BILL ANALYSIS Ó AB 1841 Page 1 Date of Hearing: May 18, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1841 (Irwin) - As Amended April 14, 2016 ----------------------------------------------------------------- |Policy |Privacy and Consumer |Vote:|11 - 0 | |Committee: |Protection | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Governmental Organization | |21 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the state Office of Emergency Services (OES), in conjunction with the Department of Technology (CDT), to develop, by July 1, 2017, a statewide emergency services response plan for cybersecurity attacks against critical AB 1841 Page 2 infrastructure (EF 18), and further requires OES and CDT to develop a comprehensive cybersecurity strategy by January 1, 2018, with which all state agencies must report compliance by January 1, 2019. FISCAL EFFECT: 1)Unknown costs to OES to complete EF 18. This final piece of the emergency services response plan has been pending completion since 2011, and efforts are underway to complete it. Some additional resources may be required to support necessary hardware, software, and development of a secure database. 2)Ongoing costs to OES of approximately $1 million (GF) for data base management and IT Services Division and Critical Infrastructure Protection Unit functions, once the project is complete. COMMENTS: 1)Purpose. 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. 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." 2)Background. In 2009, the California Legislature merged the powers, purposes, and responsibilities of the former OES with AB 1841 Page 3 those of the Office of Homeland Security (OHS) into the newly- created California Emergency Management Agency (CalEMA). On July 1, 2013, Governor Edmund G. Brown Jr.'s Reorganization Plan #2 eliminated CalEMA and restored it to the Governor's Office, renaming it the California Governor's Office of Emergency Services (OES), and merging it with the Office of Public Safety Communications. Today, OES is responsible for overseeing and coordinating emergency preparedness, response, recovery and homeland security activities within the state. 3)State Emergency Plan (SEP). The SEP addresses the state's response to extraordinary emergency situations associated with natural disasters or human-caused emergencies. In accordance with the California Emergency Services Act, the plan describes the methods for carrying out emergency operations, the process for rendering mutual aid, the emergency services of governmental agencies, how resources are mobilized, how the public will be informed, and the process to ensure continuity of government during emergency or disaster. The SEP, amongst other things, establishes the California Emergency Functions (CA-EFs), which consist of 18 primary activities deemed essential to addressing the emergency management needs of communities in all phases of emergency management. 4)OES and EF 18. 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. According to OES, only EF 18 remains incomplete, and is noted as being "in development." According to a briefing document from CDT provided by the author, CDT has completed AB 1841 Page 4 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." EF 18 has been pending completion since 2011. This bill requires OES to finish EF 18 and provides deadlines for doing so. 5)Related legislation. This is one of five cybersecurity-related bills before this Committee today: a) AB 1881 (Chang) requires the Director of CDT to develop and update mandatory baseline security controls for state networks based industry and national standards, and annually measure the state's progress towards compliance. b) AB 2623 (Gordon) requires state agencies and entities to report their information security expenditures on an annual basis to the CDT, including the expenditure of federal grant funds for information security purposes. c) AB 2595 (Linder) establishes the California Cybersecurity Integration Center within the Office of Emergency Services to develop a cybersecurity strategy for California, and authorizes the administration of federal homeland security grant funding by OES. d) AB 2720 (Chau) authorizes the creation of a Cybersecurity Vulnerability Reporting Reward Program that would provide a monetary reward to eligible individuals who AB 1841 Page 5 identify and report previously unknown vulnerabilities in state computer networks. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081