms in 
        section 2201 of the Homeland Security Act of 2002 (6 U.S.C. 
        651), as amended by section 3(a) of this Act.</DELETED>
        <DELETED>    (3) Director.--The term ``Director'' means the 
        Director of the Cybersecurity and Infrastructure Security 
        Agency.</DELETED>
        <DELETED>    (4) Information system; security vulnerability.--
        The terms ``information system'' and ``security vulnerability'' 
        have the meanings given those terms in section 102 of the 
        Cybersecurity Act of 2015 (6 U.S.C. 1501).</DELETED>

<DELETED>SEC. 3. CYBER INCIDENT REPORTING.</DELETED>

<DELETED>    (a) Definitions.--</DELETED>
        <DELETED>    (1) In general.--Section 2201 of the Homeland 
        Security Act of 2002 (6 U.S.C. 651) is amended--</DELETED>
                <DELETED>    (A) by redesignating paragraphs (1), (2), 
                (3), (4), (5), and (6) as paragraphs (2), (4), (5), 
                (7), (10), and (11), respectively;</DELETED>
                <DELETED>    (B) by inserting before paragraph (2), as 
                so redesignated, the following:</DELETED>
        <DELETED>    ``(1) Cloud service provider.--The term `cloud 
        service provider' means an entity offering products or services 
        related to cloud computing, as defined by the National 
        Institutes of Standards and Technology in NIST Special 
        Publication 800-145 and any amendatory or superseding document 
        relating thereto.'';</DELETED>
                <DELETED>    (C) by inserting after paragraph (2), as 
                so redesignated, the following:</DELETED>
        <DELETED>    ``(3) Cyber attack.--The term `cyber attack' means 
        the use of unauthorized or malicious code on an information 
        system, or the use of another digital mechanism such as a 
        denial of service attack, to interrupt or disrupt the 
        operations of an information system or compromise the 
        confidentiality, availability, or integrity of electronic data 
        stored on, processed by, or transiting an information 
        system.'';</DELETED>
                <DELETED>    (D) by inserting after paragraph (5), as 
                so redesignated, the following:</DELETED>
        <DELETED>    ``(6) Managed service provider.--The term `managed 
        service provider' means an entity that delivers services, such 
        as network, application, infrastructure, or security services, 
        via ongoing and regular support and active administration on 
        the premises of a customer, in the data center of the entity 
        (such as hosting), or in a third-party data 
        center.'';</DELETED>
                <DELETED>    (E) by inserting after paragraph (7), as 
                so redesignated, the following:</DELETED>
        <DELETED>    ``(8) Ransom payment.--The term `ransom payment' 
        means the transmission of any money or other property or asset, 
        including virtual currency, or any portion thereof, which has 
        at any time been delivered as ransom in connection with a 
        ransomware attack.</DELETED>
        <DELETED>    ``(9) Ransomware attack.--The term `ransomware 
        attack'--</DELETED>
                <DELETED>    ``(A) means a cyber attack that includes 
                the threat of use of unauthorized or malicious code on 
                an information system, or the threat of use of another 
                digital mechanism such as a denial of service attack, 
                to interrupt or disrupt the operations of an 
                information system or compromise the confidentiality, 
                availability, or integrity of electronic data stored 
                on, processed by, or transiting an information system 
                to extort a demand for a ransom payment; and</DELETED>
                <DELETED>    ``(B) does not include any such event 
                where the demand for payment is made by a Federal 
                Government entity, good-faith security research, or in 
                response to an invitation by the owner or operator of 
                the information system for third parties to identify 
                vulnerabilities in the information system.''; 
                and</DELETED>
                <DELETED>    (F) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(13) Supply chain compromise.--The term `supply 
        chain compromise' means a cyber attack that allows an adversary 
        to utilize implants or other vulnerabilities inserted prior to 
        installation in order to infiltrate data, or manipulate 
        information technology hardware, software, operating systems, 
        peripherals (such as information technology products), or 
        services at any point during the life cycle.</DELETED>
        <DELETED>    ``(14) Virtual currency.--The term `virtual 
        currency' means the digital representation of value that 
        functions as a medium of exchange, a unit of account, or a 
        store of value.</DELETED>
        <DELETED>    ``(15) Virtual currency address.--The term 
        `virtual currency address' means a unique public cryptographic 
        key identifying the location to which a virtual currency 
        payment can be made.''.</DELETED>
        <DELETED>    (2) Conforming amendment.--Section 9002(A)(7) of 
        the William M. (Mac) Thornberry National Defense Authorization 
        Act for Fiscal Year 2021 (6 U.S.C. 652a(a)(7)) is amended to 
        read as follows:</DELETED>
        <DELETED>    ``(7) Sector risk management agency.--The term 
        `Sector Risk Management Agency' has the meaning given the term 
        in section 2201 of the Homeland Security Act of 2002 (6 U.S.C. 
        651).''.</DELETED>
<DELETED>    (b) Cyber Incident Reporting.--Title XXII of the Homeland 
Security Act of 2002 (6 U.S.C. 651 et seq.) is amended by adding at the 
end the following:</DELETED>

       <DELETED>``Subtitle C--Cyber Incident Reporting</DELETED>

<DELETED>``SEC. 2230. DEFINITIONS.</DELETED>

<DELETED>    ``(a) In General.--Except as provided in subsection (b), 
the definitions under section 2201 shall apply to this 
subtitle.</DELETED>
<DELETED>    ``(b) Additional Definitions.--In this subtitle:</DELETED>
        <DELETED>    ``(1) Council.--The term `Council' means the Cyber 
        Incident Reporting Council described in section 1752(c)(1)(H) 
        of the William M. (Mac) Thornberry National Defense 
        Authorization Act for Fiscal Year 2021 (6 U.S.C. 
        1500(c)(1)(H)).</DELETED>
        <DELETED>    ``(2) Covered cyber incident.--The term `covered 
        cyber incident' means a substantial cyber incident experienced 
        by a covered entity that satisfies the definition and criteria 
        established by the Director in the interim final rule and final 
        rule issued pursuant to section 2232.</DELETED>
        <DELETED>    ``(3) Covered entity.--The term `covered entity' 
        means an entity that owns or operates critical infrastructure 
        that satisfies the definition established by the Director in 
        the interim final rule and final rule issued pursuant to 
        section 2232.</DELETED>
        <DELETED>    ``(4) Cyber incident.--The term `cyber incident' 
        has the meaning given the term `incident' in section 
        2209(a).</DELETED>
        <DELETED>    ``(5) Cyber threat.--The term `cyber threat'--
        </DELETED>
                <DELETED>    ``(A) has the meaning given the term 
                `cybersecurity threat' in section 102 of the 
                Cybersecurity Act of 2015 (6 U.S.C. 1501); 
                and</DELETED>
                <DELETED>    ``(B) does not include any activity 
                related to good faith security research, including 
                participation in a bug-bounty program or a 
                vulnerability disclosure program.</DELETED>
        <DELETED>    ``(6) Cyber threat indicator; cybersecurity 
        purpose; defensive measure; federal entity; information system; 
        security control; security vulnerability.--The terms `cyber 
        threat indicator', `cybersecurity purpose', `defensive 
        measure', `Federal entity', `information system', `security 
        control', and `security vulnerability' have the meanings given 
        those terms in section 102 of the Cybersecurity Act of 2015 (6 
        U.S.C. 1501).</DELETED>
        <DELETED>    ``(7) Small business.--The term `small business'--
        </DELETED>
                <DELETED>    ``(A) means a business with fewer than 50 
                employees (determined on a full-time equivalent basis); 
                and</DELETED>
                <DELETED>    ``(B) does not include--</DELETED>
                        <DELETED>    ``(i) a business that is a covered 
                        entity; or</DELETED>
                        <DELETED>    ``(ii) a business that holds a 
                        government contract, unless that contractor is 
                        a party only to--</DELETED>
                                <DELETED>    ``(I) a service contract 
                                to provide housekeeping or custodial 
                                services; or</DELETED>
                                <DELETED>    ``(II) a contract to 
                                provide products or services unrelated 
                                to information technology that is below 
                                the micro-purchase threshold, as 
                                defined in section 2.101 of title 48, 
                                Code of Federal Regulations, or any 
                                successor regulation.</DELETED>

<DELETED>``SEC. 2231. CYBER INCIDENT REVIEW OFFICE.</DELETED>

<DELETED>    ``(a) Cyber Incident Review Office.--There is established 
in the Agency a Cyber Incident Review Office (in this section referred 
to as the `Office') to receive, aggregate, and analyze reports related 
to covered cyber incidents submitted by covered entities in furtherance 
of the activities specified in subsection (c) of this section and 
sections 2202(e), 2203, and 2209(c) and any other authorized activity 
of the Director to enhance the situational awareness of cyber threats 
across critical infrastructure sectors.</DELETED>
<DELETED>    ``(b) Activities.--The Office shall, in furtherance of the 
activities specified in sections 2202(e), 2203, and 2209(c)--</DELETED>
        <DELETED>    ``(1) receive, aggregate, analyze, and secure, 
        consistent with the requirements under the Cybersecurity 
        Information Sharing Act of 2015 (6 U.S.C. 1501 et seq.) reports 
        from covered entities related to a covered cyber incident to 
        assess the effectiveness of security controls and identify 
        tactics, techniques, and procedures adversaries use to overcome 
        those controls;</DELETED>
        <DELETED>    ``(2) receive, aggregate, analyze, and secure 
        reports related to ransom payments to identify tactics, 
        techniques, and procedures, including identifying and tracking 
        ransom payments utilizing virtual currencies, adversaries use 
        to perpetuate ransomware attacks and facilitate ransom 
        payments;</DELETED>
        <DELETED>    ``(3) leverage information gathered about 
        cybersecurity incidents to--</DELETED>
                <DELETED>    ``(A) enhance the quality and 
                effectiveness of information sharing and coordination 
                efforts with appropriate entities, including agencies, 
                sector coordinating councils, information sharing and 
                analysis organizations, technology providers, 
                cybersecurity and incident response firms, and security 
                researchers; and</DELETED>
                <DELETED>    ``(B) provide appropriate entities, 
                including agencies, sector coordinating councils, 
                information sharing and analysis organizations, 
                technology providers, cybersecurity and incident 
                response firms, and security researchers, with timely, 
                actionable, and anonymized reports of cyber attack 
                campaigns and trends, including, to the maximum extent 
                practicable, related contextual information, cyber 
                threat indicators, and defensive measures;</DELETED>
        <DELETED>    ``(4) establish mechanisms to receive feedback 
        from stakeholders on how the Agency can most effectively 
        receive covered cyber incident reports, ransom payment reports, 
        and other voluntarily provided information;</DELETED>
        <DELETED>    ``(5) facilitate the timely sharing, on a 
        voluntary basis, between relevant critical infrastructure 
        owners and operators of information relating to covered cyber 
        incidents and ransom payments, particularly with respect to 
        ongoing cyber threats or security vulnerabilities and identify 
        and disseminate ways to prevent or mitigate similar incidents 
        in the future;</DELETED>
        <DELETED>    ``(6) for a covered cyber incident, including a 
        ransomware attack, that also satisfies the definition of a 
        substantial cyber incident, or is part of a group of related 
        cyber incidents that together satisfy such definition, conduct 
        a review of the details surrounding the covered cyber incident 
        or group of those incidents and identify and disseminate ways 
        to prevent or mitigate similar incidents in the 
        future;</DELETED>
        <DELETED>    ``(7) with respect to covered cyber incident 
        reports under subsection (c) involving an ongoing cyber threat 
        or security vulnerability, immediately review those reports for 
        cyber threat indicators that can be anonymized and 
        disseminated, with defensive measures, to appropriate 
        stakeholders, in coordination with other divisions within the 
        Agency, as appropriate;</DELETED>
        <DELETED>    ``(8) publish quarterly unclassified, public 
        reports that may be based on the unclassified information 
        contained in the reports required under subsection 
        (c);</DELETED>
        <DELETED>    ``(9) proactively identify opportunities and 
        perform analyses, consistent with the protections in section 
        2235, to leverage and utilize data on ransom attacks to support 
        law enforcement operations to identify, track, and seize ransom 
        payments utilizing virtual currencies, to the greatest extent 
        practicable;</DELETED>
        <DELETED>    ``(10) proactively identify opportunities, 
        consistent with the protections in section 2235, to leverage 
        and utilize data on cyber incidents in a manner that enables 
        and strengthens cybersecurity research carried out by academic 
        institutions and other private sector organizations, to the 
        greatest extent practicable;</DELETED>
        <DELETED>    ``(11) on a not less frequently than annual basis, 
        analyze public disclosures made pursuant to parts 229 and 249 
        of title 17, Code of Federal Regulations, or any subsequent 
        document submitted to the Securities and Exchange Commission by 
        entities experiencing cyber incidents and compare such 
        disclosures to reports received by the Office; and</DELETED>
        <DELETED>    ``(12) in accordance with section 2235, not later 
        than 24 hours after receiving a covered cyber incident report 
        or ransom payment report, share the reported information with 
        appropriate Sector Risk Management Agencies and other 
        appropriate agencies as determined by the Director of Office 
        Management and Budget, in consultation with the Director and 
        the National Cyber Director.</DELETED>
<DELETED>    ``(c) Periodic Reporting.--Not later than 60 days after 
the effective date of the interim final rule required under section 
2232(b)(1), and on the first day of each month thereafter, the 
Director, in consultation with the Attorney General and the Director of 
National Intelligence, shall submit to the National Cyber Director, the 
majority leader of the Senate, the minority leader of the Senate, the 
Speaker of the House of Representatives, the minority leader of the 
House of Representatives, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Committee on Homeland 
Security of the House of Representatives a report that characterizes 
the cyber threat facing Federal agencies and covered entities, 
including applicable intelligence and law enforcement information, 
covered cyber incidents, and ransomware attacks, as of the date of the 
report, which shall--</DELETED>
        <DELETED>    ``(1) include the total number of reports 
        submitted under sections 2232 and 2233 during the preceding 
        month, including a breakdown of required and voluntary 
        reports;</DELETED>
        <DELETED>    ``(2) include any identified trends in covered 
        cyber incidents and ransomware attacks over the course of the 
        preceding month and as compared to previous reports, including 
        any trends related to the information collected in the reports 
        submitted under sections 2232 and 2233, including--</DELETED>
                <DELETED>    ``(A) the infrastructure, tactics, and 
                techniques malicious cyber actors commonly use; 
                and</DELETED>
                <DELETED>    ``(B) intelligence gaps that have, or 
                currently are, impeding the ability to counter covered 
                cyber incidents and ransomware threats;</DELETED>
        <DELETED>    ``(3) include a summary of the known uses of the 
        information in reports submitted under sections 2232 and 2233; 
        and</DELETED>
        <DELETED>    ``(4) be unclassified, but may include a 
        classified annex.</DELETED>
<DELETED>    ``(d) Organization.--The Director may organize the Office 
within the Agency as the Director deems appropriate, including 
harmonizing the functions of the Office with other authorized 
activities.</DELETED>

<DELETED>``SEC. 2232. REQUIRED REPORTING OF CERTAIN CYBER 
              INCIDENTS.</DELETED>

<DELETED>    ``(a) In General.--</DELETED>
        <DELETED>    ``(1) Covered cyber incident reports.--A covered 
        entity shall report a covered cyber incident to the Director 
        not later than 72 hours after the covered entity reasonably 
        believes that a covered cyber incident has occurred.</DELETED>
        <DELETED>    ``(2) Ransom payment reports.--An entity, 
        including a covered entity and except for an individual or a 
        small business, that makes a ransom payment as the result of a 
        ransomware attack against the entity shall report the payment 
        to the Director not later than 24 hours after the ransom 
        payment has been made.</DELETED>
        <DELETED>    ``(3) Supplemental reports.--A covered entity 
        shall promptly submit to the Director an update or supplement 
        to a previously submitted covered cyber incident report if new 
        or different information becomes available or if the covered 
        entity makes a ransom payment after submitting a covered cyber 
        incident report required under paragraph (1).</DELETED>
        <DELETED>    ``(4) Preservation of information.--Any entity 
        subject to requirements of paragraph (1), (2), or (3) shall 
        preserve data relevant to the covered cyber incident or ransom 
        payment in accordance with procedures established in the 
        interim final rule and final rule issued pursuant to subsection 
        (b).</DELETED>
        <DELETED>    ``(5) Exceptions.--</DELETED>
                <DELETED>    ``(A) Reporting of covered cyber incident 
                with ransom payment.--If a covered cyber incident 
                includes a ransom payment such that the reporting 
                requirements under paragraphs (1) and (2) apply, the 
                covered entity may submit a single report to satisfy 
                the requirements of both paragraphs in accordance with 
                procedures established in the interim final rule and 
                final rule issued pursuant to subsection (b).</DELETED>
                <DELETED>    ``(B) Substantially similar reported 
                information.--The requirements under paragraphs (1), 
                (2), and (3) shall not apply to an entity required by 
                law, regulation, or contract to report substantially 
                similar information to another Federal agency within a 
                substantially similar timeframe.</DELETED>
        <DELETED>    ``(6) Manner, timing, and form of reports.--
        Reports made under paragraphs (1), (2), and (3) shall be made 
        in the manner and form, and within the time period in the case 
        of reports made under paragraph (3), prescribed according to 
        the interim final rule and final rule issued pursuant to 
        subsection (b).</DELETED>
        <DELETED>    ``(7) Effective date.--Paragraphs (1) through (4) 
        shall take effect on the dates prescribed in the interim final 
        rule and the final rule issued pursuant to subsection (b), 
        except that the requirements of paragraph (1) through (4) shall 
        not be effective for a period for more than 18 months after the 
        effective date of the interim final rule if the Director has 
        not issued a final rule pursuant to subsection 
        (b)(2).</DELETED>
<DELETED>    ``(b) Rulemaking.--</DELETED>
        <DELETED>    ``(1) Interim final rule.--Not later than 270 days 
        after the date of enactment of this section, and after a 60-day 
        consultative period, followed by a 90-day comment period with 
        appropriate stakeholders, the Director, in consultation with 
        Sector Risk Management Agencies and the heads of other Federal 
        agencies, shall publish in the Federal Register an interim 
        final rule to implement subsection (a).</DELETED>
        <DELETED>    ``(2) Final rule.--Not later than 1 year after 
        publication of the interim final rule under paragraph (1), the 
        Director shall publish a final rule to implement subsection 
        (a).</DELETED>
        <DELETED>    ``(3) Subsequent rulemakings.--Any rule to 
        implement subsection (a) issued after publication of the final 
        rule under paragraph (2), including a rule to amend or revise 
        the final rule issued under paragraph (2), shall comply with 
        the requirements under chapter 5 of title 5, United States 
        Code, including the issuance of a notice of proposed rulemaking 
        under section 553 of such title.</DELETED>
<DELETED>    ``(c) Elements.--The interim final rule and final rule 
issued pursuant to subsection (b) shall be composed of the following 
elements:</DELETED>
        <DELETED>    ``(1) A clear description of the types of entities 
        that constitute covered entities, based on--</DELETED>
                <DELETED>    ``(A) the consequences that disruption to 
                or compromise of such an entity could cause to national 
                security, economic security, or public health and 
                safety;</DELETED>
                <DELETED>    ``(B) the likelihood that such an entity 
                may be targeted by a malicious cyber actor, including a 
                foreign country; and</DELETED>
                <DELETED>    ``(C) the extent to which damage, 
                disruption, or unauthorized access to such an entity, 
                including the accessing of sensitive cybersecurity 
                vulnerability information or penetration testing tools 
                or techniques, will likely enable the disruption of the 
                reliable operation of critical 
                infrastructure.</DELETED>
        <DELETED>    ``(2) A clear description of the types of 
        substantial cyber incidents that constitute covered cyber 
        incidents, which shall--</DELETED>
                <DELETED>    ``(A) at a minimum, require the occurrence 
                of--</DELETED>
                        <DELETED>    ``(i) the unauthorized access to 
                        an information system or network with a 
                        substantial loss of confidentiality, integrity, 
                        or availability of such information system or 
                        network, or a serious impact on the safety and 
                        resiliency of operational systems and 
                        processes;</DELETED>
                        <DELETED>    ``(ii) a disruption of business or 
                        industrial operations due to a cyber incident; 
                        or</DELETED>
                        <DELETED>    ``(iii) an occurrence described in 
                        clause (i) or (ii) due to loss of service 
                        facilitated through, or caused by, a compromise 
                        of a cloud service provider, managed service 
                        provider, or other third-party data hosting 
                        provider or by a supply chain 
                        compromise;</DELETED>
                <DELETED>    ``(B) consider--</DELETED>
                        <DELETED>    ``(i) the sophistication or 
                        novelty of the tactics used to perpetrate such 
                        an incident, as well as the type, volume, and 
                        sensitivity of the data at issue;</DELETED>
                        <DELETED>    ``(ii) the number of individuals 
                        directly or indirectly affected or potentially 
                        affected by such an incident; and</DELETED>
                        <DELETED>    ``(iii) potential impacts on 
                        industrial control systems, such as supervisory 
                        control and data acquisition systems, 
                        distributed control systems, and programmable 
                        logic controllers; and</DELETED>
                <DELETED>    ``(C) exclude--</DELETED>
                        <DELETED>    ``(i) any event where the cyber 
                        incident is perpetuated by a United States 
                        Government entity, good-faith security 
                        research, or in response to an invitation by 
                        the owner or operator of the information system 
                        for third parties to find vulnerabilities in 
                        the information system, such as through a 
                        vulnerability disclosure program or the use of 
                        authorized penetration testing services; 
                        and</DELETED>
                        <DELETED>    ``(ii) the threat of disruption as 
                        extortion, as described in section 
                        2201(8)(B).</DELETED>
        <DELETED>    ``(3) A requirement that, if a covered cyber 
        incident or a ransom payment occurs following an exempted 
        threat described in paragraph (2)(C)(ii), the entity shall 
        comply with the requirements in this subtitle in reporting the 
        covered cyber incident or ransom payment.</DELETED>
        <DELETED>    ``(4) A clear description of the specific required 
        contents of a report pursuant to subsection (a)(1), which shall 
        include the following information, to the extent applicable and 
        available, with respect to a covered cyber incident:</DELETED>
                <DELETED>    ``(A) A description of the covered cyber 
                incident, including--</DELETED>
                        <DELETED>    ``(i) identification and a 
                        description of the function of the affected 
                        information systems, networks, or devices that 
                        were, or are reasonably believed to have been, 
                        affected by such incident;</DELETED>
                        <DELETED>    ``(ii) a description of the 
                        unauthorized access with substantial loss of 
                        confidentiality, integrity, or availability of 
                        the affected information system or network or 
                        disruption of business or industrial 
                        operations;</DELETED>
                        <DELETED>    ``(iii) the estimated date range 
                        of such incident; and</DELETED>
                        <DELETED>    ``(iv) the impact to the 
                        operations of the covered entity.</DELETED>
                <DELETED>    ``(B) Where applicable, a description of 
                the vulnerabilities, tactics, techniques, and 
                procedures used to perpetuate the covered cyber 
                incident.</DELETED>
                <DELETED>    ``(C) Where applicable, any identifying or 
                contact information related to each actor reasonably 
                believed to be responsible for such incident.</DELETED>
                <DELETED>    ``(D) Where applicable, identification of 
                the category or categories of information that was, or 
                is reasonably believed to have been, accessed or 
                acquired by an unauthorized person.</DELETED>
                <DELETED>    ``(E) The name and, if applicable, 
                taxpayer identification number or other unique 
                identifier of the entity impacted by the covered cyber 
                incident.</DELETED>
                <DELETED>    ``(F) Contact information, such as 
                telephone number or electronic mail address, that the 
                Office may use to contact the covered entity or an 
                authorized agent of such covered entity, or, where 
                applicable, the service provider of such covered entity 
                acting with the express permission, and at the 
                direction, of the covered entity to assist with 
                compliance with the requirements of this 
                subtitle.</DELETED>
        <DELETED>    ``(5) A clear description of the specific required 
        contents of a report pursuant to subsection (a)(2), which shall 
        be the following information, to the extent applicable and 
        available, with respect to a ransom payment:</DELETED>
                <DELETED>    ``(A) A description of the ransomware 
                attack, including the estimated date range of the 
                attack.</DELETED>
                <DELETED>    ``(B) Where applicable, a description of 
                the vulnerabilities, tactics, techniques, and 
                procedures used to perpetuate the ransomware 
                attack.</DELETED>
                <DELETED>    ``(C) Where applicable, any identifying or 
                contact information related to the actor or actors 
                reasonably believed to be responsible for the 
                ransomware attack.</DELETED>
                <DELETED>    ``(D) The name and, if applicable, 
                taxpayer identification number or other unique 
                identifier of the entity that made the ransom 
                payment.</DELETED>
                <DELETED>    ``(E) Contact information, such as 
                telephone number or electronic mail address, that the 
                Office may use to contact the entity that made the 
                ransom payment or an authorized agent of such covered 
                entity, or, where applicable, the service provider of 
                such covered entity acting with the express permission, 
                and at the direction of, that entity to assist with 
                compliance with the requirements of this 
                subtitle.</DELETED>
                <DELETED>    ``(F) The date of the ransom 
                payment.</DELETED>
                <DELETED>    ``(G) The ransom payment demand, including 
                the type of virtual currency or other commodity 
                requested, if applicable.</DELETED>
                <DELETED>    ``(H) The ransom payment instructions, 
                including information regarding where to send the 
                payment, such as the virtual currency address or 
                physical address the funds were requested to be sent 
                to, if applicable.</DELETED>
                <DELETED>    ``(I) The amount of the ransom 
                payment.</DELETED>
                <DELETED>    ``(J) A summary of the due diligence 
                review required under subsection (e).</DELETED>
        <DELETED>    ``(6) A clear description of the types of data 
        required to be preserved pursuant to subsection (a)(4) and the 
        period of time for which the data is required to be 
        preserved.</DELETED>
        <DELETED>    ``(7) Deadlines for submitting reports to the 
        Director required under subsection (a)(3), which shall--
        </DELETED>
                <DELETED>    ``(A) be established by the Director in 
                consultation with the Council;</DELETED>
                <DELETED>    ``(B) consider any existing regulatory 
                reporting requirements similar in scope, purpose, and 
                timing to the reporting requirements to which such a 
                covered entity may also be subject, and make efforts to 
                harmonize the timing and contents of any such reports 
                to the maximum extent practicable; and</DELETED>
                <DELETED>    ``(C) balance the need for situational 
                awareness with the ability of the covered entity to 
                conduct incident response and investigations.</DELETED>
        <DELETED>    ``(8) Procedures for--</DELETED>
                <DELETED>    ``(A) entities to submit reports required 
                by paragraphs (1), (2), and (3) of subsection (a), 
                which shall include, at a minimum, a concise, user-
                friendly web-based form;</DELETED>
                <DELETED>    ``(B) the Office to carry out the 
                enforcement provisions of section 2233, including with 
                respect to the issuance of subpoenas and other aspects 
                of noncompliance;</DELETED>
                <DELETED>    ``(C) implementing the exceptions provided 
                in subparagraphs (A), (B), and (D) of subsection 
                (a)(5); and</DELETED>
                <DELETED>    ``(D) anonymizing and safeguarding 
                information received and disclosed through covered 
                cyber incident reports and ransom payment reports that 
                is known to be personal information of a specific 
                individual or information that identifies a specific 
                individual that is not directly related to a 
                cybersecurity threat.</DELETED>
<DELETED>    ``(d) Third-Party Report Submission and Ransom Payment.--
</DELETED>
        <DELETED>    ``(1) Report submission.--An entity, including a 
        covered entity, that is required to submit a covered cyber 
        incident report or a ransom payment report may use a third 
        party, such as an incident response company, insurance 
        provider, service provider, information sharing and analysis 
        organization, or law firm, to submit the required report under 
        subsection (a).</DELETED>
        <DELETED>    ``(2) Ransom payment.--If an entity impacted by a 
        ransomware attack uses a third party to make a ransom payment, 
        the third party shall not be required to submit a ransom 
        payment report for itself under subsection (a)(2).</DELETED>
        <DELETED>    ``(3) Duty to report.--Third-party reporting under 
        this subparagraph does not relieve a covered entity or an 
        entity that makes a ransom payment from the duty to comply with 
        the requirements for covered cyber incident report or ransom 
        payment report submission.</DELETED>
        <DELETED>    ``(4) Responsibility to advise.--Any third party 
        used by an entity that knowingly makes a ransom payment on 
        behalf of an entity impacted by a ransomware attack shall 
        advise the impacted entity of the responsibilities of the 
        impacted entity regarding a due diligence review under 
        subsection (e) and reporting ransom payments under this 
        section.</DELETED>
<DELETED>    ``(e) Due Diligence Review.--Before the date on which a 
covered entity, or an entity that would be required to submit a ransom 
payment report under this section if that entity makes a ransom 
payment, makes a ransom payment relating to a ransomware attack, the 
covered entity or entity shall conduct a due diligence review of 
alternatives to making the ransom payment, including an analysis of 
whether the covered entity or entity can recover from the ransomware 
attack through other means.</DELETED>
<DELETED>    ``(f) Outreach to Covered Entities.--</DELETED>
        <DELETED>    ``(1) In general.--The Director shall conduct an 
        outreach and education campaign to inform likely covered 
        entities, entities that offer or advertise as a service to 
        customers to make or facilitate ransom payments on behalf of 
        entities impacted by ransomware attacks, potential ransomware 
        attack victims, and other appropriate entities of the 
        requirements of paragraphs (1), (2), and (3) of subsection 
        (a).</DELETED>
        <DELETED>    ``(2) Elements.--The outreach and education 
        campaign under paragraph (1) shall include the 
        following:</DELETED>
                <DELETED>    ``(A) An overview of the interim final 
                rule and final rule issued pursuant to subsection 
                (b).</DELETED>
                <DELETED>    ``(B) An overview of mechanisms to submit 
                to the Office covered cyber incident reports and 
                information relating to the disclosure, retention, and 
                use of incident reports under this section.</DELETED>
                <DELETED>    ``(C) An overview of the protections 
                afforded to covered entities for complying with the 
                requirements under paragraphs (1), (2), and (3) of 
                subsection (a).</DELETED>
                <DELETED>    ``(D) An overview of the steps taken under 
                section 2234 when a covered entity is not in compliance 
                with the reporting requirements under subsection 
                (a).</DELETED>
                <DELETED>    ``(E) Specific outreach to cybersecurity 
                vendors, incident response providers, cybersecurity 
                insurance entities, and other entities that may support 
                covered entities or ransomware attack 
                victims.</DELETED>
                <DELETED>    ``(F) An overview of the privacy and civil 
                liberties requirements in this subtitle.</DELETED>
        <DELETED>    ``(3) Coordination.--In conducting the outreach 
        and education campaign required under paragraph (1), the 
        Director may coordinate with--</DELETED>
                <DELETED>    ``(A) the Critical Infrastructure 
                Partnership Advisory Council established under section 
                871;</DELETED>
                <DELETED>    ``(B) information sharing and analysis 
                organizations;</DELETED>
                <DELETED>    ``(C) trade associations;</DELETED>
                <DELETED>    ``(D) information sharing and analysis 
                centers;</DELETED>
                <DELETED>    ``(E) sector coordinating councils; 
                and</DELETED>
                <DELETED>    ``(F) any other entity as determined 
                appropriate by the Director.</DELETED>
<DELETED>    ``(g) Evaluation of Standards.--</DELETED>
        <DELETED>    ``(1) In general.--Before issuing the final rule 
        pursuant to subsection (b)(2), the Director shall review the 
        data collected by the Office, and in consultation with other 
        appropriate entities, assess the effectiveness of the rule with 
        respect to--</DELETED>
                <DELETED>    ``(A) the number of reports 
                received;</DELETED>
                <DELETED>    ``(B) the utility of the reports 
                received;</DELETED>
                <DELETED>    ``(C) the number of supplemental reports 
                required to be submitted; and</DELETED>
                <DELETED>    ``(D) any other factor determined 
                appropriate by the Director.</DELETED>
        <DELETED>    ``(2) Submission to congress.--The Director 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 the results of the evaluation 
        described in paragraph (1) and may thereafter, in accordance 
        with the requirements under subsection (b), publish in the 
        Federal Register a final rule implementing this 
        section.</DELETED>
<DELETED>    ``(h) Organization of Reports.--Notwithstanding chapter 35 
of title 44, United States Code (commonly known as the `Paperwork 
Reduction Act'), the Director may reorganize and reformat the means by 
which covered cyber incident reports, ransom payment reports, and any 
other voluntarily offered information is submitted to the 
Office.</DELETED>

<DELETED>``SEC. 2233. VOLUNTARY REPORTING OF OTHER CYBER 
              INCIDENTS.</DELETED>

<DELETED>    ``(a) In General.--Entities may voluntarily report 
incidents or ransom payments to the Director that are not required 
under paragraph (1), (2), or (3) of section 2232(a), but may enhance 
the situational awareness of cyber threats.</DELETED>
<DELETED>    ``(b) Voluntary Provision of Additional Information in 
Required Reports.--Entities may voluntarily include in reports required 
under paragraph (1), (2), or (3) of section 2232(a) information that is 
not required to be included, but may enhance the situational awareness 
of cyber threats.</DELETED>
<DELETED>    ``(c) Application of Protections.--The protections under 
section 2235 applicable to covered cyber incident reports shall apply 
in the same manner and to the same extent to reports and information 
submitted under subsections (a) and (b).</DELETED>

<DELETED>``SEC. 2234. NONCOMPLIANCE WITH REQUIRED REPORTING.</DELETED>

<DELETED>    ``(a) Purpose.--In the event that an entity that is 
required to submit a report under section 2232(a) fails to comply with 
the requirement to report, the Director may obtain information about 
the incident or ransom payment by engaging the entity directly to 
request information about the incident or ransom payment, and if the 
Director is unable to obtain information through such engagement, by 
issuing a subpoena to the entity, pursuant to subsection (c), to gather 
information sufficient to determine whether a covered cyber incident or 
ransom payment has occurred, and, if so, whether additional action is 
warranted pursuant to subsection (d).</DELETED>
<DELETED>    ``(b) Initial Request for Information.--</DELETED>
        <DELETED>    ``(1) In general.--If the Director has reason to 
        believe, whether through public reporting or other information 
        in the possession of the Federal Government, including through 
        analysis performed pursuant to paragraph (1) or (2) of section 
        2231(b), that an entity has experienced a covered cyber 
        incident or made a ransom payment but failed to report such 
        incident or payment to the Office within 72 hours in accordance 
        to section 2232(a), the Director shall request additional 
        information from the entity to confirm whether or not a covered 
        cyber incident or ransom payment has occurred.</DELETED>
        <DELETED>    ``(2) Treatment.--Information provided to the 
        Office in response to a request under paragraph (1) shall be 
        treated as if it was submitted through the reporting procedures 
        established in section 2232.</DELETED>
<DELETED>    ``(c) Authority To Issue Subpoenas and Debar.--</DELETED>
        <DELETED>    ``(1) In general.--If, after the date that is 72 
        hours from the date on which the Director made the request for 
        information in subsection (b), the Director has received no 
        response from the entity from which such information was 
        requested, or received an inadequate response, the Director may 
        issue to such entity a subpoena to compel disclosure of 
        information the Director deems necessary to determine whether a 
        covered cyber incident or ransom payment has 
        occurred.</DELETED>
        <DELETED>    ``(2) Civil action.--</DELETED>
                <DELETED>    ``(A) In general.--If an entity fails to 
                comply with a subpoena, the Director may refer the 
                matter to the Attorney General to bring a civil action 
                in a district court of the United States to enforce 
                such subpoena.</DELETED>
                <DELETED>    ``(B) Venue.--An action under this 
                paragraph may be brought in the judicial district in 
                which the entity against which the action is brought 
                resides, is found, or does business.</DELETED>
                <DELETED>    ``(C) Contempt of court.--A court may 
                punish a failure to comply with a subpoena issued under 
                this subsection as a contempt of court.</DELETED>
        <DELETED>    ``(3) Non-delegation.--The authority of the 
        Director to issue a subpoena under this subsection may not be 
        delegated.</DELETED>
        <DELETED>    ``(4) Debarment of federal contractors.--If a 
        covered entity with a Federal Government contract, grant, or 
        cooperative agreement fails to comply with a subpoena issued 
        under this subsection--</DELETED>
                <DELETED>    ``(A) the Director may refer the matter to 
                the Administrator of General Services; and</DELETED>
                <DELETED>    ``(B) upon receiving a referral from the 
                Director, the Administrator of General Services may 
                impose additional available penalties, including 
                suspension or debarment.</DELETED>
<DELETED>    ``(d) Provision of Certain Information to Attorney 
General.--</DELETED>
        <DELETED>    ``(1) In general.--Notwithstanding section 2235(a) 
        and subsection (b)(2) of this section, if the Director 
        determines, based on the information provided in response to 
        the subpoena issued pursuant to subsection (c), that the facts 
        relating to the covered cyber incident or ransom payment at 
        issue may constitute grounds for a regulatory enforcement 
        action or criminal prosecution, the Director may provide that 
        information to the Attorney General or the appropriate 
        regulator, who may use that information for a regulatory 
        enforcement action or criminal prosecution.</DELETED>
        <DELETED>    ``(2) Application to certain entities and third 
        parties.--A covered cyber incident or ransom payment report 
        submitted to the Office by an entity that makes a ransom 
        payment or third party under section 2232 shall not be used by 
        any Federal, State, Tribal, or local government to investigate 
        or take another law enforcement action against the entity that 
        makes a ransom payment or third party.</DELETED>
        <DELETED>    ``(3) Rule of construction.--Nothing in this 
        subtitle shall be construed to provide an entity that submits a 
        covered cyber incident report or ransom payment report under 
        section 2232 any immunity from law enforcement action for 
        making a ransom payment otherwise prohibited by law.</DELETED>
<DELETED>    ``(e) Considerations.--When determining whether to 
exercise the authorities provided under this section, the Director 
shall take into consideration--</DELETED>
        <DELETED>    ``(1) the size and complexity of the 
        entity;</DELETED>
        <DELETED>    ``(2) the complexity in determining if a covered 
        cyber incident has occurred;</DELETED>
        <DELETED>    ``(3) prior interaction with the Agency or 
        awareness of the entity of the policies and procedures of the 
        Agency for reporting covered cyber incidents and ransom 
        payments; and</DELETED>
        <DELETED>    ``(4) for non-covered entities required to submit 
        a ransom payment report, the ability of the entity to perform a 
        due diligence review pursuant to section 2232(e).</DELETED>
<DELETED>    ``(f) Exclusions.--This section shall not apply to a 
State, local, Tribal, or territorial government entity.</DELETED>
<DELETED>    ``(g) Report to Congress.--The Director shall submit to 
Congress an annual report on the number of times the Director--
</DELETED>
        <DELETED>    ``(1) issued an initial request for information 
        pursuant to subsection (b);</DELETED>
        <DELETED>    ``(2) issued a subpoena pursuant to subsection 
        (c);</DELETED>
        <DELETED>    ``(3) brought a civil action pursuant to 
        subsection (c)(2); or</DELETED>
        <DELETED>    ``(4) conducted additional actions pursuant to 
        subsection (d).</DELETED>

<DELETED>``SEC. 2235. INFORMATION SHARED WITH OR PROVIDED TO THE 
              FEDERAL GOVERNMENT.</DELETED>

<DELETED>    ``(a) Disclosure, Retention, and Use.--</DELETED>
        <DELETED>    ``(1) Authorized activities.--Information provided 
        to the Office or Agency pursuant to section 2232 may be 
        disclosed to, retained by, and used by, consistent with 
        otherwise applicable provisions of Federal law, any Federal 
        agency or department, component, officer, employee, or agent of 
        the Federal Government solely for--</DELETED>
                <DELETED>    ``(A) a cybersecurity purpose;</DELETED>
                <DELETED>    ``(B) the purpose of identifying--
                </DELETED>
                        <DELETED>    ``(i) a cyber threat, including 
                        the source of the cyber threat; or</DELETED>
                        <DELETED>    ``(ii) a security 
                        vulnerability;</DELETED>
                <DELETED>    ``(C) the purpose of responding to, or 
                otherwise preventing or mitigating, a specific threat 
                of death, a specific threat of serious bodily harm, or 
                a specific threat of serious economic harm, including a 
                terrorist act or a use of a weapon of mass 
                destruction;</DELETED>
                <DELETED>    ``(D) the purpose of responding to, 
                investigating, prosecuting, or otherwise preventing or 
                mitigating, a serious threat to a minor, including 
                sexual exploitation and threats to physical safety; 
                or</DELETED>
                <DELETED>    ``(E) the purpose of preventing, 
                investigating, disrupting, or prosecuting an offense 
                arising out of a covered cyber incident or any of the 
                offenses listed in section 105(d)(5)(A)(v) of the 
                Cybersecurity Act of 2015 (6 U.S.C. 
                1504(d)(5)(A)(v)).</DELETED>
        <DELETED>    ``(2) Agency actions after receipt.--</DELETED>
                <DELETED>    ``(A) Rapid, confidential sharing of cyber 
                threat indicators.--Upon receiving a covered cyber 
                incident or ransom payment report submitted pursuant to 
                this section, the Office shall immediately review the 
                report to determine whether the incident that is the 
                subject of the report is connected to an ongoing cyber 
                threat or security vulnerability and where applicable, 
                use such report to identify, develop, and rapidly 
                disseminate to appropriate stakeholders actionable, 
                anonymized cyber threat indicators and defensive 
                measures.</DELETED>
                <DELETED>    ``(B) Standards for sharing security 
                vulnerabilities.--With respect to information in a 
                covered cyber incident or ransom payment report 
                regarding a security vulnerability referred to in 
                paragraph (1)(B)(ii), the Director shall develop 
                principles that govern the timing and manner in which 
                information relating to security vulnerabilities may be 
                shared, consistent with common industry best practices 
                and United States and international 
                standards.</DELETED>
        <DELETED>    ``(3) Privacy and civil liberties.--Information 
        contained in covered cyber incident and ransom payment reports 
        submitted to the Office pursuant to section 2232 shall be 
        retained, used, and disseminated, where permissible and 
        appropriate, by the Federal Government in accordance with 
        processes to be developed for the protection of personal 
        information adopted pursuant to section 105 of the 
        Cybersecurity Act of 2015 (6 U.S.C. 1504) and in a manner that 
        protects from unauthorized use or disclosure any information 
        that may contain--</DELETED>
                <DELETED>    ``(A) personal information of a specific 
                individual; or</DELETED>
                <DELETED>    ``(B) information that identifies a 
                specific individual that is not directly related to a 
                cybersecurity threat.</DELETED>
        <DELETED>    ``(4) Digital security.--The Office shall ensure 
        that reports submitted to the Office pursuant to section 2232, 
        and any information contained in those reports, are collected, 
        stored, and protected at a minimum in accordance with the 
        requirements for moderate impact Federal information systems, 
        as described in Federal Information Processing Standards 
        Publication 199, or any successor document.</DELETED>
        <DELETED>    ``(5) Prohibition on use of information in 
        regulatory actions.--A Federal, State, local, or Tribal 
        government shall not use information about a covered cyber 
        incident or ransom payment obtained solely through reporting 
        directly to the Office in accordance with this subtitle to 
        regulate, including through an enforcement action, the lawful 
        activities of any non-Federal entity.</DELETED>
<DELETED>    ``(b) No Waiver of Privilege or Protection.--The 
submission of a report under section 2232 to the Office shall not 
constitute a waiver of any applicable privilege or protection provided 
by law, including trade secret protection and attorney-client 
privilege.</DELETED>
<DELETED>    ``(c) Exemption From Disclosure.--Information contained in 
a report submitted to the Office under section 2232 shall be exempt 
from disclosure under section 552(b)(3)(B) of title 5, United States 
Code (commonly known as the `Freedom of Information Act') and any 
State, Tribal, or local provision of law requiring disclosure of 
information or records.</DELETED>
<DELETED>    ``(d) Ex Parte Communications.--The submission of a report 
to the Agency under section 2232 shall not be subject to a rule of any 
Federal agency or department or any judicial doctrine regarding ex 
parte communications with a decision-making official.</DELETED>
<DELETED>    ``(e) Liability Protections.--</DELETED>
        <DELETED>    ``(1) In general.--No cause of action shall lie or 
        be maintained in any court by any person or entity and any such 
        action shall be promptly dismissed for the submission of a 
        report pursuant to section 2232(a) that is submitted in 
        conformance with this subtitle and the rules promulgated under 
        section 2232(b), except that this subsection shall not apply 
        with regard to an action by the Federal Government pursuant to 
        section 2234(c)(2).</DELETED>
        <DELETED>    ``(2) Scope.--The liability protections provided 
        in subsection (e) shall only apply to or affect litigation that 
        is solely based on the submission of a covered cyber incident 
        report or ransom payment report to the Office, and nothing in 
        this subtitle shall create a defense to a discovery request, or 
        otherwise limit or affect the discovery of information from a 
        cause of action authorized under any Federal, State, local, or 
        Tribal law.</DELETED>
<DELETED>    ``(f) Sharing With Federal and Non-Federal Entities.--The 
Agency shall anonymize the victim who reported the information when 
making information provided in reports received under section 2232 
available to critical infrastructure owners and operators and the 
general public.</DELETED>
<DELETED>    ``(g) Proprietary Information.--Information contained in a 
report submitted to the Agency under section 2232 shall be considered 
the commercial, financial, and proprietary information of the covered 
entity when so designated by the covered entity.''.</DELETED>
<DELETED>    (c) Technical and Conforming Amendment.--The table of 
contents in section 1(b) of the Homeland Security Act of 2002 (Public 
Law 107-296; 116 Stat. 2135) is amended by inserting after the items 
relating to subtitle B of title XXII the following:</DELETED>

            <DELETED>``Subtitle C--Cyber Incident Reporting

<DELETED>``Sec. 2230. Definitions.
<DELETED>``Sec. 2231. Cyber Incident Review Office.
<DELETED>``Sec. 2232. Required reporting of certain cyber incidents.
<DELETED>``Sec. 2233. Voluntary reporting of other cyber incidents.
<DELETED>``Sec. 2234. Noncompliance with required reporting.
<DELETED>``Sec. 2235. Information shared with or provided to the 
                            Federal Government.''.

<DELETED>SEC. 4. FEDERAL SHARING OF INCIDENT REPORTS.</DELETED>

<DELETED>    (a) Cyber Incident Reporting Sharing.--Notwithstanding any 
other provision of law or regulation, any Federal agency that receives 
a report from an entity of a cyber attack, including a ransomware 
attack, shall provide all such information to the Director of the 
Cybersecurity Infrastructure Security Agency not later than 24 hours 
after receiving the report, unless a shorter period is required by an 
agreement made between the Cyber Incident Review Office established 
under section 2231 of the Homeland Security Act of 2002, as added by 
section 3(b) of this Act, and another Federal entity.</DELETED>
<DELETED>    (b) Creation of Council.--Section 1752(c)(1) of the 
William M. (Mac) Thornberry National Defense Authorization Act for 
Fiscal Year 2021 (6 U.S.C. 1500(c)(1)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (G), by striking ``and'' at 
        the end;</DELETED>
        <DELETED>    (2) by redesignating subparagraph (H) as 
        subparagraph (I); and</DELETED>
        <DELETED>    (3) by inserting after subparagraph (G) the 
        following:</DELETED>
                <DELETED>    ``(H) lead an intergovernmental Cyber 
                Incident Reporting Council, in coordination with the 
                Director of the Office of Management and Budget and the 
                Director of the Cybersecurity and Infrastructure 
                Security Agency and in consultation with Sector Risk 
                Management Agencies (as defined in section 2201 of the 
                Homeland Security Act of 2002 (6 U.S.C. 651)) and other 
                appropriate Federal agencies, to coordinate, 
                deconflict, and harmonize Federal incident reporting 
                requirements, including those issued through 
                regulations, for covered entities (as defined in 
                section 2230 of such Act) and entities that make a 
                ransom payment (as defined in such section 2201 (6 
                U.S.C. 651)); and''.</DELETED>
<DELETED>    (c) Harmonizing Reporting Requirements.--The National 
Cyber Director shall, in consultation with the Director, the Cyber 
Incident Reporting Council described in section 1752(c)(1)(H) of the 
William M. (Mac) Thornberry National Defense Authorization Act for 
Fiscal Year 2021 (6 U.S.C. 1500(c)(1)(H)), and the Director of the 
Office of Management and Budget, to the maximum extent practicable--
</DELETED>
        <DELETED>    (1) review existing regulatory requirements, 
        including the information required in such reports, to report 
        cyber incidents and ensure that any such reporting requirements 
        and procedures avoid conflicting, duplicative, or burdensome 
        requirements; and</DELETED>
        <DELETED>    (2) coordinate with the Director and regulatory 
        authorities that receive reports relating to cyber incidents to 
        identify opportunities to streamline reporting processes, and 
        where feasible, facilitate interagency agreements between such 
        authorities to permit the sharing of such reports, consistent 
        with applicable law and policy, without impacting the ability 
        of such agencies to gain timely situational awareness of a 
        covered cyber incident or ransom payment.</DELETED>

<DELETED>SEC. 5. RANSOMWARE VULNERABILITY WARNING PILOT 
              PROGRAM.</DELETED>

<DELETED>    (a) Program.--Not less than 90 days after the date of 
enactment of this Act, the Director shall establish a ransomware 
vulnerability warning program to leverage existing authorities and 
technology to specifically develop processes and procedures, and to 
dedicate resources, to identifying information systems that contain 
security vulnerabilities associated with common ransomware attacks, and 
to notify the owners of those vulnerable systems of their security 
vulnerability.</DELETED>
<DELETED>    (b) Identification of Vulnerable Systems.--The pilot 
program established under subsection (a) shall--</DELETED>
        <DELETED>    (1) identify the most common security 
        vulnerabilities utilized in ransomware attacks and mitigation 
        techniques; and</DELETED>
        <DELETED>    (2) utilize existing authorities to identify 
        Federal and other relevant information systems that contain the 
        security vulnerabilities identified in paragraph (1).</DELETED>
<DELETED>    (c) Entity Notification.--</DELETED>
        <DELETED>    (1) Identification.--If the Director is able to 
        identify the entity at risk that owns or operates a vulnerable 
        information system identified in subsection (b), the Director 
        may notify the owner of the information system.</DELETED>
        <DELETED>    (2) No identification.--If the Director is not 
        able to identify the entity at risk that owns or operates a 
        vulnerable information system identified in subsection (b), the 
        Director may utilize the subpoena authority pursuant to section 
        2209 of the Homeland Security Act of 2002 (6 U.S.C. 659) to 
        identify and notify the entity at risk pursuant to the 
        procedures within that section.</DELETED>
        <DELETED>    (3) Required information.--A notification made 
        under paragraph (1) shall include information on the identified 
        security vulnerability and mitigation techniques.</DELETED>
<DELETED>    (d) Prioritization of Notifications.--To the extent 
practical, the Director shall prioritize covered entities for 
identification and notification activities under the pilot program 
established under this section.</DELETED>
<DELETED>    (e) Limitation on Procedures.--No procedure, notification, 
or other authorities utilized in the execution of the pilot program 
established under subsection (a) shall require an owner or operator of 
a vulnerable information system to take any action as a result of a 
notice of a security vulnerability made pursuant to subsection 
(c).</DELETED>
<DELETED>    (f) Rule of Construction.--Nothing in this section shall 
be construed to provide additional authorities to the Director to 
identify vulnerabilities or vulnerable systems.</DELETED>

<DELETED>SEC. 6. RANSOMWARE THREAT MITIGATION ACTIVITIES.</DELETED>

<DELETED>    (a) Joint Ransomware Task Force.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of enactment of this section, the National Cyber Director 
        shall establish and chair the Joint Ransomware Task Force to 
        coordinate an ongoing, nationwide campaign against ransomware 
        attacks, and identify and pursue opportunities for 
        international cooperation.</DELETED>
        <DELETED>    (2) Composition.--The Joint Ransomware Task Force 
        shall consist of participants from Federal agencies, as 
        determined appropriate by the National Cyber Director in 
        consultation with the Secretary of Homeland Security.</DELETED>
        <DELETED>    (3) Responsibilities.--The Joint Ransomware Task 
        Force, utilizing only existing authorities of each 
        participating agency, shall coordinate across the Federal 
        Government the following activities:</DELETED>
                <DELETED>    (A) Prioritization of intelligence-driven 
                operations to disrupt specific ransomware 
                actors.</DELETED>
                <DELETED>    (B) Consult with relevant private sector, 
                State, local, Tribal, and territorial governments and 
                international stakeholders to identify needs and 
                establish mechanisms for providing input into the Task 
                Force.</DELETED>
                <DELETED>    (C) Identifying, in consultation with 
                relevant entities, a list of highest threat ransomware 
                entities updated on an ongoing basis, in order to 
                facilitate--</DELETED>
                        <DELETED>    (i) prioritization for Federal 
                        action by appropriate Federal agencies; 
                        and</DELETED>
                        <DELETED>    (ii) identify metrics for success 
                        of said actions.</DELETED>
                <DELETED>    (D) Disrupting ransomware criminal actors, 
                associated infrastructure, and their 
                finances.</DELETED>
                <DELETED>    (E) Facilitating coordination and 
                collaboration between Federal entities and relevant 
                entities, including the private sector, to improve 
                Federal actions against ransomware threats.</DELETED>
                <DELETED>    (F) Collection, sharing, and analysis of 
                ransomware trends to inform Federal actions.</DELETED>
                <DELETED>    (G) Creation of after-action reports and 
                other lessons learned from Federal actions that 
                identify successes and failures to improve subsequent 
                actions.</DELETED>
                <DELETED>    (H) Any other activities determined 
                appropriate by the task force to mitigate the threat of 
                ransomware attacks against Federal and non-Federal 
                entities.</DELETED>
<DELETED>    (b) Clarifying Private-Sector Lawful Defensive Measures.--
Not later than 180 days after the date of enactment of this Act, the 
National Cyber Director, in coordination with the Secretary of Homeland 
Security and the Attorney General, shall submit to the Committee on 
Homeland Security and Governmental Affairs and the Committee on the 
Judiciary of the Senate and the Committee on Homeland Security, the 
Committee on the Judiciary, and the Committee on Oversight and Reform 
of the House of Representatives a report that describes defensive 
measures that private-sector actors can take when countering ransomware 
attacks and what laws need to be clarified to enable that 
action.</DELETED>
<DELETED>    (c) Rule of Construction.--Nothing in this section shall 
be construed as providing any additional authority to any Federal 
agency.</DELETED>

<DELETED>SEC. 7. CONGRESSIONAL REPORTING.</DELETED>

<DELETED>    (a) Report on Stakeholder Engagement.--Not later than 30 
days after the date on which the Director issues the interim final rule 
under section 2232(b)(1) of the Homeland Security Act of 2002, as added 
by section 3(b) of this Act, the Director 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 
that describes how the Director engaged stakeholders in the development 
of the interim final rule.</DELETED>
<DELETED>    (b) Report on Opportunities To Strengthen Security 
Research.--Not later than 1 year after the date of enactment of this 
Act, the Director 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 describing how the 
Cyber Incident Review Office has carried out activities under section 
2231(b)(9) of the Homeland Security Act of 2002, as added by section 
3(b) of this Act, by proactively identifying opportunities to use cyber 
incident data to inform and enabling cybersecurity research within the 
academic and private sector.</DELETED>
<DELETED>    (c) Report on Ransomware Vulnerability Warning Pilot 
Program.--Not later than 1 year after the date of enactment of this 
Act, and annually thereafter for the duration of the pilot program 
established under section 5, the Director 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, which may include a classified annex, on the effectiveness of 
the pilot program, which shall include a discussion of the 
following:</DELETED>
        <DELETED>    (1) The effectiveness of the notifications under 
        section 5(c) to mitigate security vulnerabilities and the 
        threat of ransomware.</DELETED>
        <DELETED>    (2) The identification of most common 
        vulnerabilities utilized in ransomware.</DELETED>
        <DELETED>    (3) The number of notifications issued during the 
        preceding year.</DELETED>
        <DELETED>    (4) To the extent practicable, the number of 
        vulnerable devices or systems mitigated under this pilot by the 
        Agency during the preceding year.</DELETED>
<DELETED>    (d) Report on Harmonization of Reporting Regulations.--Not 
later than 180 days after the date on which the National Cyber Director 
convenes the Council described in section 1752(c)(1)(H) of the William 
M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 
2021 (6 U.S.C. 1500(c)(1)(H)), the National Cyber Director shall submit 
to the appropriate congressional committees a report that includes--
</DELETED>
        <DELETED>    (1) a list of duplicative Federal cyber incident 
        reporting requirements on covered entities and entities that 
        make a ransom payment;</DELETED>
        <DELETED>    (2) any actions the National Cyber Director 
        intends to take to harmonize the duplicative reporting 
        requirements; and</DELETED>
        <DELETED>    (3) any proposed legislative changes necessary to 
        address the duplicative reporting.</DELETED>
<DELETED>    (e) 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 implementation of this Act and 
the amendments made by this Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cyber Incident Reporting Act of 
2021''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Covered cyber incident; covered entity; cyber 
        incident.--The terms ``covered cyber incident'', ``covered 
        entity'', and ``cyber incident'' have the meanings given those 
        terms in section 2230 of the Homeland Security Act of 2002, as 
        added by section 3(b) of this Act.
            (2) Cyber attack; ransom payment; ransomware attack.--The 
        terms ``cyber attack'', ``ransom payment'', and ``ransomware 
        attack'' have the meanings given those terms in section 2201 of 
        the Homeland Security Act of 2002 (6 U.S.C. 651), as amended by 
        section 3(a) of this Act.
            (3) Director.--The term ``Director'' means the Director of 
        the Cybersecurity and Infrastructure Security Agency.
            (4) Information system; security vulnerability.--The terms 
        ``information system'' and ``security vulnerability'' have the 
        meanings given those terms in section 102 of the Cybersecurity 
        Act of 2015 (6 U.S.C. 1501).

SEC. 3. CYBER INCIDENT REPORTING.

    (a) Definitions.--
            (1) In general.--Section 2201 of the Homeland Security Act 
        of 2002 (6 U.S.C. 651) is amended--
                    (A) by redesignating paragraphs (1), (2), (3), (4), 
                (5), and (6) as paragraphs (2), (4), (5), (7), (10), 
                and (11), respectively;
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) Cloud service provider.--The term `cloud service 
        provider' means an entity offering products or services related 
        to cloud computing, as defined by the National Institutes of 
        Standards and Technology in NIST Special Publication 800-145 
        and any amendatory or superseding document relating thereto.'';
                    (C) by inserting after paragraph (2), as so 
                redesignated, the following:
            ``(3) Cyber attack.--The term `cyber attack' means the use 
        of unauthorized or malicious code on an information system, or 
        the use of another digital mechanism such as a denial of 
        service attack, to interrupt or disrupt the operations of an 
        information system or compromise the confidentiality, 
        availability, or integrity of electronic data stored on, 
        processed by, or transiting an information system.'';
                    (D) by inserting after paragraph (5), as so 
                redesignated, the following:
            ``(6) Managed service provider.--The term `managed service 
        provider' means an entity that delivers services, such as 
        network, application, infrastructure, or security services, via 
        ongoing and regular support and active administration on the 
        premises of a customer, in the data center of the entity (such 
        as hosting), or in a third party data center.'';
                    (E) by inserting after paragraph (7), as so 
                redesignated, the following:
            ``(8) Ransom payment.--The term `ransom payment' means the 
        transmission of any money or other property or asset, including 
        virtual currency, or any portion thereof, which has at any time 
        been delivered as ransom in connection with a ransomware 
        attack.
            ``(9) Ransomware attack.--The term `ransomware attack'--
                    ``(A) means a cyber attack that includes the threat 
                of use of unauthorized or malicious code on an 
                information system, or the threat of use of another 
                digital mechanism such as a denial of service attack, 
                to interrupt or disrupt the operations of an 
                information system or compromise the confidentiality, 
                availability, or integrity of electronic data stored 
                on, processed by, or transiting an information system 
                to extort a demand for a ransom payment; and
                    ``(B) does not include any such event where the 
                demand for payment is made by a Federal Government 
                entity, good-faith security research, or in response to 
                an invitation by the owner or operator of the 
                information system for third parties to identify 
                vulnerabilities in the information system.''; and
                    (F) by adding at the end the following:
            ``(13) Supply chain compromise.--The term `supply chain 
        compromise' means a cyber attack that allows an adversary to 
        utilize implants or other vulnerabilities inserted prior to 
        installation in order to infiltrate data, or manipulate 
        information technology hardware, software, operating systems, 
        peripherals (such as information technology products), or 
        services at any point during the life cycle.
            ``(14) Virtual currency.--The term `virtual currency' means 
        the digital representation of value that functions as a medium 
        of exchange, a unit of account, or a store of value.
            ``(15) Virtual currency address.--The term `virtual 
        currency address' means a unique public cryptographic key 
        identifying the location to which a virtual currency payment 
        can be made.''.
            (2) Conforming amendment.--Section 9002(A)(7) of the 
        William M. (Mac) Thornberry National Defense Authorization Act 
        for Fiscal Year 2021 (6 U.S.C. 652a(a)(7)) is amended to read 
        as follows:
            ``(7) Sector risk management agency.--The term `Sector Risk 
        Management Agency' has the meaning given the term in section 
        2201 of the Homeland Security Act of 2002 (6 U.S.C. 651).''.
    (b) Cyber Incident Reporting.--Title XXII of the Homeland Security 
Act of 2002 (6 U.S.C. 651 et seq.) is amended by adding at the end the 
following:

                 ``Subtitle C--Cyber Incident Reporting

``SEC. 2230. DEFINITIONS.

    ``(a) In General.--Except as provided in subsection (b), the 
definitions under section 2201 shall apply to this subtitle.
    ``(b) Additional Definitions.--In this subtitle:
            ``(1) Council.--The term `Council' means the Cyber Incident 
        Reporting Council described in section 1752(c)(1)(H) of the 
        William M. (Mac) Thornberry National Defense Authorization Act 
        for Fiscal Year 2021 (6 U.S.C. 1500(c)(1)(H)).
            ``(2) Covered cyber incident.--The term `covered cyber 
        incident' means a substantial cyber incident experienced by a 
        covered entity that satisfies the definition and criteria 
        established by the Director in the interim final rule and final 
        rule issued pursuant to section 2232.
            ``(3) Covered entity.--The term `covered entity' means an 
        entity that owns or operates critical infrastructure that 
        satisfies the definition established by the Director in the 
        interim final rule and final rule issued pursuant to section 
        2232.
            ``(4) Cyber incident.--The term `cyber incident' has the 
        meaning given the term `incident' in section 2209(a).
            ``(5) Cyber threat.--The term `cyber threat'--
                    ``(A) has the meaning given the term `cybersecurity 
                threat' in section 102 of the Cybersecurity Act of 2015 
                (6 U.S.C. 1501); and
                    ``(B) does not include any activity related to good 
                faith security research, including participation in a 
                bug-bounty program or a vulnerability disclosure 
                program.
            ``(6) Cyber threat indicator; cybersecurity purpose; 
        defensive measure; federal entity; information system; security 
        control; security vulnerability.--The terms `cyber threat 
        indicator', `cybersecurity purpose', `defensive measure', 
        `Federal entity', `information system', `security control', and 
        `security vulnerability' have the meanings given those terms in 
        section 102 of the Cybersecurity Act of 2015 (6 U.S.C. 1501).
            ``(7) Small organization.--The term `small organization'--
                    ``(A) means--
                            ``(i) a small business concern, as defined 
                        in section 3 of the Small Business Act (15 
                        U.S.C. 632); or
                            ``(ii) any business, nonprofit 
                        organization, or other private sector entity 
                        with fewer than 50 employees (determined on a 
                        full-time equivalent basis); and
                    ``(B) does not include--
                            ``(i) a business, nonprofit organization, 
                        or other private sector entity that is a 
                        covered entity; or
                            ``(ii) a business, nonprofit organization, 
                        or other private sector entity that holds a 
                        government contract, unless that contractor is 
                        a party only to--
                                    ``(I) a service contract to provide 
                                housekeeping or custodial services; or
                                    ``(II) a contract to provide 
                                products or services unrelated to 
                                information technology that is below 
                                the micro-purchase threshold, as 
                                defined in section 2.101 of title 48, 
                                Code of Federal Regulations, or any 
                                successor regulation.

``SEC. 2231. CYBER INCIDENT REVIEW OFFICE.

    ``(a) Cyber Incident Review Office.--There is established in the 
Agency a Cyber Incident Review Office (in this section referred to as 
the `Office') to receive, aggregate, and analyze reports related to 
covered cyber incidents submitted by covered entities and reports 
related to ransom payments submitted by entities in furtherance of the 
activities specified in subsection (b) of this section and sections 
2202(e), 2203, and 2209(c) and any other authorized activity of the 
Director to enhance the situational awareness of cyber threats across 
critical infrastructure sectors.
    ``(b) Activities.--The Office shall, in furtherance of the 
activities specified in sections 2202(e), 2203, and 2209(c)--
            ``(1) receive, aggregate, analyze, and secure, consistent 
        with the requirements under the Cybersecurity Information 
        Sharing Act of 2015 (6 U.S.C. 1501 et seq.) reports from 
        covered entities related to a covered cyber incident to assess 
        the effectiveness of security controls and identify tactics, 
        techniques, and procedures adversaries use to overcome those 
        controls;
            ``(2) receive, aggregate, analyze, and secure reports 
        related to ransom payments to identify tactics, techniques, and 
        procedures, including identifying and tracking ransom payments 
        utilizing virtual currencies, adversaries use to perpetuate 
        ransomware attacks and facilitate ransom payments;
            ``(3) leverage information gathered about cybersecurity 
        incidents to--
                    ``(A) enhance the quality and effectiveness of 
                information sharing and coordination efforts with 
                appropriate entities, including agencies, sector 
                coordinating councils, information sharing and analysis 
                organizations, technology providers, cybersecurity and 
                incident response firms, and security researchers; and
                    ``(B) provide appropriate entities, including 
                agencies, sector coordinating councils, information 
                sharing and analysis organizations, technology 
                providers, cybersecurity and incident response firms, 
                and security researchers, with timely, actionable, and 
                anonymized reports of cyber attack campaigns and 
                trends, including, to the maximum extent practicable, 
                related contextual information, cyber threat 
                indicators, and defensive measures;
            ``(4) establish mechanisms to receive feedback from 
        stakeholders on how the Agency can most effectively receive 
        covered cyber incident reports, ransom payment reports, and 
        other voluntarily provided information;
            ``(5) facilitate the timely sharing, on a voluntary basis, 
        between relevant critical infrastructure owners and operators 
        of information relating to covered cyber incidents and ransom 
        payments, particularly with respect to ongoing cyber threats or 
        security vulnerabilities and identify and disseminate ways to 
        prevent or mitigate similar incidents in the future;
            ``(6) for a covered cyber incident, including a ransomware 
        attack, that also satisfies the definition of a substantial 
        cyber incident, or is part of a group of related cyber 
        incidents that together satisfy such definition, conduct a 
        review of the details surrounding the covered cyber incident or 
        group of those incidents and identify and disseminate ways to 
        prevent or mitigate similar incidents in the future;
            ``(7) with respect to covered cyber incident reports under 
        subsection (c) involving an ongoing cyber threat or security 
        vulnerability, immediately review those reports for cyber 
        threat indicators that can be anonymized and disseminated, with 
        defensive measures, to appropriate stakeholders, in 
        coordination with other divisions within the Agency, as 
        appropriate;
            ``(8) publish quarterly unclassified, public reports that 
        may be based on the unclassified information contained in the 
        reports required under subsection (c);
            ``(9) proactively identify opportunities and perform 
        analyses, consistent with the protections in section 2235, to 
        leverage and utilize data on ransom attacks to support law 
        enforcement operations to identify, track, and seize ransom 
        payments utilizing virtual currencies, to the greatest extent 
        practicable;
            ``(10) proactively identify opportunities, consistent with 
        the protections in section 2235, to leverage and utilize data 
        on cyber incidents in a manner that enables and strengthens 
        cybersecurity research carried out by academic institutions and 
        other private sector organizations, to the greatest extent 
        practicable;
            ``(11) on a not less frequently than annual basis, analyze 
        public disclosures made pursuant to parts 229 and 249 of title 
        17, Code of Federal Regulations, or any subsequent document 
        submitted to the Securities and Exchange Commission by entities 
        experiencing cyber incidents and compare such disclosures to 
        reports received by the Office; and
            ``(12) in accordance with section 2235, not later than 24 
        hours after receiving a covered cyber incident report or ransom 
        payment report, share the reported information with appropriate 
        Sector Risk Management Agencies and other appropriate agencies 
        as determined by the Director of Office Management and Budget, 
        in consultation with the Director and the National Cyber 
        Director.
    ``(c) Periodic Reporting.--Not later than 60 days after the 
effective date of the interim final rule required under section 
2232(b)(1), and on the first day of each month thereafter, the 
Director, in consultation with the Attorney General and the Director of 
National Intelligence, shall submit to the National Cyber Director, the 
majority leader of the Senate, the minority leader of the Senate, the 
Speaker of the House of Representatives, the minority leader of the 
House of Representatives, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Committee on Homeland 
Security of the House of Representatives a report that characterizes 
the national cyber threat landscape, including the threat facing 
Federal agencies and covered entities and applicable intelligence and 
law enforcement information, covered cyber incidents, and ransomware 
attacks, as of the date of the report, which shall--
            ``(1) include the total number of reports submitted under 
        sections 2232 and 2233 during the preceding month, including a 
        breakdown of required and voluntary reports;
            ``(2) include any identified trends in covered cyber 
        incidents and ransomware attacks over the course of the 
        preceding month and as compared to previous reports, including 
        any trends related to the information collected in the reports 
        submitted under sections 2232 and 2233, including--
                    ``(A) the infrastructure, tactics, and techniques 
                malicious cyber actors commonly use; and
                    ``(B) intelligence gaps that have, or currently 
                are, impeding the ability to counter covered cyber 
                incidents and ransomware threats;
            ``(3) include a summary of the known uses of the 
        information in reports submitted under sections 2232 and 2233; 
        and
            ``(4) be unclassified, but may include a classified annex.
    ``(d) Organization.--The Director may organize the Office within 
the Agency as the Director deems appropriate, including harmonizing the 
functions of the Office with other authorized activities.

``SEC. 2232. REQUIRED REPORTING OF CERTAIN CYBER INCIDENTS.

    ``(a) In General.--
            ``(1) Covered cyber incident reports.--A covered entity 
        that is a victim of a covered cyber incident shall report the 
        covered cyber incident cyber incident to the Director not later 
        than 72 hours after the covered entity reasonably believes that 
        the covered cyber incident has occurred.
            ``(2) Ransom payment reports.--An entity, including a 
        covered entity and except for an individual, a small 
        organization, or a religious institution, that makes a ransom 
        payment as the result of a ransomware attack against the entity 
        shall report the payment to the Director not later than 24 
        hours after the ransom payment has been made.
            ``(3) Supplemental reports.--A covered entity shall 
        promptly submit to the Director an update or supplement to a 
        previously submitted covered cyber incident report if new or 
        different information becomes available or if the covered 
        entity makes a ransom payment after submitting a covered cyber 
        incident report required under paragraph (1).
            ``(4) Preservation of information.--Any entity subject to 
        requirements of paragraph (1), (2), or (3) shall preserve data 
        relevant to the covered cyber incident or ransom payment in 
        accordance with procedures established in the interim final 
        rule and final rule issued pursuant to subsection (b).
            ``(5) Exceptions.--
                    ``(A) Reporting of covered cyber incident with 
                ransom payment.--If a covered cyber incident includes a 
                ransom payment such that the reporting requirements 
                under paragraphs (1) and (2) apply, the covered entity 
                may submit a single report to satisfy the requirements 
                of both paragraphs in accordance with procedures 
                established in the interim final rule and final rule 
                issued pursuant to subsection (b).
                    ``(B) Substantially similar reported information.--
                The requirements under paragraphs (1), (2), and (3) 
                shall not apply to an entity required by law, 
                regulation, or contract to report substantially similar 
                information to another Federal agency within a 
                substantially similar timeframe.
            ``(6) Manner, timing, and form of reports.--Reports made 
        under paragraphs (1), (2), and (3) shall be made in the manner 
        and form, and within the time period in the case of reports 
        made under paragraph (3), prescribed according to the interim 
        final rule and final rule issued pursuant to subsection (b).
            ``(7) Effective date.--Paragraphs (1) through (4) shall 
        take effect on the dates prescribed in the interim final rule 
        and the final rule issued pursuant to subsection (b), except 
        that the requirements of paragraphs (1) through (4) shall not 
        be effective for a period for more than 18 months after the 
        effective date of the interim final rule if the Director has 
        not issued a final rule pursuant to subsection (b)(2).
    ``(b) Rulemaking.--
            ``(1) Interim final rule.--Not later than 270 days after 
        the date of enactment of this section, and after a 60-day 
        consultative period, followed by a 90-day comment period with 
        appropriate stakeholders, the Director, in consultation with 
        Sector Risk Management Agencies and the heads of other Federal 
        agencies, shall publish in the Federal Register an interim 
        final rule to implement subsection (a).
            ``(2) Final rule.--Not later than 1 year after publication 
        of the interim final rule under paragraph (1), the Director 
        shall publish a final rule to implement subsection (a).
            ``(3) Subsequent rulemakings.--Any rule to implement 
        subsection (a) issued after publication of the final rule under 
        paragraph (2), including a rule to amend or revise the final 
        rule issued under paragraph (2), shall comply with the 
        requirements under chapter 5 of title 5, United States Code, 
        including the issuance of a notice of proposed rulemaking under 
        section 553 of such title.
    ``(c) Elements.--The interim final rule and final rule issued 
pursuant to subsection (b) shall be composed of the following elements:
            ``(1) A clear description of the types of entities that 
        constitute covered entities, based on--
                    ``(A) the consequences that disruption to or 
                compromise of such an entity could cause to national 
                security, economic security, or public health and 
                safety;
                    ``(B) the likelihood that such an entity may be 
                targeted by a malicious cyber actor, including a 
                foreign country; and
                    ``(C) the extent to which damage, disruption, or 
                unauthorized access to such an entity, including the 
                accessing of sensitive cybersecurity vulnerability 
                information or penetration testing tools or techniques, 
                will likely enable the disruption of the reliable 
                operation of critical infrastructure.
            ``(2) A clear description of the types of substantial cyber 
        incidents that constitute covered cyber incidents, which 
        shall--
                    ``(A) at a minimum, require the occurrence of--
                            ``(i) the unauthorized access to an 
                        information system or network with a 
                        substantial loss of confidentiality, integrity, 
                        or availability of such information system or 
                        network, or a serious impact on the safety and 
                        resiliency of operational systems and 
                        processes;
                            ``(ii) a disruption of business or 
                        industrial operations due to a cyber incident; 
                        or
                            ``(iii) an occurrence described in clause 
                        (i) or (ii) due to loss of service facilitated 
                        through, or caused by, a compromise of a cloud 
                        service provider, managed service provider, or 
                        other third-party data hosting provider or by a 
                        supply chain compromise;
                    ``(B) consider--
                            ``(i) the sophistication or novelty of the 
                        tactics used to perpetrate such an incident, as 
                        well as the type, volume, and sensitivity of 
                        the data at issue;
                            ``(ii) the number of individuals directly 
                        or indirectly affected or potentially affected 
                        by such an incident; and
                            ``(iii) potential impacts on industrial 
                        control systems, such as supervisory control 
                        and data acquisition systems, distributed 
                        control systems, and programmable logic 
                        controllers; and
                    ``(C) exclude--
                            ``(i) any event where the cyber incident is 
                        perpetuated by a United States Government 
                        entity, good-faith security research, or in 
                        response to an invitation by the owner or 
                        operator of the information system for third 
                        parties to find vulnerabilities in the 
                        information system, such as a through a 
                        vulnerability disclosure program or the use of 
                        authorized penetration testing services; and
                            ``(ii) the threat of disruption as 
                        extortion, as described in section 2201(9)(A).
            ``(3) A requirement that, if a covered cyber incident or a 
        ransom payment occurs following an exempted threat described in 
        paragraph (2)(C)(ii), the entity shall comply with the 
        requirements in this subtitle in reporting the covered cyber 
        incident or ransom payment.
            ``(4) A clear description of the specific required contents 
        of a report pursuant to subsection (a)(1), which shall include 
        the following information, to the extent applicable and 
        available, with respect to a covered cyber incident:
                    ``(A) A description of the covered cyber incident, 
                including--
                            ``(i) identification and a description of 
                        the function of the affected information 
                        systems, networks, or devices that were, or are 
                        reasonably believed to have been, affected by 
                        such incident;
                            ``(ii) a description of the unauthorized 
                        access with substantial loss of 
                        confidentiality, integrity, or availability of 
                        the affected information system or network or 
                        disruption of business or industrial 
                        operations;
                            ``(iii) the estimated date range of such 
                        incident; and
                            ``(iv) the impact to the operations of the 
                        covered entity.
                    ``(B) Where applicable, a description of the 
                vulnerabilities, tactics, techniques, and procedures 
                used to perpetuate the covered cyber incident.
                    ``(C) Where applicable, any identifying or contact 
                information related to each actor reasonably believed 
                to be responsible for such incident.
                    ``(D) Where applicable, identification of the 
                category or categories of information that was, or is 
                reasonably believed to have been, accessed or acquired 
                by an unauthorized person.
                    ``(E) The name and, if applicable, taxpayer 
                identification number or other unique identifier of the 
                entity impacted by the covered cyber incident.
                    ``(F) Contact information, such as telephone number 
                or electronic mail address, that the Office may use to 
                contact the covered entity or an authorized agent of 
                such covered entity, or, where applicable, the service 
                provider of such covered entity acting with the express 
                permission, and at the direction, of the covered entity 
                to assist with compliance with the requirements of this 
                subtitle.
            ``(5) A clear description of the specific required contents 
        of a report pursuant to subsection (a)(2), which shall be the 
        following information, to the extent applicable and available, 
        with respect to a ransom payment:
                    ``(A) A description of the ransomware attack, 
                including the estimated date range of the attack.
                    ``(B) Where applicable, a description of the 
                vulnerabilities, tactics, techniques, and procedures 
                used to perpetuate the ransomware attack.
                    ``(C) Where applicable, any identifying or contact 
                information related to the actor or actors reasonably 
                believed to be responsible for the ransomware attack.
                    ``(D) The name and, if applicable, taxpayer 
                identification number or other unique identifier of the 
                entity that made the ransom payment.
                    ``(E) Contact information, such as telephone number 
                or electronic mail address, that the Office may use to 
                contact the entity that made the ransom payment or an 
                authorized agent of such covered entity, or, where 
                applicable, the service provider of such covered entity 
                acting with the express permission, and at the 
                direction of, that entity to assist with compliance 
                with the requirements of this subtitle.
                    ``(F) The date of the ransom payment.
                    ``(G) The ransom payment demand, including the type 
                of virtual currency or other commodity requested, if 
                applicable.
                    ``(H) The ransom payment instructions, including 
                information regarding where to send the payment, such 
                as the virtual currency address or physical address the 
                funds were requested to be sent to, if applicable.
                    ``(I) The amount of the ransom payment.
                    ``(J) A summary of the due diligence review 
                required under subsection (e).
            ``(6) A clear description of the types of data required to 
        be preserved pursuant to subsection (a)(4) and the period of 
        time for which the data is required to be preserved.
            ``(7) Deadlines for submitting reports to the Director 
        required under subsection (a)(3), which shall--
                    ``(A) be established by the Director in 
                consultation with the Council;
                    ``(B) consider any existing regulatory reporting 
                requirements similar in scope, purpose, and timing to 
                the reporting requirements to which such a covered 
                entity may also be subject, and make efforts to 
                harmonize the timing and contents of any such reports 
                to the maximum extent practicable; and
                    ``(C) balance the need for situational awareness 
                with the ability of the covered entity to conduct 
                incident response and investigations.
            ``(8) Procedures for--
                    ``(A) entities to submit reports required by 
                paragraphs (1), (2), and (3) of subsection (a), which 
                shall include, at a minimum, a concise, user-friendly 
                web-based form;
                    ``(B) the Office to carry out the enforcement 
                provisions of section 2233, including with respect to 
                the issuance of subpoenas and other aspects of 
                noncompliance;
                    ``(C) implementing the exceptions provided in 
                subparagraphs (A), (B), and (D) of subsection (a)(5); 
                and
                    ``(D) anonymizing and safeguarding information 
                received and disclosed through covered cyber incident 
                reports and ransom payment reports that is known to be 
                personal information of a specific individual or 
                information that identifies a specific individual that 
                is not directly related to a cybersecurity threat.
            ``(9) A clear description of the types of entities that 
        constitute other private sector entities for purposes of 
        section 2230(b)(7).
    ``(d) Third Party Report Submission and Ransom Payment.--
            ``(1) Report submission.--An entity, including a covered 
        entity, that is required to submit a covered cyber incident 
        report or a ransom payment report may use a third party, such 
        as an incident response company, insurance provider, service 
        provider, information sharing and analysis organization, or law 
        firm, to submit the required report under subsection (a).
            ``(2) Ransom payment.--If an entity impacted by a 
        ransomware attack uses a third party to make a ransom payment, 
        the third party shall not be required to submit a ransom 
        payment report for itself under subsection (a)(2).
            ``(3) Duty to report.--Third-party reporting under this 
        subparagraph does not relieve a covered entity or an entity 
        that makes a ransom payment from the duty to comply with the 
        requirements for covered cyber incident report or ransom 
        payment report submission.
            ``(4) Responsibility to advise.--Any third party used by an 
        entity that knowingly makes a ransom payment on behalf of an 
        entity impacted by a ransomware attack shall advise the 
        impacted entity of the responsibilities of the impacted entity 
        regarding a due diligence review under subsection (e) and 
        reporting ransom payments under this section.
    ``(e) Due Diligence Review.--Before the date on which a covered 
entity, or an entity that would be required to submit a ransom payment 
report under this section if that entity makes a ransom payment, makes 
a ransom payment relating to a ransomware attack, the covered entity or 
entity shall conduct a due diligence review of alternatives to making 
the ransom payment, including an analysis of whether the covered entity 
or entity can recover from the ransomware attack through other means.
    ``(f) Outreach to Covered Entities.--
            ``(1) In general.--The Director shall conduct an outreach 
        and education campaign to inform likely covered entities, 
        entities that offer or advertise as a service to customers to 
        make or facilitate ransom payments on behalf of entities 
        impacted by ransomware attacks, potential ransomware attack 
        victims, and other appropriate entities of the requirements of 
        paragraphs (1), (2), and (3) of subsection (a).
            ``(2) Elements.--The outreach and education campaign under 
        paragraph (1) shall include the following:
                    ``(A) An overview of the interim final rule and 
                final rule issued pursuant to subsection (b).
                    ``(B) An overview of mechanisms to submit to the 
                Office covered cyber incident reports and information 
                relating to the disclosure, retention, and use of 
                incident reports under this section.
                    ``(C) An overview of the protections afforded to 
                covered entities for complying with the requirements 
                under paragraphs (1), (2), and (3) of subsection (a).
                    ``(D) An overview of the steps taken under section 
                2234 when a covered entity is not in compliance with 
                the reporting requirements under subsection (a).
                    ``(E) Specific outreach to cybersecurity vendors, 
                incident response providers, cybersecurity insurance 
                entities, and other entities that may support covered 
                entities or ransomware attack victims.
                    ``(F) An overview of the privacy and civil 
                liberties requirements in this subtitle.
            ``(3) Coordination.--In conducting the outreach and 
        education campaign required under paragraph (1), the Director 
        may coordinate with--
                    ``(A) the Critical Infrastructure Partnership 
                Advisory Council established under section 871;
                    ``(B) information sharing and analysis 
                organizations;
                    ``(C) trade associations;
                    ``(D) information sharing and analysis centers;
                    ``(E) sector coordinating councils; and
                    ``(F) any other entity as determined appropriate by 
                the Director.
    ``(g) Evaluation of Standards.--
            ``(1) In general.--Before issuing the final rule pursuant 
        to subsection (b)(2), the Director shall review the data 
        collected by the Office, and in consultation with other 
        appropriate entities, assess the effectiveness of the rule with 
        respect to--
                    ``(A) the number of reports received;
                    ``(B) the utility of the reports received;
                    ``(C) the number of supplemental reports required 
                to be submitted; and
                    ``(D) any other factor determined appropriate by 
                the Director.
            ``(2) Submission to congress.--The Director 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 the results of the evaluation described in 
        paragraph (1) and may thereafter, in accordance with the 
        requirements under subsection (b), publish in the Federal 
        Register a final rule implementing this section.
    ``(h) Organization of Reports.--Notwithstanding chapter 35 of title 
44, United States Code (commonly known as the `Paperwork Reduction 
Act'), the Director may reorganize and reformat the means by which 
covered cyber incident reports, ransom payment reports, and any other 
voluntarily offered information is submitted to the Office.

``SEC. 2233. VOLUNTARY REPORTING OF OTHER CYBER INCIDENTS.

    ``(a) In General.--Entities may voluntarily report incidents or 
ransom payments to the Director that are not required under paragraph 
(1), (2), or (3) of section 2232(a), but may enhance the situational 
awareness of cyber threats.
    ``(b) Voluntary Provision of Additional Information in Required 
Reports.--Entities may voluntarily include in reports required under 
paragraph (1), (2), or (3) of section 2232(a) information that is not 
required to be included, but may enhance the situational awareness of 
cyber threats.
    ``(c) Application of Protections.--The protections under section 
2235 applicable to covered cyber incident reports shall apply in the 
same manner and to the same extent to reports and information submitted 
under subsections (a) and (b).

``SEC. 2234. NONCOMPLIANCE WITH REQUIRED REPORTING.

    ``(a) Purpose.--In the event that an entity that is required to 
submit a report under section 2232(a) fails to comply with the 
requirement to report, the Director may obtain information about the 
incident or ransom payment by engaging the entity directly to request 
information about the incident or ransom payment, and if the Director 
is unable to obtain information through such engagement, by issuing a 
subpoena to the entity, pursuant to subsection (c), to gather 
information sufficient to determine whether a covered cyber incident or 
ransom payment has occurred, and, if so, whether additional action is 
warranted pursuant to subsection (d).
    ``(b) Initial Request for Information.--
            ``(1) In general.--If the Director has reason to believe, 
        whether through public reporting or other information in the 
        possession of the Federal Government, including through 
        analysis performed pursuant to paragraph (1) or (2) of section 
        2231(b), that an entity has experienced a covered cyber 
        incident or made a ransom payment but failed to report such 
        incident or payment to the Office within 72 hours in accordance 
        to section 2232(a), the Director shall request additional 
        information from the entity to confirm whether or not a covered 
        cyber incident or ransom payment has occurred.
            ``(2) Treatment.--Information provided to the Office in 
        response to a request under paragraph (1) shall be treated as 
        if it was submitted through the reporting procedures 
        established in section 2232.
    ``(c) Authority to Issue Subpoenas and Debar.--
            ``(1) In general.--If, after the date that is 72 hours from 
        the date on which the Director made the request for information 
        in subsection (b), the Director has received no response from 
        the entity from which such information was requested, or 
        received an inadequate response, the Director may issue to such 
        entity a subpoena to compel disclosure of information the 
        Director deems necessary to determine whether a covered cyber 
        incident or ransom payment has occurred and obtain the 
        information required to be reported pursuant to section 2232 
        and any implementing regulations.
            ``(2) Civil action.--
                    ``(A) In general.--If an entity fails to comply 
                with a subpoena, the Director may refer the matter to 
                the Attorney General to bring a civil action in a 
                district court of the United States to enforce such 
                subpoena.
                    ``(B) Venue.--An action under this paragraph may be 
                brought in the judicial district in which the entity 
                against which the action is brought resides, is found, 
                or does business.
                    ``(C) Contempt of court.--A court may punish a 
                failure to comply with a subpoena issued under this 
                subsection as a contempt of court.
            ``(3) Non-delegation.--The authority of the Director to 
        issue a subpoena under this subsection may not be delegated.
            ``(4) Debarment of federal contractors.--If a covered 
        entity with a Federal Government contract, grant, or 
        cooperative agreement fails to comply with a subpoena issued 
        under this subsection--
                    ``(A) the Director may refer the matter to the 
                Administrator of General Services; and
                    ``(B) upon receiving a referral from the Director, 
                the Administrator of General Services may impose 
                additional available penalties, including suspension or 
                debarment.
    ``(d) Provision of Certain Information to Attorney General.--
            ``(1) In general.--Notwithstanding section 2235(a) and 
        subsection (b)(2) of this section, if the Director determines, 
        based on the information provided in response to the subpoena 
        issued pursuant to subsection (c), that the facts relating to 
        the covered cyber incident or ransom payment at issue may 
        constitute grounds for a regulatory enforcement action or 
        criminal prosecution, the Director may provide that information 
        to the Attorney General or the appropriate regulator, who may 
        use that information for a regulatory enforcement action or 
        criminal prosecution.
            ``(2) Application to certain entities and third parties.--A 
        covered cyber incident or ransom payment report submitted to 
        the Office by an entity that makes a ransom payment or third 
        party under section 2232 shall not be used by any Federal, 
        State, Tribal, or local government to investigate or take 
        another law enforcement action against the entity that makes a 
        ransom payment or third party.
            ``(3) Rule of construction.--Nothing in this subtitle shall 
        be construed to provide an entity that submits a covered cyber 
        incident report or ransom payment report under section 2232 any 
        immunity from law enforcement action for making a ransom 
        payment otherwise prohibited by law.
    ``(e) Considerations.--When determining whether to exercise the 
authorities provided under this section, the Director shall take into 
consideration--
            ``(1) the size and complexity of the entity;
            ``(2) the complexity in determining if a covered cyber 
        incident has occurred;
            ``(3) prior interaction with the Agency or awareness of the 
        entity of the policies and procedures of the Agency for 
        reporting covered cyber incidents and ransom payments; and
            ``(4) for non-covered entities required to submit a ransom 
        payment report, the ability of the entity to perform a due 
        diligence review pursuant to section 2232(e).
    ``(f) Exclusions.--This section shall not apply to a State, local, 
Tribal, or territorial government entity.
    ``(g) Report to Congress.--The Director shall submit to Congress an 
annual report on the number of times the Director--
            ``(1) issued an initial request for information pursuant to 
        subsection (b);
            ``(2) issued a subpoena pursuant to subsection (c);
            ``(3) brought a civil action pursuant to subsection (c)(2); 
        or
            ``(4) conducted additional actions pursuant to subsection 
        (d).

``SEC. 2235. INFORMATION SHARED WITH OR PROVIDED TO THE FEDERAL 
              GOVERNMENT.

    ``(a) Disclosure, Retention, and Use.--
            ``(1) Authorized activities.--Information provided to the 
        Office or Agency pursuant to section 2232 may be disclosed to, 
        retained by, and used by, consistent with otherwise applicable 
        provisions of Federal law, any Federal agency or department, 
        component, officer, employee, or agent of the Federal 
        Government solely for--
                    ``(A) a cybersecurity purpose;
                    ``(B) the purpose of identifying--
                            ``(i) a cyber threat, including the source 
                        of the cyber threat; or
                            ``(ii) a security vulnerability;
                    ``(C) the purpose of responding to, or otherwise 
                preventing or mitigating, a specific threat of death, a 
                specific threat of serious bodily harm, or a specific 
                threat of serious economic harm, including a terrorist 
                act or a use of a weapon of mass destruction;
                    ``(D) the purpose of responding to, investigating, 
                prosecuting, or otherwise preventing or mitigating, a 
                serious threat to a minor, including sexual 
                exploitation and threats to physical safety; or
                    ``(E) the purpose of preventing, investigating, 
                disrupting, or prosecuting an offense arising out of a 
                covered cyber incident or any of the offenses listed in 
                section 105(d)(5)(A)(v) of the Cybersecurity Act of 
                2015 (6 U.S.C. 1504(d)(5)(A)(v)).
            ``(2) Agency actions after receipt.--
                    ``(A) Rapid, confidential sharing of cyber threat 
                indicators.--Upon receiving a covered cyber incident or 
                ransom payment report submitted pursuant to this 
                section, the Office shall immediately review the report 
                to determine whether the incident that is the subject 
                of the report is connected to an ongoing cyber threat 
                or security vulnerability and where applicable, use 
                such report to identify, develop, and rapidly 
                disseminate to appropriate stakeholders actionable, 
                anonymized cyber threat indicators and defensive 
                measures.
                    ``(B) Standards for sharing security 
                vulnerabilities.--With respect to information in a 
                covered cyber incident or ransom payment report 
                regarding a security vulnerability referred to in 
                paragraph (1)(B)(ii), the Director shall develop 
                principles that govern the timing and manner in which 
                information relating to security vulnerabilities may be 
                shared, consistent with common industry best practices 
                and United States and international standards.
            ``(3) Privacy and civil liberties.--Information contained 
        in covered cyber incident and ransom payment reports submitted 
        to the Office pursuant to section 2232 shall be retained, used, 
        and disseminated, where permissible and appropriate, by the 
        Federal Government in accordance with processes to be developed 
        for the protection of personal information adopted pursuant to 
        section 105 of the Cybersecurity Act of 2015 (6 U.S.C. 1504) 
        and in a manner that protects from unauthorized use or 
        disclosure any information that may contain--
                    ``(A) personal information of a specific 
                individual; or
                    ``(B) information that identifies a specific 
                individual that is not directly related to a 
                cybersecurity threat.
            ``(4) Digital security.--The Office shall ensure that 
        reports submitted to the Office pursuant to section 2232, and 
        any information contained in those reports, are collected, 
        stored, and protected at a minimum in accordance with the 
        requirements for moderate impact Federal information systems, 
        as described in Federal Information Processing Standards 
        Publication 199, or any successor document.
            ``(5) Prohibition on use of information in regulatory 
        actions.--A Federal, State, local, or Tribal government shall 
        not use information about a covered cyber incident or ransom 
        payment obtained solely through reporting directly to the 
        Office in accordance with this subtitle to regulate, including 
        through an enforcement action, the lawful activities of any 
        non-Federal entity.
    ``(b) No Waiver of Privilege or Protection.--The submission of a 
report under section 2232 to the Office shall not constitute a waiver 
of any applicable privilege or protection provided by law, including 
trade secret protection and attorney-client privilege.
    ``(c) Exemption From Disclosure.--Information contained in a report 
submitted to the Office under section 2232 shall be exempt from 
disclosure under section 552(b)(3)(B) of title 5, United States Code 
(commonly known as the `Freedom of Information Act') and any State, 
Tribal, or local provision of law requiring disclosure of information 
or records.
    ``(d) Ex Parte Communications.--The submission of a report to the 
Agency under section 2232 shall not be subject to a rule of any Federal 
agency or department or any judicial doctrine regarding ex parte 
communications with a decision making official.
    ``(e) Liability Protections.--
            ``(1) In general.--No cause of action shall lie or be 
        maintained in any court by any person or entity and any such 
        action shall be promptly dismissed for the submission of a 
        report pursuant to section 2232(a) that is submitted in 
        conformance with this subtitle and the rules promulgated under 
        section 2232(b), except that this subsection shall not apply 
        with regard to an action by the Federal Government pursuant to 
        section 2234(c)(2).
            ``(2) Scope.--The liability protections provided in 
        subsection (e) shall only apply to or affect litigation that is 
        solely based on the submission of a covered cyber incident 
        report or ransom payment report to the Office.
            ``(3) Restrictions.--Notwithstanding paragraph (2), no 
        report submitted to the Agency pursuant to this subtitle or any 
        communication, document, material, or other record, created for 
        the sole purpose of preparing, drafting, or submitting such 
        report, may be received in evidence, subject to discovery, or 
        otherwise used in any trial, hearing, or other proceeding in or 
        before any court, regulatory body, or other authority of the 
        United States, a State, or a political subdivision thereof, 
        provided that nothing in this subtitle shall create a defense 
        to discovery or otherwise affect the discovery of any 
        communication, document, material, or other record not created 
        for the sole purpose of preparing, drafting, or submitting such 
        report.
    ``(f) Sharing With Non-Federal Entities.--The Agency shall 
anonymize the victim who reported the information when making 
information provided in reports received under section 2232 available 
to critical infrastructure owners and operators and the general public.
    ``(g) Proprietary Information.--Information contained in a report 
submitted to the Agency under section 2232 shall be considered the 
commercial, financial, and proprietary information of the covered 
entity when so designated by the covered entity.''.
    (c) Technical and Conforming Amendment.--The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (Public Law 107-296; 
116 Stat. 2135) is amended by inserting after the items relating to 
subtitle B of title XXII the following:

                 ``Subtitle C--Cyber Incident Reporting

``Sec. 2230. Definitions.
``Sec. 2231. Cyber Incident Review Office.
``Sec. 2232. Required reporting of certain cyber incidents.
``Sec. 2233. Voluntary reporting of other cyber incidents.
``Sec. 2234. Noncompliance with required reporting.
``Sec. 2235. Information shared with or provided to the Federal 
                            Government.''.

SEC. 4. FEDERAL SHARING OF INCIDENT REPORTS.

    (a) Cyber Incident Reporting Sharing.--Notwithstanding any other 
provision of law or regulation, any Federal agency that receives a 
report from an entity of a cyber attack or cyber incident, including a 
ransomware attack, shall provide all such information to the Director 
of the Cybersecurity Infrastructure Security Agency not later than 24 
hours after receiving the report, unless a shorter period is required 
by an agreement made between the Cyber Incident Review Office 
established under section 2231 of the Homeland Security Act of 2002, as 
added by section 3(b) of this Act, and another Federal entity.
    (b) Creation of Council.--Section 1752(c) of the William M. (Mac) 
Thornberry National Defense Authorization Act for Fiscal Year 2021 (6 
U.S.C. 1500(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (G), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (H) as 
                subparagraph (I); and
                    (C) by inserting after subparagraph (G) the 
                following:
                    ``(H) lead an intergovernmental Cyber Incident 
                Reporting Council, in coordination with the Director of 
                the Office of Management and Budget and the Director of 
                the Cybersecurity and Infrastructure Security Agency 
                and in consultation with Sector Risk Management 
                Agencies (as defined in section 2201 of the Homeland 
                Security Act of 2002 (6 U.S.C. 651)) and other 
                appropriate Federal agencies, to coordinate, 
                deconflict, and harmonize Federal incident reporting 
                requirements, including those issued through 
                regulations, for covered entities (as defined in 
                section 2230 of such Act) and entities that make a 
                ransom payment (as defined in such section 2201 (6 
                U.S.C. 651)); and''; and
            (2) by adding at the end the following:
            ``(3) Rule of construction.--Nothing in paragraph (1)(H) 
        shall be construed to provide any additional regulatory 
        authority to any Federal entity.''.
    (c) Harmonizing Reporting Requirements.--The National Cyber 
Director shall, in consultation with the Director, the Cyber Incident 
Reporting Council described in section 1752(c)(1)(H) of the William M. 
(Mac) Thornberry National Defense Authorization Act for Fiscal Year 
2021 (6 U.S.C. 1500(c)(1)(H)), and the Director of the Office of 
Management and Budget, to the maximum extent practicable--
            (1) periodically review existing regulatory requirements, 
        including the information required in such reports, to report 
        cyber incidents and ensure that any such reporting requirements 
        and procedures avoid conflicting, duplicative, or burdensome 
        requirements; and
            (2) coordinate with the Director and regulatory authorities 
        that receive reports relating to cyber incidents to identify 
        opportunities to streamline reporting processes, and where 
        feasible, facilitate interagency agreements between such 
        authorities to permit the sharing of such reports, consistent 
        with applicable law and policy, without impacting the ability 
        of such agencies to gain timely situational awareness of a 
        covered cyber incident or ransom payment.

SEC. 5. RANSOMWARE VULNERABILITY WARNING PILOT PROGRAM.

    (a) Program.--Not later than 90 days after the date of enactment of 
this Act, the Director shall establish a ransomware vulnerability 
warning program to leverage existing authorities and technology to 
specifically develop processes and procedures, and to dedicate 
resources, to identifying information systems that contain security 
vulnerabilities associated with common ransomware attacks, and to 
notify the owners of those vulnerable systems of their security 
vulnerability.
    (b) Identification of Vulnerable Systems.--The pilot program 
established under subsection (a) shall--
            (1) identify the most common security vulnerabilities 
        utilized in ransomware attacks and mitigation techniques; and
            (2) utilize existing authorities to identify Federal and 
        other relevant information systems that contain the security 
        vulnerabilities identified in paragraph (1).
    (c) Entity Notification.--
            (1) Identification.--If the Director is able to identify 
        the entity at risk that owns or operates a vulnerable 
        information system identified in subsection (b), the Director 
        may notify the owner of the information system.
            (2) No identification.--If the Director is not able to 
        identify the entity at risk that owns or operates a vulnerable 
        information system identified in subsection (b), the Director 
        may utilize the subpoena authority pursuant to section 2209 of 
        the Homeland Security Act of 2002 (6 U.S.C. 659) to identify 
        and notify the entity at risk pursuant to the procedures within 
        that section.
            (3) Required information.--A notification made under 
        paragraph (1) shall include information on the identified 
        security vulnerability and mitigation techniques.
    (d) Prioritization of Notifications.--To the extent practical, the 
Director shall prioritize covered entities for identification and 
notification activities under the pilot program established under this 
section.
    (e) Limitation on Procedures.--No procedure, notification, or other 
authorities utilized in the execution of the pilot program established 
under subsection (a) shall require an owner or operator of a vulnerable 
information system to take any action as a result of a notice of a 
security vulnerability made pursuant to subsection (c).
    (f) Rule of Construction.--Nothing in this section shall be 
construed to provide additional authorities to the Director to identify 
vulnerabilities or vulnerable systems.

SEC. 6. RANSOMWARE THREAT MITIGATION ACTIVITIES.

    (a) Joint Ransomware Task Force.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the National Cyber Director shall 
        establish and chair the Joint Ransomware Task Force to 
        coordinate an ongoing, nationwide campaign against ransomware 
        attacks, and identify and pursue opportunities for 
        international cooperation.
            (2) Composition.--The Joint Ransomware Task Force shall 
        consist of participants from Federal agencies, as determined 
        appropriate by the National Cyber Director in consultation with 
        the Secretary of Homeland Security.
            (3) Responsibilities.--The Joint Ransomware Task Force, 
        utilizing only existing authorities of each participating 
        agency, shall coordinate across the Federal Government the 
        following activities:
                    (A) Prioritization of intelligence-driven 
                operations to disrupt specific ransomware actors.
                    (B) Consult with relevant private sector, State, 
                local, Tribal, and territorial governments and 
                international stakeholders to identify needs and 
                establish mechanisms for providing input into the Task 
                Force.
                    (C) Identifying, in consultation with relevant 
                entities, a list of highest threat ransomware entities 
                updated on an ongoing basis, in order to facilitate--
                            (i) prioritization for Federal action by 
                        appropriate Federal agencies; and
                            (ii) identify metrics for success of said 
                        actions.
                    (D) Disrupting ransomware criminal actors, 
                associated infrastructure, and their finances.
                    (E) Facilitating coordination and collaboration 
                between Federal entities and relevant entities, 
                including the private sector, to improve Federal 
                actions against ransomware threats.
                    (F) Collection, sharing, and analysis of ransomware 
                trends to inform Federal actions.
                    (G) Creation of after-action reports and other 
                lessons learned from Federal actions that identify 
                successes and failures to improve subsequent actions.
                    (H) Any other activities determined appropriate by 
                the task force to mitigate the threat of ransomware 
                attacks against Federal and non-Federal entities.
    (b) Clarifying Private-sector Lawful Defensive Measures.--Not later 
than 180 days after the date of enactment of this Act, the National 
Cyber Director, in coordination with the Secretary of Homeland Security 
and the Attorney General, shall submit to the Committee on Homeland 
Security and Governmental Affairs and the Committee on the Judiciary of 
the Senate and the Committee on Homeland Security, the Committee on the 
Judiciary, and the Committee on Oversight and Reform of the House of 
Representatives a report that describes defensive measures that 
private-sector actors can take when countering ransomware attacks and 
what laws need to be clarified to enable that action.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to provide any additional authority to any Federal agency.

SEC. 7. CONGRESSIONAL REPORTING.

    (a) Report on Stakeholder Engagement.--Not later than 30 days after 
the date on which the Director issues the interim final rule under 
section 2232(b)(1) of the Homeland Security Act of 2002, as added by 
section 3(b) of this Act, the Director shall submit to the Committee on 
Homeland Security and Government Affairs of the Senate and the 
Committee on Homeland Security of the House of Representatives a report 
that describes how the Director engaged stakeholders in the development 
of the interim final rule.
    (b) Report on Opportunities to Strengthen Security Research.--Not 
later than 1 year after the date of enactment of this Act, the Director 
shall submit to the Committee on Homeland Security and Government 
Affairs of the Senate and the Committee on Homeland Security of the 
House of Representatives a report describing how the Cyber Incident 
Review Office has carried out activities under section 2231(b)(9) of 
the Homeland Security Act of 2002, as added by section 3(b) of this 
Act, by proactively identifying opportunities to use cyber incident 
data to inform and enabling cybersecurity research within the academic 
and private sector.
    (c) Report on Ransomware Vulnerability Warning Pilot Program.--Not 
later than 1 year after the date of enactment of this Act, and annually 
thereafter for the duration of the pilot program established under 
section 5, the Director 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, which may 
include a classified annex, on the effectiveness of the pilot program, 
which shall include a discussion of the following:
            (1) The effectiveness of the notifications under section 
        5(c) to mitigate security vulnerabilities and the threat of 
        ransomware.
            (2) The identification of most common vulnerabilities 
        utilized in ransomware.
            (3) The number of notifications issued during the preceding 
        year.
            (4) To the extent practicable, the number of vulnerable 
        devices or systems mitigated under this pilot by the Agency 
        during the preceding year.
    (d) Report on Harmonization of Reporting Regulations.--
            (1) In general.--Not later than 180 days after the date on 
        which the National Cyber Director convenes the Council 
        described in section 1752(c)(1)(H) of the William M. (Mac) 
        Thornberry National Defense Authorization Act for Fiscal Year 
        2021 (6 U.S.C. 1500(c)(1)(H)), the National Cyber Director 
        shall submit to the appropriate congressional committees a 
        report that includes--
                    (A) a list of duplicative Federal cyber incident 
                reporting requirements on covered entities and entities 
                that make a ransom payment;
                    (B) a description of any challenges in harmonizing 
                the duplicative reporting requirements;
                    (C) any actions the National Cyber Director intends 
                to take to facilitate harmonizing the duplicative 
                reporting requirements; and
                    (D) any proposed legislative changes necessary to 
                address the duplicative reporting.
            (2) Rule of construction.--Nothing in paragraph (1) shall 
        be construed to provide any additional regulatory authority to 
        any Federal agency.
    (e) 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 implementation of this Act and the 
amendments made by this Act.
                                                       Calendar No. 633

117th CONGRESS

  2d Session

                                S. 2875

                          [Report No. 117-249]

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