White House draft bill expands DHS cyber responsibilities

April 15, 2011  

By Jason Miller
Executive Editor
Federal News Radio

http://federalnewsradio.com/index.php?nid=35&sid=2345684

Under a White House plan, the Homeland Security Department will have 
far-reaching oversight over all civilian agency computer networks.

The proposal would codify much of the administration's memo from July 2010 
expanding DHS's cyber responsibilities for civilian networks.

The White House, however, is taking those responsibilities further, according 
to a source familiar with the document. The administration drafted a 
legislative proposal to give DHS many, if not all, of the same authorities for 
the .gov networks that the Defense Department has for the .mil networks.

Federal News Radio recently viewed a draft copy of the legislative proposal.

"I have to question why the Executive branch is writing legislation," said the 
source, who requested anonymity because they were not authorized to talk about 
it. "This is not a proposal or white paper like the White House usually sends 
to Capitol Hill. This is the actual legislation."

The source said the 100-page document is going through interagency review. DHS 
sent the document around to agencies late last Friday and asked for comments by 
Monday. The source said few agencies had time to take a hard look at the 
document, especially in light of the possible  government shutdown.

Sources on Capitol Hill and in government confirmed the White House is working 
on such a proposal.

A DHS spokesman said the agency doesn't comment on pending legislation.

Incorporates Senate cyber bill, OMB memo

The bill would bring together legislative proposals by Sens. Joseph Lieberman 
(I-Conn.), Susan Collins (R-Maine) and Tom Carper (D-Del.), as well as Office 
of Management and Budget's memo from July 2010 expanding DHS's authorities.

"The cybersecurity legislation being developed in Congress is a large, complex 
bill with wide-ranging implications, and several Senate committees are involved 
in its drafting," said committee spokeswoman Leslie Phillips. "The two primary 
committees of jurisdiction - Homeland Security and Commerce - completed the 
bulk of their work last August and ironed out several remaining differences by 
the end of March this year. However, other committees and the White House are 
critical to the completion of this bill."

In a statement, Lieberman said, "We have been waiting with great anticipation 
for the White House to weigh in on the best way to protect the American people 
from catastrophic cyber attacks. If the White House is on the same path we're 
on, the Senate should be able to approve comprehensive cybersecurity 
legislation this year."

Collins said in a floor statement in February about the new bill that the 
legislation would make DHS a strong partner in the process of securing agency 
networks, but the White House will be the central point for all cybersecurity 
across the government.

The Lieberman, Collins and Carper bill would establish a National Center for 
Cybersecurity and Communications in DHS.

"It would be located within the Department of Homeland Security to elevate and 
strengthen the Department's cyber security capabilities and authorities," 
Collins said. "This Center also would be led by a Senate-confirmed director. 
The Cyber Center, anchored at DHS, will close the coordination gaps that 
currently exist in our disjointed federal cyber security efforts. For 
day-to-day operations, the Center would use the resources of DHS, and the 
Center Director would report directly to the Secretary of Homeland Security. On 
interagency matters related to the security of federal networks, the director 
would regularly advise the President - a relationship similar to the director 
of the National Counterterrorism Center on counterterrorism matters or the 
chairman of the Joint Chiefs of Staff on military issues. These dual 
relationships would give the director sufficient rank and stature to interact 
effectively with the heads of other departments and agencies, and with the 
private se
 ctor."

A second source said the proposal also gives DHS much of the Federal 
Information Security Management Act (FISMA) authorities that currently fall 
under OMB, such as policy development and issuance, and the creation of 
performance measures, guidelines and training.

The first source said the proposal actually goes further than previous bills 
and memos. The source said the DHS secretary would have broad authorities and 
oversight responsibilities similar to what Gen. Keith Alexander has with DoD's 
U.S. Cyber Command.

DHS oversees all civilian cybersecurity

The bill authorizes DHS, in coordination with OMB, "to exercise primary 
responsibility of operational aspects of IT security in agencies" that is 
consistent with OMB guidance. The DHS secretary "shall oversee agency security 
implementations, the implementation of policies" and compliance with policy and 
regulatory requirements.

DHS and OMB also would issue "compulsory and binding directives" oversee the 
implementation of agency information security policies, review agency 
information security programs, designate a person to receive information on 
security threats and issues and address incident response.

The bill exempts national security and DoD systems from DHS oversight.

Under one version of comprehensive cybersecurity legislation, DHS would get 
four senior vice president level executives for cybersecurity. But this latest 
proposal from the White House would change that by adopting DoD's hiring 
authorities.

The first source said DHS could make direct hires, set compensation rates as 
necessary and pay additional benefits and incentives. DHS also would establish 
a scholarship program for employees to pursue college or advanced degrees in 
cybersecurity, and it reactivates the industry-to-government and 
government-to-industry exchange program for cybersecurity professionals.

The authorities in the bill are similar to those the Office of Personnel 
Management approved for DHS in September 2009. DHS received Schedule A 
authorities for cyber positions.

The proposal also would give DHS a significant role in cyber-related 
procurements. The source said the language in the bill is "vague" about what 
kind of role DHS will play.

Google provision around data centers?

Additionally, the source said there is a provision toward the end of the 
document that could have far-reaching effects.

The provision states: "Prohibition, no law, rule, regulation or order or other 
administrative action of any state or political subdivision shall require a 
business entity to house a data center in such state or political subdivision 
there of as a condition to certify, licensure or approval in relating to 
operation of such entity."

The source said the provision means the government can't stop a company from 
doing business in a state, but if the state is doing a procurement, they can't 
tell the business to locate a data center in their state.

The provision also defines what a data center is and says the language will 
"promote efficiency and innovation"

The source called it the "Google provision" since the search engine giant hosts 
its data in centers around the world.

There are some exceptions, such as, if the data center is being used only for 
sate business and not shared among users across business sectors.

In addition to federal cybersecurity, the bill goes into details about cyber 
crime and critical infrastructure security.

For instance under cyber crime, the proposal would expand the Computer Fraud 
and Abuse Act to include a series of criminal offensives for cyber attacks and 
confidentiality abuses. It also would expand the Racketeer Influenced and 
Corrupt Organizations (RICO) Act to establish criminal penalties for cyber 
crime.

Under critical infrastructure protection, the bill lets the DHS secretary 
decide what is critical infrastructure, assess audit systems for cyber 
resilience and create an industry of third-party accreditors and evaluators to 
assess private sector owners and operators systems for meeting cybersecurity 
requirements.

The proposal also requires the development of voluntary consensus standards by 
industry, academic and government experts for each sector.

The bill states that owners and operators of critical infrastructure shall 
develop cybersecurity measures, and a senior accountable official must sign and 
attest to their implementation. The bill adds that form must remain on file and 
available for review, inspection and evaluations by third-party evaluators.

The bill continues to move through interagency review and there is no stated 
timetable for moving it to the Hill for formal consideration, sources say.

This story is part of Federal News Radio's daily Cybersecurity Update brought 
to you by Tripwire. For more cybersecurity news, click here.
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