BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1172 (Chau) - California cyber security ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 2, 2015 |Policy Vote: G.O. 13 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1172 would formally codify the California Cyber Security Task Force (Task Force) until January 1, 2020, establish the State Director of Cyber Security within the Office of Emergency Services (OES), and prescribe the duties and responsibilities of the Task Force. Fiscal Impact: Ongoing staff costs of at least $650,000 to OES for the Director of Cyber Security position and two additional full-time staff to manage the responsibilities of the Task Force. (General Fund) AB 1172 (Chau) Page 1 of ? Estimated costs of at least $50,000 per year to cover Task Force members' expenses related to the four mandated annual meetings (travel, meals, per diem, reimbursements of actual expenses). (General Fund) Background: Existing law provides that the Department of Technology is generally responsible for the approval and oversight of state information technology (IT) projects. The Office of Information Security (OIS) within the Department of Technology is responsible for ensuring the confidentiality and integrity of state data systems. The OIS is required to establish policies, standards, and procedures for state agencies to manage security and risk. Existing law authorizes the OIS to conduct independent security assessments of any state agency, department, or office, and requires the state entity whose systems are being assessed to pay for the security assessment. In 2013, the Governor administratively directed OES and the Department of Technology to create a Cyber Security Task Force comprised of specified stakeholders, subject matter experts, and cyber security professionals from public, private, academic, and law enforcement sectors. The Task Force serves as an advisory body to senior state officials on cyber security issues, and holds quarterly meetings. The Task Force is currently comprised of seven subcommittees: risk mitigation; information sharing; workforce development and education; economic development; emergency preparedness; legislation and funding; and high tech and digital forensics. Its mission is to enhance the security of California digital infrastructure and to create a culture of cybersecurity through collaboration, information sharing, and education and awareness. Proposed Law: AB 1172 would codify and continue the Task Force in existence within OES, consisting of 11 specified members. The bill would also do the following: Authorize the Task Force to convene public and private stakeholders to act in an advisory role and compile policy recommendations on cyber security. Require the Task Force to annually report policy recommendations to the Governor and Legislature. AB 1172 (Chau) Page 2 of ? Require the Task Force to meet at least quarterly, or more as necessary, to ensure implementation of policy recommendations and make timely modifications to those recommendations. Authorize OES and the Department of Technology to conduct the strategic direction of risk assessments performed by the Military Department's Computer Network Defense Team. Establish the appointed position of the Director of Cyber Security within OES to be the executive director of the Task Force, provide strategic direction of risk assessments, complete a risk profile of state assets and capabilities, act as a point of contact to the federal government and private entities during an emergency, and advise OES and the Department of Technology on cyber security. Require the Task force to perform the following functions: o Develop cyber prevention, defense, and response strategies, and define a hierarchy of command within state government, as specified. o Partner with the U.S. Department of Homeland Security to develop an information sharing system to reflect state priorities and identified threat and capability gaps. o Provide recommendations for IT security standards for state agencies. o Compile and integrate research conducted by academic, federal, and other cyber security experts into state operations and functions. o Expand the public-private security partnership network. o Expand collaboration with the state's law enforcement apparatus assigned jurisdiction to prevent, deter, investigate, and prosecute cyber-attacks and IT crime. o Propose potential operational or functional enhancements to the state's cyber security assessment and response capabilities, and investment or spending recommendations and guidance for the state's IT budget and procurement. Require the Task Force to take necessary steps to protect personal information and privacy, public and private sector data, and constitutional rights. Authorize the Task Force to issue reports to the Governor and Legislature that detail Task Force activities. Authorize the Task Force to engage or accept services of agency or department personnel, accept services of stakeholder AB 1172 (Chau) Page 3 of ? organizations, and accept federal, private, or other non-state funding for Task Force purposes. Require state agencies and departments to cooperate with the Task Force and provide information and assistance necessary to fulfill the bill's purposes. Repeals the Task Force on January 1, 2020. Related Legislation: AB 670 (Irwin), which is currently pending in this committee, would require the Department of Technology to perform security assessments of the IT resources of every state agency, department, or office at least once every two years. AB 2200 (J. Perez), which was approved by the Senate but died without a final vote in the Assembly in 2014, would have created the California Cyber Security Steering Committee within OES and continue the Cyber Security Task Force in existence until 2020. Staff Comments: AB 1172 would formally codify the current administratively-created Task Force, establish a full-time Director of Cyber Security position, and prescribe duties and responsibilities of the Task Force. OES indicates that the prescribed functions of the Task Force exceed the responsibilities of the current Task Force, and would require a minimum of two additional PY of technical and analytical staff to work with the new Director of Cyber Security. The estimated costs of these three positions would be approximately $650,000 annually. The current Task Force does not have a budget or dedicated staff, but some functions are being conducted by existing OES and Department of Technology staff. The Department of Technology indicates that the bill would conflict with current statutory authorities on several levels: (1) current law requires the Director of Technology to supervise the Department and report directly to the Governor on IT issues, and strategic management of the state's IT resources; (2) current law makes the OIS responsible for information security and risk management, including the direction of risk AB 1172 (Chau) Page 4 of ? assessments; (3) current law requires the OIS to serve as the state's Chief Information Security Officer, providing direction for information security and privacy to state agencies, and to represent the state when coordinating with federal, state, private, and local entities on issues that impact information security and privacy. This bill would create duplicative duties for the Task Force that would be located within OES, with the Department of Technology as a junior partner on the Task Force. 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. Proposed Author Amendments: The author has proposed a minor amendment to specify that the Director of Cyber Security would be "subject to Senate confirmation," rather than "confirmed by the Senate." -- END --