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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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BILL NUMBER: AB 2200	AMENDED
	BILL TEXT

	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 Chapter 5.8 (commencing with Section
11549.50) of Part 1 of Division 3 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
Commission.
   Existing law establishes various advisory boards and commissions
in state government with specified duties and responsibilities.
Existing law until January 1, 2015, establishes in state government
the Department of Technology within the Government Operations
supervised by the Director of Technology.
   This bill would create the California Cyber Security Commission in
the Department of Technology consisting of 12 members comprised of
representatives from state government, appointed representatives from
the private sectors in the technology or cybersecurity industry and
utility, energy, or telecommunications industry, and an appointed
representative of California's critical infrastructure interests. The
bill would also authorize the commission to appoint representatives
from state, local, federal, and private entities to form an advisory
board in order to receive input or advice concerning the
implementation of the duties of the commission. The duties of the
commission would include establishing cyber-attack response
strategies and  defining a hierarchy of command within the
state for this purpose   performing risk assessments on
state information technology systems  . The bill would require
the commission to meet on a quarterly basis, or as specified, and
would require the commission to issue a report on  a
quarterly   at least an annual  basis to the
Governor's Office and the Legislature that details  the cyber
security status and progress of the state and makes recommendations
on how to improve the cyber security of the state   the
activities of the commission and makes recommendations to improve
California's cybersecurity preparedness  .
   The bill would abolish the commission, and repeal these
provisions, on January 1, 2019.
   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.  Chapter 5.8 (commencing with Section 11549.50) is added
to Part 1 of Division 3 of Title 2 of the Government Code, to read:
      CHAPTER 5.8.  CALIFORNIA CYBER SECURITY COMMISSION


   11549.50.  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.
   11549.51.   (a) There is in the Department of Technology the
California Cyber Security Commission. The commission shall consist of
the following members:
   (1) 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).
   (2) The Chief of the Office of Information Security, or his or her
designee with knowledge, expertise, and decisionmaking authority
with respect to the chief's information technology and information
security duties set forth in Chapter 5.7 (commencing with Section
11549).
   (3) The Director of Emergency Services, or his or her designee
with knowledge, expertise, and decisionmaking authority with respect
to the Office of Emergency Services's information technology and
information security.
   (4) The Attorney General, or his or her designee with knowledge,
 expertises,   expertise,  and
decisionmaking authority with respect to the Department of Justice's
information technology and information security.
   (5) 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.
   (6) The Insurance Commissioner, or his or her designee with
knowledge, expertise, and decisionmaking authority with respect to
the Department of Insurance's information technology and information
security.
   (7) 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.
   (8) The Director of Transportation, or his or her designee with
knowledge, expertise, and decisionmaking authority with respect to
the Department of Transportation's information technology and
information security.
   (9) The Controller, or his or her designee with knowledge,
expertise, and decisionmaking authority with respect to the office of
the Controller's information technology and information security.
   (10) A representative from the private sector in the technology or
cybersecurity industry, who shall be appointed by the Governor.
   (11) A representative from the private sector in the utility,
energy, or telecommunications industry, who shall be appointed by the
Speaker of the Assembly.
   (12) A representative of California's critical infrastructure
interests, such as air traffic control, ports, and water systems, 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) Nine members shall constitute a quorum for the transaction of
business, and all official acts of the commission shall require the
affirmative vote of a majority of its members constituting a quorum.
   (e) The members of the commission shall serve without
compensation, except that each member of the commission shall be
entitled to receive his or her actual necessary traveling expenses
while on official business of the commission.
   11549.52.  (a) The commission may appoint representatives to form
an advisory board in order to receive input or advice concerning the
implementation of the duties of the commission.
   (b) The advisory board may be comprised of one or more
representatives from the following:
   (1) The United States Department of Homeland Security.
   (2) The National Institute for Standards and Technology.
   (3) State government.
   (4) Local government.
   (5) California's utility grid, both private and public.
   (6) Technology firms, cybersecurity firms, critical infrastructure
operators, utility providers, financial firms, health care
providers, and other private industries.
   (7) California's cybersecurity law enforcement apparatus, which
includes:
   (A) The Attorney General's eCrimes Unit.
   (B) The five regional task forces of the High Technology Theft
Apprehension and Prosecution Program.
   (C) The Department of the California Highway Patrol.
   (8) Entities operating with the commission to perform its duties,
including:
   (A) The State Threat Assessment Center and fusion centers, for the
purpose of sharing information that informs preventive actions.
   (B) The California National Guard's Computer Network Defense Team,
for the purpose of coordinating comprehensive risk assessments.
   (C) California's public and private universities and laboratories
for the purpose of directing research and best utilizing its results.

   (c) The commission shall appoint each representative by a majority
vote of its members constituting a quorum. Each representative shall
serve at the pleasure of the commission.
   11549.53.  The commission shall meet quarterly, or more often as
determined by a majority vote of its members constituting a quorum,
or in the event of an emergency. 
   11549.54.  (a) The commission shall focus on improving the state's
cyber security and cyber response capabilities by developing
partnerships with the public and private sector as well as the
academic and nongovernmental world to share cyber security and cyber
threat information to enable state government to protect and secure
important information and data, intellectual property, financial
networks, and critical infrastructure.
   (b) The duties of the commission shall include, but not be limited
to, the following:
   (1) Working with the United States Department of Homeland Security
to define a system of information sharing regarding cyber threat
monitoring and response.
   (2) Recommending minimum security standards for all state
agencies.
   (3) Researching in conjunction with academia and others to expand
and improve state cyber security capability.
   (4) Expanding public-private cyber security partnerships.
   (5) Establishing cyber-attack response strategies and defining a
hierarchy of command within the state for this purpose.
   (6) Providing training for state employees and others to produce
credentialed cyber security employees.
   (7) Developing with the Department of Insurance a strategy to
acquire cyber insurance for state agencies and assets.
   (8) Proposing potential governmental reorganization to enhance the
state's cyber security and response capabilities.
   (9) Exploring fiscal options to fund the commission and its
various activities, including the activities of some of its specific
members, including the California National Guard's computer network
defense team (CND).
   (c) The commission shall issue a report on a quarterly basis to
the Governor's Office and the Legislature that details the cyber
security status and progress of the state and makes recommendations
on how to improve the cyber security of the state. The reports shall
be submitted in compliance with Section 9795.  
   11549.54.  The duties of the commission shall include the
following:
   (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 Chief Information Security Officer shall
coordinate the process of performing risk assessments and the
assessments shall be performed by such entities as the California
National Guard's Computer Defense Network Team and the State Threat
Assessment Center, in addition to other public and private sector
entities.
   (2) Creating a risk profile of public assets, critical
infrastructure, public networks, and private operations susceptible
to cyber attacks.
   (3) Coordinating efforts to reduce state information technology
risks and gaps in existing service.
   (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 a training program to produce a
credentialed and qualified state cybersecurity workforce. This
program should include training based in whole or in part on the
requirements and protocols outlined in Department of Defense
Directive 8570. The commission shall work with state workforce and
labor entities as well as the state's higher education systems,
federal agencies, and others to provide training and develop
curriculum.
   (g) Developing, in conjunction with the Department of Insurance, a
strategy to acquire and incorporate cyber insurance into the
procurement and administrative processes of state agencies to protect
state assets and information.
   (h) 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.
   (i) Proposing, where appropriate, potential governmental
reorganization options to enhance the state's cybersecurity
assessment and response capabilities.
   (j) 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.  
   11549.55.  The commission shall take all necessary steps to
protect personal information, public and private sector data, as well
as ensure consumer privacy, when implementing its duties.  

   11549.56.  (a) The commission shall issue an annual report to the
Governor's office and the Legislature, or more often if needed due to
an emergency situation or time sensitive nature of a cyber event,
that contains the following information:
   (1) Details on the activities of the commission, including, but
not limited to, progress on the commission's various tasks and
actions taken and recommended in response to an incident, as
appropriate.
   (2) Policy, organizational, and investment recommendations to
improve the cybersecurity preparedness of the state.
   (b) The reports shall be submitted in compliance with Section
9795. 
   11549.57.  This chapter shall become inoperative on January 1,
2019, and shall be repealed as of that date.