BILL ANALYSIS Ó SB 1444 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1444 (Hertzberg) - As Amended April 19, 2016 ----------------------------------------------------------------- |Policy |Privacy and Consumer |Vote:|11 - 0 | |Committee: |Protection | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires state agencies that own or license computerized data that includes personal information to prepare a computerized personal information security plan detailing the agency's strategy for responding to a security breach of computerized personal information and associated consequences caused by the disclosed personal information. Specifically, this bill requires the plan to include the following elements: 1)A statement of the purpose and objectives. SB 1444 Page 2 2)An inventory of the computerized personal information stored or transmitted by the agency. 3)Identification of resources necessary to implement the plan. 4)Identification of an incident response team tasked with mitigating and responding to a breach, or imminent threat of a breach, to the security of computerized personal information. 5)Procedures for communications within the incident response team and between the incident response team, other individuals within the agency, and individuals outside the agency that need to be notified in the event of a breach of the security of computerized personal information. 6)Policies for training the incident response team and the agency on the implementation of the plan, including, but not limited to, the use of practice drills. 7)A process to review and improve the plan. FISCAL EFFECT: Some state agencies have identified significant costs to comply with this bill. Any compliance costs should be absorbable, however. The requirements of this bill are, in general, already administrative requirements with which agencies should currently be in compliance, and in fact some agencies are in compliance. SB 1444 Page 3 Moreover, these requirements constitute a normal function of state agencies in maintaining the security of personal information within their possession, and as such agencies would be expected to address meeting these requirements on an ongoing basis and with existing resources rather than future budget augmentations. COMMENTS: 1)Background. In a 2015 California State Auditor report entitled "High Risk Update - Information Security, " the Auditor found that "many state entities have weaknesses in their controls over information security. These weaknesses leave some of the State's sensitive data vulnerable to unauthorized use, disclosure, or disruption." State agencies are already bound by at least two statutory requirements related to information security and risk management. a) Government Code Section 11549.3(b) requires all state agencies to implement the policies and procedures issued by the state's Office of Information Security (OIS), within the Department of Technology. Pursuant to its responsibility to establish an information security program (which includes risk management, incident tracking, and disaster recovery), OIS promulgated incident response plan regulations requiring each state entity to "develop, disseminate, and maintain a formal, documented incident SB 1444 Page 4 response plan that provides for the timely assembly of appropriate staff that is capable of developing a response to, appropriate reporting about, and successful recovery from a variety of incidents." Moreover, the State Information Management Manual contains detailed guidance to state entities for creating plans for technology recovery, risk management, breach/incident reporting, and incident response requirements for a breach of personal information. b) Civil Code Section 1798.21, which requires, pursuant to the Act, each state agency to establish "appropriate and reasonable administrative, technical and physical safeguards to ensure compliance" with the provisions of the Act (including the state's data breach notification law), "to ensure the security and confidentiality of records, and to protect against anticipated threats or hazards to their security or integrity which could result in any injury." 2)Purpose. In light of the Auditor's report, the author argues this bill is necessary to ensure that state agencies have appropriate incident response plans. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081