LOC News

HB 2049A – Cybersecurity Center of Excellence

As mentioned in a February 17 Bulletin Article, the LOC has led a workgroup with Rep. Nancy Nathanson and committee staff that started in 2021 and has grown to include more than 80 organizations to address the cybersecurity challenges faced by local governments, special districts, and schools. This culminated in HB 2049A, which was introduced by Senator Woods and Representative Nathanson this session.

HB 2049A went through some minor changes in the Joint Information Management and Technology Committee but was unanimously approved by the committee and sent to the Ways and Means Committee where it has remained until this week. That’s when the LOC and the Glendale City Recorder Dawn Russ testified about the experience of local governments and the need for increased investments and support for cities. There was no known opposition to the bill.

Also this week, the bill was referred to the Joint Ways and Means Subcommittee on Education where a public hearing and work session was held and the bill moved on to the full Ways and Means Committee with a new -A4 amendment. You can read the full fiscal impact statement and the Legislative Fiscal Office recommendations online.

The full documents are linked here and here, and they include how the funding was broken down. This allocation also includes several legislative changes:

  • Funding for the center has been reduced by slightly more than $1.1 million, and the workforce fund has been cut by two-thirds;
  • The bill removes funding for Oregon Cybersecurity Public Awareness Fund;
  • Funding for the federal government match has been dramatically reduced; and
  • The bill removes the requirement that the Oregon Cybersecurity Center of Excellence develop, update, and submit the Oregon Cybersecurity Resilience Plan biennially to the governor and the appropriate committees of the Legislature.

Of specific concern to cities is the dramatic reduction in state matching funds for the federal State and Local Cybersecurity Grant Program which is specifically designed to allocate funding to local governments for cybersecurity needs. For the 2022 notice of funding opportunity, the state was able to get a waiver, but since then, the feds have been clear that they do not expect to provide any waivers in the future. The next funding round will become available in September.

The funding in the bill as it stands will provide the necessary funding to set up the Cybersecurity Center of Excellence which will help Oregon’s higher education institutions to help build and provide experience for the cybersecurity workforce that we’ll need in the future. It will also allow the center to provide needed support for local governments.

However, without the matching funds, this potentially leaves millions of dollars on the table that Oregon should receive. The LOC is currently talking with legislative leadership and Governor Kotek’s office to find other pathways to receive these matching funds and has proposed some possible opportunities where this can be done.

Local governments are attractive targets for cyber criminals. HB 2049 is a chance to create a system to support our needs and build the cyber workforce of the future. We are excited to see the bill move forward and disappointed with the Ways and Means allocation. The LOC will continue to have conversations to ensure Oregon cities receive the entirety of federal funding that has been allocated for the state’s local governments.

If you have any questions about these efforts or want to help, please email Nolan Pleše.

Contact: Nolan Pleše, Lobbyist – nplese@orcities.org

Last Updated 6/9/23

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