"Arizona House of Representatives Committee on Commerce Meeting Minutes - March 7, 2023"

Summary

Minutes of the regular meeting of the Arizona House of Representatives Committee on Commerce, Fifty-sixth Legislature, First Regular Session, held Tuesday, March 7, 2023, with Representative Wilmeth as Chairman and Representative Carbone as Vice-Chairman. The committee heard two presentations: one from Rubrik on keeping data secure against ransomware, and one from the executive director of the Arizona Cactus League on spring training's economic impact, including a 2020 total economic impact of $364 million. The minutes record do-pass votes on SB1563 (workforce; study committee; report), 10-0-0-0, and SB1052 (insurance coverage; biomarker testing), 9-0-0-1. Attachments include the agenda, the request-to-speak report, the attendance record, the presentation handouts, bill summaries and roll call votes.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

COMMITTEE ON COMMERCE

Report of Regular Meeting
Tuesday, March 7, 2023

House Hearing Room 3 -- 2:00 P.M. MINUTES RECEIVED

Convened 3:57 P.M. CHIEF 1
Recessed EF CLERK'S OFFICE

Reconvened 3 - b - 23.

Adjourned 5:42 P.M.

Members Present Members Absent
Representative Aguilar

Representative Austin

Representative Carter

Representative Gress

Representative Heap

Representative Hendrix

Representative Ortiz

Representative Sun

Representative Carbone, Vice-Chairman
Representative Wilmeth, Chairman

Agenda
Original Agenda — Attachment 1

Request to Speak
Report — Attachment 2

Committee Attendance
Report — Attachment 3

Presentations
Name ; Organization Attachments (Handouts)
Matthew Gilligan Rubrick — Keeping Data Secure4 4
Bridget Binsbacher Cactus League-A Grand Slam forAZ — 5
Committee Action
Bill Action Vote Attachments
SB1563. DP 10-0-0-0 6,7
SB1052. DP 9-0-0-1 8,9

AULA phe

SusanWNelson, Committee Secretary
March 8, 2023

(Original attachments on file in the Office of the Chief Clerk; video archives available at htip://www.azleg.gov)

COMMITTEE ON COMMERCE
March 7, 2023
REVISED - 3/02/23 REVISED - 3/02/23 REVISED - 3/02/23

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature - First Regular Session

Convened! 355 pin

REGULAR MEETING AGENDA 1
AdTovenéos d/ 4m

COMMITTEE ON COMMERCE

DATE Tuesday, March 7, 2023 ROOM HHR3 TIME 2:00 P.M.

Members of the public may access a livestream of the meeting here:
https://www.azleg. gov/videoplayer/?clientID=6361 162879&eventID=202303 1016

Members:
Representative Aguilar Representative Heap Representative Sun
Representative Austin Representative Hendrix Representative Carbone, Vice-Chairman
Representative Carter Representative Ortiz Representative Wilmeth, Chairman

Representative Gress

e Presentations:
o Cactus League: A Grand Slam for Arizona’s Economy
* Bridget Binsbacher, Executive Director

o Keeping Data Secure — Challenges and Recommended Practices
" Matthew Gilligan, Rubrik

Bills Short Title Strike Everything Title

3. SB1052 D ? biomarker testing; insurance coverage;
definitions(now: insurance coverage; biomarker
testing)

‘0 ‘O+Ishope)
COM, RULES
{ SB1563 p workforce; study committee; report
Dr (Kaiser)

[92,0 0.0 COM, RULES

ORDER OF BILLS TO BE SET BY THE CHAIRMAN

RA
63/61/2023
03/02/2023

People with disabilities may request reasonable accommodations such as interpreters, alternative formats, or
assistance with physical accessibility. If you require accommodations, please contact the Chief Clerk's Office at
(602) 926-3032 or through Arizona Relay Service 7-1-1.

Page 1 of 1
Attachment |
Information Registered on the Request to Speak System

House Commerce (3/7/2023)

$B1052, biomarker testing; insurance coverage: definitions (NOW:
insurance coverage; biomarker testing)

Support:
Marc Osborn, AMERICAN COUNCIL OF LIFE INSURERS (ACLI), AMERICAN FAMILY LIFE ASSURANCE CO (AFLAC)

Oppose:

Claribeth Davis, representing self; Lisa Gentry, representing self

$B1563, workforce: study committee; report

Support:
Jack McCain, representing self; Salim Faquiri, representing self; Aaron Rippenkroeger, representing self; Ajmeer
Safi, representing self; Mohamed Abdullahi, representing self; Wazhma X, representing self

All Comments:
Jack McCain, Self: Request to speak as a coordinator for Afghan refugee issues.

Attachment A
ARIZONA STATE LEGISLATURE
Fifty-sixth Legislature - First Regular Session

COMMITTEE ATTENDANCE RECORD

COMMITTEE ON COMMERCE
CHAIRMAN: Justin Wilmeth VICE-CHAIRMAN: _ Michael Carbone
DATE 03/07/23 123 123 123 123
CONVENED 3 Spm m m m m
RECESSED
RECONVENED
ADJOURNED 5 42 ph
MEMBERS
Aguilar v
Austin J
Carter vA
Gress of
Heap Vv
Hendrix J
Ortiz va
Sun WA
Carbone, Vice-Chairman Vv
Wilmeth, Chairman v

Vv Present --- Absent exc Excused

Attachment 3

Keeping Data Secure -
Challenges and Recommended
Best Practices

Matthew Gilligan SLED Director- Rubrik

es rubrik SLED

Attachment f
Why Is This Important

Ransomware is a threat to national security, public safety, and economic prosperity. Ransomware
Operators have disrupted hospitals, schools, pipeline operations, government services, and other
critical infrastructure and essential services (National Cybersecurity Strategy-White House)

Ransomware is a type of malware, or malicious software, that locks up a victim’s data or

computing device and threatens to keep it locked — or worse — unless the victim pays the
attacker a ransom (IBM)

Arizona Mission Critical Services:

*

C4

Child Welfare and Support Funding

Medicaid, Health & Welfare Benefits

Unemployment Benefits

Law Enforcement, Criminal Prosecution and Court Systems

Commerce and Business Services

Education Services and Funding

Finance, Payroll, Tax Filing and Collection

Voter Registration %

ee rubrik SLED
Cybersecurity Threats and Challenges

Threats

- Ransomware affected 66% of all organizations in 2021 (Verizon) and cost victims an estimated
USD 20 Billion overall (IBM)

- Average Ransom Payment USD 800K and overall average cost per attack is USD 4.5M (IBM)

- The Average downtime due to Ransomware attacks is 21 days (Statista)

- Every 11 seconds in 2021 a new victim was hit by a Ransomware attack (Safeatlast)

Challenges
+ The top 5 identified challenges to securing the organization from attacks are (Rubrik Zero
Labs):
Insufficient Budget for data security
Lack of Cybersecurity tools and solutions in place or fully deployed
Insufficient Talent
Lack of prioritization of key cyber hygiene tasks like patching from executive leadership
Disagreements and/or competing priorities

$8 rubrik. SLED
Denial-of-Data Attacks

A Denial of Data (DoD) attack is any malicious attempt to block access to data that you own
The most common form of DoD is a Ransomware attack

° Financiaily-driven bad actors

* Removes your ability to control your own information assets

° Poses an existential threat to impacted organizations
EIssn SNES VEEN atresia sas nanny tee]

Cyber attacks are now the main driver for data recovery

Historically, the driver was recovery from threats like natural disasters or
human error

The common impact was a lack of access to your data for some period of
time, but the organization was largely in control of the outcome

Defense in Depth is Critical but there will always be gaps that can be

exploited Dee:
° Effective Data Security begins hero — oe

ete,

ie rubrik SLED
Ransomware locks down Option 2: Attempt to recover
data

Option 1: Pay ransom

— &

Was our data Can Was Sensitive Can incidents Can we recover
protected? ransomware Data impacted? be contained? quickly?

| | be mespneee | | |

abs,

| és rubrik SLED

"age"
ave

Best Practices for Preventing Denial-of-Data Attacks

* Use an immutable file
system for backup data

* Ensure that it’s air-gapped

° Avoid Open discoverable
protocols like SMB, NFS

* Adopt an “assume breach”
posture in line with NIST and
CISA recommendations

* Monitor your backups for
significant changes

* Hunt for known lOCs
continuously using your
backup data —

° Scan for known sensitive data
types (Pll, PCI, HIPAA etc)

* Feed results back to your
CMDB to keep it current

* Ensure data is being protected
in line with “due care”
expectations (GDPR, CCPA
domestic, international etc)

* Monitor for suspect data and
trends

* Contain and quarantine
suspect backups to prevent
any further contagion

* Automate your playbooks

* Ensure your recovery
scenarios are real-world

* Test, Test, Test until your
response is automatic

* Speed recovery by leveraging
muscle memory
In Summary

The Threat is Real
Mission Critical Services are at Risk

Legacy Data Security Solutions need Modernization

Increase Cybersecurity Funding for Data Security
Leverage Best Practices

Continued Education & Training

bocce Thank You

The Arizona Cactus League Association is committed to
continuing its work to strengthen and promote the industry

while serving communities and contributing to the wonderful
quality of life all can enjoy in Arizona.

Thank you!
Bridget Binsbacher
Bridget@cactusleague.com
623-433-7505

Attachment 5

1947

1952

1954, 1956-58

1959-65

1961

Cactus League Timeline

1961-62

1969

1970

1977

SURPRISE STADIUM PEORIA SPORTS COMPLEX
Kansas City Royals & Texas Rangers Seattle Mariners & San Diego Padres [>

3 Cave Suttes.
_o , Recreation
4 al - - Ateg

MIAERT View

Ris ease |

623-2M2222  1S9BON Bullaed Ave, Surprice, AZ f° | 625778700 16101 N Burd Ave, Protin. AZ Webaae
- BUY Rite
Pg Jas écy-weei! Lieiddinb (iors cane SALT RIVER FIELDS AT TALKING STICK MeBovell
Bon ee Ye ee Arizona Diamondbacks & Colorado Rockies Rogeanat Park
i MM :
! a oot Metkowul
BS Si eprise S 4 ix *
og PARADE *
CAMELBACK oaLe MAGRYSIT  ggsoresoog 756 N Pima Rd, Scomudale, AZ
Los Angeles Dodgers . Y ceusaan
& Chicago White Sox AMERICAN FAMILY FIELDS OF PHOENIX CAGET TSB ALE
Milwaukee Srewers Sass an tk
623-302-5000 an €23-299-5500 3405 .N 9544 Avo, Phomnix. AL
10710. W Camelback Ra
Phoenix, Ad BAH eaERA : SCOTTSDALE STADIUM
San Francisco Giants
: : : ‘ 420-312-2586
j puehhielt Park po Masivars | camerosex 7AGKL Osborn Rd, Sconndate, AZ
: i : j ore vo EXtaN tO RAST VA A GE
@ : GaTenay. Aes H : : x ae
pseseteet 1 te an A et RE — cared Bod sh Shope , is : sm, Asi ed eam ne
ae a orton ne “ee ~ no HOHOKAM STADIUM
a TRANS Foliwen oe gj Phoenix Oakland A's
Ye po oem Yaay city
CSTOLLL A WHEL ARE, Sette att ey he ABMS 44St
. lone _ T245.N Cantar St, Mona, AZ
{ TEMPE DIABLO STADIUM a
Los Angeles Angels
. GOODYEAR BALLPARK as SLOAN PARK
liter Cleveland Guardians & Cincinnati Reds $80-3505265 Yi Chicago Cubs
R200 W Alarnada Or, Tempe, AZ :
~ Guadat A80-4664.0500
vat Moe oath ovslor att ° i 2330 W Ria Salado Pkwy, Mota, AL
dj ang Presenve anwatucr? j Pek Lambs

G23-882-3130 1923 $ Ballpark Way, Goodyear, AZ

HOOK ging.
Wao INS, KOMEN

Mabiale

RIA

Economic Impact of Sports Tourism

co X

wear

_——

sf
ii
a
A)
Mh,

A

NATIONAL

ARIZONA SOLS

$719 Million $274 Million soe eaten

Pee tae.

ISM RACEWAY eee Fiesta Bowl

$450 Million $644 Million $277 Million $170 Million

Cactus League Spring Training Scorecard

@ 2018 Economic Impact @ 2020 Economic Impact — COVID-19
- Total economic impact: Total economic impact: (139 of 237 games scheduled)
$644 million $364 million
- Gross Domestic Product: - Gross Domestic Product:
$373 million $214 million
- Created 6,439 annual jobs paying + Created 3,202 annual jobs paying
$224.6 million $128.3 million

- Directly generated $31.9 million in + Directly generated $18.4 million in
taxes ($24.2 m/state, $7.7 m/local) taxes ($13.1 m/state, $5.3 m/local)

--Source: 2018 ASU W.P. Carey School of --Source: 2020 ASU W.P. Carey School of
Business study Business study
Cactus League Spring Training Scorecard

Spring Training 2019 Spring Training 2020
@ Attendance @ Attendance

- Total: 1,737,975 - Total: 912,956

- Average: 7,900 per game - Average: 6,568 per game
(highest in 3 years) (no spring break games)

- 8 of 15 clubs saw per-game - 12 of 15 clubs saw their largest
increases crowds in final games

- All-time record crowd of 16,100 - Season Cancelled on March 12%,
for Red Sox-Cubs at Sloan Park after 139 of 237 games were played

on March 25
9 s1Dg

e,
a
(Qa
tA
Qa
ane
—s
PS,
ear.)
Ro

| “Ta WO

JUBLULIDS]UZ Q
wisuino

J

Sdl19)0)

1D) JDluay

a?
F > 2
Ww
—
wD:
=!
P=}
ia
oe
oF
32
=.
oS
3

SLL$ C$ GSTS LES 88S O2ZIS

9°€$

D°9S

‘ul

DUOZIN

Seer

2

uns

aS
sens

R

Se eee
es

aoe

Sie

neon

Semen Faas
Care

_COVID- 19 2020 Economic Impact :
_ Where does the money go?

$56.3

Bars &
Restaurants

943.2

Lodging

$20.1 $14.2 : $8.5 $12.4

Gifts & Entertainment Groceries ae

~~ Gasoline

$3.0

Local
Transportation
Cactus League Spring Training Scorecard

@ Community Support

° A total of 1,944 volunteers worked 90,000 hours at
Cactus League ballparks

¢ Affiliated non-profit partners raised $2.6 million for
their communities

® Education Partnerships
¢ FAFSA Campaign
¢ Arizona Promise

Some facilities offer volunteer opportunities and nonprofit partnerships that generate meaningful
contributions to various programs, charities and scholarships throughout the state.
“Let’s Talk Tourism”

¢ Tourism drives the economy

¢ Key contributors are:
- Professional Sports
- Hotels and Lodging
- Airlines and Airports
- State and National Parks
- Outdoor Activities and Experiences
- Local Businesses that support tourism

- Industry related career and employment opportunities

¢ The Arizona Cactus League is a driver of tourism
Cactus League Time Zones

7 ha
PS
. he sw
lian an ~

rm Sale amen mental

SN
E tN, 7
R, be os ..

oN

Pippa ess
reo

urs | | wa ~~ EASTERN

64% of visitors said spring training was the primary
reason for their visit

80%

70%

60%

50%

40%

30%

20%

10%

0%

2003 2007 2012 2015 . 2018 2020

m@Primary ©AFactor + No Factor Whatsoever

Cactus League Opportunities

Spring Training Teams
- Box Office
- Facilities and Operations Teams
- Nonprofits
- Internships
- Volunteers

www.Cactus League.com

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature
First Regular Session

SB 1563: workforce; study committee; report
Sponsor: Senator Kaiser, LD 2
Committee on Commerce

Overview
Establishes the Joint Legislative New American Talent Study Committee (Study Committee).

Provisions
1. Establishes the 14-member Study Committee to:
a) review best practices fo maximize economic integration of new Americans into the
workforce;
b) evaluate state requirements and policies that pose unnecessary barriers to new American
workforce participation; and
c) identify solutions that improve access to new American talent in this state. (Sec. 1)

2. Outlines the membership of the Study Committee. (Sec. 1)

. Instructs the cochairpersons to call meetings as often as necessary to effectuate the purpose
of the Study Committee. (Sec. 1)

4. Requires the chairperson of the Study Committee to submit a report of its findings and
recommendations, by December 31, 2023, to the Governor, the President of the Senate, the
Speaker of the House of Representatives, the Senate Commerce Committee, the House of
Representatives Commerce Committee and the Arizona Commerce Authority. (Sec. 1)

5. Requires the chairperson of Study Committee to submit a copy of the report to the Secretary
of State. (Sec, 1)

Requires the Arizona Commerce Authority to post the report on their website. (Sec. 1)
Repeals the Study Committee on July 1, 2024. (Sec. 1)

Attachme nt © _

O Prop 105 (45 votes) 1 Prop 108 (40 votes} (Emergency (40 votes) O Fiscal Note

SB 1563
Initials PRB/HG Page 1 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILLNO. _ $B 1563

DATE March 07, 2023 MOTION: D |

PASS AYE NAY PRESENT | ABSENT

Aguilar

Austin
Carter

Gress

Heap

Hendrix
Ortiz

Sun

Carbone, Vice-Chairman

Wilmeth, Chairman:

SINS SISIS

O | Oo O

3
COMMITTEE SECRETARY

HAEL CARBONE, Vice-Chairman

ATTACHMENT. /

ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature
First Regular Session

a ENS eg ED ETT TATTLE NET EEN NT

SB 1052: insurance coverage; biomarker testing
Sponsor: Senator Shope, LD 16
Committee on Commerce

Overview
Excludes a policy that provides limited benefit coverage from the requirement for certain policies
to provide coverage for biomarker testing.

History

Contracts for health services, evidence of coverage for health care plans and health insurance
policies issued by a hospital or medical service corporations, health care services organization,
disability insurer or group or blanket disability insurer are statutorily required to provide coverage
for biomarker testing. Biomarker testing is the analysis of a patient's tissue, blood or other
biospecimen for the presence of a biomarker. A biomarker is a characteristic that is objectively
measured and evaluated as an indicator of normal biological processes, pathogenic processes
or pharmacologic responses to a specific therapeutic intervention (A.R.S. §§ 20-841.13, 20-
1057.19, 20-1376.10 and 20-1406.10).

Statute defines limited benefit coverage as an insurance policy that is designed, advertised and
marketed to supplement major medical insurance and that includes accident only, dental only,
vision only, disability income only, fixed or hospital indemnity, specified disease insurance, credit
insurance or Taft-Hartley trusts (A.R.S. § 20-1137).

Provisions
1. Specifies a policy that is issued or renewed by a disability insurer, or a group or blanket
disability insurer does not include a policy that provides limited benefit coverage.

Attachment ¥

(1 Prop 105 (45 votes) Oi Prop 108 (40 votes) O Emergency (40 votes) Fiscal Note

SB 1052
initials PRB Page 1 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature - First Regular Session

ROLL CALL VOTE

COMMITTEE ON Commerce BILL NO. $B 1052

DATE March 07, 2023 MOTION: pr.

PASS AYE NAY PRESENT {| ABSENT

Aguilar

Austin
Carter

Gress

Heap

Hendrix

Ortiz

Sun

Carbone, Vice-Chairman

Wilmeth, Chairman

v

ISIN INN IK ISS

© oO} |

A roti Nebo

/COMMITTEE SECRETARY

APPROVE

STIN WILMETH, Chairman
HCHAEL CARBONE, Vice-Chairman

ATTACHMENT. q

File and source

File

2023-03-07_commerce-minutes.pdf

Size

1,809,966 bytes

SHA-256

834f59abe84a4cafe9907a67409c31f86c3130da44d122496a44d011961c7bee

Our copy

2023-03-07_commerce-minutes.pdf

Original

www.azleg.gov