Report text available as:

(PDF provides a complete and accurate display of this text.) Tip?


[Senate Report 115-153]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 217
_______________________________________________________________________

115th Congress  }                                        {  Report
                                 SENATE
 1st Session    }                                        {  115-153  
                                                                
_______________________________________________________________________

                                                      

MAKING AVAILABLE INFORMATION NOW TO STRENGTHEN TRUST AND RESILIENCE AND 
        ENHANCE ENTERPRISE TECHNOLOGY CYBERSECURITY ACT OF 2017

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 770

               [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               September 11, 2017.--Ordered to be printed
               
                                 ________
                                 
                                 
                    U.S. GOVERNMENT PUBLISHING OFFICE
                
69-019                       WASHINGTON: 2017                              
                                 
                                 
                                 
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
       
                     one hundred fifteenth congress
                     
                             first session

                   JOHN THUNE, South Dakota, Chairman
 ROGER F. WICKER, Mississippi         BILL NELSON, Florida
 ROY BLUNT, Missouri                  MARIA CANTWELL, Washington
 TED CRUZ, Texas                      AMY KLOBUCHAR, Minnesota
 DEB FISCHER, Nebraska                RICHARD BLUMENTHAL, Connecticut
 JERRY MORAN, Kansas                  BRIAN SCHATZ, Hawaii
 DAN SULLIVAN, Alaska                 EDWARD J. MARKEY, Massachusetts
 DEAN HELLER, Nevada                  CORY A. BOOKER, New Jersey
 JAMES M. INHOFE, Oklahoma            TOM UDALL, New Mexico
 MIKE LEE, Utah                       GARY C. PETERS, Michigan
 RON JOHNSON, Wisconsin               TAMMY BALDWIN, Wisconsin
 SHELLEY MOORE CAPITO, West           TAMMY DUCKWORTH, Illinois
    Virginia
 CORY GARDNER, Colorado               MARGARETWOODHASSAN,NewHampshire
 TODD C. YOUNG, Indiana               CATHERINE CORTEZ MASTO, Nevada
                       Nick Rossi, Staff Director
                 Adrian Arnakis, Deputy Staff Director
                    Jason Van Beek, General Counsel
                 Kim Lipsky, Democratic Staff Director
           Christopher Day, Democratic Deputy Staff Director


                                                       Calendar No. 217
                                                       
115th Congress }                                        {  Report
                                 SENATE
 1st Session   }                                        {  115-153

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

 
MAKING AVAILABLE INFORMATION NOW TO STRENGTHEN TRUST AND RESILIENCE AND 
        ENHANCE ENTERPRISE TECHNOLOGY CYBERSECURITY ACT OF 2017

                                _______
                                

               September 11, 2017.--Ordered to be printed

                                _______
                                

Mr. Thune, from the Committee on Commerce, Science, and Transportation, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 770]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 770) to require the Director of 
the National Institute of Standards and Technology to 
disseminate resources to help reduce small business 
cybersecurity risks, and for other purposes, having considered 
the same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

    S. 770, the Making Available Information Now to Strengthen 
Trust and Resilience and Enhance Enterprise Technology 
Cybersecurity Act of 2017 or MAIN STREET Cybersecurity Act of 
2017, will improve cybersecurity resources for small 
businesses. The Act would require the Director of the National 
Institute of Standards and Technology (NIST Director), under 
the Department of Commerce, to consider small business concerns 
and disseminate resources to help small businesses reduce cyber 
risks by using voluntary risk management security measures as 
articulated in the public-private initiative, the Framework for 
Improving Critical Infrastructure Cybersecurity (Cybersecurity 
Framework).

                          Background and Needs

    According to the Small Business Administration (SBA), small 
businesses make up more than half of the jobs in the United 
States,\1\ and they also are a major target for cyber attacks. 
In the last 5 years, security vendor Symantec Corporation has 
observed a steady increase in attacks targeting businesses with 
fewer than 250 employees, with 43 percent of all attacks in 
2015 targeted at small businesses.\2\
    On December 18, 2014, President Obama signed into law the 
Cybersecurity Enhancement Act of 2014 (Act of 2014) (15 U.S.C. 
7421 et seq.), which then-Committee Chairman Rockefeller and 
Ranking Member Thune co-authored. That Act amended the NIST Act 
(15 U.S.C. 271 et seq.) to authorize the NIST Director to work 
in collaboration with industry on a set of voluntary, 
consensus-based, and industry-led standards and procedures to 
reduce cyber risks to critical infrastructure, codifying the 
process that develops the Cybersecurity Framework.\3\ The 
Cybersecurity Framework is flexible and scalable so that all 
companies may use it at all organizational levels. 
Nevertheless, some small companies may need additional 
resources to make better use of the expansive framework. In 
addition, several Federal agencies, including the Federal Trade 
Commission, Department of Homeland Security, and SBA, have 
issued cybersecurity tips for small businesses that are not 
coordinated with the Cybersecurity Framework, though they often 
lay out similar principles.
---------------------------------------------------------------------------
    \1\Small Business Administration, ``Small Business Trends,'' at 
https://www.sba.gov/managing-business/running-business/energy-
efficiency/sustainable-business-practices/small-business-trends.
    \2\Symantec, ``Internet Security Threat Report,'' Volume 21, April 
2016, at https://www.symantec.com/content/dam/symantec/docs/reports/
istr-21-2016-en.pdf.
    \3\National Institute for Standards and Technology, Framework for 
Improving Critical Infrastructure Cybersecurity, February 12, 2014, at 
https://www.nist.gov/sites/default/files/documents/cyberframework/
cybersecurity-framework-021214.pdf.
---------------------------------------------------------------------------

                         Summary of Provisions

    S. 770, as amended in Committee, would incorporate NIST 
consideration of small business concerns into the existing 
voluntary industry-led process for the Cybersecurity Framework 
authorized in the Act of 2014. The bill also would direct NIST, 
in consultation with other relevant agencies, such as the 
agencies named above, to develop concise, voluntary 
cybersecurity resources for small businesses in carrying out 
the Cybersecurity Framework. In addition, the bill would direct 
other Federal agencies to harmonize, to the extent possible, 
future cybersecurity resources for small businesses with the 
resources NIST provides.

                          Legislative History

    On March 29, 2017, Senator Schatz introduced S. 770 with 
Senators Risch, Thune, Cantwell, Nelson, Gardner, and Cortez 
Masto as co-sponsors. On April 5, 2017, in an open Executive 
Session, the Committee considered the bill as modified by a 
first degree amendment offered by Senator Schatz to improve the 
bill. The amendment made minor changes to clarify that the 
resources should apply to a wide range of small businesses and 
include elements to promote awareness of a workplace 
cybersecurity culture and third party stakeholder 
relationships. The Committee, by voice vote, unanimously 
ordered S. 770 to be reported favorably with an amendment (in 
the nature of a substitute).

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 770--MAIN STREET Cybersecurity Act of 2017

    S. 770 would direct the National Institute of Standards and 
Technology (NIST) to provide resources to small businesses to 
help them reduce their cybersecurity risks. Under the bill, 
NIST would be required to provide and update tools, 
methodologies, guidelines, and other resources to small 
business to use on a voluntary basis. Based on an analysis of 
information from NIST, CBO estimates that implementing S. 770 
would cost $6 million over the 2018-2022 period, including $2 
million in 2018 for NIST to consult with several federal 
agencies and develop such resources and an additional $4 
million over the 2019-2022 period to update those resources; 
such spending would be subject to the availability of 
appropriated funds.
    Enacting S. 770 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply. CBO 
estimates that enacting S. 770 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2028.
    S. 770 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 Stephen Rabent. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    S. 770, as reported, would develop consistent resources 
that are fully voluntary for a small business to use. As such, 
the bill would not create any new programs or impose any new 
regulatory requirements, and therefore would not subject any 
individuals or businesses to new regulations.

                            economic impact

    S. 770 is not expected to have an adverse impact on the 
Nation's economy.

                                privacy

    S. 770 is not expected to have an adverse impact on the 
personal privacy of individuals.

                               paperwork

    S. 770 would not increase paperwork requirements for 
private individuals or businesses. S. 770 would require the 
NIST Director to develop and disseminate resources for small 
businesses to reduce cybersecurity risks.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


Section 1. Short title

    This section would establish the bill's short title as the 
``Making Available Information Now to Strengthen Trust and 
Resilience and Enhance Enterprise Technology Cybersecurity Act 
of 2017'' or the ``MAIN STREET Cybersecurity Act of 2017.''

Section 2. Findings

    This section would present a number of congressional 
findings. It would find that small businesses are critical to 
the U.S. economy, accounting for 54 percent of all domestic 
sales and 55 percent of domestic jobs. This section also would 
find that small and midsized businesses are major targets for 
cyberattacks. Additionally, this section would note that the 
industry-led process authorized by the Act of 2014 continues to 
play a key role in improving the cyber resilience of the United 
States. Finally, the section would find that there is a need to 
develop simplified resources for small businesses that are 
consistent with the Cybersecurity Framework in order to 
increase its use.

Section 3. Improving cybersecurity of small businesses

    This section would define a number of terms used in the 
Act. It would amend the NIST Act to ensure the NIST Director 
considers small business concerns in carrying out the public-
private partnership to develop the Cybersecurity Framework 
authorized in the Act of 2014.
    This section would further require that not later than 1 
year after the date of enactment of this Act, the NIST 
Director, in consultation with the heads of other Federal 
agencies, as the NIST Director considers appropriate, provide 
clear and concise voluntary resources, such as tips, tools, 
guidelines, and other ways of providing information, to small 
businesses to reduce cybersecurity risks. The section would 
require that NIST ensures that the resources are generally 
applicable and usable by a wide range of small businesses. In 
addition, it would require that these resources vary relative 
to the nature and size of the small business concern and the 
sensitivity of the data collected or stored.
    It would further require the resources be technology-
neutral, based on international standards to the extent 
possible, and consistent with the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3701 et seq.), which seeks to 
foster government-industry cooperation. The resources also 
would include elements that promote awareness of basic 
controls, a workplace cybersecurity culture, and third party 
stakeholder relationships. The section also would require NIST 
to ensure the resources are consistent with the efforts of the 
National Cybersecurity Awareness and Education Program, 
otherwise referred to as the NIST National Initiative for 
Cybersecurity Education, authorized in the Act of 2014. This 
section also would require NIST to consider any methods 
included in the Small Business Development Center Cyber 
Strategy established in the National Defense Authorization Act 
for Fiscal Year 2017 (Pub. L. 114-328, 130 Stat. 2000).
    NIST and such heads of other Federal agencies as the NIST 
Director considers appropriate would be required to make 
information on the resources prominently available online in a 
consistent, clear, and concise manner. Federal agencies 
publishing additional resources to help small businesses reduce 
cybersecurity risk after the date of enactment also would be 
required, to the extent practicable, to make these resources 
consistent with the resources that NIST provides.
    The Committee finds that the public-private partnership to 
develop the Cybersecurity Framework has been widely lauded. 
Industry and government have successfully collaborated on 
voluntarily addressing and managing cybersecurity risks without 
placing regulatory requirements on businesses. NIST also 
recognizes in the Cybersecurity Framework that organizations 
may have unique risks and the use of the framework will vary. 
As such, the Committee expects NIST to continue its 
collaboration with industry in carrying out this Act.
    Further, the resources developed under this Act should be 
viewed as voluntary and, thus, would not place additional 
regulatory requirements on businesses. These resources also are 
intended to be technology-neutral, consistent with the 
direction for the process to develop the Cybersecurity 
Framework. The Committee finds that the principle of tech-
neutrality ensures that stakeholders take into account rapid 
advances and changes in technology. The Committee recognizes 
that the U.S. technology sector continues to innovate and 
produce emerging cybersecurity technologies and processes for 
the marketplace that benefit consumers, small businesses, and 
the Federal Government. The Committee encourages NIST to 
consider, in its dissemination of resources, a diverse array of 
cybersecurity technologies and processes, including the 
following: multi-factor authentication; data loss prevention; 
network segmentation; cloud services; data encryption; least 
privileged architecture; anonymization; software patching and 
maintenance; and other cybersecurity measures.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

           NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT


                            [31 Stat. 1449]

SEC. 272. ESTABLISHMENT, FUNCTIONS, AND ACTIVITIES.

[15 U.S.C. 272]

           *       *       *       *       *       *       *


  (e) Cyber Risks.--
          (1) In general.--In carrying out the activities under 
        subsection (c)(15), the Director--
                  (A) shall--
                          (i) coordinate closely and regularly 
                        with relevant private sector personnel 
                        and entities, critical infrastructure 
                        owners and operators, and other 
                        relevant industry organizations, 
                        including Sector Coordinating Councils 
                        and Information Sharing and Analysis 
                        Centers, and incorporate industry 
                        expertise;
                          (ii) consult with the heads of 
                        agencies with national security 
                        responsibilities, sector-specific 
                        agencies and other appropriate 
                        agencies, State and local governments, 
                        the governments of other nations, and 
                        international organizations;
                          (iii) identify a prioritized, 
                        flexible, repeatable, performance-
                        based, and cost-effective approach, 
                        including information security measures 
                        and controls, that may be voluntarily 
                        adopted by owners and operators of 
                        critical infrastructure to help them 
                        identify, assess, and manage cyber 
                        risks;
                          (iv) include methodologies--
                                  (I) to identify and mitigate 
                                impacts of the cybersecurity 
                                measures or controls on 
                                business confidentiality; and
                                  (II) to protect individual 
                                privacy and civil liberties;
                          (v) incorporate voluntary consensus 
                        standards and industry best practices;
                          (vi) align with voluntary 
                        international standards to the fullest 
                        extent possible;
                          (vii) prevent duplication of 
                        regulatory processes and prevent 
                        conflict with or superseding of 
                        regulatory requirements, mandatory 
                        standards, and related processes; [and]
                          (viii) consider small business 
                        concerns (as defined in section 3 of 
                        the Small Business Act (15 U.S.C. 
                        632)); and
                          [(viii)](ix) include such other 
                        similar and consistent elements as the 
                        Director considers necessary; and
                  (B) shall not prescribe or otherwise 
                require--
                          (i) the use of specific solutions;
                          (ii) the use of specific information 
                        or communications technology products 
                        or services; or
                          (iii) that information or 
                        communications technology products or 
                        services be designed, developed, or 
                        manufactured in a particular manner.
          (2) Limitation.--Information shared with or provided 
        to the Institute for the purpose of the activities 
        described under subsection (c)(15) shall not be used by 
        any Federal, State, tribal, or local department or 
        agency to regulate the activity of any entity. Nothing 
        in this paragraph shall be construed to modify any 
        regulatory requirement to report or submit information 
        to a Federal, State, tribal, or local department or 
        agency.
          (3) Definitions.--In this subsection:
                  (A) Critical infrastructure.--The term 
                ``critical infrastructure'' has the meaning 
                given the term in section 1016(e) of the USA 
                PATRIOT Act of 2001 (42 U.S.C. 5195c(e)).
                  (B) Sector-specific agency.--The term 
                ``sector-specific agency'' means the Federal 
                department or agency responsible for providing 
                institutional knowledge and specialized 
                expertise as well as leading, facilitating, or 
                supporting the security and resilience programs 
                and associated activities of its designated 
                critical infrastructure sector in the all-
                hazards environment.