SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Modernizing Outdated and Vulnerable 
Equipment and Information Technology Act of 2016'' or the ``MOVE IT 
Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) National Institute of Standards and Technology Special 
        Publication 800-145 describes cloud computing as an evolving 
        paradigm for information technology that is a model for 
        enabling ubiquitous, convenient, on-demand network access to a 
        shared pool of configurable computing resources (i.e., 
        networks, servers, storage, applications, and services) that 
        can be rapidly provisioned and released with minimal management 
        effort or service provider interaction.
            (2) Together, the efficiencies, cost savings, and greater 
        computing power enabled by cloud computing has the potential 
        to--
                    (A) eliminate inappropriate duplication, reduce 
                costs, and address waste, fraud, and abuse in providing 
                Government services that are publicly available;
                    (B) address the critical need for cybersecurity by 
                design; and
                    (C) move the Federal Government into a broad 
                digital-services delivery model that could transform 
                the fashion in which the Federal Government provides 
                services to the people of the United States.
    (b) Purposes.--The purposes of this Act are to--
            (1) accelerate the acquisition and deployment of cloud 
        computing services by addressing key impediments and roadblocks 
        in funding, development, and acquisition practices;
            (2) support and expand an efficient Federal certification 
        standard for qualifying cloud services providers under the 
        Federal Risk and Authorization Management Program using a 
        ``qualify once, use many times'' efficiency model that strikes 
        an appropriate balance between--
                    (A) encouraging the adoption of strong security 
                practices to protect against the harm of cyber 
                intrusions and hacks; and
                    (B) avoiding the imposition of unduly burdensome 
                and restrictive requirements on cloud computing service 
                providers that would deter investment in innovative 
                cloud computing services;
            (3) assist agencies in migrating to cloud computing 
        services by providing guidance and oversight of agency 
        enterprise-wide information technology portfolios suitable for 
        and identifiable as suitable for a cloud-based delivery model; 
        and
            (4) provide for Federal agencies to procure cloud computing 
        services that adhere to sound security practices.

SEC. 3. FEDERAL RISK AND AUTHORIZATION MANAGEMENT PROGRAM.

    (a) In General.--Except as provided under subsection (b), a covered 
agency may not store or process Government information on a Federal 
information system with any cloud service provider, unless the provider 
has an authorization to operate, or a provisional authorization to 
operate, covering the proposed scope of work, from the covered agency 
or the Joint Authorization Board. A covered agency operating under a 
provisional authorization to operate shall issue an authorization to 
operate as soon as practicable and may not rely on the provisional 
authorization to operate for the duration of the scope of work.
    (b) Waiver of Requirements.--
            (1) In general.--The Director of National Intelligence, or 
        a designee of the Director, may waive the applicability to any 
        national security system of any provision of this section if 
        the Director of National Intelligence, or the designee, 
        determines that such waiver is in the interest of national 
        security.
            (2) Notification.--Not later than 30 days after exercising 
        a waiver under this subsection, the Director of National 
        Intelligence, or the designee of the Director, as the case may 
        be, shall submit to the Committee on Homeland Security and 
        Governmental Affairs and the Select Committee on Intelligence 
        of the Senate and the Committee on Oversight and Government 
        Reform and the Permanent Select Committee on Intelligence of 
        the House of Representatives a statement describing and 
        justifying the waiver.
    (c) Rule of Construction.--Nothing in this section shall be 
construed as limiting the ability of the Office of Management and 
Budget to update or modify Federal guidelines relating to the security 
of cloud computing.

SEC. 4. EXPANDED INDUSTRY COLLABORATION AND METRICS DEVELOPMENT FOR THE 
              FEDERAL RISK AND AUTHORIZATION MANAGEMENT PROGRAM OFFICE.

    (a) In General.--The Director shall coordinate with the Federal 
Risk and Authorization Management Program Office to establish mandatory 
guidelines for the submission of an application for an authorization to 
operate and related materials to the Federal Risk and Authorization 
Management Program Office.
    (b) Contents.--The guidelines established under subsection (a) 
shall streamline and accelerate the Federal Risk and Authorization 
Management Program accreditation process by meeting the following 
requirements:
            (1) Not less frequently than monthly, report to the 
        applicant the status, expected time to completion, and other 
        key indicators related to compliance for an application for 
        authorization to operate submitted to the Federal Risk and 
        Authorization Management Program Office.
            (2) Enhanced training and industry liaison opportunities 
        for covered agencies and cloud service providers.
            (3) A clarification of--
                    (A) the role and authority of third party 
                assessment organization in the Federal Risk and 
                Authorization Management Program process for 
                authorizations to operate by covered agencies;
                    (B) the extent to which the Federal Risk and 
                Authorization Management Program Office may identify 
                and begin to accept or rely upon certifications from 
                other standards development organizations or third 
                party assessment organization; and
                    (C) the responsibility of covered agencies to 
                sponsor a Federal Risk and Authorization Management 
                Program authorization to operate as part of making 
                Federal Risk and Authorization Management Program 
                compliance a condition for entering into a contract or 
                providing cloud computing services to a covered agency.
    (c) FedRAMP Liaison Group.--
            (1) In general.--The Director, in coordination with the 
        Program Management Office and the National Institute of 
        Standards and Technology, shall host a public-private industry 
        cloud commercial working group (in this subsection referred to 
        as the ``FedRAMP Liaison Group'') representing cloud service 
        providers.
            (2) Composition and functions.--The FedRAMP Liaison Group--
                    (A) shall include representatives of cloud service 
                providers;
                    (B) may include such working groups as are 
                determined appropriate by the FedRAMP Liaison Group;
                    (C) shall be hosted by the General Services 
                Administration, who shall convene plenary meetings on a 
                quarterly basis with individual working groups meeting 
                as frequently as determined by the group; and
                    (D) shall consult with and provide recommendations 
                directly to the Program Management Office and the Joint 
                Authorization Board of the Federal Risk and 
                Authorization Management Program regarding the 
                operations, processes improvements, and best practices 
                of the Office and Board.
            (3) FACA exemption.--The Federal Advisory Committee Act 
        shall not apply to the FedRAMP Liaison Group.
    (d) Providing Dedicated Agency Support.--The Program Management 
Office shall work with each covered agency to support and guide the 
efforts of the agency--
            (1) to establish and issue the authorization to operate for 
        the agency;
            (2) to facilitate authorization approval, support, and 
        direct interfacing with cloud service providers; and
            (3) to facilitate partnership among agencies to efficiently 
        support activities related to obtaining an authorization to 
        operate.
    (e) Metrics.--The Director, in coordination with the National 
Institute of Standards and Technology and the FedRAMP Liaison Group, 
shall establish key performance metrics for the Federal Risk and 
Authorization Management Program Office, which shall include--
            (1) recommendations for maximum time limits for the 
        completion of authorizations to operate by service categories 
        of cloud service providers, not to exceed six months;
            (2) targets for the streamlining of the authorization to 
        operate through the use of innovative templates and transparent 
        submission requirements; and
            (3) recommendations for satisfying Federal continuous 
        monitoring requirements.
    (f) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Director shall submit to the Committees on 
Appropriations and Oversight and Government Reform of the House of 
Representatives and the Committees on Appropriations and Homeland 
Security and Governmental Affairs of the Senate a report on the 
effectiveness and efficiency of the Federal Risk and Authorization 
Management Program Office.

SEC. 5. ADDITIONAL BUDGET AUTHORITIES FOR THE MODERNIZATION OF IT 
              SYSTEMS.

    (a) Assessment of Cloud First Implementation.--Not later than 90 
days after the date of the enactment of this Act, the Director, in 
consultation with the Chief Information Officers Council, shall assess 
cloud computing opportunities and issue policies and guidelines for the 
adoption of Governmentwide programs providing for a standardized 
approach to security assessment and operational authorization for cloud 
computing products and services.
    (b) Information Technology System Modernization and Working Capital 
Fund.--
            (1) Establishment.--There is established in each covered 
        agency an information technology system modernization and 
        working capital fund (hereafter ``IT working capital fund'') 
        for necessary expenses for the agency described in paragraph 
        (2).
            (2) Source of funds.--Amounts may be deposited into an IT 
        working capital fund as follows:
                    (A) Reprogramming of funds, including reprogramming 
                of any funds available on the date of enactment of this 
                Act for the operation and maintenance of legacy 
                systems, in compliance with any applicable 
                reprogramming law or guidelines of the Committees on 
                Appropriations of the House of Representatives and the 
                Senate.
                    (B) Transfer of funds, including transfer of any 
                funds available on the date of enactment of this Act 
                for the operation and maintenance of legacy systems, 
                but only if transfer authority is specifically provided 
                for by law.
                    (C) Amounts made available through discretionary 
                appropriations.
            (3) Use of funds.--An IT working capital fund established 
        under paragraph (1) may be used only for the following:
                    (A) The replacement of a legacy information 
                technology system.
                    (B) The transition to cloud computing and 
                innovative platforms and technologies subject to a 
                transition plan for any project that costs more than 
                $5,000,000 and approved by the Federal Chief 
                Information Officer according to such guidelines as the 
                Office of Management and Budget may designate.
                    (C) To assist and support agency efforts to provide 
                adequate, risk-based, and cost-effective information 
                technology capabilities that address evolving threats 
                to information security.
                    (D) Developmental, modernization, and enhancement 
                activities of information technology.
            (4) Existing funds.--An IT working capital fund may not be 
        used to supplant funds provided for the operation and 
        maintenance of any system already within an appropriation for 
        the agency at the time of establishment of the IT working 
        capital fund.
            (5) Reprogramming and transfer of funds.--The head of each 
        covered agency shall prioritize funds within the IT working 
        capital fund to be used initially for cost savings activities 
        approved by the Federal Chief Information Officer, in 
        consultation with the Chief Information Officer of the covered 
        agency. The head of each covered agency may--
                    (A) reprogram any amounts saved as a direct result 
                of such activities for deposit into the applicable IT 
                working capital fund, consistent with paragraph (2)(A), 
                except that any such reprogramming of amounts in excess 
                of $500,000 shall be reported to the Committees on 
                Appropriations of the House of Representatives and the 
                Senate 30 days ain advance of such reprogramming; and
                    (B) transfer any amounts saved as a direct result 
                of such activities for deposit into the applicable IT 
                working capital fund, consistent with paragraph (2)(B), 
                except that any such transfer of amounts in excess of 
                $500,000 shall be reported to the Committees on 
                Appropriations of the House of Representatives and the 
                Senate 30 days in advance of such transfer.
            (6) Return of funds.--Any funds deposited into an IT 
        working capital fund must be obligated no later than 3 years 
        after the date of such deposit. Any funds that are unobligated 
        3 years after such date shall be rescinded and deposited into 
        the general fund of the Treasury and reported to the Committees 
        on Appropriations of the House of Representatives and the 
        Senate.
            (7) Semiannual report required.--Not later than 6 months 
        after the date of the enactment of this Act, and semiannually 
        thereafter, the head of any covered agency that uses an IT 
        working capital fund shall submit to the Committees on 
        Appropriations and Oversight and Government Reform of the House 
        of Representatives and the Committees on Appropriations and 
        Homeland Security and Governmental Affairs of the Senate a 
        report on the obligation and expenditure of funds made 
        available under this section.
    (c) GAO Report.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter for five years, the 
Comptroller General of the United States shall submit to the Committees 
on Appropriations and Oversight and Government Reform of the House of 
Representatives and the Committees on Appropriations and Homeland 
Security and Governmental Affairs of the Senate a report--
            (1) on the implementation and operation of each IT working 
        capital fund established under this section;
            (2) that identifies current practices and compares the 
        practices with industry best practices in areas such as the 
        effective oversight and governance of a cloud computing working 
        capital fund; and
            (3) that describes the basis for the use and operation of 
        an IT working capital fund, the efficacy of the working capital 
        fund to accelerate technology transitions, and recommendations 
        for further improvement for the working capital fund.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Authorization to operate.--The term ``authorization to 
        operate'' means an approval and accreditation, including a 
        provisional authorization to operate, regarding the security 
        and operational qualifications of a cloud computing service 
        provider to offer secure, reliable cloud computing service to a 
        covered agency, that may be issued by the Joint Authorization 
        Board, any successor entity, or the head of a covered agency.
            (2) Cloud computing.--The term ``cloud computing'' has the 
        meaning given that term by the National Institute of Standards 
        and Technology in NIST Special Publication 800-145 and any 
        amendatory or superseding document thereto.
            (3) Cloud service provider.--The term ``cloud service 
        provider'' means an entity offering cloud computing 
        infrastructure, platforms, or software for commercial and 
        Government entities.
            (4) Covered agency.--The term ``covered agency'' means each 
        agency listed in section 901(b) of title 31, United States 
        Code.
            (5) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (6) Federal risk and authorization management program 
        office.--The term ``Federal Risk and Authorization Management 
        Program Office'' or ``Program Management Office'' means the 
        Federal Risk and Authorization Management Program Office, or 
        any successor thereto.
            (7) Information system.--The term ``information system'' 
        has the meaning given that term under section 3502 of title 44, 
        United States Code.
            (8) Information technology.--The term ``information 
        technology'' has the meaning given that term under section 
        11101 of title 40, United States Code.
            (9) Legacy information technology system.--The term 
        ``legacy information technology system'' means an outdated or 
        obsolete information technology that is no longer supported by 
        the originating vendor or manufacturer.
            (10) National security system.--The term ``national 
        security system'' has the meaning given that term under section 
        3552 of title 44, United States Code.
            (11) Third party assessment organization.--The term ``third 
        party assessment organization'' means a third party 
        accreditation body that conducts a conformity assessment of a 
        cloud service data provider to ensure the provider meets 
        security and operational guidelines issued by the Federal Risk 
        and Authorization Management Program Office.
Modernizing Outdated and Vulnerable Equipment and Information Technology Act of 2016 or MOVE IT Act This bill prohibits a covered agency (specified agencies for which there are Chief Financial Officers) from storing or processing government information on a federal information system with any cloud service provider unless the provider has an authorization to operate a cloud computing service from the agency or the Joint Authorization Board.  The Office of the Director of National Intelligence (ODNI) may waive the applicability of such prohibition to any national security system in the interest of national security and shall submit a statement justifying such waiver. The ODNI shall: (1) coordinate with the Federal Risk and Authorization Management Program Office (FRAMPO) to establish mandatory guidelines for the submission of an application for such an authorization that shall streamline and accelerate the accreditation process; (2) host a public-private industry cloud commercial working group representing cloud service providers, which shall provide recommendations directly to FRAMPO's Program Management Office and Joint Authorization Board regarding their operations, processes improvements, and best practices; (3) establish key performance metrics for FRAMPO; (4) report on the effectiveness and efficiency of FRAMPO; and (5) assess cloud computing opportunities and issue policies and guidelines for the adoption of government-wide programs providing for a standardized approach to security assessment and operational authorization for cloud computing products and services. There is established in each such agency an information technology system modernization and working capital fund for necessary expenses:  for the replacement of a legacy information technology system; for the transition to cloud computing and innovative platforms and technologies;  to assist and support efforts to provide information technology capabilities that address evolving threats to information security; and  for developmental, modernization, and enhancement activities of information technology.  Each agency shall prioritize amounts within such fund to be used initially for cost savings activities approved by the Federal Chief Information Officer. The Government Accountability Office shall report on the implementation and operation of each such fund, current practices compared with industry best practices for the effective oversight and governance of a cloud computing working capital fund, the basis for the fund's use and operation, the fund's efficacy to accelerate technology transitions, and recommendations for improvement.
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