Title: Internet of Things (IoT) Federal Cybersecurity Improvement Act of 2018
Policy area: Government Operations and Politics

Summary:
Internet of Things (IoT) Federal Cybersecurity Improvement Act of 2018
This bill requires Internet-connected devices purchased by federal agencies to meet specified security requirements.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7283 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 7283

  To provide minimal cybersecurity operational standards for Internet-
    connected devices purchased by Federal agencies, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 12, 2018

  Ms. Kelly of Illinois (for herself and Mr. Ted Lieu of California) 
 introduced the following bill; which was referred to the Committee on 
 Oversight and Government Reform, and in addition to the Committee on 
    Science, Space, and Technology, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To provide minimal cybersecurity operational standards for Internet-
    connected devices purchased by Federal agencies, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet of Things (IoT) Federal 
Cybersecurity Improvement Act of 2018''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) The trust of the American people in the safety and 
        security of their Government's digital technologies, including 
        the Internet of Things, is vital for advancing digital 
        technology transformation.
            (2) Digital technology transformation portends tremendous 
        opportunity for our nation to improve the daily lives of the 
        American people and grow the economy.
            (3) The risk of exposure of Government, businesses, and 
        individual citizens to malicious cyberattacks grows 
        dramatically if digital transformation is not managed with 
        vigorous attention to cybersecurity concerns, and failure to 
        protect the Government systems that control our critical 
        infrastructure and essential Government networks could have 
        devastating consequences.
            (4) Intelligence and national security leaders, including 
        the Director of the Defense Intelligence Agency, have described 
        Internet of Things (IoT) devices as among the ``most important 
        emerging cyberthreats to our national security''.
            (5) The Federal Government cannot achieve a high level of 
        cybersecurity unless cybersecurity becomes the task of every 
        person involved with Federal networks and devices.
            (6) Anchoring responsibility for cybersecurity at the top 
        of governmental organizations is critical to set the correct 
        mindset that enhancing cybersecurity of the Federal 
        Government's networks and devices is the responsibility of 
        every Government employee to the extent practicable.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) ensuring the highest level of cybersecurity at 
        Government agencies is the responsibility of the President, 
        followed by the Director of the Office of Management and 
        Budget, and the head of each executive agency;
            (2) this responsibility is to be carried out by working 
        collaboratively within and among executive agencies, industry, 
        and academia; and
            (3) the strength of the Government's cybersecurity and the 
        positive benefits of digital technology transformation depend 
        on proactively addressing cybersecurity throughout the 
        Government's acquisition and operation of IoT devices.

SEC. 3. CONTRACTOR MINIMUM SECURITY REQUIREMENTS FOR COVERED DEVICES.

    (a) Standard Security Clause Required in Covered Devices.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Director in consultation with 
        the Secretary of Defense, the Administrator of General 
        Services, the Secretary of Commerce, the Secretary of Homeland 
        Security, and any other intelligence or national security 
        agency that the Director determines to be necessary shall issue 
        guidelines for each executive agency that require the inclusion 
        of a standard security clause in any contract (except as 
        provided in paragraph (4)) for the acquisition of covered 
        devices.
            (2) Contents of standard security clause.--The standard 
        security clause required under paragraph (1) shall--
                    (A) establish baseline security requirements that 
                address aspects of device security relating to covered 
                devices, including--
                            (i) a requirement that software or firmware 
                        components accept properly authenticated and 
                        trusted updates from the vendor;
                            (ii) requirements relating to identity and 
                        access management, including a prohibition of 
                        the use of fixed or hard-coded credentials used 
                        for remote administration, the delivery of 
                        updates, or communication;
                            (iii) a requirement that the contractor 
                        participate in a coordinated vulnerability 
                        disclosure program training on the guidelines 
                        issued pursuant to subsection (f); and
                            (iv) any other requirement the Director 
                        determines to be appropriate;
                    (B) require contractors to provide written 
                attestation that the device meets such requirements as 
                established under subparagraph (A);
                    (C) to the maximum extent practicable, ensure that 
                the requirements established under subparagraph (A) 
                are--
                            (i) tailored to address the characteristics 
                        of different types of devices, including risk 
                        and intended function;
                            (ii) based on technology-neutral, outcome-
                        based security principles;
                            (iii) developed through a transparent 
                        process that incorporates input from relevant 
                        stakeholders in industry and academia;
                            (iv) aligned with internationally 
                        recognized technical standards; and
                            (v) updated regularly based on developments 
                        in technology and security methodologies;
                    (D) an identification of contractor 
                responsibilities to ensure that a covered device 
                software or firmware component is updated or replaced, 
                consistent with other provisions in the contract 
                governing the term of support, in a manner that allows 
                for any future security vulnerability or defect in any 
                part of the software or firmware to be patched, based 
                on risk, in order to fix or remove a vulnerability or 
                defect in the software or firmware component in a 
                properly authenticated and secure manner; and
                    (E) a requirement for the contractor to provide the 
                purchasing agency with general information on the 
                ability of the device to be updated, such as--
                            (i) the manner in which the device receives 
                        security updates;
                            (ii) the business terms, including any fees 
                        for ongoing security support, under which 
                        security updates will be provided for a covered 
                        device;
                            (iii) the anticipated timeline for ending 
                        security support associated with the covered 
                        device;
                            (iv) formal notification when security 
                        support has ceased; and
                            (v) any other information the Director 
                        determines to be necessary.
            (3) Voluntary consensus standards.--The Director shall 
        ensure that, to the maximum extent practicable, the baseline 
        security described in paragraph (2)(A) reflects and aligns with 
        existing voluntary consensus standards.
            (4) Waiver of requirement by agencies.--The Director may 
        establish a process for the Chief Information Officer of an 
        executive agency to waive the requirements under this 
        subsection for a case in which a petition is submitted by an 
        entity seeking to enter into a contract with the executive 
        agency and the following requirements are met:
                    (A) A waiver is granted only in limited 
                circumstances, including when an entity demonstrates 
                that a covered device meets a desired level of security 
                through means other than those required under paragraph 
                (2)(A) or when the executive agency reasonably believes 
                that procurement of a covered device with limited data 
                processing and software functionality would be 
                unfeasible or economically impractical.
                    (B) The Chief Information Officer of an executive 
                agency that approves a waiver under this paragraph 
                shall provide the entity a written statement that the 
                executive agency accepts any risk resulting from use of 
                the covered device.
            (5) Alignment with fisma.--In issuing the guidelines 
        required under paragraph (1), the Director, in consultation 
        with the Administrator of General Services, shall ensure that 
        such guidelines are, to the greatest extent practicable, 
        consistent with, non-duplicative of, and in compliance with any 
        applicable established information security policies, 
        procedures, standards, and compliance requirements under the 
        subchapter II of chapter 35 of title 44, United States Code.
    (b) Alternate Conditions To Mitigate Cybersecurity Risks.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Director, in consultation with 
        NIST, shall define a set of conditions that--
                    (A) ensure a non-compliant device can be used with 
                a level of security that is equivalent or greater to 
                the baseline security requirements described in 
                subsection (a)(2); and
                    (B) shall be met in order for an executive agency 
                to purchase such a non-compliant device.
            (2) Requirements.--In defining the set of conditions that 
        must be met for non-compliant devices required under paragraph 
        (1), the Director, in consultation with NIST and relevant 
        industry entities, may consider the use of conditions, 
        including--
                    (A) network segmentation or micro-segmentation;
                    (B) the adoption of system level security controls, 
                including operating system containers and 
                microservices;
                    (C) multi-factor authentication; and
                    (D) network access control and edge systems, such 
                as gateways, that can isolate, disable, or remediate 
                connected devices.
            (3) Specification of additional precautions.--To address 
        the long-term risk of non-compliant devices acquired in 
        accordance with an exception under this subsection, the 
        Director, in consultation with NIST and private-sector industry 
        experts and, with respect to medical devices regulated under 
        the Federal Food, Drug, and Cosmetics Act, in consultation with 
        the Commissioner of Food and Drugs, may stipulate additional 
        requirements for management and use of non-compliant devices, 
        including deadlines for the removal, replacement, or disabling 
        of non-compliant devices (or their Internet-connectivity), as 
        well as minimal requirements for gateway products to ensure the 
        integrity and security of the non-compliant devices.
            (4) Existing third-party security standard.--
                    (A) In general.--If a voluntary consensus standard 
                for the security of covered devices provides an 
                equivalent or greater level of security to that 
                described in subsection (a)(2), the Director shall 
                modify the requirements under subsection (a)(1) and the 
                security clause under subsection (a)(2) to reflect 
                conformity with that voluntary consensus standard.
                    (B) Written certification.--A contractor providing 
                a covered device shall provide third-party written 
                certification that the device complies with the 
                security requirements of the industry certification 
                method of the third party.
                    (C) NIST.--NIST, in consultation with the Director 
                and the heads of other appropriate executive agencies, 
                shall determine--
                            (i) accreditation standards for third-party 
                        certifiers; and
                            (ii) whether the standards described in 
                        clause (i) provide appropriate security and are 
                        aligned with the guidelines issued under 
                        subsection (a).
            (5) Existing agency security evaluation standards.--
                    (A) In general.--If an executive agency employs a 
                security evaluation process or criteria for covered 
                devices that the agency believes provides an equivalent 
                or greater level of security to the baseline security 
                requirements described in subsection (a)(2), an 
                executive agency may, upon the approval of the 
                Director, continue to use that process or criteria in 
                lieu of the requirements under subsection (a)(2).
                    (B) NIST.--NIST, in consultation with the Director 
                and the heads of other appropriate executive agencies, 
                shall determine whether the process or criteria 
                described in subparagraph (A) provides appropriate 
                security and is aligned with the guidelines issued 
                under subsection (a).
    (c) Guidelines for Lowest Price Technically Acceptable Source 
Selection.--Not later than 180 days after the date of the enactment of 
this Act, the Director, in consultation with the Administrator of 
General Services, shall issue guidelines for each executive agency to 
limit, to the maximum extent practicable, the use of lowest price 
technically acceptable source selection criteria in the case of a 
procurement that is predominately for the acquisition of a covered 
device.
    (d) Report to Congress.--Not later than 5 years after the date of 
the enactment of this Act, the Director shall submit to Congress a 
report on the effectiveness of the guidelines required to be issued 
under subsections (a) and (c), which shall include recommendations, if 
any, for legislation necessary to improve cybersecurity in executive 
agency acquisition of covered devices.
    (e) General Waiver Authority for Director.--Beginning on the date 
that is 5 years after the date of the enactment of this Act, the 
Director may waive, in whole or in part, the requirements of the 
guidelines or set of conditions issued under this section, for an 
executive agency.
    (f) Guidelines Regarding the Coordinated Disclosure of Security 
Vulnerabilities and Defects.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Director, in consultation with 
        the Department of Homeland Security and the Department of 
        Justice, and cybersecurity researchers and private-sector 
        industry experts, shall issue guidelines for each executive 
        agency with respect to any covered device in use by the United 
        States Government regarding cybersecurity coordinated 
        disclosure requirements that shall be required of contractors 
        providing such covered devices to those executive agencies.
            (2) Contents.--The guidelines required under paragraph (1) 
        shall include policies and procedures for the processing and 
        resolving of potential vulnerability information relating to a 
        covered device, which shall be, to the maximum extent 
        practicable, aligned with Standards 29147 and 30111 of the 
        International Standards Organization, or any successor 
        standard, such as--
                    (A) procedures for the provision of a covered 
                device to executive agencies by a contractor on how 
                to--
                            (i) receive information about potential 
                        vulnerabilities in the product or online 
                        service of the contractor; and
                            (ii) disseminate resolution information 
                        about vulnerabilities in the product or online 
                        service of the contractor; and
                    (B) guidance, including example content, on the 
                information items that should be produced through the 
                implementation of the vulnerability disclosure process 
                of the contractor.
    (g) Revision of FAR.--The Federal Acquisition Regulations System 
shall be revised to require the inclusion of a standard security clause 
consistent with the requirements of this section.

SEC. 4. INVENTORY OF DEVICES.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the head of each executive agency shall 
establish and maintain an inventory of covered devices used by the 
agency procured under the requirements of this Act.
    (b) Guidelines.--Not later than 30 days after the date of the 
enactment of this Act, the Director, in consultation with the Secretary 
of Homeland Security, shall issue guidelines for executive agencies to 
develop and manage the inventories required under subsection (a), based 
on the Continuous Diagnostics and Mitigation program used by the 
Department of Homeland Security.
    (c) Device Databases.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Homeland Security, 
        in consultation with the Director shall establish and 
        maintain--
                    (A) a database of non-compliant devices and the 
                manufacturers of such devices; and
                    (B) a database of covered devices and the 
                manufacturers of such devices about which the 
                Government has received formal notification of security 
                support ceasing, as required under section 
                3(a)(2)(E)(iv).
            (2) Updates.--The Secretary of Homeland Security shall 
        update the databases established under paragraph (1) not less 
        frequently than every 30 days.

SEC. 5. USE OF BEST PRACTICES IN IDENTIFICATION AND TRACKING OF 
              VULNERABILITIES FOR PURPOSES OF THE NATIONAL 
              VULNERABILITY DATABASE.

    The Director of NIST shall ensure that NIST establishes, maintains, 
and uses best practices in the identification and tracking of 
vulnerabilities for purposes of the National Vulnerability Database of 
NIST.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Covered device.--
                    (A) In general.--The term ``covered device''--
                            (i) means a physical object that--
                                    (I) is capable of connecting to and 
                                is in regular connection with the 
                                Internet; and
                                    (II) has computer processing 
                                capabilities that can collect, send, or 
                                receive data; and
                            (ii) does not include advanced or general-
                        purpose computing devices, including personal 
                        computing systems, smart mobile communications 
                        devices, programmable logic controls, and 
                        mainframe computing systems.
                    (B) OMB exemption.--The Director may exempt 
                additional devices under subparagraph (A)(ii) through a 
                process in which interested parties may submit a 
                petition for the exemption. The Director shall act in 
                an expedited manner on any such petition submitted.
            (2) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (3) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 133 of title 41, United 
        States Code.
            (4) Firmware.--The term ``firmware'' means a computer 
        program and the data stored in hardware, typically in read-only 
        memory or programmable read-only memory, such that the program 
        and data cannot be dynamically written or modified during 
        execution of the program.
            (5) Fixed or hard-coded credential.--The term ``fixed or 
        hard-coded credential'' means a value, such as a password, 
        token, cryptographic key, or other data element used as part of 
        an authentication mechanism for granting remote access to an 
        information system or the information of the system, that is--
                    (A) established by a product vendor or service 
                provider; and
                    (B) incapable of being modified or revoked by the 
                user or manufacturer lawfully operating the information 
                system, except through a firmware update.
            (6) Gateway product.--The term ``gateway product'' means a 
        node or device that connects to multiple networks using 
        standard protocols.
            (7) Hardware.--The term ``hardware'' means the physical 
        components of an information system.
            (8) NIST.--The term ``NIST'' means the National Institute 
        of Standards and Technology.
            (9) Non-compliant device.--The term ``non-compliant 
        device'' means a covered device that does not meet the baseline 
        security requirements established in section 3(a)(2)(A).
            (10) Properly authenticated update.--The term ``properly 
        authenticated update'' means an update, remediation, or 
        technical fix to a hardware, firmware, or software component 
        issued by a product vendor or service provider used to correct 
        particular problems with the component, and that, in the case 
        of software or firmware, contains some method of authenticity 
        protection, such as a digital signature, so that unauthorized 
        updates and rollbacks of authorized updates can be 
        automatically detected and rejected.
            (11) Security vulnerability.--The term ``security 
        vulnerability'' means any attribute of hardware, firmware, 
        software, process, or procedure or a combination of 2 or more 
        of these attributes that could enable or facilitate the defeat 
        or compromise of the confidentiality, integrity, or 
        availability of an information system or the information or 
        physical devices of an information system to which an 
        information system is connected.
            (12) Software.--The term ``software'' means a computer 
        program and associated data that may be dynamically written or 
        modified.
            (13) Vendor.--The term ``vendor'', with respect to a 
        technology, product, system, service, or application, means--
                    (A) in the case of a purchase by the Government, 
                the entity that developed the technology, product, 
                system, service, or application; or
                    (B) in the case of a purchase by a contractor, the 
                entity that is responsible for maintaining the 
                technology, product, system, service, or application.

SEC. 7. APPLICABILITY.

    This Act shall apply with respect to any contract entered into on 
and after the date on which the guidelines are issued pursuant to 
section 3(a).
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