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                                                       Calendar No. 718
105th Congress                                                   Report
                                SENATE

 2d Session                                                     105-412
_______________________________________________________________________


 
                COMPUTER SECURITY ENHANCEMENT ACT OF 1997

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                               H.R. 1903





 October 13 (legislative day, October 2), 1998.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       one hundred fifth congress

                             second session

                     JOHN McCAIN, Arizona, Chairman

TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas            Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon

                       John Raidt, Staff Director

                       Mark Buse, Policy Director

                  Martha P. Allbright, General Counsel

     Ivan A. Schlager, Democratic Chief Counsel and Staff Director

             James S. W. Drewry, Democratic General Counsel


105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-412
_______________________________________________________________________


               COMPUTER SECURITY ENHANCEMENT ACT OF 1997
                                _______
                                

 October 13 (legislative day, October 2), 1998.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                        [To accompany H.R. 1903]

    The Committee on Commerce, Science, and Transportation, to 
which was referred H.R. 1903, ``A Bill to amend the National 
Institute of Standards and Technology Act to enhance the 
ability of the National Institute of Standards and Technology 
to improve computer security, and for other purposes'', having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                          Purpose of the Bill

  H.R. 1903, as reported, would reinforce the National 
Institute of Standards and Technology's (NIST) role of ensuring 
the security of unclassified information in Federal computer 
systems; promote technology solutions based on private sector 
offerings to protect the security of Federal computer systems; 
and provide for the assessment of the capabilities of 
information security products incorporating cryptography that 
are generally available outside the United States.

                          Background and Needs

  The Computer Security Act of 1987 (P.L. 100-235) was passed 
by Congress following several years of hearings and debate. 
Motivation for the Act was sparked by the escalating use of 
computer systems by the Federal government and the requirement 
to ensure the security and privacy of unclassified, sensitive 
information in those systems. A broad range of Federal agencies 
had assumed responsibility for various facets of computer 
security and privacy, prompting concerns that Federal computer 
security policy lacked focus, unity, and consistency, and 
contributed to a duplication of effort.
  In 1985, the Office of Management and Budget (OMB) issued 
Circular A-130, Management of Federal Information Resources, 
superseding Circular A-71. Appendix III of Circular A-130, 
Security of Federal Automated Information Systems, defined a 
minimum set of controls for the security of Federal automated 
information systems.
  Following enactment of the Computer Security Act of 1987, OMB 
updated Appendix III of OMB Circular A-130 to assist agencies 
in implementing the Act (OMB Bulletin 88-16). The Appendix was 
updated again in 1990, and was completely revised incorporating 
the earlier updates in February 1996.
  Among the issues that shaped debate over the Computer 
Security Act was the role of the National Security Agency (NSA) 
versus NIST in developing technical standards and guidelines 
for Federal computer privacy and security. Congress did not 
want the national security community (through NSA's role as 
National Manager for technical computer standards and 
guidelines) to have too strong a role in establishing the 
computer standards for civilian agencies. Hence, Congress gave 
NIST responsibility for developing standards and guidelines for 
civilian Federal computer systems, drawing upon the technical 
advice and assistance from NSA.
  Other issues included the need for greater training of 
personnel involved in Federal computer security, and the scope 
of the legislation in terms of defining a ``Federal computer 
system.'' The Act defines a Federal computer system not only as 
a ``computer system operated by a Federal agency,'' but also 
``operated by a contractor of a Federal agency or other 
organization processing information (using a computer system) 
on behalf of the Federal government to accomplish a Federal 
function,'' such as state governments disbursing Federal funds.

                          Legislative History

  The Computer Security Enhancement Act of 1997 was introduced 
by Representative Sensenbrenner on June 17, 1997, was amended 
and reported favorably by the House Committee on Science, was 
passed by the House of Representatives on September 16, 1997, 
and was referred to the Commerce Committee on September 17, 
1997. A Science, Technology, and Space Subcommittee hearing, 
with Senator Frist presiding, was held on February 10, 1998 at 
2:30 p.m.
  On October 1, 1998, the Committee met in open executive 
session and, by a voice vote, ordered H.R. 1903 to be reported 
without amendment.

                      Summary of Major Provisions

  The reported bill updates the Computer Security Act to take 
into account the evolution of computer networks and their use 
by both the Federal government and the private sector. 
Specifically, H.R. 1903:
          1. Requires NIST to encourage the acquisition of 
        commercial off-the-shelf (COTS) products to meet 
        civilian agency computer security needs. This measure 
        should reduce the cost and improve the availability of 
        computer security technologies for Federal agencies;
          2. Enhances the role of the independent Computer 
        System Security and Privacy Advisory Board in NIST's 
        decision-making process by requiring the Board, which 
        is made up of representatives from industry, Federal 
        agencies and other external organizations, to make 
        formal recommendations regarding proposed security 
        standards and provide guidance to NIST on emerging 
        computer security issues;
          3. Clarifies that NIST standards and guidelines are 
        to be used for the acquisition of computer security 
        technologies for the Federal government's computer 
        systems containing unclassified information and are not 
        intended as restrictions on the production or use of 
        encryption by the private sector;
          4. Updates the Computer Security Act by including 
        references to computer networking which has become an 
        increasingly important component of the Federal 
        government information technology system;
          5. Establishes a new computer science fellowship 
        program for graduate and undergraduate students 
        studying computer security. The bill sets aside 
        $250,000 for the first year and $500,000 for the second 
        year, to enable NIST to finance computer security 
        fellowships under an existing NIST grant program;
          6. Requires the National Research Council (NRC) to 
        conduct a study to assess the desirability of public 
        key infrastructures. The NRC would also research the 
        technologies required for the establishment of such key 
        infrastructures;
          7. Requires the Under Secretary of Commerce for 
        Technology to actively promote the use of technologies 
        by the Federal Government that will enhance the 
        security of Federal communications networks and 
        information in electronic form; to establish a 
        clearinghouse of information available to the public on 
        information security threats; and to promote 
        development of a market driven consensus standards-
        based infrastructure that will enable more widespread 
        use of encryption technologies for confidentiality and 
        authentication; and
          8. Establishes a National Panel for Digital 
        Signatures for the purpose of exploring all relevant 
        factors associated with the development of a national 
        digital signature infrastructure based on uniform 
        standards and of developing model practices and 
        standards associated with certification authorities.

                            Estimated Costs

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 8. 1998.
Hon. John McCain,
Chairman, Committee on Commerce, Science and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1903, the Computer 
Security Enhancement Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark Hadley.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               Congressional Budget Office Cost Estimate

H.R. 1903--Computer Security Enhancement Act of 1997

    Summary: H.R. 1903 would direct the National Institute of 
Standards and Technology (NIST), located in the Department of 
Commerce, to develop policies to improve computer security for 
federal computer systems. CBO estimates that implementing the 
act would cost $13 million over the 1999-2003 period, assuming 
appropriation of the necessary amount.
    H.R. 1903 would authorize the appropriation of about $2 
million to NIST to (1) enable the Computer System Security and 
Privacy Advisory Board (CSSPAB) administered by NIST to conduct 
pubic forums to identify emerging issues related to computer 
security, (2) contract for a study by the National Research 
Council on computer security issues, and (3) award computer 
security fellowships. In addition, CBO estimates that 
implementing other provisions of the legislation would require 
expenditures of about $11 million over the 1999-2003 period.
    H.R. 1903 would not affect direct spending or receipts; 
therefore, pay-as-you go procedures would not apply. H.R. 1903 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act (UMRA) and would 
not affect the budgets of state, local, or tribal governments.
    Estimated cost to the Federal Government: For the purposes 
of this estimate, CBO assumes that H.R. 1903 will be enacted 
near the start of fiscal year 1999, and that the estimated 
amounts necessary to implement the act will be appropriated for 
each fiscal year. Outlays have been projected on the basis of 
historical spending patterns for NIST and information provided 
by the agency. The estimated budgetary impact of H.R. 1903 is 
shown in the following table.

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal years, in millions of dollars--
                                                          ------------------------------------------------------
                                                              1999       2000       2001       2002       2003
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATIONS
Estimated Authorization Level............................          5          2          2          2          2
Estimated Outlays........................................          4          3          2          2          2
----------------------------------------------------------------------------------------------------------------

    NIST received an appropriation of $571 million for fiscal 
year 1998, and its 1998 outlays are estimated to be about $617 
million.
    The costs of this legislation fall within budget function 
370 (commerce and housing credit).
    Basis of estimate: Based on information from NIST, CBO 
estimates that enacting H.R. 1903 would result in total costs 
to the government of about $13 million over the 1999-2003 
period. Of that amount, about $2 million is specifically 
authorized in the act for the activities of the CSSPAB and the 
National Research Council, as well as for the computer security 
fellowship program at NIST.
    CBO estimates that NIST would need additional 
appropriations of between $2 million and $3 million in each 
fiscal year over the 1999-2003 period to implement the 
remaining provisions of H.R. 1903, including testing computer 
security products for use by federal agencies, providing 
information on computer security threats to the public, and 
establishing a National Panel for Digital Signatures.
    H.R. 1903 directs that the sums necessary to implement this 
act, including the $2 million explicitly authorized in it, 
should be derived from amounts authorized to be appropriated in 
H.R. 1274, the National Institute of Standards and Technology 
Authorization Act of 1997. That legislation has been passed by 
the House of Representatives but has not yet been enacted into 
law.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 1903 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous CBO estimate: On August 12, 1997, CBO transmitted 
a cost estimate for H.R. 1903, as ordered reported by the House 
Committee on Science on July 29, 1997. That version of the 
legislation would require NIST to evaluate commercial 
encryption products subject to export restrictions, at an 
estimated cost of about $5 million a year. CBO estimated five-
year costs of $35 million for the House-reported bill, as 
compared to the five-year costs of $13 million for the Senate 
version.
    Estimate prepared by: Mark Hadley.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

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

                       number of persons covered

  The Committee believes that the bill will not subject any 
individuals or businesses affected by the bill to any 
additional regulation.

                            economic impact

  This legislation will not have an adverse economic impact on 
the Nation.

                                privacy

  This legislation will not have an adverse impact on the 
privacy of individuals. It is expected that the legislation 
will increase the level of security in Federal computer systems 
which may contain information on individuals and businesses.

                               paperwork

  This legislation will not increase the paperwork requirements 
for private individuals or businesses.

                      Section-by-Section Analysis

Section 1. Short title

  This section cites the short title of the bill as the 
``Computer Security Enhancement Act of 1997.''

Section 2. Findings and purposes

  This section details the findings and purposes of the bill.

Section 3. Voluntary standards for public key management infrastructure

  This section amends section 20 of the NIST Act by authorizing 
NIST to assist, upon request from the private sector, in 
establishing voluntary interoperable standards, guidelines, and 
associated methods and techniques to facilitate and expedite 
the establishment of non-Federal public key management 
infrastructures that can be used to communicate with and 
conduct transactions with the Federal Government.

Section 4. Security of Federal computers and networks

  This section further amends section 20 of the NIST Act by 
authorizing NIST to:
          1. provide guidance and assistance to Federal 
        agencies in the protection of interconnected computer 
        systems and coordinate Federal response efforts related 
        to unauthorized access to Federal computer systems; and
          2. perform evaluations and tests of information 
        technologies to assess security vulnerabilities and of 
        commercially available security products for their 
        suitability for use by Federal agencies for protecting 
        sensitive information in computer systems.

Section 5. Computer security implementation

  This section makes another amendment to section 20 of the 
NIST Act, to specify the approaches to be taken by NIST in 
carrying out its existing responsibilities for developing 
standards and guidelines for the security and privacy of 
sensitive information in Federal computer systems. 
Specifically, NIST would be required to emphasize technology-
neutral policy guidelines, and must actively promote 
commercially available products to provide for the security and 
privacy requirements of Federal computer systems. Also, NIST is 
required to participate in implementations of encryption 
technologies to develop necessary standards and guidelines for 
Federal computer systems, including assessing the desirability 
of and the costs associated with establishing and managing a 
key recovery infrastructure for Federal Government information.

Section 6. Computer security review, public meetings, and information

  This section also amends section 20 of the NIST Act, 
requiring NIST to solicit recommendations of the Computer 
System Security and Privacy Advisory Board regarding standards 
and guidelines that are under consideration for submittal to 
the Secretary of Commerce for promulgation as regulations and 
include such recommendations with any subsequent submission to 
the Secretary. Funds are also authorized for the Board 
($1,000,000 for FY 1998 and $1,030,000 for FY 1999) to enable 
it to act as a forum for public discussion on emerging issues 
related to computer security, privacy and cryptography. The 
Board is authorized to convene public meetings on those 
subjects and to publish reports, digests, and summaries for 
public distribution.

Section 7. Limitation on participation in requiring encryption 
        standards

  This section amends section 20 of the NIST Act by prohibiting 
NIST from promulgating, enforcing, or otherwise adopting 
standards, or carrying out activities or policies, for the 
Federal establishment of encryption standards required for use 
in computer systems other than Federal Government computer 
systems.

Section 8. Miscellaneous amendments

  This section makes technical and conforming amendments to 
section 20 of the NIST Act, as well as a language modification 
which reasserts NIST's role as the lead agency for handling 
standards for civilian agency computer security.

Section 9. Federal computer system security training

  This section amends section 5(b) of the Computer Security Act 
of 1987 by adding an emphasis on protecting sensitive 
information in Federal databases and Federal computer sites 
that are accessible through public networks.

Section 10. Computer Security Fellowship Program

  This section authorizes funds, subject to provisions of 
section 18 of the NIST Act, for the Director of NIST to provide 
fellowships for research on computer security to students at 
institutions of higher learning ($250,000 for FY 1998 and 
$500,000 FY 1999).

Section 11. Study of public key infrastructure by the National Research 
        Council

  This section requires the Secretary of Commerce, within 90 
days of enactment of this bill, to enter into a contract with 
the National Research Council of the National Academy of 
Sciences to conduct a study of public key infrastructures for 
use by individuals, businesses, and government. All Federal 
agencies are required to cooperate fully with the National 
Research Council in conducting the study, including access by 
properly cleared individuals to classified information if 
necessary. The Secretary is required to transmit the report, 
unclassified, by the National Research Council to the Committee 
on Science of the House of Representatives and the Committee on 
Commerce, Science and Transportation of the Senate. $450,000 is 
authorized for FY 1998 and is to remain available until 
expended.

Section 12. Promotion of national information security

  This section requires the Under Secretary of Commerce for 
Technology to:
          1. promote the more widespread use of applications of 
        cryptography and associated technologies to enhance the 
        security of the Nation's information infrastructure;
          2. establish a central clearinghouse for the 
        collection by the Federal Government and dissemination 
        to the public of information to promote awareness of 
        information security threats; and
          3. promote the development of the national, 
        standards-based infrastructure needed to support 
        commercial and private uses of encryption technologies 
        for confidentiality and authentication.

Section 13. Digital signature infrastructure

  This section requires the Under Secretary of Commerce for 
Technology to establish a National Policy Panel for Digital 
Signatures. Its purpose would be to explore all relevant 
factors associated with the development of a national digital 
signature infrastructure based on uniform standards that will 
enable the widespread availability and use of digital signature 
systems. The panel would be composed of nongovernmental and 
governmental technical and legal experts on the implementation 
of digital signatures, individuals from companies offering 
digital signature products and services, state officials, 
including offices from States, and representative individuals 
from the interested public. The Technology Administration of 
the Department of Commerce shall appoint the National Policy 
Panel and provide necessary administrative support.

Section 14. Source of authorizations

  This section indicates that amounts authorized to be 
appropriated by this bill are from amounts authorized by the 
NIST Authorization Act of 1997.

                        Changes in Existing Law

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

           NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT

                           [15 U.S.C. 278G-3]

  Sec. 20. (a) The Institute shall--
          (1) have the mission of developing standards, 
        guidelines, and associated methods and techniques for 
        computer systems;
          (2) except as described in paragraph (3) of this 
        subsection (relating to security standards), develop 
        uniform standards and guidelines for Federal computer 
        systems, except those systems excluded by section 2315 
        of title 10, United States Code, or section 3502(9) of 
        title 44, United States Code;
          (3) have responsibility within the Federal Government 
        for developing technical, management, physical, and 
        administrative standards and guidelines for the cost-
        effective security and privacy of sensitive information 
        in Federal computer systems except--
                  (A) those systems excluded by section 2315 of 
                title 10, United States Code, or section 
                3502(9) of title 44, United States Code; and
                  (B) those systems which are protected at all 
                times by procedures established for information 
                which has been specifically authorized under 
                criteria established by an Executive order or 
                an Act of Congress to be kept secret in the 
                interest of national defense or foreign policy, 
                the primary purpose of which standards and 
                guidelines shall be to control loss and 
                unauthorized modification or disclosure of 
                sensitive information in such systems and to 
                prevent computer-related fraud and misuse;
          (4) submit standards and guidelines developed 
        pursuant to paragraphs (2) and (3) of this subsection, 
        along with recommendations as to the extent to which 
        these should be made compulsory and binding, to the 
        Secretary of Commerce for promulgation under section 
        5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1441);
          (5) develop guidelines for use by operators of 
        Federal computer systems that contain sensitive 
        information in training their employees in security 
        awareness and accepted security practice, as required 
        by section 5 of the Computer Security Act of 1987; and
          (6) develop validation procedures for, and evaluate 
        the effectiveness of, standards and guidelines 
        developed pursuant to paragraphs (1), (2), and (3) of 
        this subsection through research and liaison with other 
        government and private agencies.
    (b) In fulfilling subsection (a) of this section, the 
Institute is authorized--
          (1) to assist the private sector, upon request, in 
        using and applying the results of the programs and 
        activities under this section;
          (2) upon request from the private sector, to assist 
        in establishing voluntary interoperable standards, 
        guidelines, and associated methods and techniques to 
        facilitate and expedite the establishment of non-
        Federal management infrastructures for public keys that 
        can be used to communicate with and conduct 
        transactions with the Federal Government;
          [(2)] (3) as requested, to provide to operators of 
        Federal computer systems technical assistance in 
        implementing the standards and guidelines promulgated 
        pursuant to section 5131 of the Clinger-Cohen Act of 
        1996 (40 U.S.C. 1441);
          [(3)] (4) to assist, as appropriate, the Office of 
        Personnel Management in developing regulations 
        pertaining to training, as required by section 5 of the 
        Computer Security Act of 1987;
          (5) to provide guidance and assistance to Federal 
        agencies in the protection of interconnected computer 
        systems and to coordinate Federal response efforts 
        related to unauthorized access to Federal computer 
        systems;
          (6) to perform evaluations and tests of--
                  (A) information technologies to assess 
                security vulnerabilities; and
                  (B) commercially available security products 
                for their suitability for use by Federal 
                agencies for protecting sensitive information 
                in computer systems;
          [(4)] (7) to perform research and to conduct studies, 
        as needed, to determine the nature and extent of the 
        vulnerabilities of, and to devise techniques for the 
        cost-effective security and privacy of sensitive 
        information in Federal computer systems; and
          [(5)] (8) to coordinate closely with other agencies 
        and offices (including, but not limited to, the 
        Departments of Defense and Energy, the National 
        Security Agency, the General Accounting Office, the 
        Office of Technology Assessment, and the Office of 
        Management and Budget) to the extent that such 
        coordination will improve computer security and to the 
        extent necessary for improving such security for 
        Federal computer systems--
                  (A) to assure maximum use of all existing and 
                planned programs, materials, studies, and 
                reports relating to computer systems security 
                and privacy, in order to avoid unnecessary and 
                costly duplication of effort; and
                  (B) to assure, to the maximum extent 
                feasible, that standards developed pursuant to 
                subsection (a)(3) and (5) are consistent and 
                compatible with standards and procedures 
                developed for the protection of information in 
                Federal computer systems which is authorized 
                under criteria established by Executive order 
                or an Act of Congress to be kept secret in the 
                interest of national defense or foreign policy.
  (c) In carrying out subsection (a)(3), the Institute shall--
          (1) emphasize the development of technology-neutral 
        policy guidelines for computer security practices by 
        the Federal agencies;
          (2) actively promote the use of commercially 
        available products to provide for the security and 
        privacy of sensitive information in Federal computer 
        systems; and
          (3) participate in implementations of encryption 
        technologies in order to develop required standards and 
        guidelines for Federal computer systems, including 
        assessing the desirability of and the costs associated 
        with establishing and managing key recovery 
        infrastructures for Federal Government information.
  (d)(1) The Institute shall solicit the recommendations of the 
Computer System Security and Privacy Advisory Board, 
established by section 21, regarding standards and guidelines 
that are being considered for submittal to the Secretary of 
Commerce in accordance with subsection (a)(4). No standards or 
guidelines shall be submitted to the Secretary prior to the 
receipt by the Institute of the Board's written 
recommendations. The recommendations of the Board shall 
accompany standards and guidelines submitted to the Secretary.
  (2) There are authorized to be appropriated to the Secretary 
of Commerce $1,000,000 for fiscal year 1998 and $1,030,000 for 
fiscal year 1999 to enable the Computer System Security and 
Privacy Advisory Board, established by section 21, to identify 
emerging issues related to computer security, privacy, and 
cryptography and to convene public meetings on those subjects, 
receive presentations, and publish reports, digests, and 
summaries for public distribution on those subjects.
  [(c)] (e) For the purposes of--
          (1) developing standards and guidelines for the 
        protection of sensitive information in Federal computer 
        systems under subsections (a)(1) and (a)(3), and
          (2) performing research and conducting studies under 
        subsection [(b)(5),] (b)(8),
the Institute [shall draw upon] may draw upon computer system 
technical security guidelines developed by the National 
Security Agency to the extent that the National Bureau of 
Standards determines that such guidelines are consistent with 
the requirements for protecting sensitive information in 
Federal computer systems.
  [(d)] (f) As used in this section--
          (1) the term ``computer system''--
                  (A) means any equipment or interconnected 
                system or subsystems of equipment that is used 
                in the automatic acquisition, storage, 
                manipulation, management, movement, control, 
                display, switching, interchange, transmission, 
                or reception, of data or information; and
                  (B) includes--
                          (i) computers and computer networks;
                          (ii) ancillary equipment;
                          (iii) software, firmware, and similar 
                        procedures;
                          (iv) services, including support 
                        services; and
                          (v) related resources;
          (2) the term ``Federal computer system'' means a 
        computer system operated by a Federal agency or by a 
        contractor of a Federal agency or other organization 
        that processes information (using a computer system) on 
        behalf of the Federal Government to accomplish a 
        Federal function;
          (3) the term ``operator of a Federal computer 
        system'' means a Federal agency, contractor of a 
        Federal agency, or other organization that processes 
        information using a computer system on behalf of the 
        Federal Government to accomplish a Federal function;
          (4) the term ``sensitive information'' means any 
        information, the loss, misuse, or unauthorized access 
        to or modification of which could adversely affect the 
        national interest or the conduct of Federal programs, 
        or the privacy to which individuals are entitled under 
        section 552a of title 5, United States Code (the 
        Privacy Act), but which has not been specifically 
        authorized under criteria established by an Executive 
        order or an Act of Congress to be kept secret in the 
        interest of national defense or foreign policy; and
          (5) the term ``Federal agency'' has the meaning given 
        such term by section 3(b) of the Federal Property and 
        Administrative Services Act of 1949.
  (g) The Institute shall not promulgate, enforce, or otherwise 
adopt standards, or carry out activities or policies, for the 
Federal establishment of encryption standards required for use 
in computer systems other than Federal Government computer 
systems.

           *       *       *       *       *       *       *


                     COMPUTER SECURITY ACT OF 1987

SEC. 5. FEDERAL COMPUTER SYSTEM SECURITY TRAINING.

  (a) In General.--Each Federal agency shall provide for the 
mandatory periodic training in computer security awareness and 
accepted computer security practice of all employees who are 
involved with the management, use, or oration of each Federal 
computer system within or under the supervision of that agency. 
Such training shall be--
          (1) provided in accordance with the guidelines 
        developed pursuant to section 20(a)(5) of the National 
        Bureau of Standards Act (as added by section 3 of this 
        Act), and in accordance with the regulations issued 
        under subsection (c) of this section for Federal 
        civilian employees; or
          (2) provided by an alternative training program 
        approved by the head of that agency on the basis of a 
        determination that the alternative training program is 
        at least as effective in accomplishing the objectives 
        of such guidelines and regulations.
  (b) Training Objectives.--Training under this section shall 
be started within 60 days after the issuance of the regulations 
described in subsection (c). Such training shall be designed--
          (1) to enhance employees' awareness of the threats to 
        and vulnerability of computer systems; [and]
          (2) to encourage the use of improved computer 
        security [practices.] practices; and
          (3) to include emphasis on protecting sensitive 
        information in Federal databases and Federal computer 
        sites that are accessible through public networks.
  (c) Regulations.--Within six months after the date of 
enactment of this Act, the Director of the Office of Personnel 
Management shall issue regulations prescribing the procedures 
and scope of the training to be provided Federal civilian 
employees under subsection (a) and the manner in which such 
training is to be carried out.