Sec. 3. Amendments to title 44

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Subchapter I of chapter 35 of title 44, United States Code, is amended— in section 3504— in subsection (a)(1)(B)— by striking clause

(v)and inserting the following: privacy, confidentiality, disclosure, and sharing of information; ; by redesignating clause

(vi)as clause (vii); and by inserting after clause

(v)the following: in consultation with the National Cyber Director, security of information; and ; and in subsection (g)— by redesignating paragraph

(2)as paragraph (3); and by striking paragraph

(1)and inserting the following: develop and oversee the implementation of policies, principles, standards, and guidelines on privacy, confidentiality, disclosure, and sharing of information collected or maintained by or for agencies; in consultation with the National Cyber Director, oversee the implementation of policies, principles, standards, and guidelines on security, of information collected or maintained by or for agencies; and ; in section 3505— by striking the first subsection designated as subsection (c); in paragraph

(2)of the second subsection designated as subsection (c), by inserting an identification of internet accessible information systems and after an inventory under this subsection shall include ; in paragraph

(3)of the second subsection designated as subsection (c)— in subparagraph (B)— by inserting the Director of the Cybersecurity and Infrastructure Security Agency, the National Cyber Director, and before the Comptroller General ; and by striking and at the end; in subparagraph (C)(v), by striking the period at the end and inserting ; and ; and by adding at the end the following: maintained on a continual basis through the use of automation, machine-readable data, and scanning, wherever practicable. ; in section 3506— in subsection (a)(3), by inserting In carrying out these duties, the Chief Information Officer shall consult, as appropriate, with the Chief Data Officer in accordance with the designated functions under section 3520(c). after reduction of information collection burdens on the public. ; in subsection (b)(1)(C), by inserting availability, after integrity, ; in subsection (h)(3), by inserting security, after efficiency, ; and by adding at the end the following: Nothwithstanding paragraphs

(2)and

(3)of subsection (a), the head of each agency shall designate a Chief Privacy Officer with the necessary skills, knowledge, and expertise, who shall have the authority and responsibility to— lead the privacy program of the agency; and carry out the privacy responsibilities of the agency under this chapter, section 552a of title 5, and guidance issued by the Director. The Chief Privacy Officer of each agency shall— serve in a central leadership position within the agency; have visibility into relevant agency operations; and be positioned highly enough within the agency to regularly engage with other agency leaders and officials, including the head of the agency. A privacy officer of an agency established under a statute enacted before the date of enactment of the Federal Information Security Modernization Act of 2023 may carry out the responsibilities under this subsection for the agency. ; and in section 3513— by redesignating subsection

(c)as subsection (d); and by inserting after subsection

(b)the following: Each agency providing a written plan under subsection

(b)shall provide any portion of the written plan addressing information security to the Secretary of Homeland Security and the National Cyber Director. . Section 3552(b) of title 44, United States Code, is amended— by redesignating paragraphs (2), (3), (4), (5), (6), and

(7)as paragraphs (3), (4), (5), (6), (8), and (10), respectively; by inserting after paragraph

(1)the following: The term high value asset means information or an information system that the head of an agency, using policies, principles, standards, or guidelines issued by the Director under section 3553(a), determines to be so critical to the agency that the loss or degradation of the confidentiality, integrity, or availability of such information or information system would have a serious impact on the ability of the agency to perform the mission of the agency or conduct business. ; by inserting after paragraph (6), as so redesignated, the following: The term major incident has the meaning given the term in guidance issued by the Director under section 3598(a). ; in paragraph (8)(A), as so redesignated, by striking used and inserting owned, managed, ; by inserting after paragraph (8), as so redesignated, the following: The term penetration test — means an authorized assessment that emulates attempts to gain unauthorized access to, or disrupt the operations of, an information system or component of an information system; and includes any additional meaning given the term in policies, principles, standards, or guidelines issued by the Director under section 3553(a). ; and by inserting after paragraph (10), as so redesignated, the following: The term shared service means a centralized mission capability or consolidated business function that is provided to multiple organizations within an agency or to multiple agencies. The term zero trust architecture has the meaning given the term in Special Publication 800–207 of the National Institute of Standards and Technology, or any successor document. . Section 1001(c)(1)(A) of the Homeland Security Act of 2002 ( 6 U.S.C. 511(c)(1)(A) ) is amended by striking section 3552(b)(5) and inserting section 3552(b) . Section 2222(i)(8) of title 10, United States Code, is amended by striking section 3552(b)(6)(A) and inserting section 3552(b)(8)(A) . Section 2223(c)(3) of title 10, United States Code, is amended by striking section 3552(b)(6) and inserting section 3552(b) . Section 2315 of title 10, United States Code, is amended by striking section 3552(b)(6) and inserting section 3552(b) . Section 2339a(e)(5) of title 10, United States Code, is amended by striking section 3552(b)(6) and inserting section 3552(b) . Section 207(a) of the High-Performance Computing Act of 1991 ( 15 U.S.C. 5527(a) ) is amended by striking section 3552(b)(6)(A)(i) and inserting section 3552(b)(8)(A)(i) . Section 3(5) of the Internet of Things Cybersecurity Improvement Act of 2020 (15 U.S.C. 278g–3a(5)) is amended by striking section 3552(b)(6) and inserting section 3552(b) . Section 933(e)(1)(B) of the National Defense Authorization Act for Fiscal Year 2013 ( 10 U.S.C. 2224 note) is amended by striking section 3542(b)(2) and inserting section 3552(b) . The Ike Skelton National Defense Authorization Act for Fiscal Year 2011 ( Public Law 111–383 ) is amended— in section 806(e)(5) ( 10 U.S.C. 2304 note), by striking section 3542(b) and inserting section 3552(b) ; in section 931(b)(3) ( 10 U.S.C. 2223 note), by striking section 3542(b)(2) and inserting section 3552(b) ; and in section 932(b)(2) ( 10 U.S.C. 2224 note), by striking section 3542(b)(2) and inserting section 3552(b) . Section 301(c)(1)(A) of the E-Government Act of 2002 ( 44 U.S.C. 3501 note) is amended by striking section 3542(b)(2) and inserting section 3552(b) . Section 20 of the National Institute of Standards and Technology Act ( 15 U.S.C. 278g–3 ) is amended— in subsection (a)(2), by striking section 3552(b)(5) and inserting section 3552(b) ; and in subsection (f)— in paragraph (3), by striking section 3532(1) and inserting section 3552(b) ; and in paragraph (5), by striking section 3532(b)(2) and inserting section 3552(b) . Subchapter II of chapter 35 of title 44, United States Code, is amended— in section 3551— in paragraph (4), by striking diagnose and improve and inserting integrate, deliver, diagnose, and improve ; in paragraph (5), by striking and at the end; in paragraph (6), by striking the period at the end and inserting a semicolon; and by adding at the end the following: recognize that each agency has specific mission requirements and, at times, unique cybersecurity requirements to meet the mission of the agency; recognize that each agency does not have the same resources to secure agency systems, and an agency should not be expected to have the capability to secure the systems of the agency from advanced adversaries alone; and recognize that a holistic Federal cybersecurity model is necessary to account for differences between the missions and capabilities of agencies. ; in section 3553— in subsection (a)— in paragraph (5), by striking and at the end; in paragraph (6), by striking the period at the end and inserting ; and ; and by adding at the end the following: promoting, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency, the National Cyber Director, and the Director of the National Institute of Standards and Technology— the use of automation to improve Federal cybersecurity and visibility with respect to the implementation of Federal cybersecurity; and the use of presumption of compromise and least privilege principles, such as zero trust architecture, to improve resiliency and timely response actions to incidents on Federal systems. ; in subsection (b)— in the matter preceding paragraph (1), by inserting and the National Cyber Director after Director ; in paragraph (2)(A), by inserting and reporting requirements under subchapter IV of this chapter after section 3556 ; by redesignating paragraphs

(8)and

(9)as paragraphs

(10)and (11), respectively; and by inserting after paragraph

(7)the following: expeditiously seeking opportunities to reduce costs, administrative burdens, and other barriers to information technology security and modernization for agencies, including through shared services for cybersecurity capabilities identified as appropriate by the Director, in coordination with the Director of the Cybersecurity and Infrastructure Security Agency and other agencies as appropriate; ; in subsection (c)— in the matter preceding paragraph (1)— by striking each year and inserting each year during which agencies are required to submit reports under section 3554(c) ; by inserting , which shall be unclassified but may include 1 or more annexes that contain classified or other sensitive information, as appropriate after a report ; and by striking preceding year and inserting preceding 2 years ; by striking paragraph (1); by redesignating paragraphs (2), (3), and

(4)as paragraphs (1), (2), and (3), respectively; in paragraph (3), as so redesignated, by striking and at the end; and by inserting after paragraph (3), as so redesignated, the following: a summary of the risks and trends identified in the Federal risk assessment required under subsection (i); and ; in subsection (h)— in paragraph (2)— in subparagraph (A), by inserting and the National Cyber Director after in coordination with the Director ; and in subparagraph (D), by inserting , the National Cyber Director, after notify the Director ; and in paragraph (3)(A)(iv), by inserting , the National Cyber Director, after the Secretary provides prior notice to the Director ; by amending subsection

(i)to read as follows: On an ongoing and continuous basis, the Director of the Cybersecurity and Infrastructure Security Agency shall assess the Federal risk posture using any available information on the cybersecurity posture of agencies, and brief the Director and National Cyber Director on the findings of such assessment, including— the status of agency cybersecurity remedial actions for high value assets described in section 3554(b)(7); any vulnerability information relating to the systems of an agency that is known by the agency; analysis of incident information under section 3597; evaluation of penetration testing performed under section 3559A; evaluation of vulnerability disclosure program information under section 3559B; evaluation of agency threat hunting results; evaluation of Federal and non-Federal cyber threat intelligence; data on agency compliance with standards issued under section 11331 of title 40; agency system risk assessments required under section 3554(a)(1)(A); relevant reports from inspectors general of agencies and the Government Accountability Office; and any other information the Director of the Cybersecurity and Infrastructure Security Agency determines relevant. ; and by adding at the end the following: If the Secretary issues an emergency directive under this section, the Director of the Cybersecurity and Infrastructure Security Agency shall submit to the Director, the National Cyber Director, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committees on Oversight and Accountability and Homeland Security of the House of Representatives an update on the status of the implementation of the emergency directive at agencies not later than 7 days after the date on which the emergency directive requires an agency to complete a requirement specified by the emergency directive, and every 30 days thereafter until— the date on which every agency has fully implemented the emergency directive; the Secretary determines that an emergency directive no longer requires active reporting from agencies or additional implementation; or the date that is 1 year after the issuance of the directive. If the Secretary issues a binding operational directive under this section, the Director of the Cybersecurity and Infrastructure Security Agency shall submit to the Director, the National Cyber Director, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committees on Oversight and Accountability and Homeland Security of the House of Representatives an update on the status of the implementation of the binding operational directive at agencies not later than 30 days after the issuance of the binding operational directive, and every 90 days thereafter until— the date on which every agency has fully implemented the binding operational directive; the Secretary determines that a binding operational directive no longer requires active reporting from agencies or additional implementation; or the date that is 1 year after the issuance or substantive update of the directive. If the Director of the Cybersecurity and Infrastructure Security Agency ceases submitting updates required under paragraphs

(1)or

(2)on the date described in paragraph (1)(C) or (2)(C), the Director of the Cybersecurity and Infrastructure Security Agency shall submit to the Director, the National Cyber Director, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committees on Oversight and Accountability and Homeland Security of the House of Representatives a list of every agency that, at the time of the report— has not completed a requirement specified by an emergency directive; or has not implemented a binding operational directive. Not less frequently than once every 3 years, the Director of the Office of Management and Budget shall review the efficacy of the guidance and policy promulgated by the Director in reducing cybersecurity risks, including a consideration of reporting and compliance burden on agencies. The Director of the Office of Management and Budget shall notify the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives of changes to guidance or policy resulting from the review under paragraph (1). The Government Accountability Office shall review guidance and policy promulgated by the Director to assess its efficacy in risk reduction and burden on agencies. When the Director of the National Institute of Standards and Technology issues a proposed standard or guideline pursuant to paragraphs

(2)or

(3)of section 20(a) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278g–3(a) ), the Director of the National Institute of Standards and Technology shall consider developing and, if appropriate and practical, develop specifications to enable the automated verification of the implementation of the controls. The Director of the Cybersecurity and Infrastructure Security Agency shall, upon request, make available Federal risk assessment information under subsection

(i)to the Inspector General of the Department of Homeland Security and the inspector general of any agency that was included in the Federal risk assessment. ; in section 3554— in subsection (a)— in paragraph (1)— by redesignating subparagraphs (A), (B), and

(C)as subparagraphs (B), (C), and (D), respectively; by inserting before subparagraph (B), as so redesignated, the following: on an ongoing and continuous basis, assessing agency system risk, as applicable, by— identifying and documenting the high value assets of the agency using guidance from the Director; evaluating the data assets inventoried under section 3511 for sensitivity to compromises in confidentiality, integrity, and availability; identifying whether the agency is participating in federally offered cybersecurity shared services programs; identifying agency systems that have access to or hold the data assets inventoried under section 3511; evaluating the threats facing agency systems and data, including high value assets, based on Federal and non-Federal cyber threat intelligence products, where available; evaluating the vulnerability of agency systems and data, including high value assets, including by analyzing— the results of penetration testing performed by the Department of Homeland Security under section 3553(b)(9); the results of penetration testing performed under section 3559A; information provided to the agency through the vulnerability disclosure program of the agency under section 3559B; incidents; and any other vulnerability information relating to agency systems that is known to the agency; assessing the impacts of potential agency incidents to agency systems, data, and operations based on the evaluations described in clauses

(ii)and

(v)and the agency systems identified under clause (iv); and assessing the consequences of potential incidents occurring on agency systems that would impact systems at other agencies, including due to interconnectivity between different agency systems or operational reliance on the operations of the system or data in the system; ; in subparagraph (B), as so redesignated, in the matter preceding clause (i), by striking providing information and inserting using information from the assessment required under subparagraph (A), providing information ; in subparagraph (C), as so redesignated— in clause

(ii)by inserting binding before operational ; and in clause (vi), by striking and at the end; and by adding at the end the following: providing an update on the ongoing and continuous assessment required under subparagraph (A)— upon request, to the inspector general of the agency or the Comptroller General of the United States; and at intervals determined by guidance issued by the Director, and to the extent appropriate and practicable using automation, to— the Director; the Director of the Cybersecurity and Infrastructure Security Agency; and the National Cyber Director; ; in paragraph (2)— in subparagraph (A), by inserting in accordance with the agency system risk assessment required under paragraph (1)(A) after information systems ; in subparagraph (D), by inserting , through the use of penetration testing, the vulnerability disclosure program established under section 3559B, and other means, after periodically ; in paragraph (3)(A)— in the matter preceding clause (i), by striking senior agency information security officer and inserting Chief Information Security Officer ; in clause (i), by striking this section and inserting subsections

(a)through

(c); in clause (ii), by striking training and and inserting skills, training, and ; by redesignating clauses

(iii)and

(iv)as

(iv)and (v), respectively; by inserting after clause

(ii)the following: manage information security, cybersecurity budgets, and risk and compliance activities and explain those concepts to the head of the agency and the executive team of the agency; ; and in clause (iv), as so redesignated, by striking information security duties as that official's primary duty and inserting information, computer network, and technology security duties as the Chief Information Security Officers' primary duty ; in paragraph (5), by striking annually and inserting not less frequently than quarterly ; and in paragraph (6), by striking official delegated and inserting Chief Information Security Officer delegated ; and in subsection (b)— by striking paragraph

(1)and inserting the following: the ongoing and continuous assessment of agency system risk required under subsection (a)(1)(A), which may include using guidance and automated tools consistent with standards and guidelines promulgated under section 11331 of title 40, as applicable; ; in paragraph (2)— by striking subparagraph (B); by redesignating subparagraphs

(C)and

(D)as subparagraphs

(B)and (C), respectively; in subparagraph (B), as so redesignated, by striking and at the end; and in subparagraph (C), as so redesignated— by redesignating clauses

(iii)and

(iv)as clauses

(iv)and (v), respectively; by inserting after clause

(ii)the following: binding operational directives and emergency directives issued by the Secretary under section 3553; ; and in clause (iv), as so redesignated, by striking as determined by the agency; and and inserting “as determined by the agency, considering the agency risk assessment required under subsection (a)(1)(A); in paragraph (5)(A), by inserting , including penetration testing, as appropriate, after shall include testing ; by redesignating paragraphs

(7)and

(8)as paragraphs

(8)and (9), respectively; by inserting after paragraph

(6)the following: a secure process for providing the status of every remedial action and unremediated identified system vulnerability of a high value asset to the Director and the Director of the Cybersecurity and Infrastructure Security Agency, using automation and machine-readable data to the greatest extent practicable; ; and in paragraph (8)(C), as so redesignated— by striking clause

(ii)and inserting the following: notifying and consulting with the Federal information security incident center established under section 3556 pursuant to the requirements of section 3594; ; by redesignating clause

(iii)as clause (iv); by inserting after clause

(ii)the following: performing the notifications and other activities required under subchapter IV of this chapter; and ; and in clause (iv), as so redesignated— in subclause (II), by adding and at the end; by striking subclause (III); and by redesignating subclause

(IV)as subclause (III); and in subsection (c)— by redesignating paragraph

(2)as paragraph (5); by striking paragraph

(1)and inserting the following: Not later than 2 years after the date of enactment of the Federal Information Security Modernization Act of 2023 and not less frequently than once every 2 years thereafter, using the continuous and ongoing agency system risk assessment required under subsection (a)(1)(A), the head of each agency shall submit to the Director, the National Cyber Director, the Director of the Cybersecurity and Infrastructure Security Agency, the Comptroller General of the United States, the majority and minority leaders of the Senate, the Speaker and minority leader of the House of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Accountability of the House of Representatives, the Committee on Homeland Security of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Science, Space, and Technology of the House of Representatives, and the appropriate authorization and appropriations committees of Congress a report that— summarizes the agency system risk assessment required under subsection (a)(1)(A); evaluates the adequacy and effectiveness of information security policies, procedures, and practices of the agency to address the risks identified in the agency system risk assessment required under subsection (a)(1)(A), including an analysis of the agency’s cybersecurity and incident response capabilities using the metrics established under section 224(c) of the Cybersecurity Act of 2015 ( 6 U.S.C. 1522(c) ); and summarizes the status of remedial actions identified by inspector general of the agency, the Comptroller General of the United States, and any other source determined appropriate by the head of the agency. Each report submitted under paragraph (1)— shall be, to the greatest extent practicable, in an unclassified and otherwise uncontrolled form; and may include 1 or more annexes that contain classified or other sensitive information, as appropriate. During each year during which a report is not required to be submitted under paragraph (1), the Director shall provide to the congressional committees described in paragraph

(1)a briefing summarizing current agency and Federal risk postures. ; and in paragraph (5), as so redesignated, by striking the period at the end and inserting , including the reporting procedures established under section 11315(d) of title 40 and subsection (a)(3)(A)(v) of this section ; in section 3555— in the section heading, by striking and inserting Annual independent ; Independent in subsection (a)— in paragraph (1), by inserting during which a report is required to be submitted under section 3553(c), after Each year ; in paragraph (2)(A), by inserting , including by performing, or reviewing the results of, agency penetration testing and analyzing the vulnerability disclosure program of the agency after information systems ; and by adding at the end the following: An evaluation under this section may include recommendations for improving the cybersecurity posture of the agency. ; in subsection (b)(1), by striking annual ; in subsection (e)(1), by inserting during which a report is required to be submitted under section 3553(c) after Each year ; in subsection (g)(2)— by striking this subsection shall and inserting “this subsection— shall ; in subparagraph (A), as so designated, by striking the period at the end and inserting ; and ; and by adding at the end the following: identify any entity that performs an independent evaluation under subsection (b). ; and by striking subsection

(j)and inserting the following: The Director, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency, the Chief Information Officers Council, the Council of the Inspectors General on Integrity and Efficiency, and other interested parties as appropriate, shall ensure the development of risk-based guidance for evaluating the effectiveness of an information security program and practices. The risk-based guidance developed under paragraph

(1)shall include— the identification of the most common successful threat patterns; the identification of security controls that address the threat patterns described in subparagraph (A); any other security risks unique to Federal systems; and any other element the Director determines appropriate. ; and in section 3556(a)— in the matter preceding paragraph (1), by inserting within the Cybersecurity and Infrastructure Security Agency after incident center ; and in paragraph (4), by striking 3554(b) and inserting 3554(a)(1)(A) . The table of sections for chapter 35 of title 44, United States Code, is amended by striking the item relating to section 3555 and inserting the following: 3555. Independent evaluation. . Section 226(c) of the Cybersecurity Act of 2015 ( 6 U.S.C. 1524(c) ) is amended— in paragraph (1)(B), in the matter preceding clause (i), by striking annually thereafter and inserting thereafter during the years during which a report is required to be submitted under section 3553(c) of title 44, United States Code ; and in paragraph (2)(B), in the matter preceding clause (i)— by striking annually thereafter and inserting thereafter during the years during which a report is required to be submitted under section 3553(c) of title 44, United States Code ; and by striking the report required under section 3553(c) of title 44, United States Code and inserting that report . Section 20(d)(3)(B) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278g–3(d)(3)(B) ) is amended by striking annual . Chapter 35 of title 44, United States Code, is amended by adding at the end the following: Except as provided in subsection (b), the definitions under sections 3502 and 3552 shall apply to this subchapter. As used in this subchapter: The term appropriate reporting entities means— the majority and minority leaders of the Senate; the Speaker and minority leader of the House of Representatives; the Committee on Homeland Security and Governmental Affairs of the Senate; the Committee on Commerce, Science, and Transportation of the Senate; the Committee on Oversight and Accountability of the House of Representatives; the Committee on Homeland Security of the House of Representatives; the Committee on Science, Space, and Technology of the House of Representatives; the appropriate authorization and appropriations committees of Congress; the Director; the Director of the Cybersecurity and Infrastructure Security Agency; the National Cyber Director; the Comptroller General of the United States; and the inspector general of any impacted agency. The term awardee , with respect to an agency— means— the recipient of a grant from an agency; a party to a cooperative agreement with an agency; and a party to an other transaction agreement with an agency; and includes a subawardee of an entity described in subparagraph (A). The term breach — means the compromise, unauthorized disclosure, unauthorized acquisition, or loss of control of personally identifiable information or any similar occurrence; and includes any additional meaning given the term in policies, principles, standards, or guidelines issued by the Director. The term contractor means a prime contractor of an agency or a subcontractor of a prime contractor of an agency that creates, collects, stores, processes, maintains, or transmits Federal information on behalf of an agency. The term Federal information means information created, collected, processed, maintained, disseminated, disclosed, or disposed of by or for the Federal Government in any medium or form. The term Federal information system means an information system owned, managed, or operated by an agency, or on behalf of an agency by a contractor, an awardee, or another organization. The term intelligence community has the meaning given the term in section 3 of the National Security Act of 1947 ( 50 U.S.C. 3003 ). The term nationwide consumer reporting agency means a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act ( 15 U.S.C. 1681a(p) ). The term vulnerability disclosure means a vulnerability identified under section 3559B. In this section, the term covered breach means a breach— involving not less than 50,000 potentially affected individuals; or the result of which the head of an agency determines that notifying potentially affected individuals is necessary pursuant to subsection (b)(1), regardless of whether— the number of potentially affected individuals is less than 50,000; or the notification is delayed under subsection (d). As expeditiously as practicable and without unreasonable delay, and in any case not later than 45 days after an agency has a reasonable basis to conclude that a breach has occurred, the head of the agency, in consultation with the Chief Information Officer and Chief Privacy Officer of the agency, shall— determine whether notice to any individual potentially affected by the breach is appropriate, including by conducting an assessment of the risk of harm to the individual that considers— the nature and sensitivity of the personally identifiable information affected by the breach; the likelihood of access to and use of the personally identifiable information affected by the breach; the type of breach; and any other factors determined by the Director; and if the head of the agency determines notification is necessary pursuant to paragraph (1), provide written notification in accordance with subsection

(c)to each individual potentially affected by the breach— to the last known mailing address of the individual; or through an appropriate alternative method of notification. Each notification of a breach provided to an individual under subsection (b)(2) shall include, to the maximum extent practicable— a brief description of the breach; if possible, a description of the types of personally identifiable information affected by the breach; contact information of the agency that may be used to ask questions of the agency, which— shall include an e-mail address or another digital contact mechanism; and may include a telephone number, mailing address, or a website; information on any remedy being offered by the agency; any applicable educational materials relating to what individuals can do in response to a breach that potentially affects their personally identifiable information, including relevant contact information for the appropriate Federal law enforcement agencies and each nationwide consumer reporting agency; and any other appropriate information, as determined by the head of the agency or established in guidance by the Director. The head of an agency, in coordination with the Director and the National Cyber Director, and as appropriate, the Attorney General, the Director of National Intelligence, or the Secretary of Homeland Security, may delay a notification required under subsection

(b)or

(e)if the notification would— impede a criminal investigation or a national security activity; cause an adverse result (as described in section 2705(a)(2) of title 18); reveal sensitive sources and methods; cause damage to national security; or hamper security remediation actions. A delay under paragraph

(1)shall be for a period of 60 days and may be renewed. The head of an agency delaying notification under this subsection with respect to a breach exclusively of a national security system shall coordinate such delay with the Secretary of Defense. If an agency determines there is a significant change in the reasonable basis to conclude that a breach occurred, a significant change to the determination made under subsection (b)(1), or that it is necessary to update the details of the information provided to potentially affected individuals as described in subsection (c), the agency shall as expeditiously as practicable and without unreasonable delay, and in any case not later than 30 days after such a determination, notify each individual who received a notification pursuant to subsection

(b)of those changes. Not later than 1 year after the date of enactment of the Federal Information Security Modernization Act of 2023 , and annually thereafter, the head of an agency, in coordination with any official who delays a notification under subsection (d), shall submit to the appropriate reporting entities a report on each delay that occurred during the previous 2 years. The head of an agency may submit the report required under paragraph

(1)as a component of the report submitted under section 3554(c). On a periodic basis, the Director of the Office of Management and Budget shall review, and update as appropriate, breach notification policies and guidelines for agencies. Subject to paragraph (4), the Director of the Office of Management and Budget shall require the head of an agency affected by a covered breach to expeditiously and not later than 30 days after the date on which the agency discovers the covered breach give notice of the breach, which may be provided electronically, to— each congressional committee described in section 3554(c)(1); and the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives. Notice of a covered breach provided by the head of an agency pursuant to paragraph

(2)shall include, to the extent practicable— information about the covered breach, including a summary of any information about how the covered breach occurred known by the agency as of the date of the notice; an estimate of the number of individuals affected by covered the breach based on information known by the agency as of the date of the notice, including an assessment of the risk of harm to affected individuals; a description of any circumstances necessitating a delay in providing notice to individuals affected by the covered breach in accordance with subsection (d); and an estimate of when the agency will provide notice to individuals affected by the covered breach, if applicable. Any agency that is required to provide notice to Congress pursuant to paragraph

(2)due to a covered breach exclusively on a national security system shall only provide such notice to— the majority and minority leaders of the Senate; the Speaker and minority leader of the House of Representatives; the appropriations committees of Congress; the Committee on Homeland Security and Governmental Affairs of the Senate; the Select Committee on Intelligence of the Senate; the Committee on Oversight and Accountability of the House of Representatives; and the Permanent Select Committee on Intelligence of the House of Representatives. Nothing in paragraphs

(1)through

(3)shall be construed to alter any authority of an agency. Nothing in this section shall be construed to— limit— the authority of the Director to issue guidance relating to notifications of, or the head of an agency to notify individuals potentially affected by, breaches that are not determined to be covered breaches or major incidents; the authority of the Director to issue guidance relating to notifications and reporting of breaches, covered breaches, or major incidents; the authority of the head of an agency to provide more information than required under subsection

(b)when notifying individuals potentially affected by a breach; the timing of incident reporting or the types of information included in incident reports provided, pursuant to this subchapter, to— the Director; the National Cyber Director; the Director of the Cybersecurity and Infrastructure Security Agency; or any other agency; the authority of the head of an agency to provide information to Congress about agency breaches, including— breaches that are not covered breaches; and additional information beyond the information described in subsection (g)(3); or any Congressional reporting requirements of agencies under any other law; or limit or supersede any existing privacy protections in existing law. In this section, the term appropriate congressional entities means— the majority and minority leaders of the Senate; the Speaker and minority leader of the House of Representatives; the Committee on Homeland Security and Governmental Affairs of the Senate; the Committee on Commerce, Science, and Transportation of the Senate; the Committee on Oversight and Accountability of the House of Representatives; the Committee on Homeland Security of the House of Representatives; the Committee on Science, Space, and Technology of the House of Representatives; and the appropriate authorization and appropriations committees of Congress Not later than 72 hours after an agency has a reasonable basis to conclude that a major incident occurred, the head of the agency impacted by the major incident shall submit to the appropriate reporting entities a written notification, which may be submitted electronically and include 1 or more annexes that contain classified or other sensitive information, as appropriate. A notification required under paragraph

(1)with respect to a major incident shall include the following, based on information available to agency officials as of the date on which the agency submits the notification: A summary of the information available about the major incident, including how the major incident occurred and the threat causing the major incident. If applicable, information relating to any breach associated with the major incident, regardless of whether— the breach was the reason the incident was determined to be a major incident; and head of the agency determined it was appropriate to provide notification to potentially impacted individuals pursuant to section 3592(b)(1). A preliminary assessment of the impacts to— the agency; the Federal Government; the national security, foreign relations, homeland security, and economic security of the United States; and the civil liberties, public confidence, privacy, and public health and safety of the people of the United States. If applicable, whether any ransom has been demanded or paid, or is expected to be paid, by any entity operating a Federal information system or with access to Federal information or a Federal information system, including, as available, the name of the entity demanding ransom, the date of the demand, and the amount and type of currency demanded, unless disclosure of such information will disrupt an active Federal law enforcement or national security operation. Within a reasonable amount of time, but not later than 30 days after the date on which the head of an agency submits a written notification under subsection (a), the head of the agency shall provide to the appropriate congressional entities an unclassified and written update, which may include 1 or more annexes that contain classified or other sensitive information, as appropriate, on the major incident, based on information available to agency officials as of the date on which the agency provides the update, on— system vulnerabilities relating to the major incident, where applicable, means by which the major incident occurred, the threat causing the major incident, where applicable, and impacts of the major incident to— the agency; other Federal agencies, Congress, or the judicial branch; the national security, foreign relations, homeland security, or economic security of the United States; or the civil liberties, public confidence, privacy, or public health and safety of the people of the United States; the status of compliance of the affected Federal information system with applicable security requirements at the time of the major incident; if the major incident involved a breach, a description of the affected information, an estimate of the number of individuals potentially impacted, and any assessment to the risk of harm to such individuals; an update to the assessment of the risk to agency operations, or to impacts on other agency or non-Federal entity operations, affected by the major incident; and the detection, response, and remediation actions of the agency, including any support provided by the Cybersecurity and Infrastructure Security Agency under section 3594(d), if applicable. If the head of an agency, the Director, or the National Cyber Director determines that there is any significant change in the understanding of the scope, scale, or consequence of a major incident for which the head of the agency submitted a written notification and update under subsections

(b)and (c), the head of the agency shall submit to the appropriate congressional entities a written update that includes information relating to the change in understanding. Each agency shall submit as part of the biennial report required under section 3554(c)(1) a description of each major incident that occurred during the 2-year period preceding the date on which the biennial report is submitted. Any written notification or update required to be submitted under this section— shall be submitted in an electronic format; and may be submitted in a paper format. Any written notification or update required to be submitted under this section— shall be— unclassified; and submitted through unclassified electronic means pursuant to paragraph (1)(A); and may include classified annexes, as appropriate. To achieve consistent and coherent agency reporting to Congress, the National Cyber Director, in coordination with the Director, shall— provide recommendations to agencies on formatting and the contents of information to be included in the reports required under this section, including recommendations for consistent formats for presenting any associated metrics; and maintain a comprehensive record of each major incident notification, update, and briefing provided under this section, which shall— include, at a minimum— the full contents of the written notification or update; the identity of the reporting agency; and the date of submission; and a list of the recipient congressional entities; and be made available upon request to the majority and minority leaders of the Senate, the Speaker and minority leader of the House of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committee on Oversight and Accountability of the House of Representatives. With respect to a major incident that occurs exclusively on a national security system, the head of the affected agency shall submit the notifications and reports required to be submitted to Congress under this section only to— the majority and minority leaders of the Senate; the Speaker and minority leader of the House of Representatives; the appropriations committees of Congress; the appropriate authorization committees of Congress; the Committee on Homeland Security and Governmental Affairs of the Senate; the Select Committee on Intelligence of the Senate; the Committee on Oversight and Accountability of the House of Representatives; and the Permanent Select Committee on Intelligence of the House of Representatives. If a major incident constitutes a covered breach, as defined in section 3592(a), information on the covered breach required to be submitted to Congress pursuant to section 3592(g) may— be included in the notifications required under subsection

(b)or (c); or be reported to Congress under the process established under section 3592(g). Nothing in this section shall be construed to— limit— the ability of an agency to provide additional reports or briefings to Congress; Congress from requesting additional information from agencies through reports, briefings, or other means; any congressional reporting requirements of agencies under any other law; or limit or supersede any privacy protections under any other law. Subject to paragraph

(4)and subsection (b), and in accordance with the applicable requirements pursuant to section 3553(b)(2)(A) for reporting to the Federal information security incident center established under section 3556, the head of each agency shall provide to the Cybersecurity and Infrastructure Security Agency information relating to any incident affecting the agency, whether the information is obtained by the Federal Government directly or indirectly. A provision of information relating to an incident made by the head of an agency under paragraph

(1)shall include, at a minimum— a full description of the incident, including— all indicators of compromise and tactics, techniques, and procedures; an indicator of how the intruder gained initial access, accessed agency data or systems, and undertook additional actions on the network of the agency; and information that would support enabling defensive measures; and other information that may assist in identifying other victims; information to help prevent similar incidents, such as information about relevant safeguards in place when the incident occurred and the effectiveness of those safeguards; and information to aid in incident response, such as— a description of the affected systems or networks; the estimated dates of when the incident occurred; and information that could reasonably help identify any malicious actor that may have conducted or caused the incident, subject to appropriate privacy protections. The Director of the Cybersecurity and Infrastructure Security Agency shall— make incident information provided under paragraph

(1)available to the Director and the National Cyber Director; to the greatest extent practicable, share information relating to an incident with— the head of any agency that may be— impacted by the incident; particularly susceptible to the incident; or similarly targeted by the incident; and appropriate Federal law enforcement agencies to facilitate any necessary threat response activities, as requested; coordinate any necessary information sharing efforts relating to a major incident with the private sector; and notify the National Cyber Director of any efforts described in subparagraph (C). Notwithstanding paragraphs

(1)and (3), each agency operating or exercising control of a national security system shall share information about an incident that occurs exclusively on a national security system with the Secretary of Defense, the Director, the National Cyber Director, and the Director of the Cybersecurity and Infrastructure Security Agency to the extent consistent with standards and guidelines for national security systems issued in accordance with law and as directed by the President. Any information sharing and handling of information under this paragraph shall be appropriately protected consistent with procedures authorized for the protection of sensitive sources and methods or by procedures established for information that have been specifically authorized under criteria established by an Executive order or an Act of Congress to be kept classified in the interest of national defense or foreign policy. In providing information and selecting a method to provide information under subsection (a), the head of each agency shall implement subsection (a)(1) in a manner that provides such information to the Cybersecurity and Infrastructure Security Agency in an automated and machine-readable format, to the greatest extent practicable. Each agency that has a reasonable basis to suspect or conclude that a major incident occurred involving Federal information in electronic medium or form that does not exclusively involve a national security system shall coordinate with— the Cybersecurity and Infrastructure Security Agency to facilitate asset response activities and provide recommendations for mitigating future incidents; and consistent with relevant policies, appropriate Federal law enforcement agencies to facilitate threat response activities. Any contractor or awardee of an agency shall report to the agency if the contractor or awardee has a reasonable basis to conclude that— an incident or breach has occurred with respect to Federal information the contractor or awardee collected, used, or maintained on behalf of an agency; an incident or breach has occurred with respect to a Federal information system used, operated, managed, or maintained on behalf of an agency by the contractor or awardee; a component of any Federal information system operated, managed, or maintained by a contractor or awardee contains a security vulnerability, including a supply chain compromise or an identified software or hardware vulnerability, for which there is reliable evidence of attempted or successful exploitation of the vulnerability by an actor without authorization of the Federal information system owner; or the contractor or awardee has received personally identifiable information, personal health information, or other clearly sensitive information that is beyond the scope of the contract or agreement with the agency from the agency that the contractor or awardee is not authorized to receive. Subject to the guidance issued by the Director pursuant to paragraph (4), any contractor or awardee of an agency shall report to the agency and the Cybersecurity and Infrastructure Security Agency if the contractor or awardee has a reasonable basis to suspect or conclude that a component of any Federal information system operated, managed, or maintained on behalf of an agency by the contractor or awardee on behalf of the agency contains a security vulnerability, including a supply chain compromise or an identified software or hardware vulnerability, that has been reported to the contractor or awardee by a third party, including through a vulnerability disclosure program. As soon as practicable following a report of an incident to an agency by a contractor or awardee under paragraph (1), the head of the agency shall provide, pursuant to section 3594, information about the incident to the Director of the Cybersecurity and Infrastructure Security Agency. Unless a different time for reporting is specified in a contract, grant, cooperative agreement, or other transaction agreement, a contractor or awardee shall— make a report required under paragraph

(1)not later than 1 day after the date on which the contractor or awardee has reasonable basis to suspect or conclude that the criteria under paragraph

(1)have been met; and make a report required under paragraph

(2)within a reasonable time, but not later than 90 days after the date on which the contractor or awardee has reasonable basis to suspect or conclude that the criteria under paragraph

(2)have been met. Following a report of a breach or incident to an agency by a contractor or awardee under paragraph (1), the head of the agency, in consultation with the contractor or awardee, shall carry out the applicable requirements under sections 3592, 3593, and 3594 with respect to the breach or incident. Nothing in subparagraph

(B)shall be construed to allow the negation of the requirements to report vulnerabilities under paragraph

(1)or

(2)through a contract, grant, cooperative agreement, or other transaction agreement. The Director shall issue guidance to agencies relating to the scope of vulnerabilities to be reported under paragraph (2), such as the minimum severity of a vulnerability required to be reported or whether vulnerabilities that are already publicly disclosed must be reported. Not later than 1 year after the date of enactment of the Federal Information Security Modernization Act of 2023 — the Federal Acquisition Regulatory Council shall promulgate regulations, as appropriate, relating to the responsibilities of contractors and recipients of other transaction agreements and cooperative agreements to comply with this section; and the Office of Federal Financial Management shall promulgate regulations under title 2, Code Federal Regulations, as appropriate, relating to the responsibilities of grantees to comply with this section. Not later than 1 year after the date on which the Federal Acquisition Regulatory Council and the Office of Federal Financial Management promulgates regulations under paragraph (1), the head of each agency shall implement policies and procedures, as appropriate, necessary to implement those regulations. The head of each agency head shall notify the Director upon implementation of policies and procedures necessary to implement the regulations promulgated under paragraph (1). Not later than 30 days after the date described in paragraph (2), the Director shall notify the Committee on Homeland Security and Governmental Affairs of the Senate and the Committees on Oversight and Accountability and Homeland Security of the House of Representatives on the status of the implementation by each agency of the regulations promulgated under paragraph (1). Notwithstanding any other provision of this section, a contractor or awardee of an agency that would be required to report an incident or vulnerability pursuant to this section that occurs exclusively on a national security system shall— report the incident or vulnerability to the head of the agency and the Secretary of Defense; and comply with applicable laws and policies relating to national security systems. In this section, the term covered individual means an individual who obtains access to a Federal information system because of the status of the individual as— an employee, contractor, awardee, volunteer, or intern of an agency; or an employee of a contractor or awardee of an agency. The Director of the Cybersecurity and Infrastructure Security Agency, in consultation with the Director, the National Cyber Director, and the Director of the National Institute of Standards and Technology, shall develop best practices to support consistency across agencies in cybersecurity incident response training, including— information to be collected and shared with the Cybersecurity and Infrastructure Security Agency pursuant to section 3594(a) and processes for sharing such information; and appropriate training and qualifications for cyber incident responders. The head of each agency shall develop training for covered individuals on how to identify and respond to an incident, including— the internal process of the agency for reporting an incident; and the obligation of a covered individual to report to the agency any suspected or confirmed incident involving Federal information in any medium or form, including paper, oral, and electronic. The training developed under subsection

(c)may be included as part of an annual privacy, security awareness, or other appropriate training of an agency. The Director of the Cybersecurity and Infrastructure Security Agency shall perform and, in coordination with the Director and the National Cyber Director, develop, continuous monitoring and quantitative and qualitative analyses of incidents at agencies, including major incidents, including— the causes of incidents, including— attacker tactics, techniques, and procedures; and system vulnerabilities, including zero days, unpatched systems, and information system misconfigurations; the scope and scale of incidents at agencies; common root causes of incidents across multiple agencies; agency incident response, recovery, and remediation actions and the effectiveness of those actions, as applicable; lessons learned and recommendations in responding to, recovering from, remediating, and mitigating future incidents; and trends across multiple agencies to address intrusion detection and incident response capabilities using the metrics established under section 224(c) of the Cybersecurity Act of 2015 ( 6 U.S.C. 1522(c) ). The analyses developed under paragraph

(1)shall, to the greatest extent practicable, use machine readable data, automation, and machine learning processes. The Director of the Cybersecurity and Infrastructure Security Agency shall share on an ongoing basis the analyses and underlying data required under this subsection with agencies, the Director, and the National Cyber Director to— improve the understanding of cybersecurity risk of agencies; and support the cybersecurity improvement efforts of agencies. In carrying out subparagraph (A), the Director of the Cybersecurity and Infrastructure Security Agency shall share the analyses— in human-readable written products; and to the greatest extent practicable, in machine-readable formats in order to enable automated intake and use by agencies. This subsection shall not apply to incidents that occur exclusively on national security systems. Not later than 2 years after the date of enactment of this section, and not less frequently than annually thereafter, the Director of the Cybersecurity and Infrastructure Security Agency, in consultation with the Director, the National Cyber Director and the heads of other agencies, as appropriate, shall submit to the appropriate reporting entities a report that includes— a summary of causes of incidents from across the Federal Government that categorizes those incidents as incidents or major incidents; the quantitative and qualitative analyses of incidents developed under subsection (a)(1) on an agency-by-agency basis and comprehensively across the Federal Government, including— a specific analysis of breaches; and an analysis of the Federal Government’s performance against the metrics established under section 224(c) of the Cybersecurity Act of 2015 ( 6 U.S.C. 1522(c) ); and an annex for each agency that includes— a description of each major incident; the total number of incidents of the agency; and an analysis of the agency’s performance against the metrics established under section 224(c) of the Cybersecurity Act of 2015 ( 6 U.S.C. 1522(c) ). The Director of the Cybersecurity and Infrastructure Security Agency shall make a version of each report submitted under subsection

(b)publicly available on the website of the Cybersecurity and Infrastructure Security Agency during the year during which the report is submitted. The publication requirement under paragraph

(1)shall not apply to a portion of a report that contains content that should be protected in the interest of national security, as determined by the Director, the Director of the Cybersecurity and Infrastructure Security Agency, or the National Cyber Director. The exemption under paragraph

(2)shall not apply to any version of a report submitted to the appropriate reporting entities under subsection (b). Subject to subparagraph (B), in making a report publicly available under paragraph (1), the Director of the Cybersecurity and Infrastructure Security Agency shall sufficiently compile information so that no specific incident of an agency can be identified. The Director of the Cybersecurity and Infrastructure Security Agency may include information that enables a specific incident of an agency to be identified in a publicly available report— with the concurrence of the Director and the National Cyber Director; in consultation with the impacted agency; and in consultation with the inspector general of the impacted agency. The analysis required under subsection

(a)and each report submitted under subsection

(b)shall use information provided by agencies under section 3594(a). During any year during which the head of an agency does not provide data for an incident to the Cybersecurity and Infrastructure Security Agency in accordance with section 3594(a), the head of the agency, in coordination with the Director of the Cybersecurity and Infrastructure Security Agency and the Director, shall submit to the appropriate reporting entities a report that includes the information described in subsection

(b)with respect to the agency. Notwithstanding any other provision of this section, the Secretary of Defense, in consultation with the Director, the National Cyber Director, the Director of National Intelligence, and the Director of Cybersecurity and Infrastructure Security shall annually submit a report that includes the information described in subsection

(b)with respect to national security systems, to the extent that the submission is consistent with standards and guidelines for national security systems issued in accordance with law and as directed by the President, to— the majority and minority leaders of the Senate, the Speaker and minority leader of the House of Representatives; the Committee on Homeland Security and Governmental Affairs of the Senate; the Select Committee on Intelligence of the Senate; the Committee on Armed Services of the Senate; the Committee on Appropriations of the Senate; the Committee on Oversight and Accountability of the House of Representatives; the Committee on Homeland Security of the House of Representatives; the Permanent Select Committee on Intelligence of the House of Representatives; the Committee on Armed Services of the House of Representatives; and the Committee on Appropriations of the House of Representatives. A report required under paragraph

(1)may be submitted in a classified form. Not later than 1 year after the later of the date of enactment of the Federal Information Security Modernization Act of 2023 and the most recent publication by the Director of guidance to agencies regarding major incidents as of the date of enactment of the Federal Information Security Modernization Act of 2023 , the Director shall develop, in coordination with the National Cyber Director, and promulgate guidance on the definition of the term major incident for the purposes of subchapter II and this subchapter. With respect to the guidance issued under subsection (a), the definition of the term major incident shall— include, with respect to any information collected or maintained by or on behalf of an agency or a Federal information system— any incident the head of the agency determines is likely to result in demonstrable harm to— the national security interests, foreign relations, homeland security, or economic security of the United States; or the civil liberties, public confidence, privacy, or public health and safety of the people of the United States; any incident the head of the agency determines likely to result in an inability or substantial disruption for the agency, a component of the agency, or the Federal Government, to provide 1 or more critical services; any incident the head of the agency determines substantially disrupts or substantially degrades the operations of a high value asset owned or operated by the agency; any incident involving the exposure to a foreign entity of sensitive agency information, such as the communications of the head of the agency, the head of a component of the agency, or the direct reports of the head of the agency or the head of a component of the agency; and any other type of incident determined appropriate by the Director; stipulate that the National Cyber Director, in consultation with the Director and the Director of the Cybersecurity and Infrastructure Security Agency, may declare a major incident at any agency, and such a declaration shall be considered if it is determined that an incident— occurs at not less than 2 agencies; and is enabled by— a common technical root cause, such as a supply chain compromise, or a common software or hardware vulnerability; or the related activities of a common threat actor; stipulate that, in determining whether an incident constitutes a major incident under the standards described in paragraph (1), the head of the agency shall consult with the National Cyber Director; and stipulate that the mere report of a vulnerability discovered or disclosed without a loss of confidentiality, integrity, or availability shall not on its own constitute a major incident. Not later than 60 days after the date on which the Director first promulgates the guidance required under subsection (a), and not less frequently than once during the first 90 days of each evenly numbered Congress thereafter, the Director shall provide to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committees on Oversight and Accountability and Homeland Security of the House of Representatives a briefing that includes— an evaluation of any necessary updates to the guidance; an evaluation of any necessary updates to the definition of the term major incident included in the guidance; and an explanation of, and the analysis that led to, the definition described in paragraph (2). . The table of sections for chapter 35 of title 44, United States Code, is amended by adding at the end the following: SUBCHAPTER IV—Federal system incident response 3591. Definitions. 3592. Notification of breach. 3593. Congressional and Executive Branch reports. 3594. Government information sharing and incident response. 3595. Responsibilities of contractors and awardees. 3596. Training. 3597. Analysis and report on Federal incidents. 3598. Major incident definition. .

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