Bill Text: CA AB2200 | 2013-2014 | Regular Session | Amended


Bill Title: California Cyber Security.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2014-09-02 - In Assembly. [AB2200 Detail]

Download: California-2013-AB2200-Amended.html
BILL NUMBER: AB 2200	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 30, 2014
	AMENDED IN SENATE  AUGUST 22, 2014
	AMENDED IN SENATE  AUGUST 4, 2014
	AMENDED IN SENATE  JUNE 12, 2014
	AMENDED IN ASSEMBLY  MAY 23, 2014

INTRODUCED BY   Assembly Member John A. Pérez

                        FEBRUARY 20, 2014

   An act to add and repeal Article 3.9 (commencing with Section
8574.50) of Chapter 7 of Division 1 of Title 2 of the Government
Code, relating to cyber security.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2200, as amended, John A. Pérez. California Cyber Security.
   Existing law establishes various advisory boards and commissions
in state government with specified duties and responsibilities.
Existing law establishes in state government the Governor's office of
Emergency Services and the Department of Technology.
   This bill would continue in existence the California Cyber
Security Task Force, previously created by the Governor's Office of
Emergency Services and the Department of Technology, in the Governor'
s Office of Emergency Services. This bill would require the office
and the department to convene stakeholders to act in an advisory
capacity and compile policy recommendations on cyber security for the
state. The bill would require the task force to meet quarterly, or
more often as necessitated by emergency circumstances. This bill
would require the task force to complete and issue a report of policy
recommendations to the Governor's office and the Legislature
 by January 1, 2015  .
   This bill would create the California Cyber Security Steering
Committee in the Governor's Office of Emergency Services, consisting
of 13 members comprised of representatives from state government, and
appointed representatives with specific expertise or from the
technology or cybersecurity industry and the utility or energy
industry. This bill would require the steering committee to seek to
implement the policy recommendations of the task force based on
specified priorities. This bill would require the office and the
department to collaborate with the steering committee.
   This bill would authorize the Governor's Office of Emergency
Services and the Department of Technology to conduct the strategic
direction of risk assessments performed by the Military Department's
Computer Network Defense Team.
   The bill would abolish the California Cyber Security Task Force
and the California Cyber Security Steering Committee, and repeal
these provisions, on January 1, 2020.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 3.9 (commencing with Section 8574.50) is added
to Chapter 7 of Division 1 of Title 2 of the Government Code, to
read:

      Article 3.9.  California Cyber Security


   8574.50.  The Legislature finds and declares all of the following:

   (a) The State of California's growing dependence on technology has
made it increasingly vulnerable to both foreign and domestic cyber
security attacks. Thus far, there has been a fragmented approach to
this issue with independent efforts occurring through federal, state,
and local government, as well as in the state's universities and
within private industry. For the purposes of public safety and
protection of public assets, the state has a role in coordinating and
improving its overall security and response capabilities.
   (b) The market for cyber security is estimated to be more than
seventy billion dollars ($70,000,000,000) in 2014. Of that amount,
sixty-seven billion dollars ($67,000,000,000) is estimated to be
spent nationally by private companies for computer and network
security and the United States Department of Defense is planning to
spend four billion six hundred million dollars ($4,600,000,000). The
United States Department of Defense is planning on spending
twenty-three billion dollars ($23,000,000,000) over the next five
years. Overall spending is expected to increase rapidly as
recognition of threats becomes more ubiquitous. The California
economy stands to greatly benefit from this industry growth.
   (c) The State of California has already made investments for the
purpose of cyber security; examples of which are research funding for
the Lawrence Livermore National Laboratory and funding to augment a
cyber security assessment and response team within the California
National Guard.
   (d) The California Cyber Security Task Force was initiated in May
2013 for the purposes of identifying critical threats, assembling
primary stakeholders, and highlighting the growing importance of the
issue. Among other things, this has increased awareness of the state'
s compliance with the new federal National Institute of Standards and
Technology (NIST) standards and the Office of Emergency Services
establishing Emergency Function 18, created particularly for cyber
security.
   (e) Over 50,000 new malicious online activities are identified
every day, according to the United States Department of Defense.
Incidents of sophisticated and well-coordinated attacks and data
breaches are occurring more regularly, the average cost of which
amounts to more than ten million dollars ($10,000,000). In 2012, a
data breach to the state of South Carolina required more than twenty
million dollars ($20,000,000) in response and restitution. The State
of California is vulnerable technically, legally, and financially to
these threats.
   (f) The State of California recognizes that cyber security is both
a current and future state security issue that requires a
whole-of-government policy solution, not just a technology one. The
State of California intends to demonstrate leadership on the issue in
conjunction with federal and local governments.
   (g) The State of California intends to balance cyber security
interests of its citizens and public assets with transparency and
protection of privacy rights.
   8574.51.  (a) There is hereby continued in existence the
California Cyber Security Task Force, created in 2013 by the Governor'
s Office of Emergency Services and the Department of Technology, in
the Governor's Office of Emergency Services.
   (b) The Governor's Office of Emergency Services and the Department
of Technology shall convene stakeholders, both public and private,
to act in an advisory capacity and compile policy recommendations on
cyber security for the State of California. The California Cyber
Security Task Force shall complete and issue a report of policy
recommendations to the Governor's office and the Legislature. The
report shall be completed in compliance with Section 9795.
   (c) The California Cyber Security Task Force shall meet quarterly,
or more often as necessitated by emergency circumstances, within
existing resources to ensure that the policy recommendations from the
report are implemented and any necessary modifications which may
arise are addressed in a timely manner.
   (d) The Governor's Office of Emergency Services and the Department
of Technology shall collaborate with the Cyber Security Steering
Committee created pursuant to Section 8574.52 to use their combined
expertise to streamline the implementation of policy recommendations
set forth in the California Cyber Security Task Force's report. This
collaboration shall be guided by the priorities set forth in Section
8574.54 and shall timely realize the state's cyber security goals.
   (e) The Governor's Office of Emergency Services and the Department
of Technology shall be authorized to conduct the strategic direction
of risk assessments performed by the Military Department's Computer
Network Defense Team as budgeted in Item 8940-001-0001 of the Budget
Act of 2014.
   8574.52.  (a) There is in the Governor's Office of Emergency
Services the Cyber Security Steering Committee, which shall consist
of the following members:
   (1) The Director of Emergency Services, or his or her designee
with knowledge, expertise, and decisionmaking authority with respect
to the Office of Emergency Services' information technology and
information security duties.
   (2) The Director of the Department of Technology, or his or her
designee with knowledge, expertise, and decisionmaking authority with
respect to the director's information technology and information
security duties set forth in Chapter 5.6 (commencing with Section
11545).
   (3) The Attorney General, or his or her designee with knowledge,
expertise, and decisionmaking authority with respect to the
Department of Justice's information technology and information
security.
   (4) The Adjutant General of the Military Department, or his or her
designee with knowledge, expertise, and decisionmaking authority
with respect to the Military Department's information technology and
information security.
   (5) The Secretary of Health and Human Services, or his or her
designee with knowledge, expertise, and decisionmaking authority with
respect to the California Health and Human Services Agency's
information technology and information security.
   (6) The Secretary of the California Transportation Agency, or his
or her designee with knowledge, expertise, and decisionmaking
authority with respect to the agency's information technology and
information security.
   (7) The Commissioner of the California Highway Patrol, or his or
her designee with knowledge, expertise, and decisionmaking authority
with respect to the California Highway Patrol's information
technology and information security.
   (8) The Commander of the State Threat Assessment Center, or his or
her designee with knowledge, expertise, and decisionmaking authority
with respect to the State Threat Assessment Center's information
technology and information security.
   (9) A representative with cybersecurity expertise, who shall be
appointed by the Governor.
   (10) A representative of the state's higher education system with
knowledge, expertise, and decisionmaking authority with respect to
information technology and information security, who shall be
appointed by the Governor.
   (11) A representative of the Public Utilities Commission or,
California Energy Commission with knowledge, expertise, and
decisionmaking authority with respect to information technology and
information security, who shall be appointed by the Governor.
   (12) A representative from the private sector in the technology or
cybersecurity industry, who shall be appointed by the Speaker of the
Assembly.
   (13) A representative from the utility or energy industry, who
shall be appointed by the Senate Committee on Rules.
   (b) (1) Each representative appointed by the Governor, Speaker of
the Assembly, or Senate Committee on Rules shall be appointed to
serve a two-year term.
   (2) Any representative may serve consecutive terms.
   (c) Any designee shall serve at the pleasure of the official who
designated them.
   (d) Eight members shall constitute a quorum for the transaction of
business, and all official acts of the steering committee shall
require the affirmative vote of a majority of its members
constituting a quorum.
   (e) The members of the steering committee shall serve without
compensation, except that each member of the steering committee shall
be entitled to receive his or her actual necessary traveling
expenses while on official business of the steering committee.
   8574.54.  The Cyber Security Steering Committee shall seek to
implement the policy recommendations of the California Cyber Security
Task Force based on the following priorities:
   (a) Developing within state government cyber prevention, defense,
and response strategies and defining a hierarchy of command within
the state for this purpose. This duty includes, but is not limited
to, the following activities:
   (1) Performing comprehensive risk assessments on state information
technology systems. The assessments shall be performed by such
entities as the California National Guard's Computer Defense Network
Team and the State Threat Assessment Center, with guidance and
assistance from other public and private sector entities.
   (2)  Using assessment results and other state-level data to create
a risk profile of public assets, critical infrastructure, public
networks, and private operations susceptible to cyber attacks. The
risk profile shall include the development of statewide contingency
plans including, but not limited to, Emergency Function 18 of the
State Emergency Plan.
   (b) Partnering with the United States Department of Homeland
Security to develop an appropriate information sharing system that
allows for a controlled and secure process to effectively disseminate
cyber threat and response information and data to relevant private
and public sector entities. This information sharing system shall
reflect state priorities and target identified threat and capability
gaps.
   (c) Providing recommendations for information technology security
standards for all state agencies using, among other things, protocols
established by the National Institute for Standards and Technology
and reflective of appropriate state priorities.
   (d) Compiling and integrating, as appropriate, the research
conducted by academic institutions, federal laboratories, and other
cybersecurity experts into state operations and functions.
   (e) Expanding the state's public-private cybersecurity partnership
network both domestically and internationally to assist in the state'
s efforts to prevent and respond to cyber threats and cyber attacks
as well as enhance overall cyber detection capability.
   (f) Developing and providing training programs with the state's
higher education and labor entities to produce a credentialed and
qualified state cybersecurity workforce. This program should include
training based on the requirements and protocols outlined in models
such as Department of Defense Directive 8570.
   (g) Expanding collaboration with the state's law enforcement
apparatus assigned jurisdiction to prevent, deter, investigate, and
prosecute cyber attacks and information technology crime, including
collaboration with entities like the High-Tech Theft Apprehension
Program, and its five regional task forces, the Department of the
California Highway Patrol, and the Attorney General's eCrimes unit.
Collaboration will include information sharing that will enhance
their capabilities including assistance to better align their
activities with federal and local resources, provide additional
resources, and extend their efforts into regions of the state not
currently represented.
   (h) Proposing, where appropriate, potential operational or
functional enhancement to the state's cybersecurity assessment and
response capabilities, as well as investment or spending
recommendation and guidance for the state's information technology
budget and procurement.
   (i) Coordinating the pursuit of fiscal resources including federal
grants and other funding opportunities to enhance the state's
cybersecurity, information technology, data privacy, cyber research,
and technology-based emergency response capabilities.
   8574.55.  The California Cyber Security Task Force shall take all
necessary steps to protect personal information, public and private
sector data, as well as ensure consumer privacy, when implementing
its duties.
   8574.56.  (a) The California Cyber Security Task Force may issue
reports, in addition to the report described in subdivision (b) of
Section 8574.51, to the Governor's office and the Legislature
detailing the activities of the task force, including, but not
limited to, progress on the California Cyber Security Task Force's
various tasks and actions taken and recommended in response to an
incident, as appropriate.
   (b) The reports shall be submitted in compliance with Section
9795.
   8574.57.  The California Cyber Security Task Force may engage or
accept the services of agency or department personnel, accept the
services of stakeholder organizations, and accept federal, private,
or other nonstate funding, to operate, manage, or conduct the
business of the California Cyber Security Task Force.
   8574.58.   The California Cyber Security Task Force shall
operate within the current information technology budget of each
department and agency they serve.  Each department and
agency shall cooperate with the  commission  
California Cyber Security Task Force  and furnish it with
information and assistance that is necessary or useful to further the
purposes of this article.
   8574.59.  This article shall become inoperative on January 1,
2020, and shall be repealed as of that date.
       
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