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H. R. 2458—48

(1)
maximize the degree to which unclassified geographic information from various
sources can be made electronically compatible and accessible; and

(2)
promote the development of interoperable geographic information systems
technologies that shall—

(A)
allow widespread, low-cost use and sharing of geographic data by Federal
agencies, State, local, and tribal governments, and the public; and

(B)
enable the enhancement of services using geographic data.

(f)
AUTHORIZATION
OFAPPROPRIATIONS.—There are authorized to
be appropriated such sums as are necessary to carry out this section, for each
of the fiscal years 2003 through 2007.

TITLE
III—INFORMATION SECURITY
SEC. 301. INFORMATION SECURITY.

(a)
SHORTTITLE.—This title may be cited
as the ‘‘Federal Information Security Management Act of 2002’’.

(b)
INFORMATIONSECURITY.—
(1) IN GENERAL.—Chapter 35 of title 44,
United States

Code,
is amended by adding at the end the following new subchapter:

‘‘SUBCHAPTER
III—INFORMATION SECURITY

‘‘§
3541. Purposes

‘‘The
purposes of this subchapter are to—
‘‘(1) provide a comprehensive framework for
ensuring the

effectiveness
of information security controls over information resources that support
Federal operations and assets;

‘‘(2)
recognize the highly networked nature of the current Federal computing
environment and provide effective governmentwide management and oversight of
the related information security risks, including coordination of information
security efforts throughout the civilian, national security, and law
enforcement communities;

‘‘(3)
provide for development and maintenance of minimum controls required to protect
Federal information and informa- tion systems;

‘‘(4)
provide a mechanism for improved oversight of Federal agency information
security programs;

‘‘(5)
acknowledge that commercially developed information security products offer
advanced, dynamic, robust, and effective information security solutions,
reflecting market solutions for the protection of critical information
infrastructures important to the national defense and economic security of the
nation that are designed, built, and operated by the private sector; and

‘‘(6)
recognize that the selection of specific technical hard- ware and software
information security solutions should be left to individual agencies from among
commercially developed products.

‘‘§
3542. Definitions

H.
R. 2458—49

‘‘(a)
INGENERAL.—Except as provided under
subsection (b), the definitions under section 3502 shall apply to this
subchapter.

‘‘(b)
ADDITIONALDEFINITIONS.—As used in this
subchapter:
‘‘(1) The term ‘information security’ means protecting information
and information systems from unauthorized access, use, disclosure, disruption,
modification, or destruction in order

to
provide—
‘‘(A) integrity, which means guarding against improper

information
modification or destruction, and includes ensuring information nonrepudiation
and authenticity;

‘‘(B)
confidentiality, which means preserving author- ized restrictions on access and
disclosure, including means for protecting personal privacy and proprietary
information; and

‘‘(C)
availability, which means ensuring timely and reliable access to and use of
information.
‘‘(2)(A) The term ‘national security system’ means any

information
system (including any telecommunications system) used or operated by an agency
or by a contractor of an agency, or other organization on behalf of an agency—

‘‘(i)
the function, operation, or use of which—
‘‘(I) involves intelligence
activities;
‘‘(II) involves cryptologic activities related to

national
security;
‘‘(III) involves command and control of military

forces;
‘‘(IV)
involves equipment that is an integral part

of
a weapon or weapons system; or
‘‘(V) subject to subparagraph (B), is critical
to the

direct
fulfillment of military or intelligence missions; or
‘‘(ii) is protected at all
times by procedures established

for
information that have been specifically authorized under criteria established
by an Executive order or an Act of Congress to be kept classified in the
interest of national defense or foreign policy.

‘‘(B)
Subparagraph (A)(i)(V) does not include a system that is to be used for routine
administrative and business applica- tions (including payroll, finance,
logistics, and personnel management applications).

‘‘(3)
The term ‘information technology’ has the meaning given that term in section
11101 of title 40.

‘‘§
3543. Authority and functions of the Director

‘‘(a)
INGENERAL.—The Director shall
oversee agency informa- tion security policies and practices, including—

‘‘(1)
developing and overseeing the implementation of poli- cies, principles,
standards, and guidelines on information secu- rity, including through ensuring
timely agency adoption of and compliance with standards promulgated under
section 11331 of title 40;

‘‘(2)
requiring agencies, consistent with the standards promulgated under such
section 11331 and the requirements of this subchapter, to identify and provide
information security protections commensurate with the risk and magnitude of
the

H.
R. 2458—50

harm
resulting from the unauthorized access, use, disclosure, disruption,
modification, or destruction of—

‘‘(A)
information collected or maintained by or on behalf of an agency; or

‘‘(B)
information systems used or operated by an agency or by a contractor of an
agency or other organization on behalf of an agency;
‘‘(3) coordinating the
development of standards and guide-

lines
under section 20 of the National Institute of Standards and Technology Act (15
U.S.C. 278g–3) with agencies and offices operating or exercising control of
national security systems (including the National Security Agency) to assure,
to the max- imum extent feasible, that such standards and guidelines are
complementary with standards and guidelines developed for national security
systems;

‘‘(4)
overseeing agency compliance with the requirements of this subchapter,
including through any authorized action under section 11303 of title 40, to
enforce accountability for compliance with such requirements;

‘‘(5)
reviewing at least annually, and approving or dis- approving, agency
information security programs required under section 3544(b);

‘‘(6)
coordinating information security policies and proce- dures with related
information resources management policies and procedures;

‘‘(7)
overseeing the operation of the Federal information security incident center
required under section 3546; and

‘‘(8)
reporting to Congress no later than March 1 of each year on agency compliance
with the requirements of this sub- chapter, including—

‘‘(A)
a summary of the findings of evaluations required by section 3545;

‘‘(B)
an assessment of the development, promulgation, and adoption of, and compliance
with, standards developed under section 20 of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-3) and promulgated under section
11331 of title 40;

‘‘(C)
significant deficiencies in agency information secu- rity practices;

‘‘(D)
planned remedial action to address such defi- ciencies; and

‘‘(E)
a summary of, and the views of the Director on, the report prepared by the
National Institute of Standards and Technology under section 20(d)(10) of the
National Institute of Standards and Technology Act (15 U.S.C. 278g– 3).

‘‘(b)
NATIONALSECURITYSYSTEMS.—Except for the
authorities described in paragraphs (4) and (8) of subsection (a), the
authorities of the Director under this section shall not apply to national
security systems.

‘‘(c)
DEPARTMENT OF
DEFENSE ANDCENTRALINTELLIGENCEAGENCYSYSTEMS.—(1) The authorities of
the Director described in paragraphs (1) and (2) of subsection (a) shall be
delegated to the Secretary of Defense in the case of systems described in para-
graph (2) and to the Director of Central Intelligence in the case of systems
described in paragraph (3).

H.
R. 2458—51

‘‘(2)
The systems described in this paragraph are systems that are operated by the
Department of Defense, a contractor of the Department of Defense, or another
entity on behalf of the Depart- ment of Defense that processes any information
the unauthorized access, use, disclosure, disruption, modification, or
destruction of which would have a debilitating impact on the mission of the
Department of Defense.

‘‘(3)
The systems described in this paragraph are systems that operated by the
Central Intelligence Agency, a contractor of Central Intelligence Agency, or
another entity on behalf of Central Intelligence Agency that processes any
information unauthorized access, use, disclosure, disruption, modification,

are
the
the
the
or
destruction of which would have a debilitating impact on the mission of the
Central Intelligence Agency.

‘‘§
3544. Federal agency responsibilities

‘‘(a)
INGENERAL.—The head of each agency
shall— ‘‘(1) be responsible for—

‘‘(A)
providing information security protections commensurate with the risk and
magnitude of the harm resulting from unauthorized access, use, disclosure,
disrup- tion, modification, or destruction of—

‘‘(i)
information collected or maintained by or on behalf of the agency; and

‘‘(ii)
information systems used or operated by an agency or by a contractor of an
agency or other organization on behalf of an agency;
‘‘(B) complying with the
requirements of this sub-

chapter
and related policies, procedures, standards, and guidelines, including—

‘‘(i)
information security standards promulgated under section 11331 of title 40; and

‘‘(ii)
information security standards and guidelines for national security systems
issued in accordance with law and as directed by the President; and
‘‘(C)
ensuring that information security management

processes
are integrated with agency strategic and oper- ational planning
processes;
‘‘(2) ensure that senior agency officials provide information

security
for the information and information systems that sup- port the operations and
assets under their control, including through—

‘‘(A)
assessing the risk and magnitude of the harm that could result from the
unauthorized access, use, disclo- sure, disruption, modification, or
destruction of such information or information systems;

‘‘(B)
determining the levels of information security appropriate to protect such
information and information systems in accordance with standards promulgated
under section 11331 of title 40, for information security classifica- tions and
related requirements;

‘‘(C)
implementing policies and procedures to cost-effec- tively reduce risks to an
acceptable level; and

‘‘(D)
periodically testing and evaluating information security controls and
techniques to ensure that they are effectively implemented;

H.
R. 2458—52

‘‘(3)
delegate to the agency Chief Information Officer estab- lished under section
3506 (or comparable official in an agency not covered by such section) the
authority to ensure compliance with the requirements imposed on the agency
under this sub- chapter, including—

‘‘(A)
designating a senior agency information security officer who shall—

‘‘(i)
carry out the Chief Information Officer’s responsibilities under this section;

‘‘(ii)
possess professional qualifications, including training and experience,
required to administer the functions described under this section;

‘‘(iii)
have information security duties as that offi- cial’s primary duty; and

‘‘(iv)
head an office with the mission and resources to assist in ensuring agency
compliance with this sec- tion;
‘‘(B) developing and maintaining an agencywide

information
security program as required by subsection (b);

‘‘(C)
developing and maintaining information security policies, procedures, and
control techniques to address all applicable requirements, including those
issued under sec- tion 3543 of this title, and section 11331 of title 40;

‘‘(D)
training and overseeing personnel with significant responsibilities for
information security with respect to such responsibilities; and

‘‘(E)
assisting senior agency officials concerning their responsibilities under
paragraph (2);
‘‘(4) ensure that the agency has trained personnel sufficient

to
assist the agency in complying with the requirements of this subchapter and
related policies, procedures, standards, and guidelines; and

‘‘(5)
ensure that the agency Chief Information Officer, in coordination with other
senior agency officials, reports annually to the agency head on the
effectiveness of the agency informa- tion security program, including progress
of remedial actions. ‘‘(b) AGENCYPROGRAM.—Each agency shall
develop, document,

and
implement an agencywide information security program, approved by the Director
under section 3543(a)(5), to provide information security for the information
and information systems that support the operations and assets of the agency,
including those provided or managed by another agency, contractor, or other
source, that includes—

‘‘(1)
periodic assessments of the risk and magnitude of the harm that could result
from the unauthorized access, use, disclosure, disruption, modification, or
destruction of informa- tion and information systems that support the
operations and assets of the agency;

‘‘(2)
policies and procedures that—
‘‘(A) are based on the risk assessments required
by

paragraph
(1);
‘‘(B) cost-effectively reduce information security risks

to
an acceptable level;
‘‘(C) ensure that information security is addressed

throughout
the life cycle of each agency information system; and

H.
R. 2458—53

‘‘(D)
ensure compliance with—
‘‘(i) the requirements of this subchapter;
‘‘(ii)
policies and procedures as may be prescribed

by
the Director, and information security standards promulgated under section
11331 of title 40;

‘‘(iii)
minimally acceptable system configuration requirements, as determined by the
agency; and

‘‘(iv)
any other applicable requirements, including standards and guidelines for
national security systems issued in accordance with law and as directed by the
President;

‘‘(3)
subordinate plans for providing adequate information security for networks,
facilities, and systems or groups of information systems, as appropriate;

‘‘(4)
security awareness training to inform personnel, including contractors and
other users of information systems that support the operations and assets of
the agency, of—

‘‘(A)
information security risks associated with their activities; and

‘‘(B)
their responsibilities in complying with agency policies and procedures
designed to reduce these risks; ‘‘(5) periodic testing and evaluation of the
effectiveness

of
information security policies, procedures, and practices, to be performed with
a frequency depending on risk, but no less than annually, of which such
testing—

‘‘(A)
shall include testing of management, operational, and technical controls of
every information system identi- fied in the inventory required under section
3505(c); and

‘‘(B)
may include testing relied on in a evaluation under section 3545;

‘‘(6)
a process for planning, implementing, evaluating, and documenting remedial
action to address any deficiencies in the information security policies,
procedures, and practices of the agency;

‘‘(7)
procedures for detecting, reporting, and responding to security incidents,
consistent with standards and guidelines issued pursuant to section 3546(b),
including—

‘‘(A)
mitigating risks associated with such incidents before substantial damage is
done;

‘‘(B)
notifying and consulting with the Federal informa- tion security incident
center referred to in section 3546; and

‘‘(C)
notifying and consulting with, as appropriate— ‘‘(i) law enforcement agencies
and relevant Offices

of
Inspector General;
‘‘(ii) an office designated by the President for any

incident
involving a national security system; and
‘‘(iii) any other agency or office,
in accordance with

law
or as directed by the President; and
‘‘(8) plans and procedures to ensure
continuity of operations

for
information systems that support the operations and assets of the agency.
‘‘(c)
AGENCYREPORTING.—Each agency shall—

‘‘(1)
report annually to the Director, the Committees on Government Reform and
Science of the House of Representa- tives, the Committees on Governmental
Affairs and Commerce, Science, and Transportation of the Senate, the
appropriate

H.
R. 2458—54

authorization
and appropriations committees of Congress, and the Comptroller General on the
adequacy and effectiveness of information security policies, procedures, and
practices, and compliance with the requirements of this subchapter, including
compliance with each requirement of subsection (b);

‘‘(2)
address the adequacy and effectiveness of information security policies,
procedures, and practices in plans and reports relating to—

‘‘(A)
annual agency budgets;

‘‘(B)
information resources management under sub- chapter 1 of this chapter;

‘‘(C)
information technology management under sub- title III of title 40;

‘‘(D)
program performance under sections 1105 and 1115 through 1119 of title 31, and
sections 2801 and 2805 of title 39;

‘‘(E)
financial management under chapter 9 of title 31, and the Chief Financial
Officers Act of 1990 (31 U.S.C. 501 note; Public Law 101–576) (and the
amendments made by that Act);

‘‘(F)
financial management systems under the Federal Financial Management Improvement
Act (31 U.S.C. 3512 note); and

‘‘(G)
internal accounting and administrative controls under section 3512 of title 31,
(known as the ‘Federal Managers Financial Integrity Act’); and
‘‘(3) report any
significant deficiency in a policy, procedure,

or
practice identified under paragraph (1) or (2)—
‘‘(A) as a material weakness in
reporting under section

3512
of title 31; and
‘‘(B) if relating to financial management systems, as

an
instance of a lack of substantial compliance under the Federal Financial
Management Improvement Act (31 U.S.C. 3512 note).

‘‘(d)
PERFORMANCEPLAN.—(1) In addition to the
requirements of subsection (c), each agency, in consultation with the Director,
shall include as part of the performance plan required under section 1115 of
title 31 a description of—

‘‘(A)
the time periods, and

‘‘(B)
the resources, including budget, staffing, and training, that are necessary to
implement the program required under sub- section (b).

‘‘(2)
The description under paragraph (1) shall be based on the risk assessments
required under subsection (b)(2)(1).

‘‘(e)
PUBLICNOTICE ANDCOMMENT.—Each agency shall
provide the public with timely notice and opportunities for comment on proposed
information security policies and procedures to the extent that such policies
and procedures affect communication with the public.

‘‘§
3545. Annual independent evaluation

‘‘(a)
INGENERAL.—(1) Each year each
agency shall have per- formed an independent evaluation of the information
security pro- gram and practices of that agency to determine the effectiveness
of such program and practices.

‘‘(2)
Each evaluation under this section shall include—

H.
R. 2458—55

‘‘(A)
testing of the effectiveness of information security policies, procedures, and
practices of a representative subset of the agency’s information systems;

‘‘(B)
an assessment (made on the basis of the results of the testing) of compliance
with—

‘‘(i)
the requirements of this subchapter; and

‘‘(ii)
related information security policies, procedures, standards, and guidelines;
and
‘‘(C) separate presentations, as appropriate, regarding

information
security relating to national security systems. ‘‘(b) INDEPENDENTAUDITOR.—Subject to subsection
(c)—

‘‘(1)
for each agency with an Inspector General appointed under the Inspector General
Act of 1978, the annual evaluation required by this section shall be performed
by the Inspector General or by an independent external auditor, as determined
by the Inspector General of the agency; and

‘‘(2)
for each agency to which paragraph (1) does not apply, the head of the agency
shall engage an independent external auditor to perform the evaluation.
‘‘(c) NATIONALSECURITYSYSTEMS.—For each agency
operating

or
exercising control of a national security system, that portion of the
evaluation required by this section directly relating to a national security
system shall be performed—

‘‘(1)
only by an entity designated by the agency head; and

‘‘(2)
in such a manner as to ensure appropriate protection for information associated
with any information security vulner- ability in such system commensurate with
the risk and in accordance with all applicable laws.
‘‘(d) EXISTINGEVALUATIONS.—The evaluation required
by this

section
may be based in whole or in part on an audit, evaluation, or report relating to
programs or practices of the applicable agency. ‘‘(e) AGENCYREPORTING.—(1) Each year, not later
than such date established by the Director, the head of each agency shall
submit to the Director the results of the evaluation required under

this
section.
‘‘(2) To the extent an evaluation required under this section

directly
relates to a national security system, the evaluation results submitted to the
Director shall contain only a summary and assess- ment of that portion of the
evaluation directly relating to a national security system.

‘‘(f)
PROTECTION OF
INFORMATION.—Agencies and evaluators
shall take appropriate steps to ensure the protection of information which, if
disclosed, may adversely affect information security. Such protections shall be
commensurate with the risk and comply with all applicable laws and regulations.

‘‘(g)
OMB REPORTS
TOCONGRESS.—(1) The Director shall
summarize the results of the evaluations conducted under this section in the
report to Congress required under section 3543(a)(8).

‘‘(2)
The Director’s report to Congress under this subsection shall summarize
information regarding information security relating to national security
systems in such a manner as to ensure appropriate protection for information
associated with any informa- tion security vulnerability in such system
commensurate with the risk and in accordance with all applicable laws.

‘‘(3)
Evaluations and any other descriptions of information sys- tems under the
authority and control of the Director of Central

H.
R. 2458—56

Intelligence
or of National Foreign Intelligence Programs systems under the authority and
control of the Secretary of Defense shall be made available to Congress only
through the appropriate over- sight committees of Congress, in accordance with
applicable laws.

‘‘(h)
COMPTROLLERGENERAL.—The Comptroller General
shall periodically evaluate and report to Congress on—

‘‘(1)
the adequacy and effectiveness of agency information security policies and
practices; and

‘‘(2)
implementation of the requirements of this subchapter.

‘‘§
3546. Federal information security incident center

‘‘(a)
INGENERAL.—The Director shall
ensure the operation of a central Federal information security incident center
to—

‘‘(1)
provide timely technical assistance to operators of agency information systems
regarding security incidents, including guidance on detecting and handling
information secu- rity incidents;

‘‘(2)
compile and analyze information about incidents that threaten information
security;

‘‘(3)
inform operators of agency information systems about current and potential
information security threats, and vulnerabilities; and

‘‘(4)
consult with the National Institute of Standards and Technology, agencies or
offices operating or exercising control of national security systems (including
the National Security Agency), and such other agencies or offices in accordance
with law and as directed by the President regarding information security
incidents and related matters.
‘‘(b) NATIONALSECURITYSYSTEMS.—Each agency operating or

exercising
control of a national security system shall share informa- tion about
information security incidents, threats, and vulnerabilities with the Federal
information security incident center to the extent consistent with standards
and guidelines for national security systems, issued in accordance with law and
as directed by the President.

‘‘§
3547. National security systems

‘‘The
head of each agency operating or exercising control of a national security
system shall be responsible for ensuring that the agency—

‘‘(1)
provides information security protections commensu- rate with the risk and
magnitude of the harm resulting from the unauthorized access, use, disclosure,
disruption, modifica- tion, or destruction of the information contained in such
system;

‘‘(2)
implements information security policies and practices as required by standards
and guidelines for national security systems, issued in accordance with law and
as directed by the President; and

‘‘(3)
complies with the requirements of this subchapter.

‘‘§
3548. Authorization of appropriations

‘‘There
are authorized to be appropriated to carry out the provisions of this
subchapter such sums as may be necessary for each of fiscal years 2003 through
2007.

H.
R. 2458—57

‘‘§
3549. Effect on existing law

‘‘Nothing
in this subchapter, section 11331 of title 40, or section 20 of the National
Standards and Technology Act (15 U.S.C. 278g– 3) may be construed as affecting
the authority of the President, the Office of Management and Budget or the
Director thereof, the National Institute of Standards and Technology, or the
head of any agency, with respect to the authorized use or disclosure of information,
including with regard to the protection of personal privacy under section 552a
of title 5, the disclosure of information under section 552 of title 5, the
management and disposition of records under chapters 29, 31, or 33 of title 44,
the management of information resources under subchapter I of chapter 35 of
this title, or the disclosure of information to the Congress or the Comp-
troller General of the United States. While this subchapter is in effect,
subchapter II of this chapter shall not apply.’’.

(2)
CLERICAL
AMENDMENT.—The
table of sections at the beginning of such chapter 35 is amended by adding at
the end the following:

‘‘SUBCHAPTER
III—INFORMATION SECURITY

‘‘Sec.
‘‘3541.
Purposes.
‘‘3542. Definitions.
‘‘3543. Authority and functions of the Director.
‘‘3544. Federal agency responsibilities.
‘‘3545. Annual independent
evaluation.
‘‘3546. Federal information security incident center. ‘‘3547.
National security systems.
‘‘3548. Authorization of appropriations.
‘‘3549.
Effect on existing law.’’.

(c)
INFORMATIONSECURITYRESPONSIBILITIES OFCERTAINAGEN-CIES.—

(1)
NATIONAL
SECURITY RESPONSIBILITIES.—(A)
Nothing in this Act (including any amendment made by this Act) shall supersede
any authority of the Secretary of Defense, the Director of Central Intelligence,
or other agency head, as authorized by law and as directed by the President,
with regard to the operation, control, or management of national security
systems, as defined by section 3542(b)(2) of title 44, United States Code.

(B)
Section 2224 of title 10, United States Code, is amended—

(i)
in subsection (b), by striking ‘‘(b) OBJECTIVES ANDMINIMUMREQUIREMENTS.—(1)’’ and inserting
‘‘(b) OBJEC-TIVES OF THEPROGRAM.—’’;

(ii)
in subsection (b), by striking paragraph (2); and

(iii)
in subsection (c), in the matter preceding para- graph (1), by inserting ‘‘,
including through compliance with subchapter III of chapter 35 of title 44’’
after ‘‘infra- structure’’.
(2) ATOMIC ENERGY ACT OF 1954.—Nothing in this Act
shall

supersede
any requirement made by or under the Atomic Energy Act of 1954 (42 U.S.C. 2011
et seq.). Restricted data or formerly restricted data shall be handled,
protected, classi- fied, downgraded, and declassified in conformity with the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

H.
R. 2458—58

SEC.
302. MANAGEMENT OF INFORMATION TECHNOLOGY.

(a)
INGENERAL.—Section 11331 of title
40, United States Code, is amended to read as follows:

‘‘§11331.
Responsibilities for Federal information systems standards

‘‘(a)
STANDARDS AND
GUIDELINES.—
‘‘(1) AUTHORITY TO PRESCRIBE.—Except as provided under

paragraph
(2), the Secretary of Commerce shall, on the basis of standards and guidelines
developed by the National Institute of Standards and Technology pursuant to
paragraphs (2) and (3) of section 20(a) of the National Institute of Standards
and Technology Act (15 U.S.C. 278g–3(a)), prescribe standards and guidelines
pertaining to Federal information systems.

‘‘(2)
NATIONAL
SECURITY SYSTEMS.—Standards
and guide- lines for national security systems (as defined under this sec-
tion) shall be developed, prescribed, enforced, and overseen as otherwise
authorized by law and as directed by the Presi- dent.
‘‘(b) MANDATORYREQUIREMENTS.—

‘‘(1)
AUTHORITY TO
MAKE MANDATORY.—Except
as provided under paragraph (2), the Secretary shall make standards pre-
scribed under subsection (a)(1) compulsory and binding to the extent determined
necessary by the Secretary to improve the efficiency of operation or security
of Federal information sys- tems.

‘‘(2)
REQUIRED
MANDATORY STANDARDS.—(A)
Standards pre- scribed under subsection (a)(1) shall include information secu-
rity standards that—

‘‘(i)
provide minimum information security require- ments as determined under section
20(b) of the National Institute of Standards and Technology Act (15 U.S.C.
278g– 3(b)); and

‘‘(ii)
are otherwise necessary to improve the security of Federal information and
information systems.
‘‘(B) Information security standards described in subpara-

graph
(A) shall be compulsory and binding.

‘‘(c)
AUTHORITY TODISAPPROVE ORMODIFY.—The President may
disapprove or modify the standards and guidelines referred to in subsection
(a)(1) if the President determines such action to be in the public interest.
The President’s authority to disapprove or modify such standards and guidelines
may not be delegated. Notice of such disapproval or modification shall be
published promptly in the Federal Register. Upon receiving notice of such
disapproval or modification, the Secretary of Commerce shall immediately
rescind or modify such standards or guidelines as directed by the President.

‘‘(d)
EXERCISE OFAUTHORITY.—To ensure fiscal and
policy consistency, the Secretary shall exercise the authority conferred by
this section subject to direction by the President and in coordina- tion with
the Director of the Office of Management and Budget.

‘‘(e)
APPLICATION
OFMORESTRINGENTSTANDARDS.—The head of an executive
agency may employ standards for the cost-effective information security for
information systems within or under the supervision of that agency that are
more stringent than the stand- ards the Secretary prescribes under this section
if the more strin- gent standards—

H.
R. 2458—59

‘‘(1)
contain at least the applicable standards made compul- sory and binding by the
Secretary; and

‘‘(2)
are otherwise consistent with policies and guidelines issued under section 3543
of title 44.
‘‘(f) DECISIONS
ONPROMULGATION OFSTANDARDS.—The decision

by
the Secretary regarding the promulgation of any standard under this section
shall occur not later than 6 months after the submission of the proposed
standard to the Secretary by the National Institute of Standards and
Technology, as provided under section 20 of the National Institute of Standards
and Technology Act (15 U.S.C. 278g–3).

‘‘(g)
DEFINITIONS.—In this section:
‘‘(1) FEDERAL INFORMATION SYSTEM.—The term ‘Federal

information
system’ means an information system used or oper- ated by an executive agency,
by a contractor of an executive agency, or by another organization on behalf of
an executive agency.

‘‘(2)
INFORMATION
SECURITY.—The
term ‘information secu- rity’ has the meaning given that term in section
3542(b)(1) of title 44.

‘‘(3)
NATIONAL
SECURITY SYSTEM.—The
term ‘national secu- rity system’ has the meaning given that term in section
3542(b)(2) of title 44.’’.
(b) CLERICALAMENDMENT.—The
item relating to section 11331

in
the table of sections at the beginning of chapter 113 of such title is amended
to read as follows:

‘‘11331.
Responsibilities for Federal information systems standards.’’.

SEC.
303. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.

Section
20 of the National Institute of Standards and Tech- nology Act (15 U.S.C.
278g–3), is amended by striking the text and inserting the following:

‘‘(a)
INGENERAL.—The Institute
shall—
‘‘(1) have the mission of developing standards, guidelines,

and
associated methods and techniques for information sys- tems;

‘‘(2)
develop standards and guidelines, including minimum requirements, for
information systems used or operated by an agency or by a contractor of an
agency or other organization on behalf of an agency, other than national
security systems (as defined in section 3542(b)(2) of title 44, United States
Code); and

‘‘(3)
develop standards and guidelines, including minimum requirements, for providing
adequate information security for all agency operations and assets, but such
standards and guide- lines shall not apply to national security systems.
‘‘(b)
MINIMUMREQUIREMENTS FORSTANDARDS ANDGUIDE-

LINES.—The standards and
guidelines required by subsection (a) shall include, at a minimum—

‘‘(1)(A)
standards to be used by all agencies to categorize all information and
information systems collected or maintained by or on behalf of each agency
based on the objectives of providing appropriate levels of information security
according to a range of risk levels;

‘‘(B)
guidelines recommending the types of information and information systems to be
included in each such category; and

H.
R. 2458—60

‘‘(C)
minimum information security requirements for information and information
systems in each such category; ‘‘(2) a definition of and guidelines concerning
detection

and
handling of information security incidents; and
‘‘(3) guidelines developed in
conjunction with the Depart- ment of Defense, including the National Security
Agency, for identifying an information system as a national security system
consistent with applicable requirements for national security systems, issued
in accordance with law and as directed by

the
President.

‘‘(c)
DEVELOPMENT
OFSTANDARDS ANDGUIDELINES.—In devel- oping
standards and guidelines required by subsections (a) and (b), the Institute
shall—

‘‘(1)
consult with other agencies and offices and the private sector (including the
Director of the Office of Management and Budget, the Departments of Defense and
Energy, the National Security Agency, the General Accounting Office, and the
Secretary of Homeland Security) to assure—

‘‘(A)
use of appropriate information security policies, procedures, and techniques,
in order to improve information security and avoid unnecessary and costly
duplication of effort; and

‘‘(B)
that such standards and guidelines are com- plementary with standards and
guidelines employed for the protection of national security systems and information
contained in such systems;
‘‘(2) provide the public with an opportunity to
comment

on
proposed standards and guidelines;
‘‘(3) submit to the Secretary of Commerce
for promulgation

under
section 11331 of title 40, United States Code—
‘‘(A) standards, as required
under subsection (b)(1)(A), no later than 12 months after the date of the
enactment

of
this section; and
‘‘(B) minimum information security requirements for

each
category, as required under subsection (b)(1)(C), no later than 36 months after
the date of the enactment of this section;
‘‘(4) issue guidelines as required
under subsection (b)(1)(B),

no
later than 18 months after the date of the enactment of this section;

‘‘(5)
to the maximum extent practicable, ensure that such standards and guidelines do
not require the use or procurement of specific products, including any specific
hardware or software;

‘‘(6)
to the maximum extent practicable, ensure that such standards and guidelines
provide for sufficient flexibility to permit alternative solutions to provide
equivalent levels of protection for identified information security risks; and

‘‘(7)
to the maximum extent practicable, use flexible, performance-based standards
and guidelines that permit the use of off-the-shelf commercially developed information
security products.
‘‘(d) INFORMATIONSECURITY
FUNCTIONS.—The Institute shall—

‘‘(1)
submit standards developed pursuant to subsection (a), along with
recommendations as to the extent to which these should be made compulsory and
binding, to the Secretary of Commerce for promulgation under section 11331 of
title 40, United States Code;

H.
R. 2458—61

‘‘(2)
provide technical assistance to agencies, upon request, regarding—

‘‘(A)
compliance with the standards and guidelines developed under subsection (a);

‘‘(B)
detecting and handling information security incidents; and

‘‘(C)
information security policies, procedures, and prac- tices;

‘‘(3)
conduct research, as needed, to determine the nature and extent of information
security vulnerabilities and tech- niques for providing cost-effective
information security;

‘‘(4)
develop and periodically revise performance indicators and measures for agency
information security policies and prac- tices;

‘‘(5)
evaluate private sector information security policies and practices and
commercially available information tech- nologies to assess potential
application by agencies to strengthen information security;

‘‘(6)
assist the private sector, upon request, in using and applying the results of
activities under this section;

‘‘(7)
evaluate security policies and practices developed for national security
systems to assess potential application by agencies to strengthen information
security;

‘‘(8)
periodically assess the effectiveness of standards and guidelines developed
under this section and undertake revisions as appropriate;

‘‘(9)
solicit and consider the recommendations of the Information Security and
Privacy Advisory Board, established by section 21, regarding standards and
guidelines developed under subsection (a) and submit such recommendations to
the Secretary of Commerce with such standards submitted to the Secretary; and

‘‘(10)
prepare an annual public report on activities under- taken in the previous
year, and planned for the coming year, to carry out responsibilities under this
section.
‘‘(e) DEFINITIONS.—As used in this section—

‘‘(1)
the term ‘agency’ has the same meaning as provided in section 3502(1) of title
44, United States Code;

‘‘(2)
the term ‘information security’ has the same meaning as provided in section
3542(b)(1) of such title;

‘‘(3)
the term ‘information system’ has the same meaning as provided in section
3502(8) of such title;

‘‘(4)
the term ‘information technology’ has the same meaning as provided in section
11101 of title 40, United States Code; and

‘‘(5)
the term ‘national security system’ has the same meaning as provided in section
3542(b)(2) of title 44, United States Code.
‘‘(f) AUTHORIZATION OFAPPROPRIATIONS.—There are authorized

to
be appropriated to the Secretary of Commerce $20,000,000 for each of fiscal
years 2003, 2004, 2005, 2006, and 2007 to enable the National Institute of
Standards and Technology to carry out the provisions of this section.’’.

SEC.
304. INFORMATION SECURITY AND PRIVACY ADVISORY BOARD.

Section
21 of the National Institute of Standards and Tech- nology Act (15 U.S.C.
278g–4), is amended—

H.
R. 2458—62

(1)
in subsection (a), by striking ‘‘Computer System Security and Privacy Advisory
Board’’ and inserting ‘‘Information Secu- rity and Privacy Advisory Board’’;

(2)
in subsection (a)(1), by striking ‘‘computer or tele- communications’’ and
inserting ‘‘information technology’’;

(3)
in subsection (a)(2)—
(A) by striking ‘‘computer or telecommunications tech-

nology’’
and inserting ‘‘information technology’’; and
(B) by striking ‘‘computer or
telecommunications equip-

ment’’
and inserting ‘‘information technology’’; (4) in subsection (a)(3)—

(A)
by striking ‘‘computer systems’’ and inserting ‘‘information system’’; and

(B)
by striking ‘‘computer systems security’’ and inserting ‘‘information
security’’;
(5) in subsection (b)(1) by striking ‘‘computer systems secu-

rity’’
and inserting ‘‘information security’’;
(6) in subsection (b) by striking
paragraph (2) and inserting

the
following:
‘‘(2) to advise the Institute, the Secretary of Commerce,

and
the Director of the Office of Management and Budget on information security and
privacy issues pertaining to Federal Government information systems, including
through review of proposed standards and guidelines developed under section 20;
and’’;

(7)
in subsection (b)(3) by inserting ‘‘annually’’ after ‘‘report’’;

(8)
by inserting after subsection (e) the following new sub- section:

‘‘(f)
The Board shall hold meetings at such locations and at such time and place as
determined by a majority of the Board.’’; (9) by redesignating subsections (f)
and (g) as subsections

(g)
and (h), respectively; and
(10) by striking subsection (h), as redesignated by
para-

graph
(9), and inserting the following:

‘‘(h)
As used in this section, the terms ‘information system’ and ‘information
technology’ have the meanings given in section 20.’’.

SEC.
305. TECHNICAL AND CONFORMING AMENDMENTS.

(a)
COMPUTERSECURITYACT.—Section 11332 of title
40, United States Code, and the item relating to that section in the table of sections
for chapter 113 of such title, are repealed.

(b)
FLOYDD. SPENCENATIONALDEFENSEAUTHORIZATIONACT FORFISCALYEAR2001.—The Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001 (Public Law 106–398) is
amended by striking section 1062 (44 U.S.C. 3531 note).

(c)
PAPERWORKREDUCTIONACT.—(1) Section 3504(g) of
title 44, United States Code, is amended—

(A)
by adding ‘‘and’’ at the end of paragraph (1); (B) in paragraph (2)—

(i)
by striking ‘‘sections 11331 and 11332(b) and (c) of title 40’’ and inserting
‘‘section 11331 of title 40 and subchapter II of this chapter’’; and

(ii)
by striking ‘‘; and’’ and inserting a period; and (C) by striking paragraph
(3).

H.
R. 2458—63

(2)
Section 3505 of such title is amended by adding at the end—

‘‘(c)
INVENTORY OFMAJORINFORMATIONSYSTEMS.—(1) The head of each
agency shall develop and maintain an inventory of major information systems
(including major national security systems) operated by or under the control of
such agency.

‘‘(2)
The identification of information systems in an inventory under this subsection
shall include an identification of the interfaces between each such system and
all other systems or networks, including those not operated by or under the
control of the agency.

‘‘(3)
Such inventory shall be—
‘‘(A) updated at least annually;
‘‘(B) made available
to the Comptroller General; and
‘‘(C) used to support information resources
management,

including—
‘‘(i)
preparation and maintenance of the inventory of

information
resources under section 3506(b)(4);
‘‘(ii) information technology planning,
budgeting, acquisition, and management under section 3506(h), sub-

title
III of title 40, and related laws and guidance;
‘‘(iii) monitoring, testing,
and evaluation of information

security
controls under subchapter II;
‘‘(iv) preparation of the index of major
information

systems
required under section 552(g) of title 5, United States Code; and

‘‘(v)
preparation of information system inventories required for records management
under chapters 21, 29, 31, and 33.

‘‘(4)
The Director shall issue guidance for and oversee the implementation of the
requirements of this subsection.’’.

(3)
Section 3506(g) of such title is amended—
(A) by adding ‘‘and’’ at the end of
paragraph (1); (B) in paragraph (2)—

(i)
by striking ‘‘section 11332 of title 40’’ and inserting ‘‘subchapter II of this
chapter’’; and

(ii)
by striking ‘‘; and’’ and inserting a period; and (C) by striking paragraph
(3).

TITLE
IV—AUTHORIZATION OF APPRO- PRIATIONS AND EFFECTIVE DATES

SEC.
401. AUTHORIZATION OF APPROPRIATIONS.

Except
for those purposes for which an authorization of appro- priations is
specifically provided in title I or II, including the amend- ments made by such
titles, there are authorized to be appropriated such sums as are necessary to
carry out titles I and II for each of fiscal years 2003 through 2007.

SEC.
402. EFFECTIVE DATES.

(a)
TITLESIANDII.—
(1) IN GENERAL.—Except as provided under
paragraph (2),

titles
I and II and the amendments made by such titles shall take effect 120 days
after the date of enactment of this Act. (2) IMMEDIATE ENACTMENT.—Sections 207, 214, and
215

shall
take effect on the date of enactment of this Act.

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they oppose it?

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