BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                       Bill No:  AB  
          2200
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Lou Correa, Chair
                           2013-2014 Regular Session
                                 Staff Analysis

          AB 2200  Author:  John A. Perez
          As Amended:  June 12, 2014
          Hearing Date:  June 24, 2014
          Consultant:  Art Terzakis


                                     SUBJECT  
                      California Cyber Security Commission

                                   DESCRIPTION
           
          AB 2200 creates, until January 1, 2019, a 12-member  
          "California Cyber Security Commission" (CCSC), within the  
          Department of Technology (DOT), as an advisory body to  
          discuss strategies for improving the state's cyber security  
          and cyber response capabilities.  Specifically, this  
          measure:

          1)Makes various legislative findings and declarations  
            relative to the State's growing dependence on technology  
            which has made it increasingly vulnerable technically,  
            legally, and financially to both foreign and domestic  
            cyber security attacks and that 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.

          2)Creates the CCSC within the DOT consisting of the  
            following members:

             a)   The Director of the Department of Technology.

             b)   The Chief of the Office of Information Security.

             c)   The Director of Emergency Services.

             d)   The Attorney General.





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             e)   The Adjutant General of the Military Department.

             f)   The Insurance Commissioner.

             g)   The Secretary of Health and Human Services.

             h)   The Director of Transportation.

             i)   The Controller.

             j)   A representative from the private sector in the  
               technology or cybersecurity industry, appointed by the  
               Governor.

             aa)  A representative from the private sector in the  
               utility, energy, or telecommunications industry,  
               appointed by the Speaker of the Assembly.

             bb)  A representative of California's critical  
               infrastructure interests (e.g., air traffic control,  
               ports, and water systems), appointed the Senate  
               Committee on Rules.

          3)Stipulates that members of the CCSC will meet at least  
            quarterly and serve without compensation, except that  
            members will be entitled to receive actual and necessary  
            travel expenses while on official business of the CCSC.   
            Also, provides that representatives appointed by the  
            Governor, Speaker of the Assembly, or Senate Committee on  
            Rules shall serve a 2-year term.  In addition, any  
            designee shall serve at the pleasure of the official who  
            designated them. Furthermore, provides that nine members  
            will constitute a quorum.

          4)Authorizes the CCSC to form an advisory board comprised  
            of one or more representatives from the following who  
            will serve at the pleasure of the CCSC:

             a)   The U.S. Department of Homeland Security.

             b)   The National Institute for Standards and  
               Technology.

             c)   State and Local Government.

             d)   California's utility grid, both private and public.




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             e)   Technology firms, cybersecurity firms, critical  
               infrastructure operators, utility providers, financial  
               firms, health care providers, and other private  
               industries.

             f)   California's cybersecurity law enforcement  
               apparatus (the Attorney General's eCrimes Unit, the  
               California Highway Patrol, and the five regional task  
               forces of the High Technology Theft Apprehension and  
               Prosecution Program).

             g)   Entities operating with the CCSC to perform its  
               duties, including: the State Threat Assessment Center  
               and fusion centers, the California National Guard's  
               Computer Network Defense Team and California's  
               public/private universities and labs.

          5)Stipulates that the duties of the CCSC shall include:

             a)   Developing cyber prevention, defense, and response  
               strategies and defining a hierarchy of command within  
               the State.

             b)   Partnering with the U.S. Department of Homeland  
               Security to develop an appropriate information sharing  
               system to effectively disseminate cyber threat and  
               response information and data to relevant private and  
               public sector entities.

             c)   Providing recommendations for information  
               technology security standards.

             d)   Compiling and integrating the research conducted by  
               academic institutions, federal laboratories, and other  
               cybersecurity experts.

             e)   Expanding the state's public-private cybersecurity  
               partnership network both domestically and  
               internationally.

             f)   Developing and providing a training program to  
               produce a credentialed and qualified state  
               cybersecurity taskforce.

             g)   Developing, in conjunction with the Department of  




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               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.

             i)   Proposing potential governmental reorganization  
               options.

             j)   Coordinating the pursuit of fiscal resources to  
               enhance the state's cybersecurity, information  
               technology, data privacy, cyber research, and  
               technology-based emergency response capabilities.

          6)Requires the CCSC to issue an annual report to the  
            Governor and the Legislature that details the activities  
            of the CCSC and makes recommendations to improve the  
            state's cybersecurity preparedness.

          7)Contains a January 1, 2019 sunset provision.

                                   EXISTING LAW

           Existing law establishes the DOT within the Government  
          Operations Agency, responsible for establishing and  
          enforcing state information technology strategic plans,  
          policies, standards, and enterprise architecture. The  
          director of the DOT is the state's Chief Information  
          Officer (CIO), and is responsible for enhancing the  
          security, reliability, and quality of information  
          technology networks, services, and systems.

          Existing law requires each state agency to have a chief  
          information officer who is appointed by the head of the  
          state entity, and is responsible for supervising all  
          information technology, including information security.

          Existing law establishes the Office of Information Security  
          (OIS) within DOT, which is responsible for ensuring the  
          confidentiality, integrity, and availability of state  
          systems and applications.  The law requires the OIS to  
          develop an information security program and establish  
          policies, standards, and procedures directing state  
          agencies to effectively manage security and risk.




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                                   BACKGROUND
           
          The Office of Information Security (OIS), within the DOT,  
          is the primary state office charged with protecting state  
          information and ensuring confidentiality, integrity, and  
          availability of state systems and applications.  In short,  
          the OIS is responsible, along with other agencies, for  
          ensuring the state's cyber security.  However, various  
          other programs and agencies have roles related to managing  
          the state's cyber security. 

          This measure would create the 12-member CCSC within the DOT  
          to focus on improving the state's cyber security and cyber  
          response capabilities.  Members, consisting of various  
          state agency department leaders as well as representatives  
          from private sector industries and other interests such as  
          air traffic control, ports, and water systems, would share  
          information to enable state government to protect and  
          secure important information, data, intellectual property,  
          financial networks, and critical infrastructure.

          According to the author's office, AB 2200 "would advance  
          the state's overall cyber security assessment,  
          preparedness, and response systems, promote cyber security  
          information sharing and the use of best practices among the  
          private and public sectors, and identify funding and  
          research opportunities." The author's office contends that  
          different elements of the state's cyber security are  
          currently fragmented and the CCSC would help the state form  
          a coordinated strategy.

                            PRIOR/RELATED LEGISLATION
           
           SB 1286 (Corbett), 2013-14 Session.   Would raise from $35  
          million to $65 million the amount that the Public Utilities  
          Commission may devote to research and development projects  
          for the purposes of cyber security and grid integration.   
          (Held in Senate Committee on Rules)

           AB 1620 (Rodriguez), 20013-14 Session.   Would establish in  
          state government the California Emergency Management and  
          Disaster Preparedness Commission as a statewide  
          executive-level commission to assess and improve the  




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          condition of the state's emergency preparedness,  
          management, and disaster recovery capabilities. (Pending in  
          this committee)
          
           SUPPORT:   None on file as of June 20, 2014.

           OPPOSE:   None on file as of June 20, 2014.

           FISCAL COMMITTEE:   Senate Appropriations Committee

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