California Legislature—2013–14 Regular Session

Assembly Bill No. 2200

Introduced by Assembly Member John A. Pérez

February 20, 2014

An act to add and repeal Chapter 4.5 (commencing with Section 8305) of Division 1 of Title 2 of the Government Code, relating to cyber security.

LEGISLATIVE COUNSEL’S DIGEST

AB 2200, as introduced, John A. Pérez. California Cyber Security Commission.

Existing law establishes various advisory boards and commissions in state government with specified duties and responsibilities.

This bill would create the California Cyber Security Commission consisting of members comprised of representatives from state, local, and federal government, the Legislature, and private industries, as specified. The duties of the commission would include establishing cyber-attack response strategies and defining a hierarchy of command within the state for this purpose. The bill would require the commission to meet on a monthly basis, and would require the commission to 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.

This bill would abolish the commission, 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.  

Chapter 4.5 (commencing with Section 8305) is
added to Division 1 of Title 2 of the Government Code, to read:

 

Chapter  4.5. California Cyber Security Commission

 

8305.  

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.

8305.1.  

(a) There is in the state government the California
Cyber Security Commission. The commission shall consist of the
following members:

(1) The Director of Emergency Services and his or her designee
with knowledge, expertise, and decisionmaking authority with
respect to the Office of Emergency Services’s information
technology and information security. The director may designate
an individual to serve on his or her behalf if the individual has
knowledge, expertise, and decisionmaking authority with respect
to the Office of Emergency Services’s information technology and
information security.

(2) The Adjutant General of the Military Department and his
or her designee with knowledge, expertise, and decision making
authority with respect to the Military Department’s information
technology and information security. The Adjutant General may
designate an individual to serve on his or her behalf if the
individual has knowledge, expertise, and decisionmaking authority
with respect to the Military Department’s information technology
and information security.

(3) The Director of Technology, or his or her designee to serve
on his or her behalf if the individual has knowledge, expertise, and
decisionmaking authority with respect to the Department of
Technology’s information technology and information security.

(4) The Chief of the Office of Information Security, or his or
her designee to serve on his or her behalf if the individual has
knowledge, expertise, and decisionmaking authority with respect
to the office’s information technology and information security.

(5) The Commission President of the Public Utilities
Commission, or his or her designee to serve on his or her behalf
if the individual has knowledge, expertise, and decisionmaking
authority with respect to the commission’s information technology
and information security.

(6) The Director of Transportation, or his or her designee to
serve on his or her behalf if the individual has knowledge,
expertise, and decisionmaking authority with respect to the
Department of Transportation’s information technology and
information security.

(7) The Insurance Commissioner, or his or her designee to serve
on his or her behalf if the individual has knowledge, expertise, and
decisionmaking authority with respect to the Department of
Insurance’s information technology and information security.

(8) The State Public Health Officer, or his or her designee to
serve on his or her behalf if the individual has knowledge,
expertise, and decisionmaking authority with respect to the State
Department of Public Health’s information technology and
information security.

(9) Four representatives appointed by the Governor who meet
the following requirements:

(A) A representative of the University of California who has
done research in the area of information technology and
information security.

(B) A representative of the California State University who has
done research in the area of information technology and
information security.

(C) A representative from a private university in California who
has done research in the area of information technology and
information security.

(D) A representative from the Lawrence Livermore National
Laboratory or Lawrence Berkeley National Laboratory who has
done research in the area of information technology and
information security.

(10) Three representatives appointed by the Governor who meet
the following requirements:

(A) A representative from the Bureau of Investigations or the
Federal Bureau of Investigation who has knowledge, expertise,
and experience with enforcement or prosecution of cyber crimes.

(B) A representative from the Department of the California
Highway Patrol who has knowledge, expertise, and experience
with enforcement or prosecution of cyber crimes.

(C) A representative from the Department of Justice who has
knowledge, expertise, and experience with enforcement or
prosecution of cyber crimes.

(11) Three representatives from local government who have
knowledge, expertise, and experience with emergency response
to information security breaches. One representative shall be
appointed by the Governor, one representative shall be appointed
by the Speaker of the Assembly, and one representative shall be
appointed by the Senate Committee on Rules.

(12) Four representatives from the retail, finance, utilities, health
care, or technology industries who have knowledge, expertise, and
experience with information technology and information security.
Two representatives shall be appointed by the Governor, one
representative shall be appointed by the Speaker of the Assembly,
and one representative shall be appointed by the Senate Committee
on Rules.

(13) Two representatives who are chairpersons from committees
of the Assembly that address information technology and
information security, who shall be appointed by the Speaker of
the Assembly. These representatives shall serve as nonvoting
members in an advisory capacity.

(14) Two representatives who are chairpersons from committees
of the Senate that address information technology and information
security, who shall be appointed by the Senate Committee on
Rules. These representatives shall serve as nonvoting members in
an advisory capacity.

(b) The commission may also include two representatives from
the United States Department of Homeland Security who have
knowledge, expertise, and experience in the area of information
technology and information security, who serve in a voluntary
capacity and as nonvoting members.

(c) The Director of Emergency Services and the Director of
Technology, or their designees to serve on their behalves if those
individuals have knowledge, expertise, and experience with
information technology and information security, shall serve as
cochairs of the commission.

(d) Twenty 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.

8305.2.  

The commission shall meet monthly, commencing in
January 2015.

8305.3.  

(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.

8305.4.  

This chapter shall become inoperative on January 1,
2020, and shall be repealed as of that date.