BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2200
          Author:   John A. Pérez (D)
          Amended:  8/22/14 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  8-1, 6/24/14
          AYES:  Correa, Cannella, De León, Galgiani, Hernandez, Lieu,  
            Padilla, Torres
          NOES:  Vidak
          NO VOTE RECORDED:  Berryhill, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  74-3, 5/28/14 - See last page for vote


           SUBJECT  :    California Cyber Security Steering Committee

          SOURCE  :     Author


           DIGEST  :    This bill creates a 13-member California Cyber  
          Security Steering Committee (Committee) in the Governors Office  
          of Emergency Services (OES); continues in existence the  
          California Cyber Security Task Force (Task Force); and requires  
          the Committee to seek to implement the policy recommendations of  
          the Task Force based on specified priorities.  Sunsets the  
          provisions of this bill on January 1, 2020.

           Senate Floor Amendments  of 8/22/14 substitute the creation of a  
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          Committee instead of a California Cyber Security Commission, and  
          continue in existence the Task Force.

           ANALYSIS  :    

          Existing law:

          1. Establishes the Department of Technology (DOT) within the  
             Government Operations Agency, responsible for establishing  
             and enforcing state information technology strategic plans,  
             policies, standards, and enterprise architecture.  The  
             Director of DOT is the State Chief Information Officer, and  
             is responsible for enhancing the security, reliability, and  
             quality of information technology networks, services, and  
             systems.

          2. 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.

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

          4. Establishes OES to provide critical infrastructure protection  
             and related emergency response.

          This bill:

          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 cybersecurity  
             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. Continues in existence the Task Force, created in OES and  

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             DOT.

          3. Requires OES and DOT to convene stakeholders, both public and  
             private, to act in an advisory capacity and compile policy  
             recommendations on cyber security for the state.  Requires  
             the Task Force to complete and issue a report of policy  
             recommendations to the Governor's Office and Legislature.

          4. Requires the Task Force to meet at least quarterly within  
             existing resources to ensure the policy recommendations from  
             the report are implemented and any necessary modifications  
             which may arise are addressed in a timely manner.

          5. Requires OES and DOT to collaborate with the Committee to  
             help streamline implementation of policy recommendations set  
             forth in the Task Force's report.  Also, requires that this  
             collaboration be guided by specific priorities as described  
             in this bill.

          6. Authorizes OES and DOT to conduct the strategic direction of  
             risk assessments performed by the Military Department's  
             Computer Network Defense Team as budgeted in the Budget Act  
             of 2014.

          7. Creates the Committee within OES consisting of 13 members, as  
             specified.  Stipulates that members of the Committee 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  
             Committee.  Provides that representatives appointed by the  
             Governor, Speaker of the Assembly, or Senate Rules Committee  
             shall serve a two-year term; any designee shall serve at the  
             pleasure of the official who designated them; and provides  
             that eight members will constitute a quorum.

          8. Requires the Committee to seek to implement the policy  
             recommendation of the Task Force based on the following  
             priorities:

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

             B.    Partnering with the United States Department of  

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                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 training programs with the  
                state's higher education and labor entities to produce a  
                credentialed and qualified state cybersecurity  
                taskforce.

             G.    Expanding collaboration with the state's law  
                enforcement apparatus.

             H.    Proposing potential operational or functional  
                enhancement, as well as investment or spending  
                recommendation and guidance.

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

          9. Authorizes the Task Force to issue reports to the Governor  
             and the Legislature detailing the activities of the Task  
             Force, including, but not limited to, progress on the Task  
             Force's tasks and actions taken and recommended in response  
             to an incident, as appropriate.

          10.Requires the Task Force to engage or accept (a) the services  
             of agency or department personnel, (b) the services of  
             stakeholder organizations, and (c) federal, private, or other  
             nonstate funding, to operate, manage, or conduct the business  
             of the Task Force.  

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          11.Requires the Task Force to operate within the current  
             information technology budget of each department and agency  
             they serve.  

          12.Requires each department and agency to cooperate with the  
             commission and furnish it with information and assistance  
             necessary or useful to further the purposes of this bill.

          13.Contains a January 1, 2020 sunset provision.

           Background
           
          The OIS is the primary state office charged with protecting  
          state information and ensuring confidentiality, integrity, and  
          availability of state systems and applications.  In short, OIS  
          is responsible, along with other agencies, for ensuring the  
          state's cybersecurity.  However, various other programs and  
          agencies have roles related to managing the state's  
          cybersecurity. 

          In May 2013, the Governor's Office convened the Task Force to  
          assess departmental technology systems and assemble key  
          stakeholders to discuss cybersecurity issues.  The state has  
          made a number of cybersecurity investments, including:  funding  
          research at Lawrence Livermore Laboratories and augmenting the  
          cybersecurity unit within the California National Guard.  In  
          addition, numerous academic and private sector organizations are  
          working on the issue of cybersecurity.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          Unknown with latest amendments.

           SUPPORT  :   (Verified  8/25/14)

          Bay Area Council
          League of California Cities
          Risk and Insurance Management Society
          San Diego Regional Economic Development Corporation 
          SMUD

           OPPOSITION  :    (Verified  8/25/14)

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          Office of the San Diego County District Attorney

           ARGUMENTS IN SUPPORT  :    The League of California Cities writes  
          that this bill places cybersecurity on more solid footing, with  
          enhanced visibility and importance within the state policymaking  
          arena.  This is an issue of rapidly increasing importance that  
          not only affects the financial data of businesses and personal  
          data of private individuals, but has national security  
          implications - as evidenced by the fact that the U.S. Defense  
          Department has taken a leading role, in part due to concerns  
          about potential cyber-attacks launched by other nations.  Closer  
          to home, California municipalities, to the degree they are  
          digitizing their financial and other data and engaging in  
          electronic transactions, are also at risk, so this is and will  
          remain a critical issue for many of our larger cities.

           ARGUMENTS IN OPPOSITION  :    The Office of the San Diego County  
          District Attorney writes, "we believe this proposal is misguided  
          and will have a deleterious effect on the work that is currently  
          being done in this region served by our Computer and Technology  
          Crime High-Tech Response Team (CATCH).  For the past several  
          years, the legislature has decreased our funding, leading to  
          budget uncertainty that jeopardized the very existences of these  
          critical teams.  The state even disbanded the Advanced Training  
          Division (ATC), which provided critical training for these task  
          forces.  Incredibly, despite the state's damaging actions over  
          the past several years, our task force has increased  
          investigations and prosecutions.  Now, AB 2200 seeks to deliver  
          what can only be described as life-threatening blow to the very  
          law enforcement groups who are the most knowledgeable about one  
          of the fastest growing and economically threatening criminal  
          trends in our communities."


           ASSEMBLY FLOOR  :  74-3, 5/28/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chesbro, Conway, Cooley, Dababneh,  
            Dahle, Daly, Dickinson, Eggman, Fong, Fox, Garcia, Gatto,  
            Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall,  
            Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine,  
            Linder, Logue, Lowenthal, Maienschein, Medina, Melendez,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson,  

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            Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva,  
            Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting,  
            Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada,  
            Atkins
          NOES:  Donnelly, Beth Gaines, Mansoor
          NO VOTE RECORDED:  Chávez, Frazier, Vacancy


          MW:d  8/25/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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