H.R. 1560 would establish within the Office of the Director of National Intelligence (ODNI) a center that would be responsible for analyzing and integrating information from the intelligence community related to cyber threats. In addition, the bill would require the government to establish procedures for sharing information and data on cyber threats between the federal government and nonfederal entities. CBO estimates that implementing the bill would cost $186 million over the 2016-2020 period, assuming appropriation of the estimated amounts.
In addition, the bill would allow information shared with the government to be used in certain criminal prosecutions, which could increase federal revenues from fines as well as direct spending from the Crime Victims Fund. However, CBO anticipates that the number of cases that could be affected would be small and that any additional revenues and spending would be insignificant. Finally, section 5 of H.R. 1560 would make the government liable if an agency or department were to violate the privacy and civil liberty guidelines required by the bill. While such liability could result in additional direct spending, CBO does not have sufficient basis to estimate the type or frequency of violations or budgetary impact that might occur if the legislation was enacted. Because the bill would affect direct spending and revenues, pay-as-you-go procedure apply.
H.R. 1560 would impose intergovernmental and private-sector mandates, as defined in the Unfunded Mandates Reform Act (UMRA), by extending civil and criminal liability protection to cybersecurity providers and other entities that monitor, share, or use cyber threat information. Doing so would prevent public and private entities from seeking compensation for damages from those protected entities if they share or use cybersecurity information. The bill also would impose additional intergovernmental mandates on state and local governments by preempting disclosure and liability laws and by preempting any laws that restrict activities authorized by the bill.