BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 2200 (J. Pérez) - California Cyber Security Commission.
          
          Amended: August 4, 2014         Policy Vote: GO 8-1
          Urgency: No                     Mandate: No
          Hearing Date: August 11, 2014                           
          Consultant: Brendan McCarthy    
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 2200 would create the California Cyber Security  
          Commission within the Governor's Office of Emergency Services  
          and require the Commission to take specified actions.

          Fiscal Impact: 
              Ongoing costs of at least $1 million per year to provide  
              staff support to the Commission and to undertake the  
              programmatic responsibilities assigned to the Commission  
              (General Fund).

              Potential costs in the low millions to provide additional  
              training on cyber security issues to specified state  
              employees (General Fund).

          Background: Under current law, the Office of Information  
          Security within the Department of Technology is responsible for  
          ensuring the confidentiality and integrity of state data  
          systems. The Office of Information Security is required to  
          establish policies, standards, and procedures for state agencies  
          to manage security and risk.

          Proposed Law: AB 2200 would create the California Cyber Security  
          Commission within the Governor's Office of Emergency Services  
          and require the Commission to take specified actions.

          Specific provisions of the bill would:
              Establish the Commission within the Governor's Office of  
              Emergency Services;
              Specify the membership of the Commission, to include  
              certain state agency heads, representatives of specified  
              industries and groups, and legislative appointees;
              Authorize the Commission to appoint an advisory board, with  








          AB 2200 (J. Perez)
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              specified members;
              Require the Commission to develop cyber defense strategies,  
              including performing risk assessments on state information  
              technology systems and coordinating efforts to reduce risks  
              to state systems;
              Require the Commission to partner with the federal  
              Department of Homeland Security to develop an information  
              sharing system for cyber threat and response information;
              Require the Commission to provide recommendations on cyber  
              security standards for state agencies;
              Require the Commission to compile research on cyber  
              security threats to state agencies;
              Require the Commission to facilitate public-private  
              partnerships on cyber security issues;
              Require the Commission to develop and provide training to  
              state employees on cyber security issues;
              Require the Commission to analyze issues relating to  
              insurance coverage for state agencies to insure against  
              costs relating to cyber security risks;
              Require the Commission to collaborate with law enforcement  
              agencies;
              Require the Commission to propose improvements to the  
              state's ability to assess and respond to cyber security  
              threats;
              Require the Commission to coordinate the pursuit of federal  
              funds for cyber security;

          The bill includes a sunset date of January 1, 2019.

          Related Legislation: AB 1620 (Rodriguez) would establish the  
          California Emergency Management and Disaster Preparedness  
          Commission and give the Commission specified duties relating to  
          disaster preparedness. That bill will be heard in this  
          committee.

          Staff Comments: The Commission created by the bill would have  
          responsibilities to advise the state and coordinate activities  
          by various state agencies and outside entities. In addition, the  
          Commission would have direct programmatic responsibilities (such  
          as developing training programs for state employees) that are  
          typically assigned to state departments rather than an  
          interagency commission.

          The bill requires the Commission to operate within the  








          AB 2200 (J. Perez)
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          information technology budget of each department served. Given  
          the significant programmatic responsibilities that the bill  
          assigns to the Commission, it does not seem likely that other  
          state agencies would be able to absorb the costs to support the  
          Commission.

          In recent years, the federal government has made a significant  
          amount of grant funding available to the states for programs and  
          projects relating to cyber security. It is not known the extent  
          to which some of the requirements of this bill could be funded  
          with existing or new federal grant funds.