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116th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       116-391

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



 
FEDERAL RISK AND AUTHORIZATION MANAGEMENT PROGRAM AUTHORIZATION ACT OF 
                                  2019

                                _______
                                

February 5, 2020.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mrs. Carolyn B. Maloney of New York, , from the Committee on Oversight 
                  and Reform, submitted the following

                              R E P O R T

                        [To accompany H.R. 3941]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Reform, to whom was referred 
the bill (H.R. 3941) to enhance the innovation, security, and 
availability of cloud computing services used in the Federal 
Government by establishing the Federal Risk and Authorization 
Management Program within the General Services Administration 
and by establishing a risk management, authorization, and 
continuous monitoring process to enable the Federal Government 
to leverage cloud computing services using a risk-based 
approach consistent with the Federal Information Security 
Modernization Act of 2014 and cloud-based operations, 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
Summary and Purpose of Legislation...............................     8
Background and Need for Legislation..............................     8
Section-by-Section Analysis......................................    10
Legislative History..............................................    11
Committee Consideration..........................................    11
Roll Call Votes..................................................    11
Explanation of Amendments........................................    11
List of Related Committee Hearings...............................    11
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    12
Statement of General Performance Goals and Objectives............    12
Application of Law to the Legislative Branch.....................    12
Duplication of Federal Programs..................................    12
Disclosure of Directed Rule Makings..............................    12
Federal Advisory Committee Act Statement.........................    12
Unfunded Mandates Reform Act Statement...........................    12
Earmark Identification...........................................    12
Committee Cost Estimate..........................................    13
New Budget Authority and Congressional Budget Office Cost 
  Estimate.......................................................    13
Changes in Existing Law Made by the Bill, as Reported............    14

    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 Risk and Authorization 
Management Program Authorization Act of 2019'' or the ``FedRAMP 
Authorization Act''.

SEC. 2. CODIFICATION OF THE FEDRAMP PROGRAM.

  (a) Amendment.--Chapter 36 of title 44, United States Code, is 
amended by adding at the end the following new sections:

``Sec. 3607. Federal Risk and Authorization Management Program

  ``(a) Establishment.--There is established within the General 
Services Administration the Federal Risk and Authorization Management 
Program. The Administrator of General Services, in accordance with the 
guidelines established pursuant to section 3612, shall establish a 
governmentwide program that provides the authoritative standardized 
approach to security assessment and authorization for cloud computing 
products and services that process unclassified information used by 
agencies.
  ``(b) Components of Fedramp.--The Joint Authorization Board and the 
FedRAMP Program Management Office are established as components of 
FedRAMP.

``Sec. 3608. FedRAMP Program Management Office

  ``(a) GSA Duties.--
          ``(1) Roles and responsibilities.--The Administrator of 
        General Services shall--
                  ``(A) determine the categories and characteristics of 
                cloud computing information technology goods or 
                services that are within the jurisdiction of FedRAMP 
                and that require FedRAMP authorization from the Joint 
                Authorization Board or the FedRAMP Program Management 
                Office;
                  ``(B) develop, coordinate, and implement a process 
                for the FedRAMP Program Management Office, the Joint 
                Authorization Board, and agencies to review security 
                assessments of cloud computing services pursuant to 
                subsections (b) and (c) of section 3611, and 
                appropriate oversight of continuous monitoring of cloud 
                computing services; and
                  ``(C) ensure the continuous improvement of FedRAMP.
          ``(2) Implementation.--The Administrator shall oversee the 
        implementation of FedRAMP, including--
                  ``(A) appointing a Program Director to oversee the 
                FedRAMP Program Management Office;
                  ``(B) hiring professional staff as may be necessary 
                for the effective operation of the FedRAMP Program 
                Management Office, and such other activities as are 
                essential to properly perform critical functions;
                  ``(C) entering into interagency agreements to detail 
                personnel on a reimbursable or non-reimbursable basis 
                to assist the FedRAMP Program Management Office and the 
                Joint Authorization Board in discharging the 
                responsibilities of the Office under this section; and
                  ``(D) such other actions as the Administrator may 
                determine necessary to carry out this section.
  ``(b) Duties.--The FedRAMP Program Management Office shall have the 
following duties:
          ``(1) Provide guidance to independent assessment 
        organizations, validate the independent assessments, and apply 
        the requirements and guidelines adopted in section 3609(c)(5).
          ``(2) Oversee and issue guidelines regarding the 
        qualifications, roles, and responsibilities of independent 
        assessment organizations.
          ``(3) Develop templates and other materials to support the 
        Joint Authorization Board and agencies in the authorization of 
        cloud computing services to increase the speed, effectiveness, 
        and transparency of the authorization process, consistent with 
        standards defined by the National Institute of Standards and 
        Technology.
          ``(4) Establish and maintain a public comment process for 
        proposed guidance before the issuance of such guidance by 
        FedRAMP.
          ``(5) Issue FedRAMP authorization for any authorizations to 
        operate issued by an agency that meets the requirements and 
        guidelines described in paragraph (1).
          ``(6) Establish frameworks for agencies to use authorization 
        packages processed by the FedRAMP Program Management Office and 
        Joint Authorization Board.
          ``(7) Coordinate with the Secretary of Defense and the 
        Secretary of Homeland Security to establish a framework for 
        continuous monitoring and reporting required of agencies 
        pursuant to section 3553.
          ``(8) Establish a centralized and secure repository to 
        collect and share necessary data, including security 
        authorization packages, from the Joint Authorization Board and 
        agencies to enable better sharing and reuse to such packages 
        across agencies.
  ``(c) Evaluation of Automation Procedures.--
          ``(1) In general.--The FedRAMP Program Management Office 
        shall assess and evaluate available automation capabilities and 
        procedures to improve the efficiency and effectiveness of the 
        issuance of provisional authorizations to operate issued by the 
        Joint Authorization Board and FedRAMP authorizations, including 
        continuous monitoring of cloud environments and among cloud 
        environments.
          ``(2) Means for automation.--Not later than 1 year after the 
        date of the enactment of this section and updated annually 
        thereafter, the FedRAMP Program Management Office shall 
        establish a means for the automation of security assessments 
        and reviews.
  ``(d) Metrics for Authorization.--The FedRAMP Program Management 
Office shall establish annual metrics regarding the time and quality of 
the assessments necessary for completion of a FedRAMP authorization 
process in a manner that can be consistently tracked over time in 
conjunction with the periodic testing and evaluation process pursuant 
to section 3554 in a manner that minimizes the agency reporting burden.

``Sec. 3609. Joint Authorization Board

  ``(a) Establishment.--There is established the Joint Authorization 
Board which shall consist of cloud computing experts, appointed by the 
Director in consultation with the Administrator, from each of the 
following:
          ``(1) The Department of Defense.
          ``(2) The Department of Homeland Security.
          ``(3) The General Services Administration.
          ``(4) Such other agencies as determined by the Director, in 
        consultation with the Administrator.
  ``(b) Issuance of Provisional Authorizations to Operate.--The Joint 
Authorization Board shall conduct security assessments of cloud 
computing services and issue provisional authorizations to operate to 
cloud service providers that meet FedRAMP security guidelines set forth 
in section 3608(b)(1).
  ``(c) Duties.--The Joint Authorization Board shall--
          ``(1) develop and make publicly available on a website, 
        determined by the Administrator, criteria for prioritizing and 
        selecting cloud computing services to be assessed by the Joint 
        Authorization Board;
          ``(2) provide regular updates on the status of any cloud 
        computing service during the assessment and authorization 
        process of the Joint Authorization Board;
          ``(3) review and validate cloud computing services and 
        independent assessment organization security packages or any 
        documentation determined to be necessary by the Joint 
        Authorization Board to evaluate the system security of a cloud 
        computing service;
          ``(4) in consultation with the FedRAMP Program Management 
        Office, serve as a resource for best practices to accelerate 
        the FedRAMP process;
          ``(5) establish requirements and guidelines for security 
        assessments of cloud computing services, consistent with 
        standards defined by the National Institute of Standards and 
        Technology, to be used by the Joint Authorization Board and 
        agencies;
          ``(6) perform such other roles and responsibilities as the 
        Administrator may assign, in consultation with the FedRAMP 
        Program Management Office and members of the Joint 
        Authorization Board; and
          ``(7) establish metrics and goals for reviews and activities 
        associated with issuing provisional authorizations to operate 
        and provide to the FedRAMP Program Management Office.
  ``(d) Determinations of Demand for Cloud Computing Services.--The 
Joint Authorization Board shall consult with the Chief Information 
Officers Council established in section 3603 to establish a process for 
prioritizing and accepting the cloud computing services to be granted a 
provisional authorization to operate through the Joint Authorization 
Board, which shall be made available on a public website.
  ``(e) Detail of Personnel.--To assist the Joint Authorization Board 
in discharging the responsibilities under this section, personnel of 
agencies may be detailed to the Joint Authorization Board for the 
performance of duties described under subsection (c).

``Sec. 3610. Independent assessment organizations

  ``(a) Requirements for Accreditation.--The Joint Authorization Board 
shall determine the requirements for certification of independent 
assessment organizations pursuant to section 3609. Such requirements 
may include developing or requiring certification programs for 
individuals employed by the independent assessment organizations who 
lead FedRAMP assessment teams.
  ``(b) Assessment.--Accredited independent assessment organizations 
may assess, validate, and attest to the quality and compliance of 
security assessment materials provided by cloud service providers.

``Sec. 3611. Roles and responsibilities of agencies

  ``(a) In General.--In implementing the requirements of FedRAMP, the 
head of each agency shall, consistent with guidance issued by the 
Director pursuant to section 3612--
          ``(1) create policies to ensure cloud computing services used 
        by the agency meet FedRAMP security requirements and other 
        risk-based performance requirements as defined by the Director;
          ``(2) issue agency-specific authorizations to operate for 
        cloud computing services in compliance with section 3554;
          ``(3) confirm whether there is a provisional authorization to 
        operate in the cloud security repository established under 
        section 3608(b)(10) issued by the Joint Authorization Board or 
        a FedRAMP authorization issued by the FedRAMP Program 
        Management Office before beginning an agency authorization for 
        a cloud computing product or service;
          ``(4) to the extent practicable, for any cloud computing 
        product or service the agency seeks to authorize that has 
        received either a provisional authorization to operate by the 
        Joint Authorization Board or a FedRAMP authorization by the 
        FedRAMP Program Management Office, use the existing assessments 
        of security controls and materials within the authorization 
        package; and
          ``(5) provide data and information required to the Director 
        pursuant to section 3612 to determine how agencies are meeting 
        metrics as defined by the FedRAMP Program Management Office.
  ``(b) Submission of Policies Required.--Not later than 6 months after 
the date of the enactment of this section, the head of each agency 
shall submit to the Director the policies created pursuant to 
subsection (a)(1) for review and approval.
  ``(c) Submission of Authorizations to Operate Required.--Upon 
issuance of an authorization to operate or a provisional authorization 
to operate issued by an agency, the head of each agency shall provide a 
copy of the authorization to operate letter and any supplementary 
information required pursuant to section 3608(b) to the FedRAMP Program 
Management Office.
  ``(d) Presumption of Adequacy.--
          ``(1) In general.--The assessment of security controls and 
        materials within the authorization package for provisional 
        authorizations to operate issued by the Joint Authorization 
        Board and agency authorizations to operate that receive FedRAMP 
        authorization from the FedRAMP Program Management Office shall 
        be presumed adequate for use in agency authorizations of cloud 
        computing products and services.
          ``(2) Information security requirements.--The presumption 
        under paragraph (1) does not modify or alter the responsibility 
        of any agency to ensure compliance with subchapter II of 
        chapter 35 for any cloud computing products or services used by 
        the agency.

``Sec. 3612. Roles and responsibilities of the Office of Management and 
                    Budget

  ``The Director shall have the following duties:
          ``(1) Issue guidance to ensure that an agency does not 
        operate a Federal Government cloud computing service using 
        Government data without an authorization to operate issued by 
        the agency that meets the requirements of subchapter II of 
        chapter 35 and FedRAMP.
          ``(2) Ensure agencies are in compliance with any guidance or 
        other requirements issued related to FedRAMP.
          ``(3) Review, analyze, and update guidance on the adoption, 
        security, and use of cloud computing services used by agencies.
          ``(4) Ensure the Joint Authorization Board is in compliance 
        with section 3609(c).
          ``(5) Adjudicate disagreements between the Joint 
        Authorization Board and cloud service providers seeking a 
        provisional authorization to operate through the Joint 
        Authorization Board.
          ``(6) Promulgate regulations on the role of FedRAMP 
        authorization in agency acquisition of cloud computing products 
        and services that process unclassified information.

``Sec. 3613. Authorization of appropriations for FEDRAMP

  ``There is authorized to be appropriated $20,000,000 each year for 
the FedRAMP Program Management Office and the Joint Authorization 
Board.

``Sec. 3614. Reports to Congress

  ``Not later than 12 months after the date of the enactment of this 
section, and annually thereafter, the Director shall submit to the 
Committee on Oversight and Reform of the House of Representatives and 
the Committee on Homeland Security and Governmental Affairs of the 
Senate a report that includes the following:
          ``(1) The status, efficiency, and effectiveness of FedRAMP 
        Program Management Office and agencies during the preceding 
        year in supporting the speed, effectiveness, sharing, reuse, 
        and security of authorizations to operate for cloud computing 
        products and services, including progress towards meeting the 
        metrics adopted by the FedRAMP Program Management Office 
        pursuant to section 3608(d) and the Joint Authorization Board 
        pursuant to section 3609(c)(5).
          ``(2) Data on agency use of provisional authorizations to 
        operate issued by the Joint Authorization Board and agency 
        sponsored authorizations that receive FedRAMP authorization by 
        the FedRAMP Program Management Office.
          ``(3) The length of time for the Joint Authorization Board to 
        review applications for and issue provisional authorizations to 
        operate.
          ``(4) The length of time for the FedRAMP Program Management 
        Office to review agency applications for and issue FedRAMP 
        authorization.
          ``(5) The number of provisional authorizations to operate 
        issued by the Joint Authorization Board and FedRAMP 
        authorizations issued by the FedRAMP Program Management Office 
        for the previous year.
          ``(6) A review of progress made during the preceding year in 
        advancing automation techniques to securely automate FedRAMP 
        processes and to accelerate reporting as described in this 
        section.
          ``(7) The number and characteristics of authorized cloud 
        computing services in use at each agency consistent with 
        guidance provided by the Director in section 3612.

``Sec. 3615. Federal Secure Cloud Advisory Committee

  ``(a) Establishment, Purposes, and Duties.--
          ``(1) Establishment.--There is established a Federal Secure 
        Cloud Advisory Committee (referred to in this section as the 
        `Committee') to ensure effective and ongoing coordination of 
        agency adoption, use, authorization, monitoring, acquisition, 
        and security of cloud computing products and services to enable 
        agency mission and administrative priorities.
          ``(2) Purposes.--The purposes of the Committee are the 
        following:
                  ``(A) To examine the operations of FedRAMP and 
                determine ways that authorization processes can 
                continuously be improved, including the following:
                          ``(i) Measures to increase agency re-use of 
                        provisional authorizations to operate issued by 
                        the Joint Authorization Board.
                          ``(ii) Proposed actions that can be adopted 
                        to reduce the cost of provisional 
                        authorizations to operate and FedRAMP 
                        authorizations for cloud service providers.
                          ``(iii) Measures to increase the number of 
                        provisional authorizations to operate or 
                        FedRAMP authorizations for cloud computing 
                        services offered by small businesses (as 
                        defined by section 3(a) of the Small Business 
                        Act (15 U.S.C. 632(a)).
                  ``(B) Collect information and feedback on agency 
                compliance with and implementation of FedRAMP 
                requirements.
                  ``(C) Serve as a forum that facilitates communication 
                and collaboration among the FedRAMP stakeholder 
                community.
          ``(3) Duties.--The duties of the Committee are, at a minimum, 
        the following:
                  ``(A) Provide advice and recommendations to the 
                Administrator, the Joint Authorization Board, and to 
                agencies on technical, financial, programmatic, and 
                operational matters regarding secure adoption of cloud 
                computing services.
                  ``(B) Submit reports as required.
  ``(b) Members.--
          ``(1) Composition.--The Committee shall be comprised of not 
        more than 15 members who are qualified representatives from the 
        public and private sectors, appointed by the Administrator, in 
        consultation with the Administrator of the Office of Electronic 
        Government, as follows:
                  ``(A) The Administrator or the Administrator's 
                designee, who shall be the Chair of the Committee.
                  ``(B) At least 1 representative each from the 
                Cybersecurity and Infrastructure Security Agency and 
                the National Institute of Standards and Technology.
                  ``(C) At least 2 officials who serve as the Chief 
                Information Security Officer within an agency, who 
                shall be required to maintain such a position 
                throughout the duration of their service on the 
                Committee.
                  ``(D) At least 1 official serving as Chief 
                Procurement Officer (or equivalent) in an agency, who 
                shall be required to maintain such a position 
                throughout the duration of their service on the 
                Committee.
                  ``(E) At least 1 individual representing an 
                independent assessment organization.
                  ``(F) No fewer than 5 representatives from unique 
                businesses that primarily provide cloud computing 
                services or products, including at least 2 
                representatives from a small business (as defined by 
                section 3(a) of the Small Business Act (15 U.S.C. 
                632(a))).
                  ``(G) At least 2 other government representatives as 
                the Administrator determines to be necessary to provide 
                sufficient balance, insights, or expertise to the 
                Committee.
          ``(2) Deadline for appointment.--Each member of the Committee 
        shall be appointed not later than 30 days after the date of the 
        enactment of this Act.
          ``(3) Period of appointment; vacancies.--
                  ``(A) In general.--Each non-Federal member of the 
                Committee shall be appointed for a term of 3 years, 
                except that the initial terms for members may be 
                staggered 1, 2, or 3 year terms to establish a rotation 
                in which one-third of the members are selected each 
                year. Any such member may be appointed for not more 
                than 2 consecutive terms.
                  ``(B) Vacancies.--Any vacancy in the Committee shall 
                not affect its powers, but shall be filled in the same 
                manner in which the original appointment was made. Any 
                member appointed to fill a vacancy occurring before the 
                expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of that term. A member may serve after 
                the expiration of that member's term until a successor 
                has taken office.
  ``(c) Meetings and Rules of Procedures.--
          ``(1) Meetings.--The Committee shall hold not fewer than 3 
        meetings in a calendar year, at such time and place as 
        determined by the Chair.
          ``(2) Initial meeting.--Not later than 120 days after the 
        date of the enactment of this section, the Committee shall meet 
        and begin the operations of the Committee.
          ``(3) Rules of procedure.--The Committee may establish rules 
        for the conduct of the business of the Committee, if such rules 
        are not inconsistent with this section or other applicable law.
  ``(d) Employee Status.--
          ``(1) In general.--A member of the Committee (other than a 
        member who is appointed to the Committee in connection with 
        another Federal appointment) shall not be considered an 
        employee of the Federal Government by reason of any service as 
        such a member, except for the purposes of section 5703 of title 
        5, relating to travel expenses.
          ``(2) Pay not permitted.--A member of the Committee covered 
        by paragraph (1) may not receive pay by reason of service on 
        the panel.
  ``(e) Applicability to the Federal Advisory Committee Act.--
Notwithstanding any other provision of law, the Federal Advisory 
Committee Act (5 U.S.C. App.) shall apply to the Committee, except that 
section 14 of such Act shall not apply.
  ``(f) Hearings and Evidence.--The Committee, or on the authority of 
the Committee, any subcommittee, may, for the purposes of carrying out 
this section, hold hearings, sit and act at such times and places, take 
testimony, receive evidence, and administer oaths.
  ``(g) Contracting.--The Committee, may, to such extent and in such 
amounts as are provided in appropriation Acts, enter into contracts to 
enable the Committee to discharge its duties under this section.
  ``(h) Information From Federal Agencies.--
          ``(1) In general.--The Committee is authorized to secure 
        directly from any executive department, bureau, agency, board, 
        commission, office, independent establishment, or 
        instrumentality of the Government, information, suggestions, 
        estimates, and statistics for the purposes of the Committee. 
        Each department, bureau, agency, board, commission, office, 
        independent establishment, or instrumentality shall, to the 
        extent authorized by law, furnish such information, 
        suggestions, estimates, and statistics directly to the 
        Committee, upon request made by the Chair, the Chair of any 
        subcommittee created by a majority of the Committee, or any 
        member designated by a majority of the Committee.
          ``(2) Receipt, handling, storage, and dissemination.--
        Information may only be received, handled, stored, and 
        disseminated by members of the Committee and its staff 
        consistent with all applicable statutes, regulations, and 
        Executive orders.
  ``(i) Assistance From Agencies.--
          ``(1) Other departments and agencies.--In addition to the 
        administration of the Committee by the General Services 
        Administration, other agencies may provide to the Committee 
        such services, funds, facilities, staff, and other support 
        services as the head of the agency determines to be advisable 
        and as is authorized by law.
          ``(2) Detail of employees.--Any Federal Government employee 
        may be detailed to the Committee without reimbursement from the 
        Committee, and such detailee shall retain the rights, status, 
        and privileges of his or her regular employment without 
        interruption.
  ``(j) Postal Services.--The Committee may use the United States mails 
in the same manner and under the same conditions as agencies.
  ``(k) Expert and Consultant Services.--The Committee is authorized to 
procure the services of experts and consultants in accordance with 
section 3109 of title 5, but at rates not to exceed the daily rate paid 
a person occupying a position at Level IV of the Executive Schedule 
under section 5315 of title 5.
  ``(l) Reports.--
          ``(1) Interim reports.--The Committee may submit to the 
        Administrator and Congress interim reports containing such 
        findings, conclusions, and recommendations as have been agreed 
        to by the Committee.
          ``(2) Annual reports.--Not later than 18 months after the 
        date of the enactment of this section, and annually thereafter, 
        the Committee shall submit to the Administrator and Congress a 
        final report containing such findings, conclusions, and 
        recommendations as have been agreed to by the Committee.

``Sec. 3616. Definitions

  ``(a) In General.--Except as provided under subsection (b), the 
definitions under sections 3502 and 3552 apply to sections 3607 through 
this section.
  ``(b) Additional Definitions.--In sections 3607 through this section:
          ``(1) Administrator.--The term `Administrator' means the 
        Administrator of General Services.
          ``(2) Authorization package.--The term `authorization 
        package'--
                  ``(A) means the essential information used to 
                determine whether to authorize the operation of an 
                information system or the use of a designated set of 
                common controls; and
                  ``(B) at a minimum, includes the information system 
                security plan, privacy plan, security control 
                assessment, privacy control assessment, and any 
                relevant plans of action and milestones.
          ``(3) Cloud computing.--The term `cloud computing' has the 
        meaning given that term by the National Institutes of Standards 
        and Technology in NIST Special Publication 800-145 and any 
        amendatory or superseding document thereto.
          ``(4) Cloud service provider.--The term `cloud service 
        provider' means an entity offering cloud computing services to 
        agencies.
          ``(5) Director.--The term `Director' means the Director of 
        the Office of Management and Budget.
          ``(6) Fedramp.--The term `FedRAMP' means the Federal Risk and 
        Authorization Management Program established under section 
        3607(a).
          ``(7) Fedramp authorization.--The term `FedRAMP 
        authorization' means a cloud computing product or service that 
        has received an agency authorization to operate and has been 
        approved by the FedRAMP Program Management Office to meet 
        requirements and guidelines established by the FedRAMP Program 
        Management Office.
          ``(8) Fedramp program management office.--The term `FedRAMP 
        Program Management Office' means the office that administers 
        FedRAMP established under section 3608.
          ``(9) Independent assessment organization.--The term 
        `independent assessment organization' means a third-party 
        organization accredited by the Program Director of the FedRAMP 
        Program Management Office to undertake conformity assessments 
        of cloud service providers.
          ``(10) Joint authorization board.--The term `Joint 
        Authorization Board' means the Joint Authorization Board 
        established under section 3609.''.
  (b) Technical and Conforming Amendment.--The table of sections for 
chapter 36 of title 44, United States Code, is amended by adding at the 
end the following new items:

``Sec.
``3607. Federal Risk and Authorization Management Program.
``3608. FedRAMP Program Management Office.
``3609. Joint Authorization Board.
``3610. Independent assessment organizations.
``3611. Roles and responsibilities of agencies.
``3612. Roles and responsibilities of the Office of Management and 
Budget.
``3613. Authorization of appropriations for FEDRAMP.
``3614. Reports to Congress.
``3615. Federal Secure Cloud Advisory Committee.
``3616. Definitions.''.

  (c) Sunset.--This Act and any amendment made by this Act shall be 
repealed on the date that is 10 years after the date of the enactment 
of this Act.
  (d) Rule of Construction.--Nothing in this Act or any amendment made 
by this Act shall be construed as altering or impairing the authorities 
of the Director of the Office of Management and Budget or the Secretary 
of Homeland Security under subchapter II of chapter 35 of title 44, 
United States Code.

                   Summary and Purpose of Legislation

    The Federal Risk and Authorization Management Program 
(FedRAMP) Authorization Act of 2019 would codify the FedRAMP 
Program at the General Services Administration (GSA). It would 
authorize GSA to establish a governmentwide program to provide 
a standardized approach to security assessment and 
authorization for cloud computing products and services.

                  Background and Need for Legislation

    The Office of Management and Budget (OMB) established 
FedRAMP in December 2011 to provide joint authorizations and 
continuous security monitoring services for cloud services for 
all federal agencies.\1\ According to the FedRAMP Program 
Management Office (PMO), the ``primary objective is to provide 
a re-usable security authorization model by which Agencies can 
obtain safe, secure cloud service technologies to help 
modernize Federal IT [Information Technology].''\2\
---------------------------------------------------------------------------
    \1\Office of Management and Budget, Security Authorization and 
Information Systems in Cloud Computing Environments (Dec. 8, 2011) 
(online at https://obamawhitehouse.archives.gov/sites/default/files/
omb/assets/egov_docs/fedrampmemo.pdf).
    \2\Federal Risk and Authorization Management Program, FedRAMP 
Accelerated: A Case Study for Change Within Government (2017) (online 
at https://fedramp.gov/assets/resources/documents/
FedRAMP_Accelerated_A_Case_Study_For_Change_Within_Government.pdf).
---------------------------------------------------------------------------
    A cloud service provider can take two different approaches 
to becoming FedRAMP certified: (1) seek a Provisional-Authority 
to Operate (P-ATO) from the Joint Authorization Board (JAB), an 
independent decision-making body for FedRAMP consisting of the 
Chief Information Officers from the Departments of Homeland 
Security and Defense and GSA; or (2) find an agency to sponsor 
the cloud service provider through the FedRAMP certification 
process with the FedRAMP PMO. Once an agency receives its 
FedRAMP certification, it is listed on the FedRAMP Marketplace, 
a central repository for agencies to find approved cloud 
services.
    FedRAMP can be thought of as a method for thorough risk 
assessment and mitigation in the IT cloud arena. The federal 
government regulates its risk in implementing cloud technology 
by determining the type of data that the system is storing such 
as Personal Identifiable Information or National Security data. 
FedRAMP sets security controls (i.e. multi-factor 
authentication or encryption requirements) based on standards 
established by the National Institute of Standards and 
Technology. FedRAMP standards have been commended for having 
``some of the best international standards for cloud security . 
. . [and] that provided customers with the confidence they 
needed to begin adopting the latest cloud technologies.''\3\
---------------------------------------------------------------------------
    \3\Id.
---------------------------------------------------------------------------
    The federal government spends roughly 80% of its $90 
billion in IT spending on operations and maintenance of 
existing systems, including many legacy systems.\4\ Programs 
like FedRAMP are critical to accelerating the government's 
adoption of modern and improved IT solutions. According to OMB, 
FedRAMP ``has allowed agencies to adapt from arcane legacy 
technology to mission-centric and cost-effective cloud-based 
systems in a more rapid, consistent, and secure manner.''\5\
---------------------------------------------------------------------------
    \4\Government Accountability Office, Information Technology: 
Agencies Need to Develop Modernization Plans for Critical Legacy 
Systems (June 2019) online at www.gao.gov/products/GAO-19-471).
    \5\Office of the Federal Chief Information Officer, Federal Cloud 
Computing Strategy--Cloud Smart (June 2019) (online at https://
cloud.cio.gov/strategy/#security).
---------------------------------------------------------------------------
    The efficiencies and cost-savings gained from having a 
standardized authorization program benefits both agencies and 
the companies offering cloud services. Security authorizations 
can be onerous, but a FedRAMP certification enables both the 
government and the private sector to avoid duplicating security 
reviews, thus saving time, money, and effort. FedRAMP reports 
that if agencies reuse authorizations an average of six times, 
it equates to more than $250 million in cost avoidance.\6\
---------------------------------------------------------------------------
    \6\Federal Risk and Authorization Management Program, About Us 
(online at www.fedramp.gov/about/) (accessed January 22, 2020).
---------------------------------------------------------------------------
    In 2015, the FedRAMP PMO requested feedback from government 
and industry stakeholders to help evaluate the program. They 
received both positive and negative feedback. For example, some 
stakeholders stated:

          [T]he JAB [Joint Authorization Board] authorization 
        process took too long; the rigorous reviews did not 
        always add value to a system's security; stakeholders 
        were not clear on program expectations, which often 
        seemed to be a moving target; and there was uncertainty 
        about how to successfully complete the process in a 
        defined timeframe. Venders felt that FedRAMP sometimes 
        required a prohibitively high amount of resources and 
        delayed or prevented them from doing business with the 
        Federal Government. This was especially true for 
        smaller vendors.\7\
---------------------------------------------------------------------------
    \7\Federal Risk and Authorization Management Program, FedRAMP 
Accelerated: A Case Study for Change Within Government (2017) (online 
at https://fedramp.gov/assets/resources/documents/
FedRAMP_Accelerated_A_Case_Study_For_Change_Within_Government.pdf).

    While some cloud service providers continue to have similar 
complaints about FedRAMP, the program has made significant 
progress since its establishment to improve its processes, 
reduce the time to authorize cloud service offerings, and 
provide more transparency. New initiatives like FedRAMP Ready 
and FedRAMP Accelerated are evidence of the program's agility 
and willingness to adapt.
    For example, FedRAMP Accelerated, which was initiated in 
2016, changed the time that a cloud service provider's 
capabilities would be surveyed to the beginning of the process 
rather than in the middle or end of the process. As a result, 
the JAB reduced the time it required to issue a P-ATO by 75% 
from an average of 12 to 24 months to only six months.\8\
---------------------------------------------------------------------------
    \8\Federal Risk and Authorization Management Program, How FedRAMP 
Transformed JAB Authorizations to Take 75% Less Time (Mar. 28, 2018) 
(online at www.fedramp.gov/how-fedramp-transformed-jab-authorizations-
to-take-less-time/).
---------------------------------------------------------------------------
    By codifying the FedRAMP program at GSA, H.R. 3941 would 
continue this governmentwide and standardized approach to 
security assessment ad authorization for cloud computing 
products and services in order to help agencies modernize their 
information technology systems. The legislation would reduce 
duplication of security assessments and other obstacles to 
agency adoption of cloud products by establishing a 
``presumption of adequacy'' for cloud technologies that have 
received FedRAMP certification. This presumption of adequacy 
means that the cloud service offering has met baseline security 
standards established by the program and should be considered 
approved for use across the federal government. The bill would 
also require GSA to work toward automating the FedRAMP process, 
which will lead to further standardization in security 
assessments and continuous monitoring of cloud services, 
increasing the efficiency for providers and agencies.
    H.R. 3941 also requires FedRAMP to be more transparent. The 
bill requires the FedRAMP PMO and the JAB to develop and adopt 
metrics regarding the time and quality of security assessments 
used to issue FedRAMP authorizations. It also requires OMB to 
submit an annual report to Congress on the status, efficiency, 
and effectiveness of FedRAMP, including its progress towards 
meeting metrics consistently tracked over time and any progress 
made to automate FedRAMP processes.
    The bill also establishes the Federal Secure Cloud Advisory 
Committee to ensure dialogue among GSA, agency cybersecurity 
and procurement officials, and industry for effective and 
ongoing coordination in acquisition and adoption of cloud 
products by the federal government. This committee will also 
provide a forum for industry to bring concerns to GSA and 
agencies in a public setting that fosters a collaborative 
problem-solving environment to continuously improve the 
program.

                      Section-by-Section Analysis


Section 1. Short title

    The short title is the ``Federal Risk and Authorization 
Management Program Authorization Act of 2019'' or the ``FedRAMP 
Authorization Act.''

Section 2. Codification of the FedRAMP program

    This section would establish the FedRAMP program within GSA 
and would establish as components of FedRAMP the JAB and the 
FedRAMP PMO. This section also would direct the Administrator 
of GSA to establish a governmentwide program to provide the 
authoritative standardized approach to security assessment and 
authorization of cloud computing products and services that 
process unclassified information used by agencies.
    To ensure effective operation of the FedRAMP program, this 
section also would assign roles and responsibilities in 
providing guidance and administering the program to GSA, the 
FedRAMP PMO, the JAB, independent assessment organizations, and 
OMB. The section also would require an annual report to 
Congress on the efficiency and effectiveness of the FedRAMP PMO 
and agencies in supporting the effectiveness and security of 
authorizations to operate for cloud computing products and 
services and other information such as the number of authorized 
cloud computing services in use at each agency. The bill would 
authorize to be appropriated $20 million for the FedRAMP 
program. Finally, this section would establish a Federal Secure 
Cloud Advisory Committee to ensure effective and ongoing 
coordination of agency adoption, use, authorization, 
monitoring, acquisition, and security of cloud computing 
products and services to enable agency mission and 
administrative priorities.

                          Legislative History

    On July 24, 2019, Representative Gerald E. Connolly (D-VA) 
introduced H.R. 3941, the FedRAMP Authorization Act of 2019, 
which was referred to the Committee with Representative Mark 
Meadows (R-NC) as an original cosponsor.

                        Committee Consideration

    On December 19, 2019, the Committee considered H.R. 3941 at 
a business meeting with a quorum present. Chairwoman Maloney 
offered an amendment in the nature of a substitute (ANS). The 
ANS was adopted by a voice vote, and the Committee ordered the 
bill reported favorably, as amended, by voice vote.

                            Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 3941:
    No Roll Call Votes were taken on this bill.

                       Explanation of Amendments

    During Committee consideration of the bill, Representative 
Carolyn Maloney (D-NY), Chairwoman of the Committee, offered an 
ANS that made certain technical changes to the bill. The 
Committee adopted the ANS by a voice vote.

                   List of Related Committee Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearing was used to consider H.R. 
3941: ``To the Cloud! The Cloudy Role of FedRAMP in IT 
Modernization,'' held before the Subcommittee on Government 
Operations on July 17, 2019.

  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 recommends the adoption of this 
bill (H.R. 3941) to authorize FedRAMP within GSA. In addition, 
the Committee affirms that further oversight findings and 
recommendations are reflected in the preceding section entitled 
Background and Need for Legislation.

         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 or objective of this bill is to codify the Federal Risk 
and Authorization Management Program.

              Application of Law to the Legislative Branch

    This bill does not relate to employment or access to public 
services and accommodations within the meaning of section 
102(b)(3) of Public Law 104-1.

                    Duplication of Federal Programs

    In accordance with clause 3(c)(5) of rule XIII, 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 (GAO) 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

    This bill does not direct the completion of any specific 
rule makings within the meaning of section 551 of title 5, 
United States Code.

                Federal Advisory Committee Act Statement

    The legislation establishes an advisory committee within 
the definition of Section 5(b) of the appendix to title 5, 
United States Code.

                 Unfunded Mandates Reform Act Statement

    Pursuant to section 423 of the Congressional Budget Act of 
1974 the Committee has included a letter received from the 
Congressional Budget Office below.

                         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 of the House of Representatives.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(2)(B) of rule XIII of the Rules of 
the House of Representatives, the Committee includes below a 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.

   New Budget Authority and Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the House of 
Representatives, the cost estimate prepared by the 
Congressional Budget Office and submitted pursuant to section 
402 of the Congressional Budget Act of 1974 is as follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, February 3, 2020.
Hon. Carolyn B. Maloney,
Chairwoman, Committee on Oversight and Reform,
House of Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3941, the FedRAMP 
Authorization Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    H.R. 3941 would establish a Federal Risk and Authorization 
Management Program within the General Services Administration. 
That program would establish a standardized approach throughout 
the government for acquiring and using security assessment and 
cloud computing products and services. H.R. 3941 would 
authorize the appropriation of $20 million annually for this 
program.
    The bill also would establish the Federal Secure Cloud 
Advisory Committee. Composed of 15 members, the committee would 
examine how the cloud process could be improved. Using 
information about the cost of other advisory committees, CBO 
estimates implementing this provision would cost about $3 
million over the 2020-2025 period.
    Assuming appropriation of the specified and estimated 
amounts, CBO estimates that in total, implementing H.R. 3941 
would cost $100 million over the 2020-2025 period, primarily to 
carry out the Federal Risk and Authorization Management 
Program. The costs of the legislation (detailed in Table 1) 
fall within budget function 800 (general government).

               TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 3941
----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, millions of dollars--
                                                            ----------------------------------------------------
                                                              2020   2021   2022   2023   2024   2025  2020-2025
----------------------------------------------------------------------------------------------------------------
Estimated Authorization....................................     20     20     20     21     21     21       123
Estimated Outlays..........................................      *     17     20     21     21     21       100
----------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of 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 36--MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT SERVICES

Sec.
3601. Definitions.
     * * * * * * *
3607. Federal Risk and Authorization Management Program.
3608. FedRAMP Program Management Office.
3609. Joint Authorization Board.
3610. Independent assessment organizations.
3611. Roles and responsibilities of agencies.
3612. Roles and responsibilities of the Office of Management and Budget.
3613. Authorization of appropriations for FEDRAMP.
3614. Reports to Congress.
3615. Federal Secure Cloud Advisory Committee.
3616. Definitions.

           *       *       *       *       *       *       *


Sec. 3607. Federal Risk and Authorization Management Program

  (a) Establishment.--There is established within the General 
Services Administration the Federal Risk and Authorization 
Management Program. The Administrator of General Services, in 
accordance with the guidelines established pursuant to section 
3612, shall establish a governmentwide program that provides 
the authoritative standardized approach to security assessment 
and authorization for cloud computing products and services 
that process unclassified information used by agencies.
  (b) Components of Fedramp.--The Joint Authorization Board and 
the FedRAMP Program Management Office are established as 
components of FedRAMP.

Sec. 3608. FedRAMP Program Management Office

  (a) GSA Duties.--
          (1) Roles and responsibilities.--The Administrator of 
        General Services shall--
                  (A) determine the categories and 
                characteristics of cloud computing information 
                technology goods or services that are within 
                the jurisdiction of FedRAMP and that require 
                FedRAMP authorization from the Joint 
                Authorization Board or the FedRAMP Program 
                Management Office;
                  (B) develop, coordinate, and implement a 
                process for the FedRAMP Program Management 
                Office, the Joint Authorization Board, and 
                agencies to review security assessments of 
                cloud computing services pursuant to 
                subsections (b) and (c) of section 3611, and 
                appropriate oversight of continuous monitoring 
                of cloud computing services; and
                  (C) ensure the continuous improvement of 
                FedRAMP.
          (2) Implementation.--The Administrator shall oversee 
        the implementation of FedRAMP, including--
                  (A) appointing a Program Director to oversee 
                the FedRAMP Program Management Office;
                  (B) hiring professional staff as may be 
                necessary for the effective operation of the 
                FedRAMP Program Management Office, and such 
                other activities as are essential to properly 
                perform critical functions;
                  (C) entering into interagency agreements to 
                detail personnel on a reimbursable or non-
                reimbursable basis to assist the FedRAMP 
                Program Management Office and the Joint 
                Authorization Board in discharging the 
                responsibilities of the Office under this 
                section; and
                  (D) such other actions as the Administrator 
                may determine necessary to carry out this 
                section.
  (b) Duties.--The FedRAMP Program Management Office shall have 
the following duties:
          (1) Provide guidance to independent assessment 
        organizations, validate the independent assessments, 
        and apply the requirements and guidelines adopted in 
        section 3609(c)(5).
          (2) Oversee and issue guidelines regarding the 
        qualifications, roles, and responsibilities of 
        independent assessment organizations.
          (3) Develop templates and other materials to support 
        the Joint Authorization Board and agencies in the 
        authorization of cloud computing services to increase 
        the speed, effectiveness, and transparency of the 
        authorization process, consistent with standards 
        defined by the National Institute of Standards and 
        Technology.
          (4) Establish and maintain a public comment process 
        for proposed guidance before the issuance of such 
        guidance by FedRAMP.
          (5) Issue FedRAMP authorization for any 
        authorizations to operate issued by an agency that 
        meets the requirements and guidelines described in 
        paragraph (1).
          (6) Establish frameworks for agencies to use 
        authorization packages processed by the FedRAMP Program 
        Management Office and Joint Authorization Board.
          (7) Coordinate with the Secretary of Defense and the 
        Secretary of Homeland Security to establish a framework 
        for continuous monitoring and reporting required of 
        agencies pursuant to section 3553.
          (8) Establish a centralized and secure repository to 
        collect and share necessary data, including security 
        authorization packages, from the Joint Authorization 
        Board and agencies to enable better sharing and reuse 
        to such packages across agencies.
  (c) Evaluation of Automation Procedures.--
          (1) In general.--The FedRAMP Program Management 
        Office shall assess and evaluate available automation 
        capabilities and procedures to improve the efficiency 
        and effectiveness of the issuance of provisional 
        authorizations to operate issued by the Joint 
        Authorization Board and FedRAMP authorizations, 
        including continuous monitoring of cloud environments 
        and among cloud environments.
          (2) Means for automation.--Not later than 1 year 
        after the date of the enactment of this section and 
        updated annually thereafter, the FedRAMP Program 
        Management Office shall establish a means for the 
        automation of security assessments and reviews.
  (d) Metrics for Authorization.--The FedRAMP Program 
Management Office shall establish annual metrics regarding the 
time and quality of the assessments necessary for completion of 
a FedRAMP authorization process in a manner that can be 
consistently tracked over time in conjunction with the periodic 
testing and evaluation process pursuant to section 3554 in a 
manner that minimizes the agency reporting burden.

Sec. 3609. Joint Authorization Board

  (a) Establishment.--There is established the Joint 
Authorization Board which shall consist of cloud computing 
experts, appointed by the Director in consultation with the 
Administrator, from each of the following:
          (1) The Department of Defense.
          (2) The Department of Homeland Security.
          (3) The General Services Administration.
          (4) Such other agencies as determined by the 
        Director, in consultation with the Administrator.
  (b) Issuance of Provisional Authorizations to Operate.--The 
Joint Authorization Board shall conduct security assessments of 
cloud computing services and issue provisional authorizations 
to operate to cloud service providers that meet FedRAMP 
security guidelines set forth in section 3608(b)(1).
  (c) Duties.--The Joint Authorization Board shall--
          (1) develop and make publicly available on a website, 
        determined by the Administrator, criteria for 
        prioritizing and selecting cloud computing services to 
        be assessed by the Joint Authorization Board;
          (2) provide regular updates on the status of any 
        cloud computing service during the assessment and 
        authorization process of the Joint Authorization Board;
          (3) review and validate cloud computing services and 
        independent assessment organization security packages 
        or any documentation determined to be necessary by the 
        Joint Authorization Board to evaluate the system 
        security of a cloud computing service;
          (4) in consultation with the FedRAMP Program 
        Management Office, serve as a resource for best 
        practices to accelerate the FedRAMP process;
          (5) establish requirements and guidelines for 
        security assessments of cloud computing services, 
        consistent with standards defined by the National 
        Institute of Standards and Technology, to be used by 
        the Joint Authorization Board and agencies;
          (6) perform such other roles and responsibilities as 
        the Administrator may assign, in consultation with the 
        FedRAMP Program Management Office and members of the 
        Joint Authorization Board; and
          (7) establish metrics and goals for reviews and 
        activities associated with issuing provisional 
        authorizations to operate and provide to the FedRAMP 
        Program Management Office.
  (d) Determinations of Demand for Cloud Computing Services.--
The Joint Authorization Board shall consult with the Chief 
Information Officers Council established in section 3603 to 
establish a process for prioritizing and accepting the cloud 
computing services to be granted a provisional authorization to 
operate through the Joint Authorization Board, which shall be 
made available on a public website.
  (e) Detail of Personnel.--To assist the Joint Authorization 
Board in discharging the responsibilities under this section, 
personnel of agencies may be detailed to the Joint 
Authorization Board for the performance of duties described 
under subsection (c).

Sec. 3610. Independent assessment organizations

  (a) Requirements for Accreditation.--The Joint Authorization 
Board shall determine the requirements for certification of 
independent assessment organizations pursuant to section 3609. 
Such requirements may include developing or requiring 
certification programs for individuals employed by the 
independent assessment organizations who lead FedRAMP 
assessment teams.
  (b) Assessment.--Accredited independent assessment 
organizations may assess, validate, and attest to the quality 
and compliance of security assessment materials provided by 
cloud service providers.

Sec. 3611. Roles and responsibilities of agencies

  (a) In General.--In implementing the requirements of FedRAMP, 
the head of each agency shall, consistent with guidance issued 
by the Director pursuant to section 3612--
          (1) create policies to ensure cloud computing 
        services used by the agency meet FedRAMP security 
        requirements and other risk-based performance 
        requirements as defined by the Director;
          (2) issue agency-specific authorizations to operate 
        for cloud computing services in compliance with section 
        3554;
          (3) confirm whether there is a provisional 
        authorization to operate in the cloud security 
        repository established under section 3608(b)(10) issued 
        by the Joint Authorization Board or a FedRAMP 
        authorization issued by the FedRAMP Program Management 
        Office before beginning an agency authorization for a 
        cloud computing product or service;
          (4) to the extent practicable, for any cloud 
        computing product or service the agency seeks to 
        authorize that has received either a provisional 
        authorization to operate by the Joint Authorization 
        Board or a FedRAMP authorization by the FedRAMP Program 
        Management Office, use the existing assessments of 
        security controls and materials within the 
        authorization package; and
          (5) provide data and information required to the 
        Director pursuant to section 3612 to determine how 
        agencies are meeting metrics as defined by the FedRAMP 
        Program Management Office.
  (b) Submission of Policies Required.--Not later than 6 months 
after the date of the enactment of this section, the head of 
each agency shall submit to the Director the policies created 
pursuant to subsection (a)(1) for review and approval.
  (c) Submission of Authorizations to Operate Required.--Upon 
issuance of an authorization to operate or a provisional 
authorization to operate issued by an agency, the head of each 
agency shall provide a copy of the authorization to operate 
letter and any supplementary information required pursuant to 
section 3608(b) to the FedRAMP Program Management Office.
  (d) Presumption of Adequacy.--
          (1) In general.--The assessment of security controls 
        and materials within the authorization package for 
        provisional authorizations to operate issued by the 
        Joint Authorization Board and agency authorizations to 
        operate that receive FedRAMP authorization from the 
        FedRAMP Program Management Office shall be presumed 
        adequate for use in agency authorizations of cloud 
        computing products and services.
          (2) Information security requirements.--The 
        presumption under paragraph (1) does not modify or 
        alter the responsibility of any agency to ensure 
        compliance with subchapter II of chapter 35 for any 
        cloud computing products or services used by the 
        agency.

Sec. 3612. Roles and responsibilities of the Office of Management and 
                    Budget

  The Director shall have the following duties:
          (1) Issue guidance to ensure that an agency does not 
        operate a Federal Government cloud computing service 
        using Government data without an authorization to 
        operate issued by the agency that meets the 
        requirements of subchapter II of chapter 35 and 
        FedRAMP.
          (2) Ensure agencies are in compliance with any 
        guidance or other requirements issued related to 
        FedRAMP.
          (3) Review, analyze, and update guidance on the 
        adoption, security, and use of cloud computing services 
        used by agencies.
          (4) Ensure the Joint Authorization Board is in 
        compliance with section 3609(c).
          (5) Adjudicate disagreements between the Joint 
        Authorization Board and cloud service providers seeking 
        a provisional authorization to operate through the 
        Joint Authorization Board.
          (6) Promulgate regulations on the role of FedRAMP 
        authorization in agency acquisition of cloud computing 
        products and services that process unclassified 
        information.

Sec. 3613. Authorization of appropriations for FEDRAMP

  There is authorized to be appropriated $20,000,000 each year 
for the FedRAMP Program Management Office and the Joint 
Authorization Board.

Sec. 3614. Reports to Congress

  Not later than 12 months after the date of the enactment of 
this section, and annually thereafter, the Director shall 
submit to the Committee on Oversight and Reform of the House of 
Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate a report that includes the 
following:
          (1) The status, efficiency, and effectiveness of 
        FedRAMP Program Management Office and agencies during 
        the preceding year in supporting the speed, 
        effectiveness, sharing, reuse, and security of 
        authorizations to operate for cloud computing products 
        and services, including progress towards meeting the 
        metrics adopted by the FedRAMP Program Management 
        Office pursuant to section 3608(d) and the Joint 
        Authorization Board pursuant to section 3609(c)(5).
          (2) Data on agency use of provisional authorizations 
        to operate issued by the Joint Authorization Board and 
        agency sponsored authorizations that receive FedRAMP 
        authorization by the FedRAMP Program Management Office.
          (3) The length of time for the Joint Authorization 
        Board to review applications for and issue provisional 
        authorizations to operate.
          (4) The length of time for the FedRAMP Program 
        Management Office to review agency applications for and 
        issue FedRAMP authorization.
          (5) The number of provisional authorizations to 
        operate issued by the Joint Authorization Board and 
        FedRAMP authorizations issued by the FedRAMP Program 
        Management Office for the previous year.
          (6) A review of progress made during the preceding 
        year in advancing automation techniques to securely 
        automate FedRAMP processes and to accelerate reporting 
        as described in this section.
          (7) The number and characteristics of authorized 
        cloud computing services in use at each agency 
        consistent with guidance provided by the Director in 
        section 3612.

Sec. 3615. Federal Secure Cloud Advisory Committee

  (a) Establishment, Purposes, and Duties.--
          (1) Establishment.--There is established a Federal 
        Secure Cloud Advisory Committee (referred to in this 
        section as the ``Committee'') to ensure effective and 
        ongoing coordination of agency adoption, use, 
        authorization, monitoring, acquisition, and security of 
        cloud computing products and services to enable agency 
        mission and administrative priorities.
          (2) Purposes.--The purposes of the Committee are the 
        following:
                  (A) To examine the operations of FedRAMP and 
                determine ways that authorization processes can 
                continuously be improved, including the 
                following:
                          (i) Measures to increase agency re-
                        use of provisional authorizations to 
                        operate issued by the Joint 
                        Authorization Board.
                          (ii) Proposed actions that can be 
                        adopted to reduce the cost of 
                        provisional authorizations to operate 
                        and FedRAMP authorizations for cloud 
                        service providers.
                          (iii) Measures to increase the number 
                        of provisional authorizations to 
                        operate or FedRAMP authorizations for 
                        cloud computing services offered by 
                        small businesses (as defined by section 
                        3(a) of the Small Business Act (15 
                        U.S.C. 632(a)).
                  (B) Collect information and feedback on 
                agency compliance with and implementation of 
                FedRAMP requirements.
                  (C) Serve as a forum that facilitates 
                communication and collaboration among the 
                FedRAMP stakeholder community.
          (3) Duties.--The duties of the Committee are, at a 
        minimum, the following:
                  (A) Provide advice and recommendations to the 
                Administrator, the Joint Authorization Board, 
                and to agencies on technical, financial, 
                programmatic, and operational matters regarding 
                secure adoption of cloud computing services.
                  (B) Submit reports as required.
  (b) Members.--
          (1) Composition.--The Committee shall be comprised of 
        not more than 15 members who are qualified 
        representatives from the public and private sectors, 
        appointed by the Administrator, in consultation with 
        the Administrator of the Office of Electronic 
        Government, as follows:
                  (A) The Administrator or the Administrator's 
                designee, who shall be the Chair of the 
                Committee.
                  (B) At least 1 representative each from the 
                Cybersecurity and Infrastructure Security 
                Agency and the National Institute of Standards 
                and Technology.
                  (C) At least 2 officials who serve as the 
                Chief Information Security Officer within an 
                agency, who shall be required to maintain such 
                a position throughout the duration of their 
                service on the Committee.
                  (D) At least 1 official serving as Chief 
                Procurement Officer (or equivalent) in an 
                agency, who shall be required to maintain such 
                a position throughout the duration of their 
                service on the Committee.
                  (E) At least 1 individual representing an 
                independent assessment organization.
                  (F) No fewer than 5 representatives from 
                unique businesses that primarily provide cloud 
                computing services or products, including at 
                least 2 representatives from a small business 
                (as defined by section 3(a) of the Small 
                Business Act (15 U.S.C. 632(a))).
                  (G) At least 2 other government 
                representatives as the Administrator determines 
                to be necessary to provide sufficient balance, 
                insights, or expertise to the Committee.
          (2) Deadline for appointment.--Each member of the 
        Committee shall be appointed not later than 30 days 
        after the date of the enactment of this Act.
          (3) Period of appointment; vacancies.--
                  (A) In general.--Each non-Federal member of 
                the Committee shall be appointed for a term of 
                3 years, except that the initial terms for 
                members may be staggered 1, 2, or 3 year terms 
                to establish a rotation in which one-third of 
                the members are selected each year. Any such 
                member may be appointed for not more than 2 
                consecutive terms.
                  (B) Vacancies.--Any vacancy in the Committee 
                shall not affect its powers, but shall be 
                filled in the same manner in which the original 
                appointment was made. Any member appointed to 
                fill a vacancy occurring before the expiration 
                of the term for which the member's predecessor 
                was appointed shall be appointed only for the 
                remainder of that term. A member may serve 
                after the expiration of that member's term 
                until a successor has taken office.
  (c) Meetings and Rules of Procedures.--
          (1) Meetings.--The Committee shall hold not fewer 
        than 3 meetings in a calendar year, at such time and 
        place as determined by the Chair.
          (2) Initial meeting.--Not later than 120 days after 
        the date of the enactment of this section, the 
        Committee shall meet and begin the operations of the 
        Committee.
          (3) Rules of procedure.--The Committee may establish 
        rules for the conduct of the business of the Committee, 
        if such rules are not inconsistent with this section or 
        other applicable law.
  (d) Employee Status.--
          (1) In general.--A member of the Committee (other 
        than a member who is appointed to the Committee in 
        connection with another Federal appointment) shall not 
        be considered an employee of the Federal Government by 
        reason of any service as such a member, except for the 
        purposes of section 5703 of title 5, relating to travel 
        expenses.
          (2) Pay not permitted.--A member of the Committee 
        covered by paragraph (1) may not receive pay by reason 
        of service on the panel.
  (e) Applicability to the Federal Advisory Committee Act.--
Notwithstanding any other provision of law, the Federal 
Advisory Committee Act (5 U.S.C. App.) shall apply to the 
Committee, except that section 14 of such Act shall not apply.
  (f) Hearings and Evidence.--The Committee, or on the 
authority of the Committee, any subcommittee, may, for the 
purposes of carrying out this section, hold hearings, sit and 
act at such times and places, take testimony, receive evidence, 
and administer oaths.
  (g) Contracting.--The Committee, may, to such extent and in 
such amounts as are provided in appropriation Acts, enter into 
contracts to enable the Committee to discharge its duties under 
this section.
  (h) Information From Federal Agencies.--
          (1) In general.--The Committee is authorized to 
        secure directly from any executive department, bureau, 
        agency, board, commission, office, independent 
        establishment, or instrumentality of the Government, 
        information, suggestions, estimates, and statistics for 
        the purposes of the Committee. Each department, bureau, 
        agency, board, commission, office, independent 
        establishment, or instrumentality shall, to the extent 
        authorized by law, furnish such information, 
        suggestions, estimates, and statistics directly to the 
        Committee, upon request made by the Chair, the Chair of 
        any subcommittee created by a majority of the 
        Committee, or any member designated by a majority of 
        the Committee.
          (2) Receipt, handling, storage, and dissemination.--
        Information may only be received, handled, stored, and 
        disseminated by members of the Committee and its staff 
        consistent with all applicable statutes, regulations, 
        and Executive orders.
  (i) Assistance From Agencies.--
          (1) Other departments and agencies.--In addition to 
        the administration of the Committee by the General 
        Services Administration, other agencies may provide to 
        the Committee such services, funds, facilities, staff, 
        and other support services as the head of the agency 
        determines to be advisable and as is authorized by law.
          (2) Detail of employees.--Any Federal Government 
        employee may be detailed to the Committee without 
        reimbursement from the Committee, and such detailee 
        shall retain the rights, status, and privileges of his 
        or her regular employment without interruption.
  (j) Postal Services.--The Committee may use the United States 
mails in the same manner and under the same conditions as 
agencies.
  (k) Expert and Consultant Services.--The Committee is 
authorized to procure the services of experts and consultants 
in accordance with section 3109 of title 5, but at rates not to 
exceed the daily rate paid a person occupying a position at 
Level IV of the Executive Schedule under section 5315 of title 
5.
  (l) Reports.--
          (1) Interim reports.--The Committee may submit to the 
        Administrator and Congress interim reports containing 
        such findings, conclusions, and recommendations as have 
        been agreed to by the Committee.
          (2) Annual reports.--Not later than 18 months after 
        the date of the enactment of this section, and annually 
        thereafter, the Committee shall submit to the 
        Administrator and Congress a final report containing 
        such findings, conclusions, and recommendations as have 
        been agreed to by the Committee.

Sec. 3616. Definitions

  (a) In General.--Except as provided under subsection (b), the 
definitions under sections 3502 and 3552 apply to sections 3607 
through this section.
  (b) Additional Definitions.--In sections 3607 through this 
section:
          (1) Administrator.--The term ``Administrator'' means 
        the Administrator of General Services.
          (2) Authorization package.--The term ``authorization 
        package''--
                  (A) means the essential information used to 
                determine whether to authorize the operation of 
                an information system or the use of a 
                designated set of common controls; and
                  (B) at a minimum, includes the information 
                system security plan, privacy plan, security 
                control assessment, privacy control assessment, 
                and any relevant plans of action and 
                milestones.
          (3) Cloud computing.--The term ``cloud computing'' 
        has the meaning given that term by the National 
        Institutes of Standards and Technology in NIST Special 
        Publication 800-145 and any amendatory or superseding 
        document thereto.
          (4) Cloud service provider.--The term ``cloud service 
        provider'' means an entity offering cloud computing 
        services to agencies.
          (5) Director.--The term ``Director'' means the 
        Director of the Office of Management and Budget.
          (6) Fedramp.--The term ``FedRAMP'' means the Federal 
        Risk and Authorization Management Program established 
        under section 3607(a).
          (7) Fedramp authorization.--The term ``FedRAMP 
        authorization'' means a cloud computing product or 
        service that has received an agency authorization to 
        operate and has been approved by the FedRAMP Program 
        Management Office to meet requirements and guidelines 
        established by the FedRAMP Program Management Office.
          (8) Fedramp program management office.--The term 
        ``FedRAMP Program Management Office'' means the office 
        that administers FedRAMP established under section 
        3608.
          (9) Independent assessment organization.--The term 
        ``independent assessment organization'' means a third-
        party organization accredited by the Program Director 
        of the FedRAMP Program Management Office to undertake 
        conformity assessments of cloud service providers.
          (10) Joint authorization board.--The term ``Joint 
        Authorization Board'' means the Joint Authorization 
        Board established under section 3609.

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