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[From the U.S. Government Publishing Office]


114th Congress     }                                   {      Report
 1st Session       }      HOUSE OF REPRESENTATIVES     {       114-363
  
======================================================================



 
              STATE AND LOCAL CYBER PROTECTION ACT OF 2015

                                _______
                                

December 3, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3869]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 3869) to amend the Homeland Security Act of 2002 
to require State and local coordination on cybersecurity with 
the national cybersecurity and communications integration 
center, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Congressional Budget Office Estimate.............................     3
Statement of General Performance Goals and Objectives............     3
Duplicative Federal Programs.....................................     4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     4
Federal Mandates Statement.......................................     4
Preemption Clarification.........................................     4
Disclosure of Directed Rule Makings..............................     4
Advisory Committee Statement.....................................     4
Applicability to Legislative Branch..............................     4
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

                          Purpose and Summary

    The purpose of H.R. 3869 is to amend the Homeland Security 
Act of 2002 to assist State and local coordination on 
cybersecurity with the national cybersecurity and 
communications integration center, and for other purposes.The 
State and Local Cyber Protection Act of 2015 would codify 
ongoing efforts by instructing the National Cybersecurity and 
Communications Integration Center (NCCIC) at the Department of 
Homeland Security (DHS) to coordinate with State and local 
governments and to, upon request, provide assistance to secure 
their information systems. The legislation is intended to 
codify DHS' ongoing coordination effort to give assurances to 
State and local governments that DHS stands ready to partner 
with them to protect their networks through existing programs.
    The NCCIC would, to the extent practicable, assist in the 
identification of cyber vulnerabilities and related protections 
for State and local information security systems, develop a web 
portal to communicate available tools for State and locals to 
utilize, provide voluntary technical training for State and 
local cybersecurity analysts, provide assistance in 
implementing cybersecurity tools, provide privacy and civil 
liberties training, and inform State and locals about 
cybersecurity best practices. The bill would further direct the 
NCCIC to submit information on the effectiveness of their 
activities with State and locals to Congress two years after 
enactment.

                  Background and Need for Legislation

    Cybersecurity remains one of the most significant 
challenges facing the nation. State and Local governments host 
a wide range of sensitive citizen and critical infrastructure 
data that make them especially attractive targets for cyber 
attacks. In an October 2015 survey sponsored by Hewlett 
Packard, 71 percent of information technology (IT) and IT 
security practitioners in State, Local, Tribal and Territorial 
(SLTT) government identified that their current cybersecurity 
practices are not clearly defined and that only 19 percent of 
these SLTT IT practitioners rated their ability in preventing a 
cyber-attack highly. In November of 2010 in Gregg County, 
Texas, hackers, reportedly from Russia, managed to steal 
$200,000 in electronic fund transfers intended for delivery to 
schools and cities within the county\1\. In January of 2015, 
pro-ISIS hackers took over a government website of a County 
government in Virginia for the purpose of spreading 
propaganda\2\.
---------------------------------------------------------------------------
    \1\  http://www.news-journal.com/news/2010/dec/06/cyber-thieves-
hit-gregg-county-for-200k/.
    \2\  http://www.newsmax.com/Newsfront/isis-hacker-government-
website/2015/01/17/id/619210/.
---------------------------------------------------------------------------
    DHS has an important role to play in coordinating with 
State and locals to help them protect their information 
systems. For many State and local governments, DHS is the 
primary federal government point of contact for assisting with 
cybersecurity and recovering from a cyber incident and seeking 
information to bolster their current defenses. DHS presently 
offers such assistance and collaborates heavily with state and 
local stakeholders in its cybersecurity activities through the 
Multi State Information Sharing Analysis Center, the C-Cubed 
Voluntary Critical Infrastructure Program, the Cyber Resilience 
Review, the Enhanced Cybersecurity Services Program, the 
Continuous Diagnostics and Mitigation Program, the National 
Cyber Awareness System, the Cybersecurity Evaluation Tool 
(CSET) and the On-Site Cybersecurity Consulting.

                                Hearings

    No hearings were held on H.R. 2869, however, the Committee 
held the following oversight hearing:
    On June 24, 2015, the Subcommittee on Cybersecurity, 
Infrastructure Protection, and Security Technologies held a 
hearing entitled ``DHS' Efforts to Secure .Gov.'' The 
Subcommittee received testimony from Dr. Andy Ozment, Assistant 
Secretary, Office of Cybersecurity and Communications, National 
Protections and Programs Directorate, U.S. Department of 
Homeland Security; Mr. Gregory C. Wilshusen, Director, 
Information Security Issues, Government Accountability Office; 
and Dr. Daniel M. Gerstein, The RAND Corporation.

                        Committee Consideration

    The Committee met on November 4, 2015, to consider H.R. 
3869, and ordered the measure to be reported to the House with 
a favorable recommendation, as amended, by voice vote.

                            Committee Votes

    Clause 3(b) of Rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R. 3869.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of Rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3869, the State and Local Cyber Protection Act of 2015, would 
result in no new or increased budget authority, entitlement 
authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of Rule XIII of the Rules of the 
House of Representatives, a cost estimate provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of Rule XIII of the Rules of the 
House of Representatives, H.R. 3869 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    H.R. 3869 provides that, not later than 2 years after the 
date of enactment of this Act, the national cybersecurity and 
communications integration center of the Department of Homeland 
Security shall provide to the Committee on Homeland Security of 
the House of Representatives and the Committee on Homeland 
Security and Governmental Affairs of the Senate information on 
the activities and effectiveness of such activities and will 
include feedback from State and local governments in this 
information.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of Rule XIII, the Committee finds 
that H.R. 3869 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with Rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule 
XXI.

                       Federal Mandates Statement

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 3869 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 3869 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1.   Short Title.

    This section provides that this bill may be cited as the 
``State and Local Cyber Protection Act of 2015''.

Sec. 2.   State and Local Coordination on Cybersecurity with the 
        National Cybersecurity and Communications Integration Center.

Subsection (a).
    This subsection amends the second section 226 of the 
Homeland Security Act (HSA) by adding the following:

``Subsection (g) State and Local Coordination on Cybersecurity.

    The National Cybersecurity and Communications Integration 
Center (Center) shall, to the extent practicable, offer 
assistance, tools, and training to State and local governments 
to address cybersecurity risks and incidents.
    This subsection instructs the Center to offer assistance, 
upon request, to State and Local governments to secure 
information systems through the identification of cybersecurity 
risks and relevant protective security tools and the deployment 
of technology to continuously diagnose and mitigate against 
cyber threats and vulnerabilities. This subsection instructs 
the Center to provide a web portal developed in consultation 
with State and local governments. This subsection also 
instructs the Center to coordinate nationwide efforts, working 
with national associations, to secure information systems at 
the State and local level. One potential mechanism for doing so 
would be participation and coordination in national meetings 
that are already in place such as current meetings coordinated 
by the National Governors Association, the National Association 
of State Chief Information Officers and other relevant groups.
    This subsection instructs the Center to, upon request, 
provide to State and locals technical cybersecurity training to 
relevant analysts such as the cyber analysis training course 
held at Argonne National Laboratory which includes in its 
target audience analysts supporting State Chief Information 
Officers and/or Chief Information Security Officers. This 
subsection also instructs the Center, in coordination with the 
Chief Privacy Officer and the Chief Civil Rights and Civil 
Liberties Officer of the Department, to provide privacy and 
civil liberties training. The subsection also instructs the 
Center to provide operational and technical assistance for 
implementing tools, products, resources, policies, guidelines, 
and procedures for information security. The Center is also 
instructed to compile and analyze data on State and local 
information security, and develop and conduct targeted 
operational evaluations for State and local governments. The 
Committee believes this legislation reinforces the support and 
assistance DHS is already providing for State and local 
governments through existing funded programs.
    This subsection also instructs the Center to assist State 
and locals to develop procedures for coordinating vulnerability 
disclosures using current standards. It informs State and local 
governments on the tools, products, resources, policies, 
guidelines, and procedures on information security best 
practices.

Subsection (b) Congressional Oversight.
    This subsection requires the Center to submit to the U.S. 
House of Representatives Committee on Homeland Security and 
U.S. Senate Committee on Homeland Security and Governmental 
Affairs two years after the enactment of this bill information 
on the activities and effectiveness of their coordination 
efforts with State and local governments. The Center is 
required to seek feedback from State and local governments and 
incorporate such feedback into this submitted information.
    The Committee intends for this legislation to instruct the 
Center to execute and provide cybersecurity assistance to State 
and local governments including by assisting governors and 
other appointed and elected SLTT government officials with 
identifying cybersecurity initiatives and partnership 
opportunities with Federal agencies and State and local 
associations to help protect their citizens online. The 
Committee underscores this point by noting that the bill 
provides no new funding and, as such, is not intended to place 
new unfunded mandates on DHS. Instead, it seeks to codify the 
NCCIC to manage existing efforts and to strengthen partnerships 
with State and local governments.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

HOMELAND SECURITY ACT OF 2002

           *       *       *       *       *       *       *


TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

           *       *       *       *       *       *       *


Subtitle C--Information Security

           *       *       *       *       *       *       *


SEC. 226. NATIONAL CYBERSECURITY AND COMMUNICATIONS INTEGRATION CENTER.

  (a) Definitions.--In this section--
          (1) the term ``cybersecurity risk'' means threats to 
        and vulnerabilities of information or information 
        systems and any related consequences caused by or 
        resulting from unauthorized access, use, disclosure, 
        degradation, disruption, modification, or destruction 
        of information or information systems, including such 
        related consequences caused by an act of terrorism;
          (2) the term ``incident'' means an occurrence that--
                  (A) actually or imminently jeopardizes, 
                without lawful authority, the integrity, 
                confidentiality, or availability of information 
                on an information system; or
                  (B) constitutes a violation or imminent 
                threat of violation of law, security policies, 
                security procedures, or acceptable use 
                policies;
          (3) the term ``information sharing and analysis 
        organization'' has the meaning given that term in 
        section 212(5); and
          (4) the term ``information system'' has the meaning 
        given that term in section 3502(8) of title 44, United 
        States Code.
  (b) Center.--There is in the Department a national 
cybersecurity and communications integration center (referred 
to in this section as the ``Center'') to carry out certain 
responsibilities of the Under Secretary appointed under section 
103(a)(1)(H).
  (c) Functions.--The cybersecurity functions of the Center 
shall include--
          (1) being a Federal civilian interface for the multi-
        directional and cross-sector sharing of information 
        related to cybersecurity risks, incidents, analysis, 
        and warnings for Federal and non-Federal entities;
          (2) providing shared situational awareness to enable 
        real-time, integrated, and operational actions across 
        the Federal Government and non-Federal entities to 
        address cybersecurity risks and incidents to Federal 
        and non-Federal entities;
          (3) coordinating the sharing of information related 
        to cybersecurity risks and incidents across the Federal 
        Government;
          (4) facilitating cross-sector coordination to address 
        cybersecurity risks and incidents, including 
        cybersecurity risks and incidents that may be related 
        or could have consequential impacts across multiple 
        sectors;
          (5)(A) conducting integration and analysis, including 
        cross-sector integration and analysis, of cybersecurity 
        risks and incidents; and
          (B) sharing the analysis conducted under subparagraph 
        (A) with Federal and non-Federal entities;
          (6) upon request, providing timely technical 
        assistance, risk management support, and incident 
        response capabilities to Federal and non-Federal 
        entities with respect to cybersecurity risks and 
        incidents, which may include attribution, mitigation, 
        and remediation; and
          (7) providing information and recommendations on 
        security and resilience measures to Federal and non-
        Federal entities, including information and 
        recommendations to--
                  (A) facilitate information security; and
                  (B) strengthen information systems against 
                cybersecurity risks and incidents.
  (d) Composition.--
          (1) In general.--The Center shall be composed of--
                  (A) appropriate representatives of Federal 
                entities, such as--
                          (i) sector-specific agencies;
                          (ii) civilian and law enforcement 
                        agencies; and
                          (iii) elements of the intelligence 
                        community, as that term is defined 
                        under section 3(4) of the National 
                        Security Act of 1947 (50 U.S.C. 
                        3003(4));
                  (B) appropriate representatives of non-
                Federal entities, such as--
                          (i) State and local governments;
                          (ii) information sharing and analysis 
                        organizations; and
                          (iii) owners and operators of 
                        critical information systems;
                  (C) components within the Center that carry 
                out cybersecurity and communications 
                activities;
                  (D) a designated Federal official for 
                operational coordination with and across each 
                sector; and
                  (E) other appropriate representatives or 
                entities, as determined by the Secretary.
          (2) Incidents.--In the event of an incident, during 
        exigent circumstances the Secretary may grant a Federal 
        or non-Federal entity immediate temporary access to the 
        Center.
  (e) Principles.--In carrying out the functions under 
subsection (c), the Center shall ensure--
          (1) to the extent practicable, that--
                  (A) timely, actionable, and relevant 
                information related to cybersecurity risks, 
                incidents, and analysis is shared;
                  (B) when appropriate, information related to 
                cybersecurity risks, incidents, and analysis is 
                integrated with other relevant information and 
                tailored to the specific characteristics of a 
                sector;
                  (C) activities are prioritized and conducted 
                based on the level of risk;
                  (D) industry sector-specific, academic, and 
                national laboratory expertise is sought and 
                receives appropriate consideration;
                  (E) continuous, collaborative, and inclusive 
                coordination occurs--
                          (i) across sectors; and
                          (ii) with--
                                  (I) sector coordinating 
                                councils;
                                  (II) information sharing and 
                                analysis organizations; and
                                  (III) other appropriate non-
                                Federal partners;
                  (F) as appropriate, the Center works to 
                develop and use mechanisms for sharing 
                information related to cybersecurity risks and 
                incidents that are technology-neutral, 
                interoperable, real-time, cost-effective, and 
                resilient; and
                  (G) the Center works with other agencies to 
                reduce unnecessarily duplicative sharing of 
                information related to cybersecurity risks and 
                incidents;
          (2) that information related to cybersecurity risks 
        and incidents is appropriately safeguarded against 
        unauthorized access; and
          (3) that activities conducted by the Center comply 
        with all policies, regulations, and laws that protect 
        the privacy and civil liberties of United States 
        persons.
  (f) No Right or Benefit.--
          (1) In general.--The provision of assistance or 
        information to, and inclusion in the Center of, 
        governmental or private entities under this section 
        shall be at the sole and unreviewable discretion of the 
        Under Secretary appointed under section 103(a)(1)(H).
          (2) Certain assistance or information.--The provision 
        of certain assistance or information to, or inclusion 
        in the Center of, one governmental or private entity 
        pursuant to this section shall not create a right or 
        benefit, substantive or procedural, to similar 
        assistance or information for any other governmental or 
        private entity.
  (g) State and Local Coordination on Cybersecurity.--
          (1) In general.--The Center shall, to the extent 
        practicable--
                  (A) assist State and local governments, upon 
                request, in identifying information system 
                vulnerabilities;
                  (B) assist State and local governments, upon 
                request, in identifying information security 
                protections commensurate with cybersecurity 
                risks and the magnitude of the potential harm 
                resulting from the unauthorized access, use, 
                disclosure, disruption, modification, or 
                destruction of--
                          (i) information collected or 
                        maintained by or on behalf of a State 
                        or local government; or
                          (ii) information systems used or 
                        operated by an agency or by a 
                        contractor of a State or local 
                        government or other organization on 
                        behalf of a State or local government;
                  (C) in consultation with State and local 
                governments, provide and periodically update 
                via a web portal tools, products, resources, 
                policies, guidelines, and procedures related to 
                information security;
                  (D) work with senior State and local 
                government officials, including State and local 
                Chief Information Officers, through national 
                associations to coordinate a nationwide effort 
                to ensure effective implementation of tools, 
                products, resources, policies, guidelines, and 
                procedures related to information security to 
                secure and ensure the resiliency of State and 
                local information systems;
                  (E) provide, upon request, operational and 
                technical cybersecurity training to State and 
                local government and fusion center analysts and 
                operators to address cybersecurity risks or 
                incidents;
                  (F) provide, in coordination with the Chief 
                Privacy Officer and the Chief Civil Rights and 
                Civil Liberties Officer of the Department, 
                privacy and civil liberties training to State 
                and local governments related to cybersecurity;
                  (G) provide, upon request, operational and 
                technical assistance to State and local 
                governments to implement tools, products, 
                resources, policies, guidelines, and procedures 
                on information security by--
                          (i) deploying technology to assist 
                        such State or local government to 
                        continuously diagnose and mitigate 
                        against cyber threats and 
                        vulnerabilities, with or without 
                        reimbursement;
                          (ii) compiling and analyzing data on 
                        State and local information security; 
                        and
                          (iii) developing and conducting 
                        targeted operational evaluations, 
                        including threat and vulnerability 
                        assessments, on the information systems 
                        of State and local governments;
                  (H) assist State and local governments to 
                develop policies and procedures for 
                coordinating vulnerability disclosures, to the 
                extent practicable, consistent with 
                international and national standards in the 
                information technology industry, including 
                standards developed by the National Institute 
                of Standards and Technology; and
                  (I) ensure that State and local governments, 
                as appropriate, are made aware of the tools, 
                products, resources, policies, guidelines, and 
                procedures on information security developed by 
                the Department and other appropriate Federal 
                departments and agencies for ensuring the 
                security and resiliency of Federal civilian 
                information systems.
          (2) Training.--Privacy and civil liberties training 
        provided pursuant to subparagraph (F) of paragraph (1) 
        shall include processes, methods, and information 
        that--
                  (A) are consistent with the Department's Fair 
                Information Practice Principles developed 
                pursuant to section 552a of title 5, United 
                States Code (commonly referred to as the 
                ``Privacy Act of 1974'' or the ``Privacy 
                Act'');
                  (B) reasonably limit, to the greatest extent 
                practicable, the receipt, retention, use, and 
                disclosure of information related to 
                cybersecurity risks and incidents associated 
                with specific persons that is not necessary, 
                for cybersecurity purposes, to protect an 
                information system or network of information 
                systems from cybersecurity risks or to mitigate 
                cybersecurity risks and incidents in a timely 
                manner;
                  (C) minimize any impact on privacy and civil 
                liberties;
                  (D) provide data integrity through the prompt 
                removal and destruction of obsolete or 
                erroneous names and personal information that 
                is unrelated to the cybersecurity risk or 
                incident information shared and retained by the 
                Center in accordance with this section;
                  (E) include requirements to safeguard cyber 
                threat indicators and defensive measures 
                retained by the Center, including information 
                that is proprietary or business-sensitive that 
                may be used to identify specific persons from 
                unauthorized access or acquisition;
                  (F) protect the confidentiality of cyber 
                threat indicators and defensive measures 
                associated with specific persons to the 
                greatest extent practicable; and
                  (G) ensure all relevant constitutional, 
                legal, and privacy protections are observed.

           *       *       *       *       *       *       *


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