Title: Internet of Things (IoT) Cybersecurity Improvement Act of 2017
Policy area: Government Operations and Politics

Summary:
Internet of Things (IoT) Cybersecurity Improvement Act of 2017
This bill requires Internet-connected devices purchased by federal agencies to meet specified security requirements, including requirements that the devices (1) do not contain known security vulnerabilities or defects; (2) rely on software or firmware components capable of accepting properly authenticated and trusted updates from the vendor; (3) rely only on non-deprecated industry-standard protocols and technologies for certain functions; and (4) do not include fixed or hard-coded credentials.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1691 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1691

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2017

   Mr. Warner (for himself, Mr. Gardner, Mr. Wyden, and Mr. Daines) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 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) 
Cybersecurity Improvement Act of 2017''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (2) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 133 of title 41, United 
        States Code.
            (3) Firmware.--The term ``firmware'' means a computer 
        program and the data stored in hardware, typically in read-only 
        memory (ROM) or programmable read-only memory (PROM), such that 
        the program and data cannot be dynamically written or modified 
        during execution of the program.
            (4) 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 its information, 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 via a firmware update.
            (5) Hardware.--The term ``hardware'' means the physical 
        components of an information system.
            (6) Internet-connected device.--The term ``Internet-
        connected device'' means a physical object that--
                    (A) is capable of connecting to and is in regular 
                connection with the Internet; and
                    (B) has computer processing capabilities that can 
                collect, send, or receive data.
            (7) NIST.--The term ``NIST'' means the National Institute 
        of Standards and Technology.
            (8) 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 can be automatically detected and rejected.
            (9) Security vulnerability.--The term ``security 
        vulnerability'' means any attribute of hardware, firmware, 
        software, process, or procedure or combination of 2 or more of 
        these factors that could enable or facilitate the defeat or 
        compromise of the confidentiality, integrity, or availability 
        of an information system or its information or physical devices 
        to which it is connected.
            (10) Software.--The term ``software'' means a computer 
        program and associated data that may be dynamically written or 
        modified.

SEC. 3. CONTRACTOR RESPONSIBILITIES WITH RESPECT TO INTERNET-CONNECTED 
              DEVICE CYBERSECURITY.

    (a) Clauses Required in Internet-Connected 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 to require the 
        following clauses in any contract, except as provided in 
        paragraph (2), for the acquisition of Internet-connected 
        devices:
                    (A) Verification required.--
                            (i) In general.--A clause that requires the 
                        contractor providing the Internet-connected 
                        device to provide written certification that 
                        the device--
                                    (I) except as provided under clause 
                                (ii), does not contain, at the time of 
                                submitting the proposal, any hardware, 
                                software, or firmware component with 
                                any known security vulnerabilities or 
                                defects listed in--
                                            (aa) the National 
                                        Vulnerability Database of NIST; 
                                        and
                                            (bb) any additional 
                                        database selected by the 
                                        Director that tracks security 
                                        vulnerabilities and defects, is 
                                        credible, and is similar to the 
                                        National Vulnerability 
                                        Database;
                                    (II) relies on software or firmware 
                                components capable of accepting 
                                properly authenticated and trusted 
                                updates from the vendor;
                                    (III) uses only non-deprecated 
                                industry-standard protocols and 
                                technologies for functions such as--
                                            (aa) communications, such 
                                        as standard ports for network 
                                        traffic;
                                            (bb) encryption; and
                                            (cc) interconnection with 
                                        other devices or peripherals; 
                                        and
                                    (IV) does not include any fixed or 
                                hard-coded credentials used for remote 
                                administration, the delivery of 
                                updates, or communication.
                            (ii) Limited exception for disclosed 
                        vulnerabilities.--
                                    (I) Application for waiver.--At the 
                                time of submitting a proposal to an 
                                executive agency, a contractor may 
                                submit a written application for a 
                                waiver from the requirement under 
                                clause (i)(I) for the purpose of 
                                disclosing a known vulnerability to the 
                                executive agency.
                                    (II) Contents.--An application 
                                submitted under subclause (I) shall--
                                            (aa) identify the specific 
                                        known vulnerability;
                                            (bb) include any mitigation 
                                        actions that may limit or 
                                        eliminate the ability for an 
                                        adversary to exploit the 
                                        vulnerability; and
                                            (cc) include a 
                                        justification for secure use of 
                                        the device notwithstanding the 
                                        persisting vulnerability.
                                    (III) Approval.--If the head of the 
                                purchasing executive agency approves 
                                the waiver, the head of the purchasing 
                                executive agency shall provide the 
                                contractor a written statement that the 
                                executive agency accepts such risks 
                                resulting from use of the device with 
                                the known vulnerability as represented 
                                by the contractor.
                    (B) Notification required.--A clause that requires 
                the contractor providing the Internet-connected device 
                software or firmware component to notify the purchasing 
                agency of any known security vulnerabilities or defects 
                subsequently disclosed to the vendor by a security 
                researcher or of which the vendor otherwise becomes 
                aware for the duration of the contract.
                    (C) Updates.--A clause that requires such Internet-
                connected device software or firmware component to be 
                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 in order to fix or remove a 
                vulnerability or defect in the software or firmware 
                component in a properly authenticated and secure 
                manner.
                    (D) Timely repair.--A clause that requires the 
                contractor to provide a repair or replacement in a 
                timely manner in respect to any new security 
                vulnerability discovered through any of the databases 
                described in subparagraph (A)(i)(I) or from the 
                coordinated disclosure program described in subsection 
                (b) in the event the vulnerability cannot be remediated 
                through an update described in subparagraph (C).
                    (E) Continuation of services.--A clause that 
                requires 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 anticipated timeline for ending 
                        security support associated with the Internet-
                        connected device;
                            (iii) formal notification when security 
                        support has ceased; and
                            (iv) any additional information recommended 
                        by the National Telecommunications and 
                        Information Administration.
            (2) Exceptions.--
                    (A) Devices with severely limited functionality.--
                            (i) In general.--If an executive agency 
                        reasonably believes that procurement of an 
                        Internet-connected device with limited data 
                        processing and software functionality 
                        consistent with paragraph (1) would be 
                        unfeasible or economically impractical, the 
                        executive agency may petition the Director for 
                        a waiver to the requirements contained in 
                        paragraph (1) in order to purchase a non-
                        compliant Internet-connected device.
                            (ii) Alternate conditions to mitigate 
                        cybersecurity risks.--
                                    (I) In general.--Not later than 180 
                                days after the date of the enactment of 
                                this Act, the Director, in close 
                                coordination with NIST, shall define a 
                                set of conditions that--
                                            (aa) ensure an Internet-
                                        connected device that does not 
                                        comply with paragraph (1) can 
                                        be used with a level of 
                                        security that is equivalent to 
                                        the level of security described 
                                        in paragraph (1)(A); and
                                            (bb) shall be met in order 
                                        for an executive agency to 
                                        purchase such a non-compliant 
                                        device.
                                    (II) Requirements.--In defining a 
                                set of conditions that must be met for 
                                non-compliant devices as required under 
                                subclause (I), the Director, in close 
                                coordination with NIST and relevant 
                                industry entities, may consider the use 
                                of conditions including--
                                            (aa) network segmentation 
                                        or micro-segmentation;
                                            (bb) the adoption of system 
                                        level security controls, 
                                        including operating system 
                                        containers and microservices;
                                            (cc) multi-factor 
                                        authentication; and
                                            (dd) intelligent network 
                                        solutions and edge systems, 
                                        such as gateways, that can 
                                        isolate, disable, or remediate 
                                        connected devices.
                            (iii) Specification of additional 
                        precautions.--To address the long-term risk of 
                        non-compliant Internet-connected devices 
                        acquired in accordance with an exception under 
                        this paragraph, the Director, in coordination 
                        with NIST and private-sector industry experts, 
                        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.
                    (B) Existing third-party security standard.--
                            (i) In general.--If an existing third-party 
                        security standard for Internet-connected 
                        devices provides an equivalent or greater level 
                        of security to that described in paragraph 
                        (1)(A), an executive agency may allow a 
                        contractor to demonstrate compliance with that 
                        standard in lieu of the requirements under 
                        paragraph (1).
                            (ii) Written certification.--A contractor 
                        providing the Internet-connected device shall 
                        provide third-party written certification that 
                        the device complies with the security 
                        requirements of the industry certification 
                        method of the third party.
                            (iii) NIST.--NIST, in coordination with the 
                        Director and other appropriate executive 
                        agencies, shall determine--
                                    (I) accreditation standards for 
                                third-party certifiers; and
                                    (II) whether the standards 
                                described in subclause (I) provide 
                                appropriate security and is aligned 
                                with the guidelines issued under this 
                                subsection.
                    (C) Existing agency security evaluation 
                standards.--
                            (i) In general.--If an executive agency 
                        employs a security evaluation process or 
                        criteria for Internet-connected devices that 
                        the agency believes provides an equivalent or 
                        greater level of security to that described in 
                        paragraph (1)(A), an executive agency may, upon 
                        the approval of the Director, continue to use 
                        that process or standard in lieu of the 
                        requirements under paragraph (1).
                            (ii) NIST.--NIST, in coordination with the 
                        Director and other appropriate executive 
                        agencies, shall determine whether the process 
                        or criteria described in clause (i) provides 
                        appropriate security and are aligned with the 
                        guidelines issued under this subsection.
            (3) Report to congress.--Not later than 5 years after the 
        date of enactment of this Act, the Director shall submit to 
        Congress a report on the effectiveness of the guidelines 
        required to be issued under paragraph (1), which shall include 
        recommendations for legislative language needed to update the 
        guideline requirements described in paragraph (1).
            (4) Waiver authority.--Beginning on the date that is 5 
        years after the date of enactment of this Act, the Director may 
        waive, in whole or in part, the requirements of the guidelines 
        issued under this subsection, for an executive agency.
    (b) Guidelines Regarding the Coordinated Disclosure of Security 
Vulnerabilities and Defects.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the National Protection and Programs 
        Directorate, in consultation with cybersecurity researchers and 
        private-sector industry experts, shall issue guidelines for 
        each agency with respect to any Internet-connected device in 
        use by the United States Government regarding cybersecurity 
        coordinated disclosure requirements that shall be required of 
        contractors providing such software devices to the United 
        States Government.
            (2) Contents.--The guidelines required to be issued under 
        paragraph (1) shall--
                    (A) include policies and procedures for conducting 
                research on the cybersecurity of an Internet-connected 
                device, which shall be based, in part, on Standard 
                29147 of the International Standards Organization, or 
                any successor standard, relating to the processing and 
                resolving of potential vulnerability information in a 
                product or online service, such as--
                            (i) procedures for a contractor providing 
                        an Internet-connected device to the United 
                        States Government 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
                            (ii) guidance, including example content, 
                        on the information items that should be 
                        produced through the implementation of the 
                        vulnerability disclosure process of the 
                        contractor; and
                    (B) require that research on the cybersecurity of 
                an Internet-connected device provided by a contractor 
                to the United States Government shall be conducted on 
                the same class, model, or type of the device provided 
                to the United States Government and not on the actual 
                device provided to the United States Government.
    (c) Limitation of Liability.--
            (1) Rule of construction.--Nothing in this subsection, or 
        the amendments made by this subsection, shall be construed to 
        establish additional obligations or criminal penalties for 
        individuals engaged in researching the cybersecurity of 
        Internet-connected devices.
            (2) Computer fraud and abuse act.--Section 1030 of title 
        18, United States Code, is amended--
                    (A) in subsection (j)(2), by adding a period at the 
                end; and
                    (B) by adding at the end the following new 
                subsection:
    ``(k) This section shall not apply to a person who--
            ``(1) in good faith, engaged in researching the 
        cybersecurity of an Internet-connected device of the class, 
        model, or type provided by a contractor to a department or 
        agency of the United States; and
            ``(2) acted in compliance with the guidelines required to 
        be issued by the National Protection and Programs Directorate, 
        and adopted by the contractor described in paragraph (1), under 
        section 3(b) of the Internet of Things (IoT) Cybersecurity 
        Improvement Act of 2017.''.
            (3) Digital millennium copyright act.--Chapter 12 of title 
        17, United States Code, is amended--
                    (A) in section 1203, by adding at the end the 
                following new subsection:
    ``(d) Limitation of Liability.--A person shall not be held liable 
under this section if the individual--
            ``(1) in good faith, engaged in researching the 
        cybersecurity of an Internet-connected device of the class, 
        model, or type provided by a contractor to a department or 
        agency of the United States; and
            ``(2) acted in compliance with the guidelines required to 
        be issued by the National Protection and Programs Directorate, 
        and adopted by the contractor described in paragraph (1), under 
        section 3(b) of the Internet of Things (IoT) Cybersecurity 
        Improvement Act of 2017.''; and
                    (B) in section 1204, by adding at the end the 
                following new subsection:
    ``(d) Limitation of Liability.--Subsection (a) shall not apply to a 
person who--
            ``(1) in good faith, engaged in researching the 
        cybersecurity of an Internet-connected device of the class, 
        model, or type provided by a contractor to a department or 
        agency of the United States; and
            ``(2) acted in compliance with the guidelines required to 
        be issued by the National Protection and Programs Directorate, 
        and adopted by the contractor described in paragraph (1), under 
        section 3(b) of the Internet of Things (IoT) Cybersecurity 
        Improvement Act of 2017.''.
    (d) Inventory of Devices.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the head of each executive agency 
        shall establish and maintain an inventory of Internet-connected 
        devices used by the agency procured under this Act.
            (2) Guidelines.--Not later than 30 days after the date of 
        the enactment of this Act, the Director of the Office of 
        Management and Budget, in consultation with the Secretary of 
        Homeland Security, shall issue guidelines for executive 
        agencies to develop and manage the inventories required under 
        paragraph (1), based on the Continuous Diagnostics and 
        Mitigation (CDM) program used by the Department of Homeland 
        Security.
            (3) Device databases.--
                    (A) In general.--Not later than 180 days after the 
                date of enactment of this Act, the Director of the 
                Office of Management and Budget shall establish and 
                maintain--
                            (i) a publicly accessible database of 
                        devices and the respective manufacturers of 
                        such devices for which limitations of liability 
                        exist under this Act; and
                            (ii) a publicly accessible database of 
                        devices and the respective manufacturers of 
                        such devices about which the government has 
                        received formal notification of security 
                        support ceasing, as required under section 
                        3(a)(1)(E)(iii).
                    (B) Updates.--The Director of the Office of 
                Management and Budget shall update the databases 
                established under subparagraph (A) not less frequently 
                than once every 30 days.

SEC. 4. 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.
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