SB3495 103RD GENERAL ASSEMBLY

LRB103 39066 MXP 69203 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3495

Introduced 2/9/2024, by Sen. Jason Plummer

SYNOPSIS AS INTRODUCED:

New Act

Creates the Pacific Conflict Stress Test Act. Provides that the Governor shall produce and publish a State risk assessment no later than the day before the annual address made to the General Assembly by the Governor, and annually thereafter. Provides that the State risk assessment shall include all substantial risks to State or national security, State or national economic security, State or national public health, or any combination of those matters, occurring within and threatening the State. Provides that the Auditor General shall conduct an audit of all critical procurements purchased or supplied through a State supply chain or State vendor supply chain, and produce and publish a report, which shall be submitted to the General Assembly and the Governor and made easily accessible to the public, within 180 days after the effective date of the Act. Creates the Select Committee on Pacific Conflict. Provides for the Committees membership and duties. Provides that the Governor, in consultation with the Select Committee on Pacific Conflict, shall appoint a Director, who shall lead the study on adversarial threats to State assets and critical infrastructure and coordinate the research and development of the report, commencing within 30 days of the effective date of the Act. Contains a severability provision. Defines terms.

A BILL FOR

AN ACT concerning safety.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Pacific Conflict Stress Test Act.

Section 5. Purpose. The purpose of this Act is to prepare and secure the State in order to minimize the disruptive impact of a potential conflict precipitated by foreign adversaries against allies, democratic countries, and the United States Armed Forces in the Pacific theater.

Section 10. Definitions.In this Act:

"Critical infrastructure" means systems and assets, whether physical or virtual, so vital to the State or the United States of America that the incapacity or destruction of such systems and assets would have a debilitating impact on State or national security, State or national economic security, State or national public health, or any combination of those matters. A critical infrastructure may be publicly or privately owned, and includes, but is not limited to:

(1) gas and oil production, storage, or delivery systems;

(2) water supply, refinement, storage, or delivery systems;

(3) telecommunications networks;

(4) electrical power delivery systems;

(5) emergency services;

(6) transportation systems and services; or

(7) personal data or otherwise classified information storage systems, including cybersecurity.

"Critical procurements" means those acquisitions made by the State, any agency, political subdivision, or private nongovernmental organization critical to the proper functioning of critical infrastructure or to the health, safety, or security of the State or the United States.

"Divestment" means the sale, forfeit, or otherwise contractual end of any current or planned ownership or control of assets.

"Investment" means any transfer of funds into any active or passive, direct or indirect structure that seeks to generate revenue or accomplish any other gain, including non-monetary gains.

"Pacific conflict" means a declared war or armed conflict between the United States or any of her allies and another nation that occurs in the land, sea, or air area of the Pacific Ocean and threatens or could reasonably escalate to threaten the supply chains, critical infrastructure, safety, or security of the State or the United States.

"Pacific conflict" includes a serious deterioration of diplomatic ties or economic engagement between the United States or its allies and another nation that threatens the status quo of Pacific trade, travel, and military operations or exercises.

"State-managed fund" means any short-term or long-term investment structure that is State-managed, State-run, State-controlled, or otherwise overseen by the State, a State agency, or any political subdivision within the State or agency controlled by the same, in which the State or subdivision has primary discretion over or vested interest in. Nothing in this definition shall be construed so as to not apply to any fund that is subject to the purview or direction of the State or applicable subdivision, and populated, wholly or in part, with State funds, but managed by a third-party entity, such as a fiduciary. This shall include, but is not limited to:

(1) public pension funds, public retirement funds, or other State-sponsored funds, that is sponsored, maintained, or contributed to or required to be contributed to by the State or any locality within the State, or any subsidiaries of such;

(2) municipal, county, or other local or municipal entity investment funds, "rainy day funds," or other political subdivision-controlled investment structures; and

(3) university or college endowments, trusts, or other structure that constitutes, wholly or in part, a public institution of higher education's investable assets.

"State-owned enterprise" means any company owned or controlled, in whole or in part, by a government or by individuals acting in official government capacities in any form.

"State risk assessment" means a study conducted under the Governor in consultation with the General Assembly that leverages the expertise of executive agencies and that minimally includes: an identification of threats and hazards that could negatively impact citizens and assets of the State; a preparation of risk scenarios, describing cause and consequence of threats and hazards that might actualize to impact citizens and assets of the State; and an analysis of the probability and severity of the consequences associated with each risk scenario.

"State supply chain" means the end-to-end process for shipping goods, purchased by the State, for the State, beginning at the point of origin through a point or points of distribution to the destination.

"State vendor supply chain" means the end-to-end process for shipping goods, purchased by the State from State vendors, to the vendors, beginning at the point of origin through a point or points of distribution to the destination.

Section 15. Statement of policy.

(a) It is the policy of the State to support the civilian and military command of the United States of America and its efforts to promote and maintain prosperity, peace and security for the United States and its allies. It is the policy of the State to enhance the defensive posture of the State to protect the State citizens and assets and to contribute to the broader defensive posture of the United States of America by reducing security vulnerabilities within the State.

(b) It is the policy of the State to exercise foresight and make reasonable preparations for a potential regional or global conflict centered on the Pacific theater that could involve attacks upon the United States and her allies in the Pacific theater, that could involve asymmetrical attacks on the United States homeland, and that could cause the disruption or complete severing of supply chains between the State and its vendors and the People's Republic of China, the Republic of China, or other countries in the Pacific theater.

Section 20. State risk assessment.

(a) The Governor shall produce and publish a State risk assessment no later than the day before the annual address made to the General Assembly by the Governor, and annually thereafter.

(b) The State risk assessment shall include all substantial risks to State or national security, State or national economic security, State or national public health, or any combination of those matters, occurring within and threatening the State.

Section 25. Audit of State supply chains, State vendor supply chains, and State investment holdings.

(a) The Auditor General shall conduct an audit of all critical procurements purchased or supplied through a State supply chain or State vendor supply chain, and produce and publish a report, which shall be submitted to the General Assembly and the Governor and made easily accessible to the public, within 180 days after the effective date of this Act.

(b) This report shall identify:

(1) all critical procurements produced in or by a foreign adversary, a State-owned enterprise of a foreign adversary, a company domiciled within a foreign adversary, or a company owned by a company domiciled within a foreign adversary;

(2) all critical procurements manufactured in countries or by companies at risk of disruption in the event of a Pacific conflict; and

(3) all critical procurements sourced from any country or company that uses Pacific supply chain processes at risk of disruption in the event of a Pacific conflict.

(c) This report shall recommend alternative sourcing, if available; highlight the difficulty in identifying potential alternative sourcing, if relevant; and specify the level of risk to the State associated with such a disruption in sourcing for each procurement that is threatened in the event of a Pacific conflict.

The Auditor General shall conduct an audit of all funds managed by the State government and any political subdivision of the State and produce and publish a report, which shall be submitted to General Assembly and the Governor and made easily accessible to the public, within 180 days after the effective date of this Act.

(d) This audit report shall identify all investments:

(1) at risk of substantially losing value or being frozen, seized, or appropriated by foreign adversaries in the event of a Pacific conflict;

(2) all investments in any arms industry of a foreign adversary;

(3) all investments in State-owned enterprises of a foreign adversary;

(4) all investments in companies domiciled within a foreign adversary or owned by a company domiciled within a foreign adversary.

The audit report shall recommend strategies for the immediate and complete divestment of these assets identified in subsection (b).

Section 30. Creation of the Select Committee on Pacific Conflict.

(a) The Select Committee on Pacific Conflict is created.

(b) Appointments to the Select Committee shall be finalized within 60 days after the effective date of this Act.

(c) The first meeting of the Select Committee shall be within 90 days after the effective date of this Act.

(c) The Select Committee shall meet no less than once every 3 months, with additional regular meetings at the call of the majority of the Select Committee and emergency meetings at the call of the Chair of the Select Committee or the Governor.

(d) A report on the impact of a Pacific conflict on the State, insofar as it has been completed, shall be submitted to the General Assembly, the Governor, and be made easily accessible to the public no later than 30 days before the annual address made to the General Assembly by the Governor, and an updated report made available pursuant to the same on an annual basis.

The first report shall incorporate the findings of the audit of State supply chains, State vendor supply chains, and State investment holdings established in Section 25, along with the report on adversarial threats to state assets and critical infrastructure established in Section 35 and due no later than 30 days before the first annual address made to the General Assembly by the Governor after the conclusion of the Commission on Adversarial Threats to State Assets and Critical Infrastructure.

(e) The Select Committee shall be authorized for an initial period of 3 years.

(f)(1) The Select Committee shall consist of 9 members, one of whom shall act as the Chair of the Select Committee and one of whom shall act as the Vice Chair of the Select Committee.

(2) The Governor shall appoint the following members to the Select Committee:

(A) The Chair of the Select Committee. The Chair of the Select Committee shall have applicable knowledge of the threats posed to the State in the event of a Pacific conflict and the research and leadership experience to competently and comprehensively produce the report required by this Act. The Chair of the Select Committee shall have applicable knowledge of the threats posed to the State in the event of a Pacific conflict and the research and leadership experience to competently and comprehensively produce the report required by this Act.

(B) The Director of Commerce and Economic Opportunity or the Director's designee.

(C) The Adjutant General or his or her or designee.

(D) The Director of the Illinois State Police or the Director's designee.

(E) The Director of the Illinois Emergency Management Agency and Office of Homeland Security or the Director's designee.

(3) The Senate President, Senate Minority Leader, Speaker of the House, and House Minority Leader shall each appoint a member to the Select Committee. The Senate President's appointee shall serve as the Vice Chair of the Select Committee. These members shall have applicable knowledge of the threats posed to the State in the event of a Pacific conflict.

(g) At the discretion of the Select Committee on Pacific Conflict, an advisory board may be retained to provide expertise and collaborative research support.

(h) Members shall not be entitled to compensation but may be reimbursed for travel and other expenses incurred in the performance of official duties of the Select Committee.

(i) Advisory board members, if any, shall not be entitled to compensation but may be reimbursed for travel and other expenses incurred in the performance of duties to the Select Committee.

(i)(1) As specified under subsection (d), the Select Committee on Pacific Conflict shall annually produce a report concerning the threats posed to the State in the event of a Pacific conflict.

(2) This report shall provide a comprehensive risk assessment, including all identified vulnerabilities and recommended mitigation and emergency response strategies, as each pertains to a Pacific conflict, to each the following identified areas and any other areas deemed appropriate or applicable by the Select Committee:

(A) critical infrastructure;

(B) telecommunications infrastructure;

(C) military installations located within the State;

(D) State supply chain for critical procurements;

(E) State vendor supply chain for critical procurements;

(F) State cybersecurity;

(G) public safety and security; and

(H) public health.

(j) The Select Committee may subpoena and consult experts, conduct field investigations, hold hearings, receive testimony in any form or format, work with federal officials, request or require the production of documents and other evidence, and otherwise take any lawful action to carry out the purposes set forth in this Act.

(k) Closed hearings of the Select Committee may be conducted, but only to the extent necessary, notwithstanding the requirement that the Select Committee make every effort to provide the most information and transparency possible in the publicly published report.

(l) The Select Committee may compel the cooperation and compliance of State agencies and nongovernmental organizations critical to the safety and security of the State to carry out the purposes set forth.

(m) The Select Committee shall be provided sufficient legislative research and funding support to carry out this Act and all requirements therein.

Section 35. Report on adversarial threats to State assets and critical infrastructure.

(a) The Governor, in consultation with the Select Committee on Pacific Conflict, shall appoint a Director, who shall lead the study on adversarial threats to State assets and critical infrastructure and coordinate the research and development of the report, commencing within 30 days of the effective date of this Act.

(b) Within 180 days of the effective date of this Act, the Director shall identify all critical infrastructure and other assets within the State that could reasonably be targeted in malicious actions by adversarial nations in the event of a Pacific conflict, and that, as a result of this malicious action, would result in a significant negative impact on the public health, safety, economic security, or physical security of the State and nation. In identifying critical infrastructure and other assets within the State for this purpose, the Director shall apply consistent, objective criteria.

(c) Within 365 days after the effective date of this Act, the Director shall produce a report that shall include:

(1) identified critical infrastructure and other assets under subsection (b), including the specific risks posed to each infrastructure system or asset in the event of a Pacific conflict;

(2) mitigation strategies and suggestions to limit or eliminate the risk posed to the critical infrastructure or other assets in the event of a Pacific conflict; and mitigation strategies and suggestions that limit or eliminate the risk posed to the safety and security of the State or nation in the event of a Pacific conflict.

(3) identified critical procurements in the audit conducted consequent to Section 25 of this Act, including the specific risks posed to each critical procurement in the event of a Pacific conflict; and

(4) mitigation strategies and suggestions, including alternative sourcing, that limit or eliminate the risk posed to the safety and security of the State or nation in the event of a Pacific conflict.

(d) The report described in subsection (c) shall include a risk-based list of critical infrastructure and other assets identified under subsection (b), the order of which shall be determined by:

(1) the degree to which each critical infrastructure system is in need of protective action; and

(2) the degree to which the debilitation of each critical infrastructure system would have on the safety and security of the State and the nation.

(e) The report shall include a risk-based list of components identified under subsection (c), but only for the most at-risk components, that shall be determined by:

(1) the degree to which the sourcing of each component is at risk of disruption or restriction;

(2) the degree to which the disruption or restriction of sourcing would cause a debilitating effect on the safety and security of the State and the nation; and

(3) the difficulty in identifying alternative manufacturers for sourcing or supply chain delivery for the component.

(f) The Director shall coordinate with the Select Committee on Pacific Conflict and other appropriate State agencies, and shall be provided with the resources necessary to produce the report. State agencies shall provide the Director with information necessary to carry out the responsibilities under this section. The Director shall develop a process for relevant stakeholders to submit information to assist in identifying critical infrastructure and other assets described under subsection (b).

(g) The Director may also, at his or her discretion, coordinate with State universities of higher education, private firms specializing in infrastructure risk management, and federal agencies including, but not limited to, the Department of Defense, the Cybersecurity and Infrastructure Security Agency, the Director of National Intelligence, the National Security Agency, the Department of Homeland Security, and any other agency deemed appropriate by the Director.

(h) The Director, in coordination with appropriate State agencies, shall confidentially notify owners and operators of critical infrastructure identified under subsection B of this Section that they have been so identified, and ensure owners and operators are provided the basis for the determination. The Director shall also establish a process through which owners and operators of critical infrastructure may submit relevant information and request reconsideration of assessments made under subsection (b).

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.