COMPUTER SECURITY ENHANCEMENT ACT OF 1997 HOUSE OF REPRESENTATIVES 105th Congress 1st Session Report 105-243 September 3, 1997

Congressional Documents

39 006

105 th Congress

Report

HOUSE OF REPRESENTATIVES

1st Session

105 243

COMPUTER SECURITY ENHANCEMENT ACT OF 1997

September 3, 1997.--Committed to the Committee of the Whole House on

the State of the Union and ordered to be printed

Mr. Sensenbrenner, from the Committee on Science, submitted the

following

R E P O R T

[To accompany H.R. 1903]

[Including cost estimate of the Congressional Budget Office]

The Committee on Science, to whom was referred the bill (H.R. 1903)

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, report favorably thereon with an amendment and

recommend that the bill as amended do pass.

C O N T E N T S

II.

Purpose of the Bill

III.

Background and Need for the Legislation

IV.

Summary of Hearings

Committee Actions

VI.

Summary of Major Provisions of the Bill

VII.

Section-by-Section Analysis (By Title and Section) and Committee Views

VIII.

Committee Cost Estimate

IX.

Congressional Budget Office Cost Estimate

Compliance with Public Law 104 4

XI.

Committee Oversight Findings and Recommendations

XII.

Oversight Findings and Recommendations by the Committee on

Government Reform and Oversight

XIII.

Constitutional Authority Statement

XIV.

Federal Advisory Committee Statement

XV.

Congressional Accountability Act

XVI.

Changes in Existing Law Made by the Bill, as Reported

XVII.

Committee Recommendations

XVIII.

Proceedings of Subcommittee Markup

XIX.

Proceedings of Full Committee Markup

I. AMENDMENT

The amendment is as follows:

Strike out all after the enacting clause and insert in lieu thereof

the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Computer Security Enhancement Act of

1997''.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings .--The Congress finds the following:

(1) The National Institute of Standards and Technology has

responsibility for developing standards and guidelines needed to ensure

the cost-effective security and privacy of sensitive information in

Federal computer systems.

(2) The Federal Government has an important role in ensuring the

protection of sensitive, but unclassified, information controlled by

Federal agencies.

(3) Technology that is based on the application of cryptography

exists and can be readily provided by private sector companies to ensure

the confidentiality, authenticity, and integrity of information

associated with public and private activities.

(4) The development and use of encryption technologies should be

driven by market forces rather than by Government imposed requirements.

(5) Federal policy for control of the export of encryption

technologies should be determined in light of the public availability of

comparable encryption technologies outside of the United States in order

to avoid harming the competitiveness of United States computer hardware

and software companies.

(b) Purposes .--The purposes of this Act are to--

(1) reinforce the role of the National Institute of Standards and

Technology in ensuring the security of unclassified information in

Federal computer systems;

(2) promote technology solutions based on private sector offerings

to protect the security of Federal computer systems; and

(3) provide the assessment of the capabilities of information

security products incorporating cryptography that are generally

available outside the United States.

SEC. 3. VOLUNTARY STANDARDS FOR PUBLIC KEY MANAGEMENT INFRASTRUCTURE.

Section 20(b) of the National Institute of Standards and Technology

Act (15 U.S.C. 278g 3(b)) is amended--

(1) by redesignating paragraphs (2), (3), (4), and (5) as paragraphs

(3), (4), (7), and (8), respectively; and

(2) by inserting after paragraph (1) the following new paragraph:

``(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;''.

SEC. 4. SECURITY OF FEDERAL COMPUTERS AND NETWORKS.

Section 20(b) of the National Institute of Standards and Technology

Act (15 U.S.C. 278g 3(b)), as amended by section 3 of this Act, is

further amended by inserting after paragraph (4), as so redesignated by

section 3(1) of this Act, the following new paragraphs:

``(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;''.

SEC. 5. COMPUTER SECURITY IMPLEMENTATION.

Section 20 of the National Institute of Standards and Technology Act

(15 U.S.C. 278g 3) is further amended--

(1) by redesignating subsections (c) and (d) as subsections (f) and

(g), respectively; and

(2) by inserting after subsection (b) the following new subsection:

``(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.''.

SEC. 6. COMPUTER SECURITY REVIEW, PUBLIC MEETINGS, AND INFORMATION.

Section 20 of the National Institute of Standards and Technology Act

(15 U.S.C. 278g 3), as amended by this Act, is further amended by

inserting after subsection (c), as added by section 5 of this Act, the

following new subsection:

``(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.''.

SEC. 7. EVALUATION OF CAPABILITIES OF FOREIGN ENCRYPTION.

Section 20 of the National Institute of Standards and Technology Act

(15 U.S.C. 278g 3), as amended by this Act, is further amended by

inserting after subsection (d), as added by section 6 of this Act, the

following new subsection:

``(e)(1) If the Secretary has imposed, or proposes to impose, export

restrictions on a product that incorporates encryption technologies, the

Institute may accept technical evidence from the commercial provider of

the product offered to indicate that encryption technologies, embodied

in the form of software or hardware, that are offered and generally

available outside the United States for use, sale, license, or transfer

(whether for consideration or not) provide stronger participation for

privacy of computer data and transmissions of information in digital

form than the encryption technologies incorporated in the commercial

provider's product.

``(2) Within 30 days after accepting technical evidence from a

commercial provider under paragraph (1), the Institute shall evaluate

the accuracy and completeness of the technical evidence and transmit to

the Secretary, and to the Committee on Science of the House of

Representatives and the Committee on Commerce, Science, and

Transportation of the Senate, a report containing the results of that

evaluation. The Institute may obtain assistance from other Federal and

private sector entities in carrying out evaluations under this

paragraph.

``(3) Not later than 180 days after the date of the enactment of the

Computer Security Enhancement Act of 1997, the Institute shall develop

standard procedures and tests for determining the capabilities of

encryption technologies, and shall provide information regarding those

procedures and tests to the public.

``(4) The Institute may require a commercial provider seeking

evaluation under this subsection to follow procedures and carry out

tests developed by the Institute pursuant to paragraph (3).''.

SEC. 8. LIMITATION ON PARTICIPATION IN REQUIRING ENCRYPTION STANDARDS.

Section 20 of the National Institute of Standards and Technology Act

(15 U.S.C. 278g 3), as amended by this Act, is further amended by adding

at the end the following new subsection:

``(h) 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.''.

SEC. 9. MISCELLANEOUS AMENDMENTS.

Section 20 of the National Institute of Standards and Technology Act

(15 U.S.C. 278g 3), as amended by this Act, is further amended--

(1) in subsection (b)(8), as so redesignated by section 3(1) of this

Act, by inserting ``to the extent that such coordination will improve

computer security and to the extent necessary for improving such

security for Federal computer systems'' after ``Management and

Budget)'';

(2) in subsection (f), as so redesignated by section 5(1) of this

Act, by striking ``shall draw upon'' and inserting in lieu thereof ``may

draw upon'';

(3) in subsection (f)(2), as so redesignated by section 5(1) of this

Act, by striking ``(b)(5)'' and inserting in lieu thereof ``(b)(8)'';

and

(4) in subsection (g)(1)(B)(i), as so redesignated by section 5(1)

of this Act, by inserting ``and computer networks'' after ``computers''.

SEC. 10. FEDERAL COMPUTER SYSTEM SECURITY TRAINING.

Section 5(b) of the Computer Security Act of 1987 (49 U.S.C. 759

note) is amended--

(1) by striking ``and'' at the end of paragraph (1);

(2) by striking the period at the end of paragraph (2) and inserting

in lieu thereof ``; and''; and

(3) by adding at the end the following new paragraph:

``(3) to include emphasis on protecting sensitive information in

Federal databases and Federal computer sites that are accessible through

public networks.''.

SEC. 11. COMPUTER SECURITY FELLOWSHIP PROGRAM.

There are authorized to be appropriated to the Secretary of Commerce

$250,000 for fiscal year 1998 and $500,000 for fiscal year 1999 for the

Director of the National Institute of Standards and Technology for

fellowships, subject to the provisions of section 18 of the National

Institute of Standards and Technology Act (15 U.S.C. 278g 1), to support

students at institutions of higher learning in computer security.

Amounts authorized by this section shall not be subject to the

percentage limitation stated in such section 18.

SEC. 12. STUDY OF PUBLIC KEY INFRASTRUCTURE BY THE NATIONAL

RESEARCH COUNCIL.

(a) Review by National Research Council .--Not later than 90 days

after the date of the enactment of this Act, the Secretary of Commerce

shall 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.

(b) Contents .--The study referred to in subsection (a) shall--

(1) assess technology needed to support public key infrastructures;

(2) assess current public and private plans for the deployment of

public key infrastructures;

(3) assess interoperability, scalability, and integrity of private

and public entities that are elements of public key infrastructures;

(4) make recommendations for Federal legislation and other Federal

actions required to ensure the national feasibility and utility of

public key infrastructures; and

(5) address such other matters as the National Research Council

considers relevant to the issues of public key infrastructure.

Government shall cooperate fully with the National Research Council in

its activities in carrying out the study under this section, including

access by properly cleared individuals to classified information if

necessary.

(d) Report .--Not later than 18 months after the date of the

enactment of this Act, the Secretary of Commerce shall transmit to the

Committee on Science of the House of Representatives and the Committee

on Commerce, Science, and Transportation of the Senate a report setting

forth the findings, conclusions, and recommendations of the National

Research Council for public policy related to public key infrastructures

for use by individuals, businesses, and government. Such report shall be

submitted in unclassified form.

(e) Authorization of Appropriations .--There are authorized to be

appropriated to the Secretary of Commerce $450,000 for fiscal year 1998,

to remain available until expended, for carrying out this section.

SEC. 13. PROMOTION OF NATIONAL INFORMATION SECURITY.

The Under Secretary of Commerce for Technology shall--

(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.

SEC. 14. DIGITAL SIGNATURE INFRASTRUCTURE.

(a) National Policy Panel.--The Under Secretary of Commerce for

Technology shall establish a National Policy Panel for Digital

Signatures. The Panel shall be composed of nongovernment and government

technical and legal experts on the implementation of digital signature

technologies, individuals from companies offering digital signature

products and services, State officials, including officials from States

which have enacted statutes establishing digital signature

infrastructures, and representative individuals from the interested

public.

(b) Responsibilities.--The Panel established under subsection (a)

shall serve as a forum for exploring 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 shall develop--

(1) model practices and procedures for certification authorities to

ensure accuracy, reliability, and security of operations associated with

issuing and managing certificates;

(2) standards to ensure consistency among jurisdictions that license

certification authorities; and

(3) audit standards for certification authorities.

Technology shall provide administrative support to the Panel established

under subsection (a) of this section as necessary to enable the Panel to

carry out its responsibilities.

SEC. 15. SOURCE OF AUTHORIZATIONS.

Amounts authorized to be appropriated by this Act shall be derived

from amounts authorized under the National Institute of Standards and

Technology Authorization Act of 1997.

II. PURPOSE OF THE BILL

The purpose of this bill is to update the Computer Security Act of

1987 to improve computer security for federal civilian agencies and the

private sector.

III. BACKGROUND AND NEED FOR THE LEGISLATION

The Computer Security Act of 1987 gave authority over computer and

communication security standards in federal civilian agencies to NIST.

The Computer Security Enhancement Act of 1997 strengthens that authority

and directs funds to implement practices and procedures which will

ensure that the federal standards setting process remains open to public

input and analysis and that will provide guidance and assistance on

protection of electronic information to federal civilian agencies. H.R.

1903 promotes open and public discussion, as well as the use of

commercially available products to meet the information security needs

of the federal civilian agencies.

The need for this renewed emphasis on the security of federal

civilian agencies is underscored by the General Accounting Office's

(GAO) recently released High Risk Series. The series ``Report on

Information Management and Technology'' highlighted information security

as a government-wide, high-risk issue. The report stated that despite

their sensitive and critical functions, federal systems and data are not

being adequately protected.

Since June of 1993, the GAO has issued over 30 reports describing

serious information security weaknesses at major federal agencies. In

September of 1996 GAO reported that, during the previous 2 years,

serious information security control weaknesses had been reported for 10

of the 15 largest federal agencies. For half of these agencies, the

weakness had been reported repeatedly for 5 years or longer.

Much has changed in the 10 years since the Computer Security Act of

1987 was enacted. The proliferation of networked systems, the Internet,

and web access are just a few of the dramatic advances in information

technology that have occurred. The Computer Security Enhancement Act of

1997 addresses these changes and provides for greater security for the

federal civilian agencies that base their procurement decisions for

computer security hardware and software on NIST standards. H.R. 1903

also promotes the use of commercially available products and encourages

an open exchange of information between NIST and the private sector.

This renewed emphasis on open discussion should help facilitate better

security in all communities.

H.R. 1903 also emphasizes the need for strong encryption. The

widespread use of strong encryption will promote safety, security, and

privacy.

IV. SUMMARY OF HEARINGS

The Subcommittee on Technology held a briefing on February 11, 1997,

on the subject of secure electronic communications. The Subcommittee

heard testimony from Daniel Geer, Director of Engineering, Open Market,

Inc., Cambridge, Massachusetts; Daniel Lynch, Chairman, CyberCash,

Redwood City, California; Tsutomu Shimomura, Senior Fellow, San Diego

Supercomputing Center, La Jolla, California; Geoff Mulligan, Senior

Staff Engineer, Security Products Group, SunSoft, Colorado Springs,

Colorado; Daniel Farmer, Independent Security Consultant, Berkeley,

California; and Eugene Spafford, Associate Professor of Computer

Sciences, Purdue University, West Lafayette, Indiana.

In his testimony, Mr. Geer stressed that the conversion from a

physical to an electronic world is not only well underway, but also

unstoppable. He cited a need for rules to ensure and govern this new

world. Before substantial investments produce diverse and conflicting

interests, Congress should provide rules that are well understood and

enable the ``game'' to develop at its own pace. Early action, by

Congress, would produce the most attractive environment for the

electronic world to develop. He stated that ``there is really very

little time remaining for Congress to itself choose whether to lead,

follow or get out of the way. Where it is crucial that government lead

is in setting the rules of the game.'' Later he went on to note: ``Do

not let anyone make it more complex or argue that we need to go slow or

that we first have to let foreign governments or domestic law

enforcement catch up. By the time that happens, you will definitely be

somewhere between follow and get out of the way.''

Mr. Lynch testified that the Internet system thrives like a

biological element, where people add value, hopes, and ideas, then wait

to see if other people like them. While considerably lowering the cost

of the communication infrastructure, the Internet has also increased the

visibility of activity that had once been conducted over dedicated

lines. Lynch suggested the elimination of the ``old laws'' that

protected us against the ``bad guys,'' in order that Internet business

might flourish. He envisions the Internet as an invaluable tool for

business in the future, and does not want this to be lost to foreign

markets.

While providing examples of communications security problems, Mr.

Shimomura testified on the inherent risks that are posed to Internet
users as a result of the evolved system that currently exists. Shimomura

cited, as a cause of the pernicious security problems, a failure of

Internet users to recognize the fact that much of their data (stored and

communicated) is at risk. The technologies to better protect users does

exist; however, full-scale deployment has not yet occurred.

Mr. Mulligan discussed the three major types of security attacks:

interception (where one attempts to gain valuable information by

monitoring communications), intrusion (a break-in to change or steal

information), and denial of service (interaction that serves to restrict

the access to one's own information). In addition, he provided a summary

of the primary means of protection currently available: the firewall (a

perimeter defense that restricts entry access to a network, yet allows

unlimited freedom once inside) and the ``sandbox'' (application

containment that restricts certain executions from being performed by a

user). Mr. Mulligan stressed that plentiful opportunities to violate

communication security exist, and maintained that protection can only be

ensured by ``unconstrained'' freedom to use any and all available

security technologies.

Mr. Farmer commented on the current state of Internet security.

Revisiting the widespread security compromise that was caused by the

Internet Morris Worm program, Farmer stressed the need for a paradigm

shift among all computer users, from a prevailing blindness to all

issues of computer security, to an acceptance of the fact that one must

protect his property (both physical and virtual.)

Finally, Mr. Spafford cited a lack of funding support, from both the

government and industry, for educational endeavors in the area of

computer security. Of the 5,500 Ph.D.s granted in computer science and

engineering, a scant 16 pertained to computer security, of which only

50% were given to U.S. nationals. Mr. Spafford urged Congress to provide

graduate fellowships that not only promoted the study of computer

security, but also enticed the students to remain in academia upon the

completion of their degree program.

On Thursday, June 19, 1997, the Subcommittee on Technology conducted

a legislative hearing on H.R. 1903, the Computer Security Enhancement

Act of 1997. Testimony was given by the Honorable Gary Bachula, Acting

Under Secretary for Technology, Technology Administration, U.S.

Department of Commerce, Washington, DC; Dr. Whitfield Diffie,

Distinguished Engineer, Sun Microsystems, Mountain View, California; Mr.

Stephen T. Walker, President and CEO, Trusted Information Systems, Inc.,

Glenwood, Maryland; Mr. James Bidzos, President and CEO, RSA Data

Security, Redwood City, California; and Marc Rotenberg, Esquire,

Director, Electronic Privacy Information Center, Washington, DC.

In his testimony, Mr. Bachula described an electronic world of the

future, whereby one keystroke, performed by a consumer, would initiate

an elaborate, electronically controlled process, resulting in the

delivery of a custom good to the end user. This would require a

``reliable, secure and trustworthy environment . . . We need to have

access to public information but also assurance that the wrong people

will not have access to classified or private information.'' In

addressing the sections of the bill, Mr. Bachula, speaking on behalf of

the Administration, strongly supported portions of the bill that augment

NIST's role in assisting the establishment of non-federal public key

management infrastructures, as well as providing guidance and assistance

to federal agencies. Support of Section 5 was also given. The intent of

Section 6 and Section 8 was supported, yet Mr. Bachula suggested that

the language needed to be improved. Mr. Bachula indicated that the

Administration opposed Section 7, which gives NIST a role in the

assessment of the strength of foreign encryption technologies thereby

providing guidance to DoC in granting export licenses for domestic

encryption products.

Mr. Diffie testified on the historical development of the

government's role in computer security. In tracing the development of

the interaction between National Security Agency (NSA) and NIST, Mr.

Diffie spoke very highly of the intent of the Computer Security Act of

1987; however, he noted that the provision which called for NIST to

consult with NSA, later modified by an inter-agency Memorandum of

Understanding, resulted in a separation of authority (NIST) and funding

(NSA). Mr. Diffie highlighted the problems caused by the NIST/NSA

interaction, and contended that NIST autonomy would eliminate this

predicament. Citing its timeliness, Mr. Diffie strongly supported H.R.

1903, which he stated would bring back the spirit of the Computer

Security Act of 1987.

Mr. Walker also testified in support of H.R. 1903. He strongly

supported the provisions that strengthened and augmented the role of the

Computer System Security and Privacy Advisory Board (CSSPAB), which was

created by the 1987 Act. He pointed out the public good that was done by

CSSPAB allowing public debate on the widely criticized Clipper

initiative and defended H.R. 1903's enhancement of the board's

interaction with NIST. Mr. Walker, though, was opposed to the portions

of the bill that direct NIST to conduct evaluations of encryption

technology, both domestically (Section 4, paragraph 6) and

internationally (Section 7). He questioned the ability of NIST to

conduct such evaluations, not because of inadequacies of NIST, rather,

the fact that ``no one in government or industry has been able to

perform effectively at this point'' such an evaluation.

Mr. Bidzos disagreed with Mr. Walker's contention regarding

evaluation of encryption technologies. He stated that the provisions of

section 7 were both doable and needed. Also, Mr. Bidzos praised the

bill's provisions that increased the private sector's role in

establishing computer security of civilian government agencies. While

implementation of the 1987 Act missed the opportunity for NIST to work

closely with industry, ``we have an opportunity now to correct it. And,

I think that's what [H.R.] 1903 does.'' Concluding, Mr. Bidzos found no

shortcomings with the bill, and strongly supported its contents and

timing.

Mr. Rotenberg concluded oral testimony with an overall appraisal of

H.R. 1903. Citing the merits of the 1987 Act, Mr. Rotenberg supported

the bill as powerful and timely legislation that furthers the intent of

its predecessor, while eliminating the inefficacy induced by NIST's

Memorandum of Understanding with NSA for consultation on computer

security matters under the Act.

Mr. Rotenberg stated that the Advisory Board (CSSPAB) has played a

pivotal role since passage of the Computer Security Act of 1987 in

providing public input into the decision-making process. He stated that

he felt it appropriate to build on the success of the Board and ensure

that it continues to have the resources necessary to evaluate important

concerns about computer security and privacy. He made clear that the

Board has played a critical role since passage of the Computer Security

Act, and continues to provide the critical link between the public user

community and the agency.

On the issue of Section 7 of the bill, he was extremely supportive.

He stated that H.R. 1903 recognizes that the United States is not

grappling with the issues of data security and privacy in a vacuum.

Advanced knowledge of foreign encryption technologies would enable the

Secretary of Commerce to analyze export restrictions while possessing a

firm understanding of the availability of strong foreign encryption

products.

He expressed the hope that an awareness of technologies available

outside the United States will influence decision-makers to adopt a

policy on encryption that will help U.S. computer hardware and software

manufacturers to be competitive in what is essentially a global market.

It is simply not wise to make recommendations without consideration of

the full range of relevant data.

He testified that the experience with the Digital Signature Standard

confirms his belief that the best technological development is driven by

openness and public accountability. He stated that H.R. 1903 creates a

framework that will ensure a responsive, open decision-making process

that will promote technical standards compatible with the interests of

civilian agencies and the commercial sector.

Finally, Mr. Rotenberg complimented the National Research Council's

(NRC's) work in reviewing cryptography policy in the 1996 Cryptography's

Role In Securing The Information Society report, and suggested that the

proposed study (Section 12) be expanded to include: ``new techniques to

promote privacy and security on-line, techniques to promote anonymous or

pseudo-anonymous commerce, and communications that are now being

explored in other countries.''

He stated that it is very important for the NRC to look at privacy

enhancing technologies that may enable the growth of electronic commerce

on the Internet and strengthen public confidence in Internet

communication. Similar work has been carried out in other countries, but

the United States has still not looked closely at the significant

opportunities that such technologies provide. A report from the NRC,

setting out the basic research and policy issues with some preliminary

recommendations, would be very useful.

In addition, Mr. Willis Ware submitted written testimony for the

record on behalf of the Computer System Security and Privacy Advisory

Board (CSSPAB), which he chairs. In reviewing the 1987 Computer Security

Act 10 years after its enactment, CSSPAB heard presentations from a

variety of government and private sector representatives who criticized

the Act's implementation, rather than its structure or wording. For

example, Mr. Ware noted that NIST is not providing federal civilian

agencies the support they need to ensure computer security. Ware stated

that NIST should focus on providing ``general system-level security

advice and overall assistance to civil agencies,'' not just technical

assistance in implementing standards and guidelines. In June 1997,

CSSPAB adopted two resolutions. The first calls for NIST to increase its

assistance to civilian federal agencies. The second recommends that NIST

develop a repository for data from civilian agencies on computer

security and privacy violations.

V. COMMITTEE ACTIONS

On Monday, July 29, 1997, the Committee on Science, Subcommittee on

Technology convened to mark up H.R. 1903, The Computer Security

Enhancement Act of 1997, 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. Two amendments were offered at the markup. Both amendments

were adopted by voice vote.

1. Mrs. Morella offered an amendment to increase the amount of

funding for the Computer Security Fellowships Program, as administered

by the National Institute of Standards and Technology, from $250,000 to

$500,000 in Fiscal Year 1999. The amendment was adopted by a voice vote.

2. Mr. Gordon offered an amendment to further increase public

awareness of security threats and to accelerate corrective action by

using the Technology Administration in the Commerce Department to

actively promote greater use of cryptography and associated technologies

by the private sector. The amendment also establishes a national forum

for coordination of policies for building a digital signature

infrastructure by establishing a national panel, under the auspices of

the Technology Administration, to develop model practices and

procedures, uniformity among jurisdictions that license certification

authorities, and uniform audit standards for certification authorities.

The amendment was adopted by a voice vote.

With a quorum present, Mr. Gordon moved that H.R. 1903, as amended,

be reported. The motion was adopted by a voice vote.

On July 29, 1997, the Committee on Science convened to mark up H.R.

1903. An amendment by Representatives Morella and Gordon was offered and

adopted by voice vote.

1. Mrs. Morella and Mr. Gordon offered an amendment which consisted

of the text of H.R. 1903 as reported by the Subcommittee on Technology.

The amendment was agreed to by a voice vote.

With a quorum present, Mr. Gordon moved that H.R. 1903, as amended,

be reported. The motion was adopted by a voice vote.

VI. SUMMARY OF MAJOR PROVISIONS OF THE BILL

The Computer Security Enhancement Act of 1997 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. Requires NIST to develop standard tests and procedures to

determine the capabilities of encryption technologies. Through such

tests and procedures, NIST may assist private sector entities, by

request, in evaluating the relative strength of foreign encryption

products, thereby defusing some of the concerns associated with the

export of domestically produced encryption products.

4. The bill clarifies that NIST standards and guidelines are to be

used for the acquisition of computer security technologies for the

Federal Government and are not intended as restrictions on the

production or use of encryption by the private sector.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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. The Technology Administration

of the Department of Commerce shall appoint the National Panel and

provide necessary administrative support.

VII. SECTION-BY-SECTION ANALYSIS (BY TITLE AND SECTION) AND COMMITTEE

VIEWS

Section 1. Short Title

Cites this title as the ``Computer Security Enhancement Act of 1997.''

Section 2. Findings and Purposes

The Committee finds:

(1) The National Institute of Standards and Technology has

responsibility for developing standards and guidelines needed to ensure

the cost-effective security and privacy of sensitive information in the

federal computer systems.

(2) The Federal Government has an important role in ensuring the

protection of sensitive, but unclassified, information controlled by

federal agencies.

(3) Technology that is based on the application of cryptography

exists and can be readily provided by private sector companies to ensure

the confidentiality, authenticity, and integrity of information

associated with public and private activities.

(4) The development and use of encryption technologies should be

driven by market forces rather than by Government imposed requirements.

(5) Federal policy for control of the export of encryption

technologies should be determined in light of the public availability of

comparable encryption technologies outside of the United States in order

to avoid harming the competitiveness of United States computer hardware

and software companies.

The purposes of this Act are to:

(1) reinforce the role of the National Institute of Standards and

Technology in ensuring the security of unclassified information in

federal computer systems;

(2) promote technology solutions based on private sector offerings to

protect the security of federal computer systems; and

(3) provide the assessment of capabilities of information security

products incorporating cryptography that are generally available outside

the United States.

Section 3. Voluntary Standards for Public Key Management Infrastructures

Section 20 of the NIST Act is amended 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.

Committee views

Historically, NIST has been most effective when helping the

commercial sector, in a consensus process, to establish standards. The

Committee supports such efforts, so long as they are fully voluntary and

reflect a true consensus process.

Section 4. Security of Federal Computers and Networks

Section 20 of the NIST Act is amended 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.

Committee views

The Committee continues to support NIST's role in evaluating the

products used for information technology security for the federal

civilian agencies. It is important that NIST remain the lead agency in

securing the information technology infrastructure of federal civilian

agencies. NIST must place greater emphasis on its duties in this area.

NIST should provide guidance and assistance to federal civilian agencies

in helping to secure their information technology systems. To do this,

NIST must evaluate and perform tests to determine which of the

commercially available security products available are the least

vulnerable and the best suited to protect electronic data.

Section 5. Computer Security Implementation

Section 20 of the NIST Act is amended 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

must emphasize technology-neutral policy guidelines for computer

security practices, and must actively promote commercially available

products for meeting the security and privacy requirements of federal

agencies. Also, NIST is tasked 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.

Committee views

The Committee affirms NIST's lead role in setting policy guidelines

for computer security practices implemented by federal civilian

agencies. The Committee encourages the greater use of commercially

available security products by federal agencies by directing NIST to

promote the use of such products whenever feasible and appropriate.

The Committee is not convinced of the necessity of the establishment

of a national key management infrastructure. In the process of looking

at a national key management infrastructure it is also necessary to

examine whether one is needed at all. The Committee believes more

information is needed about the costs and vulnerabilities of key

management infrastructures. The NRC study will provide valuable

information on the costs and vulnerabilities of such an infrastructure.

The Committee expects NIST to participate in the implementation of

encryption technologies in the Federal Government, including assessment

of the desirability of, and

the costs associated with, establishing and managing key

recovery infrastructures for Federal Government information.

Section 6. Computer Security Review, Public Meetings, and Information

Section 20 of the NIST Act is amended by requiring NIST to solicit

recommendations from 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 Fiscal Year 1998 and $1,030,000 for Fiscal Year 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 and to publish reports and other

information for public distribution.

Committee views

The Committee believes that an open and transparent system should be

used by NIST in promulgating federal standards. The Computer System

Security and Privacy Advisory Board (CSSPAB), acting as an independent

board, is uniquely positioned to make recommendations to the Department

of Commerce. This Board will be charged with submitting its

recommendations along with NIST's proposals to the Secretary of Commerce

for promulgation as regulations. The Board is being provided with

resources and specific direction by the Committee to allow it to operate

in an independent and autonomous fashion to pursue public policy issues

that are important for assuring the security and integrity of computing

and network systems, and the information they contain. The Board is

authorized to convene public meetings and to publish reports and other

information for public distribution.

The CSSPAB is to report directly to the Committee on Science of the

House of Representatives and the Committee on Commerce, Science, and

Transportation of the Senate. The Committee emphasizes that CSSPAB

reports do not require prior clearance by OMB or the Commerce Department

before they are transmitted to the Congressional Committees.

Section 7. Evaluation Of Capabilities of Foreign Encryption

Section 20 of the NIST Act is amended to enable NIST to accept

technical information from commercial encryption providers whose

products are the subject of export restrictions demonstrating that

stronger encryption products than their own already exist outside the

United States. NIST is then required to analyze the information and

within 30 days provide a report on its accuracy and completeness to the

Secretary of Commerce and Congress.

In order to facilitate the evaluation process, within 180 days of

enactment of this Act, NIST is required to develop standard procedures

and tests to measure the capabilities of encryption technologies. NIST

must make information regarding those procedures and tests available to

the public. NIST is given the authority to require commercial providers

seeking an evaluation to follow the procedures and tests it has

developed.

Committee views

NIST currently assesses domestic products in its mission to set

appropriate federal standards and to assist civilian federal agencies in

the area of computer security. By directing NIST to develop standard

procedures and tests that can be used by commercial encryption providers

whose products are the subject of export restrictions to evaluate the

strength of foreign encryption, the bill will allow the Administration

and Congress to make informed decisions on criteria for exporting U.S.

encryption products.

The Committee believes that providing accurate and verifiable

information on the availability of strong security products will also

assist U.S. companies to remain competitive in the international market.

Section 8. Limitation on Participation in Requiring Encryption Standards

Section 20 of the NIST Act is amended 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.

Committee views

NIST does not currently promulgate, enforce or otherwise adopt

standards, or carry out activities or policies, for the federal

establishment of encryption, or computer security standards required for

use in computer systems other than Federal Government computer systems.

It is the Committee's intention that NIST not be used for such purposes

in the future.

Section 9. Miscellaneous Amendments

Technical and conforming amendments to Section 20 of the NIST Act as

well as a language change which reasserts NIST's role as the lead agency

for handling standards for civilian agency computer security.

Committee views

The Committee affirms NIST's role as the lead agency for handling

standards for federal civilian agency computer security. The Committee

believes that it is imperative that this function remain open to public

scrutiny. NIST is the agency historically charged with setting the

standards for computer security in the civilian agencies and it is the

Committee's intention that NIST direct appropriate resources and

expertise to this area.

Section 10. Federal Computer System Security Training

Section 5(b) of the Computer Security Act of 1987 is amended by

adding an emphasis on protecting sensitive information in federal

databases and federal computer sites that are accessible through public

networks.

Committee views

The Committee wishes to focus NIST's attention on security matters

which have come about because of the changes in networked information

technology systems that have taken place since the

enactment of the Computer Security Act of 1987. The World Wide

Web is just one example of new developments in networked information

technology programs which raise unique security concerns.

Section 11. Computer Security Fellowship Program

Funds are authorized under Section 18 of the NIST Act to provide

grants for research on computer security to students at institutions of

higher learning ($250,000 for Fiscal Year 1998 and $500,000 for Fiscal

Year 1999).

Committee views

The Committee supports efforts to increase the number of college and

graduate students in the field of computer security. NIST can play an

important, although limited, role in this effort through its section 18

fellowship program.

Section 12. Study of Public Key Infrastructure by the National Research

Council

This section authorizes funds ($450,000 for Fiscal Year 1998 to

remain available until expended) and sets terms for 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.

Committee views

In the opinion of the Committee, the NRC study on Cryptography

``Cryptography's Role In Securing the Information Society'' has been an

important addition to the cryptography debate. The issues arising from

the debate of public key infrastructures could similarly benefit from an

NRC report.

Section 13. Promotion of National Information Security

Requires the Under Secretary of Commerce for Technology to actively

promote the use of technologies 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 the

standards-based infrastructure that will enable the more widespread use

of encryption technologies for confidentiality and authentication.

Committee views

Through the requirements of section 13, the Committee intends to

designate a central government focus for increasing public awareness of

the need for improving the security of communications networks and the

information accessed through such networks. The Committee notes that one

of the central findings of the comprehensive 1996 report from the

National Academy of Sciences, Cryptography's Role in Securing the

Information Society, is the relative lack of attention paid to securing

electronic information. Although the technical solutions for enhancing

information security are available, the public has not been energized

about the importance of utilizing these tools.

H.R. 1903 encourages greater use of commercially available

cryptography products for protection of government information, which

may have the indirect effect of enhancing the general availability of

such technologies. To further increase public awareness of security

threats and to accelerate corrective action, section 13 of the bill

charges the Technology Administration in the Commerce Department to

actively promote greater use of cryptography and associated technologies

by the private sector. One specific requirement is for the Technology

Administration to establish a clearinghouse of information for the

public on information security threats to networked computers, including

information about procedural and technical approaches to guard against

such threats.

The Committee intends that the Technology Administration actively

promote the development of a national, standards-based infrastructure to

support the uses of encryption technologies for confidentiality and

authentication by working closely with the private sector and by

assisting and supporting the development of standards through a

private-sector oriented, consensus-based process.

Section 14. Digital Signature Infrastructure

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 market driven

consensus standards and of developing model practices and standards

associated with certification authorities. The Technology Administration

of the Department of Commerce shall appoint the National Panel and

provide necessary administrative support.

Committee views

The Committee finds that digital signature technology is essential

for the full use of public networks, such as the Internet, for commerce

and for private communications. Digital signatures verify the identity

of a business or individual that is accessed via a network and assure

the integrity of the information being exchanged. In order for digital

signature technology to be deployed, in most cases, a trusted guarantor

of the public identifier, or public key, of the digital signature must

exist. This is the role of the certification authority.

The Committee is aware that several States have enacted statutes to

regulate certification authorities. Unfortunately, this has largely been

an uncoordinated process resulting in the placement of varying

requirements on certification authorities. In order for a truly national

system to develop, which is required if use of digital signatures is to

become widespread, the Committee believes that uniform market driven

consensus standards must be in place for the practices and procedures of

the certification authorities. Otherwise, variations in the requirements

for certification authorities will degrade the overall level of

reliability and security of digital signatures.

To promote the required uniformity, section 14 of the bill

establishes a national panel, under the auspices of the Technology

Administration, to develop private voluntary model practices and

procedures, promote uniformity among jurisdictions that license

certification authorities, and private voluntary uniform audit standards

for certification authorities. This national panel, with broadly based

representation, including users of digital signature technology, will

provide for the coordination needed to put in place the

national legal and technical infrastructure that is a

prerequisite for the widespread use of digital signatures.

Section 15. Source of Authorizations

Amounts authorized to be appropriated by this Act are from amounts

authorized by the NIST Authorization Act of 1997.

Committee views

The Committee and the full House of Representatives have passed H.R.

1274, the National Institute of Standards and Technology Authorization

Act of 1997. That bill includes authorizations which, if enacted, are

sufficient to cover all responsibilities given to NIST in H.R. 1903.

VIII. COMMITTEE COST ESTIMATE

Clause 7(a) of rule XIII of the Rules of the House of Representatives

requires each Committee report accompanying each bill or joint

resolution of a public character to contain: (1) an estimate, made by

such Committee, of the costs which would be incurred in carrying out

such bill or joint resolution in the fiscal year in which it is

reported, and in each of the 5 fiscal years following such fiscal year

(or for the authorized duration of any program authorized by such bill

or joint resolution, if less than 5 years); (2) a comparison of the

estimate of costs described in subparagraph (1) of this paragraph made

by such Committee with an estimate of such costs made by any Government

agency and submitted to such Committee; and (3) when practicable, a

comparison of the total estimated funding level for the relevant program

(or programs) with the appropriate levels under current law. However,

clause 7(d) of that Rule provides that this requirement does not apply

when a cost estimate and comparison prepared by the Director of the

Congressional Budget Office under section 403 of the Congressional

Budget Act of 1974 has been timely submitted prior to the filing of the

report and included in the report pursuant to clause 2(l)(3)(C) of rule

XI. A cost estimate and comparison prepared by the Director of the

Congressional Budget Office under section 403 of the Congressional

Budget Act of 1974 has been timely submitted prior to the filing of this

report and included in Section XI of this report pursuant to clause

2(l)(3)(C) of rule XI.

Clause 2(l)(3)(B) of rule XI of the Rules of the House of

Representatives requires each Committee report that accompanies a

measure providing new budget authority (other than continuing

appropriations), new spending authority, or new credit authority, or

changes in revenues or tax expenditures to contain a cost estimate, as

required by section 308(a)(1) of the Congressional Budget Act of 1974

and, when practicable with respect to estimates of new budget authority,

a comparison of the total estimated funding level for the relevant

program (or programs) to the appropriate levels under current law. H.R.

1903 does not contain any new budget authority, credit authority, or

changes in revenues or tax expenditures. Assuming that the sums

authorized under the bill are appropriated, H.R. 1903 does authorize

additional discretionary spending, as described in the Congressional

Budget Office report on the bill, which is contained in Section XI of

this report.

IX. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

U.S. Congress,

Congressional Budget Office,

Washington, DC, August 12, 1997.

Hon. F. James Sensenbrenner, Jr., Chairman, Committee on Science,

U.S. House of Representatives,

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 1997.

If you wish further details on this estimate, we will be pleased to

provide them. The CBO staff contact is Rachel Forward, who can be

reached at 226 2860.

Sincerely,

June E. O'Neill

Enclosure

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 bill would cost $35 million over the

1998 2002 period, assuming appropriation of the necessary amounts.

The bill would authorize the appropriation of $3.2 million to NIST to

(1) enable the Computer System Security and Privacy Advisory Board

(CSSPAB) administered by NIST to conduct public 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 bill would require expenditures of

about $33 million over the 1998 2002 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 of 1995 (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 by the end of

Fiscal Year 1997, and that the estimated amounts necessary to implement

the bill will be appropriated by the start of each fiscal year. Outlays

have been estimated 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.

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

[By fiscal year, in millions of dollars]

1998 1999 2000 2001 2002

Estimated Authorization Level 9 8 7 6 6

Estimated Outlays 7 8 7 7 6

NIST received an appropriation of $582 million for Fiscal Year 1997,

and its 1997 outlays are estimated to be about $640 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 $35 million over

the 1998 2002 period. Of that amount, $3.2 million is specifically

authorized in the bill 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 $6

million to $7 million in each fiscal year over the 1998 2002 period to

implement the remaining provisions of the bill. Of those amounts, CBO

estimates that NIST would spend about $5 million a year to evaluate

commercial encryption products subject to export restrictions and to

report the results to the Secretary of Commerce and the Congress. We

further estimate that NIST would spend between $1 million and $2 million

in each year to test computer security products for use by federal

agencies, provide information on computer security threats to the

public, establish a National Panel for Digital Signatures, and carry out

the remaining provisions of the bill.

H.R. 1903 directs that the sums necessary to implement this bill,

including the $3.2 million explicitly authorized by the bill, 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 act 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.

Estimate prepared by: Rachel Forward (226 2860).

Estimate approved by: Robert A. Sunshine, Deputy Assistant Director

for Budget Analysis.

X. COMPLIANCE WITH PUBLIC LAW 104 4

H.R. 1903 contains no unfunded mandates.

XI. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Clause 2(l)(3)(A) of rule XI of the Rules of the House of

Representatives requires each Committee report to include oversight

findings and recommendations required pursuant to clause 2(b)(1) of rule

X. The Committee has no oversight findings.

XII. OVERSIGHT FINDINGS AND RECOMMENDATIONS BY THE COMMITTEE ON

GOVERNMENT REFORM AND OVERSIGHT

Clause 2(l)(3)(D) of rule XI of the Rules of the House of

Representatives requires each Committee report to contain a summary of

the oversight findings and recommendations made by the House Government

Reform and Oversight Committee pursuant to clause 4(c)(2) of rule X,

whenever such findings and recommendations have been submitted to the

Committee in a timely fashion. The Committee on Science has received no

such findings or recommendations from the Committee on Government Reform

and Oversight.

XIII. CONSTITUTIONAL AUTHORITY STATEMENT

Clause 2(l)(4) of rule XI of the Rules of the House of

Representatives requires each report of a Committee on a bill or joint

resolution of a public character to include a statement citing the

specific powers granted to the Congress in the Constitution to enact the

law proposed by the bill or joint resolution. Article I, section 8 of

the Constitution of the United States grants Congress the authority to

enact H.R. 1903.

XIV. FEDERAL ADVISORY COMMITTEE STATEMENT

The functions of the two advisory committees, the Computer System

Security and Privacy Advisory Board and the National Panel for Digital

Signatures, authorized in H.R. 1903 are not currently, nor could they

be, performed by one or more agencies or by enlarging the mandate of

another existing advisory committee.

XV. CONGRESSIONAL ACCOUNTABILITY ACT

The Committee finds that H.R. 1903 does not relate to the terms and

conditions of employment or access to public services or accommodations

within the meaning of section 102(b)(3) of the Congressional

Accountability Act (Public Law 104 1).

XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3 of rule XIII of the Rules of the House of

Representatives, changes in existing law made by the bill, as reported,

are shown as follows (existing law proposed to be omitted is enclosed in

black brackets, new matter is printed in italics, existing law in which

no change is proposed is shown in roman):

SECTION 20 OF THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT

Sec. 20. (a) * * *

* * * * * * *

(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 Information Technology Management Reform Act of 1996;

(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.

(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.

(e)(1) If the Secretary has imposed, or proposes to impose, export