BILL ANALYSIS Ó AB 1841 Page 1 Date of Hearing: April 5, 2016 ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION Ed Chau, Chair AB 1841 (Irwin) - As Amended March 28, 2016 SUBJECT: Office of Emergency Services: duties: cybersecurity SUMMARY: Requires the state Office of Emergency Services (OES) to develop, by July 1, 2017, a statewide emergency services response plan for cybersecurity attacks against critical infrastructure, and further requires OES to develop a comprehensive cybersecurity strategy by July 1, 2018, with which all state agencies must report compliance by January 1, 2019. Specifically, this bill: 1)Requires, on or before July 1, 2017, OES to transmit to the Legislature the Cyber Security Annex to the State Emergency Plan (SEP), also known as Emergency Function 18 (or EF 18) that includes, but is not limited to, all of the following: a) Methods for providing emergency services; b) Command structure for state-wide coordinated emergency services; c) Emergency service roles of appropriate state AB 1841 Page 2 agencies; d) Identification of resources to be mobilized; e) Public information plans; and, f) Continuity of government services. 1)Requires, on or before July 1, 2018, OES to develop a comprehensive state cybersecurity strategy setting standards for state agencies to prepare for cybersecurity interference with, or compromise or incapacitation of, critical infrastructure and the development of critical infrastructure information, and to transmit critical infrastructure information to OES. 2)Requires the standards developed by OES to consider all of the following factors: a) Costs to implement the standards; b) Security of critical infrastructure information; c) Centralized management of risk; and, d) National private industry best practices. AB 1841 Page 3 3)Requires OES to post the completed state cybersecurity strategy on its website. 4)Requires each state agency to report to OES on its compliance with the OES cybersecurity standards, no later than January 1, 2019. 5)Requires OES to provide suggestions for a state agency to improve its compliance with the OES cybersecurity standards, if any, to specified public officials. 6)Declares that a cybersecurity compliance report, and any related communication records, are confidential and may not be disclosed pursuant to the California Public Records Act. 7)Defines the terms "critical infrastructure," "critical infrastructure information," "secretary" and "state agency." 8)Makes findings relative to the importance of cybersecurity of state networks, and declares the intent of the Legislature to develop a comprehensive cybersecurity strategy under the coordination of OES. 9)Makes findings and declarations relative to the need to limit the public's right to access to the documents referenced by this bill because of the need to promote public safety by prohibiting access to those who would use that information to thwart the cybersecurity of critical infrastructure systems within the state. EXISTING LAW: AB 1841 Page 4 1)Requires the Governor and OES, pursuant to the California Emergency Services Act (CESA), to prepare for and mitigate the effects of emergencies in the state. (Government Code (GC) 8550, et seq. 2)Requires OES, and its appointed Director, to perform a variety of duties with respect to specified emergency preparedness, mitigation, and response activities in the state, including emergency medical services. (GC 8585, 8585.1) 3)Specifies that the SEP shall be in effect in each political subdivision of the state, and the governing body of each political subdivision shall take necessary actions to carry out the provisions of the SEP. (GC 8568) 4)Requires the Governor to coordinate the SEP and those programs necessary to mitigate the effects of an emergency. (GC 8569) 5)Establishes, within the California Department of Technology (CDT), the Office of Information Security to ensure the confidentiality, integrity, and availability of state systems and applications, and to promote and protect privacy as part of the development and operations of state systems and applications to ensure the trust of the residents of this state. (GC 11549) FISCAL EFFECT: Unknown COMMENTS: AB 1841 Page 5 1)Purpose of this bill . This bill is intended to speed the creation of a statewide cybersecurity response plan, otherwise known as EF 18, and a related strategy with standards for state agencies, by imposing various statutory deadlines. This bill is author-sponsored. 2)Author's statement . According to the author, "Cybersecurity threats are on the rise and California is a priority target because of the size of our economy and the value of our networks and other assets. The state bears a responsibility in actively defending the critical networks that Californians rely on for services. "A denial of service, theft or manipulation of data, disruption or damage to critical infrastructure through a cyber-based attack could have significant impacts on national security, the economy, and the livelihood and safety of individual citizens. In the first half of 2015 alone, the Department of Homeland Security responded to 108 cyber incidents impacting US critical infrastructure: electricity, water, health care, communications, financial, and manufacturing systems, among others? "This issue has prompted state and federal leaders to warn operators of critical infrastructure of the need to bolster cyber defenses to protect against debilitating attacks. In 2015, Governor Brown declared in an executive order on cybersecurity that 'cyber- attacks aimed at breaching and damaging computer networks and infrastructure in California represent a major security risk and increase the state's vulnerability to economic disruption, critical infrastructure damage, privacy violations, and identity theft. "AB 1841 will ensure sufficient preparations are taken to protect these critical infrastructure systems [, which] is a role of state government. A comprehensive cybersecurity strategy, undertaken in a coordinated effort between federal AB 1841 Page 6 and state governments and private entities, will help prepare for cyberattacks on these critical infrastructure systems, and reduce the potential consequences from those attacks." 3)OES and the incomplete EF 18 . CESA authorizes the Governor to take actions to prepare for, respond to, and prevent natural or human-caused emergencies that endanger life, property, and the state's resources. It further authorizes OES and its Director to take actions to coordinate emergency planning, preparedness, and response activities. OES, in its role as the state's lead agency on emergency preparedness, response, and damage mitigation, has responsibility to develop, implement, and manage a comprehensive strategy to protect the critical infrastructure systems of federal and state governments, and private entities. OES meets that responsibility in part by preparing SEP. The most recent SEP provided by OES is from 2009 and outlines a state-level strategy to support local government efforts during a large-scale emergency. As required by CESA, the plan describes methods for carrying out emergency operations; the process for rendering mutual aid; emergency services of governmental agencies; how resources are mobilized; emergency public information; and continuity of government. The 2009 SEP also establishes the California Emergency Functions which consist of 18 disciplines deemed essential to the emergency management community in California. Led by a State agency, each Emergency Function is designed to bring together discipline-specific stakeholders to AB 1841 Page 7 collaborate and function within the four phases of emergency management: mitigation, preparedness, response, and recovery. At the state level, the Emergency Functions consist of an alliance of state agencies, departments, and other stakeholders with similar discipline-specific responsibilities. According to the OES website, only EF 18 remains incomplete, and is noted as being "in development." CDT, under the Government Operations Agency, is listed as the responsible entity, with the point of contact being the State Chief Information Security Officer. According to a briefing document from CDT provided by the author, CDT has completed two of five steps in the development of EF 18: identifying and engaging stakeholders, and forming a working group. The three remaining steps: clarify authorities, roles and responsibilities; develop functional annex; and develop concept of operations; are listed as "work in progress." 4)This bill in practice . As noted above, AB 1841 is primarily intended to speed the adoption of EF 18 by placing a July 1, 2017, deadline on its development and transmittal to the Legislature. However, the bill has a number of other elements. It would also require OES to develop a broad cybersecurity strategy for critical infrastructure by July 1, 2018, and state agencies would be required to report their compliance with the standards set forth in that strategy document by January 1, 2019. The completed EF 18 and the related OES strategy documents would all be posted publicly online once complete, although the compliance reports from the individual state agencies would be kept confidential for security reasons. 5)Related legislation . SB 949 (Jackson) would authorize the AB 1841 Page 8 Governor to require owners and operators of critical infrastructure to submit critical infrastructure information to OES or any other designee for the purposes of gathering, analyzing, communicating, or disclosing critical infrastructure information. SB 949 is pending hearing in the Senate Governmental Organizations Committee. 6)Double referral . This bill is double-referred to the Assembly Governmental Organization Committee, where it will be heard if passed by this Committee. REGISTERED SUPPORT / OPPOSITION: Support None on file. Opposition None on file. Analysis Prepared by:Hank Dempsey / P. & C.P. / (916) 319-2200 AB 1841 Page 9