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Energy, Communications & Cybersecurity Subcommittee Meeting Packet, January 25, 2024

Summary

A meeting packet for the Energy, Communications & Cybersecurity Subcommittee of the Commerce Committee of the Florida House of Representatives, for the meeting on Thursday, January 25, 2024. The agenda lists consideration of HB 1555 Cybersecurity, by Giallombardo, and HB 7047 OGSR/Utility Owned or Operated by a Unit of Local Government, followed by a cybersecurity update. The packet includes the House of Representatives staff analysis of HB 1555, which states that the bill revises the duties of the Florida Digital Service and requires state agencies to report all ransomware incidents to the Cybersecurity Operations Center. It closes with bill text for HB 7047, whose last section provides that the act takes effect October 1, 2024.

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“Energy, Communications & Cybersecurity Subcommittee Meeting Packet, January 25, 2024.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-25-3226-energy-communications-cybersecurity-subcommittee-meeti-340f2e54cc/, SHA-256 af47572886360c062b011a23407ca258a95fabef61941c4ffa62ef887bdac5cd.

Full text

               Energy, Communications &
              Cybersecurity Subcommittee
                   Thursday, January 25, 2024
                       3:00 PM - 6:00 PM
                      Reed Hall (102 HOB)


                       Meeting Packet




Paul Renner                                     Mike Giallombardo
Speaker                                                     Chair
                    The Florida House of Representatives
                                           Commerce Committee
                   Energy, Communications & Cybersecurity Subcommittee
Paul Renner                                                                                    Mike Giallombardo
Speaker                                                                                                    Chair



                                           Meeting Agenda
                                        Thursday, January 25, 2024
                                           3:00 pm – 6:00 pm
                                          Reed Hall (102 HOB)



  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

IV.    Consideration of the following bill(s):
          • HB 1555 Cybersecurity by Giallombardo
          • HB 7047 OGSR/Utility Owned or Operated by a Unit of Local Government by
             Ethics, Elections & Open Government Subcommittee, Porras

 V.    Cybersecurity Update

VI.    Closing Remarks

VII.   Adjournment




                   303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                   (850) 717-4870
HB 1555
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 1555 Cybersecurity
SPONSOR(S): Giallombardo
TIED BILLS:       IDEN./SIM. BILLS:                      SB 1662

  REFERENCE                                                       ACTION                    ANALYST               STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

  1) Energy, Communications & Cybersecurity                                                 Bauldree              Keating
     Subcommittee

  2) State Administration & Technology
     Appropriations Subcommittee

  3) Commerce Committee

                                           SUMMARY ANALYSIS
Over the last decade, cybersecurity has rapidly become a growing concern. Cyberattacks are growing in
frequency and severity. Currently, the Department of Management Services (DMS) oversees information
technology (IT) governance and security for the executive branch of state government. The Florida Digital
Service (FLDS) is housed within DMS and was established in 2020 to replace the Division of State
Technology. Through FLDS, DMS implements duties and policies for IT and cybersecurity for state agencies.

The bill:
   • Revises the duties of FLDS;
   • Provides definitions;
   • Provides that the state chief information officer (CIO), in consultation with the Secretary of DMS, must
        designate a state chief technology officer and specifies the position’s responsibilities;
   • Requires FLDS to ensure independent project oversight on all state agency IT projects that have a total
        project cost of $25 million or more (up from $10 million in current law);
   • Provides that FLDS no longer must conduct annual assessments of state agencies to determine
        compliance with IT standards and guidelines developed and published by DMS;
   • Requires each state agency to designate a chief information security officer to integrate the agency’s
        technical and operational cybersecurity efforts with Cybersecurity Operations Center (CSOC);
   • Requires state agencies to report all ransomware incidents, regardless of severity level, to the CSOC
        as soon as possible, but no later than 12 hours after a cybersecurity incident and no later than 6 hours
        after the discovery of a ransomware incident;
   • Requires local governments to report any cybersecurity incident determined to be level 3, 4, or 5 to the
        CSOC rather than the Cybercrime Office and the sheriff who has jurisdiction over the local government;
   • Requires CSOC to immediately notify the Cybercrime Office of the Florida Department of Law
        Enforcement of a reported incident;
   • Requires CSOC to immediately notify the state CIO and the state cyber security information officer of a
        reported incident;
   • Classifies certain IT security personnel as select exempt;
   • Authorizes DMS to brief legislative committees on cybersecurity matters in a closed setting; and
   • Requires that one of the three representatives on the Cybersecurity Advisory Council (CAC) from the
        critical infrastructure sectors must be from a utility provider and requires that one of the members of the
        CAC is a representative from a local government.

The bill does not have a fiscal impact on state or local government revenues or local government expenditures.
The bill may increase state expenditures. See Fiscal Analysis & Economic Impact Statement.

The bill provides an effective date of July 1, 2024.



This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1555.ECC
DATE: 1/24/2024
                                                           FULL ANALYSIS

                                                   I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Current Situation

         Over the last decade, cybersecurity has rapidly become a growing concern. Cyberattacks are growing
         in frequency and severity. Cybercrime was expected to inflict $8 trillion worth of damage globally in
         2023. 1 The United States is often a target of cyberattacks, including attacks on critical infrastructure,
         and has been a target of more significant cyberattacks 2 over the last 14 years than any other country. 3
         The Colonial Pipeline is an example of critical infrastructure that was attacked, disrupting what is
         arguably the nation’s most important fuel conduit. 4

         Ransomware is a type of cybersecurity incident where malware 5 that is designed to encrypt files on a
         device renders the files and the systems that rely on them unusable. In other words, critical information
         is no longer accessible. During a ransomware attack, malicious actors demand a ransom in exchange
         for regained access through decryption. If the ransom is not paid, the ransomware actors will often
         threaten to sell or leak the data or authentication information. Even if the ransom is paid, there is no
         guarantee that the bad actor will follow through with decryption.

         In recent years, ransomware incidents have become increasingly prevalent among the nation’s state,
         local, tribal, and territorial government entities and critical infrastructure organizations. 6 For example,
         Tallahassee Memorial Hospital was hit by a ransomware attack early in 2023, and the hospital’s
         systems were forced to shut down, impacting many local residents in need of medical care. 7 Likewise,
         Tampa General Hospital detected a data breach in May of 2023, which may have compromised the
         data of up to 1.2 million patients. 8

         IT and Cybersecurity Management

         The Department of Management Services (DMS) oversees information technology (IT) 9 governance
         and security for the executive branch in Florida. 10 The Florida Digital Service (FLDS) is housed within




1 Cybercrime Magazine, Cybercrime to Cost the World $8 Trillion Annually in 2023, https://cybersecurityventures.com/cybercrime-to-

cost-the-world-8-trillion-annually-in-2023/ (last visited Jan. 23, 2024).
2 “Significant cyber-attacks” are defined as cyber-attacks on a country’s government agencies, defense, and high-tech companies, or

economic crimes with losses equating to more than a million dollars. FRA Conferences, Study: U.S. Largest Target for Significant
Cyber-Attacks, https://www.fraconferences.com/insights-articles/compliance/study-us-largest-target-for-significant-cyber-
attacks/#:~:text=The%20United%20States%20has%20been%20on%20the%20receiving,article%20is%20from%20FRA%27s%20sister
%20company%2C%20Compliance%20Week (last visited Jan. 23, 2024).
3 Id.
4S&P Global, Pipeline operators must start reporting cyberattacks to government: TSA orders,

https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/electric-power/052721-pipeline-operators-must-start-
reporting-cyberattacks-to-government-tsa-
orders?utm_campaign=corporatepro&utm_medium=contentdigest&utm_source=esgmay2021 (last visited Jan. 23, 2024).
5 “Malware” means hardware, firmware, or software that is intentionally included or inserted in a system for a harmful purpose.

https://csrc.nist.gov/glossary/term/malware (last visited Jan. 23, 2024).
6 Cybersecurity and Infrastructure Agency, Ransomware 101, https://www.cisa.gov/stopransomware/ransomware-101 (last visited Jan.

23, 2024).
7 Tallahassee Democrat, TMH says it has taken ‘major step’ toward restoration after cybersecurity incident (Feb. 15, 2023)

https://www.tallahassee.com/story/news/local/2023/02/14/tmh-update-hospital-has-taken-major-step-toward-restoration/69904510007/
(last visited Jan. 23, 2023).
8 Alessandro Mascellino, Infosecurity Magazine, Tampa General Hospital Data Breach Impacts 1.2 Million Patients (Jul. 24, 2023),

https://www.infosecurity-magazine.com/news/tampa-hospital-data-breach/ (last visited Jan. 24, 2023).
9 The term “information technology” means equipment, hardware, software, firmware, programs, systems, networks, infrastructure,

media, and related material used to automatically, electronically, and wirelessly collect, receive, access, transmit, display, store, record,
retrieve, analyze, evaluate, process, classify, manipulate, manage, assimilate, control, communicate, exchange, convert, converge,
interface, switch, or disseminate information of any kind or form. S. 282.0041(19), F.S.
10 See s. 20.22, F.S.

STORAGE NAME: h1555.ECC                                                                                                              PAGE: 2
DATE: 1/24/2024
         DMS and was established in 2020 to replace the Division of State Technology. 11 FLDS works under
         DMS to implement policies for IT and cybersecurity for state agencies. 12
         The head of FLDS is appointed by the Secretary of Management Services 13 and serves as the state
         chief information officer (CIO). 14 The CIO must have at least five years of experience in the
         development of IT system strategic planning and IT policy and, preferably, have leadership-level
         experience in the design, development, and deployment of interoperable software and data solutions. 15
         FLDS must propose innovative solutions that securely modernize state government, including
         technology and information services, to achieve value through digital transformation and
         interoperability, and to fully support Florida’s cloud first policy. 16

         DMS, through FLDS, has the following powers, duties, and functions:
           • Develop IT policy for the management of the state’s IT resources;
           • Develop an enterprise architecture;
           • Establish project management and oversight standards with which state agencies must comply
               when implementing IT projects;
           • Perform project oversight on all state agency IT projects that have a total cost of $10 million or
               more and that are funded in the General Appropriations Act or any other law; and
           • Identify opportunities for standardization and consolidation of IT services that support
               interoperability, Florida’s cloud first policy, and business functions and operations that are
               common across state agencies. 17

         State Cybersecurity Act

         In 2021, the Legislature passed the State Cybersecurity Act, 18 which requires DMS and the heads of
         the state agencies 19 to meet certain requirements to enhance the cybersecurity 20 of the state agencies.
         DMS is tasked with completing the following, through FLDS:
             • Establishing standards for assessing agency cybersecurity risks;
             • Adopting rules to mitigate risk, support a security governance framework, and safeguard agency
                 digital assets, data, 21 information, and IT resources; 22
             • Designating a chief information security officer (CISO);
             • Developing and annually updating a statewide cybersecurity strategic plan to address matters
                 such as identification and mitigation of risk, protections against threats, and tactical risk
                 detection for cyber incidents; 23
             • Developing and publishing for use by state agencies a cybersecurity governance framework;
             • Assisting the state agencies in complying with the State Cybersecurity Act;
             • Annually providing training on cybersecurity for managers and team members;
             • Annually reviewing the strategic and operational cybersecurity plans of state agencies;
             • Tracking the state agencies’ implementation of remediation plans;


11 Ch. 2020-161, L.O.F.
12 See s. 20.22(2)(b), F.S.
13 The Secretary of Management Services serves as the head of DMS and is appointed by the Governor, subject to confirmation by the

Senate. S. 20.22(1), F.S.
14 S. 282.0051(2)(a), F.S.
15 Id.
16 S. 282.0051(1), F.S.
17 Id.
18 Ch. 2012-234, L.O.F.
19 For purposes of the State Cybersecurity Act, the term “state agency” includes the Department of Legal Affairs, the Department of

Agriculture and Consumer Services, and the Department of Financial Services. S. 282.318(2), F.S.
20 “Cybersecurity” means the protection afforded to an automated information system in order to attain the applicable objectives of

preserving the confidentiality, integrity, and availability of data, information, and IT resources. S. 282.0041(8), F.S.
21 “Data” means a subset of structured information in a format that allows such information to be electronically retrieved and transmitted.

S. 282.0041(9), F.S.
22 “Information technology resources” means data processing hardware and software and services, communications, supplies,

personnel, facility resources, maintenance, and training. S. 282.0041(22), F.S.
23 “Incident” means a violation or imminent threat of violation, whether such violation is accidental or deliberate, of IT resources,

security, policies, or practices. An imminent threat of violation refers to a situation in which the state agency has a factual basis for
believing that a specific incident is about to occur. S. 282.0041(19), F.S.
STORAGE NAME: h1555.ECC                                                                                                           PAGE: 3
DATE: 1/24/2024
              •   Providing cybersecurity training to all state agency technology professionals that develops,
                  assesses, and documents competencies by role and skill level;
              •   Maintaining a Cybersecurity Operations Center (CSOC) led by the CISO to serve as a
                  clearinghouse for threat information and coordinate with FDLE to support responses to
                  incidents; and
              •   Leading an Emergency Support Function under the state emergency management plan. 24

         The State Cybersecurity Act requires the head of each state agency to designate an information
         security manager to administer the state agency’s cybersecurity program. 25 The head of the agency
         has additional tasks in protecting against cybersecurity threats as follows:
           • Establish a cybersecurity incident response team with FLDS and the Cybercrime Office in FDLE,
               which must immediately report all confirmed or suspected incidents to the CISO;
           • Annually submit to DMS the state agency’s strategic and operational cybersecurity plans;
           • Conduct and update a comprehensive risk assessment to determine the security threats;
           • Develop and update written internal policies and procedures for reporting cyber incidents;
           • Implement safeguards and risk assessment remediation plans to address identified risks;
           • Ensure internal audits and evaluations of the agency’s cybersecurity program are conducted;
           • Ensure that the cybersecurity requirements for the solicitation, contracts, and service-level
               agreement of IT and IT resources meet or exceed applicable state and federal laws, regulations,
               and standards for cybersecurity, including the National Institute of Standards and Technology
               (NIST) 26 cybersecurity framework;
           • Provide cybersecurity training to all agency employees within 30 days of employment; and
           • Develop a process that is consistent with the rules and guidelines established by FLDS for
               detecting, reporting, and responding to threats, breaches, or cybersecurity incidents. 27

         Florida Cybersecurity Advisory Council

         The Florida Cybersecurity Advisory Council 28 (CAC) within DMS 29 assists state agencies in protecting
         IT resources from cyber threats and incidents. 30 The CAC must assist FLDS in implementing best
         cybersecurity practices, taking into consideration the final recommendations of the Florida
         Cybersecurity Task Force – a task force created to review and assess the state’s cybersecurity
         infrastructure, governance, and operations. 31 The CAC meets at least quarterly to:
             • Review existing state agency cybersecurity policies;
             • Assess ongoing risks to state agency IT;
             • Recommend a reporting and information sharing system to notify state agencies of new risks;
             • Recommend data breach simulation exercises;
             • Assist FLDS in developing cybersecurity best practice recommendations; and
             • Examine inconsistencies between state and federal law regarding cybersecurity. 32

24 Ch. 2021-234, L.O.F.
25 S. 282.318(4)(a), F.S.
26 NIST, otherwise known as the National Institute of Standards and Technology, “is a non-regulatory government agency that develops

technology, metrics, and standards to drive innovation and economic competitiveness at U.S.-based organizations in the science and
technology industry.” Nate Lord, What is NIST Compliance, DataInsider (Dec. 1, 2020), https://www.digitalguardian.com/blog/what-nist-
compliance (last visited Jan. 23, 2024).
27 S. 282.318(4), F.S.
28 The CAC is comprised of: the Lieutenant Governor or his or her designee; the state CIO; the state chief information security officer;

the director of the Division of Emergency Management or his or her designee; a representative of the computer crime center of the
Department of Law Enforcement, appointed by the executive director of the Department of Law Enforcement; a representative of the
Florida Fusion Center of the Department of Law Enforcement, appointed by the executive director of the Department of Law
Enforcement; the Chief Inspector General; up to two representatives from institutions of higher education located in this state,
appointed by the Governor; three representatives from critical infrastructure sectors, one of whom must be from a water treatment
facility, appointed by the Governor; four representatives of the private sector with senior level experience in cybersecurity or software
engineering from within the finance, energy, health care, and transportation sectors, appointed by the Governor; and two
representatives with expertise on emerging technology, with one appointed by the President of the Senate and one appointed by the
Speaker of the House of Representatives. S, 282.319(3), F.S.
29 S. 282.319(1), F.S.
30 S. 282.319(2), F.S.
31 S. 282.319(3), F.S.
32 S. 282.319(9), F.S.

STORAGE NAME: h1555.ECC                                                                                                          PAGE: 4
DATE: 1/24/2024
         The CAC must work with NIST and other federal agencies, private sector businesses, and private
         security experts to identify which local infrastructure sectors, not covered by federal law, are at the
         greatest risk of cyber-attacks and to identify categories of critical infrastructure as critical cyber
         infrastructure if cyber damage to the infrastructure could result in catastrophic consequences. 33

         The CAC must also prepare and submit a comprehensive report to the Governor, the President of the
         Senate, and the Speaker of the House of Representatives that includes data, trends, analysis, findings,
         and recommendations for state and local action regarding ransomware incidents that includes:
            • Descriptive statistics, including the amount of ransom requested, duration of the incident, and
                overall monetary cost to taxpayers of the incident;
            • A detailed statistical analysis of the circumstances that led to the ransomware incident which
                does not include the name of the state agency or local government, network information, or
                system identifying information;
            • Statistical analysis of the level of cybersecurity employee training and frequency of data backup
                for the state agencies or local governments that reported incidents;
            • Specific issues identified with current policy, procedure, rule, or statute and recommendations to
                address those issues; and
            • Other recommendations to prevent ransomware incidents.

         Cyber Incident Response

         The National Cyber Incident Response Plan (NCIRP) was developed according to the direction of
         Presidential Policy Directive-41, 34 by the U.S. Department of Homeland Security. The NCIRP is part of
         the broader National Preparedness System and establishes the strategic framework for a whole-of-
         Nation approach to mitigating, responding to, and recovering from cybersecurity incidents posing risk to
         critical infrastructure. 35 The NCIRP was developed in coordination with federal, state, local, and private
         sector entities and is designed to interface with industry best practice standards for cybersecurity,
         including the NIST Cybersecurity Framework.

         The NCIRP adopted a schema for describing the severity of cybersecurity incidents affecting the U.S.
         The schema establishes a common framework to evaluate and assess cybersecurity incidents to
         ensure that all departments and agencies have a common view of the severity of a given incident;
         urgency required for responding to a given incident; seniority level necessary for coordinating response
         efforts; and level of investment required for response efforts. 36

         The severity level of a cybersecurity incident in accordance with the NCIRP is determined as follows:
            • Level 5: An emergency-level incident within the specified jurisdiction if the incident poses an
               imminent threat to the provision of wide-scale critical infrastructure services; national, state, or
               local security; or the lives of the country’s, state’s, or local government’s citizens.
            • Level 4: A severe-level incident if the incident is likely to result in a significant impact within the
               affected jurisdiction which affects the public health or safety; national, state, or local security;
               economic security; or individual civil liberties.
            • Level 3: A high-level incident if the incident is likely to result in a demonstrable impact in the
               affected jurisdiction to public health or safety; national, state, or local security; economic
               security; civil liberties; or public confidence.
            • Level 2: A medium-level incident if the incident may impact public health or safety; national,
               state, or local security; economic security; civil liberties; or public confidence.


33 S. 282.319(10), F.S.
34 Annex for PPD-41: U.S. Cyber Incident Coordination, available at: https://obamawhitehouse.archives.gov/the-press-

office/2016/07/26/annex-presidential-policy-directive-united-states-cyber-incident (last visited Jan. 23, 2024).
35 Cybersecurity & Infrastructure Security Agency, Cybersecurity Incident Response, available at

https://www.cisa.gov/topics/cybersecurity-best-practices/organizations-and-cyber-safety/cybersecurity-incident-
response#:~:text=%20National%20Cyber%20Incident%20Response%20Plan%20%28NCIRP%29%20The,incidents%20and%20how%
20those%20activities%20all%20fit%20together (last visited Jan. 23, 2024).
36 Id.

STORAGE NAME: h1555.ECC                                                                                         PAGE: 5
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              •    Level 1: A low-level incident if the incident is unlikely to impact public health or safety; national,
                   state, or local security; economic security; or public confidence. 37

         State agencies and local governments in Florida, must report all ransomware incidents and any
         cybersecurity incidents at severity levels 3, 4, and 5 as soon as possible to the CSOC, but no later than
         48 hours after discovery of a cybersecurity incident and no later than 12 hours after discovery of a
         ransomware incident. 38 CSOC must notify the President of the Senate and the Speaker of the House of
         Representatives of any severity level 3, 4, or 5 incident as soon as possible, but no later than 12 hours
         after receiving the incident report from the state agency or local government. 39 For state agency
         incidents at severity levels 1 and 2, the agency or local government must report these incidents to
         CSOC and the Cybercrime Office at FDLE as soon as possible. 40

         The notification must include a high-level description of the incident and the likely effects. An incident
         report for a cybersecurity or ransomware incident by a state agency or local government must include,
         at a minimum:
              • A summary of the facts surrounding the cybersecurity or ransomware incident;
              • The date on which the state agency or local government most recently backed up its data, the
                  physical location of the backup, if the backup was affected, and if the backup was created
                  using cloud computing;
              • The types of data compromised by the cybersecurity or ransomware incident;
              • The estimated fiscal impact of the cybersecurity or ransomware incident;
              • In the case of a ransomware incident, the details of the ransom demanded; and
              • If the reporting entity is a local government, a statement requesting or declining assistance
                  from CSOC, FDLE Cybercrime Office, or sheriff. 41

         In addition, CSOC must provide consolidated incident reports to the President of the Senate, Speaker
         of the House of Representatives, and the CAC on a quarterly basis. 42 The consolidated incident reports
         to the CAC may not contain any state agency or local government name, network information, or
         system identifying information, but must contain sufficient relevant information to allow the CAC to fulfill
         its responsibilities. 43

         State agencies and local governments must submit an after-action report to FLDS within one week of
         the remediation of a cybersecurity or ransomware incident. 44 The report must summarize the incident,
         state the resolution, and any insights from the incident.

         Effect of the Bill

         Definitions

         The bill provides the following definitions:
            • "As a service" means the contracting with or outsourcing to a third party of a defined role or
                 function as a means of delivery.
            • "Cloud provider" means an entity that provides cloud-computing services.

         The bill also defines “enterprise digital data” as information held by a state agency in electronic form
         that is deemed to be data owned by the state and held for state purposes by the state agency. The bill
         provides that enterprise digital data that is subject to statutory requirements for particular types of
         sensitive data or to contractual limitations for data marked as trade secrets or sensitive corporate data
         held by state agencies shall be treated in accordance with such requirements or limitations. Under the

37 S. 282.318(3)(c)9.a, F.S.
38 S. 282.318(3)(c)9.c, F.S.
39 S. 282.318(3)(c)9.c.(II), F.S.
40 S. 282.318(3)(c)(9)(d), F.S.
41 S. 282.318(3)(c)9.b, F.S.
42 S. 282.318(3)(c)9.e, F.S.
43 Id.
44 S. 282.318(4)(k), F.S.

STORAGE NAME: h1555.ECC                                                                                            PAGE: 6
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         bill, DMS must maintain personnel with appropriate licenses, certifications, or classifications to steward
         such enterprise digital data, as necessary.

         DMS and FLDS Duties

         The bill revises the duties of FLDS to include:
            • Leading enterprise IT and cybersecurity efforts.
            • Safeguarding enterprise digital data.
            • Testing, developing, and deploying innovative solutions that securely modernize state
                 government.

         The bill provides that the state CIO, in consultation with the Secretary of DMS, must designate a state
         chief technology officer who is responsible for the following:
             • Establishing and maintaining an enterprise architecture framework that ensures IT investments
                 align with the state’s strategic objectives and initiatives.
             • Conducting comprehensive evaluations of potential technological solutions and cultivating
                 strategic partnerships, internally with state enterprise agencies and externally with the private
                 sector, to leverage collective expertise, foster collaboration, and advance the state’s
                 technological capabilities.
             • Supervising program management of certain enterprise IT initiatives; providing advisory support
                 and oversight for technology-related projects; and continuously identifying and recommending
                 best practices to optimize outcomes of technology projects and enhance the enterprise’s
                 technological efficiency and effectiveness.

         Under the bill, all confirmed or suspected incidents or threats to state IT resources must be reported by
         the state CIO, in consultation with the state CISO, to the Governor.

         The bill provides that chief information security officers, information security managers, and personnel
         employed by or reporting to the state CIO, the state chief data officer, or an agency information security
         manager are designated as Selected Exempt Service and that the salary and benefits for these
         positions will be set accordingly. 45 The bill provides that DMS shall set the salary and benefits of the
         state chief technology officer in accordance with the rules of the Senior Management Service. 46

         The bill requires FLDS to ensure project oversight independent of the state agency on all state agency
         IT projects that have a total project cost of $25 million or more (up from $10 million per current law),
         and that the projects are performed in compliance with applicable state and federal law. The bill
         provides that when FLDS ensures performance of its project oversight function for the Department of
         Financial Services, the Department of Legal Affairs, or the Department of Agriculture and Consumer
         Services, FLDS must report within 30 days after the end of each quarter on any IT projects that FLDS
         identifies as high-risk.

         Under the bill, FLDS no longer must conduct annual assessments of state agencies to determine
         compliance with all IT standards and guidelines developed and published by DMS. The bill removes a
         prohibition on FLDS retrieving or disclosing any data without a shared data agreement in place
         between DMS and the enterprise entity that has primary custodial responsibility of, or data sharing
         responsibility for, that data. The bill gives FLDS the authority to obtain immediate access to public or
         private infrastructure hosting enterprise digital data and to direct, in consultation with the state agency
         that holds the particular data, measures to assess, monitor, and safeguard such data.

         The bill provides that DMS may brief any legislative committee or subcommittee responsible for
         cybersecurity policy in a meeting or other setting closed by the respective body. Such legislative
         committee or subcommittee must maintain the confidential and exempt status of records made


45 The Selected Exempt Service is a separate system of personnel administration for specified positions in state government. S.

110.602, F.S.
46 The Senior Management Service is created as a separate system of personnel administration for positions in the executive branch

the duties and responsibilities of which are primarily and essentially policymaking or managerial in nature. S. 110.402(1), F.S.
STORAGE NAME: h1555.ECC                                                                                                           PAGE: 7
DATE: 1/24/2024
       confidential and exempt under current law. The bill states that a legislator serving on such legislative
       committee or subcommittee may also attend meetings of the Florida Cybersecurity Advisory Council.

       Cybersecurity Operations Center Duties (CSOC)

       The bill creates a new reporting requirement for CSOC. Under the bill, CSOC must immediately notify
       the Cybercrime Office of FDLE of a reported incident and provide regular reports on the status of the
       incident, preserve forensic data to support the subsequent investigation, and provide aid to the
       investigative efforts of the Cybercrime Office, upon request, if the state CISO finds that the investigation
       does not impede remediation of the incident and that there is no risk to the public and no risk to critical
       state functions.

       Under the bill, the CSOC must also immediately notify the state CIO and the state CISO of a reported
       incident. The bill requires that the state CISO notify the President of the Senate and the Speaker of the
       House of Representatives within 24 hours after receiving report of the incident and the notification must
       be provided in a secure environment. The bill requires that within 30 days after the end of each quarter,
       CSOC must provide a consolidated incident report to the Governor, Attorney General, the executive
       director of the Department of Law Enforcement, President of the Senate, Speaker of the House of
       Representatives, and the CAC.

       State Agency Duties

       The bill requires state agencies to report all ransomware incidents, regardless of severity level, to
       CSOC as soon as possible, but no later than 12 hours after a cybersecurity incident and no later than 6
       hours after the discovery of a ransomware incident.

       The bill requires each state agency to designate a chief information security officer to integrate the
       agency’s technical and operational cybersecurity efforts with CSOC. The bill requires that each agency
       shall provide this designation to the FLDS annually in writing. Each agency’s designated chief
       information security officer is under the supervision of the given agency’s department head for
       administrative purposes but must report to the state CISO. An agency may request that DMS procure a
       chief information security officer as a service to fulfill the agency’s duty to designate one. Under the bill,
       each agency’s information security manager must coordinate with the agency’s chief information
       security officer and CSOC and ensure compliance with cybersecurity governance and with the state’s
       enterprise security program and incident response plan.

       Florida Cybersecurity Advisory Council (CAC)

       The bill requires that one of the three representatives on the CAC from the critical infrastructure sectors
       must be from a utility provider. The bill removes the requirement that one CAC member must be from a
       water treatment facility. The bill also adds a requirement that one of the members of the CAC is a
       representative from a local government.

       Local Government Duties

       The bill removes the requirement that a local government must report any cybersecurity incident
       determined to be level 3, 4, or 5 to the Cybercrime Office of FDLE and the sheriff who has jurisdiction
       over the local government. The bill requires a local government to report a cybersecurity incident to
       CSOC within 12 hours of discovery and to report a ransomware incident within 6 hours after discovery.

       Under the bill, after CSOC receives a report of a cybersecurity or ransomware incident, CSOC must
       immediately notify the Cybercrime Office of FDLE and the sheriff who has jurisdiction over the local
       government. CSOC must provide these entities with regular reports on the status of the incident,
       preserve forensic data to support a subsequent investigation, and provide aid to the investigative efforts
       of the Cybercrime Office upon the office’s request if the state CISO finds that the investigation does not
       impede remediation of the incident and that there is no risk to the public and no risk to critical state
       functions. The bill also requires that CSOC immediately notify the state CISO of the reported incident.
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       The state CISO shall notify the President of the Senate and the Speaker of the House of
       Representatives no later than 24 hours after receiving report of the incident and must do so in a secure
       environment.

       Under the bill, if CSOC receives a report from a local government of a level 1 or 2 cybersecurity
       incident, CSOC must immediately notify the Cybercrime Office and the sheriff who has jurisdiction over
       the local government, and CSOC shall provide regular reports on the status of the incident, preserve
       forensic data to support a subsequent investigation, and provide aid to the investigative efforts of the
       Cybercrime Office upon the office’s request if the state CISO finds that the investigation does not
       impede remediation of the incident and that there is no risk to the public and no risk to critical state
       functions.

       The bill provides an effective date of July 1, 2024.

   B. SECTION DIRECTORY:
       Section 1: Amends s. 110.205, F.S., relating to career service; exemptions.

       Section 2: Amends s. 282.0041, F.S., relating to definitions.

       Section 3: Amends s. 282.0051, F.S., relating to Department of Management Services; Florida Digital
       Service; power, duties, and functions.

       Section 4: Amends s. 282.00515, F.S., relating to duties of cabinet agencies.

       Section 5: Amends s. 282.318, F.S., relating to cybersecurity.

       Section 6: Amends s. 282.3185, F.S., relating to local government cybersecurity.

       Section 7: Amends s. 282.319, F.S., relating to Florida Cybersecurity Advisory Council.

       Section 8: Provides an effective date.


                          II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           Indeterminate. The bill may increase state expenditures because it elevates state agency CISO’s,
           information security managers and other related personnel to Selected Exempt Service status and
           requires each state agency to designate a chief information security officer.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:

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       None.

   D. FISCAL COMMENTS:
       None.


                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditures of funds; reduce the authority that counties or municipalities have
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not require or authorize rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




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    1                                         A bill to be entitled
    2                An act relating to cybersecurity; amending s. 110.205,
    3                F.S.; exempting certain personnel from the career
    4                service; providing for the establishment of salary and
    5                benefits for certain positions; amending s. 282.0041,
    6                F.S.; providing definitions; amending s. 282.0051,
    7                F.S.; revising the purposes for which the Florida
    8                Digital Service is established; requiring the Florida
    9                Digital Service to ensure that independent project
10                   oversight on certain state agency information
11                   technology projects is performed in a certain manner;
12                   revising the date by which the Department of
13                   Management Services, acting through the Florida
14                   Digital Service, must provide certain recommendations
15                   to the Executive Office of the Governor and the
16                   Legislature; removing certain duties of the Florida
17                   Digital Service; revising the total project cost of
18                   certain projects for which the Florida Digital Service
19                   must provide project oversight; specifying the date by
20                   which the Florida Digital Service must provide certain
21                   reports; requiring the state chief information
22                   officer, in consultation with the Secretary of
23                   Management Services, to designate a state chief
24                   technology officer; providing duties of the state
25                   chief technology officer; revising the total project

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26                cost of certain projects for which certain procurem ent
27                actions must be taken; removing provisions prohibiting
28                the department, acting through the Florida Digital
29                Service, from retrieving or disclosing certain data in
30                certain circumstances; amending s. 282.00515, F.S.;
31                conforming a cross-reference; amending s. 282.318,
32                F.S.; providing that the Florida Digital Service is
33                the lead entity for a certain purpose; requiring the
34                Cybersecurity Operations Center to provide certain
35                notifications; requiring the state chief information
36                officer to make certain reports in consultation with
37                the state chief information security officer;
38                requiring a state agency to report ransomware and
39                cybersecurity incidents within certain time periods;
40                requiring the Cybersecurity Operations Center to
41                immediately notify certain entities of reported
42                incidents and take certain actions; requiring the
43                state chief information security officer to notify the
44                Legislature of certain incidents within a certain
45                period; requiring certain notification to be provided
46                in a secure environment; requiring the Cybersecurity
47                Operations Center to provide a certain report to
48                certain entities by a specified date; requiring the
49                Florida Digital Service to provide cybersecurity
50                briefings to certain legislative committees;

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51                authorizing the Florida Digital Service to obtain
52                certain access to certain infrastructure and direct
53                certain measures; requiring a state agency head to
54                annually designate a chief information security
55                officer by a specified date; revising the purpose of
56                an agency's information security manager and the date
57                by which he or she must be designated; authorizing the
58                department to brief certain legislative committees in
59                a closed setting on certain records that are
60                confidential and exempt from public records
61                requirements; requiring such legislative committees t o
62                maintain the confidential and exempt status of certain
63                records; authorizing certain legislators to attend
64                meetings of the Florida Cybersecurity Advisory
65                Council; amending s. 282.3185, F.S.; requiring a local
66                government to report ransomware and certain
67                cybersecurity incidents to the Cybersecurity
68                Operations Center within certain time periods;
69                requiring the Cybersecurity Operations Center to
70                immediately notify certain entities of certain
71                incidents and take certain actions; requiring certain
72                notification to be provided in a secure environment;
73                amending s. 282.319, F.S.; revising the membership of
74                the Florida Cybersecurity Advisory Council; providing
75                an effective date.

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 76
 77      Be It Enacted by the Legislature of the State of Florida:
 78
 79                Section 1.       Paragraph (e) of subsection (2) of section
 80      110.205, Florida Statutes, is amended, and paragraph (y) is
 81      added to subsection (2) of that section, to read:
 82                110.205      Career service; exemptions.—
 83                (2)       EXEMPT POSITIONS.—The exempt positions that are not
 84      covered by this part include the following:
 85                (e)       The state chief information officer, the state chief
 86      data officer, the state chief technology officer, and the state
 87      chief information security officer. The Department of Management
 88      Services shall set the salary and benefits of these positions in
 89      accordance with the rules of the Senior Management Service.
 90                (y)       Chief information security officers, information
 91      security managers designated pursuant to s. 282.318(4), and
 92      personnel employed by or reporting to the state chief
 93      information security officer, the state chief data officer, or
 94      an agency information security manager. Unless otherwise fixed
 95      by law, the department shall establish the salary and benefits
 96      for these positions in accordance with the rules of the Selected
 97      Exempt Service, except that the salary and benefits for the
 98      agency information security manager shall be established by the
 99      department in accordance with the rules of the Senior Management
100      Service.

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101                Section 2.         Subsections (3) through (5), (6) through (16),
102      and (17) through (38) of section 282.0041, Florida Statutes, are
103      renumbered as subsections (4) through (6), (8) through (18), and
104      (20) through (41), respectively, and new subsections (3), (7),
105      and (19) are added to that section to read:
106                282.0041          Definitions.—As used in this chapter, the term:
107                (3)        "As a service" means the contracting with or
108      outsourcing to a third party of a defined role or function as a
109      means of delivery.
110                (7)        "Cloud provider" means an entity that provides cloud-
111      computing services.
112                (19)       "Enterprise digital data" means information held by a
113      state agency in electronic form that is deemed to be data owned
114      by the state and held for state purposes by the state agency.
115      Enterprise digital data that is subject to statutory
116      requirements for particular types of sensitive data or to
117      contractual limitations for data marked as trade secrets or
118      sensitive corporate data held by state agencies shall be treated
119      in accordance with such requirements or limitations. The
120      department must maintain personnel with appropriate licenses,
121      certifications, or classifications to steward such enterprise
122      digital data, as necessary. Enterprise digital data must be
123      maintained in accordance with chapter 119. This subsection may
124      not be construed to create or expand an exemption from public
125      records requirements under s. 119.07(1) or s. 24(a), Art. I of

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126      the State Constitution.
127                Section 3.        Subsection (6) of section 282.0051, Florida
128      Statutes, is renumbered as subsection (5), subsections (1) and
129      (4) and present subsection (5) are amended, and paragraph (c) is
130      added to subsection (2) of that section, to read:
131                282.0051         Department of Management Services; Florida
132      Digital Service; powers, duties, and functions.—
133                (1)       The Florida Digital Service is established has been
134      created within the department to lead enterprise information
135      technology and cybersecurity efforts, to safeguard enterprise
136      digital data, to propose, test, develop, and deploy innovative
137      solutions that securely modernize state government, including
138      technology and information services, to achieve value through
139      digital transformation and interoperability, and to fully
140      support the cloud-first policy as specified in s. 282.206. The
141      department, through the Florida Digital Service, shall have the
142      following powers, duties, and functions:
143                (a)       Develop and publish information technology policy for
144      the management of the state's information technology resources.
145                (b)       Develop an enterprise architecture that:
146                1.    Acknowledges the unique needs of the entities within
147      the enterprise in the development and publication of standards
148      and terminologies to facilitate digital interoperability;
149                2.    Supports the cloud-first policy as specified in s.
150      282.206; and

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151                3.    Addresses how information technology infrastructure may
152      be modernized to achieve cloud-first objectives.
153                (c)       Establish project management and oversight standards
154      with which state agencies must comply when implementing
155      information technology projects. The department, acting through
156      the Florida Digital Service, shall provide training
157      opportunities to state agencies to assist in the adoption of the
158      project management and oversight standards. To support data-
159      driven decisionmaking, the standards must include, but are not
160      limited to:
161                1.    Performance measurements and metrics that objec tively
162      reflect the status of an information technology project based on
163      a defined and documented project scope, cost, and schedule.
164                2.    Methodologies for calculating acceptable variances in
165      the projected versus actual scope, schedule, or cost of an
166      information technology project.
167                3.    Reporting requirements, including requirements designed
168      to alert all defined stakeholders that an information technology
169      project has exceeded acceptable variances defined and documented
170      in a project plan.
171                4.    Content, format, and frequency of project updates.
172                5.    Technical standards to ensure an information technology
173      project complies with the enterprise architecture.
174                (d)       Ensure that independent Perform project oversight on
175      all state agency information technology projects that have total

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176      project costs of $25 $10 million or more and that are funded in
177      the General Appropriations Act or any other law is performed in
178      compliance with applicable state and federal law. The
179      department, acting through the Florida Digital Service, sh all
180      report at least quarterly to the Executive Office of the
181      Governor, the President of the Senate, and the Speaker of the
182      House of Representatives on any information technology project
183      that the department identifies as high-risk due to the project
184      exceeding acceptable variance ranges defined and documented in a
185      project plan. The report must include a risk assessment,
186      including fiscal risks, associated with proceeding to the next
187      stage of the project, and a recommendation for corrective
188      actions required, including suspension or termination of the
189      project.
190                (e)       Identify opportunities for standardization and
191      consolidation of information technology services that support
192      interoperability and the cloud-first policy, as specified in s.
193      282.206, and business functions and operations, including
194      administrative functions such as purchasing, accounting and
195      reporting, cash management, and personnel, and that are common
196      across state agencies. The department, acting through the
197      Florida Digital Service, shall biennially on January 15 1 of
198      each even-numbered year provide recommendations for
199      standardization and consolidation to the Executive Office of the
200      Governor, the President of the Senate, and the Speaker of the

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201      House of Representatives.
202                (f)       Establish best practices for the procurement of
203      information technology products and cloud-computing services in
204      order to reduce costs, increase the quality of data center
205      services, or improve government services.
206                (g)       Develop standards for information technology reports
207      and updates, including, but not limited to, operational work
208      plans, project spend plans, and project status reports, for use
209      by state agencies.
210                (h)       Upon request, assist state agencies in the development
211      of information technology-related legislative budget requests.
212                (i)       Conduct annual assessments of state agencies to
213      determine compliance with all information technology standards
214      and guidelines developed and published by the department and
215      provide results of the assessments to the Executive Office of
216      the Governor, the President of the Senate, and the Speaker of
217      the House of Representatives.
218                (i)(j)      Conduct a market analysis not less frequently than
219      every 3 years beginning in 2021 to determine whether the
220      information technology resources within the enterprise are
221      utilized in the most cost-effective and cost-efficient manner,
222      while recognizing that the replacement of certain legacy
223      information technology systems within the enterprise may be cost
224      prohibitive or cost inefficient due to the remaining useful life
225      of those resources; whether the enterprise is complying with the

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226      cloud-first policy specified in s. 282.206; and whether the
227      enterprise is utilizing best practices with respect to
228      information technology, information services, and the
229      acquisition of emerging technologies and information services.
230      Each market analysis shall be used to prepare a strategic plan
231      for continued and future information technology and information
232      services for the enterprise, including, but not limited to,
233      proposed acquisition of new services or technologies and
234      approaches to the implementation of any new services or
235      technologies. Copies of each market analysis and accompanying
236      strategic plan must be submitted to the Executive Office of the
237      Governor, the President of the Senate, and the Speaker of the
238      House of Representatives not later than December 31 of each year
239      that a market analysis is conducted.
240                (j)(k)     Recommend other information technology services
241      that should be designed, delivered, and managed as enterprise
242      information technology services. Recommendations must include
243      the identification of existing information technology resources
244      associated with the services, if existing services must be
245      transferred as a result of being delivered and managed as
246      enterprise information technology services.
247                (k)(l)     In consultation with state agencies, propose a
248      methodology and approach for identifying and collecting both
249      current and planned information technology expenditure data at
250      the state agency level.

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251                (l)(m)1.        Notwithstanding any other law, provide project
252      oversight on any information technology project of the
253      Department of Financial Services, the Department of Legal
254      Affairs, and the Department of Agriculture and Consumer Services
255      which has a total project cost of $25 $20 million or more. Such
256      information technology projects must also comply with the
257      applicable information technology architecture, project
258      management and oversight, and reporting standards established by
259      the department, acting through the Florida Digital Service.
260                2.    When ensuring performance of performing the project
261      oversight function specified in subparagraph 1., report by the
262      30th day after the end of each quarter at least quarterly to the
263      Executive Office of the Governor, the President of the Senate,
264      and the Speaker of the House of Representatives on any
265      information technology project that the department, acting
266      through the Florida Digital Service, identifies as high -risk due
267      to the project exceeding acceptable variance ranges defined and
268      documented in the project plan. The report shall include a risk
269      assessment, including fiscal risks, associated with proceeding
270      to the next stage of the project and a recommendation for
271      corrective actions required, including suspension or termination
272      of the project.
273                (m)(n)     If an information technology project implemented by
274      a state agency must be connected to or otherwise accommodated by
275      an information technology system administered by the Department

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276      of Financial Services, the Department of Legal Affairs, or the
277      Department of Agriculture and Consumer Services, consult with
278      these departments regarding the risks and other effects of such
279      projects on their information technology systems and work
280      cooperatively with these departments regarding the connections,
281      interfaces, timing, or accommodations required to implement such
282      projects.
283                (n)(o)     If adherence to standards or policies adopted by or
284      established pursuant to this section causes conflict with
285      federal regulations or requirements imposed on an entity within
286      the enterprise and results in adverse action against an entity
287      or federal funding, work with the entity to provide alternative
288      standards, policies, or requirements that do not conflict with
289      the federal regulation or requirement. The department, acting
290      through the Florida Digital Service, shall annually by January
291      15 report such alternative standards to the Executive Office of
292      the Governor, the President of the Senate, and the Speaker of
293      the House of Representatives.
294                (o)(p)1.        Establish an information technology policy for
295      all information technology-related state contracts, including
296      state term contracts for information technology commodities,
297      consultant services, and staff augmentation services. The
298      information technology policy must include:
299                a.    Identification of the information technology produc t
300      and service categories to be included in state term contracts.

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301                b.    Requirements to be included in solicitations for state
302      term contracts.
303                c.    Evaluation criteria for the award of information
304      technology-related state term contracts.
305                d.    The term of each information technology-related state
306      term contract.
307                e.    The maximum number of vendors authorized on each state
308      term contract.
309                f.    At a minimum, a requirement that any contract for
310      information technology commodities or services meet the National
311      Institute of Standards and Technology Cybersecurity Framework.
312                g.    For an information technology project wherein project
313      oversight is required pursuant to paragraph (d) or paragraph (l)
314      (m), a requirement that independent verification and validation
315      be employed throughout the project life cycle with the primary
316      objective of independent verification and validation being to
317      provide an objective assessment of products and processes
318      throughout the project life cycle. An entity providing
319      independent verification and validation may not have technical,
320      managerial, or financial interest in the project and may not
321      have responsibility for, or participate in, any other aspect of
322      the project.
323                2.    Evaluate vendor responses for information technology -
324      related state term contract solicitations and invitations to
325      negotiate.

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326                3.    Answer vendor questions on information technology -
327      related state term contract solicitations.
328                4.    Ensure that the information technology policy
329      established pursuant to subparagraph 1. is included in all
330      solicitations and contracts that are administratively executed
331      by the department.
332                (p)(q)      Recommend potential methods for standardizing data
333      across state agencies which will promote interoperability and
334      reduce the collection of duplicative data.
335                (q)(r)      Recommend open data technical standards and
336      terminologies for use by the enterprise.
337                (r)(s)      Ensure that enterprise information technology
338      solutions are capable of utilizing an electronic credential and
339      comply with the enterprise architecture standards.
340                (2)
341                (c)       The state chief information officer, in consultation
342      with the Secretary of Management Services, shall designate a
343      state chief technology officer who shall be responsible for all
344      of the following:
345                1.    Establishing and maintaining an enterprise architecture
346      framework that ensures information technology investments align
347      with the state's strategic objectives and initiatives pursuant
348      to paragraph (1)(b).
349                2.    Conducting comprehensive evaluations of potential
350      technological solutions and cultivating strategic partnerships,

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351      internally with state enterprise agencies and externally with
352      the private sector, to leverage collective expertise, foster
353      collaboration, and advance the state's technological
354      capabilities.
355                3.    Supervising program management of enterprise
356      information technology initiatives pursuant to paragraphs
357      (1)(c), (d), and (l); providing advisory support and oversight
358      for technology-related projects; and continuously identifying
359      and recommending best practices to optimize outcomes of
360      technology projects and enhance the enterprise's technological
361      efficiency and effectiveness.
362                (4)       For information technology projects that have a total
363      project cost of $25 $10 million or more:
364                (a)       State agencies must provide the Florida Digital
365      Service with written notice of any planned procurement of an
366      information technology project.
367                (b)       The Florida Digital Service must participate in the
368      development of specifications and recommend modifications to any
369      planned procurement of an information technology project by
370      state agencies so that the procurement complies with the
371      enterprise architecture.
372                (c)       The Florida Digital Service must participate in post-
373      award contract monitoring.
374                (5)       The department, acting through the Florida Digital
375      Service, may not retrieve or disclose any data without a shared-

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         HB 1555                                                                                               2024




376      data agreement in place between the department and the
377      enterprise entity that has primary custodial responsibility of,
378      or data-sharing responsibility for, that data.
379                Section 4.        Subsection (1) of section 282.00515, Florida
380      Statutes, is amended to read:
381                282.00515        Duties of Cabinet agencies.—
382                (1)       The Department of Legal Affairs, the Department of
383      Financial Services, and the Department of Agriculture and
384      Consumer Services shall adopt the standards established in s.
385      282.0051(1)(b), (c), and (q) (r) and (3)(e) or adopt alternative
386      standards based on best practices and industry standards that
387      allow for open data interoperability.
388                Section 5.        Paragraphs (a) through (k) of subsection (4) of
389      section 282.318, Florida Statutes, are redesignated as
390      paragraphs (b) through (l), respectively, subsection (10) is
391      renumbered as subsection (11), subsection (3) and present
392      paragraph (a) of subsection (4) are amended, a new paragraph (a)
393      is added to subsection (4), and a new subsection (10) is added
394      to that section, to read:
395                282.318      Cybersecurity.—
396                (3)       The department, acting through the Florida Digital
397      Service, is the lead entity responsible for leading enterprise
398      information technology and cybersecurity efforts, safeguarding
399      enterprise digital data, establishing standards and processes
400      for assessing state agency cybersecurity risks, and determining

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         HB 1555                                                                                               2024




401      appropriate security measures. Such standards and processes must
402      be consistent with generally accepted technology best practices,
403      including the National Institute for Standards and Technology
404      Cybersecurity Framework, for cybersecurity. The department,
405      acting through the Florida Digital Service, shall adopt rules
406      that mitigate risks; safeguard state agency digital assets,
407      data, information, and information technology resources to
408      ensure availability, confidentiality, and integrity; and support
409      a security governance framework. The department, acting through
410      the Florida Digital Service, shall also:
411                (a)       Designate an employee of the Florida Digital Service
412      as the state chief information security officer. The state chief
413      information security officer must have experience and expertise
414      in security and risk management for communications and
415      information technology resources. The state chief information
416      security officer is responsible for the development, operation,
417      and oversight of cybersecurity for state technology systems. The
418      Cybersecurity Operations Center shall immediately notify the
419      state chief information officer and the state chief information
420      security officer shall be notified of all confirmed or suspected
421      incidents or threats of state agency information technology
422      resources. The state chief information officer, in consultation
423      with the state chief information security officer, and must
424      report such incidents or threats to the state chief information
425      officer and the Governor.

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         HB 1555                                                                                               2024




426                (b)       Develop, and annually update by February 1, a
427      statewide cybersecurity strategic plan that includes security
428      goals and objectives for cybersecurity, including the
429      identification and mitigation of risk, proactive protections
430      against threats, tactical risk detection, threat reporting, and
431      response and recovery protocols for a cyber incident.
432                (c)       Develop and publish for use by state agencies a
433      cybersecurity governance framework that, at a minimum, includes
434      guidelines and processes for:
435                1.    Establishing asset management procedures to ensure that
436      an agency's information technology resources are identified and
437      managed consistent with their relative importance to the
438      agency's business objectives.
439                2.    Using a standard risk assessment methodology that
440      includes the identification of an agency's priorities,
441      constraints, risk tolerances, and assumptions necessary to
442      support operational risk decisions.
443                3.    Completing comprehensive risk assessments and
444      cybersecurity audits, which may be completed by a private sector
445      vendor, and submitting completed assessments and audits to the
446      department.
447                4.    Identifying protection procedures to manage the
448      protection of an agency's information, data, and information
449      technology resources.
450                5.    Establishing procedures for accessing information and

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         HB 1555                                                                                               2024




451      data to ensure the confidentiality, integrity, and availability
452      of such information and data.
453                6.     Detecting threats through proactive monitoring of
454      events, continuous security monitoring, and defined detection
455      processes.
456                7.     Establishing agency cybersecurity incident response
457      teams and describing their responsibilities for responding to
458      cybersecurity incidents, including breaches of personal
459      information containing confidential or exempt data.
460                8.     Recovering information and data in response to a
461      cybersecurity incident. The recovery may include recommended
462      improvements to the agency processes, policies, or guidelines.
463                9.     Establishing a cybersecurity incident reporting process
464      that includes procedures for notifying the department and the
465      Department of Law Enforcement of cybersecurity incidents.
466                a.     The level of severity of the cybersecurity incident is
467      defined by the National Cyber Incident Response Plan of the
468      United States Department of Homeland Security as follows:
469                (I)        Level 5 is an emergency-level incident within the
470      specified jurisdiction that poses an imminent threat to the
471      provision of wide-scale critical infrastructure services;
472      national, state, or local government security; or the lives of
473      the country's, state's, or local government's residents.
474                (II)       Level 4 is a severe-level incident that is likely to
475      result in a significant impact in the affected jurisdiction to

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476      public health or safety; national, state, or local security;
477      economic security; or civil liberties.
478                (III)       Level 3 is a high-level incident that is likely to
479      result in a demonstrable impact in the affected jurisdiction to
480      public health or safety; national, state, or local security;
481      economic security; civil liberties; or public confidence.
482                (IV)       Level 2 is a medium-level incident that may impact
483      public health or safety; national, state, or local security;
484      economic security; civil liberties; or public confidence.
485                (V)        Level 1 is a low-level incident that is unlikely to
486      impact public health or safety; national, state, or local
487      security; economic security; civil liberties; or public
488      confidence.
489                b.     The cybersecurity incident reporting process must
490      specify the information that must be reported by a state agency
491      following a cybersecurity incident or ransomware incident,
492      which, at a minimum, must include the following:
493                (I)        A summary of the facts surrounding the cybersecurity
494      incident or ransomware incident.
495                (II)       The date on which the state agency most recently
496      backed up its data; the physical location of the backup, if the
497      backup was affected; and if the backup was created using cloud
498      computing.
499                (III)       The types of data compromised by the cybersecurity
500      incident or ransomware incident.

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         HB 1555                                                                                               2024




501                (IV)       The estimated fiscal impact of the cybersecurity
502      incident or ransomware incident.
503                (V)        In the case of a ransomware incident, the details of
504      the ransom demanded.
505                c.(I)       A state agency shall report all ransomware incidents
506      and any cybersecurity incidents incident determined by the state
507      agency to be of severity level 3, 4, or 5 to the Cybersecurity
508      Operations Center and the Cybercrime Office of the Department of
509      Law Enforcement as soon as possible but no later than 12 48
510      hours after discovery of the cybersecurity incident and no later
511      than 6 12 hours after discovery of the ransomware incident. The
512      report must contain the information required in sub -subparagraph
513      b.
514                (II)       The Cybersecurity Operations Center shall:
515                (A)        Immediately notify the Cybercrime Office of the
516      Department of Law Enforcement of a reported incident and provide
517      to the Cybercrime Office of the Department of Law Enforcement
518      regular reports on the status of the incident, preserve forensic
519      data to support a subsequent investigation, and provide aid to
520      the investigative efforts of the Cybercrime Office of the
521      Department of Law Enforcement upon the office's request if the
522      state chief information security officer finds that the
523      investigation does not impede remediation of the incide nt and
524      that there is no risk to the public and no risk to critical
525      state functions.

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526                (B)        Immediately notify the state chief information officer
527      and the state chief information security officer of a reported
528      incident. The state chief information security officer shall
529      notify the President of the Senate and the Speaker of the House
530      of Representatives of any severity level 3, 4, or 5 incident as
531      soon as possible but no later than 24 12 hours after receiving a
532      state agency's incident report. The notification must include a
533      high-level description of the incident and the likely effects
534      and must be provided in a secure environment.
535                d.     A state agency shall report a cybersecurity incident
536      determined by the state agency to be of severity level 1 or 2 to
537      the Cybersecurity Operations Center and the Cybercrime Office of
538      the Department of Law Enforcement as soon as possible. The
539      report must contain the information required in sub -subparagraph
540      b.
541                d.e.       The Cybersecurity Operations Center shall provide a
542      consolidated incident report by the 30th day after the end of
543      each quarter on a quarterly basis to the Governor, the Attorney
544      General, the executive director of the Department of Law
545      Enforcement, the President of the Senate, the Speaker of the
546      House of Representatives, and the Florida Cybersecurity Advisory
547      Council. The report provided to the Florida Cybersecurity
548      Advisory Council may not contain the name of any agency, network
549      information, or system identifying information but must contain
550      sufficient relevant information to allow the Florida

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         HB 1555                                                                                               2024




551      Cybersecurity Advisory Council to fulfill its responsibilities
552      as required in s. 282.319(9).
553                10.       Incorporating information obtained through detection
554      and response activities into the agency's cybersecurity incident
555      response plans.
556                11.       Developing agency strategic and operational
557      cybersecurity plans required pursuant to this section.
558                12.       Establishing the managerial, operational, and
559      technical safeguards for protecting state government data and
560      information technology resources that align with the state
561      agency risk management strategy and that protect the
562      confidentiality, integrity, and availability of information and
563      data.
564                13.       Establishing procedures for procuring information
565      technology commodities and services that require the commodity
566      or service to meet the National Institute of Standards and
567      Technology Cybersecurity Framework.
568                14.       Submitting after-action reports following a
569      cybersecurity incident or ransomware incident. Such guidelines
570      and processes for submitting after-action reports must be
571      developed and published by December 1, 2022.
572                (d)       Assist state agencies in complying with this section.
573                (e)       In collaboration with the Cybercrime Office of the
574      Department of Law Enforcement, annually provide training for
575      state agency information security managers and computer security

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         HB 1555                                                                                               2024




576      incident response team members that contains training on
577      cybersecurity, including cybersecurity threats, trends, and best
578      practices.
579                (f)       Annually review the strategic and operational
580      cybersecurity plans of state agencies.
581                (g)       Annually provide cybersecurity training to all state
582      agency technology professionals and employees with access to
583      highly sensitive information which develops, assesses, and
584      documents competencies by role and skill level. The
585      cybersecurity training curriculum must include training on the
586      identification of each cybersecurity incident severity level
587      referenced in sub-subparagraph (c)9.a. The training may be
588      provided in collaboration with the Cybercrime Office of the
589      Department of Law Enforcement, a private sector entity, or an
590      institution of the State University System.
591                (h)       Operate and maintain a Cybersecurity Operations Center
592      led by the state chief information security officer, which must
593      be primarily virtual and staffed with tactical detection and
594      incident response personnel. The Cybersecurity Operations Center
595      shall serve as a clearinghouse for threat information and
596      coordinate with the Department of Law Enforcement to support
597      state agencies and their response to any confirmed or suspected
598      cybersecurity incident.
599                (i)       Lead an Emergency Support Function, ESF-20 ESF CYBER,
600      under the state comprehensive emergency management plan as

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601      described in s. 252.35.
602                (j)       Provide cybersecurity briefings to the members of any
603      legislative committee or subcommittee responsible for policy
604      matters relating to cybersecurity.
605                (k)       Have the authority to obtain immediate access to
606      public or private infrastructure hosting enterprise digital data
607      and to direct, in consultation with the state agency that holds
608      the particular enterprise digital data, measures to assess,
609      monitor, and safeguard the enterprise digital data.
610                (4)       Each state agency head shall, at a minimum:
611                (a)       Designate a chief information security officer to
612      integrate the agency's technical and operational cybersecurity
613      efforts with the Cybersecurity Operations Center. This
614      designation must be provided annually in writing to the Florida
615      Digital Service by January 15. For a state agency under the
616      jurisdiction of the Governor, the agency's chief information
617      security officer shall be under the general supervision of the
618      agency head or designee for administrative purposes but shall
619      report to the state chief information officer. An agency may
620      request that the department procure a chief information security
621      officer as a service to fulfill the agency's duties under this
622      paragraph.
623                (b)(a)      Designate an information security manager to ensure
624      compliance with cybersecurity governance and with the state's
625      enterprise security program and incident response plan. The

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         HB 1555                                                                                               2024




626      information security manager must coordinate with the agency's
627      chief information security officer and the Cybersecurity
628      Operations Center to ensure that the unique needs of the agency
629      are met administer the cybersecurity program of the state
630      agency. This designation must be provided annually in writing to
631      the department by January 15 1. A state agency's information
632      security manager, for purposes of these information security
633      duties, shall work in collaboration with the agency's chief
634      information security officer and report directly to the agency
635      head.
636                (10)       The department may brief any legislative committee or
637      subcommittee responsible for cybersecurity policy in a meeting
638      or other setting closed by the respective body under the rules
639      of such legislative body at which the legislative committee or
640      subcommittee is briefed on records made confidential and exempt
641      under subsections (5) and (6). The legislative committee or
642      subcommittee must maintain the confidential and exempt status of
643      such records. A legislator serving on a legislative committee or
644      subcommittee responsible for cybersecurity policy may also
645      attend meetings of the Florida Cybersecurity Advisory Council,
646      including any portions of such meetings that are exempt from s.
647      286.011 and s. 24(b), Art. I of the State Constitution.
648                Section 6.       Paragraph (d) of subsection (5) of section
649      282.3185, Florida Statutes, is redesignated as paragraph (c),
650      and paragraph (b) and present paragraph (c) of that subsection

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         HB 1555                                                                                               2024




651      are amended to read:
652                282.3185         Local government cybersecurity.—
653                (5)       INCIDENT NOTIFICATION.—
654                (b)1.      A local government shall report all ransomware
655      incidents and any cybersecurity incident determined by the local
656      government to be of severity level 3, 4, or 5 as provided in s.
657      282.318(3)(c) to the Cybersecurity Operations Center, the
658      Cybercrime Office of the Department of Law Enforcement, and the
659      sheriff who has jurisdiction over the local government as soon
660      as possible but no later than 12 48 hours after discovery of the
661      cybersecurity incident and no later than 6 12 hours after
662      discovery of the ransomware incident. The report must contain
663      the information required in paragraph (a).
664                2.    The Cybersecurity Operations Center shall:
665                a.    Immediately notify the Cybercrime Office of the
666      Department of Law Enforcement and the sheriff who has
667      jurisdiction over the local government of a reported incident
668      and provide to the Cybercrime Office of the Department of Law
669      Enforcement and the sheriff who has jurisdiction over the local
670      government regular reports on the status of the incident,
671      preserve forensic data to support a subsequent investigation,
672      and provide aid to the investigative efforts of the Cybercrime
673      Office of the Department of Law Enforcement upon the office's
674      request if the state chief information security officer finds
675      that the investigation does not impede remediation of the

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676      incident and that there is no risk to the public and no risk to
677      critical state functions.
678                b.    Immediately notify the state chief information security
679      officer of a reported incident. The state chief information
680      security officer shall notify the President of the Senate and
681      the Speaker of the House of Representatives of any severity
682      level 3, 4, or 5 incident as soon as possible but no later than
683      24 12 hours after receiving a local government's incident
684      report. The notification must include a high-level description
685      of the incident and the likely effects and must be provided in a
686      secure environment.
687                (c)       A local government may report a cybersecurity incident
688      determined by the local government to be of severity level 1 or
689      2 as provided in s. 282.318(3)(c) to the Cybersecurity
690      Operations Center, the Cybercrime Office of the Department of
691      Law Enforcement, and the sheriff who has jurisdiction over the
692      local government. The report shall contain the information
693      required in paragraph (a). The Cybersecurity Operations Center
694      shall immediately notify the Cybercrime Office of the Department
695      of Law Enforcement and the sheriff who has jurisdiction over the
696      local government of a reported incident and provide regular
697      reports on the status of the cybersecurity incident, preserve
698      forensic data to support a subsequent investigation, and provide
699      aid to the investigative efforts of the Cybercrime Office of the
700      Department of Law Enforcement upon request if the state chief

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701      information security officer finds that the investigation does
702      not impede remediation of the cybersecurity incident and that
703      there is no risk to the public and no risk to critical state
704      functions.
705                Section 7.       Paragraph (j) of subsection (4) of section
706      282.319, Florida Statutes, is amended, and paragraph (m) is
707      added to that subsection, to read:
708                282.319      Florida Cybersecurity Advisory Council.—
709                (4)       The council shall be comprised of the following
710      members:
711                (j)       Three representatives from critical infrastructure
712      sectors, one of whom must be from a utility provider water
713      treatment facility, appointed by the Governor.
714                (m)       A representative of local government.
715                Section 8.       This act shall take effect July 1, 2024.




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       Energy, Communications & Cybersecurity Subcommittee
                  HB 1555 by Rep. Giallombardo
                          Cybersecurity

                           AMENDMENT SUMMARY
                              January 25, 2024


Amendment 1 by Giallombardo (line 90):

  •   Removes provisions of the bill that designate certain information security
      personnel positions as select exempt positions.


Amendment 2 by Giallombardo (line 611):

  •   Removes provisions of the bill that require each state agency head to designate
      a chief information security officer (CISO) and that specify how an agency’s
      information security manager must interact with the agency CISO.
                                                COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                        Bill No. HB 1555   (2024)
       Amendment No. 1




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                          (Y/N)
       ADOPTED AS AMENDED               (Y/N)
       ADOPTED W/O OBJECTION            (Y/N)
       FAILED TO ADOPT                  (Y/N)
       WITHDRAWN                        (Y/N)
       OTHER


1      Committee/Subcommittee hearing bill:         Energy, Communications &
2      Cybersecurity Subcommittee
3      Representative Giallombardo offered the following:
4
5           Amendment (with title amendment)
6           Remove lines 90-100
7
8
9              -----------------------------------------------------
10                          T I T L E    A M E N D M E N T
11          Remove lines 2-5 and insert:
12     An act relating to cybersecurity; amending s. 282.0041,




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                                             COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                     Bill No. HB 1555   (2024)
       Amendment No. 2




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                       (Y/N)
       ADOPTED AS AMENDED            (Y/N)
       ADOPTED W/O OBJECTION         (Y/N)
       FAILED TO ADOPT               (Y/N)
       WITHDRAWN                     (Y/N)
       OTHER


1      Committee/Subcommittee hearing bill:      Energy, Communications &
2      Cybersecurity Subcommittee
3      Representative Giallombardo offered the following:
4
5           Amendment (with title amendment)
6           Remove lines 611-635 and insert:
7           (a) Designate an information security manager to ensure
8      compliance with cybersecurity governance and with the state's
9      enterprise security program and incident response plan. The
10     information security manager must coordinate with the agency's
11     information security personnel and the Cybersecurity Operations
12     Center to ensure that the unique needs of the agency
13     are met administer the cybersecurity program of the state
14     agency. This designation must be provided annually in writing to
15     the department by January 15 1. A state agency's information


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                                    Page 1 of 2
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 1555   (2024)
       Amendment No. 2


16     security manager, for purposes of these information security
17     duties, shall report directly to the agency head.
18
19           -----------------------------------------------------
20                       T I T L E   A M E N D M E N T
21          Remove lines 53-55 and insert:
22     certain measures; revising the purpose of
23




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HB 7047
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 7047       PCB EEG 24-07 OGSR/Utility Owned or Operated by a Unit of Local
Government
SPONSOR(S): Ethics, Elections & Open Government Subcommittee, Porras
TIED BILLS:       IDEN./SIM. BILLS: SB 7006

    REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                           BUDGET/POLICY CHIEF

    Orig. Comm.: Ethics, Elections & Open                       16 Y, 0 N               Poreda             Toliver
       Government Subcommittee

    1) Energy, Communications & Cybersecurity                                           Phelps             Keating
       Subcommittee

    2) State Affairs Committee


                                            SUMMARY ANALYSIS
The Open Government Sunset Review (OGSR) Act requires the Legislature to review each public record
exemption and each public meeting exemption five years after enactment. If the Legislature does not reenact
the exemption, it automatically repeals on October 2nd of the fifth year after enactment.

Municipalities are authorized by general law to provide water and sewer utility services , as well as electric and
natural gas utility services. Counties are authorized to provide water and sewer utility services both within their
individual boundaries and in adjoining counties. Current law provides public record exemptions for the
following information held by a utility owned or operated by a unit of local government (local government utility):
      Information related to the security of a local government utility's technology, processes, and practices
        designed to protect the utility’s networks, computers, programs, and data from attack, damage, or
        unauthorized access that, if disclosed, would facilitate the alteration, disclosure, or destruction of such
        data or information technology (I.T.) resources.
      Information related to the security of a local government utility’s existing or proposed I.T. systems or
        industrial control technology systems that, if disclosed, would facilitate unauthorized access to, and
        alteration or destruction of, such systems in a manner that would adversely impact the safe and reliable
        operations of the systems and the utility.
      Customer meter-derived data and billing information in increments of less than one billing cycle.

Current law also provides a public meeting exemption for the portions of meetings held by a local government
utility that would reveal information exempt from disclosure by the public records exemptions discussed above.
The exemption requires that all closed portions be recorded and transcribed and that such recordings and
transcripts are confidential and exempt from disclosure as public records.

In 2022, the Legislature created a general public record exemption, applicable to all agencies, for certain
information related to cybersecurity. Pursuant to the OGSR Act, the exemption for cybersecurity information
will repeal on October 2, 2027, unless reviewed and saved from repeal by the Legislature.

The bill extends the repeal date for the public record exemptions related to I.T. security and the public meeting
exemption to October 2, 2027, to coincide with the future OGSR repeal date of the general cybersecurity
exemption in statute. The bill saves from repeal the public record exemption related to customer meter-derived
data and billing information. Each of the exemptions will repeal on October 2, 2024, if this bill does not become
law.

The bill does not appear to have a fiscal impact on state government or local governments.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h7047.ECC
DATE: 1/23/2024
                                                          FULL ANALYSIS

                                                  I. SUBSTANTIVE ANALYSIS

       A. EFFECT OF PROPOSED CHANGES:
           Background

           Open Government Sunset Review Act
           The Open Government Sunset Review Act (OGSR Act) 1 sets forth a legislative review process for
           newly created or substantially amended public record or public meeting exemptions. It requires an
           automatic repeal of the exemption on October 2nd of the fifth year after creation or substantial
           amendment, unless the Legislature reenacts the exemption.2

           The OGSR Act provides that a public record or public meeting exemption may be created or
           maintained only if it serves an identifiable public purpose. In addition, it may be no broader than is
           necessary to meet one of the following purposes:
               Allow the state or its political subdivisions to effectively and efficiently administer a
                  governmental program, which administration would be significantly impaired without the
                  exemption.
               Protect sensitive personal information that, if released, would be defamatory or would
                  jeopardize an individual’s safety; however, only the identity of an individual may be exempted
                  under this provision.
               Protect trade or business secrets.3

           If, and only if, in reenacting an exemption that will repeal, the exemption is expanded, then a public
           necessity statement and a two-thirds vote for passage are required. If the exemption is reenacted with
           grammatical or stylistic changes that do not expand the exemption, if the exemption is narrowed, or if
           an exception to the exemption is created, then a public necessity statement and a two-thirds vote are
           not required.4

           Local Government Utilities
           The Florida Constitution grants municipalities the governmental, corporate, and proprietary powers
           necessary to enable them to conduct municipal government, perform municipal functions, and render
           municipal services, and permits them to exercise any power for municipal purposes, except when
           expressly prohibited by law.5

           Counties not operating under a charter have the power of self-government as provided by general or
           special law, while charter counties have all powers of self-government not inconsistent with general law
           or with special law approved by the county electors. 6 Counties are authorized by general law to
           provide water and sewer utility services both within their individual boundaries and in adjoining
           counties.7 Municipalities are authorized by general law to provide water and sewer utility services 8 as
           well natural gas services 9 and electric and gas utilities 10

           Florida Public Service Commission


1
    S. 119.15, F.S.
2 S. 119.15(3), F.S.
3 S. 119.15(6)(b), F.S.
4 Article I, s. 24(c), Fla. Const.
5 Article VIII,
              s. 2(b), Fla. Const.
6 Article VIII,
              s. 1(f)-(g), Fla. Const.
7 Ss. 125.01(1)(k)1., F.S. and 153.03, F.S.
8 Pursuant to s. 180.06, F.S., a municipality may “provide water and alternative water supplies;” “provide for the collection a nd disposal

of sewage, including wastewater reuse, and other liquid wastes;” and “construct reservoirs, sewerage systems, trunk se wers,
intercepting sewers, pumping stations, wells, siphons, intakes, pipelines, distribution systems, purification works, collecti on systems,
treatment and disposal works” to accomplish these purposes.
9 S. 180.06(8), F.S.
10 Ch. 366, F.S.

STORAGE NAME: h7047.ECC                                                                                                            PAGE: 2
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         The Florida Public Service Commission (PSC) ensures Florida’s consumers receive utility services,
         including electric, natural gas, telephone, water, and wastewater, “in a safe, affordable, and reliable
         manner.”11 The PSC primarily regulates investor owned utilities but is able to exercise limited authority
         over publicly owned utilities in the following areas:12
              Rate base or economic regulation.
              Competitive market oversight.
              Monitoring of safety, reliability and service.

         Utility Customer Consumption Data
         Traditional, analog utility meters record consumption at a utility customer’s premises. On a regular,
         periodic basis, the meter is “read” in person by a utility employee to determine how much of the utility’s
         service — electric, natural gas, or water/wastewater — was used at the premises since the last meter
         reading. This data is used by the utility for purposes of customer billing. In recent years, utilities have
         deployed, to varying degrees, newer “smart meter” 13 technologies that measure a utility customer’s
         consumption on a more frequent basis (e.g., hourly) and transmit this data automatically and wirelessly
         to the utility. The utility still uses this data for billing purposes but can also use it to monitor its system
         and identify and locate problems more quickly.14

         Cybersecurity Public Record Exemption
         In 2022, the Legislature passed CS/HB 7057, which created a general public record exemption —
         applicable to all agencies 15 — for the certain information related to cybersecurity.16 Specifically, CS/HB
         7057, which was codified as s. 119.0725, F.S., protected the following information:
              Information related to critical infrastructure.17
              Network schematics, hardware and software configurations, or encryption information or
                information that identifies detection, investigation, or response practices for suspected or
                confirmed cybersecurity incidents, including suspected or confirmed breaches, if the disclosure
                of such information would facilitate unauthorized access to or unauthorized modification,
                disclosure, or destruction of:
                     o Data or information, whether physical or virtual; or
                     o Information technology (I.T.) resources, which include an agency’s existing or proposed
                         I.T. systems.
              Coverage limits and deductible or self-insurance amounts of insurance or other risk mitigation
                coverages acquired for the protection of I.T. systems, operational technology systems, or data
                of an agency.
              Cybersecurity incident information contained in certain reports.

         CS/HB 7057 (2022) also created a public meeting exemption for any portion of a meeting that would
         reveal the confidential and exempt information; however, any portion of an exempt meeting must be
         recorded and transcribed.18 The recording and transcript are confidential and exempt from public record
         requirements.19




11 Florida Public Service Commission, Ab out, available at https://www.psc.state.fl.us/about (last visited Jan. 15, 2024).
12 Florida Public Service Commission, 2022 Annual Report, available at https://www.floridapsc.com/pscfiles/website-

files/PDF/Publications/Reports/General/AnnualReports/2022.pdf (last visited January 16, 2024)
13
   See Florida Public Service Commission, Smart Meters, availab le at https://www.floridapsc.com/pscfiles/website-
files/pdf/Utilities/Electricgas/SmartMeters/SmartMeter.pdf (last visited January 16, 2 024).
14 Id.
15 “Agency” means any state, county, district, authority, or municipal officer, department, division, board, bureau, commission, or other

separate unit of government created or established by law including, for the purposes of ch. 119, F.S., the Commission on Ethics, the
Public Service Commission, and the Office of Public Counsel, and any other public or private agency, person, partnership, cor poration,
or business entity acting on behalf of any public agency. S. 119.011(2), F.S.
16 See s. 119.0725, F.S.
17 “Critical infrastructure” means existing and proposed information technology and operation technology systems and assets, whe ther

physical and virtual, the incapacity or destruction of which would negatively affect security, economic security, p ublic health, or public
safety. S. 119.0725(1)(b), F.S.
18 S. 119.0725(3), F.S.
19 Id.

STORAGE NAME: h7047.ECC                                                                                                            PAGE: 3
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         Public Record and Public Meeting Exemptions under Review
         In 2016, the Legislature created a public record exemption that made the following information held by
         a utility20 owned or operated by a unit of local government (local government utility) confidential and
         exempt21 from public record requirements:
              Information related to the security of a local government utility's technology, processes, and
                   practices designed to protect the utility’s networks, computers, programs, and data from attack,
                   damage, or unauthorized access that, if disclosed, would facilitate the alteration, disclosure, or
                   destruction of such data or I.T. resources.
              Information related to the security of a local government utility’s existing or proposed I.T.
                   systems or industrial control technology systems that, if disclosed, would facilitate unauthorized
                   access to, and alteration or destruction of, such systems in a manner that would adversely
                   impact the safe and reliable operations of the systems and the utility.22

         In 2019, the Legislature created a public record exemption that made customer meter-derived data and
         billing information in increments of less than one billing cycle held by a local government utility
         confidential and exempt from public record requirements. 23 Additionally, in that same year, the
         Legislature created a public meeting exemption for any portion of a meeting held by a local government
         utility that would reveal information made exempt pursuant to the local government utility’s public record
         exemption.24 All closed portions of such a meeting must be recorded and transcribed and such
         recording or transcription are exempt from public record requirements.25

         The 2016 public necessity statement26 for the public record exemptions for certain I.T. security
         information provided that:

                  [M]any utilities have adopted technologies, processes, and practices designed to
                  secure data, information technology systems, and industrial control technology
                  systems. Disclosure of sensitive information related to these security measures
                  could result in the identification of vulnerabilities that allow a security breach that
                  damages utility systems and disrupts the safe and reliable operation of such
                  systems, adversely impacting the public health and safety and the economic well-
                  being of the state. Because of the interconnected nature of utility systems, a
                  security breach may also impact national security concerns.27

         The 2019 public necessity statement for the public record exemption for customer meter-derived data
         and billing information provided that:

                  Smart meters, which can record and transmit detailed data on a customer's use of
                  utility services, present unique security concerns. These concerns were addressed
                  in a report released in October 2010 by the United States Department of Energy
                  titled “Data Access and Privacy Issues related to Smart Grid Technologies.” The

20
   “Utility” means a person or entity that provides electricity, natural gas, telecommunications, water, chilled water, reuse wa ter, or
wastewater. S. 119.011(15), F.S.
21 There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature

designates confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain
circumstances. See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied, 892 So.2d 1015 (Fla.
2004); State v. Wooten, 260 So. 3d 1060, 1070 (Fla. 4th DCA 2018); City of Rivera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA
1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991). If the Legislature designates a record as confidential and
exempt from public disclosure, such record may not be released by the custodian of public records to anyone other than th e persons or
entities specifically designated in statute. See Op. Att’y Gen. Fla. 04- 09 (2004).
22 Chapter 2016-95, L.O.F., codified as s. 119.0713(5), F.S.
23 Chapter 2019-38, LO.F., codified as s. 119.0713(5)(a)3., F.S.
24 Chapter 2019-37, L.O.F., codified as s. 286.0113(3), F.S.
25 S. 286.0113(3)(a), F.S. However, a court of competent jurisdiction, following an in -camera review, may determine that the meeting

was not restricted to the discussion of data and information made exempt, and in that event, the p ortion of the recording or transcript
which reveals nonexempt data and information may be disclosed to a third party.
26 Article I, s. 24(c), FLA. C ONST., requires each public record exemption to “state with specificity the public necessity justifying the

exemption.”
27 Ch. 2016-95, L.O.F.

STORAGE NAME: h7047.ECC                                                                                                           PAGE: 4
DATE: 1/23/2024
                  report recommended that customer data be protected from release to third parties.
                  This detailed customer data can be used to specifically identify minute-by-minute
                  usage patterns, including the exact appliance or service being used. This
                  information creates significant security issues for both businesses and
                  homeowners.28

         The 2019 public necessity statement for the public meeting exemption provided that:

                  [A]s utility system infrastructure becomes more connected and integrated through
                  information and communications technology, the exposure to damage from attacks
                  through such technology grows. These attacks may result in the disruption of utility
                  services and damage to utility systems. Maintaining safe and reliable utility
                  systems is vital to protecting the public health and safety and to ensuring the
                  economic well-being of this state.29

         Pursuant to the OGSR Act, each of the above exemptions will repeal on October 2, 2024, unless
         reenacted by the Legislature.

         During the 2023 interim, House and Senate committee staff jointly developed a questionnaire and sent
         the questionnaires to city and county governments. In total, staff received 39 responses from those
         entities.30 Most respondents indicated that they were unaware of any litigation concerning the
         exemptions and had not encountered any issues interpreting or applying the exemptions. The vast
         majority of respondents indicated that the exemptions be reenacted as is and no respondent
         recommended eliminating the public record or public meeting exemptions. As a part of the
         questionnaire, respondents were asked to consider whether the local government utility I.T. security
         exemptions were duplicative of the general cybersecurity exemption in s. 119.0725, F.S. Some
         respondents noted that there may be some overlap between the exemption.

         Effect of the Bill

         The bill extends the repeal date for the public record exemptions related to local government utility I.T.
         security and the public meeting exemption to October 2, 2027, to coincide with the future OGSR repeal
         date of the general cybersecurity exemption in s. 119.0725, F.S. The bill saves from repeal the public
         record exemption for customer meter-derived data and billing information in increments of less than
         one billing cycle held by a local government utility. Each of the exemptions under review will repeal on
         October 2, 2024, if this bill does not become law

    B. SECTION DIRECTORY:
         Section 1 amends s. 119.0713, F.S., relating to local government agency exemptions from inspection
         or copying of public records.

         Section 2 amends s. 286.0113, F.S., relating to general exemptions from public meetings.

         Section 3 provides an effective date of October 1, 2024.


                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

         1. Revenues:
             None.

28 Ch. 2019-38, L.O.F.
29 Ch. 2019-37, L.O.F.
30 Open Government Sunset Review Questionnaire, Public Records and Public Meetings Related to utilities owned or operated by a

unit of local government, responses on file with the Ethics, Elections & Open Government Subcommittee.
STORAGE NAME: h7047.ECC                                                                                                   PAGE: 5
DATE: 1/23/2024
       2. Expenditures:
           None.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       None.

   D. FISCAL COMMENTS:
       None.

                                               III. COMMENTS

   A. CONSTITUTIONAL ISSUES:

       1. Applicability of Municipality/County Mandates Provision:
          Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditure of funds; reduce the authority that counties and municipalities have
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties and
          municipalities.

       2. Other:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not require rulemaking nor confer rulemaking authority.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h7047.ECC                                                                                   PAGE: 6
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           HB 7047                                                                                               2024




    1                                         A bill to be entitled
    2                An act relating to a review under the Open Government
    3                Sunset Review Act; amending s. 119.0713, F.S., which
    4                provides exemptions from public records requirements
    5                for information related to the security of certain
    6                technology, processes, practices, information
    7                technology systems, and industrial control technology
    8                systems and certain customer meter-derived data and
    9                billing information held by a utility owned or
10                   operated by a unit of local government; extending the
11                   date of scheduled repeal of the public records
12                   exemptions for such information; removing the
13                   scheduled repeal of the public records exemption for
14                   such customer meter-derived data and billing
15                   information; amending s. 286.0113, F.S., which
16                   provides an exemption from public meetings
17                   requirements for portions of meetings held by a
18                   utility owned or operated by a unit of local
19                   government that would reveal certain information;
20                   extending the date of scheduled repeal of the public
21                   meetings exemption; providing an effective date.
22
23         Be It Enacted by the Legislature of the State of Florida:
24
25                   Section 1.       Subsection (5) of section 119.0713, Florida

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        HB 7047                                                                                               2024




26      Statutes, is amended to read:
27                119.0713         Local government agency exemptions from
28      inspection or copying of public records.—
29                (5)(a)      The following information held by a utility owned
30      or operated by a unit of local government is exempt from s.
31      119.07(1) and s. 24(a), Art. I of the State Constitution:
32                1.    Information related to the security of the technology,
33      processes, or practices of a utility owned or operated by a unit
34      of local government that are designed to protect the utility's
35      networks, computers, programs, and data from attack, damage, or
36      unauthorized access, which information, if disclosed, would
37      facilitate the alteration, disclosure, or destruction of such
38      data or information technology resources.
39                2.    Information related to the security of existing or
40      proposed information technology systems or industrial control
41      technology systems of a utility owned or operated by a unit of
42      local government, which, if disclosed, would facilitate
43      unauthorized access to, and alteration or destruction of, such
44      systems in a manner that would adversely impact the safe and
45      reliable operation of the systems and the utility.
46                3.    Customer meter-derived data and billing information in
47      increments less than one billing cycle.
48                (b)       This exemption applies to such information held by a
49      utility owned or operated by a unit of local government before,
50      on, or after the effective date of this exemption.

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        HB 7047                                                                                               2024




51                (c)       Subparagraphs (a)1. and 2. are This subsection is
52      subject to the Open Government Sunset Review Act in accordance
53      with s. 119.15 and shall stand repealed on October 2, 2027 2024,
54      unless reviewed and saved from repeal through reenactment by the
55      Legislature.
56                Section 2.         Subsection (3) of section 286.0113, Florida
57      Statutes, is amended to read:
58                286.0113         General exemptions from public meetings. —
59                (3)(a)      That portion of a meeting held by a utility owne d
60      or operated by a unit of local government which would reveal
61      information that is exempt under s. 119.0713(5) is exempt from
62      s. 286.011 and s. 24(b), Art. I of the State Constitution. All
63      exempt portions of such a meeting must be recorded and
64      transcribed. The recording and transcript of the meeting are
65      exempt from disclosure under s. 119.07(1) and s. 24(a), Art. I
66      of the State Constitution unless a court of competent
67      jurisdiction, following an in camera review, determines that the
68      meeting was not restricted to the discussion of data and
69      information made exempt by this section. In the event of such a
70      judicial determination, only the portion of the recording or
71      transcript which reveals nonexempt data and information may be
72      disclosed to a third party.
73                (b)       This subsection is subject to the Open Government
74      Sunset Review Act in accordance with s. 119.15 and shall stand
75      repealed on October 2, 2027 2024, unless reviewed and saved from

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        HB 7047                                                                                               2024




76      repeal through reenactment by the Legislature.
77                Section 3.       This act shall take effect October 1, 2024.




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