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114th Congress   }                                     {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                     {       114-599

======================================================================


 
           FEDERAL INFORMATION SYSTEMS SAFEGUARDS ACT OF 2016

                                _______
                                

  May 31, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Chaffetz, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 4361]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 4361) to amend section 3554 of 
title 44, United States Code, to provide for enhanced security 
of Federal information systems, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     2
Section-by-Section...............................................     5
Explanation of Amendments........................................     5
Committee Consideration..........................................     5
Roll Call Votes..................................................     5
Application of Law to the Legislative Branch.....................     7
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     7
Statement of General Performance Goals and Objectives............     7
Duplication of Federal Programs..................................     7
Disclosure of Directed Rule Makings..............................     7
Federal Advisory Committee Act...................................     7
Unfunded Mandate Statement.......................................     7
Earmark Identification...........................................     8
Committee Estimate...............................................     8
Budget Authority and Congressional Budget Office Cost Estimate...     8
Changes in Existing Law Made by the Bill, as Reported............     9
Minority Views...................................................    15

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Federal Information Systems Safeguards 
Act of 2016''.

SEC. 2. AGENCY DISCRETION TO SECURE INFORMATION TECHNOLOGY AND 
                    INFORMATION SYSTEMS.

  Section 3554 of title 44, United States Code, is amended by adding at 
the end the following new subsection:
  ``(f) Agency Discretion.--The head of each agency has the sole and 
exclusive authority, with respect to any information technology or 
information system under the control of such agency--
          ``(1) to take any action the agency determines to be 
        necessary to reduce or eliminate security weakness and risk, 
        including to protect the information contained in the 
        information technology or information system; and
          ``(2) to take any action the agency determines to be 
        necessary to reduce or eliminate future security weakness and 
        risk, including to protect the information contained in the 
        information technology or information system.''.

SEC. 3 RULE OF CONSTRUCTION.

  Section 2 of this Act, which clarifies agency discretion with respect 
to any information technology or information system under control of 
such agency, does not modify existing law as enacted in the 
Consolidated Appropriations Act of Fiscal Year 2016, Division N - 
Cybersecurity Act of 2015, Public Law 114-113.

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    The Federal Information Systems Safeguards Act of 2016 was 
introduced to ensure federal agencies may take appropriate and 
timely action as permitted by law to secure their information 
technology (IT) systems without first providing an opportunity 
for collective bargaining on such actions.

                  BACKGROUND AND NEED FOR LEGISLATION

    The federal government's most important responsibility is 
to protect the United States and its people. This 
responsibility includes ensuring the federal government 
protects the personally identifiable information (PII) of 
current and former federal employees as well as other 
information, including sensitive and classified information. 
H.R. 4361 is designed to help support that responsibility and 
clarifies federal agencies' existing authority under the 
Federal Information Security Management Act (FISMA) to secure 
their IT systems by clarifying that agencies' IT security 
functions are not subject to collective bargaining with federal 
employees.
    In a July 8, 2014 decision, the Federal Labor Relations 
Authority (FLRA) held that agencies' ability to take action to 
fulfill their responsibilities under the FISMA could be subject 
to collective bargaining rules.\1\
---------------------------------------------------------------------------
    \1\U.S. Department of Homeland Security Immigration and Customs 
Enforcement and American Federation of Government Employees National 
Immigration and Customs Enforcement Council 118, 67 FLRA No. 126 (July 
8, 2014).
---------------------------------------------------------------------------
    In the case, the U.S. Department of Homeland Security's 
(DHS) Immigration and Customs Enforcement (ICE) subcomponent 
identified a significant increase in network infections and 
privacy compromises that were related to employees accessing 
their personnel email from work computers (webmail). In 
response, the agency notified the union and terminated 
employees' webmail access. The union objected, arguing that 
such action was subject to collective bargaining. In its 
decision, the FLRA held that the agency could not block webmail 
access through the agency's network without first providing the 
union an opportunity to bargain.
    The FLRA majority's analysis stated that under federal 
labor law, matters concerning conditions of employment over 
which an agency has discretion are negotiable if the agency's 
discretion is not sole and exclusive . . .'' Ultimately, the 
FLRA majority found that imprecise wording in FISMA on 
agencies' IT security responsibility failed to ``demonstrate[] 
congressional intent to vest the Agency with sole and exclusive 
discretion over information security matters.''
    The FLRA's dissenting member disagreed stating that the 
majority's decision effectively undermined agencies' ability to 
fulfill their responsibilities under FISMA. He wrote: ``it is 
obvious to me (after having served for seven and half years as 
the CIO at the U.S. Department of Labor) that neither the 
[FLRA] nor the Arbitrator possesses the specialized knowledge 
or expertise that would permit us to decide when a federal 
agency ought to address specific security risks or permit us to 
second guess how that agency should exercise those 
responsibilities.'' He further added, ``I cannot conclude that 
Congress intended for our Statute to be read so expansively as 
to impose additional--in this case bargaining--requirements on 
federal agencies before they can act to secure the integrity of 
their federal IT systems, the breach of which, could directly 
impact our nation's security and economic prosperity.''
    H.R. 4361 will settle the unfortunate ambiguity identified 
by the majority in the 2014 FLRA case and make clear 
congressional intent with respect to agencies' sole and 
exclusive authority to take appropriate and timely action as 
permitted by law to secure their IT systems, pursuant to the 
provisions of FISMA.
    Notably, the need for this bill was highlighted in June and 
July of 2015, when news of the largest government data breach 
to date became public, clearly illustrating the need for 
agencies to be able to take swift action in response to IT 
threats. In this case, in June and July 2015, the Office of 
Personnel Management announced that the personally-identifiable 
information (PII) of over 22 million individuals--current and 
former federal employees, contractors, and other related 
individuals--had been compromised as a result of a cyber 
attack. The data compromised included sensitive data collected 
for purposes of background investigations, including 5.6 
million fingerprints. The national security impact of this 
breach will resonate for decades to come. In June 2015, 
government unions representing the federal workers and retirees 
who were impacted by the OPM data breach sued OPM for failing 
to protect their data.\2\
---------------------------------------------------------------------------
    \2\AFGE Files Class Action Lawsuit against OPM Officials over Data 
Breach, AFGE Press Release, June 29, 2015, available at:  https://
www.afge.org/?PressReleaseID=1771. 
---------------------------------------------------------------------------
    Moreover, in July 2015 the specific issue raised by the 
FLRA in 2014 was raised again as OPM sought to mitigate the 
security vulnerabilities as they continued investigation of the 
data breach incident. At that time, OPM took action to restrict 
employees' access to Facebook, Gmail and other sites in the 
interest of security.\3\ In response, the American Federation 
of Government Employees (AFGE) Local 32 President complained 
that employees were shut out and OPM did not provide an 
opportunity for collective bargaining before taking this 
action. Although the union did not formally challenge the 
action, the 2014 FLRA case was cited as support for the demand 
to collectively bargain.
---------------------------------------------------------------------------
    \3\OPM's Shift in Security Posture Raises Labor Law Questions, 
Federal Computer Week, July 15, 2015, available at: https://fcw.com/
articles/2015/07/15/opm-labor-law.aspx.
---------------------------------------------------------------------------
    In response to this situation, both the sponsor of the 
legislation, Congressman Gary Palmer (R-AL), and Chairman Jason 
Chaffetz (R-UT) have stated that in light of the OPM data 
breach and the ambiguity of the FISMA language pointed out in 
the 2014 FLRA case, the need for legislation was apparent.\4\ 
Thus, H.R. 4361 was written to provide clarity on agencies' 
FISMA responsibilities that should empower agencies to take 
appropriate and timely action as permitted by law to secure IT 
systems in response to threats the agency identifies and in 
accordance with policy direction from the Office of Management 
and Budget (OMB) and operational directives from DHS.
---------------------------------------------------------------------------
    \4\How Collective Bargaining Undermines Cybersecurity by Gary 
Palmer and Jason Chaffetz, Washington Times, February 24, 2016.
---------------------------------------------------------------------------
    Importantly, H.R. 4361 does not exempt agencies from any 
other statute; it simply allows agencies the discretion to not 
bargain with its employees in order to take appropriate and 
timely action as permitted by law to secure IT networks. In 
particular, H.R. 4361 does not modify existing authority and 
responsibilities of the Director of the OMB and the Secretary 
of Homeland Security under title 44 section 3553 of the U.S. 
Code. In fact, by clarifying the law and ensuring that actions 
taken to secure agency IT systems are lawful when agencies do 
not provide an opportunity to bargain, H.R. 4361 will empower 
agencies to quickly respond to OMB and DHS direction and 
guidance. H.R. 4361 also does not modify requirements of the 
Privacy Act (5 U.S.C. Sec. 552a), federal procurement law under 
Title 41 of the U.S. Code, and the Cybersecurity Act of 
2015.\5\
---------------------------------------------------------------------------
    \5\OPM Data Breach Part I: Hearing Before the H. Comm. On Oversight 
and Gov't Reform, 114th Cong. (June 16, 2015).
---------------------------------------------------------------------------

                          LEGISLATIVE HISTORY

    On June 16, 2015, the Committee held a hearing on OPM and 
the 2015 reported data breach. During this hearing, Congressman 
Gary Palmer (R-AL) discussed with the Director of OPM the risks 
related to federal employees accessing personnel e-mail 
accounts and the requirement to provide unions with the 
opportunity to bargain before restricting this access.
    On January 11, 2016, Congressman Palmer introduced H.R. 
4361, the Federal Information Systems Safeguards Act. The bill 
was referred to the Committee on Oversight and Government 
Reform. On March 1, 2016, the Committee on Oversight and 
Government Reform ordered the legislation favorably reported by 
a record vote of 21 to 16.

                           Section-by-Section


Section 1. Short title

    Designates the short title of the bill as the ``Federal 
Information Systems Safeguards Act of 2016.

Section 2. Agency discretion to secure information technology and 
        information systems

    Amends the Federal Information Security Management Act (44 
U.S.C. Sec. 3554) to clarify that the head of each agency has 
sole and exclusive authority to reduce or eliminate current or 
future security weaknesses and risks associated with its 
information technology or information systems in a timely 
manner.

Section 3. Rule of construction

    Provides that Section 2 may not be construed to modify any 
provision or amendment of the Cybersecurity Act of 2015 (Public 
Law 114-113).

                       Explanation of Amendments

    During Full Committee consideration of the bill, 
Congressman Palmer offered an amendment in the nature of a 
substitute to the bill, which included a provision to make 
clear that H.R. 4361 does not modify the Cybersecurity Act of 
2015 (Public Law 114-113). The amendment in the nature of a 
substitute was agreed to by voice vote.

                        Committee Consideration

    On March 1, 2016, the Committee met in open session and 
ordered reported favorably the bill, H.R. 4361, by a roll call 
vote, a quorum being present.

                            Roll Call Votes

    There was one recorded vote during consideration of H.R. 
4361:


              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill amends section 3554 of title 44, United States Code, 
to provide for enhanced security of Federal information 
systems. As such this bill does not relate to employment or 
access to public services and accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goal and objective of the bill is to amend section 3554 of 
title 44, United States Code, to provide for enhanced security 
of Federal information systems.

                    Duplication of Federal Programs

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting this bill does not 
direct the completion of any specific rule makings within the 
meaning of 5 U.S.C. 551.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
this bill. However, clause 3(d)(2)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for this bill from the Director of 
Congressional Budget Office:

                                                    March 24, 2016.
Hon. Jason Chaffetz,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4361, the Federal 
Information Systems Safeguards Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 4361--Federal Information Systems Safeguards Act of 2016

    The Federal Information Security Management Act (FISMA) 
provides a comprehensive framework to protect government 
information operations against threats. H.R. 4361 would clarify 
that, under FISMA, federal agencies have the sole and exclusive 
authority to take appropriate and timely actions to secure 
their information technology and information systems. CBO 
estimates that while implementing H.R. 4361 would clarify 
Congressional intent, it would have no significant effect on 
the federal budget because it would not expand the duties of 
executive agencies. Because enacting the bill could affect 
direct spending by agencies not funded through annual 
appropriations, pay-as-you-go procedures apply. CBO estimates, 
however, that any net change in spending by those agencies 
would be negligible. Enacting H.R. 4361 would not affect 
revenues.
    CBO estimates that enacting H.R. 4361 would not increase 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    H.R. 4361 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

         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 italic and existing law in which no change is 
proposed is shown in roman):

                      TITLE 44, UNITED STATES CODE




           *       *       *       *       *       *       *
CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

           *       *       *       *       *       *       *



SUBCHAPTER II--INFORMATION SECURITY

           *       *       *       *       *       *       *



Sec. 3554. Federal agency responsibilities

  (a) In General.--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, 
                disruption, 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 
                subchapter and related policies, procedures, 
                standards, and guidelines, including--
                          (i) information security standards 
                        promulgated under section 11331 of 
                        title 40;
                          (ii) operational directives developed 
                        by the Secretary under section 3553(b);
                          (iii) policies and procedures issued 
                        by the Director;
                          (iv) information security standards 
                        and guidelines for national security 
                        systems issued in accordance with law 
                        and as directed by the President; and
                          (v) emergency directives issued by 
                        the Secretary under section 3553(h); 
                        and
                  (C) ensuring that information security 
                management processes are integrated with agency 
                strategic, operational, and budgetary planning 
                processes;
          (2) ensure that senior agency officials provide 
        information security for the information and 
        information systems that support 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, disclosure, 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 classifications and related 
                requirements;
                  (C) implementing policies and procedures to 
                cost-effectively reduce risks to an acceptable 
                level; and
                  (D) periodically testing and evaluating 
                information security controls and techniques to 
                ensure that they are effectively implemented;
          (3) delegate to the agency Chief Information Officer 
        established 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 subchapter, 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 official's primary duty; 
                        and
                          (iv) head an office with the mission 
                        and resources to assist in ensuring 
                        agency compliance with this section;
                  (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 
                section 3553 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;
          (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 information security 
        program, including progress of remedial actions;
          (6) ensure that senior agency officials, including 
        chief information officers of component agencies or 
        equivalent officials, carry out responsibilities under 
        this subchapter as directed by the official delegated 
        authority under paragraph (3); and
          (7) ensure that all personnel are held accountable 
        for complying with the agency-wide information security 
        program implemented under subsection (b).
  (b) Agency Program.--Each agency shall develop, document, and 
implement an agency-wide information security program 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 information and information systems that 
        support the operations and assets of the agency, which 
        may include using automated tools consistent with 
        standards and guidelines promulgated under section 
        11331 of title 40;
          (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
                  (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 identified in the inventory 
                required under section 3505(c);
                  (B) may include testing relied on in an 
                evaluation under section 3555; and
                  (C) shall include using automated tools, 
                consistent with standards and guidelines 
                promulgated under section 11331 of title 40;
          (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, which--
                  (A) shall be consistent with the standards 
                and guidelines described in section 3556(b);
                  (B) may include using automated tools; and
                  (C) shall include--
                          (i) mitigating risks associated with 
                        such incidents before substantial 
                        damage is done;
                          (ii) notifying and consulting with 
                        the Federal information security 
                        incident center established in section 
                        3556; and
                          (iii) notifying and consulting with, 
                        as appropriate--
                                  (I) law enforcement agencies 
                                and relevant Offices of 
                                Inspector General and Offices 
                                of General Counsel;
                                  (II) an office designated by 
                                the President for any incident 
                                involving a national security 
                                system;
                                  (III) for a major incident, 
                                the committees of Congress 
                                described in subsection 
                                (c)(1)--
                                          (aa) not later than 7 
                                        days after the date on 
                                        which there is a 
                                        reasonable basis to 
                                        conclude that the major 
                                        incident has occurred; 
                                        and
                                          (bb) after the 
                                        initial notification 
                                        under item (aa), within 
                                        a reasonable period of 
                                        time after additional 
                                        information relating to 
                                        the incident is 
                                        discovered, including 
                                        the summary required 
                                        under subsection 
                                        (c)(1)(A)(i); and
                                  (IV) 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) Agency Reporting.--
          (1) Annual report.--
                  (A) In general.--Each agency shall submit to 
                the Director, the Secretary, the Committee on 
                Government Reform, the Committee on Homeland 
                Security, and the Committee on Science of the 
                House of Representatives, the Committee on 
                Homeland Security and Governmental Affairs and 
                the Committee on Commerce, Science, and 
                Transportation of the Senate, the appropriate 
                authorization and appropriations committees of 
                Congress, and the Comptroller General a report 
                on the adequacy and effectiveness of 
                information security policies, procedures, and 
                practices, including--
                          (i) a description of each major 
                        information security incident or 
                        related sets of incidents, including 
                        summaries of--
                                  (I) the threats and threat 
                                actors, vulnerabilities, and 
                                impacts relating to the 
                                incident;
                                  (II) the risk assessments 
                                conducted under section 
                                3554(a)(2)(A) of the affected 
                                information systems before the 
                                date on which the incident 
                                occurred;
                                  (III) the status of 
                                compliance of the affected 
                                information systems with 
                                applicable security 
                                requirements at the time of the 
                                incident; and
                                  (IV) the detection, response, 
                                and remediation actions;
                          (ii) the total number of information 
                        security incidents, including a 
                        description of incidents resulting in 
                        significant compromise of information 
                        security, system impact levels, types 
                        of incident, and locations of affected 
                        systems;
                          (iii) a description of each major 
                        information security incident that 
                        involved a breach of personally 
                        identifiable information, as defined by 
                        the Director, including--
                                  (I) the number of individuals 
                                whose information was affected 
                                by the major information 
                                security incident; and
                                  (II) a description of the 
                                information that was breached 
                                or exposed; and
                          (iv) any other information as the 
                        Director or the Secretary, in 
                        consultation with the Director, may 
                        require.
                  (B) Unclassified report.--
                          (i) In general.--Each report 
                        submitted under subparagraph (A) shall 
                        be in unclassified form, but may 
                        include a classified annex.
                          (ii) Access to information.--The head 
                        of an agency shall ensure that, to the 
                        greatest extent practicable, 
                        information is included in the 
                        unclassified version of the reports 
                        submitted by the agency under 
                        subparagraph (A).
          (2) Other plans and reports.--Each agency shall 
        address the adequacy and effectiveness of information 
        security policies, procedures, and practices in 
        management plans and reports.
  (d) Performance Plan.--(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 
subsection (b).
  (2) The description under paragraph (1) shall be based on the 
risk assessments required under subsection (b)(1).
  (e) Public Notice and Comment.--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.
  (f) Agency Discretion.--The head of each agency has the sole 
and exclusive authority, with respect to any information 
technology or information system under the control of such 
agency--
          (1) to take any action the agency determines to be 
        necessary to reduce or eliminate security weakness and 
        risk, including to protect the information contained in 
        the information technology or information system; and
          (2) to take any action the agency determines to be 
        necessary to reduce or eliminate future security 
        weakness and risk, including to protect the information 
        contained in the information technology or information 
        system.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    Democratic Members of the Committee strongly oppose H.R. 
4361. This bill would modify the Federal Information Management 
Security Act (FISMA) to give each agency head exclusive 
authority to take any action deemed necessary to reduce or 
eliminate security weakness and risk with respect to the 
agency's information technology (IT) systems.
    This bill is unnecessary, and the language of the bill is 
dangerously overbroad and subject to abuse. The Committee has 
not held a single hearing on this bill to explore the potential 
impact it might have on security, human rights, privacy, 
contracting, or transparency protections. The Committee should 
investigate the impact of this bill before rushing to enact it.
    The Majority asserts that this legislation ``clarifies 
federal agencies' existing authority under [FISMA] to secure 
their IT systems by clarifying that agencies' IT security 
functions are not subject to collective bargaining with federal 
employees.''\1\
---------------------------------------------------------------------------
    \1\House Committee on Oversight and Government Reform, Federal 
Information Systems Safeguard Act of 2016, 114th Cong. (2016).
---------------------------------------------------------------------------
    FISMA requires agency heads to provide ``information 
security protections commensurate with the risk and magnitude 
of the harm'' posed to agency information.\2\ The Majority has 
not demonstrated any gaps in this authority that would prevent 
an agency head from taking an action such as regulating 
employee use of personal email on work devices.
---------------------------------------------------------------------------
    \2\Pub.L. No. 113-283 (2014).
---------------------------------------------------------------------------
    It is also not clear that blocking personal email is 
necessary. The House Committee on Science, Space, and 
Technology held a subcommittee hearing entitled, 
``Cybersecurity: What the Federal Government Can Learn from the 
Private Sector.''\3\ During that hearing, the bill's sponsor, 
Rep. Gary Palmer, asked a panel of private sector cybersecurity 
experts whether it makes sense to prevent employees from using 
company or government IT systems to access personal websites 
and emails.
---------------------------------------------------------------------------
    \3\House Committee on Science, Space and Technology, Subcommittee 
on Oversight and Subcommittee on Research and Technology, Hearing on 
Cybersecurity: What the Federal Government Can Learn from the Private 
Sector (Jan. 8, 2016).
---------------------------------------------------------------------------
    In response, one expert stated, ``I think it's unrealistic, 
from a day-to-day perspective, from an innovation perspective, 
to assume people at work aren't accessing outside 
information.'' This expert continued: ``I just think if you 
want to be competitive, from a business perspective, against 
other companies you have to assume that your employees are 
going to be fully connected at all times.''\4\
---------------------------------------------------------------------------
    \4\Id.
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    This testimony illustrates why the Committee needs to 
investigate the impact of this bill before rushing to enact it.
    If the Majority wants to move forward with legislation to 
block access by agency employees to personal email, the 
Majority should draft a bill that simply does that. Instead, 
the Majority drafted a bill that gives agency heads 
extraordinary authority that is open to abuse.
    Democratic Members are concerned that under this bill an 
agency head could, in the name of security, take actions that 
conflict with transparency laws, the Privacy Act, fair 
contracting laws, or employment protections. We are also 
concerned that the bill would allow an agency head to bypass 
directives from the Department of Homeland Security (DHS) on 
cyber security. DHS has raised concerns that the bill could 
conflict with authorities over cybersecurity given to the 
Department and the Office of Management and Budget.
    We can protect federal computer systems without the 
unnecessarily broad language included in this bill. Committee 
Democrats are willing to work together towards developing 
language that is carefully crafted towards fulfilling that 
goal. This dangerously overbroad bill is not the answer.

                                        Elijah E. Cummings,
                                                    Ranking Member.

                                  [all]