BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 670


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          ASSEMBLY THIRD READING


          AB  
          670 (Irwin)


          As Amended  April 6, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Privacy         |11-0  |Gatto, Wilk, Baker,  |                     |
          |                |      |Calderon, Chang,     |                     |
          |                |      |Chau, Cooper,        |                     |
          |                |      |Dababneh, Dahle,     |                     |
          |                |      |Gordon, Low          |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,      |                     |
          |                |      |Bonta, Calderon,     |                     |
          |                |      |Chang, Daly, Eggman, |                     |
          |                |      |Gallagher,           |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Jones, Quirk,        |                     |
          |                |      |Rendon, Wagner,      |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
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                                                                       AB 670


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          SUMMARY:  Requires the Department of Technology (CalTech) to  
          conduct security assessments of the information technology  
          resources of every state agency, department or office at least  
          once every two years.  Specifically, this bill:  


          1)Requires the Office of Information Security (OIS) within CalTech  
            to conduct an independent security assessment of every state  
            agency, department, or office at least once every two years. 


          2)Requires the assessment to be conducted in compliance with the  
            National Institute of Standards and Technology (NIST) Special  
            Publication (SP) 800-53 Controls, and to include, to the extent  
            practicable, all of the following components:


             a)   Vulnerability scanning, as specified.


             b)   Penetration testing, when determined to be appropriate by  
               the Governor's Office of Emergency Services.


             c)   A report on the number, severity, and nature of identified  
               vulnerabilities and recommendations for remediation and risk  
               mitigation.


          3)Authorizes CalTech to require any agency out of compliance with  
            the assessment requirement to redirect any funds within the  
            agency's budget, which may be legally expended for these  
            purposes, to pay the costs of the assessment. 


          4)Deletes a pre-existing exemption from independent security  
            assessments for the Department of Forestry and Fire Prevention.








                                                                       AB 670


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          5)Authorizes the Governor's Office of Emergency Services to  
            conduct the strategic direction of security assessments  
            performed by the Military Department's Computer Network Defense  
            Team (CND-T), as specified


          6)Requires CalTech to adopt standards to be included in the State  
            Administrative Manual that set forth the manner for the assessed  
            agency or entity to communicate the assessment results to  
            CalTech, as specified:


          7)Restricts the communication of assessment results only to the  
            assessed entity, approved government employees and validated  
            contractors.  


          8)Requires assessment results and relative aggregated reports to  
            be confidential and exempt from Freedom of Information Act  
            distribution and protected from disclosure by Public Records Act  
            requests. 


          9)Requires data produced by assessments to be retained by all  
            parties for no longer than one year, unless determined otherwise  
            by the Governor's Office of Emergency Services.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee: 


          1)Major state costs of approximately $5 million (General Fund) for  
            two years, for 32 Personal Years for the California Military  
            Department to perform the CND-T assessments.










                                                                       AB 670


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          2)On-going costs to state agencies, in the range of $20,000 to  
            $200,000, per agency for the assessments.  Costs will vary by  
            agency depending on their current security budgets and to what  
            extent this bill mandates a broader or more frequent security  
            assessment and redirection of funds.  


          COMMENTS:  


          Purpose of this bill.  This bill is intended to increase the  
          security of California state computer networks by requiring  
          CalTech to conduct a security assessment of the 384 state  
          agencies, departments and offices under its jurisdiction every two  
          years.  This bill is author-sponsored.




          Analysis Prepared by:                                               
                          Hank Dempsey / P. & C.P. / (916) 319-2200  FN:  
          0000578