BILL NUMBER: AB 2200	INTRODUCED
	BILL TEXT


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.